This Copper Miner Is Still Cheaphttp://www.fool.com/investing/general/2011/11/16/this-copper-miner-is-still-cheap.aspx Jim Mueller
November 16, 2011
This article is part of our Rising Star Portfolios series.
It's been a bit over a month since I first purchased shares of Freeport-McMoRan Copper & Gold (NYSE: FCX ) for my Messed-Up Expectations portfolio. A month ago, I felt the shares were cheap because Mr. Market seemed convinced the world was coming to an end. Well that hasn't happened (yet), and I still believe the share price of Freeport is cheaper than the value of the company.
Three reasons to buy
Those haven't changed.
First, over the first nine months of this year, average cash cost per pound of copper has been $0.84, nicely below last year's level of $0.87. With copper currently trading at about $3.45 per pound, Freeport is nicely profitable.
Second, its balance sheet remains as strong as ever. Especially pleasing is that Freeport has increased its net cash position by more than $700 million in the last quarter.