Q: I read your notes on ERO June 10 which were positive so wondered why this issue has been hit so much harder than others in their sector. It seems a candidate for recovery - is this likely or are there other factors to account for? Appreciate your response.
5i Research Answer:
ERO in June reached commercial operations at its Tucuma mine, which is good, but often results in some investors selling on news. Then, the copper market this week was sent into turmoil with Trump's import tax plan. ERO has received a couple of broker downgrades inthe past month, but also received new brokerage coverage at Stifel. All in, we do not see any material negative news specifically to ERO. The stock remains up 4% for the year.