Copper's a Gold Mine

The combined Freeport-Phelps entity would have collected 38% of last year's revenue from Indonesia, 35% from North America, 22% from Chile and 5% from Peru, according to company data. Such diversification makes it very unlikely that all operations could be shut down by adverse political changes.

Another risk-mitigating factor for Freeport is the continued legacy of precious metals production.

The small gold component of revenue -- 10% on a pro forma basis -- could help lessen the chance that a dramatic slowdown in the world economy will dampen copper prices, explains Brian Hicks, co-manager of the (PSPFX Quote)Global Resources Fund at U.S. Global Investors in San Antonio, Tex. Gold prices tend not to get impacted by industrial demand factors.

Still, despite the sunny outlook for Freeport, the share price hasn't revisited the highs above $72 reached a little less than a year ago, regardless of a value proposition appearing a lot better now than it did then.