This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Freeport-McMoRan Copper & Gold Inc. Reports Second-Quarter And Six-Month 2012 Results

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, "Our second-quarter results reflect our global team's focus on achieving strong operating results in a safe and efficient fashion, and the pursuit of opportunities to grow our production and large resource base. We are on track to increase our annual copper production by more than 25 percent over the next three years through financially attractive brownfield investments. We are positive about the long-term fundamentals of the metals we produce, our geographically diverse portfolio of large-scale operations with long-lived reserves and mineral resources, and the strong track record of our team to execute our plans."

SUMMARY FINANCIAL AND OPERATING DATA

  Three Months Ended Six Months Ended
June 30, June 30,
  2012 2011 2012 2011
Financial Data (in millions, except per share amounts)
Revenues a $ 4,475 $ 5,814 $ 9,080 $ 11,523
Operating income b $ 1,311 c $ 2,757 c $ 3,045 c $ 5,693 c
Net income attributable to common stock $ 710 c $ 1,368 c, d $ 1,474 c, d $ 2,867 c, d
Diluted net income per share of common stock $ 0.74 c $ 1.43 c, d $ 1.55 c, d $ 3.00 c, d
Diluted weighted-average common shares outstanding 953 956 954 956
Operating cash flows $ 1,182 e $ 1,680 e $ 1,983 e $ 4,039 e
Capital expenditures $ 840 $ 527 $ 1,547 $ 1,032
 
Mining Operating Data
Copper (millions of recoverable pounds)
Production 887 967 1,720 1,917
Sales, excluding purchases 927 1,002 1,754 1,928
Average realized price per pound $ 3.53 $ 4.22 $ 3.61 $ 4.24
Site production and delivery costs per pound f $ 2.01 $ 1.63 $ 1.98 $ 1.62
Unit net cash costs per pound f $ 1.49 $ 0.93 $ 1.38 $ 0.87
Gold (thousands of recoverable ounces)
Production 251 351 503 817
Sales, excluding purchases 266 356 554 836
Average realized price per ounce $ 1,588 $ 1,509 $ 1,639 $ 1,466
Molybdenum (millions of recoverable pounds)
Production 20 22 41 42
Sales, excluding purchases 20 21 41 41
Average realized price per pound $ 15.44 $ 18.16 $ 15.39 $ 18.13

a. Includes the impact of adjustments to provisionally priced sales recognized in prior periods (refer to the "Consolidated Statements of Income" on page IV for further discussion).

b. FCX defers recognizing profits on intercompany sales until final sales to third parties occur (refer to the "Consolidated Statements of Income" on page IV for a summary of net impacts from changes in these deferrals).

c. Includes charges for adjustments to environmental obligations and related litigation reserves totaling $66 million ($53 million to net income or $0.06 per share) for the second quarter and first six months of 2012 and $49 million ($40 million to net income or $0.04 per share) for the second quarter and first six months of 2011.

d. Includes losses on early extinguishment of debt totaling $54 million ($0.06 per share) in second-quarter 2011, $149 million ($0.16 per share) for the first six months of 2012 and $60 million ($0.06 per share) for the first six months of 2011.

e. Includes working capital uses and other tax payments of $54 million for second-quarter 2012, $496 million for second-quarter 2011, $774 million for the first six months of 2012 and $382 million for the first six months of 2011.

f. Reflects per pound weighted-average site production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, "Product Revenues and Production Costs," beginning on page VII, which is available on FCX's website, " www.fcx.com ."

OPERATIONS

Consolidated. Second-quarter 2012 consolidated sales of 927 million pounds of copper and 266 thousand ounces of gold were higher than the April 2012 estimates of 895 million pounds of copper and 235 thousand ounces of gold primarily reflecting higher copper sales volumes in North America and higher gold sales volumes in Indonesia, principally timing related. Second-quarter 2012 consolidated sales were lower than second-quarter 2011 sales of 1.0 billion pounds of copper and 356 thousand ounces of gold primarily reflecting lower ore grades and production rates in Indonesia. Lower copper sales volumes also reflected lower ore grades in South America, partly offset by increased production in North America and Africa.

Operations and productivity at PT Freeport Indonesia have continued to improve following the first-quarter 2012 work interruptions in connection with efforts to resume normal operations. PT Freeport Indonesia's milling rates averaged 179,500 metric tons of ore per day in second-quarter 2012, compared with the first-quarter 2012 average of 114,800 metric tons of ore per day. Mining operations in the Grasberg open pit are approaching normal levels and underground mining operations at the Deep Ore Zone (DOZ) underground mine continue to be ramped up following the 2011 work stoppages. Mining rates at the DOZ underground mine averaged 45,400 metric tons per day in second-quarter 2012 and are expected to reach 80,000 metric tons per day in fourth-quarter 2012.

2 of 16

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs