Ero Copper Corp. (TSX: ERO) (NYSE: ERO) is pleased to announce its operating and financial results for the three and nine months ended September 30, 2026. Management will host a conference call tomorrow, Tuesday, November 3, 2026, at 10:30 a.m. Eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.
HIGHLIGHTS
“Ero delivered record financial results in Q3. Significant free cash flow generation enabled us to accelerate our pace of deleveraging – one of the core commitments we have made to our shareholders. Results were supported by continued growth in copper and gold sales volumes, cost savings from our OneEro initiative, and our foreign exchange hedge strategy designed to protect cash operating margins,” said Makko DeFilippo, President & Chief Executive Officer.
“Our operating performance continued to strengthen during the quarter as optimization initiatives launched in 2025 and advanced further in 2026 translated into sustainable improvements across the business. Caraíba and Tucumã delivered sequential throughput gains of 8% and 14%, respectively, and our operations remain on track to deliver record consolidated copper production in 2026. At Tucumã, the tailings filtration expansion remains on track for completion by year-end. At Xavantina, increased recovery of gold from historic concentrate stockpiles supported higher quarterly gold sales, while mine operations achieved record underground development, which we expect will translate to higher sustained mining rates and additional flexibility in the coming quarters.
“We are pleased with the progress across our operations, our continued commitment to deleveraging and the significant progress we have made throughout our growth initiatives this year, including the completion of all drilling requirements at Furnas more than 2 years ahead of schedule.”
| (1) | These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three and nine months ended September 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. |
| (2) | Cash available for deleveraging, on a year-to-date basis, represents cash flow from operations of $421.9 million, less capital expenditures of $222.3 million ($203.1 million for additions to mineral properties, plant and equipment and $19.2 million for additions to exploration and evaluation assets) and interest, lease, and finance payments of $63.2 million ($36.7 million for interest paid on loans and borrowings, $16.4 million for lease liability payments and $10.1 million for other finance expenses paid). Of the resulting $136.4 million of cash available for deleveraging, $132.0 million was applied to debt principal repayments, equivalent to approximately $0.97 of every $1.00 available. |
| (3) | The Company’s net debt leverage ratio as of September 30, 2026 was 0.5x, based on net debt of $353.5 million and trailing 12-month adjusted EBITDA of $656.6 million. By comparison, the ratio as of December 31, 2025 was 1.2x, based on net debt of $501.7 million and trailing 12-month adjusted EBITDA of $409.7 million. |
THIRD QUARTER REVIEW
The Caraíba Operations
The Tucumã Operation
The Xavantina Operations
| (1) | These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three and nine months ended September 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. |
| OPERATING HIGHLIGHTS | ||||||||||||||||
| 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | ||||||||||||
| Copper (Caraíba Operations) | ||||||||||||||||
| Ore Mined (tonnes) | 1,142,352 | 1,098,614 | 1,018,972 | 3,226,543 | 2,507,975 | |||||||||||
| Ore Processed (tonnes) | 1,161,102 | 1,074,182 | 996,661 | 3,307,493 | 2,481,508 | |||||||||||
| Grade (% Cu) | 0.90 | 0.87 | 1.01 | 0.90 | 1.14 | |||||||||||
| Recovery (%) | 89.4 | 89.0 | 90.4 | 88.9 | 90.6 | |||||||||||
| Cu Production (tonnes) | 9,387 | 8,351 | 9,085 | 26,564 | 25,604 | |||||||||||
| Cu Production (000 lbs) | 20,694 | 18,411 | 20,030 | 58,564 | 56,448 | |||||||||||
| Cu Sold in Concentrate (tonnes) | 9,537 | 7,926 | 9,080 | 26,668 | 25,416 | |||||||||||
| Cu Sold in Concentrate (000 lbs) | 21,026 | 17,474 | 20,017 | 58,793 | 56,031 | |||||||||||
| Cu C1 cash cost(1) | $ | 2.89 | $ | 2.76 | $ | 2.32 | $ | 2.81 | $ | 2.20 | ||||||
| Copper (Tucumã Operation) | ||||||||||||||||
| Ore Mined (tonnes) | 1,224,488 | 590,600 | 1,333,748 | 2,271,772 | 2,460,850 | |||||||||||
| Ore Processed (tonnes) | 814,137 | 715,415 | 575,041 | 2,093,269 | 1,288,054 | |||||||||||
| Grade (% Cu) | 1.30 | 1.44 | 1.51 | 1.44 | 1.74 | |||||||||||
| Recovery (%) | 85.0 | 88.2 | 89.2 | 87.1 | 88.0 | |||||||||||
| Cu Production (tonnes) | 8,958 | 8,964 | 7,579 | 26,383 | 18,997 | |||||||||||
| Cu Production (000 lbs) | 19,749 | 19,763 | 16,707 | 58,164 | 41,880 | |||||||||||
| Cu Sold in Concentrate (tonnes) | 8,638 | 8,581 | 6,622 | 25,970 | 17,758 | |||||||||||
| Cu Sold in Concentrate (000 lbs) | 19,044 | 18,918 | 14,598 | 57,254 | 39,149 | |||||||||||
| Cu C1 cash cost(1)(2) | $ | 2.12 | $ | 2.10 | $ | 1.62 | $ | 2.07 | $ | 1.62 | ||||||
| Gold (Xavantina Operations) | ||||||||||||||||
| Ore Mined (tonnes) | 56,527 | 49,484 | 50,268 | 138,831 | 121,325 | |||||||||||
| Ore Processed (tonnes) | 55,478 | 48,564 | 47,865 | 141,170 | 118,922 | |||||||||||
| Grade (g / tonne) | 4.90 | 6.20 | 8.15 | 5.55 | 7.46 | |||||||||||
| Recovery (%) | 89.7 | 89.8 | 78.4 | 87.5 | 84.7 | |||||||||||
| Au Production (oz) | 7,844 | 8,693 | 9,073 | 22,032 | 23,454 | |||||||||||
| Historic Au Concentrate Recovered (oz) | 17,414 | 11,860 | — | 31,386 | — | |||||||||||
| Au Sold in Doré (oz) | 4,949 | 6,663 | 8,439 | 17,631 | 22,549 | |||||||||||
| Au Sold in Concentrate (oz)(3) | 20,008 | 10,353 | — | 34,672 | — | |||||||||||
| Au Production C1 cash cost(1) | $ | 1,892 | $ | 1,586 | $ | 1,086 | $ | 1,828 | $ | 1,100 | ||||||
| Au Production AISC(1) | $ | 3,607 | $ | 2,881 | $ | 2,425 | $ | 3,528 | $ | 2,307 | ||||||
| Historic Au Concentrate C1 cash cost(1) | $ | 621 | $ | 633 | — | $ | 645 | — | ||||||||
| Historic Au Concentrate AISC(1) | $ | 710 | $ | 715 | — | $ | 733 | — | ||||||||
| (1) | Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three and nine months ended September 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. | |||||||||||||||
| (2) | The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, copper C1 cash costs for the Tucumã Operation reflect costs from Q3 2025 onward only. | |||||||||||||||
| (3) | Gold sold in concentrate includes gold ounces produced in flotation and the historic gold concentrate stockpile. | |||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| ($ in millions, except per share amounts) | ||||||||||||||||||
| 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | ||||||||||||||
| Revenues | $ | 348.0 | $ | 284.3 | $ | 177.1 | $ | 895.5 | $ | 465.7 | ||||||||
| Gross profit | 169.6 | 121.4 | 57.4 | 396.9 | 180.2 | |||||||||||||
| EBITDA(1) | 195.8 | 159.8 | 90.8 | 531.0 | 322.8 | |||||||||||||
| Adjusted EBITDA(1) | 200.6 | 144.0 | 77.1 | 469.8 | 223.0 | |||||||||||||
| Cash flow from operations | 191.2 | 137.9 | 110.3 | 421.9 | 266.0 | |||||||||||||
| Net income | 118.0 | 90.7 | 36.5 | 318.0 | 188.2 | |||||||||||||
| Net income attributable to owners of the Company | 116.2 | 89.5 | 36.0 | 314.6 | 186.8 | |||||||||||||
| Per share (basic) | 1.11 | 0.86 | 0.35 | 3.02 | 1.80 | |||||||||||||
| Per share (diluted) | 1.10 | 0.85 | 0.35 | 2.97 | 1.80 | |||||||||||||
| Adjusted net income attributable to owners of the Company(1) | 129.3 | 87.4 | 27.9 | 289.1 | 111.9 | |||||||||||||
| Per share (basic) | 1.24 | 0.84 | 0.27 | 2.77 | 1.08 | |||||||||||||
| Per share (diluted) | 1.22 | 0.83 | 0.27 | 2.73 | 1.08 | |||||||||||||
| Cash, cash equivalents, and short-term investments | 114.1 | 101.7 | 66.3 | 114.1 | 66.3 | |||||||||||||
| Working capital (deficit)(1) | 89.4 | 87.7 | (45.2 | ) | 89.4 | (45.2 | ) | |||||||||||
| Available liquidity(1) | 264.1 | 181.7 | 111.3 | 264.1 | 111.3 | |||||||||||||
| Net debt(1) | 353.5 | 452.7 | 545.5 | 353.5 | 545.5 | |||||||||||||
| (1) | Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three and nine months ended September 30, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release. | |||||||||||||||||
2026 GUIDANCE
Consolidated copper production guidance remains unchanged at 67,500 to 77,500 tonnes, with Q4 expected to be the strongest production quarter of the year at both copper operations. At the Caraíba Operations, Q4 copper production is expected to benefit from higher mined and processed copper grades. At the Tucumã Operation, higher plant throughput and improved recoveries are expected to offset lower planned copper grades.
Full-year consolidated copper C1 cash cost(1) guidance has been updated to $2.25 to $2.45 per pound produced, reflecting the impact of continued strength in the BRL, inflationary pressures arising from the ongoing U.S.-Iran conflict, and delayed access to the higher-grade pit bottom of Surubim at the Caraíba Operations during the third quarter. Unit costs are expected to decline in Q4 at both of the copper operations driven by increased production.
The cash impact of the stronger BRL has been offset by year-to-date realized gains of $30.3 million from the Company’s foreign exchange hedge program. Allocating the year-to-date realized foreign exchange hedge gains across the Company’s operations on a pro rata basis would translate to an estimated reduction of approximately $0.15 per pound on full-year consolidated copper C1 cash costs(1), equating to $2.10 to $2.30 per pound produced, generally in line with the Company’s original 2026 guidance.
Gold from Xavantina is expected to total 75,000 to 80,000 ounces in 2026, including 30,000 to 35,000 ounces of mined production and approximately 45,000 ounces recovered from historic gold concentrate stockpiles. Mined gold production guidance has been revised to reflect extended downtime in H1 related to the installation of key ventilation and cooling infrastructure and lower mined and processed grades in Q3. Mined production is expected to increase in Q4, supported by higher mining rates and grades following the acceleration of underground development during Q3. As a result, gold C1 cash cost(1) and AISC(1) guidance has been updated to $1,650 to $1,800 per ounce and $3,300 to $3,600 per ounce, respectively. Allocating the year-to-date realized foreign exchange hedge gains across the Company’s operations on a pro rata basis would translate to an estimated reduction of approximately $50 per ounce on Xavantina’s full-year C1 cash costs(1) and AISC(1) equating to $1,600 to $1,750 and $3,250 to $3,550 per ounce, respectively.
Gold recovered from historic concentrate stockpiles is expected to total approximately 45,000 ounces, including over 31,000 ounces recovered through the end of Q3 and approximately 15,000 ounces projected for Q4. The Q4 shipment outlook includes more than 6,000 ounces invoiced in October and approximately 9,000 ounces contained in concentrate at site undergoing drying prior to shipment.
Total capital expenditure guidance is maintained in the range of $285 to $330 million.
| 2026 Production and Cost Guidance | |||||||
| Previous Guidance | Current Guidance | Current Guidance with YTD $30M FX Gain Applied(1) | |||||
| Consolidated Copper Production (tonnes) | |||||||
| Caraíba Operations | 35,000 – 40,000 | 35,000 – 40,000 | 35,000 – 40,000 | ||||
| Tucumã Operation | 32,500 – 37,500 | 32,500 – 37,500 | 32,500 – 37,500 | ||||
| Total Copper | 67,500 – 77,500 | 67,500 – 77,500 | 67,500 – 77,500 | ||||
| Consolidated Copper C1 Cash Costs ($/lb)(2) | |||||||
| Caraíba Operations | $2.30 – $2.50 | $2.55 – $2.75 | $2.35 – $2.55 | ||||
| Tucumã Operation | $1.95 – $2.15 | $1.95 – $2.15 | $1.85 – $2.05 | ||||
| Consolidated Copper Operations | $2.15 – $2.35 | $2.25 – $2.45 | $2.10 – $2.30 | ||||
| The Xavantina Operations (oz) | |||||||
| Mined Au Production | 40,000 – 50,000 | 30,000 – 35,000 | 30,000 – 35,000 | ||||
| Au Recovered from Historic Stockpiles | — | Approx. 45,000 | Approx. 45,000 | ||||
| Total Gold | 40,000 – 50,000 | 75,000 – 80,000 | 75,000 – 80,000 | ||||
| Mined Gold Production Costs ($/oz) | |||||||
| C1 Cash Cost(2) | $1,100 – $1,350 | $1,650 – $1,800 | $1,600 – $1,750 | ||||
| AISC(2) | $2,200 – $2,700 | $3,300 – $3,600 | $3,250 – $3,550 | ||||
| Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company’s SEDAR+ and EDGAR filings, including the most recent Annual Information Form, for a detailed summary of risk factors. | |||||||
| (1) | Assumes $30.3 million realized gains through the end of Q3 from the Company’s foreign exchange hedge program, allocated to the operations for the purposes of calculating C1 cash costs as follows: 55% ($16.7 million) to Caraíba, 30% ($9.1 million) to Tucumã, and 15% ($4.6 million) to Xavantina, amounts may not sum due to rounding. | ||||||
| (2) | Please refer to the section titled “Reconciliation of Non-IFRS Measures” within this Press Release. | ||||||
| 2026 Capital Expenditure Guidance | ||
| Figures presented in the table below are in USD millions. | ||
| Current Guidance | ||
| Caraíba Operations | $170 – $185 | |
| Tucumã Operation | $35 – $45 | |
| Xavantina Operations | $50 – $60 | |
| Furnas Copper-Gold Project, Other Exploration & Corporate | $30 – $40 | |
| Total | $285 – $330 | |
| Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company’s most recent AIF and Management of Risks and Uncertainties in the MD&A for complete risk factors. | ||
CONFERENCE CALL DETAILS
The Company will hold a conference call on Tuesday, November 3, 2026 at 10:30 a.m. Eastern Time to discuss these results. A results presentation will be available for download via the webcast link and in the Presentations section of the Company’s website on the day of the conference call.
| Date: | Tuesday, November 3, 2026 |
| Time: | 10:30 a.m. Eastern Time |
| Dial in: | Canada/USA Toll Free: 1-833-752-3380 International: +1-647-846-2821 |
Please dial in 5-10 minutes prior to the start of the call or pre-register using this link to bypass the live operator queue.
(https://dpregister.com/sreg/10212017/104e507c7ef)Webcast:
To access the webcast, click here.
(https://event.choruscall.com/mediaframe/webcast.html?webcastid=aGktY9cu)
Replay:Canada/USA: 1-855-669-9658, International: +1-412-317-0088
For country-specific dial-in numbers, click here.
(https://services.choruscall.com/ccforms/replay.html)Replay Passcode:1109122
Copper C1 cash cost
The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure. Amounts in US$ thousands, except per-pound amounts and where otherwise indicated.
| The Caraíba Operations | ||||||||||||||||||||
| Reconciliation: | 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | |||||||||||||||
| Cost of production | $ | 65,552 | $ | 59,098 | $ | 50,261 | $ | 187,002 | $ | 132,870 | ||||||||||
| Add (less): | ||||||||||||||||||||
| Transportation costs & other | 4,079 | 2,895 | 1,731 | 9,870 | 4,845 | |||||||||||||||
| Treatment, refining, and other | 610 | (5,225 | ) | 2,508 | (2,451 | ) | 7,258 | |||||||||||||
| By-product credits | (8,726 | ) | (8,045 | ) | (6,693 | ) | (26,848 | ) | (17,597 | ) | ||||||||||
| Incentive payments | (1,607 | ) | (1,700 | ) | (1,425 | ) | (4,841 | ) | (4,171 | ) | ||||||||||
| Net change in inventory | (71 | ) | 3,647 | 199 | 2,093 | 1,247 | ||||||||||||||
| Foreign exchange and other | (60 | ) | 106 | (46 | ) | (41 | ) | (177 | ) | |||||||||||
| C1 cash costs | $ | 59,777 | $ | 50,776 | $ | 46,535 | $ | 164,784 | $ | 124,275 | ||||||||||
| Mining | $ | 46,594 | $ | 42,510 | $ | 33,943 | $ | 131,515 | $ | 91,181 | ||||||||||
| Processing | 9,098 | 9,986 | 8,222 | 28,186 | 21,123 | |||||||||||||||
| Indirect | 8,122 | 8,655 | 6,824 | 24,512 | 17,465 | |||||||||||||||
| Production costs | 63,814 | 61,151 | 48,989 | 184,213 | 129,769 | |||||||||||||||
| By-product credits | (8,726 | ) | (8,045 | ) | (6,693 | ) | (26,848 | ) | (17,597 | ) | ||||||||||
| Treatment, refining and other | 4,689 | (2,330 | ) | 4,239 | 7,419 | 12,103 | ||||||||||||||
| C1 cash costs | $ | 59,777 | $ | 50,776 | $ | 46,535 | $ | 164,784 | $ | 124,275 | ||||||||||
| 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | ||||||||||||||||
| Costs per pound | ||||||||||||||||||||
| Total copper produced (lbs, 000) | 20,694 | 18,411 | 20,030 | 58,564 | 56,448 | |||||||||||||||
| Mining | $ | 2.25 | $ | 2.31 | $ | 1.69 | $ | 2.25 | $ | 1.62 | ||||||||||
| Processing | $ | 0.44 | $ | 0.54 | $ | 0.41 | $ | 0.48 | $ | 0.37 | ||||||||||
| Indirect | $ | 0.39 | $ | 0.47 | $ | 0.34 | $ | 0.42 | $ | 0.31 | ||||||||||
| By-product credits | $ | (0.42 | ) | $ | (0.44 | ) | $ | (0.33 | ) | $ | (0.46 | ) | $ | (0.31 | ) | |||||
| Treatment, refining and other | $ | 0.23 | $ | (0.12 | ) | $ | 0.21 | $ | 0.12 | $ | 0.21 | |||||||||
| Copper C1 cash costs | $ | 2.89 | $ | 2.76 | $ | 2.32 | $ | 2.81 | $ | 2.20 | ||||||||||
| The Tucumã Operation | ||||||||||||||||||||
| Reconciliation: | 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | |||||||||||||||
| Cost of production | $ | 33,646 | $ | 31,632 | $ | 18,308 | $ | 95,016 | $ | 35,504 | ||||||||||
| Add (less): | ||||||||||||||||||||
| Transportation costs & other | 8,191 | 9,393 | 4,880 | 23,975 | 4,880 | |||||||||||||||
| Treatment, refining, and other | 163 | 378 | 1,486 | 3,012 | 1,486 | |||||||||||||||
| By-product credits | (566 | ) | (425 | ) | — | (1,692 | ) | — | ||||||||||||
| Incentive payments | (552 | ) | (480 | ) | (401 | ) | (1,578 | ) | (401 | ) | ||||||||||
| Net change in inventory | 981 | 1,021 | 2,783 | 1,446 | 2,783 | |||||||||||||||
| Pre-commercial cost of production | — | — | — | — | (17,196 | ) | ||||||||||||||
| Foreign exchange and other | (6 | ) | 4 | — | (6 | ) | — | |||||||||||||
| C1 cash costs | $ | 41,857 | $ | 41,523 | $ | 27,056 | $ | 120,173 | $ | 27,056 | ||||||||||
| Mining | $ | 10,943 | $ | 8,963 | $ | 4,552 | $ | 26,444 | $ | 4,552 | ||||||||
| Processing | 18,649 | 18,566 | 12,455 | 55,191 | 12,455 | |||||||||||||
| Indirect | 4,477 | 4,648 | 3,698 | 13,243 | 3,698 | |||||||||||||
| Production costs | 34,069 | 32,177 | 20,705 | 94,878 | 20,705 | |||||||||||||
| By-product credits | (566 | ) | (425 | ) | — | (1,692 | ) | — | ||||||||||
| Treatment, refining and other | 8,354 | 9,771 | 6,351 | 26,987 | 6,351 | |||||||||||||
| C1 cash costs | $ | 41,857 | $ | 41,523 | $ | 27,056 | $ | 120,173 | $ | 27,056 | ||||||||
| 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | ||||||||||||||
| Costs per pound | ||||||||||||||||||
| Total copper produced (lbs, 000) | 19,749 | 19,763 | 16,707 | 58,164 | 16,707 | |||||||||||||
| Mining | $ | 0.55 | $ | 0.45 | $ | 0.27 | $ | 0.45 | $ | 0.27 | ||||||||
| Processing | $ | 0.94 | $ | 0.94 | $ | 0.75 | $ | 0.95 | $ | 0.75 | ||||||||
| Indirect | $ | 0.23 | $ | 0.24 | $ | 0.22 | $ | 0.23 | $ | 0.22 | ||||||||
| By-product credits | $ | (0.03 | ) | $ | (0.02 | ) | $ | — | $ | (0.03 | ) | $ | — | |||||
| Treatment, refining and other | $ | 0.43 | $ | 0.49 | $ | 0.38 | $ | 0.47 | $ | 0.38 | ||||||||
| Copper C1 cash costs | $ | 2.12 | $ | 2.10 | $ | 1.62 | $ | 2.07 | $ | 1.62 | ||||||||
Gold Production C1 cash cost and gold AISC
The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure. Amounts in US$ thousands, except per-ounce amounts or where otherwise indicated.
| Reconciliation: | 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | |||||||||||||||
| Cost of production | $ | 16,684 | $ | 16,618 | $ | 10,032 | $ | 47,179 | $ | 25,018 | ||||||||||
| Less: Gold concentrate re-handling costs | (3,793 | ) | (3,682 | ) | — | (9,116 | ) | — | ||||||||||||
| Cost of mine production | $ | 12,891 | $ | 12,936 | $ | 10,032 | $ | 38,063 | $ | 25,018 | ||||||||||
| Add (less): | ||||||||||||||||||||
| Incentive payments | (482 | ) | (427 | ) | (364 | ) | (1,229 | ) | (842 | ) | ||||||||||
| Net change in inventory | 996 | 357 | 191 | 546 | 1,593 | |||||||||||||||
| By-product credits | (146 | ) | (284 | ) | (208 | ) | (619 | ) | (478 | ) | ||||||||||
| Smelting, refining and selling expenses | 1,587 | 1,167 | 217 | 3,523 | 540 | |||||||||||||||
| Foreign exchange and other | (8 | ) | 40 | (12 | ) | (6 | ) | (41 | ) | |||||||||||
Gold production C1 cash costs |
$ | 14,838 | $ | 13,789 | $ | 9,856 | $ | 40,278 | $ | 25,790 | ||||||||||
| Site general and administrative | 1,860 | 1,647 | 1,602 | 4,916 | 3,954 | |||||||||||||||
| Accretion of mine closure and rehabilitation provision | 149 | 152 | 151 | 446 | 437 | |||||||||||||||
| Sustaining capital expenditure | 8,046 | 5,867 | 7,307 | 22,049 | 15,651 | |||||||||||||||
| Sustaining lease payments | 2,958 | 3,077 | 2,524 | 8,657 | 6,858 | |||||||||||||||
| Royalties and production taxes | 436 | 516 | 566 | 1,386 | 1,415 | |||||||||||||||
| Gold production AISC | $ | 28,287 | $ | 25,048 | $ | 22,006 | $ | 77,732 | $ | 54,105 | ||||||||||
| 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | ||||||||||||||||
| Costs | ||||||||||||||||||||
| Mining | $ | 7,156 | $ | 6,894 | $ | 4,871 | $ | 19,870 | $ | 13,183 | ||||||||||
| Processing | 3,515 | 3,414 | 2,787 | 9,869 | 7,465 | |||||||||||||||
| Indirect | 2,726 | 2,598 | 2,189 | 7,635 | 5,080 | |||||||||||||||
| Production costs | 13,397 | 12,906 | 9,847 | 37,374 | 25,728 | |||||||||||||||
| Treatment, refining and other | 1,587 | 1,167 | 217 | 3,523 | 540 | |||||||||||||||
| By-product credits | (146 | ) | (284 | ) | (208 | ) | (619 | ) | (478 | ) | ||||||||||
| Gold production C1 cash costs | $ | 14,838 | $ | 13,789 | $ | 9,856 | $ | 40,278 | $ | 25,790 | ||||||||||
| Site general and administrative | 1,860 | 1,647 | 1,602 | 4,916 | 3,954 | |||||||||||||||
| Accretion of mine closure and rehabilitation provision | 149 | 152 | 151 | 446 | 437 | |||||||||||||||
| Sustaining capital expenditure | 8,046 | 5,867 | 7,307 | 22,049 | 15,651 | |||||||||||||||
| Sustaining lease payments | 2,958 | 3,077 | 2,524 | 8,657 | 6,858 | |||||||||||||||
| Royalties and production taxes | 436 | 516 | 566 | 1,386 | 1,415 | |||||||||||||||
| Gold production AISC | $ | 28,287 | $ | 25,048 | $ | 22,006 | $ | 77,732 | $ | 54,105 | ||||||||||
| Costs per ounce | ||||||||||||||||||||
| Total gold produced (ounces) | 7,844 | 8,693 | 9,073 | 22,032 | 23,454 | |||||||||||||||
| Mining | $ | 912 | $ | 793 | $ | 537 | $ | 902 | $ | 562 | ||||||||||
| Processing | $ | 448 | $ | 393 | $ | 307 | $ | 448 | $ | 318 | ||||||||||
| Indirect | $ | 349 | $ | 299 | $ | 241 | $ | 346 | $ | 216 | ||||||||||
| Treatment, refining and other | $ | 202 | $ | 134 | $ | 24 | $ | 160 | $ | 23 | ||||||||||
| By-product credits | $ | (19 | ) | $ | (33 | ) | $ | (23 | ) | $ | (28 | ) | $ | (19 | ) | |||||
| Gold production C1 cash cost | $ | 1,892 | $ | 1,586 | $ | 1,086 | $ | 1,828 | $ | 1,100 | ||||||||||
| Gold production AISC | $ | 3,607 | $ | 2,881 | $ | 2,425 | $ | 3,528 | $ | 2,307 | ||||||||||
Historic Gold Concentrate C1 cash cost and gold AISC
The following table provides a reconciliation of historic gold concentrate C1 cash cost and historic gold concentrate AISC to cost of production, its most directly comparable IFRS measure.
| Reconciliation: | 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | |||||||||||||||
| Cost of production | $ | 16,684 | $ | 16,618 | $ | 10,032 | $ | 47,179 | $ | 25,018 | ||||||||||
| less: Cost of mine production | (12,891 | ) | (12,936 | ) | (10,032 | ) | (38,063 | ) | (25,018 | ) | ||||||||||
| Gold concentrate re-handling costs | $ | 3,793 | $ | 3,682 | $ | — | $ | 9,116 | $ | — | ||||||||||
| Add (less): | ||||||||||||||||||||
| Net change in inventory | 207 | (11 | ) | — | (132 | ) | — | |||||||||||||
| By-product credits | (1,374 | ) | (974 | ) | — | (2,482 | ) | — | ||||||||||||
| Smelting, refining and selling expenses | 8,184 | 4,811 | — | 13,749 | — | |||||||||||||||
| Historic gold concentrate C1 cash costs | $ | 10,810 | $ | 7,508 | $ | — | $ | 20,251 | $ | — | ||||||||||
| Royalties and production taxes | 1,556 | 967 | — | 2,769 | — | |||||||||||||||
| Historic gold concentrate AISC | $ | 12,366 | $ | 8,475 | $ | — | $ | 23,020 | $ | — | ||||||||||
| 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | ||||||||||||||
| Costs | ||||||||||||||||||
| Gold concentrate re-handling costs | 4,000 | 3,671 | — | 8,984 | — | |||||||||||||
| Smelting, refining and selling costs | 8,184 | 4,811 | — | 13,749 | — | |||||||||||||
| By-product credits | (1,374 | ) | (974 | ) | — | (2,482 | ) | — | ||||||||||
| Historic gold concentrate C1 cash costs | $ | 10,810 | $ | 7,508 | $ | — | $ | 20,251 | $ | — | ||||||||
| Royalties and production taxes | 1,556 | 967 | — | 2,769 | — | |||||||||||||
| Historic gold concentrate AISC | $ | 12,366 | $ | 8,475 | $ | — | $ | 23,020 | $ | — | ||||||||
| Costs per ounce | ||||||||||||||||||
| Historic gold concentrate recovered (ounces) | 17,414 | 11,860 | — | 31,386 | — | |||||||||||||
| Gold concentrate re-handling costs | $ | 230 | $ | 310 | $ | — | $ | 286 | $ | — | ||||||||
| Smelting, refining and selling costs | $ | 470 | $ | 406 | $ | — | $ | 438 | $ | — | ||||||||
| By-product credits | $ | (79 | ) | $ | (82 | ) | $ | — | $ | (79 | ) | $ | — | |||||
| Historic gold concentrate C1 cash costs | $ | 621 | $ | 633 | $ | — | $ | 645 | $ | — | ||||||||
| Historic gold concentrate AISC | $ | 710 | $ | 715 | $ | — | $ | 733 | $ | — | ||||||||
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. Amounts in US$ thousands.
| Reconciliation: | 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | |||||||||||||||
| Net Income | $ | 117,954 | $ | 90,749 | $ | 36,513 | $ | 318,014 | $ | 188,168 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Finance expense | 9,952 | 12,678 | 11,331 | 33,694 | 22,030 | |||||||||||||||
| Finance income | (825 | ) | (1,443 | ) | (1,208 | ) | (3,389 | ) | (3,176 | ) | ||||||||||
| Income tax expense | 25,564 | 19,321 | 12,774 | 62,770 | 40,597 | |||||||||||||||
| Amortization and depreciation | 43,117 | 38,514 | 31,369 | 119,950 | 75,204 | |||||||||||||||
| EBITDA | $ | 195,762 | $ | 159,819 | $ | 90,779 | $ | 531,039 | $ | 322,823 | ||||||||||
| Foreign exchange gain | (5,077 | ) | (10,845 | ) | (22,055 | ) | (69,577 | ) | (119,095 | ) | ||||||||||
| Share-based compensation | 7,458 | 1,063 | 6,742 | 11,161 | 15,671 | |||||||||||||||
| Unrealized loss (gain) on commodity derivatives | 2,462 | (6,014 | ) | 1,627 | (2,801 | ) | 3,093 | |||||||||||||
| Others | — | — | — | — | 458 | |||||||||||||||
| Adjusted EBITDA | $ | 200,605 | $ | 144,023 | $ | 77,093 | $ | 469,822 | $ | 222,950 | ||||||||||
Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company
The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.
| Reconciliation: | 2026 – Q3 | 2026 – Q2 | 2025 – Q3 | 2026 – YTD | 2025 – YTD | |||||||||||||||
| Net income as reported attributable to the owners of the Company | $ | 116,237 | $ | 89,543 | $ | 35,978 | $ | 314,551 | $ | 186,753 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Share-based compensation | 7,458 | 1,063 | 6,742 | 11,161 | 15,671 | |||||||||||||||
| Unrealized foreign exchange loss (gain) on USD denominated balances in MCSA | 1,063 | (3,267 | ) | (15,057 | ) | (32,464 | ) | (82,889 | ) | |||||||||||
| Unrealized foreign exchange loss (gain) on foreign exchange derivative contracts | 3,042 | 5,363 | (3,964 | ) | (8,059 | ) | (27,309 | ) | ||||||||||||
| Unrealized loss (gain) on commodity derivatives | 2,452 | (5,870 | ) | 1,574 | (2,685 | ) | 3,020 | |||||||||||||
| Others | — | — | — | — | 458 | |||||||||||||||
| Tax effect on the above adjustments | (1,000 | ) | 575 | 2,661 | 6,589 | 16,221 | ||||||||||||||
| Adjusted net income attributable to owners of the Company | $ | 129,252 | $ | 87,407 | $ | 27,934 | $ | 289,093 | $ | 111,925 | ||||||||||
| Weighted average number of common shares | ||||||||||||||||||||
| Basic | 104,351,583 | 104,282,548 | 103,621,631 | 104,299,083 | 103,589,664 | |||||||||||||||
| Diluted | 105,977,099 | 105,876,946 | 104,044,755 | 105,903,492 | 103,941,295 | |||||||||||||||
| Adjusted EPS | ||||||||||||||||||||
| Basic | $ | 1.24 | $ | 0.84 | $ | 0.27 | $ | 2.77 | $ | 1.08 | ||||||||||
| Diluted | $ | 1.22 | $ | 0.83 | $ | 0.27 | $ | 2.73 | $ | 1.08 | ||||||||||
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, 2026 | June 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||
| Current portion of loans and borrowings | $ | 17,966 | $ | 34,578 | $ | 55,711 | $ | 50,590 | ||||||||
| Long-term portion of loans and borrowings | 449,548 | 519,856 | 551,403 | 561,146 | ||||||||||||
| Less: | ||||||||||||||||
| Cash and cash equivalents | (114,053 | ) | (101,742 | ) | (105,442 | ) | (66,257 | ) | ||||||||
| Net debt (cash) | $ | 353,461 | $ | 452,692 | $ | 501,672 | $ | 545,479 | ||||||||
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, 2026 | June 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||
| Current assets | $ | 325,162 | $ | 324,000 | $ | 276,212 | $ | 207,413 | ||||||||
| Less: Current liabilities | (235,774 | ) | (236,345 | ) | (260,718 | ) | (252,579 | ) | ||||||||
| Working capital (deficit) | $ | 89,388 | $ | 87,655 | $ | 15,494 | $ | (45,166 | ) | |||||||
| Cash and cash equivalents | 114,053 | 101,742 | 105,442 | 66,257 | ||||||||||||
| Available undrawn revolving credit facilities | 150,000 | 80,000 | 45,000 | 45,000 | ||||||||||||
| Available liquidity | $ | 264,053 | $ | 181,742 | $ | 150,442 | $ | 111,257 | ||||||||
ABOUT ERO
Ero is a Brazil-focused, growth-oriented mining company with a diversified portfolio of copper and gold assets. Headquartered in Vancouver, B.C., the Company operates two copper mines – the Caraíba Operations in Bahia State and the Tucumã Operation in Pará State – as well as the Xavantina Operations, a producing gold mine in Mato Grosso State. In addition to its operating assets, Ero is advancing the Furnas Copper-Gold Project, located in the mineral-rich Carajás Province in Pará State, through a definitive earn-in agreement with Vale Base Metals to acquire a 60% interest in the project.
Ero’s operating philosophy is grounded in a commitment to safety, operational excellence, and the responsible production of minerals essential for a better tomorrow. The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO.” Additional information, including technical reports on the Company’s operations and projects, is available on the Company’s website (www.ero.com), SEDAR+ (www.sedarplus.ca), and on EDGAR (www.sec.gov).
FOR MORE INFORMATION, PLEASE CONTACT
Farooq Hamed, VP, Investor Relations
info@ero.com
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