Finance 0

Freeport-McMoRan Inc. Reports Much Improved Q2 Results

By Kurt Osterberg · On July 25, 2017

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.