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Ero Copper (NYSE: ERO) lifts Q2 2026 profit, boosts liquidity and maintains copper guidance

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

Ero Copper Corp. reported strong Q2 2026 operating and financial performance. Revenue was $284.3 million, up from $163.5 million a year earlier, and net income was $90.7 million. Consolidated copper production was 17,315 tonnes at C1 cash costs of $2.42 per pound, while gold output totaled 20,553 ounces, lifting gold sales 65% quarter‑on‑quarter.

Cash flow from operations reached $137.9 million and adjusted EBITDA $144.0 million, supporting continued deleveraging; net debt fell to $452.7 million and available liquidity rose to $181.7 million. Management reaffirmed 2026 copper production guidance of 67,500–77,500 tonnes and consolidated copper C1 cash cost guidance of $2.15–$2.35 per pound.

Gold production guidance at Xavantina is maintained at 40,000–50,000 ounces, but cost guidance was raised, and capital expenditure guidance increased to $285–$330 million, including a new powerline. The company highlighted foreign‑exchange hedging gains and emerging savings from its OneEro efficiency program. It also continued advancing the Furnas Copper‑Gold Project toward a planned 2027 pre‑feasibility study.

Positive

  • Q2 revenue increased to $284.3 million from $163.5 million in Q2 2025.
  • Cash flow from operations reached $137.9 million and adjusted EBITDA $144.0 million in Q2 2026.
  • Net debt declined to $452.7 million with available liquidity rising to $181.7 million.

Negative

  • Gold AISC guidance was raised to $2,200–$2,700 per ounce for 2026.
  • Total 2026 capital expenditure guidance increased to $285–$330 million, with potential extra inflation and FX impacts.
Q2 2026 Revenue $284.3 million Three months ended June 30, 2026
Q2 2026 Net Income $90.7 million Three months ended June 30, 2026
Q2 2026 Adjusted EBITDA $144.0 million Non-IFRS measure for Q2 2026
Q2 2026 Copper Production 17,315 tonnes Consolidated copper production in concentrate
Consolidated Copper C1 Cash Cost $2.42 per pound Q2 2026 total copper operations
Q2 2026 Gold Sold 17,016 ounces Gold sold from Xavantina Operations
Available Liquidity $181.7 million As of June 30, 2026
Net Debt $452.7 million As of June 30, 2026
C1 cash cost financial
"Consolidated copper production totaled 17,315 tonnes in concentrate at C1 cash costs..."
C1 cash cost is a per-unit measure of the direct cash outlay required to produce a commodity, covering day-to-day expenses like extraction, processing and on-site labor but typically excluding long-term investments such as major equipment replacement or development projects. Investors use it like a baker watching the cost of ingredients per loaf: it shows operating efficiency and helps compare producers’ short-term profitability and cash generation before bigger capital needs are considered.
All-in sustaining cost financial
"gold production C1 cash costs(1) and AISC(1) improved quarter-on-quarter..."
All-in sustaining cost (AISC) is a per-unit measure that shows the full, ongoing cost to produce a commodity, typically an ounce of metal, including direct mining costs, sustaining capital (ongoing equipment and mine upkeep), royalties, and general overhead. For investors it matters because AISC reveals the durable earning power and true profit margin of a producer—like calculating the total monthly cost to own and operate a car to judge whether selling rides is profitable over time.
foreign exchange hedge program financial
"The Company’s foreign exchange hedge program...generated realized gains of $12.7 million..."
Pre-Feasibility Study technical
"in support of a Pre-Feasibility Study ("PFS") expected to be published in 2027."
A pre-feasibility study is an initial assessment that evaluates whether a proposed project or investment idea is worth exploring further. It involves examining basic factors like costs, potential benefits, and possible challenges, similar to conducting a preliminary check before deciding to invest more time and resources. This helps investors determine if pursuing the project further is practical and likely to be successful.
net present value (8%) financial
"including an after-tax net present value (8%) of $2.0 billion..."
Xavantina Gold Stream financial
"precious metals purchase agreement (the "Xavantina Gold Stream") with RGLD Gold AG..."

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FAQ

How did Ero Copper (ERO) perform financially in Q2 2026?
Ero Copper reported Q2 2026 revenue of $284.3 million and net income of $90.7 million. Gross profit was $121.4 million, while EBITDA and adjusted EBITDA were $159.8 million and $144.0 million, respectively, supported by strong copper and gold production and favorable metals prices.

What were Ero Copper’s (ERO) production and cost metrics in Q2 2026?
Consolidated copper production was 17,315 tonnes at C1 cash costs of $2.42/lb, and gold output totaled 20,553 oz. Gold production C1 cash cost was $1,586/oz and AISC $2,881/oz, with significant contributions from historic gold concentrate recovery.

What 2026 production guidance did Ero Copper (ERO) reaffirm for copper and gold?
Ero Copper maintained 2026 copper production guidance at 67,500–77,500 tonnes and consolidated copper C1 cash costs at $2.15–$2.35/lb. At Xavantina, mined gold output is still guided at 40,000–50,000 oz, expected toward the low end, with production heavily weighted to the second half.

What is Ero Copper’s (ERO) liquidity and debt position as of June 30, 2026?
As of June 30, 2026, Ero Copper had cash and cash equivalents of $101.7 million and available liquidity of $181.7 million. Net debt stood at $452.7 million, supported by a $200 million senior revolving credit facility with $80.0 million undrawn.

How are foreign exchange hedges affecting Ero Copper’s (ERO) results?
The company’s BRL hedge program generated $12.7 million realized gains in Q2 2026 and $19.9 million year‑to‑date. Assuming a USD/BRL rate of 5.10, total 2026 realized gains are expected at approximately $40–$45 million, helping offset stronger BRL-driven cost pressures.

What progress has Ero Copper (ERO) made at the Furnas Copper-Gold Project?
Ero Copper advanced Furnas with over 31,000 meters drilled year‑to‑date in 2026, within a 50,000‑meter program. Phase 2 and early Phase 3 assays support high‑grade continuity, and a pre‑feasibility study is targeted for 2027, following the March 2026 PEA with a $2.0 billion NPV(8%).


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the month of August 2026


Commission File Number 001-40459

ERO COPPER CORP.
(Translation of registrant's name into English)

625 Howe Street, Suite 1050
Vancouver, British Columbia V6C 2T6
Canada
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☐    Form 40-F ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).         

Exhibits 99.1, 99.2 and 99.3 of this Form 6-K is incorporated by reference as additional exhibit to the registrant’s Registration Statement on Form S-8 (File NO. 333-264821) and Registration Statement on Form F-10 (File NO. 333-289969).








Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Ero Copper Corp.
By:/s/ Deepk Hundal
Name: Deepk Hundal
Title: EVP, General Counsel and Corporate Secretary
Date: August 5, 2026




















Exhibit Index


Exhibit NumberDescription of Document
99.1
Management’s Discussion and Analysis for the three and six months ended June 30, 2026
99.2
Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2026 and 2025
99.3
Press Release dated August 5, 2026













ero-copper_logoxeroxrgbb.jpg


MANAGEMENT’S DISCUSSION
AND ANALYSIS


FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2026



1050 – 625 Howe Street, Vancouver, B.C., Canada V6C 2T6
Phone: 604-449-9244 | Website: www.ero.com | Email: info@ero.com


TABLE OF CONTENTS
BUSINESS OVERVIEW
1
HIGHLIGHTS
2
REVIEW OF OPERATIONS
The Caraíba Operations
7
The Tucumã Operation
8
The Xavantina Operations
9
2026 GUIDANCE
11
REVIEW OF FINANCIAL RESULTS
Review of quarterly results
13
Review of annual results
15
Summary of quarterly results for most recent eight quarters
17
OTHER DISCLOSURES
Liquidity, Capital Resources, and Contractual Obligations
18
Management of Risks and Uncertainties
20
Other Financial Information
23
Accounting Policies, Judgments and Estimates
24
Capital Expenditures
25
Alternative Performance (NON-IFRS) Measures
26
Disclosure Controls and Procedures and Internal Control over Financial Reporting
37
Notes and Cautionary Statements
37
Ero Copper Corp. June 30, 2026 MD&A

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) has been prepared as at August 5, 2026 and should be read in conjunction with the unaudited condensed consolidated interim financial statements of Ero Copper Corp. (“Ero”, the “Company”, or “we”) as at, and for the three and six months ended June 30, 2026, and related notes thereto, which are prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting as issued by the International Accounting Standards Board (the “IASB”). All references in this MD&A to “Q2 2026” and “Q2 2025” are to the three months ended June 30, 2026 and June 30, 2025, respectively, and all references to “YTD 2026” and “YTD 2025” are to the six months ended June 30, 2026 and June 30, 2025, respectively. This MD&A should be read in conjunction with the Company’s December 31, 2025 audited consolidated financial statements and MD&A. All dollar amounts are expressed in United States (“US”) dollars and tabular amounts are expressed in thousands of US dollars, unless otherwise indicated. References to “$”, “US$”, “dollars”, or “USD” are to US dollars, references to “C$” are to Canadian dollars, and references to “R$” or “BRL” are to Brazilian Reais.

This MD&A refers to various alternative performance (Non-IFRS) measures, including copper C1 cash cost, realized copper price, gold C1 cash cost, gold all-in sustaining cost (“AISC”), realized gold price, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share attributable to owners of the Company, net (cash) debt, working capital and available liquidity. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" for a discussion of non-IFRS measures.

This MD&A contains “forward‐looking statements” that are subject to risk factors set out in a cautionary note contained at the end of this MD&A. The Company cannot assure investors that such statements will prove to be accurate, and actual results and future events may differ materially from those anticipated in such statements. The results for the periods presented are not necessarily indicative of the results that may be expected for any future period. Investors are cautioned not to place undue reliance on such forward-looking statements. All information contained in this MD&A is current and has been approved by the Board of Directors of the Company (the “Board”) as of August 5, 2026, unless otherwise stated.

BUSINESS OVERVIEW

Ero is a Brazil-focused, growth-oriented mining company with a diversified portfolio of copper and gold assets, headquartered in Vancouver, B.C. The Company operates two copper mines – the Caraíba Operations in Bahia State and the Tucumã Operation in Pará State – as well as the Xavantina Operations, a producing gold mine in Mato Grosso State. In addition to its operating assets, Ero is advancing the Furnas Copper-Gold Project, located in the mineral-rich Carajás Province in Pará State, through a definitive earn-in agreement with Vale Base Metals to acquire a 60% interest in the project.
Ero’s operating philosophy is grounded in a commitment to safety, operational excellence, and the responsible production of minerals essential for a better tomorrow. The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO.” Additional information, including technical reports on the Company’s operations and projects, is available on the Company’s website (www.ero.com), SEDAR+ (www.sedarplus.ca), and on EDGAR (www.sec.gov).
Ero Copper Corp. June 30, 2026 MD&A | Page 1

HIGHLIGHTS

Operating Highlights
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Copper (Caraíba Operations)
Ore Processed (tonnes)
1,074,182 
1,072,209 
791,946 
2,146,391 
1,484,847 
Grade (% Cu)
0.87 
0.93 
1.27 
0.90 
1.23 
Cu Production (tonnes)
8,351 
8,826 
9,162 
17,177 
16,519 
Cu Production (lbs)
18,410,934 
19,458,721 
20,198,967 
37,869,655 
36,418,092 
Cu Sold in Concentrate (tonnes)
7,926 
9,205 
9,387 
17,131 
16,336 
Cu Sold in Concentrate (lbs)
17,473,566 
20,293,558 
20,696,749 
37,767,124 
36,014,860 
Cu C1 Cash Cost(1)
$
2.76 
$
2.79 
$
2.07 
$
2.77 
$
2.13 
Copper (Tucumã Operation)
Ore Processed (tonnes)
715,415 
563,717 
418,699 
1,279,132 
713,013 
Grade (% Cu)
1.44 
1.66 
1.74 
1.53 
1.92 
Cu Production (tonnes)
8,964 
8,461 
6,351 
17,425 
11,418 
Cu Production (lbs)
19,762,521 
18,652,405 
14,002,338 
38,414,926 
25,173,161 
Cu Sold in Concentrate (tonnes)
8,581 
8,751 
5,968 
17,332 
11,136 
Cu Sold in Concentrate (lbs)
18,918,156 
19,292,160 
13,157,666 
38,210,316 
24,551,156 
Cu C1 Cash Cost(1)(2)
$
2.10 
$
1.97 
$
— 
$
2.04 
$
— 
Total Copper
Cu Production (tonnes)
17,315 
17,287 
15,513 
34,602 
27,937 
Cu Production (lbs)
38,173,455 
38,111,126 
34,201,305 
76,284,581 
61,591,253 
Cu Sold in Concentrate (tonnes)
16,507 
17,956 
15,355 
34,463 
27,472 
Cu Sold in Concentrate (lbs)
36,391,722 
39,585,718 
33,854,415 
75,977,440 
60,566,016 
Realized Copper Price(1)
$
5.78 
$
5.53 
$
4.12 
$
5.65 
$
4.10 
Cu C1 Cash Cost(1)(2)
$
2.42 
$
2.39 
$
2.07 
$
2.40 
$
2.13 
Gold (Xavantina Operations)
Ore Processed (tonnes)
48,564 
37,128 
37,829 
85,692 
71,057 
Grade (g / tonne)
6.20 
5.66 
7.11 
5.97 
6.99 
Au Production (oz)
8,693 
5,495 
7,743 
14,188 
14,381 
Historic Au Concentrate Recovered (oz)
11,860 
2,112 
— 
13,972 
— 
Total Au (oz)
20,553 
7,607 
7,743 
28,160 
14,381 
Au Sold in Doré (oz)
6,663 
6,019 
8,276 
12,682 
14,110 
Au Sold in Concentrate (oz)(3)
10,353 
4,311 
— 
14,664 
— 
Au Sold (oz)
17,016 
10,330 
8,276 
27,346 
14,110 
Au Production C1 Cash Cost(1)
$
1,586 
$
2,120 
$
1,115 
$
1,793 
$
1,108 
Au Production AISC(1)
$
2,881 
$
4,441 
$
2,234 
$
3,485 
$
2,231 
(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
(2)    The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, copper C1 cash costs for Tucumã and consolidated copper operations reflect only Tucumã's costs from Q3 2025 onward.
(3)    Gold sold in concentrate includes gold ounces produced in flotation and the historic gold concentrate stockpile.        
Ero Copper Corp. June 30, 2026 MD&A | Page 2

Financial Highlights
($ in millions, except per share amounts)
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Revenues
$
284.3 
$
263.2 
$
163.5 
$
547.5 
$
288.6 
Gross profit
121.4 
105.9 
67.3 
227.3 
122.8 
EBITDA(1)
159.8 
175.5 
114.2 
335.3 
232.0 
Adjusted EBITDA(1)
144.0 
125.2 
82.7 
269.2 
145.9 
Cash flow from operations
137.9 
92.8 
90.3 
230.6 
155.7 
Net income
90.7 
109.3 
71.0 
200.1 
151.7 
Net income attributable to owners of the Company
89.5 
108.8 
70.5 
198.3 
150.8 
- Per share (basic)
0.86 
1.04 
0.68 
1.90 
1.46 
- Per share (diluted)
0.85 
1.04 
0.68 
1.87 
1.45 
Adjusted net income attributable to owners of the Company(1)
87.4 
72.4 
48.1 
159.8 
84.0 
- Per share (basic)
0.84 
0.69 
0.46 
1.53 
0.81 
- Per share (diluted)
0.83 
0.69 
0.46 
1.51 
0.81 
Cash, cash equivalents, and short-term investments
101.7 
91.2 
68.3 
101.7 
68.3 
Working capital (deficit)(1)
87.7 
66.2 
(33.5)
87.7 
(33.5)
Available liquidity(1)
181.7 
146.2 
113.3 
181.7 
113.3 
Net debt(1)
452.7 
490.7 
559.1 
452.7 
559.1 
(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

Q2 2026 Highlights
Strong performance at the Company's copper operations, combined with increased gold production and sales, drove increased cash flow generation and supported continued deleveraging during the period.
•Consolidated copper production totaled 17,315 tonnes in concentrate at C1 cash costs(1) of $2.42 per pound produced.
◦The Caraíba Operations produced 8,351 tonnes of copper in concentrate, driven by slightly higher plant throughput and recovery rates, offset by lower planned copper grades. C1 cash costs(1) were $2.76 per pound produced.
◦The Tucumã Operation delivered 8,964 tonnes of copper in concentrate, supported by a 27% increase in plant throughput partially offset by planned lower copper grades. C1 cash costs(1) were $2.10 per pound produced.
•Gold from the Xavantina Operations totaled 20,553 ounces, representing a 170% quarter-on-quarter increase.
◦Mined 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 during the quarter. Consequently, gold production C1 cash
Ero Copper Corp. June 30, 2026 MD&A | Page 3

costs(1) and AISC(1) improved quarter-on-quarter by 25% and 35%, respectively, to $1,586 and $2,881 per ounce.
◦Gold recovered from the historic gold 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.
◦As a result, gold sales in the period increased 65% to 17,016 ounces, comprised of 6,663 ounces of gold doré and 10,353 ounces of gold in concentrates, including contributions from Xavantina's historic gold concentrate program.
•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.
•Solid operational execution across the portfolio and favorable metals prices drove strong financial results, highlighted by 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% from the previous 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, reflecting strong cash generation alongside continued debt reduction.
◦Available liquidity(1) included $101.7 million in cash and cash equivalents and $80.0 million of undrawn availability under the Company's senior secured revolving credit facility ("Senior Revolving Credit Facility").
Ero Copper Corp. June 30, 2026 MD&A | Page 4

◦During the quarter, the Company repaid $25.0 million on the Senior Revolving Credit Facility, contributing to a reduction in total balance sheet debt to $554.4 million, from $581.9 million at the end of Q1 2026.
◦Subsequent to quarter-end, the Company made additional repayments of $25.0 million against the Senior Revolving Credit Facility, supported by cash receipts from ongoing sales activity, bringing total repayments in 2026 on the Senior Revolving Credit Facility to $60.0 million as of the end of July.

Reaffirming copper production and cost guidance ranges; maintaining gold production guidance and updating cost and capital expenditure guidance at the Xavantina Operations.
•Consolidated full-year copper production guidance is maintained in the range of 67,500 to 77,500 tonnes, with production expected to be higher in H2 2026 at both copper operations.
◦At the Caraíba Operations, H2 2026 copper production is expected to benefit from higher anticipated plant throughput and sequentially higher mined and processed copper grades.
◦At the Tucumã Operation, sustained higher throughput rates from ongoing process improvements are expected to offset lower planned copper grades in H2 2026.
•Consolidated copper C1 cash cost(1) guidance is maintained in the range of $2.15 to $2.35 per pound produced.
•Mined gold production from the Xavantina 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 slower ramp-up of mining activities in Q2. Mined 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, along with the commissioning of a mobile filter press and industrial dryer in late Q2 2026, both expected to meaningfully reduce concentrate drying times.
•Full-year mined gold production C1 cash cost(1) and AISC(1) guidance 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, 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.

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
Ero Copper Corp. June 30, 2026 MD&A | Page 5

The Company continues to advance the Furnas Copper-Gold Project with full Phase 2 and early Phase 3 assay results demonstrating high-grade continuity of the SE and NW zones and extensions of mineralization to depth and along strike.(1)
•During Q2 2026, the Company received full assay results for the 17,000-meter Phase 2 drill program that was completed in Q4 2025 as well as assay results on the first 7,000 meters of the 45,000-meter Phase 3 drill program that remains on track to be completed in 2026. Results continue to demonstrate high-grade continuity within the SE and NW zones and extension of mineralization both to depth and along strike adjacent to planned underground infrastructure described in the Preliminary Economic Assessment ("PEA")(2).
•The Company is well-advanced across additional technical work streams including permitting, advanced geotechnical drilling, hydrogeological studies, ongoing environmental baseline studies and confirmatory metallurgical testwork in support of a Pre-Feasibility Study ("PFS") expected to be published in 2027. Results from ongoing metallurgical testing continue to support the proposed metallurgical process flowsheet outlined in the PEA(2) and validate recoveries for copper, gold and silver as well as concentrate quality parameters.
•During Q2 2026, the Company completed over 16,000 meters of drilling at Furnas (over 31,000 meters year-to-date) as part of the 50,000-meter 2026 drill program. The 2026 drill program is focused on two primary objectives: (i) upgrading inferred mineral resources to higher confidence categories ahead of future technical studies and (ii) extending mineralization along strike within the high-grade zones adjacent to planned infrastructure.
•The Furnas PEA(2), which was filed on SEDAR+ on March 30, 2026, outlines a large-scale, long-life operation with compelling economics, including an after-tax net present value (8%) of $2.0 billion and a 27.0% after-tax internal rate of return based on long-term copper, gold and silver prices of $4.60 per pound, $3,300 per ounce, and $40.00 per ounce, respectively.

The PEA(2) is preliminary in nature and includes inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA(2) will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.


(1)    For more information on the Phase 2 and 3 assay results, please see the Company's press release dated June 10, 2026.
(2)     For more information on the PEA, please see the Company's press release dated March 30, 2026.
Ero Copper Corp. June 30, 2026 MD&A | Page 6

REVIEW OF OPERATIONS
The Caraíba Operations
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Ore mined (tonnes)
1,098,614 
985,577 
792,764 
2,084,191 
1,489,003 
Ore processed (tonnes)
1,074,182 
1,072,209 
791,946 
2,146,391 
1,484,847 
Grade (% Cu)
0.87 
0.93 
1.27 
0.90 
1.23 
Recovery (%)
89.0 
88.3 
91.1 
88.6 
90.7 
Cu Production (tonnes)
8,351 
8,826 
9,162 
17,177 
16,519 
Cu Production (lbs)
18,410,934 
19,458,721 
20,198,967 
37,869,655 
36,418,092 
Concentrate grade (% Cu)
33.1 
32.3 
32.1 
32.7 
32.2 
Concentrate sales (tonnes)
23,993 
28,662 
29,365 
52,655 
50,987 
Cu Sold in Concentrate (tonnes)
7,926 
9,205 
9,387 
17,131 
16,336 
Cu Sold in Concentrate (lbs)
17,473,566 
20,293,558 
20,696,749 
37,767,124 
36,014,860 
Copper C1 cash cost(1)
$
2.76 
$
2.79 
$
2.07 
$
2.77 
$
2.13 
(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

The Caraíba Operations produced 8,351 tonnes of copper in concentrate during the period. Quarterly production was driven by slightly higher plant throughput and recovery rates, offset by lower planned copper grades. Caraíba's C1 cash cost(1) improved to $2.76 per pound of copper produced for the quarter, as inflationary impacts to input costs and the strengthening of the BRL were offset by a favorable decrease in smelting and refining charge terms at the Caraíba Operations. Importantly, the cash impact of the stronger BRL was offset by realized gains on the Company's foreign exchange hedge program, which totaled $12.7 million during the quarter.

Copper production from the Caraíba Operations is expected to total between 35,000 to 40,000 tonnes in 2026, supported by higher anticipated plant throughput and higher planned mined and processed grades in H2 2026. Full-year 2026 copper C1 cash cost(1) guidance of $2.30 to $2.50 per pound produced is maintained, with unit costs expected to decline sequentially through the third and fourth quarters.
Ero Copper Corp. June 30, 2026 MD&A | Page 7

The Tucumã Operation
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Ore mined (tonnes)
590,600 
456,684 
798,811 
1,047,284 
1,127,102 
Ore processed (tonnes)
715,415 
563,717 
418,699 
1,279,132 
713,013 
Grade (% Cu)
1.44 
1.66 
1.74 
1.53 
1.92 
Recovery (%)
88.2 
88.3 
85.4 
88.2 
87.2 
Cu Production (tonnes)
8,964 
8,461 
6,351 
17,425 
11,418 
Cu Production (lbs)
19,762,521 
18,652,405 
14,002,338 
38,414,926 
25,173,161 
Concentrate grade (% Cu)
28.4 
28.5 
30.1 
28.7 
30.2 
Concentrate sales (tonnes)
30,861 
30,518 
19,468 
61,379 
35,747 
Cu Sold in Concentrate (tonnes)
8,581 
8,751 
5,968 
17,332 
11,136 
Cu Sold in Concentrate (lbs)
18,918,156 
19,292,160 
13,157,666 
38,210,316 
24,551,156 
Copper C1 cash cost(1)(2)
$
2.10 
$
1.97 
$
— 
$
2.04 
$
— 
(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
(2)    The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, 2025 copper C1 cash cost for the Tucumã Operation and consolidated copper operations reflect only Tucumã Operation's costs from Q3 2025 onward.

The Tucumã Operation produced 8,964 tonnes of copper in concentrate during Q2 2026 at a C1 cash cost(1) of $2.10 per pound of copper produced. Copper production increased by approximately 6.0% from the prior quarter, as plant throughput continued to improve sequentially as expected during the quarter, partially offset by lower planned processed grades. C1 cash costs(1) increased modestly from the prior period, reflecting lower planned grades, inflationary pressure on input costs and a stronger BRL. Importantly, the cash impact of the stronger BRL was offset by realized gains on the Company's foreign exchange hedge program, which totaled $12.7 million during the quarter.

Copper production from Tucumã is expected to total between 32,500 to 37,500 tonnes in 2026, slightly weighted to the second half of the year. Production in H2 2026 is expected to benefit from higher plant throughput, partially offset by lower planned copper grades. Full-year C1 cash cost(1) guidance for Tucumã is maintained at $1.95 to $2.15 per pound produced.

At the end of Q2 2026, the Company successfully completed a planned expansion of its existing tailings filtration system, which is expected to increase filtration capacity by approximately 8%. In H2 2026, the Company plans to install and commission modular tailings filters, which are expected to further augment Tucumã's tailings filtration circuit. The incremental filtration capacity from the new modular tailings filters and associated plant throughput benefits are expected to support future production plans and have not been incorporated into full-year 2026 operational guidance.
Ero Copper Corp. June 30, 2026 MD&A | Page 8

The Xavantina Operations

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Ore mined (tonnes)
49,484 
32,820 
37,829 
82,304 
71,057 
Ore processed (tonnes)
48,564 
37,128 
37,829 
85,692 
71,057 
Head grade (grams per tonne Au)
6.20 
5.66 
7.11 
5.97 
6.99 
Recovery (%)
89.8 
81.3 
88.7 
86.3 
89.6 
Gold production (oz)
8,693 
5,495 
7,743 
14,188 
14,381 
  - Doré produced
6,592 
4,317 
7,743 
10,909 
14,381 
  - Flotation concentrate produced
2,101 
1,178 
— 
3,279 
— 
Historic gold concentrate recovered (oz)
11,860 
2,112 
— 
13,972 
— 
Total gold (oz)
20,553 
7,607 
7,743 
28,160 
14,381 
Silver ounces produced (oz)
3,953 
2,562 
4,412 
6,515 
8,408 
Gold sold in doré (oz)
6,663 
6,019 
8,276 
12,682 
14,110 
Gold sold in concentrate (oz)(2)
10,353 
4,311 
— 
14,664 
— 
Gold sold (oz)
17,016 
10,330 
8,276 
27,346 
14,110 
Silver sold (oz)
4,123 
3,208 
5,089 
7,331 
8,850 
Realized gold price(1)
$
3,903 
$
4,195 
$
3,114 
$
4,013 
$
2,945 
Gold Production C1 cash cost(1)
$
1,586 
$
2,120 
$
1,115 
$
1,793 
$
1,108 
Gold Production AISC(1)
$
2,881 
$
4,441 
$
2,234 
$
3,485 
$
2,231 
Historic gold concentrate C1 cash cost(1)
$
633 
$
915 
$
— 
$
676 
$
— 
Historic gold concentrate AISC(1)
$
715 
$
1,032 
$
— 
$
763 
$
— 
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
(2) Gold sold in concentrate includes gold ounces produced in flotation and the historic gold concentrate stockpile.

The Xavantina Operations produced 8,693 ounces of gold during the quarter at C1 cash costs(1) and AISC(1) of $1,586 and $2,881 per ounce, respectively. Gold production increased nearly 60% from the prior quarter, supported by higher mining rates and improved access to higher-grade stopes following the installation and tie-in of ventilation and cooling infrastructure during the quarter. Consequently, gold production C1 cash costs(1) and AISC(1) improved by 25% and 35%, respectively, compared to Q1 2026. Gold recovered from the historic concentrate stockpiles increased significantly to 11,860 ounces at C1 cash costs(1) and AISC(1) of $633 and $715 per ounce, respectively, in Q2 following the end of the rainy season bringing total gold produced and recovered in the quarter to 20,553 ounces, representing an approximate 170% increase over the previous quarter.

Quarterly gold sales increased by approximately 65% from the prior quarter to 17,016 ounces, comprised of 6,663 ounces in doré and 10,353 ounces in concentrate, including contributions from Xavantina's gold concentrate sales program. Gold concentrate sales volumes, which increased in Q2 as expected with the end of the rainy season, are expected to continue to benefit from drier seasonal
Ero Copper Corp. June 30, 2026 MD&A | Page 9

conditions throughout the remainder of the year and the commissioning of a mobile filter press and industrial dryer at the end of Q2 2026.

During the second quarter, the Company advanced optimization work at the Xavantina processing plant, which was initiated in late Q1, to support production of both gold doré and a high-grade gold flotation concentrate. Under the optimized flowsheet, gold doré will continue to be produced through gravity and intensive leach unit operations, while a high-grade flotation concentrate will also be produced and sold directly to customers under existing concentrate arrangements. Expected benefits from the ongoing flowsheet optimization work include reduced gold losses to CIL tailings and lower operating and maintenance costs over the life of the operation.

Gold production at Xavantina 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. Full-year gold C1 cash cost(1) and AISC(1) guidance 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.

Ero Copper Corp. June 30, 2026 MD&A | Page 10

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 mined and processed copper grades.

At Xavantina, gold production from the 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 time. Gold recovered from historic stockpiles is not included in Xavantina's guidance ranges, which capture only production and costs from mining and processing operations.

Full-year consolidated copper C1 cash costs(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 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.

Full-year gold C1 cash cost(1) and AISC(1) guidance for the Xavantina Operations 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. However, unit costs are expected to decline in H2 2026 as production increases. 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 increased slightly 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.

Ero Copper Corp. June 30, 2026 MD&A | Page 11

2026 Production and Cost Guidance
Previous Guidance
Current Guidance
Consolidated Copper Production (tonnes)
Caraíba Operations
35,000 - 40,000
35,000 - 40,000
Tucumã Operation
32,500 - 37,500
32,500 - 37,500
Total Copper
67,500 - 77,500
67,500 - 77,500
Consolidated Copper C1 Cash Cost ($/lb)(1)
Caraíba Operations
$2.30 - $2.50
$2.30 - $2.50
Tucumã Operation
$1.95 - $2.15
$1.95 - $2.15
Consolidated Copper Operations
$2.15 - $2.35
$2.15 - $2.35
The Xavantina Operations
Au Production (ounces)
40,000 - 50,000
40,000 - 50,000
Gold Production C1 Cash Cost(1) ($/oz)
$1,000 - $1,250
$1,100 - $1,350
Gold Production AISC(1) ($/oz)
$2,000 - $2,500
$2,200 - $2,700
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 risk factors.
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.


2026 Capital Expenditure Guidance
Figures presented in the table below are in USD millions.
Previous Guidance
Current Guidance
Caraíba Operations
$170 - $185
$170 - $185
Tucumã Operation
$35 - $45
$35 - $45
Xavantina Operations
$40 - $50
$50 - $60
Furnas Copper-Gold Project, Other Exploration & Corporate
$30 - $40
$30 - $40
Total
$275 - $320
$285 - $330
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 AIF, for a detailed summary of risk factors.
Ero Copper Corp. June 30, 2026 MD&A | Page 12

REVIEW OF FINANCIAL RESULTS

The following table provides a summary of the financial results of the Company for Q2 2026 and Q2 2025. Tabular amounts are in thousands of US dollars, except share and per share amounts.

Three months ended June 30,
Notes
2026
2025
Revenue
1
$
284,313 
$
163,510 
Cost of sales
2
(162,894)
(96,224)
Gross profit
121,419 
67,286 
Expenses
General and administrative
(12,535)
(11,564)
Share-based compensation
(1,063)
(7,756)
Operating Income
107,821 
47,966 
Finance income
1,443 
1,130 
Finance expense
3
(12,678)
(5,976)
Foreign exchange gain
4
10,845 
38,640 
Other income
2,639 
2,350 
Income before income taxes
110,070 
84,110 
Income tax expense
Current
(17,775)
(9,305)
Deferred
(1,546)
(3,777)
5
(19,321)
(13,082)
Net income for the period
$
90,749 
$
71,028 
Other comprehensive gain
Foreign currency translation gain
6
7,716 
37,847 
Comprehensive income
$
98,465 
$
108,875 
Net income per share attributable to owners of the Company
Basic
$
0.86 
$
0.68 
Diluted
$
0.85 
$
0.68 
Weighted average number of common shares outstanding
Basic
104,282,548 
103,582,082 
Diluted
105,876,946 
103,905,561 



Ero Copper Corp. June 30, 2026 MD&A | Page 13

Notes:

1.    Revenues from copper sales in Q2 2026 was $219.4 million (Q2 2025 - $138.1 million) on sale of 36.4 million lbs of copper (Q2 2025 - 33.9 million lbs). The increase in copper revenues was primarily attributed to an 8% increase in copper sold and a 40% higher average realized price against the comparative period.

Revenues from gold sales in Q2 2026 was $64.9 million (Q2 2025 - $25.5 million) on sale of 6,663 ounces of gold in doré (Q2 2025 - 8,276 ounces) and 10,353 ounces of gold in concentrate (Q2 2025 - nil ounces) at an average realized price of $3,903 per ounce (Q2 2025 - $3,114 per ounce). The increase in gold revenues was primarily driven by 106% higher sales volumes and 25% higher realized gold prices.

2.    Cost of sales for Q2 2026 from copper sales was $135.3 million (Q2 2025 - $81.7 million). Cost of sales includes production costs primarily consisting of $32.0 million (Q2 2025 - $19.4 million) in depreciation and depletion, $30.7 million (Q2 2025 - $13.1 million) in contracted services, $22.9 million (Q2 2025 - $17.0 million) in salaries and benefits, $20.8 million (Q2 2025 - $11.2 million) in materials and consumables, $16.1 million (Q2 2025 - $12.4 million) in maintenance costs, $12.6 million (Q2 2025 - $3.8 million) in sales expenses, $6.2 million (Q2 2025 - $3.5 million) in utilities, $6.7 million increase (Q2 2025 - $1.1 million decrease) in inventories, and $0.9 million (Q2 2025 - $0.4 million) in other costs. The increase in cost of sales in Q2 2026 compared to Q2 2025 was primarily attributed to a $40.8 million increase in cost of sales at the Tucumã Operation upon achieving commercial production in Q3 2025, as well as a $12.7 million increase at the Caraíba Operations reflecting higher mining and processing costs due to increased ore processed to offset lower head grades.

Cost of sales for Q2 2026 from gold sales was $27.6 million (Q2 2025 - $14.5 million). Cost of sales includes production costs primarily consisting of $6.2 million (Q2 2025 - $5.5 million) in depreciation and depletion, $5.2 million (Q2 2025 - $3.1 million) in salaries and benefits, $4.8 million (Q2 2025 - $0.2 million) in sales expenses, $4.7 million (Q2 2025 - $2.2 million) in contracted services, $3.7 million (Q2 2025 - $1.9 million) in materials and consumables, $1.8 million (Q2 2025 - $0.9 million) in maintenance costs, $1.4 million (Q2 2025 - $0.6 million) in utilities, $0.4 million increase (Q2 2025 - $0.1 million increase) in inventories, and $0.4 million (Q2 2025 - $0.1 million) in other costs. The increase in cost of sales as compared to Q2 2025 reflects higher mining costs as the operation transitioned to mechanized mining, as well as increased sales volume relating to gold concentrates.

3.    Finance expense for Q2 2026 was $12.7 million (Q2 2025 - $6.0 million) and was primarily comprised of interest on loans and borrowings of $4.7 million (Q2 2025 - nil), other finance expense of $4.6 million (Q2 2025 - $2.3 million), accretion of deferred revenue of $1.9 million (Q2 2025 - $2.1 million), accretion of provision for rehabilitation and closure costs of $0.8 million (Q2 2025 - $0.9 million), and lease interest of $0.6 million (Q2 2025 - $0.6 million). The increase in finance expense from Q2 2025 was primarily due to a decrease in capitalization of borrowing costs after commercial production was achieved at the Tucumã Operation effective July 1, 2025. During the quarter, $5.1 million (Q2 2025 - $11.4 million) in borrowing costs were capitalized to projects in progress primarily related to the Deepening Project.

4.    Foreign exchange gain for Q2 2026 was $10.8 million (Q2 2025 - $38.6 million gain). This amount is primarily comprised of $12.7 million (Q2 2025 - $0.2 million gain) of realized foreign exchange gain on derivative contracts and $5.7 million (Q2 2025 - $33.0 million gain) in foreign exchange gain on USD denominated debt at MCSA for which the functional currency is the BRL, partially offset by $5.4 million (Q2 2025 - $6.6 million gain) of unrealized foreign exchange loss on derivative contracts and other foreign exchange losses of $2.2 million (Q2 2025 - $1.2 million losses). The unrealized foreign exchange loss on derivative contracts was a result of a 1% strengthening of the BRL against the USD during the period.

5.    In Q2 2026, the Company recognized $19.3 million in income tax expense (Q2 2025 $13.1 million expense). The increase in income tax expense was primarily a result of an increase in income before taxes as compared to the same quarter of the prior year.

6.    The foreign currency translation gain is a result of a fluctuation of the BRL against the USD during Q2 2026, which strengthened from approximately 5.22 BRL per US dollar at the beginning of Q2 2026 to approximately 5.18 BRL per US dollar by the end of the quarter, when translating the net assets of the Company’s Brazilian subsidiaries to USD for presentation in the Company’s condensed consolidated interim financial statements.



Ero Copper Corp. June 30, 2026 MD&A | Page 14


The following table provides a summary of the financial results of the Company for YTD 2026 and 2025. Tabular amounts are in thousands of US dollars, except share and per share amounts.

Six months ended June 30,
Notes
2026
2025
Revenue
1
$
547,483 
$
288,598 
Cost of sales
2
(320,150)
(165,790)
Gross profit
227,333 
122,808 
Expenses
General and administrative
(23,593)
(22,935)
Share-based compensation
(3,703)
(8,929)
Operating Income
200,037 
90,944 
Finance income
2,564 
1,968 
Finance expense
3
(23,742)
(10,699)
Foreign exchange gain
4
64,500 
97,040 
Other (expenses) income
5
(6,093)
225 
Income before income taxes
237,266 
179,478 
Income tax expense
Current
(24,972)
(13,023)
Deferred
(12,234)
(14,800)
6
(37,206)
(27,823)
Net income for the period
$
200,060 
$
151,655 
Other comprehensive gain
Foreign currency translation gain
7
59,597 
83,622 
Comprehensive income
$
259,657 
$
235,277 
Net income per share attributable to owners of the Company
Basic
$
1.90 
$
1.46 
Diluted
$
1.87 
$
1.45 
Weighted average number of common shares outstanding
Basic
104,272,398 
103,573,416 
Diluted
105,880,086 
103,902,012 
Ero Copper Corp. June 30, 2026 MD&A | Page 15

Notes:

1.    Revenues from copper sales in YTD 2026 amounted to $440.1 million (YTD 2025 - $247.6 million), reflecting the sale of 76.0 million lbs of copper compared to 60.6 million lbs in YTD 2025. The increase in revenues was primarily attributable to ramp-up of production from the Tucumã Operations, which had $209.6 million in revenue compared to $95.9 million in the prior year, as well as realizing 38% higher copper prices at both operations compared to the prior year.

Revenues from gold sales in YTD 2026 was $107.4 million (YTD 2025 - $41.0 million), reflecting the sale of 12,682 ounces of gold in doré (YTD 2025 - 14,110 ounces) and 14,664 ounces of gold in concentrate (YTD 2025 - nil ounces) at an average realized price of $4,013 per ounce (YTD 2025 - $2,945 per ounce). The increase in gold revenues was primarily driven by 94% higher sales volumes and 36% higher realized gold prices.

2.    Cost of sales for YTD 2026 from copper sales was $271.5 million (YTD 2025 - $141.2 million). Cost of sales includes production costs which primarily consist of $64.9 million (YTD 2025 - $34.1 million) in depreciation and depletion, $56.5 million (YTD 2025 - $19.4 million) in contracted services, $45.9 million (YTD 2025 - $33.0 million) in salaries and benefits, $38.3 million (YTD 2025 - $21.4 million) in materials and consumables, $31.8 million (YTD 2025 - $21.2 million) in maintenance costs, $23.7 million (YTD 2025 - $7.4 million) in sales expenses, and $11.5 million (YTD 2025 - $7.2 million) in utilities. Production costs were partially offset by $2.9 million increase (YTD 2025 - $3.0 million increase) in inventories. The increase in cost of sales was primarily attributable to a $82.6 million increase in cost of sales at the Tucumã Operation upon achieving commercial production on July 1, 2025, as well as a $47.7 million increase at the Caraíba Operations reflecting higher mining and processing cost due to increase in ore mined and processed to offset lower head grade.

Cost of sales for YTD 2026 from gold sales was $48.7 million (YTD 2025- $24.6 million). Cost of sales includes production costs which primarily consist of $11.2 million (YTD 2025 - $9.1 million) in depreciation and depletion, $9.7 million (YTD 2025 - $5.9 million) in salaries and benefits, $7.6 million (YTD 2025 - $4.1 million) in contracted services, $7.0 million (YTD 2025 - $0.5 million) in sales expenses, $6.1 million (YTD 2025 - $3.4 million) in materials and consumables, $3.1 million (YTD 2025 - $1.6 million) in maintenance costs, $2.2 million (YTD 2025 - $1.1 million) in utilities, and $1.2 million decrease (YTD 2025 - $1.4 million increase) in inventories. The increase in cost of sales reflects higher mining costs as the operation transitioned to mechanized mining, as well as costs related to gold concentrate sales.

3.    Finance expense for YTD 2026 was $23.7 million (YTD 2025 - $10.7 million) and was primarily comprised of interest on loans and borrowings of $10.1 million (YTD 2025 - nil), other finance expense of $6.9 million (YTD 2025 - $5.1 million) mainly related to expected credit loss provision on a note receivable, accretion of deferred revenue of $3.9 million (YTD 2025 - $2.7 million), accretion of provision for rehabilitation and closure costs of $1.6 million (YTD 2025 - $1.7 million), and lease interest of $1.3 million (YTD 2025 - $1.2 million). During YTD 2026, $10.0 million (YTD 2025 - $22.4 million) in interest was capitalized to projects in progress. The increase in finance expense was primarily attributable to a decrease in capitalized borrowing costs upon the Tucumã Operation achieving commercial production effective July 1, 2025.

4.    Foreign exchange gain for YTD 2026 was $64.5 million (YTD 2025 - $97.0 million gain). This amount was primarily comprised of a foreign exchange gain of $40.4 million (YTD 2025 - $78.1 million gain) on USD denominated debt in MCSA, for which the functional currency is the BRL, a realized foreign exchange gain on derivative contracts of $19.9 million amount (YTD 2025 - $2.0 million loss) and a foreign exchange gain on unrealized derivative contracts of $11.1 million (YTD 2025 - $23.4 million gain), partially offset by other foreign exchange losses of $6.9 million (YTD 2025 - $2.5 million losses). The fluctuation in foreign exchange gains/losses were primarily a result of increased volatility of the USD/BRL foreign exchange rates, where the BRL strengthened 6.3% against the USD during YTD 2026.

5.    In YTD 2026, the Company recognized $6.1 million in other expense (YTD 2025 - $0.2 million income), comprised primarily of $10.9 million in realized losses on gold derivatives, partially offset by $5.3 million in unrealized gains on gold derivatives. Other expense was not significant in the comparative period.

6.    In YTD 2026, the Company recognized an $37.2 million income tax expense (YTD 2025 - $27.8 million expense). The increase over the comparative period was primarily a result of an increase in net income before income taxes in the current period.

7.    The foreign currency translation gain is a result of fluctuations of the BRL against the USD during YTD 2026, which strengthened from approximately 5.50 BRL per US dollar at the beginning of 2026 to approximately 5.18 BRL per US
Ero Copper Corp. June 30, 2026 MD&A | Page 16

dollar by the end of the period, when translating the net assets of the Company’s Brazilian subsidiaries to USD for presentation in the Company’s condensed consolidated interim financial statements.



SUMMARY OF QUARTERLY RESULTS

The following table presents selected financial information for each of the most recent eight quarters. Tabular amounts are in millions of US Dollars, except share and per share amounts.

Selected Financial Information
Jun. 30,(1)
Mar. 31,(2)
Dec. 31,(3)
Sep. 30,(4)
Jun. 30,(5)
Mar. 31,(6)
Dec. 31,(7)
Sep. 30,(8)
2026
2026
2025
2025
2025
2025
2024
2024
Revenue
$
284.3 
$
263.2 
$
320.2 
$
177.1 
$
163.5 
$
125.1 
$
122.5 
$
124.8 
Cost of sales
$
(162.9)
$
(157.3)
$
(155.7)
$
(119.7)
$
(96.2)
$
(69.6)
$
(70.2)
$
(71.1)
Gross profit
$
121.4 
$
105.9 
$
164.4 
$
57.4 
$
67.3 
$
55.5 
$
52.4 
$
53.7 
Net income (loss) for period
$
90.7 
$
109.3 
$
78.7 
$
36.5 
$
71.0 
$
80.6 
$
(48.9)
$
41.4 
Income (loss) per share attributable to owners of the Company
- Basic
$
0.86 
$
1.04 
$
0.74 
$
0.35 
$
0.68 
$
0.77 
$
(0.47)
$
0.40 
- Diluted
$
0.85 
$
1.04 
$
0.74 
$
0.35 
$
0.68 
$
0.77 
$
(0.47)
$
0.39 
Weighted average number of common shares outstanding
- Basic
104,282,548 
104,262,136 
103,961,272 
103,621,631 
103,582,082 
103,564,654 
103,345,064 
103,239,881 
- Diluted
105,876,946 
105,023,869 
104,693,751 
104,044,755 
103,905,561 
103,904,737 
103,345,064 
103,973,827 

Notes:

1.During Q2 2026, the Company recognized net income of $90.7 million compared to net income of $109.3 million in the preceding quarter. The decrease in net income compared to the prior quarter was primarily attributable to a $42.8 million decrease in foreign exchange gains ($10.8 million gain compared to $53.7 million gain in the prior quarter), a $1.4 million increase in income tax expense, a $1.6 million increase in finance expense, partially offset by a $15.5 million increase in gross profit and a $11.4 million increase in other income.

2.During Q1 2026, the Company recognized net income of $109.3 million compared to net income of $78.7 million in the preceding quarter. The increase in net income compared to the prior quarter was primarily attributable to a $77.0 million increase in foreign exchange gains ($53.7 million gain compared to $23.3 million loss in the prior quarter), a $6.3 million decrease in share-based compensation, a $5.6 million decrease in income tax expense, partially offset by a $58.5 million decrease in gross profit and a $1.8 million increase in other expenses.

3.During Q4 2025, the Company recognized net income of $78.7 million compared to net income of $36.5 million in the preceding quarter. The increase in net income compared to the prior quarter was primarily attributable to a $107.0 million higher gross profit, partially offset by $45.4 million lower foreign exchange gain ($23.3 million loss compared to $22.1 million gain in the prior quarter), $10.7 million increase in income tax expense, $6.2 million increase in other expenses, and $2.2 million increase in share-based compensation from mark-to-market revaluation of share-based compensation liability.

Ero Copper Corp. June 30, 2026 MD&A | Page 17

4.During Q3 2025, the Company recognized net income of $36.5 million compared to net income of $71.0 million in the preceding quarter. The decrease in net income compared to the prior quarter was primarily attributable to a $16.5 million lower foreign exchange gain, $9.9 million lower gross profit and $5.4 million higher finance expense from the cessation of capitalization of borrowing costs at the Tucumã Operation following the declaration of commercial production on July 1, 2025.

5.During Q2 2025, the Company recognized net income of $71.0 million compared to net income of $80.6 million in the preceding quarter. The decrease in net income was primarily attributable to a lower foreign exchange gain of $38.6 million in the current quarter compared to $58.4 million in the preceding quarter, partially offset by a higher gross profit of $67.3 million in the current quarter compared to $55.5 million in the preceding quarter.

6.During Q1 2025, the Company recognized net income of $80.6 million compared to net loss of $48.9 million in the preceding quarter. The increase in net income was primarily attributable to foreign exchange gains of $58.4 million compared to foreign exchange losses of $92.8 million in the preceding quarter, partially offset by an income tax expense of $14.7 million compared to an income tax recovery of $5.9 million in the preceding quarter.

7.During Q4 2024, the Company recognized net loss of $48.9 million compared to net income of $41.4 million in the preceding quarter. The decrease in net income was primarily attributable to foreign exchange losses of $92.8 million compared to foreign exchange gains of $17.2 million in the preceding quarter, partially offset by income tax recovery of $5.9 million compared to income tax expense of $8.3 million in the preceding quarter.

8.During Q3 2024, the Company recognized net income of $41.4 million compared to net loss of $53.4 million in the preceding quarter. The increase in net income was primarily attributable to higher revenues, as well as foreign exchange gains of $17.2 million compared to foreign exchange losses of $70.5 million in the preceding quarter, as well as a $10.7 million write-down in exploration and evaluation assets recognized in the preceding quarter.


LIQUIDITY, CAPITAL RESOURCES, AND CONTRACTUAL OBLIGATIONS

Liquidity

As at June 30, 2026, the Company had cash and cash equivalents of $101.7 million and available liquidity of $181.7 million. Cash and cash equivalents were primarily comprised of cash held with reputable financial institutions and are invested in highly liquid short-term investments with maturities of three months or less. The funds are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet its obligations.

Cash and cash equivalents decreased by $3.7 million from December 31, 2025. The Company’s cash flows from operating, investing, and financing activities for the six months ended June 30, 2026, are summarized as follows:

•Cash from operating activities of $230.6 million, primarily consists of:
◦$269.2 million of adjusted EBITDA (see Non-IFRS Measures); and
◦$3.7 million of derivative contract settlements
net of:
◦$30.8 million of net change in non-cash working capital items;
◦$14.1 million in income tax payments; and
◦$8.9 million of amortization of non-cash deferred revenues.

Ero Copper Corp. June 30, 2026 MD&A | Page 18

Offset by:

•Cash used in investing activities of $145.2 million, including:
◦$136.3 million of additions to mineral property, plant and equipment; and
◦$10.5 million of additions to exploration and evaluation assets;
net of:
◦$1.7 million in interest received.
•Cash used in financing activities of $88.2 million, primarily consists of:
◦$57.7 million of principal repayments on loans and borrowings;
◦$21.2 million of interest paid on loans and borrowings; and
◦$10.5 million of lease payments;

net of:
◦$6.1 million of new loans and borrowings; and
◦$1.5 million of proceeds from exercise of stock options.

As at June 30, 2026, the Company had working capital of $87.7 million.


Capital Resources

The Company’s primary sources of capital are comprised of cash from operations, and cash and cash equivalents on hand. The Company continuously monitors its liquidity position and capital structure and, based on changes in operations and economic conditions, may adjust such structure by issuing new common shares or new debt as necessary. Taking into consideration expected cash flow from existing operations and available liquidity, management believes that the Company has sufficient capital to fund its planned operations and activities, and other initiatives, for the foreseeable future.

At June 30, 2026, the Company had available liquidity of $181.7 million, including $101.7 million in cash and cash equivalents and $80.0 million of undrawn availability under its Senior Revolving Credit Facility.

The Company has a Senior Revolving Credit Facility which has a borrowing limit of $200 million and matures in December 2028. The applicable interest margin is based on sliding scales of SOFR plus 2.00% to 4.25%, or lender's Base Rate plus 1.00% to 3.25%, and commitment fee ranges from 0.45% to 0.96%, based on the Company's net leverage ratio, with lower leverage ratios resulting in lower pricing.

Ero Copper Corp. June 30, 2026 MD&A | Page 19

In relation to its loans and borrowings, the Company is required to comply with certain financial covenants. As of the date of the condensed consolidated interim financial statements, the Company is in compliance with these covenants. The loan agreements also contain covenants that could restrict the ability of the Company and its subsidiaries, including MCSA, Ero Gold, NX Gold, and Ero Brasil Participacoes Ltda. to, among other things, incur additional indebtedness needed to fund its respective operations, pay dividends or make other distributions, make investments, create liens, sell or transfer assets or enter into transactions with affiliates. There are no other restrictions or externally imposed capital requirements of the Company.


Contractual Obligations and Commitments

The Company has a precious metals purchase agreement (the "Xavantina Gold Stream") with RGLD Gold AG ("Royal Gold"), a wholly-owned subsidiary of Royal Gold, Inc., whereby the Company is obligated to sell a portion of its gold production from the Xavantina Operations at contract prices.

Refer to the "Liquidity Risk" section for further information on the Company's contractual obligations and commitments.

MANAGEMENT OF RISKS AND UNCERTAINTIES

The Company examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, currency risk, commodity price risk and interest rate risk. Where material, these risks are reviewed and monitored by the Board.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The carrying amount of the financial assets below represents the maximum credit risk exposure as at June 30, 2026 and December 31, 2025:

June 30, 2026
December 31, 2025
Cash and cash equivalents
101,742 
$
105,442 
Trade receivables
54,393 
41,061 
Derivatives
20,267 
4,701 
Note receivable
13,236 
13,403 
Deposits and other assets
2,218 
3,577 
$
191,856 
$
168,184 

The Company invests cash and cash equivalents with financial institutions that are financially sound based on their credit rating.

Ero Copper Corp. June 30, 2026 MD&A | Page 20

The Company’s exposure to credit risk associated with accounts receivable is influenced mainly by the individual characteristics of each customer.

In 2022, one of the Company's customers in Brazil, Paranapanema S/A ("PMA"), filed for bankruptcy protection. As a preferred supplier to PMA, the Company had a note receivable arrangement with PMA, which was excluded from the judicial recovery process and provides the Company with certain judicial guarantees. According to the note receivable arrangement, repayment was structured over 24 monthly installments beginning in March 2024, with an annual interest rate equivalent to Brazil's CDI rate of approximately 11.65%.

At June 30, 2026, PMA continued to be in default of the agreement and the gross amount of accounts and note receivable from PMA was $26.7 million (December 31, 2025 - $24.4 million). Accordingly, the note receivable is considered credit impaired, and the Company recorded a credit loss provision and present value discount of $17.3 million (December 31, 2025 - $14.9 million). The carrying value of the PMA note receivable at June 30, 2026 was $9.4 million (December 31, 2025 - $9.5 million), entirely included in deposits and other non-current assets. $1.5 million provision was recorded on the credit loss provision in the three and six months ended June 30, 2026 ($0.2 million for the three and six months ended June 30, 2025).


Liquidity risk

Liquidity risk is the risk associated with the difficulties that the Company may have meeting the obligations associated with financial liabilities that are settled with cash payments or with another financial asset. The Company's approach to liquidity management is to ensure as much as possible that sufficient liquidity exists to meet its maturity obligations on the expiration dates, under normal and stressful conditions, without causing unacceptable losses or with risk of undermining the normal operation of the Company.

The table below shows the Company's maturity of non-derivative financial liabilities on June 30, 2026:

Non-derivative financial liabilities
Carrying
value
Contractual cash flows
Up to
12 months
1 - 2
years
3 - 5
years
More than
5 years
Loans and borrowings (including interest)
$
554,434 
$
674,839 
$
58,030 
$
190,809 
$
426,000 
$
— 
Accounts payable and accrued liabilities
162,687 
162,687 
162,687 
— 
— 
— 
Other non-current liabilities
10,057 
10,056 
— 
8,887 
783 
386 
Leases
18,921 
20,565 
15,122 
5,342 
101 
— 
Total
$
746,099 
$
868,147 
$
235,839 
$
205,038 
$
426,884 
$
386 

As at June 30, 2026, the Company has capital commitments, which are net of advances to suppliers, of $84.8 million through contracts and purchase orders which are expected to be incurred over a six-year period. In the normal course of operations, the Company may also enter into long-term contracts which can be cancelled with certain agreed customary notice periods without material penalties.


Ero Copper Corp. June 30, 2026 MD&A | Page 21

The Company also has a derivative financial asset for foreign exchange collar contracts whose notional amounts and maturity information are disclosed below under foreign exchange currency risk.

Foreign exchange currency risk

The Company’s subsidiaries in Brazil are exposed to exchange risks primarily related to the US dollar. In order to minimize currency mismatches, the Company monitors its cash flow projections considering future sales expectations indexed to US dollar variation in relation to the cash requirement to settle the existing financings.

The Company's exposure to foreign exchange currency risk at June 30, 2026 relates to $29.4 million (December 31, 2025 – $46.6 million) in loans and borrowings of MCSA denominated in US dollars and Euros. In addition, the Company is also exposed to foreign exchange currency risk at June 30, 2026 on $597.1 million of intercompany loan balances (December 31, 2025 - $604.6 million) which have contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at June 30, 2026 by 10% and 20%, would have decreased (increased) pre-tax net income by $62.4 million and $124.8 million, respectively. This analysis is based on the foreign currency exchange variation rate that the Company considered to be reasonably possible at the end of the period and excluding the impact of the derivatives below. The analysis assumes that all other variables, especially interest rates, are held constant.

The Company may use certain foreign exchange derivatives, including collars and forward contracts, to manage its foreign exchange risks. A summary of the Company's foreign exchange derivatives at June 30, 2026 is summarized as follows:

Notional Amount
Denomination
Weighted average floor
Weighted average cap / forward price
Maturities
$450.0 million
USD/BRL
5.40
6.34
July 2026 - December 2027

The aggregate fair value of the Company's foreign exchange derivatives was a net asset of $19.3 million (December 31, 2025 - net asset of $4.4 million). The fair values of foreign exchange contracts were determined based on option pricing models, forward foreign exchange rates, and information provided by the counter party.

The change in fair value of foreign exchange derivatives was a loss of $5.4 million and gain of $11.1 million for the three and six months ended June 30, 2026, respectively (a gain of $6.6 million and of $23.4 million for the three and six months ended June 30, 2025, respectively), and have been recognized in foreign exchange gain.

In addition, during the three and six months ended June 30, 2026, the Company recognized a realized gain of $12.7 million and $19.9 million, respectively (realized gain of $0.2 million and loss of $2.0 million for the three and six months ended June 30, 2025 respectively), related to the settlement of foreign currency forward collar contracts.

Interest rate risk

The Company is principally exposed to the variation in interest rates on loans and borrowings with variable rates of interest. Management reduces interest rate risk exposure by entering into loans and
Ero Copper Corp. June 30, 2026 MD&A | Page 22

borrowings with fixed rates of interest or by entering into derivative instruments that fix the ultimate interest rate paid.

The Company is principally exposed to interest rate risk through its Senior Revolving Credit Facility and Brazilian Real denominated bank loans. Based on the Company’s net exposure at June 30, 2026, a 1% change in the variable rates would not materially impact its pre-tax annual net income.


Price risk

The Company may use derivatives, including forward contracts, collars and swap contracts, to manage commodity price risks.

As of June 30, 2026, the Company had no outstanding gold contracts (December 31, 2025 - liability of $6.8 million).

During the three and six months ended June 30, 2026, the Company recognized an unrealized gain of $6.0 million and $5.3 million (unrealized gain of $0.6 million and loss of $1.5 million for the three and six months ended June 30, 2025), respectively, in relation to its commodity derivatives in other income or loss.
During the three and six months ended June 30, 2026, the Company recognized a realized loss of $3.0 million and $10.9 million (nil for three and six months ended June 30, 2025), respectively, in relation to its commodity derivatives in other income or loss.

At June 30, 2026, the Company had provisionally priced sales that are exposed to commodity price changes. Based on the Company’s net exposure at June 30, 2026, a 10% change in the price of copper and gold would have changed pre-tax net income (loss) by $9.9 million.

For a discussion of additional risks applicable to the Company and its business and operations, including risks related to the Company’s foreign operations, the environment and legal proceedings, see “Risk Factors” in the Company’s AIF.



OTHER FINANCIAL INFORMATION

Off-Balance Sheet Arrangements

As at June 30, 2026, the Company had no material off-balance sheet arrangements.


Outstanding Share Data

As of August 5, 2026, the Company had 104,302,633 common shares issued and outstanding.




Ero Copper Corp. June 30, 2026 MD&A | Page 23

ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES

Critical Accounting Judgments and Estimates

The preparation of condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions about future events that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may differ from these estimates.

The Company’s material accounting policies and accounting estimates are contained in the Company’s consolidated financial statements for the year ended December 31, 2025. Judgements have been made in the determination of the functional currency of the Company and its subsidiaries, assessment of the probability of cash outflow related to legal claims and contingent liabilities and income taxes. Critical accounting estimates represent estimates that are uncertain and for which changes in those estimates could materially impact the consolidated financial statements. Key sources of estimation uncertainty, including those the Company believes to be critical accounting estimates, include derivative instruments, deferred revenue, carrying amounts of mineral properties, provision for mine closure and reclamation costs, expected credit losses and realization of value-added tax receivable. Certain of these estimates are dependent on mineral reserves and resource information. Changes in mineral reserves and resources could impact depreciation and depletion rates, asset carrying amounts and the timing of mine closure and reclamation costs. The Company determines its mineral reserves and resources based on information compiled by competent individuals. Information regarding mineral reserves and resources is used in the calculation of depreciation, depletion and determination, when applicable, of the recoverable amount of CGUs, and for forecasting the timing of reclamation and closure cost expenditures. There are numerous uncertainties inherent in the determination of mineral reserves, and assumptions that are valid at the time of determination may change significantly when new information becomes available. Changes in the methodology, forecasted prices of commodities, exchange rates, production costs or recovery rates may change the economic status of mineral reserves and may, ultimately, result in changes in the mineral reserves.

Management continuously reviews its estimates, judgments and assumptions on an ongoing basis using the most current information available. Revisions to estimates are recognized prospectively.

Ero Copper Corp. June 30, 2026 MD&A | Page 24

CAPITAL EXPENDITURES

The following table presents capital expenditures at the Company’s operations on an accrual basis.

2026 - Q2
2026 - Q1
2026 - YTD
Caraíba Operations
Growth
$
18,119 
$
11,142 
$
29,261 
Sustaining
28,109 
24,804 
52,913 
Exploration
2,921 
1,683 
4,604 
Deposit on Projects
13 
621 
634 
Total, Caraíba Operations
$
49,162 
$
38,250 
$
87,412 
Tucumã Operation
Sustaining
8,537 
5,180 
13,717 
Exploration
307 
155 
462 
Deposit on Projects
1,540 
485 
2,025 
Total, Tucumã Operation
$
10,384 
$
5,820 
$
16,204 
Xavantina Operations
Growth
2,267 
917 
3,184 
Sustaining
11,620 
8,123 
19,743 
Exploration
2,200 
1,405 
3,605 
Deposit on Projects
4,796 
3,392 
8,188 
Total, Xavantina Operations
$
20,883 
$
13,837 
$
34,720 
Corporate and Other
Growth
— 
29 
29 
Sustaining
3,213 
866 
4,079 
Exploration
6,358 
5,474 
11,832 
Deposit on Projects
76 
17 
93 
Total, Corporate and Other
$
9,647 
$
6,386 
$
16,033 
Consolidated
Growth
20,386 
12,088 
32,474 
Sustaining
51,479 
38,973 
90,452 
Exploration
11,786 
8,717 
20,503 
Deposit on Projects
6,425 
4,515 
10,940 
Total, Consolidated Capital Expenditures
$
90,076 
$
64,293 
$
154,369 


Ero Copper Corp. June 30, 2026 MD&A | Page 25


2026 - Q2
2026 - Q1
2026 - YTD
Total, Consolidated Capital Expenditures
$
90,076 
$
64,293 
$
154,369 
Add (less):
Additions to exploration and evaluation assets
(6,742)
(5,682)
(12,424)
Additions to right-of-use assets
1,764 
1,599 
3,363 
Capitalized depreciation
179 
224 
403 
Total, additions per Mineral Properties, Plant and Equipment note
$
85,277 
$
60,434 
$
145,711 


ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES

The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, realized copper price, gold C1 cash cost, gold AISC, realized gold price, 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. The tables below provide reconciliations of these non-IFRS measures to the most directly comparable IFRS measures as contained in the Company’s financial statements.

Unless otherwise noted, the non-IFRS measures presented below have been calculated on a consistent basis for the periods presented.

Copper C1 Cash Cost

Copper C1 cash cost is a non-IFRS performance measure used by the Company to manage and evaluate the performance of its copper mining operations.

Copper C1 cash cost is calculated as C1 cash costs divided by total pounds of copper produced during the period. C1 cash costs comprise the total cost of production, including expenses related to transportation, and treatment and refining charges. These costs are net of by-product credits and incentive payments.

While copper C1 cash cost is widely reported in the mining industry as a performance benchmark, it does not have a standardized meaning and is disclosed as a supplement to IFRS measures.

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




Ero Copper Corp. June 30, 2026 MD&A | Page 26


The Caraíba Operations

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Cost of production
$
59,098 
$
62,352 
$
46,890 
$
121,450 
$
82,609 
Add (less):
Transportation costs & other
2,895 
2,896 
1,792 
5,791 
3,114 
Treatment, refining, and other
(5,225)
2,164 
2,340 
(3,061)
4,750 
By-product credits
(8,045)
(10,077)
(6,205)
(18,122)
(10,904)
Incentive payments
(1,700)
(1,534)
(1,457)
(3,234)
(2,746)
Net change in inventory
3,647 
(1,483)
(1,611)
2,164 
1,048 
Foreign exchange and other
106 
(87)
16 
19 
(131)
C1 cash costs
$
50,776 
$
54,231 
$
41,765 
$
105,007 
$
77,740 

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs
Mining
$
42,510 
$
42,411 
$
31,442 
$
84,921 
$
57,238 
Processing
9,986 
9,102 
6,549 
19,088 
12,901 
Indirect
8,655 
7,735 
5,847 
16,390 
10,641 
Production costs
61,151 
59,248 
43,838 
120,399 
80,780 
By-product credits
(8,045)
(10,077)
(6,205)
(18,122)
(10,904)
Treatment, refining and other
(2,330)
5,060 
4,132 
2,730 
7,864 
C1 cash costs
$
50,776 
$
54,231 
$
41,765 
$
105,007 
$
77,740 

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs per pound
Total copper produced (lbs, 000)
18,411 
19,459 
20,199 
37,870 
36,418 
Mining
$
2.31 
$
2.18 
$
1.56 
$
2.24 
$
1.57 
Processing
$
0.54 
$
0.47 
$
0.32 
$
0.50 
$
0.35 
Indirect
$
0.47 
$
0.40 
$
0.29 
$
0.43 
$
0.29 
By-product credits
$
(0.44)
$
(0.52)
$
(0.31)
$
(0.48)
$
(0.30)
Treatment, refining and other
$
(0.12)
$
0.26 
$
0.21 
$
0.08 
$
0.22 
Copper C1 cash costs
$
2.76 
$
2.79 
$
2.07 
$
2.77 
$
2.13 



Ero Copper Corp. June 30, 2026 MD&A | Page 27


The Tucumã Operation(1)

Reconciliation:
2026 - Q2
2026 - Q1
2026 - YTD
Cost of production
$
31,632 
$
29,738 
$
61,370 
Add (less):
Transportation costs & other
9,393 
6,391 
15,784 
Treatment, refining, and other
378 
2,471 
2,849 
By-product credits
(425)
(701)
(1,126)
Incentive payments
(480)
(546)
(1,026)
Net change in inventory
1,021 
(556)
465 
Foreign exchange and other
4 
(4)
— 
C1 cash costs
$
41,523 
$
36,793 
$
78,316 

(1)    The Company declared commercial production at the Tucumã Operation effective July 1, 2025. Tucumã Operation reflects costs from Q3 2025 onward only.
2026 - Q2
2026 - Q1
2026 - YTD
Costs
Mining
$
8,963 
$
6,538 
$
15,501 
Processing
18,566 
17,976 
36,542 
Indirect
4,648 
4,118 
8,766 
Production costs
32,177 
28,632 
60,809 
By-product credits
(425)
(701)
(1,126)
Treatment, refining and other
9,771 
8,862 
18,633 
C1 cash costs
$
41,523 
$
36,793 
$
78,316 

2026 - Q2
2026 - Q1
2026 - YTD
Costs per pound
Total copper produced (lbs, 000)
19,763 
18,652 
38,415 
Mining
$
0.45 
$
0.35 
$
0.40 
Processing
$
0.94 
$
0.96 
$
0.95 
Indirect
$
0.24 
$
0.22 
$
0.23 
By-product credits
$
(0.02)
$
(0.04)
$
(0.03)
Treatment, refining and other
$
0.49 
$
0.48 
$
0.49 
Copper C1 cash costs
$
2.10 
$
1.97 
$
2.04 
Ero Copper Corp. June 30, 2026 MD&A | Page 28

Total Copper Operations(1)

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Cost of production
$
90,730 
$
92,090 
$
46,890 
$
182,820 
$
82,609 
Add (less):
Transportation costs & other
12,288 
9,287 
1,792 
21,575 
3,114 
Treatment, refining, and other
(4,847)
4,635 
2,340 
(212)
4,750 
By-product credits
(8,470)
(10,778)
(6,205)
(19,248)
(10,904)
Incentive payments
(2,180)
(2,080)
(1,457)
(4,260)
(2,746)
Net change in inventory
4,668 
(2,039)
(1,611)
2,629 
1,048 
Foreign exchange and other
110 
(91)
16 
19 
(131)
C1 cash costs
$
92,299 
$
91,024 
$
41,765 
$
183,323 
$
77,740 

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs
Mining
$
51,473 
$
48,949 
$
31,442 
$
100,422 
$
57,238 
Processing
28,552 
27,078 
6,549 
55,630 
12,901 
Indirect
13,303 
11,853 
5,847 
25,156 
10,641 
Production costs
93,328 
87,880 
43,838 
181,208 
80,780 
By-product credits
(8,470)
(10,778)
(6,205)
(19,248)
(10,904)
Treatment, refining and other
7,441 
13,922 
4,132 
21,363 
7,864 
C1 cash costs
$
92,299 
$
91,024 
$
41,765 
$
183,323 
$
77,740 

(1)     Total Copper Operations include Caraíba and Tucumã. C1 cash costs for periods prior to Q3 2025 exclude the Tucumã Operation, which achieved commercial production effective July 1, 2025

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs per pound
Total copper produced (lbs, 000)
38,173 
38,111 
20,199 
76,285 
36,418 
Mining
$
1.35 
$
1.28 
$
1.56 
$
1.32 
$
1.57 
Processing
$
0.75 
$
0.71 
$
0.32 
$
0.73 
$
0.35 
Indirect
$
0.35 
$
0.31 
$
0.29 
$
0.33 
$
0.29 
By-product credits
$
(0.22)
$
(0.28)
$
(0.31)
$
(0.25)
$
(0.30)
Treatment, refining and other
$
0.19 
$
0.37 
$
0.21 
$
0.27 
$
0.22 
Copper C1 cash costs
$
2.42 
$
2.39 
$
2.07 
$
2.40 
$
2.13 

Ero Copper Corp. June 30, 2026 MD&A | Page 29

Realized Copper Price

Realized copper price is a non-IFRS ratio which is calculated as gross copper revenue divided by pounds of copper sold during the period. Management believes measuring realized copper price enables investors to better understand performance based on realized copper sales in each reporting period.

The following table provides a calculation of realized copper price and a reconciliation to copper segment revenue.


Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Copper revenue(1)
$
219,422 
$
220,704 
$
138,060 
$
440,126 
$
247,562 
less: by-product credits
(8,470)
(10,778)
(6,205)
(19,248)
(11,457)
Net copper revenue
210,952 
209,926 
131,855 
420,878 
236,105 
add: treatment, refining and other
(4,847)
4,635 
4,834 
(212)
7,323 
add: royalty taxes
4,112 
4,278 
2,700 
8,390 
4,692 
Gross copper revenue
210,217 
218,839 
139,389 
429,056 
248,120 
Total copper sold in concentrate (lbs, 000)
36,392 
39,586 
33,854 
75,977 
60,566 
Realized copper price
$
5.78 
$
5.53 
$
4.12 
$
5.65 
$
4.10 
(1) Copper revenue includes provisional price and volume adjustments

Gold C1 Cash Cost and Gold AISC

Gold C1 Cash Cost is a non-IFRS performance measure used by the Company to manage and evaluate the operating performance of its gold mining segment and is calculated as C1 cash costs divided by total ounces of gold produced or recovered during the period. C1 cash cost includes total cost of production, net of by-product credits and incentive payments. Gold C1 cash cost is widely reported in the mining industry as benchmarks for performance but does not have a standardized meaning and is disclosed as a supplement to IFRS measures.

Gold AISC is an extension of gold C1 cash cost discussed above and is also a key performance measure used by management to evaluate operating performance of its gold mining segment. Gold AISC is calculated as AISC divided by total ounces of gold produced or recovered during the period. AISC includes C1 cash costs, site general and administrative costs, accretion of mine closure and rehabilitation provision, sustaining capital expenditures, sustaining leases, and royalties and production taxes. Gold AISC is widely reported in the mining industry as benchmarks for performance but does not have a standardized meaning and is disclosed as a supplement to IFRS measures.

Gold Production C1 Cash Cost and AISC

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

Ero Copper Corp. June 30, 2026 MD&A | Page 30

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Cost of production
$
16,618 
$
13,877 
$
8,761 
$
30,495 
$
14,986 
less: Gold concentrate re-handling costs
(3,682)
(1,641)
— 
(5,323)
— 
Cost of mine production
$
12,936 
$
12,236 
$
8,761 
$
25,172 
$
14,986 
Add (less):
Incentive payments
(427)
(320)
(209)
(747)
(478)
Net change in inventory
357 
(807)
63 
(450)
1,402 
By-product credits
(284)
(189)
(159)
(473)
(270)
Smelting, refining and selling expenses
1,167 
769 
177 
1,936 
323 
Foreign exchange and other
40 
(38)
(2)
2 
(31)
Gold production C1 cash costs
$
13,789 
$
11,651 
$
8,631 
$
25,440 
$
15,932 
Site general and administrative
1,647 
1,409 
1,264 
3,056 
2,341 
Accretion of mine closure and rehabilitation provision
152 
145 
145 
297 
286 
Sustaining capital expenditure
5,867 
8,136 
4,435 
14,003 
8,344 
Sustaining lease payments
3,077 
2,623 
2,313 
5,700 
4,334 
Royalties and production taxes
516 
434 
511 
950 
849 
Gold production AISC
$
25,048 
$
24,398 
$
17,299 
$
49,446 
$
32,086 
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs
Mining
$
6,894 
$
5,820 
$
4,552 
$
12,714 
$
8,312 
Processing
3,414 
2,940 
2,472 
6,354 
4,678 
Indirect
2,598 
2,311 
1,589 
4,909 
2,889 
Production costs
12,906 
11,071 
8,613 
23,977 
15,879 
Treatment, refining and other
1,167 
769 
177 
1,936 
323 
By-product credits
(284)
(189)
(159)
(473)
(270)
Gold production C1 cash costs
$
13,789 
$
11,651 
$
8,631 
$
25,440 
$
15,932 
Site general and administrative
1,647 
1,409 
1,264 
3,056 
2,341 
Accretion of mine closure and rehabilitation provision
152 
145 
145 
297 
286 
Sustaining capital expenditure
5,867 
8,136 
4,435 
14,003 
8,344 
Sustaining lease payments
3,077 
2,623 
2,313 
5,700 
4,334 
Royalties and production taxes
516 
434 
511 
950 
849 
Gold production AISC
$
25,048 
$
24,398 
$
17,299 
$
49,446 
$
32,086 
Ero Copper Corp. June 30, 2026 MD&A | Page 31

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs per ounce
Total gold produced (ounces)
8,693 
5,495 
7,743 
14,188 
14,381 
Mining
$
793 
$
1,059 
$
588 
$
896 
$
578 
Processing
$
393 
$
535 
$
319 
$
448 
$
325 
Indirect
$
299 
$
420 
$
204 
$
346 
$
201 
Treatment, refining and other
$
134 
$
140 
$
24 
$
136 
$
22 
By-product credits
$
(33)
$
(34)
$
(20)
$
(33)
$
(18)
Gold production C1 cash cost
$
1,586 
$
2,120 
$
1,115 
$
1,793 
$
1,108 
Gold production AISC
$
2,881 
$
4,441 
$
2,234 
$
3,485 
$
2,231 

Historic Gold Concentrate C1 Cash Cost and AISC

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

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Cost of production
$
16,618 
$
13,877 
$
8,761 
$
30,495 
$
14,986 
less: Cost of mine production
(12,936)
(12,236)
(8,761)
(25,172)
(14,986)
Gold concentrate re-handling costs
$
3,682 
$
1,641 
$
— 
$
5,323 
$
— 
Add (less):
Net change in inventory
(11)
(328)
— 
(339)
— 
By-product credits
(974)
(134)
— 
(1,108)
— 
Smelting, refining and selling expenses
4,811 
754 
— 
5,565 
— 
Historic gold concentrate C1 cash costs
$
7,508 
$
1,933 
$
— 
$
9,441 
$
— 
Royalties and production taxes
967 
246 
— 
1,213 
— 
Historic gold concentrate AISC
$
8,475 
$
2,179 
$
— 
$
10,654 
$
— 
Costs
Gold concentrate re-handling costs
3,671 
1,313 
— 
4,984 
— 
Smelting and refining costs
4,811 
754 
— 
5,565 
— 
By-product credits
(974)
(134)
— 
(1,108)
— 
Historic gold concentrate C1 cash costs
$
7,508 
$
1,933 
$
— 
$
9,441 
$
— 
Royalties and production taxes
967 
246 
— 
1,213 
— 
Historic gold concentrate AISC
$
8,475 
$
2,179 
$
— 
$
10,654 
$
— 
Ero Copper Corp. June 30, 2026 MD&A | Page 32

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs per ounce
Historic gold concentrate recovered (ounces)
11,860 
2,112 
— 
13,972 
— 
Gold concentrate re-handling costs
$
310 
$
622 
$
— 
$
357 
$
— 
Smelting, refining and selling costs
$
406 
$
357 
$
— 
$
398 
$
— 
By-product credits
$
(82)
$
(63)
$
— 
$
(79)
$
— 
Historic gold concentrate C1 cash costs
$
633 
$
915 
$
— 
$
676 
$
— 
Historic gold concentrate AISC
$
715 
$
1,032 
$
— 
$
763 
$
— 


Realized Gold Price

Realized gold price is a non-IFRS ratio that is calculated as gross gold revenue divided by ounces of gold sold during the period. Management believes measuring realized gold price enables investors to better understand performance based on the realized gold sales in each reporting period. The following table provides a calculation of realized gold price and a reconciliation to gold segment revenues, its most directly comparable IFRS measure.

(in '000s except for ounces and price per ounce)
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Xavantina revenue
$
64,891 
$
42,466 
$
25,450 
$
107,357 
$
41,036 
less: by-product credits
(284)
(189)
(159)
(473)
(270)
Gold revenue, net
$
64,607 
$
42,277 
$
25,291 
$
106,884 
$
40,766 
add: smelting, refining, and other charges
1,799 
1,054 
479 
2,853 
783 
Gold revenue, gross
$66,406 $43,331 $25,770 $109,737 $41,549 
Spot (cash)$57,945 $30,627 $21,132 $88,572 $33,886 
Stream (cash)$4,908 $7,375 $1,231 $12,283 $2,010 
Stream (amortization of deferred revenue)
$3,553 $5,329 $3,407 $8,882 $5,653 
Total gold ounces sold
17,016 
10,330 
8,276 
27,346 
14,110 
Spot14,231 6,316 6,394 20,547 10,861 
Stream2,785 4,014 1,882 6,799 3,249 
Realized gold price (per ounce)
$
3,903 
$
4,195 
$
3,114 
$
4,013 
$
2,945 
Spot (cash)$4,072 $4,849 $3,305 $4,311 $3,120 
Stream (cash)$1,762 $1,837 $654 $1,807 $619 
Stream (amortization of deferred revenue)
$1,276 $1,328 $1,810 $1,306 $1,740 
Ero Copper Corp. June 30, 2026 MD&A | Page 33

Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and Adjusted EBITDA

EBITDA and adjusted EBITDA are non-IFRS performance measures used by management to evaluate its debt service capacity and performance of its operations. EBITDA represents earnings before finance expense, finance income, income taxes, depreciation and amortization. Adjusted EBITDA is EBITDA before the pre-tax effect of adjustments for non-cash and/or non-recurring items.

The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Net Income
$
90,749 
$
109,311 
$
71,028 
$
200,060 
$
151,655 
Adjustments:
Finance expense
12,678 
11,064 
5,976 
23,742 
10,699 
Finance income
(1,443)
(1,121)
(1,130)
(2,564)
(1,968)
Income tax expense
19,321 
17,885 
13,082 
37,206 
27,823 
Amortization and depreciation
38,514 
38,319 
25,215 
76,833 
43,835 
EBITDA
$
159,819 
$
175,458 
$
114,171 
$
335,277 
$
232,044 
Foreign exchange gain
(10,845)
(53,655)
(38,640)
(64,500)
(97,040)
Share based compensation
1,063 
2,640 
7,756 
3,703 
8,929 
Unrealized (gain) loss on commodity derivatives
(6,014)
751 
(636)
(5,263)
1,466 
Others
— 
— 
— 
— 
458 
Adjusted EBITDA
$
144,023 
$
125,194 
$
82,651 
$
269,217 
$
145,857 

Ero Copper Corp. June 30, 2026 MD&A | Page 34

Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company

“Adjusted net income attributable to owners of the Company” is net income attributed to shareholders as reported, adjusted for certain types of transactions that, in management's judgment, are not indicative of our normal operating activities or do not necessarily occur on a recurring basis. “Adjusted net income per share attributable to owners of the Company” (“Adjusted EPS”) is calculated as "adjusted net income attributable to owners of the Company" divided by weighted average number of outstanding common shares in the period. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investor and analysts use these supplemental non-IFRS performance measures to evaluate the normalized performance of the Company. The presentation of Adjusted EPS is not meant to substitute the net income (loss) per share attributable to owners of the Company (“EPS”) presented in accordance with IFRS, but rather it should be evaluated in conjunction with such IFRS measures.

The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Net income as reported attributable to the owners of the Company
$
89,543 
$
108,771 
$
70,548 
$
198,314 
$
150,775 
Adjustments:
Share based compensation
1,063 
2,640 
7,756 
3,703 
8,929 
Unrealized foreign exchange gain on USD denominated balances in MCSA
(3,267)
(30,260)
(28,204)
(33,527)
(67,832)
Unrealized foreign exchange loss (gain) on foreign exchange derivative contracts
5,363 
(16,464)
(6,606)
(11,101)
(23,345)
Unrealized (gain) loss on commodity derivatives
(5,870)
733 
(633)
(5,137)
1,446 
Others
— 
— 
— 
— 
458 
Tax effect on the above adjustments
575 
7,014 
5,281 
7,589 
13,560 
Adjusted net income attributable to owners of the Company
$
87,407 
$
72,434 
$
48,142 
$
159,841 
$
83,991 
Weighted average number of common shares
Basic
104,282,548 
104,262,136 
103,582,082 
104,272,398 
103,573,416 
Diluted
105,876,946 
105,023,869 
103,905,561 
105,880,086 
103,902,012 
Adjusted EPS
Basic
$
0.84 
$
0.69 
$
0.46 
$
1.53 
$
0.81 
Diluted
$
0.83 
$
0.69 
$
0.46 
$
1.51 
$
0.81 
Ero Copper Corp. June 30, 2026 MD&A | Page 35

Net Debt

Net debt is a performance measure used by the Company to assess its financial position and ability to pay down its debt. Net debt is determined based on cash and cash equivalents, short-term investments, net of loans and borrowings as reported in the Company’s condensed consolidated interim financial statements. The following table provides a calculation of net (cash) debt based on amounts presented in the Company’s condensed consolidated interim financial statements as at the periods presented.

June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
Current portion of loans and borrowings
$
34,578 
$
39,202 
$
55,711 
$
58,076 
Long-term portion of loans and borrowings
519,856
542,691
551,403
569,300
Less:
Cash and cash equivalents
(101,742)
(91,207)
(105,442)
(68,303)
Net debt (cash)
$
452,692 
$
490,686 
$
501,672 
$
559,073 


Working Capital and Available Liquidity

Working capital is calculated as current assets less current liabilities as reported in the Company’s condensed consolidated interim financial statements. The Company uses working capital as a measure of the Company’s short-term financial health and ability to meet its current obligations using its current assets. Available liquidity is calculated as the sum of cash and cash equivalents, short-term investments and the undrawn amount available on its revolving credit facilities. The Company uses this information to evaluate the liquid assets available. The following table provides a calculation for these based on amounts presented in the Company’s condensed consolidated interim financial statements as at the periods presented.

June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
Current assets
$
324,000 
$
290,299 
$
276,212 
$
178,524 
Less: Current liabilities
(236,345)
(224,064)
(260,718)
(212,010)
Working capital (deficit)
$
87,655 
$
66,235 
$
15,494 
$
(33,486)
Cash and cash equivalents
101,742 
91,207 
105,442 
68,303 
Available undrawn revolving credit facilities
80,000 
55,000 
45,000 
45,000 
Available liquidity
$
181,742 
$
146,207 
$
150,442 
$
113,303 
Ero Copper Corp. June 30, 2026 MD&A | Page 36

DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company’s management, with the participation of the President and CEO and Executive Vice President and CFO, is responsible for establishing and maintaining adequate disclosure controls and procedures (“DC&P”) and internal control over financial reporting (“ICFR”) using Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") as its internal control framework.

The Company’s DC&P are designed to provide reasonable assurance that material information related to the Company is identified and communicated on a timely basis.

The Company’s ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Any system of ICFR, no matter how well designed, has inherent limitations and cannot provide absolute assurance that all misstatements and instances of fraud, if any, within the Company have been prevented or detected. The Company’s ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

There were no changes in the Company’s DC&P and ICFR that materially affected, or are reasonably likely to materially affect, ICFR during the three and six months ended June 30, 2026.

NOTE REGARDING SCIENTIFIC AND TECHNICAL INFORMATION

Unless otherwise indicated, scientific and technical information in this MD&A relating to Ero’s properties (“Technical Information”) is based on information contained in the following:

The report prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”) and entitled “2022 Mineral Resources and Mineral Reserves of the Caraíba Operations, Curaçá Valley, Bahia, Brazil”, dated December 22, 2022 with an effective date of September 30, 2022, prepared by Porfirio Cabaleiro Rodriguez, FAIG, Bernardo Horta de Cerqueira Viana, FAIG, Fábio Valério Câmara Xavier, MAIG and Ednie Rafael Moreira de Carvalho Fernandes, MAIG all of GE21 Consultoria Mineral Ltda. (“GE21”), Dr. Beck Nader, FAIG of BNA Mining Solutions (“BNA”) and Alejandro Sepulveda, Registered Member (#0293) (Chilean Mining Commission) of NCL Ingeniería y Construcción SpA (“NCL”) (the “Caraíba Operations Technical Report”). Each a “qualified person” and “independent” of the Company within the meanings of NI 43-101.

The report prepared in accordance with NI-43-101 and entitled "Technical Report on the Xavantina Operations, Mato Grosso, Brazil", dated December 19, 2025 with an effective date of June 30, 2025, prepared by Branca Horta de Almeida Abrantes, MAIG, Hugo Ribeiro de Andrade Filho, FAusIMM (CP), Leonardo de Moraes Soares, MAIG, Paulo Roberto Bergmann Moreira, FAusIMM and Porfirio Cabaleiro Rodriguez, FAIG, all of GE21. Each a "qualified person" and "independent" of the Company within the meanings of NI 43-101.

The report prepared in accordance with NI 43-101 and entitled “Boa Esperança Project NI 43-101 Technical Report on Feasibility Study Update”, dated November 12, 2021 with an effective date of August 31, 2021, prepared by Kevin Murray, P. Eng., Scott C. Elfen, P.E. (each of Ausenco Engineering Canada Inc.), Erin L. Patterson, P.E. (formerly employed by its affiliate Ausenco Engineering USA South Inc. and together with Ausenco Engineering Canada Inc., referred to as “Ausenco”), Carlos
Ero Copper Corp. June 30, 2026 MD&A | Page 37

Guzmán, FAusIMM RM CMC of NCL, and Emerson Ricardo Re, MSc, MBA, MAusIMM (CP) (No. 305892), Registered Member (No. 0138) (Chilean Mining Commission) and Resource Manager of the Company on the date of the report (now of HCM Consultoria Geologica Eireli (“HCM”)) (the “Tucumã Project Technical Report”). Each of Kevin Murray, P. Eng., Erin L. Patterson, P.E., Scott C. Elfen, P.E., Carlos Guzmán, FAusIMM RM CMC and Emerson Ricardo Re, MAusIMM (CP), is a “qualified person” of the Company within the meanings of NI 43-101 or, in the case of Erin L. Patterson, P.E., who is no longer employed by Ausenco, was a "qualified person" of the Company within the meanings of NI 43-101 on the date of the report. Each of Kevin Murray, P. Eng., Erin L. Patterson, P.E., Scott C. Elfen, P.E., and Carlos Guzmán, FAusIMM RM CMC is “independent” of the Company within the meanings of NI 43-101 or, in the case of Erin L. Patterson, P.E., was "independent" of the Company on the date of the report. Emerson Ricardo Re, MAusIMM (CP), as Resource Manager of the Company (on the date of the report and now of HCM), was not “independent” of the Company on the date of the report, within the meaning of NI 43-101.

The report prepared in accordance with NI 43-101 and entitled "Preliminary Economic Assessment for the Furnas Project, Para State, Brazil", dated March 30, 2026 with an effective date of February 23, 2026, prepared by João Estevão Jr., MAIG of SDPM Mining Consulting ("SDPM"), Enrique Alfonso Rubio Esquivel, Registered Member (No. 255) (Chilean Mining Commission), Luis Bernal Venegas, Registered Member (No. 415) (Chilean Mining Commission), and Ricardo Martín Miranda Díaz, Registered Member (No. 145) (Chilean Mining Commission), all of Redco Mining Consultants ("Redco"), and Cid Gonçalves Monteiro Filho, SME RM (04317974), MAIG (No. 8444), FAusIMM (No. 329148) Reserve and Resource Manager of the Company (the “Furnas Project Technical Report”). Each of João Estevão Jr., MAIG, Enrique Alfonso Rubio Esquivel, Registered Member (No. 255) (Chilean Mining Commission), Luis Bernal Venegas, Registered Member (No. 415) Chilean Mining Commission), Ricardo Martín Miranda Díaz, Registered Member (No. 145) (Chilean Mining Commission) and Cid Gonçalves Monteiro Filho, RM SME, FAusIMM, MAIG, is a “qualified person” of the Company within the meaning of NI 43-101. Each of Joao Estevao Jr., MAIG, Enrique Alfonso Rubio Esquivel, Registered Member (No. 255) (Chilean Mining Commission), Luis Bernal Venegas, Registered Member (No. 415) Chilean Mining Commission), Ricardo Martín Miranda Díaz, Registered Member (No. 145) (Chilean Mining Commission) is “independent” of the Company within the meaning of NI 43-101. Cid Gonçalves Monteiro Filho, RM SME, FAusIMM, MAIG, being the Resource and Reserve Manager of the Company, is not “independent” of the Company within the meaning of NI 43-101.

Reference should be made to the full text of the Caraíba Operations Technical Report, the Xavantina Operations Technical Report, the Tucumã Project Technical Report, and the Furnas Project Technical Report, each of which is available for review on the Company's website at www.ero.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov.

The disclosure of Technical Information in this MD&A has been reviewed and approved by Cid Gonçalves Monteiro Filho, SME RM (04317974), MAIG (No. 8444), FAusIMM (No. 329148) and Mineral Resources and Reserves Manager of the Company who is a “qualified person” within the meanings of NI 43-101.

Cautionary Note Regarding Forward-Looking Statements

This MD&A contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-
Ero Copper Corp. June 30, 2026 MD&A | Page 38

looking statements include statements that use forward-looking terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements with respect to the Company’s expected production, operating costs and capital expenditures at the Caraíba Operations, the Tucumã Operation and the Xavantina Operations, including the expected timing and weighting of production, plant throughput, mined and processed copper or gold grades, recoveries and unit costs; capital and operating cost estimates and economic analyses (including cash flow projections), including those from the Caraíba Operations Technical Report, the Xavantina Operations Technical Report, the Tucumã Project Technical Report and the Furnas Project Technical Report; the estimation of mineral reserves and mineral resources; estimated completion dates for certain milestones, including completion of the Pilar Mine’s new external shaft at the Caraíba Operations; the ability of the Company to maintain improved performance at the Caraíba mill and realize the expected benefits associated with the Pilar Mine’s new external shaft; the expected timing of delivery, installation and commissioning of additional modular tailings filters at the Tucumã Operation and the anticipated impact of such filters on tailings filtration capacity, plant throughput and future production; the expected benefits of the ventilation and cooling infrastructure installed at the Xavantina Operations, including increased mining rates, mill throughput and processed gold grades; expectations regarding gold concentrate sales from the Xavantina Operations, including the expected timing and volume of sales and the anticipated benefits of drier seasonal conditions and the mobile filter press and industrial dryer commissioned on site; the anticipated benefits of the new powerline and processing plant optimization initiatives at the Xavantina Operations; expectations regarding the impact of inflationary pressures, the US-Iran conflict and fluctuations in the Brazilian real on the Company’s operating costs, capital expenditures and financial results; expectations of cost savings related to the OneEro Program; expectations regarding foreign exchange derivative contracts, including expected gains thereon and the exchange rate assumptions underlying such expectations; the Company’s capital allocation priorities, including continued deleveraging of the balance sheet; the Company’s ability to advance work programs under the Furnas earn-in agreement, including exploration, drilling, permitting, engineering, geotechnical, hydrogeological, environmental and metallurgical programs; the expected completion of the Phase 3 drill program and other planned exploration activities at the Furnas Copper-Gold Project; the timing and completion of a pre-feasibility study for the Furnas Copper-Gold Project, currently expected to be published in 2027; the potential to extend known mineralization, upgrade mineral resources to higher-confidence categories or mineral reserves, enhance project economics or increase the potential production profile at the Furnas Copper-Gold Project; the discovery of additional mineralization and the potential impact of exploration results on future production rates at the Company’s mines or processing facilities; the Company’s expectations associated with historic gold concentrate stockpiles at the Xavantina Operations, including operating costs, payability, grades, sales volumes and the timing of sales; and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results, actions, events, conditions, performance or achievements to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks discussed in this MD&A and in the AIF under the heading “Risk Factors”. The risks discussed in this MD&A and in the AIF are not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results, actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that
Ero Copper Corp. June 30, 2026 MD&A | Page 39

cause results, actions, events, conditions, performance or achievements to differ from those anticipated, estimated or intended.

Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company’s actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to herein and in the AIF under the heading “Risk Factors”.

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond the Company’s control. In connection with the forward-looking statements contained in this MD&A and in the AIF, the Company has made certain assumptions about, among other things: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company’s properties and assets; future prices of copper, gold and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the Caraíba Operations, the Xavantina Operations, the Tucumã Operation and the Furnas Copper-Gold Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction costs and expenditures; the price of other commodities such as fuel; future currency exchange rates, interest rates and tariff rates; operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks, political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with local groups and the Company’s ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the Company’s current loan arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this MD&A, these assumptions are subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. The Company cautions that the foregoing list of assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained in this MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements contained herein are made as of the date of this MD&A and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.

Cautionary Notes Regarding Mineral Resource and Reserve Estimates

Ero Copper Corp. June 30, 2026 MD&A | Page 40

Unless otherwise indicated, all reserve and resource estimates included in this MD&A and the documents incorporated by reference herein have been prepared in accordance with Canadian NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies.


ADDITIONAL INFORMATION

Additional information about Ero and its business activities, including the AIF, is available on the Company’s website at www.ero.com, and under the Company’s profile at www.sedarplus.ca and www.sec.gov.
Ero Copper Corp. June 30, 2026 MD&A | Page 41










ero-copper_logoxeroxrgb1.jpg

CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS


FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2026 AND 2025















    


Ero Copper Corp.
Table of Contents
CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Statements of Financial Position
1
Condensed Consolidated Statements of Operations and Comprehensive Income
2
Condensed Consolidated Statements of Cash Flow
3
Condensed Consolidated Statements of Changes in Shareholders' Equity
4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
General
Note 1. Nature of Operations
5
Note 2. Basis of Preparation
5
Note 3. Segment Disclosure
6
Statements of Financial Position
Note 4. Inventories
10
Note 5. Other Current Assets
10
Note 6. Mineral Properties, Plant and Equipment
11
Note 7. Exploration and Evaluation Assets
12
Note 8. Deposits and Other Non-current Assets
12
Note 9. Accounts Payable and Accrued Liabilities
13
Note 10. Loans and Borrowings
13
Note 11. Deferred Revenue
15
Note 12. Other Non-current Liabilities
16
Note 13. Share Capital
17
Statements of Earnings
Note 14. Revenue
20
Note 15. Cost of Sales
21
Note 16. General and Administrative Expenses
21
Note 17. Finance Expense
22
Note 18. Foreign Exchange Gain
22
Other Items
Note 19. Financial Instruments
22
Note 20. Supplemental Cash Flow Information
25
Note 21. Commitment
25




Ero Copper Corp.
Condensed Consolidated Statements of Financial Position
(Unaudited, Amounts in thousands of US Dollars)
    
Notes
June 30, 2026
December 31, 2025
ASSETS
Current
Cash and cash equivalents
$
101,742 
$
105,442 
Trade receivables
54,393 
41,061 
Inventories
4
129,995 
107,111 
Other current assets
5
37,870 
22,598 
324,000 
276,212 
Non-Current
Mineral properties, plant and equipment
6
1,745,913 
1,574,054 
Exploration and evaluation assets
7
48,299 
33,869 
Deferred income tax assets
1,763 
3,047 
Deposits and other non-current assets
8
35,458 
36,696 
1,831,433 
1,647,666 
Total Assets
$
2,155,433 
$
1,923,878 
LIABILITIES
Current
Accounts payable and accrued liabilities
9
$
165,149 
$
154,124 
Current portion of loans and borrowings
10
34,578 
55,711 
Current portion of deferred revenue
11
11,626 
12,800 
Income taxes payable
11,092 
14,675 
Current portion of derivatives
19
— 
7,125 
Current portion of lease liabilities
13,900 
16,283 
236,345 
260,718 
Non-Current
Loans and borrowings
10
519,856 
551,403 
Deferred revenue
11
89,100 
92,950 
Provision for rehabilitation and closure costs
24,935 
21,978 
Deferred income tax liabilities
22,914 
10,729 
Lease liabilities
5,021 
8,950 
Other non-current liabilities
12
39,074 
39,288 
700,900 
725,298 
Total Liabilities
937,245 
986,016 
SHAREHOLDERS’ EQUITY
Share capital
13
300,641 
298,490 
Equity reserves
(30,194)
(107,735)
Retained earnings
943,092 
744,778 
Equity attributable to owners of the Company
1,213,539 
935,533 
Non-controlling interests
4,649 
2,329 
1,218,188 
937,862 
Total Liabilities and Equity
$
2,155,433 
$
1,923,878 

Commitments (Notes 7, 11 and 21); Subsequent Event (Note 10)
APPROVED ON BEHALF OF THE BOARD:
"Makko DeFilippo"
, President, CEO and Director
"Jill Angevine"
, Director
The accompanying notes are an integral part of these condensed consolidated interim financial statements               Page 1
Ero Copper Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited, Amounts in thousands of US Dollars, except share and per share amounts)
Three months ended June 30,
Six months ended June 30,
Notes
2026
2025
2026
2025
Revenue
14
$
284,313 
$
163,510 
$
547,483 
$
288,598 
Cost of sales
15
(162,894)
(96,224)
(320,150)
(165,790)
Gross profit
121,419 
67,286 
227,333 
122,808 
Expenses
General and administrative
16
(12,535)
(11,564)
(23,593)
(22,935)
Share-based compensation
13 (e)
(1,063)
(7,756)
(3,703)
(8,929)
Operating Income
107,821 
47,966 
200,037 
90,944 
Finance income
1,443 
1,130 
2,564 
1,968 
Finance expense
17
(12,678)
(5,976)
(23,742)
(10,699)
Foreign exchange gain
18
10,845 
38,640 
64,500 
97,040 
Other income (expenses)
2,639 
2,350 
(6,093)
225 
Income before income taxes
110,070 
84,110 
237,266 
179,478 
Current income tax expense
(17,775)
(9,305)
(24,972)
(13,023)
Deferred income tax expense
(1,546)
(3,777)
(12,234)
(14,800)
Income tax expense
(19,321)
(13,082)
(37,206)
(27,823)
Net income for the period
$
90,749 
$
71,028 
$
200,060 
$
151,655 
Other comprehensive gain
Foreign currency translation gain
7,716 
37,847 
59,597 
83,622 
Comprehensive income
$
98,465 
$
108,875 
$
259,657 
$
235,277 
Net income attributable to:
Owners of the Company
89,543 
70,548 
198,314 
150,775 
Non-controlling interests
1,206 
480 
1,746 
880 
$
90,749 
$
71,028 
$
200,060 
$
151,655 
Comprehensive income attributable to:
Owners of the Company
97,183 
108,042 
257,337 
233,597 
Non-controlling interests
1,282 
833 
2,320 
1,680 
$
98,465 
$
108,875 
$
259,657 
$
235,277 
Net income per share attributable to owners of the Company
Basic
13 (f)
$
0.86 
$
0.68 
$
1.90 
$
1.46 
Diluted
13 (f)
$
0.85 
$
0.68 
$
1.87 
$
1.45 
Weighted average number of common shares outstanding
Basic
13 (f)
104,282,548 
103,582,082 
104,272,398 
103,573,416 
Diluted
13 (f)
105,876,946 
103,905,561 
105,880,086 
103,902,012 
The accompanying notes are an integral part of these condensed consolidated interim financial statements               Page 2
Ero Copper Corp.
Condensed Consolidated Statements of Cash Flow
(Unaudited, Amounts in thousands of US Dollars)


Three months ended June 30,
Six months ended June 30,
Notes
2026
2025
2026
2025
Cash Flows from Operating Activities
Net income for the period
$
90,749 
$
71,028 
$
200,060 
$
151,655 
Adjustments for:
Amortization and depreciation
38,514 
25,215 
76,833 
43,835 
Income tax expense
19,321 
13,082 
37,206 
27,823 
Amortization of deferred revenue
14
(3,553)
(3,407)
(8,882)
(5,653)
Share-based compensation
13 (e)
1,063 
7,756 
3,703 
8,929 
Finance income
(1,443)
(1,130)
(2,564)
(1,968)
Finance expenses
17
12,678 
5,976 
23,742 
10,699 
Foreign exchange gain
(14,610)
(38,644)
(62,963)
(96,108)
Other
(2,919)
245 
6,274 
2,437 
Changes in non-cash working capital items
20
(6,686)
10,491 
(30,817)
(32,275)
133,114 
90,612 
242,592 
109,374 
Advances from customers
11
— 
— 
— 
50,000 
Derivative contract settlements
6,109 
217 
3,698 
(1,999)
Provision settlements
(913)
(458)
(1,556)
(1,200)
Income taxes paid
(448)
(115)
(14,115)
(479)
137,862 
90,256 
230,619 
155,696 
Cash Flows used in Investing Activities
Additions to mineral properties, plant and equipment
(80,528)
(66,090)
(136,305)
(122,520)
Additions to exploration and evaluation assets
(5,505)
(5,189)
(10,541)
(8,298)
Interest received
995 
765 
1,690 
1,282 
(85,038)
(70,514)
(145,156)
(129,536)
Cash Flows used in Financing Activities
Lease liability payments
(5,363)
(4,518)
(10,541)
(8,521)
New loans and borrowings, net of transaction costs
10
3,334 
— 
6,064 
55,266 
Loans and borrowings repaid
10
(36,231)
(22,122)
(57,662)
(31,624)
Interest paid on loans and borrowings
10
(4,344)
(4,432)
(21,185)
(21,359)
Other finance expenses paid
(3,394)
(2,780)
(6,359)
(4,830)
Proceeds from exercise of stock options
324 
277 
1,462 
484 
(45,674)
(33,575)
(88,221)
(10,584)
Effect of exchange rate changes on cash and cash equivalents
3,385 
1,563 
(942)
2,325 
Net increase (decrease) in cash and cash equivalents
10,535 
(12,270)
(3,700)
17,901 
Cash and cash equivalents - beginning of period
91,207 
80,573 
105,442 
50,402 
Cash and cash equivalents - end of period
$
101,742 
$
68,303 
$
101,742 
$
68,303 
Supplemental cash flow information (note 20)
The accompanying notes are an integral part of these condensed consolidated interim financial statements              Page 3
Ero Copper Corp.
Condensed Consolidated Statements of Changes in Shareholders' Equity
(Unaudited, Amounts in thousands of US Dollars, except share and per share amounts)
Share Capital
Equity Reserves
Notes
Number of
shares
Amount
Contributed
Surplus
Foreign
Exchange
Retained
Earnings
Total
Non-controlling
interest
Total equity
Balance, December 31, 2024
103,555,211 
$
286,548 
$
8,181 
$
(188,653)
$
481,055 
$
587,131 
$
3,943 
$
591,074 
Income for the period
— 
— 
— 
— 
150,775 
150,775 
880 
151,655 
Other comprehensive income for the period
— 
— 
— 
82,822 
— 
82,822 
800 
83,622 
Total comprehensive income for the period
— 
— 
— 
82,822 
150,775 
233,597 
1,680 
235,277 
Shares issued for:
Exercise of options
38,186 
732 
(248)
— 
— 
484 
— 
484 
Settlement of restricted share units
4,433 
96 
(206)
— 
— 
(110)
— 
(110)
Share-based compensation
13 (e)
— 
— 
2,195 
— 
— 
2,195 
— 
2,195 
Balance, June 30, 2025
103,597,830 
$
287,376 
$
9,922 
$
(105,831)
$
631,830 
$
823,297 
$
5,623 
$
828,920 
Balance, December 31, 2025
104,192,288 
$
298,490 
$
7,335 
$
(115,070)
$
744,778 
$
935,533 
$
2,329 
$
937,862 
Income for the period
— 
— 
— 
— 
198,314 
198,314 
1,746 
200,060 
Other comprehensive income for the period
— 
— 
— 
59,023 
— 
59,023 
574 
59,597 
Total comprehensive income for the period
— 
— 
— 
59,023 
198,314 
257,337 
2,320 
259,657 
Shares issued for:
Exercise of options
108,283 
2,122 
(660)
— 
— 
1,462 
— 
1,462 
Settlement of restricted share units
2,062 
29 
(41)
— 
— 
(12)
— 
(12)
Share-based compensation
13 (e)
— 
— 
2,403 
— 
— 
2,403 
— 
2,403 
Reclassification of cash-settled share-based compensation to equity
13 (b)
— 
— 
16,816 
— 
— 
16,816 
— 
16,816 
Balance, June 30, 2026
104,302,633 
$
300,641 
$
25,853 
$
(56,047)
$
943,092 
$
1,213,539 
$
4,649 
$
1,218,188 




The accompanying notes are an integral part of these condensed consolidated interim financial statements                              Page 4

Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

1.    Nature of Operations

Ero Copper Corp. (“Ero" or the "Company") was incorporated on May 16, 2016 under the Business Corporations Act (British Columbia) and maintains its head office at Suite 1050, 625 Howe Street, Vancouver, British Columbia, Canada, V6C 2T6. The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO”.

The Company’s primary asset is its 99.6% ownership interest in Mineração Caraíba S.A. (“MCSA”), held indirectly through its wholly-owned subsidiary, Ero Brasil Participações Ltda ("Ero Brasil"). The Company also currently owns a 97.6% ownership interest in NX Gold S.A. (“NX Gold”) indirectly through its wholly-owned subsidiary, Ero Gold Corp. (“Ero Gold”).

MCSA is a Brazilian copper company which holds a 100% interest in the Caraíba Operations, located in the State of Bahia, and the Tucumã Operation, located in the southeastern part of the State of Pará. MCSA’s predominant activity is the production and sale of copper concentrates, with gold and silver produced and sold as by-products.

NX Gold is a Brazilian gold mining company which holds a 100% interest in the Xavantina Operations and is focused on the production and sale of gold dore and concentrate as its main product and silver as its by-product. The Xavantina Operations are located approximately 18 kilometers west of the town of Nova Xavantina, in southeastern State of Mato Grosso, Brazil.

2.    Basis of Preparation

(a)     Statement of Compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting and follow the same accounting policies and methods of application as the Company’s most recent annual consolidated financial statements for the year ended December 31, 2025.

These condensed consolidated interim financial statements do not include all of the information required for full consolidated annual financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended December 31, 2025, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These condensed consolidated interim financial statements were authorized for issue by the Board of Directors of the Company (the “Board”) on August 5, 2026.

(b)     Use of Estimates and Judgments

In preparing these condensed consolidated interim financial statements, management has made judgments, estimates and assumptions that affect the application of the Company’s accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ. Significant judgments made by management in applying the Company’s accounting policies and key sources of estimation uncertainty were the same as those applied in the most recent annual audited consolidated financial statements for the year ended December 31, 2025.





    Notes to Financial Statements | Page 5
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)


(c) New Accounting Policies, Standards and Interpretations

On January 1, 2026, the Company adopted the amendments to the classification and measurement requirements for financial instrument in IFRS 9 Financial Instruments ("IFRS 9"), which was published in May 2024 by IASB. The amendments clarify that a financial asset is derecognized on the date on which the contractual rights to the cash flows expire or the asset is transferred. A financial liability is derecognized on the settlement date, which is the date on which the liability is extinguished. The amendments to IFRS 9 introduced an election that permits the Company, when settling a financial liability or part of a financial liability in cash using an electronic payment system, to deem the financial liability, or part of it, to be discharged before the settlement date if the Company has initiated a payment instruction that resulted in: (a) the Company having no practical ability to withdraw, stop or cancel the payment instruction; (b) the Company having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and (c) the settlement risk associated with the electronic payment system being insignificant. The amendments clarify that unless the above election applies, a financial liability is derecognized on the settlement date, which is the date on which the liability is extinguished because the obligation specified in the contract is discharged or cancelled or expires. The adoption of the amendments did not have a material impact on the Company's condensed consolidated interim financial statements.


3.    Segment Disclosure

Operating segments are determined by the way information is reported and used by the Company's Chief Operating Decision Maker ("CODM") to review operating performance. The Company monitors the operating results of its operating segments independently for the purpose of making decisions about resource allocation and performance assessment.

The Company’s reporting segments include its three operating mines in Brazil, the Caraíba Operations, the Tucumã Operation, and the Xavantina Operations, and its corporate head office in Canada. Significant information relating to the Company's reportable segments is summarized in the tables below:

    Notes to Financial Statements | Page 6
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)


Three months ended June 30, 2026
Caraíba
(Brazil)
Tucumã
(Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
111,973 
$
107,449 
$
64,891 
$
— 
$
284,313 
Cost of production
(59,098)
(31,632)
(16,618)
— 
(107,348)
Depreciation and depletion
(19,061)
(12,896)
(6,195)
— 
(38,152)
Sales expense
(2,572)
(10,003)
(4,819)
— 
(17,394)
Cost of sales
(80,731)
(54,531)
(27,632)
— 
(162,894)
Gross profit
31,242 
52,918 
37,259 
— 
121,419 
Expenses
General and administrative
(5,231)
(2,345)
(1,827)
(3,132)
(12,535)
Share-based compensation
— 
— 
— 
(1,063)
(1,063)
Operating income (loss)
$
26,011 
$
50,573 
$
35,432 
$
(4,195)
$
107,821 
Capital expenditures(1)
49,162 
10,384 
20,883 
9,647 
90,076 


Three months ended June 30, 2025
Caraíba
(Brazil)
Tucumã (Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
88,404 
$
49,656 
$
25,450 
$
— 
$
163,510 
Cost of production
(46,890)
(11,678)
(8,761)
— 
(67,329)
Depreciation and depletion
(19,343)
(30)
(5,513)
— 
(24,886)
Sales expense
(1,751)
(2,027)
(231)
— 
(4,009)
Cost of sales
(67,984)
(13,735)
(14,505)
— 
(96,224)
Gross profit
20,420 
35,921 
10,945 
— 
67,286 
Expenses
General and administrative
(4,799)
(3,111)
(1,430)
(2,224)
(11,564)
Share-based compensation
— 
— 
— 
(7,756)
(7,756)
Operating income (loss)
$
15,621 
$
32,810 
$
9,515 
$
(9,980)
$
47,966 
Capital expenditures(1)
47,990 
18,099 
5,762 
5,233 
77,084 
(1)    Capital expenditures include additions to mineral properties, plant and equipment and additions to exploration and evaluation asset, net of non-cash additions such as change in estimates to mine closure costs, capitalized depreciation expense, capitalized borrowing costs, and additions of right-of-use assets.
(2)    On July 1, 2025, the Company announced that Tucumã Operation achieved commercial production which is the point at which the mine is capable of operating in the manner intended by the Company's management.

    Notes to Financial Statements | Page 7
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)



Six months ended June 30, 2026
Caraíba
(Brazil)
Tucumã
(Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
230,499 
$
209,627 
$
107,357 
$
— 
$
547,483 
Cost of production
(121,450)
(61,370)
(30,495)
— 
(213,315)
Depreciation and depletion
(40,042)
(24,881)
(11,196)
— 
(76,119)
Sales expense
(5,910)
(17,814)
(6,992)
— 
(30,716)
Cost of sales
(167,402)
(104,065)
(48,683)
— 
(320,150)
Gross profit
63,097 
105,562 
58,674 
— 
227,333 
Expenses
General and administrative
(9,750)
(4,481)
(3,370)
(5,992)
(23,593)
Share-based compensation
— 
— 
— 
(3,703)
(3,703)
Operating income (loss)
$
53,347 
$
101,081 
$
55,304 
$
(9,695)
$
200,037 
Capital expenditures(1)
87,412 
16,204 
34,720 
16,033 
154,369 
Assets
Current
$
88,414 
$
134,053 
$
78,580 
$
22,953 
324,000 
Non-current
1,130,463 
497,735 
150,603 
52,632 
1,831,433 
Total Assets
$
1,218,877 
$
631,788 
$
229,183 
$
75,585 
$
2,155,433 
Total Liabilities
$
148,530 
$
44,469 
$
170,626 
$
573,620 
$
937,245 

(1)    Capital expenditures include additions to mineral properties, plant and equipment and additions to exploration and evaluation asset, net of non-cash additions such as change in estimates to mine closure costs, capitalized depreciation expense, capitalized borrowing costs, and additions of right-of-use assets.

During the six months ended June 30, 2026, the Company had eight significant customers (June 30, 2025 - five), including five copper customers (June 30, 2025 - three) and three gold customers (June 30, 2025 - two).



    Notes to Financial Statements | Page 8
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)



Six months ended June 30, 2025
Caraíba
(Brazil)
Tucumã (Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
151,674 
$
95,888 
$
41,036 
$
— 
$
288,598 
Cost of production
(82,609)
(17,200)
(14,986)
— 
(114,795)
Depreciation and depletion
(33,989)
(75)
(9,068)
— 
(43,132)
Sales expense
(3,127)
(4,230)
(506)
— 
(7,863)
Cost of sales
(119,725)
(21,505)
(24,560)
— 
(165,790)
Gross profit
31,949 
74,383 
16,476 
— 
122,808 
Expenses
General and administrative
(9,421)
(4,534)
(3,117)
(5,863)
(22,935)
Share-based compensation
— 
— 
— 
(8,929)
(8,929)
Operating income (loss)
$
22,528 
$
69,849 
$
13,359 
$
(14,792)
$
90,944 
Capital expenditures(1)
82,394 
33,551 
10,580 
8,160 
134,685 
Assets
Current
$
78,070 
$
41,054 
$
48,648 
$
10,752 
178,524 
Non-current
962,043 
502,366 
105,682 
23,796 
1,593,887 
Total Assets
$
1,040,113 
$
543,420 
$
154,330 
$
34,548 
$
1,772,411 
Total Liabilities
$
169,578 
$
29,478 
$
139,960 
$
604,475 
943,491 

(1)    Capital expenditures include additions to mineral properties, plant and equipment and additions to exploration and evaluation asset, net of non-cash additions such as change in estimates to mine closure costs, capitalized depreciation expense, capitalized borrowing costs, and additions of right-of-use assets.
(2)    On July 1, 2025, the Company announced that Tucumã Operation achieved commercial production which is the point at which the mine is capable of operating in the manner intended by the Company's management.

    Notes to Financial Statements | Page 9
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)


4.    Inventories

June 30, 2026
December 31, 2025
Supplies and consumables
$
73,470 
$
54,504 
Stockpiles
35,326 
33,925 
Work in progress
4,934 
5,197 
Finished goods
16,265 
13,485 
$
129,995 
$
107,111 

5.    Other Current Assets

June 30, 2026
December 31, 2025
Advances to suppliers
$
3,401 
$
3,643 
Prepaid expenses and other
7,657 
6,250 
Derivatives (Note 19)
20,267 
4,701 
Value added taxes recoverable
6,545 
8,004 
$
37,870 
$
22,598 

    Notes to Financial Statements | Page 10
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

6.    Mineral Properties, Plant and Equipment
Buildings
Mining Equipment
Mineral
Properties(1)
Projects in
Progress
Equipment & Other Assets
Deposit on Projects
Mine Closure Costs
Right-of-Use Assets
Total
Cost:
Balance, December 31, 2025
94,382 
496,976 
1,012,282 
338,705 
34,956 
2,773 
19,071 
76,505 
2,075,650 
Additions
505 
11,236 
62,650 
53,623 
318 
14,016 
— 
3,363 
145,711 
Capitalized borrowing costs
— 
— 
— 
10,017 
— 
— 
— 
— 
10,017 
Disposals
— 
(2,242)
— 
— 
(5)
(6)
— 
(1,311)
(3,564)
Transfers
8,182 
7,452 
33,585 
(45,422)
187 
(3,070)
— 
(914)
— 
Foreign exchange
5,933 
31,378 
62,789 
16,864 
2,102 
126 
1,206 
4,745 
125,143 
Balance, June 30, 2026
$
109,002 
$
544,800 
$
1,171,306 
$
373,787 
$
37,558 
$
13,839 
$
20,277 
$
82,388 
$
2,352,957 
Accumulated depreciation:
Balance, December 31, 2025
(13,112)
(121,910)
(293,864)
— 
(12,579)
— 
(7,461)
(52,670)
(501,596)
Depreciation expense
(4,063)
(26,889)
(33,534)
— 
(1,432)
— 
(606)
(9,649)
(76,173)
Disposals
— 
1,280 
— 
— 
1 
— 
— 
941 
2,222 
Transfers
— 
(801)
— 
— 
— 
— 
— 
801 
— 
Foreign exchange
(811)
(7,593)
(18,669)
— 
(714)
— 
(469)
(3,241)
(31,497)
Balance, June 30, 2026
$
(17,986)
$
(155,913)
$
(346,067)
$
— 
$
(14,724)
$
— 
$
(8,536)
$
(63,818)
$
(607,044)
Net book value, December 31, 2025
$
81,270 
$
375,066 
$
718,418 
$
338,705 
$
22,377 
$
2,773 
$
11,610 
$
23,835 
$
1,574,054 
Net book value, June 30, 2026
$
91,016 
$
388,887 
$
825,239 
$
373,787 
$
22,834 
$
13,839 
$
11,741 
$
18,570 
$
1,745,913 

(1) Mineral properties as at June 30, 2026 include $76.7 million (December 31, 2025 - $64.7 million) of costs on expansion of near-mine resource potential which are not currently being depreciated.



     Notes to Financial Statements | Page 11
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

7.    Exploration and Evaluation Assets

As at June 30, 2026, the Company had $48.3 million (December 31, 2025 - $33.9 million) in exploration and evaluation assets, which include several property option agreements.

In July 2024, the Company signed a definitive earn-in agreement (the "Agreement") with Salobo Metais S.A, a subsidiary of Vale Base Metals ("VBM"), for the Furnas Copper-Gold Project ("Furnas Project") located in the Carajás Mineral Province in Pará State, Brazil. The Agreement contemplates the Company earning a 60% interest in the Project upon completion of three phases of work:

•Phase 1: Ero to conduct a minimum of 28,000 meters of exploration drilling (completed) and produce a scoping study within 18 months of signing the Agreement (completed)
•Phase 2: Ero to conduct an additional minimum of 17,000 meters of exploration drilling (completed) and produce a pre-feasibility study within 18 months of completing Phase 1
•Phase 3: Ero to conduct an additional minimum of 45,000 meters of exploration drilling, unless otherwise mutually agreed, and produce a definitive feasibility study ("DFS") within 24 months of completing Phase 2

Following the completion of a DFS, subject to customary technical review periods, and with Ero positive investment approval, the parties will enter into a joint venture agreement whereby VBM will transfer 60% of the equity interest in the Furnas Project to Ero, and Ero will grant VBM a "free carry" on certain capital expenditures related to development of the Furnas Project.

Prior to a positive Ero investment decision and the formation of a joint venture, VBM will retain 100% ownership of the Furnas Project with Ero solely responsible for funding the phased exploration and engineering work programs as well as ongoing payments to maintain the property in good standing.

As at June 30, 2026, exploration and evaluation assets include $36.6 million (December 31, 2025 - $24.1 million) in expenditures associated with the Furnas Project.


8.     Deposits and Other Non-current Assets

June 30, 2026
December 31, 2025
Value added taxes recoverable
$
22,107 
$
21,015 
Note receivable (Note 19)
13,072 
12,998 
Deposits and others
279 
2,683 
$
35,458 
$
36,696 











    Notes to Financial Statements | Page 12
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

9.    Accounts Payable and Accrued Liabilities

June 30, 2026
December 31, 2025
Trade suppliers
$
114,669 
$
92,283 
Payroll and labour related liabilities
24,428 
25,688 
Value added tax, royalty and other taxes payable
12,893 
10,692 
Cash-settled equity awards (Note 13(b) and (d))
9,634 
20,615 
Provision for rehabilitation and closure costs
2,462 
3,768 
Other accrued liabilities
1,063 
1,078 
$
165,149 
$
154,124 
.

10.    Loans and Borrowings

Carrying value,
including accrued interest
Description
Currency
Security
Maturity
(Months)
Coupon rate
Principal to be repaid
June 30,
2026
December 31,
2025
Senior Notes
USD
Unsecured
43
6.50%
$
400,000 
$
405,590 
$
405,092 
Senior Revolving Credit Facility
USD
Secured
30
SOFR +
2.00% to 4.25%; or Base Rate + 1.00% to 3.25%
120,000 
119,080 
154,706 
Copper Prepayment Facility
USD
Secured
6
8.66%
18,254 
19,955 
39,087 
Equipment finance loans
USD
Secured
7 - 36
6.90% - 8.35%
7,099 
7,146 
7,319 
Equipment finance loans
EUR
Secured
30 - 35
7.70%
2,340 
2,345 
168 
Equipment finance loans
BRL
Unsecured
0
16.63%
— 
— 
84 
Bank loan
BRL
Unsecured
5
CDI + 0.50%
316 
318 
658 
Total
$
548,009 
$
554,434 
$
607,114 
Current portion
$
34,578 
$
55,711 
Non-current portion
$
519,856 
$
551,403 













    Notes to Financial Statements | Page 13
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

The movements in loans and borrowings are comprised of the following:
Six months ended June 30, 2026
Year ended
December 31,
2025
Senior Notes
Senior Revolving Credit Facility
Copper Prepayment Facility
Other
Consolidated
Consolidated
Balance, beginning of period
$
405,092 
$
154,706 
$
39,087 
$
8,229 
$
607,114 
$
602,189 
Proceeds from loans and borrowings
— 
— 
6,064 
6,064 
57,404 
Principal payments
— 
(35,000)
(18,254)
(4,408)
(57,662)
(54,740)
Interest payments
(13,000)
(5,619)
(2,212)
(354)
(21,185)
(42,736)
Interest costs, including interest capitalized
13,498 
4,993 
1,334 
293 
20,118 
44,487 
Foreign exchange
— 
— 
— 
(15)
(15)
510 
Balance, end of period
$
405,590 
$
119,080 
$
19,955 
$
9,809 
$
554,434 
$
607,114 

(a)     Senior Notes

In February 2022, the Company issued $400 million aggregate principal amount of senior unsecured notes (the “Senior Notes”). The Company received net proceeds of $392.0 million after transaction costs of $8.0 million. The Senior Notes mature on February 15, 2030 and bear annual interest at 6.5%, payable semi-annually in February and August of each year.

MCSA and Ero Brasil have provided a guarantee of the Senior Notes on a senior unsecured basis. The Senior Notes are direct, senior obligations of the Company and MCSA, and are not secured by any mortgage, pledge or charge.

The Company has the option to redeem, in whole or in part, the Senior Notes at a price ranging from 103.25% to 100% of the principal amount together with accrued and unpaid interest, if any, to the date of redemption, with the rate decreasing based on the length of time the Senior Notes are outstanding.

Upon the occurrence of specific kinds of changes of control triggering events, each holder of the Senior Notes will have the right to cause the Company to repurchase some or all of its Senior Notes at 101% of their principal amount, plus accrued and unpaid interest to, but not including, the repurchase date.

The Senior Notes are recognized as financial liabilities, net of unamortized transaction costs, and measured at amortized cost using an effective interest rate of 6.7%.


(b)    Senior Revolving Credit Facility

The Company has a senior revolving credit facility (the "Senior Revolving Credit Facility") which has a borrowing limit of $200 million and matures in December 2028. The applicable interest margin is based on sliding scales of SOFR plus 2.00% to 4.25%, or lender's Base Rate plus 1.00% to 3.25%, and commitment fee ranges from 0.45% to 0.96%, based on the Company's net leverage ratio, with lower leverage ratios resulting in lower pricing.

As at June 30, 2026, the Senior Revolving Credit Facility bears a weighted average interest rate of 6.56% on its drawn balance and a commitment fee of 0.56% on its undrawn balance.


    Notes to Financial Statements | Page 14
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

The Senior Revolving Credit Facility is secured by the shares of MCSA, NX Gold, Ero Gold, Ero Brasil, Ero Brasil Participações II Ltda., and Ero Holdings Corp. The Company is required to comply with certain financial covenants, which are required to be tested at each quarter end. These covenants include (a) a net leverage ratio based on net indebtedness to rolling four quarters adjusted earnings before interest, taxes, depreciation and amortization ("Rolling EBITDA"); (b) a net leverage ratio based on net senior indebtedness to Rolling EBITDA; and (c) an interest coverage ratio based on Rolling EBITDA. The Senior Revolving Credit Facility provides for negative covenants customary for this type of facility and permits additional equipment debt and finance leases of up to $50.0 million. As at June 30, 2026, the Company is in compliance with these financial covenants.

Subsequent to June 30, 2026, the Company repaid an additional $25.0 million of the Senior Revolving Credit Facility.

(c)    Copper Prepayment Facility

In May 2024, the Company entered into a non-priced copper prepayment facility with a bank syndicate. Under this facility, the Company received net proceeds of $49.6 million, representing gross proceeds of $50.0 million less transaction costs of $0.4 million. The Company had the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million until March 31, 2025.

In exchange, the Company is obligated to repay the $50.0 million facility over 27 equal monthly installments, beginning in October 2024, through the delivery of a minimum of 272 tonnes of copper each month. The copper to be delivered by the Company will be in the form of LME Copper Warrants. Each monthly delivery's value will be determined based on prevailing market copper prices at the time of delivery. Should the value of any delivery exceed the amount of the monthly installment payment of $2.1 million, the excess value will be repaid to the Company.

In March 2025, the Company exercised its option to increase the size of the non-priced copper prepayment facility by an additional $25.0 million. The Company is obligated to repay the $25.0 million additional facility over 21 equal monthly installments, beginning in April 2025, through the delivery of a minimum of 161 tonnes of copper each month. The copper to be delivered by the Company will be in the form of LME Copper Warrants. Each monthly delivery's value will be determined based on prevailing market copper prices at the time of delivery. Should the value of any delivery exceed the amount of the monthly installment payment of $1.3 million, the excess value will be repaid to the Company.

As the contractual obligation of the facility will be settled in the form of financial assets, the facility is accounted for as a financial liability measured at amortized cost using the effective interest rate method. Transaction costs are included in the initial measurement of the liability and amortized over the term of the facility.

The facility is secured by the shares of MCSA, NX Gold, Ero Gold, Ero Brasil, Ero Brasil Participações II Ltda., and Ero Holdings Corp.



11. Deferred Revenue

The Company entered into a precious metals purchase agreement (the “Xavantina Gold Stream”) with RGLD Gold AG ("Royal Gold"), a wholly-owned subsidiary of Royal Gold, Inc., in relation to gold production from the Xavantina Operations. The Company received upfront cash consideration of $150.0 million for the purchase of 25% of an equivalent amount of gold to be produced from the Xavantina mine until 160,000 ounces of gold have been delivered and thereafter decreasing to 10% of gold produced over the remaining life of the mine in exchange for cash payments equal to 40% of the prevailing spot gold price.


    Notes to Financial Statements | Page 15
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

The movements in the Xavantina Gold Stream deferred revenue during the six months ended June 30, 2026 and the year ended December 31, 2025 are comprised of the following:

June 30, 2026
December 31,
2025
Gold ounces delivered in the period(1)
6,673 
9,692 
Balance, beginning of period
$
105,750 
$
62,989 
Advances
— 
50,000 
Accretion expense
3,858 
6,764 
Amortization of deferred revenue
(8,882)
(14,003)
Balance, end of period
$
100,726 
$
105,750 
Current portion
$
11,626 
$
12,800 
Non-current portion
89,100 
92,950 
(1)        During the six months ended June 30, 2026, the Company delivered 6,673 payable ounces of gold (year ended December 31, 2025 - 9,692 ounces) to Royal Gold for average consideration of $1,841 per ounce (December 31, 2025 - $1,213 per ounce). At June 30, 2026, a cumulative 61,542 ounces (December 31, 2025 - 54,869 ounces) of gold have been delivered under the Xavantina Gold Stream.

As part of the Xavantina Gold Stream, the Company pledged its equity interest in Ero Gold and NX Gold to Royal Gold as collateral and provided unsecured limited recourse guarantees from Ero and NX Gold.


12. Other Non-current Liabilities

June 30, 2026
December 31, 2025
Cash-settled equity awards (Note 13(b))
$
— 
$
5,470 
Withholding, value added tax, and other taxes payable
25,759 
22,286 
Provision
2,281 
1,856 
Derivatives (Note 19)
977 
— 
Dividends payable to non-controlling interest
5,847 
5,503 
Other liabilities
4,210 
4,173 
$
39,074 
$
39,288 


    Notes to Financial Statements | Page 16
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

13.     Share Capital

As at June 30, 2026, the Company’s authorized share capital consists of an unlimited number of common
shares without par value.

(a)     Options

A continuity of the issued and outstanding options is as follows:

Six Months Ended June 30,
2026
2025
Number of
Stock Options
Weighted Average Exercise Price (CAD)
Number of
Stock Options
Weighted Average Exercise Price (CAD)
Outstanding stock options, beginning of period
1,340,563 
$
22.41 
1,734,607 
$
19.07 
Issued
— 
— 
11,017 
17.94 
Exercised
(108,283)
18.65 
(38,186)
17.79 
Forfeited
(10,763)
19.80 
(80,531)
19.89 
Outstanding stock options, end of period
1,221,517 
$
22.77 
1,626,907 
$
19.05 

The weighted average share price on the date of exercise for options exercised during the six months ended June 30, 2026 was CAD$42.96 (six months ended June 30, 2025 - CAD$19.79).


As at June 30, 2026, the following stock options were outstanding:

Weighted Average Exercise Prices
Number of
Stock Options
Vested and Exercisable Number of Stock Options
Weighted Average Remaining Life in Years
$10.01 to $20.00 CAD
559,891 
420,525 
1.93
$20.01 to $30.00 CAD
383,882 
116,136 
3.42
$30.01 to $34.58 CAD
277,744 
19,464 
4.45
$22.77 CAD ($16.02 USD)
1,221,517 
556,125 
2.97

(b)     Performance Share Units

Pursuant to the Share Unit Plan, the Compensation Committee may grant performance share units ("PSUs") to employees, consultants, directors and officers ("Eligible Persons") of the Company or its subsidiaries. These PSUs will vest three years from the date of grant and the number of PSUs that will vest may range from 0% to 200% of the number granted, subject to the satisfaction of certain market and non-market performance conditions. Each vested PSU entitles the holder thereof to receive on or about the applicable date of vesting of such share unit (i) one common share; (ii) a cash amount equal to the fair market value of one common share as at the applicable date of vesting; or (iii) a combination of (i) and (ii), as determined by the Compensation

    Notes to Financial Statements | Page 17
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)
Committee in its sole discretion. Based on the Company's history of settling PSUs using a combination of cash and common shares, PSUs were classified as liabilities.

For PSUs with non-market performance conditions, the fair value of the share units granted was initially recognized at the fair value using the share price at the date of grant, and subsequently remeasured at fair value on each balance sheet date. For PSUs with market performance conditions, the fair value was determined using a Geometric Brownian Motion model.

On June 29, 2026, upon shareholder approval of the Amended and Restated Share Unit Plan at the Company's annual general and special meeting, the Compensation Committee's option to settle vested units using cash was eliminated. As a result, each vested unit is redeemable solely in common shares of the Company. Consequently, PSUs were reclassified from cash-settled to equity-settled instruments. Accordingly, the Company derecognized $19.6 million of PSU liabilities, recognized $16.8 million in contributed surplus, representing the fair value of issued PSUs at the modification date, and recorded a reduction in share-based compensation expense of $2.8 million. Post-modification, the fair value of PSUs will not be remeasured.

The continuity of PSUs issued and outstanding is as follows:

Six Months Ended June 30,
2026
2025
Outstanding balance, beginning of period
879,703 
1,014,505 
Issued
— 
9,022 
Forfeited
(16,322)
(38,218)
Outstanding balance, end of period
863,381 
985,309 


(c) Restricted Share Units

Pursuant to the Share Unit Plan, the Compensation Committee may grant restricted share units ("RSUs") to Eligible Persons of the Company or its subsidiaries. The fair value of RSUs is determined on the date of grant using the market price of the Company’s shares. Each RSU entitles the holder thereof to receive one common share, its equivalent cash value, or a combination of both, on the redemption date at the discretion of the Compensation Committee. Based on the Company's history of settling RSUs with common shares, RSUs were classified as equity-settled instruments.

On June 29, 2026, upon shareholder approval of the Amended and Restated Share Unit Plan at the Company's annual general and special meeting, the Compensation Committee's option to settle vested units using cash was eliminated. As a result, each vested unit is redeemable solely in common shares of the Company. There is no change to the accounting treatment of RSUs.












    Notes to Financial Statements | Page 18
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)
The continuity of RSUs issued and outstanding is as follows:
Six months ended June 30,
2026
2025
Outstanding balance, beginning of period
270,886 
328,180
Issued
— 
4,510 
Settled
(2,707)
(9,537)
Forfeited
(4,028)
(12,259)
Outstanding balance, end of period
264,151 
310,894 

(d) Deferred Share Units

The Deferred Share Unit ("DSU") plan was established by the Board as a component of compensation for the Company's independent directors. Pursuant to the DSU Plan, DSUs may only be settled by way of cash payment. A participant is not entitled to payment in respect of the DSUs until his or her death, retirement or removal from the Board.  The settlement amount of each DSU is based on the fair market value of a common share on the DSU redemption date multiplied by the number of DSUs being redeemed.

The continuity of DSUs issued and outstanding is as follows:

Six months ended June 30,
2026
2025
Outstanding balance, beginning of period
356,799 
325,111
Issued
5,348 
10,222 
Outstanding balance, end of period
362,147 
335,333 

At June 30, 2026, DSU liabilities had a fair value of $9.6 million (December 31, 2025 - $10.1 million) which has been recognized in accounts payable and accrued liabilities.


(e) Share-based compensation

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Stock options
$
566 
$
594 
$
1,155 
$
1,085 
Performance share units
(355)
5,191 
1,454 
5,723 
Restricted share units
581 
552 
1,200 
1,070 
Deferred share units
271 
1,419 
(106)
1,051 
Share-based compensation(1)
$
1,063 
$
7,756 
$
3,703 
$
8,929 

(1)    For the three and six months ended June 30, 2026, the Company recorded $1.2 million and $2.4 million (three and six months ended June 30, 2025 - $1.1 million and $2.2 million) of share-based compensation in contributed surplus, and the remaining share-based compensation was recorded in liabilities.

    Notes to Financial Statements | Page 19
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

(f)     Net Income per Share
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Weighted average number of common shares outstanding
104,282,548 
103,582,082 
104,272,398 
103,573,416 
Dilutive effects of:
Stock options
466,866 
12,585 
480,156 
17,702 
Share units
1,127,532 
310,894 
1,127,532 
310,894 
Weighted average number of diluted common shares outstanding(1)
105,876,946 
103,905,561 
105,880,086 
103,902,012 
Net income attributable to owners of the Company
$
89,543 
$
70,548 
$
198,314 
$
150,775 
Basic net income per share
$
0.86 
$
0.68 
$
1.90 
$
1.46 
Diluted net income per share
$
0.85 
$
0.68 
$
1.87 
$
1.45 

(1)    Weighted average number of diluted common shares outstanding for the three and six months ended June 30, 2026 excluded 258,280 and 258,280 (three and six months ended June 30, 2025 - 1,343,914 and 966,159) stock options.

14. Revenue

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Copper
Concentrate sales
220,023 
141,969 
$
441,387 
$
250,608 
Adjustments on provisional sales(1)
(601)
(3,909)
(1,261)
(3,046)
219,422 
138,060 
440,126 
247,562 
Gold
Dore Sales
25,817 
22,043 
48,191 
35,383 
Concentrate sales
35,617 
— 
50,355 
— 
Adjustments on provisional sales(1)
(96)
— 
(71)
— 
Amortization of deferred revenue(2)
3,553 
3,407 
8,882 
5,653 
$
64,891 
$
25,450 
$
107,357 
$
41,036 
$
284,313 
$
163,510 
$
547,483 
$
288,598 

(1)    Adjustments on provisional sales include pricing adjustments on the Company's concentrate sales, which are provisionally priced to the Company's international customers and are settled with a final sales price between zero to four months (June 30, 2025 - zero to six month) after shipment takes place and, therefore, are exposed to commodity price changes.

(2)    During the three and six months ended June 30, 2026, the Company delivered 2,736 and 6,673 ounces of gold, respectively (three and six months ended June 30, 2025 - 1,882 and 3,249 ounces of gold), under a precious metals purchase agreement with Royal Gold (note 11) for average cash consideration of $1,795 and $1,841 per ounce (three and six months ended June 30, 2025 - $654 and $619).

    Notes to Financial Statements | Page 20
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

15.     Cost of Sales

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Materials
$
24,442 
$
13,118 
$
44,397 
$
24,808 
Salaries and benefits
28,133 
20,026 
55,609 
38,929 
Contracted services
35,343 
15,331 
64,149 
23,547 
Maintenance costs
17,863 
13,268 
34,907 
22,791 
Utilities
7,527 
4,109 
13,685 
8,255 
Other costs
1,207 
484 
2,243 
888 
Change in inventory (excluding depreciation and depletion)
(7,167)
993 
(1,675)
(4,423)
Cost of production
107,348 
67,329 
213,315 
114,795 
Sales expense
17,394 
4,009 
30,716 
7,863 
Depreciation and depletion
39,304 
23,685 
75,056 
44,059 
Change in inventory (depreciation and depletion)
(1,152)
1,201 
1,063 
(927)
$
162,894 
$
96,224 
$
320,150 
$
165,790 



16.     General and Administrative Expenses

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Accounting and legal
$
494 
$
479 
$
988 
$
857 
Amortization and depreciation
362 
329 
714 
703 
Office and administration
2,189 
2,378 
4,429 
4,650 
Salaries and consulting fees
7,166 
6,673 
13,141 
13,210 
Incentive payments
1,321 
978 
2,662 
2,076 
Other
1,003 
727 
1,659 
1,439 
$
12,535 
$
11,564 
$
23,593 
$
22,935 


    Notes to Financial Statements | Page 21
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

17.    Finance Expense

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Interest on loans and borrowings(2)
$
4,726 
$
— 
$
10,101 
$
— 
Accretion of deferred revenue
1,916 
2,146 
$
3,858 
$
2,725 
Accretion of provision for rehabilitation and closure costs
798 
866 
1,580 
1,707 
Interest on lease liabilities
624 
631 
1,296 
1,194 
Other finance expenses(1)
4,614 
2,333 
6,907 
5,073 
$
12,678 
$
5,976 
$
23,742 
$
10,699 

(1)    Other finance expenses during the three and six months ended June 30, 2026 included $1.8 million and $1.8 million, respectively (three and six months ended June 30, 2025 - $0.2 million and $1.4 million) of credit loss on certain accounts receivable.
(2)    During the three and six months ended June 30, 2026, the Company capitalized $5.1 million and $10.0 million, respectively (three and six months ended June 30, 2025 -$11.4 million and $22.4 million) of borrowing costs to projects in progress.


18.    Foreign Exchange Gain

The following foreign exchange gains (losses) arise as a result of balances and transactions in the Company’s Brazilian subsidiaries that are denominated in currencies other than the Brazilian Reais (BRL$), which is their functional currency.
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Foreign exchange gain (loss) on USD denominated debt in Brazil
$
5,722 
$
33,007 
$
40,370 
$
78,110 
Realized foreign exchange gain (loss) on derivative contracts (note 19)
12,670 
217 
19,930 
(1,999)
Unrealized foreign exchange gain (loss) on derivative contracts (note 19)
(5,384)
6,633 
11,146 
23,439 
Foreign exchange (loss) gain on other financial assets and liabilities
(2,163)
(1,217)
(6,946)
(2,510)
$
10,845 
$
38,640 
$
64,500 
$
97,040 



19. Financial Instruments

Fair value

Fair values of financial assets and liabilities are determined based on available market information and valuation methodologies appropriate to each situation.

    Notes to Financial Statements | Page 22
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

As at June 30, 2026, derivatives were measured at fair value based on Level 2 inputs.

The carrying values of cash and cash equivalents, accounts receivable, deposits, and accounts payable and accrued liabilities approximate their fair values due to their short terms to maturity or the discount rate used approximates to the contractual interest rate. At June 30, 2026, the carrying value of loans and borrowings, including accrued interest, was $554.4 million while the fair value is approximately $547.4 million. At June 30, 2026, the carrying value of notes receivable, including accrued interest, was $13.2 million which approximates its fair value.

Market risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity prices. The purpose of market risk management is to manage and control exposures to market risks, within acceptable parameters, while optimizing return.

The Company may use derivatives, including options, forwards and swap contracts, to manage market risks.

The Company's outstanding derivative instruments as of June 30, 2026 are as follows:

Contract Description
Notional Amount
Denomination
Weighted average floor
Weighted average cap / forward price
Maturities
Foreign exchange collar (i)
$450.0 million
USD/BRL
5.40
6.34
July 2026 - December 2027

(i) Foreign exchange currency risk

The Company’s subsidiaries in Brazil are exposed to exchange risks primarily related to the US dollar. In order to minimize currency mismatches, the Company monitors its cash flow projections considering future sales expectations indexed to US dollar variation in relation to the cash requirement to settle the existing financings.

The Company's exposure to foreign exchange currency risk at June 30, 2026 relates to $29.4 million (December 31, 2025 – $46.6 million) in loans and borrowings of MCSA denominated in US dollars and Euros. In addition, the Company is also exposed to foreign exchange currency risk at June 30, 2026 on $597.1 million of intercompany loan balances (December 31, 2025 - $604.6 million) which have contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at June 30, 2026 by 10% and 20%, would have decreased (increased) pre-tax net income by $62.4 million and $124.8 million, respectively. This analysis is based on the foreign currency exchange variation rate that the Company considered to be reasonably possible at the end of the period and excluding the impact of the derivatives below. The analysis assumes that all other variables, especially interest rates, are held constant.

The Company may use certain foreign exchange derivatives, including collars and forward contracts, to manage its foreign exchange risks. At June 30, 2026, the aggregate fair value of the Company's foreign exchange derivatives was a net asset of $19.3 million (December 31, 2025 - net asset of $4.4 million). The fair values of foreign exchange contracts were determined based on option pricing models, forward foreign exchange rates, and information provided by the counter party.

The change in fair value of foreign exchange derivatives was a loss of $5.4 million and gain of $11.1 million for the three and six months ended June 30, 2026, respectively (a gain of $6.6 million and of $23.4 million for the three and six months ended June 30, 2025, respectively), and have been recognized in foreign exchange gain.


    Notes to Financial Statements | Page 23
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)
In addition, during the three and six months ended June 30, 2026, the Company recognized a realized gain of $12.7 million and $19.9 million, respectively (realized gain of $0.2 million and loss of $2.0 million for the three and six months ended June 30, 2025 respectively), related to the settlement of foreign currency forward collar contracts.

(ii) Price risk

The Company may use derivatives, including forward contracts, collars and swap contracts, to manage commodity price risks.

As of June 30, 2026, all the gold collar contracts were matured (December 31, 2025 - liability of $6.8 million).

During the three and six months ended June 30, 2026, the Company recognized an unrealized gain of $6.0 million and $5.3 million (unrealized gain of $0.6 million and loss of $1.5 million for the three and six months ended June 30, 2025), respectively, in relation to its commodity derivatives in other income or loss.

During the three and six months ended June 30, 2026, the Company recognized a realized loss of $3.0 million and $10.9 million (nil for three and six months ended June 30, 2025), respectively, in relation to its commodity derivatives in other income or loss.

At June 30, 2026, the Company had provisionally priced sales that are exposed to commodity price changes (note 14). Based on the Company’s net exposure at June 30, 2026, a 10% change in the price of copper and gold would have changed pre-tax net income (loss) by $9.9 million.


    Notes to Financial Statements | Page 24
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

20. Supplemental Cash Flow Information

Three months ended June 30,
Six months ended June 30,
Net change in non-cash working capital items:
2026
2025
2026
2025
Accounts receivable
$
(6,612)
$
50,911 
$
(13,296)
$
5,849 
Inventories
(20,223)
(6,022)
(17,335)
(14,030)
Other assets
(3,431)
(1,864)
(7,642)
(3,538)
Accounts payable and accrued liabilities
23,580 
(32,534)
7,456 
(20,556)
$
(6,686)
$
10,491 
$
(30,817)
$
(32,275)
Non-cash investing and financing activities:
Additions to property, plant and equipment by leases
1,764 
6,781 
$
3,363 
$
13,956 
Non-cash increase in accounts payable in relation to additions of property, plant and equipment and exploration and evaluation assets
4,043 
5,805 
7,523 
3,867 
Non-cash operating activities:
Settlement of income taxes payable via VAT recoverable
(7,511)
(5,034)
$
(11,587)
$
(7,082)



21.    Commitment

As at June 30, 2026, the Company has capital commitments, which are net of advances to suppliers, of $84.8 million through contracts and purchase orders which are expected to be incurred over a six-year period. In the normal course of operations, the Company may also enter into long-term contracts which can be cancelled with certain agreed customary notice periods without material penalties.



    Notes to Financial Statements | Page 25

image.jpg
 TSX: ERO
NYSE: ERO



August 5, 2026
Ero Copper Reports Second Quarter 2026 Operating and Financial Results
(all amounts in US dollars, unless otherwise noted)

Vancouver, British Columbia – 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.
1
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
•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.
2
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
◦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.
3
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
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.
4
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
OPERATING HIGHLIGHTS
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Copper (Caraíba Operations)
Ore Mined (tonnes)
1,098,614 
985,577 
792,764 
2,084,191 
1,489,003 
Ore Processed (tonnes)
1,074,182 
1,072,209 
791,946 
2,146,391 
1,484,847 
Grade (% Cu)
0.87 
0.93 
1.27 
0.90 
1.23 
Recovery (%)
89.0 
88.3 
91.1 
88.6 
90.7 
Cu Production (tonnes)
8,351 
8,826 
9,162 
17,177 
16,519 
Cu Production (000 lbs)
18,411 
19,459 
20,199 
37,870 
36,418 
Cu Sold in Concentrate (tonnes)
7,926 
9,205 
9,387 
17,131 
16,336 
Cu Sold in Concentrate (000 lbs)
17,474 
20,294 
20,697 
37,767 
36,015 
Cu C1 cash cost(1)
$2.76 
$
2.79 
$
2.07 
$2.77 
$
2.13 
Copper (Tucumã Operation)
Ore Mined (tonnes)
590,600 
456,684 
798,811 
1,047,284 
1,127,102 
Ore Processed (tonnes)
715,415 
563,717 
418,699 
1,279,132 
713,013 
Grade (% Cu)
1.44 
1.66 
1.74 
1.53 
1.92 
Recovery (%)
88.2 
88.3 
85.4 
88.2 
87.2 
Cu Production (tonnes)
8,964 
8,461 
6,351 
17,425 
11,418 
Cu Production (000 lbs)
19,763 
18,652 
14,002 
38,415 
25,173 
Cu Sold in Concentrate (tonnes)
8,581 
8,751 
5,968 
17,332 
11,136 
Cu Sold in Concentrate (000 lbs)
18,918 
19,292 
13,158 
38,210 
24,551 
Cu C1 cash cost(1)(2)
$2.10 
$
1.97 
$
— 
$2.04 
$
— 
Gold (Xavantina Operations)
Ore Mined (tonnes)
49,484 
32,820 
37,829 
82,304 
71,057 
Ore Processed (tonnes)
48,564 
37,128 
37,829 
85,692 
71,057 
Grade (g / tonne)
6.20 
5.66 
7.11 
5.97 
6.99 
Recovery (%)
89.8 
81.3 
88.7 
86.3 
89.6 
Au Production (oz)
8,693 
5,495 
7,743 
14,188 
14,381 
Historic Au Concentrate Recovered (oz)
11,860 
2,112 
— 
13,972 
— 
Au Sold in Doré (oz)
6,663 
6,019 
8,276 
12,682 
14,110 
Au Sold in Concentrate (oz)(3)
10,353 
4,311 
— 
14,664 
— 
Au Production C1 cash cost(1)
$1,586 
$
2,120 
$
1,115 
$1,793 
$
1,108 
Au Production AISC(1)
$2,881 
$
4,441 
$
2,234 
$3,485 
$
2,231 
Historic Au Concentrate C1 cash cost(1)
$633 
$
915 
— 
$676 
— 
Historic Au Concentrate AISC(1)
$715 
$
1,032 
— 
$763 
— 
(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.
5
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
FINANCIAL HIGHLIGHTS
($ in millions, except per share amounts)

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Revenues
$284.3 
$
263.2 
$
163.5 
$547.5 
$
288.6 
Gross profit
121.4 
105.9 
67.3 
227.3 
122.8 
EBITDA(1)
159.8 
175.5 
114.2 
335.3 
232.0 
Adjusted EBITDA(1)
144.0 
125.2 
82.7 
269.2 
145.9 
Cash flow from operations
137.9 
92.8 
90.3 
230.6 
155.7 
Net income
90.7 
109.3 
71.0 
200.1 
151.7 
Net income attributable to owners of the Company
89.5 
108.8 
70.5 
198.3 
150.8 
Per share (basic)
0.86 
1.04 
0.68 
1.90 
1.46 
Per share (diluted)
0.85 
1.04 
0.68 
1.87 
1.45 
Adjusted net income attributable to owners of the Company(1)
87.4 
72.4 
48.1 
159.8 
84.0 
Per share (basic)
0.84 
0.69 
0.46 
1.53 
0.81 
Per share (diluted)
0.83 
0.69 
0.46 
1.51 
0.81 
Cash, cash equivalents, and short-term investments
101.7 
91.2 
68.3 
101.7 
68.3 
Working capital (deficit)(1)
87.7 
66.2 
(33.5)
87.7 
(33.5)
Available liquidity(1)
181.7 
146.2 
113.3 
181.7 
113.3 
Net debt(1)
452.7 
490.7 
559.1 
452.7 
559.1 
(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.

6
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
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
7
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
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
Previous Guidance
Current Guidance
Consolidated Copper Production (tonnes)
Caraíba Operations
35,000 - 40,00035,000 - 40,000
Tucumã Operation
32,500 - 37,50032,500 - 37,500
Total Copper
67,500 - 77,50067,500 - 77,500
Consolidated Copper C1 Cash Cost ($/lb)(1)
Caraíba Operations
$2.30 - $2.50$2.30 - $2.50
Tucumã Operation
$1.95 - $2.15$1.95 - $2.15
Consolidated Copper Operations
$2.15 - $2.35$2.15 - $2.35
The Xavantina Operations
Au Production (ounces)
40,000 - 50,00040,000 - 50,000
Gold Production C1 Cash Cost(1) ($/oz)
$1,000 - $1,250$1,100 - $1,350
Gold Production AISC(1) ($/oz)
$2,000 - $2,500$2,200 - $2,700
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.
Previous Guidance
Current Guidance
Caraíba Operations
$170 - $185$170 - $185
Tucumã Operation
$35 - $45$35 - $45
Xavantina Operations
$40 - $50$50 - $60
Furnas Copper-Gold Project, Other Exploration & Corporate
$30 - $40$30 - $40
Total
$275 - $320$285 - $330
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.
8
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
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.


Date:
Thursday, August 6, 2026
Time:11:30 am Eastern time (8:30 am Pacific time)
Dial in:
Canada/USA Toll Free: 1-833-752-3380
International: +1-647-846-2821

Please dial in 5-10 minutes prior to the start of the call or pre-register using this link to bypass the live operator queue.

(https://dpregister.com/sreg/10209668/1042703ee00)
Webcast:To access the webcast, click here.

(https://event.choruscall.com/mediaframe/webcast.html?webcastid=OA06Kzih)
Replay:
Canada/USA: 1-855-669-9658, International: +1-412-317-0088
For country-specific dial-in numbers, click here.

(https://services.choruscall.com/ccforms/replay.html)
Replay Passcode:5157205

9
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
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.

10
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
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

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Cost of production
$59,098 
$
62,352 
$
46,890 
$121,450 
$
82,609 
Add (less):
Transportation costs & other
2,895 
2,896 
1,792 
5,791 
3,114 
Treatment, refining, and other
(5,225)
2,164 
2,340 
(3,061)
4,750 
By-product credits
(8,045)
(10,077)
(6,205)
(18,122)
(10,904)
Incentive payments
(1,700)
(1,534)
(1,457)
(3,234)
(2,746)
Net change in inventory
3,647 
(1,483)
(1,611)
2,164 
1,048 
Foreign exchange and other
106 
(87)
16 
19 
(131)
C1 cash costs
$50,776 
$
54,231 
$
41,765 
$105,007 
$
77,740 
Mining
$42,510 
$
42,411 
$
31,442 
$84,921 
$
57,238 
Processing
9,986 
9,102 
6,549 
19,088 
12,901 
Indirect
8,655 
7,735 
5,847 
16,390 
10,641 
Production costs
61,151 
59,248 
43,838 
120,399 
80,780 
By-product credits
(8,045)
(10,077)
(6,205)
(18,122)
(10,904)
Treatment, refining and other
(2,330)
5,060 
4,132 
2,730 
7,864 
C1 cash costs
$50,776 
$
54,231 
$
41,765 
$105,007 
$
77,740 
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs per pound
Total copper produced (lbs, 000)
18,411 
19,459 
20,199 
37,870 
36,418 
Mining
$2.31 
$
2.18 
$
1.56 
$2.24 
$
1.57 
Processing
$0.54 
$
0.47 
$
0.32 
$0.50 
$
0.35 
Indirect
$0.47 
$
0.40 
$
0.29 
$0.43 
$
0.29 
By-product credits
$(0.44)
$
(0.52)
$
(0.31)
$(0.48)
$
(0.30)
Treatment, refining and other
$(0.12)
$
0.26 
$
0.21 
$0.08 
$
0.22 
Copper C1 cash costs
$2.76 
$
2.79 
$
2.07 
$2.77 
$
2.13 









11
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
The Tucumã Operation

Reconciliation:
2026 - Q2
2026 - Q1
2026 - YTD
Cost of production
$31,632 
$
29,738 
$61,370 
Add (less):
Transportation costs & other
9,393 
6,391 
15,784 
Treatment, refining, and other
378 
2,471 
2,849 
By-product credits
(425)
(701)
(1,126)
Incentive payments
(480)
(546)
(1,026)
Net change in inventory
1,021 
(556)
465 
Foreign exchange and other
4 
(4)
— 
C1 cash costs
$41,523 
$
36,793 
$78,316 
Mining
$8,963 
$
6,538 
$15,501 
Processing
18,566 
17,976 
36,542 
Indirect
4,648 
4,118 
8,766 
Production costs
32,177 
28,632 
60,809 
By-product credits
(425)
(701)
(1,126)
Treatment, refining and other
9,771 
8,862 
18,633 
C1 cash costs
$41,523 
$
36,793 
$78,316 
2026 - Q2
2026 - Q1
2026 - YTD
Costs per pound
Total copper produced (lbs, 000)
19,763 
18,652 
38,415 
Mining
$0.45 
$
0.35 
$0.40 
Processing
$0.94 
$
0.96 
$0.95 
Indirect
$0.24 
$
0.22 
$0.23 
By-product credits
$(0.02)
$
(0.04)
$(0.03)
Treatment, refining and other
$0.49 
$
0.48 
$0.49 
Copper C1 cash costs
$2.10 
$
1.97 
$2.04 


12
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
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.

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Cost of production
$16,618 
$
13,877 
$
8,761 
$30,495 
$
14,986 
less: Gold concentrate re-handling costs
(3,682)
(1,641)
— 
(5,323)
— 
Cost of mine production
$
12,936 
$
12,236 
$
8,761 
$
25,172 
$
14,986 
Add (less):
Incentive payments
(427)
(320)
(209)
(747)
(478)
Net change in inventory
357 
(807)
63 
(450)
1,402 
By-product credits
(284)
(189)
(159)
(473)
(270)
Smelting, refining and selling expenses
1,167 
769 
177 
1,936 
323 
Foreign exchange and other
40 
(38)
(2)
2 
(31)
Gold production C1 cash costs
$13,789 
$
11,651 
$
8,631 
$25,440 
$
15,932 
Site general and administrative
1,647 
1,409 
1,264 
3,056 
2,341 
Accretion of mine closure and rehabilitation provision
152 
145 
145 
297 
286 
Sustaining capital expenditure
5,867 
8,136 
4,435 
14,003 
8,344 
Sustaining lease payments
3,077 
2,623 
2,313 
5,700 
4,334 
Royalties and production taxes
516 
434 
511 
950 
849 
Gold production AISC
$25,048 
$
24,398 
$
17,299 
$49,446 
$
32,086 

13
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO


2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs
Mining
$6,894 
$
5,820 
$
4,552 
$12,714 
$
8,312 
Processing
3,414 
2,940 
2,472 
6,354 
4,678 
Indirect
2,598 
2,311 
1,589 
4,909 
2,889 
Production costs
12,906 
11,071 
8,613 
23,977 
15,879 
Treatment, refining and other
1,167 
769 
177 
1,936 
323 
By-product credits
(284)
(189)
(159)
(473)
(270)
Gold production C1 cash costs
$13,789 
$
11,651 
$
8,631 
$25,440 
$
15,932 
Site general and administrative
1,647 
1,409 
1,264 
3,056 
2,341 
Accretion of mine closure and rehabilitation provision
152 
145 
145 
297 
286 
Sustaining capital expenditure
5,867 
8,136 
4,435 
14,003 
8,344 
Sustaining lease payments
3,077 
2,623 
2,313 
5,700 
4,334 
Royalties and production taxes
516 
434 
511 
950 
849 
Gold production AISC
$25,048 
$
24,398 
$
17,299 
$49,446 
$
32,086 
Costs per ounce
Total gold produced (ounces)
8,693 
5,495 
7,743 
14,188 
14,381 
Mining
$793 
$
1,059 
$
588 
$896 
$
578 
Processing
$393 
$
535 
$
319 
$448 
$
325 
Indirect
$299 
$
420 
$
204 
$346 
$
201 
Treatment, refining and other
$134 
$
140 
$
24 
$136 
$
22 
By-product credits
$(33)
$
(34)
$
(20)
$(33)
$
(18)
Gold production C1 cash cost
$1,586 
$
2,120 
$
1,115 
$1,793 
$
1,108 
Gold production AISC
$2,881 
$
4,441 
$
2,234 
$3,485 
$
2,231 













14
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
Historic Gold Concentrate C1 cash cost and gold AISC

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

Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Cost of production
$
16,618 
$
13,877 
$
8,761 
$
30,495 
$
14,986 
less: Cost of mine production
(12,936)
(12,236)
(8,761)
(25,172)
(14,986)
Gold concentrate re-handling costs
$
3,682 
$
1,641 
$
— 
$
5,323 
$
— 
Add (less):
Net change in inventory
(11)
(328)
— 
(339)
— 
By-product credits
(974)
(134)
— 
(1,108)
— 
Smelting, refining and selling expenses
4,811 
754 
— 
5,565 
— 
Historic gold concentrate C1 cash costs
$
7,508 
$
1,933 
$
— 
$
9,441 
$
— 
Royalties and production taxes
967 
246 
— 
1,213 
— 
Historic gold concentrate AISC
$
8,475 
$
2,179 
$
— 
$
10,654 
$
— 

2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Costs
Gold concentrate re-handling costs
3,671 
1,313 
— 
4,984 
— 
Smelting and refining costs
4,811 
754 
— 
5,565 
— 
By-product credits
(974)
(134)
— 
(1,108)
— 
Historic gold concentrate C1 cash costs
$
7,508 
$
1,933 
$
— 
$
9,441 
$
— 
Royalties and production taxes
967 
246 
— 
1,213 
— 
Historic gold concentrate AISC
$
8,475 
$
2,179 
$
— 
$
10,654 
$
— 
Costs per ounce
Historic gold concentrate recovered (ounces)
11,860 
2,112 
— 
13,972 
— 
Gold concentrate re-handling costs
$
310 
$
622 
$
— 
$
357 
$
— 
Smelting, refining and selling costs
$
406 
$
357 
$
— 
$
398 
$
— 
By-product credits
$
(82)
$
(63)
$
— 
$
(79)
$
— 
Historic gold concentrate C1 cash costs
$
633 
$
915 
$
— 
$
676 
$
— 
Historic gold concentrate AISC
$
715 
$
1,032 
$
— 
$
763 
$
— 
15
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA


The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.


Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Net Income
$90,749 
$
109,311 
$
71,028 
$200,060 
$
151,655 
Adjustments:
Finance expense
12,678 
11,064 
5,976 
23,742 
10,699 
Finance income
(1,443)
(1,121)
(1,130)
(2,564)
(1,968)
Income tax expense
19,321 
17,885 
13,082 
37,206 
27,823 
Amortization and depreciation
38,514 
38,319 
25,215 
76,833 
43,835 
EBITDA
$159,819 
$
175,458 
$
114,171 
$335,277 
$
232,044 
Foreign exchange gain
(10,845)
(53,655)
(38,640)
(64,500)
(97,040)
Share based compensation
1,063 
2,640 
7,756 
3,703 
8,929 
Unrealized (gain) loss on commodity derivatives
(6,014)
751 
(636)
(5,263)
1,466 
Others
— 
— 
— 
— 
458 
Adjusted EBITDA
$144,023 
$
125,194 
$
82,651 
$269,217 
$
145,857 




16
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company

The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.
Reconciliation:
2026 - Q2
2026 - Q1
2025 - Q2
2026 - YTD
2025 - YTD
Net income as reported attributable to the owners of the Company
$89,543 
$
108,771 
$
70,548 
$198,314 
$
150,775 
Adjustments:
Share based compensation
1,063 
2,640 
7,756 
3,703 
8,929 
Unrealized foreign exchange gain on USD denominated balances in MCSA
(3,267)
(30,260)
(28,204)
(33,527)
(67,832)
Unrealized foreign exchange loss (gain) on foreign exchange derivative contracts
5,363 
(16,464)
(6,606)
(11,101)
(23,345)
Unrealized (gain) loss on commodity derivatives
(5,870)
733 
(633)
(5,137)
1,446 
Others
— 
— 
— 
— 
458 
Tax effect on the above adjustments
575 
7,014 
5,281 
7,589 
13,560 
Adjusted net income attributable to owners of the Company
$87,407 
$
72,434 
$
48,142 
$159,841 
$
83,991 
Weighted average number of common shares
Basic
104,282,548 
104,262,136 
103,582,082 
104,272,398 
103,573,416 
Diluted
105,876,946 
105,023,869 
103,905,561 
105,880,086 
103,902,012 
Adjusted EPS
Basic
$0.84 
$
0.69 
$
0.46 
$1.53 
$
0.81 
Diluted
$0.83 
$
0.69 
$
0.46 
$1.51 
$
0.81 

17
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
Net Debt (Cash)

The following table provides a calculation of net debt (cash) based on amounts presented in the Company’s condensed consolidated interim financial statements as at the periods presented.

June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
Current portion of loans and borrowings
$34,578 
$
39,202 
$
55,711 
$
58,076 
Long-term portion of loans and borrowings
519,856
542,691
551,403
569,300
Less:
Cash and cash equivalents
(101,742)
(91,207)
(105,442)
(68,303)
Net debt (cash)
$452,692 
$
490,686 
$
501,672 
$
559,073 

Working Capital and Available Liquidity

The following table provides a calculation for these based on amounts presented in the Company’s condensed consolidated interim financial statements as at the periods presented.

June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
Current assets
$324,000 
$
290,299 
$
276,212 
$
178,524 
Less: Current liabilities
(236,345)
(224,064)
(260,718)
(212,010)
Working capital (deficit)
$87,655 
$
66,235 
$
15,494 
$
(33,486)
Cash and cash equivalents
101,742 
91,207 
105,442 
68,303 
Available undrawn revolving credit facilities
80,000 
55,000 
45,000 
45,000 
Available liquidity
$181,742 
$
146,207 
$
150,442 
$
113,303 


18
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
ABOUT ERO
Ero is a Brazil-focused, growth-oriented mining company with a diversified portfolio of copper and gold assets. Headquartered in Vancouver, B.C., the Company operates two copper mines – the Caraíba Operations in Bahia State and the Tucumã Operation in Pará State – as well as the Xavantina Operations, a producing gold mine in Mato Grosso State. In addition to its operating assets, Ero is advancing the Furnas Copper-Gold Project, located in the mineral-rich Carajás Province in Pará State, through a definitive earn-in agreement with Vale Base Metals to acquire a 60% interest in the project.
Ero’s operating philosophy is grounded in a commitment to safety, operational excellence, and the responsible production of minerals essential for a better tomorrow. The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO.” Additional information, including technical reports on the Company’s operations and projects, is available on the Company’s website (www.ero.com), SEDAR+ (www.sedarplus.ca), and on EDGAR (www.sec.gov).
FOR MORE INFORMATION, PLEASE CONTACT
Farooq Hamed, VP, Investor Relations
info@ero.com
19
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS

This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements with respect to the Company’s expected production, operating costs and capital expenditures at the Caraíba Operations, the Tucumã Operation and the Xavantina Operations, including the expected timing and weighting of production, plant throughput, mined and processed copper or gold grades, recoveries and unit costs; capital and operating cost estimates and economic analyses (including cash flow projections), including those from the Caraíba Operations Technical Report, the Xavantina Operations Technical Report, the Tucumã Project Technical Report and the Furnas Project Technical Report;the estimation of mineral reserves and mineral resources; estimated completion dates for certain milestones, including completion of the Pilar Mine’s new external shaft at the Caraíba Operations; the ability of the Company to maintain improved performance at the Caraíba mill and realize the expected benefits associated with the Pilar Mine’s new external shaft; the expected timing of delivery, installation and commissioning of additional modular tailings filters at the Tucumã Operation and the anticipated impact of such filters on tailings filtration capacity, plant throughput and future production; the expected benefits of the ventilation and cooling infrastructure installed at the Xavantina Operations, including increased mining rates, mill throughput and processed gold grades; expectations regarding gold concentrate sales from the Xavantina Operations, including the expected timing and volume of sales and the anticipated benefits of drier seasonal conditions and the mobile filter press and industrial dryer commissioned on site; the anticipated benefits of the new powerline and processing plant optimization initiatives at the Xavantina Operations; expectations regarding the impact of inflationary pressures, the US-Iran conflict and fluctuations in the Brazilian real on the Company’s operating costs, capital expenditures and financial results; expectations of cost savings related to the OneEro Program; expectations regarding foreign exchange derivative contracts, including expected gains thereon and the exchange rate assumptions underlying such expectations; the Company’s capital allocation priorities, including continued deleveraging of the balance sheet; the Company’s ability to advance work programs under the Furnas earn-in agreement, including exploration, drilling, permitting, engineering, geotechnical, hydrogeological, environmental and metallurgical programs; the expected completion of the Phase 3 drill program and other planned exploration activities at the Furnas Copper-Gold Project; the timing and completion of a pre-feasibility study for the Furnas Copper-Gold Project, currently expected to be published in 2027; the potential to extend known mineralization, upgrade mineral resources to higher-confidence categories or mineral reserves, enhance project economics or increase the potential production profile at the Furnas Copper-Gold Project; the discovery of additional mineralization and the potential impact of exploration results on future production rates at the Company’s mines or processing facilities; the Company’s expectations associated with historic gold concentrate stockpiles at the Xavantina Operations, including operating costs, payability, grades, sales volumes and the timing of sales; and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results, actions, events, conditions, performance or achievements to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks discussed in this press release and in the Company’s most recent Annual Information Form (“AIF”) under the heading “Risk Factors”. The risks discussed in this press release and in the AIF are not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results, actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, actions, events, conditions, performance or achievements to differ from those anticipated, estimated or intended.

Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company’s actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to herein and in the AIF under the heading “Risk Factors”.

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond the Company’s control. In connection with the forward-looking statements contained in this press release and in the AIF, the Company has made certain assumptions about, among other things: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company’s properties and assets; future prices of copper, gold and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the Caraíba Operations, the Xavantina Operations, the Tucumã Operation and the Furnas Copper-Gold Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction costs and expenditures; the price of other commodities such as fuel; future currency exchange rates, interest rates and tariff rates; operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks, political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with local groups and the Company’s ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the Company’s current loan arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release, these assumptions are subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. The Company cautions that the foregoing list of assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.

CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

Unless otherwise indicated, all reserve and resource estimates included in this press release and the documents incorporated by reference herein have been prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, this presentation and the documents incorporated by reference herein use the terms “measured resources,” “indicated resources” and “inferred resources” as defined in accordance with NI 43-101 and the CIM Standards.

Further to recent amendments, mineral property disclosure requirements in the United States (the “U.S. Rules”) are governed by subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) which differ from the CIM Standards. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the “MJDS”), Ero is not required to provide disclosure on its mineral properties under the U.S. Rules and will continue to provide disclosure under NI 43-101 and the CIM Standards. If Ero ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then Ero will be subject to the U.S. Rules, which differ from the requirements of NI 43-101 and the CIM Standards.

Pursuant to the new U.S. Rules, the SEC recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” In addition, the definitions of “proven mineral reserves” and “probable mineral reserves” under the U.S. Rules are now “substantially similar” to the corresponding standards under NI 43-101. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that Ero reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms under the U.S. Rules are “substantially similar” to the standards under NI 43-101 and CIM Standards, there are differences in the definitions under the U.S. Rules and CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that Ero may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had Ero prepared the reserve or resource estimates under the standards adopted under the U.S. Rules.







20
Ero
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

Source: View Original Filing on SEC EDGAR

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