Freeport Reports Higher 1Q Net income; Copper, Gold Output Rise
Freeport-McMoRanInc. (NYSE: FCX) reports first-quarter net income rose to $692 million,or 47 cents per share, from $228 million, or 16 cents, in the same period ayear ago. After adjusting for net gains of $13 million, the adjusted profit was$679 million, or 46 cents. Freeport is the world’s largest publicly tradedcopper company but is also a major gold producer. First-quarter copper sales of993 million pounds were in line with the January estimate of 1 billion and werehigher than first-quarter 2017 sales of 809 million pounds, primarilyreflecting higher operating rates in Indonesia, Freeport says. First-quartergold sales of 610,000 ounces were lower than the January estimate of 675,000,primarily because of lower-than-expected mill throughput rates associated withmaintenance activities at Grasberg. However, gold sales were higher than182,000 in the year-ago quarter due to higher ore grades and operating rates inIndonesia. First-quarter molybdenum sales of 24 million pounds were in linewith the January estimate and year-ago total. “We continue to engage innegotiations with the Indonesian government to restore long-term stability forour Grasberg operations and look forward to reaching a mutually positiveresolution,” says Richard C. Adkerson, president and chief executive officer.The company is in talks with the government over mining rights and constructionof a smelter. “Our improved financial position enabled our board to reinstatecash dividends to shareholders and a continuation of strong results andpositive market conditions will enable further strengthening of our balancesheet, investments in attractive long-term growth projects and theconsideration of additional cash returns to shareholders,” Adkerson says. Lastmonth, Freeport declared a quarterly cash dividend of a nickel per share, whichwill be paid on May 1. Consolidatedsales for the year 2018 are expected to be around 3.8 billion pounds of copper,2.4 million ounces of gold and 95 million pounds of molybdenum, including 970million pounds of copper, 700,000 ounces of gold and 24 million pounds ofmolybdenum for the second quarter.
By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.