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Ero Copper Reports Second Quarter 2022 Operating and Financial Results Including Record Quarterly Copper and Gold Production

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Ero Copper Reports Second Quarter 2022 Operating and Financial Results Including Record Quarterly Copper and Gold Production

 

 

 

 

 

Ero Copper Corp. (TSX: ERO) (NYSE: ERO) is pleased to announce its operating and financial results for the three and six months ended June 30, 2022. Management will host a conference call tomorrow, Wednesday, August 3, 2022, at 11:30 a.m. Eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.

 

HIGHLIGHTS

  • Record quarterly copper production of 12,734 tonnes at C1 cash costs(*) of $1.24 per pound of copper produced;
  • Record quarterly gold production of 11,122 ounces at C1 cash costs(*) and All-in Sustaining Costs(*) of $643 and $1,169, respectively, per ounce of gold produced;
  • Adjusted EBITDA(*) of $55.8 million and adjusted net income attributable to owners of the Company(*) of $24.4 million ($0.27 per share on a diluted basis);
  • Financial results during the period were impacted by operational challenges at the Company’s primary domestic customer that resulted in a higher allocation of sales to the international market. The timing of sales to, and longer quotational periods with, international customers, combined with a weakening copper price just prior to quarter- end, resulted in a reduction to revenue of approximately $13.0 million (see “Second Quarter Review” for more information);
  • Quarterly cash flows from operations of $22.4 million also reflect an increase in accounts receivable of $18.9 million due to the timing of concentrate shipments and longer payment terms with international customers. Absent this increase in accounts receivable, cash flows from operations during the quarter would have been over $40.0 million;
  • Available liquidity at quarter-end was $504.9 million, including cash and cash equivalents of $329.3 million, short-term investments of $100.6 million, and $75.0 million of undrawn availability under the Company’s senior revolving credit facility;
  • Key organic growth projects advancing on schedule and on budget:
    • At the Tucumã Project (formerly referred to as the Boa Esperança Project), approximately 22% of planned capital expenditures were under contract as of August 1, 2022, with another 8% in the final phases of contracting. Capital commitments contracted and in the final phases of negotiation are within 6% of Feasibility Study estimates;
    • At the Caraíba Operations (formerly referred to as the MCSA Mining Complex), equipment packages and supply contracts totaling approximately 25% of planned capital expenditures for the new external shaft have been finalized as of August 1, 2022 at 10% below project capital estimates. The shaft sinking contract, the largest contributor to the project’s total capital spend, is in the final negotiation phase. Upon execution of the sinking contract, capital secured under contract for the project is expected to be approximately 70% and align with the total project capital estimate; and,
    • In addition to ongoing construction activities, the Company is developing a sustainability strategy for the Tucumã Project and surrounding community. To date, approximately $1.0 million has been earmarked for projects designed to mitigate the environmental impact of project development and provide support for the local community.
  • Reaffirming full-year production guidance, lowering consolidated 2022 capital expenditure guidance, and raising operating cost guidance for the year:
    • Full-year copper production expected to be at the high-end of the 43,000 to 46,000 tonne guidance range;
    • Full-year gold production guidance range of 39,000 to 42,000 ounces reaffirmed;
    • Full-year consolidated capital expenditure guidance lowered by over $20 million, from $330-$375 million to $308-$354 million, as a result of capital replanning efforts resulting in deferrals at the Company’s Caraíba Operations. The deferral of this capital spend is not expected to impact timelines for key growth projects;
    • Full-year C1 cash cost guidance has been increased for the Caraíba Operations to $1.20 to $1.35 (previously $1.05 to $1.15) per pound of copper produced to reflect elevated international concentrate sales, which are expected to continue through the remainder of the year, as well as the impact of inflation in the cost of key consumables and a strong BRL versus the US dollar in H1 2022; and,
    • Full-year cost guidance ranges for the Xavantina Operations (formerly referred to as the NX Gold Mine) have be updated to reflect the aforementioned impact of inflation and BRL strength in H1 2022:
      • C1 cash cost guidance revised to $600 to $700 (previously $500 to $600) per ounce of gold produced; and,
      • AISC guidance revised to $1,000 to $1,100 (previously $925 to $1,025) per ounce of gold produced.

 

“Our second quarter delivered record operational performance across our assets and saw the successful execution of important milestones critical to our growth strategy,” said David Strang, Chief Executive Officer. “Underpinning our record quarterly production results were new monthly records set for production rates, development rates, asset efficiency and availability, among others. Following a challenging first quarter operating environment, I want to congratulate our on-site teams for setting new high watermarks that showcase the capabilities of our assets and people.

 

“Across our key growth projects, construction and development activities are progressing on schedule and well within contingency levels at this time. Our team’s adherence to the original capital expenditure estimates for major equipment line items and work packages that have been secured on these projects to date is remarkable given the significant inflationary headwinds that the mining industry has faced since the beginning of 2022.

 

“Despite our record operating performance and outstanding project execution during the quarter, our financial results were impacted by operational challenges at our primary domestic smelting customer, which resulted in changes to our copper concentrate sales channels that are expected to continue through the balance of the year.”

 

“Primarily as a result of higher allocation of sales to international customers and elevated input costs in the first half of the year across our business units, we have adjusted our full- year operating cost guidance ranges. Offsetting these increases, proactive capital management reviews with our team during the quarter identified over $20 million of capital deferrals that will not impact our business strategy yet will support continued balance sheet strength during this period of elevated market and copper price volatility.”

 

*These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three and six months ended June 30, 2022 and the Reconciliation of Non- GAAP Measures section at the end of this press release.

 

SECOND QUARTER REVIEW

  • Mining & Milling Operations
    • The Caraíba Operations processed 801,425 tonnes of ore grading 1.74% copper, producing a record 12,734 tonnes of copper in concentrate during the quarter after metallurgical recoveries of 91.2%.
    • The Xavantina Operations processed 57,291 tonnes grading 6.59 grams per tonne, producing a record 11,122 ounces of gold after metallurgical recoveries of 91.6% and 7,306 ounces of silver as a by-product.
  • Organic Growth Projects
    • At the Tucumã Project, the Company continued to advance critical-path workstreams during the period and subsequent to quarter-end. Highlights include:
      • Approximately 22% of planned capital expenditures under contract as of August 1, 2022, with another 8% in the final phases of contracting;
      • Capital commitments contracted and in the final phases of negotiation within 6% of Feasibility Study estimates;
      • Significant advances made on all road upgrades, including pit access and completion of community bypass road infrastructure;
      • Completion of approximately 75% of planned pre-production vegetation suppression required for pre-stripping activities to commence;
      • Purchase of the ball mill for the Project;
      • Site earth works initiated subsequent to quarter-end; and,
      • Installation of site drainage expected to be completed by end of October 2022, ahead of the rainy season.
    • At the Caraíba Operations, the Company made meaningful progress on its “Pilar 3.0” initiative, which encompasses various projects that jointly are designed to create a two-mine system at the Pilar Mine targeting higher sustained production levels. These projects include (i) construction of a new external shaft to access the Deepening Extension Zone, (ii) Project Honeypot, which is expected to support higher production volumes from the upper levels of the Pilar Mine, (iii) an expansion of the Caraíba Mill to 4.2 million tonnes per annum, and (iv) the recently completed Cooling Project. Select highlights include:
      • Equipment packages and supply contracts totaling approximately 25% of planned capital expenditures for the new external shaft finalized as of August 1, 2022 at 10% below budget;
      • Shaft sinking contract, which will bring estimated shaft capital secured under contract to approximately 70%, in the final negotiation phase. Upon execution, capital commitments under contract expected to align with original estimates;
      • Engineering and procurement related to shaft sinking were completed during the quarter with the shaft sinking contract anticipated to be finalized during the third quarter;
      • Completed construction of the concrete batch plant during the period and commenced commissioning activities subsequent to quarter-end;
      • Engineering and design work related to the expansion of the Caraíba Mill continued during the second quarter with the ball mill installation contract finalized subsequent to quarter-end;
      • Aggressively advanced drilling efforts within the Project Honeypot area, the results of which are expected to be included in the Company’s year-end mineral reserve and resource estimates; and,
      • Completed the Cooling Project’s second and final phase, with hand-over to operations occurring in April 2022 at better-than-design performance.
  • Impact of Increased Sales of Copper Concentrate to International Market
    • Historically, the Company has had limited exposure to movements in copper prices on provisional invoices due to its majority allocation of concentrate sales to domestic customers with which the Company has favorable payment terms. However, during the second quarter, operational challenges at the Company’s primary domestic customer resulted in a higher allocation of sales to the international market. Longer quotational periods with international customers, combined with a weakening copper price just prior to quarter-end, resulted in a reduction to revenue of approximately $13.0 million during the period.
    • Quarterly cash flows from operations of $22.4 million were also impacted by an increase in accounts receivable of $18.9 million due to the timing of concentrate shipments and longer payment terms with international customers.
    • These concentrate sales changes, including related impacts on payment terms, are expected to continue through the end of 2022. Allocation of concentrate sales between domestic and international customers is expected to revert to historical levels in 2023 assuming competitive pricing terms.

 

OPERATING AND FINANCIAL HIGHLIGHTS

  3 months ended   3 months ended   3 months ended   6 months ended   6 months ended
  June 30, 2022   Mar. 31, 2022   June 30, 2021   June 30, 2022   June 30, 2021
                                   
 

Operating Highlights

                                 
Copper (Caraíba Operations)                                  
Ore Processed (tonnes)   801,425       596,230       553,992     1,397,655       1,151,586
Grade (% Cu)   1.74       1.78       2.13     1.76       2.22
Cu Production (tonnes)   12,734       9,784       10,898     22,518       23,536
Cu Production (000 lbs)   28,073       21,570       24,026     49,643       51,889
Cu Sold in Concentrate (tonnes)   12,948       10,045       10,094     22,993       22,562
Cu Sold in Concentrate (000 lbs)   28,546       22,145       22,253     50,691       22,253
C1 cash cost of Cu produced (per lb)(1) $ 1.24     $ 1.31     $ 0.72   $ 0.63     $ 0.49
 

Gold (Xavantina Operations)

         
Au Production (oz)   11,122       8,796       10,377     19,918       19,828
C1 cash cost of Au Produced (per oz)(1) $ 643     $ 638     $ 499   $ 641     $ 494
AISC of Au produced (per oz)(1) $ 1,169     $ 1,092     $ 660   $ 1,135     $ 652
 

Financial Highlights ($ in millions, except per share amounts)

Revenues $ 114.9     $ 108.9     $ 120.7   $ 223.8     $ 243.2
Gross profit   50.7       61.0       83.7     111.7       166.5
EBITDA(1)   53.9       78.1       112.0     132.0       167.2
Adjusted EBITDA(1)   55.8       62.4       85.5     118.2       172.2
Cash flow from operations   22.4       44.0       85.1     66.4       147.2
Net income   24.1       52.5       84.0     76.6       116.0
Net income attributable to owners of the Company   23.8       52.1       83.4     75.9       115.2
Per share (basic)   0.26       0.58       0.95     0.84       1.31
Per share (diluted)   0.26       0.57       0.89     0.83       1.24
Adjusted net income attributable to owners of the Company(1)  

24.4

     

33.0

     

53.5

   

57.3

     

109.8

Per share (basic)   0.27       0.37       0.61     0.63       1.25
Per share (diluted)   0.27       0.36       0.57     0.62       1.18
Cash, cash equivalents, and short-term investments   429.9       365.5       137.7     429.9       137.7
Working capital(1)   417.7       443.7       118.9     417.7       118.9
Net (cash) debt(1)   (10.2 )     (54.4 )     19.2     (10.2 )     19.2

(1) EBITDA, Adjusted EBITDA, Adjusted net income (loss) attributable to owners of the Company, Adjusted net income (loss) per share attributable to owners of the Company, Net (Cash) Debt, Working Capital, C1 cash cost of copper produced (per lb), C1 cash cost of gold produced (per ounce) and AISC of gold produced (per ounce) are non-IFRS measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three and six months ended June 30, 2022 and the Reconciliation of Non-GAAP Measures section at the end of this press release.

 

2022 GUIDANCE(*)

 

The Company is reaffirming its full-year production guidance, lowering consolidated 2022 capital expenditure guidance, and raising operating cost guidance for the year.

 

At its Caraíba Operations, the Company continues to guide to the high-end of its reaffirmed 2022 copper production guidance range of 43,000 to 46,000 tonnes. As previously noted, copper production is expected to be roughly equally weighted between the first and second halves of the year with mining of the initial Project Honeypot stope (RC03) at the Pilar Mine expected to support a continuation of strong mined and processed copper grades into Q3 2022. At the Xavantina Operations, higher gold grades are expected to drive modestly higher gold production during the second half of the year.

 

The Company is lowering its consolidated 2022 capital expenditure guidance by over $20 million, from $330-$375 million to $308-$354 million, as a result of capital replanning efforts and deferrals at the Caraíba Operations. The deferral of this capital spend is not expected to impact timelines of the Company’s key growth projects.

 

The Company is raising its full-year operating cost guidance ranges due to the impact of inflation in the cost of key consumables and a stronger BRL versus the US dollar during H1 2022 as well as an expected continuation of elevated copper concentrate sales to international markets in H2 2022. The Company’s revised 2022 copper C1 cash cost guidance range is $1.20 to $1.35 (originally $1.05 to $1.15) per pound of copper produced. The Company is also increasing its 2022 gold C1 cash costs and AISC guidance ranges to
$600 to $700 (previously $500 to $600) and $1,000 to $1,100 (previously $925 to $1,025), respectively, per ounce of gold produced for its Xavantina Operations.

 

2022 PRODUCTION AND COST GUIDANCE(*)

 

The Company’s cost guidance for 2022 assumes a USD:BRL foreign exchange rate of 5.30, a gold price of $1,725 per ounce and a silver price of $20.00 per ounce for H2 2022.

 

  Original Revised
     
Caraíba Operations    
Copper Production (tonnes) 43,000 – 46,000 Unchanged
C1 Cash Cost Guidance (US$/lb)(1) $1.05 – $1.15 $1.20 – $1.35
     
Xavantina Operations    
Gold Production (ounces) 39,000 – 42,000 Unchanged
C1 Cash Cost Guidance (US$/oz)(1) $500 – $600 $600 – $700
All-in Sustaining Cost (AISC) Guidance (US$/oz)(1) $925 – $1,025 $1,000 – $1,100

(1) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers.

 

2022 CAPITAL EXPENDITURE GUIDANCE(*)

 

The Company’s capital expenditure guidance for 2022 assumes a USD:BRL foreign exchange rate of 5.30 for H2 2022 and has been presented below in USD millions.

 

  Original Revised
   
Caraíba Operations  
Growth $125 – $140 $95 – $110
Sustaining $80 – $90 $85 – $95
Exploration $25 – $30 Unchanged
Total, Caraíba Operations $230 – $260 $180 – $205
     
Tucumã Project    
Growth $70 – $80 Unchanged
Exploration $5 – $6 Unchanged
Total, Tucumã Project $75 – $86 Unchanged
     
Xavantina Operations    
Growth $0 – $1 $2 – $4
Sustaining $16 – $18 Unchanged
Exploration $9 – $10 $10 – $11
Total, Xavantina Operations $25 – $29 $28 – $33
     
Company Total    
Growth $195 – $221 $167 – $194
Sustaining $96 – $108 $101 – $113
Exploration $39 – $46 $40 – $47
Total, Company $330 – $375 $308 – $354

(*) Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company’s SEDAR and EDGAR filings, including the Company’s most recent Annual Information Form (“AIF”), for complete risk factors.

 

Reconciliation of Non-IFRS Measures

 

The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including C1 cash cost of copper produced (per lb), C1 cash cost of gold produced (per ounce), AISC of gold produced (per ounce), EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

 

For additional details please refer to the Company’s discussion of non-GAAP and other performance measures in its Management’s Discussion and Analysis for the three and six months ended June 30, 2022 which is available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

 

C1 cash cost of copper produced (per lb.)

 

The following table provides a reconciliation of C1 cash cost of copper produced per pound to cost of production, its most directly comparable IFRS measure.

 

Reconciliation: 2022 – Q2   2022 – Q1   2021 – Q2   2022 – YTD   2021 – YTD
Cost of production $ 38,015     $ 29,163     $ 20,464     $ 67,178     $ 42,266  
Add (less):                                      
Transportation costs & other   2,579       (904 )     (569 )     (1,920 )     (1,382 )
Treatment, refining, and other   3,893       577       701       (1,330 )     (1,967 )
By-product credits   (6,438 )     1,869       1,516       4,448       2,491  
Incentive payments   (1,016 )     (4,812 )     (5,522 )     (11,250 )     (11,722 )
Net change in inventory   (1,907 )     2,046       392       5,939       1,171  
Foreign exchange translation and other   (178 )     386       352       208       199  
C1 cash costs $ 34,948     $ 28,325     $ 17,334     $ 63,273     $ 31,056  
           
Mining $ 23,933     $ 20,126     $ 13,732     $ 44,059     $ 11,869  
Processing   7,988       6,447       5,132       14,435       4,010  
Indirect   5,572       4,518       3,600       10,090       3,264  
Production costs   37,493       31,091       22,464       68,584       19,143  
By-product credits   (6,438 )     (4,812 )     (5,522 )     (11,250 )     (6,200 )
Treatment, refining and other   3,893       2,046       392       5,939       779  
C1 cash costs $ 34,948     $ 28,325     $ 17,334     $ 63,273     $ 13,722  
           
Payable copper produced (lb, 000)   28,073       21,570       24,026       49,643       51,889  
           
Mining $ 0.85     $ 0.93     $ 0.57     $ 0.89     $ 0.43  
Processing $ 0.28     $ 0.30     $ 0.21     $ 0.29     $ 0.14  
Indirect $ 0.20     $ 0.21     $ 0.15     $ 0.20     $ 0.12  
By-product credits $ (0.23 )   $ (0.22 )   $ (0.23 )   $ (0.23 )   $ (0.22 )
Treatment, refining and other $ 0.14     $ 0.09     $ 0.02     $ 0.12     $ 0.03  
C1 cash costs of copper produced (per lb) $ 1.24     $ 1.31     $ 0.72     $ 1.27     $ 0.49  

C1 cash cost of gold produced and All-in Sustaining Cost of gold produced (per ounce)

 

The following table provides a reconciliation of C1 cash cost of gold produced per ounce and AISC of gold produced per ounce to cost of production, its most directly comparable IFRS measure.

 

Reconciliation: 2022 – Q2   2022 – Q1   2021 – Q2   2022 – YTD   2021 – YTD
Cost of production $ 7,225     $ 5,392     $ 5,080     $ 12,617     $ 10,164  
Add (less):          
Incentive payments   (188 )     (585 )     (210 )     (773 )     (493 )
Net change in inventory   (73 )     727       292       654       165  
By-product credits   (145 )     (124 )     (157 )     (269 )     (305 )
Foreign exchange translation and other   327       206       176       533       257  
C1 cash costs $ 7,146     $ 5,616     $ 5,181     $ 12,762     $ 9,788  
Site general and administrative   882       559       369       1,441       676  
Accretion of mine closure and rehabilitation provision   112       112       (63 )     224       (112 )
Sustaining capital expenditure   3,690       2,296       527       5,986       1,012  
Sustaining leases   894       822       565       1,716       1,027  
Royalties and production taxes   277       204       271       481       540  
AISC $ 13,001     $ 9,609     $ 6,850     $ 22,610     $ 12,931  
           
  2022 – Q2   2022 – Q1   2021 – Q2   2022 – YTD   2021 – YTD
Costs          
Mining $ 3,929     $ 3,218     $ 2,481     $ 7,147     $ 4,744  
Processing   2,285       1,698       1,937       3,983       3,617  
Indirect   1,077       824       920       1,901       1,732  
Production costs   7,291       5,740       5,338       13,031       10,093  
By-product credits   (145 )     (124 )     (157 )     (269 )     (305 )
C1 cash costs $ 7,146     $ 5,616     $ 5,181     $ 12,762     $ 9,788  
Site general and administrative   882       559       369       1,441       676  
Accretion of mine closure and rehabilitation provision   112       112       (63 )     224       (112 )
Sustaining capital expenditure   3,690       2,296       527       5,986       1,012  
Sustaining leases   894       822       565       1,716       1,027  
Royalties and production taxes   277       204       271       481       540  
AISC $ 13,001     $ 9,609     $ 6,850     $ 22,610     $ 12,931  
           
Costs per ounce          
Payable gold produced (ounces)   11,122       8,796       10,377       19,918       19,828  
           
Mining $ 353     $ 366     $ 239     $ 359     $ 239  
Processing $ 205     $ 193     $ 187     $ 200     $ 182  
Indirect $ 97     $ 94     $ 89     $ 95     $ 87  
By-product credits $ (12 )   $ (15 )   $ (15 )   $ (13 )   $ (14 )
C1 cash costs of gold produced (per ounce) $ 643     $ 638     $ 499     $ 641     $ 494  
AISC of gold produced (per ounce) $ 1,169     $ 1,092     $ 660     $ 1,135     $ 652  

Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA

 

The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.

 

Reconciliation: 2022 – Q2   2022 – Q1   2021 – Q2   2022 – YTD   2021 – YTD
Net Income $ 24,110     $ 52,486     $ 83,979     $ 76,596     $ 116,036  
Adjustments:          
Finance expense   8,154       5,496       2,306       13,650       6,076  
Income tax expense   5,283       8,606       15,862       13,889       23,691  
Amortization and depreciation   16,360       11,504       9,871       27,865       21,382  
EBITDA $ 53,907     $ 78,092     $ 112,018     $ 132,000     $ 167,185  
Foreign exchange loss (gain)   3,303       (18,709 )     (30,718 )     (15,406 )     (2,093 )
Share based compensation   (2,333 )     1,990       2,480       (343 )     4,826  
Incremental COVID-19 costs   952       1,004       1,749       1,956       2,305  
Adjusted EBITDA $ 55,829     $ 62,377     $ 85,529     $ 118,207     $ 172,223  

Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company

 

The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.

 

Reconciliation: 2022 – Q2   2022 – Q1   2021 – Q2   2022 – YTD   2021 – YTD
Net income as reported attributable to the owners of the
Company $ 23,820     $ 52,107     $ 83,419     $ 75,927     $ 115,168  
Adjustments:          
Share based compensation   (2,333 )     1,990       2,480       (343 )     4,826  
Unrealized foreign exchange loss (gain) on USD          
denominated balances in MCSA   1,038       (1,337 )     (8,712 )     (299 )     (912 )
Unrealized foreign exchange loss (gain) on foreign exchange derivative contracts   1,405       (24,615 )     (29,799 )     (23,210 )     (12,928 )
Incremental COVID-19 costs   946       998       1,735       1,944       2,291  
Unrealized (gain) loss on interest rate derivative          
contracts               6             (409 )
Tax effect on the above adjustments   (519 )     3,808       4,344       3,289       1,771  
Adjusted net income attributable to owners of the Company $ 24,357     $ 32,951     $ 53,473     $ 57,308     $ 109,807  
           
Weighted average number of common shares          
Basic   90,539,647       90,238,008       88,251,995       90,389,661       88,158,672  
Diluted   91,850,321       92,050,104       93,314,274       91,887,665       93,106,210  
           
Adjusted EPS          
Basic $ 0.27     $ 0.37     $ 0.61     $ 0.63     $ 1.25  
Diluted $ 0.27     $ 0.36     $ 0.57     $ 0.62     $ 1.18  

Net (Cash) Debt

 

The following table provides a calculation of net (cash) debt based on amounts presented in the Company’s condensed consolidated interim financial statements as at the periods presented.

 

  June 30, 2022   March 31, 2022   December 31, 2021   June 30, 2021
Current portion of loans and borrowings $ 16,219     $ 8,740     $ 4,344     $ 4,461  
Long-term portion of loans and borrowings   403,492       402,345       54,906       152,404  
Less:                              
Cash and cash equivalents   (329,292 )     (365,465 )     (130,129 )     (137,655 )
Short-term investments   (100,589 )     (100,018 )           (26,408 )
Net (cash) debt $ (10,170 )   $ (54,398 )   $ (70,879 )   $ (7,198 )

Working capital and Available liquidity

 

The following table provides a calculation for these based on amounts presented in the Company’s condensed consolidated interim financial statements as at the periods presented.

 

  June 30, 2022   March 31, 2022   December 31, 2021   June 30, 2021
Current assets $ 523,201     $ 546,439     $ 208,686     $ 202,342  
Less: Current liabilities   (105,527 )     (102,743 )     (122,660 )     (83,453 )
Working capital $ 417,674     $ 443,696     $ 86,026     $ 118,889  
         
Cash and cash equivalents   329,292       365,465       130,129       137,655  
Short-term investments   100,589       100,018       26,408        
Available undrawn revolving credit
facilities   75,000       75,000       100,000        
Available liquidity $ 504,881     $ 540,483     $ 256,537     $ 137,655  

ABOUT ERO COPPER CORP

 

Ero is a high-margin, high-growth, clean copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company’s primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. 100% owner of the Company’s Caraíba Operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança), an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. (“NX Gold”) which owns the Xavantina Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Project, can be found on the Company’s website (www.erocopper.com), on SEDAR (www.sedar.com), and on EDGAR (www.sec.gov).

 

Posted August 3, 2022

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