LONDON, UK / ACCESSWIRE / November 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Freeport-McMoRan Inc. (NYSE: FCX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FCX, following the Company's posting of its third quarter fiscal 2017 operating results on October 25, 2017. The world's second largest publicly-listed copper miner by valuation outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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For the quarter ended September 30, 2017, Freeport-McMoRan reported revenues of $4.31 billion, up 11.1% compared to revenue of $3.88 billion in Q3 2016. The Company's revenue numbers beat Wall Street's estimates of $4.10 billion.
Freeport-McMoRan reported net income attributable to common stock of $280 million, or $0.19 per share, for Q3 2017 compared to net income attributable to common stock of $217 million, or $0.16 per share, for Q3 2016. After adjusting for net charges of $212 million, or $0.15 per share, primarily related to accruals for Peruvian government claims associated with disputed royalty matters, Freeport-McMoRan's adjusted net income attributable to common stock totaled $492 million, or $0.34 per share, for the reported quarter versus adjusted net income of $178 million, or $0.13 per share. The Company's earnings beat Wall Street expectations of $0.29 per share.
For Q3 2017, Freeport-McMoRan's copper sales totaled 932 million pounds, 16% lower than Q3 sales of 1.1 billion pounds. The y-o-y variance reflected anticipated lower ore grades in North America and Indonesia and the timing of shipments.
During Q3 2017, Freeport-McMoRan's gold sales came in at 355, 000, higher than Q3 2016 sales of 317,000 ounces, primarily reflecting anticipated higher ore grades from Indonesia. The Company recorded molybdenum sales of 22 million pounds in the reported quarter, which was higher than the prior year's same quarter sales of 16 million pounds.
Freeport-McMoRan's sales volumes for the year 2017 are expected to approximate 3.7 billion pounds of copper, 1.6 million ounces of gold and 94 million pounds of molybdenum, including 1.0 billion pounds of copper, 625 thousand ounces of gold, and 23 million pounds of molybdenum in Q4 2017.
The Company's average realized prices were $2.94 per pound for copper, $1,290 per ounce for gold, and $9.22 per pound for molybdenum for Q3 2017.
Freeport-McMoRan's consolidated average unit net cash costs for copper mines of $1.21 per pound of copper in Q3 2017 were higher than unit net cash costs of $1.14 per pound in Q3 2016, primarily reflecting lower copper sales volumes.
Assuming average prices of $1,300 per ounce of gold and $8.00 per pound of molybdenum for Q4 2017 and achievement of current sales volume and cost estimates, consolidated unit net cash costs for copper mines are expected to average $1.19 per pound of copper for the year 2017.
Freeport-McMoRan generated operating cash flows of $1.2 billion (including $45 million in working capital sources and changes in tax payments) in Q3 2017. Based on current sales volume and cost estimates, and assuming average prices of $3.00 per pound of copper, $1,300 per ounce of gold and $8.00 per pound of molybdenum for Q4 2017, the Company is forecasting consolidated operating cash flows to be approximately $4.3 billion for the year 2017.
For Q3 2017, Freeport-McMoRan's capital expenditures totaled $308 million, including approximately $200 million for major mining projects. The Company's FY17 capital expenditures are expected to approximate $1.5 billion, including $0.9 billion for major mining projects, primarily for underground development activities at Grasberg.
At September 30, 2017, Freeport-McMoRan's consolidated cash totaled $5.0 billion and consolidated debt totaled $14.8 billion compared to $4.2 billion of consolidated cash and $16.0 billion of consolidated debt at December 31, 2016. The Company had no borrowings and $3.5 billion available under its revolving credit facility at September 30, 2017.
In September 2017, FCX redeemed $543 million aggregate principal number of senior notes, resulting in annual cash interest savings of approximately $35 million. FCX recognized an $11 million gain on early extinguishment of debt in connection with the redemptions.
At the closing bell, on Monday, November 13, 2017, Freeport-McMoRan's stock was slightly up 0.14%, ending the trading session at $14.43. A total volume of 9.91 million shares have exchanged hands. The Company's stock price surged 3.29% in the last three months, 22.60% in the past six months, and 3.52% in the previous twelve months. Moreover, the stock gained 9.40% since the start of the year. The stock is trading at a PE ratio of 19.90 and currently has a market cap of $21.33 billion.
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