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.
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.
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.
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.
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.
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.
Miners Post Record Earnings as Commodities Rebound
In this part of our series, we’ll do a comparative analysis of mining companies’ adjusted EBITDA.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
What Are Freeport-McMoRan’s Long-Term Growth Drivers?
Freeport has several greenfield copper exploration opportunities.
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.
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.
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.
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.
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.
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.”
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.
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.
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.
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.
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.
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.
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.
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.
Should Southern Copper Investors Expect Higher Dividends?
In the previous part of this series, we looked at Freeport-McMoRan’s (FCX) capital allocation strategy.
Understanding Freeport’s Capital Allocation Strategy
As copper market conditions have improved, companies have also taken another look at their capital allocation strategies.
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.
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.
Comparing Copper Miners’ 4Q17 Performance
We’re now nearing the end of 4Q17 earnings season, and most copper miners have released their results.
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.
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.
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.
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.
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%.
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.
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.”
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.
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.
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.
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.
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.
What Teck Resources Investors Could Expect in 2018
Asia is the biggest market for Teck Resources’ coal division, accounting for 75% of its shipments.
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.
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.
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.
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.
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).
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.
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.
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.
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 […]
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.
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).
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.
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.
Why Analysts Have Been Turning Bullish on Glencore
On December 5, BMO Capital upgraded Glencore from “market perform” to “outperform.”
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.
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.
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.
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.
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.
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.”
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.
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.
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.
Is Freeport-McMoRan or Southern Copper More Profitable?
Freeport-McMoRan (FCX) posted adjusted EBITDA of $1.6 billion in 3Q17.
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.
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.
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).
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.
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.
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.
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.
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).