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Annual copper production of Ero Copper2018 increased by 51 per cent and continued to increase by 2019

iconJan 16, 2019 10:52
Source:SMM

Erro Copper announced production data for the whole of 2018 and the fourth quarter of 2018 at the Curaca (Curaca) mine in the state of Bahia, where it has a 99.6 per cent stake in Brazil. The corresponding financial results will be released after the close of the Toronto Stock Exchange on Thursday, March 14, 2019.

The bright spot of 2019: 1, 2019 copper production target is 36000 to 38000 tons; 2. C1 cash cost index is US $1.00 to US $1.10 per pound of copper, calculated in US dollars: BRL foreign exchange rate is 3.70; 3. The capital expenditure target is US $62 million; 4. The additional US $20 million is used to finance the exploration plan for 2019. The plan focuses on 130000 metres of planned exploration drilling, including 112500 metres of near-field exploration drilling (including continued exploration of the eastern part of (Vermelhos) and the west wing of Pilar (Pilar), as well as an additional 17500 metres of planned exploration drilling tests for green land.

Commenting on the production results for 2018 and the outlook for 2019, David Strang, President and Chief Executive Officer of Ero, said: "our strategy for 2018 is to establish a long-term basic copper production base for our business in the Kuraca Valley. The company has achieved this goal with the early production of the Womel Hoss mine in August and the consistency of monthly production at the Pilar mine. In addition, the plant had a production capacity of 777480 tons in the fourth quarter of last year, equivalent to an annual rate of 3.1 million tons, indicating that the plant can continue to operate at the current capacity ceiling of about 3.2 million tons per year.

Looking forward to 2019, we will continue to increase total copper production, further reduce operating costs, and implement several high-value optimization projects launched in 2018, on the basis of which we have achieved strong operating results so far. Although iron ore production is theoretically expected to be 2 million tons in 2019, our current focus is on identifying opportunities to continue to increase mine capacity this year.

In addition, our exploration plans are now focused on extending the life of the mine and increasing the output of the rolling mill. We intend to incorporate each discovery into our mineral reserves through active filling and extended drilling, based on the successful discovery of the Pilar West Wing and Womel Hoss East oilfields in 2018. In addition, we will assess and pursue the new regional objectives resulting from the 2018 aerogeophysical survey, which will enable us to continue to expand our operations in the Kulaca Valley. "

Production results in 2018: 1. During the year, about 2.3 million tons of ore were mined and processed, the grade was 1.56%, the average smelting recovery was 86.3%, and the copper output of concentrate was 30426 tons. 2. In the fourth quarter, the copper output was 777480 tons, the grade was 1.77%, the average metallurgical recovery was 87.8%, and the copper output of concentrate was 12104 tons. 3. The Womel Hoss Mine was put into production ahead of schedule (about 4 months earlier than originally planned). A total of 206873 tons of copper deposits with a grade of 2.72 per cent were mined, which contributed to the annual output, of which 143661 tons of 2.77 per cent of the copper deposits were mined in the fourth quarter. 4. In the 12 months ended December 31, 2018, 97.6% of the NX gold mine of the company processed a total of 117857 tons of ore with a grade of 11.55g per ton, an average metallurgical recovery of 91.0%, and a gold output of 39808 ounces as a by-product. Silver production is 24573 ounces.

Production prospects for 2019: copper production in 2019 is expected to shift slightly towards the first half of the year due to higher stope ranking at the Pilar and Womelhos underground mines and increased production at the R22W open-pit mine. R22W is expected to increase underground production in the first half of this year (about 250000 tons of copper with a ore grade of 0.50 per cent). In underground production, Pilar and Womelhos will provide about 1.3 million tons of copper with a grade of 1.80 per cent and 500000 tons with a grade of 3.20 per cent, resulting in a mixed head grade of about 2.00 per cent.

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