|Bid||0.00 x 800|
|Ask||55.86 x 900|
|Day's Range||39.69 - 41.08|
|52 Week Range||29.39 - 44.82|
|Beta (5Y Monthly)||0.97|
|PE Ratio (TTM)||21.51|
|Earnings Date||Feb 09, 2020 - Feb 13, 2020|
|Forward Dividend & Yield||1.60 (3.82%)|
|Ex-Dividend Date||Nov 04, 2019|
|1y Target Est||38.55|
Here are the top 3 copper stocks with the best value, the fastest earnings growth, and the most momentum. Southern Copper Corp.: Southern Copper is engaged in the exploration, development, and production of copper. First Quantum Minerals Ltd.: First Quantum Minerals is a Canada-based company that engages in the exploration, development, and production of copper, nickel, gold, zinc, silver and acid.
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Freeport-McMoRan (NYSE:FCX) stock finally seems to be moving convincingly higher from range-bound trade. In the last two-and-half months, FCX stock has surged by 50%.Source: MICHAEL A JACKSON FILMS / Shutterstock.com Importantly, the rally has been supported by strong fundamental developments. Moving into 2020, I believe that FCX stock has more legs in the current rally.Since FCX stock has already moved higher by 50% in the last few months, I want to first discuss the valuation. Freeport-McMoRan currently trades at a 2020 EV/EBITDA of 6.81. This is still attractive considering the point that Southern Copper Corporation (NYSE:SCCO) trades at a 2020 EV/EBITDA of 9.96. FCX stock can cool-off after a massive rally, but the uptrend is likely to remain intact in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Copper Will Trend Higher in 2020The primary reason for FCX stock surging higher is the fact that copper has been trending higher. Last week, copper touched a seven-month high on the London Metal Exchange. There are reasons to believe that the uptrend for copper will sustain in 2020. * 7 Stocks to Buy to Get 2020 Started the Right Way With the United States and China reaching a phase one deal, easing trade tensions can boost global GDP growth. The International Monetary Fund also expects emerging markets to grow at 4.6% in 2020 from 3.9% in 2019. If growth in China and India accelerates, the demand for copper will ensure that the commodity continues to move higher. This will be positive for FCX as EBITDA margin will expand along with growth in free cash flows.Another reason to be bullish on copper is the fact that the Federal Reserve has been pursuing a renewed expansionary policy. The central bank's assets have swelled from $3.8 trillion in September to $4.1 trillion in December.With easy money in the financial markets, depressed asset classes are likely to move higher. In the last ten years, commodities have been the most depressed asset class and the next decade can be different. Lower investments in mining expansion due to depressed prices have narrowed the demand-supply gap. It is expected that copper market will go from surplus to deficit in 2021.Clearly, fundamental factors support the bull story for copper and as the commodity trend higher, FCX stock will follow. Financial Flexibility Will Support GrowthFor 2020, Freeport-McMoRan expects to incur capital expenditure of $2.6 billion. With cash of $2.2 billion and undrawn credit facility of $3.5 billion, FCX is fully funded for 2020 and 2021.FCX also generated an operating cash flow of $1.3 billion for the first nine months of 2019. This implies an annualized OCF of $1.7 billion. Therefore, with copper prices trending higher, FCX is well-positioned to reduce its net debt position in 2020.In the last 24 months, deleveraging has ensured that credit metrics improve for FCX. With prospects of higher commodity prices, FCX stock is positioned to debt re-rating. In addition, dividends can possibly increase towards the end of 2020 or into 2021.I want to add here that the sale of gold will also add to cash flow in addition to copper sales. Freeport-McMoRan expects gold sales to increase from 0.87 million ozs in 2019 to 1.45 million ozs in 2021.Gold is trading near $1,500 an ounce and I am positive on gold as expansionary policies are bullish for the precious metal. Therefore, over the next 24 months, gold is likely to support EBITDA margin expansion and cash flow upside. My Final Thoughts on FCX stockIf we go back by 24 months to 3Q17, FCX had $14.8 billion in total debt. In addition, the company had a relatively uncertain outlook due to negotiations with the government in Indonesia. Currently, total debt has declined to $9.9 billion and there is a firm agreement with the Indonesian government. In addition, the outlook for copper is bullish and gold has been trending higher.Clearly, FCX has made significant progress in terms of sale of non-core assets, deleveraging. The next two years will be focused on production ramp-up, which will translate into EBITDA and cash flow upside.This makes FCX stock worth considering even after the strong rally in the last few months. However, investors can wait for some profit booking before fresh exposure for 2020.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post Rising Copper Prices Will Drive FDX Stock Higher in the New Year appeared first on InvestorPlace.
In 2004 Oscar González Rocha was appointed CEO of Southern Copper Corporation (NYSE:SCCO). This report will, first...
Southern Copper (SCCO) remains focused on increasing low-cost production and growth investments. The company is well poised to continue delivering enhanced performance.
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Peru has given an important green light for Southern Copper Corp's much-delayed Tia Maria copper mine, but the government cautioned it would not move ahead with the project without the right social and environmental conditions being met. Prime Minister Vicente Zeballos said on Wednesday the government would not "impose" the $1.4 billion project on the country, after it had earlier received the go-ahead with a construction license from Peru's mining council. In August the government had suspended a permit for the project amid violent protests in order to allow officials to evaluate objections from local authorities in the Arequipa region where the plant would be built.
Peru's government has given the green light for Southern Copper Corp's much delayed Tia Maria copper project, an official told Reuters on Wednesday. In August the government had suspended a permit for the $1.4 billion project amid violent protests to allow officials to evaluate objections from local authorities in the Arequipa region where the plant would be built. Southern Copper, a unit of Grupo Mexico, has sought to build Tia Maria for nearly a decade, but opposition from local farmers and residents who fear pollution and loss of water supply has thwarted the effort.
Southern Copper (SCCO) third-quarter earnings improved on higher sales volume of copper, silver and molybdenum, higher silver prices and lower cash cost and other cost reductions.
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Southern Copper (SCCO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Operations at Las Bambas, one of Peru's largest copper minefield, will be affected by road disruption with supplies being blocked amid anti-mining protests, Chinese miner MMG Ltd said on Thursday. Access to our Las Bambas mine has been disrupted due to roadblocks and logistics have been interrupted since Sept. 22, MMG said, as protests blocked supplies from reaching their operations. Residents of Peru's southern copper belt have occupied roads and a minerals railroad to protest a construction licence the government gave to Southern Copper Corp for its $1.4 billion Tia Maria project, which has been delayed for nearly a decade due to local opposition from farmers.