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Freeport-McMoRan Reverses To Net Profit In First Quarter

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Freeport-McMoRan Inc. (NYSE: FCX) reports net income $228 million, or 16 cents per share, for first quarter, a turnaround from a net loss of $4.2 billion, or $3.35 per share, in the same period of 2016. FCX’s net income includes special net gains of $8 million and charges totaling $4 billion, which were primarily for the reduction of the carrying value of oil and gas properties. After adjusting for net gains, first-quarter adjusted net income totaled $220 million, or 15 cents per share. First-quarter sales totaled 809 million pounds of copper, 182,000 ounces of gold and 24 million pounds of molybdenum. The company says sales volumes have been impacted by regulatory restrictions on PT Freeport Indonesia's concentrate exports since mid-January, resulting in the deferral of approximately 190 million pounds of copper and 280,000 ounces of gold in the first quarter. PT-FI's concentrate exports resumed on April 21. Consolidated sales for 2017 are expected to be approximately 3.9 billion pounds of copper, 1.9 million ounces of gold and 93 million pounds of molybdenum. Freeport is often thought of as the world’s largest publicly traded copper company but is also a major gold producer due to by-product output of the yellow metal at its giant Grasberg mine. “Our strong focus on cost and capital discipline combined with improved market conditions for copper are producing solid results,” says Richard C. Adkerson, president and chief executive officer. “The resumption of concentrate exports in Indonesia and expected continued strong performance from our Americas operations will enable us to generate significant cash flows in the balance of the year to achieve our balance-sheet objectives.”

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