Benzinga | Jan 11, 2022 07:23AM EST

Ero Copper Announces 2021 Production Guidance Beat And Provides 5-Year Outlook

2022 Production, Cost and Capital Expenditure Guidance

* 2022 MCSA Mining Complex production guidance of 43,000 to 46,000 tonnes of copper in concentrate at a C1 cash cost guidance range of $1.05 to $1.15 per pound of copper produced;

* 2022 NX Gold Mine production guidance of 39,000 to 42,000 ounces of gold at C1 cash cost and all-in sustaining ("AISC") guidance ranges of $500 to $600 and $925 to $1,025 per ounce of gold produced, respectively; and,

* Capital expenditures expected to total $330 to $375 million in 2022, including $39 to $46 million in consolidated exploration spend and $70 to $80 million towards the construction of the Boa Esperan?a Project expected to commence in Q2 2022, subject to approval by the Board of Directors of the Company. Also reflected in the 2022 capital expenditure guidance: Ongoing construction of the larger external shaft and completion of the Phase 2 cooling project as part of Pilar Mine 3.0; and, Commencement of the Cara?ba Mill expansion to 4.2 million tonnes per annum in preparation for expanded operations at the MCSA Mining Complex.

5-Year Operating Outlook

* Copper production is forecast to more than double1 compared to the Company's 2021 results to a range of 92,000 to 102,000 tonnes of copper in concentrate in 2025, assuming contributions from the Boa Esperan?a Mine2;

* Copper C1 cash costs are expected to average approximately $1.051 per pound of copper produced on forecasted production totaling approximately 350,0001 tonnes from 2022 to 2026;

* Annual gold production is forecast to increase to a range of 55,000 to 60,000 ounces by 2024, an increase of over 50%1 compared to 2021 results;

* Gold C1 cash costs and AISC are expected to average approximately $5151 and $6751, respectively, per ounce of gold produced with production totaling approximately 265,0001 ounces from 2022 through 2026; and,

* Key capital projects aimed at doubling copper production, positioning the MCSA Mining Complex for expanded operations, and achieving higher sustained gold production at the NX Gold Mine include: Approximately $300 million for the construction of the Boa Esperan?a Project2; Approximately $250 million for the construction of Pilar 3.0 including the larger external shaft, associated infrastructure, ventilation, cooling and equipment plus an estimated $35 million for ancillary capital costs including contingency and third-party construction management costs; Approximately $30 million to support expanded operations at the MCSA Mining Complex, including the expansion of mill capacity for the Cara?ba Mill to 4.2 million tonnes per annum and long-term tailings storage capacity improvements to support the increased throughput and longer mine life; and, Approximately $10 million to support higher sustained gold production of approximately 60,000 ounces at the NX Gold Mine as part of the Company's "NX 60" initiative.