Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, November 11, 2022

Article Excerpt

FREEPORT-MCMORAN INC., $38.04, symbol FCX on New York, is one of the world’s largest publicly traded copper producers. 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. Freeport-McMoRan has five copper mines in Arizona, so purchasing a smelter in the state would help it increase its U.S. production and sales. In the quarter ended September 30, 2022, the company’s revenue decreased 18.0%, to $5.0 billion from $6.1 billion a year earlier. Sales were lower due to declining commodity prices since last year. In the latest quarter, copper prices were 17% lower than they were a year earlier. Excluding one-time items, Freeport-McMoRan’s earnings fell 71.6%, to $375 million, or $0.26 a share, from $1.32 billion, or $0.89. After dropping to as low as $2.17 U.S. per pound in mid-March 2020, copper rose steadily to a record price of $5.02 on March 6, 2022…