|Bid||8.81 x 28000|
|Ask||8.84 x 45100|
|Day's Range||8.80 - 9.18|
|52 Week Range||8.78 - 14.96|
|Beta (3Y Monthly)||1.73|
|PE Ratio (TTM)||12.95|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||0.20 (2.19%)|
|1y Target Est||13.29|
Freeport-McMoRan (FCX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
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.
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.
(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 email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis 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.
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.
Freeport-McMoRan Inc. (FCX) announced today that it has completed the sale of $600 million aggregate principal amount of its 5.00% Senior Notes due 2027 and $600 million aggregate principal amount of its 5.25% Senior Notes due 2029. FCX intends to use the net proceeds from the $1.2 billion senior notes offering to fund its previously announced make-whole redemption of all of its outstanding $728 million aggregate principal amount of 6.875% Senior Notes due 2023, the purchase of approximately $404.9 million aggregate principal amount of its 4.00% Senior Notes due 2021 (the 2021 Notes) and $12.3 million aggregate principal amount of its 3.55% Senior Notes due 2022 (the 2022 Notes) tendered as of 5:00 p.m., New York City time, on August 14, 2019 (the Early Tender Deadline) pursuant to its cash tender offers, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection therewith.
Richard Adkerson has been the CEO of Freeport-McMoRan Inc. (NYSE:FCX) since 2003. This analysis aims first to contrast...
Freeport-McMoRan Inc. announced today that it has priced $1.2 billion of senior notes . Following is a summary of the two tranches of debt:
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.
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.
Mining company Freeport-McMoRan swung to a loss in the second quarter as production and copper prices fell, but narrowly beat expectations.
Freeport-McMoRan (FCX) delivered earnings and revenue surprises of 20.00% and -1.26%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Freeport-McMoRan (NYSE: FCX) reported second-quarter losses of 4 cents per share, which beat the analyst consensus estimate of a 5 cent loss. The company reported quarterly sales of $3.546 billion, which beat the analyst consensus estimate of $3.54 billion by 0.17%. Freeport-McMoRan shares were trading down 1% at $11.53 in Wednesday’s pre-market session.
Freeport-McMoRan Inc, the world's largest publicly traded copper producer, posted a quarterly loss on Wednesday as costs spiked and production of gold and copper plunged at a key Indonesian mine. While the loss, the company's first since 2016, wasn't as steep as analysts had expected, it comes as Freeport is spending billions of dollars to expand Indonesia's Grasberg copper and gold mine underground, a two-year process that is vital to the company's future. Freeport reported a second-quarter net loss of $72 million, or 5 cents a share, after earning a net profit of $869 million, or 59 cents per share, a year earlier.
Freeport-McMoRan Inc. said Wednesday it swung to a net loss of $72 million, or 5 cents a share, in the second quarter, after income of $869 million, or 59 cents a share, in the year-earlier period. The mining company said its adjusted per-share loss was just 4 cents, better than the 5 cents loss consensus of FactSet analysts. Revenue fell to $3.546 billion from $5.168 billion, edging ahead of the FactSet consensus of $3.543 billion. Consolidated sales totaled 807 million pounds of copper, 189 thousand ounces of gold and 24 million pounds of molybdenum. The company is expecting full-year consolidated sales to come to 3.3 billion pound of copper, 0.8 million ounces of gold and 94 million pounds of molybdenum, including 830 million pounds of copper, 230 thousand ounces of gold and 25 million pounds of molybdenum in third-quarter 2019, it said in a statement. The company said it succeeded in ramping up underground production in the Grasberg minerals district, which is expected to produce big quantities of copper and gold in future years. Shares fell 1.7% premarket, but have gained 13% in 2019, while the S&P 500 has gained 20%.