Freeport-McMoRan sees 22% increase in copper sales, 66% increase in gold sales in Q2
(Kitco News) - An increase in production and higher copper and gold prices helped one of the world's largest copper producers beat earning expectations for the second quarter.
Thursday, ahead of the North American Open, Freeport-McMoRan Inc. (NYSE: FCX) reported second-quarter 2021 net income attributable to common stock of $1.08 billion, $0.73 per share, and adjusted net income attributable to common stock of $1.14 billion, $0.77 per share. Equity analysts were expecting to see net income of around $0.75 per share.
The company also reported net charges totaling $56 million, $0.04 per share, primarily associated with nonrecurring labor-related charges at Cerro Verde and for historical contested taxes and other matters at PT Freeport Indonesia.
Freeport said that it sold million pounds of copper and gold sales of 305 thousand ounces of gold during the second quarter, an increase of 22% and 66%, respectively, compared to the second quarter of 2020.
Freeport added that it sold 22 million pounds of molybdenum, up from 18 million pounds sold during last year's quarter.
"Consolidated sales volumes for the year 2021 are expected to approximate 3.85 billion pounds of copper, 1.3 million ounces of gold and 86 million pounds of molybdenum, including 1.035 billion pounds of copper, 360 thousand ounces of gold and 21 million pounds of molybdenum in third-quarter 2021," the company said in a press release.
"Our global team continues to execute our operating plans safely, efficiently and responsibly, providing strong cash flows and a solid foundation for future profitability and growth. During the first half of 2021, we reduced our net debt by $2.7 billion and achieved our targeted net debt level, positioning us for increasing cash returns to shareholders and investments in future growth in accordance with our financial policy," said Richard Adkerson, chairman and CEO of Freeport in a prepared statement.
"As a leading responsible producer of copper, we are optimistic about the prospects for our business and our role in supporting a growing global economy and the transition to clean energy. We remain focused on building value for all stakeholders through solid management of our long-lived and high-quality portfolio of copper assets," he added.