Freeport-McMoRan bets on new output in Indonesia<\/p>\n
Bloomberg, Noordwijk\/New York<\/p>\n
Freeport-McMoRan Copper & Gold Inc., owner of the world's largest
\ngold mine, is concentrating on new gold and copper discoveries in
\nIndonesia to help boost the company's stock price, Chief
\nExecutive Richard Adkerson said.<\/p>\n
New Orleans-based Freeport will concentrate on exploring for
\ngold and copper in the remote highlands of Indonesia's Papua
\nafter favorable initial prospecting in the region, Adkerson said
\nin an interview in Noordwijk, Netherlands.<\/p>\n
\"There's copper and gold in the minerals and certain prospects
\nare purely gold. It's something the management team is very
\nexcited about,\" he said.<\/p>\n
\"We've done some field work and identified some interesting
\nprospects.\"<\/p>\n
Further analysis will be needed to determine specific amounts,
\nAdkerson said.<\/p>\n
The company is betting on further mineral discoveries, as well
\nas share buybacks and special-dividend payouts, to boost its
\nshare price, he said. Freeport's stock has fallen about 15
\npercent in the last two months.<\/p>\n
\"The shares are trading at a very attractive multiple in
\nrelation to other companies because we are located in Indonesia
\nand because it's a single asset,\" he said, referring to the
\ncompany's Grasberg mine, the world's second-largest copper mine,
\nlocated in Papua.<\/p>\n
High commodity prices and an improvement in political risk in
\nIndonesia have prompted the company to start exploration in the
\nhighland areas near the mine, he said.<\/p>\n
\"Indonesia as a country is undergoing significant improvements
\nand that should help investor perceptions of our company,\"
\nAdkerson said.<\/p>\n
The company has about 40 billion pounds of probable and proved
\ncopper reserves and 46 million ounces of gold. Production in a
\nnormal year is about 1.3 billion pounds of copper and 2.2 million
\nounces of gold, he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeport-mcmoran-bets-on-new-output-in-indonesia-1447893297",
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"sponsor": "Okusi Associates",
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