Ero Copper Corp. (NYSE:ERO) Q2 2023 Earnings Call Transcript

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David Strang: Nothing right now with regards to that Stefan. We are working — we’ve mentioned that we’re working on a project with Soma. I think it’s a little early to get into too much detail with regards to what we’ve seen there. The team is also widening its viewpoints with regards to a more regional review in terms of the general area around the Tucumã project. So nothing new to report there with regards to that.

Stefan Ioannou: Okay. Great. Thanks very much.

Operator: The next question comes from Jackie Przybylowski with BMO Capital Markets. Please go ahead.

Jackie Przybylowski: Thanks for taking my question, and I’ll add my congratulations to Courtney as well. Well deserved. I was wondering on the changes to your CapEx guidance that you’ve given for 2023. Can you talk a little bit about which projects you’ve brought forward or added to the list for this year for the second half? Thanks.

Makko DeFilippo: Yes. For sure Jackie, this is Makko. So when you go through — I think it’s important to note that it’s a various number of line items. No single line item is above $2.5 million. These are a series of small investments, operational improvements in the areas related to some of the permanent infrastructure for the Deepening project which frankly, we won’t have the opportunity to go back into once the shaft is in operation. And we’re advancing some of the installation on our permanent infrastructure, as well as in tailings and the underground distribution system for the paste-fill line. Those are the main buckets. And as I said, it’s a series of investments and line items that cumulatively add up to about $15 million to $20 million.

Jackie Przybylowski: Can I ask — just as a follow-up, sorry. What prompted those projects to be brought forward? I know you mentioned coordinating with the shaft. But is this related to the fact that your balance sheet is in better shape than you had anticipated, or just the shaft is moving forward more quickly than you had expected?

David Strang: I’m going to take this one. In terms of Makko taking over the role as COO, he decided to do a comprehensive review. And he felt that certain projects needed to be moved up in terms of the overall profile of some of the items with regards to efficiencies in the business, along with some projects that he felt needed to be spent sooner rather than later.

Jackie Przybylowski: That makes a lot of sense. Thanks, very much.

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

David Strang: I’d just like to thank everybody again for coming on the call. I hope everybody is having a great summer. And as always, we are available for questions. And please feel free to reach out to Courtney, myself, Makko, Wayne if you have anything further you’d like to get a clarity on. Thanks again, operator and thanks to everybody. Bye-bye.

Operator: This concludes today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

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