NEW YORK (TheStreet) -- Shares of Freeport-McMoRan (FCX) are slightly up 0.98% to $22.77 after it was reported that the company needs to build two Indonesian copper smelters at a cost of around $4 billion by 2020, a government official told Reuters, as talks resumed between the miner and Jakarta over the firm's future in the Southeast Asian country, Reuters reports.
The proposal comes five months after Freeport signed a memorandum of understanding with the Indonesian government that ended a six-month tax dispute and allowed the company to resume copper concentrate exports, Reuters said.
The country's largest copper producer agreed to pay a $115 million to develop a $2.3 billion smelter by 2017. The government is now asking Freeport to build a second one by 2020 at a cost of around $1.5 billion, Reuters noted.
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Freeport is working with Newmont Mining Corp. (NEM) on the building of the first smelter, which is expected to annually process 1.6 million tons of copper concentrate into copper cathode.
Separately, TheStreet Ratings team rates FREEPORT-MCMORAN INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREEPORT-MCMORAN INC (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 reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk."