|Bid||57.76 x 0|
|Ask||58.65 x 0|
|Day's Range||57.53 - 58.94|
|52 Week Range||30.73 - 58.94|
|PE Ratio (TTM)||20.17|
|Earnings Date||Oct 24, 2018|
|Forward Dividend & Yield||1.97 (3.57%)|
|1y Target Est||15.75|
Copper miners including Freeport-McMoRan (FCX) and Glencore (GLEN-L) are having a terrible year, as copper prices have lost ~20% year-to-date. Copper miners might not get a reprieve anytime soon. Costs have risen for copper mining companies pretty much across the board.
As we discussed in the previous part, trade war concerns are a short-term risk for copper prices (XME). However, the long-term outlook seems positive given the supply-demand dynamics. Along with the macro scenario, Freeport-McMoRan (FCX) also faces uncertainty about its Grasberg operations. Although the company announced a non-binding head of agreement with the Indonesian government, it still needs to sign a definitive agreement and address the environmental claims made by the Indonesian government. In this part, we’ll discuss Freeport-McMoRan’s valuation given its risk-return trade-off.
Freeport-McMoRan (FCX), the leading US-based copper miner (DIA), is having a tough year. The stock has lost 27.7% YTD (year-to-date) based on the closing prices on September 12. Other copper miners are also feeling the heat. Copper is caught in the US-China trade war. Copper prices are hovering near $6,000 per metric ton. In June, copper rose past $7,200 per metric ton to a four-year high.
Brazilian holding company Bradespar SA, one of the largest shareholders in miner Vale SA, and Litel Participações SA, a holding company owned by pension funds, are trying to settle a dispute over Vale ...
Brazilian infrastructure operator Invepar should focus on refinancing its substantial debt load instead of pursuing an immediate sale, the chief executive of pension fund Previ, one of Invepar's key investors, said on Monday. Speaking on the sidelines of a pension fund event in Florianopolis, Previ's José Mauricio Coelho said Invepar may issue new debt or extend maturities on its current debt, instead of looking for an investor to take control of the company and inject cash.
Pension funds that control Brazilian infrastructure company Invepar want the company to refinance its debt for now and have given up on a sale of their controlling stakes in the short term, the Chief Executive Officer of the fund Previ, José Mauricio Coelho, said on Monday. Speaking on the sidelines of a pension fund event in Florianopolis, Coelho said Invepar may issue new debt or extend maturities on its current debt. In August, Previ rejected a binding offer from sovereign wealth fund Mubadala Development Co PJSC to acquire Invepar.
Today, J.P. Morgan (JPM) upgraded Rio Tinto (RIO), believing that demand from China (FXI) should pick up over the coming months. It also believes that miners’ valuations are cheap compared to the same stages of previous cycles.
Of the 14 analysts covering Rio Tinto (RIO) stock, 57.0% recommend a “buy,” 29.0% recommend a “hold,” and 14.0% recommend a “sell.” One year ago, 80.0% of analysts recommended a “buy.”
On August 31, Vale SA (VALE) had returned 7.9% year-to-date. Lately, Brazilian stocks are being pressured due to economic and political issues facing the country. The Brazilian real has been under tremendous pressure against the US dollar, which led to a widespread sell-off. The iShares MSCI Brazil ETF (EWZ) has lost ~20.0% so far this year in light of these concerns.
According to the consensus compiled by Thomson Reuters, 17 analysts cover BHP Billiton (BHP) stock. Of these analysts, 53.0% recommend a “buy,” 41.0% recommend a “hold,” and 6.0% recommend a “sell” for BHP stock.
China (FXI) is the world’s largest steel consumer. Therefore, to gauge the outlook for iron ore, it’s vital to look at China’s steel demand indicators. The real estate and automotive sectors are the two largest steel end consumers in China. In this part, we’ll discuss these factors in more detail.
Wheaton has made two streaming deals so far this year. Taken together, they make the stock an increasingly attractive precious metals option.
Has Trade War Affected China’s Steel and Iron Ore Demand? Stronger steel demand is the key driving factor behind the rising output. While steel margins are still strong due to robust demand, concerns over the Chinese growth outlook were weighing on steel prices.
Has Trade War Affected China’s Steel and Iron Ore Demand? In the previous article, we discussed that Chinese iron ore imports remained stronger despite the trade war fears in July. The stronger imports are primarily due to the robust steel production in the country.
China consumes more than 70% of seaborne-traded iron ore, so it’s important for iron ore investors to track the country’s demand and outlook to gauge the overall outlook for iron ore. After dropping by 12% YoY (year-over-year) in June, China’s iron ore imports rose 4.2% YoY to 89.96 million tons in July, which is a rise of 8.0% sequentially.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Investors in Vale S.A. (VALE) need to pay close attention to the stock based on moves in the options market lately.
The chief executive officer of Brazil's Vale SA, the world's largest iron ore producer, said in an interview published on Sunday that the company would ramp up annual production to 450 million tonnes only when prices rise. Vale CEO Fabio Schvartsman told the Estado de S. Paulo newspaper the company would only operate at its full capacity of 450 million tonnes when prices increased. Vale did not immediately reply to a request for comment on Sunday.
Steel-makers continue to look for higher iron ore grade and low alumina iron ore to increase productivity while lowering emissions, which is likely to drive growth for Vale (VALE).
Brazilian holding company Bradespar SA said on Tuesday in a securities filing that it has reached an agreement to postpone an award payment to another Vale SA's shareholder, Eletron SA , to Aug. 30. Bradespar and Litel Participações SA, two of the largest shareholders in miner Vale, are on the hook for a 4 billion-real ($1.02 billion) judgment awarded by a Rio de Janeiro court in May to fellow shareholder Elétron SA, a holding company controlled by veteran banker Daniel Dantas.
MELBOURNE/LONDON (Reuters) - Concerns about rising costs and the impact of trade tensions between the United States and China weighed on shares of leading miner BHP (BHP.AX)(BLT.L) on Tuesday after a 33 percent jump in annual underlying profit still missed forecasts. Escalating tensions between China, the biggest commodity consumer, and the U.S. have rattled metals markets and raised the prospect of reduced Chinese demand.
Mosaic (MOS) is well placed to gain from increasing global demand for fertilizers. The Vale Fertilizantes acquisition will also deliver significant synergies.