Topic: How To Invest

Pat, what do think about the following copper stock: Freeport-McMoRan? Thanks.

Article Excerpt

A: Freeport-McMoRan Inc., $38.07, symbol FCX on New York (Shares outstanding: 1.4 billion; Market cap: $53.6 billion; Resources sector; TSINetwork Rating: Average;, is one of the world’s largest publicly traded copper producers. As well, it also produces gold, molybdenum, and other commodities. The company owns mines in North America, South America, and Indonesia. In late October 2022, Freeport-McMoRan reportedly entered discussions with Grupo Mexico SAB for the purchase of its Arizona copper smelter (which extracts copper from raw ore). Freeport-McMoRan has five copper mines in Arizona, so adding to its limited smelter capacity in the state would help it increase its U.S. production and sales. Right now, the company’s existing Arizona smelter processes a significant portion of the copper concentrate produced at its five local mines. While that smelter has been operating for over 100 years and has been upgraded numerous times, it would struggle to meet all of the company’s future needs in Arizona. Adding Grupo Mexico’s Arizona smelter would further…