Tue, Feb. 16, 10:38 AM
- Pipeline operators Kinder Morgan (KMI +4.2%), Energy Transfer Partners (ETP +9.7%) and Williams Partners (WPZ +3.4%) are among energy and commodity stocks enjoying strong early gains after quarterly 13F filings showed new positions taken by David Tepper’s Appoloosa Management.
- Tepper bought 5.1M shares of ETP worth $173.5M as of Dec. 31, and 9.4M shares of KMI with a market value of $140.9M, as well as 5.9M shares of the Alerian MLP ETF (AMLP +4.6%).
- He also bought 4.3M shares of Southwestern Energy (SWN -8%), 3.5M shares of Freeport McMoRan (FCX +8.3%), and 2.3M shares of WPZ.
Tue, Feb. 16, 9:13 AM| Tue, Feb. 16, 9:13 AM | 1 Comment
Mon, Feb. 15, 4:29 AM
- Freeport-McMoRan (NYSE:FCX) has agreed to sell an additional 13% stake in its Morenci mine to Sumitomo Metal Mining (OTCPK:SMMYY) Japan's second-biggest copper producer, for $1B in cash.
- The deal will take Sumitomo's share in the Arizona based open-pit copper mining complex to 28% from 15%.
- Freeport expects to record a gain of about $550M on the transaction and expects it to close in mid-2016.
Fri, Feb. 12, 5:46 PM
- Standard & Poor's downgrades Freeport McMoRan's (NYSE:FCX) credit rating by two notches to junk at BB from BBB- with a negative outlook, citing lower metals prices and the company's debt levels.
- S&P says FCX closed FY 2015 fiscal year with credit measures that were weaker than anticipated, including estimated adjusted debt to EBITDA of ~5.5x, and released an updated operating plan that will not bring credit measures in line with its former rating until H2 2017.
- S&P also lowered its copper price assumptions for 2016 by 12.5% to $2.10/lb., and has cut its gold and oil and gas price assumptions for the year.
Wed, Feb. 10, 7:53 AM
- Freeport McMoRan (NYSE:FCX) is granted a new six-month export permit by Indonesia's government, ending a nearly two-week stoppage due to a dispute over payment for a new metal smelter.
- FCX halted shipments from its Grasberg mine last month after the government demanded the company first pay a $530M deposit for a smelter before it renewed the permit.
- Copper futures fell sharply yesterday after Indonesia's mining industry recommended the resumption of shipments, and are continuing lower, partly on oversupply concerns exacerbated by the decision on Grasberg exports.
- FCX +2.6% premarket.
Tue, Feb. 9, 10:57 AM
- Freeport McMoRan (FCX -2.1%) can help itself in H1 2016 through asset sales, Jefferies analysts say in raising its stock target price to $6.50 from $5.
- The firm expects M&A activity in the mining sector to increase this year, as leveraged miners consider selling high quality assets and miners with financial flexibility are ready to buy; in the case of FCX, a copper asset sale would improve the company's liquidity and unlock value, thus pushing the share price higher.
- Jefferies maintains its Hold rating on FCX, but says near-term downside risk has diminished.
Tue, Feb. 9, 8:59 AM
- Indonesia’s Energy and Mineral Resources Ministry issues a recommendation for Freeport-McMoRan (NYSE:FCX) to renew its export permit that will pave the way for the company to resume shipments from the Grasberg copper and gold mine.
- Local unit Freeport Indonesia expects to get the export permit soon, a spokesperson tells Bloomberg.
- The recommendation aids FCX as it struggles with a collapse in metals prices and after the company’s shares have plunged 72% in the past year.
Mon, Feb. 8, 9:19 AM
Fri, Feb. 5, 12:58 PM
- Mining stocks hit hard in 2015 are the darlings of the new year, as the drag on the dollar due to fresh jitters about the strength of the U.S. economy has helped power the group higher.
- The dollar’s weakness has helped fuel the recent bounce in commodities: Iron ore, which sank 40% in 2015, has gained 14% since mid-January, while copper prices, which hit their lowest levels since early 2009 in mid-January, are up 10%.
- A glimmer of hope about China and global growth could signal a bottom for commodities and mining stocks, Bernstein's Paul Gait says, but other analysts caution that the rally could be a “bull trap" - a brief bounce before another dive into the red.
- Relevant tickers: FCX, OTCPK:AAUKF, OTCPK:AAUKY, OTCPK:GLCNF, OTCPK:GLNCY, BHP, RIO, VALE
Wed, Feb. 3, 5:33 PM
- Mining companies that have been hit hard by weakening Chinese demand surged the most in five months today, as a rally in metal prices signaled production cuts are starting to pay off, Bloomberg reports.
- Newmont Mining (NEM +11.3%), Freeport McMoRan (FCX +11.2%) and First Quantum Minerals (OTCPK:FQVLF +16.6%) all gained at least 11% today in leading the Bloomberg Americas Mining Index to a 7% surge and its biggest increase since August.
- Gold futures broke above their 200-day MA for the first time since October, and zinc, copper, aluminum, nickel, lead and tin all gained, helped by the outlook for tighter supplies and a plunge in the dollar.
- In today's trade: ABX +8.8%, GG +10.2%, AEM +5.5%, SLW +8.7%, KGC +10.3%, NG +6.6%, AU +9.6%, FNV +7%, GFI +8.5%, HMY +5.1%, SBGL +6.1%, IAG +9.6%, GOLD +3.6%, EGO +8.3%.
- ETFs: GLD, GDX, NUGT, IAU, GGN, DUST, PHYS, SGOL, UGL, GLDX, DGP, GTU, GLL, JJC, UGLD, DZZ, DBB, SGDM, ASA, OUNZ, DGL, DGZ, RING, DGLD, JJN, PSAU, JJU, TGLDX, CPER, UBG, JJT, BOM, RJZ, BOS, FOIL
Tue, Feb. 2, 9:51 AM
- Freeport McMoRan (NYSE:FCX) has asked Indonesia to reduce or delay the $530M smelter bond the company must set aside before receiving an extension of its export permit, Indonesia's mining minister says.
- The local Freeport Indonesia unit is seeking permission to export 1M metric tons over the next six months after its license expired last Thursday; it says mining and milling operations are continuing normally and believes the government will renew the permit.
- FCX -3.8%.
Mon, Feb. 1, 9:48 AM
- Production at Freeport McMoRan's (NYSE:FCX) Grasberg copper and gold mine in Indonesia is running at normal levels, a union official tells Reuters, as the company continues talks with the government to resolve an export spat.
- FCX usually produces ~220K metric tons/year of copper ore from the mine, and its six-month license to export concentrate expired last Thursday after the government demanded the company first pay a $530M deposit for the construction of a new metal smelter.
- FCX -2.4%.
Thu, Jan. 28, 2:37 PM
- Freeport McMoRan (FCX -5.1%) fails to reach a deal with Indonesia's government on extending its six-month export permit, which is set to expire today, potentially halting shipments from the country's Grasberg copper and gold mine.
- FCX says it remains in discussions and believes the government ultimately will issue the license, but a mines ministry official says no new meeting has been scheduled.
- Indonesia has asked for a $530M deposit toward building a new smelter in exchange for prolonging the permit, a request CEO Richard Adkerson said this week was inconsistent with the company’s prior understanding with the government.
- RBC Capital reiterates its Market Perform rating on the shares but cuts its price target to $6.50 from $8.
Wed, Jan. 27, 6:10 PM
- Freeport McMoRan (NYSE:FCX) -3.8% AH after Moody's downgrades the company's senior credit ratings to B1 from Baa3, deeper into junk territory, with a negative outlook.
- Moodys' says the downgrade reflects the deterioration in FCX's debt protection metrics and increase in leverage as a result of copper's precipitous price drop and the collapse in oil prices; the ratings agency believes the current environment is "not a normal cyclical downturn but a fundamental shift in the operating environment for these commodities."
- Earlier, Citi cut its FY 2016 EPS estimate for FCX to $0.04 and said the stock is fairly valued at $4.50.
- FCX shares surged nearly 11% in today's regular trade, extending the previous day's gains sparked by a better than expected earnings report and the prospects for a successful resolution to the company’s Indonesian export permit issue.
Wed, Jan. 27, 12:49 PM
Tue, Jan. 26, 9:49 AM
- Freeport McMoRan (FCX +5.3%) pops higher at the open after reporting a milder than expected Q4 loss and announcing additional initiatives to accelerate its debt reduction plans.
- FCX says it is advancing several initiatives, including an evaluation of alternatives for the oil and gas business as well as several transactions involving certain of its mining assets; the company's debt stood at $20.43B at year-end 2015, nearly 4x its ~$5B market value.
- FCX says its average realized price for copper in Q4 fell to $2.18/lb., from $2.95 in the same period last year.
- Based on $2/lb. copper prices and $34/bbl Brent crude oil prices, FCX estimates 2016 consolidated operating cash flows of $3.4B and capex of $3.4B.
- The company last month suspended its dividend and said it would further cut its capital spending by $1B over the next two years.
Freeport-McMoRan, Inc. engages as copper, gold and molybdenum mining company. It operates through the following segments: North America Copper Mines, South America Copper Mines, Africa Mining, Indonesia Mining, and Molybdenum Mining. The North America Copper Mines segment operates seven open-pit... More
Sector: Basic Materials
Country: United States