News Summary
The most recent news release dated December 19, 2025, confirms the filing of a National Instrument 43-101 Technical Report for the Xavantina Operations. This report supports the updated mineral reserve and resource estimate previously announced on November 4, 2025. This is a routine regulatory filing following a material update to the company’s resource base and does not contain new operational or financial data beyond what was previously disclosed.
Material Impact
The December 19 filing itself is non-material as it is a standard compliance requirement. However, the contents of the report it supports are highly significant. The report formalizes the “Value-Creation Initiative” at Xavantina, which identifies a maiden inferred mineral resource for gold concentrates stockpiled over the last decade.
– High-Grade Stockpile: 24,000 tonnes of concentrate grading 37.4 g/pt gold (containing ~29,000 ounces).
– Immediate Cash Flow: Shipping commenced in late Q4 2025 with an initial invoice of ~$10 million already processed.
– Low-Cost Production: Operating costs for this gold are estimated at only $300 – $500 per ounce, providing a massive margin at current spot prices.
– Deleveraging: This windfall is specifically earmarked to accelerate the repayment of the company’s debt.
Catalysts
– Tucumã Ramp-Up: Management noted the filtration circuit is reaching “terminal velocity.” Watch for the commissioning of the mobile filter press and potential investments in additional filtration capacity to reach 100% design throughput by H2 2026.
– Furnas PEA: Results of the Preliminary Economic Assessment for the Furnas Copper-Gold Project are expected in H1 2026. This project is described as a potential “step-change” for the company.
– Xavantina Expansion: Following the achievement of 1 million ounces of total resources (M&I + Inferred), look for results from studies aimed at increasing annual production.
– Debt Reduction: Monitor the net debt leverage ratio, which management expects to drop significantly below the current 1.9x in the coming quarters.
Materiality Conclusion
While the latest news is a Routine – Neutral filing, the underlying operational momentum is Material – Positive. Ero Copper has successfully pivoted from a construction-heavy phase (Tucumã) to a production-growth and deleveraging phase. The surprise discovery and commercialization of the gold concentrate stockpile at Xavantina provides a unique, high-margin buffer for the balance sheet during the final stages of the Tucumã ramp-up.
