| Freeport-McMoRan’s Higher Volumes Offset Low Copper Prices in 1Q | |
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Freeport Reports 1Q15 Earnings: Key Takeaways for Investors (Part 2 of 5) (Continued from Part 1) Freeport’s 1Q earnings
Freeport-McMoRan (FCX) released its 1Q15 financial results on April 23. Although it’s a diversified miner, it still gets more than half its revenues from copper. It’s among the top three copper producers globally. Rio Tinto (RIO) and BHP Billiton (BHP) are some other major copper producers. FCX currently forms 3.1% of the Materials Select Sector SPDR ETF (XLB).
Higher volumes
The above chart shows the 1Q15 financial performance of Freeport-McMoRan’s (FCX) major segments. As you can see, the segments had higher volumes. Its copper volumes increased ~10% on a year-over-year (or YoY) basis. Freeport’s average realized copper prices declined by more than 13% over this period. Copper prices have been under pressure due to weakness in the Chinese (FXI) economy.
Freeport’s unit cash costs in its copper operations increased by $0.10 per pound. This was largely expected since the company had to face higher royalty rates and export taxes in its Indonesian operations. Last year, the Indonesian government banned the export of unprocessed ores. The government wants more value addition to take place in Indonesia in order to spur employment in the region.
Gold and Freeport
Gold accounts for 10% of Freeport’s revenues. In 1Q15, Freeport’s gold volumes increased more than 40% YoY. The average realized selling price, however, dropped ~9% over this period.
Energy assets have become a crucial part of Freeport’s portfolio. The company has made major investments over the last couple of years to grow its oil and gas exploration business. In the next part, we’ll see how Freeport’s energy business performed in 1Q15.
Continue to Part 3 Browse this series on Market Realist:
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Freeport McMoRan Copper and Gold Inc.
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a gold and copper producing company based in United states of america. Freeport McMoran produces gold, copper, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is US$ 72.6 billions as of today (€ 68.1 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 18, 2024 at US$ 50.16. Freeport McMoran has 1 448 000 000 shares outstanding. |