Glencore Plc

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  • uploads///part  copper price
    Basic Materials

    What’s Keeping Copper Prices Strong this Year?

    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.

    By Mohit Oberoi, CFA
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    Basic Materials

    Freeport-McMoRan: All’s Well that Ends Well

    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.

    By Mohit Oberoi, CFA
  • uploads///part  global demand
    Basic Materials

    Copper Demand: Is It Time to Look beyond China?

    Over the last several years, Chinese copper demand has been a key driver of global copper demand.

    By Mohit Oberoi, CFA
  • uploads///part   drivers
    Basic Materials

    Here’s What Could Drive Freeport-McMoRan’s 2018 Performance

    Along with the Indonesia issues, the markets could be watching to see how Freeport allocates capital in 2018.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    Key Chinese Data for Freeport Investors This Week

    China’s fixed asset investment data will be released on November 14. Its fixed asset investment data missed analysts’ estimates for the last two months.

    By Mohit Oberoi, CFA
  • uploads///part  eps
    Basic Materials

    Why Markets Gave Freeport’s 3Q17 Earnings Beat a Miss

    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.

    By Mohit Oberoi, CFA
  • uploads///part  ebitda
    Basic Materials

    Miners Post Record Earnings as Commodities Rebound

    In this part of our series, we’ll do a comparative analysis of mining companies’ adjusted EBITDA.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  free cash
    Basic Materials

    Dividend Reinstatement: ArcelorMittal Will Take Baby Steps

    ArcelorMittal suspended its dividend program in 2015 in response to tough market conditions. ArcelorMittal looks on track to reinstate its dividend in 2018.

    By Mohit Oberoi, CFA
  • uploads///part  rating
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  earnings call
    Basic Materials

    Investors Are Interested in These Key Updates from Freeport

    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.

    By Mohit Oberoi, CFA
  • uploads///part  ebitda
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  risk
    Basic Materials

    Freeport’s Major Risks in the Short Term

    A strong balance sheet helped address one of key investors’ concerns regarding Freeport’s higher leverage ratio.

    By Mohit Oberoi, CFA
  • uploads///part  fcx
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  rating
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  freport indoesia
    Basic Materials

    Freeport and Indonesia: The Tussle Continues

    Freeport and the Indonesian government are involved in a discussion to extend Freeport’s mining rights in Indonesia beyond 2021.

    By Mohit Oberoi, CFA
  • uploads///part  copper
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  copper
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    What Are Freeport-McMoRan’s Long-Term Growth Drivers?

    Freeport has several greenfield copper exploration opportunities.

    By Mohit Oberoi, CFA
  • uploads///part  dividend
    Basic Materials

    Glencore’s Dividend Policy: What You Need to Know

    Glencore wants to maintain its net debt between $10 billion and $16 billion. It wants to maintain its net debt-to-EBITDA ratio below 2.

    By Mohit Oberoi, CFA
  • uploads///part  eps
    Basic Materials

    Can Freeport’s 4Q17 Earnings Keep Investor Optimism Alive?

    Freeport-McMoRan (FCX), the leading US-based copper miner (XME), is scheduled to release its 4Q17 earnings on January 25.

    By Mohit Oberoi, CFA
  • uploads///part  glencore
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  copper
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  copper
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  fcx
    Basic Materials

    Why Freeport-McMoRan the Most ‘Hold’ Ratings among Top-Rated Copper Stocks

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

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    Copper Miners: What to Expect in December

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

    By Mohit Oberoi, CFA
  • uploads///part  revenues
    Basic Materials

    Inside Freeport-McMoRan’s 4Q17 Revenue Beat

    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.

    By Mohit Oberoi, CFA
  • uploads///part  metals breakup
    Company & Industry Overviews

    Glencore’s Views on the Vehicle Electrification Story

    Glencore sees zinc and thermal coal demand going up as a result of vehicle electrification. Glencore is the leading cobalt and zinc producer.

    By Mohit Oberoi, CFA
  • uploads///part  anto
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///stock trading monitor desk
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///mining _
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  valuation
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///coin _
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  scco
    Basic Materials

    Should Southern Copper Investors Expect Higher Dividends?

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

    By Mohit Oberoi, CFA
  • uploads///part  freeport capital allocation
    Basic Materials

    Understanding Freeport’s Capital Allocation Strategy

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

    By Mohit Oberoi, CFA
  • uploads///part  interest coverage
    Basic Materials

    Comparing Freeport’s Interest Coverage Ratio to Southern Copper

    In this part of our series, we’ll look at different copper miners’ interest coverage ratios.

    By Mohit Oberoi, CFA
  • uploads///part  labor
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///coins _
    Basic Materials

    Comparing Copper Miners’ 4Q17 Performance

    We’re now nearing the end of 4Q17 earnings season, and most copper miners have released their results.

    By Mohit Oberoi, CFA
  • uploads///part  anto
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  aal
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  glencore
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///trade _
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///metal
    Basic Materials

    China’s January Trade Data: Implications for Metal Investors

    On February 8, China released its trade data for January. In dollar terms, China’s exports rose 11.1% YoY (year-over-year), while imports rose 36.9%.

    By Mohit Oberoi, CFA
  • uploads///part  leverage
    Basic Materials

    Why Miners Are Favoring a Flexible Dividend Policy

    As commodity prices have been strong over the last few quarters, several metals and mining companies have taken a generous view of their dividend policies.

    By Mohit Oberoi, CFA
  • uploads///part  grasberg
    Basic Materials

    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.”

    By Mohit Oberoi, CFA
  • uploads///part  freeport shipments
    Basic Materials

    Freeport-McMoRan Is Positive on Copper’s Outlook

    Looking at major copper miners’ 2018 operating plans, global mined copper production could increase on a yearly basis this year.

    By Mohit Oberoi, CFA
  • uploads///part  eps
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  eps
    Basic Materials

    Freeport-McMoRan’s 4Q17 Earnings: What You Need to Know

    Freeport-McMoRan (FCX) reported its 4Q17 earnings on January 25, 2018. The company reported an adjusted net income of $750 million.

    By Mohit Oberoi, CFA
  • uploads///part  ebitda
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  revenues
    Basic Materials

    Are Analysts’ Estimates for Freeport’s Revenues Conservative?

    Analysts polled by Thomson Reuters expect Freeport to post revenues of $4.7 billion in 4Q17, which is 9.5% higher than the sequential quarter.

    By Mohit Oberoi, CFA
  • uploads///part  coal percentage
    Company & Industry Overviews

    What Teck Resources Investors Could Expect in 2018

    Asia is the biggest market for Teck Resources’ coal division, accounting for 75% of its shipments.

    By Mohit Oberoi, CFA
  • uploads///part  debt
    Basic Materials

    Could Freeport-McMoRan Reinstate Its Dividend in 2018?

    Freeport-McMoRan (FCX) has cut its net debt by more than half over the last two years. It achieved that by exiting its energy assets and selling some of its copper assets.

    By Mohit Oberoi, CFA
  • uploads///part  guidance
    Basic Materials

    How Teck Resources’ Growth Drivers Could Change in 2018

    Along with coking coal, zinc, and coking coal, Teck Resources (TECK) could also start to realize earnings from its oil sands project.

    By Mohit Oberoi, CFA
  • uploads///part  copper price
    Basic Materials

    Teck Resources in 2017: From Stake Sale to Share Buyback

    Although Teck Resources (TECK) stock managed to rise 23.9% in 2017 due to the so-called Santa Claus rally in December 2017, it was a lackluster year overall for the company.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    Teck Resources’ 2018 Outlook: Can the Uptrend Continue?

    Teck Resources (TECK), the Canada-based diversified miner (EWC), rose 23.9% in 2017. While its 2017 gains look decent, most of them came in December.

    By Mohit Oberoi, CFA
  • uploads///part  us dollar
    Basic Materials

    How the US Dollar Might Impact Copper Prices in 2018

    Copper, like other dollar-denominated commodities, has a negative correlation with the US dollar (UUP).

    By Mohit Oberoi, CFA
  • uploads///part  scrap
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  china demand
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  glencore copper production
    Basic Materials

    Is Glencore Really a Play on Electric Vehicles?

    Electric vehicles Glencore (GLEN-L), as well as some other miners, see EVs (electric vehicles) causing a disruption in metal markets. Several leading miners are looking for assets to position themselves as suppliers to the EV market. Mining companies are looking at cobalt, lithium, and copper assets to strengthen their asset base. Copper has attracted mining […]

    By Mohit Oberoi, CFA
  • uploads///part  tesla valuation
    Basic Materials

    Metals Transition from ‘Trump Effect’ to ‘Tesla Effect’

    Metals seem to have moved from the “Trump effect” to the “Tesla effect.” On December 12, 2017, Glencore (GLEN-L) held its annual investor update.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    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).

    By Mohit Oberoi, CFA
  • uploads///part  teck
    Basic Materials

    Why Teck Resources Announced a Share Buyback

    Teck Resources has announced a share buyback, which could mean it believes the stock is undervalued by the markets.

    By Mohit Oberoi, CFA
  • uploads///part  imports
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  glen
    Basic Materials

    Why Analysts Have Been Turning Bullish on Glencore

    On December 5, BMO Capital upgraded Glencore from “market perform” to “outperform.”

    By Mohit Oberoi, CFA
  • uploads///part  copper price
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    Metals Experience Selling Pressure after Strong 2017

    In November, aluminum shed almost 5.0% and copper lost ~0.3%. However, we’ve seen a fresh wave of selling in industrial metals this month.

    By Mohit Oberoi, CFA
  • uploads///part  copper price
    Basic Materials

    Which Copper Miner Is Wall Street Betting On in 2018?

    In this series, we’ll see how analysts are rating leading copper miners as 2017 draws to a close. We’ll also see how vehicle electrification could impact mining companies.

    By Mohit Oberoi, CFA
  • uploads///part  freport
    Basic Materials

    Why Freeport’s Copper and Gold Volumes Could Fall in 2019

    Freeport-McMoRan (FCX) expects to produce 3.7 billion pounds of copper this year. The company produced 4.7 billion pounds of copper last year.

    By Mohit Oberoi, CFA
  • uploads///part  copper supply
    Basic Materials

    Copper Supply: Why Freeport Management Foresees a Shortfall

    In the previous part of this series, we looked at the copper demand outlook. In this article, we’ll analyze copper supply dynamics.

    By Mohit Oberoi, CFA
  • uploads///part  demand tesla
    Basic Materials

    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.”

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  valuation
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  ebitda
    Basic Materials

    Is Freeport-McMoRan or Southern Copper More Profitable?

    Freeport-McMoRan (FCX) posted adjusted EBITDA of $1.6 billion in 3Q17.

    By Mohit Oberoi, CFA
  • uploads///part  cost
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part  teck strategy
    Basic Materials

    How Glencore and TECK’s Capital Allocation Strategies Stack Up

    Capital allocation is key for metal and mining companies given the industry’s capital-intensive nature.

    By Mohit Oberoi, CFA
  • uploads///part  freeport news
    Basic Materials

    Indonesia Issues Kept Freeport in the Limelight Last Week

    Freeport-McMoRan (FCX) owns the giant Grasberg mine in Indonesia along with Rio Tinto (RIO) (TRQ).

    By Mohit Oberoi, CFA
  • uploads///part  price action
    Basic Materials

    Metal Prices Fell on Demand Concerns Last Week

    In this series, we’ll look at the key developments that impacted mining companies last week. We’ll also look at some of the company-specific developments that impacted mining stocks.

    By Mohit Oberoi, CFA
  • uploads///part  indonesia
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///part
    Basic Materials

    Analyzing Copper’s Supply-Side Issues

    Copper’s supply-side dynamics are different from some of the other metals. Copper miners need to replenish their falling reserves with new mines.

    By Mohit Oberoi, CFA
  • uploads///part  copper price
    Basic Materials

    Copper’s on a High: Why Investors Are Optimistic

    Copper prices have regained momentum in October after showing weakness in the last month. So far, copper has risen 4.9% in October.

    By Mohit Oberoi, CFA
  • uploads///part  glen
    Basic Materials

    Which Major Copper Stock Has the Most ‘Buy’ Recommendations?

    Glencore (GLEN-L) was the third-largest copper producer last year, after Codelco and Freeport-McMoRan (FCX).

    By Mohit Oberoi, CFA
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