Antofagasta plc

While copper bears have been overshadowed by the bulls this month, they might like their chances in 4Q17.

First Quantum Minerals (FM) has received “strong buy” ratings from eight analysts, while nine have given it “buy” ratings or some equivalent.

Glencore (GLEN-L) has the highest percentage of “buy” or higher recommendations in our select group of mining stocks.

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.

China is the world’s biggest copper importer.

So far, China’s copper imports look strong in the year. Meanwhile, copper’s 2018 bullish theme is built around supply-side disruptions.

Teck Resources has received a “strong buy” rating from five analysts, while 13 analysts have rated the stock a “buy” or some equivalent.

Analysts see Chinese copper imports as an indicator of the country’s copper demand.

We’re now reaching the end of the first quarter earnings season, and most mining companies have already released their quarterly earnings results.

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.

Last month, China imported 443,000 metric tons of unwrought copper and copper product. China imported 450,000 metric tons in December 2017.

Among other factors, the concerns over escalating frictions between the United States and China have contributed to copper’s downfall.

Among other factors, a wave of labor negotiations has lent support to copper’s bullish thesis.

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.

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 (FCX) surged 6.9% yesterday, boosted by an upgrade from Morgan Stanley to “overweight.”

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 […]

Antofagasta (ANTO) has received “strong buy” ratings from seven analysts, while five have given it “buy” ratings or some equivalent.

The metals and mining space has seen a reversal of fortune this year. Metals prices plunged to multiyear lows in 2015 and 2016.

In this article, we’ll look at copper miners’ unit production costs.

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.

Both the bulls and the bears have used changes in copper inventory to support their arguments.

The earnings of copper miners such as Freeport-McMoRan (FCX), Antofagasta (ANTO), and Rio Tinto (RIO) are sensitive to copper prices.

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-McMoRan (FCX) operates the giant Grasberg mine in Indonesia.

Copper prices have been weak this year after rising for two consecutive years.

Freeport-McMoRan (FCX), the leading US-based copper miner, has seen a sharp rally over the last two years.

In the previous part of this series, we looked at Freeport-McMoRan’s (FCX) capital allocation strategy.

As copper market conditions have improved, companies have also taken another look at their capital allocation strategies.

In the previous part of this series, we looked at leading copper miners’ 4Q17 unit cash costs.

Previously in this series, we looked at copper miners’ 4Q17 production profiles and 2018 guidance.

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.

In this article, we’ll look at the 2018 production guidance provided by leading copper miners.

In this article, we’ll look at leading copper miners’ 4Q17 production data.

Antofagasta has received a “strong buy” rating from four analysts, while one analyst has given it a “buy” rating.

Anglo American (AAL-L) has received a “strong buy” rating from four analysts, while eight analysts have given it a “buy” rating.

Glencore (GLEN-L) has received a “strong buy” rating from five analysts, while 14 analysts have given it a “buy” or some equivalent rating.

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.

Freeport expects strong copper demand globally. The company also pointed to supply-side issues that are expected to hit mined copper supply in 2018.

Freeport-McMoRan (FCX), the leading US-based copper miner (SCCO) (XME), released its 4Q17 earnings on January 25, 2018.

Freeport’s earnings from the Grasberg operation could fall after it divests its stake in the giant mine.

Copper, like other metals, is widely recycled. Last year, we saw improved scrap flows as copper prices moved to higher price levels.

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.

Copper prices have come off their 2017 highs. Copper, which closed almost flat last month, has lost 3.3% in December.

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.

Freeport-McMoRan (FCX) is trading at 5.94x its 2017 consensus EBITDA and at 4.62x its consensus 2018 EBITDA.