UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the month of March 2024


Commission File Number 001-40459

ERO COPPER CORP.
(Translation of registrant's name into English)

625 Howe Street, Suite 1050
Vancouver, British Columbia V6C 2T6
Canada
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☐    Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).         

Exhibits 99.1, 99.2 and 99.3 of this Form 6-K is incorporated by reference as an additional exhibit to the registrant’s Registration Statement on Form S-8 (File NO. 333-264821) and Registration Statement on Form F-10 (File NO. 333-274097).









Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Ero Copper Corp.
By:/s/ Deepk Hundal
Name: Deepk Hundal
Title: SVP, General Counsel and Corporate Secretary
Date: March 7, 2024





















Exhibit Index















logo_cmyk-coppera.jpg

MANAGEMENT’S DISCUSSION
AND ANALYSIS


FOR THE YEAR ENDED
DECEMBER 31, 2023



1050 – 625 Howe Street, Vancouver, B.C., Canada V6C 2T6
Phone: 604-449-9244 | Website: www.erocopper.com | Email: info@erocopper.com



TABLE OF CONTENTS
BUSINESS OVERVIEW
HIGHLIGHTS
REVIEW OF OPERATIONS
The Caraíba Operations
The Xavantina Operations
2024 GUIDANCE
REVIEW OF FINANCIAL RESULTS
Review of quarterly results
Review of annual results
Summary of quarterly results for most recent eight quarters
OTHER DISCLOSURES
Liquidity, Capital Resources, and Contractual Obligations
Management of Risks and Uncertainties
Other Financial Information
Accounting Policies, Judgments and Estimates
Capital Expenditures
Alternative Performance (NON-IFRS) Measures
Disclosure Controls and Procedures and Internal Control over Financial Reporting
Notes and Cautionary Statements
Ero Copper Corp. December 31, 2023 MD&A


MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) has been prepared as at March 7, 2024 and should be read in conjunction with the audited consolidated financial statements of Ero Copper Corp. (“Ero”, the “Company”, or “we”) as at, and for the year ended December 31, 2023, and related notes thereto, which are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”). All references in this MD&A to “Q4 2023” and “Q4 2022” are to the three months ended December 31, 2023 and December 31, 2022, respectively, and all references to "Fiscal 2023" and "Fiscal 2022" are to the years ended December 31, 2023 and December 31, 2022, respectively. All dollar amounts are expressed in United States (“US”) dollars and tabular amounts are expressed in thousands of US dollars, unless otherwise indicated. References to “$”, “US$”, “dollars”, or “USD” are to US dollars, references to “C$” are to Canadian dollars, and references to “R$” or “BRL” are to Brazilian Reais.

This MD&A refers to various alternative performance (Non-IFRS) measures, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, realized copper price, gold C1 cash cost, gold all-in sustaining cost (“AISC”), realized gold price, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share attributable to owners of the Company, net (cash) debt, working capital and available liquidity. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" for a discussion of non-IFRS measures.

This MD&A contains “forward‐looking statements” that are subject to risk factors set out in a cautionary note contained at the end of this MD&A. The Company cannot assure investors that such statements will prove to be accurate, and actual results and future events may differ materially from those anticipated in such statements. The results for the periods presented are not necessarily indicative of the results that may be expected for any future period. Investors are cautioned not to place undue reliance on such forward-looking statements. All information contained in this MD&A is current and has been approved by the Board of Directors of the Company (the “Board”) as of March 7, 2024, unless otherwise stated.

BUSINESS OVERVIEW

Ero is a high-margin, high-growth, low carbon-intensity copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"), held indirectly through its wholly-owned subsidiary, Ero Brasil Participaçoes Ltda.. MCSA is the 100% owner of the Company's Caraíba Operations, which are located in the Curaçá Valley, Bahia State, Brazil, and the Tucumã Project, an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations, comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Project, can be found on the Company's website (www.erocopper.com), on SEDAR+ (www.sedarplus.ca), and on EDGAR (www.sec.gov). The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO”.
Ero Copper Corp. December 31, 2023 MD&A | Page 1


HIGHLIGHTS

2023 - Q42023 - Q32022 - Q420232022
Operating Information
Copper (Caraíba Operations)
Ore Processed (tonnes)812,202 806,096 745,850 3,231,667 2,864,230 
Grade (% Cu)1.59 1.46 1.84 1.49 1.76 
Cu Production (tonnes)11,760 10,766 12,664 43,857 46,371 
Cu Production (lbs)25,926,281 23,734,026 27,918,071 96,687,638 102,229,718 
Cu Sold in Concentrate (tonnes)11,429 10,090 13,301 42,595 46,816 
Cu Sold in Concentrate (lbs)25,196,731 22,243,586 29,323,118 93,905,643 103,211,464 
Cu C1 Cash Cost(1)(2)
$1.75 $1.92 $1.59 $1.80 $1.55 
Gold (Xavantina Operations)
Ore Processed (tonnes)34,416 31,446 39,715 136,002 189,743 
Grade (g / tonne)17.18 18.72 10.17 15.13 7.61 
Au Production (oz)16,867 17,579 11,786 59,222 42,669 
Au C1 Cash Cost(1)
$413 $371 $445 $422 $560 
Au AISC(1)
$991 $844 $1,096 $957 $1,124 
Financial information ($ in millions, except per share amounts)
Revenues$116.4 $105.2 $116.7 $427.5 $426.4 
Gross profit 41.9 35.5 52.7 156.8 187.2 
EBITDA(1)
73.7 28.3 53.6 208.7 208.3 
Adjusted EBITDA(1)
50.3 42.9 53.2 183.5 198.3 
Cash flow from operations
49.4 41.9 34.0 163.1 143.4 
Net income
37.1 2.8 22.5 94.3 103.1 
Net income attributable to owners of the Company
36.5 2.5 22.2 92.8 101.8 
- Per share (basic)0.37 0.03 0.24 0.99 1.12 
- Per share (diluted)0.37 0.03 0.24 0.98 1.10 
Adjusted net income attributable to owners of the Company(1)
20.7 17.3 22.2 82.8 83.5 
- Per share (basic)0.21 0.19 0.24 0.88 0.92 
- Per share (diluted)0.21 0.18 0.24 0.87 0.91 
Cash, cash equivalents and short-term investments111.7 87.6 317.4 111.7 317.4 
Working capital(1)
25.7 32.8 263.3 25.7 263.3 
Available liquidity(1)
261.7 237.6 392.4 261.7 392.4 
Net debt(1)
314.5 331.8 100.7 314.5 100.7 

(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
(2) Copper C1 cash cost including foreign exchange hedges was $1.59 in Q4 2023 (Q4 2022 - $1.59) and $1.68 in Fiscal 2023 (2022 - $1.67).
Ero Copper Corp. December 31, 2023 MD&A | Page 2


Fourth Quarter and Full-Year 2023 Highlights

Quarterly and full-year operating and financial results reflect continued execution of the Company's organic growth strategy
The Caraíba Operations produced 43,857 tonnes of copper in concentrate for the year, including 11,760 tonnes during Q4 2023
Mill throughput volumes increased 12.8% year-on-year to over 3.2 million tonnes
Processed copper grades and metallurgical recoveries were in-line with expectations, averaging 1.49% and 91.4%, respectively, for the year
Although the Caraíba mill expansion design capacity was achieved near year-end, copper production was impacted by approximately one week of additional unplanned downtime related to the integration of the expansion circuit
Copper C1 cash costs(1) for the fourth quarter and full year were $1.75 and $1.80, respectively, per pound produced. Including the benefit of realized gains on designated foreign exchange hedges, fourth quarter and full-year copper C1 cash costs(1) were $1.59 and $1.68, respectively
The Xavantina Operations delivered fourth quarter gold production of 16,867 ounces, resulting in record full-year gold production of 59,222 ounces
Processed gold grades increased 98.8% to average 15.13 grams per tonne ("gpt") for the year, more than offsetting lower year-on-year mill throughput volumes
Gold C1 cash costs(1) and AISC(1) for the fourth quarter were $413 and $991, respectively, bringing full-year gold C1 cash costs(1) and AISC(1) to $422 and $957, respectively
Fourth quarter and full-year financial results reflect the continued execution of the Company's organic growth strategy, including completion of the NX60 initiative, which resulted in record full-year operating margins at the Xavantina Operations
Net income attributable to the owners of the Company for the quarter and year were $36.5 million ($0.37 per share on a diluted basis) and $92.8 million ($0.98 per share on a diluted basis), respectively
Adjusted net income attributable to the owners of the Company(1) for the quarter and year were $20.7 million ($0.21 per share on a diluted basis) and $82.8 million ($0.87 per share on a diluted basis), respectively
Fourth quarter and full-year adjusted EBITDA(1) were $50.3 million and $183.5 million, respectively
The Company's management team prudently elected to fortify its balance sheet with a bought deal equity financing in November 2023 in light of an uncertain macroeconomic environment. Net proceeds from the transaction of $104.3 million contributed to available liquidity at year-end of $261.7 million, including $111.7 million in cash and cash equivalents plus $150.0 million of undrawn availability under the Company's senior secured revolving credit facility


(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
Ero Copper Corp. December 31, 2023 MD&A | Page 3


Significant milestones achieved across key organic growth initiatives
The Company continued to make significant construction progress on its Tucumã Project, achieving over 90% physical completion as of February 2024. With production of copper concentrate on schedule to commence in H2 2024, the Company's transition from construction to commissioning is underway. Key milestones include:
Site fully energized in January 2024 following commissioning of the main substation and completion of the 16-kilometer power line tie-in with the national grid
Pre-stripping activities continue to track ahead of schedule with approximately 25,000 tonnes of sulphide ore stockpiled for process plant commissioning as at the end of February 2024
Mechanical completion and sub-component commissioning (lubrication, hydraulic, electrical, instrumentation and automation systems) continues to progress on schedule
Dry commissioning of the crushing circuit, encompassing the primary and secondary crushers as well as screening and conveyance systems, was completed in February 2024, approximately one month ahead of schedule
The total direct project capital estimate remains approximately $310 million
To date, the Tucumã Project has recorded no lost-time injuries with over three million hours of work completed since 2022
At the Caraíba Operations, the Company made important advancements on its Pilar 3.0 initiative during the quarter. This initiative aims to transform the Pilar Mine into a two-mine system capable of sustaining annual ore production levels of approximately 3.0 million tonnes.
The Caraíba mill expansion, which is expected to increase mill throughput capacity from 3.2 to 4.2 million tonnes per annum, was successfully completed in December 2023 with design capacity achieved by year-end
Following the completion of the head-frame, winders and supporting surface infrastructure, the main shaft sinking phase for the Pilar Mine's new external shaft commenced as planned in December 2023. The new external shaft component of the Pilar 3.0 initiative is fully contracted, and projected capital expenditures are within budget
The Xavantina Operations' NX60 initiative was successfully completed in 2023. As a result, the Company achieved record gold production for the year and expects to sustain annual gold production levels of 55,000 to 60,000 ounces moving forward.
Ero Copper Corp. December 31, 2023 MD&A | Page 4


REVIEW OF OPERATIONS
The Caraíba Operations

Copper
2023 - Q42023 - Q32022 - Q420232022
Ore mined (tonnes)886,271 794,102 802,466 3,341,121 2,851,516 
Ore processed (tonnes)812,202 806,096 745,850 3,231,667 2,864,230 
Grade (% Cu)1.59 1.46 1.84 1.49 1.76 
Recovery (%)91.0 91.6 92.3 91.4 91.9 
Cu Production (tonnes)11,760 10,766 12,664 43,857 46,371 
Cu Production (lbs)25,926,281 23,734,026 27,918,071 96,687,638 102,229,718 
Concentrate grade (% Cu)33.3 33.9 33.9 33.7 33.4 
Concentrate sales (tonnes)34,332 30,751 36,865 131,002 140,133 
Cu Sold in concentrate (tonnes)11,429 10,090 13,301 42,595 46,816 
Cu Sold in concentrate (lbs)25,196,731 22,243,586 29,323,118 93,905,643 103,211,464 
Realized copper price$3.52 $3.65 $3.54 $3.64 $3.60 
Copper C1 cash cost$1.75 $1.92 $1.59 $1.80 $1.55 
Copper C1 cash cost including foreign exchange hedges$1.59 $1.77 $1.59 $1.68 $1.67 

The Caraíba Operations achieved strong quarterly copper production of 11,760 tonnes in concentrate, bringing full-year copper production to 43,857 tonnes in concentrate. Higher processed tonnage and copper grades during the quarter resulted in a 9.2% increase in copper production compared to Q3 2023 and contributed to a 8.9% decrease in copper C1 cash costs. Including realized gains on designated foreign exchange hedges, the quarter-on-quarter improvement in unit copper C1 cash costs was 10.2%.

For the full year, mill throughput volumes increased 12.8%, helping to mitigate the impact of a planned decrease in mined and processed copper grades in 2023 compared to 2022. Despite this increase in processed tonnage, copper production decreased 5.4% year-on-year. Moreover, the strengthening of the BRL against the U.S. dollar, in comparison to 2022, contributed to a 16.1% rise in copper C1 cash costs for the year. However, after accounting for realized gains from designated foreign exchange hedges, the overall increase in full-year copper C1 cash costs was a marginal 0.6%.

Tonnes of ore mined in Q4 2023 included:
Pilar: 471,695 tonnes grading 1.76% copper (vs. 456,444 tonnes at 1.48% copper in Q3 2023)
Vermelhos: 248,349 tonnes at 1.59% copper (vs. 222,102 tonnes at 1.88% copper in Q3 2023)
Surubim: 166,227 tonnes at 0.68% copper (vs. 115,556 tonnes at 0.71% copper in Q3 2023)

Ero Copper Corp. December 31, 2023 MD&A | Page 5


For the full year, tonnes of ore mined included:
Pilar: 1,870,330 tonnes grading 1.56% copper (vs. 1,628,110 tonnes at 1.76% copper in 2022)
Vermelhos: 902,643 tonnes at 1.71% copper (vs. 901,306 tonnes at 2.09% copper in 2022)
Surubim: 568,148 tonnes at 0.72% copper (vs. 322,100 tonnes at 0.60% copper in 2022)

Contributions from the three mines resulted in total ore mined during the quarter of 886,271 tonnes grading 1.51% copper (vs. 794,102 tonnes at 1.48% copper in Q3 2023). For the full year, total ore mined was 3,341,121 tonnes grading 1.46% copper (vs. 2,851,516 tonnes at 1.73% copper in 2022).

The Caraíba Operations are expected to produce 42,000 to 47,000 tonnes of copper in concentrate in 2024, with higher mill throughput volumes expected to offset a planned decrease in mined and processed copper grades. Copper production levels are expected to be lowest in Q1 2024 and equally weighted between H1 and H2 of 2024.

The Company's full-year copper C1 cash cost guidance range is $1.80 to $2.00. This range assumes an exchange rate of 5.00 BRL per U.S. dollar and 100% of copper concentrate sales to international customers. For more information on updates relative to previous 2024 C1 cash cost projections, please see the section below titled "2024 Guidance".

Exploration activities during Q4 2023 at the Caraíba Operations continued to focus on advancing the Company's full-year exploration objectives of (i) delineating extensions of nickel mineralization identified within the Umburana system, (ii) drill testing regional nickel and copper targets in the Vermelhos district, and (iii) extending high-grade mineralization within the upper levels of the Pilar Mine and at the Vermelhos Mine.

The Xavantina Operations

Gold
2023 - Q42023 - Q32022 - Q420232022
Ore mined (tonnes)34,417 31,277 39,755 135,982 189,783 
Ore processed (tonnes)34,416 31,446 39,715 136,002 189,743 
Head grade (grams per tonne Au)17.18 18.72 10.17 15.13 7.61 
Recovery (%)88.7 92.9 90.7 89.5 92.0 
Gold ounces produced (oz)16,867 17,579 11,786 59,222 42,669 
Silver ounces produced (oz)9,907 10,994 7,050 37,674 27,885 
Gold sold (oz)18,479 15,457 10,583 57,949 41,951 
Silver sold (oz)9,618 10,296 7,123 35,655 27,876 
Realized gold price(1)
$1,820 $1,902 $1,750 $1,867 $1,807 
Gold C1 cash cost$413 $371 $445 $422 $560 
Gold AISC$991 $844 $1,096 $957 $1,124 
(1)    Realized Au price includes the effect of ounces sold under the stream arrangement with Royal Gold. See "Realized Gold Price" section of "Non-IFRS Measures" for detail.

Ero Copper Corp. December 31, 2023 MD&A | Page 6


The Xavantina Operations delivered record 2023 gold production of 59,222 ounces, with Q4 2023 contributing 16,867 ounces. Gold production remained elevated during the quarter due to a 9.4% increase in processed tonnage compared to Q3 2023 as well as a continuation of strong mined and processed gold grades. As a result, gold C1 cash costs remained near record low levels at $413 for the quarter, while gold AISC was $991.

For the full year, gold production increased 38.8% compared to 2022, reflecting the successful completion of the NX60 initiative. Consequently, the Xavantina Operations reported record-low full-year gold C1 cash costs of $422 as well as gold AISC of $957.

The Xavantina Operations are expected to produce 55,000 to 60,000 ounces of gold in 2024 with higher mill throughput levels expected to offset lower mined and processed gold grades. The Company anticipates production to be slightly weighted towards H1 2024 with processed gold grades and production expected to be highest in Q1 2024.

Consequently, gold C1 cash costs are projected to be lowest in Q1 2024, with full-year C1 cash costs expected to average between $550 and $650. The gold AISC guidance range for 2024 is $1,050 to $1,150.

Exploration activities at the Xavantina Operations during the quarter continued to focused on testing the down plunge extension of the Santo Antônio vein at depth as well as drill testing the ENE-strike extension of the Xavantina vein system and other regional parallel vein systems.

2024 Guidance
The Company's 2024 production guidance reflects the ongoing execution of its organic growth strategy, including the completion of the Xavantina Operations' NX60 initiative as well as the anticipated completion of the Tucumã Project, which remains on track to commence production in H2 2024. As a result, the Company expects to deliver consolidated copper production of 59,000 to 72,000 tonnes in concentrate and gold production of 55,000 to 60,000 ounces.

The Company's 2024 copper C1 cash cost guidance on a consolidated basis is $1.50 to $1.75. This range incorporates several key updates relative to previous 2024 C1 cash cost projections:
The foreign exchange rate has been adjusted from 5.30 to 5.00 BRL per U.S. Dollar, reflecting the BRL's continued strength
Guidance includes higher concentrate treatment and refining charges based on Q4 2023 levels, which have shown a favorable downward trend year-to-date
Consumable cost assumptions have been refreshed higher to align with consumable pricing observed in Q4 2023
The Company has assumed the Caraíba Operations will export 100% of its copper concentrate in 2024, up from the 50% previously assumed

Furthermore, in light of changes to the Caraíba Operations' copper concentrate sales channels, the Company has updated its copper C1 cash cost calculation methodology(1). This impact of this change on copper C1 cash costs will be offset by an equal increase in reported realized copper prices.

At the Xavantina Operations, the gold C1 cash cost guidance range of $550 to $650 reflects improved fixed cost efficiencies driven by higher expected gold production, partially offsetting the impact of planned decreases to mined and processed gold grades. The gold AISC guidance range for 2024 is $1,050 to $1,150.
(1)     Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.
Ero Copper Corp. December 31, 2023 MD&A | Page 7


2024 Production and Cost Guidance

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.

Consolidated Copper Production (tonnes)
Caraíba Operations
42,000 - 47,000
Tucumã Operations
17,000 - 25,000
Total
59,000 - 72,000
Consolidated Copper C1 Cash Costs(1) Guidance
Caraíba Operations
$1.80 - $2.00
Tucumã Operations
$0.90 - $1.10
Total
$1.50 - $1.75
The Xavantina Operations
Au Production (ounces)
55,000 - 60,000
Gold C1 Cash Cost(1) Guidance
$550 - $650
Gold AISC(1) Guidance
$1,050 - $1,150

Note:    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 this MD&A for complete risk factors.
(1)     Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.


2024 Capital Expenditure Guidance

2024 capital expenditures are expected to decrease to a range of $299 to $349 million due to the anticipated completion of the Tucumã Project, which is on track to commence production in the second half of the year. As a result, capital spend is expected to be weighted towards the first half of 2024.

The Company's capital expenditure guidance includes an estimated $30 to $40 million allocated to consolidated exploration programs. This allocation includes approximately $20 million designated for drilling activities at the Caraíba Operations, including expenditures related to the Curaçá Valley nickel exploration program. Additionally, the Company has budgeted approximately $6 million for the first phase of work at the Furnas Project.

The 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 in the table below are in USD millions.
Ero Copper Corp. December 31, 2023 MD&A | Page 8



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, Tucumã Project
$71 - $86
Xavantina Operations
Growth
$3 - $5
Sustaining
$15 - $18
Total, Xavantina Operations
$18 - $23
Consolidated Exploration Programs
$30 - $40
Company Total
Growth
$148 - $170
Capitalized Ramp-Up Costs
$4 - $6
Sustaining
$117 - $133
Exploration
$30 - $40
Total, Company
$299 - $349

Ero Copper Corp. December 31, 2023 MD&A | Page 9


REVIEW OF FINANCIAL RESULTS

The following table provides a summary of the financial results of the Company for Q4 2023 and Q4 2022. Tabular amounts are in thousands of US dollars, except share and per share amounts.

Three months ended December 31,
Notes20232022
Revenue1$116,414 $116,667 
Cost of sales2(74,560)(63,953)
Gross profit41,854 52,714 
Expenses
General and administrative3(12,160)(14,049)
Share-based compensation(477)(4,123)
Income before the undernoted
29,217 34,542 
Finance income1,989 5,041 
Finance expense4(5,284)(12,290)
Foreign exchange gain
524,871 4,569 
Other expenses
(5,326)(1,850)
Income before income taxes
45,467 30,012 
Income tax expense
Current (6,833)(7,146)
Deferred (1,582)(394)
6(8,415)(7,540)
Net income for the period
$37,052 $22,472 
Other comprehensive gain
Foreign currency translation gain
726,074 23,398 
Comprehensive income
$63,126 $45,870 
Net income per share attributable to owners of the Company
Basic$0.37 $0.24 
Diluted$0.37 $0.24 
Weighted average number of common shares outstanding
Basic98,099,791 91,522,358 
Diluted98,482,755 92,551,916 



Ero Copper Corp. December 31, 2023 MD&A | Page 10


Notes:

1.    Revenues from copper sales in Q4 2023 was $83.2 million (Q4 2022 - $98.3 million) on sale of 25.2 million lbs of copper (Q4 2022 - 29.3 million lbs) at an average realized price of $3.52 (Q4 2022 - $3.54) per lb. The decrease in copper revenues was primarily attributed to less copper sold, as production and head grades were lower compared to the same quarter of the prior year due to mining sequence.

Revenues from gold sales in Q4 2023 was $33.2 million (Q4 2022 - $18.4 million) on sale of 18,479 ounces of gold (Q4 2022 - 10,583 ounces) at an average realized price of $1,820 per ounce (Q4 2022 - $1,750 per ounce). The increase in gold revenues was attributable to both higher realized gold price and an increase in sales volume, as production and head grades increased significantly compared to the same quarter of the prior year.

2.    Cost of sales for Q4 2023 from copper sales was $60.2 million (Q4 2022 - $55.5 million) which primarily comprised of $17.8 million (Q4 2022 - $12.8 million) in depreciation and depletion, $13.7 million (Q4 2022 - $11.5 million) in salaries and benefits, $10.2 million (Q4 2022 - $10.0 million) in materials and consumables, $7.9 million (Q4 2022 - $6.7 million) in maintenance costs, $6.5 million (Q4 2022 - $8.0 million) in contracted services, $2.7 million (Q4 2022 - $2.6 million) in utilities, and $2.6 million (Q4 2022 - $2.6 million) in sales expenses, partially offset by a $1.4 million increase (Q4 2022 - $0.8 million decrease) in inventories. The increase in cost of sales in Q4 2023 as compared to Q4 2022 was primarily attributable to a 9% increase in tonnes processed, as well as higher depreciation and depletion due to overall higher depletable asset base, and higher labour costs from wage and other benefit increases resulting from new union contracts. Lower grades of ore processed also resulted in an increase in the cost per pound sold.

Cost of sales for Q4 2023 from gold sales was $14.4 million (Q4 2022 - $8.5 million) which primarily comprised of $6.7 million (Q4 2022 - $3.5 million) in depreciation and depletion, $2.6 million (Q4 2022 - $1.6 million) in salaries and benefits, $1.6 million (Q4 2022 - $1.5 million) in contracted services, $1.7 million (Q4 2022 - $1.4 million) in materials and consumables, $0.7 million (Q4 2022 - $0.4 million) in maintenance costs, and $0.6 million (Q4 2022 - $0.5 million) in utilities. The increase in cost of sales as compared to Q4 2022 was primarily due to higher depreciation and depletion attributed to an increase in production as well as depreciable asset base. These increases were more than offset by the 68% increase on grades of ore mined which reduced the cost per ounce sold.

3.    General and administrative expenses for Q4 2023 was primarily comprised of $5.4 million (Q4 2022 - $6.3 million) in salaries and consulting fees, $2.5 million (Q4 2022 - $2.5 million) in office and administration expenses, $2.5 million (Q4 2022 - $3.3 million) in incentive payments, $0.5 million (Q4 2022 - $0.7 million) in accounting and legal costs, and $0.9 million (Q4 2022 - $1.2 million) in other costs. The decrease in general and administrative expenses was mainly attributed to decreases in incentive payments and consulting fees.

4.    Finance expense for Q4 2023 was $5.3 million (Q4 2022 - $12.3 million) and is primarily comprised of interest on loans and borrowings of $0.1 million (Q4 2022 - $5.2 million), accretion of deferred revenue of $0.7 million (Q4 2022 - $0.8 million), accretion of asset retirement obligations of $0.7 million (Q4 2022 - $0.5 million), lease interest of $0.6 million (Q4 2022 - $0.2 million), and other finance expense of $3.2 million (Q4 2022 - $5.5 million). In addition, $7.0 million (Q4 2022 - $1.9 million) in interest was capitalized to projects in progress. The overall decrease in finance expense was attributable to higher interest expense being capitalized as a result of higher capital expenditures on construction projects as compared to the same quarter in the prior year, partially offset by a credit loss provision recognized on accounts and note receivable.

5.    Foreign exchange gain for Q4 2023 was $24.9 million (Q4 2022 - $4.6 million gain). This amount is primarily comprised of foreign exchange gain on USD denominated debt of $11.2 million (Q4 2022 - $1.0 million gain) in MCSA for which the functional currency is the BRL, unrealized foreign exchange gain on derivative contracts of $9.9 million (Q4 2022 - $3.0 million gain), and realized foreign exchange gain on derivative contracts of $4.2 million (Q4 2022 - $0.1 million gain), partially offset by other foreign exchange losses of $0.4 million (Q4 2022 - $0.5 million gains). The unrealized foreign exchange gain on USD denominated debt and on derivative contracts was a result of the strengthening of the BRL against the USD during the period.

6.    In Q4 2023, the Company recognized $8.4 million in income tax expense (Q4 2022 - tax expense of $7.5 million). The increase in tax expense was primarily a result of an increase in income before taxes as compared to the same quarter of the prior year.

7.    The foreign currency translation gain is a result of a fluctuation of the BRL against the USD during Q4 2023, which weakened from approximately 5.01 BRL per US dollar at the beginning of Q4 2023 to approximately 4.84 BRL per US dollar by the end of the quarter, when translating the net assets of the Company’s Brazilian subsidiaries to USD for presentation in the Company’s consolidated financial statements.
Ero Copper Corp. December 31, 2023 MD&A | Page 11


The following table provides a summary of the financial results of the Company for Fiscal 2023 and 2022. Tabular amounts are in thousands of US dollars, except share and per share amounts.

Year ended December 31,
Notes202320222021
Revenue1$427,480 $426,392 $489,915 
Cost of sales2(270,635)(239,217)(171,057)
Gross profit156,845 187,175 318,858 
Expenses
General and administrative3(52,429)(49,459)(38,846)
Share-based compensation(9,218)(7,931)(7,848)
Income before the undernoted
95,198 129,785 272,164 
Finance income12,465 10,295 2,991 
Finance expense4(25,822)(33,223)(12,159)
Foreign exchange gain
534,612 19,910 (21,968)
NX Gold stream transaction fees — (1,219)
Other expenses
(4,102)(384)(2,889)
Income before income taxes
112,351 126,383 236,920 
Income tax expense
Current (15,992)(15,043)(22,428)
Deferred (2,055)(8,273)(11,860)
6(18,047)(23,316)(34,288)
Net income for the period
$94,304 $103,067 $202,632 
Other comprehensive gain
Foreign currency translation gain
752,656 29,897 (24,252)
Comprehensive income
$146,960 $132,964 $178,380 
Net income per share attributable to owners of the Company
Basic$0.99 $1.12 $2.27 
Diluted$0.98 $1.10 $2.21 
Weighted average number of common shares outstanding
Basic94,111,548 90,789,925 88,602,367 
Diluted94,896,334 92,170,656 90,963,452 
Ero Copper Corp. December 31, 2023 MD&A | Page 12


Notes:

1.    Revenues from copper sales in Fiscal 2023 was $320.6 million (Fiscal 2022 - $351.4 million), which included the sale of 93.9 million lbs of copper compared to 103.2 million lbs of copper for Fiscal 2022. The decrease in revenues was primarily attributed to less copper sold. Revenue in the prior year also included $6.0 million of copper concentrates acquired from one of the Company's customers to settle accounts receivables in arrears and sold to a different customer.

Revenues from gold sales in Fiscal 2023 was $106.9 million (Fiscal 2022 - $75.0 million), which included the sale of 57,949 ounces of gold at a realized price of $1,867 per ounce, compared to 41,951 ounces of gold sold at a realized price of $1,807 per ounce in for Fiscal 2022. The increase in revenues was primarily attributable to higher sales volume and gold prices compared to the prior year.

2.    Cost of sales for Fiscal 2023 from copper sales was $224.2 million (Fiscal 2022 - $202.3 million) which primarily consisted of $62.0 million (Fiscal 2022 - $47.1 million) in depreciation and depletion, $51.4 million (Fiscal 2022 - $42.2 million) in salaries and benefits, $38.1 million (Fiscal 2022 - $36.2 million) in materials and consumables, $26.9 million -(Fiscal 2022 - $26.3 million) in contracted services, $28.9 million (Fiscal 2022 - $24.4 million) in maintenance costs, $11.2 million (Fiscal 2022 - $10.7 million) in utilities, and $9.0 million (Fiscal 2022 - $8.9 million) in sales expenses. The increase in cost of sales was primarily attributed to a 13% increase in tonnes processed, as well as higher depreciation and depletion due to overall higher depletable asset base, and higher labour costs from wage and other benefit increases resulting from new union contracts. Lower grades of ore processed also resulted in an increase in the cost per pound sold.

Cost of sales for
Fiscal 2023 from gold sales was $46.5 million (Fiscal 2022- $36.9 million) which primarily comprised of $19.5 million (Fiscal 2022 - $11.6 million) in depreciation and depletion, $9.2 million (Fiscal 2022 - $8.0 million) in salaries and benefits, $6.2 million (Fiscal 2022 - $6.1 million) in materials and consumables, $6.0 million (Fiscal 2022 - $6.3 million) in contracted services, $2.3 million (Fiscal 2022 - $2.4 million) in utilities, and $2.1 million (Fiscal 2022 - $2.0 million) in maintenance costs. Although tonnes processed decreased, there was an increase in cost of sales primarily attributed to higher depreciation and depletion as a result of an increase in production and depreciable asset base. These increases were more than offset by the 98% increase on grades of ore mined which reduced the cost per ounce sold.

3.    General and administrative expenses for Fiscal 2023 was primarily comprised of $29.3 million (Fiscal 2022 - $24.3 million) with respect to salaries and consulting fees, $9.0 million (Fiscal 2022 - $9.3 million) in office and administrative expenses, $6.9 million (Fiscal 2022 - $8.2 million) in incentive payments, $3.7 million (Fiscal 2022 - $4.9 million) in other general and administrative expenses, and $2.0 million (Fiscal 2022 - $2.4 million) in accounting and legal fees. The increase in general and administrative expenses in Fiscal 2023 was primarily attributable to increases in salaries and consulting fees to support overall growth in operations and various operational excellence initiatives.

4.    Finance expense for Fiscal 2023 was $25.8 million (Fiscal 2022 - $33.2 million) and was primarily comprised of interest on loans at the corporate head office of $11.3 million (Fiscal 2022 - $20.4 million), accretion of deferred revenue of $3.0 million (Fiscal 2022 - $3.4 million), accretion of the asset retirement obligations of $2.7 million (Fiscal 2022 - $2.2 million), lease interest of $1.5 million (Fiscal 2022 - $0.7 million), and other finance expense of $7.3 million (Fiscal 2022 - $6.5 million). In addition, $17.0 million (Fiscal 2022 - $6.2 million) in interest was capitalized to projects in progress. The overall decrease in finance expense was primarily attributable to higher interest capitalized as a result of capital expenditures incurred on various qualifying projects, partially offset by an increase in lease interest as well as expected credit loss on PMA's accounts and note receivable.

5.    Foreign exchange gain for Fiscal 2023 was $34.6 million (Fiscal 2022 - $19.9 million gain). This amount was primarily comprised of a foreign exchange gain on USD denominated debt of $18.7 million (Fiscal 2022 - $3.9 million gain) in MCSA for which the functional currency is the BRL, realized foreign exchange gain on derivative contracts of $11.4 million (Fiscal 2022 - $12.5 million loss), and a foreign exchange gain on unrealized derivative contracts of $7.6 million (Fiscal 2022 - $33.1 million gain), partially offset by other foreign exchange losses of $3.1 million (Fiscal 2022 - $4.6 million losses). The fluctuation in foreign exchange gains/losses were primarily a result of increased volatility of the USD/BRL foreign exchange rates. During Fiscal 2023, the BRL strengthened 7.8% against the USD.

6.    In Fiscal 2023, the Company recognized an $18.0 million income tax expense (Fiscal 2022 - $23.3 million), The decrease was primarily a result of a decrease in income before income taxes, partially offset by an increase in withholding tax on intercompany interest and dividends.

Ero Copper Corp. December 31, 2023 MD&A | Page 13


7.    The foreign currency translation income is a result of the strengthening of the BRL against the USD during Fiscal 2023 when translating the net assets of the Company’s Brazilian subsidiaries to USD for presentation in the Company’s consolidated financial statements.


SUMMARY OF QUARTERLY RESULTS

The following table presents selected financial information for each of the most recent eight quarters. Tabular amounts are in millions of US Dollars, except share and per share amounts.

Selected Financial Information
Dec. 31,(1)
Sep. 30,(2)
Jun. 30,(3)
Mar. 31,(4)
Dec. 31,(5)
Sep. 30,(6)
Jun. 30,(7)
Mar. 31,(8)
20232023202320232022202220222022
Revenue$116.4 $105.2 $104.9 $101.0 $116.7 $85.9 $114.9 $108.9 
Cost of sales
$(74.6)$(69.7)$(65.5)$(60.8)$(64.0)$(63.1)$(64.3)$(47.9)
Gross profit
$41.9 $35.5 $39.4 $40.1 $52.7 $22.8 $50.7 $61.0 
Net income for period
$37.1 $2.8 $29.9 $24.5 $22.5 $4.0 $24.1 $52.5 
Income per share attributable to the owners of the Company
- Basic$0.37 $0.03 $0.32 $0.26 $0.24 $0.04 $0.26 $0.58 
- Diluted$0.37 $0.03 $0.32 $0.26 $0.24 $0.04 $0.26 $0.57 
Weighted average number of common shares outstanding
- Basic98,099,791 93,311,434 92,685,916 92,294,045 91,522,358 90,845,229 90,539,647 90,238,008 
- Diluted98,482,755 94,009,268 93,643,447 93,218,281 92,551,916 91,797,437 91,850,321 92,050,104 

Notes:

1.During Q4 2023, the Company recognized net income of $37.1 million compared to $2.8 million in the preceding quarter. The increase was primarily attributable to foreign exchange gains of $24.9 million compared to foreign exchange losses of $13.9 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods.
2.During Q3 2023, the Company recognized net income of $2.8 million compared to $29.9 million in the preceding quarter. The decrease was primarily attributable to foreign exchange losses of $13.9 million compared to foreign exchange gain of $15.1 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods.

3.During Q2 2023, the Company recognized net income of $29.9 million compared to $24.5 million in the preceding quarter. The increase was primarily attributable to an increase in foreign exchange gain and the recognition of an unrealized gain in copper derivative contracts.
4.During Q1 2023, the Company recognized net income of $24.5 million compared to $22.5 million in the preceding quarter. The increase was primarily attributable to an increase in foreign exchange gain, a reduction in general and administrative expenses, and a reduction in finance expense. In the prior quarter, the Company recognized a $3.3 million expected credit loss provision.

5.During Q4 2022, the Company recognized net income of $22.5 million compared to $4.0 million in the preceding quarter. The increase was primarily attributable to a $29.9 million increase in gross profit as a result of 13% increase in copper production, partially offset by higher share-based payment expenses and a $3.3 million expected credit loss provision recognized in relation to payment arrangement with PMA.
Ero Copper Corp. December 31, 2023 MD&A | Page 14



6.During Q3 2022, the Company recognized net income of $4.0 million compared to $24.1 million in the preceding quarter. The decrease was primarily attributable to a $27.9 million decrease in gross profit as a result of 12% lower production, reduced copper and gold realized prices, and provisional pricing adjustments on copper concentrate sold in the prior quarter.

7.During Q2 2022, the Company recognized net income of $24.1 million compared to $52.5 million in the preceding quarter. The decrease was primarily attributable to volatility in foreign exchange gains or losses driven by the strengthening of the BRL against the USD in the quarter, which resulted in $3.3 million of foreign exchange losses compared to $18.7 million of foreign exchange gains in the preceding quarter and a $10.3 million decrease in gross profit as a result of reduced copper and gold realized prices and overall inflationary pressure on cost of sales. The increase in copper produced and sold was mostly offset by a provisional pricing adjustment.

8.During Q1 2022, the Company recognized net income of $52.5 million compared to $60.2 million in the preceding quarter. The decrease was primarily attributable to a $23.4 million decrease in gross profit as a result of reduced copper and gold sales volume, and overall inflationary pressure on cost of sales. Production and throughput for the quarter was adversely impacted by employee absenteeism due to COVID-19 and the seasonal influenza virus. The decrease in gross profit was partially offset by foreign exchange gains driven by the strengthening of the BRL against the USD in the quarter, which resulted in $18.7 million of foreign exchange gains compared to $4.4 million of foreign exchange losses in the preceding quarter.

LIQUIDITY, CAPITAL RESOURCES, AND CONTRACTUAL OBLIGATIONS

Liquidity

As at December 31, 2023, the Company held cash and cash equivalents of $111.7 million and available liquidity of $261.7 million. Cash and cash equivalents were primarily comprised of cash held with reputable financial institutions and are invested in highly liquid short-term investments with maturities of three months or less. The funds are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet its obligations.

Cash and cash equivalents have decreased by $66.0 million since December 31, 2022. The Company’s cash flows from operating, investing, and financing activities during 2023 are summarized as follows:

Cash used in investing activities of $308.2 million, including:
$447.2 million of additions to mineral property, plant and equipment;
$13.5 million of additions to exploration and evaluation assets; and
$40.0 million of short-term investment purchases;
net of:
$192.5 million in proceeds from short-term investments and interest received.

Partially offset by:

Cash from operating activities of $163.1 million, primarily consists of:
$208.7 million of EBITDA (see Non-IFRS Measures);
$9.6 million of derivative contract settlements; and
$2.4 million of additional advances from the NX Gold Precious Metal Purchase Agreement;
net of:
$36.8 million of unrealized foreign exchange gains;
Ero Copper Corp. December 31, 2023 MD&A | Page 15


$5.6 million of income taxes paid;
$3.3 million of provision settlements; and
$8.4 million of net change in non-cash working capital items.

Cash from financing activities of $77.8 million, primarily consists of:
$104.3 million of net proceeds from equity offering;
$14.9 million of new loans and borrowings, net of transaction costs; and
$11.2 million of proceeds from exercise of stock options.
net of:
$27.5 million of interest paid on loans and borrowings;
$11.9 million of lease payments; and
$7.8 million of principal repayments on loans and borrowings.

As at December 31, 2023, the Company had working capital of $25.7 million and available liquidity of $261.7 million.


Capital Resources

At December 31, 2023, the Company had available liquidity of $261.7 million, including $111.7 million in cash and cash equivalents and $150.0 million of undrawn availability under its senior secured revolving credit facility. Subsequent to December 31, 2023, the Company drew $20 million on the credit facility.

The Company’s primary sources of capital are comprised of cash from operations, and cash and cash equivalents on hand. The Company continuously monitors its liquidity position and capital structure and, based on changes in operations and economic conditions, may adjust such structure by issuing new common shares or new debt as necessary. Taking into consideration expected cash flow from existing operations and amounts available under its senior revolving credit facility of $130 million as of the date of this MD&A, management believes that the Company has sufficient working capital and available liquidity to fund its planned operations and activities, including the capital expenditures to complete the Tucumã Project, and other initiatives, for the foreseeable future.

In 2023, the senior credit facility was amended to increase its limit from $75.0 million to $150.0 million with maturity extended from March 2025 to December 2026 ("Amended Senior Credit Facility"). The Amended Senior Credit Facility bears interest on a sliding scale of SOFR plus an applicable margin of 2.00% to 4.50% depending on the Company's consolidated leverage ratio. Commitment fees for the undrawn portion of the Amended Senior Credit Facility is also based on a sliding scale ranging from 0.45% to 1.01%.

In relation to its loans and borrowings, the Company is required to comply with certain financial covenants. As of the date of the consolidated financial statements, the Company is in compliance with these covenants. The loan agreements also contain covenants that could restrict the ability of the Company and its subsidiaries, MCSA, Ero Gold, and NX Gold, to, among other things, incur additional indebtedness needed to fund its respective operations, pay dividends or make other distributions, make investments, create liens, sell or transfer assets or enter into transactions with affiliates. There are no other restrictions or externally imposed capital requirements of the Company.


Ero Copper Corp. December 31, 2023 MD&A | Page 16


Contractual Obligations and Commitments

The Company has a precious metals purchase agreement with RGLD Gold AG ("Royal Gold"), a wholly-owned subsidiary of Royal Gold, Inc., whereby the Company is obligated to sell a portion of its gold production from the Xavantina Operations at contract prices.

Refer to the "Liquidity Risk" section for further information on the Company's contractual obligations and commitments.

MANAGEMENT OF RISKS AND UNCERTAINTIES

The Company thoroughly examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, currency risk, commodity price risk and interest rate risk. Where material, these risks are reviewed and monitored by the Board.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The carrying amount of the financial assets below represents the maximum credit risk exposure as at December 31, 2023 and December 31, 2022:

December 31, 2023December 31, 2022
Cash and cash equivalents$111,738 $177,702 
Short-term investments 139,700 
Accounts receivable5,710 10,289 
Derivatives11,254 3,237 
Note receivable17,413 20,630 
Deposits and other assets8,472 3,985 
$154,587 $355,543 

The Company invests cash and cash equivalents and short-term investments with financial institutions that are financially sound based on their credit rating.

The Company’s exposure to credit risk associated with accounts receivable is influenced mainly by the individual characteristics of each customer.

In November 30, 2022, Paranapanema S/A ("PMA"), one of the Company's customers in Brazil, filed for bankruptcy protection. According to PMA, the action was attributed to working capital challenges following an operational halt at one of their facilities. Progress was noted in August 2023 when PMA and its creditors agreed on a judicial recovery plan, which subsequently received approval from the judicial recovery court in November 2023. As a preferred supplier to PMA, the Company has entered into a note receivable arrangement with PMA. The arrangement is excluded from the judicial recovery process and provides the Company with certain judicial guarantees. According to the note receivable
Ero Copper Corp. December 31, 2023 MD&A | Page 17


arrangement, repayment is structured over 24 monthly installments beginning in March 2024, with an annual interest rate equivalent to Brazil's CDI rate of approximately 11.65%.

At December 31, 2023, the gross amount of accounts and note receivable from PMA was $25.2 million (December 31, 2022 - $23.9 million). After adjusting for credit loss provision and present value discount of $7.7 million (December 31, 2022 - $3.3 million), the amortized cost of the note receivable at December 31, 2023 was $17.4 million (December 31, 2022 - $20.6 million), of which $8.3 million (December 31, 2022 - $10.2 million) was classified as current and $9.1 million (December 31, 2022 - $10.4 million) as non-current.


Liquidity risk

Liquidity risk is the risk associated with the difficulties that the Company may have meeting the obligations associated with financial liabilities that are settled with cash payments or with another financial asset. The Company's approach to liquidity management is to ensure as much as possible that sufficient liquidity exists to meet their maturity obligations on the expiration dates, under normal and stressful conditions, without causing unacceptable losses or with risk of undermining the normal operation of the Company.

The table below shows the Company's maturity of non-derivative financial liabilities on December 31, 2023:

Non-derivative financial liabilitiesCarrying
value
Contractual cash flowsUp to
12 months
1 - 2
years
3 - 5
years
More than
5 years
Loans and borrowings (including interest)$426,233 $593,991 $37,743 $34,468 $82,781 $438,999 
Accounts payable and accrued liabilities120,704 120,704 120,704 — — — 
Other non-current liabilities8,524 23,436 — 10,166 12,640 630 
Leases19,603 19,579 10,929 5,521 3,019 110 
Total$575,064 $757,710 $169,376 $50,155 $98,440 $439,739 

As at December 31, 2023, the Company has capital commitments, which is net of advances to suppliers, of $122.6 million through contracts and purchase orders which are expected to be incurred over a six-year period. In the normal course of operations, the Company may also enter into long-term contracts which can be cancelled with certain agreed customary notice periods without material penalties.

The Company also has derivative financial asset for foreign exchange collar contracts and copper derivative contracts whose notional amounts and maturity information are disclosed below under foreign exchange currency risk, interest rate risk, and price risk.





Ero Copper Corp. December 31, 2023 MD&A | Page 18



Foreign exchange currency risk

The Company’s subsidiaries in Brazil are exposed to exchange risks primarily related to the US dollar. In order to minimize currency mismatches, the Company monitors its cash flow projections considering future sales expectations indexed to US dollar variation in relation to the cash requirement to settle the existing financings.

The Company's exposure to foreign exchange currency risk at December 31, 2023 relates to $17.2 million (December 31, 2022 – $11.7 million) in loans and borrowings of MCSA denominated in US dollars and Euros. In addition, the Company is also exposed to foreign exchange currency risk at December 31, 2023 on $342.2 million of intercompany loan balances (December 31, 2022 - $148.2 million) which have contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at December 31, 2023 by 10% and 20%, would have increased (decreased) pre-tax net income by $35.8 million and $71.7 million, respectively. This analysis is based on the foreign currency exchange variation rate that the Company considered to be reasonably possible at the end of the year and excluding the impact of the derivatives below. The analysis assumes that all other variables, especially interest rates, are held constant.

The Company may use certain foreign exchange derivatives, including collars and forward contracts, to manage its foreign exchange risks. A summary of the Company's foreign exchange derivatives at December 31, 2023 is summarized as follows:

PurposeNotional AmountDenominationWeighted average floorWeighted average cap / forward priceMaturities
Operational costs$232.5 millionUSD/BRL4.965.38Jan 2024 - Dec 2024
Capital expenditures$144.5 millionUSD/BRL5.105.23Jan 2024 - Dec 2024
Total$377.0 millionUSD/BRL5.015.33Jan 2024 - Dec 2024

The aggregate fair value of the Company's foreign exchange derivatives was a net asset of $11.3 million (December 31, 2022 - asset of $3.2 million). The fair values of foreign exchange contracts were determined based on option pricing models, forward foreign exchange rates, and information provided by the counter party.

The change in fair value of foreign exchange collar contracts was a gain of $7.6 million for the year ended December 31, 2023 (a gain of $33.1 million for the year ended December 31, 2022), which has been recognized in foreign exchange gain.

In addition, during the year ended December 31, 2023, the Company recognized a realized gain of $11.4 million (realized loss of $12.5 million for the year ended December 31, 2022), respectively, related to the settlement of foreign currency forward collar contracts.

Interest rate risk

The Company is principally exposed to the variation in interest rates on loans and borrowings with variable rates of interest. Management reduces interest rate risk exposure by entering into loans and borrowings with fixed rates of interest or by entering into derivative instruments that fix the ultimate interest rate paid.
Ero Copper Corp. December 31, 2023 MD&A | Page 19



The Company is principally exposed to interest rate risk through Brazilian Real denominated bank loans of $2.4 million. Based on the Company’s net exposure at December 31, 2023, a 1% change in the variable rates would not materially impact its pre-tax annual net income.

Price risk

The Company may use derivatives, including forward contracts, collars and swap contracts, to manage commodity price risks.

At December 31, 2023, the Company had provisionally priced sales that are exposed to commodity price changes. Based on the Company’s net exposure at December 31, 2023, a 10% change in the price of copper would have changed $2.5 million.

At December 31, 2023, the Company has entered into zero-cost copper derivative contracts on 1,000 tonnes of copper per month from January 2024 to June 2024, representing approximately 25% of estimated production volumes over the period. As of December 31, 2023, the fair value of these contracts was a net liability of $0.6 million (December 31, 2022 - liability of $0.6 million). The fair value of copper collar contracts was determined based on option pricing models, forward copper price and information provided by the counter party.

During the year ended December 31, 2023, the Company recognized an unrealized loss of $0.1 million ($nil for the year ended December 31, 2022) and a realized loss of $1.8 million ($nil for the year ended December 31, 2022) in relation to its copper hedge derivatives in other income or loss.

For a discussion of additional risks applicable to the Company and its business and operations, including risks related to the Company’s foreign operations, the environment and legal proceedings, see “Risk Factors” in the Company’s AIF.


OTHER FINANCIAL INFORMATION

Off-Balance Sheet Arrangements

As at December 31, 2023, the Company had no material off-balance sheet arrangements.

Outstanding Share Data

As of March 7, 2024, the Company had 102,759,852 common shares issued and outstanding.


Ero Copper Corp. December 31, 2023 MD&A | Page 20



ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES

Critical Accounting Judgments and Estimates

The preparation of consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions about future events that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may differ from these estimates.

The Company’s material accounting policies and accounting estimates are contained in the Company’s consolidated financial statements for the year ended December 31, 2023. Judgements have been made in the determination of the functional currency of the Company and its subsidiaries and in the assessment of the probability of cash outflow related to legal claims and contingent liabilities. Certain of accounting policies, such as derivative instruments, deferred revenue, carrying amounts of mineral properties and associated mine closure and reclamation costs, provision for mine closure and reclamation costs, income tax including tax uncertainties, and expected credit losses involve critical accounting estimates. Certain of these estimates are dependent on mineral reserves and resource estimates. Changes in estimates of mineral reserves and resources could impact depreciation and depletion rates, asset carrying amounts and the provisions for mine closure and reclamation costs. The Company estimates its mineral reserves and resources based on information compiled by competent individuals. Estimates of mineral reserves and resources are used in the calculation of depreciation, depletion and determination, when applicable, of the recoverable amount of CGUs, and for forecasting the timing of reclamation and closure cost expenditures. There are numerous uncertainties inherent in estimating mineral reserves, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the estimation methodology, forecasted prices of commodities, exchange rates, production costs or recovery rates may change the economic status of mineral reserves and may, ultimately, result in changes in the mineral reserves.

Management continuously reviews its estimates, judgments and assumptions on an ongoing basis using the most current information available. Revisions to estimates are recognized prospectively.

Ero Copper Corp. December 31, 2023 MD&A | Page 21


CAPITAL EXPENDITURES

The following table presents capital expenditures at the Company’s operations on an accrual basis and are net of any sales and value-added taxes.
20232022
Caraíba Operations
Growth$148,808 $63,477 
Sustaining78,473 88,356 
Exploration30,408 34,786 
Deposit on Projects(8,523)22,524 
Total, Caraíba Operations
$249,166 $209,143 
Tucumã Project
Growth189,006 47,382 
Exploration813 6,108 
Deposit on Projects15,687 5,938 
Total, Tucumã Project
$205,506 $59,428 
Xavantina Operations
Growth2,944 3,248 
Sustaining16,251 14,487 
Exploration8,546 13,038 
Deposit on Projects(174)— 
Total, Xavantina Operations
$27,567 $30,773 
Corporate and Other
Sustaining933 — 
Exploration6,325 7,149 
Deposit on Projects4 
Total, Corporate and Other$7,262 $7,155 
Consolidated
Growth$340,758 114,107 
Sustaining95,657 102,843 
Exploration46,092 61,081 
Deposit on Projects6,994 28,468 
Total, Consolidated$489,501 $306,499 
Ero Copper Corp. December 31, 2023 MD&A | Page 22


ALTERNATIVE PERFORMANCE (NON-IFRS) MEASURES

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, realized copper price, gold C1 cash cost, gold AISC, realized gold price, 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. The tables below provide reconciliations of these non-IFRS measures to the most directly comparable IFRS measures as contained in the Company’s financial statements.

Unless otherwise noted, the non-IFRS measures presented below have been calculated on a consistent basis for the periods presented.

Copper C1 Cash Cost and Copper C1 Cash Cost including Foreign Exchange Hedges

Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges are non-IFRS performance measures used by the Company to manage and evaluate the performance of its copper mining operations.

Copper C1 cash cost is calculated as C1 cash costs divided by total pounds of copper produced during the period. C1 cash costs comprise the total cost of production, including expenses related to transportation, and treatment and refining charges. These costs are net of by-product credits, incentive payments and certain tax credits associated with sales invoiced to the Company's Brazilian customer.

Copper C1 cash cost including foreign exchange hedges is calculated as C1 cash costs, adjusted for realized gains or losses from its operational foreign exchange hedges, divided by total pounds of copper produced during the period. Although the Company does not apply hedge accounting in its consolidated financial statements and recognizes these contracts at fair value through profit or loss, the Company believes it appropriate to present cash costs including the impact of realized gains and losses as these contracts were entered into to mitigate the impact of changes in exchange rates.

In light of changes to the Caraíba Operations' copper concentrate sales channels, effective Q4 2023, freight parity charged by its customers is presented as part of treatment, refining and other costs within the calculation of copper C1 cash cost. This charge was previously presented as a reduction of realized copper price. The calculation of copper C1 cash cost for comparative periods have been adjusted to conform with the current methodology.

While copper C1 cash cost is widely reported in the mining industry as a performance benchmark, it does not have a standardized meaning and is disclosed as a supplement to IFRS measures.

The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.

Ero Copper Corp. December 31, 2023 MD&A | Page 23


Reconciliation:2023 - Q42023 - Q32022 - Q420232022
Cost of production
$39,790 $39,345 $40,067 $153,187 $146,292 
Add (less):
Transportation costs & other1,853 1,614 2,362 6,539 9,019 
Treatment, refining, and other7,332 6,574 9,989 28,323 36,156 
By-product credits(3,394)(3,022)(6,103)(12,930)(22,282)
Incentive payments(1,693)(1,609)(1,092)(5,668)(3,914)
Net change in inventory
1,434 2,835 (861)4,407 (6,040)
Foreign exchange translation and other20 (171)(47)(149)373 
C1 cash costs45,342 45,566 44,315 173,709 159,604 
(Gain) loss on foreign exchange hedges(4,185)(3,458)(78)(11,417)12,498 
C1 cash costs including foreign exchange hedges$41,157 $42,108 $44,237 $162,292 $172,102 

2023 - Q42023 - Q32022 - Q420232022
Costs
Mining
$26,646 $27,258 $26,433 $102,908 $94,086 
Processing8,177 8,362 8,033 30,736 30,155 
Indirect6,581 6,394 5,963 24,672 21,489 
Production costs41,404 42,014 40,429 158,316 145,730 
By-product credits(3,394)(3,022)(6,103)(12,930)(22,282)
Treatment, refining and other7,332 6,574 9,989 28,323 36,156 
C1 cash costs45,342 45,566 44,315 173,709 159,604 
(Gain) loss on foreign exchange hedges(4,185)$(3,458)$(78)(11,417)12,498 
C1 cash costs including foreign exchange hedges$41,157 $42,108 $44,237 $162,292 $172,102 

Ero Copper Corp. December 31, 2023 MD&A | Page 24


2023 - Q42023 - Q32022 - Q420232022
Costs per pound
Total copper produced (lb, 000)25,926 23,734 27,918 96,688 102,230 
Mining$1.03 $1.15 $0.95 $1.06 $0.92 
Processing$0.32 $0.35 $0.29 $0.32 $0.29 
Indirect$0.25 $0.27 $0.21 $0.26 $0.21 
By-product credits$(0.13)$(0.13)$(0.22)$(0.13)$(0.22)
Treatment, refining and other$0.28 $0.28 $0.36 $0.29 $0.35 
Copper C1 cash costs$1.75 $1.92 $1.59 $1.80 $1.55 
(Gain) loss on foreign exchange hedges$(0.16)$(0.15)$— $(0.12)$0.12 
Copper C1 cash costs including foreign exchange hedges$1.59 $1.77 $1.59 $1.68 $1.67 


Realized Copper Price

Realized copper price is a non-IFRS ratio that is calculated as gross copper revenue divided by pounds of copper sold during the period. Management believes measuring realized copper price enables investors to better understand performance based on the realized copper sales in each reporting period.

In light of changes to the Caraíba Operations' copper concentrate sales channels, effective Q4 2023, freight parity charged by its customers, previously presented as a reduction of realized copper price, will be reclassified as part of copper C1 cash costs. In addition, royalty taxes are added back to reflect gross revenue to derive realized copper price. The calculation of realized copper price for comparative periods have been adjusted to conform with the current methodology.

The following table provides a calculation of realized copper price and a reconciliation to copper segment .

Reconciliation:2023 - Q42023 - Q32022 - Q420232022
Copper revenue ($000s)(1)
$83,237 $76,136 $98,315 $320,603 $351,404 
less: by-product credits(3,394)(3,022)(6,103)(12,930)(22,282)
Net copper revenue79,843 73,114 92,212 307,673 329,122 
add: treatment, refining and other7,332 6,574 9,989 28,323 36,156 
add: royalty taxes1,501 1,418 1,566 6,049 6,572 
Gross copper revenue88,676 81,106 103,767 342,045 371,850 
Cu Sold in concentrate (lbs)25,197 22,244 29,323 93,906 103,211 
Realized copper price $3.52 $3.65 $3.54 $3.64 $3.60 

(1) Copper revenue includes provisional price and volume adjustments
Ero Copper Corp. December 31, 2023 MD&A | Page 25



Gold C1 Cash Cost and Gold AISC

Gold C1 cash cost is a non-IFRS performance measure used by the Company to manage and evaluate the operating performance of its gold mining segment and is calculated as C1 cash costs divided by total ounces of gold produced during the period. C1 cash cost includes total cost of production, net of by-product credits and incentive payments. Gold C1 cash cost is widely reported in the mining industry as benchmarks for performance but does not have a standardized meaning and is disclosed in supplemental to IFRS measures.

Gold AISC is an extension of gold C1 cash cost discussed above and is also a key performance measure used by management to evaluate operating performance of its gold mining segment. Gold AISC is calculated as AISC divided by total ounces of gold produced during the period. AISC includes C1 cash costs, site general and administrative costs, accretion of mine closure and rehabilitation provision, sustaining capital expenditures, sustaining leases, and royalties and production taxes. Gold AISC is widely reported in the mining industry as benchmarks for performance but does not have a standardized meaning and is disclosed in supplement to IFRS measures.


The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure.

Reconciliation:
2023 - Q42023 - Q32022 - Q420232022
Cost of production
$7,122 $6,323 $4,834 $25,209 $24,768 
Add (less):
Incentive payments(386)(320)(167)(1,424)(1,117)
Net change in inventory65 213 258 862 (119)
By-product credits(248)(240)(199)(827)(613)
Smelting and refining
113 101 61 353 234 
Foreign exchange translation and other
296 453 462 806 742 
C1 cash costs$6,962 $6,530 $5,249 $24,979 $23,895 
Site general and administrative1,492 1,304 1,196 5,366 3,648 
Accretion of mine closure and rehabilitation provision111 112 106 439 436 
Sustaining capital expenditure5,499 4,258 4,547 16,300 14,638 
Sustaining lease payments1,861 1,832 1,559 7,093 4,311 
Royalties and production taxes785 808 262 2,487 1,041 
AISC$16,710 $14,844 $12,919 $56,664 $47,969 
Ero Copper Corp. December 31, 2023 MD&A | Page 26


2023 - Q42023 - Q32022 - Q420232022
Costs
Mining
$3,430 $3,140 $2,311 $12,154 $12,529 
Processing2,315 2,165 2,067 8,433 7,917 
Indirect1,352 1,364 1,009 4,866 3,828 
Production costs7,097 6,669 5,387 25,453 24,274 
Smelting and refining costs
113 101 61 353 234 
By-product credits(248)(240)(199)(827)(613)
C1 cash costs$6,962 $6,530 $5,249 $24,979 $23,895 
Site general and administrative1,492 1,304 1,196 5,366 3,648 
Accretion of mine closure and rehabilitation provision111 112 106 439 436 
Sustaining capital expenditure5,499 4,258 4,547 16,300 14,638 
Sustaining leases1,861 1,832 1,559 7,093 4,311 
Royalties and production taxes785 808 262 2,487 1,041 
AISC$16,710 $14,844 $12,919 $56,664 $47,969 
Costs per ounce
Total gold produced (ounces)16,867 17,579 11,786 59,222 42,669 
Mining$203 $179 $196 $205 $294 
Processing$137 $123 $175 $142 $186 
Indirect$80 $78 $86 $82 $90 
Smelting and refining$7 $$$6 $
By-product credits$(14)$(15)$(17)$(13)$(15)
Gold C1 cash cost$413 $371 $445 $422 $560 
Gold AISC$991 $844 $1,096 $957 $1,124 

Ero Copper Corp. December 31, 2023 MD&A | Page 27


Realized Gold Price

Realized gold price is a non-IFRS ratio that is calculated as gross gold revenue divided by ounces of gold sold during the period. Management believes measuring realized gold price enables investors to better understand performance based on the realized gold sales in each reporting period. The following table provides a calculation of realized gold price and a reconciliation to gold segment revenues, its most directly comparable IFRS measure.

(in '000s except for ounces and price per ounce)2023 - Q42023 - Q32022 - Q420232022
NX Gold revenue
$33,176 $29,046 $18,352 $106,877 $74,988 
less: by-product credits (248)(240)(199)(827)(613)
Gold revenue, net $32,928 $28,806 $18,153 $106,050 $74,375 
add: smelting, refining, and other charges713 588 365 2,165 1,443 
Gold revenue, gross$33,641 $29,394 $18,518 $108,215 $75,818 
- spot (cash)$28,205 $23,003 $14,391 $85,724 $57,416 
- stream (cash)$1,613 $1,383 $785 $5,409 $3,621 
- stream (amortization of deferred revenue)$3,823 $5,008 $3,342 $17,082 $14,781 
Total gold ounces sold18,479 15,457 10,583 57,949 41,951 
- spot14,332 11,867 8,321 43,944 31,869 
- stream4,147 3,590 2,262 14,005 10,082 
Realized gold price (per ounce)$1,820 $1,902 $1,750 $1,867 $1,807 
- spot$1,968 $1,938 $1,729 $1,951 $1,802 
- stream (cash + amortization of deferred revenue)$1,311 $1,780 $1,824 $1,606 $1,825 
- cash (spot cash + stream cash)$1,614 $1,578 $1,434 $1,573 $1,455 

Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and Adjusted EBITDA

EBITDA and adjusted EBITDA are non-IFRS performance measures used by management to evaluate its debt service capacity and performance of its operations. EBITDA represents earnings before finance expense, finance income, income taxes, depreciation and amortization. Adjusted EBITDA is EBITDA before the pre-tax effect of adjustments for non-cash and/or non-recurring items required in determination of EBITDA for covenant calculation purposes.
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.

Ero Copper Corp. December 31, 2023 MD&A | Page 28


Reconciliation:
2023 - Q42023 - Q32022 - Q420232022
Net Income
$37,052 $2,811 $22,472 $94,304 $103,067 
Adjustments:
Finance expense
5,284 8,017 12,290 25,822 33,223 
Finance income
(1,989)(2,976)(5,041)(12,465)(10,295)
Income tax expense (recovery)
8,415 (807)7,540 18,047 23,316 
Amortization and depreciation
24,980 21,299 16,361 83,024 58,969 
EBITDA(1)
$73,742 $28,344 $53,622 $208,732 $208,280 
Foreign exchange (gain) loss
(24,871)13,937 (4,569)(34,612)(19,910)
Share based compensation477 (1,185)4,123 9,218 7,931 
Unrealized loss on copper derivatives
955 1,814 — 115 — 
Incremental COVID-19 costs — —  1,956 
Adjusted EBITDA(1)
$50,303 $42,910 $53,176 $183,453 $198,257 

(1) Effective in 2023 Q3, EBITDA and Adjusted EBITDA have been updated to incorporate the adjustment of finance income. EBITDA and Adjusted EBITDA for comparative periods have been updated accordingly.


Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company

“Adjusted net income attributable to owners of the Company” is net income attributed to shareholders as reported, adjusted for certain types of transactions that, in management's judgment, are not indicative of our normal operating activities or do not necessarily occur on a recurring basis. “Adjusted net income per share attributable to owners of the Company” (“Adjusted EPS”) is calculated as "adjusted net income attributable to owners of the Company" divided by weighted average number of outstanding common shares in the period. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investor and analysts use these supplemental non-IFRS performance measures to evaluate the normalized performance of the Company. The presentation of Adjusted EPS is not meant to substitute the net income (loss) per share attributable to owners of the Company (“EPS”) presented in accordance with IFRS, but rather it should be evaluated in conjunction with such IFRS measures.
The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.

Ero Copper Corp. December 31, 2023 MD&A | Page 29


Reconciliation:
2023 - Q42023 - Q32022 - Q420232022
Net income as reported attributable to the owners of the Company
$36,549 $2,525 $22,159 $92,804 $101,831 
Adjustments:
Share based compensation477 (1,185)4,123 9,218 7,931 
Unrealized foreign exchange (gain) loss on USD denominated balances in MCSA
(10,308)9,481 (1,782)(15,296)25 
Unrealized foreign exchange (gain) loss on foreign exchange derivative contracts
(9,852)7,530 (3,017)(7,552)(32,960)
Unrealized loss on copper derivative contracts
951 1,808 — 115 — 
Incremental COVID-19 costs — —  1,944 
Tax effect on the above adjustments2,932 (2,873)731 3,472 4,726 
Adjusted net income attributable to owners of the Company$20,749 $17,286 $22,214 $82,761 $83,497 
Weighted average number of common shares
Basic98,099,791 93,311,434 91,522,358 94,111,548 90,789,925 
Diluted98,482,755 94,009,268 92,551,916 94,896,334 92,170,656 
Adjusted EPS
Basic$0.21 $0.19 $0.24 $0.88 $0.92 
Diluted$0.21 $0.18 $0.24 $0.87 $0.91 

Net Debt

Net debt is a performance measure used by the Company to assess its financial position and ability to pay down its debt. Net debt is determined based on cash and cash equivalents, short-term investments, net of loans and borrowings as reported in the Company’s consolidated financial statements. The following table provides a calculation of net (cash) debt based on amounts presented in the Company’s consolidated financial statements as at the periods presented.

December 31, 2023September 30, 2023December 31, 2022
Current portion of loans and borrowings$20,381 $11,764 $15,703 
Long-term portion of loans and borrowings405,852407,656402,354
Less:
Cash and cash equivalents(111,738)(44,757)(177,702)
Short-term investments (42,843)(139,700)
Net debt (cash) $314,495 $331,820 $100,655 


Ero Copper Corp. December 31, 2023 MD&A | Page 30


Working Capital and Available Liquidity

Working capital is calculated as current assets less current liabilities as reported in the Company’s consolidated financial statements. The Company uses working capital as a measure of the Company’s short-term financial health and ability to meet its current obligations using its current assets. Available liquidity is calculated as the sum of cash and cash equivalents, short-term investments and the undrawn amount available on its revolving credit facilities. The Company uses this information to evaluate the liquid assets available. The following table provides a calculation for these based on amounts presented in the Company’s consolidated financial statements as at the periods presented.

December 31, 2023September 30, 2023December 31, 2022
Current assets$199,487 $174,113 $