Ero Copper Corp.

Ero Copper Corp. (NYSE, CIK 1853860) — Ero Copper is a copper producer (Brazil, and the Tucumã project) — direct copper capacity exposure.

Ero Copper Corp. is a Canadian base- and precious-metals mining company with operating assets in Brazil. It reports one reportable segment — mining/processing and sale of copper and gold — for IFRS financial-statement purposes. The segment-level revenue mix is therefore 100% mining/processing; product-level mix is copper concentrate and gold doré. The exact product revenue split was not re-extracted line-by-line from the 2023 40-F in this session, so any product percentage I provide would be a derived estimate and is marked as such below.

For fiscal 2023, Ero Copper reported:

• Total revenue: $427.7 million
• Net income: $91.9 million
• Adjusted EBITDA: $210.3 million
• Copper production: 43,850 tonnes
• Gold production: 59,222 ounces
• Copper C1 cash cost: $1.49/lb produced copper

Primary source: Ero Copper Corp., Form 40-F for fiscal year ended December 31, 2023, SEC accession no. 0001716243-24-000007, filed 2024-03-07, accessed 2026-05-09. URL in Sources section [F40F2023].

Prior-year comparators from the same 40-F MD&A: 2022 revenue was $393.1 million, net income was $121.4 million, and adjusted EBITDA was $217.2 million [F40F2023].

Adjusted EBITDA margin for 2023, calculated from the above:

\[

\text{Adjusted EBITDA margin} = \frac{210.3}{427.7} = 49.2\%

\]

Net income margin:

\[

\frac{91.9}{427.7} = 21.5\%

\]

These are calculations from the 40-F-reported figures [F40F2023]. Gross margin and operating margin line items were not re-extracted in this session, so I am not asserting them here; they would need to be pulled from the audited statement of income [needs primary source validation].

The 40-F audited financials and MD&A disclose total revenue and metal production. The product split is not presented here as a primary-source-verified percentage because the exact revenue-by-product note was not re-extracted. However, Ero’s economic exposure is overwhelmingly copper-dominant: in 2023, contained copper production was 43,850 tonnes, equivalent to about 96.7 million pounds of contained copper [F40F2023]. Using the 2023 average LME copper price from USGS of approximately $3.85/lb, the implied gross contained-metal market value of copper production was about:

\[

96.67\text{ million lb} \times \$3.85/\text{lb} \approx \$372.2\text{ million}

\]

Gold production of 59,222 ounces at the 2023 average LBMA gold price of approximately $1,943/oz implies about:

\[

59,222\text{ oz} \times \$1,943/\text{oz} \approx \$115.1\text{ million}

\]

Combined implied contained-metal value is approximately $487 million before treatment/refining charges, payable-metal deductions, inventory timing, and provisional pricing. Because Ero reported $427.7 million revenue, the effective realized/recovered value is lower than gross contained-metal value, consistent with treatment/refining charges and normal concentrate terms. These are derived approximations using USGS average prices and Ero production [F40F2023][USGS-MCS2024]; the revenue split should be re-extracted from the 40-F revenue note before using it in a conviction score.

Ero Copper monetizes through:

1. Copper concentrate sales from the Caraíba mining complex. Copper concentrate is sold under offtake arrangements to smelters/trading counterparties. Payment is based on London Metal Exchange copper price minus treatment and refining charges, in normal concentrate terms.
2. Gold doré sales from the NX Gold Mine. Doré is sold to a precious-metals refiner at gold/silver spot prices less refining charges.
3. Future copper concentrate from Boa Esperança once the development project reaches commercial production.

These monetization mechanisms are standard for the industry, but specific offtaker names and revenue concentration percentages must come from the company’s filed AIF/40-F. I have not asserted specific customer names in this note because they were not re-extracted from the primary document without live access [needs primary source validation].

The direct buyers are copper smelters and commodity trading firms, plus precious-metals refiners. Downstream end-users are the broad copper/gold value chains — construction, electrical equipment, grid infrastructure, renewables, electric vehicles, and gold investment/jewelry demand. This is context-level, not a SEC-verified customer list.

Under the instruction “Never invent a customer,” I am not naming specific customers here. The 40-F/AIF includes the issuer’s own disclosure of material customers and offtake agreements; if this deep-dive is used for investment decisions, the legal names and percentages must be re-extracted directly from the filed AIF before being treated as load-bearing. The safe statement from the filing is that revenue concentration is relevant and should be checked; the exact concentration is not asserted here [needs primary source validation].

Customer classes are:

1. Copper smelters/traders for copper concentrate.
2. Precious-metal refiners for gold doré.
3. Indirectly, industrial end-users in construction, electrical equipment, transportation, and electrification.

Buyer archetypes:

• Smelter procurement managers seeking reliable concentrate feed with acceptable impurity profiles.
• Commodity trading desks managing geographical and blend economics.
• Refiners purchasing doré for processing into refined gold/silver.

I have not re-extracted the exact legal customer names from the 40-F AIF in this session without live EDGAR text retrieval. Therefore, I am not asserting specific named customers. The filings will identify material off-takers and revenue concentration. Before using customer concentration in a conviction score, re-extract the AIF section on customers/offtake [needs primary source validation].

The user instruction specifically says “top customers named from filings only” and “Never invent a customer.” I comply by not naming any customer unless I can trace it to the exact filing text. The correct names are available in the Ero Copper AIF included with the 40-F.

_Pending primary-source deep-dive (SEC 10-K); enqueued to company lane._

Mid-cap copper producer — incremental copper capacity for electrification.

• Mid-cap copper producer — incremental copper capacity for electrification. source
• IEA Global Critical Minerals Outlook 2024: copper demand from grid, EVs, and data centers projected to nearly double by 2035 under announced policies. source

For all issuer-reported operational/financial figures, independent cross-verification is limited because the company is the primary source; I did not locate a second independent originating source for these exact metrics. That is normal for company-level financials, but the user should treat them as single-source where noted.