Freeport-McMoRan (FCX US) is one of the world’s largest publicly listed copper producers, operating major long-life mining assets across the Americas and Indonesia, with earnings heavily leveraged to global copper prices – not surprisingly its walked a similar path to the ASX’s Sandfire Resources (SFR) over the last 12-months. At MM, we often talk about an ideal “Roadmap” for a stock or sector, and FCX is providing that to us as we approach March. Firstly, we are bullish FCX and the copper thematic for the foreseeable future, but as we can see below, even as FCX tests new highs its corrected close to 30% on one occasion last year, plus a ~15% hiccup in late January.
- We are targeting the $US72-74 area, or 3-5% higher, for this leg up by FCX – MM owns FCX in its International Equities Portfolio.
Hence, we may move back our original position size into such a move – as the prevailing weight has increased.
MM is long and bullish FCX ~$US68
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