Freeport-McMoRan Announced its Financial Results for the Fourth Quarter

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Freeport-McMoRan Inc. (NYSE: FCX) announced its financial results for the fourth quarter ended December 31, 2016, with sales and net income miss estimations.

According to the statement, net income was $292 million, or $0.21 per share, for fourth quarter. Adjusted net income was $351 million, or $0.25 per share, which missed the analysts’ estimates of $0.35 per share. The drop in profits was due to difficulty in accessing high-grade ore at Indonesian operations.

Freeport got 1.05 billion pounds of copper and 1.05 million ounces of gold from its Indonesian mine in 2016, missing its estimates in October, which led to a drop in the full-year production. For the full-year 2016, sales volumes were 4.65 billion pounds of copper and 1.08 million ounces of gold, which were below the estimates of 4.8 billion pounds of copper and 1.26 million ounces of gold.

For the fourth quarter, consolidated sales were 2 billion pounds of copper, 405 thousand ounces of gold and 22 million pounds of molybdenum. And in 2017, the company expected consolidated sales to be 4.1 billion pounds of copper and 2.2 million ounces of gold, which is below the estimates of 4.32 billion pounds of copper and 2.75 million ounces of gold.

The company said Wednesday it expects consolidated sales to be 4.1 billion pounds of copper and 2.2 million ounces of gold in 2017, lower than average estimates for 4.32 billion pounds of copper and 2.75 million ounces of gold. The guidance assumes Freeport will be allowed to resume concentrate exports from Indonesia in February and will have its smelting export license renewed, the company said.

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