|Bid||11.50 x 900|
|Ask||11.62 x 38500|
|Day's range||11.48 - 11.98|
|52-week range||4.82 - 13.64|
|Beta (5Y monthly)||2.24|
|PE ratio (TTM)||N/A|
|Earnings date||22 Jul 2020 - 27 Jul 2020|
|Forward dividend & yield||0.20 (3.48%)|
|Ex-dividend date||14 Jan 2020|
|1y target est||12.96|
Downbeat news from the Federal Reserve and Johns Hopkins University shook confidence in stocks Thursday. Industrial metals companies are looking especially hard-hit, with shares of copper producer Freeport-McMoRan (NYSE: FCX) off 11.6% in 1 p.m. EDT trading, aluminum giant Alcoa (NYSE: AA) down 14.7%, and U.S. Steel (NYSE: X) suffering worst of all -- down 16%. The stock market is melting down today.
(Bloomberg Opinion) -- Copper has been on a steady upward trend, charging into a bull market and toward $6,000 per metric ton. That’s going to be tough to sustain. China’s stimulus efforts are being felt most strongly in infrastructure and construction. They have been less marked in other metal-intensive corners of the market: consumer goods and exports, which are still waiting for Europe and the U.S. to rally. Meanwhile, disruptions to supply from Latin America’s unfolding coronavirus disaster haven’t been enough yet to offset annualized demand loss. What happens next will be determined by whether Chile, Peru and producers like Indonesia, home to the world’s second-largest copper mine, can do better at controlling the epidemic than resource-rich Brazil.An economic bellwether, copper crumpled earlier this year as the scale of the pandemic became clear, falling by late March to its lowest levels since late 2016. The metal has clawed most of that back and with no large market surpluses in sight, Goldman Sachs Group Inc. is among brokers that have raised price forecasts. The comeback has been largely driven by China, which consumes half the world’s copper and has been steadily eating through stockpiles as industrial production restarts and building resumes. There’s plenty of encouraging evidence: Inventories, after soaring when the pandemic began, have tumbled back. Cancelled warrants, which represent metal earmarked for delivery and so suggest appetite for the physical commodity, have shot up since late May. Hiccups in mine activity are lending support. Shipments from Peru, which has seen perhaps the longest lockdown among top producers, are down by almost a fifth so far this year, according to UBS Group AG. Add in Covid- and price-related closures, project slowdowns and cuts to spending budgets, and the combination is telegraphing tight supply. Enthusiasm is visible among previously bearish money managers, who are turning bullish and adding to long positions.Is all of that enough to keep copper running high? Not necessarily. While consultancy Wood Mackenzie Ltd. estimates 2020 refined production will be down more than 1%, it expects refined consumption to contract by over 3%. The shape of China’s stimulus and recovery offers one reason for caution, as the effects of pent-up demand begin to fade. Take grid spending, usually a major driver of copper demand: After a contraction at the start of the year, investment has increased and the budget is expected to expand from a year earlier. Yet the emphasis is on ultra-high voltage electricity lines to cover long distances, which tend to use lighter aluminum. Production of consumer appliances like air conditioners is also still under pressure. Though better property and auto sales figures are encouraging, there was no significant real estate stimulus out of the recent National People’s Congress meeting. And measures to support the electric vehicle sector and its charging infrastructure may not be enough.More worrying is the weakness in the China’s exports, as seen in the May manufacturing purchasing managers’ index. About 30% of China’s apparent consumption of refined copper is actually exported, according to Cru Group, so extended lockdowns in India and elsewhere matter.It would be foolish to underestimate China’s ability to throw money at the problem. Still, the bigger unknown for the coming weeks is how the coronavirus spreads in copper’s biggest producers. Peru has already seen exports drop but so far Chile, which accounts for about a third of global production, has continued to operate largely unscathed. That was easier when there were fewer cases in the wider population, but now the country is in the grip of a significant outbreak.Brazil, now with the second-highest case number in the world after the U.S., offers a cautionary tale. With case rates rising at and near mines, iron ore producer Vale SA has already been forced to suspend work at one complex, Itabira, and concerns are growing about the country’s north. Near its Carajas operations there, the local town of Parauapebas has 5,734 cases for a population of roughly 200,000.Indonesia is another worry, says Nick Pickens, copper research director at Wood Mackenzie, given the importance of the Freeport-McMoRan Inc.-operated Grasberg mine to additional supply into 2021. Reuters reported last month that the mine was now working with a skeletal team after a rise in coronavirus infections in the area, including in workers’ living quarters. That would add uncertainty further out, not least given the degree to which miners have cut capital expenditure, discretionary spending and care and maintenance, as Cru principal analyst Craig Lang points out. That leaves them less prepared if something goes wrong, and increases the risk of disruption. For now, though, it may take more to feed the bull run.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Freeport-McMoRan Inc. (NYSE: FCX) today announced the publication of its 2019 Annual Report on Sustainability, "Building on Strength." This report details the company’s long-standing commitment to manage responsibly our environmental, social and governance (ESG) performance. FCX is committed to prioritizing the health, safety and well-being of its workforce and host communities, meeting the highest standards of environmental stewardship across its operations, and respecting human rights in all of its business practices. FCX recognizes that the long-term success of the company and sustainable value creation is dependent upon the effective management, integration and governance of key sustainability matters.
Freeport-McMoRan (FCX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The optimism has spilled over from the biotech sector, too, to infect (in a good way) stocks as far away as the basic materials sectors of chemicals (Dow Chemical (NYSE: DOW) up 9.4% in 1:45 p.m. EDT trading), copper (Freeport-McMoRan (NYSE: FCX) up 8.4%), and aluminum, too, with Alcoa (NYSE: AA) shares up an astounding 16.3%! After all, it was only four days ago that Alcoa CEO Roy Harvey told Bloomberg that Alcoa lacks "the clarity [or] the orders on the books, to signal that there is a definitive recovery coming."
Freeport-McMoRan Inc. (NYSE: FCX) today announced that it has posted its press release outlining its revised operating plans in response to the COVID-19 pandemic and its first-quarter 2020 financial and operating results on the Investor Relations page of its website at https://investors.fcx.com/investors/news-releases.
Freeport-McMoRan Inc. (NYSE: FCX) today announced that it will release revised operating plans in response to the COVID-19 pandemic and first-quarter 2020 financial and operating results before the market opens on Friday, April 24, 2020, and will host a conference call with securities analysts on the same day at 10:00 a.m. Eastern Time to discuss the revised plans and results.
(Bloomberg Opinion) -- After years of buying at the peak of the economic cycle and selling in the trough, could the world’s big diggers do the reverse? Compared to peers in oil and gas, Rio Tinto Group and the largest diversified miners are riding out the coronavirus storm in sheltered positions: They have low operating costs, little debt and more than $60 billion in liquidity.History matters here. Just over a decade ago, miners binged on hubristic investments like Rio’s acquisition of aluminum producer Alcan or Anglo American Plc’s Minas Rio iron-ore venture. In the hangover years between 2012 and 2016, some $200 billion was written off, and a generation of chief executives were shown the door. It was a near-death experience akin to what the energy sector is going through today, and one that left behind an industry focused on cleaning up, cutting back and returning cash to shareholders. Rio has been among the most generous, handing back $36 billion since 2016.It means the industry’s largest players went into this crisis with two things: balance sheets at their most robust in years, and a pedestrian growth outlook. Almost the opposite is true at long-coveted targets like Freeport-McMoRan Inc., with a market value of $11 billion, and First Quantum Minerals Ltd., valued at $3.5 billion. These mid-size base metal producers are beginning to look fragile, with expanding copper mines but nearly $19 billion of total debt between them. Their shares have fallen more than 40% this year. No one knows how long a recovery from the pandemic will take, or what life will look like on the other side, but miners have a little more certainty than most: Metals like copper, used for electrification and a host of consumer goods, will be needed, and will be in short supply. It’s a tantalizing state of affairs. As ever, things aren’t quite that simple, and even the heftiest miners aren’t immune to the world’s turmoil. BHP Group has to contend with the crashing oil price. Anglo American is dealing with lockdowns in South Africa, Peru and elsewhere, as governments try to contain the spread of coronavirus. Glencore Plc, long the most buccaneering of the large players, is tackling succession, trouble in Zambia and a pending U.S. Department of Justice investigation into its business practices.At Rio, Chief Executive Officer Jean-Sebastien Jacques has perhaps the strongest motivation to act. He is less exposed to many of these uncertainties, and is running a miner that still relies on iron ore for about three-quarters of its Ebitda, as steel consumption hovers at or near a peak in China. Large mainland miners, like acquisitive Zijin Mining Group or Jiangxi Copper Co., may be his competitors. There are cashed-up bullion players, too: Barrick Gold Corp.’s CEO, Mark Bristow, has said he could consider copper and even Freeport’s Indonesian Grasberg mine.The trouble is, we’re not yet at the distress levels that will prompt boards to approve a rush for checkbooks. Travel and due diligence are impossible, markets are too volatile for share deals and the next few months remain an unknown quantity. Shareholders may balk. In past crises, even distressed sellers were able to command premiums, so bargains will be tough. Copper prices are still above the depths of 2016.Worse, not even the most obvious prey would be easy to snap up: Freeport and First Quantum come with traps. Freeport, the world’s largest listed copper producer, faces the question of who will lead it when veteran Richard Adkerson retires, along with concerns over older U.S. mines and the costly move underground at Grasberg. Rio, unhappy with the environmental and political risks, sold its interest in the Indonesian mine in 2018. First Quantum, more bite-sized and so perhaps more appealing, battened down the hatches earlier this year with a poison pill, after Jiangxi Copper built an 18% stake. Its flagship Cobre Panama mine has yet to operate through a full wet season. Chinese players eyeing miners with Australian assets, meanwhile, would also have to deal with a regulator bent on discouraging opportunistic foreign bargain-hunters.Yet the longer the pandemic lockdowns drag on, the more the pain increases, as fixed costs go out and no cash comes in. It’s visible already in lithium, with Tianqi Lithium Corp. seeking to sell part of its stake in the Greenbushes operation in Australia, as it struggles to repay debt taken on to buy a stake in Chilean giant SQM. It’s rare to see large Chinese producers in distressed sales, even if lithium prices have plummeted since 2018. Rare-earth producer Lynas Corp., meanwhile, says it may need public funds to complete an ore-processing plant. Buyers won’t pounce yet. A global economic recovery isn’t in sight and will be slow; most will need a little more confidence that growth is coming back. That will mean a wider improvement than China’s stimulus and return to work, as encouraging as State Grid Corp.’s 2020 investment plans may be. They’ll also need travel restrictions to lift. Wait too long, though, and the opportunity to buy cheap will pass — again. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Freeport-McMoRan Inc. (NYSE: FCX) announced today that the Peruvian Government has extended the declaration of a National Emergency until April 26, 2020, associated with the Peruvian government’s efforts to contain the outbreak of COVID-19.
Freeport-McMoRan Inc. (NYSE: FCX) announced today that in response to the COVID-19 pandemic and resulting global economic uncertainties, its Board of Directors will suspend the quarterly cash dividend of $0.05 per share previously planned for May 1, 2020. The declaration and payment of future dividends is at the discretion of the Board and will depend on FCX’s financial results, cash requirements, global economic conditions and other factors deemed relevant by the Board.
Freeport-McMoRan Inc. (NYSE: FCX) announced today that the Peruvian Government has issued a Supreme Decree and declaration of a National Emergency in its efforts to contain the outbreak of COVID-19. To comply with the Government’s requirements, Cerro Verde has temporarily transitioned to a care and maintenance status for a 15-day period which commenced on March 16, 2020. During this period, onsite personnel will be limited to critical activities necessary to maintain the facilities pending a return to normal operations.
Could Freeport-McMoRan Inc. (NYSE:FCX) be an attractive dividend share to own for the long haul? Investors are often...
Freeport-McMoRan Inc. (NYSE: FCX) announced today continued progress in growing copper and gold volumes by 30 - 40 percent, reducing net unit cash costs of copper by 25 percent to approximately $1.30 per pound and more than doubling cash flows by 2021 compared with 2019.
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has completed the sale of $700 million aggregate principal amount of its 4.125% Senior Notes due 2028 and $600 million aggregate principal amount of its 4.250% Senior Notes due 2030.
(Bloomberg Opinion) -- A combination of hefty dividends and contracting output is turning the world’s second-largest miner into the poster child for a $1.5 trillion industry’s growth quandary.Rio Tinto Group announced a record $3.7 billion final dividend Wednesday, adding to $11.9 billion of cash returns already paid in 2019. Yet it produced less iron ore, copper and aluminum, leaving market prices to lift underlying earnings by 18%. Rio’s Pilbara operations stumbled early in the year. Its Mongolian copper mine, a key source of future production and the basis of a greener portfolio, is now not only sorely overdue and over-budget, but also tangled in international tax arbitration. The $86 billion mining giant isn’t alone. High dividend yields and pedestrian output have begun to define resources heavyweights that used to be known for the exact opposite. Diversified groups relied on their varied sources of cash to expand, but large-scale opportunities are scarcer than ever, and portfolios look far less diverse too, once coal and other less appealing assets have been carved off. At Rio, iron ore now accounts for three-quarters of its underlying Ebitda.For investors, it hasn’t been all bad news. Since Chief Executive Officer Jean-Sebastien Jacques took the helm in 2016, Rio’s total return including reinvested dividends adds up to an impressive 112%, outpacing most rivals.Yet much of that is due to generous payouts. For a company that digs stuff up for a living, this may not be sustainable — especially for one that aims to build a portfolio better aligned with a carbon-light global economy. It may also be an indication of just how hard it is to change. Rio paid shareholders in 2019 more than double its capital expenditure budget for the same year.One priority has been copper. Under Jacques, head of that unit until he became CEO, Rio has said it wants to add more of the red metal as its existing mines age, and will look at other green ingredients, those for rechargeable batteries and the like. Yet a unit set up to consider just such deals hasn’t sealed a single one despite considering more than 200 opportunities, and the company has suffered blow after blow in Mongolia. Its Oyu Tolgoi mine in the South Gobi accounts for only a fraction of Rio’s value today, but could dictate the company’s fortunes. So far, it’s mostly an unhelpful headache. The mine, which Rio holds through Canada-listed Turquoise Hill Resources Ltd., is one of the largest copper deposits around, and could produce an annual 550,000 metric tons of copper, almost as much as Rio produced last year, plus 450,000 ounces of gold. In the parlance of big miners, it moves the needle.Unfortunately, it also encapsulates everything that makes such projects so challenging: tough geography, messy local politics and complex geology. The cost of the largest, underground, portion has swelled to as much as $7.2 billion, and could rise again when a final estimate is published later in 2020. First production may now be be 30 months later than predicted. Fears of a cash call have dragged down Turquoise Hill shares.In the latest development, Rio announced last week it would begin arbitration proceedings to solve a tax dispute. Few arbitration deals yield significant victories — ask Barrick Gold Corp. and Antofagasta Plc, which won a $5.8 billion ruling against Pakistan last year — and they tend to irk host governments, so it’s a worrying sign. The risk is that Oyu Tolgoi becomes Rio Tinto’s own version of Freeport-McMoRan Inc.’s Indonesian pride and joy, Grasberg – wonderful in theory, nearly impossible in practice.Rio won’t drop Mongolia, and not just because of Jacques’ own attachment to the project. A copper option, however long-dated, is valuable, even if the company doesn’t yet jump in to buy out Turquoise Hill minority shareholders.But what then? Rio has manageable debt and ample cash — $9.2 billion in free cash flow in 2019, the highest level in almost a decade — and deals look cheaper as shares in copper-heavy Freeport and First Quantum Minerals Ltd. have roughly halved since 2018. Perhaps, though, not cheap enough to warrant wrestling with Freeport’s U.S. liabilities or First Quantum’s Zambian operations.Rio isn’t shrinking quite yet. It has exploration projects, and iron-ore production already did better in the second half, albeit still short of the company’s ultimate target. Yet with Oyu Tolgoi mired in arbitration and geological complexities, and the economy swiftly shifting, it might be time for Rio to consider just how creative it can get.To contact the author of this story: Clara Ferreira Marques at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Freeport-McMoRan Inc. (NYSE:FCX) shareholders (or potential shareholders) will be happy to see that the Director, John...
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.
Earnings season is in full swing and several heavyweights are gearing up to report results Thursday including consumer staples giant Procter & Gamble and chipmaker Intel.