Base metal and precious metal miners rose
On October 19, stocks related to base metals and precious metals moved higher. Base metal ETFs such as the PowerShares DB Base Metals (DBB) and the SPDR S&P Metals & Mining ETF (XME) rose ~2.2% and ~0.29%. The SPDR Gold Shares (GLD) rose 0.56%.
Freeport continued to divest assets
Freeport-McMoRan (FCX), the largest copper miner in the world, made plans to divest its oil and gas assets. According to the announcement made on October 14, Freeport plans to sell its onshore oil and gas assets in California to Sentinel Peak Resources for $742 million. The objective is to reduce the debt and strengthen the balance sheet. After the deal is complete, Freeport will get $592 million in cash and $50 million each year from 2018 until 2020 if the price of Brent crude averages $70 or above in the respective year. The deal is expected to close in 4Q16.
Since the beginning of 2016, Freeport rose ~45%. At 12:15 PM EST on October 19, Freeport was trading at $9.90—a gain of ~1.9%.