| Freeport-McMoRan Could Double On Copper, Oil Recovery And Mining Revamp | |
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In a report published Wednesday, Macquarie Research analyst Aldo Mazzaferro reiterated an Outperform rating on shares of Freeport-McMoRan Inc (NYSE: FCX) with an unchanged $22 price target after the company suggested it will raise up to $1 billion in equity by selling shares.
Mazzaferro continued that the company will see "limited dilution" by using its diverse assets – which would include "small slices" of oil & gas, Indonesian mining, and just under 10 percent of its equity.
In addition, Mazzaferro noted Freeport's added liquidity will "supplement" a pending IPO of its Oil & Gas business. Despite the raise, the analyst suggested that the company's net debt will peak this year and return to a free cash flow within a year due to volume, grade and cost improvements.
"We think management is averse to the liquidity raise at current price levels, but the decision shows commitment to preserving recovery potential while working to insure a smooth survival along the bottom," Mazzaferro wrote.
In fact, Freeport's capital raise may not be necessary in the end and depends on commodity prices. As an example, copper pricing may "gain support" from the company's move to streamline mining assets and reduce higher cost output. Despite the fact that the analyst doesn't see copper prices trading north of $3.00 per pound before 2018, internal improvements will prove to be "enough" to drive the stock higher.
Mazzaferro lowered his 2015 and 2016 earnings per share estimates by $0.05 each, to $0.55 and $1.75, respectively. He made no changes to his 2018 earnings per share estimate of $2.80.
Latest Ratings for FCX
Date | Firm | Action | From | To |
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Apr 2015 | Morgan Stanley | Upgrades | | Overweight | Apr 2015 | Citigroup | Maintains | | Buy | Apr 2015 | Citigroup | Maintains | | Buy |
View More Analyst Ratings for FCX
View the Latest Analyst Ratings
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Freeport McMoRan Copper and Gold Inc.
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a gold and copper producing company based in United states of america. Freeport McMoran produces gold, copper, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is US$ 72.1 billions as of today (€ 63.2 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 17, 2024 at US$ 49.82. Freeport McMoran has 1 448 000 000 shares outstanding. |