Freeport-McMoRan seeks bridge to profitability

摘要

Freeport-mcmoran's recapitalisation gained renewed momentum after yet another round of cuts to mining costs and production to help it weather a downturn in commodity prices. The initiatives follow a recent similar round of cuts at its oil & gas unit and provide a bridge to significant free cashflow in 2016, though the company will continue to burn through money in the interim. Carl Icahn added to the intrigue when he disclosed an 8.5% stake resulting from the purchase of 88m shares between July 17 and August 21 at average prices of US$15.46. Freeport responded to the disclosure by welcoming "constructive input" towards a common goal of enhancing "shareholder value", though how welcome Icahn really is at Freeport is surely debatable. As the most renowned of activist shareholders, Icahn would hardly win many popularity contests in the boardrooms of corporate America.