TSX:TECK.A - Post by User
Post by
sasasa123on Feb 15, 2016 1:35pm
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Post# 24559504
Copper giants need life line
Copper giants need life line
cndexpatman wrote: FM to follow FCX in asset sale, debt reduction strategy. VERY interesting news from FCX, you know that FM will mirror this type of transaction soon. https://www.kitco.com/news/2016-02-15/Freeport-McMoran-Makes-1-Billion-Deal-With-Sumitomo-Metals.html Freeport-McMoran Makes $1 Billion Deal With Sumitomo Metals Monday February 15, 2016 10:24 Freeport-McMoran (NYSE: FCX) announced Monday its plans to sell part of its interest in the Morenci open-pit mine in Arizona for $1 billion to Sumitomo Metals Mining Co. This sale, which is expected to close sometime in mid-2016, would cut Freeports stake in the mine from 85% to 72%, a company press release says. FCX expects to record an approximate $550 million gain on the transaction. FCX expects to use losses to offset cash taxes on the transaction, the company explains. Freeport shares are down roughly down 16% year-to-date and down over 91% from their May 2008 peak. Freeports announcement comes as equity markets are closed Monday for the Presidents Day long weekend. Freeport ended Fridays session at $5.53 a share, up more than 1% on the week. Standard & Poors lowered Freeports credit rating to junk on Friday, as did Moddys Investors Service last month, as the company struggles to remain profitable with lower commodity prices. The company reported a $4.1 billion loss last quarter. This transaction represents an important initial step toward our objective to accelerate debt reduction and restore our balance sheet, while retaining a portfolio of high quality assets and resources, said Richard C. Adkerson, the company president and chief executive officer. By Sarah Benali of Kitco News; sbenali@kitco.com Read more at https://www.stockhouse.com/companies/bullboard/bullboard/t.fm/first-quantum-minerals-ltd#z3dzVCcWVobWBzJD.99