Freeport's Earnings Surpass Estimates in Q4, Revenues Miss

Core Insights - Freeport-McMoRan Inc. (FCX) reported a net income of $274 million or 19 cents per share for Q4 2024, a decrease of approximately 29.3% from $388 million or 27 cents in the same quarter last year [1] - Adjusted earnings per share were 31 cents, exceeding the Zacks Consensus Estimate of 24 cents [1] - Revenues fell nearly 3.1% year over year to $5,720 million, missing the Zacks Consensus Estimate of $5,921.9 million due to lower copper sales [2] Operational Highlights - Copper production decreased by nearly 4.9% year over year to 1,041 million pounds, missing the estimate of 1,088 million pounds [3] - Consolidated sales of copper dropped around 11.1% year over year to 992 million pounds, surpassing the estimate of 980 million pounds [3] - Gold sales were 350,000 ounces, down approximately 36.2% year over year, but higher than the estimate of 340,000 ounces [4] - Molybdenum sales totaled 18 million pounds, down around 18.2% year over year, lagging behind the estimate of 20 million pounds [4] Financial Position - Operating cash flows amounted to approximately $1.4 billion for Q4 and $7.2 billion for the full year 2024 [6] - Capital expenditures for Q4 reached $1.2 billion, including $0.6 billion for significant mining projects and $0.2 billion for a new smelter and precious metals refinery in PT Freeport Indonesia [6] Guidance - FCX expects consolidated operational cash flows of around $6.2 billion for 2025, based on current sales volume and cost forecasts, assuming average prices of $4.00 per pound of copper, $2,700 per ounce of gold, and $20.00 per pound of molybdenum [7] - Projected capital expenditures for 2025 are around $5 billion, with $1.1 billion allocated for underground mine development in the Grasberg minerals district and expansion projects in North America, and $1.7 billion for discretionary growth projects [8] - Expected consolidated sales for 2025 include approximately 4 billion pounds of copper, 1.6 million ounces of gold, and 88 million pounds of molybdenum, with specific first-quarter estimates of 850 million pounds of copper, 225,000 ounces of gold, and 22 million pounds of molybdenum [9] Price Performance - Freeport's shares have declined by 1.6% over the past year, contrasting with an 11.7% rise in the industry [10]