BUZZ-Street View: Indonesia, higher capex risks to weigh on Freeport-McMoRan's earnings
Updates
** Mining company Freeport-McMoRan FCX.N posted a drop in Q4 production on Thursday and said its costs would rise more than expected this year
** FCX forecast higher 2025 capex of about $5.0 bln vs $4.8 bln in 2024
ANALYSTS EXPECT NEAR-TERM HEADWINDS
** Jefferies ("Hold") cuts PT to $40 from $48, says FCX is operating well in the Americas but the earnings risk in Indonesia is to the downside for now and free cash flow is likely to be relatively low for the next 12 to 18 months due to higher capex impact
** Scotiabank ("Sector Perform") cuts PT to $45 from $48, sees negligible free cash flow in 2025 as FCX's three-year guidance was below expectations, particularly with respect to 2025 copper sales and 2025-2026 planned capex
** BMO ("Outperform") cuts PT to $50 from $54, says elevated capex spending in 2025-2026 is a headwind
** Adds that receiving the export license extension from Indonesia is currently key
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