Shipping delays see Freeport miss sales target

By Tom Hoskyns / July 23, 2021 / www.mining-journal.com / Article Link

Sales totalled 929 million pounds of copper, 5% below the company's April estimate of 975lb.

"Logistics is an issue globally," Richard Adkerson, Freeport's CEO, said on the company's earnings call.

Production was flat quarter on quarter at 913Mlbs, while average copper prices of US$4.34 (up from $3.94/lb in Q1) saw the company deliver net income of US$1.1 billion.

Operating cash flow amounted to US$2.4 billion, up from US$1.1 billion at the end of March.

Analysts at Jefferies said the results were "at least as good as expected from an underlying basis".

On future production, Freeport said the ramp-up of underground production at Grasberg in Indonesia continued to advance on schedule. This will boost copper volumes to 1.55Blb over the coming years from about 1.3Blb in 2021.

In North America, the company said it was looking at ways of increasing production at Lone Star to over 300Mlb annually from current design capacity of about 200Mlb.  

"The outlook for the company is arguably improving as management continues to provide additional colour regarding the company's unique, high quality, low risk organic growth pipeline," said Jefferies.

Recent News

Major investment banks make major gold price upgrades

April 15, 2024 / www.canadianminingreport.com

Gold stocks near flat as equities dip

April 15, 2024 / www.canadianminingreport.com

Revenue estimates for gold stocks have remained relatively flat

April 08, 2024 / www.canadianminingreport.com

Gold stock valuations remain low even after price surge

April 08, 2024 / www.canadianminingreport.com

Gold stock to global money supply far from bubble territory

April 01, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok