Freeport-McMoRan Copper & Gold Inc. (FCX): This Copper Miner Looks Attractive After Pullback

Vale SA (ADR) (NYSE:VALE), which trades at 6.5 forward P/E, is a diversified mining giant. Vale is based in Brazil. Brazil has faced significant political pressure this year. Brazilians are unhappy about huge money that is being spent on the Soccer World Cup 2014, while a lot of people are living in poverty. Trying to get more money, the government proposed a bill to reform the country’s mining code.

According to this bill, the royalties would go up to 4%, which is twice as much as the current rate. Vale is an interesting dividend play with a 5.7% yield. Vale could enjoy an inflow of money when the political situation becomes clearer.

Bottom line

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is a solid company that trades at an attractive 7.5 forward P/E. It is a dividend play too, with a 4.53% yield. Despite the recent cuts in share price forecasts, the mean analyst target price for Freeport-McMoRan is $36.62, almost 33% higher than current price. Freeport-McMoRan is a serious candidate to consider for your portfolio.

The article This Copper Miner Looks Attractive After Pullback originally appeared on Fool.com and is written by Vladimir Zernov.

Vladimir Zernov has no position in any stocks mentioned. The Motley Fool owns shares of Companhia Vale Ads and Freeport-McMoRan Copper & Gold. Vladimir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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