Mineralised Construction at Cumbre Coya Prolonged to Over 170m Strike Size

HIGHLIGHTS

• Fourth quarter copper manufacturing was 11,760 tonnes, bringing full-year copper manufacturing to 43,857 tonnes
• Copper C1 money prices ^(*) for the quarter and 12 months have been $1.75 and $1.80, respectively. Together with the advantage of realized positive factors on designated international alternate hedges, fourth quarter and full-year copper C1 money prices ^(*) have been $1.59 and $1.68, respectively
• Fourth quarter gold manufacturing was 16,867 ounces, contributing to file full-year gold manufacturing of 59,222 ounces
• Gold C1 money prices ^(*) for the quarter and 12 months have been $413 and $422, respectively. All-in Sustaining Prices (“AISC”) ^(*) for a similar intervals have been $991 and $957, respectively
• Fourth quarter and full-year monetary outcomes mirror the continued execution of the Firm’s development initiatives, together with completion of the NX60 initiative, which resulted in file full-year working margins on the Xavantina Operations
  • Internet revenue attributable to the house owners of the Firm for the quarter and 12 months have been $36.5 million and $92.8 million, respectively, or $0.37 and $0.98, respectively, per share on a diluted foundation
  • Adjusted web revenue attributable to the house owners of the Firm ^(*) for the quarter and 12 months have been $20.7 million and $82.8 million, respectively, or $0.21 and $0.87, respectively, per share on a diluted foundation
  • Fourth quarter and full-year adjusted EBITDA ^(*) have been $50.3 million and $183.5 million, respectively

^(*) These are non-IFRS measures and should not have a standardized which means prescribed by IFRS and won’t be corresponding to comparable monetary measures disclosed by different issuers. Please discuss with the Firm’s dialogue of Non-IFRS measures in its Administration’s Dialogue and Evaluation for the 12 months ended December 31, 2023 and the Reconciliation of Non-IFRS Measures part on the finish of this press launch.

• The Firm achieved vital milestones throughout its natural development tasks
  • Building of the Tucumã Mission progressed considerably, reaching over 90% bodily completion as of February 2024. With manufacturing of copper think about schedule to start in H2 2024, the Firm’s transition from building to commissioning is underway. The entire direct undertaking capital estimate stays unchanged at roughly $310 million
  • The Caraíba mill growth, which is anticipated to extend mill throughput capability from 3.2 to 4.2 million tonnes each year, was accomplished in December 2023 with design capability achieved by year-end
  • Following the completion of floor infrastructure, the primary shaft sinking part for the Pilar Mine’s new exterior shaft commenced as deliberate in December 2023. The brand new exterior shaft element of the Pilar 3.0 initiative is absolutely contracted, and projected capital expenditures are inside price range

• Throughout the quarter, amid an unsure macroeconomic local weather, the Firm’s administration workforce prudently elected to fortify its steadiness sheet with a purchased deal fairness financing. Internet proceeds from the transaction of $104.3 million contributed to out there liquidity at year-end of $261.7 million, together with money and money equivalents of $111.7 million and $150.0 million of undrawn availability underneath the Firm’s senior secured revolving credit score facility
• The Firm is reaffirming its 2024 manufacturing, working value, and capital expenditure steering

“2023 was a cornerstone 12 months in advancing our development technique,” said David Strang, Chief Govt Officer. “Our investments over the previous few years place us effectively for the longer term at each the Xavantina Operations, the place we efficiently accomplished the NX60 initiative, and on the Caraíba Operations with the completion of our mill growth and the wonderful progress made on the brand new exterior shaft for the Pilar Mine.”

“Nevertheless, essentially the most vital transformation in our consolidated manufacturing profile and money flows is projected to start within the second half of this 12 months when manufacturing is scheduled to start on the Tucumã Mission. With bodily completion at over 90% and capital expenditures on the undertaking beginning to wind down, we’re approaching an thrilling inflection level once we anticipate to see these investments start to yield sturdy shareholder returns.”

FOURTH QUARTER AND FULL YEAR 2023 REVIEW

• Mining & Milling Operations
  • The Caraíba Operations processed 3.2 million tonnes of ore grading 1.49% copper, producing 43,857 tonnes of copper in focus for the 12 months after metallurgical recoveries of 91.4%
    • Greater mill throughput volumes and processed copper grades through the fourth quarter resulted in copper manufacturing of 11,760 tonnes in focus, representing a rise of 9.2% in comparison with the third quarter
    • Full-year mill throughput volumes elevated 12.8%, partially offsetting the affect of a deliberate lower in mined and processed copper grades in comparison with 2022
  • The Xavantina Operations processed 136,002 tonnes of ore grading 15.13 grams per tonne, producing a file 59,222 ounces of gold in 2023 after metallurgical recoveries of 89.5%
    • Fourth quarter processed gold grades continued to exceed expectations, averaging 17.18 grams per tonne and leading to manufacturing of 16,867 ounces for the quarter
    • The profitable completion of the NX60 initiative contributed to will increase in processed gold grades and gold manufacturing of 98.8% and 38.8%, respectively, in comparison with 2022

• Natural Development Tasks
  • The Firm continued to make vital building progress at its Tucumã Mission, attaining over 90% bodily completion as of February 2024. With manufacturing of copper think about schedule to start in H2 2024, the Firm’s transition from building to commissioning is underway. Key milestones embrace:
    • Website absolutely energized in January 2024 following commissioning of the primary substation and completion of the 16-kilometer energy line tie-in with the nationwide grid
    • Pre-stripping actions proceed to trace forward of schedule with roughly 25,000 tonnes of sulphide ore stockpiled for course of plant commissioning as on the finish of February 2024
    • Mechanical completion and sub-component commissioning (lubrication, hydraulic, electrical, instrumentation and automation programs) continues to progress on schedule
    • Dry commissioning of the crushing circuit, encompassing the first and secondary crushers in addition to screening and conveyance programs, was accomplished in February 2024, roughly one month forward of schedule
    • The entire direct undertaking capital estimate stays roughly $310 million
    • Thus far, the Tucumã Mission has recorded no lost-time accidents with over three million hours of labor accomplished since 2022
  • On the Caraíba Operations, the Firm made vital developments on its Pilar 3.0 initiative through the quarter. This initiative goals to rework the Pilar Mine right into a two-mine system able to sustaining annual ore manufacturing ranges of roughly 3.0 million tonnes
    • The Caraíba mill growth, which is anticipated to extend mill throughput capability from 3.2 to 4.2 million tonnes each year, was efficiently accomplished in December 2023 with design capability achieved by year-end
    • Following the completion of the head-frame, winders and supporting floor infrastructure, the primary shaft sinking part for the Pilar Mine’s new exterior shaft commenced as deliberate in December 2023. The brand new exterior shaft element of the Pilar 3.0 initiative is absolutely contracted, and projected capital expenditures are inside price range
  • The Xavantina Operations’ NX60 initiative was efficiently accomplished in 2023. In consequence, the Firm achieved file gold manufacturing for the 12 months and expects to maintain annual gold manufacturing ranges of 55,000 to 60,000 ounces transferring ahead

OPERATING AND FINANCIAL HIGHLIGHTS

^{(1) EBITDA, adjusted EBITDA, adjusted web revenue (loss) attributable to house owners of the Firm, adjusted web revenue (loss) per share attributable to house owners of the Firm, web (money) debt, working capital, copper C1 money value, copper C1 money value together with international alternate hedges, gold C1 money value and gold AISC are non-IFRS measures. These measures should not have a standardized which means prescribed by IFRS and won’t be corresponding to comparable monetary measures disclosed by different issuers. Please discuss with the Firm’s dialogue of Non-IFRS measures in its Administration’s Dialogue and Evaluation for the 12 months ended December 31, 2023 and the Reconciliation of Non-IFRS Measures part on the finish of this press launch.
(2) Copper C1 money value together with international alternate hedges (per lb) in This autumn 2023 and Fiscal 2023 have been $1.59 and $1.68, respectively, in comparison with $1.59 in This autumn 2022 and $1.67 in Fiscal 2022.}

2024 PRODUCTION AND COST GUIDANCE ^(*)

The Firm’s 2024 manufacturing steering displays the continuing execution of its natural development technique, together with the profitable completion of the Xavantina Operations’ NX60 initiative in addition to the anticipated completion of the Tucumã Mission, which stays on monitor to start manufacturing in H2 2024. In consequence, the Firm expects to ship consolidated copper manufacturing of 59,000 to 72,000 tonnes in focus and gold manufacturing of 55,000 to 60,000 ounces.

The Firm’s 2024 copper C1 money value steering on a consolidated foundation is $1.50 to $1.75. This vary incorporates a number of key updates relative to earlier 2024 C1 money value projections, together with a revised copper C1 money value calculation methodology, as detailed within the Firm’s press launch dated February 21, 2024.

On the Xavantina Operations, the gold C1 money value steering vary of $550 to $650 displays improved fastened value efficiencies pushed by larger anticipated gold manufacturing, partially offsetting the affect of deliberate decreases to mined and processed gold grades. The gold AISC steering vary for 2024 is $1,050 to $1,150.

The Firm’s up to date value steering for 2024 assumes a international alternate price of 5.00 BRL per USD, a gold value of $1,900 per ounce and a silver value of $23.00 per ounce.

^{*  Steerage relies on sure estimates and assumptions, together with however not restricted to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical efficiency. Please discuss with the Firm’s most up-to-date Annual Info Type and Administration of Dangers and Uncertainties within the MD&A for full danger components.
(1) Please discuss with the part titled “Various Efficiency (Non-IFRS) Measures” throughout the MD&A.}

2024 CAPITAL EXPENDITURE GUIDANCE ^(*)

2024 capital expenditures are anticipated to lower to a spread of $299 to $349 million because of the anticipated completion of the Tucumã Mission, which is on monitor to start manufacturing within the H2 2024. In consequence, capital spend is anticipated to be weighted in the direction of H1 2024.

The Firm’s capital expenditure steering contains an estimated $30 to $40 million allotted to consolidated exploration applications. This allocation contains roughly $20 million designated for drilling actions on the Caraíba Operations, together with expenditures associated to the Curaçá Valley nickel exploration program. Moreover, the Firm has budgeted roughly $6 million for the primary part of labor on the Furnas Mission.

Capital expenditure steering assumes an alternate price of 5.10 USD:BRL for the Tucumã Mission primarily based on designated international alternate hedges with a weighted common ceiling and ground of 5.10 and 5.23 USD:BRL, respectively. All different capital expenditures assume an alternate price of 5.00 USD:BRL. Figures offered beneath are in USD hundreds of thousands.

^{(*) Steerage relies on sure estimates and assumptions, together with however not restricted to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical efficiency. Please discuss with the Firm’s most up-to-date Annual Info Type and Administration of Dangers and Uncertainties within the MD&A for full danger components.}

CONFERENCE CALL DETAILS

The Firm will maintain a convention name on Friday, March 8, 2024 at 11:30 am Japanese time (8:30 am Pacific time) to debate these outcomes.

Reconciliation of Non-IFRS Measures

Monetary outcomes of the Firm are offered in accordance with IFRS. The Firm makes use of sure different efficiency (non-IFRS) measures to observe its efficiency, together with copper C1 money value, copper C1 money value together with international alternate hedges, gold C1 money value, gold AISC, EBITDA, adjusted EBITDA, adjusted web revenue attributable to house owners of the Firm, adjusted web revenue per share, web (money) debt, working capital and out there liquidity. These efficiency measures don’t have any standardized which means prescribed inside usually accepted accounting ideas underneath IFRS and, subsequently, quantities offered will not be corresponding to comparable measures offered by different mining firms. These non-IFRS measures are supposed to supply supplemental info and shouldn’t be thought-about in isolation or as an alternative choice to measures of efficiency ready in accordance with IFRS.

For added particulars please discuss with the Firm’s dialogue of non-IFRS and different efficiency measures in its Administration’s Dialogue and Evaluation for the 12 months ended December 31, 2023 which is on the market on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Copper C1 money value and copper C1 money value together with international alternate hedges

The next desk offers a reconciliation of copper C1 money value to value of manufacturing, its most straight comparable IFRS measure.

Gold C1 money value and gold AISC

The next desk offers a reconciliation of gold C1 money value and gold AISC to value of manufacturing, its most straight comparable IFRS measure.

Earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA

The next desk offers a reconciliation of EBITDA and Adjusted EBITDA to web revenue, its most straight comparable IFRS measure.

^{Word: In 2023 Q3, EBITDA has been up to date to include the adjustment of finance revenue. EBITDA and Adjusted EBITDA for comparative intervals have been up to date accordingly.}

Adjusted web revenue attributable to house owners of the Firm and Adjusted web revenue per share attributable to house owners of the Firm

The next desk offers a reconciliation of Adjusted web revenue attributable to house owners of the Firm and Adjusted EPS to web revenue attributable to the house owners of the Firm, its most straight comparable IFRS measure.

Internet (Money) Debt

The next desk offers a calculation of web (money) debt primarily based on quantities offered within the Firm’s consolidated monetary statements as on the intervals offered.

Working Ca pital and Accessible Liquidity

The next desk offers a calculation for these primarily based on quantities offered within the Firm’s consolidated monetary statements as on the intervals offered.

ABOUT ERO COPPER CORP

Ero is a high-margin, high-growth, low carbon-intensity copper producer with operations in Brazil and company headquarters in Vancouver, B.C. The Firm’s main asset is a 99.6% curiosity within the Brazilian copper mining firm, Mineração Caraíba S.A. (“MCSA”), 100% proprietor of the Firm’s Caraíba Operations (previously referred to as the MCSA Mining Complicated), that are situated within the Curaçá Valley, Bahia State, Brazil and embrace the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Mission (previously referred to as Boa Esperança), an IOCG-type copper undertaking situated in Pará, Brazil. The Firm additionally owns 97.6% of NX Gold S.A. (“NX Gold”) which owns the Xavantina Operations (previously referred to as the NX Gold Mine), comprised of an working gold and silver mine situated in Mato Grosso, Brazil. Extra info on the Firm and its operations, together with technical experiences on the Caraíba Operations, Xavantina Operations and Tucumã Mission, may be discovered on the Firm’s web site (www.erocopper.com), on SEDAR+ (www.sedarplus.ca), and on EDGAR (www.sec.gov). The Firm’s shares are publicly traded on the Toronto Inventory Change and the New York Inventory Change underneath the image “ERO”.

FOR MORE INFORMATION, PLEASE CONTACT

Courtney Lynn, SVP, Company Improvement, Investor Relations & Sustainability
(604) 335-7504
information@erocopper.com

CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS

This press launch accommodates “forward-looking statements” throughout the which means of the US Non-public Securities Litigation Reform Act of 1995 and “forward-looking info” throughout the which means of relevant Canadian securities laws (collectively, “forward-looking statements”). Ahead-looking statements embrace statements that use forward-looking terminology akin to “might”, “may”, “would”, “will”, “ought to”, “intend”, “goal”, “plan”, “anticipate”, “price range”, “estimate”, “forecast”, “schedule”, “anticipate”, “imagine”, “proceed”, “potential”, “view” or the unfavorable or grammatical variation thereof or different variations thereof or comparable terminology. Ahead-looking statements might embrace, however will not be restricted to, statements with respect to the Firm’s anticipated manufacturing, working prices and capital expenditures on the Caraíba Operations, the Tucumã Mission and the Xavantina Operations; estimated completion dates for sure milestones, together with preliminary manufacturing on the Tucumã Mission; the power of the Firm to attain copper manufacturing ranges as at the moment projected on the Tucumã Mission; the graduation of, and price range for, the primary part of labor pursuant to the Furnas Mission earn-in settlement and execution of the definitive earn-in settlement with Vale Base Metals in accordance with the phrases of the binding letter of intent; and another assertion that will predict, forecast, point out or suggest future plans, intentions, ranges of exercise, outcomes, efficiency or achievements.

Ahead-looking statements are topic to quite a lot of recognized and unknown dangers, uncertainties and different components that might trigger precise outcomes, actions, occasions, situations, efficiency or achievements to materially differ from these expressed or implied by the forward-looking statements, together with, with out limitation, dangers mentioned on this press launch and within the Firm’s Annual Info Type for the 12 months ended December 31, 2023 (“AIF”) underneath the heading “Danger Components”. The dangers mentioned on this press launch and within the AIF will not be exhaustive of the components that will have an effect on any of the Firm’s forward-looking statements. Though the Firm has tried to determine vital components that might trigger precise outcomes, actions, occasions, situations, efficiency or achievements to vary materially from these contained in forward-looking statements, there could also be different components that trigger outcomes, actions, occasions, situations, efficiency or achievements to vary from these anticipated, estimated or supposed.

Ahead-looking statements will not be a assure of future efficiency. There may be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such statements. Ahead-looking statements contain statements in regards to the future and are inherently unsure, and the Firm’s precise outcomes, achievements or different future occasions or situations might differ materially from these mirrored within the forward-looking statements resulting from quite a lot of dangers, uncertainties and different components, together with, with out limitation, these referred to herein and within the AIF underneath the heading “Danger Components”.

The Firm’s forward-looking statements are primarily based on the assumptions, beliefs, expectations and opinions of administration on the date the statements are made, lots of which can be troublesome to foretell and past the Firm’s management. In reference to the forward-looking statements contained on this press launch and within the AIF, the Firm has made sure assumptions about, amongst different issues: beneficial fairness and debt capital markets; the power to boost any vital extra capital on cheap phrases to advance the manufacturing, improvement and exploration of the Firm’s properties and belongings; future costs of copper, gold and different steel costs; the timing and outcomes of exploration and drilling applications; the accuracy of any mineral reserve and mineral useful resource estimates; the geology of the Caraíba Operations, the Xavantina Operations and the Tucumã Mission being as described within the respective technical report for every property; manufacturing prices; the accuracy of budgeted exploration, improvement and building prices and expenditures; the worth of different commodities akin to gasoline; future foreign money alternate charges and rates of interest; working situations being beneficial such that the Firm is ready to function in a protected, environment friendly and efficient method; work power persevering with to stay wholesome within the face of prevailing epidemics, pandemics or different well being dangers, political and regulatory stability; the receipt of governmental, regulatory and third social gathering approvals, licenses and permits on beneficial phrases; acquiring required renewals for present approvals, licenses and permits on beneficial phrases; necessities underneath relevant legal guidelines; sustained labour stability; stability in monetary and capital items markets; availability of apparatus; constructive relations with native teams and the Firm’s means to fulfill its obligations underneath its agreements with such teams; and satisfying the phrases and situations of the Firm’s present mortgage preparations. Though the Firm believes that the assumptions inherent in forward-looking statements are cheap as of the date of this press launch, these assumptions are topic to vital enterprise, social, financial, political, regulatory, aggressive and different dangers and uncertainties, contingencies and different components that might trigger precise actions, occasions, situations, outcomes, efficiency or achievements to be materially totally different from these projected within the forward-looking statements. The Firm cautions that the foregoing checklist of assumptions shouldn’t be exhaustive. Different occasions or circumstances may trigger precise outcomes to vary materially from these estimated or projected and expressed in, or implied by, the forward-looking statements contained on this press launch. There may be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such statements. Accordingly, readers mustn’t place undue reliance on forward-looking statements.

Ahead-looking statements contained herein are made as of the date of this press launch and the Firm disclaims any obligation to replace or revise any forward-looking assertion, whether or not because of new info, future occasions or outcomes or in any other case, besides as and to the extent required by relevant securities legal guidelines.

CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

Until in any other case indicated, all reserve and useful resource estimates included on this press launch and the paperwork included by reference herein have been ready in accordance with Nationwide Instrument 43-101, Requirements of Disclosure for Mineral Tasks (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) — CIM Definition Requirements on Mineral Assets and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Requirements”). NI 43-101 is a rule developed by the Canadian Securities Directors that establishes requirements for all public disclosure an issuer makes of scientific and technical info regarding mineral tasks. Canadian requirements, together with NI 43-101, differ considerably from the necessities of the US Securities and Change Fee (the “SEC”), and reserve and useful resource info included herein will not be corresponding to comparable info disclosed by U.S. firms. Particularly, and with out limiting the generality of the foregoing, this press launch and the paperwork included by reference herein use the phrases “measured sources,” “indicated sources” and “inferred sources” as outlined in accordance with NI 43-101 and the CIM Requirements.

Additional to current amendments, mineral property disclosure necessities in the US (the “U.S. Guidelines”) are ruled by subpart 1300 of Regulation S-Okay of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) which differ from the CIM Requirements. As a international non-public issuer that’s eligible to file experiences with the SEC pursuant to the multi-jurisdictional disclosure system (the “MJDS”), Ero shouldn’t be required to supply disclosure on its mineral properties underneath the U.S. Guidelines and can proceed to supply disclosure underneath NI 43-101 and the CIM Requirements. If Ero ceases to be a international non-public issuer or loses its eligibility to file its annual report on Type 40-F pursuant to the MJDS, then Ero will likely be topic to the U.S. Guidelines, which differ from the necessities of NI 43-101 and the CIM Requirements.

Pursuant to the brand new U.S. Guidelines, the SEC acknowledges estimates of “measured mineral sources”, “indicated mineral sources” and “inferred mineral sources”. As well as, the definitions of “confirmed mineral reserves” and “possible mineral reserves” underneath the U.S. Guidelines are actually “considerably comparable” to the corresponding requirements underneath NI 43-101. Mineralization described utilizing these phrases has a higher quantity of uncertainty as to its existence and feasibility than mineralization that has been characterised as reserves. Accordingly, U.S. buyers are cautioned to not assume that any measured mineral sources, indicated mineral sources, or inferred mineral sources that Ero experiences are or will likely be economically or legally mineable. Additional, “inferred mineral sources” have a higher quantity of uncertainty as to their existence and as as to if they are often mined legally or economically. Underneath Canadian securities legal guidelines, estimates of “inferred mineral sources” might not kind the idea of feasibility or pre-feasibility research, besides in uncommon circumstances. Whereas the above phrases underneath the U.S. Guidelines are “considerably comparable” to the requirements underneath NI 43-101 and CIM Requirements, there are variations within the definitions underneath the U.S. Guidelines and CIM Requirements. Accordingly, there isn’t any assurance any mineral reserves or mineral sources that Ero might report as “confirmed mineral reserves”, “possible mineral reserves”, “measured mineral sources”, “indicated mineral sources” and “inferred mineral sources” underneath NI 43-101 could be the identical had Ero ready the reserve or useful resource estimates underneath the requirements adopted underneath the U.S. Guidelines.