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Ero Copper Reports Second Quarter 2023 Operating and Financial Results

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Ero Copper Reports Second Quarter 2023 Operating and Financial Results

 

 

 

 

 

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, 2023. Management will host a conference call tomorrow, Friday, August 4, 2023, 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

  • Copper production of 12,004 tonnes at C1 cash costs(*) of $1.52 per pound of copper produced
  • Gold production of 12,333 ounces at C1 cash costs(*) and All-in Sustaining Costs(*) of $492 and $1,081, respectively, per ounce of gold produced
  • Meaningful quarter-on-quarter increase in copper production offset lower realized copper prices and a stronger Brazilian Real during the period
    • Net income attributable to the owners of the Company of $29.6 million ($0.32 per share on a diluted basis)
    • Adjusted net income attributable to the owners of the Company(*) of $22.3 million ($0.24 per share on a diluted basis)
    • Adjusted EBITDA(*) of $49.1 million
  • Available liquidity at quarter-end of $330.4 million included cash and cash equivalents of $124.4 million, short-term investments of $56.0 million, and $150.0 million of undrawn availability under the Company’s senior secured revolving credit facility
  • Major strategic initiatives continue to progress on schedule, positioning the Company for significant near-term growth
    • Construction of the Tucumã Project reached approximately 45% physical completion as of quarter-end. Total project capital estimate remains unchanged at approximately $305 million
    • At the Caraíba Operations, the pre-sink phase of development at the new external shaft was completed during the quarter with the headgear and winder installation on track to commence main sinking prior to year-end. Approximately 80% of planned capital expenditures were under contract or in the final stages of negotiation at quarter-end and remain within 5% of budget
    • At the Xavantina Operations, horizontal development into the new Matinha vein was completed during the quarter with first production expected in H2 2023
  • Reaffirming 2023 production and C1 cash cost(*) guidance; increasing full-year capital expenditure guidance by $15 to $20 million to reflect proactive investments at the Caraíba Operations
    • After conducting a detailed review of major projects and support infrastructure at the Caraíba Operations during the quarter, including infrastructure related to the Deepening, underground paste fill and tailings, the Company has elected to invest in various upgrades throughout H2 2023. These enhancements aim to bolster the Caraíba Operations’ ongoing projects and support expanded life-of-mine operating plans at the Pilar Mine

 

*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, 2023 and the Reconciliation of Non-IFRS Measures section at the end of this press release.

 

“We continued to deliver on our full-year operating plan during the second quarter while making significant progress on our organic growth initiatives,” said David Strang, Chief Executive Officer. “Despite softer copper prices and a significant strengthening of the BRL, excellent performance at our operations translated into solid operating margins and financial results for the quarter.

 

“Looking ahead, we anticipate a stronger second half of 2023 as we target commissioning of the new ball mill for our plant expansion project at the Caraíba Operations during the fourth quarter, and produce first ore from the recently developed Matinha vein at the Xavantina Operations.

 

“Construction of the Tucumã Project continues to advance on schedule and is nearing the halfway mark at approximately 45% physical completion. Electromechanical assembly of the process plant is now underway, and mine pre-strip remains on track to reach first sulphide ore in the fourth quarter of this year, as planned. At the Caraíba Operations, we completed the pre-sink phase of development at the new external shaft, achieving approximately 25% physical completion as of quarter-end. We are now in the process of hoisting the pre-assembled headframe to commence main shaft sinking activities prior to year-end.

 

“As the world’s focus on security of critical minerals supply chains grows more urgent, the timing of our growth trajectory appears increasingly favorable. We are proud to produce some of the lowest carbon-intensity metals in the world and remain on track to double copper production to over 100,000 tonnes in 2025 and achieve higher sustained gold production levels of 55,000 to 60,000 ounces per year beginning in 2024.”

 

SECOND QUARTER REVIEW

  • Mining & Milling Operations
    • The Caraíba Operations processed 840,821 tonnes of ore grading 1.55% copper, producing 12,004 tonnes of copper in concentrate during the quarter after metallurgical recoveries of 92.0%
      • Higher mined tonnage and copper grades due to planned stope sequencing drove an increase in copper production of nearly 30% quarter-on-quarter
    • The Xavantina Operations processed 34,377 tonnes of ore grading 13.20 grams per tonne, delivering 12,333 ounces of gold production after metallurgical recoveries of 84.6%
      • Processed gold grades increased over 11% quarter-on-quarter and 100% year-on-year
      • Metallurgical recoveries were impacted by elevated in-process inventory at quarter-end as well as elevated carbon content in several high-grade stopes mined and processed during the period
      • By-product silver production for the period was 8,579 ounces
  • Organic Growth Projects
    • The Company significantly advanced the construction of its Tucumã Project, which remains on schedule, achieving physical completion of approximately 45% as of quarter-end, up from approximately 30% at the end of Q1 2023
      • Mine pre-stripping is advancing as planned with over 5 million tonnes, or approximately 35% of total planned pre-strip volume, completed as of quarter-end. The mine remains on track to reach first sulphide ore in Q4 2023
      • Civil works are also tracking to schedule with foundations for the primary crusher, ball mill and flotation areas completed during the quarter. Electromechanical assembly commenced just after quarter-end, as planned
      • Total project capital estimate remains unchanged at approximately $305 million based on over 95% visibility of planned capital expenditures
      • Workforce training programs, established in partnership with The National Service for Industrial Training, a Brazilian non-profit organization focused on improving the competitiveness of Brazil’s manufacturing sector through technical and vocational education, are now well underway with nearly 100% of employees and contractors expected to come from within Brazil, including approximately two-thirds from communities surrounding the Tucumã Project
    • At the Caraíba Operations, the Company is focused on advancing its Pilar 3.0 initiative, designed to support sustained annual ore production levels of 3.0 million tonnes. The components of Pilar 3.0 include (i) Project Honeypot, an engineering initiative focused on recovering higher-grade material in the upper levels of the Pilar Mine, (ii) an expansion of the Caraíba mill from 3.0 to 4.2 million tonnes of annual throughput capacity, and (iii) construction of a new external shaft to service the lower levels of the Pilar Mine, including the Deepening Extension Zone
      • Construction of the new external shaft remains on schedule. The 40-meter pre-sink phase of shaft development was completed during the quarter, and the main sinking stage was successfully hoisted into the shaft subsequent to quarter-end. Hoisting of the pre-assembled headframe is currently underway with main shaft sinking expected to commence prior to year-end. Planned capital expenditures under contract or in the final stages of negotiation were approximately 80% at quarter-end and remains within 5% of budget
      • The Caraíba mill expansion remains on schedule with commissioning of the new ball mill on track to begin late in the year
    • Please see recent images from the Tucumã Project in Figures 1 through 4 and of construction on the Caraíba Operations’ new external shaft in Figures 5 and 6 below

 

Figure 1: July 2023 aerial view of the Tucumã Project, including (A) main substation, (B) crushed ore stockpile and belt feeder, (C) process plant, including ball mill, flotation and filtration, and (D) administrative offices, laboratories, fuel station, and equipment maintenance area.

 

Figure 2: Civil works underway on the Tucumã Project’s future process plant, including (A) rougher and cleaner flotation cells, (B) Jameson cells, (C) pyrite flotation, and (D) ball mill (July 2023).

 

Figure 3: Preparation for electromechanical assembly of the ball mill at the Tucumã Project (July 2023).

 

Figure 4: Construction of primary crusher retaining wall at the Tucumã Project (July 2023).

 

Figure 5: Hoisting of pre-assembled headframe at the Caraíba Operations’ new external shaft in July 2023.

 

Figure 6: Construction and assembly of the personnel and material winder building as of July 2023.

 

OPERATING AND FINANCIAL HIGHLIGHTS

 

    3 months
ended

June 30, 2023
  3 months
ended

Mar. 31, 2023
  3 months
ended

June 30, 2022
  6 months
ended
June 30, 2023
  6 months
ended
June 30, 2022
Operating Highlights                    
Copper (Caraíba Operations)                    
Ore Processed (tonnes)     840,821       772,548       801,425       1,613,369       1,397,655  
Grade (% Cu)     1.55       1.33       1.74       1.45       1.76  
Cu Production (tonnes)     12,004       9,327       12,734       21,331       22,518  
Cu Production (000 lbs)     26,464       20,564       28,073       47,027       49,643  
Cu Sold in Concentrate (tonnes)     11,612       9,464       12,948       21,076       22,993  
Cu Sold in Concentrate (000 lbs)     25,600       20,865       28,546       46,465       50,691  
C1 cash cost of Cu produced (per lb)(1)   $ 1.52     $ 1.70     $ 1.24     $ 1.60     $ 1.27  
Gold (Xavantina Operations)                    
Ore Processed (tonnes)     34,377       35,763       57,291       70,140       107,281  
Au Production (oz)     12,333       12,443       11,122       24,776       19,918  
C1 cash cost of Au Produced (per oz)(1)   $ 492     $ 436     $ 643     $ 464     $ 641  
AISC of Au produced (per oz)(1)   $ 1,081     $ 946     $ 1,169     $ 1,013     $ 1,135  
                     
Financial Highlights ($ in millions, except per share amounts)            
Revenues   $ 104.9     $ 101.0     $ 114.9     $ 205.9     $ 223.8  
Gross profit     39.4       40.1       50.7       79.5       111.7  
EBITDA(1)     61.9       52.2       53.9       114.1       132.0  
Adjusted EBITDA(1)     49.1       48.6       55.8       97.7       118.2  
Cash flow from operations     55.5       16.4       22.4       71.8       66.4  
Net income     29.9       24.5       24.1       54.4       76.6  
Net income attributable to owners of the Company     29.6       24.2       23.8       53.7       75.9  
Per share (basic)     0.32       0.26       0.26       0.58       0.84  
Per share (diluted)     0.32       0.26       0.26       0.58       0.83  
Adjusted net income attributable to owners of the Company(1)     22.3       22.5       24.4       44.7       57.3  
Per share (basic)     0.24       0.24       0.27       0.48       0.63  
Per share (diluted)     0.24       0.24       0.27       0.48       0.62  
Cash, cash equivalents, and short-term investments     180.4       236.6       429.9       180.4       429.9  
Working capital(1)     140.7       218.8       417.7       140.7       417.7  
Net (cash) debt(1)     246.5       174.2       (10.2 )     246.5       (10.2 )
(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, 2023 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
 

 

2023 PRODUCTION AND COST GUIDANCE(*)

 

The Company is reaffirming its 2023 copper production guidance for the Caraíba Operations of 44,000 to 47,000 tonnes of copper in concentrate. Mill throughput volumes are expected to be slightly lower in Q3 2023 compared to Q2 2023 and higher in Q4 2023 due to the anticipated commissioning of the new ball mill. Combined with expected copper grade variations related to planned stope sequencing, copper production is expected to decrease slightly in Q3 2023 before increasing in the last quarter of the year.

 

The Company is also maintaining its full-year C1 cash cost guidance for the Caraíba Operations of $1.40 and $1.60 per pound of copper produced. Unit operating costs are expected to be slightly higher in Q3 2023 compared to Q2 2023 and lowest in the last quarter of the year due to anticipated variations in quarterly mined and processed copper grades as well as total copper production.

 

At the Xavantina Operations, the Company is reaffirming its 2023 gold production guidance range of 50,000 to 53,000 ounces with slightly higher gold production expected in H2 2023 due to increased mill throughput volumes following the expected commencement of production from the Matinha vein.

 

The Company is also maintaining its full-year C1 cash cost guidance for the Xavantina Operations of $475 and $575 per ounce of gold produced and adjusting its AISC guidance range to $1,000 to $1,100 per ounce of gold produced to reflect the inclusion of sustaining lease payments and other miscellaneous sustaining expenses.

 

The Company’s cost guidance for 2023 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.

 

    2023 Guidance
Caraíba Operations    
Copper Production (tonnes)   44,000 – 47,000
C1 Cash Cost (US$/lb)(1)   $1.40 – $1.60
     
Xavantina Operations    
Gold Production (ounces)   50,000 – 53,000
C1 Cash Cost (US$/oz)(1)   $475 – $575
All-in Sustaining Cost (AISC) (US$/oz)(1)   $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. See the Reconciliation of Non-IFRS Measures section at the end of this press release for additional information.
 

 

2023 CAPITAL EXPENDITURE GUIDANCE(*)

 

After conducting a detailed review of major projects and support infrastructure at the Caraíba Operations during the quarter, including infrastructure related to the Deepening, underground paste fill and tailings, the Company has elected to invest in various upgrades throughout H2 2023. These enhancements aim to bolster the Caraíba Operations’ ongoing projects and support expanded life-of-mine operating plans at the Pilar Mine. As a result, the Company is increasing its full-year capital expenditure guidance by $15 to $20 million.

 

The Company’s capital expenditure guidance for 2023 assumes a USD:BRL foreign exchange rate of 5.30 and has been presented below in USD millions.

 

  2023 Guidance
Caraíba Operations  
Growth $90 – $105
Sustaining $70 – $80
Exploration $22 – $27
Total, Caraíba Operations $182 $212
   
Tucumã Project  
Growth $150 – $165
Exploration $0 – $1
Total, Tucumã Project $150 $166

 

Xavantina Operations
Growth $4 – $5
Sustaining $12 – $14
Exploration $6 – $7
Total, Xavantina Operations $22 – $26
   
Other Exploration Projects $3 $5
   
Company Total  
Growth $244 – $275
Sustaining $82 – $94
Exploration $31 – $40
Total, Company $357 – $409
   

(*) 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 recent Annual Information Form for the year ended December 31, 2022 and dated March 7, 2023 (the “AIF”), for complete risk factors.

Reconciliation of Non-IFRS Measures

 

Financial results of the Company are presented in accordance with IFRS. 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-IFRS and other performance measures in its Management’s Discussion and Analysis for the three and six months ended June 30, 2023 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:   2023 – Q2   2023 – Q1   2022 – Q2   2023 – YTD   2022 – YTD
Cost of production   $ 37,767     $ 36,285     $ 38,015     $ 74,052     $ 67,178  
Add (less):                    
Transportation costs & other     1,733       1,339       2,579       3,072       4,448  
Treatment, refining, and other     4,248       2,527       3,893       6,775       5,939  
By-product credits     (3,704 )     (2,810 )     (6,438 )     (6,514 )     (11,250 )
Incentive payments     (1,129 )     (1,237 )     (1,016 )     (2,366 )     (1,920 )
Net change in inventory     1,323       (1,185 )     (1,907 )     138       (1,330 )
Foreign exchange translation and other     (13 )     15       (178 )     2       208  
C1 cash costs   $ 40,225     $ 34,934     $ 34,948     $ 75,159     $ 63,273  

 

Mining   $ 25,794     $ 23,210     $ 23,933     $ 49,004     $ 44,059  
Processing     7,643       6,554       7,988       14,197       14,435  
Indirect     6,244       5,453       5,572       11,697       10,090  
Production costs     39,681       35,217       37,493       74,898       68,584  
By-product credits     (3,704 )     (2,810 )     (6,438 )     (6,514 )     (11,250 )
Treatment, refining and other     4,248       2,527       3,893       6,775       5,939  
C1 cash costs   $ 40,225     $ 34,934     $ 34,948     $ 75,159     $ 63,273  
                     
Payable copper produced (lb, 000)     26,464       20,564       28,073       47,027       49,643  
                     
Mining   $ 0.97     $ 1.13     $ 0.85     $ 1.04     $ 0.89  
Processing   $ 0.29     $ 0.32     $ 0.28     $ 0.30     $ 0.29  
Indirect   $ 0.24     $ 0.27     $ 0.20     $ 0.25     $ 0.20  
By-product credits   $ (0.14 )   $ (0.14 )   $ (0.23 )   $ (0.14 )   $ (0.23 )
Treatment, refining and other   $ 0.16     $ 0.12     $ 0.14     $ 0.15     $ 0.12  
C1 cash costs of copper produced (per lb)   $ 1.52     $ 1.70     $ 1.24     $ 1.60     $ 1.27  
                                         

 

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:   2023 – Q2   2023 – Q1   2022 – Q2   2023 – YTD   2022 – YTD
Cost of production   $ 5,657     $ 6,107     $ 7,225     $ 11,764     $ 12,617  
Add (less):                    
Incentive payments     (311 )     (407 )     (188 )     (718 )     (773 )
Net change in inventory     936       (352 )     (73 )     584       654  
By-product credits     (163 )     (176 )     (145 )     (339 )     (269 )
Smelting and refining costs     63       76       62       139       104  
Foreign exchange translation and other     (119 )     176       265       57       429  
C1 cash costs   $ 6,063     $ 5,424     $ 7,146     $ 11,487     $ 12,762  
Site general and administrative     1,338       1,232       882       2,570       1,441  
Accretion of mine closure and rehabilitation provision     111       105       112       216       224  
Sustaining capital expenditure     3,530       3,013       3,690       6,543       5,986  
Sustaining leases     1,740       1,660       894       3,400       1,716  
Royalties and production taxes     556       338       277       894       481  
AISC   $ 13,338     $ 11,772     $ 13,001     $ 25,110     $ 22,610  

 

Costs                    
Mining   $ 3,017     $ 2,567     $ 3,929     $ 5,584     $ 7,147  
Processing     2,048       1,905       2,285       3,953       3,983  
Indirect     1,098       1,052       1,015       2,150       1,797  
Production costs     6,163       5,524       7,229       11,687       12,927  
Smelting and refining costs     63       76       62       139       104  
By-product credits     (163 )     (176 )     (145 )     (339 )     (269 )
C1 cash costs   $ 6,063     $ 5,424     $ 7,146     $ 11,487     $ 12,762  
Site general and administrative     1,338       1,232       882       2,570       1,441  
Accretion of mine closure and rehabilitation provision     111       105       112       216       224  
Sustaining capital expenditure     3,530       3,013       3,690       6,543       5,986  
Sustaining leases     1,740       1,660       894       3,400       1,716  
Royalties and production taxes     556       338       277       894       481  
AISC   $ 13,338     $ 11,772     $ 13,001     $ 25,110     $ 22,610  
                     
Costs per ounce                    
Payable gold produced (ounces)     12,333       12,443       11,122       24,776       19,918  
                     
Mining   $ 245     $ 206     $ 353     $ 225     $ 359  
Processing   $ 166     $ 153     $ 205     $ 160     $ 200  
Indirect   $ 89     $ 85     $ 91     $ 87     $ 90  
Smelting and refining   $ 5     $ 6     $ 6     $ 6     $ 5  
By-product credits   $ (13 )   $ (14 )   $ (12 )   $ (14 )   $ (13 )
C1 cash costs of gold produced (per ounce)   $ 492     $ 436     $ 643     $ 464     $ 641  
AISC of gold produced (per ounce)   $ 1,081     $ 946     $ 1,169     $ 1,013     $ 1,135  
                                         

 

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:   2023 – Q2   2023 – Q1   2022 – Q2   2023 – YTD   2022 – YTD
Net Income   $ 29,941     $ 24,500     $ 24,110     $ 54,441     $ 76,596  
Adjustments:                    
Finance expense     5,995       6,526       8,154       12,521       13,650  
Income tax expense     5,773       4,666       5,283       10,439       13,889  
Amortization and depreciation     20,239       16,506       16,361       36,745       27,865  
EBITDA   $ 61,948     $ 52,198     $ 53,908     $ 114,146     $ 132,000  
Foreign exchange (gain) loss     (15,057 )     (8,621 )     3,303       (23,678 )     (15,406 )
Share based compensation     4,909       5,017       (2,333 )     9,926       (343 )
Unrealized loss (gain) on copper derivative contracts     (2,654 )                 (2,654 )      
Incremental COVID-19 costs                 952             1,956  
Adjusted EBITDA   $ 49,146     $ 48,594     $ 55,830     $ 97,740     $ 118,207  
                                         

 

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:   2023 – Q2   2023 – Q1   2022 – Q2   2023 – YTD   2022 – YTD
Net income as reported attributable to the owners of the Company   $ 29,576     $ 24,154     $ 23,820     $ 53,730     $ 75,927  
Adjustments:                    
Share based compensation     4,909       5,017       (2,333 )     9,926       (343 )
Unrealized foreign exchange (gain) loss on USD denominated balances in MCSA     (9,716 )     (4,753 )     1,038       (14,469 )     (299 )
Unrealized foreign exchange (gain) loss on foreign exchange derivative contracts     (2,078 )     (3,152 )     1,405       (5,230 )     (23,210 )
Unrealized gain on interest rate derivative contracts     (2,644 )                 (2,644 )      
Incremental COVID-19 costs                 946             1,944  
Tax effect on the above adjustments     2,205       1,208       (519 )     3,413       3,289  
Adjusted net income attributable to owners of the Company   $ 22,252     $ 22,474     $ 24,357     $ 44,726     $ 57,308  
                     
Weighted average number of common shares                    
Basic     92,685,916       92,294,045       90,539,647       92,491,063       90,389,661  
Diluted     93,643,447       93,218,281       91,850,321       93,429,191       91,887,665  
                     
Adjusted EPS                    
Basic   $ 0.24     $ 0.24     $ 0.27     $ 0.48     $ 0.63  
Diluted   $ 0.24     $ 0.24     $ 0.27     $ 0.48     $ 0.62  
                                         

 

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, 2023   March 31, 2023   December 31, 2022   June 30, 2022
Current portion of loans and borrowings $ 17,105     $ 9,221     $ 15,703     $ 16,219  
Long-term portion of loans and borrowings   409,818       401,595       402,354       403,492  
Less:              
Cash and cash equivalents   (124,382 )     (209,908 )     (177,702 )     (329,292 )
Short-term investments   (56,011 )     (26,739 )     (139,700 )     (100,589 )
Net (cash) debt $ 246,530     $ 174,169     $ 100,655     $ (10,170 )
                               

 

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, 2023   March 31, 2023   December 31, 2022   June 30, 2022
Current assets $ 280,783     $ 331,241     $ 392,427     $ 523,201  
Less: Current liabilities   (140,090 )     (112,448 )     (129,121 )     (105,527 )
Working capital $ 140,693     $ 218,793     $ 263,306     $ 417,674  
               
Cash and cash equivalents   124,382       209,908       177,702       329,292  
Short-term investments   56,011       26,739       139,700       100,589  
Available undrawn revolving credit facilities   150,000       150,000       75,000       75,000  
Available liquidity $ 330,393     $ 386,647     $ 392,402     $ 504,881  
                               

 

ABOUT ERO COPPER CORP

 

Ero is a high-margin, high-growth, low carbon-intensity 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. 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). The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange.

 

Posted August 4, 2023

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