Freeport-McMoRan's Earnings Miss Estimates in Q3, Revenues Beat

Core Viewpoint - Freeport-McMoRan Inc. (FCX) reported a profit increase in Q3 2024, driven by higher copper and gold prices, despite missing adjusted earnings estimates [1][2]. Financial Performance - FCX recorded profits attributable to common stock of $526 million or 36 cents per share, a 16% increase from $454 million or 31 cents in the same quarter last year [1]. - Adjusted earnings per share were 38 cents, below the Zacks Consensus Estimate of 40 cents [1]. - Revenues rose approximately 17% year over year to $6,790 million, exceeding the Zacks Consensus Estimate of $6,459.6 million [1]. Operational Highlights - Copper production decreased by about 3% year over year to 1,051 million pounds, slightly above the estimate of 1,047 million pounds [2]. - Consolidated sales of copper fell roughly 7% year over year to 1,035 million pounds, surpassing the estimate of 1,010 million pounds [2]. - Gold sales increased by around 40% year over year to 558,000 ounces, while molybdenum sales decreased from 20 million pounds to 19 million pounds [2]. Pricing and Costs - The average realized copper price was $4.30 per pound, up approximately 13% year over year, exceeding the estimate of $4.28 [3]. - The average realized price for gold rose around 35% year over year to $2,568 per ounce, above the estimate of $2,367 [3]. - Consolidated average unit net cash costs per pound of copper were $1.39, down from $1.73 a year ago and lower than the estimate of $1.71 [2]. Financial Position - Cash and cash equivalents at the end of the quarter were $5 billion, a decrease of about 5% from the prior quarter [4]. - Total debt increased to $9,679 million, up around 3% sequentially [4]. - Cash flows from operations were approximately $1.9 billion, reflecting a 51% year-over-year increase [4]. Guidance - FCX expects consolidated sales volumes for 2024 to be around 4.1 billion pounds of copper, 1.8 million ounces of gold, and 80 million pounds of molybdenum [5]. - Projected unit net cash costs for copper are expected to average $1.58 per pound for 2024, with a forecast of $1.72 per pound for Q4 [5]. - Operating cash flows are anticipated to be around $6.8 billion for 2024, with capital expenditures projected at approximately $4.6 billion [5]. Stock Performance - FCX shares have increased by 43.1% over the past year, compared to a 50% rise in the Zacks Mining - Non Ferrous industry [6].