Ero Copper Corp. is a high-margin, high-growth copper producer headquartered in Vancouver, Canada, with operations primarily located in Brazil. The company’s main assets include the Caraíba Operations, Tucumã Operation, and Xavantina Operations. This report covers Ero’s fourth-quarter and full-year results for the year ended December 31, 2024.

Ero Copper reported a significant increase in fourth-quarter production with record copper production reaching 12,883 tonnes, up from 11,760 tonnes the previous year. For the entire year, total copper production reached 40,600 tonnes, a decrease from 43,857 tonnes in 2023. During the fourth quarter, the average C1 cash cost was $1.85 per pound of copper produced, up from $1.75 per pound in Q4 2023.

The company reported revenues of $122.5 million in the fourth quarter, compared to $116.4 million in the same period last year. For the full year, total revenues reached $470.3 million, an increase from $427.5 million in 2023. Despite these revenue gains, Ero Copper posted a net loss attributable to shareholders of $48.9 million, or $0.47 per share, in Q4 2024, compared to a profit of $36.5 million, or $0.37 per share, in the corresponding quarter of 2023. For the full year, the net loss was $68.5 million, equivalent to $0.66 per share.

Cash flow from operations was $60.8 million for the fourth quarter and $145.4 million for the full year, showing improvements compared to $49.4 million and $163.1 million, respectively, in the prior year. Adjusted EBITDA for the fourth quarter was $59.1 million, while the full year delivered an adjusted EBITDA of $216.2 million.

Operational challenges continued to impact performance, particularly at the Tucumã Operation, where recovery from earlier disruptions has seen improvement. The plant’s processing during the fourth quarter recorded ore processed at 223,013 tonnes with a copper grade of 2.17%. Adjustments made later in 2024 resulted in improved recovery metrics reported in Q1 2025.

The company’s anticipated production guidance for 2025 aims for consolidated copper production between 75,000 to 85,000 tonnes, capitalizing on increased production at Tucumã as it ramps up to commercial production, expected in the first half of the year. However, C1 cash costs in total are set to increase for the year, anticipated to be in the range of $1.55 to $1.80 per pound.

Ero Copper’s liquidity position showed improvement, with available liquidity of $90.4 million at year-end, comprised of $50.4 million in cash and equivalents and undrawn credit capacity. The company amended its credit facility to increase commitments from $150 million to $200 million, due in part to its expanding operational footprint.

Operational updates indicate ongoing challenges in production and management’s strategy to address these issues focuses on operational improvements and investing in asset integrity, particularly regarding the need for equipment upgrades at Xavantina.

Despite setbacks, Ero’s financial metrics reflect a strengthening operational foundation, and management remains focused on achieving targeted production milestones while managing costs effectively.