|Bid||4,020.00 x 30000|
|Ask||4,080.00 x 26800|
|Day's Range||4,025.50 - 4,087.00|
|52 Week Range||3,255.50 - 4,541.00|
|PE Ratio (TTM)||8.35|
|Forward Dividend & Yield||2.13 (5.11%)|
|1y Target Est||56.89|
As noted previously, Freeport-McMoRan (FCX) and other copper miners such as Glencore (GLNCY) and Southern Copper (SCCO) became pressured as copper reached a one-year low and dipped below $6,000 per metric ton. In this article, we’ll discuss whether Freeport’s recent sell-off represents an opportunity. As we’ve noted in our previous series, trade war concerns are a significant risk for copper prices. Although the metal has followed expectations, its recent slide may have been exaggerated.
Freeport-McMoRan (FCX), the largest US-based copper miner, is set to release its second-quarter results on July 25. Diversified miners BHP (BHP) and Rio Tinto (RIO) have already released their quarterly production data.
Can Iron Ore Catch a Bid amid China’s Wobbly Growth Outlook? The boom in China’s property market has raised concerns about a bubble, which has prompted authorities to tame property prices through tighter credit and other curbs. In this article, we’ll see what the latest data from China’s property market could mean for iron ore.
Can Alcoa Recover from Its Recent Slump? As we noted previously, Alcoa (AA) saw a selling spree after its second-quarter earnings were released. Some observers attributed the fall to the negative impact from the Section 232 tariffs, which prompted Alcoa to lower its 2018 guidance.
Can Iron Ore Catch a Bid amid China’s Wobbly Growth Outlook? As we learned in the previous article, bumper margins have prompted Chinese steel mills to continue increasing their output. In 2017, Chinese steel prices rose ~30%, and they’ve remained buoyant this year.
In this article, we’ll look at China’s iron ore port inventories. The inventories at port reflect the difference between demand and supply.
Recently, iron ore miners (XME), including BHP (BHP), Rio Tinto (RIO), and Vale SA (VALE), released their operational reviews for the quarter that ended in June. Iron ore (PICK) volumes are key to these companies’ revenues and earnings because it’s the biggest commodity they produce. BHP’s iron ore production for fiscal 2018 (the year that ended on June 30) hit a record, coming in at 275.1 million tons—higher than its guidance of 272 million–274 million tons.
On July 12, Freeport-McMoRan (FCX) announced a “Heads of Agreement” with the Indonesian government and Rio Tinto (RIO). According to Reuters, “Heads of agreements are typically non-binding. However, Indonesia’s State Owned Enterprises Minister Rini Soemarno said the agreement is binding while Rio Tinto and Freeport both said the heads of agreement is just a step and not binding.” Let’s see why the three sides could have taken a divergent stance on the agreement’s nature.
Guinea is in constant talks with Rio Tinto and Chinalco to finalise a deal on selling two blocks of the vast Simandou iron ore project, its mining minister said, adding he was confident an agreement would be reached. Rio Tinto in October 2016 said it had signed an outline agreement to sell its major stake in Simandou to Chinalco, a move many hoped would revive the long-stalled scheme.
As we noted previously, Freeport-McMoRan (FCX) announced a “Heads of Agreement” with the Indonesian government on July 12. Although Freeport-McMoRan was trading ~2.0% higher in early trade after the announcement, it pared the gains and finally closed with a loss of 0.70%. Looking at the terms of the agreement, Rio Tinto (RIO) got an acceptable price for its stake in the giant mine.
Last week, Freeport-McMoRan (FCX) announced a “Heads of Agreement with the Indonesian state-owned enterprise PT Indonesia Asahan Aluminium (Inalum) and PT Freeport Indonesia’s (or PT-FI) joint venture partner Rio Tinto.” The agreement was preceded by a “Framework” that Freeport announced in August 2017.
It’s been hard to be a shareholder in copper and gold stock Freeport-McMoRan (NYSE:FCX) over the last few years. The latest battle and subsequent bruising to its share price stem from issues with the Indonesian government at its largest mine — and there is finally some closure on that front. It’s even worse as it comes at a time when copper prices are starting to drop hard.
PLC (RIO.LN) recorded a sharp rise in half-year iron ore exports by ramping up one mine and working others harder, and said it expects shipments to hit the high end of its target range for 2018. The Anglo-Australian mining company, one of the world’s top iron-ore sellers, said it shipped 168.8 million metric tons of the steelmaking commodity from its Australian mines in the first half of 2018, up 9% on a year ago. It also expects annual shipments to be around the upper end of an existing target of 330 million-340 million tons.
Rio Tinto Group, the world’s No. 2 iron ore exporter, reported second-quarter shipments rose 14 percent on productivity improvements and better weather. Bloomberg's David Stringer reports on "Bloomberg ...
Miners are considering new ways to make the dirt they dig up green. Across the U.S. border in Quebec, a research facility will fine-tune a technology that its owners—Alcoa Corp. and Rio Tinto PLC—believe could turn aluminum smelters carbon-free for the first time. Another initiative under way in Sweden could see hydrogen replace coking coal in manufacturing steel.
It’s the mining world’s biggest dilemma: everyone’s hunting for copper deals, but even the richest producers just can’t pull the trigger. The industry has deep pockets for deals right now -- Rio Tinto Group may end the year having raised $8.5 billion from asset sales and rivals like BHP Billiton Ltd. and Glencore Plc are churning out massive profits.
Freeport's (FCX) latest move highlights a significant milestone toward establishing a new partnership with Republic of Indonesia for long-term stability of PT Freeport Indonesia's operations.
Rio Tinto Plc’s Richards Bay Minerals in South Africa said workers are reporting for duty after violence and protests that started more than a week ago shut the operations. “Following a significant improvement in the security situation, employees are returning to work today and we will safely ramp up operations over the next few days,” the company said in an emailed response to questions. The Rio unit suspended operations after employees of a contractor company blocked access to the site.
Is Freeport’s Grasberg Transaction a Win-Win? As noted previously, Freeport-McMoRan (FCX) announced its stake sale in PT Freeport Indonesia (or PT-FI). The Indonesian government (EIDO) achieved two objectives from the transaction.
Freeport-McMoRan Inc agreed on Thursday to sell a majority stake in the world's second-biggest copper mine to the Indonesian government via a series of complex deals worth $3.85 billion, potentially ending a long-running dispute on mining rights. Freeport and Rio Tinto have agreed on a structure and pricing for a series of transactions to transfer majority ownership of the Grasberg project to Indonesia's state-owned mining holding company, PT Inalum. Inalum will pay $3.5 billion for Rio Tinto's 40 percent participating interest which Freeport will then convert into an equity holding in local unit PT Freeport Indonesia.
Snaking through Western Australia’s Outback, a driverless train has made the first autonomous delivery of iron ore from a Rio Tinto Group pit to a coastal port, as the No. 2 miner looks to reap the benefits from a $940 million plan deploying the world’s biggest robots. For Rio and its rivals, productivity improvements gained from new technology are helping to sustain efforts to trim costs and protect margins as iron ore prices wane. “Every train driver drives a bit differently, it’s very complex and they all have different levels of performance,” Ivan Vella, managing director for rail, port and core services at Rio’s iron ore unit, said in a phone interview.
BEIJING/MANILA (Reuters) - For miners seeking to cater to the changing appetite of China, the world's biggest iron ore importer, all eyes are on Tangshan, the country's biggest steel-making city and the drastic measures it's taking to rein in pollution. Tangshan has also warned mills they could face closure if they don't meet emission targets by October. The impact on pricing for iron ore has been dramatic and miners are scrambling to revamp their strategies in response.
Jul.18 -- The biggest U.S. aluminum producer has cut its profit forecast for the year, adding to concerns among commodity investors as metal prices and producer shares languish amid trade tensions. Bloomberg's David Stringer reports on "Bloomberg Daybreak: Asia."
Jul.16 -- Rio Tinto Group, the world’s No. 2 iron ore exporter, reported second-quarter shipments rose 14 percent on productivity improvements and better weather. Bloomberg's David Stringer reports on "Bloomberg Markets: Asia."