Latest news with #FreeportMcMoRan
Bloomberg
3 days ago
- Business
- Bloomberg
The US Has More Copper Than China But No Way to Refine All of It
Freeport-McMoRan Inc.'s only US copper smelter—a hulking metal-processing facility at the edge of an old Arizona mining town—spits neon flames from its furnace like an industrial volcano. Here, hundreds of employees work around the clock to transform vats of concentrated molten metal into neat, purified slabs, which are then shipped to a refinery in El Paso, Texas, the next step on their cross-country journey to become coils for electric wiring. On a sweltering day in May, plant operators are decked out in heat suits and fire-resistant visors, transferring heaps of metallic powder into industrial-scale ovens with machines that look like soup ladles for giants. It's a rare example of entirely made-in-America copper, an almost extinct part of the supply chain that President Donald Trump is hell-bent on bringing back.
Bloomberg
10-06-2025
- Business
- Bloomberg
Freeport CEO Says Tariffs Threaten to Hinder US Copper Mining
The threat of US levies on copper imports has been a boon for Freeport-McMoRan Inc., with North America's top producer cashing in on selling the metal at a premium. Still, the firm's top boss warns that broader tariffs could hurt an industry President Donald Trump is trying to help. 'If global growth is disrupted, that could lead to an impact on copper prices,' Chief Executive Officer Kathleen Quirk said in an interview at Freeport's Phoenix headquarters. 'Ironically, if we're trying to build up the US copper industry, slowing GDP growth and inflation could put a lot of pressure on mines here.'
Forbes
09-06-2025
- Business
- Forbes
Is Freeport Overvalued At $42?
Freeport-McMoRan (NYSE: FCX), has experienced an increase of approximately 12% over the past month, in contrast to the S&P500 index, which has risen about 5%. What is driving this surge? The prices of copper have been trending upwards, spurred by global economic recovery and rising demand, particularly from industries such as construction and renewable energy. As a prominent copper producer, Freeport-McMoRan is poised to benefit directly from these elevated copper prices. However, there's a catch: Freeport is trading at 33 times earnings and 9 times free cash flow. When you invert that, it results in a meager 3% earnings yield. By way of comparison, Charles Schwab (NYSE:SCHW), a firm in financial services, operates at a lower earnings multiple of 25 times and is experiencing revenue growth that is more than double. Freeport reported a revenue growth of 4.5% over the latest twelve months, whereas SCHW's revenues grew by 10.8%. So indeed, FCX is strategically positioned to capitalize on the growing demand for copper with the rise of artificial intelligence. But at $42 per share, this represents a high valuation pursuing a growth narrative that simply isn't aligned. And when the growth fails to meet expectations? That's when reality sets in. See Buy or Sell Freeport stock? During the 2008 global financial crisis, Freeport shares plummeted nearly 87%! In the initial phases of the Covid pandemic in 2020, they fell by 61%. Furthermore, in 2022, amidst soaring inflation and consumer pressures, Freeport faced another setback with a 52% drop. Historical data reveals that the stock has been more adversely affected than the index. The emergence of artificial intelligence and related technologies has driven up the demand for copper, which is crucial for data centers and electrical components. This trend fosters a positive outlook for copper producers like Freeport-McMoRan. Nevertheless, the broader landscape is less exhilarating. In the first quarter of 2025, Freeport reported a declining net income that fell from $473 million to $352 million year-over-year. Freeport's elevated valuation relies on the anticipation that discussions regarding potential tariffs on copper imports, aimed at enhancing domestic production, if enforced, will be beneficial in the long run. The company recorded net income attributable to common stock of $352 million, or $0.24 per share, a decline from $473 million, or $0.32 per share, in Q1 2024. Revenue for the quarter was $5.73 billion, down from $6.32 billion during the same period last year. Overall copper production decreased by 20% year-over-year to 868 million pounds, primarily due to a significant maintenance project at the Grasberg mine in Indonesia. Freeport has affirmed its full-year 2025 guidance, projecting copper sales of around 4.0 billion pounds, gold sales of 1.6 million ounces (exceeding earlier projections), and molybdenum sales of 88 million pounds. The company anticipates net cash costs to improve to $1.50 per pound, significantly reduced from the $2.07 per pound reported in Q1. Despite a challenging first quarter due to a temporary disruption at its Indonesian smelter, Freeport's copper sales surpassed expectations, benefiting from robust U.S. operations and increased market premiums. The company remains committed to long-term growth, with $5 billion allocated for capital expenditures in 2025 for smelter projects, mine expansions, and sustainability efforts. FCX has potential upside supported by rising copper prices, structural demand growth, operational recovery, and a robust financial position. It represents a leveraged investment in the copper megatrend. Investing in individual stocks comes with inherent risks. However, the Trefis High Quality (HQ) Portfolio, featuring a selection of 30 stocks, has consistently outperformed the S&P 500 over the past 4-year period. What accounts for this? As a collective group, HQ Portfolio stocks provided superior returns with lower risk compared to the benchmark index, resulting in a steadier performance as demonstrated in HQ Portfolio performance metrics.
Globe and Mail
22-05-2025
- Business
- Globe and Mail
3 American Companies Investors Need to Know Amid Trump's Tariff Wars
It's difficult to predict precisely what the tariff landscape will look like when the dust settles on the trade conflict, but we can say some things with a high degree of certainty. The current U.S. administration is serious about improving trading conditions for American companies and workers. That counts for both exporters and American companies competing domestically. In addition, President Trump is trying to encourage self-sufficiency in energy and key minerals and metals. That's great news for companies like Freeport-McMoran (NYSE: FCX), Whirlpool (NYSE: WHR), and Cheniere Energy (NYSE: LNG). Here's why. Freeport-McMoran: Helping secure a critical metal for the U.S. The miner dominates the domestic copper market. It provides 70% of the domestically sourced copper for U.S. refined production. That said, the U.S. imports 45% of its refined copper consumption. If the U.S. is going to reduce its dependency on foreign refined copper, Freeport-McMoran will play a significant role. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » There's increasing support for such an approach, with the U.S. Chamber of Commerce writing to the Commerce Department advocating for copper to be included in the list of critical metals and to receive tax credits under the existing section 45X tax credits, and for immediate action to encourage minerals and metals production in the U.S. The good news is Freeport-McMoran is ideally placed to meet domestic demand with potential brownfield projects in Bagdad and Lone Star, Arizona, as well as an exciting leaching initiative to extract copper from existing U.S. stockpiles. In addition, President Trump has requested an investigation of copper imports, which could lead to tariffs on them. The mere threat of tariffs has encouraged the market to pay a premium for U.S. copper of around 13%. Freeport's management estimates that this premium were to remain through the year, it would lead to an $800 million "bottom line" financial benefit. If a tariff of, say, 25% is imposed, Freeport will benefit even more. While none of these events can be guaranteed, the current administration is biased toward supporting investment in copper and domestic provision of it, which is highly likely to improve Freeport-McMoran's profitability. Whirlpool: Evening out the playing field Appliance maker Whirlpool trades with a massive dividend yield, but its $380 million dividend may not prove sustainable if current market pressures persist. Persistently high interest rates continue to pressure the housing market and, in turn, higher-margin discretionary purchases of domestic appliances. Moreover, its competitive position was hit in late 2024 and early 2025 as Asian competitors pushed through imports to the U.S. in anticipation of tariffs. In addition, the pause on tariffs recently announced with China may encourage more near-term imports. With $4.8 billion in long-term debt, and its forecast for $500 million to $600 million in free cash flow (FCF) in doubt, Whirlpool's dividend payout is already questionable. That said, management believes the company will be a net winner from tariffs, not least if the administration closes a loophole that allows Asian competitors not to pay tariffs on the Chinese steel they use in their products. This would result in a $70-per-product cost disadvantage (and a $150 difference in the retail margin) for Whirlpool on large major appliances such as washing machines. On the last earnings call, CEO Marc Bitzer said he had "a high degree of confidence that the new administration will close these loopholes." That would be a significant win for Whirlpool, and if management decides to reset investor expectations, possibly after a dividend cut, Whirlpool could be an excellent stock to invest in. Cheniere Energy: Exporting U.S. energy The Biden administration paused approvals for applications to export liquefied natural gas (LNG) from new projects in 2024. The Trump administration immediately ordered their resumption upon taking office. The difference is stark, and it's good news for Cheniere Energy, the largest LNG producer in the U.S. The company owns a 48.6% stake in Cheniere Energy Partners (owners of the major LNG terminal in Sabine Pass, Louisiana). In addition, Cheniere Energy owns the Corpus Christi LNG Terminal in Texas, which it continues to invest in to expand capacity. The company's business model involves purchasing natural gas in the North American market (which the Trump administration wants to encourage) and processing it into LNG for export worldwide. Again, it's no secret that President Trump is actively promoting LNG exports around the globe. Stocks to buy The point of tariffs is to improve U.S. companies' competitive positioning, whether domestically or in international markets. However, the current administration can also do this by encouraging investment in copper, closing loopholes that hurt Whirlpool's competitive positioning, and encouraging LNG investment and export markets. If these things happen, the stocks discussed above will be long-term winners. Should you invest $1,000 in Freeport-McMoRan right now? Before you buy stock in Freeport-McMoRan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Freeport-McMoRan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor 's total average return is975% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
19-05-2025
- Business
- Yahoo
It's Time to Invest in "America's Copper Champion"
Freeport-McMoran is the dominant player in the U.S. copper market. Potential projects make it a key player in America's copper future. The stock's valuation is compelling based on the current copper price. 10 stocks we like better than Freeport-McMoRan › While the tariff situation remains dynamic, one thing is crystal clear: The current administration wants to support domestic provision of key metals and minerals, including copper. That's excellent news for Freeport-McMoRan (NYSE: FCX), which calls itself "America's Copper Champion." Here's why the stock is a great buy right now. Copper is critical to the modern economy. It's a crucial element in the electrification-of-everything trend, which encompasses electric vehicles, the Internet of Everything, renewable energy, data centers, and the electrical transmission and distribution networks needed to support the growing electrification of the economy. Whatever the tariff landscape ends up looking like, the Trump administration is likely to support the domestic production of copper, and Freeport-McMoran will play a key role. The point isn't lost on Freeport's management, and it took the time to highlight its role as the key player in domestic production -- the miner supplies 70% of domestically sourced copper for U.S. refining. So if there's a hefty premium attached to the U.S. price of copper compared to the international price, Freeport will benefit. That's precisely what's happened in 2025, as traders have bid up the U.S. price of copper relative to the international price (traded on the London Metal Exchange) in expectation of potential tariffs on copper. Indeed, Freeport's CEO, Kathleen Quirk, noted that the premium at the time of the earnings release in late April "implies an approximate $800 million bottom line annual financial benefit on Freeport's U.S. copper sales." Moreover, the idea of Freeport being America's copper champion is supported by two other reasons. First, it has a low-cost leaching initiative to recover copper from existing stockpiles in the U.S., with which it can significantly improve copper production and sales without expanding an existing mining operation. To put the leaching initiative into context, Freeport expects to sell 4 billion pounds of copper in 2025 (with 35% currently produced in the U.S.) , and the leaching initiative is expected to hit a run rate of about 200 million pounds by the end of the year, rising to between 300 million and 400 million pounds by the end of 2026 and then 800 million pounds by the end of 2030. These are highly significant figures considering Freeport's total copper production for 2025 and the 307 million pounds produced in the U.S. in the first quarter. The second reason is that Freeport already has substantive brownfield (implying they won't need substantive infrastructure built around them) expansion projects in the U.S. in its pipeline, specifically in Bagdad and Safford in Arizona. While expansion projects take time and will require investment, management believes it has the long-term potential to increase copper production by 2.5 billion pounds over time, with 47% of that figure coming from the U.S. and the rest from Indonesia and Chile. Freeport will also benefit if copper is made eligible for existing Section 45x tax credits (providing for a credit equivalent to 10% of production costs in the U.S.). That would encourage new investment and production in the U.S., and the U.S. Chamber of Commerce is advocating for it. While there's still uncertainty over the direction of the global economy (copper is a metal highly sensitive to growth) and ultimately the price of copper, the stock's valuation is highly attractive. For example, management estimates it will generate $11 billion in earnings before interest, taxation, depreciation, and amortization (EBITDA) in 2026/2027 with a copper price of $4 per pound and $15 billion with a copper price of $5 per pound. Plugging in the current price of $4.66 produces a back-of-the-envelope figure of $13.6 billion compared to the current market capitalization of $56.6 billion and enterprise value (market cap plus net debt) of $61.71 billion. That looks cheap for a company helping the U.S. secure a metal essential to the modern economy. Before you buy stock in Freeport-McMoRan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Freeport-McMoRan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. It's Time to Invest in "America's Copper Champion" was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
