Freeport to grow copper, gold volumes by up to 40%

Grasberg (pictured) is the world's second-largest copper mine, as well as being one of the five-biggest gold mines.( Screenshot from Time-lapse video | YouTube.)

Freeport-McMoRan (NYSE: FCX) announced on Monday that it will grow its copper and gold volumes by 30 to 40%.

The company also said it will reduce net unit cash costs of copper by 25% to approximately $1.30 per pound and more than double its cash flows by 2021, compared with 2019.

Freeport said in the release that it remains focused on increasing volumes from its underground orebodies in Papua, Indonesia.

Quarter-to-date through March 5, 2020, production from the Grasberg Block Cave and Deep MLZ orebodies averaged approximately 35,000 metric tonnes of ore per day, 35% above the fourth quarter 2019 average and in line with expectations, Freeport said.

The Lone Star project in Arizona is nearing completion and is expected to be commissioned during 2020

The Lone Star project in Arizona is nearing completion and is expected to be commissioned during 2020.

At copper prices ranging from $2.75 - $3.00 per pound, Freeport estimates free cash flow generation ranging from an average of over $2 billion to nearly $3 billion per annum in 2021 and 2022.

Freeport also announced that there have been no significant disruptions to its supply chain or product shipments since the outbreak of the Coronavirus. The Company continues to monitor the situation closely and will carefully manage all costs, capital expenditures and production plans during this period of uncertainty, it said.