Ero Copper Corp. Reports Strong Q3 Earnings Call

Ero Copper Corp. ((TSE:ERO)) has held its Q3 earnings call. Read on for the main highlights of the call.

Ero Copper Corp. recently held an earnings call that conveyed a generally positive sentiment, highlighting strong operational performance across all segments. The company reported record production in October and successful initiatives at Xavantina, despite facing increased operating costs and inflationary pressures in Brazil. The strategic improvements and financial results indicate a positive trajectory for the company.

Xavantina Gold Concentrate Sales Initiative

Ero Copper announced a maiden inferred resource at Xavantina, consisting of 24,000 tonnes grading 37 grams per tonne, containing 29,000 ounces of gold. The company plans to sell between 10,000 and 15,000 tonnes of concentrate in Q4 2025, which is expected to significantly accelerate the deleveraging of the business.

Record Monthly Production in October

In October 2025, Ero Copper achieved all-time historic monthly records across all operations. Caraíba reached a record mine tonnage, and Xavantina produced nearly 7,000 ounces of gold, excluding new concentrate sales.

Tucumã Production Growth

Tucumã demonstrated impressive growth with a new monthly record in October, producing approximately 3,300 tonnes of copper. This follows a sequential quarterly growth of nearly 20%.

Financial Performance and Deleveraging

Ero Copper’s revenue increased to $177 million in Q3, with adjusted EBITDA at $77.1 million. The company continued its deleveraging efforts, reducing the net debt leverage ratio from 2.1x in Q2 to 1.9x in Q3.

Increased Operating Costs

The company faced rising operating costs due to lower mined and processed grades at Caraíba and changes in accounting treatment at Tucumã, which impacted EBITDA.

Cost Pressures in Brazil

Ero Copper encountered significant labor and contractor inflation in Brazil, which affected operational costs.

Forward-Looking Guidance

Looking ahead, Ero Copper provided detailed guidance for the remainder of 2025. They aim to sell between 10,000 and 15,000 tonnes of concentrate from Xavantina in Q4, with operating costs between $300 to $500 per ounce. The company expects to achieve the lower end of their annual production guidance, with Caraíba and Tucumã operations setting all-time monthly records in October. They anticipate stronger production and financial performance continuing through Q4.

In summary, Ero Copper Corp.’s earnings call reflected a positive outlook, with strong operational performance and strategic initiatives paving the way for future growth. Despite facing cost pressures, the company’s efforts in deleveraging and achieving record production levels underscore its resilience and potential for continued success.