Freeport-McMoRan Beats Q3 Estimates: Gold Sales Soar, Copper Production Stabilizes

Benzinga10-22

Freeport-McMoRan Inc. (NYSE:FCX) shares are trading higher after the company reported third-quarter FY24 results.

Revenue stood at $6.79 billion, beating the consensus of $6.47 billion.

Copper sales totaled 1.0 billion pounds, down 7% Y/Y and 2% above the July 2024 estimate, due to the timing of shipments and lower ore grades and operating rates in North America.

Copper’s average realized price per pound was $4.30, and production totaled 1.051 billion pounds.

Gold sales stood at 558 thousand ounces, up 40% Y/Y and 17% higher than the July 2024 estimate on the timing of shipments. The average realized price per ounce stood at $2,568 and in the quarter. 

Operating income stood at $1.938 billion vs $1.492 billion a year ago. Adjusted EPS was $0.38, beating the consensus of $0.35.

Operating cash flow for the quarter totaled $1.87 billion, compared to $1.24 billion a year ago.

As of Sept. 30, Freeport-McMoRan had $5.0 billion in cash and equivalents and consolidated debt totaling $9.7 billion.

Richard Adkerson, chairman of the board, and Kathleen Quirk, president, and chief executive officer, said, "During the third quarter, our global team generated strong margins and cash flows, achieved our production targets, continued to prioritize productivity and cost control, and advanced initiatives for future growth.”

”We remain focused on strong execution of our plans globally as we work to address damage from a recent fire affecting a portion of our new Indonesia smelter facilities.”

2024 Outlook: Freeport-McMoRan now expects consolidated sales volumes to be ~4.1 billion pounds of copper, 1.8 million ounces of gold, and 80 million pounds of molybdenum. 

The company now expects operating cash flows of ~$6.8 billion in 2024, assuming average prices of $4.25 per pound of copper, $2,600 per ounce of gold, and $20.00 per pound of molybdenum in the fourth quarter of 2024.

Investors can gain exposure to the stock via Sprott Copper Miners ETF (NASDAQ:COPP) and First Trust Indxx Global Natural Resources Income ETF (NASDAQ:FTRI).

Price Action: FCX shares are up 2.75% at $49.26 premarket at the last check Tuesday.

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