Sometimes, the smartest investments start small. If you’ve got $300 sitting in your account and want to put it to work, you don’t need to wait for a market crash or a flashy initial public offering (IPO). There are quality Canadian companies already trading at reasonable prices, and one of the smartest TSX stocks to buy right now might just be Ero Copper (TSX:ERO). It’s affordable, it’s growing, and it’s riding a wave of rising demand for copper that shows no signs of slowing down.
Source: Getty Images
The stock
Ero Copper is based in Vancouver, but its mining operations are located in Brazil. It produces copper and operates through two key projects: the Caraíba Operations and the Tucumã Project. These aren’t your average legacy mines. Ero has modernized operations and continues to expand both production and exploration. The result is a Canadian stock that isn’t just coasting on past performance but is actively building for the future.
As of early May 2025, Ero Copper trades at about $18.66 per share. That means with $300, you could pick up 16 shares and still have a bit left over. It’s rare to find a Canadian stock that is both affordable and promising. Copper prices have been volatile over the past year, but the long-term trend is clear. With the rise of electric vehicles, renewable energy projects, and global infrastructure development, demand for copper is only expected to grow. Ero Copper is well-positioned to benefit from that trend.
Numbers don’t lie
The Canadian stock’s first-quarter earnings for 2025 gave investors plenty of reason to be optimistic. Ero reported net income of $80.2 million. That’s a major turnaround from a loss of $7.1 million in the same quarter last year. The improvement wasn’t just about higher copper prices. Ero also ramped up production in a big way. It produced 12,424 tonnes of copper in the quarter, and 5,067 of those came from the new Tucumã Project, which is expected to reach commercial production in the first half of this year. That second source of copper will help Ero diversify and scale operations, which is exactly what investors want to see.
Another bright spot is how Ero is managing its balance sheet. The Canadian stock finished the quarter with $116 million in liquidity. It also finalized an extension of a US$50 million streaming agreement with Royal Gold, which provides extra financial flexibility without diluting shareholders or loading up on debt. That kind of capital management helps protect against future risks and ensures Ero has the resources to keep growing, even if copper prices dip temporarily.
Ero Copper is also a favourite among analysts. Many firms have price targets well above current levels, reflecting the company’s growth momentum and the positive outlook for the copper market overall. Some analysts have forecast earnings per share to grow meaningfully over the next few quarters, especially once Tucumã hits full stride.
Bottom line
Of course, no Canadian stock is perfect. Mining comes with risks, commodity prices, geopolitical issues, and operational hiccoughs can all impact performance. But Ero has shown it can handle challenges, and with a strong first quarter under its belt, it seems to be entering a new phase of growth. For an investor just starting out or looking to add a small-cap growth pick to their portfolio, it makes a strong case.
