| 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 $2.80.
Latest Ratings for FCX
Date | Firm | Action | From | To |
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Apr 2015 | Morgan Stanley | Upgrades | | Overweight | Apr 2015 | Citigroup | Maintains | | Buy | Apr 2015 | Citigroup | Maintains | | Buy |
View More Analyst Ratings for FCX
View the Latest Analyst Ratings
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Freeport McMoRan Copper and Gold Inc.
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre en Republique Democratique Du Congo, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, HENDERSON, CHINO - MILL et OJOS DEL SALADO au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME, TYRONE, MIAMI - ROM LEACH, MORENCI - MILL, MORENCI et MORENCI - ROM LEACH en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD en Republique Democratique Du Congo et ses principaux projets en exploration sont CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH, CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, BAGDAD - ROM LEACH, CHINO - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 69,9 milliards US$ (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. |