Commodities
Ero Copper Reports Second Quarter 2026 Operating and Financial Results
(all amounts in US dollars, unless otherwise noted) VANCOUVER, British Columbia, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or the “Company”) is pleased to announce its operating and financial results for the three and six months ended June 30, 2026. Management will host a conference call tomorrow, Thursday, August 6, 2026, at 11:30 a.m. Eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release. HIGHLIGH
About this update from Ero Copper Corp.
(all amounts in US dollars, unless otherwise noted) VANCOUVER, British Columbia, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the "Company") is pleased to announce its operating and financial results for the three and six months ended June 30, 2026. Management will host a conference call tomorrow, Thursday, August 6, 2026, at 11:30 a.m. Eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release. HIGHLIGHTS "Ero delivered a solid second quarter, generating strong cash flow and continuing to deliver on our commitment to deleverage the balance sheet. The progress we have made over the past 18 months has materially strengthened the Company's financial position and is delivering true value to our business - core commitments we made to our shareholders in early 2025," said Makko DeFilippo, President & Chief Executive Officer. "Our financial progress is being underpinned by operational execution across the portfolio. At Caraíba, we remain on track to achieve another annual plant throughput record in 2026, approximately 20% above 2025 levels. At Tucumã, plant throughput increased 27% quarter-on-quarter, and our tailings filtration expansion is now partially complete and remains on track for completion by year-end. Xavantina also delivered a significant improvement in mining and processing performance compared to the first quarter, together with a substantial increase in gold recovered from historic concentrate stockpiles. We are seeing true benefits of our OneEro strategic initiative and are entering the second half with momentum across all three operations and a clear line of sight to further production and cash flow growth. After an excellent Q2, we believe Ero is well positioned to deliver a strong second half of 2026." (1) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. (2) The Company's net debt leverage ratio as of June 30, 2026 of 0.8x was calculated as net debt of $452.7 million divided by trailing 12-month adjusted EBITDA of $533.1 million. SECOND QUARTER REVIEW The Caraíba Operations The Tucumã Operation The Xavantina Operations (1) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. OPERATING HIGHLIGHTS (1) Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. (2) The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, copper C1 cash costs for the Tucumã Operation reflects costs from Q3 2025 onward only. (3) Gold sold in concentrate includes gold ounces produced in flotation and the historic gold concentrate stockpile. FINANCIAL HIGHLIGHTS ($ in millions, except per share amounts) (1) Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. 2026 GUIDANCE Consolidated copper production guidance is maintained in the range of 67,500 to 77,500 tonnes, with production expected to be second-half weighted at both copper operations. At the Caraíba Operations, H2 2026 production is expected to benefit from higher grades from planned mine sequencing along with higher throughput levels. Production at the Tucumã Operation is expected to be modestly higher in H2 2026 as sustained higher plant throughput rates from ongoing process improvements are expected to offset lower grades. At Xavantina, gold production from mining and processing operations is expected at the low end of the guided range of 40,000 to 50,000 ounces in 2026, reflecting the impact of extended downtime in H1 2026 related to the installation and tie-in of ventilation and cooling infrastructure and a slower ramp-up of mining activities in Q2. Gold production is expected to increase sequentially through the remainder of the year, with full-year production projected to be significantly second-half weighted. Gold concentrate sales volumes are expected to increase significantly in H2 2026 with drier seasonal conditions and the commissioning of a mobile filter press and industrial dryer in late Q2 2026, which are expected to meaningfully reduce concentrate drying times. Gold concentrate sales from historic stockpiles are not included in Xavantina's guidance ranges, which capture only production from mining and processing operations. Consolidated copper C1 cash cost(1) guidance is maintained in the range of $2.15 to $2.35 per pound produced. Costs are expected to decline sequentially through H2 2026, driven by increased production and higher processed grades at the Caraíba Operations as well as the expected benefits from higher byproduct revenues and improved smelting and refining terms relative to original guidance. If the current strength of the Brazilian real and inflationary pressures associated with the U.S.-Iran conflict persist through the remainder of the year, the Company estimates potential incremental impacts of approximately $0.10 per pound on reported consolidated copper C1 cash costs(1). The cash impact associated with the stronger Brazilian real is expected to be offset by approximately $40 million to $45 million of full-year realized gains from the Company's foreign exchange hedge program, assuming a USD/BRL exchange rate of 5.10 through year-end. C1 cash cost(1) and AISC(1) guidance for Xavantina's mined gold production has been updated to $1,100 to $1,350 per ounce and $2,200 to $2,700 per ounce, respectively, reflecting production volumes that are expected to be at the low end of the maintained guidance range. Unit costs are expected to decline through H2 2026 as production volumes increase. If the current strength of the Brazilian real and inflationary pressures associated with the U.S.-Iran conflict persist through the remainder of the year, the Company estimates potential incremental impacts of approximately $100 per ounce on reported C1 cash costs(1) for mined gold. The cash impact of the stronger Brazilian real is expected to be offset by realized gains from the Company's foreign exchange hedge program. Total capital expenditure guidance has been updated to $285 to $330 million, reflecting the approval of approximately $10 million for a new powerline at Xavantina to strengthen site infrastructure, support future growth opportunities and reduce power transmission rates. If the current strength of the Brazilian real and inflationary pressures associated with the U.S.-Iran conflict persist through the remainder of the year, the Company estimates potential incremental impacts of approximately $20 million to $25 million on reported capital expenditures. The cash impact of the stronger Brazilian real is expected to be offset by realized gains from the Company's foreign exchange hedge program. 2026 Production and Cost Guidance Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company's SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risks factors. (1) Please refer to the section titled "Reconciliation of Non-IFRS Measures" within this Press Release. 2026 Capital Expenditure Guidance Figures presented in the table below are in USD millions. Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's most recent AIF and Management of Risks and Uncertainties in the MD&A for complete risk factors. CONFERENCE CALL DETAILS The Company will hold a conference call on Thursday, August 6, 2026 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results. A results presentation will be available for download via the webcast link and in the Presentations section of the Company's website on the day of the conference call. Reconciliation of Non-IFRS Measures Financial results of the Company are presented in accordance with IFRS. The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, gold C1 cash cost, gold AISC, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For additional details please refer to the Company's discussion of non-IFRS and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov. Copper C1 cash cost The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure. The Caraíba Operations The Tucumã Operation Gold Production C1 cash cost and gold AISC The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure.