Brief Overview on Company’s Performance: Freeport-McMoRan Inc. (NYSE: FCX)

On Tuesday, Shares of (NYSE: ) showed the bullish trend with a higher momentum of 3.63% to $11.13. The company traded total volume of 24.906K shares as contrast to its average volume of 20.07M shares. The company has a market value of $16.42B and about 1.48B shares outstanding.

Freeport-McMoRan Inc. (FCX) stated net income attributable to common stock of $31.0M ($0.02 per share) in first-quarter 2019. After adjusting for net charges of $36.0M ($0.03 per share), adjusted net income attributable to common stock totaled $67.0M ($0.05 per share) in first-quarter 2019.

Consolidated Sales Volumes:

First-quarter 2019 copper sales of 784.0M pounds and gold sales of 242.0K ounces were about five percent lower than January 2019 sales estimates of 825.0M pounds of copper and 255.0K ounces of gold, reflecting impacts from weather events at El Abra, unplanned maintenance in North America and timing of shipments in Indonesia. First-quarter 2019 copper and gold sales were lower than first-quarter 2018 sales volumes mainly reflecting anticipated lower mill rates and ore grades as PT Freeport Indonesia (PT-FI) transitions mining from the open pit to underground.

First-quarter 2019 molybdenum sales of 22.0M pounds were lower than the January 2019 estimate and first-quarter 2018 sales of 24.0M pounds.

Sales volumes for the year 2019 are expected to approximate 3.30B pounds of copper, 0.80M ounces of gold and 94.0M pounds of molybdenum, counting 800.0M pounds of copper, 265.0K ounces of gold and 25.0M pounds of molybdenum in second-quarter 2019. As PT-FI transitions mining from the open pit to underground, its production is expected to be significantly lower in 2019 and 2020, contrast with 2018. Metal production is expected to improve significantly by 2021 following a ramp-up period.

Capital Expenditures:

Capital expenditures totaled $622.0M in first-quarter 2019 (counting about $370.0M for major mining projects).

Capital expenditures are expected to approximate $2.50B for the year 2019, counting $1.50B for major mining projects mainly associated with underground development activities in the Grasberg minerals district and development of the Lone Star project, and exclude estimates associated with the new smelter in Indonesia. A large portion of the capital expenditures relate to projects that are expected to add noteworthy production and cash flow in future periods, enabling FCX to generate operating cash flows surpassing capital expenditures in future years. FCX has cash on hand and the financial flexibility to fund these expenditures and will continue to be disciplined in deploying capital.


 At March 31, 2019, FCX’s consolidated debt totaled $9.90B, with a related weighted-average interest rate of 4.7 percent. FCX had no borrowings, $13.0M in letters of credit issued and $3.50B available under its revolving credit facility at March 31, 2019.

During first-quarter 2019, FCX redeemed its entire outstanding $1.0B aggregate principal amount of 3.100% Senior Notes due 2020 and repaid $200.0M under Cerro Verde’s credit facility. FCX recorded losses on early extinguishment of debt totaling $6.0M in first-quarter 2019.

The Company offered net profit margin of 11.00% while its gross profit margin was 23.10%. ROE was recorded as 19.80% while beta factor was 2.27. The stock, as of recent close, has shown the weekly upbeat performance of 4.80% which was maintained at 7.95% in this year.

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