Morningstar Rating

Stock Research and Analysis

by Daniel Rohr, CFA

Bulls Say

Production volume from Grasberg should improve dramatically as mining activity returns to higher-grade portions of the deposit.
Brownfield expansions at Cerro Verde, Morenci, and Tenke Fungurume will drive significant production growth during the next several years.
The mammoth copper/gold Grasberg deposit boasts stellar ore grades and a long reserve life, which should translate to fat profits for many years to come. Read more 

Bears Say

High copper prices during the past several years have triggered a wave of growth projects that are set to come on line for the next several years, potentially depressing prices.
China's fixed-asset investment boom has been the biggest driver of copper demand growth during the past decade. A shift toward consumption-driven growth entails a less copper-intensive Chinese economy.
Like many globe-trotting miners, Freeport operates in some high-risk jurisdictions, headlined by the Tenke Fungurume mine in the Democratic Republic of the Congo. Read more 

Management

We assign a Poor Stewardship Rating to Freeport mainly on the basis of the acquisitions of Plains Exploration & Production and McMoRan Exploration. The deals constituted a major use of shareholder capital in a manner we believe was inconsistent   Read more 

Profile

Freeport-McMoRan's mines produce more copper than any other publicly traded company in the world. Its assets include the Indonesian Grasberg mining complex, the world's   Read more 

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