Record Quarters, Zero Relief: Copper's Gap Keeps Growing

Rhea-AI Summary

Record Quarters, Zero Relief (May 8, 2026): industry-wide copper tightness and negative spot treatment charges highlight constrained supply and rising exploration activity. Ero Copper (NYSE: ERO) reported record Q4 2025 copper in concentrate and strong full-year results, while Salazar Resources consolidated 100% of the Santiago project and holds a 25% carried interest in El Domo.

Key figures: Ero full-year 2025 production 64,307 tonnes, adjusted EBITDA $409.7M, net income $263.7M; El Domo budget US$284M with production targeted July 2027.

AI-generated analysis. Not financial advice.

Positive

• Ero record Q4 copper production: 19,706 tonnes in concentrate
• Ero full-year 2025 production: 64,307 tonnes
• Ero adjusted EBITDA rose to $409.7M (nearly +90% YoY)
• Salazar consolidated 100% ownership of the Santiago copper-gold project
• Salazar holds 25% carried interest in El Domo (US$284M budget, production targeted July 2027)

Negative

• Global copper feed scarcity: spot treatment charges collapsed to negative $70/tonne
• Permitting delays and rising capital costs: timelines noted as >10 years
• Ero 2026 production is weighted to H2, creating near-term timing risk for output

Key Figures

Spot treatment charges: -$70 per tonne Copper price outlook: $11,100 per tonne BC exploration spend: $751 million +5 more

8 metrics

Spot treatment charges -$70 per tonne Global copper smelter treatment charges by late March

Copper price outlook $11,100 per tonne J.P. Morgan April outlook under bearish scenarios

BC exploration spend $751 million British Columbia mineral exploration spending in 2025

Drill interval 323 m @ 0.23% Cu, 0.40 g/t Au Newmont 1990s drilling at Santiago project

Drill interval 268 m @ 0.24% Cu, 0.43 g/t Au Additional Newmont hole at Santiago project

Rock chip samples 1,477 samples Surface sampling campaign across Santiago property

High-grade sample 28.1 g/t Au, 252 g/t Ag High-grade epithermal vein rock chip at Santiago

El Domo capex budget US$284 million Construction budget for El Domo copper-gold mine

Market Reality Check

Price: $1.2200 Vol: Volume 269,353 is 2.24x t...

high vol

$1.2200 Last Close

Volume Volume 269,353 is 2.24x the 20-day average of 120,034, indicating elevated trading activity pre‑news. high

Technical Price at $1.22 trades above the 200-day MA of $0.80 but sits 17.57% below the 52-week high of $1.48 and well above the 52-week low of $0.26.

Peers on Argus

HHLKF declined 8.96% while peers showed mixed moves: COPR fell 20.32%, LSANF dec...

HHLKF declined 8.96% while peers showed mixed moves: COPR fell 20.32%, LSANF declined 5.32%, GCUMF rose 5.96%, HDRSF gained 1.82%, and HNCUF was flat. This points to stock-specific pressure rather than a uniform copper-sector move.

Historical Context

5 past events · Latest: May 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 05	Drilling update	Positive	+2.4%	New La Verde drill results expanding higher-grade core and starter-pit potential.
Apr 30	Quarterly report	Positive	+0.6%	Private placement and cash position to accelerate Costa Fuego development.
Apr 08	Drilling result	Positive	+12.0%	Standout 725 m La Verde intercept including high-grade 62 m CuEq interval.
Feb 16	Drilling update	Positive	-5.9%	Further shallow high‑grade Cu‑Au results expanding near‑surface high-grade zone.
Jan 30	Quarterly report	Positive	-7.0%	Quarterly update on rapid expansion of La Verde’s gold‑rich high‑grade core.

Pattern Detected

Recent drill and project updates often produced positive reactions, but there are notable instances where seemingly positive news coincided with selloffs.

Recent Company History

Over the past months, Hot Chili (HHLKF) has repeatedly highlighted expanding high‑grade copper‑gold zones and advancing studies at Costa Fuego. Updates on standout La Verde intercepts and shallow high‑grade drilling, plus quarterly reports noting private placements and feasibility progress, marked key milestones between Jan 30 and May 5, 2026. Price reactions were mixed, with three positive and two negative moves, showing that strong technical news has not always ensured upside.

Market Pulse Summary

This announcement highlights a tightening global copper market, record peer operating metrics, and o...

Analysis

This announcement highlights a tightening global copper market, record peer operating metrics, and ongoing exploration success across major copper belts. For HHLKF, it adds macro context to prior Costa Fuego and La Verde updates that previously drove both gains and pullbacks. Investors may watch how sustained copper prices near $11,100 per tonne, project capex levels like US$284 million at El Domo, and future drilling or resource updates influence sentiment toward developing copper assets.

Key Terms

treatment charges, porphyry, lithocap, c1 cash cost, +3 more

7 terms

treatment charges financial

"spot treatment charges collapsing to negative $70 per tonne by late March"

Treatment charges are the amounts a medical provider lists for specific services or procedures on a bill before insurance discounts, negotiated rates or patient payments are applied. They show how a provider prices care and help investors gauge potential revenue and margin risk, but they are not the same as cash collected—think of them as a store's sticker price versus the actual sale price after discounts and returns.

porphyry technical

"large porphyry systems that can deliver scale into a widening deficit"

A porphyry is a type of large, underground mineral deposit that contains valuable metals such as copper, gold, or molybdenum, often spread over a wide area. Think of it as a giant underground treasure chest, where the metals are embedded in rock formations. These deposits are important to investors because they can be the source of significant resource extraction projects with the potential for substantial economic returns.

lithocap technical

"Previous operators touched only the near-surface lithocap."

A lithocap is a weathered, hard layer of rock near the surface that often forms over deeper mineral deposits; think of it as a crust that can hide valuable rocks beneath. For investors, finding a lithocap can be a useful clue during exploration because it may signal the presence of a larger, economically important ore body below, similar to spotting discolored soil that suggests something buried underneath. It helps guide drilling decisions and affects how risky or promising a mining prospect looks.

c1 cash cost financial

"full-year 2025 production to 64,307 tonnes at a C1 cash cost of $2.06 per pound"

C1 cash cost is a per-unit measure of the direct cash outlay required to produce a commodity, covering day-to-day expenses like extraction, processing and on-site labor but typically excluding long-term investments such as major equipment replacement or development projects. Investors use it like a baker watching the cost of ingredients per loaf: it shows operating efficiency and helps compare producers’ short-term profitability and cash generation before bigger capital needs are considered.

adjusted ebitda financial

"Full-year adjusted EBITDA increased nearly 90% year-on-year to $409.7 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

net debt leverage financial

"net debt leverage strengthening to 1.2x from 2.6x at the end of 2024"

Net debt leverage measures how many years it would take a company to pay off its debt using its normal operating earnings after subtracting cash on hand; mathematically it's the company’s total debt minus cash divided by its annual operating cash profit. Think of it like comparing a household’s mortgage balance (after savings) to its yearly take-home pay — higher numbers mean more financial strain and greater risk to investors, while lower numbers suggest more capacity to weather trouble or borrow for growth.

cueq technical

"725m grading 0.42% CuEq from 18m depth"

CuEq (copper equivalent) converts the value of multiple metals in a mineral deposit into the amount of copper that would have the same value, producing a single, comparable grade number. For investors it acts like converting different currencies into one money — simplifying comparison of deposits and potential revenue, but its accuracy depends on the metal prices, recovery rates and cost assumptions used to make the conversion, so detailed reports are still needed.

AI-generated analysis. Not financial advice.

Issued on behalf of Salazar Resources Ltd.

Equity-Insider.com News Commentary

VANCOUVER, BC, May 8, 2026 /PRNewswire/ -- Global copper smelters are now paying mines for the privilege of buying their concentrate, with spot treatment charges collapsing to negative $70 per tonne by late March^[1]. That is not a typo. The feed that keeps refineries running is so scarce that the traditional pricing relationship has flipped on its head, and executives at the Financial Times Commodities Global Summit confirmed in April that declining ore grades, ballooning capital costs, and permitting timelines stretching beyond a decade are choking off new supply precisely when electrification needs it most^[2]. This structural bottleneck is directing capital toward companies that already hold permitted, drill-tested ground in proven copper belts: Salazar Resources (TSXV: SRL) (OTCQB: SRLZF), Ero Copper (NYSE: ERO) (TSX: ERO), Capstone Copper (TSX: CS) (OTCPK: CSCCF), Hot Chili (TSXV: HCH) (OTCQX: HHLKF), and Hudbay Minerals (NYSE: HBM) (TSX: HBM).

J.P. Morgan's April outlook holds copper above $11,100 per tonne even under bearish scenarios, pointing to constrained project pipelines and ongoing mine shutdowns that show no sign of easing^[3]. The exploration side of the market is already repricing around that view: British Columbia posted a record $751 million in mineral exploration spending for 2025, with copper overtaking gold as the province's top target for the first time on record, as institutional capital rotates into large porphyry systems that can deliver scale into a widening deficit^[4].

Salazar Resources (TSXV: SRL) (OTCQB: SRLZF) has consolidated 100% ownership of its Santiago copper-gold project in southern Ecuador, bringing together a target that three decades of exploration data say could be significant. The 2,350-hectare concession sits in the Western Cordillera of the Ecuadorian Andes, where historical drilling, airborne geophysics, and recent surface sampling have outlined a coincident geochemical and geophysical anomaly measuring roughly 3 km by 2 km. The critical detail: the core of the interpreted porphyry system at depth has never been drill-tested.

Previous operators touched only the near-surface lithocap. Newmont drilled three shallow holes in the 1990s and hit broad copper-gold mineralization, including 323 metres grading 0.23% copper and 0.40 g/t gold in one hole, and 268 metres grading 0.24% copper and 0.43 g/t gold in another. Those results are encouraging on their own, but what makes Santiago stand out is that the mineralization was widening and strengthening toward the bottom of the holes, suggesting something larger sits below.

A 2019 airborne MobileMT geophysical survey added another layer of confirmation, identifying a large, coherent conductivity anomaly beneath the lithocap consistent with a sulphide-rich porphyry system. A follow-up surface sampling campaign in 2021 and 2022 collected 1,477 rock chip samples across the property. Within the 599-sample anomalous core zone, 47% returned copper values above 250 ppm and 34% returned gold above 0.11 g/t, with individual samples reaching as high as 21.1 g/t gold and 0.9% copper. High-grade epithermal veins on the property added further appeal, with rock chip samples returning up to 28.1 g/t gold and 252 g/t silver.

Santiago is one of several advancing projects for the company. Salazar Resources recently completed the acquisition of four copper-gold exploration properties from Silvercorp Metals, and earlier this year identified a high-priority copper-gold porphyry target at its Monja Project, where the best rock chip sample returned 4.77% copper and 1.12 g/t gold. On the development side, Salazar Resources holds a 25% carried interest in the El Domo copper-gold mine, now under construction on a US$284 million budget with production targeted for July 2027.

With a pipeline that spans early-stage exploration through near-production development, Salazar Resources is building exposure across multiple stages of the mining value chain in one of South America's most active copper-gold jurisdictions. The company maintains a wholly owned portfolio of projects in Ecuador, backed by a local team with a track record that includes involvement in several of the country's major discoveries.

Read this and more news for Salazar Resources at: https://equity-insider.com/2026/03/18/a-3-billion-partner-is-building-this-copper-gold-mine-salazar-keeps-25/

Other industry developments and happenings in the market include:

Ero Copper (NYSE: ERO) (TSX: ERO) reported record Q4 2025 copper production of 19,706 tonnes in concentrate, bringing full-year 2025 production to 64,307 tonnes at a C1 cash cost of $2.06 per pound produced. Full-year adjusted EBITDA increased nearly 90% year-on-year to $409.7 million, with cash flow from operations rising 171.7% to $395.1 million and net income attributable to owners reaching $263.7 million, or $2.53 per diluted share.

"We are pleased with our operating trajectory and performance in the fourth quarter, which delivered record quarterly copper production as well as the first tangible benefits of record quarterly gold from the Xavantina Operations following the commencement of our gold concentrate program in Q4," said Makko DeFilippo, President and CEO of Ero Copper. "The investments we made across our operations in 2025 translated into higher copper and gold production, stronger cash generation and an improved balance sheet through year-end."

Available liquidity at year-end was $150.4 million, with net debt leverage strengthening to 1.2x from 2.6x at the end of 2024 on the back of a $193.5 million year-on-year improvement in adjusted EBITDA. Ero Copper is reaffirming its 2026 guidance with consolidated copper production weighted toward the second half driven by mine sequencing and higher expected throughput at its Caraíba and Tucumã operations.

Capstone Copper (TSX: CS) (OTCPK: CSCCF) reported Q4 2025 copper production of 58,273 tonnes at a C1 cash cost of $2.31/lb, with full-year 2025 production of 224,764 tonnes at $2.44/lb, representing a 22% increase over 2024. Q4 adjusted EBITDA set a quarterly record at $308 million and revenue reached a new all-time high, reflecting completed project ramp-ups at Mantoverde and Cozamin.

"2025 was an inflection point for Capstone, representing tangible delivery on peer leading growth with our copper production up 22%," said Cashel Meagher, President and CEO of Capstone Copper. "Operationally, we met our consolidated production and cost guidance, driving record EBITDA generation. As we began to realize the benefits from completed projects, we also advanced our future phases of growth by sanctioning and beginning construction on Mantoverde Optimized, forming a partnership for our Santo Domingo Project, and initiating a new exploration program in the Mantoverde-Santo Domingo district."

Capstone Copper is advancing the Mantoverde Optimized expansion in Chile and the Santo Domingo partnership toward a sanctioning decision, with 2026 operational focus on delivering dependable results as the company progresses its district growth strategy through exploration.

Hot Chili (TSXV: HCH) (OTCQX: HHLKF) recorded its widest drill intercept to date at the La Verde copper-gold porphyry discovery within the 100%-owned Costa Fuego project in Chile's coastal Atacama region, with hole DKD039 intersecting 725m grading 0.42% CuEq from 18m depth. The result includes 62m grading 1.03% CuEq from 671m depth, extending La Verde's high-grade core approximately 200m down-dip, and a shallower 22m interval grading 0.71% CuEq from 42m that expands the emerging higher-grade starter pit.

Two drill rigs are now operating at La Verde with a third planned for mobilization in May, as Hot Chili accelerates definition of the starter pit geometry and integration of La Verde's growing high-grade core into Costa Fuego's broader resource base and mining inventory. Eleven additional holes across four diamond and seven reverse circulation holes are pending assay results, with Hot Chili focused on delivering a resource update and starter pit definition at Costa Fuego in 2026.

Hudbay Minerals (NYSE: HBM) (TSX: HBM) released updated mineral reserve estimates and a three-year production outlook projecting a 24% increase in consolidated copper production through 2028, driven by mine life extensions at three operations: Constancia extended to 2040, Snow Lake to 2041, and Copper Mountain to 2045. The company is also advancing Copper World toward a sanctioning decision in 2026 and integrating the Cactus project through the strategic acquisition of Arizona Sonoran.

"Our updated mineral reserve estimates and three-year production outlook demonstrate Hudbay's continued success from our exploration initiatives and an improved copper and gold production profile from our three long life operations in tier one mining jurisdictions in the Americas," said Peter Kukielski, President and CEO of Hudbay Minerals. "With our newly released guidance through 2028, consolidated copper production is expected to increase by 24%, complemented by continued strong gold exposure."

Hudbay Minerals operates copper and gold mines in Peru, Canada, and the United States, with the updated reserves and production outlook reflecting the company's strategy of brownfield exploration, mine life extension, and organic growth across its three long-life asset base.

FURTHER READING: https://equity-insider.com/2026/03/18/a-3-billion-partner-is-building-this-copper-gold-mine-salazar-keeps-25/

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SOURCES:

1. https://www.spglobal.com/market-intelligence/en/news-insights/research/2026/04/copper-gold-market-outlook-2026-prices-supply-mining-costs 
2. https://www.fastmarkets.com/insights/copper-supply-lags-demand-as-permitting-delays-lower-grades-policy/ 
3. https://www.jpmorgan.com/insights/global-research/commodities/copper-outlook 
4. https://www.canadianminingreport.com/blog/bc-exploration-spending-hits-record-high-as-copper-demand-surges-what-it-means-for-investors

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FAQ

What were Ero Copper's Q4 2025 production and full-year 2025 totals (NYSE: ERO)?

Ero reported 19,706 tonnes in Q4 2025 and 64,307 tonnes for full-year 2025. According to Ero, those figures reflect record quarterly copper production and higher throughput across operations.

How did Ero Copper perform financially in 2025 and what was adjusted EBITDA?

Ero posted $409.7M in adjusted EBITDA for 2025, nearly a 90% increase year-on-year. According to Ero, stronger cash generation and operational investments drove improved margins and net income of $263.7M.

What is Salazar Resources' position on the Santiago project and its exploration upside (symbol SRL/SRLZF)?

Salazar consolidated 100% ownership of the Santiago copper-gold project with an untested porphyry core. According to Salazar, historical drilling, geophysics and rock samples outline a 3 km by 2 km anomalous zone.

When is El Domo expected to begin production and what is the project budget?

El Domo is budgeted at US$284M with production targeted for July 2027. According to Salazar, the company holds a 25% carried interest in the project now under construction.

What market signal showed extreme copper tightness in early 2026?

Spot treatment charges fell to negative $70 per tonne by late March 2026, indicating extreme smelter demand for concentrate. According to industry sources cited, the pricing relationship flipped due to scarce feed.

Does Ero Copper expect 2026 production evenly across the year?

No. Ero reaffirmed 2026 guidance with consolidated production weighted toward the second half of the year. According to Ero, mine sequencing and expected higher throughput drive the H2 weighting.