Freeport-McMoRan Inc.’s (FCX - Free Report) majority-controlled El Abra mine in Chile has halted some operations after a worker died due to an accident at its acid unloading terminal, according to Reuters. While at work at the acid unloading terminal, the worker suffered an accident that led to his death.
The El Abra mine is 51% owned by Freeport, with state-run Codelco owning the remaining 49%. It produced around 147,000 tons of copper in 2015.
Freeport, last year, revised plans for its copper mines in South America mainly to reflect adjustments to the mine plan at El Abra to cut mining and stacking rates by roughly 50% in a bid to realize lower operating and labor costs, and extend the life of the existing operations. The company, in its second-quarter 2016 call, noted that it is evaluating a potential large-scale milling operation at El Abra to process additional sulfide material and to achieve higher recoveries.
Freeport’s adjusted loss for second-quarter 2016 was wider than the Zacks Consensus Estimate. Revenues fell by double-digits year over year and missed expectations.
Freeport is taking actions to manage costs and capital spending amid a challenging operating environment. Benefits of the company’s ongoing cost-cutting initiatives were evident in the second quarter, manifested by a year-over-year decline in consolidated average unit net cash costs of copper. The company also remains focused on deleveraging its balance sheet, partly through assets sale.
However, Freeport’s copper business remains affected by the sluggish global economy and supply related issues. The depressed oil and copper pricing environment also remains a headwind for the company. Sluggishness in China (a major market for copper) adds to the concern.
Freeport currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the mining space include AngloGold Ashanti Ltd. (AU - Free Report) , Coeur Mining, Inc. (CDE - Free Report) and Nevsun Resources Ltd. . While AngloGold sports a Zacks Rank #1 (Strong Buy), Coeur Mining and Nevsun Resources hold a Zacks Rank #2 (Buy).
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Freeport-McMoRan Inc.’s (FCX - Free Report) majority-controlled El Abra mine in Chile has halted some operations after a worker died due to an accident at its acid unloading terminal, according to Reuters. While at work at the acid unloading terminal, the worker suffered an accident that led to his death.
The El Abra mine is 51% owned by Freeport, with state-run Codelco owning the remaining 49%. It produced around 147,000 tons of copper in 2015.
Freeport, last year, revised plans for its copper mines in South America mainly to reflect adjustments to the mine plan at El Abra to cut mining and stacking rates by roughly 50% in a bid to realize lower operating and labor costs, and extend the life of the existing operations. The company, in its second-quarter 2016 call, noted that it is evaluating a potential large-scale milling operation at El Abra to process additional sulfide material and to achieve higher recoveries.
Freeport’s adjusted loss for second-quarter 2016 was wider than the Zacks Consensus Estimate. Revenues fell by double-digits year over year and missed expectations.
Freeport is taking actions to manage costs and capital spending amid a challenging operating environment. Benefits of the company’s ongoing cost-cutting initiatives were evident in the second quarter, manifested by a year-over-year decline in consolidated average unit net cash costs of copper. The company also remains focused on deleveraging its balance sheet, partly through assets sale.
However, Freeport’s copper business remains affected by the sluggish global economy and supply related issues. The depressed oil and copper pricing environment also remains a headwind for the company. Sluggishness in China (a major market for copper) adds to the concern.
Freeport currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the mining space include AngloGold Ashanti Ltd. (AU - Free Report) , Coeur Mining, Inc. (CDE - Free Report) and Nevsun Resources Ltd. . While AngloGold sports a Zacks Rank #1 (Strong Buy), Coeur Mining and Nevsun Resources hold a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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