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Freeport-McMoRan Inc. (FCX) is a leading international miner with significant proven and probable copper, gold, and molybdenum reserves. The company is also one of the world’s largest publicly traded copper producers.
The company generated 80% of its revenue from copper, 12% from gold, and 6% from molybdenum in 2020. Within copper, the company’s revenues were divided between concentrate (38%), cathode (37%), rod (18%), and purchased copper (7%). Mining production (by value) was concentrated in Indonesia (48%), the U.S. (26%), Peru (22%), and Chile (4%), with the largest end markets in the U.S. (37%) and Switzerland (14%).
Copper prices moved off their 10-year highs in recent weeks amid worries about slowing Chinese demand. As the country looks to reduce debt and trim stimulus spending, factory activity at small private firms expanded at their slowest pace in nearly a year.
That said, Morgan Stanley recently predicted that copper demand would double over the long run as electric vehicle manufacturers ramp up production. The average EV contains 75 kg of copper compared to just 20 kg for ICE vehicles. Raymond James analysts also cited increased base metal forecasts and ongoing tightness in physical markets.
The company reinstated its quarterly dividend at $0.075 per share, which represents a 0.86% forward yield. The dividend is payable on May 3, 2021 to shareholders on record as of April 15, 2021.
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