Freeport McMoRan cuts 2023 copper sales guidance, upgrades gold

Phoenix-based Freeport McMoRan revised its copper sales forecast downward, and gold guidance upward. 

Copper sales fell 19% to 377,389t in Q1 and those of gold 34% to 246,093oz compared to the same period last year.

Guidance for copper sales fell from 1.91Mt to 1.86Mt, while for gold the projection rose from 1.55Moz to 1.64Moz. Guidance for molybdenum sales fell from 36,287t to 35,834t.

According to the company’s latest results presentation, the drop in copper sales is explained by the poor performance of its Grasberg mine in Indonesia. The mine had to stop operations in February due to heavy rains and flooding, and only resumed operations in March.

SOUTH AMERICA

Regarding South America, copper production in 1Q23 was up from 119,748t in 1Q22 to 137,892t.

Freeport operates and has a 53.6% share of the Cerro Verde mine in Peru’s Arequipa region, which is currently the country’s leading copper producer

According to the presentation, Cerro Verde produced 110,130t of copper in 1Q23. February was the month with the lowest output in the quarter at 34,927t due to disruptions in the logistics chain and protests. The situation improved in March when production rose 13% compared to February to 39,463t.

The company also has a 51% share in El Abra in Chile in a JV with state copper miner Codelco.

Overall, the operations in Peru and Chile are expected to produce 554,290t of the estimated 1.86Mt of copper this year.

All the production and guidance figures are on a 100% basis.

FINANCIAL RESULTS

Freeport's revenues were US$5.4bn in 1Q23, down from US$6.6bn in the same period last year.

Capex increased from US$700mn to US$1.1bn.

Earnings fell from US$1.5bn to US$700mn.