Why Freeport-McMoRan Stock Soared in April
Shares in copper and gold miner Freeport-McMoRan (NYSE: FCX) rose 14.5% in April, according to data provided by S&P Global Market Intelligence. The move came down to a combination of a good set of first-quarter earnings and a sharp increase in the price of copper through the month.
With the price of copper rising from slightly less than $4 per pound to around $4.50 per pound through April, Freeport's share price was always going to receive a lift. In addition, the company's earnings report highlighted the fact that a higher price of copper means a higher profit margin for Freeport. While it's true that Freeport's estimate for net unit cash cost went up from $1.25 per pound of copper to $1.33 per pound, its price assumption for copper went up to $4 from $3 previously.
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Source Fool.com
