Freeport-McMoRan Reports Robust Fourth Quarter and Full-Year 2023 Performance
Freeport-McMoRan has announced its financial and operational results for the fourth quarter and the entire year of 2023, showcasing a solid operational performance and a promising outlook.
The company's fourth-quarter performance was notably strong, with copper sales volumes surpassing both the October 2023 estimates and the figures from the fourth quarter of the previous year. Additionally, unit net cash costs were reported to be lower than expected, indicating efficient operational management. A significant milestone was the achievement of 90% completion on smelter projects in Indonesia, underscoring Freeport-McMoRan's commitment to expanding and enhancing its processing capabilities.
For the fourth quarter of 2023, Freeport-McMoRan reported a net income of $388 million, or $0.27 per share, with an adjusted net income slightly higher at $393 million, after accounting for minor charges. The company's consolidated production included 1.1 billion pounds of copper, 573 thousand ounces of gold, and 20 million pounds of molybdenum, reflecting the scale and diversity of its operations.
Sales and Market Prices
The company's sales mirrored its production achievements, with consolidated sales reaching 1.1 billion pounds of copper and significant quantities of gold and molybdenum. Looking ahead to 2024, Freeport-McMoRan expects sales to approximate 4.1 billion pounds of copper, 2.0 million ounces of gold, and 85 million pounds of molybdenum. The average realized prices for copper, gold, and molybdenum in the fourth quarter of 2023 were $3.81 per pound, $2,034 per ounce, and $20.66 per pound, respectively.
The company has demonstrated cost efficiency with average unit net cash costs of $1.52 per pound of copper for the fourth quarter, anticipating an average of $1.60 per pound for 2024. Capital expenditures in the fourth quarter amounted to $1.4 billion, reflecting significant investments in major mining and smelter projects. The projected capital expenditures for 2024 are expected to be around $4.6 billion.
Freeport-McMoRan enters 2024 with a strong financial position, optimistic about market fundamentals and committed to enhancing the value of its extensive portfolio of assets.
