Freeport-McMoRan Gold And Copper Sales Higher Than Previous Estimate
PHOENIX, AZ - Richard C. Adkerson, President and Chief Executive Officer of Freeport-McMoRan Inc., said, "Our global team is performing in an exceptional fashion as demonstrated in our second quarter results. We are prioritizing the well-being of our workforce and communities where we operate while executing our strategy of delivering significant growth in production volumes and effective management of costs and capital spending to increase margins and cash flows. We are positioned for success with an attractive portfolio of copper, gold and molybdenum assets and a seasoned, competent and value-driven global team with a favorable long-term market outlook for our products. With the imminence of significantly higher production volumes, we have momentum to strengthen our balance sheet, increase returns to shareholders and grow our business in the coming years for the benefit of all stakeholders.”
In April the Company reported revised operating plans in response to the global COVID-19 pandemic and resulting negative impact on the global economy. FCX proactively implemented operating protocols at each of its operating sites to contain and mitigate the risk of spread of COVID-19. FCX also continues to work closely with communities where it operates across the globe and has provided monetary support and in-kind contributions of medical supplies, equipment and food. The revised operating plans continue to be focused on safeguarding its business in an uncertain public health and economic environment, advancing the ramp-up of underground production at Grasberg to establish large-scale, low-cost copper and gold production, and advancing initiatives in North America and South America to position FCX for significant increases in cash flows in 2021 and beyond.
Second-quarter 2020 copper sales of 759 million pounds were 10 percent higher than the April 2020 estimate, primarily reflecting better than anticipated production rates in Indonesia and North America and the timing of shipments at Cerro Verde. As anticipated, second-quarter 2020 copper sales were lower than second-quarter 2019 sales volumes of 807 million pounds of copper, primarily reflecting lower operating rates at Cerro Verde associated with COVID-19 restrictions.
Second-quarter 2020 gold sales of 184 thousand ounces were 12 percent higher than the April 2020 estimate, primarily reflecting stronger performance in Indonesia. Second-quarter 2020 gold sales were lower than second-quarter 2019 sales volumes of 189 thousand ounces of gold, primarily reflecting timing of shipments.
Second-quarter 2020 molybdenum sales of 18 million pounds were lower than the April 2020 estimate of 19 million pounds and second-quarter 2019 sales of 24 million pounds, primarily reflecting lower production in response to global market conditions.
Consolidated sales volumes for the year 2020 are expected to approximate 3.15 billion pounds of copper, 0.8 million ounces of gold and 77 million pounds of molybdenum, including 790 million pounds of copper, 220 thousand ounces of gold and 18 million pounds of molybdenum in third-quarter 2020. As PT Freeport Indonesia (PT-FI) continues to ramp-up production from its significant underground ore bodies, metal production is expected to improve significantly in 2021 with estimated consolidated sales of 3.8 billion pounds of copper and 1.4 million ounces of gold for the year 2021. Projected sales volumes are dependent on operational performance, impacts and duration of the COVID-19 pandemic, weather-related conditions, timing of shipments, and other factors.