Freeport-McMoRan Inc. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2018; Provides Production Guidance for the Second Quarter and Full Year of 2018 and Earnings Guidance for the Full Year of 2018
April 24, 2018 at 08:00 am EDT
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Freeport-McMoRan Inc. reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2018. For the quarter, the company's revenues were $4,868 million compared to $3,341 million a year ago. Operating income was $1,459 million compared to $597 million a year ago. Income from continuing operations before income taxes and equity in affiliated companies' net earnings was $1,336 million compared to $438 million a year ago. Net income from continuing operations was $828 million compared to $268 million a year ago. Net income was $817 million compared to $306 million a year ago. Net income attributable to the company common stock was $692 million compared to $228 million a year ago. Basic and diluted net income per share attributable to common stockholders from continuing operations was $0.48 compared to $0.13 a year ago. Basic and diluted net income per share attributable to common stockholders was $0.47 compared to $0.16 a year ago. Net cash provided by operating activities was $1,369 million compared to $792 million a year ago. Adjusted net income after tax was $679 million compared to $220 million a year ago. Adjusted net income per share was $0.46 compared to $0.46 a year ago. Capital expenditures for first-quarter 2018 totaled $402 million (including approximately $250 million for major mining projects).
The company announced consolidated production results for the first quarter ended March 31, 2018. For the quarter, the company's copper production was 952 million of recoverable pounds compared to 851 million of recoverable pounds a year ago. Gold production was 599,000 of recoverable ounces compared to 239,000 of recoverable ounces a year ago. Molybdenum production was 22 million of recoverable pounds compared to 23 million of recoverable pounds a year ago.
Based on current sales volume and cost estimates, and assuming average prices of $3.15 per pound for copper, $1,300 per ounce for gold and $12.00 per pound for molybdenum for the remainder of 2018, operating cash flows are expected to approximate $5.6 billion (including $0.2 billion in working capital sources and timing of other tax payments) for the year 2018. Capital expenditures for the year 2018 are expected to approximate $2.0 billion, including $1.1 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and development of the Lone Star oxide project in Arizona.
Sales volumes for the year 2018 are expected to approximate 3.8 billion pounds of copper, 2.4 million ounces of gold and 95 million pounds of molybdenum.
The company expects 970 million pounds of copper, 700,000 ounces of gold and 24 million pounds of molybdenum in second-quarter 2018.
Freeport-McMoRan Inc. specializes in the exploration and operation of copper and gold mines located primarily in the United States, Peru, Chile, Indonesia and Congo. Net sales break down by family of products as follows:
- copper (74.6%): refined copper and copper concentrates (4.1 billion ounces sold in 2023);
- gold (14.5%): 1,713,000 ounces sold;
- molybdenum (8.4%): 1.3 billion ounces sold;
- other (2.5%).
Net sales are distributed geographically as follows: the United States (31.8%), Switzerland (17.4%), Japan (15%), Spain (5.5%), Singapore (5.1%), China (4.7%), Indonesia (3.3%), Germany (3.1%), Chile (1.9%), the United Kingdom (0.7%), and other (11.5%).
Freeport-McMoRan Inc. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2018; Provides Production Guidance for the Second Quarter and Full Year of 2018 and Earnings Guidance for the Full Year of 2018