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Be the first with the news that moves the market- Ero Copper has announced that production has not been affected by the COVID-19 virus
- The dip in the Brazil Real has actually helped profitability
- Ero Copper does not believe that the dip in copper prices will have an adverse affect on the company
- Company operations are fully funded for the year
- Ero Copper (TSX:ERO) is up 6 per cent, trading for $10.97 a share with a market cap of $940 million
Ero Copper (TSX:ERO) has not experienced any COVID-19 disruptions yet, and is powering ahead with production as scheduled.
The company has not had any supply chain disruptions or sales dips. There are no known COVID-19 cases at any of the company’s operations, corporate offices in Sao Paulo and Vancouver, or in neighbouring communities.
Despite the recent decline in copper prices, Ero Copper remains upbeat.
Fully funded for the year, the company has implemented measures to contain and prevent COVID-19 cases that could suspend operations.
Operations have continued on schedule and below budget. Furthermore, the depreciation of the Brazilian Real during the crisis has created a boost in profitability for the company.
As of December 2019, Ero Copper had $32 million in the bank, with another $42 million in credit, if needed.
CEO of Ero Copper, David Strang, said that they were operating in unprecedented and challenging times.
“While the company remains well-positioned and fully funded at the prevailing copper price and foreign exchange rate, we recognise the continued uncertainty with respect to the COVID-19 pandemic. We have several contingency plans in place to continue to manage our business under a variety of scenarios.
“We have taken extraordinary measures to mitigate the possible impacts of COVID-19 on our workforce, the company, and our operations.
“The extension of maturity dates and decreased borrowing costs of the company reflect the underlying strength of our business. It also provides increased flexibility to continue investing in growing our operations, and maximising the near-term return on invested capital for our shareholders and stakeholders alike.
Ero Copper (TSX:ERO) is up 6 per cent, trading at $10.97 per share at 10:35am EST.
