Freeport Fourth-Quarter Net Income Surges
Freeport-McMoRanInc. (NYSE: FCX),the world’s largest publicly traded copper company but also a significant goldproducer due to by-product metal, lists fourth-quarter net income of $1billion, or 71 cents per share, compared to $292 million, or 21 cents, in thesame period a year ago. After adjusting for net gains of $291 million primarilyrelated to tax benefits associated with U.S. tax reform, partly offset bycharges for adjustments to environmental obligations, adjusted net incometotaled $750 million, or 51 cents. Copper-mining costs per pound fell from ayear ago due to higher by-product credits, the company says. Fourth-quartercopper sales of 1 billion pounds were in line with the October estimate butlower than fourth-quarter 2016 sales of 1.1 billion pounds, primarily due tolower volumes in North America and at Cerro Verde, Freeport says. Fourth-quartergold sales of 593,000 ounces were lower than the October estimate of 625,000,primarily reflecting lower mill rates at PT Freeport Indonesia. However, goldsales were higher than fourth-quarter 2016 sales of 405,000 ounces due tohigher ore grades in Indonesia. Fourth-quarter molybdenum sales of 24 millionpounds were slightly higher than the October estimate of 23 million pounds andyear-ago sales of 22 million pounds. Guidance for sales in 2018 includesapproximately 3.9 billion pounds of copper, 2.4 million ounces of gold and 91million pounds of molybdenum, of which 1 billion pounds of copper, 675,000ounces of gold and 24 million pounds of molybdenum are projected for the firstquarter. For 2017, net income was $1.8 billion, or $1.25 per share, compared toa net loss of $4.2 billion, or $3.16, for 2016. “We are continuing to makesignificant progress in our ongoing negotiations with the Indonesian governmentto restore long-term stability for our Grasberg operations...,” says Richard C.Adkerson, president and chief executive officer. Issues include regulatorychanges, ownership, long-term mining rights through 2041 and construction of asmelter in the country. During the fourth quarter, Freeport repaid $1.7 billionin debt.
By Allen Sykoraof Kitco News; asykora@kitco.com
EndeavourSilver Projects Higher Output In 2018
Thursday January 25, 2018 09:06
EndeavourSilver Corp. (TSX: EDR,NYSE: EXK) says 2018 silver-equivalent productionis expected to increase by 20% from 2017. Endeavour forecasts higherproduction at all three existing mines as well as initial output from a newmine at El Compas by the end of March, with commercial production scheduled forthe end of July. With higher output, costs per ounce are expected to decline,the company says. Silverproduction is anticipated to be in the range of 5.8 million to 6.4 million ounces,while gold output is expected be in a range of 58,000 to 64,000 ounces.Silver-equivalent production is forecast to be between 10.2 million and 11.2million ounces, using a 75-to-1 silver-gold ratio. “We are lookingforward to a much better year, with higher production and lower costs in 2018,owing to improved operating performance at each of the three existing mines andthe development of our fourth mine into commercial production,” says BradfordCooke, chief executive officer.
By Allen SykoraFor Kitco News
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