Qtr ended 9/30/2015. $822 million more than covers 1 years debt-service-interest-expense on entire $20 billion borrowed by FCX at its average 3.7% cost of capital, that is bar wi interest rate it pays on borrowings.
FCX cost of capital borrowed money is only 3.7% interest rate on 20 billion that comes out to 770 million per year, less than last quarter is positive cash flow. book losses are non cash expense write-down of oil acquisition assets. but it appears FCX could easily pay attentions expense I know its loans out of even 1 quarters positive cash flow.
They may have said at. 3.7% avg. Interest expense, last quarters 0.77 per share positive cashflow times 1.2 bilion shares = about $825 million. More than covers interest expense fir the year on all of FCXs $20billion debt.
FCX debt costs 3.7%. Very low cost of capital. So only $725 million total interest expense per year, easily covered by positive cash flow. Even without rebounding commodity prices. Assume no increase in copper prices, they still can pay the interest. Writeoffs of accounting value of overpriced oil assets are a non-cash expense. Doesnt effect cashflow.
The Germans were very honest about VW car emmissions right?
The Obama Admin. apparently just had its Fair Trade Commission rule against China subsidizing its steel exporters alot, and so slapped 200% Tariffs on Chinese Dumping (subsidized exports of steel) into USA. This should help American Steel Manufs.
Big Win against dumped subsidized Chinese Steel in USA, just announced over the weekend. Chinese Steel is now subject to an over 200% Tariff. This will greatly help USA producers, now that the Obama Admin. recognizes the Chinese Government has been unfairly subsidizing Chinese Steel Exporters with rebates of taxes and cheap financing of their steel mills and exports on and on. So actually Obama is doing something, better late than never.
May not happen till 2016, before Steel Market starts to stabilize and the bottom is in in Steel Prices. Also the Dollar will not just keep going up forever. Its near its top value vs. Foreign Currencies in the past 15 years. Remember when it was 1.25 and 1.30 Dollars/Euro? Now its 1.06 to buy a Euro. The Dollars up too high.
BABA is growing its overall business bit faster. They both have a small part cloud computing storage growing very fast. But BABA is at a 29 PE Ratio, and AMZN is at 957 PE. For 2016 going forward, BABA has alot more upside / is alot safer investment.
They will be sending the INVASION of MidEast " Muslim Muslim Syrian Refugees" back to Turkey, they had akready crossed by foot n bus. The Welfare Budgets of Europe can not afford to keep Subsidize thecTurkishbIslamist Leaders 1100 room Palace !
Oil will Crash when ISIS controlled OilFields or Oil Tanker Trucks are BOMBED by French Planes, and ISIS in retaliation then starts targeting Saudi or other Iraq oil production