Earnings

Ero Copper Reports Record Third-Quarter Results; Net Income Attributable to Owners Was $116.2 Million

The Tip Desk · November 2, 2026 · 2 min read

The company reduced its net debt by approximately $100 million during the quarter to reach $353.5 million.

Ero Copper Corp. (ERO), a copper and gold producer, reported record financial results for the third quarter ended September 30, 2026. Net income attributable to the owners of the company was $116.2 million, or 1.10 a diluted share, which was a 30% increase compared to the previous quarter. Adjusted net income attributable to the owners rose 48% quarter-on-quarter to $129.3 million, or 1.22 a diluted share.

The company said the results were supported by higher copper and gold sales volumes, favorable metal prices, and strong operating performance. Cash flow from operations rose 39% from the second quarter to $191.2 million, and adjusted EBITDA increased 39% to $200.6 million. Available liquidity grew by $82.3 million quarter-on-quarter to $264.1 million, including $114.1 million in cash and cash equivalents.

Operating results showed a 6% sequential increase in consolidated quarterly copper production, which totaled 18,345 tonnes in concentrate at C1 cash costs of $2.51 per pound. Gold from the Xavantina Operations totaled 25,258 ounces, a 23% increase from the previous quarter. This growth was driven by a 47% increase in gold recovered from historic concentrate stockpiles, which reached a record 17,414 ounces. Mined gold production for the period was 7,844 ounces.

Ero used its cash flow generation to accelerate deleveraging, applying approximately 97% of every dollar of cash available for deleveraging toward debt reduction year-to-date. The company's net debt leverage ratio improved to 0.5x at the end of the third quarter, down from 1.2x at December 31, 2025.

For the full year 2026, the company maintained its consolidated copper production guidance of 67,500 to 77,500 tonnes. However, it updated its consolidated copper C1 cash cost guidance to $2.25 to $2.45 per pound, citing a stronger Brazilian Real and inflationary pressures from the U.S.-Iran conflict. The company noted that allocating $30.3 million in year-to-date realized foreign exchange hedge gains would reduce this range to $2.10 to $2.30 per pound.

Guidance for total gold from Xavantina was set at 75,000 to 80,000 ounces, consisting of 30,000 to 35,000 ounces of mined production and approximately 45,000 ounces from historic stockpiles. Mined gold C1 cash cost guidance was updated to $1,650 to $1,800 per ounce, and AISC guidance was updated to $3,300 to $3,600 per ounce.

Ero also completed the 45,000-meter Phase 3 drill program at the Furnas Copper-Gold Project in the third quarter, which the company said was more than two years ahead of schedule. This completion satisfies the exploration component of the project's earn-in agreement with Vale Base Metals. The company expects to publish a Pre-Feasibility Study for the project in 2027.

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