Freeport-McMoRan: Copper Price Is Likely To Remain Elevated
Summary
- Short-term outlook for copper is not favorable due to easing shortage conditions and worries about a decelerating Chinese economy.
- The company's strong cash flows, long outstanding mine-life and healthy financials will allow it to reap benefits from the upcoming copper appreciation.
- Stock levels at SHFE and LME are significantly lower compared to historical average.
- At $37.72, the stock is trading with a 16% margin of safety, thus making it attractive even if short-term outlook is bearish.
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