THoughts on Ero's results, market reaction seems aggressive
Slainte, Chris
ERO stock took a hit, but it had been quite strong prior to earnings, and the stock is really only back to where it was on Jan 22. It remains up 11% YTD and 117% for one year. Note ERO did not release full financial results (due March 5) and only production numbers and guidance. Q4 production was a record, but production guidance was lower than expected and spending plans have increased. 2026 guidance calls for 67,500+ tonnes, up 20% year over year but down from prior guidance of 85,000+ tonnes. The drop largely reflects grades, but overall production is still expected to rise into 2028. This 'reset' is likely to make estimates easier to hit. So while still a negative we would focus on the fact that production is still growing, and copper prices are also holding up very well. We would not worry too much here with the stock price likely already reflective of the situation.