Sunday, February 7, 2016

Freeport-McMoRan: Keep Paying Attention To Copper

Not too surprisingly, Freeport-McMoRan (FCX) has rallied while oil keeps plunging. Too many investors confuse the stock for the oil operations, but the company is still primarily focused on copper. The company will not only survive, but thrive if copper prices stay above $2/lb.


At the current price of roughly $2.10/lb, Freeport-McMoRan should be free cash flow positive. As I highlighted in my last Seeking Alpha article, the risks of bankruptcy were largely overblown.


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