|Bid||12.10 x 4000|
|Ask||12.11 x 2200|
|Day's Range||12.02 - 12.11|
|52 Week Range||8.43 - 14.68|
|Beta (5Y Monthly)||2.30|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 22, 2020 - Apr 26, 2020|
|Forward Dividend & Yield||0.20 (1.59%)|
|Ex-Dividend Date||Jan 13, 2020|
|1y Target Est||14.39|
Freeport-McMoRan Inc. (NYSE:FCX) announced today that it has commenced cash tender offers to purchase a portion of its outstanding 4.00% Senior Notes due 2021, 3.55% Senior Notes due 2022, 3.875% Senior Notes due 2023 and 4.55% Senior Notes due 2024 (collectively, the Notes) for an aggregate purchase price up to $800 million (such amount subject to increase, decrease or elimination, the Aggregate Maximum Tender Cap), subject to the acceptance priorities set forth in the table below.
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it intends to offer, subject to market and other conditions, senior notes in two tranches in an underwritten registered public offering. FCX intends to use the net proceeds from the offering and, if necessary, cash on hand or available liquidity to fund its concurrent cash tender offers for up to $800 million aggregate purchase price of its 4.00% Senior Notes due 2021 (the "2021 notes"), 3.55% Senior Notes due 2022, 3.875% Senior Notes due 2023 and 4.55% Senior Notes due 2024 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection therewith. To the extent all of the 2021 notes are not tendered and purchased in the tender offers, FCX may, but is not obligated to, use a portion of any remaining net proceeds from the offering to redeem all or a portion of the remaining 2021 notes in accordance with the provisions of the indenture governing the 2021 notes.
Freeport Indonesia, operator of Grasberg, the world's second-biggest copper mine, expects to start construction of a new smelter in August, its chief executive said on Wednesday. Front-end engineering and design for the $3 billion smelter has been concluded and ground preparation is expected to finish in around three months, said Tony Wenas, chief executive of PT Freeport Indonesia, a unit of Freeport-McMoran Inc. Construction of a smelter is part of Freeport-McMoran's deal with the Indonesian government to maintain its mining rights at Grasberg until 2041, and the U.S. company has said it is committed to building one by Dec. 21, 2023.
On paper, there's an intriguing bull case for miner Freeport-McMoRan (NYSE:FCX). Freeport-McMoRan stock looks cheap. Copper prices have dipped of late, but have at least one important long-term tailwind. And Freeport has steadily improved its balance sheet in recent years, cutting net debt by over $12 billion between the end of 2015 and the end of 2019.Source: MICHAEL A JACKSON FILMS / Shutterstock.com But the key phrase is "on paper." In practice, there's a huge stumbling block to the bull case for FCX stock. Even if Freeport-McMoRan can drive higher free cash flow, as bulls and the company itself project, there's a long-running concern as to where that cash flow is going to go.The answer, according to a recent interview with Freeport-McMoRan's chief executive officer, is not to shareholders. Given the history not just of Freeport but the entire mining industry, that's a significant problem.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Case for Freeport-McMoRan StockFCX stock already has been a solid investment in the last few years. Shares bottomed in January 2016 below $4, as pressure on the company's since-divested oil and gas assets weighed on the stock. From that bottom, Freeport-McMoRan stock has more than tripled -- and there's a case for more upside ahead. * 20 Stocks to Buy From the Law of Accelerating Returns After all, production should increase nicely in the next two years. After its fourth-quarter report last month, Freeport guided for copper sales to reach 3.5 billion pounds in 2020, up from 3.3 billion in 2019. In 2021, however, the figure should spike to 4.3 billion, as the Grasberg mine in Indonesia, of which FCX owns 49%, returns to normalized output after a shift to underground mining.From there, copper prices need to cooperate, and that's always a risk. Copper prices are notoriously sensitive to the global economy; the commodity has been nicknamed "Dr. Copper" for its ability to provide a leading indicator of macroeconomic strength. A poorly-timed recession -- or even continued softness in key markets in Asia -- could pressure prices and thus Freeport's earnings and cash flow.But there's one potential long-term driver for copper demand: electric vehicles. EVs are "copper hogs," meaning growth from the likes of Tesla (NASDAQ:TSLA) can boost copper prices. and those prices drop almost straight to Freeport's bottom line. It's not as if shares are expensive even in the current moderate-price environment; should copper spike higher from here, Freeport stock likely does the same. Balance Sheet and Cash FlowFinally, Freeport's balance sheet is in much better shape. As noted, debt has come down dramatically in a matter of years. The company has over $5 billion in liquidity, and a higher stock price if it wants to make an acquisition. If Freeport doesn't make a deal, free cash flow should impress -- particularly if copper prices rise.Indeed, with its fourth-quarter presentation, Freeport-McMoRan modeled solid free cash flow in a higher-price environment. At $3 per pound, up from a current ~$2.60, operating cash flow in 2021-2022 would be in the range of $5 billion.Capital expenditures currently estimated at $2.4 billion for 2021 suggest free cash flow around $2.6 billion. Put even a 10x multiple on that figure and FCX gains over 50%; increase the multiple, and the upside could be even higher. Where Does the Cash Go?To be sure, that paper case does require some help from copper prices. Models for 2021-2022 at $2.75 a pound suggest free cash flow under $2 billion. A market capitalization currently near $19 billion thus likely doesn't see that much upside without pricing help. But investors in mining stocks are looking for leveraged returns on gains the underlying commodity -- and on paper FCX stock is set up to provide precisely those returns if copper gains.But that gets to the practical problem, and the interview CEO Richard Adkerson gave to Reuters at the end of last month. Adkerson noted the potential for higher cash flow and a higher stock price which would allow the company to make acquisitions."I'm looking forward to having a new experience in my career toward accessing alternatives and deciding which way we go…We don't have a clear directive now on what that direction could be, but we will be attractively situated and will have an opportunity to add value through investments," he told Reuters.Those investments could include not just acquisitions but the construction of new mines.In other words, the incremental free cash flow Freeport-McMoRan hopes to drive isn't going back to shareholders. It's going back into the business under Adkerson's direction. And that should worry, if not terrify, FCX shareholders. Adkerson's HistoryAdkerson was named CEO on Dec. 10, 2003. Under his watch, Freeport-McMoRan stock has declined by 42%.There isn't an external reason for the pressure. Copper prices, according to data from YCharts, have increased 174% over that span. Meanwhile, diversified miner BHP Group (NYSE:BHP), which has significant copper holdings, has seen its stock more than triple. Including dividends, BHP has posted a total return of more than 450%. For Freeport-McMoRan stock, total returns remain modestly negative.One big reason for the decline was the aforementioned move into oil and gas, spearheaded by Adkerson. Freeport-McMoRan spent $20 billion on two acquisitions in 2012 at the height of the oil boom. The moves were instantly criticized by Wall Street and by investors; Freeport stock dropped 16% in a single day on the announcement. Allegations of self-dealing soon followed.Less than four years later, Freeport managed to get less than $4 billion for its assets at the nadir of the oil bust. Over $16 billion in shareholder value was destroyed.An investor might believe -- or want to believe -- that Adkerson and the Freeport board have learned their lesson from the disastrous acquisitions. There's no evidence they have.The Freeport-McMoRan dividend was slashed in 2014; the board hasn't hiked the payout since despite a paltry 1.6% yield and the expected growth in free cash flow. Adkerson, at least per his interview, is looking to spend more shareholder money after the company spent the last four years recovering from its foray into oil and gas.There are thus two scenarios here. Copper prices fall or stay roughly flat, and Freeport-McMoRan stock likely does the same. Or copper prices rise, giving Adkerson free reign to go and spend billions of dollars more of shareholder funds. Neither sounds particularly attractive. The Mining ProblemTo be somewhat fair, this is not a Freeport-only problem. As I detailed back in 2018, gold miners like Barrick Gold (NYSE:GOLD) have done a disastrous job of fulfilling their mission of providing leverage to the gold price. Barrick, Kinross Gold (NYSE:KGC) and AngloGold Ashanti (NYSE:AU) all saw their shares fall by over 60% even in a rising-price environment.Recent performance for mining stocks has been better, but it's still not as good as it should be in theory. Even the gains in Freeport stock over the last few years are more a case of the stock rallying sharply from 2016 lows than any real improvement on the ground. FCX stock actually is down 20% over the past three years despite basically flat copper prices. The Bottom Line on Freeport-McMoRan StockWhat makes a stock like FCX particularly problematic is that the exchange-traded fund revolution has created far better alternatives. An investor who is bullish on copper can simply buy copper through an ETF. She can lever up that bet through the use of margin or a 2x or 3x ETF. Those trades have risk if copper prices decline of course; so does FCX.But if copper prices rise, that investor doesn't have to let Adkerson determine what to do with her gains. ETFs do have fees, but they're generally minimal; meanwhile, Adkerson's pay packages from 2016 to 2018 alone totaled over $50 million, according to Freeport's most recent proxy statement.If Freeport-McMoRan and Adkerson truly had learned their lesson and were looking to use potentially higher cash flow for increased shareholder returns, that would be one thing. Clearly, they're not. History, and the -42% returns under Adkerson's 16-year tenure, both suggest that it is a real problem for Freeport-McMoRan stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post The Interview That Should Terrify Owners of Freeport-McMoRan Stock appeared first on InvestorPlace.
Freeport McMoRan shows rising price performance, earning an upgrade to its IBD Relative Strength Rating from 77 to 81.
A Relative Strength Rating upgrade for Freeport McMoRan shows improving technical performance. Will it continue?
Rumors that Barrick, the world's second-largest gold miner, planned to bid for Freeport are "completely wrong", Bristow told Reuters on the sidelines of the Mining Indaba conference in Cape Town. "People say, 'Are you interested in Grasberg?' I say, 'I have to be; it's a tier one asset,'" Bristow said. Buying Grasberg - the world's largest gold mine and second-largest copper mine - would fit nicely into Barrick's strategy of expanding in the Pacific Rim and capitalizing on rising copper demand from the electric vehicle industry.
Barrick Gold is not looking to merge with copper miner Freeport-McMoran, CEO Mark Bristow said on Thursday, although he is interested in the company's Grasberg mine in Indonesia, and indicated he wants to expand in the Pacific Rim. Rumours the world's second-largest gold miner planned to combine with Freeport are "completely wrong", Bristow told Reuters on the sidelines of the Mining Indaba conference in Cape Town.
Central banks, including those in China and the U.S., will step in to stimulate their economies, driving demand for metals.
Freeport-McMoRan Inc. (NYSE:FCX) shareholders (or potential shareholders) will be happy to see that the Director, John...
Demand for copper is projected to surge this decade because of the rising popularity of electric vehicles, which use twice as much copper as internal combustion engines. Despite that, Phoenix, Arizona-based Freeport's shares are worth half what they were in 2010, dragged down by uncertainty over the company's stake in a major Indonesian mine and debt from an ill-fated oil and gas venture.
The terms "artificial intelligence" and "copper miner" do not obviously relate to one another. But in the case of the company I'm about to tell you about, they do.Source: MICHAEL A JACKSON FILMS / Shutterstock.com And this connection is one of several reasons why this stock has become a compelling speculation -- and my pick for the top stock of 2020.One of the world's largest copper producers, this company has been testing an artificial intelligence, or "machine learning," model at its Bagdad copper mine in Arizona.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis machine learning model uses data from sensors around the mine to "tailor" the ore processing method to each of the seven distinct types of ore that come from it.This test has been a remarkable success, so the company is now planning to roll out its new technology across all of its operations in the Americas.By doing so, this company expects to increase its annual copper production by a hefty 5%.And I expect that to produce triple-digit gains in 2020.Take a look … Boosting ProductionThe machine learning program is just one of three major initiatives Freeport McMoRan (NYSE:FCX) says will boost its copper production by 30% in 2020.The other two production drivers are: * A ramp up in Freeport's new underground mining operations at its massive Grasberg mine in Indonesia. * The company's new Lone Star copper development in Arizona is going into production.Combined, these three initiatives should produce a significant jump in earnings, even with no change in current copper or gold prices. At a minimum, the company should earn about 55 cents a share in 2020 and $1.40 in 2021. * 7 Healthcare Stocks With 100% Street Support Those results would give Freeport's stock a price-to-earnings ratio of 24 in 2020, which will then fall to just nine times earnings in 2021. Remember, though, these earnings estimates assume no change in copper prices during the next 12 months.But that's not what I'm assuming.I believe the price of copper is on the verge of a major upside move that will carry it above the five-year high of the $332 a pound mark it hit in late 2017.Source: InvestorPlace Five main factors will power this big move. Three of them are the "usual suspects," while two are unusual ones.First, the usual ones: * Copper supply is falling short of copper demand, which is creating a deficit in the market. * The copper deficit is likely to grow much larger over the coming decade. * The Federal Reserve has recently stated its intention to hold interest rates low throughout 2020, which should ignite commodity prices.In addition to these bullish forces, copper prices could gain a tailwind from two nontraditional factors: * Improving international trade relations, especially between the United States and China. * The global boom in electric vehicles and energy storage.Let's take a closer look at each of these five factors … Fueling Up for the Copper RallyFirst, Federal Reserve Chairman Jerome Powell has stated clearly that the Fed would refrain from raising short-term interest rates in 2020. Instead, he plans to hold rates below 1.75% throughout the year.I have no idea what the "appropriate" level of interest rates ought to be. But as recently as one year ago, the members of Powell's Federal Open Market Committee expected the appropriate level for short-term rates in 2020 to be 3.13%.Clearly, the Fed is pursuing an "easier" monetary policy than most investors had been expecting during the last several months. Generally speaking, "easy money" monetary policies tend to produce periods of rising commodity prices.Supply deficits are a second factor that could push copper prices higher. For most of the last few years, the global supply of refined copper has been falling slightly short of demand. But according to most forecasts for the copper industry, the current supply deficit will not merely persist during the next few years; it will grow much larger.Source: InvestorPlace Thanks to this supply deficit, coupled with the Fed's low interest rates, Freeport's earnings and cash-flow results are likely to surprise on the upside in 2020 -- especially as the copper price breaks out of its current basing formation around $2.60 a pound and challenges its 2017 highs closer to $3.50.Even a modest move to $3.25 a pound would produce a major lift to Freeport's results. The company's annual operating cash flow would swell by more than $1 billion -- from roughly $3 billion to $4 billion. Electric VehiclesBut remember, Freeport also produces nearly 1 million ounces of gold per year and 92 million pounds of molybdenum (a metal that's highly resistant to corrosion). So if either of those metals took a major swing to the upside, Freeport would benefit as well.That said, copper is the major driver of the company's profitability. So let's take a closer look at the two unusual "one-off" factors that could spur strong copper demand … and a rising copper price.First, the two-year trade war between the United States and China seems to be ending, with both nations signing a Phase 1 agreement last week. So, trade frictions between the world's two largest economies seem to be dissipating.As normalized trade resumes between the U.S. and China, economic growth could gain a tailwind that boosts demand for essential commodities like copper.Importantly, China is the world's largest importer of refined copper. So if the Chinese economy gains renewed vitality, the copper market will notice. And let's not forget that China is also the world's largest producer of electric vehicles, which are "copper hogs."Source: InvestorPlace Electric vehicles require about four times as much copper as internal combustion vehicles. Therefore, as EVs continue to gain market share, they will absorb a growing slice of the global copper supply. The Bottom Line on FCX StockI believe Freeport-McMoRan will produce triple-digit gains in 2020, both because its copper production will ramp up over the next several months and because copper prices will likely soar toward $3.50 a pound. * 10 Recession-Resistant Services Stocks to Buy I began researching my potential "stocks of the year" in early December and immediately saw the potential in Freeport. Clearly I was on the right track, because the stock has jumped as much as 20% since then. That's good news.The even better news is that I still expect much larger gains -- even triple-digit gains -- throughout 2020.Regards,Eric FryP.S. Folks spend their entire lives saving for retirement, but very few ever spend time thinking about how to protect their capital when things go south. Even a relatively minor decline of 20% could set your retirement back several years or more. That's why, for a limited time, I'd like to rush you a copy of my new book, Bear Market 2020: The Survival Blueprint.When it comes to the stock market, the biggest mistake most people are making right now is doing nothing. Don't wait for the news media to tell you the stock market has fallen by 20%. By then it will be too late. Learn how to claim your copy of Bear Market 2020 by clicking here.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls -- in good markets AND bad. How? By finding potent global megatrends … before they take off. And when it comes to bear markets, you'll want to have his "blueprint" in hand before stocks go south. Eric does not own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Freeport McMoRan Is the Best Stock to Buy for 2020 appeared first on InvestorPlace.
Freeport's (FCX) average unit net cash costs per pound of copper was higher in Q4 on a year-over-year basis on lower production volumes at PT-FI.
The S&P 500 ended slightly higher and the Nasdaq eked out a record closing high on Thursday, helped by a jump in Netflix, while news about the coronavirus outbreak spreading from China and mixed earnings results kept a lid on the market. The S&P and the Nasdaq had both been trading down before news late in the session that Gilead Sciences Inc was assessing its experimental Ebola drug as a possible treatment for the virus.
Wall Street struggled for direction on Thursday as investors digested mixed earnings and developing news about the coronavirus outbreak emanating from China. Health officials in China put millions of people on lockdown in efforts to contain a coronavirus outbreak that has so far claimed 18 lives, but the World Health Organization (WHO) announced it was "a bit too early" to declare the virus a global health emergency. Additionally, a spate of earnings reports, while beating Street estimates in many cases, have failed to impress investors.
Freeport-McMoRan Inc. said Thursday it had net income of $9 million, or less than 1 cent a share, in the fourth quarter, down from $485 million, or 33 cents a share, in the year-earlier period. Adjusted per-share earnings came to 2 cents, ahead of the FactSet consensus for breakeven. The copper and gold miner said revenue rose to $3.911 billion from $3.684 billion, well ahead of the $3.698 billion FactSet consensus. Sales of copper totaled 906 million pounds, sales of gold came to 317 thousand ounces and sales of molybdenum came to 22 million pounds in the quarter. For 2020, the company is expecting sales of about 3.5 billion pounds of copper, 0.8 million ounces of gold and 88 million pounds of molybdenum, including 725 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum in the first quarter. Capital expenditures are expected to come to $2.8 billion in 2020 after $2.65 billion in 2019, and will fund underground development rose 0.5% premarket but are up just 0.1% in the last 12 months through Wednesday, while the S&P 500 has gained 26%.