Freeport-McMoRan: copper, gold and molybdenum production up in Q2

Freeport-McMoRan, the world’s second largest copper miner, announced today that the company produced 1,075 million pounds of copper in Q2 2022, up 18% compared to Q2 2021 (913 million pounds).

The company said that the quarterly improvement in copper output was primarily due to increased operating rates at the Grasberg minerals district and Cerro Verde mine.

Freeport-McMoRan also produced 476 thousand ounces of gold in Q2 2022, which is an increase of 56% over Q2 2021 (305 thousand ounces), primarily reflecting increased operating rates at the Grasberg minerals district. The company’s molybdenum production was up 15% to 23 million pounds.

Consolidated average unit net cash costs (net of by-product credits) for the company’s copper mines of $1.41 per pound of copper in Q2 2022 were 5% below the Q2 2021 average of $1.48 per pound, primarily reflecting higher sales volumes and by-product credits, partly offset by higher mining, energy and other input costs.

Importantly, the company said that net income attributable to common stock in Q2 2022 totaled $840 million (Q2 2021: $1,083 million), $0.57 per share, and adjusted net income attributable to common stock totaled $854 million, $0.58 per share, after excluding net charges totaling $14 million, $0.01 per share.

Chairman and CEO Richard C. Adkerson commented, “FCX is in a position of strength as we navigate the current global market uncertainties. The actions we have taken in recent years to build a strong balance sheet, successfully expand low-cost operations, and maintain flexible growth options will allow us to manage the current market situation in an effective manner while preserving substantial future asset values. Despite near-term uncertainties, the long-term market fundamentals and value opportunities for our stakeholders remain extraordinarily favorable.”

He added, “I am confident in our strategy centered on being Foremost in Copper. Our assets are valuable and scarce. The future prospects for our markets, the quality of our assets and the experience of our team will enable us to deliver substantial value as global conditions improve.”

Freeport-McMoRan is a leading international mining company with headquarters in Phoenix, Arizona. The company’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.

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