Freeport-McMoRan’s Recent Strength Is Just the Start $FCX @FM_FCX

At current copper prices around $2.70 a pound, Freeport-McMoRan is on track to generate nearly $6 billion in gross profit (EBITDA) over the next 12 months.

That level of profitability would produce annual earnings of about $1.10 a share, which would mean that the stock is trading for just 10 times earnings. That expectation assumes no additional rise in the prices of copper or gold.

But that's not my assumption.

I expect copper prices to continue trending higher toward $3 a pound and gold prices to top $2,000 an ounce on their way to $3,000.

At $3 copper and $2,000 gold, Freeport's annual EBITDA could approach $7.5 billion.

But that's not all…

The company's massive investments to increase production at its Grasberg mine in Indonesia are just starting to bear fruit. As a result, company-wide annual copper production should jump about 40% over the next two years to 4.2 billion pounds. At the same time, gold production should double to 1.8 million ounces.

Source: Chart by InvestorPlace

Those hefty production numbers could produce EBITDA well over $10 billion and earnings per share (EPS) in the range of $2.

Read The Whole Story On InvestorPlace Here: https://finance.yahoo.com/news/best-stocks-2020-freeport-mcmoran-175504848.html

______________________________

MasterMetals

@MasterMetals

#Gold #MiningStocks vs. Physical - Bottom Line? They're Cheap! $GDX $GDXJ $GLD $XAU

The Philadelphia Gold and Silver Index of mining stocks is still nearly half of where it was at the peak in 2010. It was in 2010 at a record high of 232.72. On Thursday, July 2, 2020 it was 127.06 (attachment 1). That is 45% lower.

Meanwhile spot gold around US$ 1’770 is much closer to its record high of 1'917 per ounce in 2011 or just 8% below the all-time high (attachment 2).

#Gold in the #Pilbara $DEG $NVO

It is easy to forget that the Pilbara, more often associated with iron ore, has a long history with gold, both in early gold rushes and more recently with active mines at Paulsens and Nullagine. DEG with its +1,000% return in 2020 is certainly putting Pilbara gold back on the map.

GMR goes into the story and the stocks which hit & looking to make it big! 

GMR: Pilbara Gold     Good Morning / Evening, today we focus on the Pilbara and gold, rather than the usual iron ore guff. If there is one thing a gold rush does, no matter what is reality and what is hype, it does prompt a lot of exploration activity. Sometimes the real discoveries emerge long after an area ceases to be the latest hot play. This appears to be the case in the Pilbara, with De Grey Mining (DEG, Mcap US$0.7B) announcing a significant new discovery at Hemi long after the conglomerate-hosted gold craze of 2017 is but a distant memory. So, for gold the Pilbara is a region where fortunes can be made (DEG shooting from 5¢ to 90¢ in 2020) but also lost such as the Millennium Minerals collapse late last year. In DEG's case does the prospectivity justify the price?