3.09 0.00 (0.00%)
After hours: 4:32PM EDT
|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||3.04 - 3.09|
|52-week range||2.44 - 3.59|
|PE ratio (TTM)||34.33|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
Freeport-McMoRan (FCX) released its 1Q18 earnings today and reported revenues of $4.8 billion. Freeport’s 1Q18 adjusted EPS (earnings per share) from continuing operations were $0.46, versus $0.13 in the corresponding quarter last year. Despite the sharp yearly increase, Freeport’s 1Q18 earnings fell short of expectations.
In the previous part of this series, we noted that Freeport-McMoRan (FCX) expects its 1Q18 copper shipments to be similar to the sequential quarter. Meanwhile, for commodity producers Antofagasta (ANTO), Southern Copper (SCCO), and Rio Tinto (RIO)(TRQ), commodity prices have a higher impact on earnings than shipments. In this article, we’ll see how commodity prices played out in 1Q18 amid the US-China trade war and how it could impact Freeport’s financial performance.
Freeport-McMoRan (FCX) is scheduled to release its 1Q18 earnings on April 24. In this article, we’ll see what analysts are projecting for Freeport’s 1Q18 revenues. Freeport managed to beat its revenue estimates by a wide margin in the last two consecutive quarters.
Freeport-McMoRan (FCX) operates the Grasberg mine in Indonesia (EIDO) with Rio Tinto (RIO) (TRQ) as a minority partner. While the mine is a crown jewel in Freeport’s portfolio due to its vast size and attractive unit cash costs, its operations have been surrounded by uncertainties. Let’s discuss these uncertainties in perspective.
While inventory levels are a key price driver, offering insights into the underlying demand-supply balance, we’ve also seen sudden arrivals to and withdrawals from LME (London Metal Exchange) warehouses. The LME copper inventory fell from 301,000 on August 3 to 211,000 on September 8, 2017. Looking at current markets, we’ve again seen a sudden spike in the LME copper inventory.
What Could Sustain Freeport’s Rally? In the previous article, we looked at issues facing Freeport-McMoRan’s (FCX) Grasberg operations and compared the stock’s valuation to its peer companies. Notably, Grasberg is a key long-term asset for the company.
The Vancouver, British Columbia-based company said it had profit of 3 cents per share. The metal and coal mining company posted revenue of $251.7 million in the period. For the year, the company reported ...
The Oyu Tolgoi copper and gold mine in Mongolia's southern Gobi Desert will lift force majeure effective March 1 and majority owner Turquoise Hill Resources Ltd said on Wednesday that it expected to make ...
As we noted in the previous part of this series, Freeport-McMoRan (FCX) expects its unit cash costs to fall in 2018, largely due to lower production costs at its Grasberg mine (RIO)(TRQ). Freeport expects a byproduct credit of $2.56 per pound at its Grasberg mine this year, bringing down the mine’s unit cash costs after byproduct credits to -$0.57 per pound. To put this figure in context, consider that the company’s unit cash costs after byproduct credits are expected to average $1.67 per pound in North America and $1.63 per pound in South America.
Mongolia can build a power plant at its Tavan Tolgoi coal mine by 2021 to supply the Oyu Tolgoi copper project, energy officials said on Tuesday, as the government seeks to hold Rio Tinto to an agreement to use Mongolian power. Tensions have mounted between the Mongolian government and its fellow shareholders in Oyu Tolgoi, where Rio Tinto is operating a huge underground extension.
As we noted previously, Freeport-McMoRan (FCX) has reinstated its dividend, which was suspended in 2015. In this article, we’ll see what could be Freeport’s management’s next priority after dividend reinstatement. During the 4Q17 earnings call, Richard Adkerson, Freeport’s CEO, said that that he has two personal milestones: “One is when Freeport starts paying dividends again and two is when I can take a group of analysts and shareholders back out to Grasberg to see the place.” While dividend reinstatement was more of a policy decision, Grasberg represents a more complex problem for Freeport.
Rio Tinto (RIO.AX) (RIO.L) on Wednesday denied allegations by a Dutch non-profit organisation that it had avoided paying $700 million of tax to Mongolian and Canadian authorities relating to its giant Oyu Tolgoi copper project. Rio Tinto is investing about a $1 billion (£706.5 million) a year at Oyu Tolgoi in the Gobi Desert, where it operates a mine and is building an underground extension that would add approximately 500,000 tonnes of production a year in the next decade. The Centre for Research on Multinational Corporations, known as SOMO, alleged in a report that Rio and its Canadian subsidiary Turquoise Hill used so-called mailbox companies in the Netherlands and Luxembourg to avoid $470 million in Canadian taxes and $230 million in Mongolian taxes.
Rio Tinto on Wednesday denied allegations by a Dutch non-profit organisation that it had avoided paying $700 million of tax to Mongolian and Canadian authorities relating to its giant Oyu Tolgoi copper project. Rio Tinto is investing about a $1 billion a year at Oyu Tolgoi in the Gobi Desert, where it operates a mine and is building an underground extension that would add approximately 500,000 tonnes of production a year in the next decade.
Freeport-McMoRan (FCX) operates the giant Grasberg mine in Indonesia. Rio Tinto (RIO) (TRQ) is Freeport’s minority partner in the mine (GLEN-L). The operations have been surrounded by controversies in the last few years.
Among the miners we’re discussing in this series, Vale SA (VALE) has the highest percentage of “buy” ratings at 65.2%. Many factors have contributed to the positive shift in the overall sentiment for Vale. The stock’s target price has risen 71% in the last year due to the positive turnaround of the company’s fundamentals. Vale’s peers (XME) Rio Tinto (RIO) (TRQ) and BHP Billiton (BHP) haven’t seen such growth in their target prices.
Rio Tinto (RIO) (TRQ) stock returned a positive 37.6% in 2017. As we noted earlier in this series, some of the positives have now become so obvious that analysts have downgraded Rio, saying that these positives have already been priced in to its stock. Let’s take a look at the company’s revenue and earnings estimates.
Freeport-McMoRan’s 2018 Outlook: Can It Continue Its Dream Run? Freeport-McMoRan (FCX) has managed to cut its net debt by more than half over the last two years. Freeport used its organic cash flows to strengthen its balance sheet.
Freeport-McMoRan’s 2018 Outlook: Can It Continue Its Dream Run? In August 2017, Freeport-McMoRan (FCX) announced a framework with the Indonesian government (EIDO). Under the terms of that framework, Freeport agreed to construct a smelter in Indonesia within five years.
On a per-share basis, the Vancouver, British Columbia-based company said it had profit of 3 cents. The metal and coal mining company posted revenue of $246.9 million in the period. The company's shares ...
Turquoise Hill Resources (TRQ) has received a “strong buy” rating from two analysts, while three analysts have rated the stock a “buy.”