UPDATE 1-Freeport stock sinks as Indonesian copper mine uncertainty rattles market
(Adds quotes from Indonesian government)
TORONTO/JAKARTA, July 25 (Reuters) - Shares of diversified miner and energy producer Freeport-McMoRan sank for a second session on Friday, as uncertainty around Indonesian mining contracts added to worries about spending plans, high debt and falling commodity prices.
The Phoenix, Arizona-based company has assured analysts it fully expects the Indonesian government to issue a six-month export renewal on Saturday, when the current permit expires.
According to the Indonesian government, however, the firm still needs to show its commitment to building a second copper smelting facility by setting aside an estimated $80 million into an escrow account.
"They haven't completed the terms," Coal and Minerals director general Bambang Gatot told reporters late on Friday, adding that his next meeting with executives is on Monday. It was not immediately clear if Freeport's exports would be stopped.
"It depends what happens in the field," Gatot said. "The port may still allow them."
Questions also remain surrounding its longer-term contract.
Freeport's stock tumbled 10 percent to $12.27 on New York on Friday, after a 9 percent drop Thursday, as several analysts cut price targets.
Over the past two days, Freeport's market capitalization has shed some $2.9 billion, dropping to $12.75 billion on Friday afternoon from $15.66 billion at the close Wednesday. Continued...