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CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS


FOR THE THREE MONTHS ENDED
MARCH 31, 2026 AND 2025















    


Ero Copper Corp.
Table of Contents
CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Statements of Financial Position
Condensed Consolidated Statements of Operations and Comprehensive Income
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
Other Items
Note 19. Financial Instruments
Note 20. Supplemental Cash Flow Information




Ero Copper Corp.
Condensed Consolidated Statements of Financial Position
(Unaudited, Amounts in thousands of US Dollars)
    
Notes
March 31, 2026
December 31, 2025
ASSETS
Current
Cash and cash equivalents
$
91,207 
$
105,442 
Trade receivables
48,064 
41,061 
Inventories
4
107,741 
107,111 
Other current assets
5
43,287 
22,598 
290,299 
276,212 
Non-Current
Mineral properties, plant and equipment
6
1,682,324 
1,574,054 
Exploration and evaluation assets
7
41,368 
33,869 
Deferred income tax assets
 
2,725 
3,047 
Deposits and other non-current assets
8
38,354 
36,696 
1,764,771 
1,647,666 
Total Assets
$
2,055,070 
$
1,923,878 
LIABILITIES
Current
Accounts payable and accrued liabilities
9
$
147,694 
$
154,124 
Current portion of loans and borrowings
10
39,202 
55,711 
Current portion of deferred revenue
11
10,917 
12,800 
Income taxes payable
2,861 
14,675 
Current portion of derivatives
19
8,345 
7,125 
Current portion of lease liabilities
15,045 
16,283 
224,064 
260,718 
Non-Current
Loans and borrowings
10
542,691 
551,403 
Deferred revenue
11
91,446 
92,950 
Provision for rehabilitation and closure costs
 
23,958 
21,978 
Deferred income tax liabilities
 
22,183 
10,729 
Lease liabilities
6,499 
8,950 
Other non-current liabilities
12
42,847 
39,288 
729,624 
725,298 
Total Liabilities
953,688 
986,016 
SHAREHOLDERS’ EQUITY
Share capital
13
300,160 
298,490 
Equity reserves
(55,694)
(107,735)
Retained earnings
853,549 
744,778 
Equity attributable to owners of the Company
1,098,015 
935,533 
Non-controlling interests
3,367 
2,329 
1,101,382 
937,862 
Total Liabilities and Equity
$
2,055,070 
$
1,923,878 

Commitments (Notes 7 and 11)
APPROVED ON BEHALF OF THE BOARD:
"Makko DeFilippo"
, President, 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
(Unaudited, Amounts in thousands of US Dollars, except share and per share amounts)
Three months ended March 31,
Notes
2026
2025
Revenue
14
$
263,170 
$
125,088 
Cost of sales
15
(157,256)
(69,566)
Gross profit
105,914 
55,522 
Expenses
General and administrative
16
(11,058)
(11,371)
Share-based compensation
13 (e)
(2,640)
(1,173)
Operating Income
92,216 
42,978 
Finance income
1,121 
838 
Finance expense
17
(11,064)
(4,723)
Foreign exchange gain
18
53,655 
58,400 
Other expenses
(8,732)
(2,125)
Income before income taxes
127,196 
95,368 
Current income tax expense
(7,197)
(3,718)
Deferred income tax expense
(10,688)
(11,023)
Income tax expense
 
(17,885)
(14,741)
Net income for the period
$
109,311 
$
80,627 
Other comprehensive gain
Foreign currency translation gain
51,881 
45,775 
Comprehensive income
$
161,192 
$
126,402 
Net income attributable to:
Owners of the Company
108,771 
80,227 
Non-controlling interests
540 
400 
$
109,311 
$
80,627 
Comprehensive income attributable to:
Owners of the Company
160,154 
125,555 
Non-controlling interests
1,038 
847 
$
161,192 
$
126,402 
Net income per share attributable to owners of the Company
Basic
13 (f)
$
1.04 
$
0.77 
Diluted
13 (f)
$
1.04 
$
0.77 
Weighted average number of common shares outstanding
Basic
13 (f)
104,262,136 
103,564,654 
Diluted
13 (f)
105,023,869 
103,904,737 
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 March 31,
Notes
2026
2025
Cash Flows from Operating Activities
Net income for the period
$
109,311 
$
80,627 
Adjustments for:
Amortization and depreciation
38,319 
18,620 
Income tax expense
17,885 
14,741 
Amortization of deferred revenue
11
(5,329)
(2,246)
Share-based compensation
13 (e)
2,640 
1,173 
Finance income
(1,121)
(838)
Finance expenses
17
11,064 
4,723 
Foreign exchange gain
(48,353)
(57,464)
Other
9,193 
2,192 
Changes in non-cash working capital items
20
(24,131)
(42,766)
109,478 
18,762 
Advances from customers
11
— 
50,000 
Derivative contract settlements
(2,411)
(2,216)
Provision settlements
(643)
(742)
Income taxes paid
(13,667)
(364)
92,757 
65,440 
Cash Flows used in Investing Activities
Additions to mineral properties, plant and equipment
(55,777)
(56,430)
Additions to exploration and evaluation assets
(5,036)
(3,109)
Interest received
695 
517 
(60,118)
(59,022)
Cash Flows used in Financing Activities
Lease liability payments
(5,178)
(4,003)
New loans and borrowings, net of transaction costs
10
2,730 
55,266 
Loans and borrowings repaid
10
(21,431)
(9,502)
Interest paid on loans and borrowings
10
(16,841)
(16,927)
Other finance expenses paid
(2,965)
(2,050)
Proceeds from exercise of stock options
1,138 
207 
(42,547)
22,991 
Effect of exchange rate changes on cash and cash equivalents
(4,327)
762 
Net (decrease) increase in cash and cash equivalents
(14,235)
30,171 
Cash and cash equivalents - beginning of period
105,442 
50,402 
Cash and cash equivalents - end of period
$
91,207 
$
80,573 
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 Capital
Equity Reserves
Notes
Number of
shares
Amount
Contributed
Surplus
Foreign
Exchange
Retained
Earnings
Total
Non-controlling
interest
Total equity
Balance, December 31, 2024
103,555,211 
$
286,548 
$
8,181 
$
(188,653)
$
481,055 
$
587,131 
$
3,943 
$
591,074 
Income for the period
— 
— 
— 
— 
80,227 
80,227 
400 
80,627 
Other comprehensive income for the period
— 
— 
— 
45,328 
— 
45,328 
447 
45,775 
Total comprehensive income for the period
— 
— 
— 
45,328 
80,227 
125,555 
847 
126,402 
Shares issued for:
Exercise of options
16,296 
316 
(109)
— 
— 
207 
— 
207 
Settlement of restricted share units
559 
10 
(22)
— 
— 
(12)
— 
(12)
Share-based compensation
13 (e)
— 
— 
1,009 
— 
— 
1,009 
— 
1,009 
Balance, March 31, 2025
103,572,066 
$
286,874 
$
9,059 
$
(143,325)
$
561,282 
$
713,890 
$
4,790 
$
718,680 
Balance, December 31, 2025
104,192,288 
$
298,490 
$
7,335 
$
(115,070)
$
744,778 
$
935,533 
$
2,329 
$
937,862 
Income for the period
— 
— 
— 
— 
108,771 
108,771 
540 
109,311 
Other comprehensive income for the period
— 
— 
— 
51,383 
— 
51,383 
498 
51,881 
Total comprehensive income for the period
— 
— 
— 
51,383 
108,771 
160,154 
1,038 
161,192 
Shares issued for:
Exercise of options
84,178 
1,648 
(510)
— 
— 
1,138 
— 
1,138 
Settlement of restricted share units
1,502 
22 
(33)
— 
— 
(11)
— 
(11)
Share-based compensation
13 (e)
— 
— 
1,201 
— 
— 
1,201 
— 
1,201 
Balance, March 31, 2026
104,277,968 
$
300,160 
$
7,993 
$
(63,687)
$
853,549 
$
1,098,015 
$
3,367 
$
1,101,382 




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 Participações 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 dore and concentrate 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, 2025.

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, 2025, 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 May 4, 2026.

(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, 2025.





    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)

(c) New Accounting Policies, Standards and Interpretations

On January 1, 2026, the Company adopted the amendments to the classification and measurement requirements for financial instrument in IFRS 9 Financial Instrument ("IFRS 9"), which was published in May 2024 by IASB. The amendments clarify that a financial assets is derecognized on the date on which the contractual rights to the cash flows expire or the asset is transferred. A financial liability is derecognized on the settlement date, which is the date on which the liability is extinguished. The amendments to IFRS 9 introduced an election that permits the Company, when settling a financial liability or part of a financial liability in cash using an electronic payment system, to deem the financial liability, or part of it, to be discharged before the settlement date if the Company has initiated a payment instruction that resulted in: (a) the Company having no practical ability to withdraw, stop or cancel the payment instruction; (b) the Company having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and (c) the settlement risk associated with the electronic payment system being insignificant. The amendments clarify that unless the above election applies, a financial liability is derecognized on the settlement date, which is the date on which the liability is extinguished because the obligation specified in the contract is discharged or cancelled or expires. The adoption of the amendments did not have a material impact on the Company's condensed consolidated interim 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.

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 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)



Three months ended March 31, 2026
Caraíba
(Brazil)
Tucumã
(Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
118,526 
$
102,178 
$
42,466 
$
— 
$
263,170 
Cost of production
(62,352)
(29,738)
(13,877)
— 
(105,967)
Depreciation and depletion
(20,981)
(11,985)
(5,001)
— 
(37,967)
Sales expense
(3,338)
(7,811)
(2,173)
— 
(13,322)
Cost of sales
(86,671)
(49,534)
(21,051)
— 
(157,256)
Gross profit
31,855 
52,644 
21,415 
— 
105,914 
Expenses
General and administrative
(4,519)
(2,136)
(1,543)
(2,860)
(11,058)
Share-based compensation
— 
— 
— 
(2,640)
(2,640)
Operating income (loss)
$
27,336 
$
50,508 
$
19,872 
$
(5,500)
$
92,216 
Capital expenditures(1)
38,250 
5,820 
13,837 
6,386 
64,293 
Assets
Current
$
109,499 
$
122,655 
$
38,042 
$
20,103 
290,299 
Non-current
1,090,486 
496,799 
134,379 
43,107 
1,764,771 
Total Assets
$
1,199,985 
$
619,454 
$
172,421 
$
63,210 
$
2,055,070 
Total Liabilities
$
151,149 
$
40,566 
$
157,252 
$
604,721 
$
953,688 

(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 three months ended March 31, 2026, the Company had seven significant customers (March 31, 2025 - five), including four copper customers (March 31, 2025 - three) and three gold customers (March 31, 2025 - two).



    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 March 31, 2025
Caraíba
(Brazil)
Tucumã (Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
63,270 
$
46,232 
$
15,586 
$
— 
$
125,088 
Cost of production
(35,719)
(5,522)
(6,225)
— 
(47,466)
Depreciation and depletion
(14,646)
(45)
(3,555)
— 
(18,246)
Sales expense
(1,376)
(2,203)
(275)
— 
(3,854)
Cost of sales
(51,741)
(7,770)
(10,055)
— 
(69,566)
Gross profit
11,529 
38,462 
5,531 
— 
55,522 
Expenses
General and administrative
(4,622)
(1,423)
(1,687)
(3,639)
(11,371)
Share-based compensation
— 
— 
— 
(1,173)
(1,173)
Operating income (loss)
$
6,907 
$
37,039 
$
3,844 
$
(4,812)
$
42,978 
Capital expenditures(1)
34,404 
15,452 
4,818 
2,927 
57,601 
Assets
Current
$
69,500 
$
90,080 
$
66,547 
$
6,165 
232,292 
Non-current
893,825 
450,363 
93,496 
15,720 
1,453,404 
Total Assets
$
963,325 
$
540,443 
$
160,043 
$
21,885 
$
1,685,696 
Total Liabilities
$
171,637 
$
64,136 
$
134,277 
$
596,966 
967,016 

(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)


4.    Inventories

March 31, 2026
December 31, 2025
Supplies and consumables
$
59,803 
$
54,504 
Stockpiles
33,030 
33,925 
Work in progress
4,234 
5,197 
Finished goods
10,674 
13,485 
$
107,741 
$
107,111 

5.    Other Current Assets

March 31, 2026
December 31, 2025
Advances to suppliers
$
4,648 
$
3,643 
Prepaid expenses and other
8,794 
5,845 
Derivatives (Note 19)
23,586 
4,701 
Note receivable (Note 19)
570 
405 
Value added taxes recoverable
5,689 
8,004 
$
43,287 
$
22,598 

    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)

6.    Mineral Properties, Plant and Equipment
Buildings
Mining Equipment
Mineral
Properties(1)
Projects in
Progress(2)
Equipment & Other Assets
Deposit on Projects
Mine Closure Costs
Right-of-Use Assets
Total
Cost:
Balance, December 31, 2025
94,382 
496,976 
1,012,282 
338,705 
34,956 
2,773 
19,071 
76,505 
2,075,650 
Additions
495 
4,346 
28,082 
20,182 
78 
5,652 
— 
1,599 
60,434 
Capitalized borrowing costs
— 
— 
— 
4,913 
— 
— 
— 
— 
4,913 
Disposals
— 
(1,205)
— 
— 
(5)
(3)
— 
(2,129)
(3,342)
 1
Transfers
7,618 
3,211 
32,361 
(42,108)
47 
(1,129)
— 
— 
— 
Foreign exchange
5,202 
27,125 
54,882 
14,376 
1,813 
185 
1,039 
4,086 
108,708 
Balance, March 31, 2026
$
107,697 
$
530,453 
$
1,127,607 
$
336,068 
$
36,889 
$
7,478 
$
20,110 
$
80,061 
$
2,246,363 
Accumulated depreciation:
Balance, December 31, 2025
(13,112)
(121,910)
(293,864)
— 
(12,579)
— 
(7,461)
(52,670)
(501,596)
Depreciation expense
(1,968)
(13,184)
(15,436)
— 
(703)
— 
(297)
(4,740)
(36,328)
Disposals
— 
607 
— 
— 
1 
— 
— 
751 
1,359 
Foreign exchange
(729)
(6,735)
(16,127)
— 
(624)
— 
(409)
(2,850)
(27,474)
Balance, March 31, 2026
$
(15,809)
$
(141,222)
$
(325,427)
$
— 
$
(13,905)
$
— 
$
(8,167)
$
(59,509)
$
(564,039)
Net book value, December 31, 2025
$
81,270 
$
375,066 
$
718,418 
$
338,705 
$
22,377 
$
2,773 
$
11,610 
$
23,835 
$
1,574,054 
Net book value, March 31, 2026
$
91,888 
$
389,231 
$
802,180 
$
336,068 
$
22,984 
$
7,478 
$
11,943 
$
20,552 
$
1,682,324 

(1) Mineral properties as at March 31, 2026 include $71.5 million (December 31, 2025 - $64.7 million) of costs on expansion of near-mine resource potential which are not currently being depreciated.

1

     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)

7.    Exploration and Evaluation Assets

As at March 31, 2026, the Company had $41.4 million (December 31, 2025 - $33.9 million) in exploration and evaluation assets, which include several property option agreements.

In July 2024, the Company signed a definitive earn-in agreement (the "Agreement") with Salobo Metais S.A, a subsidiary of Vale Base Metals ("VBM"), for the Furnas Copper-Gold 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 (completed) and produce a scoping study within 18 months of signing the Agreement (completed)
•Phase 2: Ero to conduct an additional minimum of 17,000 meters of exploration drilling (completed) 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 March 31, 2026, exploration and evaluation assets include $30.5 million (December 31, 2025 - $24.1 million) in expenditures associated with the Furnas Project.


8.     Deposits and Other Non-current Assets

March 31, 2026
December 31, 2025
Value added taxes recoverable
$
22,011 
$
21,015 
Note receivable (Note 19)
13,994 
12,998 
Deposits and others
2,349 
2,683 
$
38,354 
$
36,696 











    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)

9.    Accounts Payable and Accrued Liabilities

March 31, 2026
December 31, 2025
Trade suppliers
$
92,900 
$
92,283 
Payroll and labour related liabilities
18,105 
25,688 
Value added tax, royalty and other tax payable
12,267 
10,692 
Cash-settled equity awards (Note 13(b) and (c))
20,119 
20,615 
Provision for rehabilitation and closure costs
3,330 
3,768 
Other accrued liabilities
973 
1,078 
$
147,694 
$
154,124 
.

10.    Loans and Borrowings

Carrying value,
including accrued interest
Description
Currency
Security
Maturity
(Months)
Coupon rate
Principal to be repaid
March 31,
2026
December 31,
2025
Senior Notes
USD
Unsecured
46
6.50%
$
400,000 
$
398,839 
$
405,092 
Senior credit facility
USD
Secured
33
SOFR +
2.00% to 4.25%
145,000 
144,784 
154,706 
Copper Prepayment Facility
USD
Secured
9
8.66%
27,381 
29,619 
39,087 
Equipment finance loans
USD
Secured
10 - 39
6.90% - 8.35%
5,481 
5,542 
7,319 
Equipment finance loans
EUR
Secured
3 - 38
5.25% - 7.70%
2,568 
2,568 
168 
Equipment finance loans
BRL
Unsecured
2
16.63%
29 
36 
84 
Bank loan
BRL
Unsecured
8
CDI + 0.50%
501 
505 
658 
Total
$
580,960 
$
581,893 
$
607,114 
Current portion
$
39,202 
$
55,711 
Non-current portion
$
542,691 
$
551,403 















    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)

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

Three months ended March 31, 2026
Year ended
December 31,
2025
Senior Notes
Senior Credit Facility
Copper Prepayment Facility
Other
Consolidated
Consolidated
Balance, beginning of period
$
405,092 
$
154,706 
$
39,087 
$
8,229 
$
607,114 
$
602,189 
Proceeds from loans and borrowings
— 
— 
2,730 
2,730 
57,404 
Principal payments
— 
(10,000)
(9,127)
(2,304)
(21,431)
(54,740)
Interest payments
(13,000)
(2,537)
(1,106)
(198)
(16,841)
(42,736)
Interest costs, including interest capitalized
6,747 
2,615 
765 
161 
10,288 
44,487 
Foreign exchange
— 
— 
— 
33 
33 
510 
Balance, end of period
$
398,839 
$
144,784 
$
29,619 
$
8,651 
$
581,893 
$
607,114 

(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 and Ero Brasil Participações have 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 Company has the option to redeem, in whole or in part, 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.

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%.


(b)    Senior Revolving Credit Facility

The Company has a senior revolving credit facility (the "Senior Revolving Credit Facility") which has a borrowing limit of $200 million and matures in December 2028. The applicable interest margin is based on sliding scales of SOFR plus 2.00% to 4.25%, and commitment fee ranges from 0.45% to 0.96%, based on the Company's net leverage ratio, with lower leverage ratios resulting in lower pricing.

As at March 31, 2026, the Senior Revolving Credit Facility bears a weighted average interest rate of 6.77% on its drawn balance and a commitment fee of 0.68% on its undrawn balance.


    Notes to Financial Statements | 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)
The Senior Revolving 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 net leverage ratio based on net indebtedness to rolling four quarters adjusted earnings before interest, taxes, depreciation and amortization ("Rolling EBITDA"); (b) a net leverage ratio based on net senior indebtedness to Rolling EBITDA; and (c) an interest coverage ratio based on Rolling EBITDA. The Amended 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 March 31, 2026, 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. The Company had the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million until March 31, 2025.

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

In March 2025, the Company exercised its option to increase the size of the non-priced copper prepayment facility by an additional $25.0 million. The Company is obligated to repay the $25.0 million additional facility over 21 equal monthly installments, beginning in April 2025, through the delivery of a minimum of 161 tonnes of copper each month. The copper to be delivered by the Company will be in the form of LME Copper Warrants. 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 $1.3 million, the excess value will be repaid to the Company.

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

The Company entered into a precious metals purchase agreement (the “Original Xavantina Stream”) 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 $150.0 million for the purchase of 25% of an equivalent amount of gold to be produced from the Xavantina mine until 160,000 ounces of gold 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 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 Original Xavantina Stream.




    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)
The movements in Xavantina Gold Stream deferred revenue during the three months ended March 31, 2026 and the year ended December 31, 2025 are comprised of the following:
March 31, 2026
December 31,
2025
Gold ounces delivered in the period(1)
3,937 
9,692 
Balance, beginning of period
$
105,750 
$
62,989 
Advances
— 
50,000 
Accretion expense
1,942 
6,764 
Amortization of deferred revenue
(5,329)
(14,003)
Balance, end of period
$
102,363 
$
105,750 
Current portion
$
10,917 
$
12,800 
Non-current portion
91,446 
92,950 
(1)        During the three months ended March 31, 2026, the Company delivered 3,937 payable ounces of gold (year ended December 31, 2025 - 9,692 ounces) to Royal Gold for average consideration of $1,873 per ounce (December 31, 2025 - $1,213 per ounce). At March 31, 2026, a cumulative 58,806 ounces (December 31, 2025 - 54,869 ounces) of gold have been delivered under the Xavantina Gold Stream.

As part of the Xavantina Gold Stream, 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

March 31, 2026
December 31, 2025
Cash-settled equity awards (Note 13(b))
$
6,668 
$
5,470 
Withholding, value added tax, and other taxes payable
24,044 
22,286 
Provision
2,064 
1,856 
Dividends payable to non-controlling interest
5,800 
5,503 
Other liabilities
4,271 
4,173 
$
42,847 
$
39,288 


    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)

13.     Share Capital

As at March 31, 2026, the Company’s authorized share capital consists of an unlimited number of common
shares without par value.

(a)     Options

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

Three Months Ended March 31,
2026
2025
Number of
Stock Options
Weighted Average Exercise Price (CAD)
Number of
Stock Options
Weighted Average Exercise Price (CAD)
Outstanding stock options, beginning of period
1,340,563 
$
22.41 
1,734,607 
$
19.07 
Exercised
(84,178)
18.61 
(16,296)
18.12 
Forfeited
(2,776)
19.53 
(59,256)
20.38 
Outstanding stock options, end of period
1,253,609 
$
22.67 
1,659,055 
$
19.03 

The weighted average share price on the date of exercise for options exercised during the three months ended March 31, 2026 was CAD$43.16 (three months ended March 31, 2025 - CAD$19.64).


As at March 31, 2026, the following stock options were outstanding:

Weighted Average Exercise Prices
Number of
Stock Options
Vested and Exercisable Number of Stock Options
Weighted Average Remaining Life in Years
$10.01 to $20.00 CAD
579,507 
436,313 
2.20
$20.01 to $30.00 CAD
396,358 
123,109 
3.67
$30.01 to $34.58 CAD
277,744 
19,464 
4.70
$22.67 CAD ($16.26 USD)
1,253,609 
578,886 
3.22

(b)     Performance Share Unit Plan

The Company has a performance share unit ("PSU") plan pursuant to which the Compensation Committee may grant PSUs to employees and consultants, including directors and officers ("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.


    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)

The continuity of PSUs issued and outstanding is as follows:

Three Months Ended March 31,
2026
2025
Outstanding balance, beginning of period
879,703 
1,014,505 
Forfeited
(4,535)
(38,218)
Outstanding balance, end of period
875,168 
976,287 


These PSUs will vest three years from the date of grant 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 a Geometric Brownian Motion model. As at March 31, 2026, the fair value of the PSU liability was $17.2 million (December 31, 2025 - $16.0 million) of which $10.6 million (December 31, 2025 - $10.5 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:

Three months ended March 31,
2026
2025
Outstanding balance, beginning of period
356,799 
325,111
Issued
2,778 
6,101 
Outstanding balance, end of period
359,577 
331,212 

At March 31, 2026, DSU liabilities had a fair value of $9.6 million (December 31, 2025 - $10.1 million) which has been recognized in accounts payable and accrued liabilities.


    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)
(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.

The continuity of RSUs issued and outstanding is as follows:

Three months ended March 31,
2026
2025
Outstanding balance, beginning of period
270,886 
328,180
Settled
(2,147)
(1,204)
Forfeited
(1,041)
(12,259)
Outstanding balance, end of period
267,698 
314,717 


(e) Share-based compensation

Three months ended March 31,
2026
2025
Stock options
$
589 
$
491 
Performance share unit plan
1,809 
532 
Deferred share unit plan
(377)
(368)
Restricted share unit plan
619 
518 
Share-based compensation(1)
$
2,640 
$
1,173 

(1)    For the three months ended March 31, 2026, the Company recorded $1.2 million (three months ended March 31, 2025 - $1.0 million) of share-based compensation in contributed surplus, and the remaining share-based compensation was recorded in liabilities.


    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)
(f)     Net Income per Share
Three months ended March 31,
2026
2025
Weighted average number of common shares outstanding
104,262,136 
103,564,654 
Dilutive effects of:
Stock options
494,035 
25,366 
Share units
267,698 
314,717 
Weighted average number of diluted common shares outstanding(1)
105,023,869 
103,904,737 
Net income attributable to owners of the Company
$
108,771 
$
80,227 
Basic net income per share
$
1.04 
$
0.77 
Diluted net income per share
$
1.04 
$
0.77 

(1)      Weighted average number of diluted common shares outstanding for the three months ended March 31, 2026 excluded 258,280 (three months ended March 31, 2025 - 949,663) stock options.


    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)

14. Revenue

Three months ended March 31,
2026
2025
Copper
Concentrate sales
$
221,364 
$
108,639 
Adjustments on provisional sales(1)
(660)
863 
220,704 
109,502 
Gold
Dore Sales
22,374 
13,340 
Concentrate sales
14,738 
— 
Adjustments on provisional sales(1)
25 
— 
Amortization of deferred revenue(2)
5,329 
2,246 
$
42,466 
$
15,586 
$
263,170 
$
125,088 

(1)    Adjustments on provisional sales include pricing adjustments on the Company's concentrate sales, which are provisionally priced to the Company's international customers and are settled with a final sales price between zero to four months (March 31, 2025 - zero to six month) after shipment takes place and, therefore, are exposed to commodity price changes.

(2)    During the three months ended March 31, 2026, the Company delivered 3,937 ounces of gold (three months ended March 31, 2025 - 1,367 ounces of gold) under a precious metals purchase agreement with Royal Gold (note 11) for average cash consideration of $1,873 per ounce (three months ended March 31, 2025 - $570 per ounces) and recognized $5.3 million in amortization of deferred revenue (three months ended March 31, 2025 - $2.2 million).

    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)

15.     Cost of Sales

Three months ended March 31,
2026
2025
Materials
$
19,955 
$
11,690 
Salaries and benefits
27,476 
18,903 
Contracted services
28,806 
8,216 
Maintenance costs
17,044 
9,523 
Utilities
6,158 
4,146 
Other costs
1,036 
404 
Change in inventory (excluding depreciation and depletion)
5,492 
(5,416)
Cost of production
105,967 
47,466 
Sales expense
13,322 
3,854 
Depreciation and depletion
35,752 
20,374 
Change in inventory (depreciation and depletion)
2,215 
(2,128)
$
157,256 
$
69,566 



16.     General and Administrative Expenses

Three months ended March 31,
2026
2025
Accounting and legal
$
494 
$
378 
Amortization and depreciation
352 
374 
Office and administration
2,240 
2,272 
Salaries and consulting fees
5,975 
6,537 
Incentive payments
1,341 
1,098 
Other
656 
712 
$
11,058 
$
11,371 


    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)

17.    Finance Expense

Three months ended March 31,
2026
2025
Interest on loans and borrowings(2)
$
5,375 
$
— 
Accretion of deferred revenue
$
1,942 
$
579 
Accretion of provision for rehabilitation and closure costs
782 
841 
Interest on lease liabilities
672 
563 
Other finance expenses(1)
2,293 
2,740 
$
11,064 
$
4,723 

(1)    Other finance expenses during the three months ended March 31, 2026 included nil (three months ended 2025 - $1.3 million) credit loss on certain notes receivable (see Note 19).
(2)    During the three months ended March 31, 2026, the Company capitalized $4.9 million (three months ended 2025 - $11.0 million) of borrowing costs to projects in progress.

18.    Foreign Exchange Gain

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 March 31,
2026
2025
Foreign exchange gain (loss) on USD denominated debt in Brazil
$
34,648 
$
45,103 
Realized foreign exchange gain (loss) on derivative contracts (note 19)
7,260 
(2,216)
Unrealized foreign exchange gain (loss) on derivative contracts (note 19)
16,530 
16,806 
Foreign exchange (loss) gain on other financial assets and liabilities
(4,783)
(1,293)
$
53,655 
$
58,400 


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.

As at March 31, 2026, derivatives were measured at fair value based on Level 2 inputs.

The carrying values of cash and cash equivalents, 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 March 31, 2026, the carrying value of loans and borrowings, including accrued interest, was $581.9 million while the fair value is approximately $578.3 million. At March 31,

    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)
2026, the carrying value of notes receivable, including accrued interest, was $14.6 million which approximates its fair value.

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 March 31, 2026 are as follows:

Contract Description
Notional Amount
Denomination
Weighted average floor
Weighted average cap / forward price
Maturities
Foreign exchange collar (i)
$403.5 million
USD/BRL
5.54
6.34
April 2026 - December 2026
Gold collar (iii)
15,000 ounces
$ / oz
3,800
4,350
April 2026 - June 2026


(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 March 31, 2026 relates to $37.7 million (December 31, 2025 – $46.6 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 March 31, 2026 on $595.9 million of intercompany loan balances (December 31, 2025 - $604.6 million) which have contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at March 31, 2026 by 10% and 20%, would have decreased (increased) pre-tax net loss by $63.1 million and $126.2 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 March 31, 2026, the aggregate fair value of the Company's foreign exchange derivatives was a net asset of $23.6 million (December 31, 2025 - net asset of $4.4 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 an unrealized gain of $16.5 million for the three months ended March 31, 2026 (an unrealized gain of $16.8 million for the three months ended March 31, 2025) and has been recognized in foreign exchange (loss) gain. In addition, during the three months ended March 31, 2026, the Company recognized a realized gain of $7.3 million (realized loss of $2.2 million for the three months ended March 31, 2025) related to the settlement of foreign currency forward collar contracts.




    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)
(ii) Price risk

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

At March 31, 2026, the Company had gold collar contracts on 5,000 ounces of gold per month from April 2026 to June 2026. These gold derivative contracts establish an average floor price of $3,800 per ounce of gold and an average cap price of $4,350 per ounce. As of March 31, 2026, the fair value of these contracts was a net liability of $8.3 million (December 31, 2025 - liability of $6.8 million). The fair value of gold collar contracts was determined based on option pricing models, forward gold price, and information provided by counter party.

During the three months ended March 31, 2026, the Company recognized an unrealized loss of $0.8 million (unrealized loss of $2.1 million for the three months ended March 31, 2025) and a $7.9 million realized loss (nil for the three months ended March 31, 2025) in relation to its commodity derivatives in other income or loss.

At March 31, 2026, the Company had provisionally priced sales that are exposed to commodity price changes (note 14). Based on the Company’s net exposure at March 31, 2026, a 10% change in the price of copper and gold would have changed pre-tax net income (loss) by $8.6 million.


20. Supplemental Cash Flow Information

Three months ended March 31,
Net change in non-cash working capital items:
2026
2025
Accounts receivable
$
(6,684)
$
(45,062)
Inventories
2,888 
(8,008)
Other assets
(4,211)
(1,674)
Accounts payable and accrued liabilities
(16,124)
11,978 
$
(24,131)
$
(42,766)
Non-cash investing and financing activities:
Additions to property, plant and equipment by leases
$
1,599 
$
7,175 
Non-cash increase (decrease) in accounts payable in relation to additions of property, plant and equipment and exploration and evaluation assets
3,480 
(1,938)
Non-cash operating activities:
Settlement of income taxes payable via VAT recoverable
$
(4,076)
$
(2,048)




    Notes to Financial Statements | Page 24