Freeport-McMoRan Upgraded; Barrick Gold Downgraded; Commercial Metals Reports Earnings; Ivanhoe Electric Advances Santa Cruz Copper Project

Top Stories for Jan. 8, 2024:

1. Freeport-McMoRan Inc. FCX was upgraded from Market Perform to Outperform, with its price target raised from $41 to $48.50 by an analyst at Bernstein.

2. Meanwhile, Barrick Gold Corporation GOLD was downgraded from Outperform to Market Perform by an analyst at Bernstein, with no price target given.

3. Commercial Metals CMC reported earnings of $1.49 per diluted share (year-over-year decline of 33%) on net sales of $2 billion (year-over-year decline of 9%), with free cash flow of $194.1 million.

President and Chief Executive Officer Peter Matt commented, "Our business again generated very strong financial results during the first quarter, with core EBITDA, core EBITDA margin and cash flows continuing at historically strong levels. Performance in our North America Steel Group was supported by sustained healthy construction activity and near-record margins on our downstream products. While steel product margins experienced compression in the quarter, market developments indicate this trend should halt or reverse in the coming months."

"Our Europe Steel Group performed well against a market environment challenged by weaker demand and lower product margins. Encouragingly, selling prices and metal margins on long products began to improve midway through the quarter, and several green shoots have emerged that could bolster the Polish market in the quarters ahead," he added.

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4. Ivanhoe Electric Inc. IE provided an update on its Santa Cruz copper project in Arizona, which has completed significant development and exploration drilling since September 2023, totaling 37 drill holes and over 25,000 meters. The work is part of ongoing technical efforts toward a Preliminary Feasibility Study expected by mid-2025.

Key findings include the discovery of a high-grade oxide copper zone at Santa Cruz, grading 2.85% total copper, and step-out mineralization at Texaco Ridge, grading 0.81% total copper. The project's landholdings have also expanded significantly, now encompassing over 18,700 acres.

Executive Chairman Robert Friedland said, "Our extensive exploration and development drilling programs at the Santa Cruz Copper Project have yielded very strong results and continue to uncover the full potential of the project."

"By incorporating sustainable technologies and renewable energy into the upcoming Prefeasibility Study and leveraging cutting-edge underground material handling methods, we are advancing studies at Santa Cruz for a modern, high-grade underground copper mine with very low projected carbon dioxide-equivalent emissions," he added.

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