Ero Copper Corp. press release

Ero Copper Reports Record Third Quarter 2026 Results

2026-11-02

TSX - Toronto Stock Exchange · Copper · Gold · Silver · Nickel · Canada · Corporate Finance

(all amounts in US dollars, unless otherwise noted)

VANCOUVER, British Columbia, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO)(“Ero” or the “Company”) is pleased to announce its operating and financial results for the three and nine months ended September 30, 2026. Management will host a conference call tomorrow, Tuesday, November 3, 2026, at 10:30 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 quarterly copper production totaled 18,345 tonnes in concentrate, up 6% sequentially, at C1 cash costs(1)of $2.51 per pound produced. Gold from the Xavantina Operations totaled 25,258 ounces, up 23% from the previous quarter on increased ounces recovered from historic gold concentrate stockpiles. Gold recovered from historic concentrate stockpiles increased 47% to a record of 17,414 ounces at C1 cash costs(1)and AISC(1)of $621 and $710 per ounce, respectively. Mined gold production totaled 7,844 ounces at C1 cash costs(1)and AISC(1)of $1,892 and $3,607 per ounce, respectively.

Record financial metrics, including cash flow from operations, adjusted EBITDA(1)and net income, supported by strong operating performance, higher copper and gold sales volumes, and favorable metal prices. Cash flow from operations was $191.2 million, up 39% quarter-on-quarter. Adjusted EBITDA(1)was $200.6 million, also up 39% quarter-on-quarter. Net income attributable to the owners of the Company was $116.2 million, or $1.10 per diluted share, representing a 30% quarter-on-quarter increase. Adjusted net income attributable to the owners of the Company(1)increased 48% quarter-on-quarter to $129.3 million, or $1.22 per diluted share.

Reduced net debt(1)by approximately $100 million during the quarter and nearly $200 million since the beginning of 2025 to $353.5 million. Accelerated deleveraging was supported by the Company's strong cash flow generation, with approximately 97% of every dollar of cash available for deleveraging(2)applied toward debt reduction year-to-date. The Company's net debt leverage ratio improved to 0.5x at quarter-end from 1.2x at December 31, 2025.(3) Available liquidity(1)increased by $82.3 million quarter-on-quarter to $264.1 million, including $114.1 million in cash and cash equivalents and $150.0 million of undrawn availability under the Company's senior secured revolving credit facility. The Company’s foreign exchange hedge program generated realized gains of $10.4 million in Q3 and $30.3 million year-to-date, offsetting the cash impact of the stronger BRL. These gains are recognized separately and are not reflected in the Company's reported unit operating costs. Allocating the year-to-date realized gains across the Company's operations on a pro rata basis would equate to estimated reductions of approximately $0.15 per pound on full-year consolidated copper C1 cash costs(1)and approximately $50 per ounce on Xavantina's full-year C1 cash costs(1)and AISC(1). Reaffirming consolidated copper production and updating consolidated copper cost guidance as well as Xavantina production and cost guidance to reflect year-to-date performance and Q4 historic gold concentrate sales outlook. Consolidated copper production guidance remains unchanged at 67,500 to 77,500 tonnes, with Q4 expected to be the strongest production quarter of the year at both copper operations. Consolidated copper C1 cash cost(1) guidance has been updated to $2.25 to $2.45 per pound produced, reflecting inflationary pressures associated with the ongoing U.S.-Iran conflict and a stronger BRL. Allocating year-to-date realized foreign exchange hedge gains across the Company's operations on a pro rata basis would reduce full-year C1 cash costs(1)by approximately $0.15 per pound to $2.10 to $2.30 per pound, in line with the Company's original 2026 guidance. Total gold from Xavantina is expected to be 75,000 to 80,000 ounces, comprising approximately 45,000 ounces recovered from historic concentrate stockpiles and 30,000 to 35,000 ounces of mined production. Q4 mined production is expected to benefit from higher mining rates and grades following the acceleration of underground development during Q3. Xavantina C1 cash cost(1) and AISC(1) guidance for mined gold production has been updated to $1,650 to $1,800 per ounce and $3,300 to $3,600 per ounce, respectively. Allocating year-to-date realized foreign exchange hedge gains across the Company's operations on a pro rata basis would reduce these ranges by approximately $50 per ounce to $1,600 to $1,750 and $3,250 to $3,550 per ounce, respectively. Capital expenditure guidance remains unchanged at $285 to $330 million.

The Company continued to advance the Furnas Copper-Gold Project ("Furnas" or the "Project"), completing the Phase 3 drill program in Q3 2026, more than two years ahead of schedule. Completion of the 45,000-meter Phase 3 drill program satisfies the exploration component of the Furnas earn-in agreement with Vale Base Metals. The Company continues to advance key technical workstreams, including permitting, hydrogeological studies, environmental studies, and confirmatory metallurgical testwork in support of a Pre-Feasibility Study expected to be published in 2027.

_"Ero delivered record financial results in Q3. Significant free cash flow generation enabled us to accelerate our pace of deleveraging - one of the core commitments we have made to our shareholders. Results were supported by continued growth in copper and gold sales volumes, cost savings from our OneEro initiative, and our foreign exchange hedge strategy designed to protect cash operating margins," _said Makko DeFilippo, President & Chief Executive Officer.

_“Our operating performance continued to strengthen during the quarter as optimization initiatives launched in 2025 and advanced further in 2026 translated into sustainable improvements across the business. Caraíba and Tucumã delivered sequential throughput gains of _8% and 14%, respectively, and our o_perations remain on track to deliver record consolidated copper production in 2026. At Tucumã, the tailings filtration expansion remains on track for completion by year-end. At Xavantina, increased recovery of gold from historic concentrate stockpiles supported higher quarterly gold sales, while mine operations achieved record underground development, which we expect will translate to higher sustained mining rates and additional flexibility in the coming quarters._

"We are pleased with the progress across our operations, our continued commitment to deleveraging and the significant progress we have made throughout our growth initiatives this year, including the completion of all drilling requirements at Furnas more than 2 years ahead of schedule."

| (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 nine months ended September 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. | | (2) | Cash available for deleveraging, on a year-to-date basis, represents cash flow from operations of $421.9 million, less capital expenditures of $222.3 million ($203.1 million for additions to mineral properties, plant and equipment and $19.2 million for additions to exploration and evaluation assets) and interest, lease, and finance payments of $63.2 million ($36.7 million for interest paid on loans and borrowings, $16.4 million for lease liability payments and $10.1 million for other finance expenses paid). Of the resulting $136.4 million of cash available for deleveraging, $132.0 million was applied to debt principal repayments, equivalent to approximately $0.97 of every $1.00 available. | | (3) | The Company's net debt leverage ratio as of September 30, 2026 was 0.5x, based on net debt of $353.5 million and trailing 12-month adjusted EBITDA of $656.6 million. By comparison, the ratio as of December 31, 2025 was 1.2x, based on net debt of $501.7 million and trailing 12-month adjusted EBITDA of $409.7 million. | | | |

THIRD QUARTER REVIEW

The Caraíba Operations

The Caraíba Operations produced 9,387 tonnes of copper in concentrate during the period at C1 cash costs(1)of $2.89 per pound produced. Production increased by approximately 12% quarter-on-quarter driven by higher plant throughput with modestly higher processed grades and recoveries. C1 cash costs(1)were impacted by higher waste stripping costs at Surubim, increased diesel and maintenance costs, and the continued strength of the BRL.

The Tucumã Operation

The Tucumã Operation produced 8,958 tonnes of copper in concentrate during the quarter at C1 cash costs(1)of $2.12 per pound produced. Production was in line with the prior quarter, as improved plant throughput offset lower grades and recoveries. C1 cash costs(1)were also in line with the prior period, with initial OneEro cost savings offsetting the impact of inflationary pressures on input costs and the continued strength of the BRL. The Company remains on schedule to install and commission modular tailings filters in Q4, providing additional capacity to Tucumã's tailings filtration circuit. The incremental filtration capacity and associated plant throughput benefits are expected to support future production plans and have not been reflected in 2026 operational guidance.

The Xavantina Operations

Gold produced and recovered at the Xavantina Operations increased 23% quarter-on-quarter to 25,258 ounces, supported by increased ounces recovered from historic gold concentrate stockpiles. Gold recovered from historic concentrate stockpiles increased 47% quarter-on-quarter to 17,414 ounces at C1 cash costs(1)and AISC(1)of $621 and $710 per ounce, respectively. Operations benefited from drier seasonal conditions and additional drying infrastructure installed in late Q2. Mine production was 7,844 ounces at C1 cash costs(1)and AISC(1)of $1,892 and $3,607 per ounce, respectively. Higher throughput was offset by lower processed grades, as mine operations focused on accelerating underground development during the quarter, limiting access to higher-grade stopes.

Gold sales also increased approximately 47% quarter-on-quarter to 24,957 ounces, comprising 4,949 ounces of gold doré and 20,008 ounces of gold in concentrate, including contributions from Xavantina's historic gold concentrates.

| (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 nine months ended September 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. | | | |

| OPERATING HIGHLIGHTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 - Q3 | | 2026 - Q2 | | 2025 - Q3 | | 2026 - YTD | | 2025 - YTD | | | | | | | Copper (Caraíba Operations) | | | | | | | | | | | | | | | | | Ore Mined (tonnes) | | | 1,142,352 | | | 1,098,614 | | | 1,018,972 | | | 3,226,543 | | | 2,507,975 | | Ore Processed (tonnes) | | | 1,161,102 | | | 1,074,182 | | | 996,661 | | | 3,307,493 | | | 2,481,508 | | Grade (% Cu) | | | 0.90 | | | 0.87 | | | 1.01 | | | 0.90 | | | 1.14 | | Recovery (%) | | | 89.4 | | | 89.0 | | | 90.4 | | | 88.9 | | | 90.6 | | Cu Production (tonnes) | | | 9,387 | | | 8,351 | | | 9,085 | | | 26,564 | | | 25,604 | | Cu Production (000 lbs) | | | 20,694 | | | 18,411 | | | 20,030 | | | 58,564 | | | 56,448 | | Cu Sold in Concentrate (tonnes) | | | 9,537 | | | 7,926 | | | 9,080 | | | 26,668 | | | 25,416 | | Cu Sold in Concentrate (000 lbs) | | | 21,026 | | | 17,474 | | | 20,017 | | | 58,793 | | | 56,031 | | Cu C1 cash cost(1) | | $ | 2.89 | | $ | 2.76 | | $ | 2.32 | | $ | 2.81 | | $ | 2.20 | | | | | | | | | | | | | | | | | | | Copper (Tucumã Operation) | | | | | | | | | | | | | | | | | Ore Mined (tonnes) | | | 1,224,488 | | | 590,600 | | | 1,333,748 | | | 2,271,772 | | | 2,460,850 | | Ore Processed (tonnes) | | | 814,137 | | | 715,415 | | | 575,041 | | | 2,093,269 | | | 1,288,054 | | Grade (% Cu) | | | 1.30 | | | 1.44 | | | 1.51 | | | 1.44 | | | 1.74 | | Recovery (%) | | | 85.0 | | | 88.2 | | | 89.2 | | | 87.1 | | | 88.0 | | Cu Production (tonnes) | | | 8,958 | | | 8,964 | | | 7,579 | | | 26,383 | | | 18,997 | | Cu Production (000 lbs) | | | 19,749 | | | 19,763 | | | 16,707 | | | 58,164 | | | 41,880 | | Cu Sold in Concentrate (tonnes) | | | 8,638 | | | 8,581 | | | 6,622 | | | 25,970 | | | 17,758 | | Cu Sold in Concentrate (000 lbs) | | | 19,044 | | | 18,918 | | | 14,598 | | | 57,254 | | | 39,149 | | Cu C1 cash cost(1)(2) | | $ | 2.12 | | $ | 2.10 | | $ | 1.62 | | $ | 2.07 | | $ | 1.62 | | | | | | | | | | | | | | | | | | | Gold (Xavantina Operations) | | | | | | | | | | | | | | | | | Ore Mined (tonnes) | | | 56,527 | | | 49,484 | | | 50,268 | | | 138,831 | | | 121,325 | | Ore Processed (tonnes) | | | 55,478 | | | 48,564 | | | 47,865 | | | 141,170 | | | 118,922 | | Grade (g / tonne) | | | 4.90 | | | 6.20 | | | 8.15 | | | 5.55 | | | 7.46 | | Recovery (%) | | | 89.7 | | | 89.8 | | | 78.4 | | | 87.5 | | | 84.7 | | Au Production (oz) | | | 7,844 | | | 8,693 | | | 9,073 | | | 22,032 | | | 23,454 | | Historic Au Concentrate Recovered (oz) | | | 17,414 | | | 11,860 | | | — | | | 31,386 | | | — | | Au Sold in Doré (oz) | | | 4,949 | | | 6,663 | | | 8,439 | | | 17,631 | | | 22,549 | | Au Sold in Concentrate (oz)(3) | | | 20,008 | | | 10,353 | | | — | | | 34,672 | | | — | | Au Production C1 cash cost(1) | | $ | 1,892 | | $ | 1,586 | | $ | 1,086 | | $ | 1,828 | | $ | 1,100 | | Au Production AISC(1) | | $ | 3,607 | | $ | 2,881 | | $ | 2,425 | | $ | 3,528 | | $ | 2,307 | | Historic Au Concentrate C1 cash cost(1) | | $ | 621 | | $ | 633 | | | — | | $ | 645 | | | — | | Historic Au Concentrate AISC(1) | | $ | 710 | | $ | 715 | | | — | | $ | 733 | | | — |

| (1) | Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three and nine months ended September 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 reflect costs from Q3 2025 onward only. | | (3) | Gold sold in concentrate includes gold ounces produced in flotation and the historic gold concentrate stockpile. | | | |

| FINANCIAL HIGHLIGHTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions, except per share amounts) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 - Q3 | | 2026 - Q2 | | 2025 - Q3 | | 2026 - YTD | | 2025 - YTD | | | | | | | | | Revenues | | $ | 348.0 | | $ | 284.3 | | $ | 177.1 | | | $ | 895.5 | | $ | 465.7 | | | Gross profit | | | 169.6 | | | 121.4 | | | 57.4 | | | | 396.9 | | | 180.2 | | | EBITDA(1) | | | 195.8 | | | 159.8 | | | 90.8 | | | | 531.0 | | | 322.8 | | | Adjusted EBITDA(1) | | | 200.6 | | | 144.0 | | | 77.1 | | | | 469.8 | | | 223.0 | | | Cash flow from operations | | | 191.2 | | | 137.9 | | | 110.3 | | | | 421.9 | | | 266.0 | | | Net income | | | 118.0 | | | 90.7 | | | 36.5 | | | | 318.0 | | | 188.2 | | | Net income attributable to owners of the Company | | | 116.2 | | | 89.5 | | | 36.0 | | | | 314.6 | | | 186.8 | | | Per share (basic) | | | 1.11 | | | 0.86 | | | 0.35 | | | | 3.02 | | | 1.80 | | | Per share (diluted) | | | 1.10 | | | 0.85 | | | 0.35 | | | | 2.97 | | | 1.80 | | | Adjusted net income attributable to owners of the Company(1) | | | 129.3 | | | 87.4 | | | 27.9 | | | | 289.1 | | | 111.9 | | | Per share (basic) | | | 1.24 | | | 0.84 | | | 0.27 | | | | 2.77 | | | 1.08 | | | Per share (diluted) | | | 1.22 | | | 0.83 | | | 0.27 | | | | 2.73 | | | 1.08 | | | | | | | | | | | | | | | | | | | | | | Cash, cash equivalents, and short-term investments | | | 114.1 | | | 101.7 | | | 66.3 | | | | 114.1 | | | 66.3 | | | Working capital (deficit)(1) | | | 89.4 | | | 87.7 | | | (45.2 | ) | | | 89.4 | | | (45.2 | ) | | Available liquidity(1) | | | 264.1 | | | 181.7 | | | 111.3 | | | | 264.1 | | | 111.3 | | | Net debt(1) | | | 353.5 | | | 452.7 | | | 545.5 | | | | 353.5 | | | 545.5 | |

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

2026 GUIDANCE

Consolidated copper production guidance remains unchanged at 67,500 to 77,500 tonnes, with Q4 expected to be the strongest production quarter of the year at both copper operations. At the Caraíba Operations, Q4 copper production is expected to benefit from higher mined and processed copper grades. At the Tucumã Operation, higher plant throughput and improved recoveries are expected to offset lower planned copper grades.

Full-year consolidated copper C1 cash cost(1)guidance has been updated to $2.25 to $2.45 per pound produced, reflecting the impact of continued strength in the BRL, inflationary pressures arising from the ongoing U.S.-Iran conflict, and delayed access to the higher-grade pit bottom of Surubim at the Caraíba Operations during the third quarter. Unit costs are expected to decline in Q4 at both of the copper operations driven by increased production.

The cash impact of the stronger BRL has been offset by year-to-date realized gains of $30.3 million from the Company's foreign exchange hedge program. Allocating the year-to-date realized foreign exchange hedge gains across the Company's operations on a pro rata basis would translate to an estimated reduction of approximately $0.15 per pound on full-year consolidated copper C1 cash costs(1), equating to $2.10 to $2.30 per pound produced, generally in line with the Company's original 2026 guidance.

Gold from Xavantina is expected to total 75,000 to 80,000 ounces in 2026, including 30,000 to 35,000 ounces of mined production and approximately 45,000 ounces recovered from historic gold concentrate stockpiles. Mined gold production guidance has been revised to reflect extended downtime in H1 related to the installation of key ventilation and cooling infrastructure and lower mined and processed grades in Q3. Mined production is expected to increase in Q4, supported by higher mining rates and grades following the acceleration of underground development during Q3. As a result, gold C1 cash cost(1) and AISC(1) guidance has been updated to $1,650 to $1,800 per ounce and $3,300 to $3,600 per ounce, respectively. Allocating the year-to-date realized foreign exchange hedge gains across the Company's operations on a pro rata basis would translate to an estimated reduction of approximately $50 per ounce on Xavantina's full-year C1 cash costs(1)and AISC(1) equating to $1,600 to $1,750 and $3,250 to $3,550 per ounce, respectively.

Gold recovered from historic concentrate stockpiles is expected to total approximately 45,000 ounces, including over 31,000 ounces recovered through the end of Q3 and approximately 15,000 ounces projected for Q4. The Q4 shipment outlook includes more than 6,000 ounces invoiced in October and approximately 9,000 ounces contained in concentrate at site undergoing drying prior to shipment.

Total capital expenditure guidance is maintained in the range of $285 to $330 million.

| 2026 Production and Cost Guidance | | | | | | | | | | | | | | | | | | Previous Guidance | | Current Guidance | | Current Guidance with YTD $30M FX Gain Applied(1) | | Consolidated Copper Production (tonnes) | | | | | | | | Caraíba Operations | | 35,000 - 40,000 | | 35,000 - 40,000 | | 35,000 - 40,000 | | Tucumã Operation | | 32,500 - 37,500 | | 32,500 - 37,500 | | 32,500 - 37,500 | | Total Copper | | 67,500 - 77,500 | | 67,500 - 77,500 | | 67,500 - 77,500 | | | | | | | | | | Consolidated Copper C1 Cash Costs ($/lb)(2) | | | | | | | | Caraíba Operations | | $2.30 - $2.50 | | $2.55 - $2.75 | | $2.35 - $2.55 | | Tucumã Operation | | $1.95 - $2.15 | | $1.95 - $2.15 | | $1.85 - $2.05 | | Consolidated Copper Operations | | $2.15 - $2.35 | | $2.25 - $2.45 | | $2.10 - $2.30 | | | | | | | | | | The Xavantina Operations (oz) | | | | | | | | Mined Au Production | | 40,000 - 50,000 | | 30,000 - 35,000 | | 30,000 - 35,000 | | Au Recovered from Historic Stockpiles | | — | | Approx. 45,000 | | Approx. 45,000 | | Total Gold | | 40,000 - 50,000 | | 75,000 - 80,000 | | 75,000 - 80,000 | | | | | | | | | | Mined Gold Production Costs ($/oz) | | | | | | | | C1 Cash Cost(2) | | $1,100 - $1,350 | | $1,650 - $1,800 | | $1,600 - $1,750 | | AISC(2) | | $2,200 - $2,700 | | $3,300 - $3,600 | | $3,250 - $3,550 |