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Freeport Stock Recovering From Sharp Drop After Copper Mine Accident

1. Grasberg mine mud rush kills two; five are missing. 2. Freeport stock fell 17%, copper prices increased by 0.4%. 3. Grasberg produces 3% of global copper, risking $3.5 billion Ebitda loss. 4. Long-term impact on Freeport’s value noted as only 3% decline. 5. Analysts downgrades reflect cautious outlook on Freeport’s stock.

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FAQ

Why Very Bearish?

The mud rush incident led to significant production loss predictions, causing a 17% stock drop. Previous incidents suggest heightened risks may persist, affecting investor confidence.

How important is it?

The incident directly impacts Freeport's major operation, affecting investor confidence and profitability forecasts.

Why Long Term?

Production disruptions could affect Freeport’s revenue until 2026, leading to lasting effects similar to prior incidents.

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