- "We've made a lot of progress" in negotiations with the Indonesian government over control of the Grasberg copper and gold mine, although there are differing views within the government, Freeport McMoRan (NYSE:FCX) CEO Richard Adkerson said in today's earnings conference call.
- FCX says it now anticipates a midyear target date for an agreement, though the timetable could hinge on Indonesia reaching a deal with Rio Tinto (NYSE:RIO), which has a 40% interest in the mine’s production, and Indonesian officials said last month that the country plans to buy Rio’s interest; analysts say an agreement could limit FCX’s sale to a ~9% stake and make negotiations much easier.
- “It is pretty clear that they’ve made significant progress. That’s the good news,” says Jefferies analyst Christopher LaFemina - who rates FCX a Buy and today raised his stock price target to $26 - but “they are not yet at the finish line. It’s still a very complex situation.”
- FCX rose ~1% in today's trade following better than expected Q4 results.
- Now read: Freeport-McMoRan Inc. 2017 Q4 - Results - Earnings Call Slides
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