ERO Copper Corp.

ERO Copper Corp. is a junior copper producer headquartered in Vancouver, Canada, operating primarily in South America. The company's portfolio consists of 4 projects, comprising 3 operating mines and 1 advanced exploration project. Key assets include Caraíba and Furnas. The business model is centered on being a high-growth, high-margin producer with a focus on operational excellence and innovation. The company's operational approach involves integrating new production sources with existing infrastructure, demonstrated by the successful delivery of a major project from construction into the ramp-up phase. Processing capabilities are a key focus, with an emphasis on achieving design targets for metallurgical recoveries and concentrate grades while steadily increasing plant throughput volumes. A core operational characteristic is the advancement of integrated systems, such as developing a two-mine system at one of its operations to significantly increase mining rates and enhance production efficiency. The organization's competitive positioning is built on a foundation of ambition and resilience, navigating operational challenges during critical growth phases to establish itself as a leading operator. This approach is designed to create lasting value through disciplined execution and continuous improvement across its asset base, ensuring operational integrity and maximizing the economic potential of its mineral endowments.

Strategic execution centers on a multi-faceted growth plan, including the on-schedule delivery of major capital projects and the expansion of the mineral base through targeted exploration and resource definition. A key initiative involves advancing the construction of a new external shaft, which is expected to enable a significant increase in mining rates and create meaningful production and cost benefits starting in 2027. Near-term operational priorities emphasize improving flexibility within existing mines by mobilizing additional development contractors to accelerate underground development rates. The organization is also focused on achieving commercial production at its newest operation by steadily increasing plant throughput. Long-term growth is underpinned by a strategic partnership with a major base metals entity to earn a majority interest in a large-scale, high-grade underground asset, with an extensive multi-phase drill program already underway. Financial strategy is geared towards supporting this expanded operational footprint, evidenced by the amendment of its primary credit facility to enhance financial flexibility and increase available liquidity for future initiatives.

A significant leadership transition, part of a long-term succession plan developed in 2022, was executed effective January 1, 2025. The co-founder and Chief Executive Officer transitioned to the role of Executive Chairman, ensuring continued leadership and support for the organization. Concurrently, the former President and Chief Operating Officer was appointed President and Chief Executive Officer and joined the Board of Directors. This transition also included the retirement of the co-founder who had served as Chairman since the company's inception, marking a pivotal change in governance. A broader leadership reorganization was implemented to enhance operational stability and efficiency, consolidating key executive roles to support the next phase of growth. As part of the succession plan, the co-founder and Chief Geological Officer is set to retire at the end of March 2025 but will continue to provide guidance in an advisory capacity as a member of a key technical committee. This structured approach to leadership succession ensures continuity and aligns the management team with the company's long-term strategic objectives.

The organization's commitment to health and safety was demonstrated by the successful completion of a major project with over 7 million hours worked without a lost-time incident. Environmental stewardship initiatives in 2024 included reinforcing the stability of tailings de-watering paddocks through targeted upgrades, which ensures continued operational integrity and responsible environmental management. On the social front, the company invested over $1 million in community programs across its operations. This included a collaboration with its partner, Royal Gold, to expand the Project Hope childhood education program near one of its operations. Governance practices were strengthened through a comprehensive training program where over 98% of managers received instruction on identifying and mitigating human rights and modern slavery risks within the company's operations and supply chain. These specific actions reflect a commitment to integrating environmental, social, and governance principles into core business practices.

The corporate structure is centered around primary operating subsidiaries, including a 99.6% ownership interest in Mineração Caraíba S.A. and a 97.6% interest in NX Gold S.A. A significant structural development occurred in July 2024 when the company entered into a definitive earn-in agreement with Vale Base Metals, a subsidiary of Vale S.A. This agreement allows the organization to earn a 60% interest in a development-stage asset by funding a multi-phased exploration and engineering work program, including the completion of scoping, pre-feasibility, and definitive feasibility studies. Another key structural arrangement is a long-standing precious metals purchase agreement with RGLD Gold AG, a wholly-owned subsidiary of Royal Gold, Inc. Under this agreement, the company is obligated to sell a portion of the production from one of its operations at contractually set prices, providing an alternative financing mechanism. In May 2024, the company further diversified its capital structure by entering into a non-priced prepayment facility with a syndicate of banks, structured by the Bank of Montreal with participation from CIBC Capital Markets.