Freeport-McMoRan (FCX)

[eddy2]

Before the subject is left I would like to take a minute and take about how interest works.

Capital cost is tied too capital lent. An example is capital cost is 6% of capital requirement. Capital credit is 1.5 % percent less of capital cost pending on risk. If the risk is covered by collateral then that 4.5 percent is shared giving the one taking the majority of the risk “ collateral holders” the up side over the credit providers. The bank for its administration cost is around 2% of the total capital cost.

You must always work backwards too establish who and what gets how much of the proceeds.