Mr. David Strang reports

ERO COPPER REPORTS FOURTH QUARTER AND FULL YEAR 2023 OPERATING AND FINANCIAL RESULTS

Ero Copper Corp. has released its operating and financial results for the three and 12 months ended Dec. 31, 2023. Management will host a conference call tomorrow, Friday, March 8, 2024, 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. (All amounts are in U.S. dollars unless otherwise noted.)

Highlights:

• Fourth quarter copper production was 11,760 tonnes, bringing full-year copper production to 43,857 tonnes.
• Copper C1 cash costs for the quarter and year were $1.75 and $1.80, respectively. Including the benefit of realized gains on designated foreign exchange hedges, fourth quarter and full-year copper C1 cash costs were $1.59 and $1.68, respectively.
• Fourth quarter gold production was 16,867 ounces, contributing to record full-year gold production of 59,222 ounces.
• Gold C1 cash costs for the quarter and year were $413 and $422, respectively. All-in sustaining costs for the same periods were $991 and $957, respectively.
• Fourth quarter and full-year financial results reflect the continued execution of the company's growth initiatives, including completion of the NX60 initiative, which resulted in record full-year operating margins at the Xavantina operations:
  • Net income attributable to the owners of the company for the quarter and year were $36.5-million and $92.8-million, respectively, or 37 cents and 98 cents, respectively, per share on a diluted basis.
  • Adjusted net income attributable to the owners of the company for the quarter and year were $20.7-million and $82.8-million, respectively, or 21 cents and 87 cents, respectively, per share on a diluted basis.
  • Fourth quarter and full-year adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) were $50.3-million and $183.5-million, respectively.

• The company achieved significant milestones across its organic growth projects:
  • Construction of the Tucuma project progressed significantly, reaching over 90-per-cent physical completion as of February, 2024. With production of copper concentrate on schedule to commence in second half 2024, the company's transition from construction to commissioning is under way. The total direct project capital estimate remains unchanged at approximately $310-million.
  • The Caraiba mill expansion, which is expected to increase mill throughput capacity from 3.2 million to 4.2 million tonnes per annum, was completed in December, 2023, with design capacity achieved by year-end.
  • Following the completion of surface infrastructure, the main shaft sinking phase for the Pilar mine's new external shaft commenced as planned in December, 2023. The new external shaft component of the Pilar 3.0 initiative is fully contracted, and projected capital expenditures are within budget.
• During the quarter, amid an uncertain macroeconomic climate, the company's management team prudently elected to fortify its balance sheet with a bought deal equity financing. Net proceeds from the transaction of $104.3-million contributed to available liquidity at year-end of $261.7-million, including cash and cash equivalents of $111.7-million and $150.0-million of undrawn availability under the company's senior secured revolving credit facility.
• The company is reaffirming its 2024 production, operating cost and capital expenditure guidance.

"Two thousand twenty-three was a cornerstone year in advancing our growth strategy," stated David Strang, chief executive officer. "Our investments over the past few years position us well for the future at both the Xavantina operations, where we successfully completed the NX60 initiative, and at the Caraiba operations, with the completion of our mill expansion and the excellent progress made on the new external shaft for the Pilar mine.

"However, the most significant transformation in our consolidated production profile and cash flows is projected to begin in the second half of this year when production is scheduled to commence at the Tucuma project. With physical completion at over 90 per cent and capital expenditures on the project starting to wind down, we are approaching an exciting inflection point when we expect to see these investments begin to yield strong shareholder returns."

2024 production and cost guidance

The company's 2024 production guidance reflects the continuing execution of its organic growth strategy, including the successful completion of the Xavantina operations' NX60 initiative, as well as the anticipated completion of the Tucuma project, which remains on track to commence production in second half 2024. As a result, the company expects to deliver consolidated copper production of 59,000 to 72,000 tonnes in concentrate and gold production of 55,000 to 60,000 ounces.

The company's 2024 copper C1 cash cost guidance on a consolidated basis is $1.50 to $1.75. This range incorporates several key updates relative to previous 2024 C1 cash cost projections, including a revised copper C1 cash cost calculation methodology, as detailed in the company's press release dated Feb. 21, 2024.

At the Xavantina operations, the gold C1 cash cost guidance range of $550 to $650 reflects improved fixed-cost efficiencies driven by higher expected gold production, partially offsetting the impact of planned decreases to mined and processed gold grades. The gold AISC guidance range for 2024 is $1,050 to $1,150.

The company's updated cost guidance for 2024 assumes a foreign exchange rate of five Brazilian reais per U.S. dollar, a gold price of $1,900 per ounce and a silver price of $23 per ounce.

2024 capital expenditure guidance

2024 capital expenditures are expected to decrease to a range of $299-million to $349-million due to the anticipated completion of the Tucuma project, which is on track to commence production in the second half 2024. As a result, capital spend is expected to be weighted toward first half 2024.

The company's capital expenditure guidance includes an estimated $30-million to $40-million allocated to consolidated exploration programs. This allocation includes approximately $20-million designated for drilling activities at the Caraiba operations, including expenditures related to the Curaca Valley nickel exploration program. Additionally, the company has budgeted approximately $6-million for the first phase of work at the Furnas project.

Capital expenditure guidance assumes an exchange rate of $5.10 (U.S.) to one Brazilian real for the Tucuma project based on designated foreign exchange hedges with a weighted-average ceiling and floor of 5.10 and $5.23 (U.S.) to one Brazilian real, respectively. All other capital expenditures assume an exchange rate of $5 (U.S.) to one Brazilian real. Figures presented are in millions of U.S. dollars.

Conference call details

The company will hold a conference call on Friday, March 8, 2024, at 11:30 a.m. Eastern Time (8:30 a.m. Pacific Time), to discuss these results.

Date:  Friday, March 8, 2024

Time:  11:30 a.m. Eastern Time (8:30 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

Preregister:  Preregister to bypass the live operator queue.

Replay:  North America: 1-800-319-6413 or international: 1-604-638-9010

Replay passcode:  0675

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-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.

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