JP Morgan Maintains Overweight on Freeport McMoRan's Strike Resolution

JP Morgan has published a research report on Freeport-McMoRan Copper & Gold

after the company reached an agreement with its workers in Indonesia. In the report, JP Morgan writes, "This morning, FCX reached an agreement with its workers in Indonesia, ending the strike that started on September 15. The 40% wage increase given to the workers should not significantly impact FCX's cost structure (we estimate a $0.05/lb Cu increase in cash costs for the entire company by year 2). While the company lowered its 4Q guidance for copper and gold sales, we would expect FCX to raise its 2012 production guidance for both in Indonesia as the company has focused on stripping and accelerated maintenance during the strike, which should allow for greater access to the ore in 2012." JP Morgan maintains its Overweight rating on Freeport McMoRan, which is currently trading down $0.29 from yesterday's $38.78 closing price.