- Freeport’s adjusted earnings per share (EPS) for the first quarter were 24 cents, slightly beating estimates of 23 cents, though down from 32 cents year-over-year.
- First-quarter revenue reached $5.73 billion, a 9.4% decrease from the previous year but exceeded the estimate of $5.39 billion.
- Capital expenditures for the quarter were $1.17 billion, below both the previous year’s $1.25 billion and the estimate of $1.21 billion.
- Copper production dropped by 20% year-over-year to 868 million pounds.
- The net cash cost per pound for copper increased by 37% year-over-year to $2.07, which was better than the estimated $2.14.
- The average realized price per pound of copper rose 13% year-over-year to $4.44, surpassing the estimated $4.28.
- Gold production fell significantly by 48% year-over-year to 287,000 ounces but beat the estimate of 192,898 ounces.
- Gold sales volume decreased sharply by 77% year-over-year to 128,000 ounces, below the estimate of 148,431 ounces.
- The average realized price per ounce of gold increased by 43% year-over-year to $3,072, exceeding the estimate of $2,846.
- Molybdenum production increased by 28% year-over-year to 23 million pounds, beating the estimate of 21.41 million pounds.
- The average realized price per pound of molybdenum was $21.67, a 6.3% increase year-over-year, above the estimate of $20.66.
- Freeport is closely monitoring U.S. trade policy developments, which could potentially increase its domestic goods’ costs by about 5% due to supply chain impacts.
- Freeport is the leading copper supplier in the U.S., responsible for approximately 70% of the nation’s refined copper production.
- The company is undertaking initiatives to significantly expand its domestic copper production through potential permitting reforms and other incentives.
- Analyst recommendations include 16 buys, 5 holds, and 1 sell.
Freeport Mcmoran on Smartkarma
Analyst coverage of Freeport Mcmoran on Smartkarma by Baptista Research indicates positive sentiment towards the company’s recent performance and growth strategies. In their report titled “Freeport-McMoRan: Geopolitical & Diversification Strategy To Shape the Future! – Major Drivers,” Freeport-McMoRan’s 2024 operational results, including a $10 billion EBITDA and over $7 billion in operating cash flows, were highlighted as strong indicators of success.
Another report by Baptista Research, titled “Freeport-McMoRan Inc.: Expansion & Efficiency At Key Operations As A Crucial Growth Lever! – Major Drivers,” emphasizes the company’s successful execution of strategic plans during the third quarter of 2024. Despite challenges, Freeport-McMoRan’s EBITDA of $2.7 billion and operating cash flows of $1.9 billion reflect robust performance driven by strong sales volumes and favorable market conditions for copper and gold.
A look at Freeport Mcmoran Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Freeport Mcmoran‘s long-term outlook is looking promising based on the Smartkarma Smart Scores analysis. With a balanced score of 3 across key factors including Value, Dividend, Growth, and Resilience, the company is positioned steadily in the market. Additionally, its Momentum score of 4 indicates strong positive performance trend, hinting at potential growth opportunities ahead.
As an international natural resources company with a diversified portfolio of assets in copper, gold, molybdenum, cobalt, oil, and gas, Freeport-McMoRan Inc. stands as a robust player in the industry. With consistent scores across important metrics, the company shows stability and potential for future growth, making it a noteworthy contender for investors seeking long-term value.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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