Mr. David Strang reports

ERO COPPER REPORTS FIRST QUARTER 2023 OPERATING AND FINANCIAL RESULTS

Ero Copper Corp. has released its operating and financial results for the three months ended March 31, 2023. (Amounts are in U.S. dollars except per-share amounts.) Management will host a conference call tomorrow, Tuesday, May 9, 2023, 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:

• Copper production of 9,327 tonnes at C1 cash costs* of $1.70 per pound of copper produced;
• Record gold production of 12,443 ounces at C1 cash costs* and all-in sustaining costs (AISC)* of $436 and $946, respectively, per ounce of gold produced;
• Strong quarterly financial results included:
  • Net income attributable to the owners of the company of $24.2-million (26 cents per share on a diluted basis);
  • Adjusted net income attributable to the owners of the company* of $22.5-million (24 cents per share on a diluted basis);
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)* of $48.2-million;
• Available liquidity at quarter-end of $386.6-million included cash and cash equivalents of $209.9-million, short-term investments of $26.7-million, and $150.0-million of undrawn availability under the company's senior secured revolving credit facility;
• Execution of strategic initiatives continues to position the company for significant near-term organic growth:
  • Construction of the Tucuma project reached nearly 30-per-cent physical completion as of quarter-end with over 85 per cent of planned capital expenditures under contract;
  • At the Xavantina operations, development of the Matinha vein remains on schedule with production expected to commence in second half 2023;
  • The Caraiba operations' Pilar 3.0 initiative on track with shaft presink activities commencing on schedule subsequent to quarter-end;
• 2023 production, operating cost and capital expenditure guidance reaffirmed.

* These are non-international financial reporting standard measures, do not have a standardized meaning prescribed by IFRS and might not be comparable with 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 months ended March 31, 2023.

"Our solid operating performance in the first quarter was bolstered by a favourable metal price environment reflective of the accelerating decarbonization movement," said David Strang, chief executive officer. "During the quarter, we also made strong progress on our key growth projects with the Tucuma project and the Pilar mine's new external shaft reaching approximately 30-per-cent and 20-per-cent physical completion, respectively, as of quarter-end.

"Looking ahead to the remainder of the year, we anticipate increased production levels driven by planned mine sequencing and the completion of additional growth projects at our operations. We expect commencement of mining from the Matinha vein to result in higher gold production at our Xavantina operations in the second half of the year. At the Caraiba operations, ramp-up and commissioning of the new ball mill during the fourth quarter is expected to drive higher mill throughput levels and copper production over the same period.

"We are proud to say that, with each quarter, the ongoing execution of our peer-leading organic growth strategy is bringing our company closer to doubling copper production to over 100,000 tonnes in 2025 and achieving higher sustained gold production levels of 55,000 to 60,000 ounces per year beginning in 2024. As the outlook for both metals continues to strengthen, the timing of our growth trajectory couldn't be better."

Management changes

Anthea Bath has ceased as chief operating officer by mutual agreement with the company. The company would like to take this opportunity to express its gratitude for Ms. Bath's contributions over the past five years. Her dedication and hard work have been greatly appreciated, and the executive team wishes her all the best in her future endeavours.

The board has appointed Makko DeFilippo as president and chief operating officer of the company. Mr. DeFilippo, who has been with the company since 2017, has served as president of the company since January, 2021, and prior to that as vice-president, corporate development.

2023 production and cost guidance

The Caraiba operations are expected to produce 44,000 to 47,000 tonnes of copper in concentrate in 2023 with Q1 2023 expected to be the lowest production quarter of the year, as previously noted. Production from the Caraiba operations is expected to be slightly weighted toward second half 2023 due to higher anticipated mill throughput volumes during ramp-up and commissioning of the new ball mill installation in fourth quarter 2023. Higher mined and processed copper grades are also expected through the rest of the year based on planned stope sequencing.

C1 cash costs at the Caraiba operations are expected to be between $1.40 and $1.60 per pound of copper produced in 2023 with higher anticipated copper grades and production expected to result in lower unit operating costs in the remaining quarters of the year. While the company has resumed shipments to its domestic smelter on a limited and prepaid basis, the associated reduction in concentrate sales costs has been offset to date by a stronger Brazilian-real-to-U.S.-dollar exchange rate.

At the Xavantina operations, the company is reaffirming its 2023 gold production guidance range of 50,000 to 53,000 ounces with slightly higher gold production expected in second half 2023 due to increased mill throughput volumes following the expected commencement of production from the Matinha vein.

The company is also reaffirming its full-year cost guidance for the Xavantina operations with C1 cash costs expected to be between $475 and $575 per ounce of gold produced and AISC expected to be $725 to $825 per ounce of gold produced.

The company's cost guidance for 2023 assumes a U.S.-dollar/Brazilian-real foreign exchange rate of 5.30, a gold price of $1,725 per ounce and a silver price of $20 per ounce.

                       2023 GUIDANCE 

Caraiba operations                                        
Copper production (tonnes)                    44,000-47,000
C1 cash cost (U.S.$/lb) (1)                     $1.40-$1.60
                                                          
Xavantina operations                                       
Gold production (ounces)                      50,000-53,000
C1 cash cost (U.S.$/oz) (1)                       $475-$575
All-in sustaining cost (AISC) (U.S.$/oz) (1)      $725-$825

(1) These are non-IFRS measures, do not have a 
standardized meaning prescribed by IFRS and might 
not be comparable with similar financial measures 
disclosed by other issuers. 

2023 capital expenditure guidance

The company's capital expenditure guidance for 2023 assumes a U.S.-dollar/Brazilian-real foreign exchange rate of 5.30 and has been presented in millions of U.S. dollars.

   2023 CAPITAL EXPENDITURE GUIDANCE

Caraiba operations                        
Growth                           $80-$90
Sustaining                       $65-$75
Exploration                      $22-$27
Total, Caraiba operations      $167-$192
                                          
Tucuma project                            
Growth                         $150-$165
Exploration                        $0-$1
Total, Tucuma project          $150-$166
                                          
Xavantina operations                      
Growth                             $4-$5
Sustaining                       $12-$14
Exploration                        $6-$7
Total, Xavantina operations      $22-$26
                                          
Company total                             
Growth                         $234-$260
Sustaining                       $77-$89
Exploration                      $31-$40
Total, company                 $342-$389

Conference call details

The company will hold a conference call on Tuesday, May 9, 2023, at 11:30 a.m. Eastern Time (8:30 a.m. Pacific Time), to discuss these results.

Date:  Tuesday, May 9, 2023

Time:  11:30 a.m. Eastern Time (8:30 a.m. Pacific Time)

Dial-in

North America:  1-800-319-4610

International:  1-604-638-5340

Please dial in five to 10 minutes prior and ask to join the call.

Replay

North America:  1-800-319-6413

International:  1-604-638-9010

Replay passcode:  0068

About Ero Copper Corp.

Ero Copper is a high-margin, high-growth, clean copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The company's primary asset is a 99.6-per-cent interest in the Brazilian copper mining company, Mineracao Caraiba SA (MCSA), 100-per-cent owner of the company's Caraiba operations (formerly known as the MCSA mining complex), which are located in the Curaca Valley, Bahia state, Brazil, and include the Pilar and Vermelhos underground mines and the Surubim open-pit mine, and the Tucuma project (formerly known as Boa Esperanca), an IOCG (iron oxide copper/gold)-type copper project located in Para, Brazil. The company also owns 97.6 per cent of NX Gold SA, which owns the Xavantina operations (formerly known as the NX gold mine), composed of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the company and its operations, including technical reports on the Caraiba operations, Xavantina operations and Tucuma project, can be found on the company's website, on SEDAR and on EDGAR. The company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol ERO.

We seek Safe Harbor.