Freeport-McMoRan Inc. (NASDAQ: FCX)
Freeport-McMoRan Inc. (FCX), a natural resource company spiked up over 17% as of late afternoon trading on Wednesday. FCX stock is spiking up on the announcement of the company’s plan for debt reduction. FCX announced a plan to target $5 billion to $10 billion in divestitures. Investors seem to feel that this is the right move for the company and are anticipating a rise in FCX stock price.
Freeport-McMoRan Inc. CEO’s Comments
Richard C. Adkerson, President and Chief Executive Officer, said, “As we enter 2016, our clear and immediate objective is to restore FCX’s balance sheet and position the Company appropriately to enhance shareholder value in the current market environment. We are responding swiftly and decisively to achieve this objective. Our high-quality asset base provides opportunities for significant debt reduction while retaining a substantial business with attractive low-cost, long-lived reserves and resources that will enable our shareholders to benefit from improved conditions in the future. We achieved several important operational milestones during the fourth quarter while taking aggressive actions to adjust our plans in response to the decline in prices for our primary products.” Business Wire
FCX Technical Analysis
FCX opened yesterday at $4.06, down from the previous days close of $4.20, which is a 3% decrease in price. As of late afternoon trading on Wednesday FCX is up over 17% trading at $4.92. Taking a look at the daily chart we can see that the last time FCX traded above this price level was on January 8th when it traded at $5.41. Taking a closer look at the daily chart we can see that FCX has been on an overall decline dating back to May 4th when it traded at its 52 week high price of $23.97. Right now FCX is trading near its 52 week low price of $3.52, so there is a lot of room for growth for any sustained rally. FCX has a float of 1.04 billion shares and is trading 1.5 times the normal daily trading volume. This stock has been beaten up all year and may offer some value at the current price level. I would like to see the stock close above the $4.50 price level and use that as a possible entry point on a move to $6.
Freeport-McMoRan Inc., a natural resource company, engages in the acquisition of mineral assets, and oil and natural gas resources. It primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, as well as oil and gas. The company operates through North America Copper Mines; South America Mining; Indonesia Mining; Africa Mining; Molybdenum Mines; United States (U.S.) Oil and Gas Operations; Rod & Refining; and Atlantic Copper Smelting & Refining segments. It holds interests in various mines located in the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, Miami, Chino, Tyrone, Henderson, and Climax in North America; Cerro Verde and El Abra in South America; and Tenke Fungurume minerals district in Africa. The companys oil and gas operations include oil production facilities in the Deepwater Gulf of Mexico (GOM); oil production facilities onshore and offshore California; onshore natural gas resources in the Haynesville shale play in Louisiana; natural gas production from the Madden area in central Wyoming; and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend located in the shallow waters of the GOM and onshore in South Louisiana. As of December 31, 2014, its consolidated recoverable proven and probable mineral reserves included 103.5 billion pounds of copper, 28.5 million ounces of gold, 3.11 billion pounds of molybdenum, 282.9 million ounces of silver, and 0.85 billion pounds of cobalt; and its estimated proved oil and natural gas reserves totaled 390 million barrels of oil equivalents. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was founded in 1987 and is headquartered in Phoenix, Arizona. Yahoo Finance