Antofagasta plc

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.”

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 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 […]

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

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.

Despite resilient copper supply in 2018, we have seen some tightness in copper markets and inventory levels have fallen sharply.

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.

China (FXI) is the world’s biggest copper importer.

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.

China is the world’s biggest copper importer.

Freeport-McMoRan (FCX) released its second-quarter results yesterday, posting better-than-expected revenue of $5.17 billion.

China is the world’s largest copper importer. Chinese copper imports are seen as an indicator of the country’s copper demand.

Southern Copper (SCCO) hasn’t received any “buy” or equivalent ratings. Four analysts have rated Southern Copper stock as a “hold.”

In the first five months of 2018, China’s unwrought copper imports have risen 16.8%—compared to the same period in 2017.

Global trade war fears have reignited this month. Last month, after a second round of trade talks, the United States (DIA) and China decided to put the talks on hold.

China’s copper imports have been strong this year. The imports have registered a strong yearly increase for unwrought copper and copper concentrates.

As China (FXI) transitions from an investment-driven to a consumption-driven economy, its metal appetite has taken a breather.

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.

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

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.

In this final article of our series, we’ll see how analysts are rating Freeport ahead of its 1Q18 earnings release.

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

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

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

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.

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

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.

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.

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

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

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-McMoRan (FCX) reported an adjusted EBITDA of $2.1 billion in 4Q17. The company posted an adjusted EBITDA of $1.61 billion in 3Q17.

Freeport-McMoRan (FCX) posted revenues of $5.0 billion in 4Q17. The company posted revenues of $4.3 billion in 3Q17 and $4.4 billion in 4Q16.

Freeport-McMoRan (FCX) is scheduled to hold its 4Q17 earnings call on January 25. In this article, we’ll look at the key updates that investors should look for in Freeport’s 4Q17 earnings call.

Analysts polled by Thomson Reuters expect Freeport to post adjusted EBITDA of $2.0 billion in 4Q17.

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.

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.

There are some concerns that China’s construction boom, which lifted its economic activity last year, might not continue in 2018.

Freeport-McMoRan (FCX), the leading US copper miner, closed at $18.1 on December 22. Based on that day’s closing prices, Freeport has gained 30.0% in December.

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 copper imports data are closely followed by investors in companies such as Freeport-McMoRan (FCX), Glencore (GLEN-L), and Southern Copper (SCCO).

Copper tends to be sensitive to geopolitical developments. This month, we’ve seen some interesting geopolitical developments.

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

With copper prices trading sideways this month, copper miners also had a dull month. Freeport-McMoRan (FCX) fell 0.42% in November.

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 prices have been strong this year. Copper has gained 26.8% so far in 2017, based on November 27 closing prices, and has added to its 2016 gains.

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.

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

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

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.

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

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.

Freeport-McMoRan (FCX), the world’s second-largest copper miner (XLB), released its 3Q17 earnings on October 25. The company reported adjusted net income of $492 million.

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.

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

Freeport-McMoRan (FCX) stock has received a “strong buy” rating from one analyst, while five analysts have rated FCX a “buy.”