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Jim Cramer Says 'No One Cares' About Freeport-McMoRan's Asset Sale To Pay Down Debt

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Jim Cramer Says 'No One Cares' About Freeport-McMoRan's Asset Sale To Pay Down Debt

Shares of Freeport-McMoRan Inc (NYSE: FCX) tumbled more than 8 percent Monday morning after the company announced it has reached an agreement to sell some of its holdings.

Freeport-McMoRan said that it has entered into an agreement to sell its interest in its Africa-based TF Holdings to China Molybdenum Co. for $2.65 billion in cash and future consideration of up to $120 million based on the average copper price through 2019.

In addition, Freeport-McMoRan has agreed to negotiate with China Molybdenum to sell its interests in Freeport Cobalt for $100 million and the Kisanfu Exploration project in the Democratic Republic of Congo (DRC) for $50 million.

CNBC's Jim Cramer commented during Monday's "Stop Trading" segment that "nobody will care" Freeport-McMoRan will use the proceeds from the sale to pay down its debt.

Related Link: Freeport-McMoRan To Sell Stake In TF Holdings For $2.65 Billion

"We are now in that over-the-hump, no one seems to want these mineral and mining stocks," Cramer said.

Cramer added that the price of many metals continue to experience new lows. As such, investors that have been buying mineral and mining stocks should "be careful."

Cramer pointed out that Freeport-McMoRan's stock isn't the only company in the sector that investors should avoid. Other names include Cliffs Natural Resources Inc (NYSE: CLF) and Vale SA (ADR) (NYSE: VALE) – both of which also heavily sold off Monday morning.

At time of writing, Freeport-McMoRan was down 10.94 percent at $10.50.

Posted-In: China MiningAnalyst Color News Commodities Asset Sales Markets Media Trading Ideas Best of Benzinga

 

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