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Freeport-McMoRan 2Q Profit Rises; Copper, Gold Output Higher

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Freeport-McMoRan Inc. (NYSE: FCX), the world’s largest publicly traded copper company but also a major gold producer, reports  net income rose to $869 million, or 59 cents per share, in the second quarter from $268 million, or 18 cents, in the same period a year ago. After adjusting for special gains of $16 million, adjusted net income was $853 million, or 58 cents, in the recently completed quarter. "Our second-quarter results reflect strong performance from our global operations and a continued focus on productivity, cost management and capital discipline,” says Richard C. Adkerson, president and chief executive officer. “During the first half of 2018, we generated $2.7 billion in cash flow from operations and capital expenditures totaled $0.9 billion, enabling further strengthening of our balance sheet….” Freeport says it paid off $454 million in debt in April. Second-quarter copper sales of 989 million pounds topped the April guidance of 970 million and also were higher than 942 million in the second quarter of 2017. Second-quarter gold sales of 676,000 ounces were lower than the April estimate of 700,000 primarily because of timing of shipments, but were higher than the year-ago tally of 432,000, Freeport reports. Second-quarter molybdenum sales of 24 million pounds were in line with the April estimate but below the second-quarter 2017 total of 25 million pounds. Freeport says sales volumes for 2018 are expected to be some 3.8 billion pounds of copper, 2.4 million ounces of gold and 95 million pounds of molybdenum, including 970 million pounds of copper, 700,000 ounces of gold and 24 million pounds of molybdenum in the third quarter.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Alacer Gold: Ardich Drill Results Are ‘Positive’

Wednesday July 25, 2018 09:04

Alacer Gold Corp. (TSX: ASR; ASX: AQG) reports “positive” drill results for the Ardich gold prospect. The company has drilled an additional 25 holes, with a majority intersecting predominantly oxide mineralization with “impressive” gold grades, Alacer says. Key results include 50.2 meters averaging 3.01 grams of gold per tonne from a 43.4-meter depth, including one subinterval of 7.9 meters with 8.81 g/t gold, plus another hole with 68.6 meters averaging 2.21 g/t gold from a 36-meter depth, including 17 meters at 5.5 g/t. “Mineralization remains open in all directions, with the new drill hole results improving the known mineralized zone to the west, east and south,” the company reports. “Importantly, the latest drilling confirmed that mineralization stepped across a southeastern fault. Initial metallurgical results indicate the oxide ores are suitable for heap leaching.” Meanwhile, Alacer says work has started on the permitting process and a scoping study to examine options to expand heap-leach capacity.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Fresnillo Reports Higher 2Q Output But Trims Silver Guidance

Wednesday July 25, 2018 08:27

Fresnillo (LSE: FRES) has trimmed its 2018 silver-production guidance but upped this for gold. The Mexican-based company says silver production rose 5.7% year-on-year in the second quarter to 15.3 million ounces, helped by increased operations at the San Julián mine. However, the company now sees 2018 silver output of 64.5 million to 67.5 million ounces, down from the previous guidance range of 67 million to 70 million ounces. Second-quarter gold production climbed to 233,841 million ounces from 231,458 in the same period a year ago. Gold output for 2018 is now seen in a range of 900,000 to 930,000 ounces, compared to 870,000 to 900,000 previously. The company also produces base metals as a by-product. “We have adjusted our full-year production guidance to reflect a better-than-anticipated gold performance due mainly to the ongoing reduction of inventories at Herradura and slightly lower-than-expected silver production due mainly to issues associated with less availability of process water at San Julián,” says Octavio Alvídrez, chief executive officer. “Overall however, our full-year consolidated guidance in silver-equivalent ounces remains unchanged.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

McEwen Mining ‘Encouraged’ By Black Fox Drilling

Wednesday July 25, 2018 08:27

McEwen Mining Inc(NYSE, TSX: MUX) reports “encouraging” results from a $15 million exploration program at the Black Fox complex in Ontario. During the second quarter, the company undertook 129,000 feet of surface exploration drilling for a year-to-date total of 220,000. The drilling included the Stock Mine, which produced 137,000 ounces of gold between 1989 and 2005. Exploration also occurred at Froome, Gibson and Black Fox underground. A company news release listed a number of “significant” drill intersections. “Our drilling continues to deliver very encouraging results…,” says Sylvain Guerard, senior vice president for exploration. “Continued drilling success reinforces our view about the strong exploration potential of both the Black Fox and Stock properties.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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