Freeport McMoran Copper & Gold (FCX-N)

Copper supply is tight. Each 10-cent/pound rise in price means $200 million in cash flow. Expects great cash flow. Shares always fall before a quarter, so it's an opportunity now. China stimulus could be a big boost to sales.

She bought more. FCS is the poster child of China, of which she is suddenly bullish because of their stimulus news. Net cash costs are falling and it trades at 6.9x EBITDA vs. 9.2x 5-year average. 

Can't have a view on this name without having a view on copper. Emerging view that historical cyclicality of copper may be dampened going forward by secular demand of greening the grid and EVs. But the cyclicality is still there. Global GDP growth is slowing, China's economy remains anemic underlying all the "stimulus".

There will be a time to get behind this name, but not right now. FCX would be his #1 choice, TECK.B #2.

For it to jump to $55, sentiment in China needs to change first. Now is a good entry point though. Copper will go into everything, many products, so it's good long term.

Long term holding. Control and produce ~8% of world copper production. Expecting higher demand of copper with greening/electrification of economy. Would not be surprised in 2x demand of copper. Excellent balance sheet with strong revenue stream. Every 10 cent move in price of copper equates to ~400MM in cash flow. 

They're in EVs, which are really slowing, and in data centres also slowing. No, copper is not in a super-cycle. Don't touch this until it breaks $38.

Commodities have been pulverized, so it's a good time to buy,

She added more last week at $45. It now has strong support. She sold the January $50 calls. She got $3, so in under 5 months she'll get a 6.5% yield in call premium plus 11.5% upside from her $45.

We went through a bear market in commodities from 2011 - 2021. Produces copper and gold. Invested a lot of $$ in its biggest mine. Longer term, whether looking at gold or copper prices, they're going higher. Generating a lot of cash, committed to returning it to shareholders.

People look at this as a cyclical business, and it is, but when the cycle gets going it can go for a long time.

The caller wanted a comparison of the two companies, BHP and FCX. BHP is in a tight trading range with a lot of trading. He doesn't see much upside and there are others to buy. FCX has more copper, and copper is a good story It could be a good buying opportunity but sell if it goes below $44.

He sold this recently. Speculators drive commodity prices, so when that rips higher, he sells. Also, China has stockpiles of copper (so that impacts demand for FCX), and the EV craze has died down. Copper remains a good asset to own, but doesn't see stock performance.

They're focused on their growth projects in Arizona and Indonesia, and are not focused on M&A, despite talk of the M&A cycle in materials heating up. This is driven by copper prices, but FCX is worth watching.

A long-term way to participate in an area that will continue to enjoy demand, given EVs, data centres and infrastructure--they all need copper which is in limited supply. FCX is tied to copper prices, which have declined in the past month. Now, is a buying opportunity.

Very large copper producer. Largest risk is execution - which company has demonstrated ability at. Growth in mines continues to grow. Cash expenses have fallen - good for profits. Existing mines don't have ask much risk as greenfield projects. Also get exposure to gold prices. 

Would recommend buying. Stock heading into the $60 range.