Freeport-McMoRan Raises Copper Sales Estimates

Freeport-McMoRan now expects second-quarter copper sales to come in 8% higher than the April estimate of 690 million pounds.
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Freeport-McMoRan  (FCX) - Get Report shares rose sharply Monday after the metals miner revised second-quarter sales estimates upward.

“During the second quarter, FCX met or exceeded several key performance targets included in its April 2020 revised operating plans,” the company said in a statement.

Second-quarter copper sales are expected to come in 8% higher than the April estimate of 690 million pounds. Gold sales are expected to exceed the April estimate of 165,000 ounces by 10%.

Freeport-McMoRan lowered its sales and production estimates in April, reacting to the coronavirus pandemic.

In North America, “the Lone Star project is substantially complete and on track to produce approximately 200 million pounds of copper per annum beginning in the second half of 2020,” the company said.

Assuming an average second-quarter 2020 copper price of $2.54 per pound and preliminary sales estimates, Freeport-McMoRan expects second-quarter 2020 adjusted EBITDA of $650 million. And it expects a small net adjusted loss approximating $0.03 per share.

That excludes Covid-19 costs and nonrecurring costs associated with employee separation programs implemented in response to market conditions.

Meanwhile, Freeport-McMoRan had no amounts drawn under its $3.5 billion revolving credit facility as of June 30. Total consolidated debt is estimated to approximate $9.9 billion, and consolidated cash is estimated to approximate $1.5 billion.

Jim Cramer wrote on TheStreet last month that Freeport-McMoRan was a stock “you buy when you think the economy is about to roar.”

Freeport-McMoRan shares recently traded at $12.50, up 8.70%. The stock has skyrocketed 98% in the last three months.

Earnings from the company are expected July 23.