EROEro Copper Corp.
Is it safe?
Nothing alarming, nothing pristine: comfortable debt (A) and big price swings.
Investment-grade balance sheet. A rule of thumb on leverage, not a credit rating.
Large price swings, high volatility. Worst drawdown -67% · now 7% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can ERO take a bad year?
Ero Copper Corp. carries $502M of net debt at 1.84× EBITDA: a load its earnings can carry.
Net debt · as at FY2025 · under two and a half years of EBITDA, comfortable
- Net debt / EBITDA
- 1.84×
Net debt / EBITDA · 4.99× a year ago · the load is coming down
- Interest cover
- 8.11×
Interest cover · operating profit covers the interest bill several times over
- Annualised volatility
- 57%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtFY2025
- $607M
- Cash and short-term investments
- $105M
- Net debt
- $502M
- EBITDA, trailing twelve months
- $272M
- Operating profit, trailing twelve months
- $271M
- Debt / equity
- 0.65×
- Total debt / EBITDA
- 2.23×
- Annualised volatilitytwo years of daily moves
- 57%
- Worst drawdown on file
- −67%
- Below its 52-week high
- 6.9%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.