Ero Announces Inaugural PEA for Furnas, Outlines Low Capital Intensity Project with a 24-Year Initial Mine Life

Core Viewpoint - Ero Copper Corp. announced the results of the Preliminary Economic Assessment (PEA) for the Furnas Copper-Gold Project, highlighting its potential as a large-scale, long-life operation with strong economic fundamentals and a robust production profile [2][4]. Project Overview - The Furnas Project is located in the Carajás Mineral Province, Brazil, and is being developed in partnership with Vale Base Metals (VBM) under an earn-in agreement, allowing Ero to earn a 60% interest upon completion of specified work programs [2][42]. - The PEA indicates a 24-year initial mine life with significant production capabilities, including an average annual output of approximately 108,000 tonnes of copper equivalent over the first 15 years [6][21]. Economic Highlights - The after-tax net present value (NPV) at an 8% discount rate is estimated at $2.0 billion, with an internal rate of return (IRR) of 27.0% based on long-term prices of $4.60 per pound for copper, $3,300 per ounce for gold, and $40.00 per ounce for silver [6][10]. - At higher commodity prices of $6.10 per pound for copper and $5,550 per ounce for gold, the after-tax NPV increases to $4.7 billion, and the IRR rises to approximately 44.0% [6][10]. Production and Cost Metrics - Life-of-mine (LOM) C1 cash costs are projected to be approximately $0.30 per pound of copper produced, benefiting from significant by-product credits from gold and silver [6][10]. - Initial capital expenditures are estimated at $1.3 billion, with a low capital intensity of approximately $16,000 per copper equivalent tonne [6][10]. Exploration and Development Strategy - The company plans to continue exploration drilling to upgrade inferred resources and extend mineralization, with a focus on high-grade zones [15][16]. - Ongoing engineering, environmental, and permitting work is being advanced to support future studies and project execution [18][20]. Infrastructure and Location Advantages - The Furnas Project is strategically located near existing infrastructure, including roads, a cement plant, and a railroad loadout facility, which is expected to facilitate project execution and reduce initial capital requirements [38][39]. Joint Venture and Earn-In Agreement - The earn-in agreement with VBM allows Ero to earn a 60% interest in the project by completing various exploration and engineering milestones over five years [42][44].