NEW YORK (TheStreet) -- Freeport-McMoran Copper & Gold (FCX) fell 2.12% to $30.72, down 66 cents from its previous close of $31.38, at the close of the trading day on Tuesday amid news that the company's Indonesian copper and gold mine had cut ore production by approximately 60%.
The news comes two months after the miner ceased exports due to a dispute with the government on a new tax introduced on Jan. 12 that is part of a collection of new mining rules designed to force miners to build smelters and process raw materials within Indonesia.
Freeport has also stated that the milling rate has been half its normal rate at its Indonesian mine since mid-January, according to Reuters. Freeport also believes the tax breaches its contract. The company continues its talks with the government.
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TheStreet Ratings team rates FREEPORT-MCMORAN COP&GOLD as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREEPORT-MCMORAN COP&GOLD (FCX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."