The shares of Freeport-McMoRan Inc (NYSE:FCX) are trading 22.64% higher, as the company announced some correctional measures to help it weather the current global slowdown. The Chinese “Black Monday” earlier this week led to the lowest prices of copper seen since 2009. That severe decline in copper prices over the past several months has triggered action from the board of Freeport-McMoRan Inc (NYSE:FCX). The mineral company announced plans to reduce capital expenditures, lower production levels, and cut down of exploration and administrative costs involved in production. Freeport-McMoRan reduced its mining capital expenditure targets for 2016 by 25% to $700 million. Further, the company will limit its overall capital expenditures for 2016 to $4.0 billion against its previous target of $5.6 billion.
While discussing the restriction plans, James R. Moffett, FCX’s Chairman, Richard C. Adkerson, Vice Chairman and Chief Executive Officer and James C. Flores, Vice Chairman and FM O&G Chief Executive Officer, said, “The steps we are taking to reduce costs and capital expenditures will strengthen our financial position during a period of weak and uncertain market conditions and reserve our large resource base for improved future market conditions.”
The shares of Freeport-McMoRan Inc (NYSE:FCX) have declined by nearly 60% year-to-date despite the strong rise today. Despite the poor share performance, the smart money held a positive outlook for Freeport-McMoRan Inc (NYSE:FCX) during the second quarter. The aggregate holdings were up by 125% to $581.83 million while there were ten more hedge funds with the stock in their portfolio by the end of the quarter, lifting the total to 41.
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Insiders at Freeport-McMoRan Inc (NYSE:FCX) were highly optimistic of its future, making some major insider purchases recently. The aforementioned James C. Flores, President and Chief Executive Officer of Freeport-McMoRan Oil & Gas LLC, purchased 60,000 shares of the company on June 3.