ERO.TO · 2026-08-05 12:00:00

Ero Copper Reports Second Quarter 2026 Operating and Financial Results

Financials

August 5, 2026

(all amounts in US dollars, unless otherwise noted)

Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or the

“Company”) is pleased to announce its operating and financial results for t he three and six

months ended June 30, 2026 . Management will host a conference call tomorrow, Thursday,

August 6, 2026 , at 11:30 a.m. Eastern time to discuss the results. Dial-in details for the call

can be found near the end of this press release.

HIGHLIGHTS

• Consolidated Q2 copper production totaled 17,315 tonnes in concentrate at C1 cash

costs(1) of $2.42 per pound produced.

• Gold from the Xavantina Operations increased by 170% quarter-on-quarter, totalling

20,553 ounces during Q2.

◦ Mined gold production was 8,693 ounces at C1 cash costs (1) and All-in

Sustaining Costs ("AISC")(1) of $1,586 and $2,881 per ounce, respectively.

◦ Gold recovered from historic gold concentrate stockpiles increased to 11,860

ounces at C1 cash costs(1) and AISC(1) of $633 and $715 per ounce, respectively.

• Quarterly financial results reflect strong operational execution across the portfolio

which drove meaningful quarter-on-quarter growth in cash flow from operations and

adjusted EBITDA(1).

◦ Cash flow from operations was $137.9 million , an increase of approximately

49% from the previous quarter.

◦ Adjusted EBITDA (1) was $144.0 million , an increase of approximately 15%

quarter-on-quarter.

◦ Net income attributable to the owners of the Company was $89.5 million ($0.85

per share on a diluted basis).

◦ Adjusted net income attributable to the owners of the Company (1) was $87.4

million ($0.83 per share on a diluted basis).

• Available liquidity (1) increased by $35.5 million quarter-on-quarter to $181.7 million,

including $101.7 million in cash and cash equivalents and $80.0 million of availability

under the Company's senior secured revolving credit facility ("Senior Revolving Credit

Facility").

• Net debt(1) at quarter-end decreased by $38.0 million from Q1 2026 to $452.7 million,

with the Company's net debt leverage ratio declining to 0.8x(2). Subsequent to quarter-

end, the Company repaid an additional $25.0 million under the Senior Revolving Credit

Facility, bringing total repayments under the facility in 2026 to $60.0 million.

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• The Company’s foreign exchange hedge program, which has been designed to protect

approximately 70% of the Company's consolidated full-year operating and capital

costs at an average USD/BRL floor of 5.54, generated realized gains of $12.7 million in

Q2 2026, bringing year-to-date realized foreign exchange derivative gains to $19.9

million. These gains mitigated the cash flow impact of the stronger BRL on operating

costs and capital expenditures during the period. Assuming a USD/BRL exchange rate

of 5.10 through year-end, the Company’s hedge book is expected to generate an

additional $20 million to $25 million of realized gains in H2 2026, resulting in

approximately $40 million to $45 million of realized gains for the full year.

• Over the past 18 months, the Company has advanced OneEro, a company-wide

strategic program designed to enhance efficiency across its operations, people and

processes, unlock cost savings and position the business for its next phase of growth.

The program is beginning to deliver meaningful value across the business.

◦ The Company has secured annualized savings of approximately $10 to $15

million on renegotiated supply and third-party contracts, with further cost

reductions identified and in progress.

◦ Leveraging this integrated approach and favorable market conditions, the

Company has also negotiated improved copper smelting and refining terms,

expected to deliver more than $20 million in savings in 2026.

• The Company is reaffirming 2026 copper production and cost guidance; maintaining

gold production guidance and updating gold cost and capital expenditure guidance.

◦ Consolidated full-year copper production guidance is maintained at 67,500 to

77,500 tonnes , with production expected to be higher in H2 2026 at both

copper operations. At the Caraíba Operations, production is expected to benefit

from higher anticipated plant throughput and sequentially higher mined and

processed copper grades, while at the Tucumã Operation, sustained higher

throughput rates from ongoing process improvements are expected to offset

lower planned copper grades.

◦ Consolidated copper C1 cash cost (1) guidance is maintained in the range of

$2.15 to $2.35 per pound produced. Costs are expected to decline sequentially

through H2 2026, driven by higher planned copper grades and production at the

Caraíba Operations.

◦ Mined gold production guidance at the Xavantina Operations is maintained at

40,000 to 50,000 ounces, with production expected at the low end of the range

and significantly weighted to H2 2026 as mining rates continue to increase

following the installation and tie-in of ventilation and cooling infrastructure in

H1 2026. Gold concentrate sales volumes are expected to increase significantly

in H2 2026 with drier seasonal conditions, along with the commissioning of a

mobile filter press and industrial dryer in late Q2 2026, both of which are

expected to meaningfully reduce concentrate drying times.

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◦ C1 cash cost(1) and AISC(1) guidance for mined gold production at Xavantina has

been updated to $1,100 to $1,350 per ounce and $2,200 to $2,700 per ounce,

respectively, reflecting production volumes at the low end of the maintained

guidance range.

◦ Full-year capital expenditure guidance has been increased slightly to $ 285 to

$330 million to reflect the approval of approximately $10 million for a new

powerline at Xavantina to strengthen site infrastructure, support future growth

opportunities and reduce power transmission rates.

• At the Furnas Copper-Gold Project (“Furnas” or the “Project”), exploration and

technical work continued to support advancement toward a Pre-Feasibility Study

(“PFS”) expected in 2027. Assay results from the 17,000-meter Phase 2 drill program

and the first 7,000 meters of the ongoing 45,000-meter Phase 3 drill program continue

to demonstrate high-grade continuity within the SE and NW zones, along with

extensions of mineralization at depth and along strike near planned underground

infrastructure outlined in the Preliminary Economic Assessment (“PEA”). During Q2

2026, the Company completed over 16,000 meters of drilling at Furnas, bringing year-

to-date drilling to over 31,000 meters, while advancing permitting, geotechnical,

hydrogeological, environmental and metallurgical work streams.

"Ero delivered a solid second quarter, generating strong cash flow and continuing to deliver

on our commitment to deleverage the balance sheet. The progress we have made over the

past 18 months has materially strengthened the Company's financial position and is

delivering true value to our business - core commitments we made to our shareholders in

early 2025," said Makko DeFilippo, President & Chief Executive Officer.

“Our financial progress is being underpinned by operational execution across the portfolio. At

Caraíba, we remain on track to achieve another annual plant throughput record in 2026,

approximately 20% above 2025 levels. At Tucumã, plant throughput increased 27% quarter-

on-quarter, and our tailings filtration expansion is now partially complete and remains on

track for completion by year-end. Xavantina also delivered a significant improvement in

mining and processing performance compared to the first quarter, together with a substantial

increase in gold recovered from historic concentrate stockpiles. We are seeing true benefits of

our OneEro strategic initiative and are entering the second half with momentum across all

three operations and a clear line of sight to further production and cash flow growth. After an

excellent Q2, we believe Ero is well positioned to deliver a strong second half of 2026."

(1) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable

to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures

in its Management’s Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of

Non-IFRS Measures section at the end of this press release.

(2) The Company's net debt leverage ratio as of June 30, 2026 of 0.8x was calculated as net debt of $ 452.7 million divided

by trailing 12-month adjusted EBITDA of $533.1 million.

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SECOND QUARTER REVIEW

The Caraíba Operations

• The Caraíba Operations produced 8,351 tonnes of copper in concentrate during the

quarter at a C1 cash cost(1) of $2.76 per pound produced.

• Quarterly production was driven by slightly higher plant throughput and recovery

rates, offset by lower planned copper grades. C1 cash costs (1) improved to $ 2.76 per

pound of copper produced, as inflationary pressures on input costs and a stronger BRL

were offset by lower smelting and refining charges.

The Tucumã Operation

• The Tucumã Operation produced 8,964 tonnes of copper in concentrate during the

period at C1 cash costs(1) of $2.10 per pound produced.

• Production increased quarter-over-quarter as plant throughput continued to improve

sequentially, as expected, partially offset by lower planned processed copper grades.

C1 cash costs (1) increased modestly, reflecting lower planned grades, inflationary

pressures on input costs and a stronger BRL.

• The Company completed a planned expansion of Tucumã’s existing tailings filtration

system at the end of Q2 2026, increasing capacity by approximately 8%. Additional

modular filters are expected to be installed and commissioned in H2 2026 to further

augment tailings filtration capacity. The associated plant and production benefits have

not been incorporated into Tucumã’s 2026 guidance ranges.

The Xavantina Operations

• Gold from the Xavantina Operations totaled 20,553 ounces, representing an increase

of 170% compared to Q1 2026.

• Mine production increased nearly 60% to 8,693 ounces, supported by higher mining

rates and improved access to higher-grade stopes following the tie-in of ventilation

and cooling infrastructure. Consequently, gold production C1 cash costs (1) and AISC (1)

improved by 25% and 35%, respectively, to $1,586 and $2,881 per ounce.

• Gold recovered from historic concentrate stockpiles increased significantly to 11,860

ounces at C1 cash costs (1) and AISC (1) of $ 633 and $ 715 per ounce, respectively,

following the end of the rainy season.

• Gold sales increased approximately 65% to 17,016 ounces, comprising 6,663 ounces

of gold doré and 10,353 ounces of gold in concentrate, including gold recovered from

historic concentrate stockpiles. Sales volumes from the historic concentrate stockpiles

are expected to benefit from drier seasonal conditions through the remainder of the

year and from a mobile filter press and industrial dryer commissioned on site at the

end of Q2 2026.

(1) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable

to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures

in its Management’s Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of

Non-IFRS Measures section at the end of this press release.

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OPERATING HIGHLIGHTS

2026 - Q2 2026 - Q1 2025 - Q2 2026 - YTD 2025 - YTD

Copper (Caraíba Operations)

Ore Mined (tonnes) 1,098,614 985,577 792,764 2,084,191 1,489,003

Ore Processed (tonnes) 1,074,182 1,072,209 791,946 2,146,391 1,484,847

Grade (% Cu) 0.87 0.93 1.27 0.90 1.23

Recovery (%) 89.0 88.3 91.1 88.6 90.7

Cu Production (tonnes) 8,351 8,826 9,162 17,177 16,519

Cu Production (000 lbs) 18,411 19,459 20,199 37,870 36,418

Cu Sold in Concentrate (tonnes) 7,926 9,205 9,387 17,131 16,336

Cu Sold in Concentrate (000 lbs) 17,474 20,294 20,697 37,767 36,015

Cu C1 cash cost(1) $ 2.76 $ 2.79 $ 2.07 $ 2.77 $ 2.13

Copper (Tucumã Operation)

Ore Mined (tonnes) 590,600 456,684 798,811 1,047,284 1,127,102

Ore Processed (tonnes) 715,415 563,717 418,699 1,279,132 713,013

Grade (% Cu) 1.44 1.66 1.74 1.53 1.92

Recovery (%) 88.2 88.3 85.4 88.2 87.2

Cu Production (tonnes) 8,964 8,461 6,351 17,425 11,418

Cu Production (000 lbs) 19,763 18,652 14,002 38,415 25,173

Cu Sold in Concentrate (tonnes) 8,581 8,751 5,968 17,332 11,136

Cu Sold in Concentrate (000 lbs) 18,918 19,292 13,158 38,210 24,551

Cu C1 cash cost(1)(2) $ 2.10 $ 1.97 $ — $ 2.04 $ —

Gold (Xavantina Operations)

Ore Mined (tonnes) 49,484 32,820 37,829 82,304 71,057

Ore Processed (tonnes) 48,564 37,128 37,829 85,692 71,057

Grade (g / tonne) 6.20 5.66 7.11 5.97 6.99

Recovery (%) 89.8 81.3 88.7 86.3 89.6

Au Production (oz) 8,693 5,495 7,743 14,188 14,381

Historic Au Concentrate Recovered (oz) 11,860 2,112 — 13,972 —

Au Sold in Doré (oz) 6,663 6,019 8,276 12,682 14,110

Au Sold in Concentrate (oz)(3) 10,353 4,311 — 14,664 —

Au Production C1 cash cost(1) $ 1,586 $ 2,120 $ 1,115 $ 1,793 $ 1,108

Au Production AISC(1) $ 2,881 $ 4,441 $ 2,234 $ 3,485 $ 2,231

Historic Au Concentrate C1 cash cost(1) $ 633 $ 915 — $ 676 —

Historic Au Concentrate AISC(1) $ 715 $ 1,032 — $ 763 —

(1) Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the

three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press

release.

(2) The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, copper C1 cash

costs for the Tucumã Operation reflects costs from Q3 2025 onward only.

(3) Gold sold in concentrate includes gold ounces produced in flotation and the historic gold concentrate stockpile.

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FINANCIAL HIGHLIGHTS

($ in millions, except per share amounts)

2026 - Q2 2026 - Q1 2025 - Q2 2026 - YTD 2025 - YTD

Revenues $ 284.3 $ 263.2 $ 163.5 $ 547.5 $ 288.6

Gross profit 121.4 105.9 67.3 227.3 122.8

EBITDA(1) 159.8 175.5 114.2 335.3 232.0

Adjusted EBITDA(1) 144.0 125.2 82.7 269.2 145.9

Cash flow from operations 137.9 92.8 90.3 230.6 155.7

Net income 90.7 109.3 71.0 200.1 151.7

Net income attributable to owners of the

Company 89.5 108.8 70.5 198.3 150.8

Per share (basic) 0.86 1.04 0.68 1.90 1.46

Per share (diluted) 0.85 1.04 0.68 1.87 1.45

Adjusted net income attributable to

owners of the Company(1) 87.4 72.4 48.1 159.8 84.0

Per share (basic) 0.84 0.69 0.46 1.53 0.81

Per share (diluted) 0.83 0.69 0.46 1.51 0.81

Cash, cash equivalents, and short-term

investments 101.7 91.2 68.3 101.7 68.3

Working capital (deficit)(1) 87.7 66.2 (33.5) 87.7 (33.5)

Available liquidity(1) 181.7 146.2 113.3 181.7 113.3

Net debt(1) 452.7 490.7 559.1 452.7 559.1

(1) Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the

three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press

release.

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2026 GUIDANCE

Consolidated copper production guidance is maintained in the range of 67,500 to 77,500

tonnes, with production expected to be second-half weighted at both copper operations. At

the Caraíba Operations, H2 2026 production is expected to benefit from higher grades from

planned mine sequencing along with higher throughput levels. Production at the Tucumã

Operation is expected to be modestly higher in H2 2026 as sustained higher plant

throughput rates from ongoing process improvements are expected to offset lower grades.

At Xavantina, gold production from mining and processing operations is expected at the low

end of the guided range of 40,000 to 50,000 ounces in 2026, reflecting the impact of

extended downtime in H1 2026 related to the installation and tie-in of ventilation and cooling

infrastructure and a slower ramp-up of mining activities in Q2. Gold production is expected to

increase sequentially through the remainder of the year, with full-year production projected

to be significantly second-half weighted.

Gold concentrate sales volumes are expected to increase significantly in H2 2026 with drier

seasonal conditions and the commissioning of a mobile filter press and industrial dryer in late

Q2 2026, which are expected to meaningfully reduce concentrate drying times. Gold

concentrate sales from historic stockpiles are not included in Xavantina's guidance ranges,

which capture only production from mining and processing operations.

Consolidated copper C1 cash cost(1) guidance is maintained in the range of $2.15 to $2.35 per

pound produced. Costs are expected to decline sequentially through H2 2026, driven by

increased production and higher processed grades at the Caraíba Operations as well as the

expected benefits from higher byproduct revenues and improved smelting and refining terms

relative to original guidance. If the current strength of the Brazilian real and inflationary

pressures associated with the U.S.-Iran conflict persist through the remainder of the year, the

Company estimates potential incremental impacts of approximately $0.10 per pound on

reported consolidated copper C1 cash costs (1). The cash impact associated with the stronger

Brazilian real is expected to be offset by approximately $40 million to $45 million of full-year

realized gains from the Company’s foreign exchange hedge program, assuming a USD/BRL

exchange rate of 5.10 through year-end.

C1 cash cost(1) and AISC(1) guidance for Xavantina's mined gold production has been updated

to $1,100 to $1,350 per ounce and $2,200 to $2,700 per ounce, respectively, reflecting

production volumes that are expected to be at the low end of the maintained guidance range.

Unit costs are expected to decline through H2 2026 as production volumes increase. If the

current strength of the Brazilian real and inflationary pressures associated with the U.S.-Iran

conflict persist through the remainder of the year, the Company estimates potential

incremental impacts of approximately $100 per ounce on reported C1 cash costs (1) for mined

gold. The cash impact of the stronger Brazilian real is expected to be offset by realized gains

from the Company’s foreign exchange hedge program.

Total capital expenditure guidance has been updated to $ 285 to $330 million, reflecting the

approval of approximately $10 million for a new powerline at Xavantina to strengthen site

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infrastructure, support future growth opportunities and reduce power transmission rates. If

the current strength of the Brazilian real and inflationary pressures associated with the U.S.-

Iran conflict persist through the remainder of the year, the Company estimates potential

incremental impacts of approximately $20 million to $25 million on reported capital

expenditures. The cash impact of the stronger Brazilian real is expected to be offset by

realized gains from the Company’s foreign exchange hedge program.

2026 Production and Cost Guidance

Previous Guidance Current Guidance

Consolidated Copper Production (tonnes)

Caraíba Operations 35,000 - 40,000 35,000 - 40,000

Tucumã Operation 32,500 - 37,500 32,500 - 37,500

Total Copper 67,500 - 77,500 67,500 - 77,500

Consolidated Copper C1 Cash Cost ($/lb)(1)

Caraíba Operations $2.30 - $2.50 $2.30 - $2.50

Tucumã Operation $1.95 - $2.15 $1.95 - $2.15

Consolidated Copper Operations $2.15 - $2.35 $2.15 - $2.35

The Xavantina Operations

Au Production (ounces) 40,000 - 50,000 40,000 - 50,000

Gold Production C1 Cash Cost(1) ($/oz) $1,000 - $1,250 $1,100 - $1,350

Gold Production AISC(1) ($/oz) $2,000 - $2,500 $2,200 - $2,700

Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and

continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company’s

SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risks

factors.

(1) Please refer to the section titled "Reconciliation of Non-IFRS Measures" within this Press Release.

2026 Capital Expenditure Guidance

Figures presented in the table below are in USD millions.

Previous Guidance Current Guidance

Caraíba Operations $170 - $185 $170 - $185

Tucumã Operation $35 - $45 $35 - $45

Xavantina Operations $40 - $50 $50 - $60

Furnas Copper-Gold Project, Other Exploration & Corporate $30 - $40 $30 - $40

Total $275 - $320 $285 - $330

Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade

and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company’s

most recent AIF and Management of Risks and Uncertainties in the MD&A for complete risk factors.

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