Post Earnings Coverage as Freeport-McMoRan's Revenue Soared 25 Percent; Exceeded Expectations

Upcoming AWS Coverage on Southern Copper

LONDON, UK / ACCESSWIRE / February 3, 2017 / Active Wall St. announces its post-earnings coverage on Freeport-McMoRan Inc. (NYSE: FCX). The Company announced its fourth quarter and fiscal 2016 results on January 25 2017. The world's biggest publicly listed copper producer posted profit for a second consecutive quarter after reporting loss in Q4 2015. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Freeport-McMoRan's competitors within the Copper space, Southern Copper Corp. (NYSE: SCCO), is estimated to report earnings on February 24, 2017. AWS will be initiating a research report on Southern Copper following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on FCX; touching on SCCO. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=FCX

http://www.activewallst.com/registration-3/?symbol=SCCO

Earnings Reviewed

For the quarter ended on December 31, 2016, Freeport-McMoRan's revenues grew to $4.38 billion compared to revenue of $3.52 billion in Q4 2015, and revenue exceeded analysts' consensus estimates of $4.06 billion.

Freeport-McMoRan reported net income attributable to common stock of $292 million, or 0.21 per share, for Q4 2016 compared to net loss of $4.1 billion, or $3.47 per share, for Q4 2015. The Company's Q4 2016 net income includes net charges of $59 million, or $0.04 per share, primarily reflecting estimated losses on assets held for sale and oil and gas restructuring-related charges, which was partly offset by gain on redeemable non-controlling interest. Q4 2015 net loss attributable to common stock included net charges of $4.1 billion, or $3.45 per share, primarily for the reduction of the carrying value of oil and gas properties. On an adjusted basis, Freeport-McMoRan reported net income attributable to common stock of $351 million, $0.25 per share. The Company's adjusted earnings missed Wall Street's expectations of $0.32 per share.

For FY16, Freeport-McMoRan's net losses attributable to common stock was $4.2 billion, or $3.16 per share, compared to net loss of $12.2 billion, or $11.31 per share, for FY15.

Commodities Sales

For Q4 2016, Freeport-McMoRan's consolidated sales, including volumes from Tenke Fungurume (through November 16, 2016) totaled 1.2 billion pounds of copper, 405 thousand ounces of gold, and 22 million pounds of molybdenum. For FY16, the Company reported 4.65 billion pounds of copper, 1.1 million ounces of gold, and 74 million pounds of molybdenum.

For Q4 2016, Freeport-McMoRan's average realized prices were $2.47 per pound for copper, $1,174 per ounce for gold, and $8.27 per pound for molybdenum. Average unit net cash costs were $1.20 per pound of copper for Q4 2016 and $1.26 per pound of copper for FY16. Unit net cash costs are expected to average $1.06 per pound of copper for FY17.

Balance sheet & Cash Flow

During Q4 2016, Freeport-McMoRan completed $5.2 billion in asset sale transactions, including the sale of its interest in TF Holdings Limited (TFHL), through which the Company held an interest in the Tenke mine, and the sales of the Deepwater Gulf of Mexico and onshore California oil and gas properties. During FY16, Freeport-McMoRan completed its asset divestment program, which generated $6.6 billion in aggregate proceeds. In November 2016, Freeport-McMoRan completed its registered at-the-market (ATM) offering of common stock announced in July 2016, which raised $1.5 billion in gross proceeds through the sale of 116.5 million shares of FCX's common stock.

The Company's operating cash flows totaled $1.1 billion (net of $406 million in working capital uses and changes in other tax payments) for Q4 2016 and $3.7 billion (including $57 million in working capital sources and changes in other tax payments) for FY16. At December 31, 2016, Freeport-McMoRan's consolidated debt totaled $16.0 billion and consolidated cash totaled $4.2 billion compared to consolidated debt of $20.3 billion and consolidated cash of $177 million at December 31, 2015. The Company had no borrowings and $3.5 billion available under its $3.5 billion revolving credit facility at year-end 2016.

Outlook

For FY17, Freeport-McMoRan is expecting sales volumes of approximate 4.1 billion pounds of copper, 2.2 million ounces of gold, and 92 million pounds of molybdenum, including 1.0 billion pounds of copper, 460 thousand ounces of gold, and 23 million pounds of molybdenum in Q1 2017. The Company stated that assuming average prices of $1,200 per ounce of gold and $7.00 per pound of molybdenum for FY17 and achievement of current sales volume and cost estimates, consolidated unit net cash costs for copper mines are expected to average $1.06 per pound of copper for FY17.

Stock Performance

On Thursday, the stock closed the trading session at $16.81, marginally falling 0.18% from its previous closing price of $16.84. A total volume of 18.10 million shares have exchanged hands. Freeport-McMoRan's stock price rallied 21.99% in the last month, 50.76% in the past three months, and 35.67% in the previous six months. Moreover, the stock surged 27.45% since the start of the year.

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SOURCE: Active Wall Street