| 4 Factors that Could Drive Freeport-McMoRan’s 2016 Performance | |
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An Investor’s Guide to Freeport-McMoRan’s 2016 Outlook (Continued from Prior Part) Freeport-McMoRan’s 2016 performance
In the previous part of this series, we saw that China’s December manufacturing PMI (purchasing managers’ index) missed analysts’ expectations. In a sense, the new year started on the same negative note that drove the global equity markets in 2015—China’s slowdown.
The copper industry bore the brunt of China’s slowdown in 2015. Freeport-McMoRan (FCX), Teck Resources (TCK), Glencore (GLNCY), and Turquoise Hill Resources (TRQ) lost substantial value last year.
In this part of the series, we’ll look at four key factors that could drive Freeport’s 2016 performance. Investors looking at a diversified exposure to the materials sector can also consider the iShares US Basic Materials ETF (IYM). Almost 12% of IYM’s holdings are invested into metals and mining companies.
Key drivers
The four key factors that could drive Freeport-McMoRan’s 2016 performance are shown in the graph above. These are:
- Movement in copper prices: Copper prices could depend on several variables that we’ll explore in the coming parts of this series.
- Agreement with the Indonesian government: Freeport needs to sign a fresh contract with the Indonesian government regarding its Grasberg mine.
- How Freeport addresses its surging leverage ratios: Freeport’s debt levels have reached alarming levels.
- The strategic path for energy assets: It’s been more than six months since Freeport first announced the IPO of its energy business. Later, the company announced other strategic paths that it is considering for the energy assets. However, we have not seen any concrete action on this front.
In the next part, we’ll explore the factors that could drive copper prices in 2016.
Continue to Next Part Browse this series on Market Realist:
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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$ 69.9 billions as of today (€ 65.2 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 24, 2024 at US$ 48.24. Freeport McMoran has 1 448 000 000 shares outstanding. |