Ero Copper Corp. (the “Company”)
(TSX:
ERO) today is pleased to announce its financial results
for the three and six months ended June 30, 2020. Management will
host a conference call tomorrow, Friday, August 7, 2020, 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
- Second quarter copper production of 11,178 tonnes of
copper;
- New record quarterly C1 cash costs* of $0.65 per pound of
copper produced ($0.71 per pound in Q1 2020) contributing to record
quarterly cash flow from operations of $42.5 million during the
three month period ended June 30, 2020;
- Significant increase in gold and silver production at the NX
Gold Mine totalling 8,739 ounces of gold and 5,327 ounces of silver
at record C1 cash costs* of $437 per ounce of gold produced during
the period;
- Generated a quarterly record $42.4 million in Adjusted EBITDA*
during the three month period ended June 30, 2020;
- Adjusted net income attributable to owners of the Company* of
$20.3 million ($0.22 per share on a diluted basis) during the three
month period ended June 30, 2020;
- Strong liquidity position at June 30, 2020 of $51.6
million; and,
- Reiterating full year production guidance and previously
revised capital and operating cost guidance for 2020.
Commenting on the results, David Strang,
President & CEO, stated, “While our primary objective shifted
at the onset of the COVID-19 pandemic to prioritize the health and
well-being of our employees, contractors, their families and local
communities, our operational performance, outstanding financial
results and execution during the second quarter are testament to
the hard work and efforts of our team, particularly in Brazil,
during very trying times for them and their families. At our
operations and at the corporate level we are committed to prudently
managing the business so that we remain as well positioned as
possible to withstand any unforeseen challenges that may arise as a
result of COVID-19.
I am pleased to report that our operations have
and continue to perform well. At MCSA in the Curaçá Valley, we saw
quarter-on-quarter increases in both tonnes and grades processed as
well as improved metallurgical recoveries contributing to a 5%
increase in copper production when compared to the first quarter at
record C1 cash costs of $0.65 cents per pound. Similarly, at our NX
Gold operations we continued to see quarter-on-quarter improvement
in production from the Santo Antonio Vein with a significant
increase in tonnes mined and processed as well as improving
metallurgical recoveries, contributing to an 11% increase in gold
produced when compared to the first quarter, also at record C1 cash
costs of $437 per ounce of gold. Continued operational performance
and underlying currency tail-winds contributed to record cash flow
from operations and Adjusted EBITDA during the period of $42.5
million and $42.4 million, respectively.
With respect to key growth projects, our team
was able to complete installation of our new HIG Mill in July, only
a few weeks behind schedule. We are currently moving forward with
commissioning of the new mill using a combination of on-site and
virtual commissioning teams due to COVID-19 travel restrictions and
we expect the mill to be operational during the third quarter. Once
operational, we expect to see additional improvements in copper
recoveries. We also continued to advance the test program for
ore-sorting implementation in the Curaçá Valley. To date, we have
now tested eight different material sources at varying grade
profiles. We are very pleased with the results of this program and
continue to view pre-concentration as a potentially significant
value-enhancing opportunity to further optimize our operations at
MCSA. We expect to provide further clarity on quantifying this
potential once we have finalized our review in the coming months.
Finally, we completed necessary improvements to our laboratory to
allow in-house analysis of platinum group metals (“PGMs”), which
will significantly decrease turn-around times and allow our
exploration teams to systematically analyze for PGMs throughout the
Curaçá Valley for the first time.
On exploration, we are continuing to advance
several in-mine growth objectives at both Pilar and Vermelhos, most
recently highlighted by our second-quarter Deepening Extension zone
results where we continue to intercept thick and high-grade
mineralization. We are also evaluating a number of regional
exploration targets within the Curaçá Valley, where we expect the
majority of our drilling to be allocated during the second half of
the year.”
*EBITDA, Adjusted EBITDA, Adjusted net income
(loss), C1 cash cost of copper produced (per lb) and C1 cash costs
of gold produced (per ounce) are non-IFRS measures – see the Notes
section of this press release for a discussion on non-IFRS
Measures
OPERATIONS & EXPLORATION HIGHLIGHTS
- Mining & Milling Operations – building
positive operational momentum with no disruptions to date
- 627,071 tonnes processed grading 1.98% copper producing 11,178
tonnes of copper in concentrate after metallurgical recoveries that
averaged 90.0% at the Company’s Curaçá Valley operations;
- The Company’s 97.6% owned NX Gold Mine processed 39,108 tonnes
of ore grading 7.75 grams per tonne gold, resulting in the
production of 8,739 ounces of gold and 5,327 ounces of silver as
by-product after metallurgical recoveries that averaged 89.6%
during the second quarter of 2020; and
- Continued to have no disruption to operations, supply chains or
sales channels to date as a result of the COVID-19 pandemic.
- Exploration Activities – Continuing to advance
priority near-mine targets while shifting to regional exploration
focus during the balance of 2020
- Pilar District
- Exploration activity within the Pilar District, where nine
drill rigs are currently operating, is focused on extending the
limits of high-grade ‘Superpod’ mineralization of the Deepening
Extension zone. The Company has now identified a mineralized target
area that extends over approximately 800 meters in strike length,
over a total depth of approximately 500 meters and over an average
thickness of approximately 15 to 20 meters with localized
thicknesses of up to 50 meters. The zone remains open to the north
and to depth. Results during the period continue to support the
potential to meaningfully extend the mine life while maintaining an
elevated grade profile from the Pilar Mine.
- Vermelhos District
- Exploration in the Vermelhos District, where eleven drill rigs
are currently operating, is focused on both near-mine extensional
drilling below the main Vermelhos orebodies and the extension of
massive-sulphide mineralization down-plunge within the Siriema
conduit.
- NX Gold Mine
- At the NX Gold Mine, five exploration drill rigs are primarily
focused on extending mine life through resource upgrade programs
within the current inferred mineral resource as well as testing
down-plunge extensions of the Santo Antonio Vein.
- Regional Exploration
- Regional work at MCSA comprised of both exploration drilling
and ground-based geophysical work is focused on four new and
recently interpreted mineral systems within the portfolio of
targets defined by the Company’s comprehensive targeting work. Each
of these new systems has an average strike length of five
kilometers and contain multiple priority drill targets. While
preliminary results are encouraging, additional detail on these
ongoing exploration programs continues to be expected during the
second half of the year.
- In addition, the first regional exploration effort within the
broader NX Gold Mine property commenced during the first half of
2020.
- Growth Projects Well Advanced – HIG Mill
commissioning underway, ore-sorting project test-work near
completion, Deepening Extension drilling ongoing, building PGM
assay capability in-house
- The Company’s new HIG Mill installation was completed in July
and commissioning is currently underway. The Company expects the
HIG Mill to be fully operational during the third quarter with a
resulting improvement in copper recoveries expected during the
second half of 2020.
- The full-scale testing of the Company’s ore-sorting plant is
nearing completion and has been operating according to schedule.
Data analysis and review of potential economic impact from this
test-program remains ongoing, and the results of the program are
expected during the third quarter.
- Five drill rigs continue to systematically drill the Deepening
Extension zone of the Pilar Mine, and engineering studies for the
inclusion of this zone into the Company’s updated mine plan
(expected Q4 2020) are progressing on schedule.
- The Company completed the installation and integration of
multi-element analysis in its on-site laboratory to analyze
internally for PGMs. The unit is expected to reduce turn-around
time for PGM sample results and allow for systematic testing for
PGMs throughout the Curaçá Valley.
- Corporate Highlights – Continued capital
management and improved liquidity position
- Ended the second quarter with strong liquidity position of
approximately $51.6 million in cash and cash equivalents.
OPERATING AND FINANCIAL HIGHLIGHTS
|
|
3 months ended June 30, 2020 |
|
3 months ended March 31, 2020 |
|
6 months ended June 30, 2020 |
|
3 months ended June 30, 2019 |
|
6 months ended June 30, 2019 |
|
Operating Highlights (MCSA Operations) |
|
Ore Processed (tonnes) |
|
|
627,071 |
|
|
|
607,959 |
|
|
|
1,235,030 |
|
|
|
717,479 |
|
|
|
1,247,612 |
|
|
Grade (% Cu) |
|
|
1.98 |
|
|
|
1.95 |
|
|
|
1.97 |
|
|
|
1.62 |
|
|
|
1.86 |
|
|
Cu Production
(tonnes) |
|
|
11,178 |
|
|
|
10,657 |
|
|
|
21,835 |
|
|
|
10,473 |
|
|
|
21,118 |
|
|
Cu Production (000
lbs) |
|
|
24,643 |
|
|
|
23,495 |
|
|
|
48,138 |
|
|
|
23,089 |
|
|
|
46,558 |
|
|
Cu Sold in Concentrate
(tonnes) |
|
|
10,586 |
|
|
|
10,432 |
|
|
|
21,018 |
|
|
|
10,931 |
|
|
|
20,964 |
|
|
Cu Sold in Concentrate
(000 lbs) |
|
|
23,339 |
|
|
|
22,999 |
|
|
|
46,338 |
|
|
|
24,100 |
|
|
|
46,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C1 Cash Cost of copper
produced (per lb)(1) |
|
$ |
0.65 |
|
|
$ |
0.71 |
|
|
$ |
0.68 |
|
|
$ |
1.04 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold (NX Gold
Operations) |
|
|
|
|
|
|
|
|
|
|
|
Au Production
(oz) |
|
|
8,739 |
|
|
|
7,866 |
|
|
|
16,605 |
|
|
|
9,917 |
|
|
|
20,036 |
|
|
C1 Cash Cost of gold
produced (per ounce)(1) |
|
$ |
437 |
|
|
$ |
594 |
|
|
$ |
511 |
|
|
$ |
517 |
|
|
$ |
501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights ($millions, except per share
amounts) |
|
Revenues |
|
$ |
70.8 |
|
|
$ |
67.7 |
|
|
$ |
138.5 |
|
|
$ |
76.5 |
|
|
$ |
148.5 |
|
|
Gross profit |
|
$ |
39.5 |
|
|
$ |
30.7 |
|
|
$ |
70.2 |
|
|
$ |
32.1 |
|
|
$ |
64.7 |
|
|
EBITDA(1) |
|
$ |
23.4 |
|
|
($ |
50.6 |
) |
|
($ |
27.2 |
) |
|
$ |
34.9 |
|
|
$ |
72.1 |
|
|
Adjusted
EBITDA(1) |
|
$ |
42.4 |
|
|
$ |
33.4 |
|
|
$ |
75.9 |
|
|
$ |
36.4 |
|
|
$ |
75.7 |
|
|
Cash flow from
operations |
|
$ |
42.5 |
|
|
$ |
37.3 |
|
|
$ |
79.8 |
|
|
$ |
37.3 |
|
|
$ |
62.4 |
|
|
Net income (loss) |
|
$ |
7.7 |
|
|
($ |
53.0 |
) |
|
($ |
45.3 |
) |
|
$ |
15.3 |
|
|
$ |
30.7 |
|
|
Net income (loss)
attributable to owners of the Company |
|
$ |
7.5 |
|
|
($ |
52.8 |
) |
|
($ |
45.2 |
) |
|
$ |
15.1 |
|
|
$ |
30.4 |
|
|
Net income (loss) per share attributable to owners of the Company
(Basic) |
|
$ |
0.09 |
|
|
($ |
0.62 |
) |
|
($ |
0.53 |
) |
|
$ |
0.18 |
|
|
$ |
0.36 |
|
|
Net income (loss) per share attributable to owners of the Company
(Diluted) |
|
$ |
0.08 |
|
|
($ |
0.62 |
) |
|
($ |
0.53 |
) |
|
$ |
0.17 |
|
|
$ |
0.34 |
|
|
Adjusted net income
(loss) attributable to owners of the Company(1) |
|
$ |
20.3 |
|
|
$ |
20.8 |
|
|
$ |
41.1 |
|
|
$ |
15.3 |
|
|
$ |
31.0 |
|
|
Adjusted net income (loss) per share attributable to owners of the
Company(1) (Basic) |
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
$ |
0.48 |
|
|
$ |
0.18 |
|
|
$ |
0.37 |
Adjusted net income (loss) per share attributable to owners of the
Company(1) (Diluted) |
|
$ |
0.22 |
|
|
$ |
0.23 |
|
|
$ |
0.45 |
|
|
$ |
0.17 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents |
|
$ |
51.6 |
|
|
$ |
44.3 |
|
|
$ |
51.6 |
|
|
$ |
33.5 |
|
|
$ |
33.5 |
|
|
Working Capital
(Deficit)(1) |
|
($ |
25.7 |
) |
|
($ |
12.4 |
) |
|
($ |
25.7 |
) |
|
$ |
5.6 |
|
|
$ |
5.6 |
|
|
Net Debt(1) |
|
($ |
130.9 |
) |
|
($ |
140.1 |
) |
|
($ |
130.9 |
) |
|
($ |
121.1 |
) |
|
($ |
121.1 |
) |
|
Footnotes
[1] EBITDA, Adjusted
EBITDA, Adjusted net income (loss) attributable to owners of the
Company, Adjusted earnings (loss) per share, Net Debt,
Working Capital, C1 Cash Cost of copper produced (per lb) and C1
Cash Cost of gold produced (per ounce) are non-IFRS measures – see
the Notes section of this press release for a discussion on
non-IFRS Measures.
ADJUSTED EBITDA & NET INCOME (LOSS)
RECONCILIATION
|
|
|
2020– Q2 |
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
42,448 |
|
|
Adjustments: |
|
|
|
Unrealized foreign exchange loss on USD denominated debt in
MCSA |
|
|
(2,996 |
) |
|
Unrealized foreign exchange loss on derivative contracts |
|
|
(8,485 |
) |
|
Realized foreign exchange loss on derivative contracts |
|
|
(4,363 |
) |
|
Share based compensation and other |
|
|
(3,201 |
) |
|
EBITDA |
|
$ |
23,403 |
|
|
|
|
|
|
Adjusted net income (loss) |
|
$ |
20,253 |
|
|
Adjustments for non-cash items (attributable to owners of the
Company): |
|
|
|
Unrealized foreign exchange loss on USD denominated debt in
MCSA |
|
|
(2,984 |
) |
|
Unrealized loss (gain) on foreign exchange derivative contracts,
net of tax |
|
|
(7,151 |
) |
|
Share based compensation |
|
|
(2,723 |
) |
|
Unrealized gain on interest rate derivative contracts |
|
|
131 |
|
|
Reported net income
attributable to owners of the Company |
|
$ |
7,526 |
|
|
2020 OUTLOOK
While the Company’s production guidance for 2020
continues to remain unchanged, cash cost and capital expenditure
guidance for 2020 was previously updated to reflect the significant
change in USD:BRL foreign exchange rates and precious metal prices.
Additional information is outlined below and further detailed in
the Company’s press releases dated January 15, 2020 and May 7,
2020.
Production Guidance
Production guidance remains unchanged. Copper
production from the Curaçá Valley operations for 2020 is expected
to come from ore mined from the Pilar and Vermelhos underground
mines. Production from the Pilar Mine is expected to contribute a
total of approximately 1.4 million tonnes grading 1.40% copper
while production from the Vermelhos Mine is expected to contribute
a total of approximately 750,000 tonnes grading 3.50% copper
resulting in a blended mill head grade of approximately 2.15%
copper.
|
2020[1] |
|
Curaçá Valley
Operations |
|
Tonnes Processed |
2,150,000 |
|
Copper Grade (% Cu) |
2.15 |
% |
|
Copper Recovery (%) |
90.0 |
% |
|
Cu Production
Guidance (000 tonnes) |
41.0 – 43.0 |
|
|
|
NX Gold
Operations |
|
Tonnes Processed |
150,000 |
|
Gold Grade (gpt) |
9.00 |
|
Gold Recovery (%) |
90.0 |
% |
|
Au Production
Guidance (000 ounces) |
38.0 – 40.0 |
|
Footnotes:
[1] 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 SEDAR filings for complete risk factors, including the
AIF (defined below).
Operating Cost Guidance
The Company’s original guidance for 2020 had
assumed a USD:BRL foreign exchange rate of 4.00, gold price of
$1,450 per ounce and silver price of $17.00 per ounce. In
recognition of the significant change in foreign exchange rates and
precious metal prices during the first quarter of 2020, the Company
previously updated its operating cost guidance assuming a USD:BRL
foreign exchange rate of 4.90, gold price of $1,700 per ounce and
silver price of $15.00 per ounce.
|
|
2020 Guidance |
|
2020 Revised Guidance |
Curaçá Valley C1 Cash Cost Guidance
(US$/lb)[1] |
|
$0.85 - $0.95 |
|
$0.70 - $0.85 |
NX Gold Mine C1 Cash Cost Guidance
(US$/oz)[1] |
|
$475 - $575 |
|
$425 - $525 |
Footnotes:
[1] C1 Cash Costs of copper produced (per lb.)
and C1 Cash Costs of gold produced (per oz.) are non-IFRS measures
– see the Notes section of this press release for a discussion of
non-IFRS measures.
Capital Expenditure
Guidance
The Company’s original capital expenditure
guidance for 2020 had assumed a USD:BRL foreign exchange rate of
4.00. In recognition of the significant change in foreign exchange
rates during the first quarter of 2020, the Company previously
updated its capital cost guidance assuming a USD:BRL foreign
exchange rate of 4.90. Capital expenditures are presented below in
USD millions.
Curaçá Valley
Operations |
2020 Guidance |
|
Revised 2020 Guidance |
Pilar Mine and Caraíba Mill Complex[1] |
58.0 |
|
45.0 – 55.0 |
Vermelhos Mine |
16.0 |
|
11.0 – 13.0 |
Boa Esperanҫa Project |
0.2 |
|
0.2 – 0.2 |
Capital Expenditure Guidance |
74.2 |
|
56.2 – 68.2 |
Curaçá Valley Exploration[2] |
28.0 |
|
20.0 – 25.0 |
|
|
|
|
NX Gold Operations |
2020 Guidance |
|
Revised 2020 Guidance |
Capital Expenditure Guidance |
5.7 |
|
7.0 – 9.0 |
Exploration[2] |
3.5 |
|
2.0 – 3.0 |
Total, NX Gold |
9.2 |
|
9.0 – 12.0 |
Footnotes:
[1] Pilar Mine and Caraíba Mill Complex capital
expenditure guidance for 2020 includes completion of the
high-intensity grinding mill and operation of the ore-sorting pilot
plant.[2] Exploration capital expenditure guidance for 2020 has
been forecast through September of 2020 and, as with prior
guidance, is dependent, in part, on future exploration success and
subject to further review and revision.
NOTES
Non-IFRS measures
Financial results of the Company are prepared in accordance with
IFRS. The Company utilizes certain non-IFRS measures, including C1
cash cost of copper produced (per lb), C1 cash costs of gold
produced (per ounce), EBITDA, Adjusted EBITDA, Adjusted net income
(loss) attributable to owners of the Company, Adjusted earnings
(loss) per share, net debt and working capital, which are not
measures recognized under IFRS. The Company believes that these
measures, together with measures determined in accordance with
IFRS, provide investors with an improved ability to evaluate the
underlying performance of the Company. Non-IFRS measures do not
have any standardized meaning prescribed under IFRS, and therefore
they may not be comparable to similar measures employed by other
companies. The data is intended to provide additional information
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
C1 cash cost of copper produced (per
lb.)
C1 cash cost of copper produced (per lb) is the sum of
production costs, net of capital expenditure development costs and
by-product credits, divided by the copper pounds produced. C1 cash
costs reported by the Company include treatment, refining charges,
offsite costs, and certain tax credits relating to sales invoiced
to the Company’s Brazilian customer on sales. By-product credits
are calculated based on actual precious metal sales (net of
treatment costs) during the period divided by the total pounds of
copper produced during the period. C1 cash cost of copper produced
per pound is a non-IFRS measure used by the Company to manage and
evaluate operating performance of the Company’s operating mining
unit, and is widely reported in the mining industry as benchmarks
for performance, but does not have a standardized meaning and is
disclosed in addition to IFRS measures.
C1 cash cost of gold produced (per
ounce)
C1 cash cost of gold produced (per ounce) is the sum of
production costs, net of capital expenditure development costs and
silver by-product credits, divided by the gold ounces produced.
By-product credits are calculated based on actual precious metal
sales during the period divided by the total ounces of gold
produced during the period. C1 cash cost of gold produced per pound
is a non-IFRS measure used by the Company to manage and evaluate
operating performance of the Company’s operating mining unit and is
widely reported in the mining industry as benchmarks for
performance but does not have a standardized meaning and is
disclosed in addition to IFRS measures.
Earnings before interest, taxes,
depreciation and amortization (EBITDA) and Adjusted
EBITDA
EBITDA represents earnings before interest expense, income
taxes, depreciation, and amortization. Adjusted EBITDA includes
further adjustments for non-recurring items and items not
indicative to the future operating performance of the Company. The
Company believes EBITDA and adjusted EBITDA are appropriate
supplemental measures of debt service capacity and performance of
its operations.
Adjusted EBITDA is calculated by removing the following income
statement items:
- Foreign exchange loss (gain)
- Share based compensation
- Loss on debt settlement
Adjusted Net Income (Loss) attributable
to owners of the Company and Adjusted Earnings (Loss) Per Share
attributable to owners of the Company
The Company uses the financial measure “Adjusted net income
(loss) attributable to owners of the Company” and “Adjusted
earnings (loss) per share attributable to owners of the Company” to
supplement information in its consolidated financial statements.
The Company believes that, in addition to conventional measures
prepared in accordance with IFRS, the Company and certain investors
and analysts use this information to evaluate the Company’s
performance. The Company excludes non-cash and unusual items from
net earnings to provide a measure which allows the Company and
investors to evaluate the operating results of the underlying core
operations.
During the period, the following non-cash or unusual adjustments
to calculated adjusted net income (loss):
- Share based compensation
- Unrealized foreign exchange loss (gain) on USD
denominated debt in MCSA
- Unrealized loss (gain) on foreign exchange derivative
contracts, net of tax
- Loss on debt settlement
- Unrealized loss (gain) on interest rate derivative
contracts
Net Debt
Net debt is determined based on cash and cash equivalents,
restricted cash and loans and borrowings as reported in the
Company’s consolidated financial statements. The Company uses net
debt as a measure of the Company’s ability to pay down its
debt.
Working capital
Working capital is determined based on current assets and
current liabilities as reported in the Company’s consolidated
financial statements. The Company uses working capital as a measure
of the Company’s short-term financial health and operating
efficiency.
CONFERENCE CALL DETAILS
The Company will hold a conference call on
Friday, August 7, 2020 at 11:30 am Eastern time (8:30 am Pacific
time) to discuss these results.
Date: |
Friday, August 7, 2020 |
Time: |
11:30 am Eastern time (8:30 am Pacific time) |
Dial in: |
North America: 1-800-319-4610, International: +1-604-638-5340please
dial in 5-10 minutes prior and ask to join the call |
|
|
Replay: |
North America: 1-800-319-6413, International: +1-604-638-9010 |
Replay Passcode: |
4878 |
This press release should be read in conjunction
with the unaudited condensed consolidated interim financial
statements and management’s discussion and analysis (“MD&A”)
for the three and six month period ended June 30, 2020 available on
the Company’s website www.erocopper.com and on SEDAR
(www.sedar.com).
ABOUT ERO COPPER CORP
Ero, headquartered in Vancouver, B.C., is
focused on copper production growth from the Vale do Curaçá
Property, located in Bahia, Brazil. The Company’s primary asset is
a 99.6% interest in the Brazilian copper mining company, Mineração
Caraíba S.A. (“MCSA”), 100% owner of the Vale do Curaçá Property
with over 40 years of operating history in the region. The Company
currently mines copper ore from the Pilar and Vermelhos underground
mines. In addition to the Vale do Curaçá Property, MCSA owns 100%
of the Boa Esperança development project, an IOCG-type copper
project located in Pará, Brazil and the Company 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 Vale do Curaçá, Boa
Esperança and NX Gold properties, can be found on the Company’s
website (www.erocopper.com) and on SEDAR (www.sedar.com).
The disclosure of scientific or technical
information in this press release was reviewed and approved by
Emerson Ricardo Re, MSc, MBA, MAusIMM (CP) (No. 305892), Registered
Member (No. 0138) (Chilean Mining Commission) and Resource Manager
of the Company who is a “qualified person” within the meanings of
National Instrument 43-101, Standards of Disclosure for Mineral
Projects (“NI 43-101”).
ERO COPPER CORP. |
|
Signed: “David Strang” |
For further information contact: |
David Strang, President &
CEO |
Makko DeFilippo, Vice President, Corporate Development |
|
(604) 429-9244 |
|
info@erocopper.com |
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS This
Press Release contains “forward-looking information” within the
meaning of applicable Canadian securities laws. Forward-looking
information includes statements that use forward-looking
terminology such as “may”, “could”, “would”, “will”, “should”,
“intend”, “target”, “plan”, “expect”, “budget”, “estimate”,
“forecast”, “schedule”, “anticipate”, “believe”, “continue”,
“potential”, “view” or the negative or grammatical variation
thereof or other variations thereof or comparable terminology. Such
forward-looking information includes, without limitation,
statements with respect to the Company's expected operations at the
Vermelhos and Pilar Mines as well as at the NX Gold Property,
drilling plans, plans for the Company's exploration program, timing
of any updated mineral resource and reserve updates and technical
reports, the Company's ability to service its ongoing obligations,
the Company's future production outlook, cash costs, capital
resources, expenditures, the impact of new accounting standards and
amendments on the Company's financial statements, and current
global macroeconomic uncertainty stemming from the onset of
Covid-19 pandemic and its impact on the Company’s business,
financial condition, results of operations, cash flows and
prospects. Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management in light of management’s experience and perception of
trends, current conditions and expected developments, as well as
other factors that management believes to be relevant and
reasonable in the circumstances, as of the date of this Press
Release including, without limitation, assumptions about:
favourable equity and debt capital markets; the ability to raise
any necessary additional capital on reasonable terms to advance the
production, development and exploration of the Company’s properties
and assets; future prices of copper and other metal prices; the
timing and results of exploration and drilling programs; the
accuracy of any mineral reserve and mineral resource estimates; the
geology of the Vale do Curaçá Property, NX Gold Mine and the Boa
Esperanҫa Property being as described in the technical reports for
these properties; production costs; the accuracy of budgeted
exploration and development costs and expenditures; the price of
other commodities such as fuel; future currency exchange rates and
interest rates; operating conditions being favourable such that the
Company is able to operate in a safe, efficient and effective
manner; work force continues to remain healthy in the face of
prevailing epidemics, pandemics or other health risks, political
and regulatory stability; the receipt of governmental, regulatory
and third party approvals, licenses and permits on favourable
terms; obtaining required renewals for existing approvals, licenses
and permits on favourable terms; requirements under applicable
laws; sustained labour stability; stability in financial and
capital goods markets; availability of equipment and critical
supplies, spare parts and consumables; positive relations with
local groups and the Company’s ability to meet its obligations
under its agreements with such groups; and satisfying the terms and
conditions of the Company’s current loan arrangements. While the
Company considers these assumptions to be reasonable, the
assumptions are inherently subject to significant business, social,
economic, political, regulatory, competitive and other risks and
uncertainties, contingencies and other factors that could cause
actual actions, events, conditions, results, performance or
achievements to be materially different from those projected in the
forward-looking information. Many assumptions are based on factors
and events that are not within the control of the Company and there
is no assurance they will prove to be correct. Furthermore, such
forward-looking information involves a variety of known and unknown
risks, uncertainties and other factors which may cause the actual
plans, intentions, activities, results, performance or achievements
of the Company to be materially different from any future plans,
intentions, activities, results, performance or achievements
expressed or implied by such forward-looking information. Such
risks include, without limitation the risk factors listed under the
heading “Risk Factors” in the Annual Information Form of the
Company for the year ended December 31, 2019, dated March 12, 2020
(the “AIF”). Although the Company has attempted to identify
important factors that could cause actual actions, events,
conditions, results, performance or achievements to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events, conditions,
results, performance or achievements to differ from those
anticipated, estimated or intended. The Company cautions that the
foregoing lists of important assumptions and factors are not
exhaustive. Other events or circumstances could cause actual
results to differ materially from those estimated or projected and
expressed in, or implied by, the forward-looking information
contained herein. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information
contained herein is made as of the date of this press release and
the Company disclaims any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or results or otherwise, except as and
to the extent required by applicable securities laws. Unless
otherwise stated, information of a scientific or technical nature
in respect of the Vale do Curaçá Property included in this press
release is based upon the Vale do Curaçá technical report entitled
“2019 Updated Mineral Resources and Mineral Reserves Statements of
Mineração Caraíba’s Vale do Curaçá Mineral Assets, Curaçá Valley”,
dated November 25, 2019 with an effective date of September 18,
2019, prepared by Rubens Jose De Mendonça, MAusIMM, of Planminas –
Projectos e Consultoria em Mineração Ltd. (“Planminas”), Porfirio
Cabaleiro Rodrigues, MAIG, Leonardo de Moraes Soares, MAIG, and
Bernardo Horta de Cerqueira Viana, MAIG, all of GE21 Consultoria
Mineral Ltda. (“GE21”), and each a “qualified person” and
“independent” of the Company within the meanings of NI 43-101.
Information of a scientific or technical nature in respect of the
NX Gold Mine included in this press release is based upon the NX
Gold technical report entitled “Mineral Resource and Mineral
Reserve Estimate of the NX Gold Mine, Nova Xavantina”, dated
February 3, 2020 with an effective date of September 30, 2019,
prepared by Porfirio Cabaleiro Rodrigues, MAIG, Leonardo de Moraes
Soares, MAIG, and Paulo Roberto Bergmann, FAusIMM, each of GE21 and
a “qualified person” and “independent” of the Company within the
meanings of NI 43-101. Cautionary Notes Regarding Mineral Resource
and Reserve Estimates In accordance with applicable Canadian
securities regulatory requirements, all mineral reserve and mineral
resource estimates of the Company disclosed or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and are classified in accordance with the CIM
Standards. Mineral resources which are not mineral reserves do not
have demonstrated economic viability. Pursuant to the CIM
Standards, mineral resources have a higher degree of uncertainty
than mineral reserves as to their existence as well as their
economic and legal feasibility. Inferred mineral resources, when
compared with Measured or Indicated mineral resources, have the
least certainty as to their existence, and it cannot be assumed
that all or any part of an Inferred mineral resource will be
upgraded to an Indicated or Measured mineral resource as a result
of continued exploration. Pursuant to NI 43-101, Inferred mineral
resources may not form the basis of any economic analysis.
Accordingly, readers are cautioned not to assume that all or any
part of a mineral resource exists, will ever be converted into a
mineral reserve, or is or will ever be economically or legally
mineable or recovered. |
Ero Copper (TSX:ERO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ero Copper (TSX:ERO)
Historical Stock Chart
From Apr 2023 to Apr 2024