Freeport-McMoRan Copper & Gold Inc.'s (FCX) first-quarter
profit surged on higher prices for minerals. Meanwhile, the mining
company's board approved a doubling to the annual dividend, which
will cost some $285 million.
The stock was down 1.1% at $79.90 in pre-market trading. The
shares have doubled the past year.
The company has been restarting projects that were delayed as
the economy deteriorated in late 2008, while copper prices have
recovered. The company cut costs as energy prices fell last year,
reducing recent site production and delivery costs.
Freeport posted a profit of $945 million, or $2 a share, up from
$103 million, or 11 cents a share, a year earlier. Revenue surged
68% to $4.36 billion.
Analysts polled by Thomson Reuters forecast a $1.91 profit on
$4.49 billion in revenue.
Gross margin jumped to 49.8% from 30.3% amid the revenue
surged.
Copper output fell 4% as gold production dropped 12% and
molybdenum output rose 70%. The output drops were more than offset
by higher prices.
-By Matt Jarzemsky; Dow Jones Newswires; 212-416-2240,
matthew.jarzemsky@dowjones.com