The investment case for the copper miner is based on long-term demand and its ability to expand supply.After being above $50 recently, copper, gold, and molybdenum miner Freeport McMoRan's (FCX 1.27%) stock has dipped to about $46.60 at the time of writing. Frankly, this looks like a good buying opportunity in a stock with plenty of long-term potential upside. Here are four reasons why.Valuation remains attractiveRead no further if you aren't bullish or at least agnostic about the outlook for the price of c ...

Company Overview - The company's total copper production on a 100% basis has remained nearly unchanged over a significant period, indicating stability in its production capacity [1] Analyst Background - The analyst, Hector Nieva Rollon, is a certified advisor accredited by CFA Society Spain and has extensive experience in investment analysis, focusing on macro-value-oriented approaches [1] - Hector has a strong background in professional services, with over a decade of experience across various industries, including hospitality, information technology, education, and automotive [1] - He has successfully cleared all three levels of the CFA curriculum at the first attempt, achieving results in the 90th percentile, and is now returning to share investment insights [1] Disclosure - The analyst holds a beneficial long position in the company's shares through stock ownership, options, or other derivatives [2] - The article expresses the analyst's own opinions and is not influenced by any compensation or business relationships with the mentioned company [2]

Earlier this week, Freeport-McMoRan Inc. (NYSE: FCX ) reported its Q3 2024 results and the market did not seem impressed. The stock is actually down by 1.3% over the past 5 trading days and is up nearly 13% on a year-to-date basis Vladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. Analyst's Disclo ...

Financial Data and Key Metrics - The company generated $2.7 billion in EBITDA and $1.9 billion in operating cash flows during the quarter [4] - Copper prices ranged between $3.91 and $4.47 per pound on the LME and $3.94 to $4.66 per pound on the COMEX, with an average settlement price of $4.18 per pound on the LME [5] - The company expects its average unit net cash cost for 2024 to approximate $1.58 per pound, below the July estimate of $1.63 per pound [14] - Annual EBITDA at $4 copper would range from $11 billion to approximately $15 billion per annum at $5 copper, with operating cash flows ranging from over $7 billion at $4 copper to $10.5 billion at $5 copper [14] Business Line Performance - In the US, the company is improving efficiencies and cost performance to mitigate the impact of lower grades, with positive trends in asset efficiency and equipment reliability [7] - In South America, the Cerro Verde operation posted a solid quarter with mill throughput exceeding 420,000 metric tons of ore per day and improved mill recovery [8] - In Indonesia, the company achieved a unit net cash credit of $0.71 per pound, with strong volumes of both copper and gold from large-scale underground ore bodies [8] Market Performance - In the US, strong demand for power cable and building wire associated with investments in electrical infrastructure and AI data centers offset weakness in traditional sectors like residential construction and autos [6] - In China, demand for copper continues to grow despite a weak property sector, supported by significant investments in the electrical grid and growth in electric vehicle production [6] Strategic Direction and Industry Competition - The company is focused on organic growth, leveraging its large reserve and resource position, and advancing innovative leach technologies to add low-cost copper volumes [4] - The company is pursuing brownfield expansion opportunities in the US, Chile, and Indonesia, with projects like Bagdad, Safford Lone Star, El Abra, and Kucing Liar [12][13] - The company is well-positioned to benefit from the fundamental outlook for copper, driven by increased demand from electrification, renewable energy, and technology infrastructure [6] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about the markets it serves, its portfolio of high-quality copper assets, and the future prospects for strong cash flow generation [5] - The company is focused on restoring smelter operations in Indonesia following a fire incident, with repair costs expected to be covered by insurance [9] - The company is advancing its innovative leach initiative, aiming to scale production to 300-400 million pounds per annum in the next couple of years, with a long-term goal of 800 million pounds per annum [10][11] Other Important Information - The company purchased 5.3 million shares of Cerro Verde, increasing its ownership from 53.6% to 55% [5] - Capital expenditures for 2024 are forecast at $3.6 billion, with an estimate of $4.2 billion for 2025 [15] - The company has distributed $4.5 billion to shareholders through dividends and share purchases since implementing its financial policy framework [16] Q&A Session Summary Question: Impact of the smelter fire in Indonesia and insurance coverage - The company confirmed that the insurance policy covers repair costs but does not include business interruption coverage. The company is working with the government to ensure continuity of concentrate exports during the outage [17] Question: Restricted cash policy in Indonesia - The restricted cash policy, which requires holding 30% of export proceeds in Indonesian banks for 90 days, applies to all exports and is expected to continue beyond the smelter startup [18] Question: Timeline for smelter repairs and potential delays - The company is still assessing the damage and lead times for replacement equipment, with no specific timeline yet provided for repairs [19] Question: Potential for further stake increases in Cerro Verde - The company is interested in purchasing additional shares of Cerro Verde if opportunities arise, but it depends on willing sellers [20] Question: Filing for IUPK extension in Indonesia - The company is working with the new government to file for an IUPK extension, with confidence that it will happen [22] Question: Pre-feasibility study for Safford Lone Star - The company is studying a brownfield expansion at Safford Lone Star, with the potential to more than double current production levels to 600 million pounds per annum [23][24] Question: Cost reduction initiatives in North America - The company is focused on improving efficiencies, reducing contractor costs, and enhancing equipment reliability to lower unit costs in North America [26][27][28] Question: Capital allocation and potential for share buybacks - The company follows a framework for cash allocation, with 50% of available cash flow after CapEx allocated to shareholder returns, including potential share buybacks [37] Question: M&A strategy - While M&A is not fundamental to the company's strategy, it remains open to opportunities that align with its focus on organic growth [39] Question: Capital allocation for major projects like Bagdad and El Abra - The company is evaluating capital allocation across its portfolio, with Bagdad being a near-term executable project, while Safford Lone Star and El Abra are longer-term opportunities [41][42] Question: 2025 CapEx outlook - The company does not anticipate significant changes to its 2025 CapEx plans, with investments focused on derisking projects like Bagdad [43] Question: Updates on smaller discretionary projects - The company provided updates on projects like the Lone Star oxide expansion, Grasberg mill improvements, and Atlantic Copper recycling, with most nearing completion or expected to be operational by next year [45] Question: Progress on cleanup work at Grasberg - The company reported strong progress at Grasberg, with operations exceeding forecasts and grades performing well [46]

Core Viewpoint - Freeport-McMoRan Inc. (FCX) reported a profit increase in Q3 2024, driven by higher copper and gold prices, despite missing adjusted earnings estimates [1][2]. Financial Performance - FCX recorded profits attributable to common stock of $526 million or 36 cents per share, a 16% increase from $454 million or 31 cents in the same quarter last year [1]. - Adjusted earnings per share were 38 cents, below the Zacks Consensus Estimate of 40 cents [1]. - Revenues rose approximately 17% year over year to $6,790 million, exceeding the Zacks Consensus Estimate of $6,459.6 million [1]. Operational Highlights - Copper production decreased by about 3% year over year to 1,051 million pounds, slightly above the estimate of 1,047 million pounds [2]. - Consolidated sales of copper fell roughly 7% year over year to 1,035 million pounds, surpassing the estimate of 1,010 million pounds [2]. - Gold sales increased by around 40% year over year to 558,000 ounces, while molybdenum sales decreased from 20 million pounds to 19 million pounds [2]. Pricing and Costs - The average realized copper price was $4.30 per pound, up approximately 13% year over year, exceeding the estimate of $4.28 [3]. - The average realized price for gold rose around 35% year over year to $2,568 per ounce, above the estimate of $2,367 [3]. - Consolidated average unit net cash costs per pound of copper were $1.39, down from $1.73 a year ago and lower than the estimate of $1.71 [2]. Financial Position - Cash and cash equivalents at the end of the quarter were $5 billion, a decrease of about 5% from the prior quarter [4]. - Total debt increased to $9,679 million, up around 3% sequentially [4]. - Cash flows from operations were approximately $1.9 billion, reflecting a 51% year-over-year increase [4]. Guidance - FCX expects consolidated sales volumes for 2024 to be around 4.1 billion pounds of copper, 1.8 million ounces of gold, and 80 million pounds of molybdenum [5]. - Projected unit net cash costs for copper are expected to average $1.58 per pound for 2024, with a forecast of $1.72 per pound for Q4 [5]. - Operating cash flows are anticipated to be around $6.8 billion for 2024, with capital expenditures projected at approximately $4.6 billion [5]. Stock Performance - FCX shares have increased by 43.1% over the past year, compared to a 50% rise in the Zacks Mining - Non Ferrous industry [6].

Freeport-McMoRan (FCX) came out with quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5%. A quarter ago, it was expected that this mining company would post earnings of $0.39 per share when it actually produced earnings of $0.46, delivering a surprise of 17.95%. Over the last four quarters, the co ...

https://files.reportify.cc/media/production/FCXd2ef3df52e2683146b22dc64a412be69.jpg Freeport Reports Third-Quarter and Nine-Month 2024 Results • Strong operating performance ◦ Third-quarter 2024 copper and gold sales volumes above July 2024 estimates ◦ Third-quarter 2024 unit net cash costs below July 2024 estimate and third-quarter 2023 • Progressing options for long-term organic growth • Favorable market fundamentals and outlook ▪ Net income attributable to common stock in third-quarter 2024 totaled $526 ...

Freeport-McMoRan Inc. (FCX) is set to release third-quarter 2024 results before the opening bell on Oct. 22. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The mining giant's earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 21.7%, on average. FCX is expected to have gained from higher copper prices and improved sales volumes in the third quarter. FCX stock has gained 36.1% in the past year com ...

The outlook for the price of copper is excellent, and this stock is ideally positioned to benefit. Copper miner Freeport McMoRan (FCX 1.06%) has significant potential to soar over the coming decade, in line with a rise in the price of copper and the company's ability to expand production. Here's why. Demand and supply for copper support higher prices The case for copper often relies on assumptions about future demand. The metal is a vital part of the global economy due to its uses across a wide range of sec ...

Core Viewpoint - Freeport-McMoRan is positioned to benefit from the increasing demand for copper driven by the global shift towards electrification and renewable energy sources [1][3][4] Reasons to Buy - Copper is an essential industrial metal with diverse applications, particularly in electrical conductivity, making it crucial for the growing use of electricity in various sectors, including electric vehicles and renewable energy [2][3] - The price of copper has more than doubled since its lowest point in 2020, indicating strong demand and potential for further price increases [3][4] Reasons to Hold - Freeport-McMoRan's stock has increased over 750% since its low in March 2020, suggesting that much of the positive outlook may already be reflected in the stock price [5] - The company offers a modest dividend yield of 1.2%, which includes a variable component that rewards shareholders when copper prices are high, providing an additional incentive to hold the stock [6] Reasons to Sell - The volatility of commodity prices poses a risk, as external factors such as supply disruptions or government interventions can lead to significant price changes in copper [7][8] - Investors who have realized substantial gains may consider locking in profits, especially if there are concerns about a potential downturn in copper prices [8][9] Overall Assessment - Freeport-McMoRan's performance is closely tied to copper prices, and belief in the long-term demand for copper is essential for investment decisions regarding the company [10]