Ero Copper Cuts Net Debt Leverage to 1.2x, Unveils Furnas PEA for 1.2 Mt Copper
Ero Copper reduced net debt leverage to 1.2x in Q4 2025 from 1.9x in Q3 while facing Brazilian real headwinds and expects modest Q1 2026 gold concentrate sales due to the rainy season. Its preliminary economic analysis at Furnas envisions over 1.2 Mt of copper, 2 Moz gold and 9 Moz silver over 24 years.
1. Q4 Financial Performance
Ero Copper closed Q4 2025 with net debt to EBITDA at 1.2 times, down from 1.9 times in Q3, driven by strong free cash flow and debt repayments. The company reported higher C1 cash costs at Tucumã due to lower ore grades, increased transport distances and a strong Brazilian real.
2. Q1 2026 Gold Guidance
Heavy rains in Brazil’s rainy season are expected to limit gold concentrate shipments in Q1 2026, following 15,000 ounces sold in Q4. Management anticipates volumes to ramp up again in Q2 and Q3 once weather conditions improve.
3. Furnas Project PEA
The preliminary economic analysis for the Furnas project outlines a 24-year mine life producing over 1.2 million tonnes of copper, 2 million ounces of gold and 9 million ounces of silver. The study incorporates 28,000 meters of drilling to date, with an additional 50,000 meters planned to convert inferred resources and enhance the production profile.
4. Debt Reduction and Capital Returns
Ero Copper plans to reduce its net debt leverage ratio below 1 times before considering capital returns, with $155 million drawn on its revolver at year-end. Discussions with major shareholders on return strategies will follow completion of debt pay-down.