Antofagasta plc
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Freeport-McMoRan: Bulls Short of Ideas amid Macro Uncertainty
Leading US-based copper miner Freeport-McMoRan (FCX) has been trading largely sideways this month, which is not surprising, considering copper price trends.
Freeport-McMoRan: Party Continues as Chinese Copper Imports Surge
Freeport-McMoRan (FCX) surged 6.9% yesterday, boosted by an upgrade from Morgan Stanley to “overweight.”
Copper Throws Mixed Signals for Markets
Copper prices are seen as an indicator of global economic activity. Copper has thrown mixed signals for investors in the past month.
Lower Energy Prices: Boon or Bane for Copper Miners?
Lower energy prices Previously, we discussed copper miners’ production profiles and 2018 guidance. In this part, we’ll look at leading copper producers’ unit cash costs and see what’s impacted their unit cost progression. Comparative analysis Freeport-McMoRan (FCX) reported unit cash costs after by-product credit of $0.93 per pound in the third quarter—compared to $0.96 per […]
Analysts See a 70% Upside in First Quantum Minerals
First Quantum Minerals (FM) has received “strong buy” ratings from eight analysts, while nine have given it “buy” ratings or some equivalent.
Analysts Weigh in on Antofagasta amid Lower Copper Prices
Antofagasta (ANTO) has received “strong buy” ratings from seven analysts, while five have given it “buy” ratings or some equivalent.
Wall Street Is Largely Unfazed by Plunging Copper Prices
The metals and mining space has seen a reversal of fortune this year. Metals prices plunged to multiyear lows in 2015 and 2016.
Physical Copper Markets Might Tighten More in 2019
Despite resilient copper supply in 2018, we have seen some tightness in copper markets and inventory levels have fallen sharply.
Freeport-McMoRan’s Valuation: Look beyond 2019
In 2019, Freeport-McMoRan’s copper and gold production and its earnings could take it a hit as its Grasberg mine transitions to underground operations.
What China’s Lower Copper Imports May Indicate
China (FXI) is the world’s biggest copper importer.
Could Cost-Push Inflation Dent Copper Miners’ Outlooks?
In this article, we’ll look at copper miners’ unit production costs.
Freeport-McMoRan Stock: The Good, the Bad, and the Ugly
So far, Freeport-McMoRan (FCX) is having a terrible year. Based on the closing prices on August 9, the stock has lost 18.8% in 2018.
Don’t Get Too Carried Away with Record Chinese Copper Imports
China is the world’s biggest copper importer.
How Q2 2018 Worked Out for Freeport-McMoRan
Freeport-McMoRan (FCX) released its second-quarter results yesterday, posting better-than-expected revenue of $5.17 billion.
Analyzing China’s Copper Import Data
China is the world’s largest copper importer. Chinese copper imports are seen as an indicator of the country’s copper demand.
SCCO Is Getting No Love from Analysts as Copper Prices Tumble
Southern Copper (SCCO) hasn’t received any “buy” or equivalent ratings. Four analysts have rated Southern Copper stock as a “hold.”
Copper Markets: Possible Surplus in 2018
In the first five months of 2018, China’s unwrought copper imports have risen 16.8%—compared to the same period in 2017.
Is It Time to Fall in Love with Copper Stocks?
China’s copper imports have been strong this year. The imports have registered a strong yearly increase for unwrought copper and copper concentrates.
Talks of a Slowdown in China: What Investors Should Know
As China (FXI) transitions from an investment-driven to a consumption-driven economy, its metal appetite has taken a breather.
Why Freeport-McMoRan Expects Costs to Rise This Year
Previously in this series, we looked at copper miners’ first-quarter production and 2018 guidance. In this article, we’ll look at their unit production costs.
Copper Miners’ First-Quarter Report Card: Hits and Misses
We’re now reaching the end of the first quarter earnings season, and most mining companies have already released their quarterly earnings results.
Should Doctor Copper Be Thanking Xi-Trump Bonhomie?
While commodities generally follow the underlying supply-demand dynamics in the long term, according to some observers, copper prices also tend to reflect macro developments.
Copper Inventory Games: Not This Time Please!
Both the bulls and the bears have used changes in copper inventory to support their arguments.
Why Copper Has Been Losing Its Sheen This Year
The earnings of copper miners such as Freeport-McMoRan (FCX), Antofagasta (ANTO), and Rio Tinto (RIO) are sensitive to copper prices.
Is Freeport-McMoRan’s Valuation Attractive?
Freeport-McMoRan (FCX) is valued at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) of 4.7x its 2018 consensus EBITDA.
Freeport in Indonesia: Best-Case and Worst-Case Scenarios
Freeport-McMoRan (FCX) operates the giant Grasberg mine in Indonesia.
What’s the Wild Card for Copper Prices in 2018?
Copper prices have been weak this year after rising for two consecutive years.
What Could Sustain Freeport’s Rally?
Freeport-McMoRan (FCX), the leading US-based copper miner, has seen a sharp rally over the last two years.
How’s Chinese Copper Demand Looking in 2018?
So far, China’s copper imports look strong in the year. Meanwhile, copper’s 2018 bullish theme is built around supply-side disruptions.
How Glencore Plans to Allocate Capital amid Strong Finances
Glencore’s (GLEN-L) financial position has improved greatly since 2015, when concerns over near-term debt maturities—coupled with falling commodity prices—triggered a massive sell-off in the stock.
Should Southern Copper Investors Expect Higher Dividends?
In the previous part of this series, we looked at Freeport-McMoRan’s (FCX) capital allocation strategy.
Understanding Freeport’s Capital Allocation Strategy
As copper market conditions have improved, companies have also taken another look at their capital allocation strategies.
Why Freeport Expects Its Unit Cash Costs to Fall Further in 2018
In the previous part of this series, we looked at leading copper miners’ 4Q17 unit cash costs.
Copper Miners Face Cost Pressure as Input Costs Rise
Previously in this series, we looked at copper miners’ 4Q17 production profiles and 2018 guidance.
Are Copper Bulls Over-Relying on Supply Disruptions in 2018?
We saw a sharp rally in copper prices in December. Among other factors, expectations of supply-side disruptions at leading copper mines boosted copper market sentiment.
Which Miners Could See Higher Copper Production in 2018?
In this article, we’ll look at the 2018 production guidance provided by leading copper miners.
Freeport-McMoRan’s 4Q17 Production Profile versus Other Miners’
In this article, we’ll look at leading copper miners’ 4Q17 production data.
What Are Analysts Recommending for Antofagasta in 1Q18?
Antofagasta has received a “strong buy” rating from four analysts, while one analyst has given it a “buy” rating.
How Analysts Are Rating Anglo American in 2018
Anglo American (AAL-L) has received a “strong buy” rating from four analysts, while eight analysts have given it a “buy” rating.
How Analysts Have Changed Their Ratings on Glencore in 2018
Glencore (GLEN-L) has received a “strong buy” rating from five analysts, while 14 analysts have given it a “buy” or some equivalent rating.
How Analysts View Copper Miners amid the Market Carnage
The repercussions of the equity market carnage are evident in commodity markets. Copper, which some analysts see as an indicator of the global economy’s health, has come off its 2018 highs.
How Analysts Rate Teck Resources ahead of 4Q17 Earnings
Teck Resources has received a “strong buy” rating from five analysts, while 13 analysts have rated the stock a “buy” or some equivalent.
Analyzing China’s January Copper Imports
Last month, China imported 443,000 metric tons of unwrought copper and copper product. China imported 450,000 metric tons in December 2017.
Supply Disruptions Could Support Copper Prices in 2018
Freeport expects strong copper demand globally. The company also pointed to supply-side issues that are expected to hit mined copper supply in 2018.
Key Takeaways from Freeport-McMoRan’s 4Q17 Earnings Call
Freeport-McMoRan (FCX), the leading US-based copper miner (SCCO) (XME), released its 4Q17 earnings on January 25, 2018.
How Impressive Is Freeport-McMoRan’s 4Q17 Performance?
Freeport-McMoRan (FCX) reported an adjusted EBITDA of $2.1 billion in 4Q17. The company posted an adjusted EBITDA of $1.61 billion in 3Q17.
These Factors Could Drive Freeport’s 4Q17 Financial Performance
Analysts polled by Thomson Reuters expect Freeport to post adjusted EBITDA of $2.0 billion in 4Q17.
China’s Copper Imports: What to Expect in 2018
In December, China imported 440,000 metric tons of unwrought copper and copper products. Imports fell on a YoY (year-over-year) and a monthly basis.
How the Grasberg Divestment Could Impact Freeport-McMoRan
Freeport’s earnings from the Grasberg operation could fall after it divests its stake in the giant mine.
How the Secondary Market Could Impact Copper Prices in 2018
Copper, like other metals, is widely recycled. Last year, we saw improved scrap flows as copper prices moved to higher price levels.
How Chinese Copper Demand Could Play Out in 2018
There are some concerns that China’s construction boom, which lifted its economic activity last year, might not continue in 2018.
Why Last Week Was Such a Happening One for Freeport-McMoRan
Freeport-McMoRan, which has underperformed the broader copper mining space in 2017, rose 13.4% last week. Thanks to last week’s upward price action, it’s now risen 28.7% in 2017.
China’s November Copper Imports Provide Some Relief to Bulls
China’s copper imports data are closely followed by investors in companies such as Freeport-McMoRan (FCX), Glencore (GLEN-L), and Southern Copper (SCCO).
Are Geopolitical Issues to Blame for Copper’s December Woes?
Copper tends to be sensitive to geopolitical developments. This month, we’ve seen some interesting geopolitical developments.
Why Copper Has Fallen from Its 2017 Highs
Copper prices have come off their 2017 highs. Copper, which closed almost flat last month, has lost 3.3% in December.
Could Tesla Drive Long-Term Copper Demand?
On its 3Q17 earnings call, Freeport-McMoRan (FCX) sounded positive about copper’s long-term demand. According to Richard C. Adkerson, Freeport’s CEO, “Around the world, manufacturing sectors are performing well.”
Copper Market Deficit: What You Need to Know
Global mined copper production fell 2.2% YoY in the first eight months of the year. The decline was mainly led by a 5% fall in Chilean copper production.
Copper Tests $7,000 as Industrial Metals Rebound
Last week was broadly positive for industrial metals (DBC). Copper rose 3.6%, while aluminum prices rose 1.3% in the week ending November 24.
Glencore or Freeport: Which Has More Upside Potential?
Glencore (GLEN-L) has the highest percentage of “buy” or higher recommendations in our select group of mining stocks.
How Are Markets Valuing Glencore amid Higher Commodity Prices?
Freeport-McMoRan (FCX) is trading at 5.94x its 2017 consensus EBITDA and at 4.62x its consensus 2018 EBITDA.
Analyzing Copper Miners’ Cost Progression
Freeport expects its copper after by product unit cash cost to average $1.19 per pound in 2017, which implies a 4Q17 unit production cost of $0.98 per pound.
China’s Copper Import Data Could Provide a Lifeline to Bears
Analysts see Chinese copper imports as an indicator of the country’s copper demand.
Digging Deeper into Freeport-McMoRan’s 3Q17 Revenue Beat
Freeport-McMoRan (FCX) posted revenue of $4.31 billion in 3Q17. In comparison, the company posted revenues of $3.71 billion in 2Q17 and $3.87 billion in 3Q16.
Respite for Freeport as Chinese Copper Imports Spike in September
China imported 430,000 metric tons of unwrought copper and copper products in September 2017, in contrast to 340,000 metric tons in September 2016.
Why Copper Bears Shouldn’t Lose Heart
While copper bears have been overshadowed by the bulls this month, they might like their chances in 4Q17.