Ero Copper’s Tech-Driven Surge: A Blueprint for Mining Resilience

VANCOUVER, British Columbia – August 05, 2026 – Ero Copper Corp. has delivered a powerful demonstration of financial and operational strength, reporting second-quarter results that significantly surpassed revenue expectations and showcased remarkable progress in strengthening its balance sheet. The Brazil-focused miner announced a 49% quarter-on-quarter surge in cash flow from operations to $137.9 million, enabling a $38.0 million reduction in net debt and driving its leverage ratio down to a robust 0.8x.

These figures, which sent a positive signal to the market, are the culmination of a multi-faceted strategy combining technological innovation at its mine sites, sophisticated financial hedging, and a company-wide efficiency drive. The results position Ero Copper for a strong second half of 2026, backed by a clear pipeline for future growth.

“The progress we have made over the past 18 months has materially strengthened the Company's financial position and is delivering true value to our business - core commitments we made to our shareholders in early 2025,” said Makko DeFilippo, President & Chief Executive Officer. “We are entering the second half with momentum across all three operations and a clear line of sight to further production and cash flow growth.”

Operational Overhaul Delivers Tangible Gains

At the heart of Ero Copper's success is the 'OneEro' strategic program, an initiative designed to embed efficiency across its operations. This isn't just corporate jargon; the program is yielding concrete financial benefits. The company has already secured $10 to $15 million in annualized savings from renegotiated contracts and expects over $20 million in savings in 2026 from improved copper smelting and refining terms.

This focus on optimization is evident at each of its Brazilian operations:

• Caraíba Operations: The copper mine is on track to achieve an annual plant throughput record in 2026, processing approximately 20% more ore than in 2025.

• Tucumã Operation: This newer copper mine saw plant throughput jump 27% compared to the first quarter. Innovation is also addressing operational bottlenecks, with a tailings filtration expansion now partially complete. The installation of additional modular filters in the second half of the year promises to further increase capacity.

• Xavantina Operations: The gold mine was the standout performer, with production soaring 170% quarter-on-quarter to 20,553 ounces. This remarkable increase was driven by a two-pronged technological approach. First, the installation of new ventilation and cooling infrastructure in the first half of the year allowed for higher mining rates and access to better-grade stopes, boosting mined gold production by nearly 60%. Second, the company accelerated the processing of historic gold concentrate stockpiles, recovering an impressive 11,860 ounces. This was made possible by the commissioning of a mobile filter press and an industrial dryer—technologies designed to significantly reduce concentrate drying times, especially following the end of the rainy season.

Mastering Market Volatility with Financial Engineering

While operational technology is driving production, financial innovation is protecting the bottom line. Operating in Brazil exposes the company to foreign exchange fluctuations, and a strengthening Brazilian Real (BRL) can inflate US dollar-denominated costs. Ero Copper has masterfully navigated this challenge with a proactive hedging program.

In the second quarter alone, this strategy generated $12.7 million in realized gains, effectively neutralizing the cash flow impact of the stronger BRL on operating costs and capital expenditures. The program, which hedges approximately 70% of consolidated costs, has already delivered nearly $20 million in gains year-to-date.

Looking ahead, the company's financial foresight continues to provide a buffer against uncertainty. Assuming a USD/BRL exchange rate of 5.10 through year-end, the hedge book is expected to generate an additional $20 to $25 million in realized gains. This sophisticated risk management provides a crucial layer of stability, allowing the company to execute its operational plans with greater confidence.

A Glimpse into the Future: The Furnas Growth Engine

While delivering on its current assets, Ero Copper is also building its future. The Furnas Copper-Gold Project, advanced through an earn-in agreement with Vale Base Metals, represents a significant long-term growth catalyst. The company is funding an aggressive exploration and development program to earn a 60% stake in the project, located in the mineral-rich Carajás Province.

Drilling results from the ongoing 45,000-meter Phase 3 program continue to demonstrate high-grade continuity and extensions of mineralization. Over 31,000 meters have been drilled year-to-date, feeding a wealth of data into engineering, geotechnical, and metallurgical studies. The goal is a Pre-Feasibility Study (PFS) slated for 2027.

The potential is vast. A Preliminary Economic Assessment (PEA) published earlier in 2026 outlined a robust, 24-year mine life, with average annual production in the first 15 years projected at 70,000 tonnes of copper and 111,000 ounces of gold. This positions Furnas as a cornerstone asset capable of transforming Ero Copper's production profile for decades to come.

Navigating Guidance and a Bullish Market

Ero Copper’s Q2 performance landed well with a market hungry for copper, a metal essential for the global energy transition. The company's reported revenue of $284.3 million comfortably beat analyst consensus, contributing to a largely bullish sentiment, underscored by a recent upgrade to 'Buy' from BofA Securities and a 'Strong Buy' consensus rating from 14 covering analysts.

The company reaffirmed its full-year consolidated copper production guidance of 67,500 to 77,500 tonnes. For its Xavantina gold mine, it maintained its guidance of 40,000 to 50,000 ounces but noted production would likely be at the low end of that range and significantly weighted to the second half of the year as new infrastructure continues to ramp up. Accordingly, cost guidance for mined gold was updated to reflect this revised production profile.

Capital expenditure guidance saw a slight increase to a range of $285 to $330 million. The additional $10 million is earmarked for a new powerline at Xavantina, another strategic investment to strengthen site infrastructure and support future growth. After an excellent second quarter, Ero Copper appears well-positioned to deliver a strong second half of 2026.