FCX Stock Is a Good Buy for Investors as Copper Prices Top $10,000
Copper Weaker on August 19 Due to Weaker Demand Signs
After starting the day with decreased momentum, copper prices remains mixed on Friday, August 19. At 1:50 PM EDT on August 19, the COMEX copper futures contract for September delivery was trading at ~$2.17 per pound, a gain of ~0.16%.
All of the Base Metals Recovered Except for Tin
After a string of losing days, base metals recovered on January 13, 2016. Except for tin, all of the base metals rose on January 13 in the LME.
Is Future Growth Driving the Divergence between Freeport and SCCO?
Southern Copper (SCCO) is aggressively expanding its copper mining operations while Freeport-McMoRan (FCX) is selling its crown copper assets to repay some of its debt.
Base Metal Miners Recover
In the week ended December 26, the equities of all major base metal miners gained, recovering from losses in the week prior.
Copper Rose to 1-Month High Price Levels on September 20
At 1:15 PM EST on September 20, the COMEX copper futures contract for December delivery rose ~0.35%. It was trading at $2.16 per pound.
Can Freeport-McMoRan’s 2Q16 Earnings Justify Its Rally?
Freeport-McMoRan (FCX) is expected to release its 2Q16 earnings on July 26. In this series, we’ll explore what Wall Street analysts expect from FCX’s 2Q16 earnings.
Freeport or Glencore: Which Company Looks Set for 2017?
According to data compiled by Thomson Reuters, analysts expect Freeport-McMoRan (FCX) to post an adjusted EBITDA of $5.3 billion in 2017, compared to $4.9 billion in 2016.
Copper Weakened amid Recovery in Dollar on August 3
After starting the day on a weaker note on Wednesday, August 3, copper maintained the same sentiment throughout the day and declined lower.
Copper Remains Stable as Brexit Fears Eased
Although the fundamentals are not as supportive of the Market’s sentiment, the weakness of the dollar and decreased anxiety over the Brexit vote helped copper on Friday.
Why Did Copper Ignore Stimulus from China?
Copper prices experienced a roller coaster ride on Monday after important market-moving news from China.
Base Metal Miners Declined the Week Ended January 2, 2016
The equities of major base metal mining companies fell in the week ended on January 2. Freeport-McMoRan, one of the leading copper producers, fell last week and ended in a loss.
Base Metal Miners on Tuesday, March 22: Some Up, Some Down
Freeport-McMoRan (FCX), one of the largest copper miners, rose for the second consecutive trading day on Tuesday, March 22, 2016. It closed the day at $10.99, a rise of 1.8%.
Why Did Merrill Lynch Resume Coverage of Freeport-McMoRan?
On Wednesday, March 2, 2016, Merrill Lynch resumed Freeport-McMoRan’s (FCX) coverage, with a neutral rating and a price target of $9.
Base Metal Miners Freeport-McMoRan and Glencore Fell Last Week
Freeport-McMoRan is one of the largest copper miners in the world. It fell for the second consecutive trading week. In the week ending on April 2, it fell 2.2%.
Copper Prices Hold at $4,500 amid Commodity Meltdown
Copper has been on a downtrend for nearly two months. The goodwill generated by supply cuts by major miners failed to last beyond a month, and copper again resumed its downtrend.
Must-know: Why did Omega Advisors exit its Wells Fargo position?
Omega Advisors Inc. is a New York–based investment advisory firm founded in 1991 by Leon G. Cooperman. Omega sold a 1.05% position in Wells Fargo.
China’s PMI and US Job Additions Push US Stocks Down
US stocks didn’t have a great start last week. Reports emanating from China drove US markets down sharply, but they rebounded the next day when Microsoft (MSFT) helped them bounce back.
Must Know: Goldman Provided Fodder to Copper Bears
Goldman Sachs (GS) now expects copper prices to fall to $4,000 per metric ton this year. In its previous guidance, Goldman had expected copper to fall to $4,500 per metric ton in 2016.
Why Did Base Metals Fall in the Second Week of March?
LME nickel fell to lower price levels last week and stood as the biggest loser in base metals. It fell 5.5% and ended the week at $8,830 per metric ton.
Base Metals Dive after Opening the Week on a Surge
All base metals declined that day on the LME, and LME nickel was the biggest loser of the day in base metals with a decline of 2.8%.
Why Is Copper Trading High in the Early Hours on September 14?
At 6:20 AM EST on September 14, the COMEX copper futures contract for December delivery was trading at $2.13 per pound—a gain of ~1.2%.
Base Metals Continue to Rise in the London Metal Exchange
The base metals found some relief on January 13, 2016. They carried the same positive sentiment to January 14. All of the base metals rose in the LME.
Copper Dove in July 22 Due to a Stronger Dollar
At 1:15 PM EDT on July 22, major copper producers Freeport-McMoRan (FCX), Billiton (BHP), and Rio Tinto (RIO) fell by ~1.7%, ~1.7%, and ~1.19%, respectively.
Freeport-McMoRan Sees More Room to Cut Costs
Freeport-McMoRan expects its copper unit cash costs after by-product credits to be $1.10 per pound in 2016, a year-over-year reduction of more than 28%.
Southern Copper’s Financial Performance: Key Investor Takeaways
Southern Copper’s financial performance has weakened over the last couple of years. Its falling revenues are largely attributable to copper price volatility.
China’s April Trade Data: What It Means for Metal Investors
China released its April trade data on May 8. The data weren’t received well by investors. Asian markets were trading lower in early trade.
Is Freeport-McMoRan, FCX, Stock a Buy or Sell?
What Does Freeport-McMoRan’s Rebound Mean for Investors?
The upward momentum in Freeport could keep bears at bay for some time.
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.
Freeport-McMoRan Plans to Cut Its Debt by $10 Billion—But How?
During the 4Q15 earnings conference call, Freeport-McMoRan’s CEO, Richard Adkerson, stated the company would “take immediate steps to reduce debt to enhance shareholder value.”
Attention Freeport-McMoRan Investors: Here’s What to Watch in 2016
There’s a long road ahead for Freeport-McMoRan’s asset sales program. The company is looking to raise between $5 billion and $10 billion in 2016.
Freeport-McMoRan’s Technical and Fundamental Indicators
Freeport-McMoRan (FCX) closed at $10.54 on September 21. It rose almost 6% from its closing the previous day. The stock has gained 2.4% in September.
How Freeport’s Valuation Looks Going into 3Q16
Freeport’s asset sales program has restored investor confidence, helping it to trade at a higher valuation multiple.
What Analysts Expect from Century Aluminum’s 3Q15 Earnings
According to data compiled by Bloomberg, Century Aluminum is expected to post revenues of $445.7 million in its 3Q15 earnings release. In 2Q15, it had net revenues of $523.5 million.
Will Teck Resources Have a Merry Christmas in 2017 Also?
Higher commodity prices and an improved risk-on sentiment were Teck Resources’ key drivers in 2016.
Freeport-McMoRan Sees Analysts Cut Their Price Targets
Of the 20 analysts surveyed by Bloomberg, only four rate Freeport-McMoRan’s (FCX) stock a “buy,” while two analysts rated it a “sell.” An overwhelming majority of analysts rate FCX as a “hold.”
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.
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.
Why Freeport Needs a Friendly Fed Like Never Before
Higher gold prices couldn’t have come at a better time for Freeport. The company is grappling with sagging metal prices in its core copper mining business.
Understanding Glencore’s Metals and Mining Business
Glencore’s metals and mining segment was the second-biggest contributor to its 1H15 revenues.
Global Turmoil Continues to Weigh on Freeport-McMoRan
Metal shares bear the brunt whenever there’s a global turmoil in the markets. China’s slowdown could continue to weigh heavily on metal companies like Freeport.
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.
Copper Executives Chime In on Copper Industry Outlook
Though the long-term copper outlook seems much better compared to steel and iron ore, there seems to be more short-term pain as is apparent in the falling copper prices.
What Rio Tinto’s Balance Sheet Means for Future Growth
Rio Tinto’s (RIO) net debt at the end of 1H17 was $7.6 billion, compared with $12.9 billion at the end of 1H16 and $9.6 billion at the end of December 2016.
What to Expect from Freeport-McMoRan’s 3Q15 Earnings
Looking at Freeport’s earnings sensitivity to WTI and copper prices, its 3Q15 earnings could take a hit compared to the previous quarter.
Icahn Lift or Commodity Drag: What Could Drive Freeport-McMoRan?
Freeport-McMoRan (FCX) jumped smartly in August after activist investor Carl Icahn disclosed his 8.5% stake in the company, known as the “Icahn lift.”
US-China Trade War: Tariffs despite Continued Talks
The US (SPY) and China (FXI) have imposed tariffs on $16 billion worth of goods. The tariffs were imposed despite talks in Washington, DC.
Global Copper Inventory Stabilizes, Supports Prices
Stable copper inventories seem to support copper prices. Copper’s upside might be capped due to global uncertainty and copper’s projected surplus.
Will Freeport Follow Glencore and Restore Its Dividend?
Freeport-McMoRan and Glencore suffered from the same issues last year. While Glencore restored its dividend, Freeport hasn’t restored its dividend yet.
Is the Projected Surplus Weighing on Copper This Year?
Copper’s apparent demand has been better-than-expected this year on the rise in Chinese construction activity coupled with an increase in the country’s bonded stocks.
What Chile’s Mining Strike Means for a Highly Privatized Economy
Chile had been known as the best-managed economy in Latin America—until recently.
How Are Analysts Rating Southern Copper This Month?
According to consensus estimates compiled by Bloomberg, Southern Copper (SCCO) has a one-year price target of $27.82—7.5% above its current stock price.
Rio Tinto Maintained Copper Production Guidance for 2015
Rio Tinto (RIO) had combined its coal and copper divisions to form a single division earlier in the year. Together they contributed to 20% of RIO’s underlying EBITDA for 1H15.
BHP’s Balance Sheet: The 2017 Outlook
BHP’s net debt was $20.1 billion at the end of December 2016, as compared to $26.1 billion on June 30, 2016.
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.
Do Analysts See Value in Turquoise Hill Resources?
According to Reuters, TRQ has a mean one-year price target of 5.68 Canadian dollars (~$4.28), which is a 24.3% upside over its closing price on January 20.
Carl Icahn’s Big Plans for Freeport-McMoRan
Announcing his 8.5% stake in Freeport-McMoRan, Carl Icahn said that he plans to discuss capital expenditures and more with Freeport management.
Chinese Copper Imports Impact the Global Inventory
Since China’s refined copper imports started to taper down starting in April, we saw big drawdowns in the SHFE copper inventory.
Key Takeaways from Freeport-McMoRan’s 3Q16 Earnings Call
During its 3Q16 earnings call, Freeport-McMoRan (FCX) reduced its production guidance. The company expects its 2016 copper shipments to be 4.8 billion pounds.
Don’t Get Too Carried Away with Record Chinese Copper Imports
China is the world’s biggest copper importer.
Copper Industry Gets a Lift in 1H2015
In this series, we’ll discuss recent copper industry indicators. We’ll see how copper prices have done in 2015. We’ll also discuss copper supply trends and demand.
Freeport-McMoRan’s 1Q18 Earnings: The Word on Wall Street
Freeport-McMoRan, the leading US copper miner, is slated to release its 1Q18 earnings on April 24.
Can BHP Maintain Its Dividends in 2016?
BHP Billiton is facing pressure in all the commodity businesses it’s involved in. At spot prices, free cash flow doesn’t cover the company’s dividends.
How Commodity Prices Could Affect Freeport’s 3Q16 Earnings
In 2Q16, Freeport reported average realized prices of $2.18 per pound for copper, $1,292 per ounce for gold, and $41.1 per barrel for oil.
Inside BHP Billiton’s Recent Upgrades and Downgrades
Of the 19 analysts covering BHP Billiton (BHP), four analysts issued “buy” recommendations, while 12 issued “holds,” and three issued “sells.”
Inside Rio Tinto’s Copper Outlook
Rio reported a loss of $69 million in 1H17, compared with its loss of $56 million in 1H16.
Appaloosa Management starts new positions in FCX, INGR, CYH, THC and sells MSFT, CMCSA—13F Flash E
In this six-part series, we’ll go through some of the main positions Appaloosa Management traded this past quarter. Why sell Microsoft (MSFT)?
How Do Analysts Rate Glencore after 2016 Earnings?
Glencore has come a long way since September 2015 when the stock fell to multiyear lows.
Do Lower Chinese Copper Imports Concern Freeport?
In October, China imported 290,000 metric tons of unwrought copper and copper products—a yearly fall of more than 31%. Imports have fallen for seven months.
Can Chinese Copper Imports Help Lift Freeport-McMoRan Stock?
In April, China imported ~1.6 million metric ton of copper ore and concentrates, which is 13.9% higher than in April 2017.
Freeport-McMoRan Looks to Control Costs amid Copper Price Slump
Copper companies have been working to reduce their unit production costs to survive the current slump in copper prices.
Copper’s Spike Could Impact Freeport’s Debt Reduction Plan
During its 4Q15 earnings conference call, Freeport mentioned a debt reduction program to raise $5 billion–$10 billion to shore up its balance sheet.
Freeport-McMoRan’s Debt Reduction Plan: Key Takeaways
During its 4Q15 earnings conference call, Freeport-McMoRan (FCX) mentioned a debt reduction program to raise $5 billion–$10 billion to shore up its balance sheet.
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.
China’s June Copper Imports: Are Slowdown Talks a Sham?
China isn’t self-sufficient when it comes to raw materials. When it comes to copper imports, it’s the largest importer of copper ores, anodes, and refined copper.
What Would Future Asset Sales Mean for Freeport-McMoRan?
Although additional asset sales would be positive for Freeport-McMoRan, we might not see a big pop in prices similar to the Morenci transaction.
Base Metals Hammered by Weak Chinese Data
China is the top consumer of base metals, accounting for 45% of global demand, so economic releases from China have a large impact on base metal prices.
Supply Uncertainty: Aluminum Takes the Baton from Copper
In 2018, analysts expected disruptions in the copper supply. However, the copper supply has been resilient in 2018.
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.
Sluggish Chinese Copper Imports Spell Trouble for Freeport
China isn’t self-sufficient when it comes to its copper needs. While copper mining is concentrated in Latin America, more than half of the world’s copper is consumed in Asia.
The Key Risks Facing Southern Copper
The biggest risk facing the entire mining industry (XME) is the way Chinese demand will play out. Concerns over the Chinese slowdown could continue to weigh heavily on metal prices.
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.
An Investor’s Guide to Freeport-McMoRan’s 2015 Outlook
Freeport’s 2015 outlook includes copper sales up 7.5% and gold up 4% YoY. Molybdenum sales should remain flat this year, while energy sales should drop 8%.
How Could Rio Tinto’s Copper Production Pan Out Going Forward?
Copper volumes are key for companies that produce copper. In this part of the series, we’ll look at Rio Tinto’s (RIO) copper production profile.
Why Freeport’s 2017 Guidance Could Be in Disarray
Freeport’s 2017 guidance could be in disarray because of Grasberg issues. Freeport’s debt reduction plan would be impacted due to the Grasberg impasse.
How Analysts View Freeport after Its 3Q17 Earnings Beat
Freeport-McMoRan released its 3Q17 earnings on October 25, posting revenues of ~$4.3 billion in 3Q17, compared with ~$3.7 billion in 2Q17.
What Does the Flattening Yield Curve Indicate for Investors?
Bond markets are experiencing rising yields due to higher economic growth expectations. However, the 10-Year Treasury yield was still low at 2.4% on March 29, 2017
What’s Driving BHP Billiton’s Copper Costs Now?
Unit cash production costs are a key metric for investors in the metals and mining space.
Base Metals Fell Last Week: FCX, AA, GLNCY, BHP
In the week ended on January 9, all base metals on the London Metal Exchange (LME) declined. The LME 3M Lead was the biggest loser of base metals last week with a loss of 9.6%.
How Freeport’s profit margins compare to other copper producers
Freeport has the lowest profit margins compared to other copper producers. This could be due to Freeport’s exposure to energy sales.
How Much Are Supply-Side Factors Helping Copper Prices?
Producers like Freeport-McMoRan and Glencore announced production cuts last year in response to falling metal prices. There were also unplanned outages.
Teck Resources’ 2Q17 Earnings: What’s the Word on Wall Street?
Teck Resources (TECK), the Canada-based diversified miner (EWC), is scheduled to release its 2Q17 earnings on July 25.
Strong US Copper Demand Indicators Bode Well for Freeport-McMoRan
An uptick in construction activity would lead to higher copper demand. Construction spending has been strong in the US, breaching the $1 trillion annualized mark for three straight months.
BHP’s Fiscal 1H17 Results: What the Analysts Think
Of the 21 analysts covering BHP, seven analysts have issued “buy” recommendations, while 11 have “hold” recommendations.
Will BHP Billiton’s Estimates Keep Rising in 2017?
Analysts estimate BHP Billiton to deliver revenues of $37.9 billion for 2017—a fall of 1% YoY (year-over-year).
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.
Why September Popped for Freeport-McMoRan’s Investors
On September 12, Freeport-McMoRan (FCX) announced the sale of its Deepwater Gulf of Mexico energy assets to Anadarko Petroleum (APC) for a cash consideration of $2 billion.
Will Elliott Management Start Taking an Active Interest in Alcoa?
Elliott Management plans to engage in a “constructive dialogue” with Alcoa’s board about Alcoa’s split transaction and “additional available opportunities to maximize shareholder value.”
China’s July Copper Imports: What They Mean for Freeport-McMoRan
In July, China imported 360,000 metric tons of unwrought copper and copper products. That was a YoY (year-over-year) increase of only 3.4%.