Mon, Feb. 22, 10:33 AM
- Freeport McMoRan (FCX +12.1%) soars ~12% in early trade to lead the S&P 500, as copper futures and other base metals surge.
- The LME’s three-month copper contract was up 1.4% at $4,686/metric ton after hitting a two-week high earlier in the session at $4,701, maintaining its price momentum after closing above $4,600/ton last week for the first time in almost two weeks.
- Positive trading sentiment on copper was upheld by China’s announcement that it will reduce deed and business taxes for home buyers in a bid to speed up home sales and reduce the glut on the property market; weak Chinese property sales have been bad for copper prices, as the sector accounts for most of the demand for the metal.
- Meanwhile, Bloomberg's David Fickling thinks BHP Billiton (BHP +5.9%) ought to buy FCX: BHP's copper output would more than double overnight and control of all three of the world's biggest copper pits - Escondida, Grasberg and Morenci - while a deal also would make sense for FCX, "whose debts are dragging it dangerously close to the plughole."
- ETFs: JJC, DBB, CPER, BOM, RJZ, BOS, JJM, BDD, CUPM
Dec. 6, 2012, 10:28 AM
Jim Cramer's take on Freeport McMoran's (FCX) big deal for McMoRan (MMR) and Plains (PXP): "It doesn't pass the smell test." For FCX shareholders, the "instant re-coloration" of the company from copper to oil and copper should cause worry that maybe something's wrong with the copper side. The deal shows the fallacy of playing the mining stocks instead of the ore; the way to play copper is through JJC.| Dec. 6, 2012, 10:28 AM | 2 Comments
Jul. 11, 2011, 8:40 AM
Stillwater Mining (SWC) agrees to buy Peregrine Metals (PTTDF.PK) for $487.1M in cash and stock. The transaction gives Stillwater access to the undeveloped Altar open mine in Argentina, which has 7.4B pounds of indicated copper resources and 1.5M ounces of indicated gold.| Jul. 11, 2011, 8:40 AM | 6 Comments