Michael Ballanger of GGM Advisory Inc. analyzes the current state of copper, noting its correlation with stock market performance. He discusses the impact of the recent sell-off and the potential for further decline in September. Ballanger shares his position in Freeport-McMoRan Inc. (FCX) and his strategy for managing call options based on the current market conditions.
Despite recent copper price declines, Michael Ballanger of GGM Advisory Inc. believes Freeport-McMoRan Inc. (FCX) remains a buy. He highlights the potential for a short-term copper rally and a long-term bull market in gold, both of which could benefit FCX. Ballanger recommends a strategy of buying FCX November $40 call options, citing favorable technical indicators and a potential for significant upside.
In an interview on ‘Closing Bell Overtime,’ Freeport-McMoRan CEO Richard Adkerson shared his insights on the global commodity supply chain, metal commodity demand, and market conditions in China. He highlighted the challenges faced by the industry and emphasized the importance of addressing supply-side issues to meet growing demand.
Freeport-McMoRan Inc. (FCX) reported solid first-quarter results, with revenue and earnings per share (EPS) surpassing analysts’ estimates. The company’s copper sales surged by 33% year-over-year (Y/Y) on higher production and ore grades, while gold sales more than doubled. Despite the positive results, FCX shares declined in the market due to broader market weakness. The company announced that Kathleen L. Quirk will assume the role of President and Chief Executive Officer (CEO) in June 2024. Freeport-McMoRan provided an optimistic outlook for the rest of the year, with expectations of strong sales volumes and cash flows.
Copper mining company Freeport-McMoRan beat Wall Street estimates for the first quarter of 2023, driven by increased output and declining costs. Production of copper surged by 15% to 1.1 billion pounds, propelled by a 49% surge in Indonesia operations. The company is collaborating with the Indonesian government to maintain export approvals for copper concentrates and anode slimes amid a raw material export ban. Freeport-McMoRan also benefited from higher gold prices, doubling its sales volume to 568,000 ounces. Average cash costs per pound of copper reduced to $1.51, contributing to lower operating expenses.
Whales have been showing a bearish stance on Freeport-McMoRan (FCX) lately. Analyzing options trades over the past 30 days reveals that 81% of investors have opened bearish trades, indicating a negative sentiment. Projected price targets for FCX range from $48.0 to $60.0. Significant trades include a bullish put trade expiring on 05/17/24 with a strike price of $50.00 and a bearish call trade expiring on 04/26/24 with a strike price of $48.00.
