1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 79
Freeport-McMoRan Inc. (NYSE:FCX) is a prominent global natural resource company that mainly focuses on copper, gold, and molybdenum. With properties across North and South America, Africa, and Indonesia, Freeport runs some of the largest mining operations, including the Grasberg complex in Indonesia. The company has a noticeable presence in the market and some major programs to expand its copper production to satisfy the rising demand for this vital metal for green technologies.
Throughout the year ended December 31, 2024, Freeport-McMoRan Inc. (NYSE:FCX) recorded significant financial growth. EBITDA grew by 14%, reaching $10 billion compared to 2023. Operating cash flows also increased significantly, rising 35% to over $7 billion. An average copper price of $4.21 per pound was recorded with gold slightly exceeding $2400 per ounce. Capital expenditures for the year 2024 reached $3 billion, with forecasts suggesting an increase to $4.4 billion annually in 2025 and 2026.
In another massive move, Freeport-McMoRan Inc. (NYSE:FCX) redeemed $730 million in senior notes in Q4 ended December 31, 2024, decreasing its debt and increasing financial agility. Currently, the company has a net debt of nearly $1 billion, strengthening its position for further development. Furthermore, $4.7 billion has been returned to shareholders through dividends since the implementation of the shareholder policy.
In Q4 2024, Freeport-McMoRan Inc. (NYSE:FCX) focused on improving copper production, with leach operations expected to reach 300 million pounds by 2025.
Nevertheless, challenges persisted, specifically regarding export permits from Indonesia. Damages from the fire at Grasberg smelter also require repairs, with an estimated cost of $100 million, which will be covered by insurance. Additionally, the company is seeking approval for the 10% US tax credit for copper, which, if approved in 2025, would grant a benefit of $500 million. Regardless of these obstacles, Freeport-McMoRan Inc. (NYSE:FCX) is progressing in some major projects in the US and South America.
The company is set for some major development, with an estimated EBITDA exceeding $11 billion at $4 copper and over $15 billion at $5 copper by 2026 and 2027. Operating cash flows are also anticipated to rise, reaching nearly $8 billion at $4 copper and exceeding $11 billion at $5 copper. The company is dealing with capital expenditures efficiently while managing geopolitical issues in Indonesia. Freeport’s focus on organic growth projects and cost control while facing export and regulatory hurdles makes it an attractive option for investors looking for consistent returns in the mineral sector.
Overall Freeport-McMoRan Inc. (NYSE:FCX) ranks first on our list of the Best Mineral Stocks to Buy Right Now. While we acknowledge the potential of FCX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FCX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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