| Stable Energy Prices in May Bode Well for Freeport-McMoRan | |
| | |
|
What's Driving Freeport and Other Copper Producers in 2015? (Continued from Prior Part) Crude oil at $60 in May
Previously in this series, we looked at some indicators of the copper industry. In this part, we’ll take a look at Freeport-McMoRan (FCX), one of the top two copper producers. We’ll also analyze recent movements in crude oil prices.
On May 29, WTI (West Texas Intermediate) was trading at $60.30 per barrel. Freeport has significant investments in oil and gas assets, so Freeport investors should keep a close eye on crude oil prices.
Crude oil prices stabilize
The above graph shows recent movements in WTI prices. Prices traded largely sideways in May, flirting around the $60 level. This was preceded by a 25% rise in April. Crude oil prices reached multi-year lows earlier in March but bounced back sharply after that.
Energy exploration companies (XOP) like ConocoPhillips (COP) and Suncor Energy (SU) benefit from the increase in crude oil prices. COP and SU form 4.36% and 2.33%, respectively, of the iShares North American Natural Resources ETF (IGE).
Higher energy prices boost Freeport’s earnings. Earlier this year, the company had to slash its dividend by more than 80% as both energy and copper prices tumbled.
IPO of energy business?
In its 1Q15 earnings conference call, Freeport highlighted that it might consider selling a minority stake in its energy business. It might come out with an IPO (initial public offering) of its oil and gas subsidiary later this year, subject to market conditions and regulatory approvals. Higher energy prices would help Freeport price the IPO at a better price.
Freeport gets more than 10% of its revenue from gold. It produces gold from its mine in Indonesia. In the next part, we’ll look at some of the recent trends in gold prices.
Continue to Next Part Browse this series on Market Realist:
|
|
|
Freeport McMoRan Copper and Gold Inc.
|
|
PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
|
| |
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 73,1 milliards US$ (68,3 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 26 avril 2024 à 50,50 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |