Ero Copper extends partnership with Royal Gold, receiving $50 million upfront to boost growth

From Nasdaq: 2025-04-02 11:13:00

Ero Copper Corp extended its precious metal purchase agreement with Royal Gold, Inc.’s subsidiary, receiving an additional $50 million upfront. Royal Gold will purchase 25% of gold production until 160,000 ounces are delivered, then 10% for the mine’s remaining life, benefiting from an additional 40,200 ounces starting in 2028.

Ero Copper stands to gain from the growth potential at its Xavantina operations with Royal Gold’s support, aligning with its 2025 capital expenditure guidance. Despite ERO stock’s 40.9% decline in a year, partnerships like this one are expected to drive growth and create long-term value for the company.

Ero Copper currently holds a Zacks Rank #5 (Strong Sell), but better-ranked stocks in the basic materials sector include Axalta Coating Systems Ltd. and CSW Industrials Inc., with Zacks Ranks #1 (Strong Buy) and #2 (Buy) respectively. These stocks have shown strong performance and earnings surprises over the past year.

Investors looking for potential home run stocks in 2024 can check out Zacks Investment Research’s recommendations for 5 stocks set to double. These picks offer significant growth opportunities and are flying under the radar of Wall Street, providing a chance to capitalize on their potential success.



Read more at Nasdaq: Ero Copper Extends Deal With Royal Gold to Boost Growth at Xavantina