FCX vs. ERO: Which Copper Mining Stock Should You Bet on Now?

Freeport-McMoRan and Ero Copper are ramping growth projects and increasing production, but rising costs, weaker volumes and volatile copper prices cloud near-term prospects. These headwinds increase downside risk to near-term margins and volumes and are likely to produce continued share-price volatility for the companies rather than clear upside catalysts in the coming quarters.

Analysis

Freeport-McMoRan and Ero Copper are ramping growth projects and increasing production, but rising costs, weaker volumes and volatile copper prices cloud near-term prospects. These headwinds increase downside risk to near-term margins and volumes and are likely to produce continued share-price volatility for the companies rather than clear upside catalysts in the coming quarters.