Freeport Strike, In The Words of Analysts

Below are comments from various market analysts discussing the Freeport mine strike in Papua, as quoted in this Reuters article:

  • “Any shutdown will have a serious impact on the prices and market psychology…Major mines do not shut down indefinitely but given the size of this operation, the market cannot take any more bumps.”
  • “I doubt they will close the mine on account of a strike.  Both the company and the workers need to get back to work and it’s a question of who is going to blink first.”
  • “They are going to have to make peace because there is enough mischief that the union can get into that can cause Freeport a lot of difficulty.”
  • “All eyes will be on the company’s Grasberg update and revisions to prior full-year Indonesian segment guidance.”
  • “Assuming Grasberg operated at one-third capacity during the 15 days in the third quarter affected by the strike, we estimate third-quarter consolidated production should be lower by 30 million pounds of copper and 50,000 ounces of gold.”
  • “Freeport is going to have to write down provisionally priced copper from the second quarter and that will have a significant impact on third-quarter results.”

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