Freeport-McMoRan Copper and Gold (NYSE:FCX) had a blowout quarter led by higher copper prices and production, along with better-than-expected sales of molybdenum.
The surge in gold prices hasn't hurt the diversified miner either.
Freeport generated a profit of $1.5 billion, or $1.57 a share, up from $945 million, or $1 a share, last year in the same quarter, adjusted for the stock split. Revenue jumped 31% to $5.71 billion. Analysts polled by Thomson Reuters had estimated a $1.26profit on $5.3 billion in revenue.
Copper production grew 2.3% while gold production rose 3.8%. Molybdenum output increased about 18 percent.
It sold 926 million pounds of copper, more than the 840 million pounds it had projected.
Prices for gold and copper both rose 26 percent, while molybdenum prices increased 20percent. It also sold 20 million pounds of molybdenum, surpassing the 17 million pounds projected.
Freeport has also been successfully reducing it debt load, which had reached about $17.5 billion after the acquisition of Phelps Dodge. It has been cut to $3.7 billion.
Freeport was trading at $53.82, gaining $2.10, or 4.06 percent, as of 11:52 AM EDT.
Showing posts with label Molybdenum. Show all posts
Showing posts with label Molybdenum. Show all posts
Wednesday, April 20, 2011
Tuesday, April 19, 2011
Taseko Mines (TGB) Copper Production at Gibralter Falls 17 Percent
Taseko Mines (AMEX:TGB) reported copper production at its Gibraltar mine in British Columbia fell 17 percent, as a hard winter resulted in operations being shut down for four days because of unscheduled maintenance.
Production at Gibraltar, which Taseko has a 75 percent stake in, fell from 23.2 million pounds of copper last year in the first quarter to 19.2 million pounds of copper this year in the same quarter.
For molybdenum the results were different, as the company was able to extract 316,000 pounds from the mine, an increase of 63 percent.
Taseko said in a statement, "This is a strong indication that the new molybdenum plant ... will add appreciably to total molybdenum metal production."
Taseko was trading in New York at $5.45, falling $0.03, or 0.55 percent, as of 2:14 PM EDT.
Production at Gibraltar, which Taseko has a 75 percent stake in, fell from 23.2 million pounds of copper last year in the first quarter to 19.2 million pounds of copper this year in the same quarter.
For molybdenum the results were different, as the company was able to extract 316,000 pounds from the mine, an increase of 63 percent.
Taseko said in a statement, "This is a strong indication that the new molybdenum plant ... will add appreciably to total molybdenum metal production."
Taseko was trading in New York at $5.45, falling $0.03, or 0.55 percent, as of 2:14 PM EDT.
Monday, March 21, 2011
Taseko (TGB) Increasing Production at Gibraltar
Saying increased production has helped the company perform strongly, Taseko Mines (AMEX:TGB) said it is going to boost production at its flagship Gibraltar Mine to 180,000 pounds of copper and one million pounds of molybdenum annually.
In 2010, the miner said copper production rose by 30 percent and molybdenum production by 50 percent.
Russell Hallbauer, Taseko CEO, said, "As announced in February, we are moving forward with a further capacity increase at Gibraltar. This $325 million investment will allow us to leverage the strong copper price environment and further enhance Taseko's cash flow generating ability."
"Strong financial performance in 2010 was driven by improved copper production and the rising copper price environment. ...These improvements are the result of ongoing investments in mine and concentrate equipment," he added.
Taseko produced 92.3 million pounds of copper in 2010 and 941,000 pounds of molybdenum.
Taseko closed Friday at $5.94, up $0.11, or 1.89 percent.
In 2010, the miner said copper production rose by 30 percent and molybdenum production by 50 percent.
Russell Hallbauer, Taseko CEO, said, "As announced in February, we are moving forward with a further capacity increase at Gibraltar. This $325 million investment will allow us to leverage the strong copper price environment and further enhance Taseko's cash flow generating ability."
"Strong financial performance in 2010 was driven by improved copper production and the rising copper price environment. ...These improvements are the result of ongoing investments in mine and concentrate equipment," he added.
Taseko produced 92.3 million pounds of copper in 2010 and 941,000 pounds of molybdenum.
Taseko closed Friday at $5.94, up $0.11, or 1.89 percent.
Friday, January 14, 2011
Alcoa (NYSE:AA), Reliance Steel & Aluminum (NYSE:RS) Boosted by Dahlman Rose
Alcoa (NYSE:AA) and Reliance Steel & Aluminum (NYSE:RS) were both upgraded by Dahlman Rose Friday, boosting them both from "Hold" to "Buy."
Concerning Alcoa, Dahlman said they see the company's downstream business improving, along with a stronger aluminum price outlook. Also noted was the alumina business, which they see becoming more profitable in 2011.
For Reliance, they see them benefiting from the broader U.S. domestic steel market continuing to improve. The construction market is expected to start to move within an estimated 9 to 12 months, suggesting companies may start to spend on steel and other materials before that. That could help Reliance through 2012 if that's how it works out.
Along with the steel industry, Dahlman also likes iron ore, copper, aluminum and molybdenum going forward.
Alcoa was trading at $16.01, gaining $0.26, or 1.68 percent, as of 3:03 PM EST. Reliance Steel was trading at $53.24, up $0.12, or 0.23 percent.
Concerning Alcoa, Dahlman said they see the company's downstream business improving, along with a stronger aluminum price outlook. Also noted was the alumina business, which they see becoming more profitable in 2011.
For Reliance, they see them benefiting from the broader U.S. domestic steel market continuing to improve. The construction market is expected to start to move within an estimated 9 to 12 months, suggesting companies may start to spend on steel and other materials before that. That could help Reliance through 2012 if that's how it works out.
Along with the steel industry, Dahlman also likes iron ore, copper, aluminum and molybdenum going forward.
Alcoa was trading at $16.01, gaining $0.26, or 1.68 percent, as of 3:03 PM EST. Reliance Steel was trading at $53.24, up $0.12, or 0.23 percent.
Monday, November 29, 2010
Freeport's (NYSE:FCX) Debt, Margins, and Earnings
Freeport-McMoRan has exploded in share price since it bottomed out at $16.80 a share on December 1, 2008, and it's worth looking briefly at their current situation as it relates to debt, margins and earnings, which may challenge the company going forward.
The one thing to keep in mind concerning Freeport and all companies with heavy exposure to the right commodities, is rising prices can forgive a lot of weaknesses, but weaknesses still affect the bottom line of a company, and performances can be better even in the best of times.
Higher commodity prices have been the norm recently, but macroeconomic circumstances are dividing up the sector some, with particular commodities sure to continue doing well, but others falling by the wayside or reaching top price levels.
As far as Freeport or any commodity company, one must continue to closely watch debt levels and their costs, operational costs, margins, and that ultimately all leads to earnings.
Over the last several years Freeport has taken on more debt even as their equity increased. The problem is the debt-to-equity ratio has also increased, which isn't a good thing for the company. That means even in a bull commodity market their debt is increasing at higher levels. This doesn't mean Freeport is in danger, but the trend isn't good. Their debt-to-equity is a little over 41 percent at this time.
This has resulted in the gross margins of Freeport being under pressure, which is something that needs to be closely watched over the next year.
Other situations to watch is the China story as it relates to commodities, as they're in the midst of battling an inflation challenge, and that will probably result in slower growth and lower imports. That could cause lower sales for companies like Freeport, although China will still grow strongly, but not at the rate they have in the recent past.
Freeport can't do anything about the macroeconomic situation, but the things they can control like debt and operational costs need to be watched closely, along with the price trends of specific commodities.
It seems the period where the majority of commodities could be counted on to rise on general demand are over, and specific commodities will have to be watched in order to determine whether or not commodity prices will overcome elements which could result in lower margins and earnings.
For Freeport, they primarily mine copper, gold, silver, molybdenum and cobalt. Of those, copper is probably the most important to watch, as gold and silver in the current economic environment could help them overcome higher debt and costs, as prices will continue rising for some time.
Copper isn't necessarily guaranteed that anymore because of the probably cutbacks in places like China, and the ongoing weakness in building of new homes in the West, including the United States.
The one thing to keep in mind concerning Freeport and all companies with heavy exposure to the right commodities, is rising prices can forgive a lot of weaknesses, but weaknesses still affect the bottom line of a company, and performances can be better even in the best of times.
Higher commodity prices have been the norm recently, but macroeconomic circumstances are dividing up the sector some, with particular commodities sure to continue doing well, but others falling by the wayside or reaching top price levels.
As far as Freeport or any commodity company, one must continue to closely watch debt levels and their costs, operational costs, margins, and that ultimately all leads to earnings.
Over the last several years Freeport has taken on more debt even as their equity increased. The problem is the debt-to-equity ratio has also increased, which isn't a good thing for the company. That means even in a bull commodity market their debt is increasing at higher levels. This doesn't mean Freeport is in danger, but the trend isn't good. Their debt-to-equity is a little over 41 percent at this time.
This has resulted in the gross margins of Freeport being under pressure, which is something that needs to be closely watched over the next year.
Other situations to watch is the China story as it relates to commodities, as they're in the midst of battling an inflation challenge, and that will probably result in slower growth and lower imports. That could cause lower sales for companies like Freeport, although China will still grow strongly, but not at the rate they have in the recent past.
Freeport can't do anything about the macroeconomic situation, but the things they can control like debt and operational costs need to be watched closely, along with the price trends of specific commodities.
It seems the period where the majority of commodities could be counted on to rise on general demand are over, and specific commodities will have to be watched in order to determine whether or not commodity prices will overcome elements which could result in lower margins and earnings.
For Freeport, they primarily mine copper, gold, silver, molybdenum and cobalt. Of those, copper is probably the most important to watch, as gold and silver in the current economic environment could help them overcome higher debt and costs, as prices will continue rising for some time.
Copper isn't necessarily guaranteed that anymore because of the probably cutbacks in places like China, and the ongoing weakness in building of new homes in the West, including the United States.
Friday, November 12, 2010
Taseko Mines (NYSE:TGB) Now a Value Story says TD Newcrest
Taseko Mines (NYSE:TGB) has taken a big hit since the announcement concerning the decision to not allow them to work their Prosperity property.
Even so, TD Newcrest actually upgraded Taseko from "Reduce" to "Hold."
"We are maintaining our target price and increasing our rating to HOLD from Reduce following share price weakness on the negative Prosperity permitting decision. The potential return to our target is 6.6%. We believe Taseko shares are fairly valued at these levels and that Taseko has become a value story rather than a growth story," said TD.
The copper and molybdenum miner announced it earned $1.4 million or a penny a share in its latest quarter, up from a loss of $2.4 million or one cent a share in the same quarter last year. On the negative side, revenue dropped to $37.5 million from $40.4 million.
Taseko does have some room to move, as it has about $200 million in cash, and is growing it on a quarterly basis from their Gibraltar mine.
Taseko closed Thursday at $4.66, gaining $0.01, or 0.22 percent. TD Newcrest has a price target of C$5.00 on them.
Even so, TD Newcrest actually upgraded Taseko from "Reduce" to "Hold."
"We are maintaining our target price and increasing our rating to HOLD from Reduce following share price weakness on the negative Prosperity permitting decision. The potential return to our target is 6.6%. We believe Taseko shares are fairly valued at these levels and that Taseko has become a value story rather than a growth story," said TD.
The copper and molybdenum miner announced it earned $1.4 million or a penny a share in its latest quarter, up from a loss of $2.4 million or one cent a share in the same quarter last year. On the negative side, revenue dropped to $37.5 million from $40.4 million.
Taseko does have some room to move, as it has about $200 million in cash, and is growing it on a quarterly basis from their Gibraltar mine.
Taseko closed Thursday at $4.66, gaining $0.01, or 0.22 percent. TD Newcrest has a price target of C$5.00 on them.
Monday, November 8, 2010
Thompson Creek (NYSE:TC) Could be Prime Acquisition Target
With a number of large attempt to merge with large cap and mid-cap stocks, Deutsche Bank (NYSE:DB) says they see Thompson Creek (NYSE:TC) being an attractive acquisition candidate, and upgraded them from "Hold" to "BUY."
Deutsche said, "US Fed Quantitative Easing clearly favors hard asset producers. As a result we upgrade TC to Buy and raise our PT from $13 to $16 based on 12x 2011E EPS from 10x previously as we believe near-term valuations will rise as investors seek to re-allocate to dollar-defensive stocks. Further, given recent failed large cap M&A, mid-cap stocks may become renewed focus of consolidation, fueling further revaluation, supporting upgrade."
Thompson Creek primarily focuses on all aspects of the molybdenum market, from mining to marketing them across North America.
They closed Friday at $13.12, gaining $0.69, or 5.55 percent. Deutsche has a price target of $16 on them, raising it from $13 a share.
Deutsche said, "US Fed Quantitative Easing clearly favors hard asset producers. As a result we upgrade TC to Buy and raise our PT from $13 to $16 based on 12x 2011E EPS from 10x previously as we believe near-term valuations will rise as investors seek to re-allocate to dollar-defensive stocks. Further, given recent failed large cap M&A, mid-cap stocks may become renewed focus of consolidation, fueling further revaluation, supporting upgrade."
Thompson Creek primarily focuses on all aspects of the molybdenum market, from mining to marketing them across North America.
They closed Friday at $13.12, gaining $0.69, or 5.55 percent. Deutsche has a price target of $16 on them, raising it from $13 a share.
Tuesday, October 19, 2010
Yamana (NYSE:AUY) Still Struggles to Gain Respect, Traction
Although there have been a lot of positive comments and data presented on the future of Yamana Gold (NYSE:AUY), it continues to struggle to gain respect and traction in a gold investment climate that should result in a much better price movement for the gold miner.
Scotia interrupted the attempted party again, downgrading Yamana from "Sector Outperform" to "Sector Perform."
With analysts having eight "strong buy" ratings, six "buys," and four holds" on Yamana, we will probably see more downgrades for them in the near future.
Most people continue to hold out hope that Yamana will take off, and yet it continues to linger, even though it does seem to have a number of reasons to be a solid investment and outperformer.
Their extremely low production costs alone make it a desirable company, coming in at a little over $100 a gold-equivalent ounce.
That gives them a lot of flexibility and enables them to operate in weak and strong markets when competitors would flounder.
Yamana also has significant metal resources like zinc, copper, molybdenum and silver, all of which are positioned to move up nicely in price, especially copper and silver.
From last year at this same time, Yamana has generated a loss for its share price, closing Monday at $11.17, losing $0.10, or 0.89 percent.
Scotia interrupted the attempted party again, downgrading Yamana from "Sector Outperform" to "Sector Perform."
With analysts having eight "strong buy" ratings, six "buys," and four holds" on Yamana, we will probably see more downgrades for them in the near future.
Most people continue to hold out hope that Yamana will take off, and yet it continues to linger, even though it does seem to have a number of reasons to be a solid investment and outperformer.
Their extremely low production costs alone make it a desirable company, coming in at a little over $100 a gold-equivalent ounce.
That gives them a lot of flexibility and enables them to operate in weak and strong markets when competitors would flounder.
Yamana also has significant metal resources like zinc, copper, molybdenum and silver, all of which are positioned to move up nicely in price, especially copper and silver.
From last year at this same time, Yamana has generated a loss for its share price, closing Monday at $11.17, losing $0.10, or 0.89 percent.
Monday, October 4, 2010
Goldcorp (NYSE:GG), Yamana (NYSE:AUX), Barrick (NYSE:ABX), Extorre (TSE:XG) and Argentine Glacier Law
The new glacier law in Argentina, which was approved by the Argentine Senate, and which President Cristina Fernandez has said she will sign, has generated some concern for the mining industry, especially gold miners in the country.
Fortunately, most of this is posturing and show, as very little in the way of mining will be affected by the law, either now or in the future.
Companies with projects in the country like Goldcorp (NYSE:GG), Yamana (NYSE:AUX), Patagonia (OTC:PATAF) and Extorre (TSE:XG) shouldn't have any problems as all, as they don't have mines in the zone being supposedly protected.
What this does is give the appearance of the government protecting the region, when in fact there is really little to be protected because no one is mining the area.
The new law will limit any economic activity in areas close to glaciers in the country.
As far as mining exposure in Argentina, Goldcorp now has it through their recent acquisition of Andean Resources, whose flagship mine is the Cerro Negro gold-silver mine being developed in the country. That won't be affected by the new law.
Extorre Gold Mines is developing the Cerro Moro gold mine, Yamana the Agua Rica copper-gold- molybdenum mine, and Patagonia Gold PLC (OTC:PATAF) its Lomada project. All of which won't be affected by the new law.
There is one exception to this, and that is Barrick Gold Corp. and their huge Pascua Lama gold and silver mine.
Radical environmental groups have attempted to derail the project, saying the company has been destroying glaciers through their practices.
Rodrigo Jimenez, Barrick vice president of corporate affairs said, "We do not mine on glaciers and, in fact, Barrick has already implemented a comprehensive range of measures to protect them as well as other sensitive environmental areas around both the Veladero mine and the Pascua-Lama project."
It remains to be seen if environmentalists use the new law to attempt to disrupt the project. They almost assuredly will.
Barrick has began the construction of the mine after many legal battles and challenges. Now they are waiting on an agreement between between Chile and Argentina over a tax-sharing agreement, and permits.
Fortunately, most of this is posturing and show, as very little in the way of mining will be affected by the law, either now or in the future.
Companies with projects in the country like Goldcorp (NYSE:GG), Yamana (NYSE:AUX), Patagonia (OTC:PATAF) and Extorre (TSE:XG) shouldn't have any problems as all, as they don't have mines in the zone being supposedly protected.
What this does is give the appearance of the government protecting the region, when in fact there is really little to be protected because no one is mining the area.
The new law will limit any economic activity in areas close to glaciers in the country.
As far as mining exposure in Argentina, Goldcorp now has it through their recent acquisition of Andean Resources, whose flagship mine is the Cerro Negro gold-silver mine being developed in the country. That won't be affected by the new law.
Extorre Gold Mines is developing the Cerro Moro gold mine, Yamana the Agua Rica copper-gold- molybdenum mine, and Patagonia Gold PLC (OTC:PATAF) its Lomada project. All of which won't be affected by the new law.
There is one exception to this, and that is Barrick Gold Corp. and their huge Pascua Lama gold and silver mine.
Radical environmental groups have attempted to derail the project, saying the company has been destroying glaciers through their practices.
Rodrigo Jimenez, Barrick vice president of corporate affairs said, "We do not mine on glaciers and, in fact, Barrick has already implemented a comprehensive range of measures to protect them as well as other sensitive environmental areas around both the Veladero mine and the Pascua-Lama project."
It remains to be seen if environmentalists use the new law to attempt to disrupt the project. They almost assuredly will.
Barrick has began the construction of the mine after many legal battles and challenges. Now they are waiting on an agreement between between Chile and Argentina over a tax-sharing agreement, and permits.
Tuesday, August 10, 2010
Ivanhoe Australia Raising $211 Million for Osborne, Merlin Acquisitions
Ivanhoe Australia, whose biggest stakeholder is Ivanhoe Mines (NYSE:IVN), will via an institutional placement raise $211 million for acquisitions and expansion.
The particular acquisition they're looking at is the Osborne gold project, and the development side is the Merlin molybdenum project. Part of the capital will also be used to pay down some of the debt Ivanhoe Australia owes to Ivanhoe Mines.
After the completion of the deal, Ivanhoe Mine's stake in the company will decrease to 65 percent.
Chief executive Peter Reeve said, “The equity raising will facilitate Ivanhoe Australia’s development plan, including first production of molybdenum and rhenium ore from Little Wizard in 2011, and Merlin during 2012.”
Ivanhoe Australia is buying Osborne from Barrick Gold (NYSE:ABX) for close to A$18 million and the Merlin development in Queensland for A$55 million.
Current shareholders of Ivanhoe Australia will be able to acquire new shares in the company for A$2.88 via a one-for-four offer. That is a 10 percent discount from the closing price on August 9.
The particular acquisition they're looking at is the Osborne gold project, and the development side is the Merlin molybdenum project. Part of the capital will also be used to pay down some of the debt Ivanhoe Australia owes to Ivanhoe Mines.
After the completion of the deal, Ivanhoe Mine's stake in the company will decrease to 65 percent.
Chief executive Peter Reeve said, “The equity raising will facilitate Ivanhoe Australia’s development plan, including first production of molybdenum and rhenium ore from Little Wizard in 2011, and Merlin during 2012.”
Ivanhoe Australia is buying Osborne from Barrick Gold (NYSE:ABX) for close to A$18 million and the Merlin development in Queensland for A$55 million.
Current shareholders of Ivanhoe Australia will be able to acquire new shares in the company for A$2.88 via a one-for-four offer. That is a 10 percent discount from the closing price on August 9.
Wednesday, July 21, 2010
Freeport (NYSE:FCX) Earnings Increase 10 Percent in Second Quarter
Freeport McMoRan Copper & Gold Inc. (NYSE:FCX) enjoyed a 10 percent increase in earnings in the second quarter, as higher copper and gold prices helped them to a strong showing, even though production numbers were down.
The miner earned $1.49 a share after excluding one-time items, far above the $1.34 a share analysts had been looking for.
Copper prices surged 38 percent higher on average during the quarter, leading the earnings gains. Copper entails about 75 percent of all sales by Freeport.
Gold also helped the company, as prices were at $1,234 an ounce on average during the second quarter. That was up by 32 percent over last year, which averaged $932 an ounce during the same quarter.
Revenue grew to $3.86 billion a gain of 5 percent, from $3.68 billion last year. Analysts had been looking for $3.66 billion. Again, this was led by higher prices and not increased production.
To get an idea of how the stronger prices helped the company, production last year for copper during the same time period was 1.1 billion pounds, while the most recent quarter was 914 million pounds.
Gold production was at 298,000 for the most recent quarter.
Guidance for the year remained the same, with production of copper estimated at 3.8 billion pounds, and gold production expected to reach 1.8 million ounces. Molybdenum, which could perform strong if the demand for steel increases, which is expected, has an estimated 63 million pounds to be produced for the year.
Freeport was up to $66.74 in New York as of 1:26PM EDT, gaining $2.42, or 3.76 percent.
The miner earned $1.49 a share after excluding one-time items, far above the $1.34 a share analysts had been looking for.
Copper prices surged 38 percent higher on average during the quarter, leading the earnings gains. Copper entails about 75 percent of all sales by Freeport.
Gold also helped the company, as prices were at $1,234 an ounce on average during the second quarter. That was up by 32 percent over last year, which averaged $932 an ounce during the same quarter.
Revenue grew to $3.86 billion a gain of 5 percent, from $3.68 billion last year. Analysts had been looking for $3.66 billion. Again, this was led by higher prices and not increased production.
To get an idea of how the stronger prices helped the company, production last year for copper during the same time period was 1.1 billion pounds, while the most recent quarter was 914 million pounds.
Gold production was at 298,000 for the most recent quarter.
Guidance for the year remained the same, with production of copper estimated at 3.8 billion pounds, and gold production expected to reach 1.8 million ounces. Molybdenum, which could perform strong if the demand for steel increases, which is expected, has an estimated 63 million pounds to be produced for the year.
Freeport was up to $66.74 in New York as of 1:26PM EDT, gaining $2.42, or 3.76 percent.
Tuesday, July 20, 2010
Freeport (NYSE:FCX) Earnings Report Should Reveal Economic Conditions
Although many were looking for Alcoa (NYSE:AA) to give some guidance as to economic conditions, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) will probably be a more accurate measure, although combined with Alcoa's numbers, could give a snapshot of where the economy really is at, against the numerous assertions and conflicting reports out there.
Tomorrow morning Freeport gives its earnings report, and it'll be especially important to see the copper numbers, although the secondary molybdenum and gold numbers will be important as well.
But taking into account the importance of copper in the global economy, that is the primary measure to look for from the point of view of economic conditions and where they have been at.
Just like the economies of Europe and the United States, China will be found to have slowed down some after the stimulus money wound its way through the system. Copper in the first quarter was up based on that, and the sales in the second quarter should give a real reading, or at least, more accurate reading of economic conditions when they're not being propped up by governments.
As far as sales goes, Freeport is expected to have sold about 830 million pounds of copper, 15 million pounds of molybdenum, and 270,000 ounces of gold
Analysts are looking for earnings of about $1.32 a share on $3.56 billion in revenue.
Tomorrow morning Freeport gives its earnings report, and it'll be especially important to see the copper numbers, although the secondary molybdenum and gold numbers will be important as well.
But taking into account the importance of copper in the global economy, that is the primary measure to look for from the point of view of economic conditions and where they have been at.
Just like the economies of Europe and the United States, China will be found to have slowed down some after the stimulus money wound its way through the system. Copper in the first quarter was up based on that, and the sales in the second quarter should give a real reading, or at least, more accurate reading of economic conditions when they're not being propped up by governments.
As far as sales goes, Freeport is expected to have sold about 830 million pounds of copper, 15 million pounds of molybdenum, and 270,000 ounces of gold
Analysts are looking for earnings of about $1.32 a share on $3.56 billion in revenue.
Wednesday, June 16, 2010
Freeport-McMoRan (NYSE:FCX) Ready to Break Out?
Several factors are moving in the right direction for Freeport-McMoRan (NYSE:FCX), and if they line up like they in the way that it looks like they will, Freeport could break out nicely for some time into the future.
While the movement of copper prices is the obvious chief indicator for Freeport, being the largest public copper producer in the world, other factors could also enter the picture, which when added together form a potentially lucrative investment.
Over the last 60 days or so, shares of Freeport have plunged almost 24 percent in value, as China and European demand are under question, especially China, which accounts for the largest copper demand of any single country.
One question is how far the price of copper can go down, as it closed on Tuesday at $3.
With the price of gold assured to continue climbing, and the potential for the price of molybdenum to increase as well, Freeport could be poised for a rebound sometime soon, and over the long term will be a winner for those wanting to invest in companies providing raw materials to the market.
While the movement of copper prices is the obvious chief indicator for Freeport, being the largest public copper producer in the world, other factors could also enter the picture, which when added together form a potentially lucrative investment.
Over the last 60 days or so, shares of Freeport have plunged almost 24 percent in value, as China and European demand are under question, especially China, which accounts for the largest copper demand of any single country.
One question is how far the price of copper can go down, as it closed on Tuesday at $3.
With the price of gold assured to continue climbing, and the potential for the price of molybdenum to increase as well, Freeport could be poised for a rebound sometime soon, and over the long term will be a winner for those wanting to invest in companies providing raw materials to the market.
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