16.47 -0.33 (-1.96%)
Pre-Market: 4:00AM EDT
|Bid||16.16 x 1100|
|Ask||16.53 x 4000|
|Day's Range||16.57 - 16.91|
|52 Week Range||11.12 - 20.25|
|PE Ratio (TTM)||10.69|
|Forward Dividend & Yield||0.20 (1.18%)|
|1y Target Est||N/A|
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action.
Among the analysts polled by Thomas Reuters on June 12, five analysts rated Antofagasta (ANTO) stock as a “strong buy,” three analysts rated it as a “buy,” six analysts rated it as a “hold,” and eight analysts rated it as a “sell.”
Is It Time to Fall in Love with Copper Stocks? Freeport-McMoRan (FCX) has received a “buy” or higher rating from nine analysts, while three analysts rated it as a “sell.” The stock doesn’t have any “strong sell” ratings. Among the analysts polled by Thomas Reuters on June 12, 11 or 48% of the analysts rate the stock as a “hold” or some equivalent.
We’re getting towards the end of the second quarter. Early in 2018, copper was rangebound. However, we have seen a spike in copper prices due to concerns about labor action at BHP Billiton’s (BHP) Escondida mine. Notably, Escondida is the world’s largest copper mine followed by Freeport-McMoRan’s (FCX) Grasberg mine.
China is making another big bet on copper in the Democratic Republic of Congo, deepening its presence in a country that’s proved very difficult for Western business. Congo holds huge reserves of copper, but is also one of the hardest countries to navigate -- with problems with security, transparency and infrastructure. A case in point is Glencore Plc, the biggest producer of copper in Congo.
In the past few years, global metal markets have been discussing the slowdown in China’s metal demand and how it could impact metal prices. As China (FXI) transitions from an investment-driven to a consumption-driven economy, its metal appetite has taken a breather. China is the world’s biggest copper importer. Copper mining is concentrated in Latin America.
Freeport-McMoRan: Should You Give Up on It after a 20% Rally? As we saw in the previous part of this series, Freeport-McMoRan (FCX) has bounced back over the last month amid higher copper prices and improved market sentiment. In this part, we’ll look at some of the risks Freeport could face in the short term.
Freeport-McMoRan: Should You Give Up on It after a 20% Rally? As noted in the previous part of this series, Freeport-McMoRan (FCX) has rallied significantly over the last month. Another copper miner, Southern Copper (SCCO), has risen 12.2%.
Freeport-McMoRan (FCX) has been having a strong run since May. In April, it had a selling spree, especially after its first-quarter earnings call. The company not only missed its earnings estimate but also lowered its 2018 production guidance while raising its unit cash cost guidance for the year. Southern Copper (SCCO) also lowered its 2018 production guidance, and BHP Billiton (BHP) narrowed its fiscal 2018 copper production guidance.
The discharge of what are called tailings, the leftovers of mineral extraction, is perfectly legal under Freeport’s current contract with the government. It shouldn’t have been a surprise, really, considering most every other miner in the world has been forced or has elected to stop discarding tailings in rivers. Freeport, though, has said that won’t happen at Grasberg.
In this part of our series, we’ll look at copper miners’ first-quarter free cash flows and look at the 2018 cash flow guidance. You can define free cash flows as operating cash flows minus capital expenditure (or capex). It’s a key metric that investors in metal and mining companies should track.
Previously in this series, we looked at copper miners’ first-quarter production and 2018 guidance. When commodity prices fall, high-cost producers become unprofitable much sooner than their peers, which are placed more favorably on the cost curve. It’s, therefore, crucial for commodity producers to have competitive cost structures.
Previously in this series, we’ve looked at major copper producers’ first-quarter production data. In this article, we’ll look at the 2018 production guidance provided by leading copper miners. We’ll be focusing on companies that changed their guidance this year.
By looking at leading copper miners’ production profiles, we can get crucial insights into the global copper supply. Freeport-McMoRan (FCX) shipped 450,000 metric tons of copper in the first quarter, compared to 461,000 metric tons in the sequential quarter. While Freeport’s first-quarter copper production fell slightly on a sequential basis, it rose 22.7% year-over-year (or YoY).
Freeport-McMoRan (FCX) released its first-quarter earnings on April 24 and saw a selling spree after its earnings miss and management’s commentary on Indonesia operations rattled investors. See 5 Reasons Freeport-McMoRan Fell after Its 1Q18 Release to see what spooked markets in the company’s earnings report. Copper has seen weakness this year.
Vales (VALE) stock has seen a significant shift in ratings over the last few months. Most of the recent analyst ratings, however, point to negative sentiment among analysts. This sentiment contrasts sharply to eight analyst upgrades for the stock in 2017. Analysts were positive about the company’s deleveraging policy, which has now been mostly priced into the stock.
The CEOs of the Phoenix area’s largest publicly held companies certainly make good money — enough to enjoy the finer things in Valley life (Paradise Valley or Scottsdale residences, Cardinals or D-backs season tickets or luxury suites, leaving the electricity bill on autopay during the summer months), but they trail their counterparts in comparably sized markets such as Dallas and Denver. Along with the list of the 25 highest-paid local CEOs published this week, we have a story that explains how the Valley’s lower cost of living has resulted in lower pay for area CEOs. Last year, according to research from the Phoenix Business Journal and its sister publications in Dallas and Denver, the average total compensation for the 25 highest-paid Dallas CEOs was $12.4 million and $12.1 million for their counterparts in Denver.
A state audit of operations at Indonesia's Grasberg mine has cast a cloud over the government's multi-billion-dollar deal to take a majority stake in the mine from Freeport McMoRan Inc (FCX.N) and its partner Rio Tinto (RIO.AX), according to government and company officials. In April, in follow-up action to the audit, the environment minister issued two decrees that gave Freeport six months to overhaul management of its mine waste, or tailings, at Grasberg, the world's second-biggest copper mine.
Is a Valuation Rerating in the Cards for Vale Stock? Vale’s (VALE) base metal (DBB) production, including nickel and copper production, was in line with its decision to lower its footprint by putting non-competitive mines on care and maintenance. Vale’s strategy is to preserve its optionality in nickel in case of higher demand for nickel class I. Nickel production, therefore, reached 58,600 tons in the first quarter, a decline of 18% year-over-year and 25 sequentially.
Freeport-McMoRan (FCX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Freeport-McMoRan Is Up ~13% in May: Can Hot Streak Continue? According to Reuters, citing a statement from Rio Tinto (RIO) (TRQ), the miner is in talks with Indonesia’s Inalum to sell its stake in Grasberg for $3.5 billion.* Grasberg is the second-largest copper mine after Escondida, which is operated by BHP Billiton (BHP). According to the statement, “No agreement has been reached and there is no certainty that a binding agreement with Indonesia’s state mining holding company Inalum will be signed.” Freeport-McMoRan (FCX) is also separately negotiating a stake sale with the Indonesian government (EIDO).
Freeport-McMoRan Inc (NYSE:FCX) delivered an ROE of 21.71% over the past 12 months, which is an impressive feat relative to its industry average of 11.16% during the same period. Superficially,Read More...