In This Article:
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Cash Flow from Operations: $60.8 million for Q4 and $145.4 million for the full year.
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Adjusted EBITDA: $59.1 million for Q4 and $216.2 million for the full year.
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Adjusted Net Income: $17.4 million for Q4 or $0.17 per diluted share; $80.4 million for the full year or $0.78 per diluted share.
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Foreign Exchange Losses: $5.9 million for Q4 and $8.2 million for the full year.
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Liquidity Position: Approximately $90 million at year-end.
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Pro Forma Available Liquidity: $140.4 million at year-end after credit facility amendment.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ero Copper Corp (NYSE:ERO) achieved record copper production in the fourth quarter of 2024.
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The company successfully completed the Tucuma project on schedule without any lost time injuries.
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Ero Copper Corp (NYSE:ERO) reported strong cash flow from operations, amounting to $60.8 million for the quarter and $145.4 million for the full year.
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The company has a clear strategy to deleverage its balance sheet, targeting a net debt leverage ratio of 1.5 times.
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Ero Copper Corp (NYSE:ERO) has expanded its revolving credit facility, increasing total commitments from $150 million to $200 million, enhancing financial flexibility.
Negative Points
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The company faced a multi-week power outage at Tucuma due to an extreme weather event, impacting production.
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Ero Copper Corp (NYSE:ERO) experienced foreign exchange losses of $5.9 million for the quarter and $8.2 million for the year due to fluctuations in the US dollar to Brazilian real exchange rate.
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The company encountered material flow constraints and equipment issues during the ramp-up at Tucuma, requiring time and resources to resolve.
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There is an expectation of softness in production at Caraiba and Xavantina in the first half of the year due to ongoing operational changes.
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Ero Copper Corp (NYSE:ERO) reported increased all-in sustaining costs at Xavantina due to a capital investment cycle and operational changes.
Q & A Highlights
Q: Are you still experiencing intermittent power outages impacting the mill at Tucuma? A: We are still working on a long-term solution for power quality issues. Adjustments made at the end of last year have significantly improved our plant's ability to handle power volatility, reducing power trips from 15-20 per day to just a handful per month. We expect the off-site solution to be completed by the end of Q2.
Q: What other issues could impede the ramp-up at Tucuma beyond normal teething pains? A: Currently, we don't see any notable issues that could impede the ramp-up. We have been very thoughtful in identifying constraints and have reflected potential uncertainties in our guidance range. So far, things are on track, and we are happy with the performance post-shutdowns in January and February.