Gordon Reid Freeport McMoran Copper & Gold FCX-N PAST TOP PICK Aug 19, 2025

It's fallen off a cliff since tariffs. Watch FCX as an economic indicator, but would not buy this. At best, this is a short-term trade, but he's a long-term investor.

Taken a big hit. Divergence between copper prices and company's performance. Generational opportunity to buy a company like this. Secularly, we're using more and more copper for electrification. Analysts see 7-8% compound  growth rate in copper usage over next 10 years. Yield is 2.01%.

The negative is that 50% of copper is used by China. If tariffs don't get sorted out, something's gotta give. It's not easy to bring mines on quickly. Good risk/reward at current levels.

Obvious way to play the copper sector. Copper and gold. Significant breakout in the price of copper. Great dividend growth stock over time. Big cash generator.

Copper stocks are very volatile. He uses stop losses on all positions, so ended up coming out of this one. Re-entered about 2 months ago. Should generate a lot of cash longer term. Significant dividend grower. Should actually benefit from tariffs.

If copper stays at $5, they should produce $9 billion in free cash flow or 15% free cash flow yield.

Q2 beat. She's still bullish on gold and copper. More cyclical than large-cap tech or utilities. Strong US operations. A bit volatile for her, but still some upside of about 8% to price target from here.

If copper stays above $5, FCX will see $9 billion in free cash flow. Shares are not cheap at 20x PE, but earnings growth is a huge 20-40%. Fundamentally, shares should be much higher.

It has a hard time breaking $45-46. It's now at the upper end of its trading range, so sell calls. Just reported nice numbers.

The question also asked about his opinion in general on copper. He likes copper which is the most important of the metals and is therefore in great demand. The price of copper has been hit by tariffs. It is hard to predict the price by random events and the Trump effect. Freeport McMoran is in the U.S. so it has that plus.