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Gold/Mining/Energy : Freeport McMoran (FCX) -- Ignore unavailable to you. Want to Upgrade?

To: Keith Feral who wrote (102)	4/23/2008 8:47:26 AM
From: Lynn	Read Replies (1) \| Respond to of 141

Yes it was. I agree, Keith. FCX is now up almost 4 premarket. Do you have access to Morningstar research? I just pulled up their FCX report from April 22nd titled, "Freeport-McMoran is one of the kings of copper." Their valuation pre-earnings was: Valuation Our fair value estimate for Freeport of $129 per share has two components. Of the total value, $122 per share comes from Freeport's current operations. This value is sensitive to the prices of copper, gold, and molybdenum, as well as operational costs. We have projected increasing commodity prices throughout 2008, after which we think prices will gradually normalize to lower levels, but in most cases rest higher than historical averages. We expect a 14% increase in revenue in 2008 based on higher copper, gold, and molybdenum prices. We have also projected significant increases in copper and molybdenum production during the next three years as the company expands its current operations. Despite an increase in production, lower future commodity prices and the steep capital costs required to bring new production on line should cause returns on capital to shrink from recent levels. The remaining $7 per share is the option value of the Tenke Fungurume project. Our model is most sensitive to fluctuations in copper and cobalt prices. When the combined prices of copper and cobalt increase by 20%, the option value also increases by 20%. In addition, the start date of production is uncertain. While Freeport expects operations to commence in 2009, the DRC is in a constant state of political flux. Even when production does start, it could easily be interrupted by warring factions.