Southern Copper Corp
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.
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 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.
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.
World Refined Copper Production Rose 5% in 1Q15
Refined copper production in China rose 9% YoY until March. China was the biggest contributor to the surge in refined copper production.
What Does Freeport-McMoRan’s Rebound Mean for Investors?
The upward momentum in Freeport could keep bears at bay for some time.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
How Do Analysts Rate Glencore after 2016 Earnings?
Glencore has come a long way since September 2015 when the stock fell to multiyear lows.
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.
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.
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%.
Is There a Way Out for Investors in Brazil-Focused Mutual Funds?
For investors who are accepting of losses incurred, it would be advisable to withdraw. For others, patience is likely the best bet.
Why BHP’s Copper Production Is in a Medium Term Downtrend
BHP’s total copper production for 1Q15 was 3% lower YoY, at 377 thousand tons. But this was expected as grade declines at Escondida kicked in.
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’s Driving BHP Billiton’s Copper Costs Now?
Unit cash production costs are a key metric for investors in the metals and mining space.
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.
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).
Why Copper Prices Could React to OPEC’s Meeting
The prices of all the commodities have been falling for more than a year. Copper prices fell since February 2011 when it crossed the $10,000 per tonne level.
Can Freeport-McMoRan’s 3Q15 Earnings Surprise Markets?
Freeport-McMoRan is expected to release its 3Q15 financial results on October 22, 2015.
Copper Miners’ First-Quarter Report Card: Hits and Misses
We’re now reaching the end of the first quarter earnings season, and most mining companies have already released their quarterly earnings results.
What Just Happened to BHP Billiton’s Earnings Estimates?
Increasing inventories amid a strong supply outlook for iron ore is now taking a toll on prices.
Strong Dollar, Weak Gold: Why Do They Affect Copper Producers?
Gold prices have been weak for several quarters, moving around the $1,200 per ounce level. In order to meet debt reduction targets, Barrick Gold divested stake in some of its mines.
Why Southern Copper Is Trading at a Premium to Freeport-McMoRan
Southern Copper has historically traded at a premium to Freeport.
Has Freeport Become a Play on Energy Prices?
Crude oil prices rebounded in April. Higher energy prices bode well for Freeport.
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.
Chinese Copper Imports: Can Freeport’s Good Run Continue?
Previously in this series, we’ve looked at China’s July steel and aluminum exports. In this final part of the series, we’ll look at Chinese copper imports.
Copper Surplus Widens as Chinese Production Rises Unabatedly
The surplus adds to existing copper inventories. The ICSG estimates that the copper inventory at major exchanges totaled 497,431 tons at the end of May.
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.
What a Complete Shutdown at Grasberg Could Mean for Freeport
If Freeport-McMoRan completely shuts down its Grasberg mine, there could be a significant impact on the company.
Will Freeport-McMoRan’s 4Q15 Earnings Calm Worried Investors?
Freeport-McMoRan (FCX) is expected to release its 4Q15 earnings on January 26. The company’s earnings will come as the company fights for survival.
How Are Analysts Rating Freeport amid Trade War Fears?
Among other factors, the concerns over escalating frictions between the United States and China have contributed to copper’s downfall.
BHP Billiton’s staging a comeback in copper volumes
BHP Billiton’s (BHP) total copper production decreased by 2% in the December 2014 half-year to 813 kilotons.
Has Copper’s Bullish Thesis Been Threatened?
Among other factors, a wave of labor negotiations has lent support to copper’s bullish thesis.
Will Copper Prices Fall Even More Amid Global Carnage?
Spot copper prices on the LME (London Metals Exchange) closed at $5061 per metric ton on August 21—up roughly 1% from the previous day’s closing.
Barrick’s copper production down, Lumwana at risk
The Zambian government is proposing to increase the royalty on open-pit mines to 20%, compared to 6% that Barrick Gold (ABX) is currently paying. If approved, this move will challenge the economic viability of the Lumwana mine.
Salobo mine to drive copper volumes at Vale SA
Vale’s proven and probable copper reserves totaled 1.39 billion tons at the end of 2013. Salobo mine accounted for ~80% of these reserves.
Should Doctor Copper Be Thanking Xi-Trump Bonhomie?
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.
Why Freeport-McMoRan Is in Free Fall This Month
Freeport-McMoRan stock is in free fall this month. The stock has fallen 21.3% in August and is now down 14.5% for the year.
Freeport-McMoRan: What to Expect after Last Week’s Sell-Off
Freeport-McMoRan (FCX), the leading US-based copper miner (XME), saw a selling spree after its first-quarter earnings were released.
Freeport-McMoRan’s Valuation: What’s Priced In?
Freeport-McMoRan (FCX) is valued at 9.4 times its 2019 expected EBITDA and 7.0 times its 2020 expected EBITDA.
How Analysts See Copper Miners as Prices Stabilize
The metals and mining space has seen a lot of turbulence over the last five years. In 2015, China’s slowdown concerns spooked commodity investors.
Freeport-McMoRan: Party Continues as Chinese Copper Imports Surge
Freeport-McMoRan (FCX) surged 6.9% yesterday, boosted by an upgrade from Morgan Stanley to “overweight.”
Why Freeport-McMoRan Is Surging Today
Freeport-McMoRan (FCX), the leading US-based copper miner, is trading with gains of 5.5% as of 11:55 AM EST.
Freeport-McMoRan: Should You Think Like Warren Buffett
Freeport-McMoRan Freeport-McMoRan (FCX) is valued at an EV-to-EBITDA (enterprise value-to-EBITDA) of 6.6x its 2019 expected EBITDA. Among other mining companies, Vale (VALE) and Rio Tinto (RIO) have EV-to-EBITDAs of 6.09x and 5.43x, respectively. Southern Copper (SCCO) has a 2019 EV-to-EBITDA of 7.7x. If we consider these valuation multiples alone, Freeport could appear relatively overpriced. However, as […]
Does Freeport-McMoRan Stock Look Attractive after the Sell-Off?
Freeport-McMoRan (FCX), the leading US-based copper miner (DIA), fell 13.1% yesterday after its fourth-quarter earnings release.
Is Freeport-McMoRan Finally Catching Up with Copper?
We’re now into the fourth-quarter earnings season, and Freeport-McMoRan (FCX) is scheduled to release its earnings on January 24.
Lower Energy Prices: Boon or Bane for Copper Miners?
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 […]
Wall Street Is Largely Unfazed by Plunging Copper Prices
The metals and mining space has seen a reversal of fortune this year. Metals prices plunged to multiyear lows in 2015 and 2016.
Is There More Heat Left in Freeport-McMoRan’s Rally?
Freeport-McMoRan (FCX) has seen a significant upside after the stock fell to its 52-week low after its third-quarter earnings were released.
Could Cost-Push Inflation Dent Copper Miners’ Outlooks?
In this article, we’ll look at copper miners’ unit production costs.
How Copper Miners Stacked Up in the First Half
The second-quarter earnings season is over, and most copper miners have released their quarterly financial performance results.
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.
What Steroids? Freeport-McMoRan Seems to Be on a Ventilator
Freeport-McMoRan (FCX) is seeing a selling spree today, and its stock is trading down 7.0% as of 1:40 PM EDT on July 19.
Is Freeport’s Grasberg Transaction a Win-Win?
On July 12, Freeport-McMoRan, the leading US-based copper miner, announced that the company would sell a small stake in PT Freeport Indonesia.
What’s Giving Freeport-McMoRan a Hard Time This Month
US-based copper miner Freeport-McMoRan (FCX) has seen selling pressure over the last two weeks.
Why Copper Has Been Losing Its Sheen This Year
The earnings of copper miners such as Freeport-McMoRan (FCX), Antofagasta (ANTO), and Rio Tinto (RIO) are sensitive to copper prices.
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.
Freeport in Indonesia: Best-Case and Worst-Case Scenarios
Freeport-McMoRan (FCX) operates the giant Grasberg mine in Indonesia.
What’s the Wild Card for Copper Prices in 2018?
Copper prices have been weak this year after rising for two consecutive years.
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.
Why Freeport Expects Its Unit Cash Costs to Fall Further in 2018
In the previous part of this series, we looked at leading copper miners’ 4Q17 unit cash costs.
Copper Miners Face Cost Pressure as Input Costs Rise
Previously in this series, we looked at copper miners’ 4Q17 production profiles and 2018 guidance.
Which Miners Could See Higher Copper Production in 2018?
In this article, we’ll look at the 2018 production guidance provided by leading copper miners.
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 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.
Supply Disruptions Could Support Copper Prices in 2018
Freeport expects strong copper demand globally. The company also pointed to supply-side issues that are expected to hit mined copper supply in 2018.
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.
Can Copper Provide Upside to BHP Billiton in Fiscal 2018?
Copper prices (DBB) have been quite buoyant lately, rising more than 30% in 2017—the second consecutive annual gain.
What Teck Resources Investors Could Expect in 2018
Asia is the biggest market for Teck Resources’ coal division, accounting for 75% of its shipments.
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.