Commodity plays are some of the most risky companies we examine here at TOE, so it is not very often we get involved with these names. But when the timing is right, rewards can be substantial. Back in his project finance days, Mark financed about a dozen mining operations and the key to success in this endeavor is to focus on the low-cost producer. This is the key to success in any commodity or commoditized business. Freeport-McMoRan Inc. engages in the mining of mineral properties in the United States, Indonesia, Peru, and Chile. It produces a copper concentrate, copper cathode, copper rod, gold, molybdenum, silver, and other metals. The company's portfolio of assets includes the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde and El Abra mines in South America. In the area of the company's core competency of mining, nobody is better than FCX. Due to the production at the Grasberg mine in Indonesia, FCX is a global low-cost producer.
