(all amounts in US dollars, unless otherwise noted) VANCOUVER, British Columbia, May 07, 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 months ended March 31, 2024. Management will host a conference call tomorrow, Wednesday, May 8, 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 Tucumã Project is expected to achieve first copper concentrate production in early Q3 2024, marking a major inflection point for the Company Overall physical completion of approximately 97%  Commissioning progressing ahead of schedule with major mechanical and sub- component commissioning completed during the quarter, as well as first ore through the crushing circuit and main conveyors Total direct project capital cost remains unchanged at $310 million First quarter copper production was 8,091 tonnes at C1 cash costs(*) of $2.30 per pound of copper produced. Including the benefit of realized gains on designated foreign exchange hedges, first quarter copper C1 cash costs(*) were $2.28 per pound Gold production during the quarter was a record 18,234 ounces at C1 cash costs(*) and All-in Sustaining Costs ("AISC")(*) of $395 and $797, respectively, per ounce of gold produced First quarter financial results reflect record gold production and operating margins at the Xavantina Operations as well as the sale of copper concentrate inventories carried over from Q4 2023 at the Caraíba Operations Net loss attributable to the owners of the Company of $7.1 million, or $0.07 per share on a diluted basis Adjusted net income attributable to the owners of the Company(*) of $16.8 million, or $0.16 per share on a diluted basis Adjusted EBITDA(*) of $43.3 million Available liquidity at quarter-end of $156.7 million, including $51.7 million in cash and cash equivalents plus $105.0 million of undrawn availability under the Company's senior secured revolving credit facility. Subsequent to quarter-end, to support the commencement of production and associated working capital needs at the Tucumã Project, the Company entered into a $50.0 million non-priced copper prepayment facility, which will be repaid through the delivery of copper at prevailing market prices.  Following record operating performance at the Xavantina Operations during the quarter, the Company is increasing its 2024 gold production guidance from 55,000 to 60,000 ounces to a range of 60,000 to 65,000 ounces, and guiding towards the low end of its full-year cost guidance for the Xavantina Operations The Company is reaffirming all other 2024 production, cost and capital expenditure guidance ranges (*) 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 months ended March 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release. "The Xavantina Operations continued to exceed our expectations during the first quarter, achieving record gold production driven by favorable grade reconciliations that have continued into the second quarter," said David Strang, Chief Executive Officer. "This trend has allowed us to increase our full-year gold production guidance, which we expect will translate to achieving the lower end of our 2024 gold cost guidance. "Our first quarter financial results also showcase Xavantina's strong performance and reflect the sale of copper concentrate inventories carried over from the fourth quarter of 2023 at the Caraíba Operations. Combined with a strengthening gold and copper price environment, we are off to a solid start to 2024. "I am also delighted to report that commissioning is advancing ahead of schedule at the Tucumã Project, and we expect to achieve first production early in the third quarter. With copper fundamentals stronger than ever, we are committed to maintaining our momentum and are excited as we near a significant inflection point in our growth trajectory." FIRST QUARTER REVIEW Mining & Milling Operations The Caraíba Operations processed 853,371 tonnes of ore grading 1.08% copper, producing 8,091 tonnes of copper in concentrate for the quarter after metallurgical recoveries of 88.1% Mill throughput volumes increased 5.1% quarter-on-quarter following the successful completion of the Caraíba mill expansion in late 2023 A planned decrease in mined and processed copper grades during the quarter was compounded by delays in underground development required to access scheduled high-grade stopes, resulting in a higher proportion of ore mined from lower grade stopes during the period The Xavantina Operations processed 37,834 tonnes of ore grading 16.38 grams per tonne ("gpt"), producing a record 18,234 ounces of gold in the quarter after metallurgical recoveries of 91.5% Organic Growth Projects As construction of the Tucumã Project nears completion, commissioning is advancing ahead of schedule, and first copper concentrate production is expected to commence in early Q3 2024 Completed mechanical and sub-component commissioning in Q1 2024, as well as first ore through the crushing circuit and main conveyors Commissioning of the process plant, including the ball mill, flotation circuit, and tailings and concentrate filters, remains on track for integrated commissioning in June 2024 Sulphide ore stockpiled for process plant commissioning was approximately 36,000 tonnes with over 160,000 tonnes of ore drilled and ready to be blasted in the mine as of quarter-end The total direct project capital estimate remains unchanged at approximately $310 million To date, the Tucumã Project has recorded no lost-time injuries with over five million hours of work completed since 2022 At the Caraíba Operations, main shaft sinking at the Pilar Mine's new external shaft is on track to achieve a projected depth of approximately 600 meters by year-end Reaming of the second and longest raisebore leg of the shaft, totaling 718 meters, was completed in early April 2024 Figure 1: The Tucumã Project's flotation circuit and tailings thickener (May 2024). Figure 2: Tailings thickener at the Tucumã Project (May 2024). Figure 3: Exposed sulphide ore at the Tucumã Project (May 2024). SUBSEQUENT EVENTS To support the commencement of production and associated working capital needs at the Tucumã Project, the Company entered into a $50.0 million non-priced copper prepayment facility in May 2024, structured by the Bank of Montreal and with participation by CIBC Capital Markets. This facility will be repaid over 27 equal monthly installments, beginning in October 2024, through the delivery of 272 tonnes of copper each month. Should any delivery exceed the monthly amortization payment of $2.1 million based on prevailing market prices, the excess value will be repaid to the Company. Through the end of 2024, the Company has the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million. OPERATING AND FINANCIAL HIGHLIGHTS     2024 - Q1   2023 - Q4   2023 - Q1 Operating Information                           Copper (Caraíba Operations)             Ore Processed (tonnes)     853,371       812,202       772,548   Grade (% Cu)     1.08       1.59       1.33   Cu Production (tonnes)     8,091       11,760       9,327   Cu Production (000 lbs)     17,838       25,926       20,564   Cu Sold in Concentrate (tonnes)     9,461       11,429       9,464   Cu Sold in Concentrate (000 lbs)     20,859       25,197       20,865   Cu C1 cash cost(1)(2)   $ 2.30     $ 1.75     $ 1.89                 Gold (Xavantina Operations)             Ore Processed (tonnes)     37,834       34,416       35,763   Grade (g / tonne)     16.38       17.18       11.85   Au Production (oz)     18,234       16,867       12,443   Au C1 cash cost(1)   $ 395     $ 413     $ 436   Au AISC(1)   $ 797     $ 991     $ 946                 Financial Highlights ($ in millions, except per share amounts)     Revenues   $ 105.8     $ 116.4     $ 101.0   Gross profit     31.2       41.9       40.1   EBITDA(1)     17.8       73.7       48.1   Adjusted EBITDA(1)     43.3       50.3       44.5   Cash flow from operations     17.2       49.4       16.4   Net (loss) income     (6.8 )     37.1       24.5   Net (loss) income attributable to owners of the Company     (7.1 )     36.5       24.2   Per share (basic)     (0.07 )     0.37       0.26   Per share (diluted)     (0.07 )     0.37       0.26   Adjusted net income attributable to owners of the Company(1)     16.8       20.7       22.5   Per share (basic)     0.16       0.21       0.24   Per share (diluted)     0.16       0.21       0.24                 Cash, cash equivalents, and short-term investments     51.7       111.7       236.6   Working (deficit) capital(1)     (28.6 )     25.7       218.8   Net debt(1)     415.1       314.5       174.2   (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 months ended March 31, 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 (per lb) in Q1 2024 was $2.28, compared to $1.84 in Q1 2023. 2024 PRODUCTION AND COST GUIDANCE(*) Following record operating performance at the Xavantina Operations during the quarter, the Company is increasing its 2024 gold production guidance from 55,000 to 60,000 ounces to a range of 60,000 to 65,000 ounces. The Company expects mined and processed gold grades to remain above plan through the remainder of H1 2024, as positive grade reconciliations have continued into Q2 2024. While this trend may continue beyond Q2 2024, the Company is projecting a reversion to long-term block model grades for planned mining areas in H2 2024. As a result of higher full-year production expectations, the Company is guiding towards the low end of its full-year cost guidance for the Xavantina Operations. Consolidated copper production of 59,000 to 72,000 tonnes in concentrate is expected to be weighted towards H2 2024, largely due to the anticipated commencement of production at the Tucumã Project in early Q3 2024. Consequently, consolidated copper C1 cash costs are projected to be lower in H2 2024 versus H1 2024. The Company's updated 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.     Previous Guidance   Updated Guidance Consolidated Copper Production (tonnes)         Caraíba Operations   42,000 - 47,000   Unchanged 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   Low End of Range Gold AISC(1) Guidance   $1,050 - $1,150   Low End of Range *  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(*) Full-year capital expenditures are projected to range from $299 to $349 million, including an estimated $30 to $40 million allocated to consolidated exploration programs. As the Company nears completion of the Tucumã Project, capital expenditures are expected to decrease in Q2 2024 compared to Q1 2024 and be weighted towards H1 2024. Capital expenditure guidance assumes an exchange rate of 5.10 USD:BRL for the Tucumã Project based on designated 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 below are in USD millions. Caraíba Operations     Growth   $80 - $90 Sustaining   $100 - $110 Total, Caraíba Operations   $180 - $200       Tucumã Project     Growth   $65 - $75 Capitalized Ramp-Up Costs   $4 - $6 Sustaining   $2 - $5 Total, ...