In releasing its second quarter financial results (7/23) Phoenix based Freeport McMoRan, Inc, told its stockholders the company had a profit of $53 million. At this time last year the company had a loss of $72 million while for the first quarter of this year the mining giant suffered a loss of $491 million. The press release issued last Thursday about the latest quarterly financial results has 37 pages.
Revenues for the 90-day period ending June 30 were $3.05 billion down from $3.55 billion at this time last year. Operating cash flow totaled $490 million. Capital expenditures were listed at $.5 billion. Consolidated debt was $9.9 billion.
Consolidated sales of copper were 759 million pounds. For silver it was 184,000 thousand ounces and some 18 million pounds for molybdenum. During the second quarter the average price Freeport received for the sale of copper was $2.55 a pound, $1,749 an ounce for gold and $10.53 for each pound of molybdenum sold. Stockholders were told the cost of producing copper was $1.47 a pound.
For all of its operations copper production was down 1.2 percent from a year ago. Looking at production figures at its Arizona Mines second quarter: Morenci produced 185 million pounds of copper, Bagdad 59 million pounds, Green Valley 48 million pounds, Safford 42 million pounds and Miami 4 million pounds
Elsewhere during this time period, Cerro Verde South American 178 million pounds of copper. Grasberg Mine (48.76 percent company owned) produced 181 million pounds.
Officials said they did have a handful of employees who were sick with the Covid-19 Virus.
The operations its Chino Copper Mine in New Mexico were closed over concerns of the virus. Company share holders were told Freeport McMoRan was currently assessing operations there and timing of the restart of the Chino Mine. Officials said they will be taking into account public health and market conditions.
Richard C. Adkerson, President and Chief Executive Officer of Freeport McMoRan said the second quarter results show “our global team is performing in an exceptional fashion.”
He went on to say “We are prioritizing the well being of our work force and the communities where we operate while executing our strategy of delivering significant growth in production volumes and effective management of cash and capital spending to increase margins and cash flows. We are positioned for success with an attractive portfolio of copper, gold and molybdenum assets.”
The $840 million Lone Star Copper Mine near Safford, Ariz. was briefly discussed.
It was said to be substantially complete and on track to produce 200 million pounds of copper during the second half of this year.
Company officials said if prices improve, Freeport may consider restarting it dividend or share by backs in 2021.
