Wed, Nov. 30, 12:21 PM
- Freeport McMoRan (FCX +2.2%) is higher even as Berenberg downgrades shares to Sell from Hold with a $10.90 price target.
- Berenberg thinks near-term risks are skewed to the downside, relating to Grasberg’s production and its expectations for a correction in copper prices.
- The firm also expects investors to start looking past a 2017 earnings peak to a more sustainable level in later years and to value the company on that basis.
Wed, Nov. 23, 2:57 PM
- Freeport McMoRan (FCX +6.6%) surges to 16-month highs after saying it raised $1.5B in an equity offering to complete its plan to reduce debt with proceeds from asset sales and new equity.
- FCX, which has sold mining and energy assets in deals worth $6.6B YTD, says it can now meet its debt reduction target of $5B-$10B; it had $19B in debt as of Sept. 30.
- FCX says it sold 116.5M shares since July 28 under the offering and now has ~1.44B common shares outstanding.
Tue, Nov. 22, 3:37 PM
- With $4.5B of short interest, Exxon Mobil (NYSE:XOM) leads the way, followed by IBM at $3.7B. Rounding out the top ten: AT&T (NYSE:T), Caterpillar (NYSE:CAT), Chevron (NYSE:CVX), Boeing (NYSE:BA), GE, Procter & Gamble (NYSE:PG), Abbot Labs (NYSE:ABT) and Disney (NYSE:DIS).
- Most interesting from that list are Cat, Boeing, and Abbot Labs as their market caps are significantly smaller than the other seven.
- Of the top 50 short positions, there are two names in which the short interest rises to as high as 10% of the market cap: Freeport-McMoRan (NYSE:FCX) and Digital Realty Trust (NYSE:DLR).
- Previously: Goldman's list of stock longs mattering most to hedge funds (Nov. 22)
Mon, Nov. 21, 3:58 PM
- A landslide killed at least 13 people last week in the Democratic Republic of Congo after thousands of artisanal miners began invading Freeport McMoRan's (FCX +5.6%) Temke copper mine, according to the Lualaba provincial governor.
- Between 5K-10K illegal miners have descended on the Tenke copper mine, one of the world's largest, in the past week for reasons that are not entirely clear.
- Tens of thousands of people in the area depend on small-scale mining to support their families and often operate within the perimeters of industrial mines, using rudimentary tools, sometimes resulting in deadly accidents.
Mon, Nov. 21, 10:36 AM
- Freeport McMoRan's (FCX +4.1%) stock price target is raised to $20 from $15 at Cowen, which says the stock has regained its status as the go-to copper investment vehicle after impressive actions taken by management to right-size the balance sheet.
- FCX shares could re-rate higher as the implied copper price in shares is well below current spot prices, Cowen says in maintaining its Outperform rating.
- The firm says FCX maintains significant leverage to improving copper prices, in spite of recent copper asset divestitures, and notes that every $0.10/lb. move in copper prices results in a ~$410M change in 2017 EBITDA.
Thu, Nov. 17, 9:17 AM
- Freeport McMoRan (NYSE:FCX) has secured a 5% drop in charges it will pay China's biggest copper smelter, Jiangxi Copper, to process its concentrate for 2017, Reuters reports, in a deal that sets the benchmark for the region.
- FCX reportedly will pay $92.50/metric ton and $.0925/pound for treatment and refining charges, in the second annual cut in a row and down from $.0975/metric ton for term contracts this year, as a surge in supply mostly from Peru begins to fade out; spot charges are at ~$105.
- ETFs: JJC, CPER, CUPM
Wed, Nov. 16, 10:56 AM
- Global copper markets will be oversupplied for at least two years, according to executives at some of the world's top copper producers, casting doubt on the chances of a prolonged rally in prices.
- The cautious outlook comes after benchmark copper prices last week recorded their biggest weekly gain since 2011, largely fueled by Pres.-elect Trump's promises of infrastructure spending.
- "In 2017, it will still be a relatively oversupplied market. In 2018 it will not be better than 2017," says a VP at Jiangxi Copper, China's largest copper producer; he also describes the market's recent moves as "irrational."
- The founder and president of Maike Metals Group, one of China's top metals traders, says China's government needs to control "overspeculation" in the local futures market, hit by volatile trading over the last week as it was whipsawed by speculative cash.
- Relevant tickers include FCX, BHP, RIO, VALE, OTCPK:GLCNF, OTCPK:GLNCY, OTC:ANFGF, OTCPK:AAUKF, OTCPK:AAUKY, JJC, CPER, CUPM.
Wed, Nov. 16, 8:57 AM
- Congo state miner Gecamines says it strongly opposes Lundin Mining's (OTCPK:LUNMF) decision to sell a 24% stake in the Tenke copper mine, arguing it has a preemptive right to buy the stake.
- The decision came after Freeport McMoRan (NYSE:FCX), Tenke's majority owner, agreed in May to sell its 56% stake to China Molybdenum, a deal Gecamines also opposed because it wanted to buy the stake itself.
- Lundin CEO Paul Conibear says he hopes the sale will not be challenged by Gecamines.
Tue, Nov. 15, 7:59 AM
- Lundin Mining (OTCPK:LUNMF) agrees to sell its indirect stake in TF Holdings to an affiliate of China's BHR Partners for ~$1.14B, and will waive its rights to acquire Freeport McMoRan's (NYSE:FCX) 70% stake in TF Holdings.
- TF Holdings owns an 80% interest in Tenke Fungurume Mining; Lundin owns an indirect 30% stake in TF, resulting in an effective 24% interest in Tenke.
- Through its stake in TF, FCX holds a 56% stake in the Tenke Fungurume copper and cobalt mine, which it agreed in May to sell to China Molybdenum for $2.65B.
- Tenke, in the southern Congolese copper belt, is one of the world's largest copper deposits.
Mon, Nov. 14, 12:45 PM
- Freeport McMoRan (FCX -1.2%) CEO Richard Adkerson tells the Financial Times that he expects to stay with the company and complete a plan to cut its big debt load, and says FCX is now better positioned for an eventual recovery in copper prices after a series of asset sales.
- FCX's target is for net debt below $10B by the end of next year, and Adkerson says that “while we have a lot of work... we feel we proved our mettle this year."
- Even so, analysts say FCX's completion of at least one of two recent asset sales involving Anadarko Petroleum and China Molybdenum before year-end 2016 is crucial to avoiding problems with credit lines.
- “Freeport must close $3B of asset sales by December 31 in order to avoid tripping a... covenant," Morgan Stanley says. “While we think there is a strong possibility Tenke slips into 2017, we expect Gulf of Mexico to close despite bondholder litigation.”
Fri, Nov. 11, 8:58 AM
- Copper was trading up 3% in late Asian trade, rising for a seventh straight session and up more than 15% for the week in what would be its biggest weekly gain since 1980, according to Reuters.
- Copper already had been moving higher by a surge in China steel and coal prices, but Trump's surprise election victory and comments in his acceptance speech on increased infrastructure spending fueled further buying.
- Traders say the pace of gains has been amplified by momentum-based fund buying, much of it from China, after prices this week smashed through a key chart resistance.
- Analysts also are revising down expectations of mine supply for 2017, after January's price slump to six-year lows forced some high-cost mines to shut, and with new supply from Peru largely complete.
- Relevant tickers include FCX, BHP, RIO, VALE, OTCPK:GLCNF, OTCPK:GLNCY, OTC:ANFGF, JJC, CPER, CUPM.
Thu, Nov. 10, 10:45 AM
- Freeport McMoRan (FCX +6.1%) extends this week's breakout momentum to challenge 18-month highs along the $14 level as copper prices continue to soar.
- High-grade copper futures for December have soared 4% so far today, the most in more than a year, extending gains as investors prepare for a possible boom in infrastructure projects under a Trump presidency.
- Along with improvement in economic data from China, a major buyer of industrial metals, “Trump’s pledge to spend, combined with a surge in speculative demand on exchanges from New York to London and Shanghai, have all helped drive copper up to a 16-months high,” says Ole Hansen, head of commodity strategy at Saxo Bank.
- Along for the ride are copper producers Antofagasta (OTC:ANFGF +11.3%), Glencore (OTCPK:GLCNF +5.7%) and BHP Billiton (BHP +8.2%), as well as companies that may benefit from bulked-up spending on U.S. infrastructure projects, such as Dublin-based CRH (CRH +1%), which has surged 11% in two days as the U.S. market makes up 51% of its revenue.
- ETFs: JJC, CPER, CUPM
Thu, Nov. 10, 9:17 AM
- Gainers: TUBE +82%. SODA +18%. AHT +11%. AEG +10%. ZLTQ +10%. NAT +9%. TASR +9%. MTL +9%. SHAK +8%. KSS +8%. EBIO +8%. UBS +8%. PUK +7%. FCEL +8%. ARIA +6%. FCX +6%. RBS +6%. ENDP +6%. BCS +6%. CS +5%.
- Losers: SUNW -31%. ANTH -19%. BVX -14%. NVAX -11%. WUBA -11%. BBD -8%. SEDG -7%. RRR -6%. AZN -6%. VIV -6%. SBS -5%. NGG -5%.
Wed, Nov. 9, 11:19 AM
- Copper surges to a 15-month high, now +2.9% at $2.45/lb. after rising as much as 3.4% to its highest since July 2015, also boosting other metals as some investors speculate that a Trump presidency could launch significant fiscal stimulus and boost demand for metals.
- In his victory speech last night, Trump said he would prioritize the rebuilding of American infrastructure with hopes of doubling U.S. economic growth.
- Among related tickers: FCX +7.7%, RIO +5.9%, BHP +3.4%, VALE +4.2%, MT +10.6%, X +17.1%, STLD +8.2%, AKS +11%, NUE +11.6%, CLF +12%, RS +8.5%, WOR +3.8%.
- ETFs: JJC, CPER, CUPM
Tue, Nov. 8, 4:57 PM
- Freeport McMoRan (NYSE:FCX) was a big winner in today's trade, soaring 7.1% as copper gained 3.1% to $2.38/lb. in Comex trading to a new 52-week high.
- Copper prices rose for the 12th day in a row, extending the longest rally in at least 28 years, part of a broader rally in metals as China's economic picture has brightened.
- However, some analysts remain cautious on copper's ability to continue its gains, noting that China's economic recovery has been helped by economic stimulus, which may see benefits fade in the longer term.
- ETFs: JJC, CPER, CUPM
Thu, Oct. 27, 6:31 PM
- Democratic Republic of Congo's mines minister says the government supports China Molybdenum's bid to buy Freeport McMoRan's (NYSE:FCX) majority stake in the Tenke copper project despite objections from state miner Gecamines.
- But the minister also cautions that the $2.65B deal for FCX's 56% stake, agreed to in May, must respect the rights of Gecamines, which holds a 20% stake in Tenke, one of the world's largest copper mines.
- Lundin Mining (OTCPK:LUNMF), which owns the remaining 24%, has until Nov. 15 to exercise its right of first offer, after which FCXsays the sale to China Moly will go through; Gecamines says it has a right to pre-empt the sale to China Moly, a claim FCX rejects.