|Bid||13.89 x 47300|
|Ask||0.00 x 2200|
|Day's Range||13.53 - 14.02|
|52 Week Range||13.22 - 20.25|
|PE Ratio (TTM)||7.04|
|Earnings Date||Oct 23, 2018 - Oct 29, 2018|
|Forward Dividend & Yield||0.20 (1.30%)|
|1y Target Est||19.26|
Like positions in the SPDR Gold Shares ETF (GLD), institutional holdings in the VanEck Vectors Gold Miners ETF (GDX) fell sequentially during the second quarter. We discussed in the previous article how gold prices fell in Q2 2018. While gold miners are usually a leveraged play on gold prices, they gained 1.5% on average in the second quarter as gold fell.
Metal and mining stocks have been on a literal freefall in August. In this part, we’ll discuss the outlook for metal stocks after several stocks traded close to their 52-week lows.
As we noted in the previous part, metals and mining stocks like Alcoa (AA) and Freeport-McMoRan (FCX) fell sharply on August 15. US steel stocks like U.S. Steel Corporation (X) and AK Steel (AKS) also saw selling pressure. In this part, we’ll see what has been weighing on metal and mining stocks.
Metals and mining stocks are deeply in the red today. Freeport-McMoRan (FCX) and Alcoa (AA) have fallen 6.6% and 4.4%, respectively, as of 10:10 AM EST. In the steel space, U.S. Steel Corporation (X) and AK Steel (AKS) have fallen 4.1% and 3.3%, respectively.
Geopolitical risks have been significant for equity investors this year. Toward the end of 2017, we saw some upward momentum in the equity markets. Metals and mining stocks such as Freeport-McMoRan (FCX) were among the biggest gainers in December 2017 as the bulls pitched the idea of synchronized global growth for 2018.
So far in this series, we have discussed Freeport-McMoRan’s (FCX) bearish drivers. In this part, we’ll discuss Freeport’s bullish drivers.
In July, Freeport-McMoRan (FCX) announced a “Heads of Agreement with the Indonesian state-owned enterprise PT Indonesia Asahan Aluminium (Inalum) and PT Freeport Indonesia’s (or PT-FI) joint venture partner Rio Tinto.” Under the agreement, Rio Tinto (RIO) would receive $3.5 billion from Inalum for its 40% stake in PT-FI. Freeport-McMoRan will receive $350 million for roughly a 5.5% stake in PT-FI.
As we noted previously, copper miners including Freeport-McMoRan (FCX), Glencore (GLEN-L), and Southern Copper (SCCO) have fallen this year. The fall in copper miners’ stock prices has been led by weak copper prices. Although copper started the year on a positive note after sharp gains in December 2017, trade war concerns have taken a toll on copper.
So far, Freeport-McMoRan (FCX) is having a terrible year. Based on the closing prices on August 9, the stock has lost 18.8% in 2018. Other copper miners have also seen losing investors’ interest amid falling copper prices. Southern Copper (SCCO) and Antofagasta (ANTO) have fallen 2.5% and 2.9%, respectively, in 2018. Glencore (GLEN-L) received a subpoena from the Department of Justice earlier this year. Glencore has fallen 15.3% year-to-date.
China is the world’s biggest copper importer. Copper mining is concentrated in Latin America, and companies including Southern Copper (SCCO) and Antofagasta (ANTO) operate copper mines in the region. Copper, which is considered an indicator of the global economy, is languishing near the $6,000 per metric ton level after having topped $7,000 per metric ton earlier this year.
China released its trade data for July yesterday. China’s exports rose 12.0% YoY, while its imports rose 27.3%. In June, China’s exports rose 11.3% YoY, while its imports rose 14.1%. China’s July trade data showed improvement as compared to June and was better than expected.
NEW YORK, July 31, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of Amazon.com, ...
The second-quarter earnings season is in full swing. Along with watching Q2 results, markets have been closely following different companies’ views on US-China trade tension, which has led to US steel prices and physical aluminum premiums spiking due to Section 232 tariffs and China imposing tariffs on US imports such as agricultural products and automobiles.
NEW YORK, July 30, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of Facebook, ...
Meanwhile, copper mining peers Southern Copper (SCCO) and Glencore (GLEN-L) gained 2.1% and 1.3%, respectively, and the Dow Jones Industrial Average (DIA) rose 0.68%. During its earnings call, Freeport announced new operating plans in Indonesia, which could lower production in 2019 and 2020. Freeport also touched upon copper prices’ decline amid trade war fears.
Freeport-McMoRan (FCX) released its second-quarter results yesterday along with Glencore (GLEN-L) and Antofagasta (ANTO), resulting in a busy day for copper investors. BHP (BHP) and Rio Tinto (RIO) released their production reports earlier this month.
President Trump’s tariffs, which he termed “the greatest” earlier this week, have created a divergence in business sentiments. While US steel companies are upbeat about the tariffs and have announced plant restarts and fresh investments, some of the other sectors have been relooking their business plans. Part of the collateral damage from the trade war has been copper.
Freeport's (FCX) strong Q2 results benefit from continued focus on productivity, capital discipline and cost management along with strong performance from global operations.
Freeport-McMoRan (FCX), the largest US-based copper miner, released its second-quarter earnings today. Antofagasta (ANTO) and Glencore (GLNCY) also reported their quarterly production data today. BHP Billiton (BHP) and Rio Tinto (RIO) have already released their quarterly production data.
Freeport-McMoRan (FCX) delivered earnings and revenue surprises of 7.41% and 7.19%, respectively, for the quarter ended June 2018. Do the numbers hold clues to what lies ahead for the stock?
Freeport-McMoRan, the largest copper miner in the U.S., is set to report second-quarter results before the market opens Wednesday.
Freeport-McMoRan (FCX) is slated to release its Q2 2018 earnings on July 25, conducting its earnings call the same day. In the previous article, we discussed analysts’ projections for Freeport’s second-quarter earnings. In this article, we’ll look at what markets might watch for in Freeport’s earnings call.