Freeport McMoRan CEO Talks About a "Magical Week"
"Last week was a magical week for us," Freeport McMoRan Copper & Gold CEO Richard Adkerson said on "Squawk Box."
The New Orleans mining giant closed on its acquisition of Phoenix-base Phelps Dodge for $26 billion, then boosted a planned stock offering to help cut some of the $17.5 billion debt it took on for the deal.
Freeport’s stock offering has now been upped to $5 billion, from the $3.5 billion originally planned. The company now also has access to the $3.5 billion in cash that was in Phelps Dodge's treasury.
Such large deals and high leverage may seem risky but Adkerson seems to be taking it all in his stride.
“The mining business always involves risk," he said. "We’ve developed arguably the greatest ore body in the history of the mining business in a very tough place.”
Adkerson was also bullish about the outlook for the company.
“If commodity prices stay strong, it’s a slam-dunk, [but] you always have to prepare yourself to deal with a weaker price environment and this deal makes a lot of sense at much lower prices.”