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

To: R L who wrote (10)	4/20/1998 7:36:00 PM
From: jack marshall	Respond to of 141

Are these guys still expanding?? When will they truly make copper just any old industrial mineral? This is the classic mining company who consider themselves to be price takers yet their actions bring the price down for everyone. Somewhat like crapping in your own bed.

To: R L who wrote (10)	4/21/1998 1:08:00 AM
From: Potato Farmer	Read Replies (1) \| Respond to of 141

RE: Nationalizing or disabling Freeport's mine RL, While I'm hopeful that you are correct (I am long the preferred stock) I also have to keep in mind that revolutions do happen and this country (Indonesia) is ripe for a big one. Look at Cuba 40 years ago ... people said the same things. The revolutionaries needed American money, they would never close the American businesses, hotels and casinos. Unfortunately for all involved, I think, Castro didn't see it that way. He found a willing sponsor in Nikita K. and has kept control ever since. Close to the same could happen in SE Asia. Ne Win in Burma (Myanmar) would love to see Indonesia move to his camp. A few others in the region might also like to see Ind. become anti-American. Even if revolutionaries didn't nationalize the mine, don't kid yourself that a big operation like a gold mine could go unbothered with civil war around it. If the country breaks down the flow of money from the mine would be badly disrupted for some time. My guess is, maybe 15% or 20% that any of this comes to pass. 85% or 90%, gold stabilizes in the low - mid $300s and the country settles down too. But this gives a good idea of why the preferred B and C issues trade 25% below the price of the metal, even though settlement in cash is only around 5 years away. As they say in Barron's, "Whoever named them 'securities' had a wicked sense of humor." Keep an eye on this one. Pete F.