Ero Copper ERO reported fourth-quarter 2024 adjusted earnings per share of 17 cents, which missed the Zacks Consensus Estimate of 21 cents. The bottom line declined 19% year over year.

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Including one-time items, ERO reported a loss of 47 cents per share in the fourth quarter of 2024 against earnings of 37 cents in the fourth quarter of 2023.

Ero Copper’s Margins Improve Y/Y in Q4

ERO’s revenues were $122.5 million in the quarter under review, up 5.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $130 million.

Copper C1 cash costs for the quarter were $1.85 in the fourth quarter of 2024 compared with $1.75 in the fourth quarter of 2023. Gold C1 cash costs for the fourth quarter of 2024 were $744 compared with $413 in the year-ago quarter. All-in Sustaining Costs (AISC) for the same period were $1,691 compared with $991 in the fourth quarter of 2023.

Gross profit rose 25.3% year over year to $52.4 million. ERO’s adjusted EBITDA improved 17.5% year over year to $59 million in the fourth quarter of 2024. The adjusted EBITDA margin was 48.2% compared with 43.2% in the year-ago quarter.

ERO’s Production Details

Ero Copper produced 8,566 tons of copper in the fourth quarter of 2024 compared to the prior-year quarter’s 11,760 tons. Copper production was 35,444 tons in 2024, down 19.2% from 2023. Gold production was 8,936 ounces in the fourth quarter, resulting in a production of 59,222 ounces in 2024. The company produced 16,867 ounces of gold in the fourth quarter of 2023 and 59,222 ounces in 2023.

Ero Copper’s 2024 Results

ERO reported adjusted earnings per share of 78 cents, which missed the Zacks Consensus Estimate of 86 cents. Earnings declined 10% year over year.

Including one-time items, the company reported a loss of 66 cents per share in 2024 against earnings of 98 cents in 2023.

ERO Copper’s revenues grew 10% year over year to $430 million in 2024, missing the consensus estimate of $464 million.

ERO’s Cash Position

Ero Copper’s available liquidity at 2024-end was $90 million, including cash and cash equivalents of $50 million, and $15 million of undrawn availability under the company's senior secured revolving credit facility. The company’s cash and cash equivalents figure decreased from $111.7 million in 2023.

The company generated $145 million from cash flow in operating activities compared with the $163 million reported last year.

Ero Copper’s Guidance for 2025

In 2025, the company expects consolidated copper production between 75,000 tons and 85,000 tons in concentrate. Gold production from Xavantina operations is projected to be 50,000-60,000 ounces.

Copper C1 cash cost guidance on a consolidated basis is expected between $1.55 and $1.80 for the year. At the Xavantina Operations, the gold C1 cash costs are expected between $650 and $800, reflecting a planned decrease in mined and processed gold grade. The company has set a gold AISC guidance between $1,400 and $1,600.

ERO Stock’s Price Performance

Shares of Ero Copper have lost 25.4% in a year against the industry’s 3% growth.

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ERO Copper’s Peer Performances

Southern Copper Corporation SCCO reported fourth-quarter 2024 earnings of $1.01 per share, which marginally missed the Zacks Consensus Estimate of $1.02. The bottom line, however, marked a 74% surge from the year-ago quarter. Results were driven by higher sales volumes for copper, zinc and silver, and improved prices. 

SCCO registered revenues of $2.784 billion, beating the Zacks Consensus Estimate of $2.780 billion. The top line increased 21.3% year over year.

Freeport-McMoRan Inc. FCX recorded net income of $274 million or 19 cents per share for fourth-quarter 2024, down 29.3% from $388 million or 27 cents per share in the year-ago quarter.

FCX’s revenues declined 3.1% year over year to $5.72 billion. The figure missed the Zacks Consensus Estimate of $5.92 billion. The company witnessed lower copper sales in the reported quarter.

ERO’s Zacks Rank & Stock to Consider

Ero Copper currently carries a Zacks Rank #5 (Strong Sell).

A better-ranked stock from the basic materials space is Carpenter Technology Corporation CRS. It sports a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 15.7%. The Zacks Consensus Estimate for CRS’s 2025 earnings is pegged at $6.95 per share. CRS shares gained 219.3% last year.

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