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Copper Industry April Update (Part 2 of 10) (Continued from Part 1) Copper prices
In the first part of our series, we looked briefly at the Wall Street performance of copper companies. Copper prices are a key driver for copper producers including Southern Copper (SCCO) and Anglo American (AAUKY).
Freeport-McMoRan (FCX) expects its EBITDA (earnings before interest, taxes, depreciation, and amortization) to fall by $500 million for every $0.10 per pound decline in copper prices. The reverse is true when copper prices go up.
Freeport currently forms 3.41% of the iShares U.S. Basic Materials ETF (IYM) and 3.11% of the Materials Select Sector SPDR ETF (XLB). Newmont Mining (NEM) forms 1.91% of XLB.
Copper prices steady
The previous chart shows the movement in copper prices on the LME (London Metal Exchange). Copper prices have traded largely sideways in April. Copper prices fell sharply in January but have recovered smartly since then. Year-to-date, copper prices are down ~4%, and aluminum prices have dropped 3% over this period.
Supply disruptions
There have been supply-side disruptions, including incessant rains and floods in Chile, the world’s largest copper miner. Chile also has the highest reserves of copper, followed by Peru. The Chilean copper association has reduced its production targets for 2015 as a result of weather disruptions.
There have also been mining operation disruptions in Indonesia. The country imposed a ban on exports of unprocessed ores. Indonesian bauxite and copper exports have been negatively impacted as a result. If this weren’t enough, workers blockaded PT Freeport’s Grasberg Mine in Indonesia.
Investors in copper companies should closely track copper production figures. In the next part of our series, we’ll discuss the latest copper production trends.
Continue to Part 3 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 71,5 milliards US$ (66,8 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 25 avril 2024 à 49,40 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |