Long Term Mining: Freeport-McMoRan Copper & Gold Inc.
By:
Madd Money
Posted on December 05, 2007 at 19:12 PM EST
A long term global bull market is minerals and mining with Freeport - McMoRan Copper & Gold Inc. ( FCX ) the way to play it. This week five sectors are being highlighted as those not bogged down by the U.S. economy. Aerospace and defense along with oil have been covered this week so far. Today is minerals and mining though. There is an insatiable demand in China and India for the raw materials that need to build a modern economy. Right now there is a tremendous amount of consolidation in the sector as well. Takeovers usually take stocks much higher. FCX is also the world's largest producer of copper. They are in a position to find more copper and have mine expansions in Chili and the Democratic Republic of Congo in the future. The molybdenum mine will reopen and be producing by 2010 and this is a great bull material. The mine should give FCX 15% of the world's market. They also have gold mines as well with a massive cash flow to pay off debt. The dividend has been boosted as well with a great buyback program in place. Plus there is a possibility of a buyout like any other company in the sector. MINING VIDEO
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