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Last Update: 18-Apr-13 08:14 ET
Freeport McMoran shares little changed following miss on earnings
Freeport-McMoRan (FCX $28.00 +0.00) reported first quarter earnings of $0.68 per share, $0.07 worse than the Capital IQ consensus of $0.75, while revenues fell 0.5% year/year to $4.58 billion versus the $4.69 billion consensus. Freeport-McMoRan lowers 2013 operating cash flow guidance to $5.5 bln, down from $7.0 bln. Consolidated sales from mines for the year 2013 are expected to ~4.3 billion pounds of copper, 1.4 mln ounces of gold and 92 mln pounds of molybdenum, including 1.0 billion pounds of copper, 295 thousand ounces of gold and 23 mln pounds of molybdenum for second-quarter 2013. Operating cash flows totaled $831 mln (net of $430 mln in working capital uses and changes in other tax payments) for Q1 2013, compared with $801 mln (net of $720 mln in working capital uses and changes in other tax payments) for first-quarter 2012. Excluding results of pending acquisitions, based on current sales volume and cost estimates and assuming average prices of $3.25 per pound for copper, $1,400 per ounce for gold and $11 per pound for molybdenum for the remainder of 2013, operating cash flows are estimated to ~$5.5 billion (including $0.4 billion in net working capital sources and changes in other tax payments) for the year 2013. First-quarter 2013 consolidated copper sales of 954 mln pounds were higher than the January 2013 estimate of 940 mln pounds (primarily reflecting higher production and sales from Africa) and also higher than first-quarter 2012 sales of 827 mln pounds primarily because of higher production from Indonesia and Africa. First-quarter 2013 consolidated gold sales of 214 thousand ounces were lower than the January 2013 estimate of 230 thousand ounces (primarily reflecting timing of shipments) and lower than first-quarter 2012 sales of 288 thousand ounces primarily because of anticipated lower ore grades in Indonesia. First-quarter 2013 consolidated molybdenum sales of 25 mln pounds were higher than the January 2013 estimate of 23 mln pounds and first-quarter 2012 sales of 21 mln pounds primarily because of stronger sales in the metallurgical and chemical sectors. As anticipated, consolidated average unit net cash costs (net of by-product credits) of $1.57 per pound of copper in first-quarter 2013 were higher than unit net cash costs of $1.26 per pound in first-quarter 2012 reflecting lower by-product credits.
