Ero Copper Unveils Strong Economics for Furnas Project with $2.0B NPV and 27% IRR

summarizeSummary

Ero Copper announced the results of its inaugural Preliminary Economic Assessment for the Furnas Copper-Gold Project, outlining a large-scale, long-life operation with robust economics, including a $2.0 billion after-tax NPV and a 27.0% after-tax IRR.

check_boxKey Events

• Inaugural PEA Outlines Robust Project Economics

  The Preliminary Economic Assessment for the Furnas Copper-Gold Project projects an after-tax Net Present Value (8%) of $2.0 billion and an after-tax Internal Rate of Return (IRR) of 27.0% over an initial 24-year mine life.

• Strong Production Profile and Low Operating Costs

  The project is expected to produce approximately 108,000 tonnes of copper equivalent annually over the first 15 years, with life-of-mine C1 cash costs estimated at an exceptionally low $0.30 per pound of copper produced.

• Significant Capital Investment Planned

  Initial capital expenditures for the project are estimated at approximately $1.3 billion, with phased expansion capital of $287 million and sustaining capital of $1.23 billion over the life of mine.

• Strategic Partnership and Growth Asset

  The Furnas Project is being advanced in partnership with Vale Base Metals, with Ero Copper earning a 60% interest. It is positioned as a cornerstone asset within the Company's organic growth pipeline.

auto_awesomeAnalysis

Ero Copper's inaugural Preliminary Economic Assessment (PEA) for the Furnas Copper-Gold Project outlines a highly attractive, long-life asset that significantly enhances the company's organic growth pipeline. The projected after-tax NPV of $2.0 billion is substantial relative to the company's current market capitalization, indicating significant potential value creation. The robust internal rate of return (IRR) of 27.0% and exceptionally low C1 cash costs of $0.30 per pound of copper underscore the project's strong economic viability. While a PEA is preliminary, these results provide a strong foundation for future development and de-risk the project, especially given the partnership with Vale Base Metals. Investors should monitor the advancement of engineering and permitting workstreams, as well as ongoing exploration drilling which could further expand the resource and enhance project value.