Freeport-McMoRan reported consolidated sales of 809 million pounds (lb) of copper, 182,000 oz of gold and 24 million lb of molybdenum for first quarter 2017. The company’s sales volumes were impacted by regulatory restrictions on PT Freeport Indonesia’s (PT-FI) concentrate exports since mid-January 2017. PT-FI operates the Grasberg mine and the restrictions resulted in the deferral of about 190 million lb of copper and 280,000 oz of gold in first-quarter 2017. PT-FI’s concentrate exports resumed April 21, 2017.
“During the first quarter, we continued to strengthen our financial position despite the production interruptions experienced at our Indonesian operations,” said Richard C. Adkerson, President and CEO, Freeport. “The resumption of concentrate exports in Indonesia and expected continued strong performance from our Americas operations will enable us to generate significant cash flows in the balance of the year.”
Freeport said its consolidated sales for the year 2017 are expected to be 3.9 billion lb of copper, 1.9 million oz of gold and 93 million lb of molybdenum, including 1 billion lb of copper, 440,000 oz of gold and 24 million lb of molybdenum for second-quarter 2017. The average realized prices for those metals were $2.67/lb for copper, $1,229/oz for gold, and $8.71/lb for molybdenum for first-quarter 2017.
Freeport reached an agreement with the Indonesian government to resume concentrate exports, which were suspended since January 12 for a six-month period for negotiation of a new special operating license (IUPK) and investment stability agreement to support PT-FI’s long-term investment plans.