Ero Copper Maintains 2026 Guidance After First Quarter Results
The Brazil-focused mining company reported net income of $108.8 million for the quarter ended March 31, 2026.
Ero Copper Corp. (ERO), a Brazil-focused mining company, reported net income attributable to the owners of the company of $108.8 million, or 1.04 a share on a diluted basis, for the first quarter ended March 31, 2026. Adjusted net income for the period was $72.4 million, or 0.69 a share on a diluted basis.
Consolidated copper production for the quarter totaled 17,287 tonnes in concentrate with C1 cash costs of $2.39 per pound produced. Gold production reached 5,495 ounces, with C1 cash costs of $2,120 per ounce and All-in Sustaining Costs of $4,441 per ounce. The company sold 10,330 ounces of gold during the period, which included 4,311 ounces sold in gold concentrate.
The company maintained its full-year 2026 consolidated copper production guidance of 67,500 to 77,500 tonnes. Production is expected to be weighted toward the second half of the year at both the Tucumã and Caraíba operations. At Caraíba, the company expects production to increase in the second half of 2026 due to higher throughput levels and higher processed grades from planned mine sequencing. Tucumã production is also expected to be modestly higher in the second half on higher plant throughput, though this will be partially offset by lower planned copper grades.
Consolidated copper C1 cash cost guidance remains at $2.15 to $2.35 per pound produced. The company expects costs to be above this range in the first half of 2026 and to decrease sequentially through the second half as processed grades at Caraíba increase.
At the Xavantina operation, the company undertook necessary cooling and ventilation circuit upgrades during the first quarter. These infrastructure upgrades were substantially complete by the end of April. The company expects gold production from mining and processing at Xavantina to total 40,000 to 50,000 ounces in 2026, with production weighted toward the second half as mining rates, processed grades, and mill throughput improve.
Gold concentrate sales volumes were lowest in the first quarter because heavy seasonal rainfall impacted concentrate drying times. The company expects these volumes to benefit from dryer conditions for the remainder of the year, noting that average quarterly rainfall at Xavantina typically declines from 650 to 700 millimeters in the first quarter to approximately 60 millimeters in the second and third quarters.
Net debt at the end of the quarter was $490.7 million, a reduction of $11.0 million from year-end 2025 and $71.1 million from March 31, 2025. This brought the net leverage ratio to approximately 1.0x. Available liquidity was $146.2 million, comprising $91.2 million in cash and cash equivalents and $55.0 million in undrawn availability under its senior secured revolving credit facility.
Full-year capital expenditure guidance is maintained at $275 to $320 million. At the Furnas Copper-Gold Project, the company completed over 12,000 meters of drilling during the quarter as part of a 50,000-meter program for 2026. The company expects to issue a project update on Furnas in mid-2026.