ERO · Ero Copper Corp.

Ero Copper’s Q1 2026 results reflect solid operational execution across its Brazilian copper assets, tempered by planned, temporary headwinds at Xavantina. Consolidated copper production of 17,287 tonnes—down 15% quarter-on-quarter—was driven primarily by lower processed grades at Caraíba (0.93% Cu vs. 1.00% in Q4 2025) due to stope sequencing at Pilar Mine and reduced Surubim pit contribution amid seasonal rainfall. Tucumã delivered 8,461 tonnes at a low $1.97/lb C1 cost, benefiting from higher throughput after early completion of mill liner maintenance. Gold production at Xavantina fell to 5,495 oz—well below Q4 2025’s 13,837 oz—as the company executed a necessary, multi-week ventilation and cooling infrastructure upgrade, now substantially complete as of end-April; this explains the elevated $2,120/oz C1 cost and $4,441/oz AISC. Financially, revenue surged 110% year-on-year to $263.2M on strong realized copper pricing ($5.53/lb) and improved volumes, driving net income to $108.8M and operating cash flow to $92.8M. The balance sheet strengthened meaningfully: net debt declined $11.0M from YE 2025 to $490.7M, and available liquidity stood at $146.2M—including $55.0M undrawn under the Senior Credit Facility—supporting continued deleveraging as the top capital allocation priority. Management reaffirmed all 2026 guidance ranges, emphasizing H2-weighted production growth at all three operations, with Xavantina expected to ramp significantly post-upgrade and gold concentrate sales poised to accelerate as dryer Q2–Q3 conditions reduce drying times. The Furnas PEA—published March 30, 2026—adds strategic optionality with a $2.0B NPV (8%), though it remains preliminary and contingent on further technical work.