Ero Copper Corp. · TSX:ERO
Ero Copper — Q3 2023 Earnings Presentation
36 slides from Ero Copper's earnings presentation, Nov 3, 2023
Slide 1: Investor Presentation
Investor Presentation November 2023 | TSX:ERO | NYSE:ERO
Slide 2: Cautionary Statements
Cautionary Statements | B u s i n e s s O v e r v i e w Caution Regarding Forward Looking Information and Statements This presentation contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” with
Slide 3: Disclaimer
Disclaimer | B u s i n e s s O v e r v i e w General Scientific and technical information contained in this presentation has been reviewed, verified and approved by Mr. Cid Gonçalves Monteiro Filho, SME RM (04317974), MAIG (No. 8444), FAusIMM (No. 3219148) has reviewed and approved the scientific an
Slide 4: High-Margin, Growth-Oriented Clean Copper
High-Margin, Growth-Oriented Clean Copper Brazil-Focused Copper Producer Tucumã Construction With Meaningful Gold Production Pará State Furnas(1) Advanced Stage Pará State Significant Near-Term Growth Doubling Copper Production by 2025 Xavantina Production Mato Grosso State Attractive Long-Term Grow
Slide 5: Track Record of Delivering Growth
Track Record of Delivering Growth The Company’s consolidated mine life now extends to 2042 with production bolstered by the success of Project Honeypot Copper Production (000s of tonnes) 120 100 80 60 40 20 - Ero Copper LOM Plan at IPO Ero Copper Consolidated Production (Caraíba + Tucumã) Source: Ca
Slide 6: Growth Strategy Gaining Momentum
Growth Strategy Gaining Momentum The Company recently expanded its growth portfolio with plans to earn a 60% interest in Vale Base Metals’ Furnas Copper Project(1) Near-Term Medium-Term Long-Term (1-3 Years) (3-5 Years) (5+ Years) Caraíba Mill Expansion (Q4 2023) Project Honeypot New External Shaft
Slide 7: Poised for Significant EBITDA Expansion
Poised for Significant EBITDA Expansion Ero is well-positioned due to the expected near-term production from Tucumã and its associated EBITDA contribution Copper Production Growth & EBITDA Margin 65% 60% Ero Copper 2025E EBITDA Margin Antofagasta 55% 50% Capstone Mining First Quantum Freeport-McMoRa
Slide 8: Caraíba: High-Margin Flagship Copper Operation
Caraíba: High-Margin Flagship Copper Operation Asset Overview ▪ High-grade, low-cost copper operation ▪ Located in Bahia State 90 km SE of Petrolina ▪ Fully integrated mining and processing complex with 40+ year operating history ▪ Two underground mines: Pilar and Vermelhos ▪ One open pit mine: Suru
Slide 9: Caraíba: Pilar Deepening External Shaft Update
Caraíba: Pilar Deepening External Shaft Update Investing in the Future of Pilar Completed Headframe ▪ Expected to be operational Q4 2026 ▪ 40-meter pre-sink phase of shaft development completed in Q2 2023 Man Winder ▪ Headframe erection, stage winder installation and several key underground infrastr
Slide 10: New External Shaft Project Site
New External Shaft Project Site Shaft Headframe Engineering & Admin Permanent Rock & Personnel Winder Building Stage Winder Building November 2023
Slide 11: Tucumã: High-Return Copper Development Project
Tucumã: High-Return Copper Development Project Asset Overview ▪ Low capital-intensity open pit copper project with attractive operating margins ▪ Located in Pará State, ~40 km SW of Tucumã ▪ First production forecast in H2 2024 ▪ Significant growth potential ▪ Cornerstone position in western Carajás
Slide 12: Tucumã Aerial View
Tucumã Aerial View Process Plant Main Substation Admin Offices, Equipment Maintenance, Fuel Station & Laboratories Crushed Ore Stockpile and Belt Feeder November 2023
Slide 13: Tucumã Process Plant Construction
Tucumã Process Plant Construction November 2023
Slide 14: Tucuma Mine Pre-Stripping
Tucuma Mine Pre-Stripping November 2023
Slide 15: Xavantina: High-Grade, Low-Cost Gold Operation
Xavantina: High-Grade, Low-Cost Gold Operation Asset Overview ▪ High-grade, high-margin underground gold mine and processing facility ▪ Located in Mato Grosso State, approximately 18km NW of Nova Xavantina ▪ Amongst the highest-grade gold mines in South America ▪ Current mine life of 6 years (increa
Slide 16: Furnas: Large, Highly Prospective IOCG Project
Furnas: Large, Highly Prospective IOCG Project Binding Term Sheet with Vale Base Metals (VBM) for a 60% interest in Furnas ▪ The Furnas Copper project is located in the Carajás Mineral Province (Pará, Brazil), ~50 km southeast of VBM’s Salobo operations and ~190 km northeast of the Tucumã Project ▪
Slide 17: Furnas: Geology and Plan Map
Furnas: Geology and Plan Map Exploration and development efforts will focus on two discrete high- grade zones identified within the overall mineralized body, known as the SE and NW Zones, that extend over a combined strike length of ~5 kilometers NW Zone SE Zone 1. Please refer to the press release
Slide 18: Furnas: NW & SE Zone Cross Sections
Furnas: NW & SE Zone Cross Sections Known high-grade mineralization ranges between ~20 to 60 meters in thickness and has been drilled to a vertical depth from surface of ~300 meters NW Zone Cross-Section SE Zone Cross-Section 1. Please refer to the press release dated October 30, 2023 for additional
Slide 19: Caraíba: Emerging Nickel Sulphide District
Caraíba: Emerging Nickel Sulphide District District scale potential close to existing infrastructure ▪ ~20km from the Caraíba processing plant ▪ Textures range from disseminated (<10% sulphides) to massive (60-80% sulphides) containing up to 7.09% Ni (7.61% NiEq1) ▪ Mineralization outcrops at surfac
Slide 20: Leading the Clean Copper Movement
Leading the Clean Copper Movement Brazil’s global leadership in the use of renewable energy affords Ero a unique competitive advantage as being one of the world’s cleanest copper producers GHG Copper Intensity Curve1 - 2022 ESG Ratings “A” ranking with performance in top tCO2e / t Copper equivalent
Slide 21: Balance Sheet Well-Positioned to Fund Growth
Balance Sheet Well-Positioned to Fund Growth Strong balance sheet reinforced by expansion of foreign exchange hedge program to cover a significant portion of operating costs and capital expenditures through the end of 2024 Pro Forma Liquidity Position Pro Forma Liquidity & Credit Metrics ($M) Cash &
Slide 22: Business Summary
Business Summary 11 High-Margin, Brazil-Focused Copper Producer 22 Significant Near-Term Production Growth 43 Attractive Long-Term Growth Pipeline 54 Strong Balance Sheet Well-Positioned to Fund Growth 55 Leading Position in Clean Copper Movement ERO COPPER | 22
Slide 23: Appendix
Appendix ERO COPPER | 23
Slide 24: 2023 Guidance
2023 Guidance Caraíba Tucumã Xavantina Production 44 - 47 kt Cu Construction Phase 55 - 59 koz Au $375 - $475 / oz Operating Costs $1.50 - $1.70 / lb Construction Phase Au C1 Cash Cost Cu C1 Cash Cost $900 - $1,000 / oz Au All-In Sustaining Cost Capital Expenditures $170 - $195 M $175 - $191 M $17 -
Slide 25: Strong Track Record of Project Execution
Strong Track Record of Project Execution The Company has a track record of executing on growth projects across its operations Caraíba Operations 4 Caraíba projects represent over US$100M in successful execution Vermelhos Mine Construction Caraíba HIG Mill Installation ✓ Completed on time and on budg
Slide 26: Caraíba: Project Honeypot
Caraíba: Project Honeypot Success of Project Honeypot demonstrated by addition of 8.1 Mt of ore grading 1.59% copper1 Project Honeypot Overview Pilar Mine, Long-Section View (looking east) ▪ Focused on recovery of high-grade material left behind by previous operators ▪ Conservative dilution (32%) an
Slide 27: Caraíba: Nickel Sulphide Discovery
Caraíba: Nickel Sulphide Discovery Select Drill Highlights ▪ VB Zone - VB-17: 16.5 meters at 1.22% Ni, 0.17% Cu and 0.03% Co (1.37% NiEq), including 3.8 meters at 3.60% Ni, 0.22% Cu and 0.09% Co (3.92% NiEq) ▪ Interval includes 1.5 meters of massive-sulphide textures (~80% sulphides) grading 6.59% N
Slide 28: VB Zone: East-West Composite Section
VB Zone: East-West Composite Section Highlight Intercepts ▪ VB-41: 11.2 meters at 1.86% Ni, 0.26% Cu and 0.05% Co (2.08% NiEq), including 5.0 meters at 3.71% Ni, 0.13% Cu and 0.09% Co (4.00% NiEq) ▪ Interval includes 1.9 meters of massive- sulphide textures grading 7.09% Ni, 0.18% Cu and 0.18% Co (7
Slide 29: LZ Zone: East-West Composite Section
LZ Zone: East-West Composite Section Highlight Intercepts ▪ LZ-25: 46.1 meters at 0.20% Ni, 0.04% Cu and 0.03% Co (0.28% NiEq), including 2.6 meters at 0.75% Ni, 0.18% Cu and 0.06% Co (0.96% NiEq) ▪ LZ-32: 11.3 meters at 0.43% Ni, 0.10% Cu and 0.02% Co (0.51% NiEq), including 7.0 meters at 0.61% Ni,
Slide 30: Caraíba Operations Reserves & Resources
Caraíba Operations Reserves & Resources Tonnes Grade Contained Cu (kt) (Cu %) (kt) Project Honeypot Areas, Pilar Mine Proven Reserves 2,595 1.66 43.1 Probable Reserves 5,551 1.56 86.6 Proven & Probable Reserves 8,146 1.59 129.7 Measured Resources 3,229 1.86 60.0 Indicated Resources 6,459 1.88 121.3
Slide 31: Caraíba Operations Reserves & Resources
Caraíba Operations Reserves & Resources Tonnes Grade Contained Cu (kt) (Cu %) (kt) Underground Caraíba Operations Proven Reserves 17,336 1.30 225.6 Probable Reserves 22,125 1.51 333.1 Proven & Probable Reserves 39,461 1.42 558.7 Measured Resources 34,224 1.44 493.2 Indicated Resources 35,389 1.48 52
Slide 32: Xavantina Operations Reserves & Resources
Xavantina Operations Reserves & Resources Tonnes Grade Contained Au (kt) (gpt Au) (koz) Reserves Proven, Santo Antônio Vein 301 10.89 105.4 Probable, Santo Antônio Vein 799 8.32 213.6 Probable, Matinha Vein 213 6.24 42.6 Total Proven and Probable Reserves 1,313 8.57 361.6 Indicated Resources (Inclus
Slide 33: Tucumã Project Reserves & Resources
Tucumã Project Reserves & Resources Tonnes Grade Contained Cu (kt) (Cu %) (kt) Reserves Proven Reserves 30,674 0.89 273.2 Probable Reserves 12,378 0.67 83.4 Proven & Probable Reserves 43,052 0.83 356.6 Mineral Resources (Pit Constrained, Incl. Reserves) Measured Resources (High-Grade) 7,117 2.16 153
Slide 34: Additional Information
Additional Information Caraíba Operations Mineral Reserves Notes: 1. Effective Date of September 30, 2022. 2. Mineral reserves included within stated mineral resources. All figures have been rounded to reflect the relative accuracy of the estimates. Summed amounts may not add due to rounding. 3. The
Slide 35: Additional Information (cont.)
Additional Information (cont.) Tucumã Project Mineral Reserves Notes: 1. Effective Date of August 31, 2021. 2. Stated mineral resources are inclusive of mineral reserves. All figures have been rounded to the relative accuracy of the estimates. Summed amounts may not add due to rounding. High- grade
Slide 36: Investor Inquiries
Suite 1050, 625 Howe Street, Vancouver, BC, V6C 2T6 www.erocopper.com Investor Inquiries: Courtney Lynn, SVP, Corp. Development, Investor Relations & Sustainability +1.604.335.7504 info@erocopper.com ERO COPPER | 36