Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 was 17.3 million or 41.9 million, funding capital expenditures of 238 million [71] Business Line Data and Key Metrics Changes - At Caraiba operations, copper production was 10,766 tonnes, with C1 cash costs at 371 per ounce, leading to an increase in 2023 gold production guidance from 50,000-53,000 ounces to 55,000-59,000 ounces [43] Market Data and Key Metrics Changes - The Brazilian real strengthened against the US dollar, averaging BRL4.88 in Q3, impacting cash costs and overall financial performance [40][25] - The company remains hedged on approximately 75% of copper production for the remainder of the year through a zero-cost collar hedge program [34] Company Strategy and Development Direction - The company is focused on long-term value creation through growth initiatives, including the Tucuma project, which is over 70% physically complete [41][46] - A binding term sheet was executed to earn a 60% interest in Vale Base Metals Furnas copper project, indicating a strategic partnership for future growth [24][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance despite macroeconomic challenges, emphasizing the importance of scenario analysis for risk management [67] - The company is taking a conservative approach regarding guidance for the Tucuma project, maintaining a focus on timely delivery and operational readiness [78][79] Other Important Information - The total direct project capital estimate for the Tucuma project remains unchanged at approximately $305 million, with various cost offsets identified [30][82] - The company is actively exploring additional opportunities in the Western Carajas region, indicating potential for future growth [63] Q&A Session Summary Question: Update on PMA smelter and domestic vs international sales - No sales were made to PMA during the quarter due to maintenance issues, but potential opportunities for future sales are being explored [15] Question: Working capital needs related to Tucuma - Management does not anticipate a significant change in working capital drawdown due to various levers being explored [16] Question: Details on the Furnas project - The project represents a significant growth opportunity, with over 240 drill holes completed, and discussions with Vale are ongoing [54][100] Question: Liquidity concerns with copper prices - Management is comfortable with current liquidity but is continuously evaluating scenarios to mitigate risks [66] Question: Exploration updates at Caraiba - Exploration programs are ongoing, with positive results expected, but timelines for updates on nickel exploration may be delayed [86]
Ero Copper(ERO) - 2023 Q3 - Earnings Call Transcript