HomeBase MetalsFreeport-McMoRan profit soars

Freeport-McMoRan profit soars

New York, USA — MININGREVIEW.COM — 22 October 2009 – Freeport-McMoRan Copper & Gold Incorporated “’ the world’s largest publicly-traded copper company “’ reports that its third-quarter profit soared, as the company benefited from higher metal prices and greater volumes from its vast Grasberg mine in Indonesia.

In its latest results statement released here, the company said net earnings were US$925 million (R7.2 billion), or US$2.07 per share, compared with US$523 million (R4 billion), or US$1.31 per share a year earlier. The Phoenix-based mining company added that revenue had slipped to US$4.14 billion (R32 billion) from US$4.62 billion (R36.8 billion).

Freeport, like most miners, curtailed production and idled some operations this year as the economic downturn cut into demand, driving down prices and cutting already slim margins.

But the copper price rose 24% in the quarter from US$2.25 per pound to US$2.81 on the Comex in New York, and gold has recently hit record highs of over US$1 000 per ounce.

Looking ahead, Freeport projected sales volumes for 2009 of about 4.0 billion pounds of copper and 2.5 million ounces of gold. That is higher than the forecast it gave in July for 3.9 billion pounds of copper and 2.4 million ounces of gold.