Ero Copper Corp (ERO) 2024 Q3 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Ero Copper third quarter, 2024 operating and financial results conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)

感謝您的支持。這是會議主持人。歡迎參加 Ero Copper 2024 年第三季營運與財務績效電話會議。（操作員指示）會議正在錄音。（操作員指令）

I would now like to turn the conference over to Courtney Lynn, Senior Vice President of Corporate Development, Investor Relations and Sustainability. Please go ahead.

現在，我想將會議交給企業發展、投資者關係和永續發展高級副總裁 Courtney Lynn。請繼續。

Thank you, operator. Good morning and welcome to Ero Copper's third quarter earnings call. Our operating and financial results were released yesterday afternoon and are available on our website as are our financial statements and MD&A for the three and nine months ended September 30, 2024. On the call with me today are David Strang, Ero's Co-founder and Chief Executive Officer; Makko DeFilippo, President and Chief Operating Officer; and Wayne Drier, Chief Financial Officer.

謝謝您，接線生。早安，歡迎參加 Ero Copper 第三季財報電話會議。我們的經營和財務表現已於昨天下午公佈，可在我們的網站上查閱，也可在截至 2024 年 9 月 30 日的三個月和九個月的財務報表和 MD&A 上查閱。今天與我一起通話的有 Ero 的共同創辦人兼執行長 David Strang；總裁兼營運長 Makko DeFilippo；以及財務長 Wayne Drier。

We will be making forward-looking statements that involve risks and uncertainties from which actual results may differ materially. We would refer you to our most recent annual information form available on our website SEDAR and EDGAR for a discussion of the risk factors of our business and their potential impact on future performance. As a reminder and unless otherwise noted, all amounts are in US dollars.

我們將做出前瞻性陳述，其中涉及風險和不確定性，實際結果可能與這些風險和不確定性有重大差異。請您參閱我們網站 SEDAR 和 EDGAR 上的最新年度資訊表，以了解我們業務的風險因素及其對未來業績的潛在影響。提醒一下，除非另有說明，所有金額均以美元計算。

I will now pass the call over to David Strang.

現在我將電話轉給戴維‧斯特蘭 (David Strang)。

Thank you, Courtney. We appreciate that this is a busy week, especially with the news surrounding the US Presidential Election. So thank you all for taking the time to join us today. Before diving into our third quarter results, I want to take a moment to discuss the leadership succession announcement we made yesterday. This transition is something we've been thoughtfully planning over the last two years, beginning with Noel’s decision to step down as Executive Chairman in January of 2023.

謝謝你，考特尼。我們知道這是一個繁忙的一周，尤其是圍繞美國總統大選的新聞。非常感謝大家今天抽出時間來參加我們的活動。在深入探討我們的第三季業績之前，我想花點時間討論我們昨天宣布的領導層繼任公告。從諾埃爾決定於 2023 年 1 月辭去執行董事長一職開始，我們在過去兩年中一直在精心策劃這一過渡。

Noel’s contribution have been instrumental in shaping Ero Copper from its early stages into the successful high-growth copper producer, we are today, and I am immensely grateful to have him taken this unimagined journey with him over the past eight years. As I step into the role of Executive Chairman, I'm excited about what lies ahead for Ero. I remain fully committed to our long-term success and look forward to continuing to support our growth in this new capacity.

諾埃爾的貢獻對於將 Ero Copper 從早期階段打造成如今成功的高增長銅生產商起到了重要作用，我非常感謝他在過去八年裡陪伴我走過這段難以想像的旅程。當我擔任執行主席一職時，我對 Ero 的未來充滿期待。我仍然全力致力於我們的長期成功，並期待繼續支持我們在這新職位上的成長。

With Makko assuming day-to-day leadership of Ero’s President and CEO, we are in incredibly capable hands. Makko has demonstrated exceptional leadership as our Chief Operating Officer, Championing, Safety advancing our strategic growth initiatives, including the successful construction of Tucumã and strengthening our culture of accountability. I have absolute confidence in his ability to lead Ero into this next chapter.

在 Makko 擔任 Ero 總裁兼執行長的日常領導下，我們的工作將處於非常有能力的領導之下。作為我們的首席營運官、倡導者和安全官，馬科展現了卓越的領導力，推動了我們的策略成長計劃，包括成功建立圖庫姆阿和加強我們的責任文化。我絕對有信心他有能力帶領 Ero 邁向下一篇章。

I'm also pleased that Makko will have the full support of Gelson Batista, who joined us in September in anticipation of this transition. Gelson brings a wealth of experience from his 25 years in the mining industry, most recently serving as Chief Operating Officer of ArcelorMittal's mining division. His expertise will be invaluable as we continue to strengthen our operations and execute on our growth strategy.

我也很高興 Makko 將得到 Gelson Batista 的全力支持，他於今年 9 月加入我們，期待這一過渡。蓋爾森在採礦業擁有 25 年的豐富經驗，最近擔任安賽樂米塔爾採礦部門的首席營運長。隨著我們繼續加強營運和執行成長策略，他的專業知識將非常寶貴。

With that, let's move to our third quarter operating and financial results. This past quarter brought both notable successes to celebrate as well as new challenges for our team to navigate. Among the successes was the completion of construction at Tucumã operation, culminating in the first production of first salable copper concentrate in July 2024.

接下來，讓我們來看看第三季的營運和財務表現。過去一個季度，我們的團隊既取得了值得慶祝的顯著成功，也面臨新的挑戰。其中一個成功之處是圖庫姆阿礦場的建造完成，並於 2024 年 7 月首次生產第一批可銷售的銅精礦。

Reaching this milestone just over three years after the publication of Tucumã's optimized feasibility study in September 2021, is a testament to our team's extraordinary dedication and hard work. What makes me most proud, however, is that we achieved this milestone without a single lost time injury. Another important milestone in the quarter was the execution of a definitive earning agreement on the Furnas Copper-Gold Project with a subsidiary of Vale Base Metals in July.

在圖庫姆阿 2021 年 9 月發布優化可行性研究報告僅三年多後就達到了這一里程碑，證明了我們團隊非凡的奉獻精神和辛勤工作。然而，最讓我自豪的是，我們在沒有任何誤工傷亡的情況下實現了這一里程碑。本季的另一個重要里程碑是7月與淡水河谷基本金屬公司旗下的一家子公司簽署了關於弗納斯銅金計畫的最終收益協議。

Consistent with the terms outlined in the binding term sheet announced in October 2023. We are delighted to partner with Vale Base Metals on this opportunity and look forward to advancing the project towards a final investment decision over the next few years. Totally after executing agreement, we applied for the drilling permits required to commence the Phase 1 drill program, which we received in September. Then in early October, we published an initial NI 43-101 compliant mineral resource estimate based on a contemplated high-grade underground mine scenario.

與 2023 年 10 月公佈的具有約束力的條款清單中概述的條款一致。我們很高興能藉此機會與淡水河谷基本金屬公司合作，並期待在未來幾年內推動該項目走向最終投資決策。在完全履行協議後，我們申請了啟動第一階段鑽探計劃所需的鑽探許可證，並在9月份獲得了許可證。然後在 10 月初，我們根據預期的高品位地下礦山情境發布了初步的 NI 43-101 合規礦產資源估算。

In mid-October, the first drill rig arrived at site and we kicked off the 28,000 meter Phase 1 drill program, which will focus on infill drilling and extending high-grade zones within the broader deposit to depth. As of the end of October, we have two drill rigs on-site with an additional two rigs expected to arrive by the end of this month. Our plan includes drilling approximately 4,500 meters in the fourth quarter, with the remainder scheduled for 2025. Alongside these achievements and the strong progress we made in executing our growth strategy, we encountered operational challenges at both Caraíba and Tucumã

十月中旬，第一台鑽機抵達現場，我們啟動了 28,000 米的第一階段鑽探計劃，該計劃將重點進行加密鑽探和將更廣泛礦床內的高品位區域延伸至深處。截至 10 月底，我們在現場有兩台鑽機，另外兩台鑽機預計將於本月底抵達。我們的計劃包括在第四季度鑽探約 4,500 米，剩餘部分計劃在 2025 年完成。除了這些成就以及我們在執行成長策略方面取得的重大進展之外，我們在卡拉巴和圖庫姆都遇到了營運挑戰。

On a positive note, we achieved an 11.9% increase in copper production at Caraíba during the quarter, producing 9,920 tonnes of copper in concentrate, driven by higher mine grades both for Vermelhos and Pilar. This improvement reflects progress in developing high-grade stopes at Pilar during the quarter. However, underground development rates at Pilar have not advanced at the pace we had anticipated, primarily due to underperformance by the third-party contractor we engage for this work.

積極的一面是，本季度，我們位於 CaraÃba 的銅產量增加了 11.9%，生產了 9,920 噸銅精礦，這得益於 Vermelhos 和 Pilar 的礦山品位提高。這項改善反映了本季在開發皮拉爾高品位礦場方面取得的進展。然而，皮拉爾的地下開發速度並沒有按照我們預期的速度成長，這主要是因為我們聘請的第三方承包商的表現不佳。

To address this, we are bringing on the second contracted before year-end. In the meantime, lower mining rates at Pilar are expected to extend into the fourth quarter. As a result, we are adjusting our full year production guidance at Caraíba to 35,000 to 37,000 tonnes of copper in concentrate production. Despite production headwinds at Caraíba, our C1 cash costs for the quarter decreased 24.5% to $1.63 per pound of copper produced. In addition to higher copper grades, several positive factors contributed to this impressive performance.

為了解決這個問題，我們將在年底前簽訂第二份合約。同時，預計皮拉爾礦的採礦率較低將持續到第四季。因此，我們將 CaraÃba 的全年產量預期調整為 35,000 至 37,000 噸銅精礦產量。儘管卡拉伊巴銅礦生產面臨阻力，但本季我們的 C1 現金成本下降了 24.5%，至每磅銅 1.63 美元。除了銅品位較高之外，還有幾個正面因素促成了這令人印象深刻的表現。

As mentioned in our previous conference call, the tightness of the copper concentrate market enabled us to secure some of the most favorable treatment and refining terms we have never seen, which kicked in as of May 2024 for both Caraíba and Tucumã. Another important driver of our C1 cash cost performance has been a more favorable US dollar to Brazilian reals exchange, rate which averaged approximately BRL5.6 per US dollar in the third quarter.

正如我們在先前的電話會議中提到的那樣，銅精礦市場的緊張使我們能夠獲得一些我們從未見過的最優惠的處理和精煉條款，這些條款對於卡拉巴和圖庫姆均從 2024 年 5 月開始生效。我們 C1 現金成本表現的另一個重要驅動因素是美元對巴西雷亞爾的匯率更為有利，第三季平均匯率約為 5.6 巴西雷亞爾兌 1 美元。

Along with this, we also experienced higher gold byproduct credits with regards to improving gold prices. This reduction in unit operating costs supported improved operating margins at Caraíba. At Tucumã, we began the quarter on a strong note, completing our first 24-hour shift of continuous mill operation and producing our first saleable concentrate in July. This positive momentum continued through most of August as we gradually ramped up mill throughput.

除此之外，隨著金價上漲，我們的黃金副產品信用也得到了提升。單位營運成本的降低促進了 CaraÃba 營運利潤率的提高。在圖庫姆阿，我們以強勁的業績開始了本季度，完成了我們的第一個 24 小時連續磨機運行班次，並於 7 月生產了第一批可銷售的精礦。隨著我們逐步提高工廠產量，這種積極勢頭在整個八月持續。

However, as we approached higher throughput levels in late August, we encountered intermittent voltage fluctuations on the regional third-party power grid, which limited our ability to sustain higher throughput levels continuously. Initially, we were informed that the voltage fluctuations were due to regional wildfires, which led power utilities to reduce voltage throughout the transmission lines. Following a decrease of wildfire activity, the area, however, was struck by a severe windstorm causing a 10 day power outage that impacted industrial power consumers, including our Tucama operation.

然而，當我們在 8 月底接近更高的吞吐量水準時，我們遇到了區域第三方電網間歇性電壓波動，這限制了我們持續維持更高吞吐量水準的能力。最初，我們被告知電壓波動是由於區域性野火引起的，導致電力公司降低整個輸電線路上的電壓。然而，隨著野火活動減少，該地區卻遭遇了嚴重的風暴襲擊，導致停電 10 天，影響了包括我們 Tucama 業務在內的工業電力消費者。

After power was restored, we safely restarted mill operations on October 16. However, as we ramped up mill throughput once more, we have observed the recurrence of voltage oscillations initially attributed to wildfires. While the root cause remains under investigation, we've promptly deployed an engineering team to implement a mill power management solution allowing for continuous plant operations despite minor voltage fluctuations.

電力恢復後，我們於 10 月 16 日安全地恢復了工廠運作。然而，隨著我們再次提高工廠產量，我們觀察到最初由野火引起的電壓振盪再次出現。雖然根本原因仍在調查中，但我們已迅速派遣一個工程團隊來實施工廠電源管理解決方案，以確保即使電壓出現輕微波動，工廠也能連續運作。

Since implementing this solution last week, the plant has maintained continuous operations and increasing throughput daily and advancing toward full capacity. Due to the implemented power disruptions, total mill throughput and consequently, copper production for the third quarter was below plan, with throughput totaling 110,788 tonnes and copper production coming in at 839 tonnes of copper in concentrate.

自從上週實施解決方案以來，該工廠一直保持連續運營，產量每天都在增加，並朝著滿載生產的方向邁進。由於實施電力中斷，第三季工廠總產量及銅產量低於計劃，總產量為 110,788 噸，銅精礦產量為 839 噸。

The power issues encountered from late August through most of October have also extended our ramp up to commercial production. As a result, we are revising our full year copper production guidance for Tucama to a range of 8,000 to 11,000 tonnes in concentrate. In light of the anticipated delay in achieving commercial production, we are narrowing our C1 copper cash cost guidance to include only Caraiba, where we are maintaining cost guidance at $1.80 to $2 per pound for the reasons I outlined earlier.

從 8 月底到 10 月大部分時間遇到的電力問題也推遲了我們的商業生產進程。因此，我們將 Tucama 的全年銅產量預期修改為 8,000 至 11,000 噸精礦。鑑於預計實現商業化生產的延遲，我們將縮小 C1 銅現金成本指導範圍，僅包括 Caraiba，出於我之前概述的原因，我們將成本指導維持在每磅 1.80 至 2 美元。

Before discussing Xavantina's performance, I'd like to briefly address our expectations for copper production in 2025. While we are still finalizing our production numbers for next year's budget, we anticipate that Caraiba will initially underperform relative to previous 2025 guidance as a second development contract that ramps up in the first half of the year. However, we expect Tucama's production to trend towards the higher end of previous guidance due to positive grade reconciliation. Overall, at this stage, our preliminary production profile for 2025 suggests production will generally be in line with our previous guidance.

在討論Xavantina的表現之前，我想先簡單談談我們對2025年銅產量的預期。雖然我們仍在敲定明年預算的生產數字，但我們預計，作為第二份開發合同，Caraiba 最初的表現將低於之前的 2025 年指引，該合約將在上半年增加。然而，由於積極的品位調節，我們預計 Tucama 的產量將趨向於先前預期的更高水準。總體而言，在現階段，我們對 2025 年的初步生產狀況表明，產量將基本與我們先前的指導一致。

Turning now to our Xavantina operations, we delivered another quarter of strong performance with gold production totaling 13,485 ounces. As mentioned on our second quarter conference call, gold grades were expected to be lower in the second half of the year, leading to decreased production and higher unit costs in the third and fourth quarters. Consistent with these expectations, our third quarter C1 cash costs and all-in sustaining costs for the quarter came in at $539 and $1,034, respectively, per ounce of gold produced.

現在來看看我們的 Xavantina 業務，我們又一個季度表現強勁，黃金產量總計達到 13,485 盎司。正如我們在第二季電話會議上所提到的，預計下半年黃金等級將會下降，導致第三季和第四季產量下降和單位成本上升。與這些預期一致，我們第三季的 C1 現金成本和本季的全部維持成本分別為每盎司黃金 539 美元和 1,034 美元。

For the full year, we are reaffirming our increased gold production guidance range of 60,000 to 65,000 ounces and maintaining our reduced cost guidance range of $450 to $550 per ounce for C1 cash costs and $900 to $1,000 per ounce for all-in sustaining costs. Before I hand the call over to Makko and Wayne, I'll briefly cover our quarterly financial results.

就全年而言，我們重申將黃金產量指引範圍提高到 60,000 至 65,000 盎司，並維持 C1 現金成本每盎司 450 至 550 美元和全維持成本每盎司 900 至 1,000 美元的降低成本指引範圍。在將電話交給 Makko 和 Wayne 之前，我將簡要介紹我們的季度財務表現。

Our financial performance for the quarter reflects an expansion of operating margins, driven by a significant reduction in unit costs at our Caraiba operations and higher realized gold prices at Xavantina. This margin growth led to quarterly operating cash flows of $52.7 million and adjusted EBITDA of $62.2 million. Our liquidity position also remains strong with total balance sheet liquidity of $125.2 million at quarter end. As we continue ramping up production at Tucama, we believe we reached the cash flow inflection point in October and anticipate building additional liquidity throughout the end of the year.

我們本季的財務表現反映出營業利潤率的擴大，這得益於我們 Caraiba 業務的單位成本大幅降低以及 Xavantina 的實際黃金價格上漲。利潤率成長帶來季度營運現金流5,270萬美元及調整後息稅折舊攤提前利潤6,220萬美元。我們的流動性狀況依然強勁，季末資產負債表總流動性為 1.252 億美元。隨著我們繼續提高 Tucama 的產量，我們相信我們在十月已經達到了現金流的拐點，並預計在年底將建立額外的流動性。

I'll now pass the call to Makko to discuss our operating results in more detail. After which, Wayne will provide more detail on our financial results.

現在我將把電話轉給馬科，更詳細地討論我們的營運表現。之後，韋恩將提供有關我們財務業績的更多詳細資訊。

Thank you, Dave, and good morning, everyone. Before commenting on our third quarter operating performance, I want to start by saying that I'm truly honored to have been appointed the next CEO of Ero Copper. Having been with Ero since before our IPO, I take immense pride in what we've been able to achieve together over the past eight years. We have a strong underlying asset base an outstanding portfolio of growth projects in Brazil, a proven mine building team and an extremely dedicated global workforce. I'm excited deeply committed to continuing to serve our shareholders and to lead the sustainable execution of Ero's next stage of growth.

謝謝你，戴夫，大家早安。在評論我們第三季的營運表現之前，我首先要說的是，我非常榮幸被任命為 Ero Copper 的下一任執行長。自從我們首次公開募股之前我就一直在 Ero 工作，我對我們過去八年共同取得的成就感到無比自豪。我們擁有強大的基礎資產、在巴西的優秀成長專案組合、經驗豐富的礦場建設團隊和極為敬業的全球員工隊伍。我非常高興能夠繼續為我們的股東服務，並帶領 Ero 實現下一階段的永續發展。

Switching gears back to our operations and starting at Tucama, as David mentioned, we navigated a highly dynamic ramp-up environment over the past few months due to intermittent voltage variability that was compounded by a major windstorm-related disruption in early October. While these obstacles created some setbacks in the pace of overall ramp-up progress following a very successful July and August, I'm proud of the resilience of our engineering, project and operational teams on site, who in a joint effort with other major industrial users in the region were able to safely restore power to site in just 10 days.

讓我們回到我們的運營，從 Tucama 開始，正如 David 提到的那樣，過去幾個月裡，我們經歷了一個高度動態的上升環境，這是由於間歇性的電壓變化，而 10 月初的一次重大風暴相關中斷又加劇了這種情況。儘管在 7 月和 8 月取得了巨大成功之後，這些障礙對整體產能提升進度造成了一些挫折，但我對現場工程、專案和營運團隊的堅韌不拔感到自豪，他們與該地區其他主要工業用戶的共同努力，僅用 10 天就安全地恢復了現場電力。

In parallel, over the past few weeks, we work closely with our automation partners and our broader engineering group to adjust our mill drive to accommodate this voltage variability. I'm optimistic about the progress we are seeing and we've been able to achieve and sustain higher throughput levels at Tucama, since the implementation of this solution.

同時，在過去幾周里，我們與自動化合作夥伴和更廣泛的工程團隊密切合作，調整我們的磨機驅動器以適應這種電壓變化。我對我們所看到的進展感到樂觀，自從實施該解決方案以來，我們已經能夠在 Tucama 實現並維持更高的吞吐量水準。

It is worth mentioning that our recoveries and concentrate grades have continued to remain at or above design levels. During the second half of October, following restoration of power to site, we produced more copper from Tucama than all of Q3, averaging recoveries of around 90% and concentrate grades above our design target of 25%. With the capital spend of Tucama behind us and production copper sales increasing, we're confident that Tucama is going to be a fantastic operation.

值得一提的是，我們的回收率和精礦品位一直保持在設計水準或以上。10 月下半月，在現場恢復供電後，我們從 Tucama 生產的銅比第三季的產量還要多，平均回收率約為 90%，精礦品位高於我們 25% 的設計目標。隨著 Tucama 的資本支出結束以及生產銅銷售的增加，我們相信 Tucama 將會成為一家出色的公司。

At Caraiba, we saw a notable improvement in production and operating margins relative to the second quarter, driven largely by increased grades from the Pilar and Vermelhos mines. However, as Dave mentioned, our ability to execute on the plans we developed for the third quarter were impacted by underperformance of a third-party development contractor in the Pilar mine.

在卡賴巴，我們看到產量和營業利潤率與第二季度相比有顯著提高，這主要得益於皮拉爾 (Pilar) 和韋爾梅洛斯 (Vermelhos) 礦山品位的提高。然而，正如戴夫所提到的，我們執行第三季制定的計劃的能力受到了皮拉爾礦第三方開發承包商表現不佳的影響。

The lower achieved development rates have now been reflected in our revised guidance range for Caraiba. To improve access to high-grade stopes, and increased operating flexibility, we are mobilizing a second third-party contractor to site by year-end to support our development efforts in 2025.

較低的實現發展率現已反映在我們對 Caraiba 的修訂指導範圍內。為了改善高品位礦場的取得途徑並提高營運彈性，我們將在年底前調動第二家第三方承包商到現場，以支援我們在 2025 年的開發工作。

At Furnas, I am pleased to report that the Phase 1 work program has begun in earnest, with drill rigs mobilized to site in October and the first drill core of our program now coming to surface. Our primary focus for the remainder of this year and through 2025 will be to complete the 28,000-meter Phase 1 drill program and complete the scoping study as contemplated in the earning agreement.

在弗爾納斯，我很高興地報告，第一階段的工作計劃已經認真開始，鑽機在十月份調動到現場，我們計劃的第一個鑽芯現已浮出水面。今年剩餘時間和到 2025 年，我們的主要重點是完成 28,000 公尺第一階段鑽探計劃，並完成收益協議中設想的範圍界定研究。

I will now turn the call to Wayne to discuss our financial results.

現在我將把電話轉給韋恩，討論我們的財務表現。

Thank you, Makko. As Dave highlighted, our third quarter financial results benefited from an expansion in operating margins driven by a significant decrease in unit costs at Caraiba and higher realized gold prices at Xavantina. This resulted in higher adjusted earnings before interest tax depreciation and amortization of $62.2 million and adjusted net income attributable to owners of the company $27.6 million, or $0.27 per share on a fully diluted basis.

謝謝你，Makko。正如戴夫所強調的，我們的第三季財務業績受益於營業利潤率的擴大，這得益於 Caraiba 單位成本的大幅下降和 Xavantina 實際黃金價格的上漲。這導致調整後的息稅折舊攤銷前利潤增加 6,220 萬美元，歸屬於公司所有者的調整後淨利潤為 2,760 萬美元，或以全面攤薄計算每股 0.27 美元。

During the quarter, we took advantage of the rally in gold prices by opportunistically entering into zero cost collars on 2,500 ounces of gold per month from January 2025 to December 2025. These contracts establish a floor price of $2,200 per ounce and a ceiling price of $3,425 per ounce, allowing us to participate in gold price increases up to a level that is over 20% above the all-time high reached in October 2024. The total hedge volume of 30,000 ounces represents just over 50% of our projected 2025 gold production at our Xavantina operation.

在本季度，我們利用金價上漲的機會，從 2025 年 1 月到 2025 年 12 月期間每月對 2,500 盎司黃金實施零成本限制。這些合約設定了每盎司 2,200 美元的底價和每盎司 3,425 美元的上限價格，使我們能夠參與金價上漲，最高漲幅將比 2024 年 10 月的歷史最高點高出 20% 以上。總對沖量為 30,000 盎司，相當於我們 Xavantina 業務預計 2025 年黃金產量的 50% 多一點。

With respect to our foreign exchange hedge program, we reported an unrealized gain of $9.8 million and a realized loss of $3.4 million for the quarter. The total notional value of our foreign exchange derivative position through quarter end was approximately $327 million, consisting primarily of $315 million in zero-cost collars with a weighted average floor and ceiling of BRL523 and BRL608 per US dollar, respectively, is extending through the end of 2025.

關於我們的外匯對沖計劃，我們報告本季未實現收益為 980 萬美元，已實現損失為 340 萬美元。截至季末，我們的外匯衍生性商品部位的總名目價值約為 3.27 億美元，主要包括 3.15 億美元的零成本領圈，其加權平均下限和上限分別為每美元 523 巴西雷亞爾和 608 巴西雷亞爾，有效期至 2025 年底。

Our liquidity position at the end of the quarter remained strong at approximately $125 million. As Dave mentioned earlier, we believe we have passed a cash flow inflection point in October and expect our liquidity position to meaningfully increase its production and concentrate sales at Tucama ramp-up.

本季末，我們的流動資金狀況依然強勁，約 1.25 億美元。正如戴夫之前提到的，我們相信我們已經在十月份度過了現金流拐點，並預計我們的流動性狀況將顯著提高其產量並集中於 Tucama 增產的銷售。

I'll now pass the call back to David to share some closing thoughts.

現在我將把電話轉回給戴維，讓他分享一些最後的想法。

Thank you, Wayne, and thank you, everybody, for joining us today. Before I move into the Q&A session, I want to take a moment to express my gratitude to the entire Ero team. As I continue to be part of Ero's growth journey, I'm more than excited than ever about what lies ahead for us. I want to extend my best wishes to Makko and Gelson as they step into their new roles. I have full confidence they will exceed all expectations. I'd also like to thank Noel for his dedication and partnership over the past eight years. I'm incredibly proud of what we have achieved together, and I wish him the best in his next chapter of his life.

謝謝韋恩，也謝謝大家今天的參與。在進入問答環節之前，我想花點時間向整個 Ero 團隊表達我的感謝。隨著我繼續成為 Ero 成長之旅的一部分，我對我們的未來感到比以往任何時候都更加興奮。我想向馬科和格爾森致以最良好的祝愿，祝他們能夠擔任新的職位。我完全有信心他們將超出所有人的預期。我還要感謝諾埃爾過去八年來的奉獻和合作。我為我們共同取得的成就感到無比自豪，並祝福他在人生的下一篇章中一切順利。

Now I hand the call back to the operator to open the line for questions.

現在我將電話交還給接線員，以便開通熱線回答問題。

(Operator Instructions)

（操作員指令）

Ralph Profiti, Eight capital.

拉爾夫·普羅菲蒂（Ralph Profiti），八大資本。

Thanks operator. First off, David, Makko and Gelson, I offer my congratulations on the appointments, and Noel, congratulations on his retirement. Firstly, on Caraíba, if I may. It sounds like the contractor issues are going to have sort of a knock-on effect on dilution versus plan and reconciliation versus plan. I'm wondering if that's kind of what you meant by, sort of, the underperformance in the mine plan, not only in Q4, but sort of the first part of 2025. And if you can of help me understand kind of what degree versus plan are we impacting dilution and reconciliation?

謝謝接線生。首先，我對 David、Makko 和 Gelson 的任命表示祝賀，並對 Noel 的退休表示祝賀。首先，如果可以的話，我想談談卡拉伊巴 (Caraíba)。聽起來承包商問題將對稀釋與計劃以及和解與計劃產生連鎖反應。我想知道您所說的礦山計劃表現不佳是否就是這個意思，不僅是在第四季度，而且在 2025 年上半年。如果您能幫助我理解我們對稀釋和協調的影響程度與計劃如何？

Yeah. Thanks. Good question. And just to clarify, the issue with third-party development doesn't have to do with dilution or any modifying factors for the stopes. It more has to do with our ability to increase operational flexibility and access additional high-grade stopes that we had hoped would be in the plan for the second half of this year. Those are being shifted out into the first half of next year.

是的。謝謝。好問題。需要澄清的是，第三方開發的問題與稀釋或任何修改礦場的因素無關。這更與我們提高營運靈活性和獲取額外高品位礦場的能力有關，我們希望這能在今年下半年的計畫中實現。這些將被轉移到明年上半年。

And obviously, there's a knock on effect temp -- the entire plan with the underperformance of those development rates. So just to be clear, no impact on dilution, reconciliations or anything with respect to the stopes that are in the plan. It more has to do with the access and timing of getting to those stopes and mining that safely and successfully.

顯然，這些發展速度的不達標會對整個計畫產生連鎖反應。因此需要明確的是，這不會對稀釋、對帳或與計劃中的礦井相關的任何內容產生影響。這更多地與到達這些礦井並安全成功地進行採礦的途徑和時間有關。

Okay. Got you. Yes. Thank you for that clarification. And just coming to Tucama and Power. In the prepared comments, it sounded like the trips and these oscillations were happening at higher throughput. And I was just wondering, Tucama at the entire allotment of its 25 megawatts on the grid at the time of this disruption. And the reason I'm asking is whether or not these are sort of structural and systemic issues that perhaps require capital. And as part of your investigation happening with the public utility and could there be some capital needed to ensure long-term reliability of the system?

好的。明白了。是的。感謝您的澄清。剛剛來到 Tucama 和 Power。在準備好的評論中，聽起來這些行程和波動是在更高的吞吐量下發生的。我只是想知道，發生中斷時，Tucama 的 25 兆瓦電力全部分配給了電網。我問這個問題的原因是，這些是否是需要資金的結構性和系統性問題。作為您對公共事業單位調查的一部分，是否需要一些資金來確保系統的長期可靠性？

It's a really, really good question. With respect to the power grid and what is being done, it's a little bit more complicated in terms of how the whole power grid works up in Pará because there are three separate power providers. Our power provided ties into another network that on which this oscillation issue occurs. Frankly, we became aware of it once through our partners at Vale Base Metals once the Onca Puma mine came back from maintenance and started drawing power back from increased power from the grid.

這是一個非常非常好的問題。關於電網和正在進行的工作，帕拉整個電網的運作方式稍微複雜一些，因為有三個獨立的電力供應商。我們提供的電力與發生此振盪問題的另一個網路相連。坦白說，當 Onca Puma 礦場結束維護並開始從電網增加的電力中獲取電力時，我們透過 Vale Base Metals 的合作夥伴意識到了這一點。

The good news is with respect to that is this is a situation that Vale had been dealing with historically. They have been able to put in systems in their own operations with respect to dealing with this issue. We have worked with our contractor, ABB and working on the solution in and around. And for us, it really only affects our mill. It does not affect the rest of the operations. And so with regards to the mill, we have worked with them on software updates with regards to that, but we're not going to rest on that.

好消息是，淡水河谷先前就曾處理過此類情況。他們已經能夠在自己的營運中建立系統來處理這個問題。我們與承包商 ABB 合作，致力於在其內部及週邊地區尋找解決方案。對我們來說，它實際上只影響我們的工廠。它不會影響其餘操作。因此，就工廠而言，我們已經與他們合作進行軟體更新，但我們不會就此止步。

Similar to Onca Puma and some of the Vale operations are put in place. We are looking at putting another solution in place. The capital cost on these things is not excessive, it's a small amount of money, approximately $1 million with regards to putting one of these systems in, and I can leave it to Makko to talk more broadly with regards to what that system looks like and how it performs.

與Onca Puma類似，淡水河谷的一些業務也已到位。我們正在考慮採取另一種解決方案。這些東西的資本成本並不高，只是一筆小錢，安裝其中一個系統大約需要 100 萬美元，我可以讓 Makko 更廣泛地談論這個系統是什麼樣子以及它的性能如何。

Yeah. It's a good question. I think the main thing to take away from it is that the timing of the voltage oscillations that we experienced, I think were coincident although we're still working with our increased ramp-up to understand that. The solution itself, as Dave mentioned, two things were done. We immediately started engineering a contingency plan for a longer-term installation of a series transformer that allow us to accommodate that voltage volatility at our substation. But in parallel, working with ABB Engineering groups, we implemented the solution our mill to accommodate the variability there.

是的。這是個好問題。我認為，最主要的是，我們所經歷的電壓振蕩的時間是一致的，儘管我們仍在努力了解電壓的增加，但我認為這一點是一致的。解決方案本身，正如戴夫提到的，做了兩件事。我們立即開始製定應急計劃，以便長期安裝串聯變壓器，使我們能夠適應變電站的電壓波動。但同時，我們與 ABB 工程團隊合作，在工廠實施了解決方案，以適應那裡的變化。

So I'd say the engineering for the long-term solution has been in progress. As I said, at this stage, we view that as a contingency plan, not required based on what we've seen over the last week. But obviously, we're going to continue to monitor that and evaluate the implementation of that solution. I think the main message to take over in this call is that the permanent fix, if required, it's not a significant investment. It's around $1 million.

所以我想說長期解決方案的工程已經在進行中。正如我所說，在現階段，我們認為這是一個應急計劃，根據我們過去一周看到的情況，這不是必需的。但顯然，我們將繼續監控並評估該解決方案的實施情況。我認為這次電話會議要傳達的主要訊息是，如果需要的話，永久性的修復並不需要太多的投資。大約是100萬美元。

Got you. Okay. Yes. helpful answers. Thanks very much.

明白了。好的。是的。有用的答案。非常感謝。

Guillerme Rosita, Bank of America.

美國銀行的吉列爾姆·羅西塔 (Guillerme Rosita)。

Hi, thank you. Good morning, everyone. First, I'd like to also congratulate Dave on your journey and wish you best of luck in your new challenges. And also Marco, wish you best of success in your new role. So my first question is from Karra, I just wonder if you could go into a bit more detail of what you guys are seeing in this new guidance. If the top range is where you are targeting, then have some room to maybe you have some other performances to meet guidance or are you targeting the mid of the guidance? There is an upside risk to the top.

你好，謝謝。大家早安。首先，我也想祝賀戴夫的旅程，並祝你在新的挑戰中好運。還有馬可，祝福你在新的職位上一切順利。所以我的第一個問題來自卡拉，我只是想知道你們是否可以更詳細地介紹你們在這個新指南中看到的內容。如果您的目標是最高範圍，那麼是否還有一些空間，也許您還有其他表現可以滿足指導要求，或者您是否瞄準了指導要求的中間水平？頂部有上行風險。

Then a 2025 when you talk about under performing first half, should we expect something, the lines of the top end of the guidance? And just to understand what is the structure of what's going on there and what is circumstantial in terms of the contractor delays so that we can look to the coming years before the chat and my second swing. I completely agree that you are at a time of inflection in terms of cash generation specialists to ramp up and your cap bill goes down and then you start to generate a lot of cash.

那麼，當您談到 2025 年上半年表現不佳時，我們是否應該期待一些預期，即預期最高點的線？只是為了了解那裡發生的事情的結構以及承包商延誤的情況，以便我們可以在聊天和我的第二次轉變之前展望未來幾年。我完全同意你正處於現金產生專家的轉折時期，你的資本支出會下降，然後你開始產生大量的現金。

So the question is, where is that cash going? What are the priorities in terms of capital allocation? Just given the considerable underperformance of the stock recently? Does it make sense to open a buyback program? Would you rather pay dividends or would you rather take down your leverage first and think about that? Just trying to understand what are you thinking about? Thank you.

那麼問題是，這些現金流向了哪裡？在資金配置方面，有哪些優先考慮的事情？只是考慮到最近該股的表現相當不佳？開設回購計畫是否有意義？您寧願支付股息，還是寧願先降低槓桿率，然後再考慮這個問題？只是想了解您在想什麼？謝謝。

Yes. So great question. I'll take the first part of that and there was a few component parts of the question. So if I miss anything, just feel free to jump back in and let me know. But I think the primary question was on what's systemic versus structural or temporary in nature.

是的。這個問題問得真好。我將討論第一部分，該問題有幾個組成部分。所以如果我遺漏了什麼，請隨時回來告訴我。但我認為主要問題在於本質上什麼是系統性的，什麼是結構性的或暫時性的。

I think truly, the development delays that we're seeing, we see as a moment in time in terms of our ability to have enough flexibility in the Pilar mine to continue to access high-grade stopes. So we see that impacting, as Dave mentioned in the prepared remarks, we see that impacting, let's say, the first half of 2025. It's going to be a few quarters to get things back on track there.

我認為，我們看到的開發延遲確實是一個時刻，決定了我們是否有足夠彈性在皮拉爾礦場繼續進入高品位礦場。因此，我們看到這會產生影響，正如戴夫在準備好的演講中提到的那樣，我們看到這會產生影響，比如說，到 2025 年上半年。需要幾個季度的時間才能讓事情恢復正軌。

But overall, we're not seeing a major structural change in terms of the production volumes that we have over the next few years from Caraiba complex. Together, as I said, obviously, it's impacting this year because of that underperformance relative to our expectations. And we see that impacting in the next few quarters. But by the second half of 2025, I think it's fair to say that we expect to be back in a good position with respect to operating flexibility around these high-grade stopes. That will be aided by the efforts of a second third-party contractor that we're bringing on board.

但總體而言，未來幾年我們不會看到卡賴巴綜合礦場的產量有重大的結構性變化。總之，正如我所說，由於表現低於我們的預期，這顯然對今年產生了影響。我們看到這會產生未來幾季的影響。但到 2025 年下半年，我認為可以公平地說，我們預計將在這些高品位礦場周圍的營運靈活性方面重新處於良好地位。我們引入的第二家第三方承包商的努力將為此目標提供幫助。

I think that was probably covered a few of the different questions that were asked. But maybe before we get into capital allocation, maybe just pause there and see if there's any questions on the operating side that weren't answered.

我認為這可能涵蓋了所提出的一些不同問題。但在我們進入資本配置之前，也許可以先暫停一下，看看營運方面是否還有什麼問題沒有得到解答。

No, I think that was great, Marco. And just one thing to make it clear. When you guys look at the guidance this year, is the top end where you guys are targeting and then have some room now? Or are you targeting the middle of the range and then have some upside in reaching the top end.

不，我認為那很棒，馬可。只需說清楚一件事。當你們看看今年的指導方針時，最高限額是否是你們所瞄準的，現在還有一些空間嗎？或者你的目標是中間範圍，然後有一定的上升空間以達到最高端。

Yeah. Look, it's a great question. I mean, obviously, we're -- we've got a few months left in the year here. I think we gave ourselves a bit of room on production at Caribou. But I don't want to -- it's a very narrow range at this point, so I prefer not to comment on whether we're forecasting to be at the top end or bottom end.

是的。瞧，這是一個很好的問題。我的意思是，顯然，我們——今年還剩下幾個月的時間。我認為我們在 Caribou 的生產上給自己留了一些空間。但我不想——目前範圍非常窄，所以我不想評論我們預測的是最高還是最低。

Let me just add in. We've just gone through October. On the revised plan, the team is a little better than what the plan had forecast. So Makko doesn't want to go and the hesitancy is just making sure that we don't get too far over our skis. We're certainly -- with regards to the plan that Gelson put in place since he's arrived in terms of getting us back to where we need to be. October was better than what we expected. Let's see how November goes. But this is all about getting the team to get back on track start progressing every month and start keep improving. We've put in some conservative assumptions within this plan. Obviously, from our perspective, as senior leaders of the company, we'd like the team to beat the plan. And so let's see how we're going. October was a good start.

讓我補充一下。我們剛度過十月。在修改後的計畫上，球隊的表現比計畫預測的要好一些。所以 Makko 不想去，猶豫只是為了確保我們不會滑得太遠。我們當然會遵循蓋爾森上任以來所製定的計劃，讓我們回到我們需要的狀態。十月的情況比我們預期的還要好。讓我們看看十一月的情況如何。但這一切都是為了讓團隊重回正軌，開始每個月進步並不斷改進。我們在這個計劃中提出了一些保守的假設。顯然，從我們的角度來看，作為公司的高階領導，我們希望團隊能夠超越計畫。那麼讓我們看看進展如何。十月是一個好的開始。

Capital allocation.

資本配置。

Yeah. And on the capital allocation question, Guilherme, it's -- obviously, we -- the first priority will be to pay back the revolver that we have outstanding. I think once we are comfortable that Tucuma has hit commercial production is running smoothly in 2025, then we can start having a more fruitful discussion around how best to handle the excess cash flow that we expect to produce. I think that's a discussion that is always robust and continually happens at our Board. So I think next year will be at a point where we start to sort of formulate some plans on how best to start returning some of the cash to shareholders.

是的。關於資本配置問題，吉爾赫姆，顯然，我們的首要任務是償還未償還的循環信貸。我認為，一旦我們確信圖庫馬專案在 2025 年實現商業化生產並順利運行，我們就可以開始進行更富有成效的討論，討論如何最好地處理我們預計產生的過剩現金流。我認為這是我們董事會一直熱烈討論並且不斷進行的一個討論。因此我認為明年我們將開始製定一些計劃，以最好地向股東返還部分現金。

Great. Thank you very much guys.

偉大的。非常感謝大家。

Connor Mackay, Ventum Financial.

康納·麥凱（Connor Mackay），Ventum Financial。

Thanks, operator, and I echo the comments of congratulations there for Dave, Makko and the rest of the team on your new appointments. Just wondering at Pilar, what are the cost implications you guys are anticipating of adding the second mining contractor? Is that going to impact long-term sustaining capital or operating costs going forward?

謝謝，接線員，我也對 Dave、Makko 和團隊其他成員的新任命表示祝賀。只是想知道，Pilar，你們預計增加第二家採礦承包商會帶來哪些成本影響？這會影響未來的長期維持資本或營運成本嗎？

It's a great question, Connor. I think it's important to note with respect to third-party contractors that bringing someone on board in 2025 was always part of the plan. We obviously accelerated that into the second half of this year in response to some of the challenges we had in the first quarter. So it's really -- it's just a pull forward of that plan.

這是一個很好的問題，康納。我認為值得注意的是，對於第三方承包商來說，在 2025 年引進新員工始終是計畫的一部分。為了應對第一季遇到的一些挑戰，我們顯然在今年下半年加快了這一進程。所以這其實只是該計劃的推進而已。

So when looking at our longer-term outlook and plans for the company, we always had a development contractor in place starting in 2025 to increase the rate of development. We've had a third-party development contractor, in fact, the same third-party development contractor operating successfully throughout our operations for the last several years. So this isn't something new to us. And as I said, it was always part of the operating plan. The idea with the second third party contractor isn't so much to increase the rate of development versus what we have planned. It's more to distribute the load as a risk mitigation measure more than anything else.

因此，在審視公司的長期前景和計劃時，我們從 2025 年開始就始終有一個開發承包商來加快開發速度。我們已經有一個第三方開發承包商，事實上，同一個第三方開發承包商在過去幾年的整個營運過程中一直成功運作。所以這對我們來說並不是什麼新鮮事。正如我所說，它始終是營運計劃的一部分。與第二家第三方承包商合作的想法並不是為了提高我們計劃的開發速度。它更多的是一種將負載分配作為一種風險緩解措施。

Got it. Thank you. Tucama, so I assume with the comments surrounding targeting the upper end of 2025 guidance, production guidance out of Tucama. You're fairly confident that commercial production is within reach in the near future, probably late this year or early next year if I'm reading that correctly?

知道了。謝謝。Tucama，因此我推測圍繞 2025 年指引上限的評論是 Tucama 的生產指引。您是否確信在不久的將來就能實現商業化生產，如果我沒看錯的話，可能是在今年年底或明年年初？

Yeah. So let's be clear. Where we are right now, and we had to make sure everybody understood with regards to what we said, our preliminary work that we're doing right now is showing exactly what we said with regards to general guidance for next year.

是的。所以讓我們明確一點。就我們現在的情況而言，我們必須確保每個人都理解我們所說的話，我們現在正在做的前期工作正是在展示我們關於明年的一般指導方針。

At the moment, you are correct. We are working the mill is now in continuous operation that we are not seeing any voltage shutdowns of the mill. Makko and the team are now slowly ramping up that mill to commercial production levels. And as I anticipated, hope that we will be at commercial production within the next couple of months. It may slip into early 2025. Our hope is it's not. That's why we are using terminology like preliminary in general at this stage.

目前來說你是對的。我們正在操作，工廠現在處於連續運行狀態，我們沒有看到工廠的任何電壓關閉。目前，Makko 和他的團隊正在慢慢將該工廠提升至商業生產水準。正如我所預期的，希望我們能在接下來的幾個月內實現商業化生產。它可能會延續到 2025 年初。我們希望事實並非如此。這就是為什麼我們在這個階段使用「初步」這樣的術語。

Once we are better suited, once we've got through the next month with continuous operations and as we said, continuing to ramp up through commercial production levels, then we'll be in a much better position to be able to have a more fruitful conversation with everybody regarding that. And that will dictate into our guidance that we will release in January of next year. But as it stands right now, based upon the runway we see going forward here, what we see is there's no reason to change our general guidance for next year.

一旦我們更好地適應了，一旦我們度過了下個月的持續運營，並且正如我們所說的那樣，繼續提高商業生產水平，那麼我們將處於更好的位置，能夠與大家就此進行更富有成效的對話。這將決定我們明年 1 月發布的指導意見。但就目前情況而言，根據我們看到的未來​​發展趨勢，我們認為沒有理由改變我們對明年的整體指引。

Got it. Appreciate the clarity there. Thank you. That's all for me.

知道了。欣賞那裡的清晰度。謝謝。對我來說這就是全部了。

Roald Ross, Clarksons Securities.

羅爾德·羅斯（Roald Ross），克拉克森證券。

Yeah. Good morning, guys. Congrats on the quarter and congrats on progress with ramping up. So my first question is on Caraiba. I'm just curious if you can provide some color on the cash cost into the next year after having reach this low level?

是的。大家早安。恭喜本季的進展，也恭喜我們在提升方面的進展。我的第一個問題是關於 Caraiba 的。我只是好奇，在達到這個低水平之後，您是否可以提供一些關於明年現金成本的詳細資訊？

Yeah. Look, I think from a cash cost perspective, there's a couple of things that are creating some good tailwinds for us. And again, I mentioned this last quarter, although it didn't come up this quarter. In the early last year, we started what we call our full potential program. We've seen the benefits of that quarter-on-quarter. And so we're continuing to get supplier costs come down.

是的。看，我認為從現金成本的角度來看，有幾件事為我們創造了一些很好的順風。我上個季度曾提到這個問題，儘管本季沒有出現。去年年初，我們啟動了所謂的「充分潛力」計畫。我們逐季看到了帶來的好處。因此我們將繼續降低供應商成本。

I would say, specific to Q3, we started to see the full benefit of improved treatment refining charges, specifically related to, obviously, the overall treatment and refining charges are coming down, as David mentioned. But I think it's important to note that the gold price strength continued to benefit us pretty significantly in Q3.

我想說，具體到第三季度，我們開始看到改善處理精煉費用的全部好處，具體涉及，顯然，正如大衛提到的，整體處理和精煉費用正在下降。但我認為值得注意的是，金價的走強在第三季繼續為我們帶來相當大的利益。

And we also saw a weakening of the BRL during the quarter, which if you follow the Brazilian reals here over the last 24, 48 hours, has continued to be in a great spot for us in terms of improving margins relative to our expectations early in the year when we put our budget together. So I would say, major tailwinds that we're continuing to experience, obviously, the TCRCs, the strength of the gold price and the weakening of the BRL, overall tailwinds we expect to continue here for the next couple months.

我們也看到本季度巴西雷亞爾有所走弱，如果您追蹤過去 24 到 48 小時的巴西雷亞爾走勢，就會發現這對我們而言仍然非常有利，因為我們的利潤率相對於我們年初制定預算時的預期有所提高。因此我想說，我們將繼續經歷主要的順風，顯然是 TCRC、金價的走強以及巴西雷亞爾的走弱，我們預計總體順風將在未來幾個月繼續存在。

Great. Thank you. And also on the realized copper price, it seems like for this quarter that the discount looking at the three months LME is a bit bigger compared to last quarters. Is that something to comment on? Or is it just a coincidence? Or should we sort of think that this discount could be also this wide going forward?

偉大的。謝謝。另外，就實際銅價而言，本季倫敦金屬交易所三個月期銅的折扣似乎比上一季略大。這還有什麼好評論的嗎？或者這只是一個巧合？或者我們是否應該認為這種折扣今後還可能保持這麼大幅度？

No. Look, I mean, we had lots of commentary on previous calls about this. Really, if you look at Q3, the copper price did slide in Q3, and so all of that is often just driven around when we ship concentrate. We're not huge producer in terms of volume compared to some of our peers. So a lot of it is driven by the timing of shipments. And simply, when you can't take a simple mathematic average, when our shipments, the timing of our shipments does drive that. So, last quarter, it was a little higher than it was the quarter before. Obviously, the quarter before, we saw a very significantly strengthening copper price in Q2. I would suspect that most copper of our peers had a very tight range on their realized product, but that's all it is, nothing significant.

不。你看，我的意思是，我們對之前的電話會議中關於此事有很多評論。確實，如果你看看第三季度，銅價確實下滑了，所以所有這些通常只是受到我們運送精礦的影響。與我們的一些同行相比，從產量上來說，我們並不是大型生產商。因此，這很大程度取決於發貨時間。簡單來說，當你無法採取簡單的數學平均值時，我們的出貨時間確實會影響這一點。因此，上個季度的銷售額比前一個季度略高。顯然，在前一個季度，我們看到第二季度銅價顯著走強。我懷疑我們大多數同行的銅的實現產品範圍都非常狹窄，但僅此而已，沒有什麼重大意義。

Yeah. If you look at Q2, the LME average price was 4.42, Q3, the average LME price was 4.17, so that's why you would see that change in the realized price is related to directly the underlying metal price offset a small amount by changes in the gold price over the same period of time.

是的。如果你看第二季度，倫敦金屬交易所的平均價格為 4.42，第三季度，倫敦金屬交易所的平均價格為 4.17，這就是為什麼你會看到實現價格的變化與基礎金屬價格直接相關，而黃金價格的變化略有抵消。

Okay. Great. Makes sense. And lastly for Tucama, could you give us some color on the sustaining CapEx going forward as you reach nameplate capacity and everything is going as expected?

好的。偉大的。有道理。最後，對於 Tucama，當您達到額定產能並且一切按預期進行時，您能否向我們提供一些未來持續資本支出的資訊？

Yeah. Look, I don't think it's appropriate at this point. We're obviously putting together our plans for next year with respect to seeing any capital. We don't see a meaningful variation from what we put on the past in terms of seeing capital. Obviously, costs have increased relative to when we put out the feasibility study just generally in the sector. So I think that's probably a fair comment.

是的。瞧，我認為現在還不合適。顯然，我們正在製定明年的計劃，以便獲得資本。就資本而言，我們沒有看到與過去相比有什麼重大變化。顯然，與我們在該領域普遍發布可行性研究報告時相比，成本有所增加。所以我認為這可能是一個公正的評論。

But we're -- I'm going to hold comment on that until we put out our formal guidance in January. We're still focused right now on our ramp up and getting to the commercial production level. So I suggest we revisit that in January with our full year guidance for '25, because we'll have, again, put some clarity around what sustained CapEx is going to be. I expect it to be fairly low in the first year of production. Obviously, we don't have a lot of -- it's a brand-new plant. That will increase a bit over time.

但是我們 - 我將對此保留評論，直到我們在一月份發布正式指導意見。我們現在仍然專注於提高產量並達到商業生產水平。因此，我建議我們在 1 月重新審視 25 年全年業績指引，因為我們將再次明確持續資本支出是多少。我預計在生產的第一年這個數字會相當低。顯然，我們沒有很多——這是一個全新的工廠。隨著時間的推移，這一數字將會增加。

Okay, great. I appreciate that. Thank you.

好的，太好了。我很感激。謝謝。

Dalton Baretto, Canaccord.

道爾頓·巴雷托 (Dalton Baretto)，Canaccord。

Thanks operator. Good morning, guys. I'm a little surprised to see all these operating challenges in Q3, given that we were just on site in the second week of September. I appreciate all the color that's been given on the call so far. But it's still a little bit unclear to me at Caraiba, what the root cause of the productivity issue with the contractor is. I mean is this a new contractor? Was there something temporary that happened? Or is this more of a structural thing? And so I'm just wondering if you can comment on that. And then maybe as you're caught up with the second contractor mid-2025, whether you think it's sustainable on a go-forward basis at that point in time? Thanks.

謝謝接線生。大家早安。考慮到我們九月的第二週才剛剛到達現場，我對第三季度遇到的所有這些營運挑戰感到有點驚訝。我很感謝迄今為止通話中提供的所有詳細資訊。但在 Caraiba，我對承包商生產力問題的根本原因仍然有點不清楚。我的意思是這是一個新承包商嗎？是否發生了一些暫時的事情？還是這更多的是一個結構性的問題？所以我只是想知道您是否可以對此發表評論。然後也許當您在 2025 年中期趕上第二家承包商時，您是否認為它在那個時間點上是否可以持續發展？謝謝。

Yeah. Look, it's a great question, Dalton. And I think really what you're looking at. If I go back to - I think when we're talking about underperformance it's relative to the expectation and the performance against the contract we signed. If I go -- if I look at the curve of weekly increases, mobilization of equipment, mobilization and training of people, those were all behind.

是的。瞧，這是一個很好的問題，道爾頓。我想您確實正在關注什麼。如果我回過頭來——我認為當我們談論表現不佳時，它是與預期和我們簽訂的合約的表現有關的。如果我去——如果我看一下每週的成長曲線，設備動員、人員動員和培訓，這些都落後了。

So when I look over the past couple of weeks, I'd say the development rates that the contractor’s achieving are in line with the full mobilization, but that mobilization took much longer than we anticipated, and largely due to the availability of equipment and resources in Brazil. I think that's a theme probably throughout the sector, but it certainly impacted our contractor's ability to ramp up the development rates.

因此，當我回顧過去幾週的情況時，我會說承包商實現的開發速度與全面動員是一致的，但動員所花的時間比我們預期的要長得多，這在很大程度上是由於巴西的設備和資源的可用性。我認為這可能是整個行業的一個主題，但它肯定影響了我們的承包商提高開發速度的能力。

As I said over the past couple of weeks, they've increased their productivity and rates. So I don't see that as a systemic issue or like challenge in the operation itself. It more has to do with the timing and their ability to achieve higher development rates.

正如我過去幾週所說，他們提高了生產力和費率。所以我不認為這是一個系統性問題，也不認為這是一個營運本身的挑戰。這更多地與時機以及他們實現更高發展率的能力有關。

Okay. Thanks for that, Makko. And then maybe switching gears to Tucama as well. I think Dave said that you've only just installed that power management system last week. And I'm just wondering, I mean, have you tested it at full capacity and with your sort of regional neighbors running at full capacity yet? How comfortable are you that this is a permanent solution?

好的。謝謝你，Makko。然後也許也會轉向 Tucama。我認為戴夫說過你上週才剛安裝了那個電源管理系統。我只是想知道，您是否已經對它進行了滿載測試，並且與您的區域鄰居一起進行了滿載測試？您是否確信這是一個永久的解決方案？

Yeah. Look, it's a great question, Dalton. We took a couple of weeks to implement the solution. The first phase was to really measure the volatility and variability that we saw, to put it into context, the power arriving on-site the 138-kilovolt line, we see a millisecond frequencies, voltage dropped to the 120 range. It took a couple of weeks to measure that data fully so that we can engineer the appropriate solution.

是的。瞧，這是一個很好的問題，道爾頓。我們花了幾週時間來實施該解決方案。第一階段是真正測量我們看到的波動性和可變性，具體來說，當電力到達現場的 138 千伏特線路時，我們看到毫秒頻率的電壓下降到 120 範圍。我們花了幾週時間才全面測量了這些數據，以便設計出合適的解決方案。

As Dave mentioned, we put that in last week. We've seen the same levels of variability, that 120 range, and the mill hasn't stopped turning. So I would say that we're really encouraged, although it's only been a week. We've -- if you look at the operating performance since we implemented that solution, we've been able to address the root cause of the issue at our mill.

正如戴夫所提到的，我們上週就把它放進去了。我們看到了相同程度的變化，即 120 的範圍，而工廠卻沒有停止轉動。因此我想說，我們確實受到鼓舞，儘管才過了一周。如果您查看我們實施該解決方案以來的營運績效，您會發現我們已經能夠解決工廠問題的根本原因。

As I mentioned, there's a second solution more expensive around $1 million that we could implement, and we started the engineering of that solution in parallel a few weeks ago. But we're really encouraged by the results we've seen with just the bill adjustment that we've done to-date.

正如我所提到的，我們可以實施第二種解決方案，成本更昂貴，約 100 萬美元，幾週前我們就開始同時實施這個解決方案。但我們對迄今為止所進行的帳單調整所取得的成果感到非常鼓舞。

Dalton, I know I'm going to see you tomorrow, but just -- Makko's just highlighted something I think we need to clarify. These voltage interruptions are generally 0.7 of a millisecond. So these aren't voltage fluctuations that sit there for minutes or half an hour or hour, they are literally very small frequencies. In fact, when we first brought it up with the power provider, they said there wasn't an issue on the line, because their measuring equipment couldn't measure that volatility. The issue with regards to it was -- is the software package that was managing our mill, motor such that it had built-in safety frequencies with regards to changes and voltage down to that millisecond.

道爾頓，我知道我明天要去看你，但是——馬科剛剛強調了一些我認為我們需要澄清的事情。這些電壓中斷通常持續0.7毫秒。因此，這些不是持續幾分鐘、半小時或一小時的電壓波動，它們實際上是非常小的頻率。事實上，當我們第一次向電力供應商提出這個問題時，他們說線路上沒有問題，因為他們的測量設備無法測量這種波動性。與此相關的問題是——管理我們的工廠和電動馬達的軟體包是否具有與精確到毫秒的變化和電壓有關的內建安全頻率。

So what would happen was, if we encountered one within -- as Makko has pointed to me, 0.7 of a millisecond, the mill would go into standby mode. And then we have to just physically restart it. But the issue with regards to the restart is the whole system would take another 15 minutes to half an hour to get booted up again. And when that would happen over eight times in a day, you can imagine how your continuous ability to operate at your -- so we were able to operate in between these mills shutdowns by the safety equipment at capacity.

所以會發生什麼事？然後我們只需物理重新啟動它即可。但重啟的問題是整個系統需要另外 15 分鐘到半小時才能重新啟動。當這種情況在一天內發生超過八次時，你可以想像你的連續運作能力有多大——所以我們能夠在這些工廠停工期間，透過安全設備滿載運作。

But when we average out on a continuous basis, it was because the mill would go into a safe mode of the motor. This ABB solution merely extends out that safety margin on the downside with regards to more fluctuations. So what the mill motor will not do now is go into safe mode with regards to a drop in voltage. Still protects it, but a change at the voltage goes up, which we don't see, it's just merely fluctuations of the mill over milliseconds of change with regards to voltage frequency. So we've essentially just desensitized the software package to an extent to be able to allow that when that voltage drop occurs, the mill doesn't go into safe mode.

但當我們連續平均時，這是因為磨坊會進入馬達的安全模式。ABB 解決方案僅僅擴大了下行方面相對於更多波動的安全邊際。因此，軋機馬達現在不會做的就是因電壓下降而進入安全模式。仍然保護它，但電壓變化上升，這是我們看不到的，它只是電壓頻率在幾毫秒內變化的波動。因此，我們基本上只是在一定程度上降低了軟體包的靈敏度，以便當電壓下降時，工廠不會進入安全模式。

That's great color, Dave. Thank you. That sounds like more of aching pain type issue as opposed to a more structural issue. I appreciate that.

真漂亮的顏色，戴夫。謝謝。這聽起來更像是疼痛類型的問題，而不是結構性問題。我很感激。

Correct.

正確的。

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

問答環節到此結束。我想將會議交還給 David Strang 並請他作最後發言。

Thanks, operator. Again, thank you, everybody. This is the last time I will be leading one of these. The next quarterly will be Makko's lead. And I thank you, all. For those who have been following us over the last eight years, for the length of time you've put up with me, and for those new people who are following us in the newer times, I look forward to meaning some of you, if I haven't met you before, but certainly supporting Makko in his role of running these quarterly earnings calls in the future. So thanks very much. Enjoy your day. Bye-bye.

謝謝，接線生。再次感謝大家。這是我最後一次帶領這樣的活動。下一季將由 Makko 主導。我感謝你們所有人。對於那些在過去八年裡一直關注我們的人，對於那些長期以來忍受我的人，以及對於那些在較新時期關注我們的新人，我期待與你們中的一些人見面，如果我以前沒有見過你們，但肯定會支持 Makko 在未來擔任這些季度收益電話會議的職務。非常感謝。祝你過得愉快。再見。

This brings an end to today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

今天的電話會議到此結束。您可以斷開您的線路。感謝您的參與並祝您有愉快的一天。