Ero Copper Reports Second Quarter 2026 Operating and Financial Results

(all amounts in US dollars, unless otherwise noted)

VANCOUVER, British Columbia, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the "Company") is pleased to announce its operating and financial results for the three and six months ended June 30, 2026. Management will host a conference call tomorrow, Thursday, August 6, 2026, 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

• Consolidated Q2 copper production totaled 17,315 tonnes in concentrate at C1 cash costs(1) of $2.42 per pound produced.

• Gold from the Xavantina Operations increased by 170% quarter-on-quarter, totalling 20,553 ounces during Q2.

  • Mined gold production was 8,693 ounces at C1 cash costs(1) and All-in Sustaining Costs ("AISC")(1) of $1,586 and $2,881 per ounce, respectively.

  • Gold recovered from historic gold concentrate stockpiles increased to 11,860 ounces at C1 cash costs(1) and AISC(1) of $633 and $715 per ounce, respectively.

• Quarterly financial results reflect strong operational execution across the portfolio which drove meaningful quarter-on-quarter growth in cash flow from operations and adjusted EBITDA(1).

  • Cash flow from operations was $137.9 million, an increase of approximately 49% from the previous quarter.

  • Adjusted EBITDA(1) was $144.0 million, an increase of approximately 15% quarter-on-quarter.

  • Net income attributable to the owners of the Company was $89.5 million ($0.85 per share on a diluted basis).

  • Adjusted net income attributable to the owners of the Company(1) was $87.4 million ($0.83 per share on a diluted basis).

• Available liquidity(1) increased by $35.5 million quarter-on-quarter to $181.7 million, including $101.7 million in cash and cash equivalents and $80.0 million of availability under the Company's senior secured revolving credit facility ("Senior Revolving Credit Facility").

• Net debt(1) at quarter-end decreased by $38.0 million from Q1 2026 to $452.7 million, with the Company's net debt leverage ratio declining to 0.8x(2). Subsequent to quarter-end, the Company repaid an additional $25.0 million under the Senior Revolving Credit Facility, bringing total repayments under the facility in 2026 to $60.0 million.

• The Company's foreign exchange hedge program, which has been designed to protect approximately 70% of the Company's consolidated full-year operating and capital costs at an average USD/BRL floor of 5.54, generated realized gains of $12.7 million in Q2 2026, bringing year-to-date realized foreign exchange derivative gains to $19.9 million. These gains mitigated the cash flow impact of the stronger BRL on operating costs and capital expenditures during the period. Assuming a USD/BRL exchange rate of 5.10 through year-end, the Company's hedge book is expected to generate an additional $20 million to $25 million of realized gains in H2 2026, resulting in approximately $40 million to $45 million of realized gains for the full year.

• Over the past 18 months, the Company has advanced OneEro, a company-wide strategic program designed to enhance efficiency across its operations, people and processes, unlock cost savings and position the business for its next phase of growth. The program is beginning to deliver meaningful value across the business.

  • The Company has secured annualized savings of approximately $10 to $15 million on renegotiated supply and third-party contracts, with further cost reductions identified and in progress.

  • Leveraging this integrated approach and favorable market conditions, the Company has also negotiated improved copper smelting and refining terms, expected to deliver more than $20 million in savings in 2026.

• The Company is reaffirming 2026 copper production and cost guidance; maintaining gold production guidance and updating gold cost and capital expenditure guidance.

  • Consolidated full-year copper production guidance is maintained at 67,500 to 77,500 tonnes, with production expected to be higher in H2 2026 at both copper operations. At the Caraíba Operations, production is expected to benefit from higher anticipated plant throughput and sequentially higher mined and processed copper grades, while at the Tucumã Operation, sustained higher throughput rates from ongoing process improvements are expected to offset lower planned copper grades.

  • Consolidated copper C1 cash cost(1) guidance is maintained in the range of $2.15 to $2.35 per pound produced. Costs are expected to decline sequentially through H2 2026, driven by higher planned copper grades and production at the Caraíba Operations.

  • Mined gold production guidance at the Xavantina Operations is maintained at 40,000 to 50,000 ounces, with production expected at the low end of the range and significantly weighted to H2 2026 as mining rates continue to increase following the installation and tie-in of ventilation and cooling infrastructure in H1 2026. Gold concentrate sales volumes are expected to increase significantly in H2 2026 with drier seasonal conditions, along with the commissioning of a mobile filter press and industrial dryer in late Q2 2026, both of which are expected to meaningfully reduce concentrate drying times.

  • C1 cash cost(1) and AISC(1) guidance for mined gold production at Xavantina has been updated to $1,100 to $1,350 per ounce and $2,200 to $2,700 per ounce, respectively, reflecting production volumes at the low end of the maintained guidance range.

  • Full-year capital expenditure guidance has been increased slightly to $285 to $330 million to reflect the approval of approximately $10 million for a new powerline at Xavantina to strengthen site infrastructure, support future growth opportunities and reduce power transmission rates.

• At the Furnas Copper-Gold Project ("Furnas" or the "Project"), exploration and technical work continued to support advancement toward a Pre-Feasibility Study ("PFS") expected in 2027. Assay results from the 17,000-meter Phase 2 drill program and the first 7,000 meters of the ongoing 45,000-meter Phase 3 drill program continue to demonstrate high-grade continuity within the SE and NW zones, along with extensions of mineralization at depth and along strike near planned underground infrastructure outlined in the Preliminary Economic Assessment ("PEA"). During Q2 2026, the Company completed over 16,000 meters of drilling at Furnas, bringing year-to-date drilling to over 31,000 meters, while advancing permitting, geotechnical, hydrogeological, environmental and metallurgical work streams.

"Ero delivered a solid second quarter, generating strong cash flow and continuing to deliver on our commitment to deleverage the balance sheet. The progress we have made over the past 18 months has materially strengthened the Company's financial position and is delivering true value to our business - core commitments we made to our shareholders in early 2025," said Makko DeFilippo, President & Chief Executive Officer.

"Our financial progress is being underpinned by operational execution across the portfolio. At Caraíba, we remain on track to achieve another annual plant throughput record in 2026, approximately 20% above 2025 levels. At Tucumã, plant throughput increased 27% quarter-on-quarter, and our tailings filtration expansion is now partially complete and remains on track for completion by year-end. Xavantina also delivered a significant improvement in mining and processing performance compared to the first quarter, together with a substantial increase in gold recovered from historic concentrate stockpiles. We are seeing true benefits of our OneEro strategic initiative and are entering the second half with momentum across all three operations and a clear line of sight to further production and cash flow growth. After an excellent Q2, we believe Ero is well positioned to deliver a strong second half of 2026."

(1) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
(2) The Company's net debt leverage ratio as of June 30, 2026 of 0.8x was calculated as net debt of $452.7 million divided by trailing 12-month adjusted EBITDA of $533.1 million.

SECOND QUARTER REVIEW

The Caraíba Operations

• The Caraíba Operations produced 8,351 tonnes of copper in concentrate during the quarter at a C1 cash cost(1) of $2.76 per pound produced.

• Quarterly production was driven by slightly higher plant throughput and recovery rates, offset by lower planned copper grades. C1 cash costs(1) improved to $2.76 per pound of copper produced, as inflationary pressures on input costs and a stronger BRL were offset by lower smelting and refining charges.

The Tucumã Operation

• The Tucumã Operation produced 8,964 tonnes of copper in concentrate during the period at C1 cash costs(1) of $2.10 per pound produced.

• Production increased quarter-over-quarter as plant throughput continued to improve sequentially, as expected, partially offset by lower planned processed copper grades. C1 cash costs(1) increased modestly, reflecting lower planned grades, inflationary pressures on input costs and a stronger BRL.

• The Company completed a planned expansion of Tucumã's existing tailings filtration system at the end of Q2 2026, increasing capacity by approximately 8%. Additional modular filters are expected to be installed and commissioned in H2 2026 to further augment tailings filtration capacity. The associated plant and production benefits have not been incorporated into Tucumã's 2026 guidance ranges.
  

The Xavantina Operations

• Gold from the Xavantina Operations totaled 20,553 ounces, representing an increase of 170% compared to Q1 2026.

• Mine production increased nearly 60% to 8,693 ounces, supported by higher mining rates and improved access to higher-grade stopes following the tie-in of ventilation and cooling infrastructure. Consequently, gold production C1 cash costs(1) and AISC(1) improved by 25% and 35%, respectively, to $1,586 and $2,881 per ounce.

• Gold recovered from historic concentrate stockpiles increased significantly to 11,860 ounces at C1 cash costs(1) and AISC(1) of $633 and $715 per ounce, respectively, following the end of the rainy season.

• Gold sales increased approximately 65% to 17,016 ounces, comprising 6,663 ounces of gold doré and 10,353 ounces of gold in concentrate, including gold recovered from historic concentrate stockpiles. Sales volumes from the historic concentrate stockpiles are expected to benefit from drier seasonal conditions through the remainder of the year and from a mobile filter press and industrial dryer commissioned on site at the end of Q2 2026.

(1) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release.

OPERATING HIGHLIGHTS

(1) Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
(2) The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, copper C1 cash costs for the Tucumã Operation reflects costs from Q3 2025 onward only.
(3) Gold sold in concentrate includes gold ounces produced in flotation and the historic gold concentrate stockpile.

FINANCIAL HIGHLIGHTS

($ in millions, except per share amounts)

(1) Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release.

2026 GUIDANCE

Consolidated copper production guidance is maintained in the range of 67,500 to 77,500 tonnes, with production expected to be second-half weighted at both copper operations. At the Caraíba Operations, H2 2026 production is expected to benefit from higher grades from planned mine sequencing along with higher throughput levels. Production at the Tucumã Operation is expected to be modestly higher in H2 2026 as sustained higher plant throughput rates from ongoing process improvements are expected to offset lower grades.

At Xavantina, gold production from mining and processing operations is expected at the low end of the guided range of 40,000 to 50,000 ounces in 2026, reflecting the impact of extended downtime in H1 2026 related to the installation and tie-in of ventilation and cooling infrastructure and a slower ramp-up of mining activities in Q2. Gold production is expected to increase sequentially through the remainder of the year, with full-year production projected to be significantly second-half weighted.

Gold concentrate sales volumes are expected to increase significantly in H2 2026 with drier seasonal conditions and the commissioning of a mobile filter press and industrial dryer in late Q2 2026, which are expected to meaningfully reduce concentrate drying times. Gold concentrate sales from historic stockpiles are not included in Xavantina's guidance ranges, which capture only production from mining and processing operations.

Consolidated copper C1 cash cost(1) guidance is maintained in the range of $2.15 to $2.35 per pound produced. Costs are expected to decline sequentially through H2 2026, driven by increased production and higher processed grades at the Caraíba Operations as well as the expected benefits from higher byproduct revenues and improved smelting and refining terms relative to original guidance. If the current strength of the Brazilian real and inflationary pressures associated with the U.S.-Iran conflict persist through the remainder of the year, the Company estimates potential incremental impacts of approximately $0.10 per pound on reported consolidated copper C1 cash costs(1). The cash impact associated with the stronger Brazilian real is expected to be offset by approximately $40 million to $45 million of full-year realized gains from the Company's foreign exchange hedge program, assuming a USD/BRL exchange rate of 5.10 through year-end.

C1 cash cost(1) and AISC(1) guidance for Xavantina's mined gold production has been updated to $1,100 to $1,350 per ounce and $2,200 to $2,700 per ounce, respectively, reflecting production volumes that are expected to be at the low end of the maintained guidance range. Unit costs are expected to decline through H2 2026 as production volumes increase. If the current strength of the Brazilian real and inflationary pressures associated with the U.S.-Iran conflict persist through the remainder of the year, the Company estimates potential incremental impacts of approximately $100 per ounce on reported C1 cash costs(1) for mined gold. The cash impact of the stronger Brazilian real is expected to be offset by realized gains from the Company's foreign exchange hedge program.

Total capital expenditure guidance has been updated to $285 to $330 million, reflecting the approval of approximately $10 million for a new powerline at Xavantina to strengthen site infrastructure, support future growth opportunities and reduce power transmission rates. If the current strength of the Brazilian real and inflationary pressures associated with the U.S.-Iran conflict persist through the remainder of the year, the Company estimates potential incremental impacts of approximately $20 million to $25 million on reported capital expenditures. The cash impact of the stronger Brazilian real is expected to be offset by realized gains from the Company's foreign exchange hedge program.

2026 Production and Cost Guidance

Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company's SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risks factors.
(1) Please refer to the section titled "Reconciliation of Non-IFRS Measures" within this Press Release.

2026 Capital Expenditure Guidance

Figures presented in the table below are in USD millions.

Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's most recent AIF and Management of Risks and Uncertainties in the MD&A for complete risk factors.

CONFERENCE CALL DETAILS

The Company will hold a conference call on Thursday, August 6, 2026 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results. A results presentation will be available for download via the webcast link and in the Presentations section of the Company's website on the day of the conference call.

Reconciliation of Non-IFRS Measures

Financial results of the Company are presented in accordance with IFRS. The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, gold C1 cash cost, gold AISC, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

For additional details please refer to the Company's discussion of non-IFRS and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.

Copper C1 cash cost

The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.

The Caraíba Operations

The Tucumã Operation

Gold Production C1 cash cost and gold AISC

The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure.