Freeport-McMoRan Inc. Reports Unaudited Consolidated Earnings and Production Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Consolidated Earnings Guidance for the Year 2018
January 25, 2018 at 08:00 am EST
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Freeport-McMoRan Inc. reported unaudited consolidated earnings and production results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported revenues of $5,041 million compared to $4,377 million a year ago. Operating income was $1,467 million compared to $703 million a year ago. Income from continuing operations before income taxes and equity in affiliated was $1,325 million compared to $492 million a year ago. Net income attributable to common shareholders was $1,041 million or $0.71 per diluted share compared to $292 million or $0.21 per diluted share a year ago. Capital expenditures for fourth-quarter 2017 totaled $390 million. Adjusted net income attributable to common stock was $750 million or $0.51 per share compared to $351 million or $0.25 per share a year ago. Operating cash flows totaled $1.7 billion (including $0.2 billion in working capital sources and timing of other tax payments) for fourth-quarter 2017.
For the year, the company reported revenues of $16,403 million compared to $14,830 million a year ago. Operating income was $3,633 million compared to operating loss of $2,792 million a year ago. Income from continuing operations before income taxes and equity in affiliated was $2,902 million compared to loss from continuing operations before income taxes and equity in affiliated of $3,472 million a year ago. Net income attributable to common shareholders was $1,817 million or $1.25 per diluted share compared to net loss attributable to common shareholders of $4,154 million or $3.16 per diluted share a year ago. Net cash provided by operating activities was $4,682 million compared to $3,729 million a year ago. Capital expenditures were $1.4 billion for the year 2017. Adjusted net income attributable to common stock was $1,704 million or $1.17 per share compared to $310 million or $0.23 per share a year ago.
For the quarter, the company reported copper production of 1,007 million recoverable pounds compared to 1,131 million a year ago. Gold production was 567,000 recoverable ounces compared to 430,000 recoverable ounces a year ago.
For the year, the company reported copper production of 3,737 million recoverable pounds compared to 4,222 million a year ago. Gold production was 1,577,000 recoverable ounces compared to 1,088,000 recoverable ounces a year ago.
The company provided consolidated earnings guidance for the year 2018. Capital expenditures for the year 2018 are expected to approximate $2.1 billion, including $1.2 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district and development of the Lone Star oxide project. Consolidated sales for the year 2018 are expected to approximate 3.9 billion pounds of copper, 2.4 million ounces of gold and 91 million pounds of molybdenum, including 1.0 billion pounds of copper, 675,000 ounces of gold and 24 million pounds of molybdenum for first-quarter 2018. Operating cash flows for the year 2018 are expected to exceed $5.8 billion.
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 Fourth Quarter and Full Year Ended December 31, 2017; Provides Consolidated Earnings Guidance for the Year 2018