Slide 1: Investor Presentation
Investor Presentation March 2024 | 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), and Resource Manager of the Company, who i
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 production profile reflects the success of its organic growth investments Copper Equivalent Production (000s of tonnes)(1) 120 100 80 60 40 20 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 LOM Plan at IPO (Oct. 2017) Production Profi
Slide 6: Executing on Growth Strategy
Executing on Growth Strategy 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 (< 2 Years) (2-5 Years) (5+ Years) Caraíba Mill Expansion (✓ Completed in 2023) Project Honeypot New Externa
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 60% Ero Copper 55% 2025E EBITDA Margin Antofagasta 50% Capstone Mining Hudbay Minerals Sandfire Resource
Slide 8: Our Operations
Our Operations
Slide 9: Caraíba: High-Margin Flagship Copper Operation
Caraíba: High-Margin Flagship Copper Operation Asset Overview ▪ High-grade, high-margin 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: S
Slide 10: New External Shaft Project Site
New External Shaft Project Site Shaft Headframe Engineering & Admin Permanent Rock & Personnel Winder Building Stage Winder Building ERO COPPER November 2023
Slide 11: Tucumã: Commissioning Underway
Tucumã: Commissioning Underway Asset Overview ▪ Low capital-intensity open pit copper project with attractive operating margins ▪ Located in Pará State, ~40 km SW of Tucumã ▪ First production expected in H2 2024 ▪ Significant growth potential ▪ Cornerstone position in western Carajás ▪ Robust explor
Slide 12: Tucumã Aerial View
Tucumã Aerial View ERO COPPER February 2024
Slide 13: Advanced Pre-Stripping Activities
Advanced Pre-Stripping Activities ERO COPPER January 2024
Slide 14: Flotation Cells
Flotation Cells ERO COPPER January 2024
Slide 15: Crushing and Screening
Crushing and Screening ERO COPPER January 2024 15
Slide 16: 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 17: Long-Term Growth
c O P PER Long-Term Growth
Slide 18: Furnas: Large, Highly Prospective IOCG Project
Furnas: Large, Highly Prospective IOCG Project The Company recently announced a binding term sheet with Vale Base Metals (VBM) for a 60% interest in the Furnas copper project(1) ▪ Located in the Carajás Mineral Province (Pará, Brazil), ~50 km southeast of VBM’s Salobo operations and ~190 km northeas
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% NiEq(1)) ▪ Mineralization outcrops at surf
Slide 20: Financial & Environmental Stewardship
Financial & Environmental Stewardship
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 Overview of Current Liquidity Position & Leverage Metrics ($M) Cash & Cash Eq
Slide 22: 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 lowest carbon-intensity copper producers GHG Copper Intensity Curve(1) - 2022 ESG Ratings tCO2e / t Copper equivalent “A” ranking with pe
Slide 23: Guidance & Production Outlook
Guidance & Production Outlook
Slide 24: 2024 Guidance
2024 Guidance Caraíba Tucumã Total Copper Xavantina Production 42 - 47 kt Cu 17 - 25 kt Cu 59 – 72 kt Cu 55 - 60 koz Au $550- $650 / oz Operating $1.80 - $2.00 / lb $0.90 - $1.10 / lb $1.50 - $1.75 / lb Au C1 Cash Cost Costs Cu C1 Cash Cost Cu C1 Cash Cost Cu C1 Cash Cost $1,050 - $1,150 / oz Au All
Slide 25: Three-Year Production Outlook
Three-Year Production Outlook Caraíba Tucumã Total Copper Xavantina 2024 42 – 47 kt Cu 17 – 25 kt Cu 59 – 72 kt Cu 55 – 60 koz Au 2025 42 – 47 kt Cu 53 – 58 kt Cu 95 – 105 kt Cu 55 – 60 koz Au 2026 42 – 47 kt Cu 48 – 53 kt Cu 90- 100 kt Cu 55 – 60 koz Au Note: For more information on the Company’s t
Slide 26: Business Summary
c O P PER Business Summary
Slide 27: 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 27
Slide 28: Appendix
Appendix
Slide 29: Ownership Structure
Ownership Structure The Company’s board & management team, along with the top 5 institutional shareholders, own over 62% of the Company Shareholder Distribution Blue-Chip Institutional Shareholders Top 5 Institutional Shareholders 9.7% 11.5% T. Rowe Price (all affiliates) 21.1% 11.4% Fidelity (all a
Slide 30: Caraíba: Project Honeypot
Caraíba: Project Honeypot Success of Project Honeypot demonstrated by addition of 8.1 Mt of ore grading 1.59% copper(1) 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%)
Slide 31: 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 km NW Zone SE Zone Note: For more information, please refer to t
Slide 32: Furnas: NW & SE Zone Cross Sections
Furnas: NW & SE Zone Cross Sections Known high-grade mineralization ranges from ~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 Note: For more information, please refer to the Company’s press release dated
Slide 33: 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 34: 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 35: 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 36: Caraíba Operations Reserves & Resources
Caraíba Operations Reserves & Resources Tonnes Grade Contained Cu (kt) (Cu%) (kt) Mineral Reserves (Underground) Proven 15,402 1.15 177 Probable 19,506 1.53 298 Proven & Probable 34,908 1.36 475 Mineral Resources (Underground) Measured 48,091 1.08 517 Indicated 44,343 1.23 545 Measured & Indicated 9
Slide 37: Xavantina Operations Reserves & Resources
Xavantina Operations Reserves & Resources Tonnes Grade Contained Au (kt) (gpt Au) (koz) Reserves Proven, Santo Antonio Vein 290 8.57 80.0 Proven, Matinha Vein - - - Total Proven 290 8.57 80.0 Probable, Santo Antonio Vein 1,072 7.80 268.7 Probable, Matinha Vein 144 7.81 36.1 Total Probable 1,215 7.80
Slide 38: Tucumã Project Reserves & Resources
Tucumã Project Reserves & Resources Tonnes Grade Contained Cu (kt) (Cu%) (kt) Reserves Proven 30,674 0.89 273.2 Probable 12,378 0.67 83.4 Proven & Probable 43,052 0.83 356.6 Mineral Resources (Pit Constrained, Incl. Reserves) Measured Resources (High-Grade) 7,117 2.16 153.6 Indicated Resources (High
Slide 39: Additional Information
Additional Information Caraíba Operations Mineral Reserves Notes: 1. Effective Date of December 31, 2023 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. Miner
Slide 40: 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 a
Slide 41: Contact Information
1050-625 Howe St, Vancouver, BC, V6C 2T6 www.erocopper.com Courtney Lynn SVP, Corp. Development, Investor Relations & Sustainability +1.604.335.7504 info@erocopper.com ERO COPPER | 41