Copper miner Freeport-McMoRan (FCX.N) surpassed Wall Street’s first-quarter profit estimates on Tuesday, attributing its success to increased production and reduced costs.
The mining behemoth reported a rise in copper production to 1.1 billion pounds from 965 million pounds in the previous year, with a significant 49% surge in output from its operations in Indonesia.
Freeport-McMoRan also disclosed ongoing efforts to collaborate with the Indonesian government, which has imposed a ban on raw material exports, in order to secure approvals for the continued shipment of copper concentrates and anode slimes, as its current license is due to expire in May.
Additionally, the company reaped the benefits of strong gold prices, particularly as a byproduct from its prominent Grasberg mine in Indonesia, with total gold sales volume more than doubling to 568,000 ounces in the reported quarter.
Furthermore, Freeport-McMoRan’s average cash costs per pound of copper in the first quarter decreased to $1.51, down from the previous year’s $1.76, driven by robust production. The company anticipates these costs to average at $1.57 for the entirety of 2024.
On an adjusted basis, the Phoenix, Arizona-based company achieved earnings of 32 cents per share for the quarter ending on March 31, surpassing the average analyst estimate of 26 cents per share.