Out Fox The $treet

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. Read the full article here . Disclosure: Long FCX. Please review the disclaimer page for more details. 

Last week, BHP Billiton (BHP) officially announced the delay of the major expansion project at Olympic Dam. While not a complete surprise due to falling commodity prices and escalating costs in Australia, a prime beneficiary in Freeport McMoRan Copper & Gold (FCX) hasn't gained much from the announcement. Freeport-McMoRan is a leading international mining company with geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. The portfolio of assets includes the Grasberg minerals district in Indonesia, the world's largest copper and gold mine in terms of recoverable reserves; significant mining operations in North America and the Cerro Verde and El Abra operations in South America; and the Tenke Fungurume minerals district in the Democratic Republic of the Congo. Read the full article at Seeking Alpha. Disclosure: Long FCX. Please review the disclaimer page for more details. 

Anybody not under a rock that follows the financial world has heard about the proposed plans in Australia to tax mining profits by 40%. Not but a few weeks old and we've already seen several signs of the unintended consequences of the taxes. First, BHP Biliton CEO discussed the likelihood of putting projects on hold. Second, Peabody Energy (BTU) lowered its bid for MacArthur Coal in Australia. Stone Fox Capital's read: Buy companies with assets outside Australia in particular we've bought Freeport-McMoRan (FCX), Massey Energy (MEE), and US Steel (X). More on them later. Our reasoning is that the tax will limit the supply especially from new projects in Australia with limited impact to demand. It clearly makes assets outside Australia more attractive. In the end, the announcements this weekend could go a long way to pressure the government to ratchet back the tax plans. It clearly places short term risk around projects. BHP CEO Kloppers made it clear over the weekend that th...