First, China: The new basis in China is in place, it is purchasing copper in significantly large and constant quantities that total sales will continue to drastically apex sales of just 5 years ago. What difference does a quarterly % increase make, when it is still higher in total volume? None, the new basis levels for years to come are at peak production quantities and prices are stable as the total demand is NOT decreased in any way - in fact, just the opposite.
Second, Market overreaction is certain. 80% of FCX is copper, and gold was only down only 3.5% in futures trades yesterday alone. Thus the math does not support this overreaction to perceptions. 20% of 3.5 = .07% of the production value of gold as a % of miner assets. Also, gold is one commodity that FCX really doesn't need to sell. It is an asset. If the dollar is strong, then the asset must be compared to the purchase power. The whole market down today. No new news than last week.
Third. FCX is diversified and will soon be getting O&G revenue to add to the mix plus the GOM deep water sub salt production. A strong dollar only enhances that asset, and that asset is not yet on FCX books, making the Gold fractional decrease even more insignificant going forward. BUY.