(TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today announced the voting results from its 2024 Annual and Special Meeting of Shareholders (the "Meeting"). A total of 610,859,421 common shares were voted at the Meeting, representing 78.81% of the votes attached to all outstanding common shares as of the record date March 22, 2024 . Shareholders voted in favour of all items of business considered at the Meeting, as follows:
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Miramar Secures EIS Funding for Bangemall Ni-Cu-Co-PGE Drilling
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to advise that it has been successful in securing funding under the WA Government’s Exploration Incentive Scheme (EIS) for drilling at the Company’s 100%-owned district-scale Bangemall Projects in the Gascoyne region of Western Australia.
Miramar has been advised by the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) that it has been awarded up to $180,000 towards the drilling campaign, which will target Norilsk-style nickel, copper, cobalt and platinum group element (Ni-Cu-Co-PGE) mineralisation at the Mount Vernon and Trouble Bore Projects for the first time (Figure 1).
Miramar is exploring for mafic intrusion-hosted Ni-Cu-Co-PGE sulphide mineralisation related to 1070Ma aged Kulkatharra Dolerite sills, part of the Warakurna Large Igneous Province and the same age as the large Nebo-Babel deposits in the West Musgraves.
Miramar’s Executive Chairman, Mr Allan Kelly, said the funding validated the Company’s exploration model and the potential district-scale opportunity within the Bangemall Project, and looked forward to the maiden drilling campaign.
“Over the last 24 months, the Company has advanced the Bangemall Projects from an exploration concept to regional-scale area selection followed by collection of project-scale datasets and, more recently, to delineation of individual drill targets through ground EM surveys,” Mr Kelly said.
“We have the opportunity to make a discovery of a new style of mineralisation in an underexplored geological province where we are the dominant landholder,” he added.
Upcoming work programme
Miramar’s initial aim is to show “proof of concept” of the Norilsk-style deposit model by discovering Ni-Cu- Co-PGE sulphide mineralisation.
- Upcoming work includes:
- Completion of heritage surveys where required
- Systematic rock chip sampling
- RC drilling
- Working towards grant of various tenement applications
Miramar already has Programme of Work (POW) approval for drilling at Mount Vernon and is currently waiting on approval for Trouble Bore.
Figure 1. Mount Vernon and Trouble Bore Projects showing airborne and ground EM anomalies in relation to Kulkatharra Dolerite sills.
Figure 2. Schematic diagram showing relationship between dolerite sills (green) and sedimentary units of the Edmund and Collier Basins, and the relative position of Miramar’s Ni-Cu-Co-PGE targets (red).
About the Ni-Cu-Co-PGE Bangemall Project
Miramar’s 100%-owned Bangemall Project comprises granted Exploration Licences and Applications covering approximately 2,190 km2 within the Gascoyne region of Western Australia.
The Proterozoic Edmund and Collier Basins have been intruded by numerous 1070Ma aged Kulkatharra Dolerite sills, part of the Warakurna Large Igneous Province, and the same age as the Giles Complex which hosts the large Nebo and Babel Ni-Cu deposits in the West Musgraves.
The region has been identified by both the Geological Survey of Western Australia and Geoscience Australia as having high prospectivity for Ni-Cu-PGE mineralisation associated with the Kulkatharra Dolerite sills, similar to the giant Norilsk-Talnakh Ni-Cu-PGE deposits in Russia.
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This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Miramar Resources
Overview
With the explosive growth of the electric vehicle market and the global push for sustainability, demand for battery metals is skyrocketing. This has created significant upside potential for exploration, particularly where copper and nickel are concerned.
Miramar Resources (ASX:M2R) intends to leverage that potential to the fullest. Led by an experienced board with a proven track record of successful exploration, discovery, development and production, the company has acquired multiple projects with the potential to host world-class mineral deposits. These discovery opportunities lie in Western Australia's Eastern Goldfields and Gascoyne regions, including the Capricorn Orogen, a rapidly emerging yet largely underexplored mineral province.Proterozoic orogens are well-established as hosting major mineral deposits. Capricorn is no exception. It's highly prospective for multiple commodities and deposit types.
Recognizing this opportunity, Miramar has acquired two large and highly prospective landholdings within the Capricorn Orogen: the Whaleshark copper-gold project and the Bangemall nickel-copper-PGE projects. In addition to these, Miramar maintains two gold projects in the Eastern Goldfields, one of which — Gidji JV — has the potential to become a new gold camp in the region.
Miramar's strategy is simple — to create shareholder value through the discovery of world-class mineral deposits. It's well-positioned to do exactly that, with active exploration programs, a tight share register and low enterprise value.
Company Highlights
- Australian exploration company Miramar Resources is well-positioned to take advantage of the battery metals opportunity.
- The current focus on battery metals creates significant upside opportunities for exploration, particularly on copper and nickel.
- Led by an experienced board with a track record of successful discovery, development and production, Miramar has acquired multiple projects with the potential to host world-class deposits, including:
- Large, shallow copper-gold targets at Whaleshark
- Multiple nickel-copper-PGE targets at Bangemall
- Multiple strategic Eastern Goldfields projects, including one with the potential to become a new gold camp
- Miramar is an active explorer with regular news flow, a tight share register and low enterprise value.
Key Assets
Whaleshark (Ashburton)
Located roughly 40 kilometres east of Onslow in the Ashburton region of Western Australia, Whaleshark. It was acquired by Miramar as part of its initial public offering in 2020.
Miramar secured $180,000 under the Exploration Incentive Scheme (EIS) funding program from the Western Australia Government to fund diamond drilling and project development at Whaleshark. Assay results from the diamond drilling confirmed the presence of bedrock copper sulphide mineralisation at Whaleshark and the company also identified the potential for very large magnetite iron deposits near existing infrastructure.
Project Highlights:
- Prospectivity: Whaleshark displays all the necessary characteristics for the presence of a large copper-gold deposit, including:
- Proterozoic granite with nearby iron-rich rocks
- Overlapping magnetic anomalism and gravity
- Strong anomalous “interface” geochemistry
- Sodic and potassic alteration
- High-priority Drilling: Miramar has identified multiple high-priority bedrock drill targets which comprise overlapping:
- Mobile metal iron (MMI) surface geochemical anomalism over roughly 1.2 square kilometers
- Gravity anomalism crosscut by a northwest-trending structure
- Strongly elevated copper, cobalt, gold and silver results gathered from “interface” aircore drilling
- Advantageous Geology: Whaleshark’s geology is similar to the large Ernest Henry IOCG deposit in Queensland, including the scale, suite and magnitude of elements. However, Whaleshark also displays shallower cover compared to Ernest Henry.
- Bedrock copper sulphide confirmed: Results from the completed diamond drill program confirmed the presence of bedrock copper sulphide mineralisation within the project. Multi-element assays subsequently also confirmed the presence of anomalous copper, gold, silver, molybdenum and tungsten throughout the Whaleshark granodiorite.
- Large Magnetite Iron Opportunities: The drill program, coupled with analysis and comparisons to historical data and magnetic anomalies also indicate potential for a large shallow magnetite iron deposit at Whaleshark in close proximity to significant infrastructure.
Bangemall/Mount Vernon (Gascoyne)
Miramar has several granted and pending exploration licences in its district-scale Bangemall project which are prospective for Proterozoic magmatic Ni-Cu-PGE mineralisation associated with 1070Ma Kulkatharra Dolerite sills which are the same age as the Giles Complex, host to the large Nebo and Babel Ni-Cu deposits in the West Musgraves of WA.
Both the Geological Survey of Western Australia and Geoscience Australia have identified the area as being highly prospective for numerous types of mineral deposits.
Since 2020, Miramar has built a strategic land position in the Bangemall region, focusing on areas containing key ingredients and/or regional-scale indicators for Norilsk-style Ni-Cu-PGE mineralisation:
- Kulkatharra Dolerite sills – source of Ni, Cu +/- PGE’s
- Proximity to major crustal-scale faults (+/- cross faults) - potential plumbing systems +/- traps
- Sulphidic sediments - potential sulphur source
- Regional-scale geochemical anomalism (GSWA regional geochemistry)
- Regional-scale EM anomalism (2013 Capricorn AEM Survey)
The company’s Mount Vernon project is a high priority. In early 2022, Miramar flew a detailed magnetic and electromagnetic survey over the Mount Vernon project, identifying multiple late-time anomalies potentially related to nickel-copper-PGE sulphide mineralisation. A ground EM is underway and RC drilling is planned for Mount Vernon targets.
Project Highlights:
- Mount Vernon potential: Miramar's VTEM survey at Mount Vernon confirms historic exploration at the project, which identified:
- Nickel, copper and platinum group elements soil anomalies
- Significant nickel-copper in rock chips
- Drilling intersected elevated nickel-copper-PGEs in dolerite
- 50 rock chip samples taken, with several containing course-grained pyrite in fine grained chill margin and coarser grained gabbro in the centre of the sill
- Current Work: Geophysical contractors have commenced a fixed loop electromagnetic survey to refine targets for future drill testing
- Expansion of Bangemall Project: In early 2024, Miramar announced the grant of the Trouble Bore Exploration Licence, adjacent to Mount Vernon, where historic EM surveys had identified a strong late-time EM anomaly that could be representative of buried Ni-Cu-PGE mineralisation.
Gidji JV Project (Eastern Goldfields)
Located roughly 15 kilometres north of Kalgoorlie, Gidji is a highly prospective yet underexplored gold project with potential nickel mineralisation. Miramar has been actively exploring the project since October 2020, resulting in the identification of several new targets and outlining large aircore gold anomalies at Marylebone, Blackfriars and Highway/Piccadilly, each of which could host a significant gold discovery. The Marylebone target is the highest priority target as it has the same geology, structural setting and scale as the 4-Moz Paddington gold deposit which is also located in the ‘Boorara Shear Zone’ to the north and where Miramar discovered high-grade gold in a quartz vein. At the Marylebone target alone, Miramar has outlined a large shallow gold “exploration target” of 1.4 to 3.2 million tons (Mt) @ 1.2 to 1.5 grams per ton (g/t) gold. The company believes Gidji has the potential to become a new gold camp.
Highlights:
- Multiple High-potential Gold Targets: Potential mineralisation at Marylebone ranges from 1.4 to 3.2 Mt @ 1.2 to 1.5 g/t gold. Other gold anomaly targets include Blackfriars, Highway-Piccadilly and Railway. Miramar is currently refining bedrock targets for further deep drilling.
- Potential Nickel Sulphide Mineralisation: Through re-analysis of multiple aircore holes, Miramar has produced significant platinum and palladium assays commonly associated with high nickel and copper results.
Glandore (Eastern Goldfields)
Situated 40 kilometres east of the Kalgoorlie Gold Field, Miramar's 100-percent-owned Glandore project displays the potential for significant high-grade gold mineralisation. Previous exploration of the project area identified a large aircore gold footprint along with significant gold anomalism. Diamond drilling in 2005 returned results that included 4 metres @ 44.3 g/t gold.
In 2022, Miramar completed a diamond drilling program at the high-grade “Glandore East’ target, at the edge of the salt lake, with results returning high-grade gold mineralisation and visible gold. Multiple parallel mineralised structures have been outlined beneath a very large aircore gold footprint and bedrock gold mineralisation is present over 600 metres of strike and open. A UAV magnetic survey identified multiple northeast-trending structures. More surveys are planned to further refine and assist in targeting.
Management Team
Allan Kelly - Executive Chair
Allan Kelly is a geologist and manager with over 30 years’ experience in mineral exploration, development and production throughout Australia and the Americas. Kelly graduated in 1994 with a Bachelor of Science (with honors) in applied geology from Curtin University. He has been involved in targeting early-stage exploration of gold, nickel and copper deposits in Australia, Alaska and Canada, and has previously held senior exploration positions at Western Mining Corporation and Avoca Resources.
In 2009, he founded Doray Minerals, which was listed on the ASX in early 2010. Under Kelly's management, Doray discovered the high-grade Wilber Lode gold deposit within the Andy Well Project in the Murchison Region of Western Australia, which moved from discovery to production within three and a half years. He subsequently funded, constructed and commissioned the Deflector gold-copper project within 14 months of completing the takeover of Mutiny Gold in 2014.
In 2014, Kelly was awarded the Association of Mining and Exploration Companies (AMEC) ‘Prospector Award’, along with Doray’s co-founder Heath Hellewell, for the discovery of the Wilber Lode and Andy Well gold deposits. He is a fellow and former councilor of the Association of Applied Geochemistry (AAG), a member of the Australian Institute of Geoscientists (AIG), and a member of the Institute of Brewing and Distilling (IBD).
Marion Bush - Technical Director
Marion Bush is a geologist with over 25 years’ experience in senior management, directorship, commercial management, analyst and marketing roles within the UK, Australia, Africa and South America. She was the former CEO of TSX-V listed Cassidy Gold and a former mining analyst.
Bush holds a Bachelor of Science (geology) from Curtin University, a Master of Science (mineral project appraisal) from the University of London (Imperial College) and is a member of the AIG.
Terry Gadenne - Non-executive Director
Terry Gadenne has over 30 years’ experience in military and civilian aviation, agriculture and mining management. He was the chief pilot of Mackay Helicopters and managing director of Mining Logic, located in Queensland. Throughout his career, Gadenne has had various board positions in not-for-profit organisations.
He holds a Bachelor of Aviation Studies (management) from the University of Western Sydney, completed the Company Directors Course with AICD and was a former army and navy pilot.
Mindy Ku - Company Secretary
Mindy Ku has over 15 years' international experience in financial analysis, financial reporting, management accounting, compliance reporting, board reporting, company secretarial services and office management across multiple jurisdictions (Australia, Malaysia, UK, Sweden and Norway) including ASX-listed public and private companies.
Ku holds a Bachelor of Science in computing from the University of Greenwich, United Kingdom, is a member of Certified Practising Accountant Australia and a fellow member of the Governance Institute of Australia.
Anax Metals Corporate Update
Anax Metals Limited (ASX: ANX, Anax, or the Company) is pleased to provide an update to the market on its corporate strategy focused on the recommencement of production at the Whim Creek Copper Project (Project), located 115km southwest of Port Hedland in the West Pilbara region of Western Australia (Figure 1). The Project is 80% owned by Anax with the remaining 20% owned by Develop Global Limited (ASX: DVP, Develop).
- Strengthened copper prices have enhanced the Whim Creek economics by 32% providing a Pre-Tax NPV7 of $357M and IRR of 74%.*
- The planned 8-year mine life will generate ~$520M in free cash.*
- Potential to increase open pit mine-life and cashflow through re- optimisation at higher commodity prices.
- Evelyn and Salt Creek copper resource extension exploration to be prioritized in the coming field season.
- Studies for the regional processing hub strategy have commenced.
- The Sulphur Springs Oxide/Transitional leaching test work at the CSIRO completed.
- Project financing and strategic partnering discussions progressing.
Anax’s Managing Director, Geoff Laing commented: “The Whim Creek asset continues to shape up as a strategic processing hub for the Pilbara. The robust standalone project delivers attractive economic outcomes which are highly leveraged to base metal prices.
The recent increase in copper and other key metal prices has significantly enhanced project financial metrics. Anax is ideally positioned to benefit from the positive momentum building in copper demand on the back of its critical role in electrification and green technologies
The team has worked diligently to ensure the Whim Creek asset is ready for near term production of key energy metals while establishing a platform for growth through the processing hub and resource extensions.”
Figure 1: Location of the Whim Creek Project
Strengthening copper, zinc, lead, silver and gold prices adds significant momentum to Whim Creek’s near-term development and recommencement of operations. Key outcomes from the Whim Creek Definitive Feasibility Study (DFS)1 and Heap Leach Study2 based on current metal price and exchange rate inputs provides a ~32% improvement in the Whim Creek financial outcome and would generate circa $520 million free cash, a Pre-Tax NPV7 of $357M and an IRR of 74%* (noting that the DFS1 and Heap Leach Study2 outputs from March and September 2023 provided an NPV7 of $270M and IRR of 55%, respectively).
Furthermore, price assumptions used in open pit optimisations in the DFS were markedly lower than current commodity prices as shown in Table 1.
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This article includes content from Anax Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Lundin Mining Announces Annual Meeting Voting Results
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Copper Prices Break US$10,000 as Supply Concerns Mount
Copper prices broke US$10,000 per metric ton this week, hitting highs not seen in two years. The last time they crossed the threshold was in March 2022 amid tensions following Russia's invasion of Ukraine.
Although concerns about demand from China remain, worries over dwindling global supply are heating up.
Copper has also been gaining momentum on anticipation of interest rate cuts from the US Federal Reserve.
Looking at supply, Goldman Sachs (NYSE:GS) has warned of intensifying stress, with analysts at the firm projecting a possible "stockout episode" by the fourth quarter due to growing deficits. Notably, the investment bank has boosted its year-end copper forecast to US$12,000 from US$10,000, strengthening its bullish stance.
“We continue to forecast a shift into open-ended and mounting metal deficits from 2024 onwards,” analysts including Nicholas Snowden wrote in note quoted recently by Bloomberg.
BHP's (ASX:BHP,NYSE:BHP,LSE:BHP) potential takeover of Anglo American (LSE:AAL,OTC Pink:AGPPF) has raised prospects of tighter control over global copper supply. If realized, the merger would create an entity commanding 10 percent of global copper supply, surpassing major players like Chile's Codelco and Freeport-McMoRan (NYSE:FCX).
The closure of Canadian miner First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama copper mine last year has heightened concerns about supply shortages, further accelerating copper's price momentum.
Despite copper's gains, skepticism lingers, with some observers pointing to soft indicators in China, such as falling import premiums and cautious purchasing behavior among buyers.
As of the end of Thursday (May 9), three month London Metal Exchange copper was at US$9,904.50.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Forum Energy Metals to Present at the Metals Investor Forum in Vancouver, BC May 10 - 11, 2024
Join Forum Energy Metals (TSXV: FMC) (OTCQB: FDCFF) at the Metals Investor Forum being held at the Paradox Hotel in Vancouver, BC on Friday May 10 and Saturday May 11. Forum President & CEO, Richard Mazur and Dr. Rebecca Hunter, Vice President of Exploration will be in attendance both days of the conference. In addition, Dr. Rebecca Hunter will be presenting an update on Forum's high grade uranium discovery in the Thelon Basin, Nunavut in the Grand Ballroom at 3:30pm on Saturday May 11.
Investors can register at:
https://web.cvent.com/event/5341b106-50fc-4555-9191-dbb71c498240/regProcessStep1
Rick Mazur, President & CEO stated, "This is an exciting Canadian uranium discovery in the Thelon Basin, a geologic equivalent of the prolific Athabasca Basin. We are currently mobilizing materials and will be building the camp later in the month in advance of our $10 million summer drill campaign beginning in June. We are very excited to get started on this summer program where we will be mainly focussed on the Tatiggaq deposit which is adjacent to Orano's 133 million pound Kiggavik uranium development project."
Technical meetings with management and partnering inquiries on Forum's portfolio of uranium and energy metals projects in Saskatchewan, Nunavut and Idaho can be arranged by contacting: Rick Mazur, President & CEO at mazur@forumenergymetals.com or by calling 604-630-1585.
About Forum Energy Metals
Forum Energy Metals Corp.(TSXV: FMC) (OTCQB: FDCFF) is focused on the discovery of high grade unconformity-related uranium deposits in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut.
For further information: https://www.forumenergymetals.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard J. Mazur, P.Geo.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Rick Mazur, P.Geo., President & CEO
mazur@forumenergymetals.com
Tel: 604-630-1585
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/208486
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Ero Copper Reports First Quarter Operating and Financial Results
(all amounts in US dollars, unless otherwise noted)
Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the "Company") is pleased to announce its operating and financial results for the three months ended March 31, 2024. Management will host a conference call tomorrow, Wednesday, May 8, 2024, at 11:30 a.m. eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.
HIGHLIGHTS
- The Tucumã Project is expected to achieve first copper concentrate production in early Q3 2024, marking a major inflection point for the Company
- Overall physical completion of approximately 97%
- Commissioning progressing ahead of schedule with major mechanical and sub- component commissioning completed during the quarter, as well as first ore through the crushing circuit and main conveyors
- Total direct project capital cost remains unchanged at $310 million
- First quarter copper production was 8,091 tonnes at C1 cash costs(*) of $2.30 per pound of copper produced. Including the benefit of realized gains on designated foreign exchange hedges, first quarter copper C1 cash costs(*) were $2.28 per pound
- Gold production during the quarter was a record 18,234 ounces at C1 cash costs (*) and All-in Sustaining Costs ("AISC") (*) of $395 and $797, respectively, per ounce of gold produced
- First quarter financial results reflect record gold production and operating margins at the Xavantina Operations as well as the sale of copper concentrate inventories carried over from Q4 2023 at the Caraíba Operations
- Net loss attributable to the owners of the Company of $7.1 million, or $0.07 per share on a diluted basis
- Adjusted net income attributable to the owners of the Company (*) of $16.8 million, or $0.16 per share on a diluted basis
- Adjusted EBITDA (*) of $43.3 million
- Available liquidity at quarter-end of $156.7 million, including $51.7 million in cash and cash equivalents plus $105.0 million of undrawn availability under the Company's senior secured revolving credit facility. Subsequent to quarter-end, to support the commencement of production and associated working capital needs at the Tucumã Project, the Company entered into a $50.0 million non-priced copper prepayment facility, which will be repaid through the delivery of copper at prevailing market prices.
- Following record operating performance at the Xavantina Operations during the quarter, the Company is increasing its 2024 gold production guidance from 55,000 to 60,000 ounces to a range of 60,000 to 65,000 ounces, and guiding towards the low end of its full-year cost guidance for the Xavantina Operations
- The Company is reaffirming all other 2024 production, cost and capital expenditure guidance ranges
(*) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
"The Xavantina Operations continued to exceed our expectations during the first quarter, achieving record gold production driven by favorable grade reconciliations that have continued into the second quarter," said David Strang, Chief Executive Officer. "This trend has allowed us to increase our full-year gold production guidance, which we expect will translate to achieving the lower end of our 2024 gold cost guidance.
"Our first quarter financial results also showcase Xavantina's strong performance and reflect the sale of copper concentrate inventories carried over from the fourth quarter of 2023 at the Caraíba Operations. Combined with a strengthening gold and copper price environment, we are off to a solid start to 2024.
"I am also delighted to report that commissioning is advancing ahead of schedule at the Tucumã Project, and we expect to achieve first production early in the third quarter. With copper fundamentals stronger than ever, we are committed to maintaining our momentum and are excited as we near a significant inflection point in our growth trajectory."
FIRST QUARTER REVIEW
- Mining & Milling Operations
- The Caraíba Operations processed 853,371 tonnes of ore grading 1.08% copper, producing 8,091 tonnes of copper in concentrate for the quarter after metallurgical recoveries of 88.1%
- Mill throughput volumes increased 5.1% quarter-on-quarter following the successful completion of the Caraíba mill expansion in late 2023
- A planned decrease in mined and processed copper grades during the quarter was compounded by delays in underground development required to access scheduled high-grade stopes, resulting in a higher proportion of ore mined from lower grade stopes during the period
- The Xavantina Operations processed 37,834 tonnes of ore grading 16.38 grams per tonne ("gpt"), producing a record 18,234 ounces of gold in the quarter after metallurgical recoveries of 91.5%
- The Caraíba Operations processed 853,371 tonnes of ore grading 1.08% copper, producing 8,091 tonnes of copper in concentrate for the quarter after metallurgical recoveries of 88.1%
- Organic Growth Projects
- As construction of the Tucumã Project nears completion, commissioning is advancing ahead of schedule, and first copper concentrate production is expected to commence in early Q3 2024
- Completed mechanical and sub-component commissioning in Q1 2024, as well as first ore through the crushing circuit and main conveyors
- Commissioning of the process plant, including the ball mill, flotation circuit, and tailings and concentrate filters, remains on track for integrated commissioning in June 2024
- Sulphide ore stockpiled for process plant commissioning was approximately 36,000 tonnes with over 160,000 tonnes of ore drilled and ready to be blasted in the mine as of quarter-end
- The total direct project capital estimate remains unchanged at approximately $310 million
- To date, the Tucumã Project has recorded no lost-time injuries with over five million hours of work completed since 2022
- At the Caraíba Operations, main shaft sinking at the Pilar Mine's new external shaft is on track to achieve a projected depth of approximately 600 meters by year-end
- Reaming of the second and longest raisebore leg of the shaft, totaling 718 meters, was completed in early April 2024
- Reaming of the second and longest raisebore leg of the shaft, totaling 718 meters, was completed in early April 2024
- As construction of the Tucumã Project nears completion, commissioning is advancing ahead of schedule, and first copper concentrate production is expected to commence in early Q3 2024
Figure 1: The Tucumã Project's flotation circuit and tailings thickener (May 2024).
Figure 2: Tailings thickener at the Tucumã Project (May 2024).
Figure 3: Exposed sulphide ore at the Tucumã Project (May 2024).
SUBSEQUENT EVENTS
To support the commencement of production and associated working capital needs at the Tucumã Project, the Company entered into a $50.0 million non-priced copper prepayment facility in May 2024, structured by the Bank of Montreal and with participation by CIBC Capital Markets. This facility will be repaid over 27 equal monthly installments, beginning in October 2024, through the delivery of 272 tonnes of copper each month. Should any delivery exceed the monthly amortization payment of $2.1 million based on prevailing market prices, the excess value will be repaid to the Company.
Through the end of 2024, the Company has the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million.
OPERATING AND FINANCIAL HIGHLIGHTS
2024 - Q1 | 2023 - Q4 | 2023 - Q1 | ||||||||||
Operating Information | ||||||||||||
Copper (Caraíba Operations) | ||||||||||||
Ore Processed (tonnes) | 853,371 | 812,202 | 772,548 | |||||||||
Grade (% Cu) | 1.08 | 1.59 | 1.33 | |||||||||
Cu Production (tonnes) | 8,091 | 11,760 | 9,327 | |||||||||
Cu Production (000 lbs) | 17,838 | 25,926 | 20,564 | |||||||||
Cu Sold in Concentrate (tonnes) | 9,461 | 11,429 | 9,464 | |||||||||
Cu Sold in Concentrate (000 lbs) | 20,859 | 25,197 | 20,865 | |||||||||
Cu C1 cash cost (1)(2) | $ | 2.30 | $ | 1.75 | $ | 1.89 | ||||||
Gold (Xavantina Operations) | ||||||||||||
Ore Processed (tonnes) | 37,834 | 34,416 | 35,763 | |||||||||
Grade (g / tonne) | 16.38 | 17.18 | 11.85 | |||||||||
Au Production (oz) | 18,234 | 16,867 | 12,443 | |||||||||
Au C1 cash cost (1) | $ | 395 | $ | 413 | $ | 436 | ||||||
Au AISC (1) | $ | 797 | $ | 991 | $ | 946 | ||||||
Financial Highlights ($ in millions, except per share amounts) | ||||||||||||
Revenues | $ | 105.8 | $ | 116.4 | $ | 101.0 | ||||||
Gross profit | 31.2 | 41.9 | 40.1 | |||||||||
EBITDA (1) | 17.8 | 73.7 | 48.1 | |||||||||
Adjusted EBITDA (1) | 43.3 | 50.3 | 44.5 | |||||||||
Cash flow from operations | 17.2 | 49.4 | 16.4 | |||||||||
Net (loss) income | (6.8 | ) | 37.1 | 24.5 | ||||||||
Net (loss) income attributable to owners of the Company | (7.1 | ) | 36.5 | 24.2 | ||||||||
Per share (basic) | (0.07 | ) | 0.37 | 0.26 | ||||||||
Per share (diluted) | (0.07 | ) | 0.37 | 0.26 | ||||||||
Adjusted net income attributable to owners of the Company (1) | 16.8 | 20.7 | 22.5 | |||||||||
Per share (basic) | 0.16 | 0.21 | 0.24 | |||||||||
Per share (diluted) | 0.16 | 0.21 | 0.24 | |||||||||
Cash, cash equivalents, and short-term investments | 51.7 | 111.7 | 236.6 | |||||||||
Working (deficit) capital (1) | (28.6 | ) | 25.7 | 218.8 | ||||||||
Net debt (1) | 415.1 | 314.5 | 174.2 |
(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
(2) Copper C1 cash cost including foreign exchange hedges (per lb) in Q1 2024 was $2.28, compared to $1.84 in Q1 2023.
2024 PRODUCTION AND COST GUIDANCE (*)
Following record operating performance at the Xavantina Operations during the quarter, the Company is increasing its 2024 gold production guidance from 55,000 to 60,000 ounces to a range of 60,000 to 65,000 ounces. The Company expects mined and processed gold grades to remain above plan through the remainder of H1 2024, as positive grade reconciliations have continued into Q2 2024. While this trend may continue beyond Q2 2024, the Company is projecting a reversion to long-term block model grades for planned mining areas in H2 2024. As a result of higher full-year production expectations, the Company is guiding towards the low end of its full-year cost guidance for the Xavantina Operations.
Consolidated copper production of 59,000 to 72,000 tonnes in concentrate is expected to be weighted towards H2 2024, largely due to the anticipated commencement of production at the Tucumã Project in early Q3 2024. Consequently, consolidated copper C1 cash costs are projected to be lower in H2 2024 versus H1 2024.
The Company's updated cost guidance for 2024 assumes a foreign exchange rate of 5.00 BRL per USD, a gold price of $1,900 per ounce and a silver price of $23.00 per ounce.
Previous Guidance | Updated Guidance | |||
Consolidated Copper Production (tonnes) | ||||
Caraíba Operations | 42,000 - 47,000 | Unchanged | ||
Tucumã Operations | 17,000 - 25,000 | Unchanged | ||
Total | 59,000 - 72,000 | Unchanged | ||
Consolidated Copper C1 Cash Costs (1) Guidance | ||||
Caraíba Operations | $1.80 - $2.00 | Unchanged | ||
Tucumã Operations | $0.90 - $1.10 | Unchanged | ||
Total | $1.50 - $1.75 | Unchanged | ||
The Xavantina Operations | ||||
Au Production (ounces) | 55,000 - 60,000 | 60,000 - 65,000 | ||
Gold C1 Cash Cost (1) Guidance | $550 - $650 | Low End of Range | ||
Gold AISC (1) Guidance | $1,050 - $1,150 | Low End of Range |
* 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 most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors.
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within the MD&A.
2024 CAPITAL EXPENDITURE GUIDANCE (*)
Full-year capital expenditures are projected to range from $299 to $349 million, including an estimated $30 to $40 million allocated to consolidated exploration programs. As the Company nears completion of the Tucumã Project, capital expenditures are expected to decrease in Q2 2024 compared to Q1 2024 and be weighted towards H1 2024.
Capital expenditure guidance assumes an exchange rate of 5.10 USD:BRL for the Tucumã Project based on designated foreign exchange hedges with a weighted average ceiling and floor of 5.10 and 5.23 USD:BRL, respectively. All other capital expenditures assume an exchange rate of 5.00 USD:BRL. Figures presented below are in USD millions.
Caraíba Operations | ||
Growth | $80 - $90 | |
Sustaining | $100 - $110 | |
Total, Caraíba Operations | $180 - $200 | |
Tucumã Project | ||
Growth | $65 - $75 | |
Capitalized Ramp-Up Costs | $4 - $6 | |
Sustaining | $2 - $5 | |
Total, Tucumã Project | $71 - $86 | |
Xavantina Operations | ||
Growth | $3 - $5 | |
Sustaining | $15 - $18 | |
Total, Xavantina Operations | $18 - $23 | |
Consolidated Exploration Programs | $30 - $40 | |
Company Total | ||
Growth | $148 - $170 | |
Capitalized Ramp-Up Costs | $4 - $6 | |
Sustaining | $117 - $133 | |
Exploration | $30 - $40 | |
Total, Company | $299 - $349 |
(*) 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 most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors.
CONFERENCE CALL DETAILS
The Company will hold a conference call on Wednesday, May 8, 2024 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results.
Date: | Wednesday, May 8, 2024 |
Time: | 11:30 am Eastern time (8:30 am Pacific time) |
Dial in: | Canada/USA: 1-844-763-8274, International: +1-647-484-8814 please dial in 5-10 minutes prior and ask to join the call |
Pre-Register: | Registration link (https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10023373&linkSecurityString=f82a87e37a) (pre-register to bypass the live operator queue) |
Replay: | Canada/USA: 1-855-669-9658, International: +1-604-674-8052 |
Replay Passcode: | 0848 |
Reconciliation of Non-IFRS Measures
Financial results of the Company are presented in accordance with IFRS. The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost, gold AISC, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
For additional details please refer to the Company's discussion of non-IFRS and other performance measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.
Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges
The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.
Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
Cost of production | $ | 42,227 | $ | 39,790 | $ | 36,285 | ||||||
Add (less): | ||||||||||||
Transportation costs & other | 1,252 | 1,853 | 1,339 | |||||||||
Treatment, refining, and other | 5,170 | 7,332 | 6,463 | |||||||||
By-product credits | (2,440 | ) | (3,394 | ) | (2,810 | ) | ||||||
Incentive payments | (1,199 | ) | (1,693 | ) | (1,237 | ) | ||||||
Net change in inventory | (3,893 | ) | 1,434 | (1,185 | ) | |||||||
Foreign exchange translation and other | (7 | ) | 20 | 15 | ||||||||
C1 cash costs | 41,110 | 45,342 | 38,870 | |||||||||
(Gain) loss on foreign exchange hedges | (276 | ) | (4,185 | ) | (932 | ) | ||||||
C1 cash costs including foreign exchange hedges | $ | 40,834 | $ | 41,157 | $ | 37,938 |
Mining | $ | 25,256 | $ | 26,646 | $ | 23,210 | ||||||
Processing | 7,177 | 8,177 | 6,554 | |||||||||
Indirect | 5,947 | 6,581 | 5,453 | |||||||||
Production costs | 38,380 | 41,404 | 35,217 | |||||||||
By-product credits | (2,440 | ) | (3,394 | ) | (2,810 | ) | ||||||
Treatment, refining and other | 5,170 | 7,332 | 6,463 | |||||||||
C1 cash costs | 41,110 | 45,342 | 38,870 | |||||||||
(Gain) loss on foreign exchange hedges | (276 | ) | (4,185 | ) | (932 | ) | ||||||
C1 cash costs including foreign exchange hedges | $ | 40,834 | $ | 41,157 | $ | 37,938 | ||||||
Costs per pound | ||||||||||||
Payable copper produced (lb, 000) | 17,838 | 25,926 | 20,564 | |||||||||
Mining | $ | 1.42 | $ | 1.03 | $ | 1.13 | ||||||
Processing | $ | 0.40 | $ | 0.32 | $ | 0.32 | ||||||
Indirect | $ | 0.33 | $ | 0.25 | $ | 0.27 | ||||||
By-product credits | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.14 | ) | |||
Treatment, refining and other | $ | 0.29 | $ | 0.28 | $ | 0.31 | ||||||
Copper C1 cash costs | $ | 2.30 | $ | 1.75 | $ | 1.89 | ||||||
(Gain) loss on foreign exchange hedges | $ | (0.02 | ) | $ | (0.16 | ) | $ | (0.05 | ) | |||
Copper C1 cash costs including foreign exchange hedges | $ | 2.28 | $ | 1.59 | $ | 1.84 |
Gold C1 cash cost and gold AISC
The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure.
Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
Cost of production | $ | 7,255 | $ | 7,122 | $ | 6,107 | ||||||
Add (less): | ||||||||||||
Incentive payments | (443 | ) | (386 | ) | (407 | ) | ||||||
Net change in inventory | 264 | 65 | (352 | ) | ||||||||
By-product credits | (189 | ) | (248 | ) | (176 | ) | ||||||
Smelting and refining | 90 | 113 | 76 | |||||||||
Foreign exchange translation and other | 232 | 296 | 176 | |||||||||
C1 cash costs | $ | 7,209 | $ | 6,962 | $ | 5,424 | ||||||
Site general and administrative | 1,353 | 1,492 | 1,232 | |||||||||
Accretion of mine closure and rehabilitation provision | 92 | 111 | 105 | |||||||||
Sustaining capital expenditure | 3,254 | 5,499 | 3,013 | |||||||||
Sustaining lease payments | 2,122 | 1,861 | 1,660 | |||||||||
Royalties and production taxes | 510 | 785 | 338 | |||||||||
AISC | $ | 14,540 | $ | 16,710 | $ | 11,772 |
Costs | ||||||||||||
Mining | $ | 3,820 | $ | 3,430 | $ | 2,567 | ||||||
Processing | 2,259 | 2,315 | 1,905 | |||||||||
Indirect | 1,229 | 1,352 | 1,052 | |||||||||
Production costs | 7,308 | 7,097 | 5,524 | |||||||||
Smelting and refining costs | 90 | 113 | 76 | |||||||||
By-product credits | (189 | ) | (248 | ) | (176 | ) | ||||||
C1 cash costs | $ | 7,209 | $ | 6,962 | $ | 5,424 | ||||||
Site general and administrative | 1,353 | 1,492 | 1,232 | |||||||||
Accretion of mine closure and rehabilitation provision | 92 | 111 | 105 | |||||||||
Sustaining capital expenditure | 3,254 | 5,499 | 3,013 | |||||||||
Sustaining leases | 2,122 | 1,861 | 1,660 | |||||||||
Royalties and production taxes | 510 | 785 | 338 | |||||||||
AISC | $ | 14,540 | $ | 16,710 | $ | 11,772 | ||||||
Costs per ounce | ||||||||||||
Payable gold produced (ounces) | 18,234 | 16,867 | 12,443 | |||||||||
Mining | $ | 209 | $ | 203 | $ | 206 | ||||||
Processing | $ | 124 | $ | 137 | $ | 153 | ||||||
Indirect | $ | 67 | $ | 80 | $ | 85 | ||||||
Smelting and refining | $ | 5 | $ | 7 | $ | 6 | ||||||
By-product credits | $ | (10 | ) | $ | (14 | ) | $ | (14 | ) | |||
Gold C1 cash cost | $ | 395 | $ | 413 | $ | 436 | ||||||
Gold AISC | $ | 797 | $ | 991 | $ | 946 |
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.
Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
Net (Loss) Income | $ | (6,830 | ) | $ | 37,052 | $ | 24,500 | |||||
Adjustments: | ||||||||||||
Finance expense | 4,634 | 5,284 | 6,526 | |||||||||
Finance income | (1,468 | ) | (1,989 | ) | (4,138 | ) | ||||||
Income tax (recovery) expense | (1,853 | ) | 8,415 | 4,666 | ||||||||
Amortization and depreciation | 23,296 | 24,980 | 16,506 | |||||||||
EBITDA | $ | 17,779 | $ | 73,742 | $ | 48,060 | ||||||
Foreign exchange loss (gain) | 18,996 | (24,871 | ) | (8,621 | ) | |||||||
Share based compensation | 6,545 | 477 | 5,017 | |||||||||
Unrealized (gain) loss on copper derivatives | (64 | ) | 955 | — | ||||||||
Adjusted EBITDA | $ | 43,256 | $ | 50,303 | $ | 44,456 |
Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company
The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.
Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
Net (loss) income as reported attributable to the owners of the Company | $ | (7,141 | ) | $ | 36,549 | $ | 24,154 | |||||
Adjustments: | ||||||||||||
Share based compensation | 6,545 | 477 | 5,017 | |||||||||
Unrealized foreign exchange loss (gain) on USD denominated balances in MCSA | 11,257 | (10,308 | ) | (4,753 | ) | |||||||
Unrealized foreign exchange loss (gain) on foreign exchange derivative contracts | 9,304 | (9,852 | ) | (3,152 | ) | |||||||
Unrealized (gain) loss on copper derivative contracts | (64 | ) | 951 | — | ||||||||
Tax effect on the above adjustments | (3,128 | ) | 2,932 | 1,208 | ||||||||
Adjusted net income attributable to owners of the Company | $ | 16,773 | $ | 20,749 | $ | 22,474 | ||||||
Weighted average number of common shares | ||||||||||||
Basic | 102,769,444 | 98,099,791 | 92,294,045 | |||||||||
Diluted | 103,242,437 | 98,482,755 | 93,218,281 | |||||||||
Adjusted EPS | ||||||||||||
Basic | $ | 0.16 | $ | 0.21 | $ | 0.24 | ||||||
Diluted | $ | 0.16 | $ | 0.21 | $ | 0.24 |
Net (Cash) Debt
The following table provides a calculation of net (cash) debt based on amounts presented in the Company's condensed consolidated interim financial statements as at the periods presented.
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
Current portion of loans and borrowings | $ | 16,059 | $ | 20,381 | $ | 9,221 | |||||
Long-term portion of loans and borrowings | 450,743 | 405,852 | 401,595 | ||||||||
Less: | |||||||||||
Cash and cash equivalents | (51,692 | ) | (111,738 | ) | (209,908 | ) | |||||
Short-term investments | — | — | (26,739 | ) | |||||||
Net debt (cash) | $ | 415,110 | $ | 314,495 | $ | 174,169 |
Working Ca pital and Available Liquidity
The following table provides a calculation for these based on amounts presented in the Company's condensed consolidated interim financial statements as at the periods presented.
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
Current assets | $ | 129,960 | $ | 199,487 | $ | 331,241 | |||||
Less: Current liabilities | (158,565 | ) | (173,800 | ) | (112,448 | ) | |||||
Working (deficit) capital | $ | (28,605 | ) | $ | 25,687 | $ | 218,793 | ||||
Cash and cash equivalents | 51,692 | 111,738 | 209,908 | ||||||||
Short-term investments | — | — | 26,739 | ||||||||
Available undrawn revolving credit facilities | 105,000 | 150,000 | 150,000 | ||||||||
Available liquidity | $ | 156,692 | $ | 261,738 | $ | 386,647 |
ABOUT ERO COPPER CORP
Ero is a high-margin, high-growth, low carbon-intensity copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C., Canada. 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 Company's Caraíba Operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança), an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Project, can be found on the Company's website (www.erocopper.com), on SEDAR+ (www.sedarplus.ca), and on EDGAR (www.sec.gov). The Company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol "ERO".
FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, SVP, Corporate Development, Investor Relations & Sustainability
(604) 335-7504
info@erocopper.com
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements include 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. Forward-looking statements may include, but are not limited to, statements with respect to the Company's expected production, operating costs and capital expenditures at the Caraíba Operations, the Tucumã Project and the Xavantina Operations; estimated completion dates for certain milestones, including the commissioning timeline and initial production at the Tucumã Project; a continuation of elevated gold grades at the Xavantina Operations; and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results, actions, events, conditions, performance or achievements to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks discussed in this press release and in the Company's Annual Information Form for the year ended December 31, 2023 ("AIF") under the heading "Risk Factors". The risks discussed in this press release and in the AIF are not exhaustive of the factors that may affect any of the Company's forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results, actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, actions, events, conditions, performance or achievements to differ from those anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company's actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to herein and in the AIF under the heading "Risk Factors".
The Company's forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond the Company's control. In connection with the forward-looking statements contained in this press release and in the AIF, the Company has made certain assumptions about, among other things: 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, gold 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 Caraíba Operations, the Xavantina Operations and the Tucumã Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction 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; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks, 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. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release, these assumptions are 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 statements. The Company cautions that the foregoing list of assumptions is 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 statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.
CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Unless otherwise indicated, all reserve and resource estimates included in this press release and the documents incorporated by reference herein have been prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC"), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, this press release and the documents incorporated by reference herein use the terms "measured resources," "indicated resources" and "inferred resources" as defined in accordance with NI 43-101 and the CIM Standards.
Further to recent amendments, mineral property disclosure requirements in the United States (the "U.S. Rules") are governed by subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") which differ from the CIM Standards. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the "MJDS"), Ero is not required to provide disclosure on its mineral properties under the U.S. Rules and will continue to provide disclosure under NI 43-101 and the CIM Standards. If Ero ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then Ero will be subject to the U.S. Rules, which differ from the requirements of NI 43-101 and the CIM Standards.
Pursuant to the new U.S. Rules, the SEC recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". In addition, the definitions of "proven mineral reserves" and "probable mineral reserves" under the U.S. Rules are now "substantially similar" to the corresponding standards under NI 43-101. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that Ero reports are or will be economically or legally mineable. Further, "inferred mineral resources" have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms under the U.S. Rules are "substantially similar" to the standards under NI 43-101 and CIM Standards, there are differences in the definitions under the U.S. Rules and CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that Ero may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had Ero prepared the reserve or resource estimates under the standards adopted under the U.S. Rules.
Figures accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/513b9f06-c814-4f6b-9950-a06e33b34540
https://www.globenewswire.com/NewsRoom/AttachmentNg/c9d5ede1-7233-4061-b519-42a445637b59
https://www.globenewswire.com/NewsRoom/AttachmentNg/11f4eba4-600f-464b-ab33-9040d376868c
News Provided by GlobeNewswire via QuoteMedia
6 Copper ETFs and ETNs (Updated 2024)
There’s more than one way to invest in copper. In addition to buying shares of copper stocks, investors can gain exposure through copper exchange-traded funds (ETFs) or copper exchange-traded notes (ETNs).
For the uninitiated, ETFs are securities that trade like stocks on an exchange, but track an index, commodity, bonds or a basket of assets like an index fund. In the case of base metal copper, there are various options — an ETF can track specific groups of copper-focused companies, as well as copper futures contracts or even physical copper.
ETNs also track an underlying asset and trade like stocks on an exchange, but they differ from ETFs in some ways. Specifically, ETNs are more like bonds — they are unsecured debt notes issued by an institution, and can be held to maturity or bought and sold at will. The main disadvantage to be aware of is that investors risk total default if an ETN’s underwriter goes bankrupt.
The copper outlook is strong due to structural supply deficits and positive demand fundamentals, and many investors are wondering how to take advantage of this good news in the copper market.
Here the Investing News Network presents five copper ETFs and one copper ETN that may be worth considering. All data was current as of April 23, 2024. Read on to learn more about these vehicles.
1. Global X Copper Miners ETF (ARCA:COPX)
Assets under management (AUM): US$2.12 billion
The Global X Copper Miners ETF tracks the Solactive Global Copper Miners Index, which covers copper exploration companies, developers and producers. The fund has an expense ratio of 0.65 percent.
COPX currently has 37 holdings, of which the top companies include Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF), Lundin Mining (TSX:LUN,OTC Pink:LUNMF) and Southern Copper (NYSE:SCCO).
2. United States Copper Index Fund (ARCA:CPER)
AUM: US$193.37 million
The United States Copper Index Fund aims to give investors exposure to a portfolio of copper futures without using a commodity futures account. It also has an expense ration of 0.65 percent.
The fund tracks the performance of the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR), which is calculated based on certain copper futures contracts selected on a monthly basis.
3. iShares Copper and Metals Mining ETF (NASDAQ:ICOP)
AUM: US$15.03 million
The iShares Copper and Metals Mining ETF tracks the STOXX Global Copper and Metals Mining Index, which is composed of public companies primarily engaged in copper and metal mining. The fund has an expense ratio of 0.47 percent.
More than 31 percent of ICOP's 35 holdings are based in Canada, while nearly 12 percent call Australia home; 11 percent are located in the US. The fund's top holdings include Freeport-McMoRan (NYSE:FCX), Southern Copper, Ivanhoe and major miner BHP (ASX:BHP,NYSE:BHP,LSE:BHP).
4. Sprott Copper Miners ETF (NASDAQ:COPP)
AUM: US$21.3 million
Sprott Asset Management bills its newly launched Copper Miners ETF as "the only pure-play ETF focused on large-, mid- and small-cap copper mining companies that are providing a critical mineral necessary for the clean energy transition." Having come to market in March 2024, this fund has an expense ration of 0.65 percent.
COPP tracks 40 constituents, with more than 33 percent based in Canada, another nearly 33 percent based in the US and about 11 percent based in Chile. The fund's top holdings include Freeport-McMoRan, Antofagasta (LSE:ANTO,OTC Pink:ANFGF) and Southern Copper.
5. Sprott Junior Copper Miners ETF (NASDAQ:COPJ)
AUM: US$8.63 million
Launched in February 2023, the Sprott Junior Copper Miners is a pure-play ETF that, as its name suggests, is focused on small copper miners. It has the largest expense ratio (0.75 percent) of the funds on this list.
Of its 40 holdings, more than 55 percent call Canada home, while another 21 percent are in Australia and 6.5 percent are based out of Peru. COPJ's top three holdings are Taseko Mines (TSX:TKO,NYSEAMERICAN:TGB), Hudbay Minerals (NYSE:HBM) and Compania de Minas Buenaventura (NYSE:BVN).
6. iPath Series B Bloomberg Copper Subindex Total Return ETN (ARCA:JJC)
AUM: US$37.97 million
The iPath Series B Bloomberg Copper Subindex Total Return ETN provides exposure to the Bloomberg Copper Subindex Total Return. According to ETF Database, "For investors seeking exposure to copper beyond physical exposure or through a mining firm, JJC is the only pure play choice available." It has the lowest expense ratio on this list, coming in at 0.45 percent.
Unlike an ETF, an ETN does not own the underlying asset. Instead, an ETN functions in the same way as an uninsured bond. Investopedia states that investors take their profits when they sell the note or it reaches maturity.
This is an updated version of an article originally published by the Investing News Network in 2015.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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