ERO is a $2B market cap copper-focused company, trading at a very cheap valuation of 6.8X earnings (no dividend). Shares are down 25% in a year and up 11% YTD. Insiders own 10%. Debt is fairly high at 3X cash flow. Revenue will double from 2023 levels to $1B this year as new production comes on stream. It is highly profitable, with good cash flow. EPS is expected to grow about 30% next year. It is a small company and it has cyclical and economic risks. But it is priced very well. We would like to see lower debt but we fully expect this over the next few years as cash flow grows. We would be comfortable owning it.
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