Goldman Sachs cuts Freeport-McMoRan rating

Goldman Sachs said Monday it has cut its investment rating on mining company Freeport-McMoRan Copper & Gold Inc. to ``market outperform'' from its ``recommended'' list.

Reuters quoted analyst Daniel McConvey, in a research note, cited the stock's recent price gains. The shares have appreciated 51 percent since July 31.

``The risk reward profile is no longer as attractive despite the nearing of 2003, when we believe copper prices will improve,'' McConvey wrote. ``We recommend that investors who are heavily overweight Freeport take some profits.''

He estimated Freeport's share price is already discounting long-term copper and gold prices of US $0.90 per pound copper and $300 per ounce gold.

McConvey increased his price target to $19 by Feb. 4, 2003 from $17 by July 31, 2002. The shares closed Friday at $15.85

Freeport-McMoRan, through its subsidiary PT Freeport Indonesia, operates a giant copper and gold mine in Papua province.(*)