For those paying attention to copper and not oil, Freeport-McMoRan (FCX) smashing Q4 earnings estimates wasn't surprising. The copper miner beat estimates by $0.11 in reporting a small $0.02 loss. The stock trades for only $4 due to overblown fears on liquidity concerns. The key to the story is that Freeport-McMoRan is on pace for operating cash flows equaling capex for this year despite spending $600 million on idle rig costs. The number turns to $1.2 billion in positive cash flow in 2017. Not to mention, the current copper price of $2.05/lb provides upside along with any rebound in the red commodity. Right now a $0.10 increase in copper provides a $440 million impact to cash flows. Freeport-McMoRan remains a risky stock, but at the current price it offers potential high rewards as the market misunderstands the financial position. Disclosure: No position