HOTTER ON METALS: Now is not the time for M&A, Freeport CEO says

Now is not the time for Freeport-McMoRan to be thinking about mergers and acquisitions, the mining company’s chief executive officer says.

According to Richard Adkerson, the company - which is just over half-way through a mega-project to transform its giant Grasberg copper-gold mine in Indonesia from an open-pit to an underground operation - is on the verge of creating huge shareholder value. “I just don’t believe, as a shareholder, that there’s any way that we would want to consider a merger of equals right now, where we would dilute the opportunity that we have as a standalone company that’s so attractive,” he said during the company’s third-quarter earnings call this week. “We worked for it for a long time, and I believe we’re on the verge of really good things happening at Freeport,” he said. “While we’ve made great progress, we’re less than 60% there in terms of the volumes that we’ll achieve at Grasberg. Even though copper markets are strong now, there are factors working today that could well make copper much more...

Published

Andrea Hotter

October 23, 2020

18:05 GMT

New York