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TheStreet Open House

Freeport-McMoRan Copper & Gold Inc. Reports Fourth-Quarter And Year Ended December 31, 2012 Results

Stocks in this article: FCX

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX):

  • Net income attributable to common stock for fourth-quarter 2012 was $743 million, $0.78 per share, compared with net income of $640 million, $0.67 per share, for fourth-quarter 2011. Net income attributable to common stock for the year 2012 was $3.0 billion, $3.19 per share, compared with $4.6 billion, $4.78 per share, for the year 2011.
  • Consolidated sales from mines for fourth-quarter 2012 totaled 972 million pounds of copper, 254 thousand ounces of gold and 21 million pounds of molybdenum, compared with 823 million pounds of copper, 133 thousand ounces of gold and 19 million pounds of molybdenum for fourth-quarter 2011. Consolidated sales for the year 2012 totaled 3.65 billion pounds of copper, 1.0 million ounces of gold and 83 million pounds of molybdenum, compared with 3.70 billion pounds of copper, 1.4 million ounces of gold and 79 million pounds of molybdenum for the year 2011.
  • Consolidated sales from mines for the year 2013 are expected to approximate 4.3 billion pounds of copper, 1.4 million ounces of gold and 90 million pounds of molybdenum, including 940 million pounds of copper, 230 thousand ounces of gold and 23 million pounds of molybdenum for first-quarter 2013.
  • Consolidated unit net cash costs (net of by-product credits) averaged $1.54 per pound of copper for fourth-quarter 2012, compared with $1.57 per pound for fourth-quarter 2011. Based on current sales volume and cost estimates and assuming average prices of $1,700 per ounce for gold and $11 per pound for molybdenum, consolidated unit net cash costs (net of by-product credits) are estimated to average $1.35 per pound of copper for the year 2013.
  • Operating cash flows totaled $1.3 billion for fourth-quarter 2012 (including $122 million of net working capital sources and other tax payments) and $3.8 billion (net of $1.4 billion in working capital uses and other tax payments) for the year 2012, compared with $746 million for fourth-quarter 2011 (net of $335 million in working capital uses and other tax payments) and $6.6 billion (net of $461 million in working capital uses and other tax payments) for the year 2011. Based on current sales volume and cost estimates and assuming average prices of $3.65 per pound for copper, $1,700 per ounce for gold and $11 per pound for molybdenum, operating cash flows are estimated to approximate $7 billion for the year 2013, excluding results of pending acquisitions.
  • Capital expenditures totaled $976 million for fourth-quarter 2012 and $3.5 billion for the year 2012, compared with $785 million for fourth-quarter 2011 and $2.5 billion for the year 2011. Excluding amounts for pending acquisitions, capital expenditures are expected to approximate $4.6 billion for the year 2013, including $2.8 billion for major projects and $1.8 billion for sustaining capital.
  • At December 31, 2012, consolidated cash totaled $3.7 billion and total debt totaled $3.5 billion.
  • On December 5, 2012, FCX announced definitive agreements to acquire Plains Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR) in transactions totaling $20 billion, which would create a premier U.S.-based natural resource company. The transactions are expected to close in second-quarter 2013.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported fourth-quarter 2012 net income attributable to common stock of $743 million, $0.78 per share, compared with $640 million, $0.67 per share, for fourth-quarter 2011. Fourth-quarter 2012 net income included a net credit of $40 million ($0.04 per share) associated with adjustments to environmental obligations and related litigation reserves and a gain for insurance recoveries, partly offset by charges for labor agreement costs at Candelaria and for costs associated with the PXP and MMR transactions. Fourth-quarter 2011 net income included a net charge of $73 million ($0.08 per share) associated with adjustments to environmental obligations and related litigation reserves and bonuses for new labor agreements and other employee costs at PT Freeport Indonesia, Cerro Verde and El Abra. For the year 2012, FCX reported net income attributable to common stock of $3.0 billion, $3.19 per share, compared with $4.6 billion, $4.78 per share, for the year 2011.

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