Freeport-McMoRan Inc. (FCX) has released its second-quarter (2Q21) and 6-month 2021 (1H21) results.
- Net income attributable to common stock in 2Q21 totalled US$1.08 billion, US$0.73 per share, and adjusted net income attributable to common stock totalled US$1.14 billion, or US$0.77 per share, after adjusting for net charges totalling US$56 million, US$0.04 per share.
- Consolidated sales totalled 929 million lbs of copper, 305 000 oz of gold, and 22 million lbs of molybdenum in 2Q21. Consolidated sales for the year 2021 are expected to approximate 3.85 billion lbs of copper, 1.3 million oz of gold, and 86 million lbs of molybdenum – including 1.03 billion lbs of copper, 360 000 oz of gold and 21 million lbs of molybdenum in 3Q21.
- Average realised prices in 2Q21 were US$4.34 per pound for copper, US$1794/oz for gold, and US$13.11/lb for molybdenum.
- Average unit net cash costs in 2Q21 were US$1.48/lb of copper (including nonrecurring labour-related charges at Cerro Verde of US$0.07/lb of copper) and are expected to average US$1.35/lb of copper for the year 2021.
- Operating cash flows totalled US$2.4 billion (including US$0.5 billion of working capital and other sources) in 2Q21 and US$3.5 billion (including US$0.2 billion of working capital and other sources) for 1H21. Based on current sales volume and cost estimates, and assuming average prices of US$4.25 per pound for copper, US$1800/oz for gold and US$16.00 per pound for molybdenum for the second half of 2021, operating cash flows are expected to approximate US$7.5 billion (including US$0.4 billion of working capital and other sources) for the year 2021.
- Capital expenditures totalled US$0.4 billion (including approximately US$0.3 billion for major projects) in 2Q21 and US$0.8 billion (including approximately US$0.6 billion for major projects) for the first 6-months of 2021. Capital expenditures for the year 2021, excluding Indonesia smelter expenditures, are expected to approximate US$2.2 billion, including US$1.4 billion for major projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia.
- As of 30 June 2021, consolidated debt totalled US$9.7 billion and consolidated cash and cash equivalents totalled US$6.3 billion, resulting in net debt of US$3.4 billion. FCX had no borrowings and US$3.5 billion available under its revolving credit facility at June 30, 2021.
Richard C. Adkerson, Chairman and Chief Executive Officer of FCX, comments:
“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 1H21, we reduced our net debt by US$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.
“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.”
Read the article online at: https://www.globalminingreview.com/mining/26072021/freeport-mcmoran-reports-its-2q21-and-1h21-results/