Sep. 30, 2014, 8:37 AM
- Newmont Mining (NYSE:NEM) exported 30K metric tons of copper concentrate from Indonesia yesterday, ending a nine-month hiatus and highlighting a ramp up in copper mine supply that is expected to tip the market into surplus this year.
- The country's largest producer, Freeport McMoRan (NYSE:FCX), resumed shipments in early August while saying it had built up a 140K metric ton stockpile and expecting total copper concentrate production to reach 1.8M metric tons this year.
- As a result of boom time investment, new global mine supply is feeding into the market and is expected to result in a surplus, weighted towards the end of the year.
Sep. 29, 2014, 8:19 AM
- Copper mining has been suspended all weekend at Freeport McMoRan's (NYSE:FCX) Grasberg mine in Indonesia after four workers were killed and five others were injured when a car collided with a mining truck.
- FCX so far is unable to give any estimates on the impact to overall production.
- It is the second fatal accident this month at the mine; a boulder fell and killed a worker underground earlier this month.
- FCX -1.3% premarket.
Sep. 24, 2014, 12:05 PM| Comment!
Sep. 15, 2014, 11:23 AM
- Freeport McMoRan (NYSE:FCX) says mining activities at its eastern Indonesian unit have not been affected by an accident that claimed one life, but development work has been suspended as the company and a government team investigate the incident.
- An Indonesian worker was killed over the weekend by falling rocks while working at the underground mine Grasberg Block Cave.
- FCX is developing the underground mine, which it expects to yield ~160K metric tons/day of ore; open-pit mining will end late 2016.
Sep. 2, 2014, 10:28 AM
- Newmont Mining (NEM -2.4%) has reached a tentative agreement to resume exporting copper concentrate from Indonesia as early as this week, the government says.
- According to a top mining industry official, NEM will pay an export tax of 7.5% on its copper concentrate, which is the same rate Freeport McMoRan (NYSE:FCX) negotiated early and significantly lower than the government originally asked; NEM also will increase royalties to 3.75% from 1% for gold, to 4% from 3.5% for copper, and to 3.25% from 1% for silver.
- Although an agreement has been reached in principle, the deal still needs to be approved by several government officials, including the chief economics minister, before an MoU is signed by both parties.
Aug. 29, 2014, 3:57 PM| Comment!
Aug. 14, 2014, 8:16 AM
- Freeport McMoRan (NYSE:FCX) is downgraded to Hold from Buy at Stifel, which says shares already reflect the restart of exports from Indonesia.
- Stifel views the memorandum of understanding FCX signed last month with the Indonesian government as a step in the right direction since it removes the near-term overhang on shares, although it believes the 18% rally from March lows suggests the market had been expecting a deal; bigger questions regarding mine ownership and permits beyond 2021 remain, the firm says.
- FCX -1% premarket.
Aug. 11, 2014, 9:58 AM
- Freeport McMoRan (FCX +1.2%) is upgraded to Buy from Hold with a $42 price target at Argus, based on reduced copper mining capacity, expectations for stronger copper demand in the near term, and the stock's favorable valuation.
- The firm expects increased demand for copper to boost pricing in H2; while this likely will drive a new round of capacity increases, it expects the process to take at least a year, allowing FCX to benefit from higher copper prices in the near term.
Aug. 7, 2014, 12:34 PM
- Freeport McMoRan (FCX -1.6%) is approaching prospective buyers about selling its onshore oil wells in California, which could fetch as much as $5B, Reuters reports.
- The potential buyers could include other oil companies as well as P-E firms, according to the report.
- FCX has been actively pursuing asset sales in order to reduce debt, which totals more than $20B.
Aug. 7, 2014, 8:19 AM
- Newmont Mining (NYSE:NEM) says it is applying for an injunction to get workers back to its Batu Hijau mine, as the miner continues to take a hard line in its dispute with Indonesia's government over a controversial tax on copper exports.
- NEM CEO Gary Goldberg says it could take several months to obtain a ruling on interim relief and at least several weeks to ramp back up to full production if relief is granted.
- The CEO says NEM would continue to try to resolve the dispute through talks with the government while also pursuing arbitration, but has no plans to visit Indonesia while he is in the Asia-Pacific region over the next week.
- Fellow miner Freeport McMoRan (NYSE:FCX) has resumed copper concentrate exports after agreeing last month to a reduced export duty of 7.5%.
- Earlier: Newmont Mining opens to restarting Barrick Gold merger talks; shares +0.9% premarket.
Aug. 6, 2014, 11:05 AM
- The Indonesian unit of Freeport McMoRan (FCX +0.3%) says it has resumed copper concentrate exports with a 10K metric ton shipment to China.
- FCX and the government reached a deal July 25 to resume exports after a six-month halt, with the company essentially agreeing to pay lower export taxes in return for building a local smelter.
- FCX's copper concentrate exports are expected to reach 756K tons with an estimated value of $1.56B by the end of the year.
Aug. 4, 2014, 9:15 AM
- Freeport McMoRan (NYSE:FCX) may start exporting copper concentrate from Indonesia by Wednesday after reaching an agreement with the government to resume the exports after a six-month stalemate.
- Freeport Indonesia CEO Rozik Soetjipto says it may resume overseas shipments with 10K metric tons of copper bound for China.
- The government foresees FCX's total copper concentrate exports reaching 756K tons by year-end, with an estimated value of $1.56B.
Jul. 25, 2014, 8:33 AM
- Freeport McMoRan (NYSE:FCX) says it has reached a deal with the Indonesian government that is expected to pave the way for a resumption of copper exports after a six-month halt.
- After signing the memorandum of understanding, Freeport Indonesia CEO Rozik Soetjipto says he hopes copper concentrate exports could resume as soon as next month.
- FCX will pay a 7.5% tax on its Indonesia copper exports and provide a $115M assurance bond to support its commitment to smelter development; it will pay royalties of 4% for copper and 3.75% for gold, which previously were 3.5% and 1%, respectively.
- FCX, which fell sharply yesterday as terms of the deal leaked out, -0.3% premarket.
Jul. 24, 2014, 11:32 AM
- Freeport McMoRan (FCX -2.1%) is set to restart concentrate shipments from its Grasberg mine in Indonesia, but shares are lower as the verdict on the deal with the government isn't favorable.
- Indonesia reportedly will cut the tax levied on mineral concentrate exports to less than 10% for miners that pay a bond as a guarantee they will build a smelter later.
- As part of its deal, FCX would pay higher royalties of 4% on copper sales, after paying between 1.5% and 3.5% under an old deal, and the higher rate will bring it into line with royalties paid by other companies.
- In response to the deal and FCX's mixed Q2 earnings, BofA/Merrill downgrades shares to Neutral from Buy and cuts its price target to $40 from $43.
- Indonesian officials say no talks have taken place with the second-largest copper miner in the country, Newmont Mining (NEM -2%).
Jul. 23, 2014, 3:36 PM
- Freeport McMoRan (FCX -0.1%) plans to sell $4B-$5B more in onshore assets to help reduce debt and pay for "hundreds of millions of dollars" of investments in the Gulf of Mexico, Vice Chairman Jim Flores said during today's earnings call.
- FCX sees potential for faster growth and better returns by refocusing its oil and gas portfolio in the deepwater Gulf of Mexico, and will look to sell assets with less potential for growth, CEO Richard Adkerson says (Q2 earnings).
- FCX's debt has ballooned from $3.5B to more than $20B after it bought two oil and gas companies last year, and it is facing lower copper prices than when it announced the purchases; export curbs that restricted output from its Grasberg mine in Indonesia also has hurt earnings this year.
Jul. 23, 2014, 9:17 AM
- Freeport McMoRan (NYSE:FCX) posted lower than expected Q2 earnings but revenues rose 28% and beat expectations, lifted in part by its entry into the oil and gas business.
- Q2 copper sales rose 1.8% Y/Y, and gold sales fell 8%, while FCX sold 16M boe, up from 5M last year which only included one month of operations.
- Average realized prices for copper and gold fell from a year earlier.
- Cash production costs for oil and gas operations of $19.57/boe were higher than the $16.58/boe a year ago mostly because of higher operating costs in California.
- Says it expects to sign a deal with the Indonesian government “imminently” to resume exports of partly processed ore from the country, where it operates its Grasberg mine.
- FCX -0.3% premarket.
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