Street View: Grasberg mine restart delay to pressure Freeport stock

Shares of miner Freeport-McMoRan FCX.N up 1.1% at $62.2 premarket

Co on Thursday beat estimates for first-quarter profit, helped by a rise in copper prices

Said it expects a slower-than-anticipated recovery at its flagship Grasberg mine in Indonesia after a fatal flood last year disrupted operations

GRASBERG DELAY PRESSURES FCX

RBC Capital Markets (PT: $70) expects negative impact on FCX shares owing to delay in Grasberg mine restart, resulting in lower full-year sales guidance

"In our view, investor attention will largely be focused on the risks to the updated Grasberg rehabilitation plan, which remains the key variable for full-year results," says RBC

Scotiabank lowers price target to $67 from $71

Says Grasberg delay will negatively impact the shares but doesn't see any long-term implications

J.P. Morgan expects a significant reduction in market expectations on revised production and cost guidance