Ero Copper Corp. Q2 FY2025 earnings call

• Initiated an operational excellence framework early in 2025, making significant progress across the operating portfolio. - Undertook significant changes in strategy, technology, predictive maintenance, fleet management, and integrated new leadership. - At Caraíba, initiatives to enhance operating performance and drive efficiencies delivered results, with a 25% Q2 copper production increase. - At Xavantina, spent H1 setting up for mechanization, resulting in 17% Q2 gold production increase, with expected benefits in H2. - Furnas completed Phase 1 drill program, Phase 2 drill program ongoing, on track for PEA in H1 2026. - Deleveraged balance sheet by paying down $10 million of revolver and $9 million of copper prepayment facility, with solid liquidity at $113 million.

Caraíba: Saw a 25% increase in copper production in Q2 compared to Q1. Initiatives like 50% reduction in unplanned infrastructure downtime, record backfill rates, and over 10% improvement in mobile equipment fleet availability contributed. Revenue contribution not explicitly stated in terms of percentage but production details are key. Xavantina: Gold production was up an impressive 17% versus Q1. The mine was set up for mechanization in H1, with expected benefits in the second half. Tucumã: Achieved commercial production, with progress from addressing bottlenecks in H1 to aiming for consistent rates in H2. Furnas: Completed Phase 1 drill program in early July, Phase 2 drill program ongoing, on track for preliminary economic analysis (PEA) in the first half of 2026.

• Revised guidance range indicates Q3 better than Q2, Q4 better than Q3, and 2026 better than 2025. - Tucumã transitioned from addressing bottlenecks in H1 to aiming for consistent rates in H2. - Caraíba's full-year C1 cash costs expected to be in the bottom half of the guidance range. - Xavantina's grades in line with expectations, with mechanization benefits expected in H2.

• Forward-looking statements involve risks and uncertainties; for detailed risks, refer to the most recent annual information form available on the website, SEDAR, and EDGAR. - Potential impact of operational challenges on production levels and guidance targets.

Q: Dalton Baretto asked about Tucumã's July update and guidance assumptions.

A: Makko DeFilippo stated that H1 was about addressing bottlenecks, H2 is about achieving rates already seen but more consistently, with Q3 and Q4 expected to improve and 2026 better than 2025.

Q: Fahad Tariq inquired about Caraíba's cash costs and Xavantina's grades.

A: Makko DeFilippo said Caraíba's full-year C1 cash costs expected in bottom half of guidance range due to lower grades in H2 from Surubim pit; Xavantina's mechanized mining had less dilution than manual mining, grades in line with expectations.

Q: Orest Wowkodaw asked about Tucumã's remaining bottlenecks and shaft sinking at Pilar.

A: Makko DeFilippo said H2 is about operational consistency, not stop-start; shaft project at Pilar is 700 meters below surface, on schedule and budget, expected operational in 2027.

Q: Ralph Profiti asked about Caraíba's Surubim pit contribution and power situation.

A: Makko DeFilippo said Surubim is an important contributor to production in H2 and 2026, with operational excellence initiatives contributing to gains; no power bottlenecks at Tucumã.

Q: Bryce Adams asked about Tucumã's stockpiles in July.

A: Makko DeFilippo said mining rates slowed in Q2 due to stockpile volumes, but started adding to stockpile in July, with stockpile volumes remaining in 1.5 million to 2 million tonne range.

Q: Anita Soni asked about Caraíba's grade decline and Xavantina's mill capacity.

A: Makko DeFilippo said Caraíba's full-year grades between 1.1% and 1.2% due to Surubim's lower grade; Xavantina's mill design capacity around 300,000 tonnes of ore, expected to use increasing share of capacity but not at full design rates by year-end.

Q: Guilherme Rosito asked about guidance history and Furnas, and cash returns.

A: Makko DeFilippo discussed guidance revisions due to operational changes, Furnas on track with drill program and PEA in H1 2026; Wayne Drier said focus on deleveraging before considering shareholder returns.

Q: Craig Hutchison asked about sustainability of Caraíba's mine fleet initiative.

A: Makko DeFilippo said the operational framework put in place will benefit performance now and when the shaft comes online in 2027.

Q: Matthew Murphy asked about Tucumã's mill areas needing attention.

A: Makko DeFilippo said filter presses and crushing/conveying systems are focus areas, with preventative maintenance routines addressed.