| 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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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 71,5 milliards US$ (66,8 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 25 avril 2024 à 49,40 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |