Why Shares in Freeport-McMoRan Surged Again Today
Shares in copper miner Freeport-McMoRan (NYSE: FCX) rose more than 5% today. The move comes as a consequence of an increase in the price of copper -- up strongly from $3.46 per pound to $3.50 per pound. Freeport's earnings will always be sensitive to the price of copper, and today was a good day.
That said, there was also some exciting news from a Reuters article stating that Freeport CEO Richard Adkerson is "working" with the Indonesian government to extend its operating rights in the Grasberg mine. Furthermore, Adkerson reiterated management's view that it didn't need to buy a rival to expand its asset base.
Adkerson's comments are highly relevant. While most of the investor attention focuses on the demand-side case for copper, driven by its use in electric vehicles and electrification in the economy, there's also a compelling supply-side story.
Source Fool.com
