Ero Copper : Third Quarter Results for the period ended September 30, 2025 (MDA)

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: [phone] | Website: https://www.erocopper.com | Email: [e-mail]

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

Review of annual results 13

Summary of quarterly results for most recent eight quarters 15

OTHER DISCLOSURES

Liquidity, Capital Resources, and Contractual Obligations 16

Management of Risks and Uncertainties 18

Other Financial Information 22

Accounting Policies, Judgments and Estimates 22

Capital Expenditures 24

Alternative Performance (NON-IFRS) Measures 25

Disclosure Controls and Procedures and Internal Control over Financial Reporting 37

Notes and Cautionary Statements 37

‌MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management's Discussion and Analysis ("MD&A") has been prepared as at November 4, 2025 and should be read in conjunction with the unaudited condensed consolidated interim financial statements of Ero Copper Corp. ("Ero", the "Company", or "we") as at, and for the three and nine months ended September 30, 2025, and related notes thereto, which are prepared in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting as issued by the International Accounting Standards Board (the "IASB"). All references in this MD&A to "Q3 2025" and "Q3 2024" are to the three months ended September 30, 2025 and September 30, 2024, respectively, and all references to "YTD 2025" and "YTD 2024" are to the nine months ended September 30, 2025 and September 30, 2024, respectively. This MD&A should be read in conjunction with the Company's December 31, 2024 audited consolidated financial statements and MD&A. All dollar amounts are expressed in United States ("US") dollars and tabular amounts are expressed in thousands of US dollars, unless otherwise indicated. References to "$", "US$", "dollars", or "USD" are to US dollars, references to "C$" are to Canadian dollars, and references to "R$" or "BRL" are to Brazilian Reais.

This MD&A refers to various alternative performance (Non-IFRS) measures, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, realized copper price, gold C1 cash cost, gold all-in sustaining cost ("AISC"), realized gold price, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share attributable to owners of the Company, net (cash) debt, working capital and available liquidity. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" for a discussion of non-IFRS measures.

This MD&A contains "forward-looking statements" that are subject to risk factors set out in a cautionary note contained at the end of this MD&A. The Company cannot assure investors that such statements will prove to be accurate, and actual results and future, events may differ materially from those anticipated in such statements. The results for the periods presented are not necessarily indicative of the results that may be expected for any future period. Investors are cautioned not to place undue reliance on such forward-looking statements. All information contained in this MD&A is current and has been approved by the Board of Directors of the Company (the "Board") as of November 4, 2025, unless otherwise stated.

BUSINESS OVERVIEW

Ero Copper is a high-margin, high-growth copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"), which is the 100% owner of the Company's Caraíba Operations located in the Curaçá Valley, Bahia State, Brazil and the Tucumã Operation, an open pit copper mine located in Pará State, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold"), which owns the Xavantina Operations, comprised of an operating gold mine located in Mato Grosso State, Brazil.

Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Operation, can be found on SEDAR+ (https://www.sedarplus.ca) and on EDGAR (https://www.sec.gov). The Company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol "ERO".

‌HIGHLIGHTS
Operating Highlights			2025 - Q3		2025 - Q2		2024 - Q3			2025 - YTD		2024 - YTD
Copper (Caraíba Operations)
Ore Processed (tonnes)			996,661		791,946		900,289			2,481,508		2,711,352
Grade (% Cu)			1.01		1.27		1.20			1.14		1.10
Cu Production (tonnes)			9,085		9,162		9,920			25,604		26,878
Cu Production (lbs)			20,029,832		20,198,967		21,870,631			56,447,924		59,256,602
Cu Sold in Concentrate (tonnes)			9,080		9,387		9,970			25,416		28,137
Cu Sold in Concentrate (lbs)			20,016,537		20,696,749		21,980,217			56,031,397		62,031,124
Cu C1 Cash Cost(1)(2)		Σ	2.32		$ 2.07		$ 1.63		Σ	2.20		$ 2.01
Copper (Tucumã Operation)
Ore Processed (tonnes)			575,041		418,699		110,778			1,288,054		110,778
Grade (% Cu)			1.51		1.74		1.00			1.74		1.00
Cu Production (tonnes)			7,579		6,351		839			18,997		839
Cu Production (lbs)			16,707,162		14,002,338		1,850,043			41,880,323		1,850,043
Cu Sold in Concentrate (tonnes)			6,622		5,968		357			17,758		357
Cu Sold in Concentrate (lbs)			14,597,738		13,157,666		787,042			39,148,894		787,042
Cu C1 Cash Cost(1)(2)(3)		Σ	1.62		$ -		$ -		Σ	1.62		$ -
Total Copper
Cu Production (tonnes)			16,664		15,513		10,759			44,601		27,717
Cu Production (lbs)			36,736,994		34,201,305		23,720,674			98,328,247		61,106,645
Cu Sold in Concentrate (tonnes)			15,702		15,355		10,327			43,174		28,494
Cu Sold in Concentrate (lbs)			34,614,275		33,854,415		22,767,259			95,180,291		62,818,166
Cu C1 Cash Cost(1)(2)(3)		Σ	2.00		$ 2.07		$ 1.63		Σ	2.07		$ 2.01
Gold (Xavantina Operations)
Ore Processed (tonnes)			47,865		37,829		41,761			118,922		120,041
Grade (g / tonne)			8.15		7.11		11.41			7.46		13.85
Au Production (oz)			9,073		7,743		13,485			23,454		48,274
Au Sold (oz)			8,439		8,276		14,615			22,549		49,089
Au C1 Cash Cost(1)		Σ	1,086		$ 1,115		$ 539		Σ	1,100		$ 447
Au AISC(1)		Σ	2,425		$ 2,234		$ 1,034		Σ	2,307		$ 879

1. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

2. Copper C1 cash cost including foreign exchange hedges was $2.25 in Q3 2025 (Q3 2024 - $1.72) and $2.21 in YTD 2025 (YTD 2024 - $2.04) for the Caraíba Operations, and $1.58 in Q3 2025 and $1.58 in YTD 2025 for the Tucumã Operation.

3. The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, YTD 2025 copper C1 cash cost for the Tucumã Operation reflects costs from Q3 2025 onward only. Total YTD 2025 copper C1 cash costs include the Caraíba Operations' YTD costs and Tucumã Operation costs from Q3 2025 onwards.

Financial Highlights

($ in millions, except per share amounts)

2025 - Q3				2025 - Q2		2024 - Q3		2025 - YTD			2024 - YTD
Revenues		Σ	177.1		$ 163.5		$ 124.8		Σ	465.7		$ 347.7
Gross profit			57.4		67.3		53.7			180.2		128.2
EBITDA(1)			90.8		114.2		74.5			322.8		56.1
Adjusted EBITDA(1)			77.1		82.7		62.2			223.0		157.0
Cash flow from operations			110.3		90.3		52.7			266.0		84.6
Net income (loss)			36.5		71.0		41.4			188.2		(18.9)
Net income (loss) attributable to owners
of the Company		36.0			70.5		40.9		186.8			(19.5)
- Per share (basic)		0.35			0.68		0.40		1.80			(0.19)
- Per share (diluted)		0.35			0.68		0.39		1.80			(0.19)
Adjusted net income attributable to
owners of the Company(1)		27.9			48.1		27.6		111.9			63.0
- Per share (basic)		0.27			0.46		0.27		1.08			0.61
- Per share (diluted)		0.27			0.46		0.27		1.08			0.61
Cash, cash equivalents, and short-term
investments		66.3			68.3		20.2		66.3			20.2
Working deficit(1)		(45.2)			(33.5)		(60.9)		(45.2)			(60.9)
Available liquidity(1)		111.3			113.3		125.2		111.3			125.2
Net debt(1)		545.5			559.1		518.7		545.5			518.7

1. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

   Q3 2025 Highlights Consolidated copper production increased sequentially, driven by consistent performance at the Caraíba Operation and the continued ramp-up of the Tucumã Operation, while gold production increased quarter-on-quarter as the Xavantina Operations continued to benefit from the transition to mechanized mining.

   • Consolidated copper production grew to a record 16,664 tonnes in concentrate at a blended C1 cash cost(1) of $2.00 per pound in Q3 2025, reflecting higher quarter-on-quarter production at Tucumã and consistent quarterly production at Caraíba.

     • The Caraíba Operations produced 9,085 tonnes of copper in concentrate at an average C1 cash cost(1) of $2.32 per pound. Plant throughput reached record quarterly volumes, supported by a multi-quarter plant debottlenecking effort and higher mining rates across all three mines. Overall copper production was steady quarter-on-quarter due to lower planned mined and processed grades. Consequently, C1 cash costs(1) increased 12% compared to the prior period.

     • The Tucumã Operation produced 7,579 tonnes of copper in concentrate at an average C1 cash cost(1) of $1.62 per pound. Production increased 19% from Q2 2025, driven by a 37% increase in throughput as the processing plant continued to ramp up.

   • The Xavantina Operations produced 9,073 ounces of gold at an average C1 cash cost(1) and AISC(1) of $1,086 and $2,425 per ounce, respectively. Gold production increased 17% quarter-on-quarter, with more than 50,000 tonnes mined during the period, the highest quarterly mine volume in more than two years, due to benefits associated with the Company's transition to mechanized mining.

   • Quarterly financial performance reflected higher copper concentrate sales at the Tucumã Operation and strengthening copper and gold prices toward the end of the quarter as well as higher operating expenses at Tucumã following the declaration of commercial production on July 1, 2025, as certain ramp-up costs were no longer capitalized, and lower operating margins at the Caraíba Operations due to planned lower mined and processed grades.

     • Net income attributable to the owners of the Company for the quarter was $36.0 million ($0.35 per share on a diluted basis).

     • Adjusted net income attributable to the owners of the Company(1) for the quarter was

       $27.9 million ($0.27 per share on a diluted basis).

     • Adjusted EBITDA(1) was $77.1 million.

   • At quarter-end, available liquidity(1) was $111.3 million, including $66.3 million in cash and cash equivalents and $45.0 million of undrawn availability under the Company's senior secured revolving credit facility ("Senior Credit Facility").

     Value-Creation Initiative at Xavantina Significantly Advanced

   • The Company launched a value-creation initiative in 2024 aimed at capturing value from stockpiled gold concentrates produced in small but high-grade quantities since processing operations began in 2012. During Q3 2025, these efforts culminated in an initial sales agreement, with shipments commencing in October. The Company expects to sell between 10,000 to 15,000 tonnes at an approximate gold grade of 30 to 40 grams per tonne during Q4 2025, and to complete sampling, shipments, and sales of the remaining volume over the next 12 to 18 months, which is expected to significantly bolster gold sales from the Xavantina Operations.

     • The sales contract for expected 2025 gold concentrate volumes has a net payability, prior to streaming adjustments and after deductions, treatment and refining charges, ranging between 90% and 95% of the prevailing gold price based on the final concentrate grade, port of destination, and the prevailing gold price at the time of sale.

     • Operating costs for excavating, drying, loading, transportation and seaborne freight are expected to be approximately $300 to $500 per ounce.

   • Subsequent to quarter-end, the Company published an updated mineral reserve and resource estimate for the Xavantina Operations, which includes a maiden inferred mineral resource estimate for the gold concentrates. The maiden inferred resource estimate contains approximately 29,000 ounces of gold in high-grade, marketable concentrates and is based on sampling of approximately 20% of the total available volume of approximately 60,000 cubic meters. Sampling of the remaining concentrate volume is ongoing. For more information, please refer to the Company's press release dated November 4, 2025.

     Reaffirming 2025 production and capital expenditure guidance; increasing Tucumã cost guidance

   • At the Caraíba Operations, copper production is expected to be highest in Q4 2025, driven by higher mined tonnage from the Surubim open pit and increased plant throughput, following

     the successful completion of a multi-quarter debottlenecking program. Full-year copper production and cost guidance ranges are maintained, with production anticipated to be at the low end of the 37,500 to 42,500-tonne range. Full-year C1 cash costs(1) are projected to be within the lower half of the guidance range of $2.15 to $2.35 per pound.

   • At the Tucumã Operation, copper production is expected to be highest in Q4 2025, reflecting continued improvements in plant throughput as the Company advances availability improvement initiatives within the tailings filtration circuit. Production in Q4 2025 is also expected to benefit from mine sequencing in higher grade blocks of the open pit. Full-year copper production is expected to be at the low end of the 30,000 to 37,500-tonne guidance range with C1 cash costs(1) now expected to be in the range of $1.35 to $1.55 per pound of copper produced (from $1.10 to $1.30 per pound previously) reflecting higher-than-expected maintenance and freight costs experienced in Q3 2025.

   • At the Xavantina Operations, full-year gold production is expected to be toward the lower end of the 40,000 to 50,000-ounce guidance range, with production projected to be highest in Q4 2025 due to higher mined and processed tonnage following the transition to mechanized mining. Full-year C1 cash cost(1) guidance of $850 to $1,000 per ounce and AISC(1) guidance of

     $1,800 to $2,000 per ounce of gold produced are maintained. In addition, the Company also expects to sell 10,000 to 15,000 tonnes of gold concentrate at an approximate gold grade of 30 to 40 grams per tonne during Q4 2025.

   • Full-year capital expenditure guidance remains unchanged at $230 to $270 million.

     Furnas Copper-Gold Project ("Furnas" or the "Project"): Phase 1 Drill Program Results Demonstrate High-Grade Continuity and Extend Mineralization; Phase 2 Drill Program Successfully Completed Ahead of Schedule

   • During Q3 2025, the Company received full assay results for the 28,000-meter Phase 1 drill program, completed in July. Results from the program continue to demonstrate high-grade continuity throughout the deposit and significantly extend the known limits of mineralization within the high-grade zones (greater than 1% CuEq(2)) to depth. Step-out drilling during Phase 1 extended the known limits of mineralization to approximately 950 meters down-dip from surface, representing a significant increase relative to the Project's National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate, which is based on an average historical depth of drilling of 300 meters (vertical), with a maximum localized down-dip depth from surface of 580 meters.

   • Geometallurgical and comminution circuit validation and process improvement testwork, together with the complete Phase 1 assay results, will support a preliminary economic assessment on the Project, including an updated NI 43-101 mineral resource estimate, which the Company plans to publish in H1 2026.

   • Subsequent to quarter-end, the Company completed the 17,000-metre Phase 2 drill program at Furnas. The Phase 2 program was completed approximately three months ahead of schedule, and the Company has commenced the Phase 3 drill program with 8 drill rigs currently operating on site.

1. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

2. Where applicable, CuEq for Phase 1 of the Furnas Project has been calculated using the following formula: Cu grade + (Au grade x 0.03215 x ($1,900 gold price x 61.50% gold metallurgical recovery / (0.01 x $9,259/tonne copper price x 85.00% copper metallurgical recovery)).

REVIEW OF OPERATIONS
‌The Caraíba Operations
		2025 - Q3		2025 - Q2		2024 - Q3		2025 - YTD		2024 - YTD
Ore mined (tonnes)		1,018,972		792,764		874,937		2,507,975		2,560,430
Ore processed (tonnes)		996,661		791,946		900,289		2,481,508		2,711,352
Grade (% Cu)		1.01		1.27		1.20		1.14		1.10
Recovery (%)		90.4		91.1		91.9		90.6		90.2
Cu Production (tonnes)		9,085		9,162		9,920		25,604		26,878
Cu Production (lbs)		20,029,832		20,198,967		21,870,631		56,447,924		59,256,602
Concentrate grade (% Cu)		33.1		32.1		33.3		32.5		33.1
Concentrate sales (tonnes)		27,541		29,365		29,964		78,528		84,907
Cu Sold in concentrate (tonnes)		9,080		9,387		9,970		25,416		28,137
Cu Sold in concentrate (lbs)		20,016,537		20,696,749		21,980,217		56,031,397		62,031,124
Realized copper price(1)		Σ 4.34		$ 4.17		$ 3.88		Σ 4.20		$ 3.94
Copper C1 cash cost(1)		Σ 2.32		$ 2.07		$ 1.63		Σ 2.20		$ 2.01
Copper C1 cash cost including foreign exchange hedges(1)		Σ 2.25		$ 2.06		$ 1.72		Σ 2.21		$ 2.04

1. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

The Caraíba Operations produced 9,085 tonnes of copper in concentrate during the quarter at an average C1 cash cost(1) of $2.32 per pound of copper produced. Including the impact of allocated foreign exchange hedges, C1 cash costs(1) during the period were $2.25 per pound.

Plant throughput increased 26% compared to Q2 2025, reaching record volumes of nearly 1.0 million tonnes for the period, supported by higher mining rates across all three mines and a successful multi-quarter mill debottlenecking program that enabled increased processing rates. Higher tonnes mined and processed during the period were offset by lower planned grades at both Vermelhos and Pilar. Consequently, C1 cash costs(1) increased 12% quarter-on-quarter.

Full-year copper production from the Caraíba Operations is expected to be at the low end of the 37,500 to 42,500-tonne guidance range, with production anticipated to be highest in Q4 2025, driven by higher mined tonnage from the Surubim open pit and increased plant throughput. C1 cash costs(1) are expected to be within the lower half of the guidance range of $2.15 to $2.35 per pound of copper produced.

‌The Tucumã Operation
			2025 - Q3		2025 - Q2		2024 - Q3 2025 - YTD		2024 - YTD
Ore mined (tonnes)			1,333,748		798,811		867,315 2,460,850		867,315
Ore processed (tonnes)			575,041		418,699		110,778 1,288,054		110,778
Grade (% Cu)			1.51		1.74		1.00 1.74		1.00
Recovery (%)			89.2		85.4		75.7 88.0		75.7
Cu Production (tonnes)			7,579		6,351		839 18,997		839
Cu Production (lbs)			16,707,162		14,002,338		1,850,043 41,880,323		1,850,043
Concentrate grade (% Cu)			29.9		30.1		25.5 30.1		25.5
Concentrate sales (tonnes)			24,077		19,468		1,652 59,824		1,652
Cu Sold in concentrate (tonnes)			6,622		5,968		357 17,758		357
Cu Sold in concentrate (lbs)			14,597,738		13,157,666		787,042 39,148,894		787,042
Realized copper price(1)		Σ	4.22		$ 4.04		$ 4.19 Σ 4.12		$ 4.19
Copper C1 cash cost(1)(2)		Σ	1.62		$ -		$ - Σ 1.62		$ -
Copper C1 cash cost including foreign exchange hedges(1)(2)		Σ	1.58		$ -		$ - Σ 1.58		$ -

1. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

2. The Company declared commercial production at the Tucumã Operation effective July 1, 2025. YTD 2025 copper C1 cash cost and copper C1 cash cost including foreign exchange hedges for the Tucumã Operation refers to the period from Q3 2025 onwards only.

The Tucumã Operation produced 7,579 tonnes of copper in concentrate at an average C1 cash cost(1) of $1.62 per pound during the quarter. The quarter-on-quarter increase in production of 19% was driven by higher plant throughput as processing performance continued to improve through the period, partially offset by lower planned grades. Mining operations continued to perform well with over 1.3 million tonnes of ore mined during the period.

Copper production is expected to be highest in Q4 2025, reflecting a continuation of improvements in plant throughput as the Company advances availability improvement initiatives within the tailings filtration circuit. Production in Q4 2025 is also expected to benefit from mine sequencing in higher grade blocks of the open pit during the quarter. Full-year copper production is expected at the low end of the 30,000 to 37,500-tonne guidance range with C1 cash costs(1) now expected to be in the range of $1.35 to $1.55 per pound of copper produced (from $1.10 to $1.30 per pound previously) reflecting higher-than-expected maintenance and freight costs experienced in Q3 2025.

‌The Xavantina Operations
			2025 - Q3		2025 - Q2		2024 - Q3		2025 - YTD		2024 - YTD
Ore mined (tonnes)			50,268		37,829		41,761		121,325		120,041
Ore processed (tonnes)			47,865		37,829		41,761		118,922		120,041
Head grade (grams per tonne Au)			8.15		7.11		11.41		7.46		13.85
Recovery (%)			78.4		88.7		92.5		84.7		91.8
Gold ounces produced (oz)			9,073		7,743		13,485		23,454		48,274
Silver ounces produced (oz)			6,418		4,412		8,168		14,826		28,273
Gold sold (oz)			8,439		8,276		14,615		22,549		49,089
Silver sold (oz)			5,608		5,089		8,523		14,458		28,077
Realized gold price(1)		Σ	3,280		$ 3,114		$ 2,382		Σ 3,070		$ 2,156
Gold C1 cash cost(1)		Σ	1,086		$ 1,115		$ 539		Σ 1,100		$ 447
Gold AISC(1)		Σ	2,425		$ 2,234		$ 1,034		Σ 2,307		$ 879

The Xavantina Operations produced 9,073 ounces of gold during the quarter at a C1 cash cost(1) of

$1,086 and an AISC(1) of $2,425 per ounce. Gold production increased 17% quarter-on-quarter, reflecting higher throughput and processed grades as the transition to mechanized mining advanced in several key production areas of Santo Antônio. This resulted in more than 50,000 tonnes of ore mined during the quarter, a mine production rate last achieved in Q2 2022.

Gold recoveries were impacted as the plant experienced thickener overflows and lower-than-expected CIL performance during the period. Process plant modifications were successfully implemented at the end of the quarter to improve operational performance.

As part of a broader effort to unlock additional value from the Xavantina Operations, the Company commenced a value-creation initiative in Q4 2024 aimed at capturing value from stockpiled gold concentrates produced in small but high-grade quantities since processing operations began in 2012. During Q3 2025, these efforts culminated in an initial sales agreement, with shipments commencing in October. The Company expects to sell between 10,000 to 15,000 tonnes at an approximate gold grade of 30 to 40 grams per tonne during Q4 2025, and to complete sampling, shipments, and sales of the remaining volume over the next 12 to 18 months, which is expected to significantly bolster gold sales from the Xavantina Operations.

Full-year production is expected to be toward the lower end of the 40,000 to 50,000-ounce guidance range, with production projected to be highest in Q4 2025 due to higher mined and processed tonnage following the transition to mechanized mining. Full-year C1 cash cost(1) guidance of $850 to

$1,000 per ounce of gold produced and AISC(1) guidance of $1,800 to $2,000 per ounce are maintained. In addition, the Company also expects to sell 10,000 to 15,000 tonnes of gold concentrate at an approximate gold grade of 30 to 40 grams per tonne during Q4 2025.

1. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

‌2025 GUIDANCE

Consolidated copper production guidance for 2025 is maintained with overall production expected at the low end of the 67,500 to 80,000 tonne range. Production in Q4 2025 is expected to improve due to increased plant throughput at both the Caraíba and Tucumã Operations, with Tucumã also expected to benefit from mine sequencing in higher grade blocks of the open pit. At the Caraíba Operations C1 cash costs(1) are expected to be in the lower half of the guidance range of $2.15 to

$2.35 per pound of copper produced, while at Tucumã C1 cash costs(1) are now expected to be in the

$1.35 to $1.55 per pound of copper range from $1.10 to $1.30 per pound of copper previously reflecting higher-than-expected maintenance and freight costs experienced in Q3 2025.

At the Xavantina Operations, gold production is expected to be toward the lower end of the 40,000 to 50,000-ounce guidance range, with production projected to be highest in Q4 2025 due to higher mined and processed tonnage following the transition to mechanized mining. Full-year C1 cash cost(1) guidance of $850 to $1,000 per ounce of gold produced and AISC(1) guidance of $1,800 to $2,000 per ounce are maintained. In addition, the Company also expects to sell 10,000 to 15,000 tonnes of gold concentrate at an approximate gold grade of 30 to 40 grams per tonne during Q4 2025.

2025 Production and Cost Guidance
		Previous Guidance		Current Guidance
Copper Production (tonnes)
Caraíba Operations		37,500 - 42,500		37,500 - 42,500
Tucumã Operation		30,000 - 37,500		30,000 - 37,500
Total Copper		67,500 - 80,000		67,500 - 80,000
Copper C1 Cash Cost(1) Guidance
Caraíba Operations		$2.15 - $2.35		$2.15 - $2.35
Tucumã Operation		$1.10 - $1.30		$1.35 - $1.55
The Xavantina Operations
Au Production (ounces)		40,000 - 50,000		40,000 - 50,000
Gold C1 Cash Cost(1) Guidance		$850 - $1,000		$850 - $1,000
Gold AISC(1) Guidance		$1,800 - $2,000		$1,800 - $2,000

Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company's SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risk factors.

1. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

2025 Capital Expenditure Guidance

Capital expenditure guidance remains unchanged at a range of $230 to $270 million, excluding capitalized ramp-up costs prior to the declaration of commercial production at the Tucumã Operation.

Figures presented in the table below are in USD millions.

Caraíba Operations	$165 - $180
Tucumã Operation(1)	$30 - $40
Xavantina Operations	$25 - $35
Furnas Copper-Gold Project and Other Exploration	$10 - $15
Total	$230 - $270

Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company's SEDAR+ and EDGAR filings, including the most recent AIF, for a detailed summary of risk factors.

1. Excludes capitalized ramp-up costs prior to the declaration of commercial production at the Tucumã Operation.

REVIEW OF FINANCIAL RESULTS

‌The following table provides a summary of the financial results of the Company for Q3 2025 and Q3 2024. Tabular amounts are in thousands of US dollars, except share and per share amounts.

	Notes			2025		2024
Revenue	1		Σ	177,092		$ 124,837
Cost of sales	2			(119,695)		(71,128)
Gross profit				57,397		53,709
Expenses
General and administrative				(12,580)		(12,628)
Share-based compensation				(6,742)		(4,859)
Write-down of exploration and evaluation asset				-		(467)
Income before the undernoted				38,075		35,755
Finance income				1,208		781
Finance expense	3			(11,331)		(4,039)
Foreign exchange gain	4			22,055		17,246
Other expenses				(720)		(45)
Income before income taxes				49,287		49,698
Income tax expense
Current				(8,086)		(4,873)
Deferred				(4,688)		(3,458)
	5			(12,774)		(8,331)
Net income for the period			Σ	36,513		$ 41,367
Other comprehensive gain
Foreign currency translation gain	6			22,429		13,757
Comprehensive income			Σ	58,942		$ 55,124
Net income per share attributable to owners of the
Basic			Σ	0.35		$ 0.40
Diluted			Σ	0.35		$ 0.39
Weighted average number of common shares outstanding
Basic			103,621,631			103,239,881
Diluted			104,044,755			103,973,827

Three months ended September 30,

Company

Notes:

1. Revenues from copper sales in Q3 2025 was $149.7 million (Q3 2024 - $90.4 million) on sale of 34.6 million lbs of copper (Q3 2024 - 22.8 million lbs). The increase in copper revenues was primarily attributed to $56.0 million of incremental revenue from the Tucumã Operation and a 2% higher average realized price for sales from the Caraíba Operations against the comparative period.

   Revenues from gold sales in Q3 2025 was $27.4 million (Q3 2024 - $34.4 million) on sale of 8,439 ounces of gold (Q3 2024 - 14,615 ounces) at an average realized price of $3,280 per ounce (Q3 2024 - $2,382 per ounce). The decrease in gold revenues was primarily driven by 42% lower sales volumes due to reduced head grades, partially offset by a 38% higher realized gold price.

2. Cost of sales for Q3 2025 from copper sales was $104.3 million (Q3 2024 - $59.9 million) which primarily comprised of

   $25.9 million (Q3 2024 - $16.7 million) in depreciation and depletion, $23.1 million (Q3 2024 - $9.9 million) in contracted services, $19.5 million (Q3 2024 - $13.2 million) in salaries and benefits, $18.0 million (Q3 2024 - $10.0 million) in materials and consumables, $12.4 million (Q3 2024 - $7.3 million) in maintenance costs, $8.7 million (Q3 2024 - $2.4 million) in sales expenses, and $4.6 million (Q3 2024 - $2.2 million) in utilities, partially offset by $9.8 million increase (Q3 2024 - $1.9 million increase) in inventories. The increase in cost of sales in Q3 2025 compared to

   Q3 2024 was primarily attributed to a $28.9 million increase in cost of sales at the Tucumã Operation upon achieving commercial production on July 1, 2025, as well as a $15.5 million increase at the Caraíba Operations reflecting higher mining and processing cost due to increase in ore mined and processed to offset lower head grade, and $1.0 million incurred on restructuring costs, primarily consisted of severance payments, to optimize headcounts.

   Cost of sales for Q3 2025 from gold sales was $15.4 million (Q3 2024 - $11.2 million) which primarily comprised of

   $5.1 million (Q3 2024 - $4.5 million) in depreciation and depletion, $4.1 million (Q3 2024 - $2.5 million) in salaries and benefits, $2.3 million (Q3 2024 - $1.7 million) in materials and consumables, $2.0 million (Q3 2024 - $2.0 million) in contracted services, $1.3 million (Q3 2024 - $0.7 million) in maintenance costs, and $0.8 million (Q3 2024 - $0.6 million) in utilities, partially offset by $0.6 million increase (Q3 2024 - $1.4 million) in inventories. The increase in cost of sales as compared to Q3 2024 reflects higher mining costs as the operation transitions to mechanized mining, as well as increase in tonnes processed to offset lower head grades.

3. Finance expense for Q3 2025 was $11.3 million (Q3 2024 - $4.0 million) and was primarily comprised of interest on loans and borrowings of $6.7 million (Q3 2024 - nil), accretion of deferred revenue of $2.0 million (Q3 2024 - $0.6 million), other finance expense of $1.0 million (Q3 2024 - $2.4 million), accretion of asset retirement obligations of $0.9 million (Q3 2024 - $0.6 million), and lease interest of $0.7 million (Q3 2024 - $0.5 million). The increase in finance expense from Q3 2024 was primarily due to a decrease in capitalization of borrowing costs after commercial production was achieved at the Tucumã Operation effective July 1, 2025. During the quarter, $4.6 million (Q3 2024 - $9.6 million) in borrowing costs were capitalized to projects in progress primarily related to Deepening project.

4. Foreign exchange gain for Q3 2025 was $22.1 million (Q3 2024 - $17.2 million gain). This amount is primarily comprised of $17.0 million (Q3 2024 - $11.0 million gain) in foreign exchange gain on USD denominated debt at MCSA for which the functional currency is the BRL, $4.0 million (Q3 2024 - $9.8 million gain) of unrealized foreign exchange gain on derivative contracts, and $2.0 million (Q3 2024 - $3.4 million loss) of realized foreign exchange gain on derivative contracts, partially offset by other foreign exchange losses of $1.0 million (Q3 2024 - $0.2 million losses). The

   unrealized foreign exchange gain on USD denominated debt and on derivative contracts was a result of a 3% strengthening of the BRL against the USD during the period.

5. In Q3 2025, the Company recognized $12.8 million in income tax expense (Q3 2024 $8.3 million expense). The increase in income tax expense was primarily a result of an increase in income before taxes as compared to the same quarter of the prior year.

6. The foreign currency translation gain is a result of a fluctuation of the BRL against the USD during Q3 2025, which strengthened from approximately 5.46 BRL per US dollar at the beginning of Q3 2025 to approximately 5.32 BRL per US dollar by the end of the quarter, when translating the net assets of the Company's Brazilian subsidiaries to USD for presentation in the Company's condensed consolidated interim financial statements.

‌The following table provides a summary of the financial results of the Company for YTD 2025 and 2024. Tabular amounts are in thousands of US dollars, except share and per share amounts.

	Notes			2025		2024
Revenue	1		Σ	465,690		$ 347,720
Cost of sales	2			(285,485)		(219,542)
Gross profit				180,205		128,178
Expenses
General and administrative				(35,515)		(35,952)
Share-based compensation				(15,671)		(17,479)
Write-down of exploration and evaluation asset	3			-		(11,212)
Income before the undernoted				129,019		63,535
Finance income				3,176		3,610
Finance expense	4			(22,030)		(13,238)
Foreign exchange gain (loss)	5			119,095		(72,204)
Other expenses				(495)		(2,354)
Income (loss) before income taxes				228,765		(20,651)
Income tax (expense) recovery
Current				(21,109)		(11,079)
Deferred				(19,488)		12,868
	6			(40,597)		1,789
Net income (loss) for the period			Σ	188,168		$ (18,862)
Other comprehensive gain (loss)
Foreign currency translation gain (loss)	7			106,051		(85,881)
Comprehensive income (loss)			Σ	294,219		$ (104,743)
Net income (loss) per share attributable to owners of the
Basic			Σ	1.80		$ (0.19)
Diluted			Σ	1.80		$ (0.19)
Weighted average number of common shares outstanding
Basic			103,589,664			103,026,138
Diluted			103,941,295			103,026,138

Nine months ended September 30,

Company

Notes:

1. Revenues from copper sales in YTD 2025 amounted to $397.3 million (YTD 2024 - $243.2 million), reflecting the sale of

   95.2 million lbs of copper compared to 62.8 million lbs in YTD 2024. The increase in revenues was primarily attributable to ramp-up of production from the Tucumã Operations, which had $155.0 million in revenue compared to $3.1 million in the prior year, as well as realizing higher copper prices at both operations compared to the prior year.

   Revenues from gold sales in YTD 2025 was $68.4 million (YTD 2024 - $104.5 million), reflecting the sale of 22,549 ounces of gold at a realized price of $3,070 per ounce, compared to 49,089 ounces of gold sold at a realized price of

   $2,156 per ounce in YTD 2024. The decrease in revenues was driven by lower sales volume, partially offset by higher gold prices compared to YTD 2024.

2. Cost of sales for YTD 2025 from copper sales was $245.5 million (YTD 2024 - $181.2 million) which primarily consisted of $60.0 million (YTD 2024 - $50.1 million) in depreciation and depletion, $52.5 million (YTD 2024 - $39.5 million) in salaries and benefits, $42.5 million (YTD 2024 - $26.0 million) in contracted services, $39.4 million (YTD 2024 - $28.7 million) in materials and consumables, $33.6 million (YTD 2024 - $21.6 million) in maintenance costs, $16.1 million (YTD 2024 - $6.1 million) in sales expenses, and $11.7 million (YTD 2024 - $7.9 million) in utilities, partially offset by

   $12.8 million increase (YTD 2024 - $0.6 million decrease) in inventories. The increase in cost of sales was primarily attributable to a $50.4 million increase in cost of sales at the Tucumã Operation upon achieving commercial production on July 1, 2025, as well as a $13.9 million increase at the Caraíba Operations reflecting higher mining and processing

   cost due to increase in ore mined and processed to offset lower head grade.

   Cost of sales for YTD 2025 from gold sales was $40.0 million (YTD 2024- $38.4 million) which primarily comprised of

   $14.1 million (YTD 2024 - $15.8 million) in depreciation and depletion, $10.0 million (YTD 2024 - $7.6 million) in salaries and benefits, $6.2 million (YTD 2024 - $5.7 million) in contracted services, $5.7 million (YTD 2024 - $5.3 million) in materials and consumables, $2.8 million (YTD 2024 - $1.9 million) in maintenance costs, and $1.9 million (YTD 2024 - $1.8 million) in utilities, partially offset by $2.0 million increase (YTD 2024 - $1.3 million increase) in inventories. The increase in cost of sales reflects higher mining costs as the operation transitions to mechanized mining, as well as increase in tonnes processed to offset lower head grades.

3. In YTD 2024, the Company recognized a write-down in exploration and evaluation assets of $11.2 million, primarily related to the termination of the Fides option agreement.

4. Finance expense for YTD 2025 was $22.0 million (YTD 2024 - $13.2 million) and was primarily comprised of interest on loans and borrowings of $6.7 million (YTD 2024 - nil), other finance expense of $6.1 million (YTD 2024 - $8.2 million) related to expected credit loss provision on a note receivable, accretion of deferred revenue of $4.7 million (YTD 2024 -

   $1.9 million), accretion of the asset retirement obligations of $2.6 million (YTD 2024 - $1.8 million), and lease interest of

   $1.9 million (YTD 2024 - $1.4 million). During YTD 2025, $27.0 million (YTD 2024 - $26.1 million) in interest was capitalized to projects in progress. The increase in finance expense was primarily attributable to a decrease in capitalized borrowing costs upon the Tucumã Operation achieving commercial production effective July 1, 2025. The increase in finance expense was also due to higher accretion of deferred revenue driven by the extension of the Original Xavantina Stream at the end of Q1 2025.

5. Foreign exchange gain for YTD 2025 was $119.1 million (YTD 2024 - $72.2 million loss). This amount was primarily comprised of a foreign exchange gain of $95.1 million (YTD 2024 - $56.7 million loss) on USD denominated debt in MCSA, for which the functional currency is the BRL, and a foreign exchange gain on unrealized derivative contracts of

   $27.4 million (YTD 2024 - $15.6 million loss), and a realized foreign exchange gain on derivative contracts of nominal amount (YTD 2024 - $2.3 million loss), partially offset by other foreign exchange losses of $3.5 million (YTD 2024 -

   $2.4 million gains). The fluctuation in foreign exchange gains/losses were primarily a result of increased volatility of the USD/BRL foreign exchange rates, where the BRL strengthened 16.4% against the USD during YTD 2025.

6. In YTD 2025, the Company recognized an $40.6 million income tax expense (YTD 2024 - $1.8 million recovery), The change was primarily a result of a net income before income taxes in the current period compared with a net loss before income taxes in the comparative period.

7. The foreign currency translation loss is a result of fluctuations of the BRL against the USD during YTD 2025, which strengthened from approximately 5.74 BRL per US dollar at the beginning of 2025 to approximately 5.32 BRL per US dollar by the end of the quarter, when translating the net assets of the Company's Brazilian subsidiaries to USD for presentation in the Company's condensed consolidated interim financial statements.

‌SUMMARY OF QUARTERLY RESULTS

The following table presents selected financial information for each of the most recent eight quarters. Tabular amounts are in millions of US Dollars, except share and per share amounts.

Sep. 30,(1)	Jun. 30,(2)	Mar. 31,(3)	Dec. 31,(4)	Sep. 30,(5)	Jun. 30,(6)	Mar. 31,(7)	Dec. 31,(8)
2025	2025	2025	2024	2024	2024	2024	2023

Selected Financial Information

Revenue		Σ	177.1		$ 163.5			$ 125.1		$ 122.5		$ 124.8			$ 117.1			$ 105.8			$ 116.4
Cost of sales		Σ	(119.7)		$ (96.2)			$ (69.6)		$ (70.2)		$ (71.1)			$ (73.8)			$ (74.6)			$ (74.6)
Gross profit		Σ	57.4		$ 67.3			$ 55.5		$ 52.4		$ 53.7			$ 43.3			$ 31.2			$ 41.9
Net income (loss)
for period	Σ		36.5	$		71.0	$		80.6	$	(48.9)	$	41.4	$		(53.4)	$		(6.8)	$		37.1
Income (loss) per
share
attributable to
owners of the
Company
- Basic		Σ	0.35		$ 0.68			$ 0.77		$ (0.47)		$ 0.40			$ (0.52)			$ (0.07)			$ 0.37
- Diluted		Σ	0.35		$ 0.68			$ 0.77		$ (0.47)		$ 0.39			$ (0.52)			$ (0.07)			$ 0.37
Weighted average
number of
common shares
outstanding
- Basic		103,621,631			103,582,082			103,564,654		103,345,064		103,239,881			103,082,363			102,769,444			98,099,791
- Diluted		104,044,755			103,905,561			103,904,737		103,345,064		103,973,827			103,082,363			102,769,444			98,482,755

Notes:

1. During Q3 2025, the Company recognized net income of $36.5 million compared to net income of $71.0 million in the preceding quarter. The decrease in net income compared to the prior quarter was primarily attributable to a $16.5 million lower foreign exchange gain, $9.9 million lower gross profit and $5.4 million higher finance expense from the cessation of capitalization of borrowing costs at the Tucumã Operation following the declaration of commercial production on July 1, 2025.

2. During Q2 2025, the Company recognized net income of $71.0 million compared to net income of $80.6 million in the preceding quarter. The decrease in net income was primarily attributable to a lower foreign exchange gain of

   $38.6 million in the current quarter compared to $58.4 million in the preceding quarter, partially offset by a higher gross profit of $67.4 million in the current quarter compared to $55.5 million in the preceding quarter.

3. During Q1 2025, the Company recognized net income of $80.6 million compared to net loss of $48.9 million in the preceding quarter. The increase in net income was primarily attributable to foreign exchange gains of $58.4 million compared to foreign exchange losses of $92.8 million in the preceding quarter, partially offset by an income tax expense of $14.7 million compared to an income tax recovery of $5.9 million in the preceding quarter.

4. During Q4 2024, the Company recognized net loss of $48.9 million compared to net income of $41.4 million in the preceding quarter. The decrease in net income was primarily attributable to foreign exchange losses of $92.8 million compared to foreign exchange gains of $17.2 million in the preceding quarter, partially offset by income tax recovery of

   $5.9 million compared to income tax expense of $8.3 million in the preceding quarter.

5. During Q3 2024, the Company recognized net income of $41.4 million compared to net loss of $53.4 million in the preceding quarter. The increase in net income was primarily attributable to higher revenues, as well as foreign exchange

   gains of $17.2 million compared to foreign exchange losses of $70.5 million in the preceding quarter, as well as a

   $10.7 million write-down in exploration and evaluation assets recognized in the preceding quarter.

6. During Q2 2024, the Company recognized net loss of $53.4 million compared to net loss of $6.8 million in the preceding quarter. The increase in loss was primarily attributable to foreign exchange losses of $70.5 million compared to $19.0 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods. In addition, during the quarter, the Company terminated the Fides option agreement, resulting in a write-down in exploration and evaluation assets of $10.7 million.

7. During Q1 2024, the Company recognized net loss of $6.8 million compared to net income of $37.1 million in the preceding quarter. The decrease in income was primarily attributable to foreign exchange losses of $19.0 million compared to foreign exchange gains of $24.9 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods.

8. During Q4 2023, the Company recognized net income of $37.1 million compared to $2.8 million in the preceding quarter. The increase was primarily attributable to foreign exchange gains of $24.9 million compared to foreign exchange losses of $13.9 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods.

   ‌LIQUIDITY, CAPITAL RESOURCES, AND CONTRACTUAL OBLIGATIONS Liquidity

   As at September 30, 2025, the Company had cash and cash equivalents of $66.3 million and available liquidity of $111.3 million. Cash and cash equivalents were primarily comprised of cash held with reputable financial institutions and are invested in highly liquid short-term investments with maturities of three months or less. The funds are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet its obligations.

   Cash and cash equivalents increased by $15.9 million from December 31, 2024. The Company's cash flows from operating, investing, and financing activities for the nine months ended September 30, 2025, are summarized as follows:

   • Cash from operating activities of $266.0 million, primarily consists of:

     • $223.0 million of adjusted EBITDA (see Non-IFRS Measures); and

     • $50.0 million of advance from the extension of the Original Xavantina Stream; net of:

     • $8.6 million of amortization of non-cash deferred revenues;

     • $1.6 million of income taxes paid;

     • $1.4 million of net change in non-cash working capital items;

     • $0.5 million of derivative contract settlements; and

     • $1.6 million of income taxes paid.

       Partially offset by:

   • Cash used in investing activities of $205.4 million, including:

     • $192.4 million of additions to mineral property, plant and equipment; and

     • $15.0 million of additions to exploration and evaluation assets; net of:

     • $2.1 million in proceeds from interest received.

   • Cash used in financing activities of $41.4 million, primarily consists of:

     • $57.4 million of new loans and borrowings; and

     • $2.9 million of proceeds from exercise of stock options; net of:

     • $43.3 million of principal repayments on loans and borrowings;

     • $38.7 million of interest paid on loans and borrowings; and

     • $13.1 million of lease payments.

As at September 30, 2025, the Company had working capital deficit of $45.2 million.

Capital Resources

The Company's primary sources of capital are comprised of cash from operations, and cash and cash equivalents on hand. The Company continuously monitors its liquidity position and capital structure and, based on changes in operations and economic conditions, may adjust such structure by issuing new common shares or new debt as necessary. Taking into consideration expected cash flow from existing operations and available liquidity, management believes that the Company has sufficient capital to fund its planned operations and activities, and other initiatives, for the foreseeable future.

At September 30, 2025, the Company had available liquidity of $111.3 million, including $66.3 million in cash and cash equivalents and $45.0 million of undrawn availability under its Senior Credit Facility.

In January 2025, the Company amended its Senior Credit Facility to increase the limit from

$150.0 million to $200.0 million and to extend the maturity from December 2026 to December 2028. The interest rate and commitment fee on the Credit Facility were reduced to sliding scales of SOFR plus 2.00% to 4.25%, and 0.45% to 0.96%, respectively. Additionally, the total leverage ratio was replaced with net leverage ratio for purposes of determining financial covenants and interest rates.

In May 2024, to support the commencement of production and associated working capital needs at the Tucumã Operation, the Company entered into a $50.0 million non-priced copper prepayment facility, structured by the Bank of Montreal and with participation by CIBC Capital Markets. This facility is being repaid over 27 equal monthly installments, beginning in October 2024, through the delivery of 272 tonnes of copper each month. Each monthly delivery's value is being 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. The copper to be delivered by the Company will be in the form of LME Copper Warrants.

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.

In relation to its loans and borrowings, the Company is required to comply with certain financial covenants. As of the date of the condensed consolidated interim financial statements, the Company is in compliance with these covenants. The loan agreements also contain covenants that could restrict the ability of the Company and its subsidiaries, including MCSA, Ero Gold, and NX Gold, to, among other things, incur additional indebtedness needed to fund its respective operations, pay dividends or make other distributions, make investments, create liens, sell or transfer assets or enter into transactions with affiliates. There are no other restrictions or externally imposed capital requirements of the Company.

On March 28, 2025, the Company extended the terms of the Original Xavantina Stream with Royal Gold to expand the area of influence from which production is subjected to the arrangement to include additional tenements acquired by the Company since the Original Xavantina Stream was completed, and extend the gold delivery threshold milestone from 93,000 ounces of gold to 160,000 ounces of gold, before decreasing to 10% of gold produced over the remaining life of the mine. In exchange, the Company received additional upfront cash consideration of $50.0 million. The delivery of additional ounces under the amended stream is expected to commence in 2028.

Contractual Obligations and Commitments

The Company has precious metals purchase agreements with a wholly-owned subsidiary of Royal Gold, Inc., whereby the Company is obligated to sell a portion of its gold production from the Xavantina Operations at contract prices.

Refer to the "Liquidity Risk" section for further information on the Company's contractual obligations and commitments.

‌MANAGEMENT OF RISKS AND UNCERTAINTIES

The Company thoroughly examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk,

currency risk, commodity price risk and interest rate risk. Where material, these risks are reviewed and monitored by the Board.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company's receivables from customers. The carrying amount of the financial assets below represents the maximum credit risk exposure as at September 30, 2025 and December 31, 2024:

	September 30,	December 31,
	2025	2024
Cash and cash equivalents	66,257	$ 50,402
Accounts receivable	11,132	18,399
Derivatives	9,578	-
Note receivable	13,488	12,009
Deposits and other assets	5,679	4,961

Σ 106,134 Σ 85,771

The Company invests cash and cash equivalents with financial institutions that are financially sound based on their credit rating.

The Company's exposure to credit risk associated with accounts receivable is influenced mainly by the individual characteristics of each customer.

In 2022, one of the Company's customers in Brazil, Paranapanema S/A ("PMA"), filed for bankruptcy protection. As a preferred supplier to PMA, the Company had a note receivable arrangement with PMA, which was excluded from the judicial recovery process and provides the Company with certain judicial guarantees. According to the note receivable arrangement, repayment was structured over 24 monthly installments beginning in March 2024, with an annual interest rate equivalent to Brazil's CDI rate of approximately 11.65%.

At September 30, 2025, PMA continued to be in default of the agreement and the gross amount of accounts and note receivable from PMA was $25.0 million (December 31, 2024 - $20.7 million). Accordingly, the note receivable is considered credit impaired, and the Company recorded a credit loss provision and present value discount of $15.4 million (December 31, 2024 - $13.1 million). The carrying value of the PMA note receivable at September 30, 2025 was $9.5 million (December 31, 2024 - $7.6 million.), of which $5.3 million (December 31, 2024 - $3.9 million) was included in other current assets.

In the three and nine months ended September 30, 2025, the Company recognized credit loss provisions of nil and $0.2 million (provision of $1.8 million and $6.3 million for the three and nine months ended September 30, 2024) through its profit or loss.

Liquidity risk

Liquidity risk is the risk associated with the difficulties that the Company may have meeting the obligations associated with financial liabilities that are settled with cash payments or with another financial asset. The Company's approach to liquidity management is to ensure as much as possible that sufficient liquidity exists to meet their maturity obligations on the expiration dates, under normal and stressful conditions, without causing unacceptable losses or with risk of undermining the normal operation of the Company.

The table below shows the Company's maturity of non-derivative financial liabilities on September 30, 2025:

Non-derivative financial liabilities	Carrying value		Contractual cash flows		Up to 12 months		1 - 2 years		3 - 5 years		More than 5 years
Loans and borrowings (including interest)	$ 611,736		$ 771,569		$ 86,052		$ 86,948		$ 598,569		$ -
Accounts payable and accrued liabilities	141,941		142,457		142,457		-		-		-
Other non-current liabilities	13,435	25,579		-		24,486		707		386
Leases	26,645	29,479		19,745		8,703		1,011		19

Total Σ 793,757 Σ 969,084 Σ 248,254 Σ 120,137 Σ 600,287 Σ 405

As at September 30, 2025, the Company has capital commitments, which is net of advances to suppliers, of $45.3 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.

The Company also has a derivative financial asset for foreign exchange collar contracts whose notional amounts and maturity information are disclosed below under foreign exchange currency risk.

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 September 30, 2025 relates to $57.8 million (December 31, 2024 - $60.0 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 September 30, 2025 on $592.4 million of intercompany loan balances (December 31, 2024 - $513.6 million) which have contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at September 30, 2025 by 10% and 20%, would have decreased (increased) pre-tax net loss by $65.0 million and $130.0 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. A summary of the Company's foreign exchange derivatives at September 30, 2025 is summarized as follows:

Purpose

Notional

Amount Denomination

Weighted average floor

Weighted average cap /

forward price Maturities

October 2025 - December

Operational costs $289.5 million USD/BRL 5.59 6.59

Total Σ289.5 million USD/BRL 5.59 6.59

2026

October 2025 - December 2026

The aggregate fair value of the Company's foreign exchange derivatives was a net asset of $9.6 million (December 31, 2024 - liability of $17.9 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 gain of $4.0 million and a gain of $27.4 million for the three and nine months ended September 30, 2025, respectively (a gain of $9.8 million and a loss of $15.6 million for the three and nine months ended September 30, 2024, respectively), and have been recognized in foreign exchange gain (loss).

In addition, during the three and nine months ended September 30, 2025, the Company recognized a realized gain of $2.0 million and nil, respectively (realized loss of $3.4 million and loss of $2.3 million for the three and nine months ended September 30, 2024 respectively), related to the settlement of foreign currency forward collar contracts.

Interest rate risk

The Company is principally exposed to the variation in interest rates on loans and borrowings with variable rates of interest. Management reduces interest rate risk exposure by entering into loans and borrowings with fixed rates of interest or by entering into derivative instruments that fix the ultimate interest rate paid.

The Company is principally exposed to interest rate risk through its Senior Credit Facility and Brazilian Real denominated bank loans. Based on the Company's net exposure at September 30, 2025, a 1% change in the variable rates would not materially impact its pre-tax annual net income.

Price risk

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

At September 30, 2025, the Company had gold collar contracts on 2,500 ounces of gold per month from October 2025 to December 2025. These gold derivative contracts establish an average floor price of $2,200 per ounce of gold and an average cap price of $3,425 per ounce. As of September 30,

2025, the fair value of these contracts was a net liability of $3.9 million (December 31, 2024 - liability of $0.1 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 and nine months ended September 30, 2025, the Company recognized an unrealized loss of $1.6 million and loss of $3.1 million (unrealized gain of $0.4 million and nil for the three and nine months ended September 30, 2024), respectively, in relation to its commodity derivatives in other income or loss.

During the three and nine months ended September 30, 2025, the Company recognized a loss of $0.6 million and $0.6 million ($0.8 million and $2.6 million realized loss for three and nine months ended September 30, 2024), respectively, in relation to its commodity derivatives in other income or loss.

At September 30, 2025, the Company had provisionally priced sales that are exposed to commodity price changes. Based on the Company's net exposure at September 30, 2025, a 10% change in the price of copper would have changed pre-tax net income (loss) by $3.9 million.

For a discussion of additional risks applicable to the Company and its business and operations, including risks related to the Company's foreign operations, the environment and legal proceedings, see "Risk Factors" in the Company's AIF.

‌OTHER FINANCIAL INFORMATION

Off-Balance Sheet Arrangements

As at September 30, 2025, the Company had no material off-balance sheet arrangements.

Outstanding Share Data

As of November 4, 2025, the Company had 103,890,254 common shares issued and outstanding.

‌ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES Critical Accounting Judgments and Estimates

The preparation of condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions about future events that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results may differ from these estimates.

The Company's material accounting policies and accounting estimates are contained in the Company's consolidated financial statements for the year ended December 31, 2024 and condensed consolidated interim financial statements for the three and nine months ended September 30, 2025. Judgements have been made in the determination of the functional currency of the Company and its subsidiaries,

assessment of the probability of cash outflow related to legal claims and contingent liabilities, and commencement of commercial production. Certain of the Company's accounting policies, such as derivative instruments, deferred revenue, carrying amounts of mineral properties, provision for mine closure and reclamation costs, income tax including tax uncertainties, expected credit losses involve critical accounting estimates. Certain of these estimates are dependent on mineral reserves and resource information. Changes in mineral reserves and resources could impact depreciation and depletion rates, asset carrying amounts and the timing of mine closure and reclamation costs. The Company determines its mineral reserves and resources based on information compiled by competent individuals. Information regarding mineral reserves and resources is used in the calculation of depreciation, depletion and determination, when applicable, of the recoverable amount of CGUs, and for forecasting the timing of reclamation and closure cost expenditures. There are numerous uncertainties inherent in the determination of mineral reserves, and assumptions that are valid at the time of determination may change significantly when new information becomes available. Changes in the methodology, forecasted prices of commodities, exchange rates, production costs or recovery rates may change the economic status of mineral reserves and may, ultimately, result in changes in the mineral reserves.

Management continuously reviews its estimates, judgments and assumptions on an ongoing basis using the most current information available. Revisions to estimates are recognized prospectively.

‌CAPITAL EXPENDITURES

The following table presents capital expenditures at the Company's operations on an accrual basis and are net of any sales and value-added taxes.

			2025 - Q3	2025 - Q2	2025 - Q1		2025 - YTD
Caraíba Operations
Growth		Σ	26,660	$ 17,560	$ 11,149	Σ	55,369
Sustaining			28,327	27,135	21,436		76,898
Exploration			2,605	3,325	2,434		8,364
Deposit on Projects			(9,237)	(30)	(615)		(9,882)
Total, Caraíba Operations		Σ	48,355	$ 47,990	$ 34,404	Σ	130,749
Tucumã Project
Growth			90	326	1,160		1,576
Sustaining			6,352	3,087	1,597		11,036
Capitalized ramp-up costs			-	14,016	12,005		26,021
Exploration			112	346	904		1,362
Deposit on Projects			(430)	324	(214)		(320)
Total, Tucumã Project Σ			6,124	$ 18,099	$ 15,452	Σ	39,675
Xavantina Operations
Sustaining			7,175		4,421	3,904		15,500
Exploration			1,437		1,221	845		3,503
Deposit on Projects			(40)		120	69		149
Total, Xavantina Operations		Σ	8,572 $		5,762	$ 4,818	Σ	19,152
Corporate and Other
Growth			-		456	293		749
Sustaining			57		5	-		62
Exploration			6,540		4,764	2,642		13,946
Deposit on Projects			95		8	(8)		95
Total, Corporate and Other		Σ	6,692 $		5,233	$ 2,927	Σ	14,852
Consolidated
Growth			26,750		18,342	12,602		57,694
Sustaining			41,911		34,648	26,937		103,496
Capitalized ramp-up costs			-		14,016	12,005		26,021
Exploration			10,694		9,656	6,825		27,175
Deposit on Projects			(9,612)		422	(768)		(9,958)
Total, Consolidated Capital Expenditures		Σ	69,743 $		77,084	$ 57,601	Σ	204,428

		2025 - Q3		2025 - Q2		2025 - Q1		2025 - YTD
Total, Consolidated Capital Expenditures		Σ	69,743 $	77,084 $		57,601 Σ		204,428
Add (less):
Additions to exploration and evaluation assets			(6,748)	(5,189)		(3,109)		(15,046)
Additions to right-of-use assets			6,137	6,781		7,175		20,093
Capitalized depreciation			100	114		94		308
Total, additions per Mineral Properties, Plant and Equipment note	Σ	69,232	$	78,790	$	61,761	Σ	209,783

‌ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES

The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, realized copper price, gold C1 cash cost, gold AISC, realized gold price, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The tables below provide reconciliations of these non-IFRS measures to the most directly comparable IFRS measures as contained in the Company's financial statements.

Unless otherwise noted, the non-IFRS measures presented below have been calculated on a consistent basis for the periods presented.

Copper C1 Cash Cost and Copper C1 Cash Cost including Foreign Exchange Hedges

Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges are non-IFRS performance measures used by the Company to manage and evaluate the performance of its copper mining operations.

Copper C1 cash cost is calculated as C1 cash costs divided by total pounds of copper produced during the period. C1 cash costs comprise the total cost of production, including expenses related to transportation, and treatment and refining charges. These costs are net of by-product credits, incentive payments and certain tax credits associated with sales invoiced to the Company's Brazilian customer.

Copper C1 cash cost including foreign exchange hedges is calculated as C1 cash costs, adjusted for realized gains or losses from its operational foreign exchange hedges, divided by total pounds of copper produced during the period. Although the Company does not apply hedge accounting in its consolidated financial statements and recognizes these contracts at fair value through profit or loss, the Company believes it appropriate to present cash costs including the impact of realized gains and losses as these contracts were entered into to mitigate the impact of changes in exchange rates.

While copper C1 cash cost is widely reported in the mining industry as a performance benchmark, it does not have a standardized meaning and is disclosed as a supplement to IFRS measures.

The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.

The Caraíba Operations

Reconciliation:		2025 - Q3			2025 - Q2		2024 - Q3		2025 - YTD			2024 - YTD
Cost of production		Σ 50,261			$ 46,890		$ 40,149		Σ 132,870			$ 124,321
Add (less):
Transportation costs & other		1,731			1,792		1,283		4,845			3,818
Treatment, refining, and other		2,508			2,340		3,170		7,258			12,398
By-product credits		(6,693)			(6,205)		(6,584)		(17,597)			(12,455)
Incentive payments		(1,425)			(1,457)		(1,138)		(4,171)			(3,511)
Net change in inventory		199			(1,611)		(1,220)		1,247			(5,581)
Foreign exchange translation and other		(46)			16		3		(177)			17
C1 cash costs		46,535			41,765		35,663		124,275			119,007
Loss (gain) on foreign exchange
hedges		(1,460)			(217)		1,965		539			1,735
C1 cash costs including foreign
exchange hedges		Σ	45,075	$ 41,548		$ 37,628		Σ		124,814	$ 120,742
		2025 - Q3			2025 - Q2		2024 - Q3		2025 - YTD			2024 - YTD
Costs
Mining		Σ 33,943			$ 31,442		$ 26,529		Σ 91,181			$ 79,666
Processing		8,222			6,549		7,069		21,123			22,173
Indirect		8,555			7,639		5,479		22,310			17,225
Production costs		50,720			45,630		39,077		134,614			119,064
By-product credits		(6,693)			(6,205)		(6,584)		(17,597)			(12,455)
Treatment, refining and other		2,508			2,340		3,170		7,258			12,398
C1 cash costs		46,535			41,765		35,663		124,275			119,007
Loss (gain) on foreign exchange
hedges		(1,460)			(217)		1,965		539			1,735
C1 cash costs including foreign
exchange hedges		Σ	45,075	$ 41,548		$ 37,628		Σ		124,814	$ 120,742

		2025 - Q3			2025 - Q2		2024 - Q3		2025 - YTD		2024 - YTD
Costs per pound
Total copper produced (lbs, 000)		20,030			20,199		21,871		56,448		59,257
Mining		Σ 1.69			$ 1.56		$ 1.22		Σ 1.62		$ 1.34
Processing		Σ 0.41			$ 0.32		$ 0.32		Σ 0.37		$ 0.38
Indirect		Σ 0.43			$ 0.38		$ 0.25		Σ 0.40		$ 0.29
By-product credits		Σ (0.33)			$ (0.31)		$ (0.30)		Σ (0.31)		$ (0.21)
Treatment, refining and other		Σ 0.12			$ 0.12		$ 0.14		Σ 0.12		$ 0.21
Copper C1 cash costs		Σ 2.32			$ 2.07		$ 1.63		Σ 2.20		$ 2.01
Loss (gain) on foreign exchange hedges		Σ	(0.07)	$	(0.01)	$	0.09	Σ	0.01	$	0.03
Copper C1 cash costs including foreign exchange hedges		Σ	2.25	$	2.06	$	1.72	Σ	2.21	$	2.04

The Tucumã Operation(1)

Reconciliation: 2025 - Q3

Cost of production	Σ	18,308
Add (less):
Transportation costs & other		4,880
Treatment, refining, and other		1,486
Incentive payments		(401)
Net change in inventory		2,783
C1 cash costs		27,056
Loss (gain) on foreign exchange hedges		(586)
C1 cash costs including foreign exchange hedges	Σ	26,470
(1) The Company declared commercial production at the Tucumã Operation effective July 1,	2025. Tucumã	Operation

reflects costs from Q3 2025 onward only.

2025 - Q3

Costs

Mining Σ 4,552

Processing 12,455

Indirect 3,698

Production costs 20,705

Treatment, refining and other 6,351

C1 cash costs 27,056

Loss (gain) on foreign exchange hedges (586)

C1 cash costs including foreign exchange hedges Σ 26,470

2025 - Q3

Costs per pound

Total copper produced (lbs, 000) 16,707

Mining Σ 0.27

Processing Σ 0.75

Indirect Σ 0.22

Treatment, refining and other Σ 0.38

Copper C1 cash costs Σ 1.62

Loss (gain) on foreign exchange hedges Σ (0.04)

Copper C1 cash costs including foreign exchange hedges Σ 1.58