The Conversation (0)
Freeport’s Energy Purchase Pushes Stock to Four-Year Low
Dec. 06, 2012 09:05AM PST
Precious Metals InvestingBloomberg reported that Freeport-McMoRan Copper & Gold Inc.’s purchase of Plains Exploration & Production Co. (PXP) and McMoRan Exploration Co. (MMR) plunged their stock by 16 percent on Tuesday, to a four-year low.
Bloomberg reported that Freeport-McMoRan Copper & Gold Inc.’s purchase of Plains Exploration & Production Co. (PXP) and McMoRan Exploration Co. (MMR) plunged their stock by 16 percent on Tuesday, to a four-year low.
As quoted in the market report:
Freeport’s return to energy 18 years after it exited that business by spinning off McMoRan illustrates the challenge facing some of the biggest miners. While Freeport’s mines are still profitable, it’s a matter of contention how the Phoenix- based company spends that cash. Large, undeveloped deposits are increasingly scarce and investors have grown unforgiving of dealmaking missteps and construction delays.
