Jim Cramer Likes Freeport (FCX)

Jim Cramer said that Freeport McMoran FCX is a buy here, as copper is not going to plummet. He likes the exposure that the company has to gold, which is making all-time highs here. Since the company split its shares, it's been a "dog." Cramer said that it could be a buy right here. The company has a 2% dividend yield and is trading at just over 8 times 2011 earnings, which is incredibly cheap on any metric. The company also announced it would be repurchasing bonds due in 2015 that are yielding 8.25%. Holders of record will receive 104.125 percent of the principal amount together with accrued and unpaid interest from October 1, 2010 to the redemption date. The Notes bear interest at 8.25% per annum. The annual interest cost savings would average approximately $90 million per annum. FCX expects to record an approximate $49 million charge to net income in the second quarter of 2011 in connection with the redemption. At last check, shares of Freeport were up 57 cents to $51.58, a gain of just over 1%. Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. It primarily explores for copper, gold, molybdenum, silver, and cobalt deposits.