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Freeport +14%, boosted by higher copper price, Grasberg optimism

Published 07/25/2017, 03:32 PM
© Reuters.  Freeport +14%, boosted by higher copper price, Grasberg optimism
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  • Freeport McMoRan (FCX +14.2%) is today's top performer on the S&P 50, as investors brush aside below consensus Q2 earnings and full-year forecasts to focus instead on soaring copper prices and CEO Richard Adkerson's confidence in securing a new mining agreement by October for the giant Grasberg mine.
  • “We are now approaching a stage where both parties have expressed an objective of a near-term resolution,” Adkerson said in today's earnings conference call. "I believe we are seeing that objective being more clearly identified by senior levels in the Indonesian government than we have seen in the past."
  • "Freeport's share price performance is justified based on what's happened in copper, based on the progress in negotiations and based on the fact that... the stock is not very widely held," said Jefferies mining analyst Christopher LaFemina. "This is a stock that many investors have not liked. It's under-owned and has had some good news. That tends to be a recipe for a higher share price."
  • Now read: Freeport McMoRan - Top Tier Mining Company


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