Ero Copper : First Quarter Results for the period ended March 31, 2025 (FS)

‌CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024 Table of Contents

‌CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidated Statements of Financial Position 1

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 2

Condensed Consolidated Statements of Cash Flow 3

Condensed Consolidated Statements of Changes in Shareholders' Equity 4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

General

Note 1. Nature of Operations 5

Note 2. Basis of Preparation 5

Note 3. Segment Disclosure 6

Statements of Financial Position

Note 4. Inventories 8

Note 5. Other Current Assets 8

Note 6. Mineral Properties, Plant and Equipment 9

Note 7. Exploration and Evaluation Assets 10

Note 8. Deposits and Other Non-current Assets 10

Note 9. Accounts Payable and Accrued Liabilities 11

Note 10. Loans and Borrowings 11

Note 11. Deferred Revenue 14

Note 12. Other Non-current Liabilities 15

Note 13. Share Capital 15

Statements of Earnings

Note 14. Revenue 19

Note 15. Cost of Sales 19

Note 16. General and Administrative Expenses 20

Note 17. Finance Expense 20

Note 18. Foreign Exchange Gain (Loss) 21

Other Items

Note 19. Financial Instruments 21

Note 20. Supplemental Cash Flow Information 25

Condensed Consolidated Statements of Financial Position

(Unaudited, Amounts in thousands of US Dollars)

	‌ Notes ‌		March 31, 2025		December 31, 2024
ASSETS Current
Cash and cash equivalents		Σ	80,573		$ 50,402
Trade receivable			63,606		18,399
Inventories	4		55,535		42,094
Income tax receivable			1,526		2,284
Other current assets	5		31,052		28,611
Non-Current			232,292		141,790
Mineral properties, plant and equipment	6		1,401,584		1,258,494
Exploration and evaluation assets	7		15,320		11,352
Deferred income tax assets			5,817		16,659
Deposits and other non-current assets	8		30,683		29,733
			1,453,404		1,316,238
Total Assets		Σ	1,685,696		$ 1,458,028
LIABILITIES
Current
Accounts payable and accrued liabilities	9	Σ	136,022		$ 101,886
Current portion of loans and borrowings	10		52,479		45,893
Current portion of deferred revenue	11		13,911		31,712
Income taxes payable			1,932		3,330
Current portion of derivatives	19		3,748		17,980
Current portion of lease liabilities			13,956		10,905
			222,048		211,706
Non-Current
Loans and borrowings	10		589,860		556,296
Deferred revenue	11		97,411		48,231
Provision for rehabilitation and closure costs			23,706		21,891
Lease liabilities			8,433		6,980
Other non-current liabilities	12		25,558		21,850
			744,968		655,248
Total Liabilities			967,016		866,954
SHAREHOLDERS' EQUITY
Share capital	13		286,874		286,548
Equity reserves			(134,266)		(180,472)
Retained earnings			561,282		481,055
Equity attributable to owners of the Company			713,890		587,131
Non-controlling interests			4,790		3,943
			718,680		591,074
Total Liabilities and Equity		Σ	1,685,696		$ 1,458,028
‌Commitments (Notes 7 and 11)
APPROVED ON BEHALF OF THE BOARD:

"Makko DeFilippo" , President, CEO and Director "Jill Angevine" , Director

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited, Amounts in thousands of US Dollars, except share and per share amounts)

‌Three months ended March 31,‌

	Notes			2025		2024
Revenue	14		Σ	125,088		$ 105,793
Cost of sales	15			(69,566)		(74,616)
Gross profit				55,522		31,177
Expenses General and administrative	16			(11,371)		(11,514)
Share-based compensation	13 (e)			(1,173)		(6,545)
Operating Income				42,978		13,118
Finance income				838		1,468
Finance expense	17			(4,723)		(4,634)
Foreign exchange gain (loss)	18			58,400		(18,996)
Other (expenses) income				(2,125)		361
Income (loss) before income taxes				95,368		(8,683)
Current income tax expense				(3,718)		(3,330)
Deferred income tax (expense) recovery				(11,023)		5,183
Income tax (expense) recovery				(14,741)		1,853
Net income (loss) for the period			Σ	80,627		$ (6,830)
Other comprehensive gain (loss) Foreign currency translation gain (loss)				45,775		(24,680)
Comprehensive income (loss)			Σ	126,402		$ (31,510)
Net income (loss) attributable to: Owners of the Company				80,227		(7,141)
Non-controlling interests				400		311
			Σ	80,627		$ (6,830)
Comprehensive income (loss) attributable to: Owners of the Company				125,555		(31,621)
Non-controlling interests				847		111
			Σ	126,402		$ (31,510)
Net income (loss) per share attributable to owners of the Company Basic	13 (f)		Σ	0.77		$ (0.07)
Diluted	13 (f)		Σ	0.77		$ (0.07)
Weighted average number of common shares outstanding
Basic	13 (f)	103,564,654			102,769,444
Diluted	13 (f)	103,904,737			102,769,444

Condensed Consolidated Statements of Cash Flow

(Unaudited, Amounts in thousands of US Dollars)

‌Three months ended March 31,‌

Cash Flows from Operating Activities	Notes 2025		2024
Net income (loss) for the period Adjustments for: Amortization and depreciation	Σ 80,627 18,620		$ (6,830) 23,296
Income tax expense (recovery)	14,741		(1,853)
Amortization of deferred revenue	14 (2,246)		(5,923)
Share-based compensation	13 (e) 1,173		6,545
Finance income	(838)		(1,468)
Finance expenses	17 4,723		4,634
Foreign exchange (gain) loss	(57,464)		19,498
Other	2,192		(9)
Changes in non-cash working capital items	20	(42,766)		(20,574)
		18,762		17,316
Advance from Xavantina Gold Stream	11	50,000		1,105
Derivative contract settlements		(2,216)		2,126
Provision settlements		(742)		(688)
Income taxes paid		(364)		(2,627)
		65,440		17,232
Cash Flows used in Investing Activities Additions to mineral properties, plant and equipment		(56,430)		(106,589)
Additions to exploration and evaluation assets		(3,109)		(1,201)
Proceeds from short-term investments and interest received		517		731
		(59,022)		(107,059)
Cash Flows used in Financing Activities Lease liability payments		(4,003)		(3,110)
New loans and borrowings, net of transaction costs	10	55,266		50,135
Loans and borrowings repaid	10	(9,502)		(2,617)
Interest paid on loans and borrowings	10	(16,927)		(13,352)
Other finance expenses paid		(2,050)		(1,286)
Proceeds from exercise of stock options		207		298
		22,991		30,068
Effect of exchange rate changes on cash and cash equivalents		762		(287)
Net increase (decrease) in cash and cash equivalents		30,171		(60,046)
Cash and cash equivalents - beginning of period		50,402		111,738
Cash and cash equivalents - end of period		Σ 80,573		$ 51,692
Supplemental cash flow information (note 20)

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 ‌

Non-

Notes

Number of Contributed Foreign Retained controlling

shares Amount Surplus Exchange Earnings Total interest Total equity

Balance, December 31, 2023	102,747,558	Σ 271,336		Σ		8,497	Σ (25,113)	Σ 549,530		Σ 804,250 Σ				5,081	Σ 809,331
Income (loss) for the period	-	-				-	-	(7,141)		(7,141)				311	(6,830)
Other comprehensive loss for the period -		-		-		(24,480)		-		(24,480) (200)				(24,680)
Total comprehensive income (loss) for the
period	-		-		-		(24,480)		(7,141)		(31,621)		111		(31,510)
Shares issued for: Exercise of options	21,886		423		(125)		-		-		298		-		298
Share-based compensation 13 (e)	-		-		1,354		-		-		1,354		-		1,354
Dividends to non-controlling interest -		-		-		-		-		-		(50) (50)
Balance, March 31, 2024 102,769,444		Σ 271,759		Σ 9,726		Σ (49,593)		Σ 542,389		Σ 774,281		Σ 5,142 Σ 779,423
Balance, December 31, 2024	103,555,211	Σ 286,548		Σ		8,181	Σ (188,653) Σ 481,055			Σ 587,131		Σ		3,943	Σ 591,074
Income for the period		-	-	-		-		80,227		80,227		400		80,627
Other comprehensive income for the period		-	-	-		45,328		-		45,328		447		45,775
Total comprehensive income for the period		-	-	-		45,328		80,227		125,555		847		126,402
Shares issued for:
Exercise of options		16,296	316	(109)		-		-		207		-		207
Settlement of restricted share units		559	10	(22)		-		-		(12)		-		(12)
Share-based compensation	13 (e)	-	-	1,009		-		-		1,009		-		1,009
Balance, March 31, 2025		103,572,066	Σ 286,874	Σ 9,059		Σ (143,325)		Σ 561,282		Σ 713,890		Σ 4,790		Σ 718,680

(Unaudited, 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 Participaçoes Ltda. The Company also currently owns a 97.6% ownership interest in NX Gold S.A. ("NX Gold") indirectly through its wholly-owned subsidiary, Ero Gold Corp. ("Ero Gold").

   MCSA is a Brazilian copper company which holds a 100% interest in the Caraíba Operations, located in the State of Bahia, and the Tucumã Operation, located in the southeastern part of the State of Pará. MCSA's predominant activity is the production and sale of copper concentrates, with gold and silver produced and sold as by-products.

   NX Gold is a Brazilian gold mining company which holds a 100% interest in the Xavantina Operations and is focused on the production and sale of gold 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

   1. ‌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, 2024.

      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, 2024, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

      These condensed consolidated interim financial statements were authorized for issue by the Board of Directors of the Company (the "Board") on May 5, 2025.

   2. ‌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, 2024.

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.

   For the three months ended March 31, 2025, 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:

   ‌Three months ended March 31, 2025

   Caraíba (Brazil)

   Tucumã (Brazil)

   Xavantina (Brazil)

   Corporate and

   Other Consolidated

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

   (1) Capital expenditures include additions to mineral properties, plant and equipment and additions to exploration and evaluation asset, net of non-cash additions such as change in estimates to mine closure costs, capitalized depreciation expense, capitalized borrowing costs, and additions of right-of-use assets.

   During the three months ended March 31, 2025, the Company had five significant customers (March 31, 2024 -three), including three copper customer (March 31, 2024 - one) and two gold customers (March 31, 2024 - two).

   ‌Three months ended March 31,	Caraíba	Tucumã		Xavantina	Corporate and
   2024	(Brazil)	(Brazil)		(Brazil)	Other Consolidated
   Revenue	$ 73,856		$ -	$ 31,937		$ -		Σ	105,793
   Cost of production	(42,227)		-	(7,255)		-			(49,482)
   Depreciation and depletion	(17,561)		-	(5,283)		-			(22,844)
   Sales expense	(1,818)		-	(472)		-			(2,290)
   Cost of sales	(61,606)		-	(13,010)		-			(74,616)
   Gross profit	12,250		-	18,927		-			31,177
   Expenses General and administrative	(6,354)		-	(1,601)		(3,559)			(11,514)
   Share-based compensation	-		-	-		(6,545)			(6,545)
   Operating income (loss)	$ 5,896		$ -	$ 17,326		$ (10,104)		Σ	13,118
   Capital expenditures(1)	41,604		50,039	4,406		1,124			97,173
   Assets Current	$ 76,717		$ 4,956	$ 21,654		$ 26,633			129,960
   Non-current	887,555		372,997	92,727		17,296			1,370,575
   Total Assets	$ 964,272		$ 377,953	$ 114,381		$ 43,929		Σ	1,500,535
   Total Liabilities	$ 120,940		$ 34,502	$ 90,991		$ 474,679			721,112

   (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.

4. ‌Inventories‌

   December 31,

   		March 31, 2025		2024
   Supplies and consumables	Σ	33,889		$ 28,980
   Stockpiles		6,610		5,024
   Work in progress		4,334		3,049
   Finished goods		10,702		5,041

   Σ 55,535 $ 42,094

5. ‌Other Current Assets‌

   December 31,

   		March 31, 2025		2024
   Advances to suppliers	Σ	3,176		$ 3,157
   Prepaid expenses and other		9,612		5,879
   Derivatives (Note 19)		271		-
   Note receivable (Note 19)		4,520		4,678
   Value added taxes recoverable		13,473		14,897
   	Σ	31,052		$ 28,611

   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, 2024	36,593			294,944		643,758		501,057		26,972		12,700 21,336				49,995		1,587,355
   Additions	99		2,858		21,965		27,274		493		1,897		-		7,175		61,761
   Capitalized borrowing costs	-		-		-		11,017		-		-		-		-		11,017
   Disposals	-		(20)		-		-		-		-		-		(180)		(200)
   Transfers	-		811		37		1,796		7		(2,651)		-		-		-
   Foreign exchange	2,857		23,075		50,167		32,420		1,980		965		1,664		3,909		117,037
   Balance, March 31, 2025	Σ 39,549		Σ 321,668		Σ 715,927		Σ 573,564		Σ 29,452		Σ 12,911 Σ 23,000				Σ 60,899		Σ 1,776,970
   Accumulated depreciation:
   Balance, December 31, 2024	(7,219)		(73,675)		(199,911)		-		(9,210)		- (5,574)				(33,272)		(328,861)
   Depreciation expense		(635)		(6,525)		(8,749)		-		(521)		-		(221)		(4,191)		(20,842)
   Disposals		-		20		-		-		-		-		-		126		146
   Foreign exchange		(574)		(5,862)		(15,695)		-		(646)		-		(439)		(2,613)		(25,829)
   Balance, March 31, 2025	Σ	(8,428)	Σ	(86,042)	Σ	(224,355)	Σ	-	Σ	(10,377)	Σ	-	Σ	(6,234)	Σ	(39,950)	Σ	(375,386)
   Net book value, December 31, 2024	$	29,374	$	221,269	$	443,847	$	501,057	$	17,762	$	12,700	$	15,762	$	16,723	$	1,258,494
   Net book value, March 31, 2025	Σ	31,121	Σ	235,626	Σ	491,572	Σ	573,564	Σ	19,075	Σ	12,911	Σ	16,766	Σ	20,949	Σ	1,401,584

   (1) Mineral properties include $65.7 million (2024 - $57.9 million) of costs on expansion of near-mine resource potential which are not currently being depreciated.

   Notes to Financial Statements | Page 9

7. ‌Exploration and Evaluation Assets‌

   As at March 31, 2025, the Company had $15.3 million (2024 - $11.4 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 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 and produce a scoping study within 18 months of signing the Agreement

   • Phase 2: Ero to conduct an additional minimum of 17,000 meters of exploration drilling and produce a pre-feasibility study within 18 months of completing Phase 1

   • Phase 3: Ero to conduct an additional minimum of 45,000 meters of exploration drilling, unless otherwise mutually agreed, and produce a definitive feasibility study ("DFS") within 24 months of completing Phase 2

   Following the completion of a DFS, subject to customary technical review periods, and with Ero positive investment approval, the parties will enter into a joint venture agreement whereby VBM will transfer 60% of the equity interest in the Furnas Project to Ero, and Ero will grant VBM a "free carry" on certain capital expenditures related to development of the Furnas Project.

   Prior to a positive Ero investment decision and the formation of a joint venture, VBM will retain 100% ownership of the Furnas Project with Ero solely responsible for funding the phased exploration and engineering work programs as well as ongoing payments to maintain the property in good standing.

   As at March 31, 2025, exploration and evaluation assets include $8.0 million (2024 - $4.9 million) in expenditures associated with the Furnas Project.

8. ‌Deposits and Other Non-current Assets‌

   March 31, 2025

   December 31,

   2024

   Value added taxes recoverable Σ 19,137 $ 18,336 Note receivable (Note 19) 7,463 7,331

   Deposits and others 4,083 4,066

   Σ 30,683 $ 29,733

9. ‌Accounts Payable and Accrued Liabilities‌

   December 31,

   		March 31, 2025		2024
   Trade suppliers	Σ	53,709		$ 58,067
   Payroll and labour related liabilities		15,069		19,086
   Value added tax, royalty and other tax payable		8,350		8,505
   Cash-settled equity awards (Note 13(b) and (c))		7,917		8,460
   Customer advance		42,615		-
   Provision for rehabilitation and closure costs		7,285		6,766
   Other accrued liabilities		1,077		1,002

   .

10. ‌Loans and Borrowings‌

    Σ 136,022 $ 101,886

    Carrying value, including accrued interest

    Maturity

    Principal to

    March 31,

    December 31,

    Description	Currency	Security	(Months)	Coupon rate	be repaid		2025	2024
    Senior Notes	USD	Unsecured	58	6.50%	Σ 400,000	Σ	397,883	$ 404,152
    Senior credit facility	USD	Secured	45	SOFR plus 2.00% - 4.50%	165,000		164,356	134,212
    Copper Prepayment Facility	USD	Secured	21	8.66%	63,889		66,254	46,530
    Equipment finance loans	USD	Secured	9 - 25	5.00% - 8.35%	10,634		10,755	12,933
    Equipment finance loans	EUR	Secured	11 - 15	5.25%	461		462	544
    Equipment finance loans	BRL	Unsecured	1 - 14	nil% - 16.63%	1,424		1,484	2,597
    Bank loan	BRL	Unsecured	20	CDI + 0.50%	1,139		1,145	1,221
    Total					Σ 642,547	Σ 642,339		Σ 602,189
    Current portion						Σ	52,479		Σ	45,893
    Non-current portion						Σ	589,860		Σ	556,296

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

    Three months ended March 31, 2025

    Copper

    Year ended December 31,

    2024

    Senior Credit Prepayment

    	Senior Notes	Facility	Facility	Other	Consolidated		Consolidated
    Balance, beginning of period	$ 404,152	$ 134,212	$ 46,530	$ 17,295	Σ 602,189		$ 426,233
    Proceeds from loans and borrowings		30,000	25,000	266	55,266		214,565
    Principal payments	-	-	(5,556)	(3,946)	(9,502)		(39,950)
    Interest payments	(13,000)	(2,821)	(809)	(297)	(16,927)		(32,166)
    Interest costs, including interest
    capitalized	6,731	2,965	1,089	232		11,017	36,467
    Deferred transaction costs	-	-	-	-		-	(2,143)
    Foreign exchange	-	-	-	296		296	(817)
    Balance, end of period	$ 397,883	$ 164,356	$ 66,254	$ 13,846	Σ	642,339	$ 602,189

    1. 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 has 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%.

    2. Senior Credit Facility

       In January 2025, the Company amended its Senior Revolving Credit Facility ("Amended Senior Credit Facility") to increase its borrowing limit from $150.0 million to $200.0 million and to extend the maturity from December 2026 to December 2028. The interest rates on the Amended Senior Credit Facility were reduced to sliding scales of SOFR plus 2.00% to 4.25% depending on the Company's consolidated total leverage ratio. The Commitment fees for any undrawn portion of the Senior Credit Facility were reduced to between 0.45% to 0.96% based on a sliding scale. The Company determined that the amendments were a non-substantial modification. As at March 31, 2025, the Senior Credit Facility bears an weighted average interest rate of 7.67% on its drawn balance and a commitment fee of 0.73% on its undrawn balance.

       The Senior Credit Facility is secured by the shares of MCSA, NX Gold and Ero Gold. The Company is required to comply with certain financial covenants, which are required to be tested at each quarter end. These covenants include (a) a total leverage ratio based on total indebtedness to rolling four quarters adjusted earnings before interest, taxes, depreciation and amortization ("Rolling EBITDA"); (b) a total leverage ratio based on senior indebtedness to Rolling EBITDA; and (c) an interest coverage ratio based on Rolling EBITDA. The Senior Credit Facility provides for negative covenants customary for this type of facilities and permits additional equipment debt and finance leases of up to $50.0 million. As at March 31, 2025, the Company is in compliance with these financial covenants.

    3. Copper Prepayment Facility

       In May 2024, the Company entered into a non-priced copper prepayment facility with a bank syndicate. Under this facility, the Company received net proceeds of $49.6 million, representing gross proceeds of $50.0 million less transaction costs of $0.4 million. The Company had the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million until March 31, 2025.

       In exchange, the Company is obligated to repay the $50.0 million facility over 27 equal monthly installments, beginning in October 2024, through the delivery of a minimum of 272 tonnes of copper each month. The copper to be delivered by the Company will be in the form of LME Copper Warrants. Each monthly delivery's value will be determined based on prevailing market copper prices at the time of delivery. Should the value of any delivery exceed the amount of the monthly installment payment of $2.1 million, the excess value will be repaid to the Company.

       In March 2025, the Company exercised its option to increase the size of the non-priced copper prepayment facility by an additional $25.0 million. The Company is obligated to repay the $25.0 million additional facility over 21 equal monthly installments, beginning in April 2025, through the delivery of a minimum of 161 tonnes of copper each month. The copper to be delivered by the Company will be in the form of LME Copper Warrants. Each monthly delivery's value will be determined based on prevailing market copper prices at the time of delivery. Should the value of any delivery exceed the amount of the monthly installment payment of

       $1.3 million, the excess value will be repaid to the Company.

       As the contractual obligation of the facility will be settled in the form of financial assets, the facility is accounted for as a financial liability measured at amortized cost using the effective interest rate method. Transaction costs are included in the initial measurement of the liability and amortized over the term of the facility.

       The facility is secured by the shares of MCSA, NX Gold and Ero Gold.

11. ‌Deferred Revenue‌

    ‌Xavantina Gold Stream

    In 2021, the Company entered into a precious metals purchase agreement (the "Original Xavantina Stream") with RGLD Gold AG ("Royal Gold"), a wholly-owned subsidiary of Royal Gold, Inc., in relation to gold production from the Xavantina Operations. The Company received upfront cash consideration of $100.0 million for the purchase of 25% of an equivalent amount of gold to be produced from the Xavantina mine until 93,000 ounces of gold have been delivered and thereafter decreasing to 10% of gold produced over the remaining life of the mine. The contract will be settled by the Company delivering gold to Royal Gold. Royal Gold will make ongoing payments equal to 20% of the then prevailing spot gold price for each ounce of gold delivered until 49,000 ounces of gold have been delivered and 40% of the prevailing spot gold price for each ounce of gold delivered thereafter. Additional advances may be made by Royal Gold based on the Company achieving certain milestones as set out in the Original Xavantina Stream.

    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 milestones 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 contract modification was accounted for as if the original contract was terminated and a new contract created. The remaining consideration received under the Original Xavantina Stream and the additional consideration received as a result of the modification will be allocated to future remaining gold deliveries based on stand alone selling prices on the contract modification date.

    The movements in Xavantina Gold Stream deferred revenue during the three months ended March 31, 2025 are comprised of the following:

    December 31,
    		March 31, 2025		2024
    Gold ounces delivered in the period(1)		1,367		15,917
    Balance, beginning of period	Σ	62,989		$ 75,549
    Advances		50,000		3,249
    Accretion expense		579		2,501
    Amortization of deferred revenue		(2,246)		(18,310)
    Balance, end of period Σ 111,322 $ 62,989
    Current portion	Σ	13,911 $			14,758
    Non-current portion		97,411			48,231

    1. During the three months ended March 31, 2025, the Company delivered 1,367 ounces of gold (December 31, 2024 - 15,917 ounces) to Royal Gold for average consideration of $570 per ounce (December 31, 2024 - $473 per ounce). At March 31, 2025, a cumulative 46,544 ounces (December 31, 2024 - 45,177 ounces) of gold have been delivered under the Xavantina Gold Stream.

    2. Amortization of deferred revenue during the three months ended March 31, 2025 was net of $0.5 million (December 31, 2024 -

    $4.2 million) related to change in estimate attributed to advances received and change in life-of-mine production estimates.

    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

    December 31,

    		March 31, 2025		2024
    Cash-settled equity awards (Note 13(b))	Σ	3,251		$ 2,536
    Withholding, value added tax, and other taxes payable		16,301		14,437
    Provision		1,689		1,588
    Derivatives (Note 19)		578		-
    Other liabilities		3,739		3,289

    Σ 25,558 $ 21,850

13. ‌Share Capital‌

    1. ‌Options

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

       Three Months Ended March 31, 2025 2024

       Number of Stock Options

       Weighted Average Exercise Price (CAD)

       Number of Stock Options

       Weighted Average Exercise Price (CAD)

       Outstanding stock options, beginning of period	1,734,607	Σ	19.07	1,886,325	$ 19.03
       Exercised	(16,296)		18.12	(21,886)	18.44
       Forfeited	(59,256)		20.38	-	-
       Outstanding stock options, end of period	1,659,055	Σ	19.03	1,864,439	$ 19.03

       ‌The weighted average share price on the date of exercise for options exercised during the three months ended March 31, 2025 was CAD$19.64 (three months ended March 31, 2024 - CAD$23.43).

       ‌As at March 31, 2025, the following stock options were outstanding:

       Number of

       Vested and Exercisable Number of

       Weighted Average Remaining Life

       Weighted Average Exercise Prices

       Stock Options

       Stock Options

       in Years

       $10.01 to $20.00 CAD 1,183,477 815,073 2.53

       $20.01 to $25.35 CAD 475,578 51,398 4.55

       $19.03 CAD ($13.24 USD) 1,659,055 866,471 3.11

    2. ‌Performance Share Unit Plan

       The Company has a performance share unit ("PSU") plan pursuant to which the Compensation Committee may grant PSUs to Eligible Persons of the Company or its subsidiaries. Each PSU entitles the holder thereof to receive one common share, its equivalent cash value, or a combination of both, on the redemption date at the discretion of the Compensation Committee.

       ‌The continuity of PSUs issued and outstanding is as follows:

       Three Months Ended March 31, 2025 2024

       Outstanding balance, beginning of period 1,014,505 967,921 Forfeited (38,218) -

       Outstanding balance, end of period 976,287 967,921

       These PSUs will vest three years from the date of grant by the Compensation Committee and the number of PSUs that will vest may range from 0% to 200% of the number granted, subject to the satisfaction of certain market and non-market performance conditions. Each vested PSU entitles the holder thereof to receive on or about the applicable date of vesting of such share unit (i) one common share; (ii) a cash amount equal to the fair market value of one common share as at the applicable date of vesting; or (iii) a combination of (i) and (ii), as determined by the Compensation Committee in its sole discretion. The Company has elected to settle its PSUs using a combination of cash and common shares in the past. As such, based on its history of past settlements, PSUs are classified as liabilities.

       For PSUs with non-market performance conditions, the fair value of the share units granted was initially recognized at the fair value using the share price at the date of grant, and subsequently remeasured at fair value on each balance sheet date. For PSUs with market performance conditions, the fair value was determined using a Geometric Brownian Motion model. As at March 31, 2025, the fair value of the PSU liability was $7.1 million (December 31, 2024 - $6.6 million) of which $3.9 million (December 31, 2024 - $4.1 million) was recognized in accounts payable and accrued liabilities and the remainder in other non-current liabilities.

    3. ‌Deferred Share Unit Plan

       The Deferred Share Unit ("DSU") plan was established by the Board as a component of compensation for the Company's independent directors. Pursuant to the DSU Plan, DSUs may only be settled by way of cash payment. A participant is not entitled to payment in respect of the DSUs until his or her death, retirement or removal from the Board. The settlement amount of each DSU is based on the fair market value of a common share on the DSU redemption date multiplied by the number of DSUs being redeemed.

       ‌The continuity of DSUs issued and outstanding is as follows:

       Three months ended March 31,

       	2025	2024
       Outstanding balance, beginning of period	325,111	307,312
       Issued	6,101	5,425

       Outstanding balance, end of period 331,212 312,737

       At March 31, 2025, DSU liabilities had a fair value of $4.0 million (December 31, 2024 - $4.4 million) which has been recognized in accounts payable and accrued liabilities.

    4. ‌Restricted Share Unit Plan

       The Company has a restricted share unit ("RSU") plan pursuant to which the Compensation Committee may grant share units to Eligible Persons of the Company or its subsidiaries. The fair value of these restricted share units is determined on the date of grant using the market price of the Company's shares. Each RSU entitles the holder thereof to receive one common share, its equivalent cash value, or a combination of both, on the redemption date at the discretion of the Compensation Committee. The RSUs are equity classified based on the history of past settlements.

       ‌The continuity of RSUs issued and outstanding is as follows:

       Three months ended March 31,

       	2025	2024
       Outstanding balance, beginning of period	328,180	340,570
       Settled	(1,204)	-
       Forfeited	(12,259)	-
       Outstanding balance, end of period	314,717	340,570

    5. ‌Share-based compensation

       Three months ended March 31, 2025 2024

       Stock options Σ 491 $ 684

       Performance share unit plan 532 3,913

       Deferred share unit plan (368) 1,278

       Restricted share unit plan 518 670

       Share-based compensation(1) Σ 1,173 $ 6,545

       ‌(1) For the three months ended March 31, 2025, the Company recorded $1.0 million (three months ended March 31, 2024 - $1.4 million) of share-based compensation in contributed surplus, and the remaining share-based compensation was recorded in liabilities.

    6. ‌Net Income (Loss) per Share

       Three months ended March 31,

       		2025		2024
       Weighted average number of common shares outstanding Dilutive effects of: Stock options		103,564,654 25,366		102,769,444 -
       Share units		314,717		-
       Weighted average number of diluted common shares outstanding(1)		103,904,737		102,769,444
       Net income (loss) attributable to owners of the Company	Σ	80,227		$ (7,141)
       Basic net income (loss) per share	Σ	0.77		$ (0.07)
       Diluted net income (loss) per share	Σ	0.77		$ (0.07)

       1. ‌Weighted average number of diluted common shares outstanding for the three months ended March 31, 2025 excluded 949,663 (three months ended March 31, 2024 - 724,936) stock options and nil share units (three months ended March 31, 2024 - 340,570) that were anti-dilutive.

14. ‌Revenue‌

    Three months ended March 31,

    		2025	2024
    Copper
    Export sales	Σ	108,639	$ 73,652
    Adjustments on provisional sales(1)		863	204
    		109,502	73,856
    Gold
    Sales		13,340	26,014
    Amortization of deferred revenue(2)		2,246	5,923
    	Σ	15,586	$ 31,937
    	Σ	125,088	$ 105,793

    1. Adjustments on provisional sales include both pricing and quantity adjustments. Provisionally priced sales to the Company's international customers are settled with a final sales price between zero to six months (March 31, 2024 - zero to one month) after shipment takes place and, therefore, are exposed to commodity price changes.

    2. ‌During the three months ended March 31, 2025, the Company delivered 1,367 ounces of gold (three months ended March 31, 2024 -4,555 ounces of gold) under a precious metals purchase agreement with Royal Gold (note 11) for average cash consideration of $570 per ounce (three months ended March 31, 2024 - $417 per ounces) and recognized $2.2 million in amortization of deferred revenue (three months ended March 31, 2024 - $5.9 million).

15. ‌Cost of Sales‌

    Three months ended March 31,

    		2025		2024
    Materials	Σ	11,690		$ 10,404
    Salaries and benefits		18,903		15,848
    Contracted services		8,216		8,454
    Maintenance costs		9,523		7,244
    Utilities		4,146		3,667
    Other costs		404		236
    Change in inventory (excluding depreciation and depletion)		(5,416)		3,629
    Cost of production		47,466		49,482
    Sales expense and others		3,854		2,290
    Depreciation and depletion		20,374		21,268
    Change in inventory (depreciation and depletion)		(2,128)		1,576
    	Σ	69,566		$ 74,616

16. ‌General and Administrative Expenses‌

    Three months ended March 31,

    		2025		2024
    Accounting and legal	Σ		378	$	380
    Amortization and depreciation			374		452
    Office and administration			2,272		2,296
    Salaries and consulting fees			6,537		6,031
    Incentive payments			1,098		1,691
    Other			712		664

    Σ 11,371 $ 11,514

17. ‌Finance Expense‌

    Three months ended March 31, 2025 2024

    Accretion of deferred revenue Σ 579 $ 686

    Accretion of provision for rehabilitation and closure costs 841 633

    Interest on lease liabilities 563 445

    Other finance expenses(1) 2,740 2,870

    Σ 4,723 $ 4,634

    1. ‌Other finance expenses during the three months ended March 31, 2025 included $1.3 million (three months ended 2024 - $1.9 million) credit loss on certain accounts receivable (see Note 19).

    2. During the three months ended March 31, 2025, the Company capitalized $11.0 million (three months ended 2024 - $7.4 million) of borrowing costs to projects in progress.

18. ‌Foreign Exchange Gain (Loss)‌

    The following foreign exchange gains (losses) arise as a result of balances and transactions in the Company's Brazilian subsidiaries that are denominated in currencies other than the Brazilian Reals (BRL$), which is their functional currency.

    Three months ended March 31,

    		2025		2024
    Foreign exchange gain (loss) on USD denominated debt in Brazil	Σ	45,103		$ (12,808)
    Realized foreign exchange (loss) gain on derivative contracts (note 19)		(2,216)		2,126
    Unrealized foreign exchange gain (loss) on derivative contracts (note 19)	16,806		(9,341)
    Foreign exchange (loss) gain on other financial assets and liabilities	(1,293)		1,027

    Σ 58,400 $ (18,996)

19. ‌Financial Instruments‌

    ‌Fair value

    ‌Fair values of financial assets and liabilities are determined based on available market information and valuation methodologies appropriate to each situation.

    ‌As at March 31, 2025, derivatives were measured at fair value based on Level 2 inputs.

    The carrying values of cash and cash equivalents, accounts receivable, deposits, and accounts payable and accrued liabilities approximate their fair values due to their short terms to maturity or the discount rate used approximates to the contractual interest rate. At March 31, 2025, the carrying value of loans and borrowings, including accrued interest, was $642.3 million while the fair value is approximately $633.0 million. At March 31, 2025, the carrying value of notes receivable, including accrued interest, was $12.0 million which approximates its fair value.

    ‌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 March 31, 2025 and December 31, 2024:

    December 31,

    		March 31, 2025		2024
    Cash and cash equivalents	Σ	80,573		$ 50,402
    Accounts receivable		63,606		18,399
    Derivatives		271		-
    Note receivable		11,983		12,009
    Deposits and other assets		5,104		4,961
    	Σ	161,537		$ 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 March 31, 2025, PMA continued to be in default of the agreement and the gross amount of accounts and note receivable from PMA was $22.5 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 $14.1 million (December 31, 2024 - $13.1 million). The carrying value of the PMA note receivable at March 31, 2025 was $8.4 million (December 31, 2024 - $7.6 million.), of which $4.4 million (December 31, 2024 - $3.9 million) was included in other current assets. No adjustment was required on the credit loss provision in the three months ended March 31, 2025 (provision of $1.9 million for the three months ended March 31, 2024).

    ‌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 March 31, 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)	$ 642,339		$ 829,503		$ 89,901		$ 111,845		$ 627,757		$ -
    Accounts payable and accrued liabilities	128,737		129,884		129,884		-		-		-
    Other non-current liabilities	6,990	16,453		-		15,463		604		386
    Leases	22,389	24,575		15,446		8,797		333		-

    Total Σ 800,455 Σ 1,000,415 Σ 235,231 Σ 136,105 Σ 628,694 Σ 386

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

    ‌Market risk

    Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity prices. The purpose of market risk management is to manage and control exposures to market risks, within acceptable parameters, while optimizing return.

    ‌The Company may use derivatives, including options, forwards and swap contracts, to manage market risks. The Company's outstanding derivative instruments as of March 31, 2025 are as follows:

    Contract Description

    Notional

    Amount Denomination

    Weighted average floor

    Weighted average cap /

    forward price Maturities

    April 2025 - June

    Foreign exchange collar (i) $332.5 million USD/BRL 5.52 6.49

    Copper collar (iii) 18,000 tonnes $ / lb 4.00 4.68

    Gold collar (iii) 22,500 ounces $ / oz $2,200 $3,425

    2026

    April 2025 -

    September 2025

    April 2025 -

    December 2025

    1. ‌Foreign exchange currency risk

       ‌The Company's subsidiaries in Brazil are exposed to exchange risks primarily related to the US dollar. In order to minimize currency mismatches, the Company monitors its cash flow projections considering future sales expectations indexed to US dollar variation in relation to the cash requirement to settle the existing financings.

       The Company's exposure to foreign exchange currency risk at March 31, 2025 relates to $77.5 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 March 31, 2025 on $568.2 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 March 31, 2025 by 10% and 20%, would have decreased (increased) pre-tax net loss by $64.5 million and $129.0 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. At March 31, 2025, the aggregate fair value of the Company's foreign exchange derivatives was a net liability of $1.8 million (December 31, 2024 - liability of $17.9 million), of which $0.3 million is included in other current assets, $1.5 million is included in current portion of derivatives liabilities, and

       $0.6 million is included in other non-current liabilities. The fair values of foreign exchange contracts were determined based on option pricing models, forward foreign exchange rates, and information provided by the counter party.

       ‌The change in fair value of foreign exchange derivatives was an unrealized gain of $16.8 million for the three months ended March 31, 2025 (a loss of $9.3 million for the three months ended March 31, 2024) and has been recognized in foreign exchange (loss) gain. In addition, during the three months ended March 31, 2025, the Company recognized a realized loss of $2.2 million (realized gain of $2.1 million for the three months ended March 31, 2024) related to the settlement of foreign currency forward collar contracts.

    2. ‌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 March 31, 2025, a 1% change in the variable rates would not materially impact its pre-tax annual net income.

    3. ‌Price risk

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

    ‌At March 31, 2025, the Company had copper collar contracts on 3,000 tonnes of copper per month from April 2025 to September 2025. These copper derivative contracts establish an average floor price of $4.00 per pound of copper and an average cap price of 4.68 per pound. As of March 31, 2025, the fair value of these contracts was a net liability of $1.3 million (December 31, 2024 - nil). The fair value of copper collar contracts was determined based on option pricing models, forward copper price and information provided by the counter party.

    ‌At March 31, 2025, the Company also had gold collar contracts on 2,500 ounces of gold per month from April 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 March 31, 2025, the fair value of these contracts was a net liability of $0.9 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 months ended March 31, 2025, the Company recognized an unrealized loss of $2.1 million (unrealized gain of $0.1 million for the three months ended March 31, 2024) and nil realized impact (nil for the three months ended March 31, 2024) in relation to its commodity derivatives in other income or loss.

    ‌At March 31, 2025, the Company had provisionally priced sales that are exposed to commodity price changes (note 14). Based on the Company's net exposure at March 31, 2025, a 10% change in the price of copper would have changed pre-tax net income (loss) by $11.0 million.

20. ‌Supplemental Cash Flow Information‌

Three months ended March 31,

Net change in non-cash working capital items:		2025		2024
Accounts receivable	Σ	(45,062)		$ (3,018)
Inventories		(8,008)		3,629
Other assets		(1,674)		(6,632)
Accounts payable and accrued liabilities		11,978		(14,553)

Σ (42,766) Σ (20,574)

Non-cash investing and financing activities:

Additions to property, plant and equipment by leases Σ 7,175 $ 4,034 Non-cash (decrease) increase in accounts payable in relation to

capital expenditures (1,938) 2,070