Ero Copper (ERO) Q3 2025 earnings summary

Executive summary

• Achieved record consolidated copper production of 16,664 tonnes and gold production of 9,073 ounces in Q3 2025, driven by operational improvements and strong output at all sites.

• Cash flow from operations reached $110.3 million, adjusted EBITDA was $77.1 million, and adjusted net income attributable to owners was $27.9 million, or $0.27 per share.

• Declared commercial production at Tucumã, with sequential production growth and improved plant throughput.

• All operations set all-time monthly productivity and production records in October, with strong momentum expected to continue.

• Focused on deleveraging, operational excellence, and advancing long-term growth projects.

Financial highlights

• Q3 2025 revenues were $177.1 million, up from $124.8 million in Q3 2024, supported by higher copper and gold prices and increased sales at Tucumã.

• Adjusted EBITDA was $77.1 million; adjusted net income was $27.9 million ($0.27 per share); cash flow from operations was $110.3 million.

• Available liquidity at quarter-end was $111.3 million, including $66.3 million in cash and $45 million undrawn on the credit facility.

• Net debt stood at $545.5 million at quarter-end, with a leverage ratio of 1.9x, down from 2.1x in Q2 and 2.5x at end of 2024.

• Consolidated copper C1 cash cost was $2.00/lb and gold C1 cash cost was $1,086/oz in Q3 2025.

Outlook and guidance

• Q4 2025 anticipated to be the strongest production quarter across all operations, with full-year copper production guidance reaffirmed at 67,500–80,000 tonnes.

• Caraíba 2025 copper production guidance: 37.5–42.5 kt; Tucumã: 30.0–37.5 kt; Xavantina gold: 40–50 koz, with Xavantina expected at the lower end.

• 2025 cost guidance: Caraíba C1 cash cost $2.15–$2.35/lb, Tucumã $1.35–$1.55/lb, Xavantina gold C1 $850–$1,000/oz, AISC $1,800–$2,000/oz.

• Capital expenditures for 2025 expected at $165–$180 million, with total capex guidance unchanged at $230–$270 million.

• Full volume of gold concentrate at Xavantina expected to be sold over the next 12–18 months, boosting financial performance.