Ero Copper Reports Second Quarter 2026 Operating and Financial Results
Consolidated C1 copper costs miss targets again while gold cost guidance is raised despite strong cash flow performance.
Ero Copper Corp. reported second-quarter 2026 consolidated copper production of 17,315 tonnes. The company’s C1 cash cost came in at $2.42 per pound, marking the second consecutive quarter above the 2026 guided range of $2.15–$2.35 per pound. Gold production surged 170% quarter-over-quarter to 20,553 ounces, a figure that included 11,860 ounces of historic concentrate recovery, with gold sales totaling 17,016 ounces.
Financial results for the quarter included revenue of USD 284.3 million and cash flow from operations of USD 137.9 million, representing a 49% increase quarter-over-quarter. Adjusted EBITDA reached USD 144.0 million. Net income attributable to owners was USD 89.5 million, translating to a diluted EPS of $0.85. The company’s net debt decreased by USD 38 million quarter-over-quarter to USD 452.7 million, resulting in a net debt leverage ratio of 0.8x.
Despite the two consecutive quarters of C1 costs exceeding the top end of the guidance range, Ero Copper maintained its 2026 copper production guidance at 67,500–77,500 tonnes and its copper C1 cost guidance at $2.15–$2.35 per pound. Gold production guidance for 2026 remained at 40,000–50,000 ounces, with the company expecting to hit the low end of that range. However, gold C1 cash cost guidance was revised higher to $1,100–$1,350 per ounce, up from $1,000–$1,250 per ounce, and AISC guidance was raised to $2,200–$2,700 per ounce, up from $2,000–$2,500 per ounce.
Capital expenditure guidance for 2026 was increased to USD 285–330 million, up from USD 275–320 million, to account for a new Xavantina powerline. Following the quarter, Ero Copper repaid USD 25.0 million of its senior revolving credit facility. The company recorded FX hedge gains of USD 12.7 million in Q2, with expected full-year gains projected between USD 40–45 million.
Ero Copper Corp. (ERO) reported consolidated copper C1 cash costs that exceeded the upper bound of guidance for the second consecutive quarter, while gold cost guidance was raised across the board. These figures represent concrete negative deviations from the company’s own targets.
Although cash generation remained robust and leverage improved, the market’s reaction to the prior Q1 print—when C1 copper cost was also above guidance—was initially positive before fading. The persistent inability to contain copper unit costs, combined with the increase in gold costs, introduces uncertainty regarding earnings quality and the credibility of 2026 guidance.
Ero Copper Corp. (ERO) is a Brazil-focused producer of copper and gold. Its operating assets include the Caraíba Operations for copper, the Tucumã Operation for copper which commenced commercial production in mid-2025, and the Xavantina Operations for gold. The company also holds a growth project at Furnas Copper-Gold, with an earn-in right to 60% alongside Vale Base Metals.
For 2026, Ero Copper has provided production guidance of 67,500 to 77,500 tonnes of copper and 40,000 to 50,000 ounces of gold from Xavantina, with a stated focus on cost management. The company currently has a market capitalization of approximately USD 4.26 billion, net debt of $453 million, and an enterprise value of roughly $4.7 billion.