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Trading at 3.3X EBITDA, Freeport McMoRan (FCX) is cheaper than any other base metals producer...

  • Tuesday, April 17, 2012, 8:20 AM ET
    Trading at 3.3X EBITDA, Freeport McMoRan (FCX) is cheaper than any other base metals producer with greater than $10B market cap, reports Bloomberg, suggesting the company as an acquisition target. Another metric: The company sells for $652/metric ton of copper equivalent reserves, about half the average for similarly-sized firms focused on copper mining.
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This news story has 3 comments:

  • Many of us think Freeport needs to be an acquirer, not the opposite.

    We think it should take a stab at low-float CDE, the US's biggest Silver miner, while Silver is in the semi-doldrums.

    In one fell swoop, Freeport would become largets US Copper miner AND the largest US Silver miner, a possibly very enviable position in the years ahead.
    17 Apr 2012, 08:23 AM Reply Like
  • that would give them some regional diversity also...which is the reason they are cheap right now.
    17 Apr 2012, 09:01 AM Reply Like
  • FCX market cap around $35B?...even if they are 'cheap' who would potentially look at a takeover of that size?

    Long FCX
    17 Apr 2012, 03:56 PM Reply Like
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