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5 Non Ferrous Metal Mining Stocks to Watch in a Challenging Industry
ZACKS· 2025-08-29 17:36
Industry Overview - The Zacks Mining - Non Ferrous industry faces challenges due to metal price volatility, weak demand, and tariff uncertainties, alongside inflated costs, labor shortages, and supply-chain issues [1][4][5] - Despite these challenges, demand for non-ferrous metals is expected to be supported by the energy-transition trend, which may buoy the industry [1][6] Key Companies to Watch - Southern Copper Corporation (SCCO) is positioned for growth with significant copper reserves and ongoing investments exceeding $10.3 billion in Peru and $10.2 billion in Mexico [2][16] - Freeport-McMoRan Inc. (FCX) is expanding reserves and implementing new technologies, targeting an annual run rate of 300 million pounds of copper by year-end, with plans to increase to 800 million pounds in 3-5 years [2][21] - First Quantum Minerals (FQVLF) has received government approval for its Cobre Panamá mine and expects to achieve production targets of 160,000-190,000 tons of copper in 2025 [2][24] - Coeur Mining (CDE) has enhanced its position in the silver market through the acquisition of SilverCrest Metals, reporting a 79% year-over-year increase in silver production [2][28] - Centrus Energy (LEU) is pioneering High-Assay, Low-Enriched Uranium (HALEU) production, with a solid backlog of $3.6 billion in contracts and plans to expand production capacity [2][31] Market Performance - The Zacks Mining - Non Ferrous industry has underperformed compared to the Zacks Basic Materials sector and the S&P 500, with a collective loss of 7.5% over the past year [9] - The industry's current trailing 12-month EV/EBITDA ratio is 9.48X, significantly lower than the S&P 500's 17.81X and the Basic Materials sector's 13.85X [12] Future Outlook - The demand for non-ferrous metals is expected to remain high, driven by sectors such as transportation, construction, and renewable energy, particularly for metals like copper and nickel [6] - The industry is facing a potential future deficit in metal supply due to depleting resources and declining production from old mines, which may eventually bolster metal prices [4][6]
Prediction: This Metal Company's Dip Will Prove a Great Buying Opportunity for Long-Term Investors
The Motley Fool· 2025-08-28 13:30
Group 1 - The Trump administration's tariffs do not extend to refined copper, leading to volatility in Freeport-McMoRan's stock price, which fell sharply but has since recovered, indicating potential for long-term investors [1][4] - The U.S. premium for copper is approximately 28% above the LME price, translating to an estimated $1.7 billion annual financial benefit for Freeport's U.S. sales [4] - Freeport-McMoRan is the dominant producer in the U.S., accounting for over 70% of the country's refined copper, and is fully integrated [4] Group 2 - Demand for copper is increasingly driven by the electrification of various sectors, including electric vehicles and data centers, despite its cyclical nature [6][7] - The exclusion of refined copper from tariffs may enhance the competitive position of domestic manufacturers, who are likely to source U.S. refined copper from Freeport-McMoRan [8] Group 3 - Freeport-McMoRan is developing a leaching initiative aimed at recovering 300 million pounds of copper annually by year-end, with a long-term target of 800 million pounds by the end of the decade [9][10] - The company has brownfield expansion projects that could increase copper production by 2.5 billion pounds, with significant portions in the U.S., Chile, and Indonesia [12] Group 4 - Freeport-McMoRan is considered excellently valued, regardless of the COMEX copper premium or tariff implications, provided the outlook on copper prices is neutral [13] - Management estimates that the company could generate $13.1 billion in EBITDA in 2026/2027, leading to an EV/EBITDA multiple of less than 5.2, indicating compelling value [16]
Lodge Hill Capital Dumps Freeport-McMoRan Shares Ahead of a Major Trump Decision
The Motley Fool· 2025-08-22 08:49
Company Overview - Freeport-McMoRan Inc. is a leading global mining company focused on copper and gold production, with significant operations in North America, South America, and Indonesia [5] - The company owns major mining assets, including the Grasberg minerals district in Indonesia, and has a diversified resource base [5] - As of June 30, 2025, Freeport-McMoRan's market capitalization was $60.70 billion, with a revenue of $25.82 billion and a net income of $1.92 billion [3] Financial Performance - Freeport-McMoRan shares were trading at $42.28 as of August 14, 2025, reflecting a nearly 3% decline over the last 12 months, underperforming the S&P 500 by 19.7 percentage points [2] - The stock's dividend yield is 1.42%, with a forward P/E ratio of 15.97 and an EV/EBITDA of 8.6 [2] - The company has a five-year revenue CAGR of 11.86% [2] Recent Developments - Lodge Hill Capital sold its entire stake in Freeport-McMoRan during Q2 2025, involving 587,820 shares with an estimated trade value of approximately $22.25 million [1] - This sale represents a complete exit from Freeport-McMoRan, which likely constituted over 5% of Lodge Hill's assets under management [6] - The decision to sell occurred prior to the Trump administration's decision not to include refined copper in a list of copper-related goods to be tariffed [6][8] Market Context - Freeport-McMoRan produces over 70% of the refined copper in the U.S., positioning it to benefit from market dynamics [9] - The company's stock price was negatively impacted by the tariff decisions, which eliminated the 28% premium that COMEX copper traded at above the LME price [9] - Despite recent challenges, Freeport-McMoRan is viewed as an excellently valued stock, aligning with long-term demand for copper driven by electrification trends [10]
Freeport-McMoRan Up 11% in 6 Months: Buy, Sell or Hold the Stock?
ZACKS· 2025-08-21 12:40
Core Viewpoint - Freeport-McMoRan Inc. (FCX) has shown strong performance with an 11.3% increase in shares over the past six months, outperforming both the Zacks Mining - Non Ferrous industry and the S&P 500, despite facing challenges such as higher expected unit costs and weaker sales volumes for copper and gold [1][6][26] Performance Summary - FCX's shares have gained 11.3% in the last six months, compared to a 1.3% rise in the industry and a 7.3% gain in the S&P 500 [1] - The company’s peers, Southern Copper Corporation (SCCO) and BHP Group Limited (BHP), have seen smaller gains of 0.8% and 4.9%, respectively [1] Financial Health - FCX generated operating cash flows of approximately $2.2 billion in Q2 2025 and has distributed $5.2 billion to shareholders since June 30, 2021 [12] - The company ended Q2 with $4.5 billion in cash and cash equivalents, $3 billion available under its revolving credit facility, and $1.5 billion under the PT-FI credit facility [12] - FCX's net debt stands at $1.5 billion, below its targeted range of $3-$4 billion, with a long-term debt-to-capitalization ratio of around 22.9% [13] Production and Expansion Plans - FCX is focused on expanding its copper output, with significant projects underway, including a concentrator expansion at Cerro Verde in Peru, expected to add 600 million pounds of copper annually [9] - The company is also evaluating a large-scale expansion at El Abra in Chile and conducting pre-feasibility studies in Arizona for further growth opportunities [10] Sales Volume and Pricing Trends - FCX's copper sales volumes increased by approximately 9% year-over-year in Q2 to 1,016 million pounds, with gold sales reflecting a 45% year-over-year growth [20] - However, the outlook for Q3 suggests a decline in copper sales volumes to 990 million pounds, indicating a 4% year-over-year decrease [21] Cost and Margin Outlook - FCX's average unit net cash cost per pound of copper decreased to $1.13 in Q2 from $1.73 a year earlier, but is expected to rise to $1.59 in Q3 due to higher costs and lower sales volumes [18][19] - The company anticipates that tariffs could increase the cost of goods purchased in the U.S. by approximately 5%, further impacting margins [19] Earnings Estimates - The Zacks Consensus Estimate for FCX's earnings in 2025 is $1.74, indicating a year-over-year growth of 17.6%, with expected growth of 33.8% in 2026 [22] Valuation - FCX is currently trading at a forward price/earnings ratio of 19.52X, which is a slight premium to the industry average of 19.13X [23] Investment Recommendation - Despite the positives of expansion activities and strong financial health, the recent decline in copper prices and weaker sales volume outlook suggest a cautious approach, recommending to hold the stock for current investors [26]
FCX's Unit Net Cash Costs Fall in Q2: Can It Sustain the Momentum?
ZACKS· 2025-08-19 13:45
Key Takeaways Freeport-McMoRan Inc. (FCX) saw a notable reduction in its average unit net cash cost per pound of copper in the second quarter of 2025 to just $1.13, a sharp improvement from $1.73 a year earlier and well below its guidance of $1.50. The decline was fueled by operational efficiencies, higher gold credits and an uptick in copper sales volumes. Lower costs contributed to stronger profit margins in the quarter. Freeport's outlook for the third quarter, however, suggests higher costs on a sequent ...
金属和矿业公司面临数百万美元关税成本
Wen Hua Cai Jing· 2025-08-19 02:19
Core Viewpoint - The tariffs imposed by President Trump on various trade partners have significantly increased cost pressures and operational challenges for metal and mining companies, particularly affecting copper and aluminum producers while benefiting steel manufacturers [1][5]. Group 1: Impact of Tariffs on Companies - North American aluminum producers, including Alcoa and Rio Tinto, reported millions in tariff costs due to the doubling of aluminum import tariffs from 25% to 50% [2]. - Alcoa incurred $115 million in tariff costs in Q2, as 70% of its Canadian production is sold to the U.S. [3]. - Rio Tinto faced a total cost of $321 million for its Canadian aluminum exports due to U.S. tariffs [3]. - Freeport-McMoRan, the largest copper producer in the U.S., indicated that tariffs would increase costs by 5% [3]. - Caterpillar estimated the tariff impact in Q2 to be between $250 million and $350 million, leading to a 22% decline in adjusted operating profit [3]. Group 2: Steel Industry Perspective - The U.S. steel industry supports the increase in steel import tariffs from 25% to 50%, viewing it as a means to boost domestic demand and stabilize prices [5][6]. - Executives from Cleveland-Cliffs emphasized the necessity of strict enforcement of tariffs to maintain a strong domestic steel industry [7]. - Despite rising raw material costs, steel companies believe they can adjust their supply chains to cope with the changes [7]. - Steel companies expect improved operating conditions and profitability by the second half of 2025 due to stable demand [8]. Group 3: Operational Adjustments and Future Planning - Companies are reassessing their operational decisions in light of the tariff policies [9]. - Teck Resources reported an increase in capital requirements for its Highland Valley copper mine expansion project, raising its budget from CAD 2.1 billion to CAD 2.4 billion, reflecting a 14.3%-16.7% increase due to inflation and rising input costs [10]. - Grupo Mexico is evaluating U.S. investment opportunities, focusing on increasing smelting and refining capacity in response to tariff policies over the next 3-5 years [12].
Final Trades: Freeport-McMoran, American Express, the IYF and the VXX
CNBC Television· 2025-08-14 17:30
Trading Recommendations - Sell November 45 calls for Freeport McMoran (FCX) [1] - Consider American Express, noting the stock is down approximately 10% over the past month [2] - Buy volatility as a just-in-case trade [2] Market Observations - Gen Z and millennials show affinity for American Express [2] - Expect a pickup in M&A activity to benefit private equity and traditional big banks [2]
美股异动丨智利大幅下调2025铜产量预期 铜业股集体下跌
Ge Long Hui· 2025-08-14 15:09
Group 1 - Hudbay Minerals dropped over 4%, while Freeport-McMoRan, Southern Copper, and Ero Copper fell more than 2% [1] - The Chilean National Copper Corporation significantly revised down its copper production growth forecast for 2025, now expecting a 1.5% increase compared to last year's figures, which is only half of the growth predicted in May [1] - The downward revision in production growth is attributed to a decline in output from BHP's Escondida mine (the world's largest copper mine) and the Collahuasi mine operated by Anglo American and Glencore [1]
冶炼厂停产麦克莫兰铜金(FCX.US)急抛10万吨铜精矿 全球铜企迎意外“补给”
Zhi Tong Cai Jing· 2025-08-14 12:51
据报道,麦克莫兰铜金(FCX.US)在印尼自有冶炼厂突发停产后,正以超预期规模出售铜精矿,这为面 临历史性供应紧缺的冶炼企业带来了短期喘息之机。 报道指出,此次异常销售源于麦克莫兰铜金旗下PT Smelting冶炼厂制氧系统突发故障,导致原定四周 的检修期被迫延长。该冶炼厂主要处理来自公司旗舰项目——格拉斯伯格铜金矿的矿石。 据悉,停产事件已释放出约10万吨格拉斯伯格铜精矿库存。由于这批货物需在9月中旬到期的临时出口 许可证期限内完成运输,该公司正加紧安排发运。 分析称,虽然这批供应量对全球铜市影响有限,但在全球冶炼产能激增导致原料争夺白热化的背景下, 将为现货市场注入可观的短期流动性。 ...
美股异动丨铜业股盘前走低 力拓跌近2% 智利大幅下调2025铜产预期
Ge Long Hui A P P· 2025-08-14 09:13
Group 1 - The core viewpoint of the article highlights a collective decline in U.S. copper stocks, with major companies like Rio Tinto and BHP experiencing notable pre-market drops due to revised copper production forecasts from Chile's National Copper Corporation [1] - Chile's National Copper Corporation has significantly lowered its 2025 copper production growth forecast to 1.5%, which is half of the previously predicted 3% increase made in May [1] - The downward revision in production growth is attributed to decreased output from major mines, specifically BHP's Escondida mine and the joint-operated Coya Sur mine by Anglo American and Glencore, which saw a decline in June production [1] Group 2 - Pre-market performance shows Rio Tinto down nearly 2% at $63.570, BHP down 1.4% at $54.730, Freeport-McMoRan down 0.54% at $42.740, and Southern Copper down 0.20% at $99.500 [1] - The article provides specific stock price changes and percentages, indicating a broader trend of declining investor confidence in copper-related equities amid production concerns [1]