| Could OPEC’s Meeting Negatively Impact Freeport-McMoRan? | |
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Key Events Freeport-McMoRan Investors Should Watch (Continued from Prior Part) OPEC’s meeting
It could be a familiar sign for Freeport-McMoRan (FCX) investors when OPEC (Organization of the Petroleum Exporting Countries) meets on December 4. Last year, at its annual meeting, OPEC decided to maintain its daily crude output. The decision had a negative impact on all of the commodities (DBC). Among the copper producers, Freeport-McMoRan’s stock fell 8.5% after OPEC’s meeting. Teck Resources (TCK) wasn’t far behind. It lost 7.7% of its market capitalization. However, Southern Copper (SCCO) only lost about 3.5% after OPEC’s meeting.
Volatility
There are two broad reasons why Freeport-McMoRan and Teck Resources fell sharply after OPEC’s meeting last year. First, both of these companies have higher financial leverage. This makes them more volatile. The second reason why Freeport-McMoRan and Teck Resources fell more than Southern Copper can be found in their energy exposure. While Southern Copper is a pure-play copper producer, Freeport-McMoRan and Teck Resources have substantial energy exposure. Turquoise Hill Resources (TRQ) is another pure-play copper producer.
Energy exposure
Teck Resources is the world’s second-largest exporter of steelmaking coal. It’s also North America’s largest producer. It has the annual capacity to produce 28 million tonnes. Freeport-McMoRan diversified into energy exploration a couple of years ago. Crude oil prices fell for more than a year, as you can see in the above graph. If crude oil prices fall again after OPEC’s meeting, it could have a negative impact on Freeport-McMoRan. While Freeport-McMoRan is looking at “strategic alternatives” for its energy business, it’s still exposed to the movement in energy prices.
Meanwhile, can OPEC’s meeting have an impact on copper prices? We’ll explore this in the next part of the series.
Continue to Next Part Browse this series on Market Realist:
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Freeport McMoRan Copper and Gold Inc.
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 69,9 milliards US$ (65,2 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 24 avril 2024 à 48,24 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |