Earnings Review and Free Research Report: Freeport-McMoRans Revenue Jumped 11%; Beat Expectations

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Accesswire 2-Aug-2017 7:00 AM
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LONDON, UK / ACCESSWIRE / August 2, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Freeport-McMoRan Inc. (NYSE: FCX) ("FCX"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FCX, following the Company's posting of its second quarter fiscal 2017 earnings results on July 25, 2017. The world's-biggest publicly listed copper miner, turned profitable compared to the year ago same period. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FCX. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the quarter ended June 30, 2017, FCX reported revenues of $3.71 billion, up 11% compared to revenue of $3.33 billion in Q2 2017. The Company's revenue numbers exceeded analysts' expectations of $3.68 billion.
FCX's net income attributable to common stock totaled $268 million, $0.18 per share, for Q2 2017 compared with net losses attributable to common stock of $479 million, or $0.38 per share, for Q2 2016. After adjusting for net gains of $27 million, $0.01 per share, for the reported quarter and $452 million, or $0.36 per share, for the prior year's same quarter, adjusted net income attributable to FCX's common stock totaled $241 million, or $0.17 per share, for Q2 2017 against a loss of $27 million, or $0.02 per share, for Q2 2016. The Company's earnings numbers fell short of Wall Street's estimates of $0.20 per share.
Segment Details
During Q2 2017, Average realized prices were $2.65 per pound for copper, $1,243 per ounce for gold, and $9.58 per pound for molybdenum. Consolidated average unit net cash costs for FCX's copper mines was $1.20 per pound of copper in Q2 2017 which was lower than unit net cash costs of $1.33 per pound in Q2 2016, primarily reflecting higher by-product credits, partly offset by lower copper sales volumes. Assuming average prices of $1,250 per ounce of gold and $7.50 per pound of molybdenum for H2 2017 and achievement of current sales volume and cost estimates, consolidated unit net cash costs for copper mines are expected to average $1.19 per pound of copper for the year 2017.
In Q2 2017, copper sales were 942 million pounds which were lower than the April 2017 estimates of 975 million pounds, primarily reflecting the impact of worker absenteeism on mining and milling rates in Indonesia. The reported quarter copper sales were also lower than the prior year's same quarter sales of 987 million pounds, primarily reflecting anticipated lower ore grades in North America and lower leach production and recoveries in South America.
During Q2 2017, gold sales of 432 thousand ounces were slightly lower than the April 2017 estimates of 440 thousand ounces but were higher than Q2 2016 sales of 156 thousand ounces, primarily reflecting higher ore grades from Indonesia.
Sales of molybdenum totaled 25 million pounds in Q2 2017 and were slightly higher than the April 2017 estimates of 24 million pounds and higher than Q2 2016 sales of 19 million pounds.
Sales volumes for the year 2017 are expected to be approximately 3.7 billion pounds of copper, 1.6 million ounces of gold, and 93 million pounds of molybdenum, including 940 million pounds of copper, 375 thousand ounces of gold, and 22 million pounds of molybdenum in Q3 2017.
Mining Details
North America's consolidated copper sales volumes of 408 million pounds in Q2 2017 were lower than Q2 2016 sales of 464 million pounds, primarily reflecting lower ore grades. Average unit net cash costs for the North America copper mines of $1.53 per pound of copper in the reported quarter were higher than unit net cash costs of $1.40 per pound in the prior year's corresponding quarter, primarily reflecting lower sales volumes, partly offset by higher by-product credits.
FCX's South America region reported consolidated copper sales volumes of 287 million pounds, lower than Q2 2016 sales of 327 million pounds, primarily reflecting lower mining rates, ore grades, and recoveries. The regions average unit net cash costs for South America mining totaled $1.65 per pound of copper in the reported quarter, higher than unit net cash costs of $1.31 per pound in the year ago comparable period.
During Q2 2017, Indonesia's consolidated sales of 247 million pounds of copper and 427 thousand ounces of gold, were higher than Q2 2016 sales of 196 million pounds of copper and 151 thousand ounces of gold, primarily reflecting the sale of concentrate in inventory and higher ore grades, partly offset by lower mill rates. Indonesia's unit net cash costs (including gold and silver credits) were $0.13 per pound of copper in the reported quarter, lower than unit net cash costs of $1.20 per pound in the year earlier same quarter.
Cash Matters
For Q2 2017, FCX's operating cash flows totaled $1.0 billion. Based on current sales volume and cost estimates, and assuming average prices of $2.65 per pound for copper, $1,250 per ounce for gold, and $7.50 per pound for molybdenum for the second half of 2017, operating cash flows for the year 2017 are expected to approximate $3.8 billion.
FCX's capital expenditures totaled $362 million for Q2 2017 and $706 million for H1 2017. Capital expenditures for the year 2017 are expected to be approximately $1.6 billion, including $0.7 billion for underground development activities in the Grasberg minerals district in Indonesia, which depends on a resolution of PT Freeport Indonesia's (PT-FI) long-term operating rights.
At June 30, 2017, FCX's consolidated cash totaled $4.7 billion and consolidated debt totaled $15.4 billion compared with $4.2 billion of consolidated cash and $16.0 billion of consolidated debt at December 31, 2016. FCX had no borrowings and $3.5 billion available under its revolving credit facility at June 30, 2017.
Stock Performance

On Tuesday, August 01, 2017, the stock closed the trading session at $14.49, marginally down 0.89% from its previous closing price of $14.62. A total volume of 18.98 million shares have exchanged hands. Freeport-McMoRan's stock price surged 20.65% in the last one month, 13.92% in the past three months, and 16.11% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 9.86%. The stock is trading at a PE ratio of 20.24 and currently, has a market cap of $20.97 billion.

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