FCX - Freeport-McMoRan Inc.

NYSE - Nasdaq Real Time Price. Currency in USD
10.51
+0.06 (+0.57%)
As of 2:09PM EDT. Market open.
Stock chart is not supported by your current browser
Previous Close10.45
Open10.50
Bid10.50 x 2900
Ask10.51 x 3100
Day's Range10.45 - 10.73
52 Week Range8.58 - 14.90
Volume12,555,796
Avg. Volume19,445,884
Market Cap15.381B
Beta (3Y Monthly)1.78
PE Ratio (TTM)15.41
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.20 (1.91%)
Ex-Dividend Date2019-07-12
1y Target EstN/A
Trade prices are not sourced from all markets
  • Reuters

    UPDATE 1-U.S. 'falling behind' in global race to develop electric vehicle supply chain

    The United States is losing the race to extract and refine minerals used to make electric vehicles and should do more to spur domestic production, a bipartisan group of senators said on Tuesday. The push comes as China has grown to dominate the market for lithium, rare earths, cobalt and other so-called strategic minerals used to make a plethora of consumer products, a dominance that politicians have said poses a strategic threat to the United States. "China is consolidating control of the entire supply chain for clean technologies," Senator Lisa Murkowski, the Alaskan Republican who is the chair of the Senate's Energy and Natural Resources Committee, said.

  • Freeport-McMoRan (NYSE:FCX) Takes On Some Risk With Its Use Of Debt
    Simply Wall St.

    Freeport-McMoRan (NYSE:FCX) Takes On Some Risk With Its Use Of Debt

    David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

  • Monday’s Vital Data: JPMorgan Chase, Freeport-McMoran and Apple
    InvestorPlace

    Monday’s Vital Data: JPMorgan Chase, Freeport-McMoran and Apple

    Oil prices are flying after an attack on Saudi Arabia's oil processing facility, and oil fields required the country to cut production by 50%. After a volatile overnight session, Crude oil futures are set to open up 10.5%. U.S. stock futures are trading lower amid the elevated uncertainty.Source: Shutterstock Heading into the open, futures on the Dow Jones Industrial Average are down 0.37%, and S&P 500 futures are lower by 0.37%. Nasdaq-100 futures have shed 0.62%.In the options pits, calls outpaced puts by a wide margin on Friday. Approximately 20.9 million calls and 16.3 million puts changed hands during the session. However, the distance between call and put volume narrowed at the CBOE, where the single-session equity put/call volume ratio rose to 0.62. Meanwhile, the 10-day moving average slipped just under 0.62 -- a two-month low.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions activity was elevated in a variety of stocks on Friday. JPMorgan Chase (NYSE:JPM) saw options volume jump alongside its breakout to record highs. Freeport-McMoRan (NYSE:FCX) continued to benefit from a rotation into metal and mining stocks. Finally, Apple (NASDAQ:AAPL) fell 1.9% after suffering a downgrade by Goldman Sachs (NYSE:GS).Let's take a closer look: JPMorgan Chase (JPM)The ongoing recovery in stock prices has been oh-so-good for JPMorgan shares. On Friday, the banking behemoth clinched a rousing breakout to record highs making it one of the best financial stocks on the Street to buy. * 10 Recession-Resistant Services Stocks to Buy With the resistance breach, JPM stock completed long-term basing pattern that was almost two years in the making. The jump could kickstart its long-term trend, which had been stuck in neutral during the consolidation. In the short run, JPM is overextended having rallied eight days in a row. So, a pause or pullback would be a welcome development to provide lower-risk entries on the daily time frame.The breakout sparked a flurry of activity on the options trading front. Popularity was split virtually 50-50 between calls and puts, and total activity zoomed to 235% of the average daily volume, with 139,772 contracts traded.Implied volatility has been on a downward trajectory this month, falling to a six-week low. At 23%, it now sits in the lower quartile of its one-year range. That means options are cheap. Long calls or call spreads are the way to go if you're speculating on further upside. Freeport-McMoran (FCX)Metal and mining stocks have awoken, and Freeport-McMoran is seeing some serious inflows. I count six accumulation days so far this month. FCX stock just had its best week of the year, rallying 14%. The surge carried the shares back above their 20-day and 50-day moving averages.Unfortunately, much work remains before its long-term downtrend is fully reversed. The 200-day moving average still looms heavy overhead, and we've seen many rallies that have started with strength ultimately fail this year. That said, the volume signs and sector rotation into mining stocks certainly looks promising for a bottoming attempt in FCX.On the options trading front, traders came after calls with a vengeance. Activity climbed to 214% of the average daily volume, with 105,602 total contracts traded. Calls ran the tables accounting for 86% of the day's take. Implied volatility didn't budge at all throughout the week, remaining at 43% or the 22nd percentile of its one-year range. Premiums are pricing in daily moves of 29 cents or 2.7%. Apple (AAPL)Just two days after launching to an eleven-month high, Apple suffered an unexpected downgrade by Goldman Sachs. The bank said Apple's accounting plans for the launch of Apple TV Plus would shrink the iPhone's profit margins and lowered the stock's price target from $187 to $165.The company issued a response stating, "we do not expect the introduction of Apple TV+, including the accounting treatment for the service to have a material impact on our financial results."Drama aside, AAPL stock was likely due for a pullback anyways. Friday's 2.4% drop returned AAPL to its breakout zone providing another attractive entry for those that missed last Wednesday's surge. Its price trend remains bullish with rising moving averages across time frames. * 7 Tech Stocks You Should Avoid Now On the options trading front, traders favored calls on the session. Total activity climbed to 184% of the average daily volume, with 900,312 contracts traded; 56% of the trading came from call options.The increased demand drove implied volatility higher on the day to 25% placing it at the 19th percentile of its one-year range. Premiums remain cheap and are pricing in daily moves of $3.44 or 1.6%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Monday's Vital Data: JPMorgan Chase, Freeport-McMoran and Apple appeared first on InvestorPlace.

  • Financial Times

    West Papuan leader in exile criticises miners amid unrest

    West Papua and neighbouring Papua are militarised and under-developed mountainous Indonesian provinces on the western half of the island that also accommodates Papua New Guinea in the east. Mr Wenda said Freeport-McMoRan and BP should stop operating in West Papua and Papua.

  • Dow Surpasses 27,000 on Friday
    GuruFocus.com

    Dow Surpasses 27,000 on Friday

    Broadcom reports 3rd-quarter results Continue reading...

  • Trump’s Tariff Reprieve Lifts Alcoa and Freeport
    Market Realist

    Trump’s Tariff Reprieve Lifts Alcoa and Freeport

    Trump’s tariff reprieve and trade war de-escalation lifted metal and mining stocks. Alcoa and Freeport-McMoRan have gained 25.8% and 12.8% in September.

  • How to Invest in Copper Stocks
    Motley Fool

    How to Invest in Copper Stocks

    Digging into the copper mining industry can reveal some potential investment opportunities and better explain what it takes to make money from an ore that is growing in value.

  • Why Mining Stock Prices Crashed in August
    Motley Fool

    Why Mining Stock Prices Crashed in August

    Commodity-related stocks declined on fears over global growth.

  • Should Freeport-McMoRan Inc. (NYSE:FCX) Focus On Improving This Fundamental Metric?
    Simply Wall St.

    Should Freeport-McMoRan Inc. (NYSE:FCX) Focus On Improving This Fundamental Metric?

    One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...

  • Why Freeport-McMoRan Is in Free Fall This Month
    Market Realist

    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.

  • Recession fears have investors 'going to gold as a hedge,' prices are skyrocketing
    Yahoo Finance

    Recession fears have investors 'going to gold as a hedge,' prices are skyrocketing

    Gold prices remain hot as investors seek safety amid ever-changing headlines on the U.S.-China trade war.

  • Freeport-McMoRan at 3-Year Low After August Breakdown
    Investopedia

    Freeport-McMoRan at 3-Year Low After August Breakdown

    Freeport-McMoRan has broken a key support level and could challenge November 2000's all time low.

  • Tuesday’s Vital Data: Freeport-McMoran, AT&T and Advanced Micro Devices
    InvestorPlace

    Tuesday’s Vital Data: Freeport-McMoran, AT&T and Advanced Micro Devices

    U.S. stock futures are extending Monday's gains this morning.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.35%, and S&P 500 futures are higher by 0.38%. Nasdaq-100 futures have added 0.56%.With Monday being a day of recovery and calm after Friday's plunge, options volume fell well below average levels. Calls led the way with about 15 million contracts traded versus only 13.3 million puts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe action at the CBOE sent a similar message with the single-session equity put/call volume ratio dropping back to 0.58. As is so often the case, Friday's high reading of 0.88 signaled capitulation and gave way to a relief rally. Monday's drop pulled the 10-day moving average down to 0.72.Options activity was actually pretty dull in individual stocks on Monday. Very few stocks exceeded their average daily volume. Freeport-McMoran (NYSE:FCX), AT&T (NYSE:T) and Advanced Micro Devices (NASDAQ:AMD) were among the more interesting ones.Let's take a closer look: Freeport-McMoran (FCX)Freeport-McMoran made a rare appearance atop the options leaderboard. Its performance this year has been plagued by persistent weakness in mining and metal stocks. Back-to-back disappointing earnings reports haven't helped either. Since peaking mid-April at $14.68, FCX stock has fallen 40%. * 10 Monthly Dividend Stocks to Buy to Pay the Bills Deteriorating fundamentals and terrible technicals make FCX an impossible stock to buy here. The news was nonexistent Monday, and its price action was subdued. Volume was normal as well, so we don't have a catalyst to pin the sudden emergence of options trading on.Traders loved calls throughout the session. Total activity grew to 225% of the average daily volume, with 90,584 contracts traded; 91% of the trading came from call options alone.The increased demand drove implied volatility higher on the day to 49%, placing it at the 43rd percentile of its one-year range. Premiums are pricing in daily moves of 27 cents or 3.1%. AT&T (T)AT&T shares have been a bastion of strength during the recent market turmoil. The outperformance was on full display Friday with only slight give back during the market rout. And Monday traders came after calls with a vengeance. More on that in a second. First, here's the technical take.T stock's ascent accelerated in June and has now lifted the telecom titan to a year-to-date gain of 22%. The bullishness stands in stark contrast to the two-year descent that lopped as much as 39% off its share price. Shareholders are cheering the turnabout. The 20-day, 50-day and 200-day moving averages are all cruising higher to confirm buyers now control the trend across every time frame.On the options trading front, calls were the hot commodity. Activity grew to 94% of the average daily volume, with 89,363 total contracts traded. Calls accounted for 81% of the take. The fact that AT&T made the top ten without eclipsing its average volume shows just how dead it was in the options market on Monday.Implied volatility drifted at 21%, remaining at the 24th percentile of its one-year range. Premiums are baking in daily moves of 47 cents or 1.3%. Advanced Micro Devices (AMD)Advanced Micro Devices clinched the tenth spot atop the options leaderboard Monday with a scant 75% of its average daily volume. The activity wasn't all that memorable, but it gives us an excuse to take a renewed look at what has long been viewed as a hot stock by momentum traders.The upward trajectory of AMD stock's trend has turned this month. With the uptick in volatility and minor victories by bears, the stock's short-term trend is now pointing lower, and its intermediate-term trend is treading sideways. We're using the 20-day and 50-day moving averages as indicators for both. * 7 5G Stocks to Connect Your Portfolio To Buyers should watch the $32 resistance zone. A pop above that could set the stage for a return to the all-time high of $35.55. Until then, AMD is a tough trade.On the options trading front, the theme of call dominance continued. Total activity only added to 75% of the average daily volume, with 286,924 contracts traded. Calls claimed 80% of the session's sum.Implied volatility sits at 52% or the 20th percentile of its one-year range. It's not the juiciest opportunity for premium selling, but the truth is AMD's absolute volatility runs hot enough that trades like naked puts and covered calls always boast attractive returns. The expected daily moves stand at 99 cents or 3.3%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies Using AI to Grow * The 10 Biggest Winners From Second-Quarter Earnings * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Tuesday's Vital Data: Freeport-McMoran, AT&T and Advanced Micro Devices appeared first on InvestorPlace.

  • Why Is Freeport-McMoRan (FCX) Down 20.1% Since Last Earnings Report?
    Zacks

    Why Is Freeport-McMoRan (FCX) Down 20.1% Since Last Earnings Report?

    Freeport-McMoRan (FCX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

  • Reuters

    UPDATE 1-Indonesia chief security minister to fly to Papua as fresh protests erupt

    Indonesia's chief security minister said he will fly to Papua late on Wednesday after violent protests, including stone-throwing and the torching of some buildings, spread to more towns in the easternmost region over perceived discrimination. Police fired tear gas to disperse a crowd in the town of Fakfak, West Papua, after protesters torched parts of a market, an office building and blocked roads to the airport, CNN Indonesia reported. Media estimated thousands of people were involved in the protest, though Dedi Prasetyo, spokesman for Indonesia's national police, said only 50 people had taken part in setting fire to several stalls in the market.

  • Reuters

    Fresh protests in Indonesia's Papua as extra police arrive

    Police fired teargas to disperse a crowd in the town of Fakfak, West Papua, after protesters torched parts of a market, an office building and blocked roads to the airport, CNN Indonesia reported. Media estimated thousands of people were involved in the protest, though Dedi Prasetyo, spokesman for Indonesia's national police, said only 50 people had taken part in setting fire to several stalls in the market.

  • BHP Should Stand Pat on Copper
    Bloomberg

    BHP Should Stand Pat on Copper

    (Bloomberg Opinion) -- All major miners agree that copper has a bright future. The trouble is how to get at it. Take BHP Group, set to be the world’s biggest producer this year after Freeport-McMoRan Inc. sold down its stake in Indonesia’s Grasberg mine. Costs at BHP’s massive Escondida pit in Chile, which accounts for about one in 20 tons of copper mined globally, keep on disappointing. They’ll rise from the current $1.14 a pound to a range of $1.20 to $1.35/lb next year, the miner said in annual results Tuesday, well above its ambitions to keep them shy of $1.15/lb.When the copper price is trading close to three-year lows at $2.61/lb, that still makes for a pretty profitable business. But with  production for the whole copper business seemingly capped at around 1.75 million metric tons a year, it isn’t clear where volume growth will come from. Miners love copper because it’s seen as a way to make a bet on a clean-energy future. Electric cars contain between four and 10 times as much copper as conventional ones, and wind and solar generators are forecast to consume 813,000 tons annually by 2027. It’s not clear that projects currently in the pipeline will be sufficient to produce enough metal to keep the market supplied once those sources of demand start ramping up around the middle of the next decade.BHP’s main expansion at the moment is an extension of its Spence mine in Chile, which is set to go into production by December next year. That should add about 185,000 tons of annual production – barely enough to offset the the gradual exhaustion of the Cerro Colorado and Antamina pits, which have less than a decade of reserve life left in them.Beyond that is the potentially massive, geologically difficult expansion of South Australia’s Olympic Dam mine. That pit has long been a challenge. Its significant uranium content would make BHP a major and low-cost producer of the atomic fuel. The risk, though, is that such a large influx of supply would crash the uranium oxide market and weaken the high-stakes economics of the project itself. In theory, there ought to be interesting opportunities for M&A in the current environment. Freeport, for instance, could almost double BHP’s copper production, and has a lot less political risk attached now the long tussle with Jakarta over Grasberg is over.With return on capital employed of about 11%, it’s outperforming the underlying 6% return in BHP’s copper business and could be bought for about nine months’ cashflow. But with Elliott Management Corp. still a lingering presence on the shareholder register, management are unlikely to want to do anything too splashy. Indeed, BHP’s rivals are prime examples of the risks that can be run from being too bold around copper. Rio Tinto Group’s Oyu Tolgoi mine in Mongolia could cost as much as $1.9 billion more than forecast, with first production from the expanded project delayed until the middle of 2023, the company said last month. Glencore Plc this month announced plans to shut its Mutanda copper mine in the Democratic Republic of Congo due to rising costs and weak pricing for cobalt, an important by-product from the operation.There may be a lesson in that. For all the billions BHP has spent on copper over the past decade, its returns from the red metal are still among the worst in the group. Rather than chasing volume, it might be better off watching the pennies, letting the market tighten and hoping prices rise to justify the money that’s already been spent. When the cards on the table look weak, there are worse things to do than just stand pat.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • 3 Big Stock Charts for Friday: Freeport-McMoRan, Microsoft and Coca-Cola
    InvestorPlace

    3 Big Stock Charts for Friday: Freeport-McMoRan, Microsoft and Coca-Cola

    It could have been worse. At one point on Thursday, the S&P 500 was down as much as 0.5% before rallying back to end the session up a quarter of a percent. Investors entertained doubts about the idea that the recent yield curve inversion has to lead to a recession.Source: Shutterstock Walmart (NYSE:WMT) gets the bulk of the credit for yesterday's gain. Shares of the retailer jumped more than 60% after the company delivered second-quarter numbers that exceeded expectations. E-commerce revenue remains particularly impressive for the world's biggest retailer.Yet, though the broad market made gains, the number of advancers was only slightly higher than the number of decliners, and bearish volume was actually greater than buying volume.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWeighing stocks back more than any other name was General Electric (NYSE:GE), down more than 11% on accusations that it has been doctoring its accounting statements in a way that covers up a great number of liabilities that will cost the company billions. Cisco Systems (NASDAQ:CSCO) plunged nearly 9% after serving up lackluster guidance stemming from the tariff war underway with China. * 10 Cheap Dividend Stocks to Load Up On As the last trading day of the week kicks off, however, it's the stock charts of Freeport-McMoRan (NYSE:FCX), Microsoft (NASDAQ:MSFT) and Coca-Cola (NYSE:KO) that merit the closest looks. Here's why. Freeport-McMoRan (FCX)Although most stocks bounced back from recent weakness on Thursday, it's not surprising that Freeport-McMoRan didn't. Shares have been trapped in a downtrend for years, and that selloff was renewed at the beginning of last year when a rising support line was snapped.It's possible, however, yesterday's 4% tumble may have also served as a capitulation that ends up becoming the low point of the current bearish swing. That dip pulled the stock back to an established floor, forcing the bulls and the bears -- if not both -- to finally make a commitment. * Click to EnlargeAlthough you have to go back to 2017 to see the initial low that serves as the first node of a falling support line, plotted in blue on both stock charts, it's clear that FCX has been getting pushed toward the tip of a converging wedge pattern. * The weekly chart also indicates Freeport-McMoRan shares broke below what had been a technical floor at $9.50, marked in yellow on the weekly chart that also plots the rising support line, in red, that snapped in the middle of last year to let a new pullback take shape. * Although technically weak and suffering from bearish momentum, Thursday's kiss of the lower boundary of a descending wedge pattern opens the door to the possibility FCX could attempt to rebound from here. The upper boundary of the wedge, in white, remains intact though. Microsoft (MSFT)Giving credit where it's due, Microsoft shares have impressively stood up to marketwide weakness that started to seriously undermine other stocks late last month. Since peaking in July, MSFT shares have only fallen less than 6%. The S&P 500 is also still decidedly below most of its key moving average lines, while Microsoft is still above its key lines, or only modestly below the ones it's under.Microsoft shares are slowly slipping into a funk, however, putting pressure on key support levels, and failing to find support at others. One, perhaps two, more bearish days could push MSFT over the proverbial cliff and pull the rug out from underneath this name that has rallied about as far as it can feasibly go for the time being. * 15 Growth Stocks to Buy for the Long Haul * Click to EnlargeThe key floor now under attack is the straight-line span connecting February's, June's and now this month's low, plotted as a light blue line on the daily chart. * Zooming out to the weekly chart of Microsoft it becomes clear that this year's rally has pushed MSFT stock to the upper edge of a rising bullish channel, where it has started to fade. Notice the weekly chart's MACD line is now below zero, after several weeks of lower lows. * Assuming history will repeat itself, MSFT shares are now positioned to slide back to the lower edge of that range plotted with a yellow line on the weekly chart. It now stands at $111.70, but is rising quickly. Coca-Cola (KO)Finally, Coca-Cola shares have been on a rampage since March, rallying more than 20% for the five-month stretch. More than that though, the advance has pushed KO stock out of a long-term trading range and into uncharted waters. Although overbought, shares even confirmed the strength of this breakout thrust by pulling back, finding support at a key line in the sand and then bouncing back above a long-term technical ceiling.While the momentum is undeniable, the scope of the rally thus far is unnerving. The risk of a wave of profit-taking is abnormally high. The good news is, the make-or-break line in the sand has already been identified and verified. * Click to EnlargeThe support level in question is the 50-day moving average line, plotted in purple on the daily chart. That line prompted the reversal that materialized two weeks ago, and is highlighted on the daily chart. * Backing out to a weekly chart, the basis of the worry becomes clear. Just in the past few weeks, KO stock has broken above a technical ceiling that has kept shares in check since 2013. It's plotted in white. * Although there's plenty of risk of a pullback that would bring Coca-Cola stock back to the trading range's floor near $46, marked in yellow, there has been an impressive amount of buying volume persistently through this unparalleled advance.At the time of this writing, James Brumley did not hold a position in any of the aforementioned securities. To learn more about James, visit his site at jamesbrumley.com, or follow him in twitter at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Big Stock Charts for Friday: Freeport-McMoRan, Microsoft and Coca-Cola appeared first on InvestorPlace.

  • Southern Copper's Tia Maria Construction License Suspended
    Zacks

    Southern Copper's Tia Maria Construction License Suspended

    Southern Copper Corporation's (SCCO) Tia Maria copper mine put on hold following protests owing to environmental concerns.

  • How Should Investors Feel About Freeport-McMoRan Inc.'s (NYSE:FCX) CEO Pay?
    Simply Wall St.

    How Should Investors Feel About Freeport-McMoRan Inc.'s (NYSE:FCX) CEO Pay?

    Richard Adkerson has been the CEO of Freeport-McMoRan Inc. (NYSE:FCX) since 2003. This analysis aims first to contrast...

  • Ken Fisher Curbs Total, ING Groep Stakes
    GuruFocus.com

    Ken Fisher Curbs Total, ING Groep Stakes

    The guru's largest sales of the 2nd quarter Continue reading...

  • Moody's

    Freeport-McMoRan Inc. -- Moody's assigns Ba1 rating to FCX's new notes

    Moody's Investors Service ("Moody's") assigned a Ba1 rating to Freeport-McMoRan Inc's (FCX) new guaranteed senior unsecured notes due in 2027 and 2029. The notes will be issued under the company's well-known seasoned issuer shelf registration ("WKSI"), rated (P)Ba1 for senior unsecured debt securities. Proceeds will be used to redeem the 6.875% senior unsecured notes due 2023 and to tender for portions of the 4% senior unsecured notes due 2021, the 3.55% senior unsecured notes due 2022, and the 3.875% senior unsecured notes due 2023.

  • Freeport-McMoRan Stock Can Be a Long-Term Portfolio Catalyst
    InvestorPlace

    Freeport-McMoRan Stock Can Be a Long-Term Portfolio Catalyst

    I am of the opinion that Freeport-McMoRan stock (NYSE:FCX) is a "Buy and Hold" with an investment horizon of 24 to 36 months. This article will discuss FCX stock upside triggers for this diversified commodity major.Before talking about company-specific factors, I want to point out that over the last 20 years, the average annual return for commodities has been a negative of 2.5%. In the last 10 years, the average annual return for commodities has been a negative of 5.2%.Commodities therefore still remain undervalued even as liquidity and fundamentals have triggered a bull market in several asset classes globally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI believe that with renewed prospects of expansionary monetary policies, commodities are due for a rally and Freeport-McMoRan stock is well-positioned to leverage on the upside. * 7 Stocks to Buy With Over 20% Upside From Current Levels In addition, years of depressed commodity price have translated into lower investment in the mining sector. I believe a tight demand-supply scenario will translate into upside for copper and other industrial commodities.Besides industrial commodities, I am also bullish on gold as the precious metal is likely to trend higher on potential catalysts. This includes expansionary monetary policies, central banks mopping up gold, and higher geopolitical tensions.The bullish view on industrial commodities and gold forms the basis of my positive view on Freeport-McMoRan stock. FCX Stock Fundamentals Remain StrongAs of June 2019, Freeport-McMoRan reported cash and equivalents of $2.6 billion. Further, with an undrawn credit facility of $3.5 billion, the company's total liquidity buffer stands at $6.1 billion.With planned capital expenditure of $5.2 billion for 2019 and 2020 combined, FCX is fully financed for the next 24 months.In addition, Freeport-McMoRan reported operating cash flow of $1.1 billion for 1H19. This implies an annual operating cash flow in the range of $2 billion to $2.2 billion. Therefore, the capital expenditure for the next 24 months can be largely funded through internal cash flows. In other words, the company's leverage is unlikely to increase.It is also worth noting that for the last 12 months ended June 2019, Freeport-McMoRan reported EBITDA of $4 billion. For the same period, the company's interest expense was $930 million. With EBITDA interest coverage of 4.3, debt servicing is likely to remain smooth.Importantly, high coverage implies that Freeport-McMoRan has the financial headroom to leverage if the company wants to accelerate capital expenditure in the coming years.The key point from the financial analysis is that Freeport-McMoRan has navigated challenging times with a relatively healthy balance sheet.I don't see any financial concerns. On the other hand, if copper and gold start trending higher, the company's leverage will decline further. FCX Copper and Gold Production GrowthFreeport-McMoRan expects copper production to increase from 3.3 billion lbs in 2019 to 4.2 billion lbs in 2021.I believe that copper prices will trend higher during this period and translate into revenue and EBITDA growth. No major copper discoveries in the past decade, lower investments, and declining copper grade are factors that support commodity price upside.For 2Q19, Freeport-McMoRan reported price realization of $2.78 per lb. For the same period, the net unit cash cost was $1.85 per lb. As price trends higher and cost declines (company guidance), there is clear visibility for higher operating cash flows over the next 24 to 36 months.Freeport-McMoRan is likely to deliver gold production of 0.8 million ounces for 2019. Production is expected to increase to 1.5 million ounces in 2021.Gold has been trending higher after a long consolidation in the range of $1,100 to $1,300 an ounce. If expansionary monetary policies are pursued in the United States, it is a strong reason for dollar weakening and gold surging. Even the broad industrial commodity space will trend higher on dollar weakness.Therefore, with a bullish outlook for copper and gold, Freeport-McMoRan stock is attractive for the medium- to long-term.A counter argument is that copper can remain weak on sluggish global growth expected for 2019 and 2020. However, the slowdown factor is discounted in copper prices and tight market fundamentals will dictate the price trend. Concluding Words on Freeport-McMoRan StockFreeport-McMoRan is a leaner organization than it was a few years ago.The sale of oil and gas assets has been a positive. The company's financial flexibility allows for higher-than-planned capital investment if economic prospects brighten.FCX stock has been largely sideways amidst volatility in the last 12-months. I am of the opinion that this is a good time to accumulate the stock.Higher copper and gold production coupled with higher commodity prices can take the stock significantly higher in the next 24-36 months. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Freeport-McMoRan Stock Can Be a Long-Term Portfolio Catalyst appeared first on InvestorPlace.