#MiningStocks Financings Coming Back to Life with #Gold at Multi Year Highs

The @Oreninc Canadian Resource Financing Index increased in the week ending July 3rd, 2020 to 78.20 from an updated 61.41 a week ago as financings resurged.

Number of financings increased to 42, but there were only Two brokered financings announced this week for $35.9 million, a two-week low.

Only One bought-deal financing was announced this week for

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

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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).