Chemours’s new facility in Mexico
On June 26, 2017, Chemours (CC) conducted a groundbreaking ceremony for its new mining solutions manufacturing facility. The new facility is located in Durango, Mexico. Chemours spent approximately $150 million on this facility. Chemours is already the largest producer of solid sodium cyanide, an essential in mining operations. This facility will help the company serve gold and silver mines in Mexico. However, it’s not clear when the facility will be operational.
Mark Vergnano, CC’s president and CEO, said, “This project is a further demonstration of our five-point transformation plan and will support the growing needs of the Mexican mining market. We’ve had successful operations in Mexico for over 90 years, and this undertaking reinforces our continued commitment to our Chemours Mining Solutions business.”
Chemours stock performance
Chemours made big gains for the week ended June 30, 2017. It rose 5.3% and closed at $37.92. The gains helped CC to reverse its trend and close above the 100-day moving average. CC was trading 1.7% above the 100-day moving average price of $37.30. Year-to-date, the stock has returned 71.9%, and analysts see further upside in the stock. Analysts expect CC’s 12-month target price to be at $47.14, implying a potential return of 24.1% from the closing price as of June 30, 2017. CC’s RSI of 49 shows that the stock is neither overbought nor oversold.
In contrast, the PowerShares DWA Momentum Portfolio ETF (PDP), which invests 1.5% of its holdings in CC, fell 0.4% for the same period. The top holdings of the fund include Priceline Group (PCLN), Apple (AAPL), and Domino’s Pizza (DPZ), which have weights of 2.9%, 2.9%, and 2.8%, respectively, as of June 30, 2017.