Ero Copper Corp. Q3 2026 Earnings Recap

Arrow Copper rose 5.7% after earnings, with investors responding to record cash generation and a sharply lower net-debt leverage ratio. Copper production remains on track for full-year guidance, though higher costs and below-expectation mine performance at Xavantina temper the operating picture.

Key Takeaways

• Q3 operating cash flow was approximately $191 million and adjusted EBITDA exceeded $200 million, both up nearly 40% quarter over quarter.
• Net debt fell approximately $100 million in Q3; net-debt leverage was 0.5x, down from 2.6x at the start of 2025.
• Copper production was 18.3 thousand tonnes at consolidated C1 cash costs just over $2.50/lb. The company remains on track for full-year production guidance, but raised C1 cost guidance to reflect inflation and a stronger Brazilian real.
• Xavantina’s mine performance was below expectations, with production just short of 8 thousand ounces. Higher output from historic concentrates helped lift total gold produced and recovered 23% sequentially to approximately 25 thousand ounces; the company expects 75–80 thousand ounces from Xavantina for the year.
• Arrow completed its 45,000-meter Phase III Furnas drill program more than two years ahead of schedule and expects to publish a pre-feasibility study in 2027.