Why Shares of This Copper Miner Soared in June
Shares of copper miner Freeport-McMoRan (NYSE: FCX) rose by 16.5% in June, according to data provided by S&P Global Market Intelligence. Usually, when such moves occur, it comes down to either an increase in the price of copper or some positive earnings announcement. However, neither of these events occurred.
The price of copper started the month at $3.64 per pound, hit a mid-month high of $3.91 per pound, and then finished the month at $3.71 per pound -- a good month, but nothing to write home about from the Motley Fool trenches. Similarly, Freeport-McMoRan didn't release earnings in the month. So what drove the stock's price higher?
There are two possible reasons. First, the news that Chile, the world's top copper-producing country, reported the fourth straight drop in year-over-year copper output. The country produced 14% less copper in May than last year. That supports billionaire copper investor Robert Friedland's argument that copper prices could soar as supply struggles to meet long-term growth in demand.
Source Fool.com
Freeport-McMoRan Inc. Aktie
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