Mr. David Strang reports

ERO COPPER REPORTS FIRST QUARTER OPERATING AND FINANCIAL RESULTS

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

Highlights:

• The Tucuma project is expected to achieve first copper concentrate production in early third quarter 2024, marking a major inflection point for the company.
  • Overall physical completion of approximately 97 per cent;
  • Commissioning progressing ahead of schedule with major mechanical and subcomponent commissioning completed during the quarter, as well as first ore through the crushing circuit and main conveyors;
  • Total direct project capital cost remains unchanged at $310-million.
• First quarter copper production was 8,091 tonnes at C1 cash costs of $2.30 per pound of copper produced. Including the benefit of realized gains on designated foreign exchange hedges, first quarter copper C1 cash costs were $2.28 per pound.
• Gold production during the quarter was a record 18,234 ounces at C1 cash costs and all-in sustaining costs of $395 and $797, respectively, per ounce of gold produced.
• First quarter financial results reflect record gold production and operating margins at the Xavantina operations, as well as the sale of copper concentrate inventories carried over from fourth quarter 2023 at the Caraiba operations:
  • Net loss attributable to the owners of the company of $7.1-million, or seven cents per share on a diluted basis;
  • Adjusted net income attributable to the owners of the company of $16.8-million, or 16 cents per share on a diluted basis.
  • Adjusted earnings before interest, taxes, depreciation and amortization of $43.3-million.
• Available liquidity at quarter-end was $156.7-million, including $51.7-million in cash and cash equivalents plus $105.0-million of undrawn availability under the company's senior secured revolving credit facility. Subsequent to quarter-end, to support the commencement of production and associated working capital needs at the Tucuma project, the company entered into a $50.0-million non-priced copper prepayment facility, which will be repaid through the delivery of copper at prevailing market prices.
• Following record operating performance at the Xavantina operations during the quarter, the company is increasing its 2024 gold production guidance from 55,000 to 60,000 ounces to a range of 60,000 to 65,000 ounces, and guiding toward the low end of its full-year cost guidance for the Xavantina operations.
• The company is reaffirming all other 2024 production, cost and capital expenditure guidance ranges.

"The Xavantina operations continued to exceed our expectations during the first quarter, achieving record gold production driven by favourable grade reconciliations that have continued into the second quarter," said David Strang, chief executive officer. "This trend has allowed us to increase our full-year gold production guidance, which we expect will translate to achieving the lower end of our 2024 gold cost guidance.

"Our first quarter financial results also showcase Xavantina's strong performance and reflect the sale of copper concentrate inventories carried over from the fourth quarter of 2023 at the Caraiba operations. Combined with a strengthening gold and copper price environment, we are off to a solid start to 2024.

"I am also delighted to report that commissioning is advancing ahead of schedule at the Tucuma project, and we expect to achieve first production early in the third quarter. With copper fundamentals stronger than ever, we are committed to maintaining our momentum and are excited as we near a significant inflection point in our growth trajectory."

2024 production and cost guidance

Following record operating performance at the Xavantina operations during the quarter, the company is increasing its 2024 gold production guidance from 55,000 to 60,000 ounces to a range of 60,000 to 65,000 ounces. The company expects mined and processed gold grades to remain above plan through the rest of first half 2024 as positive grade reconciliations have continued into second quarter 2024. While this trend may continue beyond Q2 2024, the company is projecting a reversion to long-term block model grades for planned mining areas in second half 2024. As a result of higher full-year production expectations, the company is guiding toward the low end of its full-year cost guidance for the Xavantina operations.

Consolidated copper production of 59,000 to 72,000 tonnes in concentrate is expected to be weighted toward second half 2024, largely due to the anticipated commencement of production at the Tucuma project in early Q3 2024. Consequently, consolidated copper C1 cash costs are projected to be lower in second half 2024 versus first half 2024.

The company's updated cost guidance for 2024 assumes a foreign exchange rate of 5.00 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

Full-year capital expenditures are projected to range from $299-million to $349-million, including an estimated $30-million to $40-million allocated to consolidated exploration programs. As the company nears completion of the Tucuma project, capital expenditures are expected to decrease in Q2 2024 compared with Q1 2024 and be weighted toward first half 2024.

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 to one Brazilian real, respectively. All other capital expenditures assume an exchange rate of $5 to one Brazilian real. Figures presented are in U.S. dollars in millions.

Conference call details

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

Date:  Wednesday, May 8, 2024

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

Dial-in:  Canada/United States: 1-844-763-8274 or international: 1-647-484-8814; please dial in five to 10 minutes prior and ask to join the call

Preregister:  preregister to bypass the live operator queue

Replay:  Canada/United States: 1-855-669-9658 or international: 1-604-674-8052

Replay passcode:  0848

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., Canada. 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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