Freeport-McMoRan Inc. is a major producer of Copper, Gold, and Molybdenum.
2nd Q Result Evaluation
In the second quarter of 2023, the company earned $343 Million in net income for its common shareholders, equivalent to $0.23 per share. Adjusting for net charges of $157 Million or $0.11 per share, the company’s net income for its common shareholders was $500 Million or $0.35 per share.
The company generated $1.7 Billion in operating cash flows in the second quarter of 2023, which included $0.2 Billion from working capital and other sources. Assuming that copper, gold, and molybdenum prices average $3.90, $1,950, and $20.00 per unit respectively for the rest of 2023, and based on the current estimates of sales volume and costs, the company expects to generate about $6.4 Billion in operating cash flows for the whole year of 2023.
The company spent $1.2 Billion on capital projects in the second quarter of 2023, of which $0.4 Billion went to major mining projects and $0.5 Billion went to the smelter projects in Indonesia. The company anticipates spending about $4.8 Billion on capital projects for the entire year of 2023, with $2.0 Billion allocated to major mining projects and $1.6 Billion allocated to the smelter projects in Indonesia.
FCX Stock Price Technical Analysis
Freeport-McMoRan, Inc. Corporation. (FCX) has risen above the 200-day and 50-day moving averages, indicating the power of the buyers in the market. The FCX stock price could increase further and begin an uptrend if the buyers maintain the pressure. The bullish cross also confirms the bullish trend on a daily chart.
The RSI is in the overbought zone. The RSI value is 63.77. The 14 SMA value is 58.03, which shows that Freeport-McMoRan, Inc. Corporation’s price is bullish and is generating positive momentum.
Currently, MACD is bullish. The MACD value is 1.08 and the signal value is 0.8286, and both are above the zero line, suggesting that the MACD is positive and is providing bullish signals for now.
Conclusion
Freeport-McMoRan, Inc. stock has performed exceptionally well and gained momentum. The stock is hitting new peaks and breaking above the 50- and 200-day moving averages on both daily and weekly charts. The price, RSI, and MACD are all bullish, signaling a powerful uptrend and a favorable outlook. However, the stock is already overpriced, so investors should be cautious and invest wisely.
Technical Levels:
- Support – The current support level is $37.33.
- Resistance –The current resistance level is $46.63
Disclaimer
The FCX stock price prediction given in this article is for informational and educational use only. Do not use this information as financial, investment, or as trading advice. Investing and trading in stock is a risky task. Please consider your circumstances and risk profile before making any investment decisions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/27/freeport-mcmoran-inc-stock-price-prediction-will-fcx-hit-50/