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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.
Why October Could Be a Crucial Month for Freeport-McMoRan
In the previous parts of this series, we looked at some of the macro developments that could impact Freeport-McMoRan (FCX) in October.
Why Did Bank Indonesia Keep Rates Constant?
Bank Indonesia kept its benchmark rate unchanged at 6.5% during the monetary policy meeting on July 21 amid expectations of another round of easing.
Some Emerging Markets Can Likely Handle Soft Growth in China
In 2013, when the Fed announced that it would gradually end its QE (quantitative easing) program, many emerging markets (ABE)(FEO) saw huge outflows of funds.
Indonesian Rupiah Traded Lower, Interest Rates Didn’t Change
The rupiah was trading in a negative trajectory compared to the US dollar on November 17. Bank Indonesia decided to keep the interest rates unchanged.
After Dividend Reinstatement, What’s Freeport’s Next Priority?
As we noted previously, Freeport-McMoRan (FCX) has reinstated its dividend, which was suspended in 2015. Glencore (GLEN-L) has already reinstated its dividends.
Why Freeport Might Want to Resolve the Grasberg Issue
Grasberg operations have put Freeport in a catch-22 situation. It can’t completely suspend its investments at Grasberg despite an uncertain future.
Indonesian Rupiah Fell Due to the Jakarta Attack and Rate Cut
The Indonesian rupiah fell against the US dollar on January 14, 2016, after a terrorist bomb exploded in the capital city of Jakarta.
Why Emerging Markets Are Trading at a Discount to Developed Markets
With the recent fall, some of these emerging markets have certainly become very cheap compared to most of the developed markets.
Freeport-McMoRan’s 1Q18 Earnings: Reading between the Lines
Freeport-McMoRan (FCX) released its 1Q18 earnings today and reported revenues of $4.8 billion.
Taiwan’s Economy Expands, Bank Indonesia Keeps Rates Unchanged
Taiwan’s economy rose by 0.7% on an annual basis in 2Q16—compared to a contraction of 0.29% in the previous quarter and slightly above estimated forecasts.
Why the Grasberg Mine Is Crucial to Freeport’s 2017 Plans
Freeport-McMoRan (FCX) owns the Grasberg copper and gold mine in Indonesia (EIDO). Rio Tinto (RIO) (TRQ) is Freeport’s partner in this mine.
Freeport-McMoRan’s Management: Its Litmus Test for 2017
Freeport-McMoRan and the Indonesian government have economic interests in keeping the Grasberg mine running.
What Makes Grasberg the Crown Jewel of Freeport’s Portfolio
As we noted in the previous part of this series, Freeport-McMoRan (FCX) expects its unit cash costs to fall in 2018.
Why Grasberg Issues Dominated Freeport’s 4Q16 Earnings Call
Freeport-McMoRan (FCX) owns the Grasberg copper and gold mine in Indonesia (EIDO). Rio Tinto (RIO) (TRQ) is Freeport’s partner in this mine.
The Tension Surrounding Freeport’s 1Q17 Earnings Call
Along with the industry outlook, markets will be looking for some clarity on a few company-specific issues during Freeport’s 1Q17 earnings call.
Indonesia’s slower than expected GDP haunted by government inaction
The last quarter grew at 1.4%, but consensus expected 1.5% Gross domestic product growth is the most telling metric of economic performance. Governments usually release data on a quarterly basis while analysts and economists wait anxiously for the data to compare against their own projections. The GDP forecast underpins many projections across the economy, from […]
India and Indonesia Indexes Gain as Most Other Asian Indexes Fall
India’s two key indexes, the NSE Nifty 50 and the S&P BSE Sensex, broke their losing streak even as most Asia-Pacific indexes ended in the red. The S&P BSE Sensex gained 0.8%, while the NSE Nifty 50 rose 0.83%. Both the indexes maintained upward momentum throughout the day.
Indian and Indonesian Indexes Stay Steady, but Taiwan Index Falls
Just like some of the other Asian indexes, Indian indexes closed almost flat today. The S&P BSE Sensex lost four basis points, while the NSE Nifty 50 gained seven basis points.
Taiwan and Thailand Indexes Rise as Other Asian Indexes Fall
After rising yesterday, both the key Indian indexes fell today.
Indian Indexes Fell, Indonesia Was the Best Performer
The NIFTY 50 and the BSE Sensex fell on May 29. The NIFTY 50 fell 0.57% and ended at 11,861.10. The BSE Sensex fell 0.62% and ended at 39,502.05.
Indian Indexes Celebrate Another Term for Modi
The S&P BSE Sensex rose 1.61% on May 24 and closed at 39,435. The NIFTY 50 fell 1.6% and ended the day at 11,844.10.
Indian Indexes Gain ahead of the Vote Count
Ahead of the day of the vote count on May 23, both the main Indian indexes gained. The S&P BSE Sensex gained 0.36%, while the NIFTY 50 rose 0.25%.
Indian Indexes Retreat as Exit Poll Euphoria Wanes
After skyrocketing on May 20, Indian indexes shed some mass on May 21. The benchmark BSE Sensex dropped 383 points (0.97%).
Why Should You Expect Indian ETFs to Gain Big Today?
After almost six weeks and seven phases, voting for the next government in India ended on May 18.
Indian Indexes Continue to Gain on Mixed Day for Asian Equities
Indian indexes, which are having turbulent times like other world indexes, rose on value-buying opportunities today.
Afternoon Surge Boosts Indian Indexes on May 16
Both the S&P BSE SENSEX and the NIFTY 50 surged in the afternoon of May 16 to end up in the green.
Could Freeport-McMoRan’s Rally Lose Steam?
As of January 18, Freeport-McMoRan (FCX) stock had risen 21.8% this year.
Should Freeport Consider a Share Buyback?
In this article, we’ll look at the key updates the markets might be expecting on Freeport’s third-quarter earnings call.
Freeport and Indonesia Take Baby Steps on Grasberg Impasse
Under last year’s “Framework,” Freeport agreed to construct a smelter in Indonesia and divest 51% stake in PT-FI towards Indonesian interests.
The Markets Aren’t Excited about Freeport’s Grasberg Resolution
Freeport McMoRan stock is trading almost flat as of 9:50 AM EST on July 12. The markets’ reaction looks rather cold.
What’s the Best Outcome for Freeport in Indonesia?
Grasberg issues have dominated Freeport’s earnings calls. During its 4Q17 earnings call, Freeport noted that it has made “a lot of progress.”
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.
Why Asian Markets Grabbed Investors’ Attention in 2017
Stock markets around the world rallied in 2017. Asian equities, in particular, grabbed investors’ attention in 2017, as they have been outperforming other markets.
Did Optimism over the Grasberg Resolution Help Freeport?
Freeport-McMoRan (FCX) operates the giant Grasberg mine in Indonesia (EIDO). The mine, where Rio Tinto (RIO) (TRQ) is Freeport’s minority partner, is the second-largest mine globally after BHP Billiton’s (BHP) Escondida mine.
Freeport’s Indonesia Deal: So Near, yet So Far
Freeport-McMoRan (FCX) and the Indonesian government are discussing the fine print of extending the company’s mining license in the country beyond 2021.
Freeport’s Indonesia Issues Just Keep Increasing
Copper markets will closely follow the developments at Grasberg in the coming weeks. The developments could impact global copper markets.
Inside Freeport-McMoRan’s Earnings Estimates
According to consensus estimates compiled by Thomson Reuters, Freeport-McMoRan (FCX) is expected to generate adjusted EBITDA of ~$1.4 billion in 3Q17 and ~$1.6 billion in 4Q17.
Reading Freeport’s Indonesia Timeline
Freeport-McMoRan (FCX) discovered the Grasberg mine in 1988. In 2014, Indonesia banned the export of unprocessed ores from the country.
Why Freeport Investors Will Likely Postpone the Celebration
Despite Freeport’s announcement of a resolution to its long-term Grasberg dispute with the Indonesian government, its stock fell on August 29.
Why Markets Are Concerned about Freeport-McMoRan
Markets are apprehensive about Freeport’s Indonesia operations. Freeport is exporting copper concentrate from Indonesia under a short-term export permit.
Why Indonesia’s Manufacturing Activity Fell
Manufacturing activity in Indonesia In July 2017, manufacturing activity in Indonesia (EIDO) fell at the fastest pace in 19 months, mainly due to sharp decline in its output. Indonesia’S (EEM) manufacturing PMI (purchasing managers’ index) fell to 48.6, compared with 49.5 in June 2017, according to an IHS Markit report. New orders also fell in July […]
Freeport or Southern Copper: Which Produces Copper More Cheaply?
When commodity prices fall, high-cost producers become unprofitable much sooner than their peers, which are placed more favorably on the cost curve.
Why Indonesia’s Consumer Confidence Was Down in June 2017
Consumer confidence in Indonesia (EIDO) fell to 122.4 in June 2017 from an all-time high of 125.9 in May 2017.
Manufacturing Activity in Indonesia Contracted in July 2017
Manufacturing activity in Indonesia (EEM) in July 2017 fell at its fastest pace in the last 19 months mainly due to the sharp decline in its output.
Indonesia’s Exports Fell in June 2017
Exports from Indonesia (EIDO) in June 2017 stood at $11.6 billion, a fall of 11.8% on a year-over-year basis and 19% on a month-over-month basis.
Here’s Why Indonesia’s Trade Surplus Rose in June 2017
Indonesia’s (EIDO) trade surplus in June 2017 stood at $1.6 billion as compared to $1.1 billion in the corresponding period last year and $0.57 billion in the previous month.
Inflation in Indonesia Fell in July: Is It a Correction or Trend?
Inflation in Indonesia (EEM) in July 2017 stayed in line with the market expectation of 3.9%.
What Drove Freeport’s 2Q17 Profits and Cash Flows?
Freeport-McMoRan generated free cash flows of $675 million in 2Q17, which took its 1H17 free cash flows to $1.1 billion.
Why Investors Need Not Worry Over the Asian Rally
Asian equities have seen a sharp rally in 2017 due to attractive valuations and upward earnings potential.
What the Markets Want to Hear in Freeport’s 2Q17 Earnings Call
Issues ranging from a labor impasse to frictions with the Indonesian government have hit Freeport’s Indonesian operations.
Why Indonesia’s Manufacturing Activity Contracted in June 2017
The Nikkei Manufacturing PMI in Indonesia (EIDO) fell to 49.5 in June 2017 from 50.6 in May 2017.
Could Global Manufacturing Activity Improve as It Enters 3Q17?
The JPMorgan Global Manufacturing PMI remained stable at 52.6 in June 2017. A consistent number indicates steady improvement in global manufacturing operating conditions in June compared to May.
Improved Global Trade Supports Indonesia’s Economy
Several external factors are expected to impact Indonesia’s economy in 2017. The US government’s protectionist stance is expected to influence global trade.
Indonesia’s Manufacturing Activity Fell in June 2017
The manufacturing PMI (purchasing managers’ index) in Indonesia (EIDO) fell to 49.5 in June 2017—compared to 50.6 in May 2017.
Indonesia Inflation Was Close to the Target in June 2017
Consumer prices in Indonesia (EEM) rose 4.4% on a YoY (year-over-year) basis in June 2017—compared to a 4.3% rise in May 2017.
Indonesian Exports Provide Support as Consumption Falls
The Indonesian (EIDO) economy rose 5.0% on a year-over-year basis in 1Q17. Indonesia’s performance in 1Q17 was mainly due to higher exports.
Why Analysts Expect Freeport-McMoRan’s 2Q17 Profits to Rise
Freeport is expected to post revenues of $3.8 billion in 2Q17 compared to $3.3 billion in 1Q17.
Freeport Is Fighting a Two-Front War in Indonesia
Freeport’s Indonesia issues aren’t limited to the labor issue. The company is also involved in a negotiation with the Indonesian government.
Freeport’s Indonesia Issues: Plot Thickens amid Layoffs
Freeport-McMoRan owns the Grasberg copper mine in Indonesia. The mine has been in the news for the last few quarters. Generally, the news hasn’t been good.
Will Grasberg Ghosts Keep Haunting Freeport in June?
Freeport-McMoRan’s (FCX) Grasberg mine in Indonesia has kept the company on its toes for the past few quarters.
Freeport-McMoRan’s 2017 Outlook: Grasberg Remains the Wild Card
In this article, we’ll look at Freeport’s 2017 outlook, keeping in mind both the bearish and bullish arguments.
Key Takeaways from Freeport-McMoRan’s 1Q17 Earnings Call
Indonesia (EIDO) issues dominated Freeport’s 1Q17 earnings call, which has been the case for the last several quarters.
Can Indonesia Remain an Emerging Market Favorite amid Religious Tension?
The Indonesian economy is steadily growing, fueled by strong domestic consumption and efforts by its government to instigate pro-market reforms.
Understanding Fiscal Reforms in Indonesia: The Impact of a New Administration in Jakarta
Investment climate reforms have improved Indonesia’s Ease of Doing Business rank, which has had a positive impact on its trade surpluses.
Indonesia Has High GDP Growth Expectations, but Will These Help Markets in 2017?
The World Bank is forecasting higher growth for Indonesia (IDX) at about 5.1% and 5.3% for 2017 and 2018, respectively.
Inside Freeport’s Indonesia Problem
Freeport-McMoRan (FCX) expects to ship 4.1 billion pounds of copper, 2.2 million ounces of gold, and 92 million pounds of molybdenum in 2017.
Freeport and Indonesia: What Could be the Key Contention?
Currently, Freeport is barred from exporting copper concentrates from Indonesia. The company’s export permit expired earlier this year.
Freeport-McMoRan’s Grasberg Issues: Impact on 2017 Earnings
Freeport has missed consensus earnings estimates in the last two quarters, mainly due to lower copper and gold production from the Grasberg mine.
Freeport-McMoRan’s Will-She-Won’t-She Moment with Indonesia
As of February 12, 2017, Freeport-McMoRan is barred from exporting copper ore from the Grasberg mine in Indonesia.
FCX Investor Notes: Could Grasberg Make Headlines in 2017?
Freeport-McMoRan and Rio Tinto, FCX’s partner in the Grasberg mine, are spending ~$1 billion per year to convert the mine to underground operations (BHP).
How Could Asset Sales Impact FCX’s 2017 Copper Volumes?
Freeport-McMoRan’s (FCX) 2017 copper volumes are expected to fall to 4.3 billion pounds—more than 10% below its expected 2016 volumes.
Freeport Investors Need to Brace for Lower Copper Volumes
Freeport’s 3Q16 shipments were lower than its guidance. While its energy sales were higher than its guidance, its gold and copper volumes fell short.
Thailand’s GDP Strengthens, Trade Surplus Narrows for Indonesia
Thailand’s economy rose by 3.5% on an annual basis in 2Q16. The GDP rose at the fastest pace since 1Q13. On a quarterly basis, its GDP grew by 0.8% in 2Q16.
Why Freeport Isn’t Constructing a Smelter in Indonesia
Earlier this year, Freeport-McMoRan’s (FCX) export permit in Indonesia was suspended, which the company acknowledged in its 4Q15 earnings call.
Freeport’s Indonesia Problems Aren’t Over Yet
Indonesia’s mining ministry has recommended granting an export permit to Freeport until January 11, 2017. The current export permit expired on August 8.
Inflation Rises in Taiwan, Indonesian GDP Beat Expectations
The inflation rate in Taiwan rose by 1.2% in July on an annual basis—above expectations of 1.1% growth and last month’s rise of 0.91% in consumer prices.
Freeport-McMoRan’s Q2 Call: Indonesia and Debt Reduction
We looked at Freeport-McMoRan’s (FCX) 2Q16 financial results. Now, we’ll look at the key takeaways from the company’s 2Q16 earnings conference call.
Australian Dollar Rises ahead of the RBA’s Minutes
The Australian dollar could gain more if the RBA doesn’t provide a strong hint of cutting interest rates. The central bank is concerned about economic growth.
How Much Could Freeport-McMoRan’s Sale of Its Morenci Stake Impact Indonesia?
According to Freeport-McMoRan’s agreement with Indonesia’s government, it will divest a 20.6% stake in the Grasberg mine to the government or its citizens.
Key Issues Facing Freeport-McMoRan’s Indonesia Operations
In 2014, Indonesia banned the exports of unprocessed minerals. Freeport-McMoRan and Newmont Mining were among the companies that were negatively impacted by this ban.
Russia and Saudi Arabia Play Hide and Seek in Syria
Russia’s presence in Syria is a threat to Saudi Arabia. There’s already cut-throat competition in the crude oil market. This increases the geopolitical tension.
Why Is Indonesia Important as a Net Importer of Oil for OPEC?
Indonesia is looking for a long-term strategic alliance to support the demand of crude oil for its economy. Since 2003, Indonesia has been a net importer of oil.
Will Freeport-McMoRan’s Growth Projects Pay Off?
Freeport is pursuing the Cerro Verde mill growth project in Peru. Freeport owns a 53.56% stake in Cerro Verde. It’s expected to become the world’s largest copper concentration capacity.
Chilean Copper Production Falls, Chinese Production Rises
Chile is the largest copper producer and exporter. Analysts watch its copper production data closely. Supply disruptions in Chile could be a reason for the uptick in copper prices.