Mr. David Strang reports

ERO COPPER REPORTS THIRD QUARTER 2023 OPERATING AND FINANCIAL RESULTS

Ero Copper Corp. has released its operating and financial results for the three and nine months ended Sept. 30, 2023. Management will host a conference call tomorrow, Friday, Nov. 3, 2023, at 8:30 a.m. Eastern Time, to discuss the results. Dial-in details for the call can be found near the end of this press release. (All amounts are in U.S. dollars unless otherwise noted.)

Highlights:

• Copper production of 10,766 tonnes at C1 cash costs of $1.82 per pound of copper produced;
• Gold production of 17,579 ounces at C1 cash costs and all-in sustaining costs of $371 and $844, respectively, per ounce of gold produced;
• Record gold production and operating margins at the Xavantina operations partially offset lower copper production at the Caraiba operations, as well as the impact of a stronger Brazilian real relative to the U.S. dollar:
  • Net income attributable to the owners of the company of $2.5-million (three cents per share on a diluted basis);
  • Adjusted net income attributable to the owners of the company of $17.3-million (18 cents per share on a diluted basis);
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $42.9-million;
• Reaffirming full-year copper production guidance and providing updates to other 2023 guidance ranges to reflect year-to-date performance, including record operating results at the Xavantina operations;
• Important milestones achieved in the execution of strategic growth initiatives during the quarter:
  • Construction of the Tucuma project reached over 70-per-cent physical completion as of quarter-end; total project capital estimate remains unchanged at approximately $305-million;
  • At the Caraiba operations, construction of the Pilar mine's new external shaft continued to progress on schedule; planned capital expenditures under contract or in the final stages of negotiation remain at approximately 80 per cent with current estimates within 5 per cent of budget;
  • Production from the new Matinha vein commenced at the Xavantina operations, contributing to a quarter-on-quarter increase of over 40 per cent to both processed gold grades and gold production, as well as record-low unit operating costs;
• Available liquidity at quarter-end of $237.6-million included cash and cash equivalents of $44.8-million, short-term investments of $42.8-million, and $150.0-million of undrawn availability under the company's senior secured revolving credit facility;
• Immediately prior to quarter-end and continuing into fourth quarter 2023, the company opportunistically expanded its foreign exchange hedge program:
  • Of the $437-million foreign exchange derivative position as of October, 2023, $145-million is designated for major project capital expenditures with a weighted-average floor and ceiling of 5.10 and 5.23 Brazilian real per U.S. dollar, respectively;
• Subsequent to quarter-end, the company entered into a binding term sheet with Vale Base Metals to earn a 60-per-cent interest in the Furnas copper project upon completion of several exploration, engineering and development milestones over a period of five years from the execution of a definitive earn-in agreement:
  • Offers opportunity to expand long-term growth pipeline within the Carajas mineral province, home to the company's Tucuma project in Para state, Brazil;
  • Partnership expected to leverage the company and VBM's collective strengths while advancing Brazil's position as a leader in the global energy transition;
  • For more information on the project and term sheet, please see the company's press release dated Oct. 30, 2023.

"Two thousand twenty-three continues to be a pivotal year for Ero Copper as our near-term growth projects reach critical milestones and we continue to define and broaden our long-term growth pipeline," said David Strang, chief executive officer. "This strategic execution was evident at the Xavantina operations, where we successfully initiated production from the Matinha vein during the quarter, resulting in record gold production and operating margins. We also made substantial progress at our Tucuma project, as announced earlier this month, and advanced our Pilar 3.0 initiative at the Caraiba operations, where we are nearing completion of the mill expansion project and preparing to commence main sinking of the new external shaft.

"In parallel, we continue to advance on our medium- and longer-term growth pipeline through ongoing regional copper and nickel exploration programs at the Caraiba operations and, more recently, the execution of a binding term sheet to earn 60 per cent in VBM's Furnas copper project.

"Despite these important strategic advancements, as well as solid operating performance at our Caraiba operations during the quarter, our financial results were impacted by broader economic conditions that drove weaker metal prices and a stronger BRL against the U.S. dollar. In response, and in addition to the protection provided by the copper price hedges we established earlier this year, we elected to opportunistically expand our foreign exchange rate hedge program to cover a significant portion of projected operating costs and capital expenditures through the end of 2024.

"While we continue to navigate near-term economic and market uncertainty, we remain optimistic about the long-term demand outlook for copper and are committed to the execution of our strategy as we position Ero Copper to create sustainable, long-term value for all stakeholders."

Conference call details

The company will hold a conference call on Friday, Nov. 3, 2023, at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time), to discuss these results.

Date:  Friday, Nov. 3, 2023

Time:  8:30 a.m. Eastern Time (5:30 a.m. Pacific Time)

Dial-in:  North America: 1-800-319-4610 or 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 or international: 1-604-638-9010

Replay passcode:  0471

About Ero Copper Corp.

Ero Copper is a high-margin, high-growth, low-carbon-intensity 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, 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 iron-oxide-copper-gold-ore-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. The company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol ERO.

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