Freeport Shares Too Expensive, Cliffs Ready To Issue New Senior Notes By 2025

NEW YORK, NY / ACCESSWIRE / March 29, 2017 / Freeport-McMoRan Inc. has been receiving criticism about the value of its stock price. The shares are now deemed too expensive and not worth buying by the industry’s most prominent analysts. It comes as no surprise, given the company’s low turnover over the past 12 years. Cliffs Natural Resources is re-engineering its financial administrative organ. Let’s see how the two miners are performing at the stock exchange market.

RDI Initiates
Coverage:

Freeport-McMoRan Inc. https://ub.rdinvesting.com/news/?ticker=FCX

Cliffs Natural
Resources Inc. https://ub.rdinvesting.com/news/?ticker=CLF

The mining firm’s stock price is currently fluctuating in between $12.1 and $12.7, having reached a low of $12.15 earlier yesterday morning. Currently at $12.59, the mining firm’s volume of trade yesterday crossed 22.9 million.

Experts still insist the current stock is yet to be convincingly worth buying. Analysts cite slow turnover, with the company having delivered a cumulative 4% return since 1995. With an average 2.6% return on dividend, the current share price is on the higher end, according to industry analysts. The stock price has fell by an average 25% from the recent highest trade level. Experts also have it that the slow upward trend is unlikely to change, deeming the stock price too expensive and non-worthy.

Access RDI’s Freeport-McMoRan Research Report at: https://ub.rdinvesting.com/news/?ticker=FCX

Cliffs’ stocks have been almost stagnant, holding water at the $8.27 mark, with the dip and surge rate being 2.9% and 1.6% respectively. The share price however hit lows of $8.03 earlier yesterday morning, with the trading volume currently standing a bit over the 14 million mark.

Overall, the company’s annual performance has been astronomical, but recent data reveals a 26% dip in the share price from the all-time high of $12.37 to the current $8.27. As of February 2017, there were plans underway to issue 500 million senior notes due 2025. The notes are secured by Cliff’s domestic subsidiaries. Proceeds from the issuance of notes will most likely be used for redeeming two senior secured notes due 2020. The financial re-engineering is expected to bring savings of 50 million in interest expense to the company. The company is currently cleaning up its balance sheet, but analysts warn of an imminent shareholder dilution.

Access RDI’s Cliffs Natural Resources Research Report at:
https://ub.rdinvesting.com/news/?ticker=CLF

Our Actionable Research on Freeport-McMoRan Inc. (NYSE: FCX) and Cliffs Natural Resources Inc. (NYSE: CLF) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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