Commodities
Copper Price Record Sends Freeport-McMoran Stock Soaring
Freeport-McMoran Copper & Gold Inc's stock surged 7.4% in morning trading after LME three-month copper futures hit a new all-time high of $14,694 per ton.
The record copper price was driven by speculative buying and critically depleted LME warehouse inventories down roughly 40% since late May.
FCX's business model amplifies every copper price move into an outsized stock reaction. Each 10-cent rise in the copper price is worth approximately $390 million in annual EBITDA, according to management's sensitivity analysis.
The combination of a historic copper price milestone and FCX's unmatched leverage to that commodity created conditions for one of the stock's sharpest single-session moves of the year.