|Bid||19.35 x 1500|
|Ask||19.36 x 2900|
|Day's Range||19.26 - 19.68|
|52 Week Range||11.05 - 20.25|
|PE Ratio (TTM)||15.43|
|Earnings Date||Apr 24, 2018|
|Forward Dividend & Yield||0.20 (1.10%)|
|1y Target Est||20.57|
The “Fast Money” traders share their final trades for the day including Devon Energy, GW Pharmaceuticals, VanEck Vectors Semiconductors ETF and Freeport-McMoRan.
While Freeport (FCX) may continue to gain from improved metal prices, higher expected unit net cash costs may weigh on its Q1 earnings.
Metal and mining stocks saw a sharp rally yesterday. Looking at individual names, Alcoa (AA) and Freeport-McMoRan (FCX) gained 4.0% and 4.8%, respectively. In the steel space, U.S. Steel Corporation (X) and AK Steel (AKS) gained 3.1% and 2.3%, respectively. Notably, the stocks saw a significant increase in an otherwise range-bound market. The SPDR Dow Jones Industrial Average ETF (DIA) closed with a marginal loss of 0.17% on April 18. Steel stocks also defied a downgrade by UBS.
Previously in this series, we’ve looked at Freeport-McMoRan’s (FCX) 1Q18 earnings estimates and the key updates that markets might watch for on the company’s earnings call. In this final article of our series, we’ll see how analysts are rating Freeport ahead of its 1Q18 earnings release. Freeport has received a “strong buy” rating from one analyst while six analysts have a “buy” rating on the stock. Thirteen analysts have rated Freeport a “hold” or some equivalent, while the remaining three analysts polled by Thomson Reuters on April 17 rate the stock a “sell.” Freeport has received a mean consensus price target of $20.57, which represents 12.4% upside over April 17 closing prices.
Grasberg issues could dominate Freeport’s 1Q18 earnings call. There are several uncertainties over Freeport’s Indonesia operations. See Uncertainties Surround Freeport’s Indonesia Operations to look at the issues Freeport is grappling in Indonesia. The Grasberg issues could also be affecting Freeport’s valuation.
In the previous part of this series, we noted that Freeport-McMoRan (FCX) expects its 1Q18 copper shipments to be similar to the sequential quarter. Meanwhile, for commodity producers Antofagasta (ANTO), Southern Copper (SCCO), and Rio Tinto (RIO)(TRQ), commodity prices have a higher impact on earnings than shipments. In this article, we’ll see how commodity prices played out in 1Q18 amid the US-China trade war and how it could impact Freeport’s financial performance.
Freeport-McMoRan (FCX) is scheduled to release its 1Q18 earnings on April 24. In this article, we’ll see what analysts are projecting for Freeport’s 1Q18 revenues. Freeport managed to beat its revenue estimates by a wide margin in the last two consecutive quarters.
Freeport-McMoRan (FCX), the leading US-based copper miner, is slated to release its 1Q18 earnings on April 24. Teck Resources (TECK) is also expected to release its quarterly earnings on the same day, followed by First Quantum Minerals’ (FM) earnings release on April 26. Since it’s quarterly earnings season, diversified miners including BHP Billiton (BHP) will likely only release their operational data, as these companies only release their half-yearly and annual financial results.
* Indonesia exported 8,637,595 tonnes of nickel ore up to March 31, 2018 since its ore export policy was revised in January, 2017, data from the mining ministry showed * Indonesia's bauxite exports reached ...
Copper prices have been subdued this year. Copper prices tend to be sensitive to geopolitical developments. Since China is the world’s largest copper consumer, copper prices react to any event associated with the country.
NEW YORK, April 16, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of ...
China is the world’s biggest copper importer. Copper mining is concentrated in Latin America (ILF). Freeport-McMoRan (FCX) and Southern Copper (SCCO) have plants in the copper-rich region. China’s copper imports are seen as an indicator of the country’s copper demand. In this article, we’ll look at China’s March 2018 copper imports.
Global financial markets have been quite volatile over the last month. We’ve seen the United States and China take each other head-on in a trade war. After the Section 232 tariffs targeted several countries, President Trump set his sights on China, which runs a massive trade surplus with the United States. The broader markets have pared their 2018 gains amid an escalating US-China trade war. The SPDR S&P 500 ETF (SPY) is now trading with a year-to-date loss of 0.34%, based on April 12 closing prices.
Freeport-McMoRan (FCX) is valued at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 4.5x, whereas copper mining peers Antofagasta (ANTO) and Anglo American (AAL-L) have EV-to-EBITDA multiples of 5.5x and 4.7x, respectively, and Southern Copper (SCCO) and Glencore (GLNCY) have multiples of 5.8x and 11.0x. Based on the above 2018 multiples, Freeport appears to be the cheapest among the copper mining stocks we’re covering, while Southern Copper appears to be the most expensive. This year has been an unusual one for Freeport, as it is ending open-pit mining at its Grasberg mine.
Moody's Investors Service, ("Moody's") has affirmed the ratings on seven classes in JPMBB Commercial Mortgage Securities Trust 2015-C28, Commercial Pass-Through Certificates, Series 2015-C28: ...
Freeport-McMoRan (FCX) operates the Grasberg mine in Indonesia (EIDO) with Rio Tinto (RIO) (TRQ) as a minority partner. While the mine is a crown jewel in Freeport’s portfolio due to its vast size and attractive unit cash costs, its operations have been surrounded by uncertainties. Let’s discuss these uncertainties in perspective.
Firstly, as China is the world’s largest copper consumer, anything negative for the Chinese economy is a bearish driver for industrial metals. BHP Billiton (BHP), Vale (VALE), and Rio Tinto (RIO) rely heavily on China’s metal appetite. A US-China trade war could impact the Chinese economy.
Pure-play copper miners Freeport-McMoRan (FCX) and First Quantum Minerals (FM) had fallen 5.7% and 1.9%, respectively, this year as of April 6. What does this divergence between copper and miner stock prices tell us? In the case of copper miners such as Antofagasta (ANTO), earnings are sensitive to changes in copper prices.
Whether markets are in a state of deficit or surplus is a function of both supply and demand. In this article, we’ll look at leading copper miners’ 2018 operating plans to gauge how copper supply could play out this year. According to CNBC, Codelco CEO Nelson Pizarro stated that the world’s largest copper miner expects to produce “slightly more than 1.7 million tonnes of copper in 2018.” Codelco produced 1.7 billion pounds of copper last year, and the company expects its 2018 copper production to be similar.
Freeport and Barrick are both commodity-driven miners. The choice here really boils down to the commodity you want to own.
Copper miners, including Freeport-McMoRan (FCX), Southern Copper (SCCO), and Antofagasta (ANTO), rallied last year as the metal surged ~30%. The charges are paid by copper miners to smelters for processing copper concentrates. Over the last year or so, LME inventory changes have been notorious for their timing, with sudden rises or falls impacting copper prices.
Investment in risk assets like equity and base metals has never been for the faint-hearted. Investment in equity markets involves several risks including geopolitical risk. Notably, among the broader stock markets, material stocks tend to be more volatile. Stocks like U.S. Steel Corporation (X) and Freeport-McMoRan (FCX) have a beta in excess of one, which signifies a higher risk compared to broader markets.
In 2018, some observers expected copper to remain bullish amid a wave of labor contracts at leading copper mines including BHP Billiton’s (BHP) Escondida, the world’s largest copper mine. Also, Antofagasta (ANTO) managed to avert a strike at its Los Pelambres copper mine. To contrast, in 2017, there were disruptions at several mines, including some operated by Freeport-McMoRan (FCX), Southern Copper (SCCO), and Teck Resources (TECK). In the next article, we’ll see what fundamentals suggest for copper prices.