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(AP Photo/Matthew Brown)
Freeport-McMoRan may get rid of its oil and gas business.
In a release on Tuesday, the company said it was considering spinning off its oil and gas business to shareholders.
The goal is to focus on its core copper business and be able to fund that with its own cash and resources, relying less on debt.
It also announced it was reducing the size of its board to nine members from 16.
Commodity prices have been slammed this year, including copper, which fell to the lowest level in six years. Analysts said the fall in copper was due partly to concerns about China's economy and its demand appetite.
On Tuesday, West Texas Intermediate crude oil was down about 23% from year-to-date highs.
The company said: "While taking prudent near-term steps responsive to the currently weak market conditions, FCX remains confident about the longer-term outlook for copper prices based on the global demand and supply fundamentals. A primary objective will be a significant reduction over time of FCX's current debt level."
The stock rose as much as 4% in premarket trading. It is down 52% year-to-date.
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Freeport McMoRan Copper and Gold Inc.
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a gold and copper producing company based in United states of america. Freeport McMoran produces gold, copper, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is US$ 71.8 billions as of today (€ 67.5 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 19, 2024 at US$ 49.61. Freeport McMoran has 1 448 000 000 shares outstanding. |