Freeport-McMoRan Inc. Reports Much Improved Q2 Results


Freeport-McMoRan Inc. (FCX ), headquartered in Phoenix, Arizona, operates one of the world’s largest copper and gold deposits in the Grasberg minerals district in Indonesia and significant copper, gold and molybdenum mining operations in the Morenci minerals district in North America and the Cerro Verde operation in South America. Today they posted their Q2 financial results as follows:

SUMMARY FINANCIAL DATA

  • Revenue: UP 11.3% to $3,711 million
  • Operating income: UP to $669 million from a $18 million profit in the same period a year ago
  • Net income from continuing operations: UP to $326 million from a loss of $229 million in the same period a year ago 
  • Diluted net income per share of common stock: UP to $0.18/share compared to ($0.23) in the same period a year ago
  • Operating cash flow: UP 18.6% to $1,037 million  
  • Cash and cash equivalents: UP to $4,667 million from $330 million in the same period a year ago
  • Total debt: DOWN 20% to $15,354 million
  • SUMMARY OPERATING DATA

    Copper

  • Production: DOWN 12.7% to 883 million recoverable pounds from the same quarter a year ago
  • Sales: DOWN 4.5% to 942 million pounds
  • Average realized price per pound: UP 21% to $2.65
  • Site production & delivery costs per pound: UP 16.3% to $1.64
  • Net cash cost per pound: DOWN 9.8% to $1.20
  • Gold

  • Production: UP 112.6% to 353 thousand troy ounces
  • Sales: UP 176.9% to 432 thousand troy ounces
  • Average realized price per troy ounce: DOWN 3.8% to $1,243
  • Molybdenum

  • Production: UP 21% to 23 million pounds
  • Sales: UP 31.6% to 25 million pounds
  • Average realized price per pound: UP 14.9% to $9.58
  • 2017 Guidance

    Sales volumes for the year 2017 are expected to approximately

  • 3.7 billion pounds of copper,
  • 1.6 million ounces of gold and
  • 93 million pounds of molybdenum,
  • Estimated sales volumes for the year 2017 are lower than April 2017 estimates by approximately 150 million pounds of copper and 320 thousand troy ounces of gold, principally attributable to lower mining rates in the Grasberg open pit associated with reduced manpower levels and modifications to the ramp-up schedule for the Deep Mill Level Zone (DMLZ) underground mine. These shortfalls are expected to be recovered in future periods.

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