Ero Copper (ERO) Q1 2025 earnings summary

Executive summary

• Consolidated Q1 2025 copper production reached 12,424 tonnes and gold production was 6,638 ounces, driven by ramp-up at Tucumã and steady output at Caraíba.

• Adjusted EBITDA was $65.4 million, with adjusted net income attributable to owners at $35.8 million ($0.35/share) for the quarter.

• Commercial production at Tucumã is on track for H1 2025, with key repairs completed and throughput expected to increase.

• The company is focused on deleveraging, advancing growth initiatives (notably at Furnas), and preparing for shareholder returns.

• Xavantina saw increased mine/process volumes but lower gold grades; equipment and infrastructure investments are expected to support higher production.

Financial highlights

• Q1 2025 revenues were $125.1 million, with gross profit of $55.5 million and cash flow from operations of $65.4 million.

• Adjusted EBITDA reached $65.4 million, and adjusted net income per share was $0.35.

• Liquidity position at quarter-end was $116 million, with cash and cash equivalents of $80.6 million.

• Net debt was $561.8 million as of March 31, 2025.

• Credit facility commitments increased to $200 million; $25 million drawn under copper prepayment facility.

Outlook and guidance

• 2025 copper production guidance reaffirmed at 75,000–85,000 tonnes, with sequential quarterly increases expected.

• Gold production guidance for Xavantina remains at 50,000–60,000 ounces for 2025.

• Capital expenditure guidance for 2025 is $230–$270 million, including $30–$40 million for exploration.

• Deleveraging expected to begin in the second half of the year as EBITDA grows and metal prices remain favorable.

• Phase one drill program at Furnas on track for Q3 completion; preliminary economic assessment expected in H1 2026.