(all amounts in US dollars, unless otherwise noted) VANCOUVER, British Columbia, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX:ERO, NYSE:ERO) ("Ero" or the "Company") is pleased to announce its operating and financial results for the three and six months ended June 30, 2024. Management will host a conference call tomorrow, Friday, August 2, 2024, at 11:30 a.m. eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release. HIGHLIGHTS The Company reached a major inflection point with the successful production of first saleable copper concentrate at the Tucumã Project in early Q3 2024. Ramp up to commercial production is now underway Second quarter copper production was 8,867 tonnes at C1 cash costs(*) of $2.16 per pound of copper produced Gold production during the quarter was 16,555 ounces at C1 cash costs(*) and All-in Sustaining Costs ("AISC")(*) of $428 and $842, respectively, per ounce produced Second quarter financial results were bolstered by stronger metal prices and a favorable exchange rate environment, which also contributed to another quarter of record gross profit at the Xavantina Operations  Net loss attributable to the owners of the Company of $53.2 million, or $0.52 per share on a diluted basis Adjusted net income attributable to the owners of the Company(*) of $18.6 million, or $0.18 per share on a diluted basis Adjusted EBITDA(*) of $51.5 million Available liquidity at quarter-end was $169.8 million, including $44.8 million in cash and cash equivalents, $100.0 million of undrawn availability under the Company's senior secured revolving credit facility, and $25.0 million of undrawn availability under the copper prepayment facility, entered into in May 2024 (*) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release. The Company is reaffirming full-year production and copper cash cost guidance and updating other 2024 guidance ranges to reflect H1 2024 performance, including exceptional year-to-date unit costs at the Xavantina Operations driven by elevated gold grades Gold C1 cash cost guidance is being reduced to $450 to $550 (from $550 to $650) per ounce of gold produced, and AISC guidance is being lowered to $900 to $1,000 (from $1,050 to $1,150) per ounce of gold produced Full-year capital expenditure guidance is being narrowed to $303 to $348 million (from $299 to $349 million) "With the Tucumã Project ramping up to commercial production and the Xavantina Operations continuing to deliver exceptional operating results, we are on track to achieve record copper and gold production this year," said David Strang, Chief Executive Officer. "At the same time, gold prices continue to test new highs while gross profit margins in our copper business are benefiting from a historically tight concentrate market. "This is an incredibly exciting time for our Company as the investments we've made over the last several years begin to yield tangible returns. Our team's hard work and dedication have positioned us to capitalize on these favorable market conditions and crystallize value for our shareholders." SECOND QUARTER REVIEW Mining & Milling Operations The Caraíba Operations processed 957,692 tonnes of ore grading 1.03% copper, producing 8,867 tonnes of copper in concentrate for the quarter after metallurgical recoveries of 90.2% Mill throughput continued to benefit from the successful completion of the Caraíba mill expansion in late 2023 with tonnes processed up 12.2% quarter-on-quarter and 17.9% compared to Q4 2023 Higher processed tonnage contributed to a 9.6% increase in copper production quarter-on-quarter The Xavantina Operations processed 40,446 tonnes of ore grading 14.00 grams per tonne, producing 16,555 ounces of gold in the quarter after metallurgical recoveries of 91.0% Organic Growth Projects During the quarter and subsequent to quarter-end, the Company achieved several important milestones at the Tucumã Project, including the successful production of first saleable copper concentrate, which exceeded process design concentrate grade targets Production levels are projected to reach 80% of design mill capacity and 80% of design recovery rates by the end of Q3 2024 At the Caraíba Operations, main shaft sinking at the Pilar Mine's new external shaft is progressing on schedule, with a projected depth of approximately 600 meters expected to be reached by year-end Figure 1: Crushed ore stockpile at the Tucumã Project (June 2024). Figure 2: Aerial view of the Tucumã Project's process plant, including ball mill, flotation and filtration (center), concentrate shed (bottom), and crushed ore stockpile (right) (July 2024). Figure 3: Night-time aerial view of the Tucumã Project's process plant, including ball mill, flotation and filtration, taken during the first 24-hour shift of continuous mill operations (July 2024). Figure 4: Mining of high-grade sulphide ore at the Tucumã Project (July 2024). OPERATING AND FINANCIAL HIGHLIGHTS     2024 - Q2     2024 - Q1     2023 - Q2   2024 - YTD     2023 - YTD Operating Highlights   Copper (Caraíba Operations)           Ore Processed (tonnes)   957,692     853,371     840,821   1,811,063     1,613,369 Grade (% Cu)   1.03     1.08     1.55   1.05     1.45 Cu Production (tonnes)   8,867     8,091     12,004   16,958     21,331 Cu Production (000 lbs)   19,548     17,838     26,464   37,386     47,027 Cu Sold in Concentrate (tonnes)   8,706     9,461     11,612   18,167     21,076 Cu Sold in Concentrate (000 lbs)   19,192     20,859     25,600   40,051     46,465 Cu C1 cash cost(1)(2) $ 2.16   $ 2.30   $ 1.66 $ 2.23   $ 1.76 Gold (Xavantina Operations)           Ore Processed (tonnes)   40,446     37,834     34,377   78,280     70,140 Grade (g / tonne)   14.00     16.38     13.20   15.15     12.51 Au Production (oz)   16,555     18,234     12,333   34,789     24,776 Au C1 cash cost(1) $ 428   $ 395   $ 492 $ 411   $ 464 Au AISC(1) $ 842   $ 797   $ 1,081 $ 819   $ 1,013 Financial Highlights ($ in millions, except per share amounts) Revenues $ 117.1   $ 105.8   $ 104.9 $ 222.9   $ 205.9 Gross profit   43.3     31.2     39.4   74.5     79.5 EBITDA(1)   (36.2 )   17.8     58.6   (18.4 )   106.6 Adjusted EBITDA(1)   51.5     43.3     45.8   94.8     90.2 Cash flow from operations   14.7     17.2     55.5   31.9     71.8 Net (loss) income   (53.4 )   (6.8 )   29.9   (60.2 )   54.4 Net (loss) income attributable to owners of the Company   (53.2 )   (7.1 )   29.6   (60.4 )   53.7 Per share (basic)   (0.52 )   (0.07 )   0.32   (0.59 )   0.58 Per share (diluted)   (0.52 )   (0.07 )   0.32   (0.59 )   0.58 Adjusted net income attributable to owners of the Company(1)   18.6     16.8     22.3   35.4     44.7 Per share (basic)   0.18     0.16     0.24   0.34     0.48 Per share (diluted)   0.18     0.16     0.24   0.34     0.48 Cash, cash equivalents, and short-term investments   44.8     51.7     180.4   44.8     180.4 Working (deficit) capital(1)   (57.6 )   (28.6 )   140.7   (57.6 )   140.7 Net debt(1)   482.0     415.1     246.5   482.0     246.5                             (1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non- IFRS measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.(2) Copper C1 cash cost including foreign exchange hedges was $2.16 in Q2 2024 (Q2 2023 - $1.55) and $2.22 in YTD 2024 (YTD 2024 - $1.68). 2024 PRODUCTION AND COST GUIDANCE(*) The Company is reaffirming its consolidated copper production guidance of 59,000 to 72,000 tonnes in concentrate, with production expected to be weighted towards H2 2024 largely due to the projected ramp-up of production at the Tucumã Project. Contributions from the Tucumã Project, combined with significantly lower concentrate treatment and refining charges, as well as a more favorable USD to BRL exchange rate, are expected to result in lower consolidated copper C1 cash costs in H2 2024 compared to H1 2024. As a result, the Company is reaffirming its full-year consolidated copper C1 cash cost guidance range of $1.50 to $1.75 per pound of copper produced. The Company is reaffirming its increased full-year gold production guidance range of 60,000 to 65,000 ounces. While slightly lower production is projected to result in higher unit costs in H2 2024 compared to H1 2024, the Company is lowering its 2024 gold cost guidance to reflect exceptional year-to-date unit cost performance. Full-year gold C1 cash cost guidance is now $450 to $550 (originally $550 to $650) per ounce of gold produced, and AISC guidance has been reduced to $900 to $1,000 (from $1,050 to $1,150) per ounce of gold produced. The Company's cost guidance for 2024 assumes a foreign exchange rate of 5.00 BRL per USD, a gold price of $1,900 per ounce and a silver price of $23.00 per ounce.   Original Guidance Updated Guidance Consolidated Copper Production (tonnes)     Caraíba Operations 42,000 - 47,000 Low End of Range Tucumã Operations 17,000 - 25,000 Unchanged Total 59,000 - 72,000 Unchanged Consolidated Copper C1 Cash Costs(1)Guidance     Caraíba Operations $1.80 - $2.00 Unchanged Tucumã Operations $0.90 - $1.10 Unchanged Total $1.50 - $1.75 Unchanged The Xavantina Operations     Au Production (ounces) 55,000 - 60,000 60,000 - 65,000 Gold C1 Cash Cost(1)Guidance $550 - $650 $450 - $550 Gold AISC(1)Guidance $1,050 - $1,150 $900 - $1,000 * Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors. (1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within the MD&A. 2024 CAPITAL EXPENDITURE GUIDANCE(*) The Company is narrowing its full-year capital expenditure guidance range to $303 to $348 million (from $299 to $349 million). The 2024 capital expenditure guidance assumes an exchange rate of 5.10 USD:BRL for the Tucumã Project based on allocated foreign exchange hedges with a weighted average ceiling and floor of 5.10 and 5.23 USD:BRL, respectively. All other capital expenditures assume an exchange rate of 5.00 USD:BRL. Figures presented in the table below are in USD millions.   Original Guidance   Updated Guidance Caraíba Operations       Growth $80 - $90   $70 - $80 Sustaining $100 - $110   $90 - $100 Total, Caraíba Operations $180 - $200   $160 - $180 Tucumã Project       Growth $65 - $75   $85 - $90(1) Capitalized Ramp-Up Costs $4 - $6   $8 - $10(2) Sustaining $2 - $5   $2 - $5 Total, Tucumã Project $71 - $86   $95 - $105 Xavantina Operations       Growth $3 - $5   $3 - $5 Sustaining $15 - $18   $15 - $18 Total, Xavantina Operations $18 - $23   $18 - $23 Consolidated Exploration Programs $30 - $40   $30 - $40 Company Total       Growth $148 - $170   $158 - $175 Capitalized Ramp-Up Costs $4 - $6   $8 - $10 Sustaining $117 - $133   $107 - $123 Exploration $30 - $40   $30 - $40 Total, Company $299 - $349   $303 - $348 (*) Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors. (1) Includes approximately $11.7 million of taxes deemed non-recoverable. (2) Includes capitalized mining costs that were accelerated by over two months due to the early completion of pre-strip activities. This additional capital is expected to result in lower operating costs in H2 2024. CONFERENCE CALL DETAILS The Company will hold a conference call on Friday, August 2, 2024 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results. Date: Friday, August 2, 2024 Time: 11:30 am Eastern time (8:30 am Pacific time) Dial in: Canada/USA Toll Free: 1-844-763-8274, International: +1-647-484-8814Please dial in 5-10 minutes prior to the start of the call or pre-register using this link to bypass the live operator queue Webcast: To access the webcast, click here Replay: Canada/USA: 1-855-669-9658, International: +1-412-317-0088For country-specific dial-in numbers, click here Replay Passcode: 6135252 Reconciliation of Non-IFRS Measures Financial results of the Company are presented in accordance with IFRS. 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, gold C1 cash cost, gold AISC, 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. For additional details please refer to the Company's discussion of non-IFRS and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2024 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov. Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure. Reconciliation: 2024 - Q2 2024 - Q1 2023 - Q2 2024 - YTD 2023 - YTD Cost of production $ 41,945   $ 42,227   $ 37,767   $ 84,172   $ 74,052   Add (less):           Transportation costs & other   1,283     1,252     1,733     2,535     3,072   Treatment, refining, and other   4,058     5,170     7,954     9,228     14,417   By-product credits   (3,431 )   (2,440 )   (3,704 )   (5,871 )   (6,514 ) Incentive payments   (1,174 )   (1,199 )   (1,129 )   (2,373 )   (2,366 ) Net change in inventory   (468 )   (3,893 )   1,323     (4,361 )   138   Foreign exchange translation and other   21     (7 )   (13 )   14     2   C1 cash costs