Ero Copper Reports First Quarter 2026 Operating and Financial Results
TSX: ERO NYSE: ERO
May 4, 2026
Ero Copper Reports First Quarter 2026 Operating and Financial Results
(all amounts in US dollars, unless otherwise noted)
Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or the “Company”) is pleased to announce its operating and financial results for the three months ended March 31, 2026. Management will host a conference call tomorrow, Tuesday, May 5, 2026, at 11:30 a.m. Eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.
HIGHLIGHTS
- Consolidated Q1 copper production totaled 17,287 tonnes in concentrate at C1 cash costs(1) of $2.39 per pound produced.
- Quarterly gold production was 5,495 ounces at C1 cash costs(1) and All-in Sustaining Costs ("AISC")(1) of $2,120 and $4,441 per ounce, respectively. Gold sales in the period totaled 10,330 ounces, including 4,311 ounces sold in gold concentrate.
- Quarterly financial results reflect solid operating performance across the Company's copper operations and necessary ventilation circuit and cooling upgrades that were undertaken at the Xavantina Operation during the period.
- Net income attributable to the owners of the Company for the quarter was $108.8 million ($1.04 per share on a diluted basis).
- Adjusted net income attributable to the owners of the Company(1) for the quarter was $72.4 million ($0.69 per share on a diluted basis).
Cash flow from operations for the first quarter was $92.8 million.
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- Adjusted EBITDA(1) was $125.2 million.
- Net debt(1) at quarter-end was $490.7 million, a reduction of approximately $11.0 million from year-end 2025 and approximately $71.1 million from March 31, 2025. This contributed to a further reduction in the Company's net leverage ratio to approximately 1.0x(2) at quarter-end, demonstrating continued progress against deleveraging priorities.
- Available liquidity(1) at quarter-end was $146.2 million, including $91.2 million in cash and cash equivalents and $55.0 million of undrawn availability under the Company's senior secured revolving credit facility ("Senior Credit Facility").
(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 months ended March 31, 2026 and the Reconciliation of Non- IFRS Measures section at the end of this press release.
(2)
The Company's net debt leverage ratio as of March 31, 2026 of 1.0x was calculated as net debt of $490.7 million divided by trailing 12-month adjusted EBITDA of $471.7 million.
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- The Company is reaffirming its 2026 production, operating cost, and capital expenditure guidance.
- At the Caraíba Operations, full-year production is expected to be H2 weighted on higher processed grades from planned mine sequencing and higher plant throughput relative to H1 2026 with unit operating costs expected to decline with higher production levels.
- At the Tucumã Operation, higher mill throughput is expected through the balance of the year relative to Q1 2026, partially offset a planned moderation in mined and processed copper grades with unit costs expected to remain within the full-year guidance range.
- At the Xavantina Operations, completion of necessary upgrades to the mine's ventilation and cooling infrastructure is expected to support increased mining rates at improved grades through the remainder of the year. Full-year production is expected to be H2 weighted, and consequently unit costs are expected to decline in conjunction with higher production levels. Gold concentrate sales are expected to benefit meaningfully from dryer conditions as the rainy season ends, with average quarterly rainfall at Xavantina typically declining from approximately 650 to 700 millimeters in Q1 to approximately 60 millimeters in Q2 and Q3, significantly reducing drying times and supporting higher concentrate sales volumes through the remainder of the year.
- Full-year capital expenditure guidance is maintained at $275 to $320 million.
- At the Furnas Copper-Gold Project ("Furnas" or the "Project"), the Company completed over 12,000 meters of drilling during the quarter as part of the planned 50,000-meter 2026 drill program. Site activities during the quarter also included the continued advancement of engineering, environmental, and permitting workstreams. The Company expects to issue a project update on Furnas in mid-2026 covering, among others, exploration drill results since the completion of an inaugural Preliminary Economic Analysis ("PEA") on the Project.
"Our copper operations delivered a solid start to the year, and our Xavantina Operation undertook necessary ventilation and cooling circuit upgrades and subsequent tie-in that, together with the mechanization work completed in 2025, we expect will allow Xavantina to continue to deliver well into the future, particularly since the deposit remains completely open at depth,” said Makko DeFilippo, President and Chief Executive Officer. “Since this time last year, we have made considerable progress on our transformation objectives across the business, and I am pleased with our Q1 performance. While we are not immune from industry-wide cost pressures, our operations are performing well, metal prices remain constructive and our balance sheet continues to strengthen with net debt down meaningfully year-over-year. During Q1, we published the PEA on Furnas, outlining the Company's next significant phase of growth. As we continue to drive Furnas forward, we are translating years of investment into cash flow generation resulting in meaningful deleveraging - our highest capital-allocation priority."
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FIRST QUARTER REVIEW
The Caraíba Operations
- The Caraíba Operations produced 8,826 tonnes of copper in concentrate during the quarter at a C1 cash cost(1) of $2.79 per pound produced.
- Quarterly production reflected lower processed grades due to stope sequencing at the Pilar Mine and reduced contribution from the Surubim open pit, where mined volumes during the quarter were affected by seasonal rainfall during January and February.
The Tucumã Operation
- The Tucumã Operation produced 8,461 tonnes of copper in concentrate during the period at a C1 cash cost(1) of $1.97 per pound produced.
- Production during the period reflected a planned moderation in processed copper grades, partially offset by higher plant throughput following the completion in Q4 2025 of planned mill liner replacement maintenance originally scheduled for Q1 2026.
- The Company is advancing an expansion of tailings filtration capacity at the Tucumã Operation. The associated capacity and plant throughput benefits, which remain ontrack for Q4 2026, have not been incorporated into full-year 2026 guidance.
The Xavantina Operations
- The Xavantina Operations produced 5,495 ounces of gold at a C1 cash cost(1) of $2,120 per ounce and AISC(1) of $4,441 per ounce. Unit costs during the quarter reflected the lower production levels associated with the scheduled ventilation and cooling infrastructure work.
- Gold production during the period reflected necessary ventilation and cooling infrastructure upgrades and tie-in to the existing infrastructure. This investment, substantially complete at the end of April, will enable higher development and mining rates going forward as the mine continues to advance to depth, where the deposit remains open.
- Quarterly gold sales totaled 10,330 ounces, including 4,311 ounces sold in gold concentrate. Concentrate drying times during the quarter were extended by heavy seasonal rainfall. With dryer conditions following the end of the rainy season, gold concentrate sales volumes are expected to be higher over the remainder of the year.
(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 months ended March 31, 2026 and the Reconciliation of Non- IFRS Measures section at the end of this press release.
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OPERATING HIGHLIGHTS
| 2026 - Q1 2025 - Q4 2025 - Q1 | ||||
|---|---|---|---|---|
| Copper (Caraíba Operations) | ||||
| Ore Mined (tonnes) | 985,577 | 1,225,017 | 696,239 | |
| Ore Processed (tonnes) | 1,072,209 | 1,174,732 | 692,901 | |
| Grade (% Cu) | 0.93 1.00 1.18 | |||
| Recovery (%) | 88.3 | 88.7 | 90.2 | |
| Cu Production (tonnes) 8,826 10,431 7,357 | ||||
| Cu Production (000 lbs) 19,459 22,995 16,219 | ||||
| Cu Sold in Concentrate (tonnes) 9,205 10,404 6,949 | ||||
| Cu Sold in Concentrate (000 lbs) 20,294 22,938 15,318 | ||||
| Cu C1 cash cost(1) $ 2.79 $ 2.27 $ 2.22 | ||||
| Copper (Tucumã Operation) | ||||
| Ore Mined (tonnes) | 456,684 | 1,199,067 | 328,291 | |
| Ore Processed (tonnes) | 563,717 | 517,246 | 294,314 | |
| Grade (% Cu) | 1.66 | 1.93 | 2.18 | |
| Recovery (%) | 88.3 | 90.5 89.40 | ||
| Cu Production (tonnes) | 8,461 | 9,275 | 5,067 | |
| Cu Production (000 lbs) | 18,652 | 20,449 | 11,171 | |
| Cu Sold in Concentrate (tonnes) | 8,751 | 9,729 | 5,168 | |
| Cu Sold in Concentrate (000 lbs) | 19,292 | 21,450 | 11,393 | |
| Cu C1 cash cost(1)(2) | $ 1.97 | $ 1.75 | $ — | |
| Gold (Xavantina Operations) | ||||
| Ore Mined (tonnes) | 32,820 | 55,655 | 33,228 | |
| Ore Processed (tonnes) 37,128 53,256 33,228 | ||||
| Grade (g / tonne) 5.66 9.98 6.87 | ||||
| Recovery (%) | 81.3 | 79.6 | 90.8 | |
| Au Production (oz) 5,495 13,837 6,638 | ||||
| Au Sold in doré (oz) | 6,019 | 13,401 | 5,834 | |
| Gold Sold in Concentrate (oz)(3) | 4,311 | 12,754 | — | |
| Gold Sold (oz) | 10,330 | 26,155 | 5,834 | |
| Au C1 cash cost(1) | 2,120 | 766 | 1,100 | |
| Au AISC(1) | 4,441 | 1,702 | 2,228 |
(1)
Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three months ended March 31, 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, YTD 2025 copper C1 cash cost for the Tucumã Operation reflects costs from Q3 2025 onward only.
(3) Gold sold in concentrate includes gold ounces produced from the CIL circuit and the pond.
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FINANCIAL HIGHLIGHTS
($ in millions, except per share amounts)
| 2026 - Q1 | 2025 - Q4 | 2025 - Q1 | ||
|---|---|---|---|---|
| Revenues | $ 263.2 | $ 320.2 | $ 125.1 | |
| Gross profit | 105.9 | 164.4 | 55.5 | |
| EBITDA(1) | 175.5 | 151.8 | 117.9 | |
| Adjusted EBITDA(1) | 125.2 | 186.7 | 63.2 | |
| Cash flow from operations | 92.8 | 129.1 | 65.4 | |
| Net income | 109.3 | 78.7 | 80.6 | |
| Net income attributable to owners of the Company | 108.8 | 77.0 | 80.2 | |
| Per share (basic) | 1.04 | 0.74 | 0.77 | |
| Per share (diluted) | 1.04 | 0.74 | 0.77 | |
| Adjusted net income attributable to owners of the Company(1) | 72.4 | 108.4 | 35.8 | |
| Per share (basic) | 0.69 | 1.04 | 0.35 | |
| Per share (diluted) | 0.69 | 1.04 | 0.35 | |
| Cash, cash equivalents, and short-term investments | 91.2 | 105.4 | 80.6 | |
| Working capital(1) | 66.2 | 15.5 | 10.2 | |
| Net debt(1) | 490.7 | 501.7 | 561.8 |
(1)
Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the three months ended March 31, 2026 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
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2026 PRODUCTION AND COST GUIDANCE
Consolidated copper production guidance is maintained at 67,500 to 77,500 tonnes. Full-year copper production is expected to be second-half weighted at both the Caraíba and Tucumã Operations. Production at Caraíba in Q2 is expected to be broadly similar to Q1 before increasing in H2 2026, driven by higher processed grades from planned mine sequencing along with higher throughput levels. Production at Tucumã is expected to be modestly higher in H2 2026 on higher plant throughput, partially offset by lower planned copper grades. Consolidated copper C1 cash cost(1) guidance is maintained at $2.15 to $2.35 per pound produced, with costs expected to be above the guidance range in H1 2026 and to decrease sequentially through H2 2026 as processed grades at the Caraíba Operations increase. At the Xavantina Operations, gold production from mining and processing operations is expected to total 40,000 to 50,000 ounces in 2026, with mining rates, mill throughput and processed grades projected to improve as the ventilation and cooling infrastructure becomes fully operational (substantially complete at the end of April). As a result, production at Xavantina is expected to be weighted towards H2 2026.
Gold C1 cash cost(1) and AISC(1) guidance is maintained at $1,000 to $1,250 and $2,000 to $2,500 per ounce, respectively. Unit costs are expected to be highest in Q1 and to decline over the remaining quarters of the year as Xavantina's production volumes increase.
Gold concentrate sales volumes are expected to be lowest in Q1 due to the impact of heavy seasonal rainfall on concentrate drying times and are expected to benefit from dryer conditions through the remainder of 2026. Gold concentrate sales from historic stockpiles are not included in Xavantina's guidance ranges, which capture only production from mining and processing operations.
Consolidated Copper Production (tonnes)
Caraíba Operations 35,000 - 40,000 Tucumã Operation 32,500 - 37,500
Total Copper 67,500 - 77,500
Consolidated Copper C1 Cash Cost(1)
Caraíba Operations $2.30 - $2.50 Tucumã Operation $1.95 - $2.15
Consolidated Copper Operations $2.15 - $2.35
The Xavantina Operations
Au Production (ounces) 40,000 - 50,000 Gold C1 Cash Cost(1) ($/oz) $1,000 - $1,250 Gold AISC(1) ($/oz) $2,000 - $2,500
Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company’s SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risks. (1)
Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this Press Release.
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2026 CAPITAL EXPENDITURE GUIDANCE
Total capital expenditures guidance remains unchanged at a range of $275 to $320 million.
Figures presented in the table below are in USD millions.
Caraíba Operations $170 - $185 Tucumã Operation $35 - $45 Xavantina Operations $40 - $50 Furnas Copper-Gold Project, Other Exploration & Corporate $30 - $40
Total $275 - $320
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.
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CONFERENCE CALL DETAILS
The Company will hold a conference call on Tuesday, May 5, 2026 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results. A results presentation will be available for download via the webcast link and in the Presentations section of the Company's website on the day of the conference call.
Date: Tuesday, May 5, 2026 Time: 11:30 am Eastern time (8:30 am Pacific time)
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 Dial in:
using this link to bypass the live operator queue.
(https://dpregister.com/sreg/10207291/1037ecd0ca7)
To access the webcast, click here.
Webcast:
(https://event.choruscall.com/mediaframe/webcast.html?
webcastid=A9tf7UE9)
Canada/USA: 1-855-669-9658, International: +1-412-317-0088 For country-specific dial-in numbers, click here.
Replay:
(https://services.choruscall.com/ccforms/replay.html)
Replay Passcode: 2860523
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Reconciliation of Non-IFRS Measures
Financial results of the Company are presented in accordance with IFRS. The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, gold C1 cash cost, gold AISC, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
For additional details please refer to the Company’s discussion of non-IFRS and other performance measures in its Management’s Discussion and Analysis for the three months ended March 31, 2026 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.
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Copper C1 cash cost
The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.
The Caraíba Operations
| Reconciliation: 2026 - Q1 2025 - Q4 2025 - Q1 | |||
|---|---|---|---|
| Cost of production $ 62,352 $ 55,895 $ 35,719 | |||
| Add (less): | |||
| Transportation costs & other | 2,896 1,904 1,322 | ||
| Treatment, refining, and other | 2,164 3,328 2,410 | ||
| By-product credits | (10,077) (7,614) (4,699) | ||
| Incentive payments | (1,534) (1,516) (1,289) | ||
| Net change in inventory | (1,483) 266 2,659 | ||
| Foreign exchange translation and other | (87) 110 (147) | ||
| C1 cash costs(1) | $ 54,231 | $ 52,373 | $ 35,975 |
| Mining $ 42,411 $ 38,482 $ 25,796 | |||
|---|---|---|---|
| Processing 9,102 8,867 6,352 | |||
| Indirect 7,735 7,406 4,794 | |||
| Production costs 59,248 54,755 36,942 | |||
| By-product credits | (10,077) (7,614) (4,699) | ||
| Treatment, refining and other | 5,060 5,232 3,732 | ||
| C1 cash costs(1) | $ 54,231 | $ 52,373 | $ 35,975 |
| 2026 - Q1 | 2025 - Q4 | 2025 - Q1 | |||
|---|---|---|---|---|---|
| Costs per pound | |||||
| Total copper produced (lbs, 000) | 19,459 22,995 16,219 | ||||
| Mining $ 2.18 $ 1.67 $ 1.59 | |||||
| Processing $ 0.47 $ 0.39 $ 0.39 | |||||
| Indirect $ 0.40 $ 0.32 $ 0.30 | |||||
| By-product credits $ (0.52) $ (0.33) $ (0.29) | |||||
| Treatment, refining and other $ 0.26 $ 0.22 $ 0.23 | |||||
| Copper C1 cash costs(1) | $ 2.79 | $ 2.27 | $ 2.22 |
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The Tucumã Operation
| Reconciliation: 2026 - Q1 2025 - Q4 | ||
|---|---|---|
| Cost of production $ 29,738 $ 29,689 | ||
| Add (less): | ||
| Transportation costs & other | 6,391 8,376 | |
| Treatment, refining, and other | 2,471 — | |
| By-product credits | (701) — | |
| Incentive payments | (546) (396) | |
| Net change in inventory | (556) (1,970) | |
| Foreign exchange translation and other | (4) — | |
| C1 cash costs(1) | $ 36,793 | $ 35,699 |
| Mining $ 6,538 $ 6,110 | ||
|---|---|---|
| Processing 17,976 17,253 | ||
| Indirect 4,118 3,945 | ||
| Production costs 28,632 27,308 | ||
| By-product credits | (701) — | |
| Treatment, refining and other | 8,862 8,391 | |
| C1 cash costs(1) | $ 36,793 | $ 35,699 |
| 2026 - Q1 | 2025 - Q4 | |||
|---|---|---|---|---|
| Costs per pound | ||||
| Total copper produced (lbs, 000) | 18,652 20,449 | |||
| Mining | $ 0.35 | $ 0.30 | ||
| Processing $ 0.96 $ 0.84 | ||||
| Indirect $ 0.22 $ 0.19 | ||||
| By-product credits $ (0.04) $ — | ||||
| Treatment, refining and other $ 0.48 $ 0.42 | ||||
| Copper C1 cash costs(1) | $ 1.97 | $ 1.75 |
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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: 2026 - Q1 2025 - Q4 2025 - Q1 | ||
|---|---|---|
| Cost of production $ 13,877 $ 12,882 $ 6,225 | ||
| Add (less): | ||
| Incentive payments (320) (442) (269) | ||
| Net change in inventory (807) (208) 1,339 | ||
| By-product credits (189) (459) (111) | ||
| Smelting and refining 769 320 146 | ||
| Gold concentrate re-handling cost | (1,641) | (1,444) — |
| Foreign exchange translation, transportation and other (38) (44) (29) | ||
| C1 cash costs $ 11,651 $ 10,605 $ 7,301 | ||
| Site general and administrative 1,409 1,628 1,077 | ||
| Accretion of mine closure and rehabilitation provision 145 152 141 | ||
| Sustaining capital expenditure 8,136 7,091 3,909 | ||
| Sustaining lease payments 2,623 3,073 2,021 | ||
| Royalties and production taxes 434 995 338 | ||
| AISC | $ 24,398 $ 23,544 $ 14,787 |
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