Freeport McMoRan (FCX)

[winston]

not vested

Freeport-McMoRan (NYSE:FCX)

If it’s lithium you’re still stuck on, this is by far the best performer out there.

But again, this isn’t just about lithium, and FCX depends quite a lot on its pesticide sales, seeing 92 percent of revenue in the first half of this year from its agricultural solutions business.

And in March last year, FCX bought up a significant portion of DuPont’s crop protection business in a deal that closed last November. That deal turned Freemont into one of the largest agro-tech companies in the world.

Trading as a $20.23-billion market cap company, FCX was also one of the biggest producers of cobalt in the world until it sold its stake in Congolese Tenke Fungurume to China Molybendum for $2.65 billion, though it still has its hands in the cobalt trade through a subsidiary called Freeport Cobalt.

But in October, things are about to getting more interesting because FCX is planning to spin-off it’s lithium segment. FMC Corp’s lithium segment will become Livent Corp. next month. Management expects the lithium segment to generate full-year 2018 revenue in the neighborhood of $445 million and EBITDA of around $200 million.

Look for the IPO this fall, but also watch this …

Source: Oilprice.com

[winston]

not vested

Freeport-McMoRan (FCX)

Freeport-McMoRan is the world's largest public copper producer and one of the largest global gold producers.

Analyst Matthew Miller is bullish on long-term fundamentals in the copper market and says current and future supplies may not be enough to meet demand.

In the long term, rising demand for electric vehicles and electronic devices will increase global copper consumption, he says.

Projects at Grasberg, Indonesia, and Lone Star, Arizona, will fuel revenue growth for Freeport, Miller says.

CFRA has a "buy" rating and $13 price target for FCX stock.

Source: US News

[winston]

not vested

Forward P/E of 13.3 .

Recently, a Goldman Sachs analyst opined that copper price is likely to hit $11,500 per metric ton in three months.

Further, the price is expected to trend higher to $13,000 per metric ton by the end of 2022. If this holds true, Freeport is positioned for a healthy EBITDA margin and cash flow upside.

Freeport reported copper sales of 3.8 billion lbs for 2021. The company has guided for sales of 4.3 and 4.5 billion lbs for the next two years. Therefore, Freeport is positioned to benefit from higher prices and incremental production increases.

With higher cash flows, Freeport has also improved its balance sheet. For 2020, the company reported net-debt of $6.1 billion.

Net debt has declined to $1.4 billion as of December 2021. This gives the company ample financial flexibility to invest in growth. At the same time, dividends are likely to increase if copper prices remain firm.

Source: Investor Place

[winston]

not vested

Falling Copper Prices Weigh On Freeport McMoran's Earnings, But Long Term Fundamentals Intact

by PARTH PALA

Falling Copper Prices Weigh On Freeport McMorans Earnings, But Long Term Fundamentals Intact

-Net income came in at $840 million compared to $1083 million in 2021. Earnings per share came in at 57 cents versus 73 cents during the same quarter last year.

-Copper production was up 17% y-o-y, to $1087 million pounds, and gold production came in 56% higher at 476,000.

-Average realized price per pound of copper was $4, down around 7% for the year, meanwhile, the average realized price per gold was up at $1827.

-The company repurchased over $1.8 billion in shares and increased the total repurchase program by $2 billion to $5 billion.

The company has a forward P/E of around 6.5, and if copper prices remain steady the stock could increase to $35-40 per share, which is what analysts are targeting.

Source: Market Beat

https://www.marketbeat.com/originals/fa ... 4A8F75D6B5