Turning Copper to Cash

Feature | SATURDAY, OCTOBER 22, 2011

By LESLIE P. NORTON

Freeport-McMoRan Copper & Gold trades for far less than the value of its mining assets. The company could be a major beneficiary of the red metal's rebound—or a takeover offer.

"Freeport's $33 billion market value is far below replacement value, or the value to a strategic buyer seeking decades of reserves. This year Barrick Gold (ABX) paid $7.5 billion to buy Australian copper miner Equinox Minerals, a price, says Credit Suisse, that would peg Freeport's copper resources at about $123 billion, or $129 a share—not including its gold or molybdenum."
 

http://online.barrons.com/article/...704766704576641320442862238.html