Why Freeport-McMoRan Copper & Gold Inc. (FCX) Earnings Won’t Help Its Stock

However, gold’s plunge during the quarter clearly raises concerns. The SPDR Gold Trust (ETF) (NYSEMKT:GLD) has not only lost 20% since the beginning of April but also has seen outflows of bullion from its coffers as investors liquidate shares. Moreover, copper prices have continued to be weak despite supply pressure coming from Rio Tinto plc (ADR) (NYSE:RIO)‘s having to stop production at its Utah-based Bingham Canyon mine, although its faster-than-expected recovery has led it to issue a more optimistic forecast of its impact on Rio Tinto plc (ADR) (NYSE:RIO)’s overall production for the year.

But the big question going forward for Freeport is whether its acquisitions of Plains Exploration and McMoRan Exploration will pay off. Some of McMoRan’s assets are quite speculative, involving extremely deep reserves under the Gulf of Mexico that could give the company access to the equivalent of tens of trillions of cubic feet of natural gas reserves if it can successfully retrieve it. But Freeport now has new assets not only in the Gulf but also along the Gulf Coast, in California, and in the Rockies, as well as holding land assets in the lucrative Eagle Ford and Haynesville areas.

In the Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) earnings report, look closely to see how the company plans to move forward with its newly integrated operations. With fellow mining giant BHP Billiton Limited (ADR) (NYSE:BHP) having integrated both energy and mineral resources into a single company operation, Freeport has the ability to enjoy similar success if it can do the job well. For now, though, weak earnings aren’t likely to help the stock much in the near-term.

The article Why Freeport-McMoRan Earnings Won’t Help Its Stock originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Freeport-McMoRan Copper & Gold. You can follow him on Twitter: @DanCaplinger. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold.

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