MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 1050 – 625 Howe Street, Vancouver, B.C., Canada V6C 2T6 Phone: 604-449-9244 | Website: www.erocopper.com | Email: info@erocopper.com TABLE OF CONTENTS | BUSINESS OVERVIEW | 1 | | --- | --- | | HIGHLIGHTS | 2 | | REVIEW OF OPERATIONS | | | The Caraíba Operations | 6 | | The Tucumã Operation | 7 | | The Xavantina Operations | 8 | | 2025 GUIDANCE | 9 | | REVIEW OF FINANCIAL RESULTS | | | Review of quarterly results | 11 ...

Core Insights - Ero Copper Corp. reported record copper production of 16,664 tonnes in Q3 2025, with a blended C1 cash cost of $2.00 per pound, driven by increased output at Tucumã and stable production at Caraíba [2][3] - The company achieved a net income of $36.0 million for the quarter, translating to $0.35 per diluted share, while adjusted net income was $27.9 million, or $0.27 per diluted share [10][11] - Ero Copper is maintaining its full-year production and capital expenditure guidance, with expectations for Q4 2025 to be the strongest production quarter of the year [12][13] Production Highlights - Caraíba Operations produced 9,085 tonnes of copper in concentrate at an average C1 cash cost of $2.32 per pound, while Tucumã produced 7,579 tonnes at a lower cost of $1.62 per pound, marking a 19% quarter-on-quarter increase [2][8] - Gold production totaled 9,073 ounces, a 17% increase from the previous quarter, with C1 cash costs of $1,086 per ounce and All-in Sustaining Cost (AISC) of $2,425 per ounce [2][8] Financial Performance - Revenues for Q3 2025 reached $177.1 million, up from $163.5 million in Q2 2025, with gross profit of $57.4 million [10] - Adjusted EBITDA was reported at $77.1 million, reflecting operational efficiency despite higher operating expenses at Tucumã [10][27] - Available liquidity at quarter-end was $111.3 million, including $66.3 million in cash and cash equivalents [10] Operational Developments - The company launched a value-creation initiative at Xavantina, leading to an initial sales agreement for gold concentrates, with expected sales of 10,000 to 15,000 tonnes in Q4 2025 [2][3] - Ero Copper completed a 17,000-meter Phase 2 drill program at the Furnas Copper-Gold Project, which was finished ahead of schedule, and has commenced Phase 3 drilling [3][12] Guidance and Future Outlook - The company reaffirmed its consolidated copper production guidance for 2025, expecting production at the low end of the 67,500 to 80,000-tonne range, with improved performance anticipated in Q4 [12][13] - Cost guidance for the Tucumã Operation has been increased due to higher-than-expected maintenance and freight costs, now projected at $1.35 to $1.55 per pound [12][13]

Core Insights - Ero Copper Corp. has announced the results of a year-long initiative to enhance value from its Xavantina Operations in Brazil, including an updated mineral reserve and resource estimate [1][3][5] Group 1: Operational Highlights - The company has successfully mechanized the Xavantina Operations and initiated gold concentrate sales, achieving significant milestones in 2025 [3][5] - Initial shipments of approximately 3,000 tonnes of gold concentrate were completed in October 2025, with expectations to increase shipments to 10,000 to 15,000 tonnes during Q4 2025 [5] - The company has entered into sales contracts for gold concentrate volumes with net payability expected between 90% and 95% based on various factors [5] Group 2: Mineral Reserve and Resource Estimates - The 2025 mineral reserve and resource estimates for the Xavantina Operations include approximately 29,000 ounces of inferred mineral resources in high-grade gold concentrate [5][6] - Total measured and indicated resources now amount to 664,000 ounces, with an inferred resource of 365,000 ounces [5][6] - The mineral reserve estimates are based on a gold price of $2,100 per ounce and an exchange rate of USD/BRL 5.50 [9][12] Group 3: Future Plans and Exploration - The company is conducting additional sampling campaigns to quantify remaining gold concentrate density and grade, with plans to complete this over the next 12 to 18 months [5] - Ongoing exploration efforts are extending the known limits of mineralization within the mine, supporting a planned expansion of underground operations [5][12]

Core Points - Ero Copper Corp. will release its third quarter 2025 operating and financial results on November 4, 2025, after market close [1] - A conference call to discuss the results is scheduled for November 5, 2025, at 11:30 am Eastern Time [2] - The company is a high-margin, high-growth copper and gold producer with operations primarily in Brazil [4] Company Overview - Ero Copper holds a 99.6% interest in Mineração Caraíba S.A., which operates the Caraíba Operations in Bahia State, Brazil, and the Tucumã Operation in Pará State, Brazil [4] - The company also owns 97.6% of NX Gold S.A., which operates the Xavantina Operations in Mato Grosso State, Brazil [4] - In July 2024, Ero Copper signed an earn-in agreement with Vale Base Metals to acquire a 60% interest in the Furnas Copper-Gold Project in Pará State, Brazil [4]

Core Viewpoint - Ero Copper Corp. is experiencing significant stock performance and is expected to report strong earnings growth, making it an attractive investment opportunity. Group 1: Stock Performance - Ero Copper Corp. closed at $20.65, with a daily increase of +2.08%, outperforming the S&P 500's gain of 0.34% [1] - The company's shares have increased by 36.6% over the past month, significantly surpassing the Basic Materials sector's gain of 4.75% and the S&P 500's gain of 3.54% [1] Group 2: Earnings Expectations - The upcoming earnings release is anticipated to show an EPS of $0.57, representing a 111.11% increase compared to the same quarter last year [2] - Revenue is expected to reach $215.45 million, indicating a growth of 72.64% year-over-year [2] Group 3: Full Year Projections - For the full year, earnings are projected at $2 per share, reflecting a +156.41% change from the previous year, while revenue is expected to be $777.53 million, a +65.36% increase [3] - Recent analyst estimate revisions suggest positive sentiment regarding the company's business and profitability [3] Group 4: Valuation Metrics - Ero Copper Corp. is currently trading at a Forward P/E ratio of 10.12, which is significantly lower than the industry average of 25.41, indicating a valuation discount [6] - The Mining - Non Ferrous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 50, placing it in the top 21% of over 250 industries [6]

Group 1 - The rising price of copper is seen as a strong indicator of a healthy overall economy, earning it the nickname "Dr. Copper" [1] - Ero Copper (ERO) is highlighted as one of the top-rated stocks in the mining group, suggesting a positive economic outlook [1] - Ero Copper has shown an improvement in its Relative Strength Rating, which has risen to 79, indicating better technical performance [1][3] Group 2 - The Composite Rating for Ero Copper has increased to 96, reflecting its strong performance relative to peers [3] - Other companies in the mining sector, such as Alcoa and Freeport-McMoRan, are also experiencing improved technical strength and are approaching key benchmarks [3] - Sigma Lithium and Rio Tinto have shown improving leadership and received rating upgrades, respectively, indicating a positive trend in the mining industry [3]

Core Viewpoint - The news highlights a significant rise in copper-related stocks due to the production halt at the Grasberg copper mine in Indonesia, which may lead to increased copper prices and exacerbate raw material shortages for smelting plants [1] Group 1: Stock Performance - Hudbay Minerals saw an increase of over 8% [1] - Ero Copper rose by more than 6% [1] - Freeport-McMoRan gained over 5% [1] - Southern Copper and Taseko Mines both increased by more than 4% [1] Group 2: Market Analysis - The Grasberg copper mine, the second-largest globally, has halted production due to an accident, which could lead to a long-term disruption [1] - ING analysts suggest that the prolonged interruption at Grasberg may further elevate copper prices and worsen the existing raw material shortages faced by smelting plants [1] Group 3: Future Projections - Goldman Sachs' latest report indicates that the surge in AI demand and escalating geopolitical tensions have made aging power grids a "vulnerable link" in energy security for Western countries [1] - The need for power grid upgrades is expected to drive copper prices to $10,750 per ton by 2027 [1]

Group 1: Company Performance - Ero Copper Corp. (ERO) shares increased by 7.9% to close at $18.72, with a total gain of 19% over the past four weeks, supported by solid trading volume [1] - The company reported final assay results from its 28,000-meter Phase 1 drill program at the Furnas Copper-Gold Project, confirming high-grade continuity and expanding mineralization, indicating potential for a large-scale mining operation [2] - Ero Copper is expected to report quarterly earnings of $0.57 per share, reflecting a year-over-year increase of 111.1%, with revenues projected at $215.45 million, up 72.6% from the previous year [4] Group 2: Market Influences - The rise in Ero Copper's shares is also attributed to higher copper prices, which climbed 3.77% to $4.84 per pound due to supply concerns following Freeport-McMoRan's force majeure declaration at its Grasberg mine [3] - The consensus EPS estimate for Ero Copper has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] - Ero Copper holds a Zacks Rank of 3 (Hold), similar to Energy Fuels, which has also seen a recent increase in stock price [6]

Group 1 - The core viewpoint of the article highlights a significant rise in the U.S. copper mining sector, with companies like Ero Copper, Southern Copper, Taseko Mines, and Hudbay Minerals experiencing notable stock price increases [1] - The international copper futures contract saw an increase of over 2%, currently priced at 72,480.00 yuan per ton [1] - UBS has revised its copper price forecasts upward for the next two years, increasing the projections by 3% to $4.37 per pound for 2024 and $4.80 per pound for 2025 [1] Group 2 - The rise in copper prices is attributed to limited supply growth, pressure on refined output, and a recovery in traditional demand dynamics [1] - The fundamental outlook for copper in 2026 and 2027 is expected to continue supporting prices due to these factors [1]

Core Insights - Ero Copper Corp. has announced the completion of its 28,000-meter Phase 1 drill program at the Furnas Copper-Gold Project, revealing high-grade continuity and significant extensions of mineralization to a depth of approximately 950 meters [1][2][4] - The results from the Phase 1 program are expected to serve as a foundation for an updated NI 43-101 compliant mineral resource estimate and a preliminary economic assessment (PEA) scheduled for completion in the first half of 2026 [4][30] Drill Program Highlights - The Phase 1 drill program has confirmed high-grade mineralization continuity and extended known limits of mineralization well beyond previous estimates, with a maximum localized down-dip depth of 580 meters [2][4] - Eight drill rigs are currently operational on-site, with the Phase 2 drill program expected to complete 17,000 meters ahead of schedule in early Q4 2025 [3][4] Mineral Resource Estimates - The initial NI 43-101 compliant mineral resource estimate, effective June 30, 2024, includes: - Indicated Mineral Resource: 35.2 million tonnes grading 1.04% copper and 0.69 grams per tonne gold (1.36% CuEq) [10] - Inferred Mineral Resource: 61.3 million tonnes grading 1.06% copper and 0.63 grams per tonne gold (1.36% CuEq) [10] - The mineral resource estimate is based on approximately 90,000 meters of historical drilling and highlights the project's significant potential [8][10] Project Location and Infrastructure - The Furnas Copper-Gold Project is located in the Carajás Mineral Province in Pará State, Brazil, approximately 50 kilometers southeast of Vale Base Metals' Salobo operations [6][31] - The project covers an area of approximately 2,400 hectares and is situated near extensive regional infrastructure, including paved roads and a power substation [6] Strategic Partnerships - In July 2024, Ero Copper signed an earn-in agreement with Salobo Metais S.A., a subsidiary of Vale Base Metals, to acquire a 60% interest in the project upon meeting specific exploration and development milestones [7][31]