ERO Delivers Record Copper Output and Cash Flow in 2025, Strengthens Guidance for 2026

Record Copper Output and Financials Mark 2025 as Standout Year

Ero Copper ended 2025 on a high note, reporting its strongest operational and financial results to date. Consolidated full-year copper production reached 64,307 tonnes—a new record—driven by a 19,706-tonne fourth quarter. Cash flow from operations surged to $395.1 million, a 172% increase over 2024, while adjusted EBITDA nearly doubled to $409.7 million year-over-year. Net income for the year reached $263.7 million, demonstrating the company’s operational leverage as commodity prices remained supportive.

Operational Efficiency in Caraba and Tucum Drives Margin Growth

The Caraba Operations led the way with full-year copper output of 36,035 tonnes at C1 cash costs of $2.22 per pound. Plant throughput achieved a record 1.2 million tonnes in Q4, offsetting lower grades and some late-year downtime. The Tucum Operation ramped up strongly, producing 28,272 tonnes of copper for the year, with H2 output benefiting from higher grades and the declaration of commercial production in July. C1 cash costs at Tucum of $1.69 per pound point to solid cost control as production scaled up.

Gold Production and Strategic Shipments Add to Earnings Power

Xavantina Operations’ full-year gold output reached 37,291 ounces, with 14,999 ounces of gold concentrate shipped in Q4 following the ramp-up of the gold concentrate program. C1 cash costs for gold averaged $976 per ounce. Notably, gold shipments and the shift to mechanized mining contributed to quarterly gold production more than doubling since Q1 2025, supporting higher development rates into 2026.

Liquidity, Net Debt Ratio, and EBITDA Highlight Financial Strength

Ero’s available liquidity at year-end stood at $150.4 million, including $105.4 million in cash and $45 million in undrawn credit—an increase of nearly $40 million over the previous quarter. The company’s net debt leverage ratio improved significantly, falling to 1.2x at the end of 2025 from 2.6x a year earlier. Adjusted EBITDA for the year reached $409.7 million, marking a sharp improvement in both operating margins and financial flexibility.

Guidance for 2026: Targeting Further Output and Margin Gains

Ero reaffirmed its 2026 guidance, aiming for 67,500 to 77,500 tonnes of consolidated copper output—a potential increase of up to 20%. C1 cash costs are projected between $2.15 to $2.35 per pound for copper operations, consistent with cost discipline even as throughput increases. Gold production at Xavantina is forecasted in the 40,000–50,000 ounce range, with unit costs highest in Q1 before declining as production ramps. Management expects both gold and copper production to be weighted toward the second half of the year due to mine sequencing and plant upgrades.

Capital Expenditure to Drive Long-Term Growth—Furnas and Portfolio Investments

Capital spending for 2026 is projected to fall between $275 million and $320 million, supporting ongoing expansion at the Caraba and Tucum mines, further development at Xavantina, and advancing the Furnas Copper-Gold Project through exploration and engineering. Growth capital of around $80 million will support infrastructure, mine ventilation, and equipment to sustain future growth.

Investor Takeaway: Operational Momentum Sets Foundation for Growth

Ero Copper enters 2026 benefitting from operational momentum, a strengthened balance sheet, and a clear path to higher output and margin expansion. With production guidance and investments to back its long-term strategy, Ero’s performance in 2025 places it well for continued growth. Investors may wish to monitor progress on the Caraba and Tucum upgrades, gold shipments from Xavantina, and developments at the Furnas project as the company seeks to translate operational excellence into sustained returns.

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