ero-copper_logoxeroxrgb1.jpg

CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS


FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 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
Note 21. Commitment




Ero Copper Corp.
Condensed Consolidated Statements of Financial Position
(Unaudited, Amounts in thousands of US Dollars)
    
Notes
June 30, 2026
December 31, 2025
ASSETS
Current
Cash and cash equivalents
$
101,742 
$
105,442 
Trade receivables
54,393 
41,061 
Inventories
4
129,995 
107,111 
Other current assets
5
37,870 
22,598 
324,000 
276,212 
Non-Current
Mineral properties, plant and equipment
6
1,745,913 
1,574,054 
Exploration and evaluation assets
7
48,299 
33,869 
Deferred income tax assets
1,763 
3,047 
Deposits and other non-current assets
8
35,458 
36,696 
1,831,433 
1,647,666 
Total Assets
$
2,155,433 
$
1,923,878 
LIABILITIES
Current
Accounts payable and accrued liabilities
9
$
165,149 
$
154,124 
Current portion of loans and borrowings
10
34,578 
55,711 
Current portion of deferred revenue
11
11,626 
12,800 
Income taxes payable
11,092 
14,675 
Current portion of derivatives
19
— 
7,125 
Current portion of lease liabilities
13,900 
16,283 
236,345 
260,718 
Non-Current
Loans and borrowings
10
519,856 
551,403 
Deferred revenue
11
89,100 
92,950 
Provision for rehabilitation and closure costs
24,935 
21,978 
Deferred income tax liabilities
22,914 
10,729 
Lease liabilities
5,021 
8,950 
Other non-current liabilities
12
39,074 
39,288 
700,900 
725,298 
Total Liabilities
937,245 
986,016 
SHAREHOLDERS’ EQUITY
Share capital
13
300,641 
298,490 
Equity reserves
(30,194)
(107,735)
Retained earnings
943,092 
744,778 
Equity attributable to owners of the Company
1,213,539 
935,533 
Non-controlling interests
4,649 
2,329 
1,218,188 
937,862 
Total Liabilities and Equity
$
2,155,433 
$
1,923,878 

Commitments (Notes 7, 11 and 21); Subsequent Event (Note 10)
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 June 30,
Six months ended June 30,
Notes
2026
2025
2026
2025
Revenue
14
$
284,313 
$
163,510 
$
547,483 
$
288,598 
Cost of sales
15
(162,894)
(96,224)
(320,150)
(165,790)
Gross profit
121,419 
67,286 
227,333 
122,808 
Expenses
General and administrative
16
(12,535)
(11,564)
(23,593)
(22,935)
Share-based compensation
13 (e)
(1,063)
(7,756)
(3,703)
(8,929)
Operating Income
107,821 
47,966 
200,037 
90,944 
Finance income
1,443 
1,130 
2,564 
1,968 
Finance expense
17
(12,678)
(5,976)
(23,742)
(10,699)
Foreign exchange gain
18
10,845 
38,640 
64,500 
97,040 
Other income (expenses)
2,639 
2,350 
(6,093)
225 
Income before income taxes
110,070 
84,110 
237,266 
179,478 
Current income tax expense
(17,775)
(9,305)
(24,972)
(13,023)
Deferred income tax expense
(1,546)
(3,777)
(12,234)
(14,800)
Income tax expense
(19,321)
(13,082)
(37,206)
(27,823)
Net income for the period
$
90,749 
$
71,028 
$
200,060 
$
151,655 
Other comprehensive gain
Foreign currency translation gain
7,716 
37,847 
59,597 
83,622 
Comprehensive income
$
98,465 
$
108,875 
$
259,657 
$
235,277 
Net income attributable to:
Owners of the Company
89,543 
70,548 
198,314 
150,775 
Non-controlling interests
1,206 
480 
1,746 
880 
$
90,749 
$
71,028 
$
200,060 
$
151,655 
Comprehensive income attributable to:
Owners of the Company
97,183 
108,042 
257,337 
233,597 
Non-controlling interests
1,282 
833 
2,320 
1,680 
$
98,465 
$
108,875 
$
259,657 
$
235,277 
Net income per share attributable to owners of the Company
Basic
13 (f)
$
0.86 
$
0.68 
$
1.90 
$
1.46 
Diluted
13 (f)
$
0.85 
$
0.68 
$
1.87 
$
1.45 
Weighted average number of common shares outstanding
Basic
13 (f)
104,282,548 
103,582,082 
104,272,398 
103,573,416 
Diluted
13 (f)
105,876,946 
103,905,561 
105,880,086 
103,902,012 
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 June 30,
Six months ended June 30,
Notes
2026
2025
2026
2025
Cash Flows from Operating Activities
Net income for the period
$
90,749 
$
71,028 
$
200,060 
$
151,655 
Adjustments for:
Amortization and depreciation
38,514 
25,215 
76,833 
43,835 
Income tax expense
19,321 
13,082 
37,206 
27,823 
Amortization of deferred revenue
14
(3,553)
(3,407)
(8,882)
(5,653)
Share-based compensation
13 (e)
1,063 
7,756 
3,703 
8,929 
Finance income
(1,443)
(1,130)
(2,564)
(1,968)
Finance expenses
17
12,678 
5,976 
23,742 
10,699 
Foreign exchange gain
(14,610)
(38,644)
(62,963)
(96,108)
Other
(2,919)
245 
6,274 
2,437 
Changes in non-cash working capital items
20
(6,686)
10,491 
(30,817)
(32,275)
133,114 
90,612 
242,592 
109,374 
Advances from customers
11
— 
— 
— 
50,000 
Derivative contract settlements
6,109 
217 
3,698 
(1,999)
Provision settlements
(913)
(458)
(1,556)
(1,200)
Income taxes paid
(448)
(115)
(14,115)
(479)
137,862 
90,256 
230,619 
155,696 
Cash Flows used in Investing Activities
Additions to mineral properties, plant and equipment
(80,528)
(66,090)
(136,305)
(122,520)
Additions to exploration and evaluation assets
(5,505)
(5,189)
(10,541)
(8,298)
Interest received
995 
765 
1,690 
1,282 
(85,038)
(70,514)
(145,156)
(129,536)
Cash Flows used in Financing Activities
Lease liability payments
(5,363)
(4,518)
(10,541)
(8,521)
New loans and borrowings, net of transaction costs
10
3,334 
— 
6,064 
55,266 
Loans and borrowings repaid
10
(36,231)
(22,122)
(57,662)
(31,624)
Interest paid on loans and borrowings
10
(4,344)
(4,432)
(21,185)
(21,359)
Other finance expenses paid
(3,394)
(2,780)
(6,359)
(4,830)
Proceeds from exercise of stock options
324 
277 
1,462 
484 
(45,674)
(33,575)
(88,221)
(10,584)
Effect of exchange rate changes on cash and cash equivalents
3,385 
1,563 
(942)
2,325 
Net increase (decrease) in cash and cash equivalents
10,535 
(12,270)
(3,700)
17,901 
Cash and cash equivalents - beginning of period
91,207 
80,573 
105,442 
50,402 
Cash and cash equivalents - end of period
$
101,742 
$
68,303 
$
101,742 
$
68,303 
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
— 
— 
— 
— 
150,775 
150,775 
880 
151,655 
Other comprehensive income for the period
— 
— 
— 
82,822 
— 
82,822 
800 
83,622 
Total comprehensive income for the period
— 
— 
— 
82,822 
150,775 
233,597 
1,680 
235,277 
Shares issued for:
Exercise of options
38,186 
732 
(248)
— 
— 
484 
— 
484 
Settlement of restricted share units
4,433 
96 
(206)
— 
— 
(110)
— 
(110)
Share-based compensation
13 (e)
— 
— 
2,195 
— 
— 
2,195 
— 
2,195 
Balance, June 30, 2025
103,597,830 
$
287,376 
$
9,922 
$
(105,831)
$
631,830 
$
823,297 
$
5,623 
$
828,920 
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
— 
— 
— 
— 
198,314 
198,314 
1,746 
200,060 
Other comprehensive income for the period
— 
— 
— 
59,023 
— 
59,023 
574 
59,597 
Total comprehensive income for the period
— 
— 
— 
59,023 
198,314 
257,337 
2,320 
259,657 
Shares issued for:
Exercise of options
108,283 
2,122 
(660)
— 
— 
1,462 
— 
1,462 
Settlement of restricted share units
2,062 
29 
(41)
— 
— 
(12)
— 
(12)
Share-based compensation
13 (e)
— 
— 
2,403 
— 
— 
2,403 
— 
2,403 
Reclassification of cash-settled share-based compensation to equity
13 (b)
— 
— 
16,816 
— 
— 
16,816 
— 
16,816 
Balance, June 30, 2026
104,302,633 
$
300,641 
$
25,853 
$
(56,047)
$
943,092 
$
1,213,539 
$
4,649 
$
1,218,188 




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 ("Ero Brasil"). 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 August 5, 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 Instruments ("IFRS 9"), which was published in May 2024 by IASB. The amendments clarify that a financial asset 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 June 30, 2026
Caraíba
(Brazil)
Tucumã
(Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
111,973 
$
107,449 
$
64,891 
$
— 
$
284,313 
Cost of production
(59,098)
(31,632)
(16,618)
— 
(107,348)
Depreciation and depletion
(19,061)
(12,896)
(6,195)
— 
(38,152)
Sales expense
(2,572)
(10,003)
(4,819)
— 
(17,394)
Cost of sales
(80,731)
(54,531)
(27,632)
— 
(162,894)
Gross profit
31,242 
52,918 
37,259 
— 
121,419 
Expenses
General and administrative
(5,231)
(2,345)
(1,827)
(3,132)
(12,535)
Share-based compensation
— 
— 
— 
(1,063)
(1,063)
Operating income (loss)
$
26,011 
$
50,573 
$
35,432 
$
(4,195)
$
107,821 
Capital expenditures(1)
49,162 
10,384 
20,883 
9,647 
90,076 


Three months ended June 30, 2025
Caraíba
(Brazil)
Tucumã (Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
88,404 
$
49,656 
$
25,450 
$
— 
$
163,510 
Cost of production
(46,890)
(11,678)
(8,761)
— 
(67,329)
Depreciation and depletion
(19,343)
(30)
(5,513)
— 
(24,886)
Sales expense
(1,751)
(2,027)
(231)
— 
(4,009)
Cost of sales
(67,984)
(13,735)
(14,505)
— 
(96,224)
Gross profit
20,420 
35,921 
10,945 
— 
67,286 
Expenses
General and administrative
(4,799)
(3,111)
(1,430)
(2,224)
(11,564)
Share-based compensation
— 
— 
— 
(7,756)
(7,756)
Operating income (loss)
$
15,621 
$
32,810 
$
9,515 
$
(9,980)
$
47,966 
Capital expenditures(1)
47,990 
18,099 
5,762 
5,233 
77,084 
(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.
(2)    On July 1, 2025, the Company announced that Tucumã Operation achieved commercial production which is the point at which the mine is capable of operating in the manner intended by the Company's management.

    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)



Six months ended June 30, 2026
Caraíba
(Brazil)
Tucumã
(Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
230,499 
$
209,627 
$
107,357 
$
— 
$
547,483 
Cost of production
(121,450)
(61,370)
(30,495)
— 
(213,315)
Depreciation and depletion
(40,042)
(24,881)
(11,196)
— 
(76,119)
Sales expense
(5,910)
(17,814)
(6,992)
— 
(30,716)
Cost of sales
(167,402)
(104,065)
(48,683)
— 
(320,150)
Gross profit
63,097 
105,562 
58,674 
— 
227,333 
Expenses
General and administrative
(9,750)
(4,481)
(3,370)
(5,992)
(23,593)
Share-based compensation
— 
— 
— 
(3,703)
(3,703)
Operating income (loss)
$
53,347 
$
101,081 
$
55,304 
$
(9,695)
$
200,037 
Capital expenditures(1)
87,412 
16,204 
34,720 
16,033 
154,369 
Assets
Current
$
88,414 
$
134,053 
$
78,580 
$
22,953 
324,000 
Non-current
1,130,463 
497,735 
150,603 
52,632 
1,831,433 
Total Assets
$
1,218,877 
$
631,788 
$
229,183 
$
75,585 
$
2,155,433 
Total Liabilities
$
148,530 
$
44,469 
$
170,626 
$
573,620 
$
937,245 

(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 six months ended June 30, 2026, the Company had eight significant customers (June 30, 2025 - five), including five copper customers (June 30, 2025 - three) and three gold customers (June 30, 2025 - two).



    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)



Six months ended June 30, 2025
Caraíba
(Brazil)
Tucumã (Brazil)
Xavantina
(Brazil)
Corporate and Other
Consolidated
Revenue
$
151,674 
$
95,888 
$
41,036 
$
— 
$
288,598 
Cost of production
(82,609)
(17,200)
(14,986)
— 
(114,795)
Depreciation and depletion
(33,989)
(75)
(9,068)
— 
(43,132)
Sales expense
(3,127)
(4,230)
(506)
— 
(7,863)
Cost of sales
(119,725)
(21,505)
(24,560)
— 
(165,790)
Gross profit
31,949 
74,383 
16,476 
— 
122,808 
Expenses
General and administrative
(9,421)
(4,534)
(3,117)
(5,863)
(22,935)
Share-based compensation
— 
— 
— 
(8,929)
(8,929)
Operating income (loss)
$
22,528 
$
69,849 
$
13,359 
$
(14,792)
$
90,944 
Capital expenditures(1)
82,394 
33,551 
10,580 
8,160 
134,685 
Assets
Current
$
78,070 
$
41,054 
$
48,648 
$
10,752 
178,524 
Non-current
962,043 
502,366 
105,682 
23,796 
1,593,887 
Total Assets
$
1,040,113 
$
543,420 
$
154,330 
$
34,548 
$
1,772,411 
Total Liabilities
$
169,578 
$
29,478 
$
139,960 
$
604,475 
943,491 

(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.
(2)    On July 1, 2025, the Company announced that Tucumã Operation achieved commercial production which is the point at which the mine is capable of operating in the manner intended by the Company's management.

    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)


4.    Inventories

June 30, 2026
December 31, 2025
Supplies and consumables
$
73,470 
$
54,504 
Stockpiles
35,326 
33,925 
Work in progress
4,934 
5,197 
Finished goods
16,265 
13,485 
$
129,995 
$
107,111 

5.    Other Current Assets

June 30, 2026
December 31, 2025
Advances to suppliers
$
3,401 
$
3,643 
Prepaid expenses and other
7,657 
6,250 
Derivatives (Note 19)
20,267 
4,701 
Value added taxes recoverable
6,545 
8,004 
$
37,870 
$
22,598 

    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)

6.    Mineral Properties, Plant and Equipment
Buildings
Mining Equipment
Mineral
Properties(1)
Projects in
Progress
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
505 
11,236 
62,650 
53,623 
318 
14,016 
— 
3,363 
145,711 
Capitalized borrowing costs
— 
— 
— 
10,017 
— 
— 
— 
— 
10,017 
Disposals
— 
(2,242)
— 
— 
(5)
(6)
— 
(1,311)
(3,564)
Transfers
8,182 
7,452 
33,585 
(45,422)
187 
(3,070)
— 
(914)
— 
Foreign exchange
5,933 
31,378 
62,789 
16,864 
2,102 
126 
1,206 
4,745 
125,143 
Balance, June 30, 2026
$
109,002 
$
544,800 
$
1,171,306 
$
373,787 
$
37,558 
$
13,839 
$
20,277 
$
82,388 
$
2,352,957 
Accumulated depreciation:
Balance, December 31, 2025
(13,112)
(121,910)
(293,864)
— 
(12,579)
— 
(7,461)
(52,670)
(501,596)
Depreciation expense
(4,063)
(26,889)
(33,534)
— 
(1,432)
— 
(606)
(9,649)
(76,173)
Disposals
— 
1,280 
— 
— 
1 
— 
— 
941 
2,222 
Transfers
— 
(801)
— 
— 
— 
— 
— 
801 
— 
Foreign exchange
(811)
(7,593)
(18,669)
— 
(714)
— 
(469)
(3,241)
(31,497)
Balance, June 30, 2026
$
(17,986)
$
(155,913)
$
(346,067)
$
— 
$
(14,724)
$
— 
$
(8,536)
$
(63,818)
$
(607,044)
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, June 30, 2026
$
91,016 
$
388,887 
$
825,239 
$
373,787 
$
22,834 
$
13,839 
$
11,741 
$
18,570 
$
1,745,913 

(1) Mineral properties as at June 30, 2026 include $76.7 million (December 31, 2025 - $64.7 million) of costs on expansion of near-mine resource potential which are not currently being depreciated.



     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)

7.    Exploration and Evaluation Assets

As at June 30, 2026, the Company had $48.3 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 June 30, 2026, exploration and evaluation assets include $36.6 million (December 31, 2025 - $24.1 million) in expenditures associated with the Furnas Project.


8.     Deposits and Other Non-current Assets

June 30, 2026
December 31, 2025
Value added taxes recoverable
$
22,107 
$
21,015 
Note receivable (Note 19)
13,072 
12,998 
Deposits and others
279 
2,683 
$
35,458 
$
36,696 











    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)

9.    Accounts Payable and Accrued Liabilities

June 30, 2026
December 31, 2025
Trade suppliers
$
114,669 
$
92,283 
Payroll and labour related liabilities
24,428 
25,688 
Value added tax, royalty and other taxes payable
12,893 
10,692 
Cash-settled equity awards (Note 13(b) and (d))
9,634 
20,615 
Provision for rehabilitation and closure costs
2,462 
3,768 
Other accrued liabilities
1,063 
1,078 
$
165,149 
$
154,124 
.

10.    Loans and Borrowings

Carrying value,
including accrued interest
Description
Currency
Security
Maturity
(Months)
Coupon rate
Principal to be repaid
June 30,
2026
December 31,
2025
Senior Notes
USD
Unsecured
43
6.50%
$
400,000 
$
405,590 
$
405,092 
Senior Revolving Credit Facility
USD
Secured
30
SOFR +
2.00% to 4.25%; or Base Rate + 1.00% to 3.25%
120,000 
119,080 
154,706 
Copper Prepayment Facility
USD
Secured
6
8.66%
18,254 
19,955 
39,087 
Equipment finance loans
USD
Secured
7 - 36
6.90% - 8.35%
7,099 
7,146 
7,319 
Equipment finance loans
EUR
Secured
30 - 35
7.70%
2,340 
2,345 
168 
Equipment finance loans
BRL
Unsecured
0
16.63%
— 
— 
84 
Bank loan
BRL
Unsecured
5
CDI + 0.50%
316 
318 
658 
Total
$
548,009 
$
554,434 
$
607,114 
Current portion
$
34,578 
$
55,711 
Non-current portion
$
519,856 
$
551,403 













    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 movements in loans and borrowings are comprised of the following:
Six months ended June 30, 2026
Year ended
December 31,
2025
Senior Notes
Senior Revolving 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
— 
— 
6,064 
6,064 
57,404 
Principal payments
— 
(35,000)
(18,254)
(4,408)
(57,662)
(54,740)
Interest payments
(13,000)
(5,619)
(2,212)
(354)
(21,185)
(42,736)
Interest costs, including interest capitalized
13,498 
4,993 
1,334 
293 
20,118 
44,487 
Foreign exchange
— 
— 
— 
(15)
(15)
510 
Balance, end of period
$
405,590 
$
119,080 
$
19,955 
$
9,809 
$
554,434 
$
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 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%, or lender's Base Rate plus 1.00% to 3.25%, 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 June 30, 2026, the Senior Revolving Credit Facility bears a weighted average interest rate of 6.56% on its drawn balance and a commitment fee of 0.56% on its undrawn balance.


    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 Senior Revolving Credit Facility is secured by the shares of MCSA, NX Gold, Ero Gold, Ero Brasil, Ero Brasil Participações II Ltda., and Ero Holdings Corp. 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 Senior Revolving Credit Facility provides for negative covenants customary for this type of facility and permits additional equipment debt and finance leases of up to $50.0 million. As at June 30, 2026, the Company is in compliance with these financial covenants.

Subsequent to June 30, 2026, the Company repaid an additional $25.0 million of the Senior Revolving Credit Facility.

(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, Ero Gold, Ero Brasil, Ero Brasil Participações II Ltda., and Ero Holdings Corp.



11. Deferred Revenue

The Company entered into a precious metals purchase agreement (the “Xavantina Gold 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 in exchange for cash payments equal to 40% of the prevailing spot gold price.


    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)

The movements in the Xavantina Gold Stream deferred revenue during the six months ended June 30, 2026 and the year ended December 31, 2025 are comprised of the following:

June 30, 2026
December 31,
2025
Gold ounces delivered in the period(1)
6,673 
9,692 
Balance, beginning of period
$
105,750 
$
62,989 
Advances
— 
50,000 
Accretion expense
3,858 
6,764 
Amortization of deferred revenue
(8,882)
(14,003)
Balance, end of period
$
100,726 
$
105,750 
Current portion
$
11,626 
$
12,800 
Non-current portion
89,100 
92,950 
(1)        During the six months ended June 30, 2026, the Company delivered 6,673 payable ounces of gold (year ended December 31, 2025 - 9,692 ounces) to Royal Gold for average consideration of $1,841 per ounce (December 31, 2025 - $1,213 per ounce). At June 30, 2026, a cumulative 61,542 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

June 30, 2026
December 31, 2025
Cash-settled equity awards (Note 13(b))
$
— 
$
5,470 
Withholding, value added tax, and other taxes payable
25,759 
22,286 
Provision
2,281 
1,856 
Derivatives (Note 19)
977 
— 
Dividends payable to non-controlling interest
5,847 
5,503 
Other liabilities
4,210 
4,173 
$
39,074 
$
39,288 


    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)

13.     Share Capital

As at June 30, 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:

Six Months Ended June 30,
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 
Issued
— 
— 
11,017 
17.94 
Exercised
(108,283)
18.65 
(38,186)
17.79 
Forfeited
(10,763)
19.80 
(80,531)
19.89 
Outstanding stock options, end of period
1,221,517 
$
22.77 
1,626,907 
$
19.05 

The weighted average share price on the date of exercise for options exercised during the six months ended June 30, 2026 was CAD$42.96 (six months ended June 30, 2025 - CAD$19.79).


As at June 30, 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
559,891 
420,525 
1.93
$20.01 to $30.00 CAD
383,882 
116,136 
3.42
$30.01 to $34.58 CAD
277,744 
19,464 
4.45
$22.77 CAD ($16.02 USD)
1,221,517 
556,125 
2.97

(b)     Performance Share Units

Pursuant to the Share Unit Plan, the Compensation Committee may grant performance share units ("PSUs") to employees, consultants, directors and officers ("Eligible Persons") of the Company or its subsidiaries. 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

    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)
Committee in its sole discretion. Based on the Company's history of settling PSUs using a combination of cash and common shares, PSUs were 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.

On June 29, 2026, upon shareholder approval of the Amended and Restated Share Unit Plan at the Company's annual general and special meeting, the Compensation Committee's option to settle vested units using cash was eliminated. As a result, each vested unit is redeemable solely in common shares of the Company. Consequently, PSUs were reclassified from cash-settled to equity-settled instruments. Accordingly, the Company derecognized $19.6 million of PSU liabilities, recognized $16.8 million in contributed surplus, representing the fair value of issued PSUs at the modification date, and recorded a reduction in share-based compensation expense of $2.8 million. Post-modification, the fair value of PSUs will not be remeasured.

The continuity of PSUs issued and outstanding is as follows:

Six Months Ended June 30,
2026
2025
Outstanding balance, beginning of period
879,703 
1,014,505 
Issued
— 
9,022 
Forfeited
(16,322)
(38,218)
Outstanding balance, end of period
863,381 
985,309 


(c) Restricted Share Units

Pursuant to the Share Unit Plan, the Compensation Committee may grant restricted share units ("RSUs") to Eligible Persons of the Company or its subsidiaries. The fair value of RSUs 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. Based on the Company's history of settling RSUs with common shares, RSUs were classified as equity-settled instruments.

On June 29, 2026, upon shareholder approval of the Amended and Restated Share Unit Plan at the Company's annual general and special meeting, the Compensation Committee's option to settle vested units using cash was eliminated. As a result, each vested unit is redeemable solely in common shares of the Company. There is no change to the accounting treatment of RSUs.












    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)
The continuity of RSUs issued and outstanding is as follows:
Six months ended June 30,
2026
2025
Outstanding balance, beginning of period
270,886 
328,180
Issued
— 
4,510 
Settled
(2,707)
(9,537)
Forfeited
(4,028)
(12,259)
Outstanding balance, end of period
264,151 
310,894 

(d) Deferred Share Units

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:

Six months ended June 30,
2026
2025
Outstanding balance, beginning of period
356,799 
325,111
Issued
5,348 
10,222 
Outstanding balance, end of period
362,147 
335,333 

At June 30, 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.


(e) Share-based compensation

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Stock options
$
566 
$
594 
$
1,155 
$
1,085 
Performance share units
(355)
5,191 
1,454 
5,723 
Restricted share units
581 
552 
1,200 
1,070 
Deferred share units
271 
1,419 
(106)
1,051 
Share-based compensation(1)
$
1,063 
$
7,756 
$
3,703 
$
8,929 

(1)    For the three and six months ended June 30, 2026, the Company recorded $1.2 million and $2.4 million (three and six months ended June 30, 2025 - $1.1 million and $2.2 million) of share-based compensation in contributed surplus, and the remaining share-based compensation was recorded in liabilities.

    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)

(f)     Net Income per Share
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Weighted average number of common shares outstanding
104,282,548 
103,582,082 
104,272,398 
103,573,416 
Dilutive effects of:
Stock options
466,866 
12,585 
480,156 
17,702 
Share units
1,127,532 
310,894 
1,127,532 
310,894 
Weighted average number of diluted common shares outstanding(1)
105,876,946 
103,905,561 
105,880,086 
103,902,012 
Net income attributable to owners of the Company
$
89,543 
$
70,548 
$
198,314 
$
150,775 
Basic net income per share
$
0.86 
$
0.68 
$
1.90 
$
1.46 
Diluted net income per share
$
0.85 
$
0.68 
$
1.87 
$
1.45 

(1)    Weighted average number of diluted common shares outstanding for the three and six months ended June 30, 2026 excluded 258,280 and 258,280 (three and six months ended June 30, 2025 - 1,343,914 and 966,159) stock options.

14. Revenue

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Copper
Concentrate sales
220,023 
141,969 
$
441,387 
$
250,608 
Adjustments on provisional sales(1)
(601)
(3,909)
(1,261)
(3,046)
219,422 
138,060 
440,126 
247,562 
Gold
Dore Sales
25,817 
22,043 
48,191 
35,383 
Concentrate sales
35,617 
— 
50,355 
— 
Adjustments on provisional sales(1)
(96)
— 
(71)
— 
Amortization of deferred revenue(2)
3,553 
3,407 
8,882 
5,653 
$
64,891 
$
25,450 
$
107,357 
$
41,036 
$
284,313 
$
163,510 
$
547,483 
$
288,598 

(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 (June 30, 2025 - zero to six month) after shipment takes place and, therefore, are exposed to commodity price changes.

(2)    During the three and six months ended June 30, 2026, the Company delivered 2,736 and 6,673 ounces of gold, respectively (three and six months ended June 30, 2025 - 1,882 and 3,249 ounces of gold), under a precious metals purchase agreement with Royal Gold (note 11) for average cash consideration of $1,795 and $1,841 per ounce (three and six months ended June 30, 2025 - $654 and $619).

    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 June 30,
Six months ended June 30,
2026
2025
2026
2025
Materials
$
24,442 
$
13,118 
$
44,397 
$
24,808 
Salaries and benefits
28,133 
20,026 
55,609 
38,929 
Contracted services
35,343 
15,331 
64,149 
23,547 
Maintenance costs
17,863 
13,268 
34,907 
22,791 
Utilities
7,527 
4,109 
13,685 
8,255 
Other costs
1,207 
484 
2,243 
888 
Change in inventory (excluding depreciation and depletion)
(7,167)
993 
(1,675)
(4,423)
Cost of production
107,348 
67,329 
213,315 
114,795 
Sales expense
17,394 
4,009 
30,716 
7,863 
Depreciation and depletion
39,304 
23,685 
75,056 
44,059 
Change in inventory (depreciation and depletion)
(1,152)
1,201 
1,063 
(927)
$
162,894 
$
96,224 
$
320,150 
$
165,790 



16.     General and Administrative Expenses

Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Accounting and legal
$
494 
$
479 
$
988 
$
857 
Amortization and depreciation
362 
329 
714 
703 
Office and administration
2,189 
2,378 
4,429 
4,650 
Salaries and consulting fees
7,166 
6,673 
13,141 
13,210 
Incentive payments
1,321 
978 
2,662 
2,076 
Other
1,003 
727 
1,659 
1,439 
$
12,535 
$
11,564 
$
23,593 
$
22,935 


    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 June 30,
Six months ended June 30,
2026
2025
2026
2025
Interest on loans and borrowings(2)
$
4,726 
$
— 
$
10,101 
$
— 
Accretion of deferred revenue
1,916 
2,146 
$
3,858 
$
2,725 
Accretion of provision for rehabilitation and closure costs
798 
866 
1,580 
1,707 
Interest on lease liabilities
624 
631 
1,296 
1,194 
Other finance expenses(1)
4,614 
2,333 
6,907 
5,073 
$
12,678 
$
5,976 
$
23,742 
$
10,699 

(1)    Other finance expenses during the three and six months ended June 30, 2026 included $1.8 million and $1.8 million, respectively (three and six months ended June 30, 2025 - $0.2 million and $1.4 million) of credit loss on certain accounts receivable.
(2)    During the three and six months ended June 30, 2026, the Company capitalized $5.1 million and $10.0 million, respectively (three and six months ended June 30, 2025 -$11.4 million and $22.4 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 Reais (BRL$), which is their functional currency.
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Foreign exchange gain (loss) on USD denominated debt in Brazil
$
5,722 
$
33,007 
$
40,370 
$
78,110 
Realized foreign exchange gain (loss) on derivative contracts (note 19)
12,670 
217 
19,930 
(1,999)
Unrealized foreign exchange gain (loss) on derivative contracts (note 19)
(5,384)
6,633 
11,146 
23,439 
Foreign exchange (loss) gain on other financial assets and liabilities
(2,163)
(1,217)
(6,946)
(2,510)
$
10,845 
$
38,640 
$
64,500 
$
97,040 



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.

    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)

As at June 30, 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 June 30, 2026, the carrying value of loans and borrowings, including accrued interest, was $554.4 million while the fair value is approximately $547.4 million. At June 30, 2026, the carrying value of notes receivable, including accrued interest, was $13.2 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 June 30, 2026 are as follows:

Contract Description
Notional Amount
Denomination
Weighted average floor
Weighted average cap / forward price
Maturities
Foreign exchange collar (i)
$450.0 million
USD/BRL
5.40
6.34
July 2026 - December 2027

(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 June 30, 2026 relates to $29.4 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 June 30, 2026 on $597.1 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 June 30, 2026 by 10% and 20%, would have decreased (increased) pre-tax net income by $62.4 million and $124.8 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 June 30, 2026, the aggregate fair value of the Company's foreign exchange derivatives was a net asset of $19.3 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 a loss of $5.4 million and gain of $11.1 million for the three and six months ended June 30, 2026, respectively (a gain of $6.6 million and of $23.4 million for the three and six months ended June 30, 2025, respectively), and have been recognized in foreign exchange gain.


    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)
In addition, during the three and six months ended June 30, 2026, the Company recognized a realized gain of $12.7 million and $19.9 million, respectively (realized gain of $0.2 million and loss of $2.0 million for the three and six months ended June 30, 2025 respectively), related to the settlement of foreign currency forward collar contracts.

(ii) Price risk

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

As of June 30, 2026, all the gold collar contracts were matured (December 31, 2025 - liability of $6.8 million).

During the three and six months ended June 30, 2026, the Company recognized an unrealized gain of $6.0 million and $5.3 million (unrealized gain of $0.6 million and loss of $1.5 million for the three and six months ended June 30, 2025), respectively, in relation to its commodity derivatives in other income or loss.

During the three and six months ended June 30, 2026, the Company recognized a realized loss of $3.0 million and $10.9 million (nil for three and six months ended June 30, 2025), respectively, in relation to its commodity derivatives in other income or loss.

At June 30, 2026, the Company had provisionally priced sales that are exposed to commodity price changes (note 14). Based on the Company’s net exposure at June 30, 2026, a 10% change in the price of copper and gold would have changed pre-tax net income (loss) by $9.9 million.


    Notes to Financial Statements | Page 24
Ero Copper Corp.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

20. Supplemental Cash Flow Information

Three months ended June 30,
Six months ended June 30,
Net change in non-cash working capital items:
2026
2025
2026
2025
Accounts receivable
$
(6,612)
$
50,911 
$
(13,296)
$
5,849 
Inventories
(20,223)
(6,022)
(17,335)
(14,030)
Other assets
(3,431)
(1,864)
(7,642)
(3,538)
Accounts payable and accrued liabilities
23,580 
(32,534)
7,456 
(20,556)
$
(6,686)
$
10,491 
$
(30,817)
$
(32,275)
Non-cash investing and financing activities:
Additions to property, plant and equipment by leases
1,764 
6,781 
$
3,363 
$
13,956 
Non-cash increase in accounts payable in relation to additions of property, plant and equipment and exploration and evaluation assets
4,043 
5,805 
7,523 
3,867 
Non-cash operating activities:
Settlement of income taxes payable via VAT recoverable
(7,511)
(5,034)
$
(11,587)
$
(7,082)



21.    Commitment

As at June 30, 2026, the Company has capital commitments, which are net of advances to suppliers, of $84.8 million through contracts and purchase orders which are expected to be incurred over a six-year period. In the normal course of operations, the Company may also enter into long-term contracts which can be cancelled with certain agreed customary notice periods without material penalties.



    Notes to Financial Statements | Page 25