Freeport-McMoRan beats by $0.06, misses on revs
Reports Q4 (Dec) earnings of $0.86 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.80; revenues rose 30.4% year/year to $5.88 bln vs the $6.4 bln consensus.
- Fourth-quarter 2013 consolidated copper sales of 1.14 billion pounds were higher than fourth-quarter 2012 sales of 972 million pounds reflecting improved volumes throughout FCX's global mining operations.
- Fourth-quarter 2013 consolidated gold sales of 512 thousand ounces were higher than fourth-quarter 2012 sales of 254 thousand ounces and the October 2013 estimate of 390 thousand ounces reflecting higher ore grades and improved operating performance in Indonesia.
- Fourth-quarter 2013 consolidated molybdenum sales of 22 million pounds were higher than fourth-quarter 2012 sales of 21 million pounds and the October 2013 estimate of 21 million pounds.
- Fourth-quarter 2013 sales from oil and gas operations of 16.6 MMBOE, including 11.7 million barrels (MMBbls) of crude oil, 22.9 billion cubic feet (Bcf) of natural gas and 1.1 MMBbls of natural gas liquids (NGLs), were higher than the October 2013 estimate of 16 MMBOE primarily reflecting higher Eagle Ford production.
- Consolidated sales for the year 2014 are expected to approximate 4.4 billion pounds of copper, 1.7 million ounces of gold, 95 million pounds of molybdenum and 60.7 MMBOE, including 1.0 billion pounds of copper, 325 thousand ounces of gold, 25 million pounds of molybdenum and 15.3 MMBOE in first-quarter 2014.
- Mining Unit Net Cash Costs- Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $1.16 per pound of copper in fourth-quarter 2013 were significantly lower than unit net cash costs of $1.54 per pound in fourth-quarter 2012 and the previous estimate of $1.46 per pound primarily reflecting higher copper and gold sales volumes and ongoing cost control efforts. For the year 2013, consolidated unit net cash costs (net of by-product credits) averaged $1.49 per pound of copper compared with the year 2012 average of $1.48 per pound. Assuming average prices of $1,200 per ounce of gold and $9.50 per pound of molybdenum and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for FCX's copper mining operations are expected to average $1.45 per pound of copper for the year 2014.
- FCX's preliminary estimated consolidated recoverable proven and probable reserves from its mines at December 31, 2013, include 111.2 billion pounds of copper, 31.3 million ounces of gold and 3.26 billion pounds of molybdenum, which were determined using long-term average prices of $2.00 per pound for copper, $1,000 per ounce for gold and $10.00 per pound for molybdenum.
- Operating Cash Flows- FCX generated operating cash flows of $2.3 billion in fourth-quarter 2013 and $6.1 billion for the year 2013. FCX's consolidated operating cash flows are estimated to approximate $9 billion for the year 2014..