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.