- Freeport reduced its fiscal year (FY) forecast for copper unit net cash costs per pound to $1.58 from a previous estimate of $1.63, against an analyst estimate of $1.59.
- The fourth quarter forecast for copper unit net cash costs per pound is pegged at $1.72, above the estimate of $1.65.
- For the third quarter, Freeport reported adjusted earnings per share (EPS) of 38 cents, a slight decrease from 39 cents year-over-year (y/y), but above the estimate of 37 cents.
- The company’s revenue for the third quarter was $6.79 billion, marking a 17% increase y/y, and exceeding the estimate of $6.45 billion.
- Copper production for the third quarter stood at 1.05 billion pounds, representing a 4.5% decrease y/y.
- Copper unit net cash costs in the third quarter were $1.39 per pound, a 20% decrease y/y, and lower than the estimate of $1.60.
- The average realized price for copper during the third quarter was $4.30 per pound, a 13% increase y/y, slightly above the estimate of $4.27.
- Gold production for the period was 456,000 ounces, down 14% y/y, and below the estimate of 468,721 ounces.
- Gold sales volume increased by 40% y/y to 558,000 ounces, surpassing the estimate of 472,313 ounces.
- The average realized price for gold was $2,568 per ounce, a 35% increase y/y, beating the estimated price of $2,435.
- The market sentiment for Freeport’s stock includes 16 buy ratings, 7 hold ratings, and no sell ratings.
Freeport Mcmoran on Smartkarma
Analyst coverage of Freeport-McMoRan on Smartkarma showcases positive sentiments from Baptista Research. In the report titled “Freeport-McMoRan Inc.: Innovative Smelter Operations in Indonesia & Other Major Drivers,” strengths within the company’s operations and strategic initiatives are highlighted. With a focus on the copper industry, Freeport-McMoRan stands to benefit from strong global copper demand driven by sectors like electrification and renewable energies. The company’s robust EBITDA of $2.7 billion and impressive $2 billion in operating cash flow are attributed to steady production volumes and recovering commodity prices.
In another report by Baptista Research titled “Freeport-McMoRan Inc.: Growth Through Large-Scale Mining Operations in Large and High-Grade Copper and Gold Mining Districts! – Major Drivers,” Freeport-McMoRan’s successful execution of business strategies is noted in its first-quarter earnings. The incoming CEO emphasizes the strategic focus on copper, in line with the growing global demand for the metal across various sectors, especially electrification. Analysts point to tight market conditions in the long term due to limited major new projects and constrained existing supplies, indicating positive prospects for Freeport-McMoRan.
A look at Freeport Mcmoran Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 Inc., an international natural resources company, has a mixed outlook based on the Smartkarma Smart Scores. With a value score of 3, the company offers fair value opportunities for investors. However, its dividend score of 2 indicates a weaker payout to shareholders. In terms of growth, resilience, and momentum, Freeport Mcmoran receives a score of 3 across the board, showing moderate potential for future development and stability in the face of challenges.
Despite facing some uncertainties in dividend payouts, Freeport-McMoRan Inc. appears to be positioned for moderate growth and resilience in the long term. Its diversified assets, including copper, gold, molybdenum, cobalt, oil, and gas, provide a stable foundation for the company’s operations. Overall, with a balanced outlook across key factors, Freeport-McMoRan Inc. could present opportunities for investors seeking a mix of value, growth, and stability in the natural resources sector.
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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