(ERO) Ero Copper - Ratings and Ratios

Ero Copper Corp (NYSE:ERO) is a Canada-based mining company specializing in the exploration, development, and production of copper, gold, and silver. Its primary operations are centered in Brazil, where it owns and operates the Caraíba mining complex in northeastern Bahia State. This complex includes the Caraíba Mill, a processing facility with a capacity of 5.5 million tonnes per annum, and multiple open-pit and underground mines. The company has been in production since 2019 and has established itself as a mid-tier copper producer with significant exploration potential in its regional portfolio.

The company was incorporated in 2016 and is headquartered in Vancouver, Canada. Ero Coppers strategic focus is on low-cost, high-margin copper production, with gold and silver as by-products. Its operations are supported by a robust infrastructure, including a dedicated port facility for concentrate exports. The Caraíba operations are known for their high-grade copper ore reserves, which have contributed to the companys ability to maintain strong operational performance despite global market fluctuations.

From a technical perspective, Ero Coppers stock has shown a recent price of $12.82, with short-term moving averages indicating potential support at $11.33 (SMA 20) and $12.12 (SMA 50). The stock is currently trading below its 200-day moving average of $16.04, suggesting bearish momentum. Average trading volume over the past 20 days is approximately 548,315 shares, with an average true range (ATR) of 0.68, indicating moderate volatility.

Fundamentally, Ero Copper has a market capitalization of $1.31 billion, with a forward P/E ratio of 5.96, reflecting investor expectations of future earnings growth. The companys price-to-book (P/B) ratio of 2.23 indicates that its market value is more than double its book value, which may suggest investor confidence in its growth prospects. However, the negative return on equity (RoE) of -11.66% raises concerns about profitability and asset efficiency.

Over the next three months, Ero Coppers stock is expected to face headwinds due to its current position below the 200-day SMA, which may signal continued selling pressure. However, the low forward P/E ratio and the companys established production base could attract value investors. The moderate ATR suggests that price movements will remain contained, with potential support near the SMA 50 level. While the negative RoE is a concern, the companys strong market cap and regional dominance in Brazil could provide a foundation for recovery if operational efficiencies improve.