Solid Freeport

Freeport-McMoRan Copper and Gold (NYSE: FCX), the world's largest publicly traded copper producer, took a 96 percent earnings hit in its March quarter over last year. Nevertheless, improving copper prices are leading to higher share values.

For the quarter, copper sales reached 1 billion pounds, up from 911 million pounds a year ago. And sales of 545,000 ounces of gold far outstripped the 280,000 ounces sold in the first quarter of 2008. But economic conditions chopped Freeport's molybdenum volume in half, to 10 million pounds, as the average realized molybdenum price plummeted to $11.52 a pound, from above $30.

Freeport CEO Richard Adkerson has expressed confidence that demand for copper from China is "clearly sustainable," noting that China is building a new infrastructure, including transportation and power facilities and housing, all of which need copper.

Freeport's share price has fluctuated dramatically during the past year, from about $125 in May 2008 to below $20 in December, and recently near $40. But with its geographic diversity and strong asset base, Freeport is a solid company, which should benefit from commodities demand from developing nations and an eventual global economic recovery. It deserves continued monitoring by those with a yen for metals and mining.