Freeport McMoRan Copper & Gold Inc announced Q1 2012 result.
1. Net income attributable to common stock for Q1 2012 was USD 764 million, USD 0.80 per share compared with net income of USD 1.5 billion, USD 1.57 per share for Q1 2011. Q1 2012 net income included USD 149 million in losses on early extinguishment of debt.
2. Consolidated sales from mines for Q1 2012 totaled 827 million pounds of copper, 288,000 ounces of gold and 21 million pounds of molybdenum compared with 926 million pounds of copper, 480,000 ounces of gold and 20 million pounds of molybdenum for Q1 2011.
3. Consolidated sales from mines for the year 2012 are expected to approximate 3.7 billion pounds of copper, 1.1 million ounces of gold and 81 million pounds of molybdenum including 895 million pounds of copper, 235,000 ounces of gold and 20 million pounds of molybdenum for Q2 2012.
4. Consolidated unit net cash costs averaged USD 1.26 per pound of copper for Q1 2012 compared with USD 0.79 per pound for Q1 2011. Based on current 2012 sales volume and cost estimates and assuming average prices of USD 1,600 per ounce for gold and USD 14 per pound for molybdenum for the remainder of 2012, consolidated unit net cash costs are estimated to average USD 1.43 per pound of copper for the year 2012.
5. Operating cash flows for Q1 2012 totaled USD 801 million compared with USD 2.4 billion for Q1 2011. Based on current 2012 sales volume and cost estimates and assuming average prices of USD 3.50 per pound for copper, USD 1,600 per ounce for gold and USD 14 per pound for molybdenum for the remainder of 2012 operating cash flows are estimated to approximate USD 4.2 billion for the year 2012.
6. Capital expenditures totaled USD 707 million for Q1 2012 compared with USD 505 million for Q1 2011. Capital expenditures are expected to approximate USD 4.3 billion for the year 2012 including USD 2.7 billion for major projects and USD 1.6 billion for sustaining capital.
7. At March 31st 2012, consolidated cash approximated USD 4.5 billion and total debt approximated USD 3.5 billion. In February 2012, FCX sold USD 3.0 billion of senior notes in three tranches with a weighted average interest rate of approximately three percent. FCX used the proceeds from this offering to redeem the remaining USD 3.0 billion of its 8.375% Senior Notes.
8. In February 2012, FCX's Board of Directors authorized an increase in the common stock dividend to an annual rate of USD 1.25 per share with the first quarterly dividend to be paid on May 1st 2012 to shareholders of record on April 13th 2012.
Mr James R Moffett chairman of the Board and Mr Richard C Adkerson president and CEO of Freeport McMoRan said that "Our first-quarter results reflect strong performance at our North and South America operations and in Africa. We progressed in restoring normal operations at our Grasberg operations in Indonesia. During the quarter, we advanced our growth projects, which are targeted to increase our annual copper production by over 25% over the next 3 to 4 years.
They said that we also completed a highly attractive debt refinancing transaction during the quarter. Our Board authorized 25% increase in our common stock dividend, with the first quarterly dividend to be paid on May 1st 2012. We are highly positive about the long term prospects of our business and markets. Our company is well positioned with long lived reserves and mineral resources, an attractive mid term and longer term organic growth profile and a strong financial position."
Source - Freeport McMoRan
(www.steelguru.com)
