Freeport Workers to Return to Work - Analyst Blog
30 Dezember 2011 - 9:45AM
Zacks
Workers at the Indonesian unit of Freeport McMoran
Copper & Gold Inc. (FCX) are expected
to return to the Grasberg mine in Papua on January 20, 2012 after
observing a three-month strike.
The labor union at PT Freeport Indonesia stated that the port
unit contractor PT Kuala Pelabuhan Indonesia (KPI) has agreed to
reinstate about 700 workers who went on strike with no sanctions.
The Union is in talks with Freeport management and mining
contractors to clear sanctions imposed on an additional 500
employees.
The problems have been agreeably settled between KPI management
and the union.
The deal implies that full operations will commence at the
second largest copper mine in the world following the operational
disruption arising from the three-month long strike, which shook
labor relations in the country.
The employees will receive a 24% increase in the first year of
the new agreement and another 13% in the second year.
The strike at Grasberg mine affected Freeport’s total production
and led the company to declare force majeure on exports in October,
thereby boosting global prices.
In October 2011, Freeport released its third-quarter earnings.
The company reported a profit of $1.1 billion or $1.10 per share in
the third quarter of 2011 versus $1.2 billion or $1.24 per share in
the prior-year quarter. Reported profit missed the Zacks Consensus
Estimate by 2 cents per share.
Revenues in the quarter were $5.20 billion versus $5.15 billion
in the prior-year quarter, surpassing the Zacks Consensus Estimate
of $5.01 billion. Consolidated sales from mines totaled 947 million
pounds of copper, 409,000 ounces of gold and 19 million pounds of
molybdenum compared with 1.1 billion pounds of copper, 497,000
ounces of gold and 17 million pounds of molybdenum in the third
quarter of 2010.
Consolidated unit net cash costs (net of by-product credits)
averaged 80 cents per pound of copper compared with 82 cents per
pound in the third quarter of 2010. Operating income slumped to
$2.1 billion from $2.5 billion in the year-ago quarter.
Freeport-McMoRan’s consolidated sales from mines for the year
2011 are expected to approximate 3.8 billion pounds of copper, 1.6
million ounces of gold and 78 million pounds of molybdenum. For the
fourth quarter of 2011, consolidated sales are expected to be 915
million pounds of copper, 305 thousand ounces of gold and 18
million pounds of molybdenum.
Based on current 2011 sales volume and cost estimates and
assuming average prices of $1,600 per ounce for gold and $14 per
pound for molybdenum for fourth-quarter 2011, consolidated unit net
cash costs (net of by-product credits) are estimated to average 95
cents per pound of copper for the year 2011.
Based on current 2011 sales volume and cost estimates and
assuming average prices of $3.25 per pound for copper, $1,600 per
ounce for gold and $14 per pound for molybdenum for fourth-quarter
2011, operating cash flows are estimated to approximate $7 billion
for fiscal 2011. Capital expenditures are expected to approximate
$2.6 billion for full-year 2011, including $1.4 billion for major
projects and $1.2 billion for sustaining capital.
Headquartered in Phoenix, Arizona, Freeport-McMoRan Copper &
Gold Inc. is engaged in mineral exploration and development; mining
and milling of copper, gold, molybdenum and silver; as well as the
smelting and refining of copper concentrates.
The company conducts its operations primarily through its
principal operating subsidiaries, PT Freeport Indonesia,
Freeport-McMoRan Corporation (formerly Phelps Dodge) and Atlantic
Copper. Its major competitors include Newmont Mining
Corp. (NEM) and Southern Copper Corp.
(SCCO). The company currently retains a Zacks #4 Rank, which
translates to a short-term Sell rating.
FREEPT MC COP-B (FCX): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
Von Jul 2023 bis Jul 2024