Freeport-McMoRan (FCX), which has underperformed the broader copper mining space in 2017, rose 13.4% last week. Thanks to last week’s upward price action, Freeport has now risen 28.7% in 2017. In comparison, the LME (London Metals Exchange) three-month copper contract has risen 22.7% so far in 2017.
Copper prices rose ~3.0% last week. Notably, prior to last week, copper was having a tough run in December.
Looking at last week’s price action, Glencore (GLEN-L) rose 5.0%, while First Quantum Minerals (FM) rose 13.4%. Southern Copper (SCCO) and Antofagasta (ANTO) witnessed upward price action of 3.2% and 4.1%, respectively, in the week ended December 15. As copper prices moved to higher levels last week, copper miners also followed suit.
While higher copper prices boosted copper miners last week, several other factors affected Freeport. To be sure, Freeport hasn’t really followed copper prices this year. The company’s Indonesia issues have played heavily on investors’ minds in 2017, and for most of the year, it hasn’t participated in the rally we’ve seen in other copper miners’ stock prices.
In this series, we’ll take a look at two things: First, we’ll see what factors supported copper prices last week. Second, we’ll look at some of the company-specific developments that impacted Freeport during the week.
Let’s begin by studying copper’s recent price action in the next article.