Q2 2025 Ero Copper Corp Earnings Call

Thank you for standing by. This is the conference operator. Welcome to the Ero Copper Second Quarter 2025 Operating and Financial 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. To join the question queue, please press star, then 1 on your telephone keypad.

Should you need assistance during the conference call you may signal an operator by pressing star then zero?

I would now like to turn the conference over to Courtney Lynn, Executive Vice President of External Affairs and Strategy. Please go ahead.

Thank you, operator.

Good morning and welcome to Ero Copper's second quarter earnings call.

Our operating and financial results were released yesterday afternoon and are available on our website, along with our financial statements and MD&A for the three and six months ended June 30, 2025.

The corresponding earnings presentation can be downloaded directly from the webcast and is also available in the presentations section of our website.

Joining me on the call today are Macco de Filippo, president, and chief executive officer.

Wayne Dryer, Executive, Vice President and Chief Financial Officer.

Justin Batista, Executive Vice President and Chief Operating Officer.

In Phu ComEd, our new vice president of investor relations who joins arrow in mid July.

Before we begin, I'd like to remind everyone that today's discussion will include forward-looking statements, which involve risks and uncertainties, that may cause actual results to differ materially.

For a detailed discussion of these risks and their potential impact on our business. Please refer to our most recent annual Information Form available on our website, as well as on Cedar and Edgar.

Unless otherwise noted, all figures discussed today are in U.S. dollars.

With that, I'll now turn the call over to Micco de Filippo.

Thank you, Courtney, and thank you all for taking the time to join us today.

I want to spend some time talking about the important foundational work we've been doing over the last several months to illustrate why 2025 is really a year or two out.

Early this year, we initiated an operational excellence framework.

During the first half of the year, we made significant progress across our operating portfolio letting the necessary groundwork to deliver safe and sustainable growth in production for years to come.

It was a period of significant change driven by a Back to Basics approach, combined, with some major steps forward in strategy and Technology across our operations.

During this transformation, we refined our operating strategies, improved predictive maintenance, and reduced unplanned downtime. Our fleet management and dispatch systems saw significant improvements as well. We hired and integrated new leadership into critical roles throughout the company.

This fundamental groundwork was necessary and nonlinear.

The significant changes we've made across the company are focused on stabilizing operating performance and preparing our organization for long-term growth. We see ahead of us.

This work was undertaken while successfully completing the necessary repairs at tucuma.

And completely changing the mining method at our job. In China operations,

I am extremely proud of our teams for their effort on Arrow's transformation over the last six months, and we are starting to see the benefits reflected in our operating results.

The second quarter culminated in the announcement of commercial production at 2.1, and was highlighted by significant quarter-on-quarter increases in production from both Kariba and Java in China.

The turnaround at Caribbean Jaina contributed to record consolidated copper production and solid financial performance. Leading indicators show that we have the right teams in place and the right operating framework to achieve our results. But I certainly recognize that the first half was not without its challenges.

When I look ahead to the second half of the year, I see a different picture. The foundational work we have completed over the last several months is setting us up well to continue building momentum in the coming quarters.

Our revised guidance range, reflects our expectation, that our third quarter will be better than the second, the fourth quarter better than the third, and that 2026 will be better than 2025.

The way I think about this is that we arrived a bit late to the station. But if you step back with me and look at the second half of the year in isolation from the first, you will see an annualized rate.

That is closely aligned with our longer-term production outlook across each of our operations. Late to the station, but full steam ahead.

Before I turn the call over the to Wayne to discuss our financial results, I would like to share a bit of detail on our improved operating performance at Caribbean. Java, the progress we're making at furnas and how this all aligns with our broader strategy

At Kariba, we saw a solid turnaround in operating performance this quarter, highlighted by a 25% increase in copper production when compared to Q1.

Initiatives that we launched to enhance operating performance and drive. Efficiencies are delivering results, a few of the behind-the-scenes highlights achieved during the second quarter include a 50% reduction in unplanned infrastructure, downtime record, pays back, bill rates and a more than 10% Improvement across the board in our mobile equipment. Fleet availability

In parallel, we have started deploying new to Kariba, but while established Technologies and dispatch tracking and monitoring that are transforming the way we operate.

We are shifting our Focus slightly in polar during the second half of the year to optimize our mining Center of mass within the upper levels of the Mind.

At Javon China. We spent the first half of the year setting up the mind for mechanization.

A long-term investment that will unlock considerable value for the operation.

We spent some additional time in H1 to get this trans transition set up, right? We work during Q2 to prepare the Mind. Prepare our teams hire new roles that were needed on site all fundamentally geared to ensure. We could do it successfully and safely. The additional time was worth it. Go production was up and impressive 17% versus q1 and we expect the full benefit of mine mechanization to flow through our results. In the second half of the year as mine tonnages, improve sequentially.

Our low-profile equipment is working. Well, the stokes we have mined using mechanized methods have been a definitive success, and we see a clear pathway towards meaningfully increasing production volumes from Jev and China over the next several months.

At Fernaus, we completed our Phase 1 drill program in early July and have maintained 8 drill rigs on the project to ensure we can complete most of the Phase 2 drill programs, with an additional 17,000 meters by year-end.

Our Phase 2 program includes a greater proportion of extensional holes to depth, and we are already seeing strong signs of success in this program.

Technical work streams to support the preliminary economic analysis for furnas are ongoing and we remain on track to complete this study during the first half of next year.

To briefly recap, we are delivering on our 2025 strategy. We set out this year to improve our existing operations achieve commercial production at 2. Kuma do you have our balance sheet aggressively Advanced long-term growth initiatives at fernaus, furnas and initiate returns to shareholders. We are well on our way

I was in our offices and on-site last week, in Brazil, and I am proud and thankful for the work. Our Global Leadership team is doing to achieve these objectives.

To ensure we have sufficient time for Q&A, I will leave it there and pass the call to Wayne, who will provide more detail on our financial results.

Thank you, Maca. Our strong financial results were driven by record consolidated copper production and favorable metal prices.

Contributing to adjusted evida of 82.7 million and adjusted. Net income attributable to owners of the company of 48.1 million or 46 cents per share.

A liquidity position remains solid at $113 million, including $68.3 million in cash, cash equivalents, and $45 million of undrawn availability under our revolving credit facility.

During the quarter, we delegate our balance sheet by paying down, 10 million of our revolver and 9 million of our copper prepayment facility.

Combined with stronger, ebita compared to the first quarter. These actions load our net debt to ibido from 2.4 times to 2.1 times.

With higher production levels projected in the second half of the year, we expect to accelerate the deleveraging in the coming months.

As part of our foreign exchange hedge program, our total notional position at quarter, end was 240 million consisting of zero-cost collars with a weighted, average floor and ceiling of 5.53 and 6.52 riyal to per US dollar respectively.

These extend through June 2026.

While the reality dollar exchange rate has remained largely within our collar range for the quarter, we did record a modest realized gain of $0.2 million during the previous quarter.

I'll now pause the call back to Makkah for some closing remarks.

Thank you, Wayne.

Before we move into the Q&A session, I want to take a moment to reiterate our commitment to delivering on our strategy at Arrow.

With operational improvements well underway and the commercial production of tucuma behind us, we expect to continue our deleveraging path, further advance our long-term growth initiatives, and position ourselves to initiate shareholder returns.

With that I'll now turn the call back to the operator, to open the line for questions.

Thank you.

We'll now begin the question.

In the question queue, give me a press star, then 1 on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys to withdraw your question. Please press star, then 2.

Our first question is from Dalton Beretto with Canaccord Genuity. Please go ahead.

Your disclosure says that you ran at about 75% of design capacity in the last two weeks of June. Just wondering if you can give us a July update and also sort of highlight what kind of assumptions went into the updated guidance. Thanks.

Yeah, thank you Dalton. Um yeah, look from from my perspective just to to recap. I think the important thing to note it to come up, obviously we we achieved those those levels of of production in in June. Um, when I look at the difference from the first half to the second half and what we've been able to achieve, we've gone from, you know, some clear bottlenecks and being able to achieve design rates to now achieving rates that are, you know, at or or, or slightly below where, where we where our designer it is, but the requirement today is different. We need to achieve the results, more consistently. We've been able to demonstrate both in June and July that we can operate at much, higher rates. So I think the main takeaway from us on this call, is that the transition from H1 to H2? Uh, H1 was about addressing bottlenecks. H2 is about achieving rates. We've already achieved but doing it more consistently. Uh, so I don't want to get into specific numbers about July, uh themselves. But what I can say,

Is that when I look ahead to Q3 and Q4 we've been able to achieve the rates during the month, um, you know, for days and weeks, we need to do that consistently over the full quarter and and we expect to continue to improve sequentially through the, through the back half of the year.

Can you comment on what percentage of design you're assuming for Q3? And then again, for Q4, just on average.

Yeah. Look, I think where, where we get to by year, end? Obviously, I think, in our original guidance range, we'd assume that we got to, to just about design capacity. And at the tail end of this year, we're assuming that rolls through now into the first quarter of next year. And so, when I look at our projection for Q3 Q4 going in the back half again, it's it's not it. It's in line with what we achieved the second half of June, so, getting to that 80% or so of design capacity, by year end.

Hi, Tariq with Jeffrey's, please go ahead.

Hi, thanks for taking my question at Ero. I'm just trying to reconcile how good the cash costs have been in the second quarter and what the guidance is for the full year. It sounds like production is going to get better in the second half of this year. The optimization improvements are all kind of trending well. I'm just trying to understand, is there potential for cash costs to come in below the guidance range at Kuro? Or is there some upward pressure that you can highlight?

Yeah, thanks. It's a great question, look. I mean obviously we're we're you know, well into our operational Improvement program here at kuriboh and we're seeing those benefits. We uh, we started this journey in in the first part of the year with jelson and, and our leadership team on site um, having some really strong success. So far, I think where we see the the upward pressure and cost of the second half relative to the first is really the shift in strategy. So we're seeing a bit lower grades than the first half in the second half. And that's contributing to um to to a bit of an upward trajectory relative to the first half. I'd say, when you look at the full year in context of original guidance range, we still see that, um, uh, you know, coming at the lower half of the range again, that's been, you know, I would say supported by ongoing favorable tcrc environment, as well as uh, elevated byproduct, metal prices as well. So, uh, for sure, there's the potential there, uh, to be, you know, at the at the very low end or potentially,

Below below. But um but we're looking at lower grades in the second half of the Year higher throughput volumes and uh and we expect that for that reason to be in the lower half of the range

Okay, and then on 17A, um can you just remind us how grades have been reconciling to, to the to the plan at least in the first half of this year? And how should we be thinking about grades in the second half? What will the mechanized mining result in in Greater dilution?

I'm going to answer this in two parts. So you know, we've spent the time to set up the mine, as I said in the opening remarks, to ensure that mechanization could deliver, uh...

With a bit of a softer, do you want in terms of grades but going into Q2 and and certainly what we're seeing in Q3 and Q4 we expect grades to be in line with our expectations and the overall block model.

Great. Thank you.

The next question is from Oris. Wadal with Scotia Bank, please go ahead.

Hi. Good morning. Um, wanted to ask a couple questions similar vein to Dalton here. It just coming back to Tuukka.

Can you give us an update on what the remaining bottle necks are in terms of the operation running at steady state, throughput for longer periods of time? It sounds like you're still somewhat in the stop. Start phase.

Um, if I heard your comments earlier and just.

curious, again, if you provide any kind of throughput number for July to give us a sense of of progress,

Yeah, thanks Doris. Good question. Uh, I'd say definitely not. Stop start wouldn't characterize it that way. I think where we're, you know, again looking at the first half and the difference is the second half of the year. You know, we're seeing uh

We're seeing rates that we need to achieve, we're seeing those routinely and regularly the 1, I think about the second half and and the remaining uh remaining our roles. We need to go through. We've been operating this plant for a year. Our objective now is on is really geared towards preventative maintenance so that we can ensure consistency of operating performance. So you know,

I look at our best days and weeks, and they're well ahead of where we need to be going in the tail end of this year to achieve our guidance. But we need to do that for, you know, for the entire month and then the entire quarter. Uh, and so that's really what we're seeing now. Our big focus, we've deployed some additional resources. We've got support from Caribbean, our teams there, to be able to ensure that we can do that in the second half. So again, distinctly different from the first half of the year. We had fundamental bottlenecks that needed to be addressed. Those were piping valves, um, you know, some of the pumps that we need to switch out. We made those changes. Now we're really into the operational consistency phase of the operation.

Okay. And comments on throughput for July.

No, or if I'm I uh no comments on July.

Okay, um maybe just shifting gears. I apologize if I missed it but I didn't I don't think I saw anything near disclosure about the uh the shaft syncing at polar. Can you just give us a quick update? There is it tracking on schedule on budget or where? Where are things out on that?

Yeah. Great. Great question Orson. Thank you for asking the shop Project's going. Really well. Um, at the end of June, we're about 700 meters below surface. So you know, roughly halfway, I think gets at this point end of end of July here or roughly halfway down. Uh, obviously try capex is is tracking well, with our expectations. And and we expect

That to be operational in 2027, which is reflecting our long-term outlook for Kariba.

Fantastic, thank you.

The next question is from Ralph graffiti with default. Please go ahead.

Operator: Good morning, everyone. Uh, Michael, I want to ask a question.

On Kariba uh the contribution from the Suburban pit. Um just wondering what the how much of that was uh, in the second quarter numbers. How much of that is planned for the second half of the year? And and when you talk about, you know, mining tonnage sort of outperforming, is this is this a holistic distance issue is this Joel and blast optimization, uh, you know, something on great control, just wondering where that outperformance is coming.

I think the question on outperformance is yes, to all those things, to be fair. There's been a big focus on operational excellence. The team's been doing an incredible job there, again not just on the maintenance side but also on the review of all our blast designs, ventilation improvements, and consistency.

Of of our College Fleet lots of small improvements that are contributing to those gains. Uh Serbian is a is a is a great question, I think as everyone on this call knows you know sir beam is is an important contributor to our production profile in the second half of this year and the next year. So we we certainly see those benefits uh, coming in as we get to

Again we've been on a a journey there at Serbian for the last few years since we since we opened that uh operation back up and and now is really the uh the period where we get to to generate the Returns on that pre- stripping that we've done for the last several years.

Okay, great. And, um, how has the power situation come up?

So sorry, cut out on this end. I know the questions about power, but the second half of that question was completely cut out for us on this end. Could you just repeat that?

Thanks. My apologies. Just wondering how the plant is responding to the, you know, the incremental power draw requirements.

I took them all. Yeah, we don't see any, uh, any bottlenecks. As I said on our last conference call, we don't see any barriers with respect to power at Tucuma.

Uh, again, really the main focus for us is on preventative maintenance and making sure that we can achieve consistent performance.

Great. Thank you. Good luck.

The next question is from Bryce Adams with DeJaren. Please go ahead.

Thanks for the presentation, Marco.

Also uh following on from Dalton's questions. I I too was hoping for some more color on July it took him a numbers. If you can't talk to the mining and Milling rates, can you talk to how much stockpiled material uh you had on site as of June and were you drawing on or adding to the stock piles in July?

Yeah, uh, thank you Bryce. Good question. Uh, with respect to stockpile. Yeah, our our uh, our money rates have obviously trended above, uh, above where we needed to be since we started the Pres ripping, um, we slowed down minor rates a bit in Q2, just because the stockpile volumes that we have available are are so significant. And, uh, in July, we started now again to to react to that stockpile. So, you know, we're still still in that 1.5 to 2 million ton range, which is where we've been basically, since we, we started production, um, or or at least got through the tail end of last year. So that stockpile volumes were made remain the same. We expect the second half of this year to build a bit, a bit more of additional stockpile as we increase mining rates. Uh and again that's aligned with our long-term strategy at uh at Tik Tok.

Got it. Thanks so much.

The next question is from Anita Sony Lucia. ABC World Market, please go ahead.

Hi, good morning, Marco and team. Um, first time I've asked me a question on your call. I just wanted to get an understanding on, uh, on Kariba the the magnitude of the grade to climate, You're Expecting in the back half of the year. So currently the first half is average is 1.22 and turn it up a little in, uh, in, in Q2 from q1. So, um, does it, is it in the similar kind of brain band, like range bands, like where we get down to 1.1 or is it, you know, 1.2 1.15?

Yeah, great. Thank you. And, and, and thanks for the question. I appreciate your voice on this call, so thanks for asking. Um, I think two things are important when you look at the plant throughput and grade profile at Kariva in the second half of the year. Number one is that.

Sir, beam becomes an increasingly important contributor to our to our mix of plant Fleet uh, feed Serbian has a lower average grade than our underground mines. Uh, it's high margin, especially the second half of this year to next year, but that will drag down overall Blended throughput grades in the second half of this year.

Our guidance range assumes that, on a full year basis, it will be somewhere between 1.1 and, or sorry, yeah, 1.1 and 1.2. So you can run through the numbers on the second half of the year based on that. But I think the most important distinction is that you've got this increasing contributor of serving to our overall mix, which is lower grade than our underground operations.

Are you targeting for the exit rate? Uh, on the, um, on the throughput? Uh, at the, I think you said mentioned 80, was it 80%, uh, throughput of the name plate capacity.

Exit velocity at ERN, we expect to be, you know, above 80%. So I think the main message here is, you know, our revised guidance range considers that we have continued improvement, but it's not outside of the range that we've already been able to demonstrate we can achieve.

Um, can I move to a question on dantina?

I see it. It's explicitly stated, but can you remind me? What is the nameplate capacity of the mill at the processing plant? Is there?

Yeah, the design capacity it's it's disclosed our Tech reports around 300,000 tons of ore so it's still a a a small plant uh overall and we expect to still have you know, roughly even though we're seeing an increase volume a quarter and quarter, we expect to use an increasingly uh, increasing share of that capacity, but still not at full designer rates by year end.

And how do you see that ramping up going into 2026?

Yeah, look, we're doing that work. Now, it's a great question. You know, 2026. We just kicked off our budget process this week.

Uh, what I can tell you is that we're very excited about Javan, China for 2026 and and the work that our teams are doing there, but it's a bit too early to, to talk specifically about, you know, how we see that coming in. Um, obviously we if you look at the second half,

Of this year and the annualized rate that's that's implied in our revised guidance range. You know and you you you you look at that it's still 50 to 60,000 oz of production and so we're pretty happy with what we're seeing in the second half of this year and we expect that to continue into 2026.

I'm sorry if I missed it, but could you explain why the, um,

Quarter.

Yeah, look, Jina. If we have a mix, the deposit itself has a, uh...

Has a uh, it's a composition. It's an it's a quartz vein that has a carbonaceous material in it. Our our recovery rates can be variable depending on on, um,

On how much carbon is material. We get in there again, I think that's a that's a temporary uh, reduction and it and it does happen from time to time, but we don't see that continuing through the rest of the year.

Thank you for taking my question.

The next question is from Gil, Hermet Rosito with Bank of America. Please go ahead.

Thank you. Can you guys hear me? All right?

Yes, we can. Thank you. Perfect. Thank you. Good morning, guys. Thank you for taking my questions. So, Michael, my question is maybe broad, and if there's a bit of that in your opening remarks, then...

If you look at your corporate history, you guys always deliver. And now, for the past two years, you had to revise it downwards. And then you touched a bit on that. But as you look back, what are the main lessons you guys have been taking from this experience? What are the challenges, and what are you learning?

And how's that changing? How are you guys thinking about the furs and how you developed that project?

Then my second question is to Wayne. Now that commercial production was finally declared, the next step is starting to return cash to shareholders and cash returns. So what do you think is a reasonable timeline to expect you guys starting the actual cash returns? Thank you.

Yeah, thank you for the question. Look, it's a fair one on guidance, and I appreciate the question.

There's a couple things that I think are really important to note, I I you know, in this um transition that happened this year. We made a lot of changes all throughout the organization. Um the the depth and extent of those changes

To be, you know, as I said in my opening remarks, obviously arrived a bit late to the station, uh, where we had hoped to be at the outset this year. I think there are a couple of things that took a little bit longer, particularly Jaw and Tucuma.

Those are for different reasons. When I look at what what happened at Javan China. And this past year, again, I'm really proud of the decisions we made and we wanted to make sure that we could perform safely and consistently. And so we took a bit of extra time there than our original plan and I and I think those results will be demonstrated clearly in the second half of the year.

Uh, at Caribbea, it's a little bit different, right? New teams are coming on board, looking at the operating strategy. How can we improve performance there? And as you see, that's had an impact on guidance. But again, improving margins to help offset that. And then at Tucuma.

Projections, right? I think we've come a long ways in achieving stability and, and consistency of operating performance. We addressed the bottlenecks that we had in the, in the early part that were associated with design, and we see those those bottlenecks as being behind us. I think if you look at our, the capacity of our organization, and I'm looking at our site leadership team on site, here is around this table. If you look at, we've been able to do at Java machine and Curry, but this year uh we have the capacity in our organization to achieve, excellent, operating performance through it, safely to improve our maintenance, uh, performance. And that's what we've got some comfort going. The second half of the year on guidance. Um, and, and and yeah, look, I appreciate. I appreciate the question. I think there's been a lot of changes in organization the last 6 months, uh, really happy with the leadership team that we've we've assembled and what we're doing here. And, and again, I think the the updated guidance reflects our commitment to

You know, to consistent operating performance, to doing it safely, uh, and being transparent and realistic about where we're at. At one point, thing to note is that the high end of our guidance across the board is.

You know, still at the low end of our prior guidance, we certainly see scenarios where where that's achievable if, if, uh, things go extremely well. But we're looking at at uh, at the realities that we face in the first half of the year and flowing those through. So I think our, you know, to answer your question directly, I think, the updated guidance range that we've put out now, reflects a lot of the, uh, the feedback and, and learnings that we have over the last year, so hope that answers the question. Um,

yes. And then the last piece of that, the question that you asked me just going through the notes Here. Is how does that impact? How you think about for honest I'd say it doesn't um the front office is still you know a development project fundamentally we're in our drill program, we've been able to execute to our expectations. We expected that we'd finish our Phase, 1 drill program by the end of June. I think we did it the first few days of July so right on track with our expectations there. Um and and furnas really is going from a, the drilling phase now into the Pea and and we're pretty happy with that timeline that we have, in terms of coming out the first half of next year, uh, with that. So, hope that answers your questions. If you got any more than happy to take that conversation offline and and have a more in-depth discussion. Go ahead Wayne sure. Thanks. Um the limit in terms of your second question. Obviously I think um,

You know, we've we've had a, a slightly slower, um, start to our, our ability to, to deliver our balance sheet, and, and build up cash reserves. So, I think we're still very thoughtful about that. We'd like to see, um, the deleveraging continue through the end of the year. We obviously have, um, robust discussions with our with our board around when is the appropriate time to to start considering shareholder returns? But as I said, I think, you know, we we, we would like to the main. The first focus is obviously to, to get the balance sheet, back to where we want it to be. And I think that's going to be uh the priority through the uh, the rest of the year.

Thank you, Mark. Can you read super clear? Super transparent. Thank you.

It's from Craig Hutchinson with TD. Colin, please go ahead.

Hi, good morning guys. Just

Just one question for me. Just on CBA. What are your initiatives to control class? Was the focus on Flora's mind fleet?

On the upper levels of mind to reduce Hall distances, I was just wondering how sustainable this is. Is this something you can achieve in the next couple of years? Or is it more focused just on this year alone?

Yeah, uh, thanks, Craig, for the question. We, um, we certainly see the opportunity with the drilling that we've done in the upper part of our mind, the amount of available resources to continue strategy over the next.

Uh, a couple of years until the shop comes online. I think there's a balance to be had there between some of the higher grades we have in the deepening and some of the continued development. As you know, Greg, operating flexibility for Polar was always part of our strategy, and we've been really happy that over the last, you know, 6 months to a year, the work that we've done with mobilizing a second development contractor has afforded the opportunity to look at some of these strategies and think differently about our near-term plans. Again, I think overall we certainly see the potential to continue their, you know, taking this.

doing now on maintenance, predictive maintenance people tracking, um, you know, dispatch systems Getting Back to Basics, with some of the technology that Justin, the team are implementing those will benefit

Uh, all areas of the mind. So whether we're mining the shallow part of the deep painting for, for the years to come, and I think that's really the key theme for me, is this operational framework that we put in place in place or early in the year. Our teams have worked really hard to achieve the results that we've been able to achieve. We still see a pathway for improved performance, um, and that's our Focus for the next 6 months, and 18 months. And and obviously, uh, those will benefit our performance greatly when the shop comes online in 2027.

Okay, great, guys. Best of luck.

Once again, if you have a question, please press star, then 1.

The next question is from Matthew Murphy with CMO. Please go ahead.

Hi Marco. Um, I have a follow-up on Tucumã. You've mentioned it a few times regarding the push for consistent preventive maintenance. I'm wondering if you can add any color about which areas of the mill.

All right, need the most attention. I think you had some work on the tailings filter last quarter. Anything else you can flag that needs focus at this point, and how you're addressing it?

Yeah, as I said, you're you're into the operation here. Our main focus areas and I'll let joelson add. If it's got any color to add here but our main focus here is that tucuma, obviously, the filter presses, uh, an area of of, of, of, of additional tension uh and preventive maintenance routines. Again, we've got 2 filters that have been operating for a year 1. That's been operating only for a short period of time uh, given that it was down for a significant portion of the ramp up and so making sure that we've got the, the systems in place and the people in place and teams in place to be able to do that. Um,

And then also on the crushing conveying systems, right, with those have been operating for for a year and and uh, and you know making sure that we've got, you know, consistency of performance there. When I look to the Milling exploitation side, uh, we've had a really strong performance there in terms of throughput rates, recoveries, uh, have all been good. So we see less of a focus. I'd say more at the, the front of the plant. Uh obviously we assume lower availability for our crushing conveying systems overall, but still need some attention points there to address. Justin. I don't know if you have anything to add on on that. No Marco, thank you. Um, I think you, you hit their asset management strengthened and um, and optimization on the predictive maintenance, I think this is a key aspects across the board our entire plant. And

The areas that you mentioned in the question and conveying, and of course, the future. Yep.

Okay, thank you.

The next question is from Oris, Waka with Scotia Bank, please go ahead.

Oh actually my question's been answered. Thank you.

Thanks aurus.

This concludes the question and answer session. I'd like to turn the conference back over to Micco de filipo for any closing remarks.

Yeah, thank you for joining the call. Uh, everyone appreciate the time on a Friday before the before the long weekend for those you dialing in from Canada.

Uh just a reminder that all of us are available for any follow-up questions and uh we'll chat soon. Thank you very much.

To a close today's conference call, you may disconnect your lines. Thank you for participating and have a pleasant day.