Ero Announces Inaugural PEA for Furnas, Outlines Low Capital Intensity Project with a 24-Year Initial Mine Life
Executive Summary
- Ero Copper released a PEA for the Furnas Copper‑Gold Project showing an after‑tax NPV (8%) of $2.0 bn and a 27% IRR at base metal prices, rising to $4.7 bn NPV and ~44% IRR at higher copper/gold assumptions.
- The study projects a 24‑year mine life with average annual production of ≈108 kt Cu‑eq (≈70 kt Cu, 111 koz Au, 532 koz Ag) and LOM capital expenditures of ~$1.3 bn ($16,000 per Cu‑eq tonne).
- The project is being advanced under a 60% earn‑in agreement with Vale Base Metals; Ero will fund exploration, engineering and permitting work to achieve the earn‑in milestones.
Key Details
- Project Scope & Life
- 24‑year initial mine life (open pit + underground) with potential extensions.
- LOM production: >1.2 Mt Cu, ~2.0 M oz Au, ~9.0 M oz Ag.
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Average annual copper‑equivalent output: 108 kt (70 kt Cu, 111 koz Au, 532 koz Ag).
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Economic Highlights
- After‑tax NPV (8%) @ base prices: $2.0 bn; IRR: 27%.
- At $6.10/lb Cu & $5,550/oz Au: NPV rises to $4.7 bn; IRR ≈44%.
- LOM C1 cash cost: $0.30/lb Cu (after by‑product credits).
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Payback period: ~3.1 years.
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Capital Expenditures
- Initial capex: $1,280 M (underground mines $179 M, open pit $132 M, processing plant $410 M, infrastructure $139 M, tailings $48 M, others).
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Phased expansion capex: $287 M (additional underground, open pit, processing indirect costs).
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Operating Cost Summary
- First‑15‑year operating cost: $559 M; LOM total: $837 M.
- Major cost components: underground mining ($2.66 bn first 15 yr), processing ($1.54 bn), tailings management, transportation.
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By‑product credits: Gold – $5.09 bn (first 15 yr); Silver – $0.29 bn.
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Resource Estimate
- Updated NI 43‑101 resource (100% owned):
- Indicated: 275.6 Mt @ 0.59% Cu, 0.31 g/t Au, 1.66 g/t Ag.
- Inferred: 195.9 Mt @ 0.52% Cu, 0.31 g/t Au, 1.34 g/t Ag.
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Total indicated copper ≈1.61 Mt; gold ≈2.77 M oz; silver ≈14.7 M oz.
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Exploration & Development
- Completed ~90 k m historic drilling + 28 k m Phase‑1 (to July 2025).
- Phase‑2 (≈17 k m) finished Q4 2025; Phase‑3 (~50 k m) planned for 2026.
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Ongoing work to upgrade inferred resources, extend strike length, and evaluate magnetite by‑product circuit & gravity pre‑concentration.
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Earn‑In Agreement
- Ero may earn a 60% interest by completing prescribed drilling, PEA, pre‑feasibility, and definitive feasibility studies within five years of the July 2024 definitive agreement.
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Vale Base Metals retains 40% and receives up to an 11% free carry on future construction capex.
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Infrastructure
- Project located ~50 km from VBM’s Salobo operations; close to paved roads, power substation, cement plant, and rail load‑out facility.
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Proximity to Parauapebas (≈250 k population) reduces need for new greenfield infrastructure.
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Qualified Person
- Mr. Cid Gonçalves Monteiro Filho, SME RM, reviewed and approved technical information per NI 43‑101; full technical report to be filed on SEDAR+ and EDGAR within 45 days.
Notable Quotes
“The results of the PEA on Furnas… reinforce what an exceptional asset it is,” – Makko DeFilippo, President & CEO.
All forward‑looking statements are subject to risks and uncertainties detailed in the release.