The following is a summary of the Ero Copper Corp. (ERO) Q3 2024 Earnings Call Transcript:
Financial Performance:
Ero Copper reported adjusted EBITDA of $62.2 million and adjusted net income attributable to owners of $27.6 million, or $0.27 per share, in Q3 2024 primarily due to lower unit costs at Caraiba and higher gold prices at Xavantina.
C1 cash costs decreased at Caraiba by 24.5% to $1.63 per pound of copper.
Total balance sheet liquidity was reported at $125.2 million at quarter end.Revised full-year copper production guidance for Tucama to 8,000 to 11,000 tonnes due to power issues.
Business Progress:
Completed construction at Tucumã and achieved the first production of salable copper concentrate.
Began Phase 1 of the 28,000-meter drill program at the Furnas Project.
Entered into a definitive earnings agreement with Vale Base Metals for the Furnas Copper-Gold Project.
Opportunities:
The definitive earning agreement with Vale Base Metals presents a partnership opportunity, advancing the Furnas project towards a final investment decision.
Adjustments in global gold prices enabled beneficial refining and treatment terms, improving operating profitability.
Risks:
Encountered power supply issues at the Tucuma site, leading to lower than planned mill throughput and copper production.
Faced operational challenges like underperformance by third-party contractors, affecting underground development rates at Pilar.
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