Freeport-McMoRan (FCX)

[eddy2]

Ed I will say that a none fulfilment of a futures contract can have bad results unless the company can sell the contract. This is dependent on wether it’s a put future contract or a call.

Gold has been falling allowing the outstanding shares owed to increase. Now the penalty of not filling the contract is going to work against what ever position the company has. It can also hedge that same position if a put was bought or if the company wrote a call.

If the contract is working against the company then often production would ramp down or up depending on the contract position the company holds.

There is also what is referred to as inner contracts that can move the clock into the future or past. The story of Christmas past, present and future illustrates that.


Not every bet comes out in the companies favor. As you know very, very smart people are also counter betting the companies bet. Often they are much more suffiscated in the commodity’s future market then the producer. A producer controls product “supply”. The bankers control the demand through lending criteria and interest rates.

If interest rates rises and the banks choke off the capital markets then commodity prices will drop. The up side is bit coin and the technology it has licensed too others along with an industry consolidation into a true international currency with no borders will have too eventually trade off its intrinsic value for trinsic value like gold. This will bring gold out of its future lows in and around 2025. This is an estimate and pure speculation on my part.

Trade the trending base line and you all will all do fine. Volitility in a declining market is your friend.