Ero Copper Q2 Earnings Call Highlights

Ero Copper generated approximately $138 million in operating cash flow and $144 million in adjusted EBITDA, while producing 17,315 tonnes of copper and remaining on track to meet full-year copper guidance. Gold production rose 170% sequentially to more than 20,000 ounces, although Ero expects mined-gold production to reach the low end of guidance and raised its full-year cost outlook. Net debt declined to about $453 million, with management prioritizing repayment of the remaining $95 million revolver balance. The company also increased 2026 capital-spending guidance to $285 million–$330 million, primarily for a new Xavantina power line and other growth projects.

Ero Copper NYSE: ERO reported stronger second-quarter operating and financial performance, supported by higher gold sales, solid copper output and commodity-price tailwinds, while continuing to reduce debt and advance expansion projects across its Brazilian operations. President and Chief Executive Officer Makko DeFilippo said the company’s “One Ero” initiative, launched in early 2025 to streamline operations and improve efficiency across functions, has contributed to operational improvements, higher cash generation and balance-sheet progress.

Second-quarter cash flow from operations rose nearly 50% from the prior quarter to approximately $138 million, while adjusted EBITDA reached $144 million. For the first six months of 2026, cash flow from operations totaled about $231 million, compared with $156 million in the first half of 2025. Adjusted EBITDA for the first half increased to $269 million from $146 million a year earlier.

Ero produced a combined 17,315 tonnes of copper during the second quarter at a consolidated shipping cash cost of $2.42 per pound. The company said it remains positioned to meet its full-year copper production guidance, with stronger production expected in the second half and sequentially lower copper unit costs anticipated through the rest of the year.

At the Caraíba operation, second-quarter copper production totaled 8,351 tonnes. Lower plant head grades were partly offset by higher throughput and improved recoveries, according to Executive Vice President and Chief Operating Officer Gelson Batista. The company expects second-half output to benefit from access to higher-grade benches at Surubim as well as increased grades and tonnage at Pilar under its planned stope sequencing.

At Tucumã, copper output rose about 6% sequentially to 8,964 tonnes. Plant throughput increased 27% from the first quarter, more than offsetting lower processed grades. Batista said the operation achieved throughput rates of roughly 250,000 to 260,000 tonnes per month in the latter part of the second quarter and in July. July throughput was approximately 250,000 tonnes despite five days of downtime for a mill liner replacement.

The company completed an expansion of Tucumã’s existing filtration circuit during the quarter, adding plates to three existing filters and increasing tailings filtration capacity by approximately 8%. Three modular filters are expected to arrive during the third quarter and be installed and operating in the fourth quarter. Ero said the combined filtration initiatives are expected to support higher plant throughput as it exits 2026.

At Xavantina, investments in ventilation and cooling supported improved mining and development rates begin...