Freeport-McMoRan (FCX) hit $45.24 today, the highest it’s been in 10 years. Starting from January 6, the stock price commenced surging, as a result, the growth over this period amounted to 11.6%. At the time of writing, the stock is trading at $44.49. Freeport-McMoRan is based on the extraction of minerals such as copper, gold, silver, oil, and gas in North and South America, as well as in Indonesia. About a year ago, it had 165 wells at its disposal.
Given the rapidly spreading Omicron variant, supply chain problems, and lack of workers, companies like Freeport-McMoRan are unlikely to succeed in the short term. Experience suggests that the new strain could affect this industry in the same way as COVID-19. Recall that during the pandemic, the demand for industrial metals instantly decreased, production declined or stopped altogether, thus damaging the entire economy. Since there is a shortage of specialists, wages increase dramatically, which can hurt income. However, companies plan to make a profit by investing in technology, cutting costs, and creating reserves. Please note that these are only assumptions and the reality may differ markedly from the above forecasts.