Freeport extraordinarily positive on copper as solid Q3 earnings beat expectations

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(Kitco News) - Strong copper prices and lower input costs led Freeport-McMoRan (NYSE: FCX) solid earnings in thethird quarter.

Thursday, the giant copper producer reported net incomeattributable to common stock in third-quarter 2021 of $1.4 billion, or $0.94per share; adjusted net income attributable to common stock totaled $1.3billion, or $0.89 per share, after excluding net credits totaling $79 million,$0.05 per share, the company added.

Looking at production numbers, Freeport said that itproduced 987 million pounds of copper, up compared to 844 million poundsproduced in the third quarter of 2020. The company also saw its gold productionincrease to 374,000 ounces, up from 237,000 ounces produced last year.

"Average realized prices in third-quarter 2021 were$4.20 per pound for copper, $1,757 per ounce for gold and $18.61 per pound formolybdenum," the company said.

The company said that average unit net cash costs in third-quarter2021 were $1.24 per pound of copper. At the same time costs are expected toaverage $1.33 per pound of copper for the year.

"Our favorable results in the third quarter andyear-to-date reflect strong execution by our global team in growing ourproduction safely, efficiently and responsibly. We have established a solidfoundation for the future as a leading long-term supplier of copper to supporta growing global economy and the transition to clean energy," said RichardAdkerson, Chairman and Chief Executive Officer of Freeport said in a statement.

"We have successfully transitioned our Grasbergminerals district to be the world’s largest underground block-caving operationwhile maintaining excellent performance throughout our global operations. Ourbalance sheet is strong and we are prepared to make value enhancing investmentsin our business while providing shareholders with increasing cash returnsconsistent with our established financial policy. The outlook for the coppermarket is extraordinarily positive. As a leader in the global copper industry,Freeport is well positioned for success in generating value for allstakeholders," Adkerson added.

By Neils Christensen

For Kitco News

Follow neils_Cnchristensen@kitco.comwww.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.

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