Ero Copper Corp. ERO reported a temporary power outage at its Tucumã operation in southwest Carajás Mineral Province, Pará State, Brazil, due to a severe localized windstorm on Saturday.

Details on Ero Copper’s Temporary Halt of Tucumã Operation

The storm damaged the regional power grid, disrupting the main 230kV transmission line. This resulted in power losses for more than 20 million  residents and key industrial users. Fortunately, the company's workforce remains unharmed, and its infrastructure at the Tucumã Operation has escaped damage.

Power has since been restored to residential areas and partially to industrial consumers. The transmission line's owner and operator anticipates restoring full power to industrial consumers, including the Tucumã operation, within two weeks.

Impacts of ERO Tucumã Operation’s Halt

Ero Copper anticipates that the power outage to primarily affect the ramp-up timeline of the Tucumã Operation's processing plant, influencing full-year production. Prior to the disruption, 2024 copper production was forecast at 17,000-25,000 tons.

The severity of the impacts will be estimated at the time of the full power restoration.  Although temporarily impacted, Ero Copper remains well-positioned to manage this disruption.

Ero Copper’s Q2 Top Line Improves Y/Y

The company reported second-quarter 2024 adjusted earnings per share of 18 cents, up from 16 cents in the prior-year quarter. 

The top line increased 9.6% year over year to $117 million  in the quarter under review. The upside was driven by stronger metal prices and a favorable exchange rate environment.

ERO’s Share Price Lags Industry

Shares of Ero Copper have gained 28.7% in a year compared with the industry’s 48.2% growth.

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Ero Copper’s Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and Eldorado Gold Corporation EGO. CRS, IAG  and EGO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.09 per share. The consensus estimate for 2025 earnings has moved 7% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 127.1% in a year.

The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 36% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 152.6% in a year.

The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 16% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 82.9% in a year.

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