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Gold/Mining/Energy : Copper - analysis -- Ignore unavailable to you. Want to Upgrade?

To: mcbeanburger who wrote (1839)	9/21/2007 2:34:27 PM
From: Stephen O	Read Replies (1) \| Respond to of 2131

Freeport May Double on Rising Gold, Copper Prices, Genesis Says 2007-09-21 13:47 (New York) By Stewart Bailey Sept. 21 (Bloomberg) -- Freeport-McMoRan Copper & Gold Inc., the best performer on the Philadelphia Gold & Silver Index in 2007, may double in three years as lower interest rates boost metal prices, Genesis Asset Management LLC said. The largest central banks may start cutting interest rates to weaken their currencies and increase the competitiveness of their exports, said Michael Williams, president of New York-based Genesis. That would bolster demand for copper and boost profit for Phoenix-based Freeport, the world's second-largest producer of the metal, he said. ``The boom's got a long way to go,'' Williams said today in an interview. ``I'd look for a double from here over two to three years.'' The price of copper has jumped more than fivefold in the past five years as China's economy boomed and inventories dwindled. Freeport shares have more than tripled to a record in that period, and the company's $26 billion acquisition of Phelps Dodge Corp. last year boosted profit. Deutsche Bank AG analyst David S. Martin recommended on Aug. 22 that investors buy Freeport because copper will remain high. Of the 20 analysts covering the company, 13 recommend buying the shares. Freeport, also the world's fifth-largest gold producer, will benefit from rising bullion prices, Williams said. The metal often moves in the opposite direction of the dollar, which has declined against all but one of the world's 16 largest currencies since the Fed reduced its benchmark rate Sept. 17. The company forecast production of 2.1 million ounces of gold and 3.9 billion pounds of copper this year. Freeport may make more acquisitions as capital expenditure requirements drop, cash flow surges and the company reduces debt, Williams said. Freeport, valued at $41.5 billion, is an unlikely acquisition target, Williams said. Freeport gained $1.37, or 1.3 percent, to $108.94 at 1:38 p.m. in New York Stock Exchange composite trading. The stock has surged 96 percent this year. --Editor: Orland (jvb). If they expect Freeport to double what about First Quantum, Anvil and Lundin