CA - Ero Copper raises copper production guidance in new five-year outlook
2023-04-06 14:12:46 ET
Ero Copper ( NYSE: ERO ) +4.9% in Thursday's trading after issuing an update to its five-year operating outlook that anticipates consolidated copper production rising by ~125% from 2022 levels to 100K-110K metric tons in 2025.
The company said the new outlook for a 15% increase over the previous 2025 production forecast of 92K-102K tons is due primarily to higher anticipated mined grades in 2024-26 based on recent infill drilling.
Ero Copper ( ERO ) also said gold production is on track to grow by ~40% from 2022 levels to 55K-60K oz/year beginning in 2024.
The company guided for capital spending of $342M-$389M in 2023, $237M-$275M in 2024, $145M-$178M in 2025, $130M-$163M in 2026, and $105M-$138M in 2027.
The updated five-year operating outlook reflected the continued execution of several strategic growth initiatives, including construction of the Tucuma project as well as progress on the company's Pilar 3.0 and NX 60 initiatives at its respective Caraiba and Xavantina operations.
Ero Copper ( ERO ) has posted sizable growth and promising financials over the past several years, but the change in Brazil's political landscape could hinder upside, ZMK Capital writes in an analysis published on Seeking Alpha .
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Ero Copper raises copper production guidance in new five-year outlook