| What to Expect from Freeport-McMoRan’s 3Q15 Earnings | |
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Why Is This Week So Crucial for Freeport-McMoRan Investors? (Continued from Prior Part) 3Q15 earnings expected on October 22
Freeport-McMoRan (FCX) is expected to release its 3Q15 financial results on October 22. According to a Bloomberg survey, the company is expected to post an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $965 million on sales of $4.1 billion in the quarter. In 2Q15, Freeport posted an adjusted EBITDA of $1.2 billion on net revenues of $4.2 billion.
Investors looking at direct exposure to base metals can also consider the PowerShares DB Base Metals ETF (DBB).
Could Freeport surprise us?
In each of the last five quarters, Freeport’s share price has fallen after it released its earnings. Its 2Q15 earnings were met with a major negative reaction on Wall Street, and the stock tumbled ~10% after the earnings announcement.
Spot copper prices have averaged $5,259 per metric ton in 3Q15 compared to $6,043 per ton in the previous quarter. WTI (West Texas Intermediate) has averaged $46 per barrel in 3Q15 compared to $58 in 2Q15.
Looking at Freeport’s earnings sensitivity to WTI and copper prices, its 3Q15 earnings could take a hit compared to the previous quarter. A positive earnings surprise seems unlikely considering the way commodity prices have trended in the quarter.
What should you watch for?
- You should watch how Freeport’s unit production costs progress in 3Q15. Freeport’s unit cash costs are currently higher compared to Rio Tinto (RIO), BHP Billiton (BHP), and Turquoise Hill Resources (TRQ). The graph above shows Freeport’s unit cash costs compared to other copper producers.
- You should look for any clarity in Freeport’s energy business in the 3Q15 earnings conference call. The company is currently reviewing several options, including the previously announced IPO (initial public offering), the spin-off, the joint venture agreement, and further spending cuts.
Visit Market Realist’s Copper page to learn more about Freeport-McMoRan.
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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$ 68.1 billions as of today (€ 59.6 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on March 28, 2024 at US$ 47.02. Freeport McMoran has 1 448 000 000 shares outstanding. |