Freeport-McMoRan Copper & Gold of Phoenix, the globe's biggest publicly traded producer of copper and gold, projects to sell 3.85 billion pounds of copper rather than 3.9 billion pounds and 1.4 million ounces of gold instead of 1.5 million ounces, according to the firm's earnings statement from the fourth quarter. The larger projections are from November 2010, when Grasberg, the mine, was believed to be generating stronger production.
"Lower copper sales from Indonesia, resulting from mine sequencing to lower grade ores, are expected to be offset by increases in North America and Africa copper sales, compared to 2010," according to the company's statement.
Grasberg was generating an ore of lower grade, which means that a smaller amount of precious metal can be extracted from each ton of ore.
The firm's chief has said he would like to tap into soaring prices for the two precious metals. But strong action by China has weakened the market, according to an analyst.
"The metals sector is weak across the board after China reported stronger-than-expected economic growth, fueling expectations the Chinese government will more aggressively move to slow the economy," Deutsche Bank analyst Jorge Beristain told Bloomberg.
Learn Futures Technical Analysis with The Market's Spine
Give Your Trading the Backbone it Needs to Succeed, The Market’s Spine is a 34-page futures technical analysis guide that details how to read the backbone of recent market activity, explains a handful of indicators that are well known to institutional and fund traders, and more. Expand your futures technical analysis knowledge here.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.