Ero Copper Posts $320M Q4 Revenue, $2B NPV and 27% IRR on Furnas PEA
Ero Copper reported record fourth-quarter revenue of $320 million, adjusted EBITDA of $186.7 million, sequential production and throughput records at three mines and net debt reduced to ~$502 million (1.2x leverage), while guiding 67,500–77,500 tons of copper production for 2026. The maiden Furnas PEA outlines a 24-year open-pit/underground project with an after-tax NPV of ~US$2 billion, IRR above 27% on US$1.3 billion initial capex, output of 1.2 million tons of copper, 2 million ounces of gold and 9 million ounces of silver at $0.24/lb C1 cash costs.
1. Record Q4 Revenue and Debt Reduction
Ero delivered record fourth-quarter revenue of US$320 million and adjusted EBITDA of US$186.7 million, driven by sequential production and throughput records at Caraíba, Tucumã and Xavantina. Strong cash flow reduced net debt to approximately US$502 million, lowering leverage to 1.2x.
2. Furnas PEA Delivers Robust Economics
The preliminary economic analysis outlines a 24-year open-pit and underground project with after-tax NPV of ~US$2 billion and IRR above 27% on US$1.3 billion initial capex, projecting 1.2 million tons of copper, 2 million ounces of gold and 9 million ounces of silver at C1 cash costs of $0.24 per pound.
3. 2026 Production Targets and Drilling Plans
Ero guides 67,500–77,500 tons of copper production for 2026, weighted to the second half due to mine sequencing. The company plans 50,000 meters of drilling at Furnas next year to extend high-grade mineralization around planned underground infrastructure.
4. Project Enhancements and Cost Optimization
Management is evaluating a magnetite recovery circuit and gravity pre-concentration to boost byproduct revenue and gold recoveries, while installing additional tailings filtration at Tucumã for increased throughput and executing ventilation upgrades at Xavantina to optimize long-term output.