We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Freeport (FCX) Announces Redemption of Senior Notes due 2020
Read MoreHide Full Article
Freeport-McMoRan Inc. (FCX - Free Report) recently stated that it has issued notice to redeem on Mar 27, 2019, all of its outstanding $1-billion total principal amount of 3.1% senior notes due 2020.
The notes will be redeemed at a make-whole redemption price that will be calculated per the terms of the indenture governing the notes along with accrued and unpaid interest. The notes are to be redeemed from the last date of interest payment on Mar 15, 2019, till, but excluding, the redemption date.
U.S. Bank National Association is the trustee for the notes. On Feb 25, 2019, it distributed written notice of the terms of this redemption to the registered note holders.
Freeport will use cash to fund this redemption. Notably, the company had $11.1 billion in total debt and total cash of $4.2 billion at the end of 2018. The company anticipates the redemption to dent net income by roughly $3.4 million in the first quarter of 2019. Annual interest costs related to the notes is rough $31 million.
In fourth-quarter 2018, Freeport’s adjusted earnings came in at 11 cents that missed the Zacks Consensus Estimate of 21 cents.
Revenues declined around 26.9% year over year to $3,684 million and missed the consensus mark of $3,848.9 million.
Freeport projects consolidated sales volumes for 2019 (reflecting a transition year) to be roughly 3.3 billion pounds of copper, 0.8 million ounces of gold and 94 million pounds of molybdenum, including 0.8 million pounds of copper, 255,000 ounces of gold and 24 million pounds of molybdenum for first-quarter 2019.
For 2019, the company expects operating cash flows to be roughly $1.8 billion. Capital expenditures are expected to be around $2.4 billion, which includes $1.5 billion for major mining projects mainly related to underground development in the Grasberg and the Lone Star oxide project.
Zacks Rank & Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
Kirkland has an expected earnings growth rate of 20.9% for 2019. The company’s shares have surged 133.1% in the past year.
Ingevity has an expected earnings growth rate of 17.9% for 2019. The company’s shares have surged 53.8% in a year’s time.
Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 14.6% in a year’s time.
The Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Freeport (FCX) Announces Redemption of Senior Notes due 2020
Freeport-McMoRan Inc. (FCX - Free Report) recently stated that it has issued notice to redeem on Mar 27, 2019, all of its outstanding $1-billion total principal amount of 3.1% senior notes due 2020.
The notes will be redeemed at a make-whole redemption price that will be calculated per the terms of the indenture governing the notes along with accrued and unpaid interest. The notes are to be redeemed from the last date of interest payment on Mar 15, 2019, till, but excluding, the redemption date.
U.S. Bank National Association is the trustee for the notes. On Feb 25, 2019, it distributed written notice of the terms of this redemption to the registered note holders.
Freeport will use cash to fund this redemption. Notably, the company had $11.1 billion in total debt and total cash of $4.2 billion at the end of 2018. The company anticipates the redemption to dent net income by roughly $3.4 million in the first quarter of 2019. Annual interest costs related to the notes is rough $31 million.
In fourth-quarter 2018, Freeport’s adjusted earnings came in at 11 cents that missed the Zacks Consensus Estimate of 21 cents.
Revenues declined around 26.9% year over year to $3,684 million and missed the consensus mark of $3,848.9 million.
Freeport projects consolidated sales volumes for 2019 (reflecting a transition year) to be roughly 3.3 billion pounds of copper, 0.8 million ounces of gold and 94 million pounds of molybdenum, including 0.8 million pounds of copper, 255,000 ounces of gold and 24 million pounds of molybdenum for first-quarter 2019.
For 2019, the company expects operating cash flows to be roughly $1.8 billion. Capital expenditures are expected to be around $2.4 billion, which includes $1.5 billion for major mining projects mainly related to underground development in the Grasberg and the Lone Star oxide project.
Zacks Rank & Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space include Kirkland Lake Gold Ltd. , Ingevity Corporation (NGVT - Free Report) and Materion Corporation (MTRN - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirkland has an expected earnings growth rate of 20.9% for 2019. The company’s shares have surged 133.1% in the past year.
Ingevity has an expected earnings growth rate of 17.9% for 2019. The company’s shares have surged 53.8% in a year’s time.
Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 14.6% in a year’s time.
The Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>