Q3 2024 Ero Copper Corp Earnings Call Transcript
Key Points
- Ero Copper Corp (ERO) successfully completed the construction of the Tua operation, achieving the first production of saleable copper concentrate without any lost time injuries.
- The company executed a definitive earning agreement on the FNAs copper gold project with Vale Base Metals, advancing the project towards a final investment decision.
- Ero Copper Corp (ERO) achieved an 11.9% increase in copper production at the Kariba operation, driven by higher mine grades.
- The company reported a significant decrease in C1 cash costs by 24.5% to $1.63 per pound of copper produced, supported by favorable treatment and refining terms and a favorable exchange rate.
- Ero Copper Corp (ERO) maintained strong financial performance with quarterly operating cash flows of $52.7 million and adjusted EBITDA of $62.2 million, alongside a robust liquidity position of $125.2 million.
- The company faced operational challenges at both the Kariba and Tucuman operations, impacting production rates and leading to revised production guidance.
- Underground development rates at Kariba did not advance as anticipated due to underperformance by a third-party contractor, necessitating the engagement of a second contractor.
- Voltage fluctuations on the regional power grid affected the ramp-up of the Tucuman operation, causing intermittent power disruptions and delaying commercial production.
- Ero Copper Corp (ERO) had to revise its full-year copper production guidance for Tucuman to a range of 8 to 11,000 tons due to power issues and extended ramp-up timelines.
- The company anticipates that Kariba will initially underperform relative to previous 2025 guidance due to ongoing development challenges, impacting production in the first half of the year.
Yeah, thank you for standing by. This is the conference operator. Welcome to the Ero Copper third quarter, 2024 operating and financial results conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Courtney Lynn, senior Vice President of corporate development, investor relations and sustainability. Please go ahead.
Thank you operator. Good morning and welcome to Aero Copper's third quarter earnings call. Our operating and financial results were released yesterday afternoon and are available on our website as are our financial statements and MD and A for the three and nine months ended. September 30th 2024.
On the call with me today are David Strang Ero's cofounder and Chief Executive Officer; Makko DeFilippo, President and Chief Operating Officer; and Wayne Drier, Chief Financial Officer. We will be making forward-looking statements
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