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 November 2024


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 an 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. 333-274097).








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: SVP, General Counsel and Corporate Secretary
Date: November 5, 2024




















Exhibit Index















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MANAGEMENT’S DISCUSSION
AND ANALYSIS


FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2024



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


TABLE OF CONTENTS
BUSINESS OVERVIEW
HIGHLIGHTS
REVIEW OF OPERATIONS
The Caraíba Operations
The Tucumã Operation
The Xavantina Operations
2024 GUIDANCE
REVIEW OF FINANCIAL RESULTS
Review of quarterly results
Summary of quarterly results for most recent eight quarters
OTHER DISCLOSURES
Liquidity, Capital Resources, and Contractual Obligations
Management of Risks and Uncertainties
Other Financial Information
Accounting Policies, Judgments and Estimates
Capital Expenditures
Alternative Performance (NON-IFRS) Measures
Disclosure Controls and Procedures and Internal Control over Financial Reporting
Notes and Cautionary Statements
Ero Copper Corp. September 30, 2024 MD&A

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) has been prepared as at November 5, 2024 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 nine months ended September 30, 2024, 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 “Q3 2024” and “Q3 2023” are to the three months ended September 30, 2024 and September 30, 2023, respectively, and all references to “YTD 2024” and “YTD 2023” are to the nine months ended September 30, 2024 and September 30, 2023, respectively. As well, this MD&A should be read in conjunction with the Company’s December 31, 2023 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, copper C1 cash cost including foreign exchange hedges, 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 November 5, 2024, unless otherwise stated.

BUSINESS OVERVIEW

Ero Copper is a high-margin, high-growth copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"), 100% owner of the Company's Caraíba Operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Operation (formerly known as Boa Esperança), an open pit copper mine located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Operation, can be found on SEDAR+ (www.sedarplus.ca/landingpage/) and on EDGAR (www.sec.gov). The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO”.
Ero Copper Corp. September 30, 2024 MD&A | Page 1

HIGHLIGHTS

Operating Highlights

2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Copper (Caraíba Operations)
Ore Processed (tonnes)900,289 957,692 806,096 2,711,352 2,419,465 
Grade (% Cu)1.20 1.03 1.46 1.10 1.45 
Cu Production (tonnes)9,920 8,867 10,766 26,878 32,097 
Cu Production (lbs)21,870,631 19,548,441 23,734,026 59,256,602 70,761,357 
Cu Sold in Concentrate (tonnes)9,970 8,706 10,090 28,137 31,166 
Cu Sold in Concentrate (lbs)21,980,217 19,192,315 22,243,586 62,031,124 68,708,912 
Cu C1 Cash Cost(1)(2)
$1.63 $2.16 $1.92 $2.01 $1.83 
Copper (Tucumã Operation)
Ore Processed (tonnes)110,778 — — 110,778 — 
Grade (% Cu)1.00 — — 1.00 — 
Cu Production (tonnes)839 — — 839 — 
Cu Production (lbs)1,850,043 — — 1,850,043 — 
Cu Sold in Concentrate (tonnes)357 — — 357 — 
Cu Sold in Concentrate (lbs)787,042 — — 787,042 — 
Gold (Xavantina Operations)
Ore Processed (tonnes)41,761 40,446 31,446 120,041 101,586 
Grade (g / tonne)11.41 14.00 18.72 13.85 14.43 
Au Production (oz)13,485 16,555 17,579 48,274 42,355 
Au C1 Cash Cost(1)
$539 $428 $371 $447 $425 
Au AISC(1)
$1,034 $842 $844 $879 $943 

(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
(2) Copper C1 cash cost including foreign exchange hedges was $1.72 in Q3 2024 (Q3 2023 - $1.77) and $2.04 in YTD 2024 (YTD 2023 - $1.73).
Ero Copper Corp. September 30, 2024 MD&A | Page 2

Financial Highlights
($ in millions, except per share amounts)

2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Revenues$124.8 $117.1 $105.2 $347.7 $311.1 
Gross profit 53.7 43.3 35.5 128.2 115.0 
EBITDA(1)
74.5 (36.2)28.3 56.1 135.0 
Adjusted EBITDA(1)
62.2 51.5 42.9 157.0 133.2 
Cash flow from operations
52.7 14.7 41.9 84.6 113.7 
Net income (loss)
41.4 (53.4)2.8 (18.9)57.3 
Net income (loss) attributable to owners of the Company
40.9 (53.2)2.5 (19.5)56.3 
- Per share (basic)0.40 (0.52)0.03 (0.19)0.61 
- Per share (diluted)0.39 (0.52)0.03 (0.19)0.60 
Adjusted net income attributable to owners of the Company(1)
27.6 18.6 17.3 63.0 62.0 
- Per share (basic)0.27 0.18 0.19 0.61 0.67 
- Per share (diluted)0.27 0.18 0.18 0.61 0.66 
Cash, cash equivalents, and short-term investments20.2 44.8 87.6 20.2 87.6 
Working (deficit) capital(1)
(60.9)(57.6)32.8 (60.9)32.8 
Available liquidity(1)
125.2 169.8 237.6 125.2 237.6 
Net debt(1)
518.7 482.0 331.8 518.7 331.8 

(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

Ero Copper Corp. September 30, 2024 MD&A | Page 3

Q3 2024 Highlights
Third quarter financial results reflect an expansion of operating margins, driven by a significant decrease in unit operating costs at the Caraíba Operations and higher realized gold prices at the Xavantina Operations
•The Tucumã Operation achieved a major commissioning milestone in July 2024, producing its first saleable copper concentrate. As ramp-up efforts increased mill throughput during the quarter, the operation delivered 839 tonnes of copper, contributing to consolidated quarterly copper production of 10,759 tonnes
◦The Caraíba Operations produced 9,920 tonnes of copper in concentrate during the quarter at C1 cash costs(1) of $1.63 per pound of copper produced
–Higher mined and processed copper grades drove an 11.9% quarter-on-quarter increase in copper production and contributed to a 24.5% decrease in C1 cash costs
–Unit operating costs and margins also benefited from improved concentrate treatment and refining charges, secured as of May 2024, as well as a more favorable USD to BRL exchange rate
◦Despite intermittent power disruptions that slowed the ramp-up of Tucumã's processing plant during the quarter, mining operations remained ahead of schedule, contributing to the buildup of ore stockpiles to be processed in Q4 2024 and throughout 2025
•The Xavantina Operations produced 13,485 ounces of gold during the quarter, resulting in C1 cash costs(1) and AISC(1) of $539 and $1,034, respectively, per ounce of gold produced
◦Tonnes processed increased 3.3% quarter-on-quarter, partially offsetting a planned decrease in mined and processed gold grades
•Improved operating margins for the quarter were supported by a significant decrease in unit operating costs at the Caraíba Operations and higher realized gold prices at the Xavantina Operations, resulting in:
◦Net income attributable to the owners of the Company of $40.9 million ($0.39 per share on a diluted basis)
◦Adjusted net income attributable to the owners of the Company(1) of $27.6 million ($0.27 per share on a diluted basis)
◦Adjusted EBITDA(1) of $62.2 million
•During the quarter, the Company opportunistically entered into zero-cost gold collar contracts on 2,500 ounces of gold per month from January 2025 to December 2025. These contracts set a floor price of $2,200 per ounce, while allowing for upside participation in gold price increases up to a cap of $3,425 per ounce, over 20% above the all-time high price reached in October 2024. The total hedged volume is 30,000 ounces, representing just over 50% of projected 2025 gold production at the Xavantina Operations
•At quarter-end, available liquidity was $125.2 million, including $20.2 million in cash and cash equivalents, $80.0 million of undrawn availability under the Company's senior secured revolving credit facility, and $25.0 million of undrawn availability under the Company's copper prepayment facility
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
Ero Copper Corp. September 30, 2024 MD&A | Page 4

2024 Guidance Update
•The Company is updating its consolidated copper production guidance for 2024 to a range of 43,000 to 48,000 tonnes in concentrate. The adjustment reflects power disruptions at the Tucumã Operation, which extended the processing plant's ramp-up schedule, as well as slower-than-expected underground development progress at Caraíba's Pilar Mine.
•Due to the anticipated delay in achieving commercial production at the Tucumã Operation, the Company is narrowing 2024 C1 cash cost guidance to only include the Caraíba Operations. The Company is reaffirming its full-year C1 cash cost guidance for the Caraíba Operations of $1.80 to $2.00 per pound of copper produced. Positive factors, including improved concentrate treatment and refining charges secured as of May 2024, a higher gold byproduct credit, and a more favorable USD to BRL exchange rate, are expected to more than offset the impact of lower projected copper production.
•The Company is maintaining its increased 2024 gold production guidance range of 60,000 to 65,000 ounces as well as its reduced full-year gold cost guidance of $450 to $550 per ounce of gold produced for C1 cash costs, and $900 to $1,000 per ounce for AISC.
•The Company is reaffirming its full-year consolidated capital expenditure guidance of $303 to $348 million.

With consolidated copper production on track to double in 2025, the Company continued to bolster its growth pipeline with the execution of a definitive earn-in agreement on the Furnas Copper-Gold Project
•In July 2024, the Company signed a definitive earn-in agreement ("Agreement") with Salobo Metais S.A., a subsidiary of Vale Base Metals Limited, to earn a 60% interest in the Furnas Copper-Gold Project ("Furnas") located in the Carajás Mineral Province in Pará State, Brazil. The terms of the Agreement align with the previously signed binding term sheet outlined in the Company's press release dated October 30, 2023.
•Subsequent to quarter-end, the Company announced an initial National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for Furnas, highlighting its significant potential. This mineral resource estimate, supported by over 90,000 meters of historical drilling, is detailed in the Company's press release dated October 2, 2024.
•The Company also commenced the Phase 1 drill program in October 2024 after receiving drilling permits from the Pará State environmental agency in September 2024. This minimum 28,000-meter program, designed to support a preliminary economic assessment on Furnas, is focused on infill drilling and extending high-grade zones within the deposit to depth.
Ero Copper Corp. September 30, 2024 MD&A | Page 5

REVIEW OF OPERATIONS

The Caraíba Operations
2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Ore mined (tonnes)874,937 897,161 794,102 2,560,430 2,454,850 
Ore processed (tonnes)900,289 957,692 806,096 2,711,352 2,419,465 
Grade (% Cu)1.20 1.03 1.46 1.10 1.45 
Recovery (%)91.9 90.2 91.6 90.2 91.5 
Cu Production (tonnes)9,920 8,867 10,766 26,878 32,097 
Cu Production (lbs)21,870,631 19,548,441 23,734,026 59,256,602 70,761,357 
Concentrate grade (% Cu)33.3 33.1 33.9 33.1 33.9 
Concentrate sales (tonnes)29,964 26,222 30,751 84,907 96,670 
Cu Sold in concentrate (tonnes)9,970 8,706 10,090 28,137 31,166 
Cu Sold in concentrate (lbs)21,980,217 19,192,315 22,243,586 62,031,124 68,708,912 
Realized copper price$3.88 $4.22 $3.65 $3.94 $3.69 
Copper C1 cash cost$1.63 $2.16 $1.92 $2.01 $1.83 
Copper C1 cash cost including foreign exchange hedges$1.72 $2.16 $1.77 $2.04 $1.73 

The Caraíba Operations achieved quarterly copper production of 9,920 tonnes in concentrate, bringing YTD 2024 production to 26,878 tonnes. Higher mined and processed copper grades drove an 11.9% quarter-on-quarter increase in copper production and contributed to a 24.5% decrease in C1 cash costs, which averaged $1.63 per pound of copper produced for the quarter. C1 cash costs and margins also benefited from improved concentrate treatment and refining charges, secured as of May 2024, as well as a more favorable USD to BRL exchange rate, resulting in weighted average YTD 2024 C1 cash costs of $2.01 per pound of copper produced.

Tonnes of ore mined in Q3 2024 included:
•Pilar: 407,884 tonnes grading 1.34% copper (vs. 466,991 tonnes at 1.25% copper in Q2 2024)
•Vermelhos: 250,365 tonnes grading 1.47% copper (vs. 228,626 tonnes at 1.00% copper in Q2 2024)
•Surubim: 216,688 tonnes at 0.68% copper (vs. 201,544 tonnes at 0.63% copper in Q2 2024)

Contributions from the three mines resulted in total ore mined during the quarter of 874,937 tonnes grading 1.21% copper (vs. 897,161 tonnes at 1.05% copper in Q2 2024).

During the quarter, efforts to increase underground development rates at the Pilar Mine were impacted by slower-than-anticipated progress by a third-party development contractor. Consequently, the Company expects lower mined and processed tonnage at the Caraíba Operations
Ero Copper Corp. September 30, 2024 MD&A | Page 6

through year-end. To support accelerated development rates, the Company intends to engage an additional contractor in Q4 2024.

Exploration activities during Q3 2024 at the Caraíba Operations continued to focus on advancing the Company's full-year exploration objectives of (i) delineating high-grade mineralization within the upper levels of the Pilar and Vermelhos Mines, (ii) outlining extensions of regional targets with known copper mineralization near the Vermelhos Mine, and (iii) testing regional nickel and copper targets throughout the Curaçá Valley.

The Tucumã Operation
2024 - Q3
Ore mined (tonnes)867,315 
Ore processed (tonnes)110,778 
Grade (% Cu)1.00 
Recovery (%)75.7 
Cu Production (tonnes)839 
Cu Production (lbs)1,850,043 
Concentrate grade (% Cu)25.5 
Concentrate sales (tonnes)1,652 
Cu Sold in concentrate (tonnes)357 
Cu Sold in concentrate (lbs)787,042 
The Tucumã Operation achieved a significant commissioning milestone during the quarter with the production of first saleable copper concentrate in July 2024 resulting in the first sale of concentrate near the end of the quarter. Mining operations continued ahead of schedule during the quarter, contributing to a buildup of ore stockpiles that are expected to be processed in Q4 2024 and throughout 2025. The ramp-up of Tucumã's processing plant progressed well through July and the majority of August; however, as the plant moved toward continuous operations, the Company detected intermittent voltage oscillations within the third-party regional power grid. These oscillations limited the ability to run the mill at full capacity on a continuous basis, resulting in quarterly production of 839 tonnes of copper in concentrate.

In addition, the Tucumã Operation experienced a temporary power disruption following a severe localized windstorm that impacted the regional power grid, including the main 230kV transmission line servicing the southwest region of the Carajás Mineral Province. Power was restored after approximately 10 days, allowing the Company to safely resume ramp-up activities on October 16, 2024. For further details on the power disruption and resumption of ramp-up activities, please refer the Company's press releases dated October 5, 2024 and October 16, 2024.

To address ongoing intermittent voltage oscillations, the Company implemented a mill power management solution that enables continuous plant operations despite minor voltage fluctuations. Since this implementation, the plant has maintained continuous operations and is advancing toward full capacity.
Ero Copper Corp. September 30, 2024 MD&A | Page 7

The Xavantina Operations

2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Ore mined (tonnes)41,761 40,446 31,277 120,041 101,565 
Ore processed (tonnes)41,761 40,446 31,446 120,041 101,586 
Head grade (grams per tonne Au)11.41 14.00 18.72 13.85 14.43 
Recovery (%)92.5 91.0 92.9 91.8 89.9 
Gold ounces produced (oz)13,485 16,555 17,579 48,274 42,355 
Silver ounces produced (oz)8,168 9,896 10,994 28,273 27,767 
Gold sold (oz)14,615 17,621 15,457 49,089 39,470 
Silver sold (oz)8,523 10,468 10,296 28,077 26,037 
Realized gold price(1)
$2,382 $2,193 $1,902 $2,156 $1,889 
Gold C1 cash cost$539 $428 $371 $447 $425 
Gold AISC$1,034 $842 $844 $879 $943 
(1)    Realized Au price includes the effect of ounces sold under the stream arrangement with Royal Gold. See "Realized Gold Price" section of "Non-IFRS Measures" for detail.

The Xavantina Operations delivered quarterly gold production of 13,485 ounces, with higher mill throughput partially offsetting a planned decrease in mined and processed gold grades, bringing YTD 2024 gold production to 48,274 ounces.

C1 cash costs and AISC for the quarter were $539 and $1,034, respectively, per ounce of gold produced, resulting in YTD 2024 C1 cash costs and AISC of $447 and $879 per ounce of gold produced.

Exploration activities at the Xavantina Operations during the quarter continued to focus on testing the down plunge extension of the Santo Antônio vein as well as drill testing the intersection of the Santo Antônio and Brás Veins. Regional surface exploration efforts focused on identifying additional gold systems in the vicinity of the Xavantina mine system.

Ero Copper Corp. September 30, 2024 MD&A | Page 8

2024 GUIDANCE

The Company is updating production guidance for both the Caraíba and Tucumã Operations, resulting in a consolidated copper production guidance for the year of 43,000 to 48,000 tonnes in concentrate.

Due to the anticipated delay in achieving commercial production at the Tucumã Operation, the Company is narrowing 2024 C1 cash cost guidance to only include the Caraíba Operations. The Company is reaffirming full-year C1 cash cost guidance for the Caraíba Operations of $1.80 to $2.00 per pound of copper produced. Positive factors, including improved concentrate treatment and refining charges secured as of May 2024, a higher gold byproduct credit, and a more favorable USD to BRL exchange rate, are expected to more than offset the impact of lower projected copper production.

At the Xavantina Operations, the Company is reaffirming increased full-year gold production guidance of 60,000 to 65,000 ounces, with similar production levels and unit cost performance expected in Q4 2024 compared to Q3 2024. Consequently, the Company is reaffirming its reduced cost guidance ranges, including C1 cash cost guidance of $450 to $550 per ounce of gold produced, and AISC guidance of $900 to $1,000 per ounce of gold produced.

The Company is also reaffirming consolidated 2024 capital expenditure guidance of $303 to $348 million.

2024 Production and Cost Guidance

The Company's cost guidance for 2024 assumes a foreign exchange rate of 5.00 BRL per USD, a gold price of $1,900 per ounce and a silver price of $23.00 per ounce for Q4 2024.

Original GuidanceCurrent Guidance
Consolidated Copper Production (tonnes)
Caraíba Operations
42,000 - 47,000
35,000 - 37,000
Tucumã Operation
17,000 - 25,000
8,000 - 11,000
Total
59,000 - 72,000
43,000 - 48,000
Caraíba Operations C1 Cash Cost(1) Guidance
$1.80 - $2.00
Unchanged
The Xavantina Operations
Au Production (ounces)
55,000 - 60,000
60,000 - 65,000
Gold C1 Cash Cost(1) Guidance
$550 - $650
$450 - $550
Gold AISC(1) Guidance
$1,050 - $1,150
$900 - $1,000

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 Annual Information Form and Management of Risks and Uncertainties in this MD&A for complete risk factors.
(1)     Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
Ero Copper Corp. September 30, 2024 MD&A | Page 9

REVIEW OF FINANCIAL RESULTS

The following table provides a summary of the financial results of the Company for Q3 2024 and Q3 2023. Tabular amounts are in thousands of US dollars, except share and per share amounts.

Three months ended September 30,
Notes20242023
Revenue1$124,837 $105,181 
Cost of sales2(71,128)(69,706)
Gross profit53,709 35,475 
Expenses
General and administrative3(12,628)(14,402)
Share-based compensation(4,859)1,185 
Write-down of exploration and evaluation asset(467)— 
Income before the undernoted
35,755 22,258 
Finance income781 2,976 
Finance expense4(4,039)(8,017)
Foreign exchange gain (loss)
517,246 (13,937)
Other expenses
(45)(1,276)
Income before income taxes
49,698 2,004 
Income tax (expense) recovery
Current (4,873)(3,317)
Deferred (3,458)4,124 
6(8,331)807 
Net income for the period
$41,367 $2,811 
Other comprehensive gain (loss)
Foreign currency translation gain (loss)
713,757 (29,046)
Comprehensive income (loss)
$55,124 $(26,235)
Net income (loss) per share attributable to owners of the Company
Basic$0.40 $0.03 
Diluted$0.39 $0.03 
Weighted average number of common shares outstanding
Basic103,239,881 93,311,434 
Diluted103,973,827 94,009,268 


Ero Copper Corp. September 30, 2024 MD&A | Page 10

Notes:

1.    Revenues from copper sales in Q3 2024 was $90.4 million (Q3 2023 - $76.1 million) on sale of 22.0 million lbs of copper (Q3 2023 - 22.2 million lbs) at an average realized price of $3.88 (Q3 2023 - $3.65) per lb. The increase in copper revenues was primarily attributed to higher average realized price, partially offset by lower quantity sold, at Caraíba.

Revenues from gold sales in Q3 2024 was $34.4 million (Q3 2023 - $29.0 million) on sale of 14,615 ounces of gold (Q3 2023 - 15,457 ounces) at an average realized price of $2,382 per ounce (Q3 2023 - $1,902 per ounce). The increase in gold revenues was attributable to higher realized gold price, partially offset by a decrease in sales volume.

2.    Cost of sales for Q3 2024 from copper sales was $59.9 million (Q3 2023 - $57.2 million) which primarily comprised of $16.7 million (Q3 2023 - $15.6 million) in depreciation and depletion, $13.2 million (Q3 2023 - $13.8 million) in salaries and benefits, $10.0 million (Q3 2023 - $9.6 million) in materials and consumables, $9.9 million (Q3 2023 - $7.4 million) in contracted services, $7.3 million (Q3 2023 - $7.8 million) in maintenance costs, $2.4 million (Q3 2023 - $2.2 million) in sales expenses, $2.2 million (Q3 2023 - $3.0 million) in utilities, and $1.9 million increase (Q3 2023 - $2.6 million decrease) in changes in inventories. The increase in cost of sales in Q3 2024 as compared to Q3 2023 was primarily attributable to a 12% increase in tonnes processed, resulting in higher contracted service costs and increased depreciation and depletion.

Cost of sales for Q3 2024 from gold sales was $11.2 million (Q3 2023 - $12.6 million) which primarily comprised of $4.5 million (Q3 2023 - $5.3 million) in depreciation and depletion, $2.5 million (Q3 2023 - $2.3 million) in salaries and benefits, $1.7 million (Q3 2023 - $1.6 million) in materials and consumables, $2.0 million (Q3 2023 - $1.7 million) in contracted services, $0.7 million (Q3 2023 - $0.6 million) in maintenance costs, and $0.6 million (Q3 2023 - $0.6 million) in utilities. The decrease in cost of sales as compared to Q3 2023 was primarily due to a 5% decrease in gold ounces sold, resulting in lower depreciation and depletion.

3.    General and administrative expenses for Q3 2024 was primarily comprised of $6.8 million (Q3 2023 - $8.6 million) in salaries and consulting fees, $2.5 million (Q3 2023 - $2.3 million) in office and administration expenses, $1.5 million (Q3 2023 - $1.6 million) in incentive payments, $1.0 million (Q3 2023 - $1.0 million) in other costs, and $0.5 million (Q3 2023 - $0.6 million) in accounting and legal costs. The decrease in general and administrative expenses was mainly attributed to reduction in consulting fees.

4.    Finance expense for Q3 2024 was $4.0 million (Q3 2023 - $8.0 million) and is primarily comprised of other finance expense of $2.4 million (Q3 2023 - $3.5 million), accretion of deferred revenue of $0.6 million (Q3 2023 - $0.8 million), accretion of asset retirement obligations of $0.6 million (Q3 2023 - $0.7 million), lease interest of $0.5 million (Q3 2023 - $0.3 million), and interest on loans and borrowings of nil (Q3 2023 - $2.8 million). Interest on loans and borrowings were net of $9.6 million (Q3 2023 - $4.4 million) in borrowing costs which were capitalized to projects in progress. The overall decrease in finance expense was attributable to an increase in capitalization of borrowing costs as a result of capital expenditures on construction projects.

5.    Foreign exchange gain for Q3 2024 was $17.2 million (Q3 2023 - $13.9 million loss). This amount is primarily comprised of $11.0 million (Q3 2023 - $10.0 million loss) in foreign exchange gain on USD denominated debt at MCSA for which the functional currency is the BRL and $9.8 million (Q3 2023 - $7.6 million loss) of unrealized foreign exchange gain on derivative contracts, partially offset by $3.4 million (Q3 2023 - $3.5 million gain) of realized foreign exchange loss on derivative contracts and other foreign exchange losses of $0.2 million (Q3 2023 - $0.1 million gains). The unrealized foreign exchange gain on USD denominated debt and on derivative contracts was a result of the 2% strengthening of the BRL against the USD during the period.

6.    In Q3 2024, the Company recognized $8.3 million in income tax expense (Q3 2023 a recovery of $0.8 million). The increase in income tax expense was primarily a result of higher income before taxes as compared to the same quarter of the prior year.

7.    The foreign currency translation gain is a result of a fluctuation of the BRL against the USD during Q3 2024, which strengthened from approximately 5.56 BRL per US dollar at the beginning of Q3 2024 to approximately 5.45 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. September 30, 2024 MD&A | Page 11

The following table provides a summary of the financial results of the Company for YTD 2024 and 2023. Tabular amounts are in thousands of US dollars, except share and per share amounts.

Nine months ended September 30,
Notes20242023
Revenue1$347,720 $311,066 
Cost of sales2(219,542)(196,075)
Gross profit128,178 114,991 
Expenses
General and administrative3(35,952)(40,269)
Share-based compensation(17,479)(8,741)
Write-down of exploration and evaluation asset4(11,212)— 
Income before the undernoted
63,535 65,981 
Finance income3,610 10,476 
Finance expense5(13,238)(20,538)
Foreign exchange (loss) gain
6(72,204)9,741 
Other (expenses) income
(2,354)1,224 
(Loss) income before income taxes
(20,651)66,884 
Income tax recovery (expense)
Current (11,079)(9,159)
Deferred 12,868 (473)
71,789 (9,632)
Net (loss) income for the period
$(18,862)$57,252 
Other comprehensive (loss) gain
Foreign currency translation (loss) gain
8(85,881)26,582 
Comprehensive (loss) income
$(104,743)$83,834 
Net (loss) income per share attributable to owners of the Company
Basic$(0.19)$0.61 
Diluted$(0.19)$0.60 
Weighted average number of common shares outstanding
Basic103,026,138 92,767,525 
Diluted103,026,138 93,643,940 
Ero Copper Corp. September 30, 2024 MD&A | Page 12

Notes:

1.    Revenues from copper sales in YTD 2024 amounted to $243.2 million (YTD 2023 - $237.4 million), reflecting the sale of 62.0 million lbs of copper compared to 68.7 million lbs of copper for YTD 2023. The increase in revenues was primarily due to a 6% higher realized copper price, partially offset by 10% lower copper sales resulting from lower copper grades, at Caraíba.

Revenues from gold sales in YTD 2024 amounted to $104.5 million (YTD 2023 - $73.7 million), reflecting the sale of 49,089 ounces of gold at a realized price of $2,156 per ounce, compared to 39,470 ounces of gold sold at a realized price of $1,889 per ounce in YTD 2023. The increase in revenues was driven by higher sales volume and improved gold prices compared to the prior year.

2.    Cost of sales for YTD 2024 from copper sales was $181.2 million (YTD 2023 - $164.0 million) which primarily consisted of $50.1 million (YTD 2023 - $44.2 million) in depreciation and depletion, $39.5 million (YTD 2023 - $37.7 million) in salaries and benefits, $28.7 million (YTD 2023 - $27.9 million) in materials and consumables, $26.0 million (YTD 2023 - $20.4 million) in contracted services, $21.6 million (YTD 2023 - $21.0 million) in maintenance costs, $7.9 million (YTD 2023 - $8.6 million) in utilities, and $6.1 million (YTD 2023 - $6.4 million) in sales expenses. The increase in cost of sales was primarily attributed to a 12% increase in tonnes processed, higher depreciation and depletion from an expanded depletable asset base, and increased labour costs from wage and other benefit increases.

Cost of sales for YTD 2024 from gold sales was $38.4 million (YTD 2023- $32.1 million) which primarily comprised of $15.8 million (YTD 2023 - $12.8 million) in depreciation and depletion, $7.6 million (YTD 2023 - $6.6 million) in salaries and benefits, $5.7 million (YTD 2023 - $4.5 million) in contracted services, $5.3 million (YTD 2023 - $4.5 million) in materials and consumables, $1.9 million (YTD 2023 - $1.4 million) in maintenance costs, and $1.8 million (YTD 2023 - $1.7 million) in utilities. The increase in cost of sales was mainly attributed to 24% increase in gold sales, accompanied with higher depreciation and depletion from increased sales and an expanded depreciable asset base.

3.    General and administrative expenses for YTD 2024 was primarily comprised of $19.8 million (YTD 2023 - $23.9 million) with respect to salaries and consulting fees, $7.0 million (YTD 2023 - $6.5 million) in office and administrative expenses, $4.2 million (YTD 2023 - $4.4 million) in incentive payments, $2.1 million (YTD 2023 - $2.9 million) in other general and administrative expenses, and $1.5 million (YTD 2023 - $1.5 million) in accounting and legal fees. The decrease in general and administrative expenses in YTD 2024 was primarily attributable to reduction in consulting fees.

4.    In YTD 2024, the Company recognized a write-down in exploration and evaluation assets of $11.2 million (YTD 2023 - nil), primarily from the termination of the Fides option agreement.

5.    Finance expense for YTD 2024 was $13.2 million (YTD 2023 - $20.5 million) and was primarily comprised of other finance expense of $8.2 million (YTD 2023 - $4.1 million), accretion of deferred revenue of $1.9 million (YTD 2023 - $2.3 million), accretion of the asset retirement obligations of $1.8 million (YTD 2023 - $2.0 million), lease interest of $1.4 million (YTD 2023 - $0.9 million), and nil (YTD 2023 - $11.2 million) from interest on loans and borrowings (net of capitalization of borrowing costs). During YTD 2024, $26.1 million (YTD 2023 - $10.0 million) in interest was capitalized to projects in progress. The overall decrease in finance expense was primarily attributable to higher interest capitalized as a result of capital expenditures incurred on various qualifying projects, partially offset by an increased interest on new loans and borrowings.

6.    Foreign exchange loss for YTD 2024 was $72.2 million (YTD 2023 - $9.7 million gain). This amount was primarily comprised of a foreign exchange loss of $56.7 million (YTD 2023 - $7.5 million gain) on USD denominated debt in MCSA, for which the functional currency is the BRL. In addition, the Company recognized a foreign exchange loss on unrealized derivative contracts of $15.6 million (YTD 2023 - $2.3 million loss), and realized foreign exchange loss on derivative contracts of $2.3 million (YTD 2023 - $7.2 million gain), partially offset by other foreign exchange gains of $2.4 million (YTD 2023 - $2.7 million losses). The fluctuation in foreign exchange gains/losses were primarily a result of increased volatility of the USD/BRL foreign exchange rates, which weakened 11.1% during YTD 2024.

7.    In YTD 2024, the Company recognized an $1.8 million income tax recovery (YTD 2023 - $9.6 million expense), The change was primarily a result of a net loss before income taxes due to unrealized foreign exchange losses.

8.    The foreign currency translation loss is a result of fluctuations of the BRL against the USD during YTD 2024, which weakened from approximately 4.84 BRL per US dollar at the beginning of 2024 to approximately 5.45 BRL per US
Ero Copper Corp. September 30, 2024 MD&A | Page 13

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.

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
Sep. 30,(1)
Jun. 30,(2)
Mar. 31,(3)
Dec. 31,(4)
Sep. 30,(5)
Jun. 30,(6)
Mar. 31,(7)
Dec. 31,(8)
20242024202420232023202320232022
Revenue$124.8 $117.1 $105.8 $116.4 $105.2 $104.9 $101.0 $116.7 
Cost of sales
$(71.1)$(73.8)$(74.6)$(74.6)$(69.7)$(65.5)$(60.8)$(64.0)
Gross profit
$53.7 $43.3 $31.2 $41.9 $35.5 $39.4 $40.1 $52.7 
Net income (loss) for period
$41.4 $(53.4)$(6.8)$37.1 $2.8 $29.9 $24.5 $22.5 
Income (loss) per share attributable to owners of the Company
- Basic$0.40 $(0.52)$(0.07)$0.37 $0.03 $0.32 $0.26 $0.24 
- Diluted$0.39 $(0.52)$(0.07)$0.37 $0.03 $0.32 $0.26 $0.24 
Weighted average number of common shares outstanding
- Basic103,239,881 103,082,363 102,769,444 98,099,791 93,311,434 92,685,916 92,294,045 91,522,358 
- Diluted103,973,827 103,082,363 102,769,444 98,482,755 94,009,268 93,643,447 93,218,281 92,551,916 

Notes:

1.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 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.

2.During Q2 2024, the Company recognized net loss of $53.4 million compared to net loss of $6.8 million in the preceding quarter. The increase in loss was primarily attributable to foreign exchange losses of $70.5 million compared to $19.0 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods. In addition, during the quarter, the Company terminated the Fides option agreement, resulting in a write-down in exploration and evaluation assets of $10.7 million.

3.During Q1 2024, the Company recognized net loss of $6.8 million compared to net income of $37.1 million in the preceding quarter. The decrease in income was primarily attributable to foreign exchange losses of $19.0 million compared to foreign exchange gains of $24.9 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods.

4.During Q4 2023, the Company recognized net income of $37.1 million compared to $2.8 million in the preceding quarter. The increase was primarily attributable to foreign exchange gains of $24.9 million compared to foreign exchange losses of $13.9 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods.

5.During Q3 2023, the Company recognized net income of $2.8 million compared to $29.9 million in the preceding quarter. The decrease was primarily attributable to foreign exchange losses of $13.9 million compared to foreign
Ero Copper Corp. September 30, 2024 MD&A | Page 14

exchange gain of $15.1 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods.

6.During Q2 2023, the Company recognized net income of $29.9 million compared to $24.5 million in the preceding quarter. The increase was primarily attributable to an increase in foreign exchange gain and the recognition of an unrealized gain in copper derivative contracts.

7.During Q1 2023, the Company recognized net income of $24.5 million compared to $22.5 million in the preceding quarter. The increase was primarily attributable to an increase in foreign exchange gain, a reduction in general and administrative expenses, and a reduction in finance expense. In the prior quarter, the Company recognized a $3.3 million expected credit loss provision.

8.During Q4 2022, the Company recognized net income of $22.5 million compared to $4.0 million in the preceding quarter. The increase was primarily attributable to a $29.9 million increase in gross profit as a result of 13% increase in copper production, partially offset by higher share-based payment expenses and a $3.3 million expected credit loss provision recognized in relation to payment arrangement with PMA.


LIQUIDITY, CAPITAL RESOURCES, AND CONTRACTUAL OBLIGATIONS

Liquidity

As at September 30, 2024, the Company had cash and cash equivalents of $20.2 million and available liquidity of $125.2 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 $91.5 million from December 31, 2023. The Company’s cash flows from operating, investing, and financing activities during 2024 are summarized as follows:

•Cash used in investing activities of $259.0 million, including:
◦$256.0 million of additions to mineral property, plant and equipment; and
◦$4.8 million of additions to exploration and evaluation assets;
net of:
◦$1.9 million in proceeds from interest received.
Partially offset by:
•Cash from operating activities of $84.6 million, primarily consists of:
◦$157.0 million of adjusted EBITDA (see Non-IFRS Measures); and
◦$4.4 million of additional advances from the NX Gold Precious Metal Purchase Agreement;
net of:
◦$42.1 million of net change in non-cash working capital items;
◦$18.1 million of amortization of non-cash deferred revenues; and
◦$5.6 million of income taxes paid.
•Cash from financing activities of $82.8 million, primarily consists of:
◦$147.3 million of new loans and borrowings; and
◦$8.3 million of proceeds from exercise of stock options.
Ero Copper Corp. September 30, 2024 MD&A | Page 15

net of:
◦$30.2 million of principal repayments on loans and borrowings;
◦$29.4 million of interest paid on loans and borrowings; and
◦$10.1 million of lease payments.

As at September 30, 2024, the Company had working capital deficit of $60.9 million.


Capital Resources

At September 30, 2024, the Company had available liquidity of $125.2 million, including $20.2 million in cash and cash equivalents, $80.0 million of undrawn availability under its senior secured revolving credit facility and $25.0 million of undrawn availability under its copper repayment facility.

In May 2024, to support the commencement of production and associated working capital needs at the Tucumã Project, the Company entered into a $50.0 million non-priced copper prepayment facility, structured by the Bank of Montreal and with participation by CIBC Capital Markets. This facility will be repaid over 27 equal monthly installments, beginning in October 2024, through the delivery of 272 tonnes of copper each month. 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. The copper to be delivered by the Company will be in the form of LME Copper Warrants. Through the end of 2024, the Company has the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million.

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, including the capital expenditures to complete the Tucumã Project, and other initiatives, for the foreseeable future.

In 2023, the senior credit facility was amended to increase its limit from $75.0 million to $150.0 million with maturity extended from March 2025 to December 2026 ("Amended Senior Credit Facility"). The Amended Senior Credit Facility bears interest on a sliding scale of SOFR plus an applicable margin of 2.00% to 4.50% depending on the Company's consolidated leverage ratio. Commitment fees for the undrawn portion of the Amended Senior Credit Facility is also based on a sliding scale ranging from 0.45% to 1.01%.

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, MCSA, Ero Gold, and NX Gold, 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.


Ero Copper Corp. September 30, 2024 MD&A | Page 16


Contractual Obligations and Commitments

The Company has a precious metals purchase agreement 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 thoroughly 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 September 30, 2024 and December 31, 2023:

September 30, 2024December 31, 2023
Cash and cash equivalents20,229 $111,738 
Accounts receivable20,139 5,710 
Derivatives— 11,254 
Note receivable10,255 17,413 
Deposits and other assets10,401 9,484 
$61,024 $155,599 

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

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

In November 2022, Paranapanema S/A ("PMA"), one of the Company's customers in Brazil, filed for bankruptcy protection. According to PMA, the action was attributed to working capital challenges following an operational halt at one of their facilities. Progress was noted in August 2023 when PMA and its creditors agreed on a judicial recovery plan, which subsequently received approval from the judicial recovery court in November 2023. As a preferred supplier to PMA, the Company has entered into a note receivable arrangement with PMA. The arrangement is excluded from the judicial recovery process and provides the Company with certain judicial guarantees. According to the note receivable
Ero Copper Corp. September 30, 2024 MD&A | Page 17

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 September 30, 2024, the gross amount of accounts and note receivable from PMA was $23.2 million (December 31, 2023 - $25.2 million). PMA continued to miss its installment due in 2024, and is currently in default of the agreement. Accordingly, the note receivable is considered credit impaired, and the Company increased the expected credit loss provision by $1.8 million and $6.3 million in the three and nine months ended September 30, 2024, respectively. After adjusting for credit loss provision and present value discount of $13.0 million (December 31, 2023 - $7.7 million), the amortized cost of the note receivable at September 30, 2024 was $10.3 million (December 31, 2023 - $17.4 million), of which $5.1 million (December 31, 2023 - $8.3 million) was classified as current and $5.2 million (December 31, 2023 - $9.1 million) as non-current.


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 their 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 September 30, 2024:

Non-derivative financial liabilitiesCarrying
value		Contractual cash flowsUp to
12 months		1 - 2
years		3 - 5
years		More than
5 years
Loans and borrowings (including interest)$538,910 $705,854 $70,136 $170,718 $465,000 $— 
Accounts payable and accrued liabilities113,910 113,910 113,910 — — — 
Other non-current liabilities13,693 29,279 — 28,184 709 386 
Leases20,427 20,404 11,705 7,721 927 51 
Total$686,940 $869,447 $195,751 $206,623 $466,636 $437 

As at September 30, 2024, the Company has capital commitments, which is net of advances to suppliers, of $65.3 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.

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

Foreign exchange currency risk
Ero Copper Corp. September 30, 2024 MD&A | Page 18


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 September 30, 2024 relates to $67.3 million (December 31, 2023 – $17.2 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 September 30, 2024 on $485.3 million of intercompany loan balances (December 31, 2023 - $342.2 million) which have contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at September 30, 2024 by 10% and 20%, would have decreased (increased) pre-tax net loss by $55.2 million and $110.4 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 September 30, 2024 is summarized as follows:


PurposeNotional AmountDenominationWeighted average floorWeighted average cap / forward priceMaturities
Operational costs$307.5 millionUSD/BRL5.236.10Oct 2024 - Dec 2025
Capital expenditures$19.5 millionUSD/BRL5.115.23Oct 2024 - Dec 2024
Total$327.0 millionUSD/BRL5.226.05Oct 2024 - Dec 2025

The aggregate fair value of the Company's foreign exchange derivatives was a net liability of $4.1 million (December 31, 2023 - asset of $11.3 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 gain of $9.8 million and a loss of $15.6 million for the three and nine months ended September 30, 2024, respectively (a loss of $7.5 million and $2.3 million for the three and nine months ended September 30, 2023, respectively), which have been recognized in foreign exchange gain (loss).

In addition, during the three and nine months ended September 30, 2024, the Company recognized a realized loss of $3.4 million and $2.3 million, respectively (realized gain of $3.5 million and $7.2 million for the three and nine months ended September 30, 2023, respectively), related to the settlement of foreign exchange derivatives.

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. September 30, 2024 MD&A | Page 19

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 Credit Facility and Brazilian Real denominated bank loans. Based on the Company’s net exposure at September 30, 2024, 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.

At September 30, 2024, the Company has entered into zero-cost gold collar contracts on 2,500 ounces of gold per month from January 2025 to December 2025, representing just over 50% of its estimated production volumes for the period. As of September 30, 2024, the fair value of these contracts was a net liability of $0.4 million (December 31, 2023 - nil). The fair value of gold collar contracts was determined based on option pricing models, forward gold price, and information provided by counter party. At September 30, 2024, the Company does not have any outstanding copper collar contracts (December 31, 2023 - liability of $0.6 million).

During the three and nine months ended September 30, 2024, the Company recognized an unrealized gain of $0.4 million and an unrealized impact of nil (unrealized loss of $1.8 million and unrealized gain of $0.8 million for the three and nine months ended September 30, 2023), respectively, on its commodity derivatives.
During the three and nine months ended September 30, 2024, the Company also recognized a realized loss of $0.8 million and a realized loss of $2.6 million, respectively, in relation to its commodity derivatives in other income or loss (nil and $1.8 million realized loss for three and nine months ended September 30, 2023).

At September 30, 2024, the Company had provisionally priced sales that are exposed to commodity price changes. Based on the Company’s net exposure at September 30, 2024, a 10% change in the price of copper would have changed pre-tax net income (loss) $1.0 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 September 30, 2024, the Company had no material off-balance sheet arrangements.


Outstanding Share Data

As of November 5, 2024, the Company had 103,304,418 common shares issued and outstanding.


Ero Copper Corp. September 30, 2024 MD&A | Page 20

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, 2023 and condensed consolidated interim financial statements for the three and nine months ended September 30, 2024. 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 commencement of commercial production. Certain of accounting policies, such as derivative instruments, deferred revenue, carrying amounts of mineral properties and associated mine closure and reclamation costs, provision for mine closure and reclamation costs, income tax including tax uncertainties, expected credit losses involve critical accounting estimates. Certain of these estimates are dependent on mineral reserves and resource estimates. Changes in estimates of mineral reserves and resources could impact depreciation and depletion rates, asset carrying amounts and the provisions for mine closure and reclamation costs. The Company estimates its mineral reserves and resources based on information compiled by competent individuals. Estimates of mineral reserves and resources are 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 estimating mineral reserves, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the estimation 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. September 30, 2024 MD&A | Page 21

CAPITAL EXPENDITURES

The following table presents capital expenditures at the Company’s operations on an accrual basis and are net of any sales and value-added taxes.
2024 - Q32024 - Q22024 - Q12024 - YTD
Caraíba Operations
Growth$21,266 $13,987 $19,731 $54,984 
Sustaining19,373 19,462 14,267 53,102 
Exploration5,158 4,960 4,599 14,717 
Deposit on Projects(8,593)(3,579)3,007 (9,165)
Total, Caraíba Operations$37,204 $34,830 $41,604 $113,638 
Tucumã Project
Growth4,520 48,151 56,781 109,452 
Sustaining3,994 — — 3,994 
Capitalized ramp-up costs14,236 4,237 — 18,473 
Exploration1,222 912 10 2,144 
Deposit on Projects(455)(13,570)(6,752)(20,777)
Total, Tucumã Project$23,517 $39,730 $50,039 $113,286 
Xavantina Operations
Growth2,182 2,081 57 4,320 
Sustaining2,730 2,769 3,064 8,563 
Exploration1,186 1,133 1,314 3,633 
Deposit on Projects21 151 (29)143 
Total, Xavantina Operations$6,119 $6,134 $4,406 $16,659 
Corporate and Other
Sustaining— 112 — 112 
Exploration2,967 545 1,134 4,646 
Deposit on Projects17 2 (10)9 
Total, Corporate and Other$2,984 $659 $1,124 $4,767 
Consolidated
Growth27,968 64,219 76,569 168,756 
Sustaining26,097 22,343 17,331 65,771 
Capitalized ramp-up costs14,236 4,237 — 18,473 
Exploration10,533 7,550 7,057 25,140 
Deposit on Projects(9,010)(16,996)(3,784)(29,790)
Total, Consolidated Capital Expenditures$69,824 $81,353 $97,173 $248,350 

Ero Copper Corp. September 30, 2024 MD&A | Page 22


2024 - Q32024 - Q22024 - Q12024 - YTD
Total, Consolidated Capital Expenditures$69,824 $81,353 $97,173 $248,350 
Add (less):
Additions to exploration and evaluation assets(3,351)(293)(1,201)(4,845)
Additions to right-of-use assets5,808 3,800 4,034 13,642 
Capitalized depreciation234 (426)574 382 
Realized foreign exchange (loss) gain on capital expenditure hedges(1,391)(858)1,688 (561)
Total, additions per Mineral Properties, Plant and Equipment note$71,124 $83,576 $102,268 $256,968 


ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES

The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, 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 and Copper C1 Cash Cost including Foreign Exchange Hedges

Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges are non-IFRS performance measures 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, incentive payments and certain tax credits associated with sales invoiced to the Company's Brazilian customer.

Copper C1 cash cost including foreign exchange hedges is calculated as C1 cash costs, adjusted for realized gains or losses from its operational foreign exchange hedges, divided by total pounds of copper produced during the period. Although the Company does not apply hedge accounting in its consolidated financial statements and recognizes these contracts at fair value through profit or loss,
Ero Copper Corp. September 30, 2024 MD&A | Page 23

the Company believes it appropriate to present cash costs including the impact of realized gains and losses as these contracts were entered into to mitigate the impact of changes in exchange rates.

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.

Reconciliation:2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Cost of production
$40,149 $41,945 $39,345 $124,321 $113,397 
Add (less):
Transportation costs & other1,283 1,283 1,614 3,818 4,686 
Treatment, refining, and other3,170 4,058 6,574 12,398 20,991 
By-product credits(6,584)(3,431)(3,022)(12,455)(9,536)
Incentive payments(1,138)(1,174)(1,609)(3,511)(3,975)
Net change in inventory
(1,220)(468)2,835 (5,581)2,973 
Foreign exchange translation and other3 21 (171)17 (169)
C1 cash costs(1)
35,663 42,234 45,566 119,007 128,367 
(Gain) loss on foreign exchange hedges1,965 46 (3,458)1,735 (7,232)
C1 cash costs including foreign exchange hedges$37,628 $42,280 $42,108 $120,742 $121,135 

2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Costs
Mining
$26,529 $27,881 $27,258 $79,666 $76,262 
Processing7,069 7,927 8,362 22,173 22,559 
Indirect5,479 5,799 6,394 17,225 18,091 
Production costs39,077 41,607 42,014 119,064 116,912 
By-product credits(6,584)(3,431)(3,022)(12,455)(9,536)
Treatment, refining and other3,170 4,058 6,574 12,398 20,991 
C1 cash costs(1)
35,663 42,234 45,566 119,007 128,367 
(Gain) loss on foreign exchange hedges1,965 $46 $(3,458)1,735 (7,232)
C1 cash costs including foreign exchange hedges$37,628 $42,280 $42,108 $120,742 $121,135 

(1)     Copper C1 cash costs for the three and nine months ended September 30, 2024 exclude Tucumã Operation's results as the mine has not yet achieved commercial production.

Ero Copper Corp. September 30, 2024 MD&A | Page 24

2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Costs per pound
Total copper produced (lbs, 000)21,871 19,548 23,734 59,257 70,761 
Mining$1.22 $1.42 $1.15 $1.34 $1.08 
Processing$0.32 $0.41 $0.35 $0.38 $0.32 
Indirect$0.25 $0.30 $0.27 $0.29 $0.26 
By-product credits$(0.30)$(0.18)$(0.13)$(0.21)$(0.13)
Treatment, refining and other$0.14 $0.21 $0.28 $0.21 $0.30 
Copper C1 cash costs(1)
$1.63 $2.16 $1.92 $2.01 $1.83 
Loss (gain) on foreign exchange hedges$0.09 $— $(0.15)$0.03 $(0.10)
Copper C1 cash costs including foreign exchange hedges$1.72 $2.16 $1.77 $2.04 $1.73 

(1)     Copper C1 cash costs for the three and nine months ended September 30, 2024 exclude Tucumã Operation's results as the mine has not yet achieved commercial production.

Realized Copper Price

Realized copper price is a non-IFRS ratio that 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 the realized copper sales in each reporting period.

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

Reconciliation:2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Copper revenue(1)
$87,305 $78,943 $76,136 $240,104 $237,366 
less: by-product credits(6,584)(3,431)(3,022)(12,455)(9,536)
Net copper revenue80,721 75,512 73,114 227,649 227,830 
add: treatment, refining and other3,170 4,058 6,574 12,398 20,991 
add: royalty taxes1,489 1,428 1,418 4,276 4,548 
Gross copper revenue85,380 80,998 81,106 244,323 253,369 
Total copper sold in concentrate (lbs, 000)21,980 19,192 22,244 62,031 68,709 
Realized copper price(2)
$3.88 $4.22 $3.65 $3.94 $3.69 

(1) Copper revenue includes provisional price and volume adjustments
(2) Realized Copper Price for the three and nine months ended September 30, 2024 exclude Tucumã Operation's results as the mine has not yet achieved commercial production.
Ero Copper Corp. September 30, 2024 MD&A | Page 25


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 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 in supplemental 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 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 in supplement to IFRS measures.

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:
2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Cost of production
$6,220 $7,580 $6,323 $21,055 $18,087 
Add (less):
Incentive payments(378)(226)(320)(1,047)(1,038)
Net change in inventory1,378 (322)213 1,320 797 
By-product credits(232)(259)(240)(680)(579)
Smelting and refining
79 97 101 266 240 
Foreign exchange translation and other
203 215 453 650 510 
C1 cash costs$7,270 $7,085 $6,530 $21,564 $18,017 
Site general and administrative1,321 1,350 1,304 4,024 3,874 
Accretion of mine closure and rehabilitation provision82 88 112 262 328 
Sustaining capital expenditure2,784 2,653 4,258 8,691 10,801 
Sustaining lease payments1,801 1,908 1,832 5,831 5,232 
Royalties and production taxes686 862 808 2,058 1,702 
AISC$13,944 $13,946 $14,844 $42,430 $39,954 
Ero Copper Corp. September 30, 2024 MD&A | Page 26

2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Costs
Mining
$3,852 $3,705 $3,140 $11,377 $8,724 
Processing2,419 2,277 2,165 6,955 6,118 
Indirect1,152 1,265 1,364 3,646 3,514 
Production costs7,423 7,247 6,669 21,978 18,356 
Smelting and refining costs
79 97 101 266 240 
By-product credits(232)(259)(240)(680)(579)
C1 cash costs$7,270 $7,085 $6,530 $21,564 $18,017 
Site general and administrative1,321 1,350 1,304 4,024 3,874 
Accretion of mine closure and rehabilitation provision82 88 112 262 328 
Sustaining capital expenditure2,784 2,653 4,258 8,691 10,801 
Sustaining leases1,801 1,908 1,832 5,831 5,232 
Royalties and production taxes686 862 808 2,058 1,702 
AISC$13,944 $13,946 $14,844 $42,430 $39,954 
Costs per ounce
Total gold produced (ounces)13,485 16,555 17,579 48,274 42,355 
Mining$286 $224 $179 $236 $206 
Processing$179 $138 $123 $144 $144 
Indirect$85 $76 $78 $76 $83 
Smelting and refining$6 $6 $6 $6 $6 
By-product credits$(17)$(16)$(15)$(15)$(14)
Gold C1 cash cost$539 $428 $371 $447 $425 
Gold AISC$1,034 $842 $844 $879 $943 

Ero Copper Corp. September 30, 2024 MD&A | Page 27

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)2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
NX Gold revenue
$34,433 $38,147 $29,046 $104,517 $73,701 
less: by-product credits (232)(259)(240)(680)(579)
Gold revenue, net $34,201 $37,888 $28,806 $103,837 $73,122 
add: smelting, refining, and other charges619 761 588 1,985 1,452 
Gold revenue, gross$34,820 $38,649 $29,394 $105,822 $74,574 
- spot (cash)$25,718 $31,775 $23,003 $82,022 $57,519 
- stream (cash)$2,047 $1,789 $1,383 $5,737 $3,796 
- stream (amortization of deferred revenue)$7,055 $5,085 $5,008 $18,063 $13,259 
Total gold ounces sold14,615 17,621 15,457 49,089 39,470 
- spot10,425 13,785 11,867 36,508 29,612 
- stream4,190 3,836 3,590 12,581 9,858 
Realized gold price (per ounce)$2,382 $2,193 $1,902 $2,156 $1,889 
- spot$2,467 $2,305 $1,938 $2,247 $1,942 
- stream (cash + amortization of deferred revenue)$2,172 $1,792 $1,780 $1,892 $1,730 
- cash (spot cash + stream cash)$1,900 $1,905 $1,578 $1,788 $1,553 

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 required in determination of EBITDA for covenant calculation purposes.
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.

Ero Copper Corp. September 30, 2024 MD&A | Page 28

Reconciliation:
2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Net Income (Loss)
$41,367 $(53,399)$2,811 $(18,862)$57,252 
Adjustments:
Finance expense
4,039 4,565 8,017 13,238 20,538 
Finance income
(781)(1,361)(2,976)(3,610)(10,476)
Income tax expense (recovery)
8,331 (8,267)(807)(1,789)9,632 
Amortization and depreciation
21,555 22,294 21,299 67,145 58,044 
EBITDA
$74,511 $(36,168)$28,344 $56,122 $134,990 
Foreign exchange (gain) loss
(17,246)70,454 13,937 72,204 (9,741)
Share based compensation4,859 6,075 (1,185)17,479 8,741 
Write-down of exploration and evaluation asset467 10,745 — 11,212 — 
Unrealized (gain) loss on commodity derivatives
(360)436 1,814 12 (840)
Adjusted EBITDA$62,231 $51,542 $42,910 $157,029 $133,150 

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.


Ero Copper Corp. September 30, 2024 MD&A | Page 29

Reconciliation:
2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Net income (loss) as reported attributable to the owners of the Company
$40,857 $(53,247)$2,525 $(19,531)$56,255 
Adjustments:
Share based compensation4,859 6,075 (1,185)17,479 8,741 
Unrealized foreign exchange (gain) loss on USD denominated balances in MCSA
(11,860)48,517 9,481 47,914 (4,988)
Unrealized foreign exchange (gain) loss on foreign exchange derivative contracts
(9,807)16,006 7,530 15,503 2,300 
Write-down of exploration and evaluation asset465 10,745 — 11,210 — 
Unrealized (gain) loss on commodity derivatives
(367)434 1,808 3 (836)
Tax effect on the above adjustments3,431 (9,904)(2,873)(9,601)540 
Adjusted net income attributable to owners of the Company$27,578 $18,626 $17,286 $62,977 $62,012 
Weighted average number of common shares
Basic103,239,881 103,082,363 93,311,434 103,026,138 92,767,525 
Diluted103,973,827 103,961,615 94,009,268 103,742,304 93,643,940 
Adjusted EPS
Basic$0.27 $0.18 $0.19 $0.61 $0.67 
Diluted$0.27 $0.18 $0.18 $0.61 $0.66 

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.

September 30, 2024June 30, 2024December 31, 2023September 30, 2023
Current portion of loans and borrowings$39,383 $39,889 $20,381 $11,764 
Long-term portion of loans and borrowings499,527486,919405,852407,656
Less:
Cash and cash equivalents(20,229)(44,773)(111,738)(44,757)
Short-term investments— — — (42,843)
Net debt (cash) $518,681 $482,035 $314,495 $331,820 
Ero Copper Corp. September 30, 2024 MD&A | Page 30

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.

September 30, 2024June 30, 2024December 31, 2023September 30, 2023
Current assets$126,808 $124,554 $199,487 $174,113 
Less: Current liabilities(187,708)(182,143)(173,800)(141,284)
Working (deficit) capital
$(60,900)$(57,589)$25,687 $32,829 
Cash and cash equivalents20,229 44,773 111,738 44,757 
Short-term investments— — — 42,843 
Available undrawn revolving credit facilities80,000 100,000 150,000 150,000 
Available undrawn prepayment facilities(1)
25,000 25,000 — — 
Available liquidity$125,229 $169,773 $261,738 $237,600 

(1) In May 2024, the Company entered into a $50.0 million non-priced copper prepayment facility arrangement. Through the end of 2024, the Company has the option to increase the size of the facility from $50.0 million to $75.0 million.

DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company’s management, with the participation of the CEO 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.

Ero Copper Corp. September 30, 2024 MD&A | Page 31

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 nine months ended September 30, 2024.


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 “Mineral Resource and Mineral Reserve Estimate of the Xavantina Operations, Nova Xavantina”, dated May 12, 2023 with an effective date of October 31, 2022, prepared by Porfirio Cabaleiro Rodriguez, FAIG, Leonardo de Moraes Soares, MAIG and Guilherme Gomides Ferreira, MAIG, all of GE21 (the “Xavantina 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 “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., Erin L. Patterson, P.E. and Scott C. Elfen, P.E. all of Ausenco Engineering Canada Inc. (or its affiliate Ausenco Engineering USA South Inc. in the case of Ms. Patterson), Carlos 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. and 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. Each of Kevin Murray, P. Eng., Erin L. Patterson, P.E. and Scott C. Elfen, P.E., and Carlos Guzmán, FAusIMM RM CMC are “independent” of the Company within the meaning of NI 43-101. 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.

Reference should be made to the full text of the Caraíba Operations Technical Report, the Xavantina Operations Technical Report and the Tucumã Project Technical Report, each of which is available for review on the Company's website at www.erocopper.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. 3219148) and Resource Manager of the Company who is a “qualified person” within the meanings of NI 43-101.

Ero Copper Corp. September 30, 2024 MD&A | Page 32

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-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 production, operating cost and capital expenditure guidance; targeting additional mineral resources and expansion of deposits; 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 and the Tucumã Project Technical Report; the Company’s expectations, strategies and plans for the Caraíba Operations, the Xavantina Operations and the Tucumã Project, including the Company’s planned exploration, development, construction and production activities; the Company's plans for the Furnas Project; the results of future exploration and drilling; estimated completion dates for certain milestones; successfully adding or upgrading mineral resources and successfully developing new deposits; the costs and timing of future exploration, development and construction including but not limited to the Deepening Extension Project at the Caraíba Operations and the Tucumã Project; the timing and amount of future production at the Caraíba Operations, the Xavantina Operations and the Tucumã Project; expectations regarding the Company's ability to manage risks related to future copper price fluctuations and volatility; future financial or operating performance and condition of the Company and its business, operations and properties, including expectations regarding liquidity, capital structure, competitive position and payment of dividends; expectations regarding future currency exchange rates; expected concentrate treatment and refining charges; gold by-product credits and USD to BRL exchange rate; 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 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
Ero Copper Corp. September 30, 2024 MD&A | Page 33

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 and the Tucumã 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 and interest 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 (including COVID-19), 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.

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

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. In particular, and without limiting the generality of the foregoing, this MD&A 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
Ero Copper Corp. September 30, 2024 MD&A | Page 34

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.


ADDITIONAL INFORMATION

Additional information about Ero and its business activities, including the AIF, is available under the Company’s profile at www.sedarplus.ca and www.sec.gov.
Ero Copper Corp. September 30, 2024 MD&A | Page 35

    









logo_cmyk-coppera.jpg

CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS


FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2024 AND 2023













    


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




Ero Copper Corp.
Condensed Consolidated Statements of Financial Position
(Unaudited, Amounts in thousands of US Dollars)
    
Notes
September 30, 2024
December 31, 2023
ASSETS
Current
Cash and cash equivalents$20,229 $111,738 
Accounts receivable20,139 5,710 
Inventories442,921 42,254 
Income tax receivable 3,113 500 
Other current assets540,406 39,285 
126,808 199,487 
Non-Current
Mineral properties, plant and equipment61,334,266 1,251,998 
Exploration and evaluation assets718,618 29,936 
Deferred income tax assets 4,505 1,315 
Deposits and other non-current assets828,325 28,952 
1,385,714 1,312,201 
Total Assets$1,512,522 $1,511,688 
LIABILITIES
Current
Accounts payable and accrued liabilities9$113,910 $120,704 
Current portion of loans and borrowings1039,383 20,381 
Current portion of deferred revenue1117,011 17,159 
Income taxes payable2,375 3,997 
Current portion of derivatives193,268 563 
Current portion of lease liabilities11,761 10,996 
187,708 173,800 
Non-Current
Loans and borrowings10499,527 405,852 
Deferred revenue1145,642 58,390 
Provision for rehabilitation and closure costs 24,859 26,687 
Deferred income tax liabilities— 10,863 
Lease liabilities8,666 8,607 
Other non-current liabilities1229,351 18,158 
608,045 528,557 
Total Liabilities795,753 702,357 
SHAREHOLDERS’ EQUITY
Share capital13282,910 271,336 
Equity reserves(101,013)(16,616)
Retained earnings529,999 549,530 
Equity attributable to owners of the Company711,896 804,250 
Non-controlling interests4,873 5,081 
716,769 809,331 
Total Liabilities and Equity$1,512,522 $1,511,688 

Commitments (Notes 7, 11 and 21);
APPROVED ON BEHALF OF THE BOARD:
"David Strang", 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 (Loss)
(Unaudited, Amounts in thousands of US Dollars, except share and per share amounts)
Three months ended September 30,Nine months ended September 30,
Notes2024202320242023
Revenue14$124,837 $105,181 $347,720 $311,066 
Cost of sales15(71,128)(69,706)(219,542)(196,075)
Gross profit
53,709 35,475 128,178 114,991 
Expenses
General and administrative16(12,628)(14,402)(35,952)(40,269)
Share-based compensation
13 (e)
(4,859)1,185 (17,479)(8,741)
Write-down of exploration and evaluation asset7(467)— (11,212)— 
Income before the undernoted
35,755 22,258 63,535 65,981 
Finance income781 2,976 3,610 10,476 
Finance expense17(4,039)(8,017)(13,238)(20,538)
Foreign exchange gain (loss)
1817,246 (13,937)(72,204)9,741 
Other (expenses) income
(45)(1,276)(2,354)1,224 
Income (loss) before income taxes
49,698 2,004 (20,651)66,884 
Current income tax expense(4,873)(3,317)(11,079)(9,159)
Deferred income tax (expense) recovery(3,458)4,124 12,868 (473)
Income tax (expense) recovery
 (8,331)807 1,789 (9,632)
Net income (loss) for the period
$41,367 $2,811 $(18,862)$57,252 
Other comprehensive gain (loss)
Foreign currency translation gain (loss)
13,757 (29,046)(85,881)26,582 
Comprehensive income (loss)
$55,124 $(26,235)$(104,743)$83,834 
Net income (loss) attributable to:
Owners of the Company40,857 2,525 (19,531)56,255 
Non-controlling interests510 286 669 997 
$41,367 $2,811 $(18,862)$57,252 
Comprehensive income (loss) attributable to:
Owners of the Company54,487 (26,300)(104,691)82,649 
Non-controlling interests637 65 (52)1,185 
$55,124 $(26,235)$(104,743)$83,834 
Net income (loss) per share attributable to owners of the Company
Basic
13 (f)
$0.40 $0.03 $(0.19)$0.61 
Diluted
13 (f)
$0.39 $0.03 $(0.19)$0.60 
Weighted average number of common shares outstanding
Basic
13 (f)
103,239,881 93,311,434 103,026,138 92,767,525 
Diluted
13 (f)
103,973,827 94,009,268 103,026,138 93,643,940 
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 September 30,Nine months ended September 30,
Notes2024202320242023
Cash Flows from Operating Activities
Net income (loss) for the period
$41,367 $2,811 $(18,862)$57,252 
Adjustments for:
Amortization and depreciation21,555 21,299 67,145 58,044 
Income tax expense (recovery)
8,331 (807)(1,789)9,632 
Amortization of deferred revenue
14
(7,055)(5,009)(18,063)(13,259)
Share-based compensation4,859 (1,185)17,479 8,741 
Finance income(781)(2,976)(3,610)(10,476)
Finance expenses4,039 8,017 13,238 20,538 
Foreign exchange (gain) loss
(17,170)13,237 67,655 (11,242)
Write-down of exploration and evaluation asset7467 — 11,212 — 
Other844 1,694 3,136 1,605 
Changes in non-cash working capital items202,234 3,426 (42,139)(9,910)
58,690 40,507 95,402 110,925 
Advance from NX Gold PMPA
11
3,249 — 4,354 2,439 
Derivative contract settlements(4,575)3,458 (5,285)5,447 
Provision settlements(2,460)(886)(4,218)(2,343)
Income taxes paid(2,229)(1,221)(5,631)(2,766)
52,675 41,858 84,622 113,702 
Cash Flows used in Investing Activities
Additions to mineral properties, plant and equipment(74,480)(119,134)(256,013)(323,347)
Additions to exploration and evaluation assets(3,351)(2,254)(4,845)(11,263)
Proceeds from short-term investments and interest received467 16,472 1,865 148,563 
Purchase of short-term investments— — — (40,000)
(77,364)(104,916)(258,993)(226,047)
Cash Flows used in Financing Activities
Lease liability payments(3,400)(2,707)(10,050)(8,226)
New loans and borrowings, net of transaction costs1020,722 952 147,266 12,760 
Loans and borrowings repaid10(3,939)(1,873)(30,216)(5,665)
Interest paid on loans and borrowings10(14,642)(13,409)(29,376)(26,943)
Other finance expenses paid(1,026)(1,266)(3,129)(4,098)
Proceeds from exercise of stock options1,242 2,321 8,325 10,597 
(1,043)(15,982)82,820 (21,575)
Effect of exchange rate changes on cash and cash equivalents1,188 (585)42 975 
Net decrease in cash and cash equivalents
(24,544)(79,625)(91,509)(132,945)
Cash and cash equivalents - beginning of period
44,773 124,382 111,738 177,702 
Cash and cash equivalents - end of period
$20,229 $44,757 $20,229 $44,757 
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 CapitalEquity Reserves
NotesNumber of
shares		AmountContributed
Surplus		Foreign
Exchange 		Retained
Earnings		TotalNon-controlling
interest		Total equity
Balance, December 31, 2022
92,182,633 $148,055 $11,185 $(77,374)$456,726 $538,592 $3,573 $542,165 
Income for the period
— — — — 56,255 56,255 997 57,252 
Other comprehensive income for the period
— — — 26,394 — 26,394 188 26,582 
Total comprehensive income for the period
— — — 26,394 56,255 82,649 1,185 83,834 
Shares issued for:
Exercise of options1,254,942 15,076 (4,479)— — 10,597 — 10,597 
Share-based compensation
13 (e)
— — 1,923 — — 1,923 — 1,923 
Dividends to non-controlling interest— — — — — — (233)(233)
Balance, September 30, 2023
93,437,575 $163,131 $8,629 $(50,980)$512,981 $633,761 $4,525 $638,286 
Balance, December 31, 2023
102,747,558 $271,336 $8,497 $(25,113)$549,530 $804,250 $5,081 $809,331 
Income (loss) for the period
— — — — (19,531)(19,531)669 (18,862)
Other comprehensive loss for the period
— — — (85,160)— (85,160)(721)(85,881)
Total comprehensive loss for the period
— — — (85,160)(19,531)(104,691)(52)(104,743)
Shares issued for:
Exercise of options549,491 11,574 (3,249)— — 8,325 — 8,325 
Share-based compensation
13 (e)
— — 4,012 — — 4,012 — 4,012 
Dividends to non-controlling interest— — — — — — (156)(156)
Balance, September 30, 2024
103,297,049 $282,910 $9,260 $(110,273)$529,999 $711,896 $4,873 $716,769 




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 Participaçoes Ltda. 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 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, 2023.

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, 2023, 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 November 5, 2024.

(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, 2023, except for judgment on commencement of commercial production as described below:




    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)

Commencement of Commercial Production

Determining when a mine under construction is substantially complete and ready for its intended use requires significant judgement. The criteria the Company used to make that determination for the Tucumã Operation included, amongst other things:

•the ability of the mine to produce salable product (i.e. the ability to produce metal within specifications),
•throughput of the processing plant reach a predefined percentage of design capacity for a 30 day period,
•processing plan recoveries reaching a pre-defined percentage of expected recoveries.

After evaluating the above factors, the Company concluded that the Tucumã Operation had not achieved commercial production as of September 30, 2024, and therefore, is not yet ready for its intended use.



(c) New Accounting Policies, Standards and Interpretations

On January 1, 2024, the Company adopted the following amendments to accounting standards:

•In January 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) which amended IAS 1, Presentation of Financial Statements (“IAS 1”), to clarify the requirements for presenting liabilities in the statement of financial position. The amendments specify that the Company must have the right to defer settlement of a liability for at least 12 months after the reporting period for the liability to be classified as non-current. In addition, the amendments clarify that: (a) the Company’s right to defer settlement must exist at the end of the reporting period; (b) classification is unaffected by management’s intentions or expectations about whether the Company will exercise its right to defer settlement; (c) if the Company’s right to defer settlement is subject to the Company complying with specified conditions, the right exists at the end of the reporting period only if the Company complies with those conditions at the end of the reporting period, even if the lender does not test compliance until a later date; and (d) the term settlement includes the transfer of the Company’s own equity instruments to the counterparty that results in the extinguishment of the liability, except when the settlement of the liability with the Company transferring its own equity instruments is at the option of the counterparty and such option has been classified as an equity instrument, separate from the host liability.

•In October 2022, the IASB issued amendment Non-current Liabilities with Covenants to IAS 1 to clarify that covenants of loan arrangements which the Company must comply with only after the reporting date would not affect classification of a liability as current or non-current at the reporting date. The amendment also introduces additional disclosure requirements related to such covenants to include: (i) the nature of the covenants and the date by which the Company must comply with the covenants; (ii) the carrying amount of the related liabilities; and (iii) facts and circumstances, if any, that indicate that the Company may have difficulty complying with covenants.

The adoption of these amendments did not have a material impact on the Company's condensed consolidated interim financial statements.






    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)

(d)    Future Changes in Accounting Policies Not Yet Effective as of September 30, 2024

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements ("IFRS 18") to replace IAS 1. IFRS 18 introduces two newly required subtotals on the face of the income statement, which includes operating profit and profit or loss before financing and income tax, and three new income statement classifications, which are operating, investing, and financing. In addition, IFRS 18 requires non-IFRS management performance measures that are subtotals of income and expenses to be disclosed on financial statement. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial statements and the notes. IFRS 18 will not affect the recognition and measurement of items in the financial statements, nor will it affect which items are classified in other comprehensive income and how these items are classified The standard is effective for reporting periods beginning on or after January 1, 2027, including for interim financial statements. Retrospective application is required and early application is permitted. The Company is currently assessing the effect of this new standard on our 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.

For the three and nine months ended September 30, 2024, 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 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)

Three months ended September 30, 2024
Caraíba
(Brazil)		Xavantina
(Brazil)
Tucumã
(Brazil)
Corporate and OtherConsolidated
Revenue$87,305 $34,433 $3,099 $— $124,837 
Cost of production(40,149)(6,220)(737)— (47,106)
Depreciation and depletion(16,610)(4,512)(49)— (21,171)
Sales expense(2,234)(465)(152)— (2,851)
Cost of sales(58,993)(11,197)(938)— (71,128)
Gross profit28,312 23,236 2,161 — 53,709 
Expenses
General and administrative(6,357)(1,637)(915)(3,719)(12,628)
Share-based compensation— — — (4,859)(4,859)
Write-down of exploration and evaluation asset(467)— — — (467)
Finance income430 212 — 139 781 
Finance expenses(2,944)(871)— (224)(4,039)
Foreign exchange gain (loss)17,295 1 — (50)17,246 
Other income (expenses)1,288 (454)(879)— (45)
Income (loss) before taxes37,557 20,487 367 (8,713)49,698 
Current tax expense(338)(2,771)— (1,764)(4,873)
Deferred tax (expense) recovery(3,639)181 — — (3,458)
Net income (loss)$33,580 $17,897 $367 $(10,477)$41,367 
Capital expenditures(1)
37,204 6,119 23,517 2,984 69,824 
(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.















    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)

Three months ended September 30, 2023
Caraíba
(Brazil)		Xavantina
(Brazil)		Tucumã (Brazil)Corporate and OtherConsolidated
Revenue$76,136 $29,045 $— $— $105,181 
Cost of production(39,346)(6,322)— — (45,668)
Depreciation and depletion(15,574)(5,341)— — (20,915)
Sales expense(2,236)(887)— — (3,123)
Cost of sales(57,156)(12,550)— — (69,706)
Gross profit18,980 16,495 — — 35,475 
Expenses
General and administrative(9,125)(1,451)— (3,826)(14,402)
Share-based compensation— — — 1,185 1,185 
Finance income1,156 141 — 1,679 2,976 
Finance expenses(4,069)(1,223)— (2,725)(8,017)
Foreign exchange (loss) gain(13,974)1 — 36 (13,937)
Other expenses(757)(502)— (17)(1,276)
(Loss) income before taxes(7,789)13,461 — (3,668)2,004 
Current tax expense(405)(2,323)— (589)(3,317)
Deferred tax recovery3,782 342 — — 4,124 
Net (loss) income$(4,412)$11,480 $— $(4,257)$2,811 
Capital expenditures(1)
48,971 7,584 63,334 1,683 121,572 
(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.

















    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)

Nine months ended September 30, 2024
Caraíba
(Brazil)		Xavantina
(Brazil)
Tucumã
(Brazil)
Corporate and OtherConsolidated
Revenue$240,104 $104,517 $3,099 $— $347,720 
Cost of production(124,321)(21,055)(737)— (146,113)
Depreciation and depletion(50,007)(15,816)(49)— (65,872)
Sales expense(5,906)(1,499)(152)— (7,557)
Cost of sales(180,234)(38,370)(938)— (219,542)
Gross profit59,870 66,147 2,161 — 128,178 
Expenses
General and administrative(19,647)(4,800)(915)(10,590)(35,952)
Share-based compensation— — — (17,479)(17,479)
Write-down of exploration and evaluation asset(467)— — (10,745)(11,212)
Finance income2,050 565 — 995 3,610 
Finance expenses(9,755)(2,749)— (734)(13,238)
Foreign exchange (loss) gain
(72,166)(100)— 62 (72,204)
Other expenses
(775)(286)(879)(414)(2,354)
(Loss) income before taxes
(40,890)58,777 367 (38,905)(20,651)
Current tax expense
(343)(7,433)— (3,303)(11,079)
Deferred tax recovery (expense)
13,135 (267)— — 12,868 
Net (loss) income
$(28,098)$51,077 $367 $(42,208)$(18,862)
Capital expenditures(1)
113,638 16,659 113,286 4,767 248,350 
Assets
Current $66,955 $21,808 $22,568 $15,477 126,808 
Non-current865,291 89,236 421,307 9,880 1,385,714 
Total Assets$932,246 $111,044 $443,875 $25,357 $1,512,522 
Total Liabilities$167,099 $85,658 $29,226 $513,770 795,753 

(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 nine months ended September 30, 2024, the Company had six significant customers (September 30, 2023 - six), including four customers (September 30, 2023 - four) at Caraíba and two customers (September 30, 2023 - two) at Xavantina.



    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)


Nine months ended September 30, 2023
Caraíba
(Brazil)		Xavantina
(Brazil)		Tucumã (Brazil)Corporate and OtherConsolidated
Revenue$237,366 $73,700 $— $— $311,066 
Cost of production(113,397)(18,087)— — (131,484)
Depreciation and depletion(44,191)(12,786)— — (56,977)
Sales expense(6,399)(1,215)— — (7,614)
Cost of sales(163,987)(32,088)— — (196,075)
Gross profit73,379 41,612 — — 114,991 
Expenses
General and administrative(24,051)(4,371)— (11,847)(40,269)
Share-based compensation— — — (8,741)(8,741)
Finance income4,700 492 — 5,284 10,476 
Finance expenses(5,974)(3,418)— (11,146)(20,538)
Foreign exchange gain
9,736 — — 5 9,741 
Other income (expenses)
793 504 — (73)1,224 
Income (loss) before taxes
58,583 34,819 — (26,518)66,884 
Current tax expense
(1,462)(4,576)— (3,121)(9,159)
Deferred tax (expense) recovery
(774)301 — — (473)
Net income (loss)
$56,347 $30,544 $— $(29,639)$57,252 
Capital expenditures(1)
183,170 20,794 129,202 5,801 338,967 
Assets
Current $93,851 $22,341 $892 $57,029 174,113 
Non-current797,935 88,980 225,596 15,497 1,128,008 
Total Assets$891,786 $111,321 $226,488 $72,526 $1,302,121 
Total Liabilities$119,109 $98,717 $19,714 $426,295 663,835 

(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.

    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)


4.    Inventories

September 30, 2024December 31, 2023
Supplies and consumables$28,168 $24,270 
Stockpiles4,687 5,624 
Work in progress3,164 917 
Finished goods6,902 11,443 
$42,921 $42,254 

5.    Other Current Assets

September 30, 2024December 31, 2023
Advances to suppliers$4,304 $306 
Prepaid expenses and other7,096 4,716 
Derivatives (Note 19)
— 11,254 
Note receivable (Note 19)
5,080 8,346 
Advances to employees1,286 944 
Value added taxes recoverable22,640 13,719 
$40,406 $39,285 

    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)

6.    Mineral Properties, Plant and Equipment
BuildingsMining Equipment
Mineral
Properties(1)
Projects in
Progress		Equipment & Other AssetsDeposit on ProjectsMine Closure CostsRight-of-Use AssetsTotal
Cost:
Balance, December 31, 2023
37,246 285,489 697,808 419,657 26,613 49,542 18,509 49,329 1,584,193 
Additions(2)
3,884 37,392 55,982 123,784 3,214 19,070 — 13,642 256,968 
Capitalized borrowing costs— — — 26,129 — — — — 26,129 
Change in estimates— — — — — — 3,609 — 3,609 
Disposals— (159)— (3)(110)— — (1,185)(1,457)
Transfers4,815 31,858 12,196 (486)2,707 (48,860)— — 2,230 
Foreign exchange(4,479)(34,424)(79,811)(45,350)(2,995)(4,375)(2,197)(5,805)(179,436)
Balance, September 30, 2024
$41,466 $320,156 $686,175 $523,731 $29,429 $15,377 $19,921 $55,981 $1,692,236 
Accumulated depreciation:
Balance, December 31, 2023
(6,984)(68,917)(209,939)— (9,368)— (6,316)(30,671)(332,195)
Depreciation expense(1,528)(19,665)(31,893)— (1,507)— (560)(10,508)(65,661)
Disposals— 89 — — 1 — — 635 725 
Foreign exchange836 8,421 24,464 (26)1,009 — 725 3,732 39,161 
Balance, September 30, 2024
$(7,676)$(80,072)$(217,368)$(26)$(9,865)$— $(6,151)$(36,812)$(357,970)
Net book value, December 31, 2023
$30,262 $216,572 $487,869 $419,657 $17,245 $49,542 $12,193 $18,658 $1,251,998 
Net book value, September 30, 2024
$33,790 $240,084 $468,807 $523,705 $19,564 $15,377 $13,770 $19,169 $1,334,266 

(1)     Mineral properties include $74.3 million (2023 - $72.4 million) of costs which are not currently being depreciated.
(2)    Additions to projects in progress was net of $11.0 million in value added taxes that were transferred to other receivables during the nine months ended September 30, 2024 as a result of the completion of a recoverability assessment.


     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)

7.    Exploration and Evaluation Assets

As at September 30, 2024, the Company had $18.6 million (2023 - $29.9 million) in exploration and evaluation assets, which include several property option agreements.

In June 2024, the Company terminated the Fides option agreement, resulting in a write-down of $10.7 million in exploration and evaluation assets for the nine months ended September 30, 2024.

In June 2024, the Company exercised the Edem option agreement to acquire a 399-hectare mineral concession in Mato Grosso State. This concession is located immediately east of and contiguous with the Xavantina Operations mining concession. Consequently, $2.3 million was reclassified from exploration and evaluation assets to mineral properties during the period.

In July 2024, the Company signed a definitive earn-in agreement with Salobo Metais S.A, a subsidiary of Vale Base Metals ("VBM"), for the Furnas copper 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 and produce a scoping study within 18 months of signing the Agreement
•Phase 2: Ero to conduct an additional minimum of 17,000 meters of exploration drilling 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 September 30, 2024, exploration and evaluation assets include $2.9 million in expenditures associated with the Furnas Project.


8.     Deposits and Other Non-current Assets

September 30, 2024December 31, 2023
Value added taxes recoverable$14,821 $11,413 
Note receivable (Note 19)
5,175 9,067 
Deposits and others8,329 8,472 
$28,325 $28,952 



    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)

9.    Accounts Payable and Accrued Liabilities

September 30, 2024
December 31, 2023
Trade suppliers$66,729 $74,877 
Payroll and labour related liabilities23,719 26,421 
Value added tax and other tax payable7,094 9,142 
Cash-settled equity awards (Note 13(b) and (c))
15,229 8,796 
Other accrued liabilities1,139 1,468 
$113,910 $120,704 


10.    Loans and Borrowings

Carrying value,
including accrued interest
DescriptionCurrencySecurityMaturity
(Months)		Coupon ratePrincipal to be repaidSeptember 30,
2024		December 31,
2023
Senior NotesUSDUnsecured
64
6.50%
$400,000 $397,429 $403,274 
Senior credit facilityUSDSecured
27
SOFR plus
2.00% - 4.50%
70,000 69,963 — 
Copper Prepayment FacilityUSDSecured
27
8.84%
50,000 51,375 — 
Equipment finance loansUSDSecured
3 - 31
5.00% - 8.35%
14,918 15,191 16,175 
Equipment finance loansEURSecured
17 - 21
5.25%
617 690 1,000 
Equipment finance loansBRLUnsecured
1 - 19
nil% - 16.63%
2,588 2,694 3,409 
Bank loanBRLUnsecured
26
CDI + 0.50%
1,562 1,568 2,375 
Total$539,685 $538,910 $426,233 
Current portion$39,383 $20,381 
Non-current portion$499,527 $405,852 

The movements in loans and borrowings are comprised of the following:


    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)
Nine Months ended
Sep. 30, 2024		Year ended
December 31,
2023
Senior NotesSenior Credit FacilityCopper Prepayment FacilityOtherConsolidatedConsolidated
Balance, beginning of period
$403,274 $— $— $22,959 $426,233 $418,057 
Proceeds from loans and borrowings90,000 49,625 7,641 147,266 14,889 
Principal payments— (20,000)— (10,216)(30,216)(7,786)
Interest payments(26,000)(2,246)— (1,130)(29,376)(27,461)
Interest costs, including interest capitalized20,155 3,055 1,750 1,169 26,129 28,282 
Deferred transaction costs(846)(846)— 
Foreign exchange— — — (280)(280)252 
Balance, end of period
$397,429 $69,963 $51,375 $20,143 $538,910 $426,233 

(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 has 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 Senior Notes are subject to the following early redemption options by the Company:
•On or after February 15, 2025, the Company has the option, in whole or in part, to redeem 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;
•Before February 15, 2025, the Company may redeem some or all of the Senior Notes at 100% of the principal amount plus a “make whole” premium, plus accrued and unpaid interest, if any, to the date of redemption; and
•At any time before February 15, 2025, the Company may redeem up to 40% of the original principal amount of the Senior Notes with the proceeds of certain equity offerings at a redemption price of 106.50% of the principal amount of the Senior Notes, together with accrued and unpaid interest, if any, to the date of redemption.

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%.






    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)

(b)    Senior Credit Facility

The Company has a Senior Revolving Credit Facility ("Senior Credit Facility") with a borrowing limit of $150.0 million which matures in December 2026. Amounts drawn on the Senior Credit Facility bear interest on a sliding scale at a rate of SOFR plus 2.00% to 4.50% depending on the Company’s consolidated leverage ratio. Commitment fees for any undrawn portion of the Senior Credit Facility are based on a sliding scale between 0.45% to 1.01%. As at September 30, 2024, the Senior Credit Facility bears an average interest rate of 8.72% on its drawn balance and a commitment fee of 0.79% on its undrawn balance.

During the nine months ended September 30, 2024, the Company drew down a total of $90.0 million from its Senior Credit Facility, which included $20.0 million in the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company repaid $20.0 million of the principal amount of the facility. As a result, the net drawdown on the Senior Credit Facility for the nine months ended September 30, 2024 was $70.0 million.

The Senior Credit Facility is secured by the shares of MCSA, NX Gold and Ero Gold. 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 leverage ratio based on total indebtedness to rolling four quarters adjusted earnings before interest, taxes, depreciation and amortization ("Rolling EBITDA"); (b) a leverage ratio based on senior indebtedness to Rolling EBITDA; and (c) an interest coverage ratio based on Rolling EBITDA. The Senior Credit Facility provides for negative covenants customary for this type of facilities and permits additional equipment debt and finance leases of up to $50.0 million. As at September 30, 2024, the Company is in compliance with these financial covenants.

(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. Through the end of 2024, the Company has the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million.

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. 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. The copper to be delivered by the Company will be in the form of LME Copper Warrants.

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 and Ero Gold.



11. Deferred Revenue

In August 2021, the Company entered into a precious metals purchase agreement (the “NX Gold PMPA”) 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 $100.0 million for the purchase of 25% of an equivalent amount of gold to be produced from the Xavantina mine until 93,000 ounces of gold

    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)
have been delivered and thereafter decreasing to 10% of gold produced over the remaining life of the mine. The contract will be settled by the Company delivering gold to Royal Gold. Royal Gold will make ongoing payments equal to 20% of the then prevailing spot gold price for each ounce of gold delivered until 49,000 ounces of gold have been delivered and 40% of the prevailing spot gold price for each ounce of gold delivered thereafter. Additional advances may be made by Royal Gold based on the Company achieving certain milestones as set out in the NX Gold PMPA.

The movements in deferred revenue during the nine months ended September 30, 2024 are comprised of the following:
September 30, 2024December 31,
2023
Gold ounces delivered(1)
12,581 14,005 
Balance, beginning of period
$75,549 $86,055 
Advances3,249 3,544 
Accretion expense1,918 3,032 
Amortization of deferred revenue(2)
(18,063)(17,082)
Balance, end of period
$62,653 $75,549 
Current portion$17,011 $17,159 
Non-current portion45,642 58,390 

(1)        During the nine months ended September 30, 2024, the Company delivered 12,581 ounces of gold (December 31, 2023 - 14,005 ounces) to Royal Gold for average consideration of $456 per ounce (December 31, 2023 - $386 per ounce). At September 30, 2024, a cumulative 41,841 ounces (December 31, 2023 - 29,260 ounces) of gold have been delivered under the NX Gold PMPA.
(2) Amortization of deferred revenue during the nine months ended September 30, 2024 is net of $1.5 million (December 31, 2023 - $2.5 million) related to change in estimate attributed to advances received and change in life-of-mine production estimates.

As part of the NX Gold PMPA, 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

September 30, 2024
December 31, 2023
Cash-settled equity awards (Note 13(b))
$9,331 $2,549 
Withholding, value added tax, and other taxes payable12,739 8,012 
Provision1,659 1,622 
Derivatives (Note 19)
1,260 — 
Other liabilities4,362 5,975 
$29,351 $18,158 


    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)
13.     Share Capital

As at September 30, 2024, the Company’s authorized share capital consists of an unlimited number of common shares without par value. As at September 30, 2024, 103,297,049 common shares were outstanding (December 31, 2023 - 102,747,558).

(a)     Options

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

Nine Months Ended September 30,
20242023
Number of
Stock Options		Weighted Average Exercise Price (CAD)Number of
Stock Options		Weighted Average Exercise Price (CAD)
Outstanding stock options, beginning of period
1,886,325 $19.03 2,781,074 $15.49 
Issued 31,251 24.79 — — 
Exercised(549,491)20.57 (1,254,942)11.37 
Forfeited(1,034)18.69 (85,858)18.59 
Outstanding stock options, end of period
1,367,051 $18.54 1,440,274 $18.90 

The weighted average share price on the date of exercise for options exercised during the nine months ended September 30, 2024 was CAD$29.45 (nine months ended September 30, 2023 - CAD$25.50).



As at September 30, 2024, the following stock options were outstanding:

Weighted Average Exercise PricesNumber of
Stock Options		Vested and Exercisable Number of Stock OptionsWeighted Average Remaining Life in Years
$10.01 to $20.00 CAD
1,266,762 510,811 3.12
$20.01 to $25.35 CAD
100,289 69,038 1.87
$18.54 CAD ($13.73 USD)
1,367,051 579,849 3.03


    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)
The fair value of options granted was determined using the Black-Scholes option pricing model. The weighted average inputs used in the measurement of fair values at grant date of the options are the following:

Nine Months Ended September 30,
20242023
Expected term (years)3.0 — 
Forfeiture rate— %— %
Volatility52 %— %
Dividend yield— %— %
Risk-free interest rate3.12 %— %
Weighted-average fair value per option$8.79 $— 



(b)     Performance Share Unit Plan

The Company has a performance share unit ("PSU") plan pursuant to which the Compensation Committee may grant PSUs to Eligible Persons of the Company or its subsidiaries. Each PSU 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.

The continuity of PSUs issued and outstanding is as follows:

Nine Months Ended September 30,
20242023
Outstanding balance, beginning of period
967,921 881,788 
Issued 23,306 — 
Settled(7,668)— 
Forfeited(10,000)(108,062)
Outstanding balance, end of period
973,559 773,726 



These PSUs will vest three years from the date of grant by the Compensation Committee 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 Committee in its sole discretion. The Company has elected to settle its PSUs using a combination of cash and common shares in the past. As such, based on its history of past settlements, PSUs are 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

    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)
a Geometric Brownian Motion model. As at September 30, 2024, the fair value of the PSU liability was $17.4 million (December 31, 2023 - $6.5 million) of which $8.1 million (December 31, 2023 - $3.9 million) was recognized in accounts payable and accrued liabilities and the remainder in other non-current liabilities.


(c) Deferred Share Unit Plan

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:

Nine months ended September 30,
20242023
Outstanding balance, beginning of period
307,312 219,961
Issued 12,826 13,583 
Outstanding balance, end of period
320,138 233,544 

At September 30, 2024, DSU liabilities had a fair value of $7.1 million (December 31, 2023 - $4.9 million) which has been recognized in accounts payable and accrued liabilities.


(d) Restricted Share Unit Plan

The Company has a restricted share unit ("RSU") plan pursuant to which the Compensation Committee may grant share units to Eligible Persons of the Company or its subsidiaries. The fair value of these restricted share units 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. The RSUs are equity classified based on the history of past settlements.





During the nine months ended September 30, 2024, the Company granted 11,653 RSUs (nine months ended September 30, 2023 - 25,000) to employees of the Company at weighted average fair value of $19.35 per share (nine months ended September 30, 2023 - $22.08). The total fair value of these RSUs on the grant date was $0.2 million (nine months ended September 30, 2023 - $0.6 million).

The continuity of RSUs issued and outstanding is as follows:


    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)
Nine months ended September 30,
20242023
Outstanding balance, beginning of period
340,570 263,202
Issued 11,653 25,000 
Forfeited— (30,392)
Outstanding balance, end of period
352,223 257,810 


(e)     Share-based compensation

Three months ended September 30,Nine months ended September 30,
2024202320242023
Stock options$674 $142 $2,033 $736 
Performance share unit plan3,262 (1,106)11,106 5,793 
Deferred share unit plan284 (488)2,361 1,025 
Restricted share unit plan639 267 1,979 1,187 
Share-based compensation(1)
$4,859 $(1,185)$17,479 $8,741 

(1)    For the three and nine months ended September 30, 2024, the Company recorded $1.3 million and $4.0 million (three and nine months ended September 30, 2023 - $0.4 million and $1.9 million) of share-based compensation in contributed surplus, and the remaining share-based compensation was recorded in liabilities.


















    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)
(f)     Net Income (Loss) per Share
Three months ended September 30,Nine months ended September 30,
2024202320242023
Weighted average number of common shares outstanding103,239,881 93,311,434 103,026,138 92,767,525 
Dilutive effects of:
Stock options381,723 440,024 — 618,605 
Share units352,223 257,810 — 257,810 
Weighted average number of diluted common shares outstanding(1)
103,973,827 94,009,268 103,026,138 93,643,940 
Net income (loss) attributable to owners of the Company
$40,857 $2,525 $(19,531)$56,255 
Basic net income (loss) per share
$0.40 $0.03 $(0.19)$0.61 
Diluted net income (loss) per share
$0.39 $0.03 $(0.19)$0.60 

(1)     Weighted average number of diluted common shares outstanding for the three and nine months ended September 30, 2024 excluded 31,251 and 1,367,051 (three and nine months ended September 30, 2023 - nil and 50,000) stock options and nil and 352,223 share units (three and nine months ended September 30, 2023 - nil and nil ) that were anti-dilutive.

14. Revenue

Three months ended September 30,Nine months ended September 30,
2024202320242023
Copper
Sales within Brazil$— $— $— $24,303 
Export sales87,001 75,864 240,015 215,594 
Adjustments on provisional sales(1)
3,403 272 3,188 (2,531)
90,404 76,136 243,203 237,366 
Gold
Sales27,378 24,036 86,454 60,441 
Amortization of deferred revenue(2)
7,055 5,009 18,063 13,259 
$34,433 $29,045 $104,517 $73,700 
$124,837 $105,181 $347,720 $311,066 

(1)    Adjustments on provisional sales include both pricing and quantity adjustments. Under the terms of the Company’s contract with its Brazilian domestic customer, sales are provisionally priced on the date of sale based on the previous month’s average copper price and subsequently settled based on the average copper price in the month of shipment. Provisionally priced sales to the Company's international customers are settled with a final sales price between zero to one month after shipment takes place and, therefore, are exposed to commodity price changes.
(2)    During the three and nine months ended September 30, 2024, the Company delivered 4,190 and 12,581 ounces of gold, respectively (three and nine months ended September 30, 2023 - 3,590 and 9,858 ounces of gold), under a precious metals purchase agreement with Royal Gold (note 11) for average cash consideration of $489 and $456 per ounce (three and nine months ended September 30, 2023 - $385 and $385).

    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)

15.     Cost of Sales

Three months ended September 30,Nine months ended September 30,
2024202320242023
Materials$11,710 $11,213 $34,013 $32,473 
Salaries and benefits15,670 16,128 47,135 44,363 
Contracted services13,805 9,040 31,730 24,852 
Maintenance costs7,969 8,400 23,511 22,451 
Utilities2,782 3,603 9,667 10,271 
Other costs308 57 776 843 
Change in inventory (excluding depreciation and depletion)(5,138)(2,773)(719)(3,769)
Cost of production47,106 45,668 146,113 131,484 
Sales expense and others2,851 3,123 7,557 7,614 
Depreciation and depletion21,772 22,997 64,006 61,154 
Change in inventory (depreciation and depletion)(601)(2,082)1,866 (4,177)
$71,128 $69,706 $219,542 $196,075 


16.     General and Administrative Expenses

Three months ended September 30,Nine months ended September 30,
2024202320242023
Accounting and legal$463 $553 $1,525 $1,536 
Amortization and depreciation384 384 1,273 1,067 
Office and administration2,461 2,304 6,992 6,470 
Salaries and consulting fees6,797 8,550 19,844 23,915 
Incentive payments1,541 1,647 4,209 4,418 
Other982 964 2,109 2,863 
$12,628 $14,402 $35,952 $40,269 


    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)

17.    Finance Expense

Three months ended September 30,Nine months ended September 30,
2024202320242023
Interest on loans and borrowings(1)
$— $2,758 $— $11,181 
Accretion of deferred revenue592 750 1,918 2,320 
Accretion of provision for rehabilitation and closure costs566 690 1,802 2,021 
Interest on lease liabilities463 312 1,360 903 
Other finance expenses(2)
2,418 3,507 8,158 4,113 
$4,039 $8,017 $13,238 $20,538 

(1)    During the three and nine months ended September 30, 2024, the Company capitalized $9.6 million and $26.1 million, respectively (three and nine months ended September 30, 2023 -$4.4 million and $10.0 million) of borrowing costs to projects in progress.
(2) Other finance expenses during the three and nine months ended September 30, 2024 included $1.8 million and $6.3 million (three and nine months ended September 30, 2023 - $2.5 million and $1.7 million provision) of credit loss provision on certain accounts receivable (see Note 19).

18.    Foreign Exchange Gain (Loss)

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 Reals (BRL$), which is their functional currency.

Three months ended September 30,Nine months ended September 30,
2024202320242023
Foreign exchange gain (loss) on USD denominated debt in Brazil$10,993 $(9,979)$(56,710)$7,487 
Realized foreign exchange (loss) gain on derivative contracts (note 19)
(3,428)3,458 (2,300)7,232 
Unrealized foreign exchange gain (loss) on derivative contracts (note 19)
9,847 (7,560)(15,565)(2,309)
Foreign exchange (loss) gain on other financial assets and liabilities(166)144 2,371 (2,669)
$17,246 $(13,937)$(72,204)$9,741 


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 25
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 September 30, 2024, derivatives were measured at fair value based on Level 2 inputs.

The carrying values of cash and cash equivalents, short-term investments, 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 September 30, 2024, the carrying value of loans and borrowings, including accrued interest, was $538.9 million while the fair value is approximately $539.8 million. At September 30, 2024, the carrying value of notes receivable, including accrued interest, was $10.3 million which approximates its fair value.


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 September 30, 2024 and December 31, 2023:

September 30, 2024December 31, 2023
Cash and cash equivalents$20,229 $111,738 
Accounts receivable20,139 5,710 
Derivatives— 11,254 
Note receivable10,255 17,413 
Deposits and other assets10,401 9,484 
$61,024 $155,599 

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

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

In November 2022, Paranapanema S/A ("PMA"), one of the Company's customers in Brazil, filed for bankruptcy protection. According to PMA, the action was attributed to working capital challenges following an operational halt at one of their facilities. Progress was noted in August 2023 when PMA and its creditors agreed on a judicial recovery plan, which subsequently received approval from the judicial recovery court in November 2023. As a preferred supplier to PMA, the Company has entered into a note receivable arrangement with PMA. The arrangement is 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 September 30, 2024, the gross amount of accounts and note receivable from PMA was $23.2 million (December 31, 2023 - $25.2 million). PMA continued to miss its installment due in 2024, and is currently in default of the agreement. Accordingly, the note receivable is considered credit impaired, and the Company increased the expected credit loss provision by $1.8 million and $6.3 million in the three and nine months ended September 30, 2024, respectively. After adjusting for credit loss provision and present value discount of $13.0 million (December 31, 2023 - $7.7 million), the amortized cost of the note receivable at September 30,

    Notes to Financial Statements | Page 26
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)
2024 was $10.3 million (December 31, 2023 - $17.4 million), of which $5.1 million (December 31, 2023 - $8.3 million) was classified as current and $5.2 million (December 31, 2023 - $9.1 million) as non-current.

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 their 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 September 30, 2024:

Non-derivative financial liabilitiesCarrying
value		Contractual cash flowsUp to
12 months		1 - 2
years		3 - 5
years		More than
5 years
Loans and borrowings (including interest)$538,910 $705,854 $70,136 $170,718 $465,000 $— 
Accounts payable and accrued liabilities113,910 113,910 113,910 — — — 
Other non-current liabilities13,693 29,279 — 28,184 709 386 
Leases20,427 20,404 11,705 7,721 927 51 
Total$686,940 $869,447 $195,751 $206,623 $466,636 $437 

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

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 September 30, 2024 are as follows:

Contract DescriptionNotional AmountDenominationWeighted average floorWeighted average cap / forward priceMaturities
Foreign exchange collar (i)
$315.0 million
USD/BRL5.236.08October 2024 - December 2025
Foreign exchange forward (i)
$12.0 million
USD/BRLN/A5.19October 2024 - December 2024
Gold collar (iii)
30,000 ounces
$ / oz$2,200$3,425January 2025 - December 2025





    Notes to Financial Statements | Page 27
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

(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 September 30, 2024 relates to $67.3 million (December 31, 2023 – $17.2 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 September 30, 2024 on $485.3 million of intercompany loan balances (December 31, 2023 - $342.2 million) which have contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at September 30, 2024 by 10% and 20%, would have decreased (increased) pre-tax net loss by $55.2 million and $110.4 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 September 30, 2024, the aggregate fair value of the Company's foreign exchange derivatives was a net liability of $4.1 million (December 31, 2023 - asset of $11.3 million) of which $1.0 million is included in other non-current liabilities and the remainder in current portion of derivatives liabilities. 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 gain of $9.8 million and a loss of $15.6 million for the three and nine months ended September 30, 2024, respectively (a loss of $7.5 million and $2.3 million for the three and nine months ended September 30, 2023, respectively), which have been recognized in foreign exchange gain (loss).

In addition, during the three and nine months ended September 30, 2024, the Company recognized a realized loss of $3.4 million and of $2.3 million, respectively (realized gain of $3.5 million and $7.2 million for the three and nine months ended September 30, 2023, respectively), related to the settlement of foreign exchange derivatives.

(ii) 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 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 Credit Facility and Brazilian Real denominated bank loans. Based on the Company’s net exposure at September 30, 2024, a 1% change in the variable rates would not materially impact its pre-tax annual net income.

(iii) Price risk

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

At September 30, 2024, the Company has entered into zero-cost gold collar contracts on 2,500 ounces of gold per month from January 2025 to December 2025, representing just over 50% of its estimated production volumes for the period. As of September 30, 2024, the fair value of these contracts was a net liability of $0.4 million (December 31, 2023 - nil). The fair value of gold collar contracts was determined based on option pricing

    Notes to Financial Statements | Page 28
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)
models, forward gold price, and information provided by counter party. At September 30, 2024, the Company does not have any outstanding copper collar contracts (December 31, 2023 - liability of $0.6 million).

During the three and nine months ended September 30, 2024, the Company recognized an unrealized gain of $0.4 million and an unrealized impact of nil (unrealized loss of $1.8 million and unrealized gain of $0.8 million for the three and nine months ended September 30, 2023), respectively, on its commodity derivatives.

During the three and nine months ended September 30, 2024, the Company also recognized a realized loss of $0.8 million and a realized loss of $2.6 million, respectively, in relation to its commodity derivatives in other income or loss (nil and $1.8 million realized loss for three and nine months ended September 30, 2023).

At September 30, 2024, the Company had provisionally priced sales that are exposed to commodity price changes (note 14). Based on the Company’s net exposure at September 30, 2024, a 10% change in the price of copper would have changed pre-tax net income (loss) by $1.0 million.

20. Supplemental Cash Flow Information

Three months ended September 30,Nine months ended September 30,
Net change in non-cash working capital items:2024202320242023
Accounts receivable$(4,110)$(3,189)$(15,353)$904 
Inventories(8,261)890 (7,536)(4,910)
Other assets(7,975)(6,286)(18,362)(12,636)
Accounts payable and accrued liabilities22,580 12,011 (888)6,732 
$2,234 $3,426 $(42,139)$(9,910)
Non-cash investing and financing activities:
Additions to property, plant and equipment by leases5,808 1,132 $13,642 $10,007 
Non-cash (decrease) increase in accounts payable in relation to capital expenditures
(9,712)186 (2,670)4,358 
Change in mineral properties, plant and equipment from change in estimates for provision for rehabilitation and closure costs3,609 (90)3,609 (422)


21.    Commitment

As at September 30, 2024, the Company has capital commitments, which is net of advances to suppliers, of $65.3 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 29
                

logo_cmyk-copper.jpg
 TSX: ERO
NYSE: ERO





November 5, 2024

Ero Copper Reports Third Quarter 2024 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 nine months ended September 30, 2024. Management will host a conference call tomorrow, Wednesday, November 6, 2024, 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

•The Tucumã Operation achieved a major commissioning milestone in July 2024, producing its first saleable copper concentrate. As ramp-up efforts increased mill throughput during the quarter, the operation delivered 839 tonnes of copper, contributing to consolidated quarterly copper production of 10,759 tonnes.
•Consolidated quarterly copper production also included contributions from the Caraíba Operations of 9,920 tonnes at C1 cash costs(*) of $1.63 per pound of copper produced.
•Gold production for the quarter was 13,485 ounces at C1 cash costs(*) and All-in Sustaining Costs ("AISC")(*) of $539 and $1,034, respectively, per ounce produced.
•Improved operating margins were supported by a significant decrease in unit operating costs at the Caraíba Operations and higher realized gold prices at the Xavantina Operations, resulting in:
◦Net income attributable to the owners of the Company of $40.9 million, or $0.39 per share on a diluted basis.
◦Adjusted net income attributable to the owners of the Company(*) of $27.6 million, or $0.27 per share on a diluted basis.
◦Adjusted EBITDA(*) of $62.2 million.
•Available liquidity at quarter-end was $125.2 million, including $20.2 million in cash and cash equivalents, $80.0 million of undrawn availability under the Company's senior secured revolving credit facility, and $25.0 million of undrawn availability under the copper prepayment facility.
(*) 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, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
1
Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
•During the quarter, the Company opportunistically entered into zero-cost gold collar contracts on 2,500 ounces of gold per month from January 2025 to December 2025, representing just over 50% of projected 2025 gold production at the Xavantina Operations. These contracts set a floor price of $2,200 per ounce, while allowing for upside participation in gold price increases up to a cap of $3,425 per ounce, over 20% above the all-time high price reached in October 2024.
•Key 2024 guidance updates include:
◦The Company is updating consolidated copper production guidance to 43,000 to 48,000 tonnes in concentrate, reflecting an extension of Tucumã's ramp-up schedule due to power disruptions in Q3 and October 2024 and slower-than-expected underground development progress at Caraíba's Pilar Mine.
◦Due to the anticipated delay in achieving commercial production at the Tucumã Operation, the Company is narrowing 2024 C1 cash cost guidance to only include the Caraíba Operations. The Company is reaffirming full-year C1 cash cost guidance for the Caraíba Operations of $1.80 to $2.00 per pound of copper produced.
◦Full-year gold production guidance is being maintained at the increased range of 60,000 to 65,000. The Company is also reaffirming reduced full-year gold cost guidance of $450 to $550 per ounce of produced for C1 cash costs, and $900 to $1,000 per ounce for AISC.
◦The Company is maintaining full-year consolidated capital expenditure guidance of $303 to $348 million.
“The third quarter and year-to-date period presented both significant achievements to celebrate and new challenges to navigate,” said David Strang, Chief Executive Officer. “We have reached the inflection point we have been working towards since the publication of Tucumã's Optimized Feasibility Study in September 2021. With construction complete and ramp-up to commercial production underway, reaching this milestone in just over three years is a remarkable accomplishment.
"Alongside this achievement, came operational headwinds, including power-related challenges that have impacted our ramp-up schedule at Tucumã. At our Caraíba Operations, we made progress in accelerating underground development rates at the Pilar Mine, though the performance of a third-party development contractor has been below expectations. We view these challenges as transitional, and our team is actively working on returning to plan.

"Despite these setbacks, our financial results have been strengthened by improved operating margins driven by significantly lower unit costs at Caraíba and higher realized gold prices at Xavantina. We are optimistic about the path ahead, with 2025 on track to be our best year yet, and look forward to delivering strong value for our stakeholders."

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

TSX: ERO
NYSE: ERO
THIRD QUARTER REVIEW

The Caraíba Operations
•Quarterly copper production at the Caraíba Operation increased 11.9% quarter-on-quarter to 9,920 tonnes of copper in concentrate, with higher mined and processed copper grades offsetting lower mill throughput.
•Higher copper grades also contributed to a 24.5% decrease in C1 cash costs, which averaged $1.63 per pound of copper produced for the quarter. C1 cash costs and margins also benefited from improved concentrate treatment and refining charges, secured as of May 2024, as well as a more favorable USD to BRL exchange rate.
•Efforts to increase underground development rates at the Pilar Mine were impacted by slower-than-anticipated progress by a third-party development contractor during the quarter. Consequently, the Company expects lower mined and processed tonnage at the Caraíba Operations through year-end.
•To support accelerated development rates, the Company intends to engage an additional contractor in Q4 2024.

The Tucumã Operation
•The Tucumã Operation successfully produced first saleable concentrate in July 2024. Production for the quarter was 839 tonnes of copper in concentrate, with mill throughput totaling 110,778 tonnes and metallurgical recoveries averaging 75.7%.
•Mining operations continued ahead of schedule, contributing to a buildup of ore stockpiles that are expected to be processed in Q4 2024 and throughout 2025.
•The ramp-up of Tucumã's processing plant progressed well through July and the majority of August; however, as the plant moved toward continuous operations, the Company detected intermittent voltage oscillations within the third-party regional power grid. These oscillations limited the ability to run the mill at full capacity on a continuous basis.
•Subsequent to quarter-end, the Tucumã Operation experienced a temporary power disruption following a severe localized windstorm that impacted the regional power grid, including the main 230kV transmission line servicing the southwest region of the Carajás Mineral Province. Power was restored after approximately 10 days, allowing the Company to safely resume ramp-up activities on October 16, 2024.(1)
•To address ongoing intermittent voltage oscillations, the Company implemented a mill power management solution that enables continuous plant operations despite minor voltage fluctuations. Since this implementation, the plant has maintained continuous operations and is advancing toward full capacity.

(1) For further details on the power disruption and resumption of ramp-up activities, please refer the Company's press releases dated October 5, 2024 and October 16, 2024.

3
Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

TSX: ERO
NYSE: ERO
The Xavantina Operations
•Quarterly gold production at the Xavantina Operations totaled 13,485 ounces with tonnes processed up 3.3% quarter-on-quarter, partially offsetting a planned decrease in mined and processed gold grades.
•Unit operating costs were in line with expectations for the quarter, averaging $539 per ounce for C1 cash costs and $1,034 per ounce for AISC.
•The Xavantina Operations are expected to deliver similar production levels and unit cost performance in Q4 2024 compared to Q3 2024.


OTHER SUBSEQUENT EVENTS

The Company continued to advance its growth pipeline with the announcement of an initial National Instrument 43-101 compliant mineral resource estimate for Furnas Copper-Gold Project (the "Project") on October 2, 2024. This initial mineral resource estimate, supported by over 90,000 meters of historic drilling, highlights the significant potential of this Project.

In October 2024, the Company also commenced the Phase 1 drill program under the definitive earn-in agreement(1) for the Project, after receiving drilling permits from the Pará State environmental agency in September 2024. This minimum 28,000-meter program, designed to support a preliminary economic assessment on the Project, is focused on infill drilling and extending high-grade zones within the broader deposit to depth. For more information on the Project's initial mineral resource estimate and the Phase 1 drill program, please refer to the Company's press release dated October 2, 2024.















(1) In July 2024, the Company signed a definitive earn-in agreement ("Agreement") with Salobo Metais S.A., a subsidiary of Vale Base Metals Limited, to earn a 60% interest in the Project, located in the Carajás Mineral Province in Pará State, Brazil. The terms of the Agreement align with the previously signed binding term sheet outlined in the Company's press release dated October 30, 2023.

4
Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

 TSX: ERO
 NYSE: ERO
OPERATING HIGHLIGHTS

2024 - Q3
2024 - Q2
2023 - Q3
2024 - YTD
2023 - YTD
Copper (Caraíba Operations)
Ore Processed (tonnes)900,289 957,692 806,096 2,711,352 2,419,465 
Grade (% Cu)1.20 1.03 1.46 1.10 1.45 
Cu Production (tonnes)9,920 8,867 10,766 26,878 32,097 
Cu Production (000 lbs)21,871 19,548 23,734 59,257 70,761 
Cu Sold in Concentrate (tonnes)9,970 8,706 10,090 28,137 31,166 
Cu Sold in Concentrate (000 lbs)21,980 19,192 22,244 62,031 68,709 
Cu C1 cash cost(1)(2)
$1.63 $2.16 $1.92 $2.01 $1.83 
Copper (Tucumã Operation)
Ore Processed (tonnes)110,778 — — 110,778 — 
Grade (% Cu)1.00 — — 1.00 — 
Cu Production (tonnes)839 — — 839 — 
Cu Production (000 lbs)1,850 — — 1,850 — 
Cu Sold in Concentrate (tonnes)357 — — 357 — 
Cu Sold in Concentrate (000 lbs)787 — — 787 — 
Gold (Xavantina Operations)
Ore Processed (tonnes)
41,761 40,446 31,446 120,041 101,586 
Grade (g / tonne)
11.41 14.00 18.72 13.85 14.43 
Au Production (oz)13,485 16,555 17,579 48,274 42,355 
Au C1 cash cost(1)
$539 $428 $371 $447 $425 
Au AISC(1)
$1,034 $842 $844 $879 $943 

(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures 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, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
(2) Copper C1 cash cost including foreign exchange hedges was $1.72 in Q3 2024 (Q3 2023 - $1.77) and $2.04 in YTD 2024 (YTD 2024 - $1.73).
5
Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

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

2024 - Q3
2024 - Q2
2023 - Q3
2024 - YTD
2023 - YTD
Revenues$124.8 $117.1 $105.2 $347.7 $311.1 
Gross profit 53.7 43.3 35.5 128.2 115.0 
EBITDA(1)
74.5 (36.2)28.3 56.1 135.0 
Adjusted EBITDA(1)
62.2 51.5 42.9 157.0 133.2 
Cash flow from operations
52.7 14.7 41.9 84.6 113.7 
Net income (loss)
41.4 (53.4)2.8 (18.9)57.3 
Net income (loss) attributable to owners of the Company
40.9 (53.2)2.5 (19.5)56.3 
Per share (basic)0.40 (0.52)0.03 (0.19)0.61 
Per share (diluted)0.39 (0.52)0.03 (0.19)0.60 
Adjusted net income attributable to owners of the Company(1)
27.6 18.6 17.3 63.0 62.0 
Per share (basic)0.27 0.18 0.19 0.61 0.67 
Per share (diluted)0.27 0.18 0.18 0.61 0.66 
Cash, cash equivalents, and short-term investments20.2 44.8 87.6 20.2 87.6 
Working (deficit) capital(1)
(60.9)(57.6)32.8 (60.9)32.8 
Net debt(1)
518.7 482.0 331.8 518.7 331.8 

(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures 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, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.

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

 TSX: ERO
 NYSE: ERO
2024 GUIDANCE(*)

The Company is updating production guidance for both the Caraíba and Tucumã Operations, resulting in a consolidated copper production guidance for the year of 43,000 to 48,000 tonnes in concentrate.

Due to the anticipated delay in achieving commercial production at the Tucumã Operation, the Company is narrowing 2024 C1 cash cost guidance to only include the Caraíba Operations. The Company is reaffirming full-year C1 cash cost guidance for the Caraíba Operations of $1.80 to $2.00 per pound of copper produced. Positive factors, including improved concentrate treatment and refining charges secured as of May 2024, a higher gold byproduct credit, and a more favorable USD to BRL exchange rate, are expected to more than offset the impact of lower projected copper production.

At the Xavantina Operations, the Company is reaffirming increased full-year gold production guidance of 60,000 to 65,000 ounces, with similar production levels and unit cost performance expected in Q4 2024 compared to Q3 2024. Consequently, the Company is reaffirming its reduced gold cost guidance ranges, including C1 cash cost guidance of $450 to $550 per ounce, and AISC guidance of $900 to $1,000 per ounce.

The Company is also maintaining consolidated 2024 capital expenditure guidance of $303 to $348 million.

The Company's cost guidance for 2024 assumes a foreign exchange rate of 5.00 BRL per USD, a gold price of $1,900 per ounce and a silver price of $23.00 per ounce for Q4 2024.


Original GuidanceUpdated Guidance
Consolidated Copper Production (tonnes)
Caraíba Operations
42,000 - 47,000
35,000 - 37,000
Tucumã Operation
17,000 - 25,000
8,000 - 11,000
Total
59,000 - 72,000
43,000 - 48,000
Caraíba Operations C1 Cash Cost(1) Guidance
$1.80 - $2.00
Unchanged
The Xavantina Operations
Au Production (ounces)
55,000 - 60,000
60,000 - 65,000
Gold C1 Cash Cost(1) Guidance
$550 - $650
$450 - $550
Gold AISC(1) Guidance
$1,050 - $1,150
$900 - $1,000

*    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 Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors.
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within the MD&A.
7
Ero Copper Corp
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 Wednesday, November 6, 2024 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results.


Date:
Wednesday, November 6, 2024
Time:11:30 am Eastern time (8:30 am Pacific time)
Dial in:
Canada/USA Toll Free: 1-844-763-8274,
International: +1-647-484-8814
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/10193082/fd98e68590)
Webcast:
To access the webcast, click here
(https://event.choruscall.com/mediaframe/webcast.html?webcastid=1q4Qy6dz)
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:1437453

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, copper C1 cash cost including foreign exchange hedges, 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 nine months ended September 30, 2024 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.

8
Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

 TSX: ERO
 NYSE: ERO
Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges

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

Reconciliation:2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Cost of production
$40,149 $41,945 $39,345 $124,321 $113,397 
Add (less):
Transportation costs & other1,283 1,283 1,614 3,818 4,686 
Treatment, refining, and other3,170 4,058 6,574 12,398 20,991 
By-product credits(6,584)(3,431)(3,022)(12,455)(9,536)
Incentive payments(1,138)(1,174)(1,609)(3,511)(3,975)
Net change in inventory(1,220)(468)2,835 (5,581)2,973 
Foreign exchange translation and other
3 21 (171)17 (169)
C1 cash costs35,663 42,234 45,566 119,007 128,367 
(Gain) loss on foreign exchange hedges1,965 46 (3,458)1,735 (7,232)
C1 cash costs including foreign exchange hedges$37,628 $42,280 $42,108 $120,742 $121,135 

Mining
$26,529 $27,881 $27,258 $79,666 $76,262 
Processing7,069 7,927 8,362 22,173 22,559 
Indirect5,479 5,799 6,394 17,225 18,091 
Production costs39,077 41,607 42,014 119,064 116,912 
By-product credits(6,584)(3,431)(3,022)(12,455)(9,536)
Treatment, refining and other3,170 4,058 6,574 12,398 20,991 
C1 cash costs35,663 42,234 45,566 119,007 128,367 
(Gain) loss on foreign exchange hedges1,965 46 (3,458)1,735 (7,232)
C1 cash costs including foreign exchange hedges$37,628 $42,280 $42,108 $120,742 $121,135 
Costs per pound
Total copper produced (lbs, 000)21,871 19,548 23,734 59,257 70,761 
Mining$1.22 $1.42 $1.15 $1.34 $1.08 
Processing$0.32 $0.41 $0.35 $0.38 $0.32 
Indirect$0.25 $0.30 $0.27 $0.29 $0.26 
By-product credits$(0.30)$(0.18)$(0.13)$(0.21)$(0.13)
Treatment, refining and other$0.14 $0.21 $0.28 $0.21 $0.30 
Copper C1 cash costs$1.63 $2.16 $1.92 $2.01 $1.83 
(Gain) loss on foreign exchange hedges$0.09 $— $(0.15)$0.03 $(0.10)
Copper C1 cash costs including foreign exchange hedges$1.72 $2.16 $1.77 $2.04 $1.73 
9
Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

 TSX: ERO
 NYSE: ERO
Gold 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:
2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Cost of production
$6,220 $7,580 $6,323 $21,055 $18,087 
Add (less):
Incentive payments(378)(226)(320)(1,047)(1,038)
Net change in inventory1,378 (322)213 1,320 797 
By-product credits(232)(259)(240)(680)(579)
Smelting and refining
79 97 101 266 240 
Foreign exchange translation and other
203 215 453 650 510 
C1 cash costs$7,270 $7,085 $6,530 $21,564 $18,017 
Site general and administrative1,321 1,350 1,304 4,024 3,874 
Accretion of mine closure and rehabilitation provision82 88 112 262 328 
Sustaining capital expenditure2,784 2,653 4,258 8,691 10,801 
Sustaining lease payments1,801 1,908 1,832 5,831 5,232 
Royalties and production taxes686 862 808 2,058 1,702 
AISC$13,944 $13,946 $14,844 $42,430 $39,954 

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

 TSX: ERO
 NYSE: ERO
Costs
Mining
$3,852 $3,705 $3,140 $11,377 $8,724 
Processing2,419 2,277 2,165 6,955 6,118 
Indirect1,152 1,265 1,364 3,646 3,514 
Production costs7,423 7,247 6,669 21,978 18,356 
Smelting and refining costs
79 97 101 266 240 
By-product credits(232)(259)(240)(680)(579)
C1 cash costs$7,270 $7,085 $6,530 $21,564 $18,017 
Site general and administrative1,321 1,350 1,304 4,024 3,874 
Accretion of mine closure and rehabilitation provision82 88 112 262 328 
Sustaining capital expenditure2,784 2,653 4,258 8,691 10,801 
Sustaining leases1,801 1,908 1,832 5,831 5,232 
Royalties and production taxes686 862 808 2,058 1,702 
AISC$13,944 $13,946 $14,844 $42,430 $39,954 
Costs per ounce
Total gold produced (ounces)13,485 16,555 17,579 48,274 42,355 
Mining$286 $224 $179 $236 $206 
Processing$179 $138 $123 $144 $144 
Indirect$85 $76 $78 $76 $83 
Smelting and refining$6 $6 $6 $6 $6 
By-product credits$(17)$(16)$(15)$(15)$(14)
Gold C1 cash cost$539 $428 $371 $447 $425 
Gold AISC$1,034 $842 $844 $879 $943 
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:
2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Net Income (Loss)
$41,367 $(53,399)$2,811 $(18,862)$57,252 
Adjustments:
Finance expense
4,039 4,565 8,017 13,238 20,538 
Finance income
(781)(1,361)(2,976)(3,610)(10,476)
Income tax expense (recovery)
8,331 (8,267)(807)(1,789)9,632 
Amortization and depreciation
21,555 22,294 21,299 67,145 58,044 
EBITDA$74,511 $(36,168)$28,344 $56,122 $134,990 
Foreign exchange (gain) loss
(17,246)70,454 13,937 72,204 (9,741)
Share based compensation4,859 6,075 (1,185)17,479 8,741 
Write-down of exploration and evaluation asset467 10,745 — 11,212 — 
Unrealized (gain) loss on commodity derivatives
(360)436 1,814 12 (840)
Adjusted EBITDA$62,231 $51,542 $42,910 $157,029 $133,150 

11
Ero Copper Corp
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:
2024 - Q32024 - Q22023 - Q32024 - YTD2023 - YTD
Net income (loss) as reported attributable to the owners of the Company
$40,857 $(53,247)$2,525 $(19,531)$56,255 
Adjustments:
Share based compensation4,859 6,075 (1,185)17,479 8,741 
Unrealized foreign exchange (gain) loss on USD denominated balances in MCSA
(11,860)48,517 9,481 47,914 (4,988)
Unrealized foreign exchange (gain) loss on foreign exchange derivative contracts
(9,807)16,006 7,530 15,503 2,300 
Write-down of exploration and evaluation asset465 10,745 — 11,210 — 
Unrealized (gain) loss on commodity derivatives
(367)434 1,808 3 (836)
Tax effect on the above adjustments3,431 (9,904)(2,873)(9,601)540 
Adjusted net income attributable to owners of the Company$27,578 $18,626 $17,286 $62,977 $62,012 
Weighted average number of common shares
Basic103,239,881 103,082,363 93,311,434 103,026,138 92,767,525 
Diluted103,973,827 103,961,615 94,009,268 103,742,304 93,643,940 
Adjusted EPS
Basic$0.27 $0.18 $0.19 $0.61 $0.67 
Diluted$0.27 $0.18 $0.18 $0.61 $0.66 

12
Ero Copper Corp
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.

September 30, 2024June 30, 2024December 31, 2023September 30, 2023
Current portion of loans and borrowings$39,383 $39,889 $20,381 $11,764 
Long-term portion of loans and borrowings499,527486,919405,852407,656
Less:
Cash and cash equivalents(20,229)(44,773)(111,738)(44,757)
Short-term investments— — — (42,843)
Net debt (cash) $518,681 $482,035 $314,495 $331,820 

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.

September 30, 2024June 30, 2024December 31, 2023September 30, 2023
Current assets$126,808 $124,554 $199,487 $174,113 
Less: Current liabilities(187,708)(182,143)(173,800)(141,284)
Working (deficit) capital
$(60,900)$(57,589)$25,687 $32,829 
Cash and cash equivalents20,229 44,773 111,738 44,757 
Short-term investments— — — 42,843 
Available undrawn revolving credit facilities80,000 100,000 150,000 150,000 
Available undrawn prepayment facilities(1)
$25,000 $25,000 $— $— 
Available liquidity$125,229 $169,773 $261,738 $237,600 

(1) In May 2024, the Company entered into a $50.0 million non-priced copper prepayment facility arrangement. Through the end of 2024, the Company has the option to increase the size of the facility from $50.0 million to $75.0 million.
13
Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada

 TSX: ERO
 NYSE: ERO
ABOUT ERO COPPER CORP

Ero Copper is a high-margin, high-growth copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"), 100% owner of the Company's Caraíba Operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Operation (formerly known as Boa Esperança), an open pit copper mine located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Operation, can be found on SEDAR+ (www.sedarplus.ca/landingpage/) and on EDGAR (www.sec.gov). The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO”.

FOR MORE INFORMATION, PLEASE CONTACT

Courtney Lynn, SVP, Corporate Development, Investor Relations & Sustainability
(604) 335-7504
info@erocopper.com
14
Ero Copper Corp
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; estimated timing for certain milestones, including resolution of power-related challenges and ramp-up of production levels at the Tucumã Operation; the Company's ability to engage an additional underground development contractor and accelerate development rates at the Pilar Mine; expectations related to foreign exchange rates as well as copper concentrate treatment and refining charges; 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 Annual Information Form for the year ended December 31, 2023 (“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 and the Tucumã Operation 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 and interest 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 press release 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.
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Ero Copper Corp
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada
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