ERO Copper (NYSE: ERO) Update - Oct 27
Posted: Wed Oct 27, 2021 10:48 am
Ero Copper has a live webinar today at 3PM CT. If you want to attend, send me an email ASAP: dmsteffens@comcast.net
Ero Copper is a recent addition to our Small-Cap Growth Portfolio. I am very bullish on copper.
Ero Copper Corp. (NYSE: ERO, TSX: ERO) is a base metals mining company with organic production growth via its 99.6% interest in Mineração Caraíba S.A. (“MCSA”), a long-established Brazilian copper mining company with over 40 years of operating history in the Curaçá Valley. MCSA’s primary assets are the fully integrated mining and processing operations of the MCSA Mining Complex, located in northeastern Bahia, Brazil. Ero’s strategy is centered upon aggressively increasing the high-grade mineral reserves, extending mine life and maximizing mill throughput, leveraging the excess capacity of the installed infrastructure. In addition, MCSA owns 100% of the “turn key” Boa Esperana development project, an IOCG-type copper deposit located in southern Pará State, Brazil.
MCSA MINING COMPLEX
• Flagship high-grade, low-cost operation generating strong cash flows
• 42-50 kt Cu production at first quartile C1 cash costs of $0.97/lb < This is KEY to my valuation. Copper trading for $4.38/lb this morning.
• Track record of mine life extensions and operational improvements
• Highly prospective land package with 24+ drill rigs operating
• ~1.3 Mtpa of excess mill capacity (~25%)
BOA ESPERANÇA PROJECT
• Low capital-intensity, high-return, construction-ready copper project
• ~35 kt of average annual Cu production in the first 5 years
• Opportunities to further enhance project value by potentially converting material classified as waste into mineralization through exploration of the Gap Zone
NX GOLD MINE
• Amongst Brazil’s highest grade, lowest cost gold mines
• 36-46 koz Au production at $505/oz C1 cash costs and $720/oz AISC costs
• ~130 ktpa of excess mill capacity (~40%)
• Robust exploration program with 9+ drill rigs operating
Ero Copper is a recent addition to our Small-Cap Growth Portfolio. I am very bullish on copper.
Ero Copper Corp. (NYSE: ERO, TSX: ERO) is a base metals mining company with organic production growth via its 99.6% interest in Mineração Caraíba S.A. (“MCSA”), a long-established Brazilian copper mining company with over 40 years of operating history in the Curaçá Valley. MCSA’s primary assets are the fully integrated mining and processing operations of the MCSA Mining Complex, located in northeastern Bahia, Brazil. Ero’s strategy is centered upon aggressively increasing the high-grade mineral reserves, extending mine life and maximizing mill throughput, leveraging the excess capacity of the installed infrastructure. In addition, MCSA owns 100% of the “turn key” Boa Esperana development project, an IOCG-type copper deposit located in southern Pará State, Brazil.
MCSA MINING COMPLEX
• Flagship high-grade, low-cost operation generating strong cash flows
• 42-50 kt Cu production at first quartile C1 cash costs of $0.97/lb < This is KEY to my valuation. Copper trading for $4.38/lb this morning.
• Track record of mine life extensions and operational improvements
• Highly prospective land package with 24+ drill rigs operating
• ~1.3 Mtpa of excess mill capacity (~25%)
BOA ESPERANÇA PROJECT
• Low capital-intensity, high-return, construction-ready copper project
• ~35 kt of average annual Cu production in the first 5 years
• Opportunities to further enhance project value by potentially converting material classified as waste into mineralization through exploration of the Gap Zone
NX GOLD MINE
• Amongst Brazil’s highest grade, lowest cost gold mines
• 36-46 koz Au production at $505/oz C1 cash costs and $720/oz AISC costs
• ~130 ktpa of excess mill capacity (~40%)
• Robust exploration program with 9+ drill rigs operating