Freeport-McMoRan Sees Lower Copper Prices Reducing Revenue; Shares Down
01 Juli 2019 - 3:24PM
Dow Jones News
By Michael Dabaie
Freeport-McMoRan Inc. (FCX) said Monday that the effect of lower
copper prices will reduce second-quarter revenue.
Shares fell about 2%, to $11.39, premarket.
Freeport said it estimates that the mark-to-market effect of
lower copper prices will reduce second-quarter revenue by about $85
million. The effect of lower copper prices, including adjustments
for provisionally priced sales recorded at March 31, on
second-quarter 2019 revenues is estimated to be about $260 million,
the company said.
London Metal Exchange copper prices averaged $2.77 per pound
during the second quarter, Freeport said. The average three-month
forward price at the end of June was $2.72 per pound and will be
used to record provisionally priced copper sales. Freeport said it
expects its second-quarter copper sales to be recorded at an
average price of about $2.73 per pound. At the end of March 31, FCX
had provisionally priced copper sales at its copper mining
operations at an average of $2.94 per pound.
Based on estimated realized prices and updated gold sales and
cost guidance for the second quarter, Freeport said it expects to
generate adjusted earnings before interest, taxes and depreciation
of about $430 million in second-quarter 2019 and to record about a
5 cent-per-share loss to net income before items.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
July 01, 2019 09:09 ET (13:09 GMT)
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