(all amounts in US dollars, unless otherwise noted)
Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO) (“Ero” or the “Company”) today is pleased to announce its financial results for the three months ended March 31, 2021. Management will host a conference call tomorrow, Wednesday, May 5, 2021, 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
Record quarterly copper production of 12,638 tonnes and record quarterly C1 cash costs(*) of $0.49 per pound of copper produced driven by strong operational performance including higher grade versus budget at both Pilar and Vermelhos underground mine;
Strong quarterly gold production of 9,451 ounces from the Santo Antonio Vein at the NX Gold mine at C1 cash costs(*) of $487 per ounce of gold produced and All-in Sustaining Costs(*) of $643 per ounce of gold produced;
Record quarterly adjusted EBITDA(*) and cash flow from operations of $86.7 million and $62.1 million, respectively;
Adjusted net income attributable to owners of the Company(*) of $56.3 million ($0.61 per share on a diluted basis);
Total cash and cash equivalents of $84.6 million, a $22.1 million quarter-on-quarter improvement, and;
Reiterating full-year production, operating cost and capital expenditure guidance for 2021.
Commenting on the results, David Strang, CEO, stated, “We have started the year off with considerable momentum, achieving record quarterly copper production and financial performance, a notable accomplishment considering the challenging operating environment our Brazilian colleagues continue to face in mitigating the impacts of COVID-19. As a Company, we are proud of the efforts our team is making to provide critical support to our local communities, and this will remain a top priority this year. At the same time, we are successfully advancing all of our growth initiatives, which, upon completion, will serve to contribute to the long-term and sustainable future of our mines and the regions in which we operate.
“As evidenced by our most recent exploration release, we are making strides in further showcasing the potential and optionality of the Curaçá Valley. So far in 2021, our teams have identified one new discovery beneath the Vermelhos Mine and two new mineralized systems in the Curaçá Valley that have the potential to both extend mine life and support higher mill throughput rates in the future. The discovery beneath the Vermelhos Mine, known as the ‘Novo Zone’, is a high-grade lens that has the potential to improve life-of-mine grades in the near-term and increase overall mine life of the Vermelhos Mine.
“We have also made significant progress around the ongoing optimization initiatives of our Boa Esperan?a Project and expect to provide an update on what this opportunity looks like during the third quarter. As a reminder, the 2017 feasibility study outlined a low-capital project producing an average of approximately 21,000 tonnes of payable copper per year over a 7.5 year mine life, resulting in a 32.7% internal rate of return. We expect to improve upon this significantly in our 2021 update.
“Other growth projects, including exploration at our NX Gold Mine, with ten drill rigs in operation, and our Platinum Group Metals study, continue to progress despite extended backlogs of assay results at third-party assay labs associated with the COVID-19 pandemic. With strong tailwinds building around a de-carbonized future, which is heavily dependent on copper, we are well positioned as a Company to drive incremental shareholder value through low capital-intensity growth projects across our portfolio.”
*Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted net income attributable to owners of the Company, Adjusted net income per share attributable to owners of the Company, C1 Cash Costs per pound of copper produced, C1 Cash Costs per ounce of gold produced and All-in Sustaining Costs (“AISC”) per ounce of gold produced are non-IFRS measures – see the Notes section of this press release for additional information. C1 Cash Costs per pound of copper produced are net of by-product credits from metal produced at the MCSA Mining Complex. AISC per ounce of gold produced are net of by-product credits from metal produced at the NX Gold Mine.
OPERATIONS & EXPLORATION HIGHLIGHTS
Mining & Milling Operations – record operating performance driven by high copper grades
The MCSA Mining Complex processed 597,594 tonnes of ore grading 2.30% copper, producing record quarterly 12,638 tonnes of copper in concentrate after metallurgical recoveries of 92.0%.
The NX Gold Mine processed 37,613 tonnes grading 8.26 grams per tonne, producing 9,451 ounces of gold and 5,794 ounces of silver as a by-product after metallurgical recoveries of 94.7%.
Exploration Activities at the MCSA Mining Complex – aggressive exploration program generating promising results
Regional Exploration Program
Two new mineralized systems identified, each measuring between 800 meters and 2.2 kilometers in strike length.
Six geochemistry teams, four ground gravity teams and three ground induced polarization teams dedicated to refining drill locations within these new systems.
Additional exploration activity throughout the Curaçá Valley on other untested high-priority target areas remains ongoing.
In-Mine and Near Mine Exploration Programs
Drilling below the Deepening Extension Zone of the Pilar Mine has identified high-grade extensions, including the deepest intercept drilled to date, located approximately 150 meters below the limit of the 2020 inferred mineral resource shell.
A newly discovered high-grade lens, known as the “Novo Zone”, has been identified approximately 200 meters beneath the main Vermelhos orebodies.
A near-development, high-grade structure located 15 meters south of existing development within the Toboggan orebody of the Vermelhos Mine was also identified by recent exploration activity.
Past Producing Mine Re-Evaluation
Focused on evaluating potential for development of high-grade targets within fully permitted, past producing mines in the Curaçá Valley.
Drilling underway at Lagoa da Mina, the northern portion of the Angicos Mine (within the Surubim District) and at Suçuarana North (within the Pilar District).
Additional exploration activities targeting high-grade mineralization beneath the Surubim Mine is expected to commence in Q2 2021.
Corporate Highlights – strong balance sheet supportive of organic growth initiatives
Conclusion of ongoing studies on the potential optimization of the Boa Esperança Project is expected in early Q3. The 2017 feasibility study outlined a low-capital intensity project producing an average of approximately 21,000 tonnes of payable copper per year over a 7.5-year mine life, resulting in a 32.7% internal rate of return. The Company expects to improve upon this in the 2021 update.
As previously disclosed, the Company amended its US$75 million senior secured amortizing non-revolving credit facility and US$75 million senior secured revolving credit facility (collectively the “Prior Facilities”) with a US$150 million senior secured revolving credit facility payable in a bullet at maturity, on March 31, 2025 (the “Revolving Credit Facility”). The amendment reduces the Company’s cost of borrowing depending on the Company’s consolidated leverage ratio, and eliminates principal payments previously due in 2022, 2023 and 2024 under the Prior Facilities. Additional detail is provided later in this press release.
The Company continues to have no material disruption to operations, supply chains or sales channels as a result of the COVID-19 pandemic. The Company has taken extraordinary measures to mitigate the possible impact of COVID-19 on its workforce and operations and to provide critical support to local communities in Brazil ranging from the donation of medical supplies and COVID-19 test kits to food assistance for families impacted by the pandemic.
OPERATING AND FINANCIAL HIGHLIGHTS
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https://erocopper.com/news/2021/ero-copper-reports-record-first-quarter-copper-production-and-financial-results/
ERO COPPER ANNOUNCES VOTING RESULTS OF ANNUAL GENERAL MEETING OF SHAREHOLDERS
Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO) reported the voting results from its annual general meeting of shareholders held today in a virtual-only format conducted by live audio teleconference. A total of 78,557,201 common shares were represented at the meeting, being 89.17% of the issued and outstanding common shares of the Company as at the March 12, 2021 record date. Shareholders voted in favour of all items of business before the meeting, including the re-election of management's nominees as directors for the ensuing year and the advisory vote on executive compensation. Detailed results of the votes are presented below.
Each item of business voted upon at the meeting is described in detail in the Company's Management Information Circular dated March 16, 2021 (the "Circular"), which is available on the Company's website (www.erocopper.com) and on SEDAR (www.sedar.com).
Election of Directors
Each of the nine nominees in the Circular were re-elected as directors of the Company for the ensuing year, and the outcome of the valid proxies received was as follows:
Director Nominee
Number of Common Shares Voted
Percentage of Votes Cast
For Withheld For Withheld
Christopher Noel Dunn
75,310,588 1,035,648 98.64% 1.36%
David Strang 76,344,465 1,771 100.00% 0.00%
Lyle Braaten 66,142,633 10,203,604 86.64% 13.36%
Steven Busby 75,311,095 1,035,141 98.64% 1.36%
Dr. Sally Eyre 75,705,308 640,928 99.16% 0.84%
Robert Getz 75,311,541 1,034,695 98.64% 1.36%
Chantal Gosselin 76,344,858 1,378 100.00% 0.00%
John Wright 69,918,984 6,427,253 91.58% 8.42%
Matthew Wubs 76,339,701 6,535 99.99% 0.01%
Appointment of Auditor
KPMG LLP, Chartered Professional Accountants, was re-appointed as the auditor of the Company for the ensuing year, and the directors of the Company were authorized to fix the remuneration to be paid to the auditor, and the outcome of the valid proxies received was as follows:
Number of Common Shares Voted
Percentage of Votes Cast
For Withheld For Withheld
78,556,201 1,000 100.00% 0.00%
Advisory Vote on Executive Compensation
The non-binding advisory "say on pay" resolution accepting the Company's approach to executive compensation as described in the Circular was approved, and the outcome of the valid proxies received was as follows:
Number of Common Shares Voted
Percentage of Votes Cast
For Against For Against
76,179,262 166,974 99.78% 0.22%
ABOUT ERO COPPER CORP
Ero Copper Corp, headquartered in Vancouver, B.C., is focused on copper production growth from the MCSA Mining Complex located in Bahia State, Brazil, with over 40 years of operating history in the region. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, MCSA, 100% owner of the MCSA Mining Complex, which is comprised of operations located in the Curaçá Valley, Bahia State, Brazil, wherein the Company currently mines copper ore from the Pilar and Vermelhos underground mines, and the Boa Esperança development project, an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of the NX Gold Mine, an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the MCSA Mining Complex, Boa Esperança and NX Gold properties, can be found on the Company's website (www.erocopper.com) and on SEDAR (www.sedar.com).
Signed: “David Strang”
David Strang, CEO |
