| What Is Driving Freeport-McMoRan’s Stock Price? | |
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Lackluster Chinese Data Pushes Copper, Freeport-McMoRan Lower Freeport-McMoRan
Freeport-McMoRan (FCX) closed at $9.80 on September 25, dipping below the psychologically crucial level of $10 for the second consecutive day. Freeport has lost more than 18% after touching $12.05 on September 17. The stock has been quite volatile over the last month.
Currently, Freeport-McMoRan forms 2.18% of the Materials Select Sector SPDR ETF (XLB). Investors looking at a direct commodity exposure can also consider the PowerShares DB Commodity Tracking ETF (DBC).
Stock price has been volatile
At the end of August, Freeport surged on news of activist investor Carl Icahn taking an 8.5% stake in the company, coupled with Freeport’s lower capital expenditure guidance. Freeport’s stock also received a boost from the uptrend in copper prices in the beginning of September.
However, the rally was short-lived and fizzled out shortly thereafter. Markets took a negative view of Freeport’s announcement of its fresh equity issuance of up to $1 billion. The company had already raised $1 billion in equity at its current depressed stock prices. Looking at Freeport’s current market marketization of ~$11 billion, its equity base could expand between 15%–20% by raising $2 billion of fresh equity. This would lead to lower earnings per share in the coming years.
Equity issuance looks like a necessary evil for the beleaguered company. Freeport has been struggling with its huge debt, and its total debt could have increased further in next two quarters if aggressive measures were not taken.
Series overview
Along with the company-specific issues, macro factors have weighed heavily on Freeport-McMoRan. Copper prices and concerns over the Chinese economy has been among the major drivers for copper producers such as Freeport-McMoRan, Turquoise Hill Resources (TRQ), and Teck Resources (TCK).
In this series, we’ll take a look of the macro indicators that affect copper companies. Let’s begin by looking at the latest trend in copper prices.
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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. |