| Freeport-McMoRan: A Roller Coaster Ride in November 2015 | |
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Freeport-McMoRan Nears 52-Week Lows on November 13, Commodities Crash Freeport-McMoRan
On November 13, 2015, Freeport-McMoRan (FCX) closed at $8.68. Although Freeport’s stock is down more than 25% so far in November, it is still trading ~12% above its 2015 lows. The year has been nothing short of a roller coaster ride for Freeport investors.
Stocks have been falling
The entire base metals space (XLB) has seen heightened volatility over the last six months or so. However, companies including Freeport-McMoRan, Teck Resources (TCK), and Glencore (GLNCY) have been more volatile as compared to some of their peers in this sector.
Teck Resources has seen its share price dwindle more than 65% this year. Teck Resources is the world’s second largest exporter of steelmaking coal. It is also North America’s largest coal producer, with the annual capacity to produce 28 million tons. Along with falling copper prices, Teck Resources has been hit by the reduced Chinese coal demand.
Freeport is not far behind, and its stock has fallen more than 62% this year. Southern Copper (SCCO) has not fallen much, as can be seen in the graph above. Please read Southern Copper: A Business Overview of a Copper Giant to learn more about SCCO.
Key drivers
There are several factors that would determine how Freeport-McMoRan could trade over the next few months. As Freeport is also involved in the energy exploration business, its stock price could also be guided by movement in energy prices. However, Freeport has announced that the company is looking at several “strategic alternatives” for the energy business, and a final decision has yet to be made.
The key driver, however, would be how copper prices play out in the coming months. In the next part of this series, we’ll explore what analysts think about copper prices.
Continue to Next Part Browse this series on Market Realist:
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VanEck Vectors Global Alternative Energy ETF
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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 copper and gold producing company based in United states of america. Freeport McMoran produces copper, gold, 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 2.1 billions as of today (€ 1.9 billions). Its stock quote reached its lowest recent point on March 06, 2020 at 10.00, and its highest recent level on September 19, 2024 at 45.14. Freeport McMoran has 47 442 200 shares outstanding. |