Stock Analysis

How Furnas Drilling Results Will Impact Ero Copper (TSX:ERO) Investors

TSX:ERO
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  • Ero Copper Corp. recently announced the completion of its Phase 1 drilling program at the Furnas Copper-Gold Project in Brazil, highlighting significant intercepts that have extended high-grade copper-gold mineralization zones beyond previously defined limits.
  • An interesting aspect is that these results will support an updated mineral resource estimate and preliminary economic assessment, potentially shaping the outlook for Ero Copper’s future underground mining plans.
  • We'll explore how the promising mineral extension at Furnas could influence analyst expectations for Ero Copper's earnings trajectory and project pipeline.

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Ero Copper Investment Narrative Recap

To be a shareholder in Ero Copper, you generally need to believe in its ability to expand Brazil-based copper and gold production, while successfully executing on underground development projects like Furnas. The recent strong drilling results at Furnas do not materially affect the most important near-term catalyst, achieving reliable commercial production at Tucumã, nor do they resolve ongoing power quality issues that still pose a key risk to the business.

Among the company’s recent updates, the July 3 announcement of Tucumã achieving commercial production stands out as the most relevant catalyst tied to near-term revenue and cash flow. Advancements at Furnas are promising, but the operational stability and output consistency at Tucumã remain closely watched by the market as the primary driver for short-term performance.

However, investors should be aware that, despite progress underground at Furnas, ongoing power quality concerns at Tucumã could still...

Read the full narrative on Ero Copper (it's free!)

Ero Copper's narrative projects $1.0 billion revenue and $257.4 million earnings by 2028. This requires 29.7% yearly revenue growth and a $325.9 million increase in earnings from -$68.5 million currently.

Uncover how Ero Copper's forecasts yield a CA$25.21 fair value, a 27% upside to its current price.

Exploring Other Perspectives

TSX:ERO Community Fair Values as at Jul 2025
TSX:ERO Community Fair Values as at Jul 2025

Six members of the Simply Wall St Community estimate Ero Copper’s fair value from CA$20.76 to CA$56.24 per share. While project advancements support optimism, the risk of persistent power issues raises questions about operational costs and earnings.

Explore 6 other fair value estimates on Ero Copper - why the stock might be worth over 2x more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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