NEW YORK (TheStreet) -- Freeport-McMoRan Copper & Gold (FCX) hit a 52-week high of $38.90 Monday after agreeing to a memorandum of understanding with the Indonesian government on contract negotiations.
Shares of Freeport-McMoRan Copper & Gold were gaining 0.6% to $38.74 at 3:25 p.m.
The MoU, if it is approved, will bring Indonesia a step closer to resuming copper concentrate exports. Both the cabinet and outgoing President Susilo Bambang Yudhoyono will have to approve the MoU.
Copper concentrate exports halted in the course of a disagreement between the miner and the Indonesian government over rising export taxes and contract negotiations.
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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 revenue growth, attractive valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: