Ero Copper Corp. (TSX: ERO) (“Ero” or the
“Company”) today is pleased to announce its financial results for
the three and twelve-months ended December 31, 2019. Management
will host a conference call tomorrow, Friday, March 13, 2020, at
11:30 a.m. Eastern to discuss the results. Dial-in details
for the call can be found near the end of this press release.
HIGHLIGHTS
- Record annual copper production in
2019 with 42,318 tonnes of copper produced – a 39% year-on-year
increase in production at the Curaçá Valley operations;
- Record C1 cash costs* of $0.80 and
$0.93 per pound of copper produced during the three and
twelve-month periods ended December 31, 2019, respectively;
- Record $31.2 and $134.1 million in
Adjusted EBITDA* during the three and twelve-month periods ended
December 31, 2019, respectively;
- Record cash flow from operations of
$35.9 and $127.8 million during the three and twelve-month periods
ended December 31, 2019, respectively;
- Record net income attributable to
owners of the Company of $45.2 and $91.9 million ($0.49 and $1.01
per share on a diluted basis) during the three and twelve-month
periods ended December 31, 2019; respectively;
- Record adjusted net income
attributable to owners of the Company* of $40.7 and $86.3 million
($0.44 and $0.94 per share on a diluted basis) during the three and
twelve-month periods ended December 31, 2019, respectively;
- 6,043 ounces of gold produced at C1
cash costs* of $980 per ounce during the fourth quarter resulting
in full-year production of 30,434 ounces of gold at C1 cash costs*
of $691 per ounce at the NX Gold Mine; and,
- Reiterate previously announced
full-year production, operating cost and capital guidance for
2020.
Commenting on the 2019 results, David Strang,
President and CEO, stated, “2019 was a fantastic year for the
Company and the financial results highlight the extraordinary
quality of our assets and people. Execution of our business plan
over the past several years has continued to translate to
significant year-on-year growth in production and profitability – a
trend we see continuing with the support of our exploration
programs underway both within and around our existing operations
and regionally throughout the Curaçá Valley.
Our results are highlighted by full year C1 cash
costs of $0.93 per pound of copper produced in 2019 – well below
our long-term target of $1.00 per pound, and significantly improved
when compared to the 2018 result of $1.19 per pound of copper
produced. Similarly, net income of $91.9 million in 2019 ($1.01 per
share on a fully diluted basis) and cash flow from operations of
$127.8 million reflect a significant year-on-year improvement when
compared to our 2018 results (net loss of $3.2 million and cash
flow from operations of $82.9 million, respectively).
Despite entering a period of global
macroeconomic uncertainty in early 2020, our business is as well
positioned as ever to continue to execute our business plan and
long-term growth strategy. Supported by low-cost, highly profitable
operations, we are successfully running one of the most
comprehensive exploration programs globally. At each of our
operations, excess mill capacity paired with low capital intensity,
supported by first-quartile operating costs continues to translate
into high returns on this invested capital.”
*EBITDA, Adjusted EBITDA, Adjusted net income
(loss), C1 cash cost of copper produced (per lb) and C1 cash costs
of gold produced (per ounce) are non-IFRS measures – see the Notes
section of this press release for a discussion on non-IFRS
Measures
OPERATIONS & EXPLORATION HIGHLIGHTS
- Mining & Milling
Operations – another year of record copper production
- 589,065 tonnes of ore grading 2.16% copper processed during the
fourth quarter producing 11,526 tonnes of copper in concentrate
after metallurgical recoveries of 90.7%.
- Total of 2.4 million tonnes of ore processed grading 1.93%
copper producing 42,318 tonnes of copper in concentrate after
metallurgical recoveries that averaged 90.5% during the
twelve-month period ended December 31, 2019.
- Strong operating performance from Pilar and Vermelhos,
highlighted by significant quarter-on-quarter increases in grades
and tonnes mined with 433,258 tonnes grading 1.73% copper and
185,045 tonnes grading 3.39% copper mined during the period,
respectively – an increase of approximately 1,500 tonnes of
contained copper mined as compared to prior quarter.
- The NX Gold Mine processed 158,275 tonnes of ore grading 6.98
grams per tonne gold, resulting in the production of 30,434 ounces
of gold and 19,641 ounces of silver as by-product after
metallurgical recoveries that averaged 85.7% during the twelve
month period ended December 31, 2019.
- Successfully commenced mining of the high-grade Santo Antonio
vein prior to year-end.
- Exploration
Activities – focus on regional exploration in 2020 with 26
drill rigs operating at MCSA and 4 at NX Gold
- Vermelhos District
- Drilling within the Vermelhos District, where 12 drill rigs are
operating (including four drill rigs operating on regional
targets), is currently targeting several high-priority exploration
targets identified during the Company’s comprehensive targeting
work. These targets extend over approximately 10 kilometers of
anomalous soil geochemistry and induced polarization (“IP”)
anomalies known as the Vermelhos System targets.
- Pilar District
- Exploration activity within the Pilar District, where 11 drill
rigs are currently operating, continues to focus on infill and
extensional drilling of high-grade zones that the Company has yet
to fully delineate within the Pilar underground mine. These zones
are highlighted by recent drill results from the Deepening zone,
located down-plunge to the north and along strike to the south of
known mineralization where a new “Super Pod” of mineralization was
discovered. Additionally, drilling at Pilar will seek to further
delineate the up-dip extension of the Baraúna zone, which extends
from the upper levels of the Pilar underground mine towards surface
south of the historic open pit.
- Surubim District
- There are three drill rigs operating on regional exploration
targets within the Surubim District.
- NX Gold Mine
- At the NX Gold Mine, four exploration drill rigs are currently
operating on extensions of the recently announced Santo Antonio
vein and testing for continuity of the Brás vein. Additionally, the
first comprehensive regional exploration program is underway.
- Corporate Highlights – strong overall
liquidity, well positioned for 2020 plans
- Total cash and cash equivalents and
available liquidity at December 31, 2019 was $21.5 million and
$25.1 million compared to $18.9 million and $4.7 million,
respectively, at the end of 2018.
- As at the end of 2019, the Company
had $14.0 million undrawn on its secured, revolving credit facility
in Canada, plus an additional R$64.8 million in available undrawn
lines of credit in Brazil.
OPERATING AND FINANCIAL HIGHLIGHTS
|
|
3 monthsendedDec. 31,2019 |
|
3 monthsendedSep. 30,2019 |
|
12 monthsendedDec. 31,2019 |
|
3 monthsendedDec. 31,2018 |
|
12 monthsendedDec. 31,2018 |
Operating Highlights (MCSA Operations) |
Ore Processed (tonnes) |
|
|
589,065 |
|
|
|
587,915 |
|
|
|
2,424,592 |
|
|
|
777,480 |
|
|
|
2,257,917 |
|
Grade
(% Cu) |
|
|
2.16 |
|
|
|
1.84 |
|
|
|
1.93 |
|
|
|
1.77 |
|
|
|
1.56 |
|
Cu
Production (tonnes) |
|
|
11,526 |
|
|
|
9,674 |
|
|
|
42,318 |
|
|
|
12,104 |
|
|
|
30,426 |
|
Cu
Production (000 lbs) |
|
|
25,411 |
|
|
|
21,327 |
|
|
|
93,296 |
|
|
|
26,685 |
|
|
|
67,077 |
|
Cu Sold
in Concentrate (tonnes) |
|
|
11,595 |
|
|
|
10,200 |
|
|
|
42,759 |
|
|
|
12,900 |
|
|
|
30,107 |
|
Cu Sold
in Concentrate (000 lbs) |
|
|
25,562 |
|
|
|
22,487 |
|
|
|
94,267 |
|
|
|
28,440 |
|
|
|
66,375 |
|
|
|
|
|
|
|
|
|
|
|
|
C1 Cash
Cost of copper produced (per lb)(1) |
|
|
0.80 |
|
|
|
1.01 |
|
|
|
0.93 |
|
|
|
0.99 |
|
|
|
1.19 |
|
|
|
|
|
|
|
|
|
|
|
|
Gold (NX Gold Operations) |
|
|
|
|
|
|
|
|
|
|
Au
Production (oz) |
|
|
6,043 |
|
|
|
4,356 |
|
|
|
30,434 |
|
|
|
10,008 |
|
|
|
39,808 |
|
C1 Cash
Cost of gold produced (per ounce)(1) |
|
$980 |
|
|
$1,169 |
|
|
$691 |
|
|
$540 |
|
|
$520 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights ($millions, except per share
amounts) |
Revenues |
|
$75.7 |
|
|
$60.6 |
|
|
$284.8 |
|
|
$85.1 |
|
|
$233.1 |
|
Gross
profit |
|
$31.1 |
|
|
$21.3 |
|
|
$117.1 |
|
|
$39.0 |
|
|
$82.2 |
|
EBITDA(1) |
|
$34.3 |
|
|
$35.1 |
|
|
$141.4 |
|
|
$40.2 |
|
|
$70.5 |
|
Adjusted EBITDA(1) |
|
$31.2 |
|
|
$27.3 |
|
|
$134.1 |
|
|
$39.0 |
|
|
$99.9 |
|
Cash
flow from operations |
|
$35.9 |
|
|
$29.5 |
|
|
$127.8 |
|
|
$24.0 |
|
|
$82.9 |
|
Net
income (loss) |
|
$45.4 |
|
|
$16.3 |
|
|
$92.5 |
|
|
$11.3 |
|
|
($3.0 |
) |
Net
income (loss) attributable to owners of the Company |
|
$45.2 |
|
|
$16.3 |
|
|
$91.9 |
|
|
$11.2 |
|
|
($3.2 |
) |
Net income (loss) per share attributable to owners of the Company
(Basic) |
|
$0.53 |
|
|
$0.19 |
|
|
$1.08 |
|
|
$0.13 |
|
|
($0.04 |
) |
Net income (loss) per share attributable to owners of the Company
(Diluted) |
|
$0.49 |
|
|
$0.18 |
|
|
$1.01 |
|
|
$0.13 |
|
|
($0.04 |
) |
Adjusted net income (loss) attributable to owners of the
Company(1) |
|
$40.7 |
|
|
$10.2 |
|
|
$86.3 |
|
|
$7.9 |
|
|
$10.9 |
|
Adjusted net income (loss) per share attributable to owners of the
Company(1) (Basic) |
|
$0.47 |
|
|
$0.12 |
|
|
$1.01 |
|
|
$0.09 |
|
|
$0.13 |
|
Adjusted net income (loss) per share attributable to owners of the
Company(1) (Diluted) |
|
$0.44 |
|
|
$0.11 |
|
|
$0.94 |
|
|
$0.09 |
|
|
$0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents |
|
$21.5 |
|
|
$21.7 |
|
|
$21.5 |
|
|
$18.9 |
|
|
$18.9 |
|
Working
Capital (Deficit)(1) |
|
($4.9 |
) |
|
$6.4 |
|
|
($4.9 |
) |
|
($9.3 |
) |
|
($9.3 |
) |
Net
Debt(1) |
|
($136.4 |
) |
|
($133.4 |
) |
|
($136.4 |
) |
|
($130.3 |
) |
|
($130.3 |
) |
Footnotes[1]
EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted net
income (loss) per share, Net Debt, Working Capital, C1 cash cost of
copper produced (per lb) and C1 cash cost of gold produced (per
ounce) are non-IFRS measures – see the Notes section of this press
release for a discussion on non-IFRS Measures
ADJUSTED EBITDA & NET INCOME (LOSS)
RECONCILIATION
|
|
2019 – Q4 |
|
|
|
|
Adjusted EBITDA |
|
$ |
31,152 |
|
Adjustments: |
|
|
Unrealized foreign exchange loss on USD denominated debt in
MCSA |
|
|
3,753 |
|
Unrealized foreign exchange loss on derivative contracts |
|
|
1,410 |
|
Realized foreign exchange loss on derivative contracts |
|
|
(462 |
) |
Share based compensation and other |
|
|
(1,582 |
) |
Loss on gold hedge contracts |
|
|
(15 |
) |
EBITDA |
|
$ |
34,256 |
|
|
|
|
Adjusted net income
attributable to owners of the Company |
|
$ |
40,654 |
|
Adjustments for non-cash items
(attributable to owners of the Company): |
|
|
Unrealized foreign exchange loss on USD denominated debt in
MCSA |
|
|
3,738 |
|
Unrealized loss on gold hedge contracts |
|
|
677 |
|
Unrealized foreign exchange loss on derivative contracts |
|
|
1,404 |
|
Shared based compensation |
|
|
(1,304 |
) |
Reported net income attributable to owners of the Company |
|
$ |
45,169 |
|
2020 PRODUCTION OUTLOOK
Copper production from the Curaçá Valley
operations for 2020 is expected to come from ore mined from the
Pilar and Vermelhos underground mines. Production from the Pilar
Mine is expected to contribute a total of approximately 1.4 million
tonnes grading 1.40% copper while production from the Vermelhos
Mine is expected to contribute a total of approximately 750,000
tonnes grading 3.50% copper resulting in a blended mill head grade
of approximately 2.15% copper.
Curaçá Valley Operations |
|
2019 OriginalGuidance |
|
2019 RevisedGuidance |
|
2019 Result |
|
|
2020Guidance[1] |
|
Tonnes Processed |
|
2,050,000 |
|
2,350,000 |
|
2,424,592 |
|
|
2,150,000 |
|
Copper Grade (% Cu) |
|
2.00% |
|
1.95% |
|
1.93% |
|
|
2.15% |
|
Copper
Recovery (%) |
|
88.0% |
|
90.0% |
|
90.5% |
|
|
91.0% |
|
Cu Production (000
tonnes) |
|
36.0 – 38.0 |
|
40.0 – 42.0 |
|
42.3 |
|
|
41.0 – 43.0 |
|
|
|
|
|
|
|
|
|
|
|
|
NX Gold Operations |
|
2019 OriginalGuidance |
|
2019 RevisedGuidance |
|
2019 Result |
|
|
2020Guidance[1] |
|
Tonnes Processed |
|
- |
|
- |
|
158,275 |
|
|
150,000 |
|
Gold Grade (gpt) |
|
- |
|
- |
|
6.98 |
|
|
9.00 |
|
Gold
Recovery (%) |
|
- |
|
- |
|
85.7% |
|
|
90.0% |
|
Au Production (000
ounces) |
|
- |
|
- |
|
30.4 |
|
|
38.0 – 40.0 |
|
Ag Production (000 ounces) |
|
- |
|
- |
|
19.6 |
|
|
n/a |
|
[1] Guidance is based on certain estimates and
assumptions, including but not limited to, mineral reserve
estimates, grade and continuity of interpreted geological
formations and metallurgical performance. Please refer to the
Company’s SEDAR filings for complete risk factors.
2020 CASH COST GUIDANCE
The Company’s guidance for 2020 assumes a
USD:BRL foreign exchange rate of 4.00, gold price of $1,450 per
ounce and silver price of $17.00 per ounce.
|
|
2019 RevisedGuidance |
|
2019 Result |
|
|
2020 Guidance |
|
Curaçá Valley C1 Cash Cost Guidance
(US$/lb)[1] |
|
$1.00 - $1.10 |
|
$0.93 |
|
|
$0.85 – $0.95 |
|
NX Gold Mine C1 Cash Cost Guidance
(US$/oz)[1] |
|
n/a |
|
$691 |
|
|
$475 - $575 |
|
[1] C1 Cash Costs are a non-IFRS measures – see
the Notes section of this press release for additional
information.
2020 CAPITAL EXPENDITURE GUIDANCE
The Company’s capital expenditure guidance for
2020 assumes a USD:BRL foreign exchange rate of 4.00 and has been
presented below in USD millions. Capital expenditure guidance,
including discretionary capital for 2020, is based on a budgeted
copper price of US$2.65 per pound of copper.
Curaçá Valley / Copper Operations |
|
2019 Revised Guidance |
|
|
2020 Guidance |
|
Pilar Mine and Caraíba Mill Complex[1] |
|
$45.0 |
|
|
$58.0 |
|
Vermelhos Mine |
|
$20.0 |
|
|
$16.0 |
|
Boa Esperanҫa Project |
|
$1.0 |
|
|
$0.2 |
|
Capital Expenditure Guidance |
|
$66.0 |
|
|
$74.2 |
|
Curaçá Valley Exploration[2] |
|
$30.0 |
|
|
$28.0 |
|
|
|
|
|
|
|
|
NX Gold Operations |
|
2019 Guidance |
|
|
2020 Guidance |
|
Capital Expenditure Guidance |
|
n/a |
|
|
$5.7 |
|
Exploration[2] |
|
n/a |
|
|
$3.5 |
|
Total, NX Gold |
|
n/a |
|
|
$9.2 |
|
[1] Pilar Mine and Caraíba Mill Complex
capital expenditure guidance for 2020 includes completion of the
high-intensity grinding mill and operation of the ore-sorting pilot
plant.
[2] Exploration capital expenditure
guidance for 2020 has been forecast through September of 2020 and,
as with prior guidance, is dependent, in part, on future
exploration success and subject to further review and revision.
NOTES
Non-IFRS measures
Financial results of the Company are prepared in
accordance with IFRS. The Company utilizes certain non-IFRS
measures, including C1 cash cost of copper produced (per lb), C1
cash costs of gold produced (per ounce), EBITDA, Adjusted EBITDA,
Adjusted net income (loss) attributable to owners of the Company,
Adjusted earnings (loss) per share, net debt and working capital,
which are not measures recognized under IFRS. The Company believes
that these measures, together with measures determined in
accordance with IFRS, provide investors with an improved ability to
evaluate the underlying performance of the Company. Non-IFRS
measures do not have any standardized meaning prescribed under
IFRS, and therefore they may not be comparable to similar measures
employed by other companies. The data is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS.
C1 cash cost of copper produced (per
lb.)
C1 cash cost of copper produced (per lb) is the
sum of production costs, net of capital expenditure development
costs and by-product credits, divided by the copper pounds
produced. C1 cash costs reported by the Company include treatment,
refining charges, offsite costs, and certain tax credits relating
to sales invoiced to the Company’s Brazilian customer on
sales. By-product credits are calculated based on
actual precious metal sales (net of treatment costs) during the
period divided by the total pounds of copper produced during the
period. C1 cash cost of copper produced per pound is a
non-IFRS measure used by the Company to manage and evaluate
operating performance of the Company’s operating mining unit, and
is widely reported in the mining industry as benchmarks for
performance, but does not have a standardized meaning and is
disclosed in addition to IFRS measures.
C1 cash cost of gold produced (per
ounce)
C1 cash cost of gold produced (per ounce) is the
sum of production costs, net of capital expenditure development
costs and silver by-product credits, divided by the gold ounces
produced. By-product credits are calculated based on actual
precious metal sales during the period divided by the total ounces
of gold produced during the period. C1 cash cost of gold
produced per pound is a non-IFRS measure used by the Company to
manage and evaluate operating performance of the Company’s
operating mining unit and is widely reported in the mining industry
as benchmarks for performance but does not have a standardized
meaning and is disclosed in addition to IFRS measures.
Earnings before interest, taxes,
depreciation and amortization (EBITDA) and Adjusted
EBITDA
EBITDA represents earnings before interest
expense, income taxes, depreciation, and amortization.
Adjusted EBITDA includes further adjustments for non-recurring
items and items not indicative to the future operating performance
of the Company. The Company believes EBITDA and adjusted
EBITDA are appropriate supplemental measures of debt service
capacity and performance of its operations.
Adjusted EBITDA is calculated by removing the
following income statement items:
- Recovery of value added taxes
- Foreign exchange loss (gain)
- Loss on gold hedge contracts
- Share based compensation
- Loss on debt settlement
Adjusted Net Income (Loss) attributable
to owners of the Company and Adjusted Earnings (Loss) Per Share
attributable to owners of the Company
The Company uses the financial measure “Adjusted
net income (loss) attributable to owners of the Company” and
“Adjusted earnings (loss) per share attributable to owners of the
Company” to supplement information in its consolidated financial
statements. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, the Company and certain
investors and analysts use this information to evaluate the
Company’s performance. The Company excludes non-cash and unusual
items from net earnings to provide a measure which allows the
Company and investors to evaluate the operating results of the
underlying core operations.
During the period, the following non-cash or
unusual adjustments to calculated adjusted net income (loss):
- Net recovery of value added taxes
- Share based compensation
- Unrealized foreign exchange loss on USD denominated debt in
MCSA
- Unrealized foreign exchange loss on foreign exchange
derivatives contract
- Unrealized loss on gold hedge contracts
- Loss on debt settlement
Net Debt
Net debt is determined based on cash and cash
equivalents, restricted cash and loans and borrowings as reported
in the Company’s consolidated financial statements. The Company
uses net debt as a measure of the Company’s ability to pay down its
debt.
Working capital
Working capital is determined based on current
assets and current liabilities as reported in the Company’s
consolidated financial statements. The Company uses working capital
as a measure of the Company’s short-term financial health and
operating efficiency.
CONFERENCE CALL DETAILS
The Company will hold a conference call on
Friday, March 13, 2020 at 11:30 am Eastern time (8:30 am Pacific
time) to discuss these results.
Date: |
Friday, March 13, 2020 |
Time: |
11:30 am Eastern time (8:30 am Pacific time) |
Dial in: |
North America: 1-800-319-4610, International: +1-604-638-5340please
dial in 5-10 minutes prior and ask to join the call |
|
|
Replay |
North America: 1-800-319-6413, International: +1-604-638-9010 |
Replay Passcode: |
3983 |
This press release should be read in conjunction
with the complete audited consolidated annual financial statements
for the three and twelve-month periods ended December 31, 2019 and
2018 and the management’s discussion and analysis (“MD&A”) for
the three and twelve-month periods ended December 31, 2019
available on the Company’s website www.erocopper.com and on SEDAR
(www.sedar.com).
ABOUT ERO COPPER CORP
Ero Copper Corp, headquartered in Vancouver,
B.C., is focused on copper production growth from the Vale do
Curaçá Property, located in Bahia, Brazil. The Company’s primary
asset is a 99.6% interest in the Brazilian copper mining company,
Mineração Caraíba S.A. (“MCSA”), 100% owner of the Vale do Curaçá
Property with over 40 years of operating history in the
region. The Company currently mines copper ore from the Pilar
and Vermelhos underground mines. In addition to the Vale do Curaçá
Property, MCSA owns 100% of the Boa Esperanҫa development project,
an IOCG-type copper project located in Pará, Brazil and the
Company, directly and indirectly, owns 97.6% of the NX Gold Mine,
an operating gold and silver mine located in Mato Grosso,
Brazil. Additional information on the Company and its
operations, including technical reports on the Vale do Curaçá, Boa
Esperanҫa and NX Gold properties, can be found on the Company’s
website (www.erocopper.com) and on SEDAR (www.sedar.com).
The disclosure of Technical Information in this
press release was reviewed and approved by Ricardo Emerson Re, MSc,
MBA, MAusIMM (CP) (No. 305892), Registered Member (No. 0138)
(Chilean Mining Commission) and Resource Manager of the Company who
is a “qualified person” within the meanings of National Instrument
43-101, Standards of Disclosure for Mineral Projects (“NI
43-101”).
ERO COPPER
CORP. |
|
|
|
Signed: “David Strang” |
For further information contact: |
|
|
David Strang, President &
CEO |
Makko DeFilippo, Vice President, Corporate Development |
|
(604) 429-9244 |
|
info@erocopper.com |
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS This
Press Release contains “forward-looking information” within the
meaning of applicable Canadian securities laws. Forward-looking
information includes statements that use forward-looking
terminology such as “may”, “could”, “would”, “will”, “should”,
“intend”, “target”, “plan”, “expect”, “budget”, “estimate”,
“forecast”, “schedule”, “anticipate”, “believe”, “continue”,
“potential”, “view” or the negative or grammatical variation
thereof or other variations thereof or comparable terminology. Such
forward-looking information includes, without limitation,
statements with respect to the Company's expected operations at the
Vermelhos and Pilar Mines as well as at the NX Gold Property,
drilling plans, plans for the Company's exploration program, timing
of any updated mineral resource and reserve updates and technical
reports, the Company's future production outlook, cash costs,
capital resources and expenditures required to successfully
complete the Company’s near-term plans.Forward-looking information
is not a guarantee of future performance and is based upon a number
of estimates and assumptions of management in light of management’s
experience and perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances, as of
the date of this Press Release including, without limitation,
assumptions about: favourable equity and debt capital markets; the
ability to raise any necessary additional capital on reasonable
terms to advance the production, development and exploration of the
Company’s properties and assets; future prices of copper and other
metal prices; the timing and results of exploration and drilling
programs; the accuracy of any mineral reserve and mineral resource
estimates; the geology of the Vale do Curaçá Property, NX Gold Mine
and the Boa Esperanҫa Property being as described in the technical
reports for these properties; production costs; the accuracy of
budgeted exploration and development costs and expenditures; the
price of other commodities such as fuel; future currency exchange
rates and interest rates; operating conditions being favourable
such that the Company is able to operate in a safe, efficient and
effective manner; political and regulatory stability; the receipt
of governmental, regulatory and third party approvals, licenses and
permits on favourable terms; obtaining required renewals for
existing approvals, licenses and permits on favourable terms;
requirements under applicable laws; sustained labour stability;
stability in financial and capital goods markets; availability of
equipment; positive relations with local groups and the Company’s
ability to meet its obligations under its agreements with such
groups; and satisfying the terms and conditions of the Company’s
current loan arrangements. While the Company considers these
assumptions to be reasonable, the assumptions are inherently
subject to significant business, social, economic, political,
regulatory, competitive and other risks and uncertainties,
contingencies and other factors that could cause actual actions,
events, conditions, results, performance or achievements to be
materially different from those projected in the forward-looking
information. Many assumptions are based on factors and events that
are not within the control of the Company and there is no assurance
they will prove to be correct. Furthermore, such forward-looking
information involves a variety of known and unknown risks,
uncertainties and other factors which may cause the actual plans,
intentions, activities, results, performance or achievements of the
Company to be materially different from any future plans,
intentions, activities, results, performance or achievements
expressed or implied by such forward-looking information. Such
risks include, without limitation the risk factors listed under the
heading “Risk Factors” in the Annual Information Form of the
Company for the year ended December 31, 2019, dated March 12, 2020.
Although the Company has attempted to identify important factors
that could cause actual actions, events, conditions, results,
performance or achievements to differ materially from those
described in forward-looking information, there may be other
factors that cause actions, events, conditions, results,
performance or achievements to differ from those anticipated,
estimated or intended. The Company cautions that the foregoing
lists of important assumptions and factors are not exhaustive.
Other events or circumstances could cause actual results to differ
materially from those estimated or projected and expressed in, or
implied by, the forward-looking information contained herein. There
can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking
information. Forward-looking information contained herein is made
as of the date of this press release and the Company disclaims any
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or results or
otherwise, except as and to the extent required by applicable
securities laws. GENERAL, Unless otherwise stated, information of a
scientific or technical nature in respect of the Vale do Curaçá
Property included in this press release is based upon the Vale do
Curaçá technical report entitled “2018 Updated Mineral Resources
and Mineral Reserves Statements of Mineração Caraíba’s Vale do
Curaçá Mineral Assets, Curaçá Valley”, dated October 17, 2018 with
an effective date of August 1, 2018, prepared by Rubens Jose De
Mendonça, MAusIMM, of Planminas and Porfirio Cabaleiro
Rodrigues, MAIG, Fábio Valério Cãmara Xavier, MAIG, and Bernardo
Horta de Cerqueira Viana, MAIG, all of GE21 Consultoria Mineral,
whom are independent qualified persons under NI 43-101. Information
of a scientific or technical nature in respect of the NX Gold Mine
included in this press release is based upon the Vale do Curaçá
technical report entitled “Mineral Resource and Mineral Reserve
Estimate of the NX Gold Mine, Nova Xavantina”, dated January 21,
2019 with an effective date of August 31, 2018, prepared by
Porfirio Cabaleiro Rodrigues, MAIG, Leonardo Apparicio da Silva,
MAIG, and Leonardo de Moraes Soares, MAIG, all of GE21 Consultoria
Mineral, whom are independent qualified persons under NI 43-101.
Cautionary Notes Regarding Mineral Resource and Reserve Estimates
In accordance with applicable Canadian securities regulatory
requirements, all mineral reserve and mineral resource estimates of
the Company disclosed or incorporated by reference in this press
release have been prepared in accordance with NI 43-101 and are
classified in accordance with the CIM Standards. Mineral resources
which are not mineral reserves do not have demonstrated economic
viability. Pursuant to the CIM Standards, mineral resources have a
higher degree of uncertainty than mineral reserves as to their
existence as well as their economic and legal feasibility. Inferred
mineral resources, when compared with Measured or Indicated mineral
resources, have the least certainty as to their existence, and it
cannot be assumed that all or any part of an Inferred mineral
resource will be upgraded to an Indicated or Measured mineral
resource as a result of continued exploration. Pursuant to NI
43-101, Inferred mineral resources may not form the basis of any
economic analysis. Accordingly, readers are cautioned not to assume
that all or any part of a mineral resource exists, will ever be
converted into a mineral reserve, or is or will ever be
economically or legally mineable or recovered. |
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