The Market Is Overreacting to the Export Ban on This Copper Miner
Last week, the Indonesian Ministry of Finance announced a punitive tax on the export of ore concentrate mined within its country. Considering Freeport-McMoRan (NYSE: FCX ) operates a massive mining facility in the country that produces substantial copper and gold ore, the impact is very concerning to the bottom line for shareholders. The decree also impacts mining operations of Newmont Mining (NYSE: NEM ) so Freeport-McMoRan will have some extra help in lobbying for a reprisal of the proposed new law.
For numerous reasons highlighted in the recent earnings conference call, investors shouldn't be so quick to dump the stock. Jefferies recently named Freeport-McMoRan a top franchise pick, and this the type of scenario where investors can pick up long-term winners at bargain prices.
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