Ero Copper (ERO) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 copper production and strong operational performance across all segments, supported by the safe and on-time completion of the Tucumã Operation.

• Advanced Pilar Mine shaft construction and signed a definitive earn-in agreement for a 60% interest in the Furnas Copper-Gold Project.

• Four-step near-term strategy: achieve commercial production at Tucumã, deleverage balance sheet, advance long-term growth (notably Furnas), and initiate shareholder returns.

• Strategic investments in 2023–2024 set up 2025 as a pivotal year, with Tucumã ramp-up expected to drive growth.

• Increased credit facility from $150M to $200M, enhancing liquidity for future initiatives.

Financial highlights

• Q4 2024 cash flow from operations: $60.8M; full year: $145.4M.

• Adjusted EBITDA: $59.1M for Q4; $216.2M for the year.

• Adjusted net income: $17.4M ($0.17/share) in Q4; $80.4M ($0.78/share) for the year.

• Year-end liquidity: $90.4M; available liquidity post-credit facility amendment: $140.4M.

• Q4 revenue was $122.5M; full-year revenue reached $470.3M.

Outlook and guidance

• 2025 copper production guidance: 75,000–85,000 tonnes; gold: 50,000–60,000 oz.

• 2025 copper C1 cash cost guidance: $1.55–$1.80/lb; gold C1 cash cost: $650–$800/oz; gold AISC: $1,400–$1,600/oz.

• Capital expenditures expected at $195–$270M in 2025, mainly due to lower spend at Tucumã post-construction.

• Full-year production guidance reaffirmed, with increased plant reliability and throughput expected from Q2 2025.

• Three-year outlook projects total copper production of 85,000–95,000 tonnes and gold production of 50,000–60,000 oz annually through 2027.