Ero Copper(US:ERO)2025-07-31 21:30Production Performance - Consolidated copper production reached a record 15,513 tonnes in Q2 2025, with a 25% increase in production at both the Caraíba and Tucumã Operations compared to Q1 2025[13] - The Caraíba Operations produced 9,162 tonnes of copper in concentrate at an average C1 cash cost of $2.07 per pound, reflecting a 25% quarter-on-quarter production growth and a 7% reduction in unit costs[13] - The Tucumã Operation produced 6,351 tonnes of copper in concentrate in Q2 2025, marking a 25% increase from Q1 2025 as commissioning and ramp-up continued[13] - The Xavantina Operations produced 7,743 ounces of gold at an average C1 cash cost of $1,115 per ounce, with a 17% increase in production quarter-on-quarter[13] - Total copper production guidance for 2025 revised to 67,500 - 80,000 tonnes, down from the original guidance of 75,000 - 85,000 tonnes[28] - Gold production guidance for 2025 adjusted to 40,000 - 50,000 ounces, down from 50,000 - 60,000 ounces[28] Financial Performance - Revenues for Q2 2025 were $163.5 million, up from $125.1 million in Q1 2025 and $117.1 million in Q2 2024[12] - Gross profit for Q2 2025 was $67.3 million, compared to $55.5 million in Q1 2025 and $43.3 million in Q2 2024[12] - Net income attributable to owners of the Company was $70.5 million in Q2 2025, an increase from $80.2 million in Q1 2025 and a loss of $53.2 million in Q2 2024[12] - Cash flow from operations was $90.3 million in Q2 2025, significantly higher than $65.4 million in Q1 2025 and $14.7 million in Q2 2024[12] - Year-to-date revenue for 2025 reached $288.6 million, up 29.5% from $222.9 million in 2024[39] - Net income for Q2 2025 was $71.0 million, a significant turnaround from a net loss of $53.4 million in Q2 2024[36] - Year-to-date net income for 2025 was $151.7 million, compared to a net loss of $60.2 million in 2024[39] Cost Management - The Caraíba Operations achieved a copper production of 9,162 tonnes in Q2 2025 at an average C1 cash cost of $2.07 per pound, with realized copper prices at $4.17 per pound[19] - At the Caraíba Operations, copper production guidance for 2025 is expected to be at the lower end of the 37,500 to 42,500 tonne range, with C1 cash costs projected to fall within $2.15 to $2.35 per pound[20] - The Tucumã Operation produced 6,351 tonnes of copper in Q2 2025, a 25% increase from Q1 2025, with updated full-year copper production guidance of 30,000 to 37,500 tonnes and C1 cash costs of $1.10 to $1.30 per pound[21] - C1 cash costs for gold in Q2 2025 were $1,115 per ounce, slightly up from $1,100 in Q1 2025[110] - AISC for gold in Q2 2025 was $2,234 per ounce, compared to $2,228 in Q1 2025, showing a marginal increase[110] Liquidity and Capital Structure - Available liquidity stood at $113.3 million as of Q2 2025, down from $169.8 million in the previous year[12] - As of June 30, 2025, the company had cash and cash equivalents of $68.3 million and available liquidity of $113.3 million, indicating strong liquidity position[43] - The company had a working capital deficit of $33.5 million as of June 30, 2025, indicating potential liquidity challenges[46] - The Company amended its Senior Credit Facility in January 2025, increasing the limit from $150.0 million to $200.0 million and extending the maturity to December 2028[49] - The Company entered into a $50.0 million non-priced copper prepayment facility, with repayments structured over 27 equal monthly installments starting October 2024, delivering 272 tonnes of copper monthly[50] Exploration and Development - The Company completed 18,000 meters of drilling at the Furnas Copper-Gold Project, with a Phase 1 drill program of 28,000 meters successfully concluded ahead of schedule[18] - The company expects to complete the 17,000-meter Phase 2 drill program at Furnas by year-end 2025, focusing on extending known mineralization[18] - Ongoing investments in mine modernization and mechanization at the Xavantina Operations are expected to drive higher production rates and lower unit costs in H2 2025[23] - The company has provided forward-looking statements regarding production, operating costs, and capital expenditure guidance, indicating a focus on expanding mineral resources and deposits[136] Market and Regulatory Considerations - The company emphasizes the importance of obtaining necessary governmental and regulatory approvals to advance its projects[140] - The company has acknowledged the inherent uncertainties in forward-looking statements and the potential for actual results to differ materially from projections[139] - The company has made assumptions regarding favorable market conditions, including equity and debt capital markets, to support its production and exploration initiatives[140] Shareholder Information - Basic net income per share for Q2 2025 was $0.68, a recovery from a loss of $0.52 per share in Q2 2024[36] - Adjusted EPS for Q2 2025 was $0.46, compared to $0.35 in Q1 2025 and $0.18 in Q2 2024, with a year-to-date adjusted EPS of $0.81[120] - As of July 31, 2025, the Company had 103,601,437 common shares issued and outstanding[82]