This Biggest Loser, Freeport-McMoRan Had Drops 5.2 Percent
This Biggest Loser, Freeport-McMoRan Had Drops 5.2 Percent
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NEW YORK - Freeport McMoran (FCX) share price in trading Wednesday or Thursday Indonesian time (23/2) closed down 2.83 percent at 13.73 dollars per share. The decline in stock prices parent company of PT Freeport Indonesia's continuing decline in the price of the previous day's trading.
Previously, on Tuesday or Wednesday (22/2) Indonesian time, FCX stock price was closed at 14.13 dollars per share, down 5.23 percent compared to the previous day's closing at the level of 14.91 dollars per stock. This the biggest loser from FCX.
The weakening of stock prices since the ban on export of concentrates Freeport on January 12, 2017 there were already touched 10.08 per cent. FCX stock price on January 12, 2017 are still trading at levels of 15.27 US dollars per share.
Deutsche Bank analyst, Chris Terry said FCX share lowered his rating on the stock from Hold to Sell, and cut his target price from $14 to $12.50.
"Following news that Freeport has failed to reach an agreement to export copper concentrate from Indonesia, we now assume, 1) Grasberg operates on scaled-back mode, only supplying the local Gresik smelter for the remainder of 2017 and 2) underground development and ramp-up (production and capex both pushed-out) are delayed a further 18 months. We now value PT-FI’s share of Grasberg at $11.7bn ($8.3/sh), down from $12.9bn ($9.1/sh). Grasberg is a high quality, long life, low cost asset, but ownership and operating risks continue to increase," Terry said.
Other analysts have also warned that the Indonesian mine problems could hurt Freeport-McMoRan. Nonetheless, the share are up 7.1 percent year to date.
The weakening of FCX stock price could not be separated from the chaotic extension of the operation of PT Freeport Indonesia in Mimika, Papua.
Previously, on Tuesday or Wednesday (22/2) Indonesian time, FCX stock price was closed at 14.13 dollars per share, down 5.23 percent compared to the previous day's closing at the level of 14.91 dollars per stock. This the biggest loser from FCX.
The weakening of stock prices since the ban on export of concentrates Freeport on January 12, 2017 there were already touched 10.08 per cent. FCX stock price on January 12, 2017 are still trading at levels of 15.27 US dollars per share.
Deutsche Bank analyst, Chris Terry said FCX share lowered his rating on the stock from Hold to Sell, and cut his target price from $14 to $12.50.
"Following news that Freeport has failed to reach an agreement to export copper concentrate from Indonesia, we now assume, 1) Grasberg operates on scaled-back mode, only supplying the local Gresik smelter for the remainder of 2017 and 2) underground development and ramp-up (production and capex both pushed-out) are delayed a further 18 months. We now value PT-FI’s share of Grasberg at $11.7bn ($8.3/sh), down from $12.9bn ($9.1/sh). Grasberg is a high quality, long life, low cost asset, but ownership and operating risks continue to increase," Terry said.
Other analysts have also warned that the Indonesian mine problems could hurt Freeport-McMoRan. Nonetheless, the share are up 7.1 percent year to date.
The weakening of FCX stock price could not be separated from the chaotic extension of the operation of PT Freeport Indonesia in Mimika, Papua.
(rnz)
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