To download a PDF of the release, please visit the following link: Freeport-McMoRan Reports First-Quarter 2016 Results
PHOENIX--(BUSINESS WIRE)-- Freeport-McMoRan Inc. (NYSE: FCX):
Net loss attributable to common stock totaled $4.2 billion, $3.35 per share, for first-quarter 2016. After adjusting for net charges totaling $4.0 billion, $3.19 per share, first-quarter 2016 adjusted net loss attributable to common stock totaled $197 million, $0.16 per share.
Consolidated sales totaled 1.1 billion pounds of copper, 201 thousand ounces of gold, 17 million pounds of molybdenum and 12.1 million barrels of oil equivalents (MMBOE) for first-quarter 2016, compared with 960 million pounds of copper, 263 thousand ounces of gold, 23 million pounds of molybdenum and 12.5 MMBOE for first-quarter 2015.
The Cerro Verde expansion project reached full production capacity in first-quarter 2016, and Cerro Verde is on track to produce over 1 billion pounds of copper for the year 2016.
Consolidated sales for the year 2016 (adjusted for the anticipated closing of the Morenci transaction in second-quarter 2016) are expected to approximate 5.0 billion pounds of copper, 1.85 million ounces of gold, 71 million pounds of molybdenum and 54.4 MMBOE, including 1.15 billion pounds of copper, 195 thousand ounces of gold, 19 million pounds of molybdenum and 13.5 MMBOE for second-quarter 2016.
Average realized prices were $2.17 per pound for copper, $1,227 per ounce for gold and $29.06 per barrel for oil for first-quarter 2016.
Consolidated unit net cash costs averaged $1.38 per pound of copper for mining operations and $15.85 per barrel of oil equivalents (BOE) for oil and gas operations for first-quarter 2016. Consolidated unit net cash costs for the year 2016 are expected to average $1.05 per pound of copper for mining operations and $15 per BOE for oil and gas operations.
Operating cash flows totaled $740 million (including $188 million in working capital sources and changes in other tax payments) for first-quarter 2016. Based on current sales volume and cost estimates and assuming average prices of $2.25 per pound for copper, $1,250 per ounce for gold, $5 per pound for molybdenum and $45 per barrel for Brent crude oil for the remainder of 2016, operating cash flows for the year 2016 are expected to approximate $4.8 billion (including $0.8 billion in working capital sources and changes in other tax payments).
Capital expenditures totaled $982 million for first-quarter 2016, consisting of $459 million for mining operations (including $350 million for major projects) and $523 million for oil and gas operations. Capital expenditures are expected to approximate $3.3 billion for the year 2016, consisting of $1.8 billion for mining operations (including $1.4 billion for major projects) and $1.5 billion for oil and gas operations.
At March 31, 2016, consolidated debt totaled $20.8 billion and consolidated cash totaled $331 million. At March 31, 2016, FCX had $3.0 billion available under its $3.5 billion credit facility.
During first-quarter 2016, FCX entered into agreements to sell an additional 13 percent ownership in Morenci and to sell an interest in the Timok exploration project in Serbia for aggregate consideration of $1.3 billion. In addition, in April 2016, FCX entered into an agreement to sell certain oil and gas royalty interests for $0.1 billion. These transactions are expected to close in second-quarter 2016.
FCX continues to advance discussions for the sale of certain interests in its mining and oil and gas assets to accelerate its debt reduction initiatives. FCX expects to achieve additional progress during second-quarter 2016.
Freeport-McMoRan Inc. (NYSE: FCX) reported net losses attributable to common stock of $4.2 billion, $3.35 per share, for first-quarter 2016, compared with $2.5 billion, $2.38 per share, for first-quarter 2015. FCXG