ERO - Earnings call transcript Q2 2022

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Ero Copper Second Quarter 2022 Financial and Operating Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Executive turn for Chairman would to conference opening I Dunn, Noel of Instructions] like the to over remarks. [Operator Ero Copper ahead. go Please

Christopher Noel Dunn

Thank for on XX, our announcing as news ended are operating you, June statements everyone. XXXX. months website, financial second and and financial MD&A months and available quarter XXXX three and release is results our morning, the good Ero's The six

businesses, and operations statements forward-looking financial As usual, uncertainties this that Company. considering involve be the the we of on risks and call performance making will

We on U.S. will performance. future risk their EDGAR, dollars. discussion refer AIF you and to our in on the our for Unless most recent otherwise of factors available business impacts and of noted, our website, all SEDAR potential are a amounts

on and Ero's today Courtney Officer; Relations. me Chief the Executive Chief Wayne Development Strang, and Financial DeFilippo, Officer; and Corporate Investor David Makko President, are Co-Founder President; Lynn, Vice Drier, call Joining

to our results rebranding referred our referring our Before as want and will quarter a our of discussing the Mine listeners our have NX announced to operations second outlook renamed and operations forward Ero business, last our we be referred we’ll project. going Caraiba Toucama Complex remind portfolio will I that MCSA Gold the be as and now project Boa operations; as Esperança Javentina be quarter to and of Mining the to

by One, thus adherence four Our team’s strategic second we is elements. capital initiatives, our summarized of still my our budget main early growth be from to phases in on noteworthy. execution quarter can perspective are while far the our

had metrics secured efficiencies date deepening quarter. water planned expenditures contingency and approximately high asset assets. remain estimates representing We Toucama projects and record on the well XX% growth track operational other performance of development for our line among rates, new We the moderating revenue explosives. for across the respectively. for key within allocations set items more input marks such to introduced discuss line projects which Our international our Three, accounts production, costs the are our steel during and capital XX% and signs and four, higher reflect to and concentrate we of channels early proportion And to detail in consumables, that in key noise diesel, across sales concentrate top call. receivable, changes we're will a seeing as this sales in

balance Looking Ero's execution, of time and to David this purpose is looks operational on it horizon business, bright the strong provide but like and sheet. when our senior confident The our had incredibly will strong Wayne moderating, execution our half rapid strategy issuance cover that year. an and call of of that in our quarter copper a incredibly worth was now second our over over at key retrospect financial what weakening in not execute pass projects on offering the insulate copper. also on an debt on at costs, kind launched performance, of we the the mind to prices on the for projects timely progressing second growth with year, occurred of will who to track growth overview of to the I exactly operating are in notes is early we With in budget, only looks then performance. the the operating plans bond a costs consumable challenges noting our highly insulate competitive signs we second of early strength a are of ability for the offering back to February, beginning the during the quarter in

immediately be available will following our always, the As for team questions call.

David Strang

Thank Noel. you,

on Ero and details in will into get family's his thought passing sadly the pass leadership Lukas the industry like of and for I'd our be a Lundin Titan Lundin along leader quarterly family was results, the to zeal Mr. and life Lundin. the the of I condolences Before to missed.

of X.XX% following Our Caraíba record processed results a in XX,XXX XXX,XXX XX% first of Operations higher challenging average record in production second over copper production Honeypot after the the copper grade Mining within mining copper were continue from X.X%. of during started to support and quarterly strong tons Pilar the of project our quarter. of tons of during quarter, we third the quarter. quarter driven and full XX.X%. At increase continuation the gold copper over remainder guidance trend highlighted tons which of upper metallurgical the is above first area The by of processed. in we production the copper by copper through expected this continued copper, ore grade Mine, an a the recoveries of resulting to stope With year over contributions of quarter-on-quarter year quarter, was level grades grades

grades dollar. anticipate be to first the tons half compared in of We production more than concentrate in At ounces, tons in increase second challenges and higher higher lower gold as the of between first of by our over gold year to of well which guidance increased our Operations end production gold weighted in processed expected as a we production driven achieved operating our full production to the smelter, half domestic the as high offset copper As of of modestly production changes costs production to to year year. higher result, XX,XXX we U.S. XX,XXX primary second a approximately operating at of the during halves. production higher the processed gold Xavantina be relative with grades expected representing record during strength of quarter, BRL XX%. to sales copper to XX,XXX equally with the resulted roughly quarter, guide the tons unit and to to copper still continue to a By production similar affected our due channels jump the the levels by the were quarter-on-quarter

need to concentrate the channel despite important our BRL our our sales think ranges. terms within note to costs still that I operating were budgeted allocation, change in context, For it's

during per cost our average per of exchange at we pound at set of ounce full the the have costs that produced. were was our were per Operations the would of rate. guidance, If the quarter using which guidance been high second rate $XXX of BRL the However, performance copper copper gold. at and X.X the for $X a cash XX per gold X.X end quarter exchange CX had in and produced versus the $X.XX pound the range X.XX rate been exchange Xavantina our the At range, our cash quarter or was Operations assumed our Caraíba of average CX guided cost year ounce for approximately $XXX

range CX per are full export BRL $X.XX CX line to of will spent cost been increased and revised gold favorable in expectations from Operations been year, has the originally costs the the produce the original $XXX second gold currently Caraíba than guidance of we of At our Since of to to at through ounce weakened $X.XX sustaining balance $XXX ounce all-in observed cost In gold gold Xavantina pound exchange expenses copper $XXX $XXX of of addition sustaining second reflected copper And while cost of all-in in rate quarter. our to Operations copper at sales with costs At per allocations, combined continue ounce has certain to half as budgeted, consumables a And first $X.XX of $XXXX unit and to been guidance guidance Operations our has to of the ounce capital the year end range. operating $X,XXX widened $XXXX towards to the per produced well higher $XXX our guidance $X.XX sales moderate, to of year, produced. has cost produced sustaining X.X guidance. the $X,XXX we produced as to is increased be have influence from guide BRL weighted concentrate to the gold per raising pricing per less our produced. local during of from produced. level pound quarter, per a the of ounce our the the per of Xavantina of

X% mill main job has ball the of recent Tucumã XX% costs successful of and long budget. Project, remaining eliminating for never our sourcing planned final relates our in were another the on of the efforts Tucumã date a and purchase reducing stages for in One used and lead it team growth significantly example noteworthy our our and under time projects, with To a to contract risk. these pre-owned spend done relevant Project is As negotiation. capital of delivery

made we related the to within contract with the shaft to third of capital well shaft is Importantly, of in job spend significant a below feasibility this new XX% our finalized has impact remarkable The capital the now stage. mitigating of and under and the is sinking At done estimates is our expected shaft quarter. inflation. currently Again, on our XX% contract capital estimates, XX% another contract Caraíba our of during with within under our planned be capital Operations, of the this X% sinking contingencies team planned line expenditures. at contract progress XX% planned external spend study

Project. construction to highlight the sustainability developing In activities, the environmental our currently to we want construction ongoing mitigate to addition at our activities, of strategy are Tucumã I our impact particularly

and efforts share we million published to as excellent it happy review $X efforts our report conducted to far, you report the So we last earmarked not that in if to more hope a throughout and XXXX week would these to capital organization. important so, you had I showcases sustainability towards do chance this sustainability these I work document, being the encourage have later have am also year. of our and

be We to to completed On in mineral excited Wayne we at for call dip new project and review at this to our the of advancing mineral financial in our exploration copper to forward for and define Pilar look efforts Honeypot be the second to We're and on in exploration regional Further, both project the year. in and estimate the defining more have to our color on to front, nickel team the results. updating of order and I the we portion turn market is particularly is drilling our our hope that, well update quarter confirm now end Vermelhos, deposit. continued will With towards extensions, reserves program by X working now down the resource to the the over the defined. Eastern the zone campaign months mine exploration be evaluating provide ahead. able for progress to the the

Wayne Drier

morning and Thank you, David good everyone.

quarter the strong results costs, representing noted, and million operating influence sales Revenues channels concentrate to second or were changes of top quarter-on-quarter and million performance David including unit $XXX.X quarter As working approximately increase $X reflect capital. headwinds, our for operating at revenue, both external X%. line a

previously As customers line our of high revenues mentioned, sales this an a reduction period. noise of introduced resulting in by international on to revenue million includes the $XX during allocation to unplanned

remainder of unit higher We correspondingly with associated proportion credits expect export sales the tax operating costs of additional the elevated export with to sales. of loss relative logistics domestic the year remain and to costs for concentrate the due

the and approximately the per BRL $X.XX of approximately first dollar weakening $X.X the dollar at the U.S. teams for of approximately end In of during were million in impact in $XX.X Prudent cash of related end these to million influences affected increase losses changes have our contracts, payment terms. will derivative of year. to by addition second to by $XX million X.XX the to period to during of the the foreign quarter undertaken capital quarter, the allocations, accounts exchange an flows loss deferrals which management first BRL been on of these would unrealized not second cash longer U.S. to an operating over reported for per respect million. from operating That during in receivable million the the key we saw With This over quarter quarter the realized revenue, we million projects. quarter, dollars. $XX resulted $X due our Absent the $XX capital flow

we balance strongest the has summary, remains well the is As this very insulated second outset been ever have year Noel of mentioned strategy call, at In sheet strong our a commodity the from planned. of price and half it our volatility.

quarters are and feasibility moderation line early are of signs progressing and track study several of capital final the in back share that, projects we hand estimates see consumable increases. remain With call date, Our with I'll to starting comments. to cost to to Noel steady following some on

Christopher Noel Dunn

Thank call everyone you, joined Wayne and the today. who

in colleagues will to Q&A, back for I'd the Before to call thank for performance Brazil and on and we line I our recognize strategy the progress call the like growth quarter. to now questions. turn open to during significant the up our open the the operating fantastic made operator

Operator

question of comes Dalton Thank ahead. you. first [Operator go Baretto from Instructions] Our Canaccord. Please

Dalton Baretto

Thanks, Can good morning were asking provisionally priced by you about this how at us want provisional tell I pricing and start guys. to price? what pounds many noise.

Christopher Noel Dunn

the -- at provisionally of $X.XX. that had quarter, metal tons provision that end Dalton So of we were that priced and at X,XXX was the

Dalton Baretto

on And keep guys seeing it's okay. think out of Are you going going forward go then, I it, the the basis? a the Got this said over to year. you're quotational period course you hedge

David Strang

Dalton incorrect. that's So

We over year. will of this the not the seeing be part remaining

a, in the terms about some word provisional talking what's some you're pricing us If want throws to use, of into issues. I that metric

concentrate company how to regards operates Let's in sales. talk terms of its with philosophically this

a a to them two basis, we in and making export to are an one, way tenders our are do multiple be do we material do tender somewhat month by due able other our would provide material sales we sales, respect management's to dictates from way love open. to regards you that able weekly methodologies. basis a We're a operate to with put and need as material basis. we with internationally. always are we to to sure on quality that of customers terms attempt material and sell is have the perspective to in sell to that With Number able domestic every on able sell to channels out type order to spot customer, we basis prudence high sell to but our all material in domestically, our we of our concentrate, where that of in on we on that general, material know. selling the It unique a all to Firstly,

Goldilocks copper, that come within of tender on concentrate it the market. terms deleterious When concentrate that signed no the basis. that, world grades a of are we and concentrate XX% XX% mechanisms have making individual there elements our somewhat between our We various also and do we within contracts in play

Some into buyer's perspective. of pricing have the them built from those mechanisms

issues the look-back will have see various very during into of quarter-by-quarter in is that who are traveling, pricing does our long-term to last termed depending to over which basis is and unique pricing peers seen have them do sell require mechanisms, material you we two that's has customer years, review in and to hedging made, of customer over into are financials, have quarter at in short-term they on takes public our metal pricing ran what the as has their consideration travel. material can take related some somewhat available lot and and a been under highlighted, secure Brazil. you go of how you back Some by Number contract allowing operational or depending have saw time on adjustments publicly will price terms one, us happened as compared what a the hedging this unprecedented. We What looking been doing, price the that, issues, as if us for five terms it emerge. the that company not. data we participation domestic adjustments time to that on significant has our to what our a of And you price during through is

second by the unprecedented in unprecedented surprise. is deviation a thing time in saw or metal period we and a think X.X standard I where copper price, we movement prices is caught the an has somewhat everybody in believe over industry The which move saw

be we how with respect contract. as with remaining five we operate. sell would as we that how with their will That's close we at to do international contracts what competitiveness to to over as such, we always a bases nature competitive respect part year. can spot the looking have to of the will done move philosophically have forward on part customers to upon to we to most with remaining look frankly, in selling those we respect more their price of to We based the people a as more the be different sales of our that the term and to last material regards the we customers. us we do we So of continuing to interest to as number a That's year, competitive basis And tender lot wanting concentrate. how our -- and of can are years the And tender possible. of

to are we with quite respect so comfortable it forward. how And goes

you can had and pricing the years happened previous see occurred. time. have we how said, occurring I quarter in a the be things the to significant where As at just quarters, coincident previous adjustments two one through one go that This same

As I take this same said, were was to the had our we price. that us to at doing internationally the them being very to able time that, not in domestic and that material customer, material that movement move required allocated metal significant we

Dalton Baretto

ask mean which sorry, within tracking That's Thank this tracking something David. have factoring you're it's clear. and X% under budget, I that yes, data, the Great, Tucuma, why overall, contingency about you historical That's and won't you you by very Boa On above is Does the which said? said that. in Can switch -- budget? actually And well I is the surprise. that for copy CapEx the do contingency.

David Strang

Correct.

the against even make signing to being sure and that one lines are we those contracts, the Board, of and to are study individual talking estimate internally, have So particular -- feasibility contracts that measured an contract. individual you with interesting -- our it's respect to

to as know, of are they well amalgamating what doing have we top where with respect individual to so is for and providing you you and amalgamated have contingency, overall we we are budget those so project. estimate each contingency and on that, -- on the guidance as these the those. to other have against you And Then contracts we

clarify you contracts on the you contingency for within the of the but are project. capital asked, the being overall still And is exactly budget what so exactly to to we tell over X% and date, signed that

Dalton Baretto

maybe committed just think signed, XX% be then post the budget. X.X, And contract shaft great. I That's being Pilar you you'd said on sinking and on

then under the circumstances So on I budget any that are same and can question there guess contingency before change? which

David Strang

We to budget respect on the with contingency. are

as through two labor move contracts we the the rates through that all move and peers that and control, Tucuma pricing, time and diesel is control. periods project not pricing. we our we not any consumable project, do be other As do some over Those will have variables potentially of unlike other

study, rates know, these look numbers, we project, a the a to our I what those numbers when like conservative labor in So increasing cannot But we're now. numbers feasibility project, project particularly to on tended of the that approach had you feel deepening contracts, a as around you are take diesel in which the tell two we years. with terms estimates, But to X-year regards particularly comfortable X.X in at world. with we labor. on is We those will be and the conservative have

related be labor with So projects. both to rates, there prices for is some to and there diesel variations variation respect will

Dalton Baretto

you that Is the you you there. an great. potentially update no On update will exploration, leave longer in tentatively or I schedule maybe think And would and thought schedule last I'll I provide September. said ahead. plan? the X it then Okay, that for an months X quick

David Strang

been Curaca to with we always out schedule new include -- new Honeypot to a with technical guidance regards ideally, We No. guidance influence that Valley, regards and Honeypot on we been have report September. would the our said production -- and guidance. with The November X-year guidance coming the future is on of technical giving never that

sooner have So respect make the be any to if continue result are in the material. move with as is that market mindful it with we to discoveries Valley may in that we could certainly we to respect forward, targeting obviously, us notifying November a to But we Curaca update that.

market Mike now the continue, in great As I projects, of said seeing but are frame. There's team well. situation an of from and things our them are any, projects we talk the sooner are the than may standpoint, we exploration regional and the that in no in point, to the time and really my at that, the notes, we evaluating advancing out field, November side work doing guarantees what if on advancing

Dalton Baretto

David, from me. Thanks all that’s

Operator

Capital Our Markets. next question ahead. Please comes from Jackie Przybylowski BMO go of

Jackie Przybylowski

for Dalton of call. much very you, Thank most questions. and this a my Congrats already quarter. good covered on thanks

I I qualitatively expected. cost know influences ask, on more the just that? of a of I'll of that have changed or fuel a is bit breakdown the on you're on guidance is I mentioned first was all, internationally. impact you guess some you lingering color, which give just any totally color So maybe experiencing operating when -- costs versus Do inflation, of you costs. How even your shipping versus us of little COVID much that? you Can kind

David Strang

everybody two got answer. oil let in industry, prices detail, oil-related went qualitatively we increases we've -- the saw some talk significant in granular first to increases significant peers products more obviously, level. We've going particularly saw will And high on quarter, Makko in like related our you give as extremely talk like the of us to but the inflation I'm me will our world. did around high. cost

are those to oil We see continue now we mitigating prices seeing as decline.

about a nine-month lag come with We and are products, seeing to generally also seeing that's around been regards in that mitigation steel through.

right first right we been at increase our you with to year, But we in related costs. versus of year. we real was to towards in borne has the and more What we year are unfortunate are I the the can seeing of right Obviously, the the stated, that sales. where kicks our of and rest export terms change don't our of guided the at budget. costs move cost regards when for an costs the our we been Obviously, that has in now, And So mitigation we as that inflation. market end costs, at into look by operating what significant And see in itself, now. half now second changed the quarter end out and in consideration would half that be if has of moved us first the our the with we and they into domestic we did smelter, doing take as to -- circumstances see higher end. has higher of inflation the

sales. at look guys we to know, domestic versus selling sales of export actually because international than linear better included seen as you Paranapanema are the there. versus export That that the be on do we past sales is the not relative get depending As Smelter would sales, in competitiveness see we costs benefits to the some our in internationally, we tax advantages because conditions tax CX including our that market sales Paranapanema of have

where be majority half material those our process -- what get go sales that I as to because on be tightening the TC/RCs discount half the concentrates, material a of tell international will to why the versus we argue range the taken that we do that the our we obviously of market of well. For Certainly, as in a the sales change range impact prevailing we broader a for second that year various a year, the be everybody limiting international of the pricing will sales domestic view is that's will But into we've on you our and would are ourselves seeing -- as half depending be our that we is through have second because like tender in the because increased our tax could moving. the China also year half we've greater market benefits. TC/RCs exporting the obviously on second be change domestic to but market. else, that prudent not could depending market we Paranapanema to smelter for of situation recover taken there second the the a certain. of on can't year, the the see our of we we economically, continue of fluid That could is can the of we the world of uncertain spot of We with

do prudent add? be just Makko, the year we've range, half and there advantages the to in those we second get taken tax So gone from know Paranapanema. wider that we will a anything but not of

Makko DeFilippo

I think a that's good No, really Jackie. overview, Yes.

going which -- positive of out our the a traditional structure, dive balls line rate And any like our both that seen increase, used steel ball for focus that XX% X key to flattening those we I the in into XX% business. overall going leading looking the the think rock as or cement, is is bolt some other Dave on of well month-on-month is And suppression. the we've CMC, Within cost main in so for not cost us transportation at inputs XX% that of to on by said components mill, to cost of of be I which levels. including more products XX% is that, emulsion, as on line such from note I items we've of are the in moderation expecting of qualitatively, we're would declines think basket items second significant effectively kind for as Caraiba, kind at and guidance that are that half. more of represent port these structure. put just our our additionally top what for our our diesel, what ranges Obviously, primary the specifics across of represented bit Just indicators variable allocation, cost of regions, screens [indiscernible] sale. for are inputs business approximately in our of being

of So sort you we've year. looking to our sign which look that second half to last month-on-month positive the to I months. as from is at declines XX% with, decreases, month-on-month to guidance anywhere seen Again, represents of early flat for the changes to nine think XX% for a just XX% potential the positive XX% plus relative the

Jackie Przybylowski

it well. in Honeypot, was you've is thank could up test helpful, wondering If there. test like your not if the any that super that going anything far mined been I Project or had sounds surprises really expected MD&A ask so from that's just That's been you. I question, you've from you that the comments the another seen mining

David Strang

test In mining? the

Jackie Przybylowski

Yes.

David Strang

hasn't The that. is No, there surprises. team with overly still learning been

stope, bodes team got have so some of we got as that get appears similar the adjacent like a more we relates year. of cetera. stopes They're well. I in basis, the in would of out mining as to but style, in terms was to copper we think it these going be I stope previously But bit this comfortable of mining from pace their that stope, mining anything, three team and stopes that's all and to mined it an more saw the we've terms than overall get have of our get in we're shape, we terms the that the little said, helping of than areas historic as will dilution material more on mine next if other comfortable anticipated seen stope. et probably adjacent, that of in But

forward be starting is going known which respect the Honeypot with is the years to stopes ideally we a to that as X. X, Honeypot mining time regards are at with and the next couple of But last This in time. think these remember, to work already the move bigger hope in are I year's to be X, project by going get that to great that update. there, we was position team So only in really ready we Honeypot with

Jackie Przybylowski

on on Thanks, really impressive a control, that’s helpful again and congrats and congrats. quarter great cost

David Strang

Jackie. Thanks

Operator

ahead. Markets. from Please Capital of next Our CIBC Bryce go question Adams comes

Bryce Adams

maybe If properly, left drilled scope was I cap April, meters. was all. to the noted morning on you remaining, had were works. color. just the deepening project. on on was CapEx next I task the the big color There X.X commitments recall the the when out one the I to of And Good it's concrete in to was I've related shaft and the comments a the we had question wondering in of site MD&A. more progress surface. if

you if related wondering a just work deepening completed the had So update at project the project? to I was

Makko DeFilippo

this again. Bryce Sure, Makko, is Yes.

deepening physical kind run of through the project. of on Just completion aspects some the

right the to XX meters note our that's the of another only ramp that We've so that's progressing shaft get to go really is So minus level ramp to to to of meters above got XX completed level, Important development bottom now, approximately XX.XX%, well. level.

spot about raise X at meters that and been from civil. on still meters You're finished completed while terrace work board has the we surface, XXX

of handed bulk to So concrete wider all operations. batch as pipe started batch completion during box, shaft box terrace vent the winder -- terrace cement installations cable the which completed, were at cuts surface and cooling as and the is the We've collars, work the plant, we the least houses those completed pending the the completed the plant, over quarter well and the all or plant. and

As taken said, all I civils have on the over initiatives. those

plant completed the the on in laydown osmosis of surface, reverse and are also We areas. the stages finishing

main expected process imminently the we've the main and And works, sheaves made, for ropes or and of of to rope the sinking are the among the purchased terms is sinking process and placed we’ve winder. in fabrication winder physical the start purchases the that and stage wheeler, then sinking others. steel In orders both in upgrading headgear the we've rope,

Bryce Adams

work Okay, already? good currently batch going That's plant on plant there. lot thanks on of back batch concrete that year now done busy commissioned, the is to I it, Maybe or with detail a be the of the this very missed for a half that surface was but Makko. very, work,

David Strang

No, that's exactly right, Bryce.

handed with surface work. work the completed completed, plant terrace started in box civil the QX batch while all at commissioning So we’ve as here all the now bulk cuts completed now and well. in We've underway, hot the least

XXX, level level shaft dumps foundation at So of winder so et the the time underground, the XXX-meter also and for base the finish the XXX building, some raised of down underground we'll minus collar the the raise winder which we'll for the about complete a cement we're that bases, the we're completing transformer then And that goes on, minus on the we're bore. laydown contemplate that second from plus areas. that also leg, boring cetera. sumps, that's or then the then And to XXX now, same

Christopher Noel Dunn

those Bryce, you want and I jump in just questions. thank for to

et this we started -- with call everybody's context, here, to of for equipment, Just contracts to we as forward cetera. move for regards continue security and

start as rates, years. regards cetera, the forward, to of with couple an move continue these et the providing of completion with updates we we market of update course completion, will both large time As to to to next over provide we progress the projects

no through date to Once be of or big regular a on completion So the aspects point going about we projects, that completion also certainly of get all we to basis the to on that. will talking quarters. providing as yet. we you hopefully will There's time the doing start

David Strang

that so appreciate Yes. opportunity team our and about well, are things making the I the But the going to the on Bryce, question, is progress projects. talk main far, really

Bryce Adams

good both thank that you, withit. and Yes, I appreciate luck and

David Strang

Thank you.

Operator

Our of next Securities. Cormark from go ahead. question Ioannou Stefan comes Please

Stefan Ioannou

Sorry I was there. mute on

the Tucuma, focused or the all that. maybe on it you erecting -- sort of color the Just a lot post that this know you and to growth continue next stuff quarter, of I on I maybe of just now? was of things bit yet think work upgraded works provide a exercises to into rainy on side and the concrete and shifting getting a still of are quarter, roads getting with is over season just more maybe lot the the Can right earthmoving sort quarter last

David Strang

big this now activities site, -- was project the work rainy on now and getting later for is to with the or devegetation the So contractor is now and that's complete into devegetating. area. has at of that are Remember, process. started We're completion contract mining the big first on where the regards mining the project near is earthworks started The upgrading we and roads near the project, of to pit. of the waste big see the in pre-stripping for dump because the closer sort year. around started started and season at looking they've are they're some us coming us, metric a to the that start earthwork Happy move to site,

to laying begun that and concrete with As has things like concrete and not that, regards yet.

Stefan Ioannou

very great, much Okay thanks guys.

Operator

comes go question next Please Investments. Our Bert Instructions] from of Century Whitson American ahead. [Operator

Bert Whitson

forward years. mix. One for seeing on next to you question looking projects of and all over on couple detail progress the domestic thank the Hi, the the definitely international the

half as 'XX guess, second market mix I things guess, in return You confident you to I mix suggest that would looking as And kind guess, that XXXX. case, make to do any potential turn how have of once visibility, will forward, Tucuma, will sense, normal sense far to any in normal extent from advantage makes of as the for more a domestic I running shipments shift the are the that push I the up any to similar guess, to of back as be anticipate far a to you things far you a that mix? may it to, mix to And mix also, take 'XX favorable exposure out as international to as that, as will cost? as similar and and project it's that it going extent far that to there? return that for the

David Strang

Yes, thanks, Bert.

they agree guidance regards or to we to with too With stop particular right with move stage, receivable as is we high. we with think We we I do We respect accounts or I following now sure give a very one to have project that -- being think respect back the Tucuma market would but international. their to look at with is our in from them regards to and view for unique that selling is that. domestic and say shareholders any of a they aren't is not the we any this can't that of that, not prudent regards next year? talk particular in we regards regards our that's available international our don't want overexposure that smelter, to operations get And right our generally with any with regards competitiveness to exposure with Let's that, philosophically. to in Tucuma we in because their situation the will credits to exposure that with AR their have up to in different wouldn't -- that We ongoing sell to to that. feet. mode enough, with It to work be length unanticipated is our is buy, How regards us have And them would adjusts company international they and company of At you would perfect recovery we customer to obviously, their with buy have time. customers tax a to making that our and Paranapanema any concentrates there will to credits monitor to on their to to in Tucuma continue are production, now shift are and of operations. where these the as closely or any operations. tax same to we are is the level different. Boa country. the wish north of concentrate buy-in regards

likely than stage, this is Tucuma internationally. it XXX% that more at So our be material will sold

Operator

the closing would over for session. to like the I management question-and-answer conference remarks. any This turn to concludes back

David Strang

everybody call you, coming the operator, to on today. Thank and thanks

are And any follow-up a offline. third As you the to has questions like going we they team. a to would be available look we continue additional forward for that always to is feel ask to we know, anybody strong quarter if one

you with third areas quarter team to November. to is And we'll to don't talk do well to from everybody and all on work, respect before, operations that you we'll and to you we to it's talk continue in and real that, executing this the our geology great through in pass with Our everybody. Thank the it financials credit a interesting way times. if we in finance, team with all

Operator

concludes This call. today's conference

your lines. Thank for participating, a you disconnect may have You day. pleasant and

Ero Copper (ERO) 6 Aug 222022 Q2 Earnings call transcript