Freeport-McMoRan Q3 Profits, Sales Fall On Decreasing Copper Prices

Freeport-McMoRan Inc FCX reported adjusted earnings of $375 million or $0.26 per share for Q3 FY22, sharply down from $0.89 a year ago and missing the consensus of $0.31.
The company's revenue for the quarter fell 17.8% to $5.00 billion from $6.08 billion last year, slightly below the consensus of $5.05 billion.
The London Metal Exchange (LME) copper settlement price reached a high of $4.87 per pound in March 2022, supported by copper's increasingly important role in decarbonization technologies and limited mine supply.
Amid series of macroeconomic factors led to a decline in copper prices. The LME copper settlement price declined to $3.74 per pound in June-end and further declined during Q3 2022 to $3.47 per pound. The LME copper settlement price reached $3.37 per pound on October 19, 2022.
The mining giant said the average realized price for copper was $3.50 per pound at the end of the third quarter, lower than last year's $4.20 per pound.
Consolidated sales totaled 1.1 billion pounds of copper, 480 thousand ounces of gold, and 17 million pounds of molybdenum.
Guidance: Consolidated sales for FY22 are expected to approximate 4.2 billion pounds of copper, 1.8 million ounces of gold, and 76 million pounds of molybdenum.
For Q4, the production is expected to be 1.0 billion pounds of copper, 420 thousand ounces of gold, and 20 million pounds of molybdenum.
Price Action: FCX shares traded higher by 4.60% at $29.67 on the last check Thursday.

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