Freeport-McMoRan's profit down 32% amid lower copper, gold prices
Freeport-McMoRan (NYSE:FCX), the U.S. largest miner by market value and revenue, reported Tuesday a 32% drop in quarterly profit, as weaker average prices for copper, gold and oil weighed on revenue.
The Phoenix-based company, which also has oil and gas assets, logged a profit of $562 million, or 53 cents a share, down from $830 million, or 79 cents a share, a year earlier. The latest period included net charges of 11 cents a share for items such as accounting adjustments and asset sales gains. The year-earlier period included nine cents a share of derivatives-related charges. Revenue fell 7.6% to $5.7 billion.
Gold sales rose to 525 thousand ounces from 305 thousand ounces, and production of the precious metal surged to 449,000 ounces from 327,000 ounces a year ago. However prices fell to $1,220 per ounce from $1,329 per ounce in the period.
Copper production dipped slightly to 1.03 billion pounds from 1.06 billion pounds a year earlier, despite the long-dragged dispute between the miner and Indonesia, where Freeport operates Grasberg, the world's third largest copper mine.
The company’s shares have fallen about 20% since the beginning of the year.