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Freeport-McMoRan 4Q Profit Declines From Year Ago

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Freeport-McMoRan Inc. (NYSE: FCX) reports fourth-quarter net income of $140 million, or 9 cents per share, down from $1 billion, or 71 cents, in the same period a year ago. Excluding special items, fourth-quarter adjusted net income totaled $161 million, or 11 cents, the company says. The company reports fourth-quarter sales of 785 million pounds of copper and 266,000 ounces of gold, both down from the year-ago period. The sales also were both lower than the production of 841 million pounds of copper and 334,000 ounces of gold due to timing of shipments, Freeport says. The company also lists October-December sales of 24 million pounds of molybdenum. The company reports net income of $2.3 billion, or $1.55 per share, for full-year 2018, up from $1.8 billion, or $1.25, in 2017. Freeport lists 2018 output of 3.8 billion pounds of copper, 2.4 million ounces of gold and 94 million pounds of molybdenum. For 2019, which Freeport calls a “transition year,” the company expects 3.3 billion pounds of copper, some 800,000 ounces of gold and 94 million pounds of molybdenum. Richard C. Adkerson, president and chief executive officer, says the company reached an agreement for a “new partnership” with the Indonesian government during 2018, thereby protecting the company’s long-term value at the giant Grasberg mine. “We continued to strengthen our balance sheet, commenced development of an exciting new copper project at Lone Star in Eastern Arizona, completed important construction projects to support long-term underground mining at Grasberg and added new reserves to our portfolio to extend mine lives and enhance future growth options,” Adkerson says. He adds that 2019 priorities include ramping up production from the underground mine at Grasberg and advancing the Lone Start project. As of the end of 2018, the company lists preliminary estimated proven and probable reserves of 119.6 billion pounds of copper, 30.8 million ounces of gold and 3.78 billion pounds of molybdenum. This includes net additions of 23.7 billion pounds of copper, primarily in North America and South America, and 13 billion pounds of copper and 10.1 million ounces of gold related to PT-FI’s acquisition of a joint-venture interest.

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

 

Endeavour Mining Tops 2018 Gold-Production Guidance

Thursday January 24, 2019 09:05

Endeavour Mining (TSX: EDV) reports that full-year 2018 gold production from continuing operations increased by 52% to 612,000 ounces, coming in above the guidance range of 555,000 to 590,000 ounces. Meanwhile, all-in sustaining costs decreased by $30 an ounce from prior year to $745, below the guidance range of $760 to $810. Fourth-quarter production from continuing operations increased from the previous quarter by 25% to 174,000 ounces, while all-in sustaining costs declined by 13% to $715 an ounce. Output in 2019 is expected to increase to a range of 615,000 to 695,000 ounces, while AISC are seen at $760 to  810 an ounce, the company says. “The first full-year contribution from Houndé, coupled with the successful management of our portfolio, have sustainably decreased our all-in sustaining costs to below our strategic target of $800/oz,” says Sébastien de Montessus, president and chief executive officer. “2019 is expected to be another strong year as we look forward to the first gold pour at the Ity CIL plant in early Q2, where construction continues to progress ahead of schedule and on budget.”

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

 

OceanaGold Meets Guidance For Seventh Straight Year

Thursday January 24, 2019 09:05

OceanaGold Corp. (TSX: OGC; ASX: OGC) says 2018 consolidated production and costs met guidance for the seventh consecutive year. The company lists annual gold production of around 533,000 ounces, including some 126,700 in the fourth quarter. Annual copper production was 15,000 tonnes, including 2,900 in the fourth quarter. Unaudited consolidated all-in sustaining costs were $767 per gold ounce sold.  The full-year gold output was down from 574,600 ounces in 2017, while the fourth-quarter production was down from 166,200 in the same period of 2017. Mick Wilkes, president and chief executive officer, says multiple storms and sustained high rainfall at Haile in the last quarter hampered mining operations. “Access to high-grade zones of the ore body at Mill Zone was impeded, resulting in a lower-than-expected head grade, while mine productivity decreased due to the wet weather causing difficult working conditions in the pre-strip zones at the new Snake and Red Hill pits,” he says. “We continue to work through these short-term challenges at Haile, and we do not expect a sustained impact on performance.”

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

 

Endeavour Silver’s 2019 Guidance Below 2018 Output

Thursday January 24, 2019 09:05

Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) says consolidated 2019 silver and gold production is expected to be about 10% lower than 2018 at its four silver-gold mines in Mexico. Silver production is expected to range from 4.4 million to 5.2 million ounces, while gold output is pegged in a range of 46,200 to 52,200 ounces. Silver-equivalent production should be approximately 8.1 million to 9.4 million ounces, using an 80-to-1 silver-gold ratio, Endeavour says. Endeavour estimates that all-in sustaining costs will equal or be slightly lower than 2018 at $15 to $16 per ounce of silver, both net of the gold byproduct credits. “We expect to improve our operating performance this year, especially at Guanacevi, where the development of two new high-grade ore bodies should facilitate higher production and lower costs, and at El Compas, which should achieve commercial production this quarter,” says Bradford Cooke, chief executive officer. “However, El Cubo production will scale back to about half that of 2018, in order to give our exploration group more time to explore for new resources.”

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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