|Bid||0.00 x 800|
|Ask||0.00 x 2900|
|Day's Range||14.55 - 14.90|
|52 Week Range||12.18 - 20.25|
|PE Ratio (TTM)||7.37|
|Earnings Date||Oct 23, 2018 - Oct 29, 2018|
|Forward Dividend & Yield||0.20 (1.46%)|
|1y Target Est||18.56|
A look at the shareholders of Freeport-McMoRan Inc (NYSE:FCX) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to seeRead More...
Have President Trump’s Tactics Started to Yield Results? On September 17, President Trump imposed 10% tariffs on $200 billion worth of goods from China. The tariffs will increase to 25% by the end of 2018.
Towards the end of 2017, the term “synchronized global growth” appeared. Back then, things were looking strong for the global economy. The US economy was expected to expand at a fast pace in 2018 after the tax cuts. China’s economic growth also looked strong. Other developed and developing economies were also growing at a good pace. There didn’t seem to be imminent risks for the global economy. Copper, an indicator of global economic activity, rallied almost 8% in December 2017 and ended the year with 31.3% gains. ...
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.
Electric vehicle (or EV) sales are expected to grow at a fast pace over the next decade. Higher EV adoption is also shaking metal markets. Congo has revised its mining code, which has triggered a backlash from companies operating in the region.
Canada's Lundin Mining Corp is on the hunt for copper mines and projects and willing to spend up to $3 billion on mergers and acquisitions, its incoming chief executive officer said in an interview on Thursday. The base metal miner was recently outbid by China's Zijin Mining Group in its hostile takeover offer for Nevsun Resources.
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.
Copper prices have come under pressure this year. While supply resilience has made traders bearish on copper, US-China trade war concerns have taken a toll on copper prices (BHP). Copper prices are seen as an indicator of global economic activity. Traders have betted against copper amid the trade war.
LONDON/TORONTO, Sept 13 (Reuters) - Mining companies and commodities trading houses are expected to table first-round offers by a September 28 deadline for a stake in Teck Resources Ltd's Quebrada Blanca copper mine expansion in northern Chile, two sources with knowledge of the matter said. Canada's Teck has said a development partner could contribute $2 billion for a 30 percent to 40 percent stake in the $4.8 billion Phase 2 project, an investment deal it expects to close in the fourth quarter. Demand for copper is also rising due to the expansion of electricity grids and growing electric vehicles market.
As we discussed in the previous part, Freeport-McMoRan (FCX) has seen negative price action this year. Other copper miners like Southern Copper (SCCO), Glencore (GLEN-L), and Antofagasta (ANTO) have also followed copper lower. For investors in companies like Freeport-McMoRan, the scars of the 2015–2016 sell-off are fresh. In January 2016, Freeport-McMoRan stock fell below $4 as copper prices fell below $4,500 per metric ton.
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.
China (FXI) is the world’s biggest copper importer. Copper mining is concentrated in Latin America, and companies including Freeport-McMoRan (FCX), Antofagasta (ANTO), and BHP Billiton (BHP) operate copper mines in the region. Copper prices are seen as an indicator of global economic activity (ACWI).
On September 8, China released its trade data for August. The country’s trade data, which is one of the most followed economic indicators, has seen even more scrutiny this year amid the US-China trade spat. Both China and the United States have imposed tit-for-tat tariffs on billions of dollars of goods and threatened more tariffs. Broader US markets came under pressure last week amid fears of an escalation in the US-China trade war. The SPDR S&P 500 ETF (SPY) and the PowerShares QQQ ETF (QQQ) were in the red last week. However, both these ETFs are in the green for the year.
The number of analysts recommending a “buy” for Vale (VALE) has increased in the last few months. Currently, 73.0% of the analysts covering Vale stock recommend a “buy,” compared with 56.0% at the end of April. Approximately 23.0% of analysts recommend a “hold,” and 4.0% recommend a “sell.” Vale’s target price implies a 17.0% upside based on its current market price.
Off the chart, there remains plenty of reasons, old and new, to be wary of Freeport-McMoRan (NYSE:FCX). It hasn’t been a pretty 2018 for Dr. Copper and miner Freeport-McMoRan. The bear narrative remains in full swing with teeth sharpened of late on continued trade war worries, concerns of a weak-kneed Chinese economy, the strong U.S. greenback and Freeport’s leveraged play on the price of copper.
Peruvian Energy and Mines Minister Francisco Ismodes on Thursday proposed making a temporary tax benefit for mining companies part of the country's permanent tax code in order to reduce investment uncertainty in the world's No. 2 copper producer. Miners in Peru have enjoyed refunds on an 18 percent value-added tax rate for nearly two decades thanks to repeated renewals under market-friendly governments. Ismodes said the government of centrist President Martin Vizcarra would at the least extend the tax benefit past this year, when it is now set to expire.
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.
While falling copper prices is bad news for the miners of the commodity, it is expected to benefit certain industries in the form of lower input costs.
Copper prices rose sharply in 2016 and 2017, aiding copper companies’ profitabilities. However, as we noted earlier in this series, copper prices have been weak this year amid the US-China trade war scare.