Ero Copper Maintains 2026 Production Guidance Amid Cash Flow Growth
Cash flow from operations rose 49% quarter-on-quarter to $137.9 million in the second quarter of 2026
Ero Copper Corp. (ERO), the mining company, reported second-quarter 2026 results characterized by increased liquidity and a reduction in debt. The company recorded net income attributable to owners of $89.5 million, or 0.85 a share on a diluted basis. Adjusted net income attributable to owners was $87.4 million, or 0.83 a share on a diluted basis.
Financial performance was supported by a 15% quarter-on-quarter increase in adjusted EBITDA to $144.0 million. Available liquidity rose by $35.5 million from the previous quarter to $181.7 million, which includes $101.7 million in cash and cash equivalents. The company reduced its net debt by $38.0 million during the quarter to $452.7 million, bringing its net debt leverage ratio down to 0.8x. Following the quarter-end, Ero repaid an additional $25.0 million under its senior secured revolving credit facility, totaling $60.0 million in repayments for 2026.
Consolidated copper production for the quarter totaled 17,315 tonnes in concentrate with C1 cash costs of $2.42 per pound produced. At the Caraíba Operations, the company produced 8,351 tonnes of copper at C1 cash costs of $2.76 per pound. Production there was driven by higher plant throughput and recovery rates, though these were offset by lower planned copper grades. At the Tucumã Operation, plant throughput increased 27% quarter-on-quarter, and the site produced 8,964 tonnes of copper at C1 cash costs of $2.10 per pound.
Gold production at the Xavantina Operations increased 170% quarter-on-quarter to 20,553 ounces. This total included 8,693 ounces of mined gold and 11,860 ounces recovered from historic gold concentrate stockpiles. Mined gold production carried C1 cash costs of $1,586 and all-in sustaining costs (AISC) of $2,881 per ounce.
Ero maintained its full-year consolidated copper production guidance between 67,500 and 77,500 tonnes. The company expects production to be second-half weighted at both copper operations. Consolidated copper C1 cash cost guidance remains in the range of $2.15 to $2.35 per pound produced. The company expects costs to decline sequentially through the second half of 2026 due to higher processed grades and production at Caraíba, as well as improved smelting and refining terms.
Gold production guidance for mining and processing at Xavantina is maintained at 40,000 to 50,000 ounces, though the company now expects production at the low end of that range. This reflects extended downtime in the first half of 2026 for infrastructure installation. The company updated its C1 cash cost and AISC guidance for mined gold at Xavantina to $1,100 to $1,350 per ounce and $2,200 to $2,700 per ounce, respectively.
Full-year capital expenditure guidance was increased to $285 million to $330 million to account for a new $10 million powerline at Xavantina. At the Furnas Copper-Gold Project, the company completed over 16,000 meters of drilling in the second quarter, advancing toward a Pre-Feasibility Study expected in 2027.