Copper miner Freeport McMoRan ( FCX ) on Thursday reported fourth-quarter profit that topped expectations.
[ibd-display-video id=3104805 width=50 float=left autostart=true ] Estimates: Profit of 49 cents a share, up 96% from a year ago. Revenue up 9.7% to $4.8 billion.
Results: EPS of 51 cents, up 104%, on a 15% rise in revenue to $5.0 billion.
Outlook: Full-year sales are expected to approximate 3.9 billion pounds of copper, 2.4 million ounces of gold and 91 million pounds of molybdenum, including 1.0 billion pounds of copper, 675 thousand ounces of gold and 24 million pounds of molybdenum for first-quarter 2018.
The company said its capital spending is expected to rise to $2.1 billion in 2018, up from $1.4 billion in 2017.
Stock: Shares jumped to 20.25 soon after the opening bell, briefly turned lower before settling for a 1.2% gain at 19.84 on the stock market today . Freeport is extended after breaking above a buy point of 15.69 on Dec. 12. Southern Copper ( SCCO ) shares climbed 0.1% to 50.06.
IBD'S TAKE: Freeport McMoRan is ranked No. 11 by IBD in the Mining-Metal Ores industry group based on earnings, sales, margin and stock performance trends. Visit IBD Stock Checkup to see the leaders. Miners are among the market's top industry groups, ranked No. 16 out of 197 groups.
Metals prices are near multi-year highs amid the best global growth since at least 2010. Yet Freeport has been weighed down by uncertainty stemming from a yearlong dispute with Indonesia over ownership of its massive Grasberg mine. Analysts think that a resolution of negotiations could provide a catalyst for the stock.
Management continued to sound optimistic on that front, but didn't report any breakthroughs: "We are continuing to make significant progress in our ongoing negotiations with the Indonesian government to restore long-term stability for our Grasberg operations."
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