Ero Copper ERO reported fourth-quarter 2023 adjusted earnings per share of 21 cents, which missed the Zacks Consensus Estimate of 23 cents. The bottom line declined 13% year over year.

Including one-time items, ERO reported earnings of 37 cents per share in the fourth quarter of 2023 compared with 24 cents in the fourth quarter of 2022.

Ero Copper’s revenues were $116 million in the quarter under review, flat compared with the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $104 million.

Copper C1 cash costs for the quarter were $1.75 in the fourth quarter of 2023 compared with $1.59 in the fourth quarter of 2022. Gold C1 cash costs for the fourth quarter of 2023 were $413 compared with $371 in the year-ago quarter. All-in Sustaining Costs (AISC) for the same period were $991 compared with $844 in the fourth quarter of 2022.
Gross profit rose 18% year over year to $116 million. ERO’s adjusted EBITDA declined 5.5% year over year to $50.3 million in the fourth quarter of 2023. The adjusted EBITDA margin was 43.2% compared with 45.6% in the year-ago quarter.

Production Details

Ero Copper produced 1,760 tons of copper in the fourth quarter of 2023 and 43,857 tons of copper in 2023. Gold production was 16,867 ounces in the fourth quarter, resulting in a record 59,222 ounces in 2023.

2023 Results

Ero Copper reported adjusted earnings per share of 87 cents, which missed the Zacks Consensus Estimate of 88 cents. Earnings declined 4% year over year.

Including one-time items, ERO reported earnings of 98 cents per share in 2023 compared with $1.10 in 2022.

ERO Copper’s revenues grew 0.3% year over year to $427.5 million in 2023, missing the consensus estimate of $434 million.

ERO’s available liquidity at 2023-end was $261.7 million, including cash and cash equivalents of $111.7 million and $150 million of undrawn availability under the company's senior secured revolving credit facility.

Guidance for 2024

In 2024, the company expects consolidated copper production between 59,000 tons and 72,000 tons in concentrate. Gold production from Xavantina operations is projected in the range of 55,000-60,000 ounces.

Copper C1 cash cost guidance on a consolidated basis is expected to be between $1.50 and $1.75 for the year. At the Xavantina Operations, the gold C1 cash cost is expected to be between $550 and $650, reflecting improved fixed cost efficiencies driven by higher expected gold production, partially offsetting the impact of planned decreases to mined and processed gold grades. The company has set a gold AISC guidance between $1,050 and $1,150.