- (all amounts in US dollars, unless otherwise noted)

Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO) (“Ero” or the “Company”) today is pleased to announce its financial results for the three and twelve-months ended December 31, 2020. Management will host a conference call tomorrow, Wednesday, March 17, 2021, at 11:30 a.m. Eastern to discuss the results. Dial-in details for the call can be found near the end of this press release.

HIGHLIGHTS

Copper production of 10,018 tonnes and 42,814 tonnes during the three and twelve-month periods ended December 31, 2020, respectively;
Fourth quarter C1 cash costs(*) of $0.69 per pound of copper produced resulting in full year C1 cash costs(*) of $0.67 per pound of copper produced – a $0.27 year-on-year improvement in annual C1 cash costs;
Generated $67.2 million and $207.1 million in Adjusted EBITDA(*) and $38.6 million and $162.8 million in cash flow from operations during the three and twelve-month periods ended December 31, 2020, respectively;
Adjusted net income attributable to owners of the Company(*) of $37.4 million and $117.3 million ($0.40 and $1.27 per share on a diluted basis) during the three and twelve-month periods ended December 31, 2020, respectively;
Record quarterly gold production from the Santo Antonio Vein at the NX Gold Mine of 10,789 ounces of gold at all-in sustaining costs(*) of $608 per ounce of gold produced during the fourth quarter resulting in full-year production of 36,830 ounces of gold at all-in sustaining costs(*) of $628 per ounce;
Total cash and cash equivalents and available undrawn lines of credit at December 31, 2020 of $62.5 million and $11.6 million compared to $21.5 million and $30.0 million, respectively, at the end of 2019; and,
Reiterate previously announced full-year production, operating cost and capital guidance for 2021.
Additionally, subsequent to the year-end, as part of its ongoing corporate strategy, the Company amended its Credit Agreement with The Bank of Nova Scotia (“Scotiabank”) and Bank of Montreal (“BMO”), to amend the existing US$75 million senior secured amortizing non-revolving credit facility and US$75 million senior secured revolving credit facility (collectively the “Prior Facilities”) with a US$150 million senior secured revolving credit facility payable in a bullet at maturity, approximately four years from closing, on March 31, 2025 (the “Revolving Credit Facility”). The amendment further reduces the Company’s cost of borrowing depending on the Company’s consolidated leverage ratio, and eliminates principal payments previously due in 2022, 2023 and 2024 under the Prior Facilities. Additional detail is provided later in this press release.

Commenting on the Company’s 2020 results, David Strang, CEO, stated, “Our 2020 financial results reflect the strong operational performance and record-low operating costs we achieved during the year. Despite headwinds associated with the COVID-19 pandemic, 2020 was an outstanding year for the Company and we intend on carrying this operational momentum into 2021, aided thus far by a stronger copper price.

On our growth-initiatives, 2021 is poised to be another exciting year for the Company as we advance multiple projects including, among others, our regional exploration program at the MCSA Mining Complex, ongoing studies on the potential optimization of our ‘turn-key’ Boa Esperan?a Project and the progression of the first regional exploration program ever conducted at the NX Gold Mine. With the completion of the amendment to our credit agreement and strong balance sheet, we intend on using this year to continue to demonstrate the world-class exploration potential of the Curaçá Valley and our executable low capital-intensity development pipeline.”

*EBITDA, Adjusted EBITDA, Adjusted net income attributable to owners of the Company, Adjusted net income per share attributable to owners of the Company, C1 Cash Costs per pound of copper produced and All-in Sustaining Costs (“AISC”) per ounce of gold produced are non-IFRS measures – see the Notes section of this press release for additional information.

OPERATIONS & EXPLORATION HIGHLIGHTS

Mining & Milling Operations – strong operating performance across the portfolio
The MCSA Mining Complex processed 483,447 tonnes of ore grading 2.26% copper during the fourth quarter producing 10,018 tonnes of copper in concentrate after metallurgical recoveries of 91.7%.
Total of 2.3 million tonnes of ore processed grading 2.08% copper producing a record 42,814 tonnes of copper in concentrate after metallurgical recoveries that averaged 90.5% during the twelve-month period ended December 31, 2020.
The NX Gold Mine processed 45,574 tonnes grading 7.72 grams per tonne gold during the fourth quarter producing 10,789 ounces of gold and 6,763 ounces of silver as a by-product after record metallurgical recoveries of 95.4%.
Total of 162,642 tonnes of ore grading 7.72 grams per tonne gold, resulting in the production of 36,830 ounces of gold and 22,694 ounces of silver as by-product after metallurgical recoveries that averaged 91.3% during the twelve-month period ended December 31, 2020.
Exploration Activities – aggressive exploration program in 2021 starting off strong with 22 drill rigs currently operating at the MCSA Mining Complex and 9 at the NX Gold Mine
MCSA Mining Complex
Thirteen drill rigs are currently operating on in- and near-mine targets within the Pilar and Vermelhos Districts, focused on upgrading the existing mineral resources and extending the known limits of mineralization, particularly beneath the main ore bodies of the Vermelhos Mine and within the Deepening Extension Zone of the Pilar Mine.
Five drill rigs are currently focused on regional exploration targets throughout the Curaçá Valley and an additional four drill rigs are systematically drilling the Southern Vermelhos Corridor.
NX Gold Mine
At the NX Gold Mine, five exploration drill rigs are currently operating on extensions of the Santo Antonio Vein. Four additional exploration drill rigs are advancing the first comprehensive regional exploration program in the property’s history.
Corporate Highlights – robust balance sheet to execute on organic growth initiatives
Successfully advanced several key capital programs in 2020 including completion of the Company’s HIG Mill installation and ore-sorting pilot plant program at MCSA, as well as drilling and integration of the Deepening Extension Project into MCSA’s recently announced life-of-mine plan update for 2020.
Subsequent to year-end, the Company amended the Prior Facilities with a new Revolving Credit Facility payable in a bullet at maturity, approximately four years from closing, on March 31, 2025 – further details are provided later in this press release.
The Company continues to have no material disruption to operations, supply chains or sales channels as a result of the COVID-19 pandemic. Since the onset of COVID-19 in early 2020, the Company has taken extraordinary measures to mitigate the possible impact of COVID-19 on its workforce and operations. The Company continues to closely monitor the COVID-19 pandemic and is engaged in active operational and financial contingency planning to prudently manage the potential impact of the pandemic on its operations.
OPERATING AND FINANCIAL HIGHLIGHTS
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