| Understanding the Catalysts for Freeport-McMoRan’s Divestiture | |
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Freeport-McMoRan to Offer Up Energy Assets: Will It Be Enough? (Continued from Prior Part) Freeport-McMoRan’s energy business
In the previous parts of this series, we analyzed the strategic rationale for Freeport-McMoRan’s (FCX) energy IPO (initial public offering). In this part, we’ll analyze whether the timing is right for the offering. Also, there are two likely catalysts sparking the company’s decision to go public. We’ll explore these, too.
More stable energy prices
Crude oil prices have recovered from the sub-$50 levels that they reached earlier this year. The previous chart shows the movement in the WTI (West Texas Intermediate) benchmark over the last few months. WTI prices have been hovering around $60 per barrel for quite some time now. There’s broad consensus that crude oil prices have settled here and that this is the new normal. More stable crude oil prices is a key catalyst for Freeport-McMoRan deciding to launch an IPO for its energy business.
Strong equity markets
Strong equity markets are critical to the success of any IPO. Broad US markets (SPY) (VTI) are trading near all-time highs. With that, there’s a feeling that the rally might lose steam. In all likelihood, the Federal Reserve will hike interest rates later this year.
These factors suggest that Freeport-McMoRan might have timed its exit strategy from the energy business quite well. Yet the same could not be said about the timing for an entrance into the business.
As far as Freeport investors are concerned, the damage has already been done. What remains to be seen is how much value Freeport can salvage from its energy assets.
Meanwhile, after the divestiture of the energy business, Freeport will go back to being a copper play like Southern Copper (SCCO) and Turquoise Hill Resources (TRQ). We’ll find out how the copper industry is doing in our next part.
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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 69,5 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$, et son plus haut niveau récent le 23 avril 2024 à 47,99 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |