Copper, gold miner to report 2Q earnings Tuesday

OVERVIEW: The mining giant, which also produces gold and molybdenum around the world, has benefited from a tight supply for copper this year, particularly with growing international demand, especially from Asian countries.

This month has delivered some positive news for Freeport-McMoRan. Its stock rose nearly 4 percent Friday after Brazilian iron ore producer Companhia Vale do Rio Doce SA said it was not interested in acquiring the Phoenix-based company. In addition, Freeport-McMoRan's operation in Peru was excluded from a nationwide mine strike in that country, because union workers agreed to continued talks instead of a walkout.

However, there are some concerns that the slumping U.S. housing market could slow demand for copper, and about recent price declines for precious metals such as copper, silver and gold.

BY THE NUMBERS: Analysts surveyed by Thomson Financial forecast, on average, earnings per share of $2.44 and revenue of $5.24 billion.

ANALYST TAKE: Analysts believe Freeport-McMoRan will turn in a good quarter because copper prices remained fairly strong during the second quarter despite the nation's housing slowdown. Argus Research analyst Bill Selesky said Monday that copper prices are up at least 6 percent on a year-over-year basis.

Selesky and other analysts say the copper market remains strong internationally, particularly in Asia.

WHAT'S AHEAD: Freeport-McMoRan will continue with projects to start a mine complex in Safford, Ariz., refurbish a copper mill at Morenci, Ariz., and restart a molybdenum mine in Climax, Colo. Investors will watch commodities markets for any sign of a slowdown.

STOCK PERFORMANCE: Shares rose 22 percent during the quarter to end at $117.19. The stock since given back some of the gain, closing Monday at $107.01.