Freeport-McMoRan Reports Q3 Beat, Touts Revenue Growth And Improved Margins

Freeport-McMoRan Inc FCX reported third-quarter (Q3) FY23 revenue growth of 16.4% year-over-year to $5.82 billion, beating the consensus of $5.41 billion.

Adjusted EPS was 39 cents, beating the consensus of 34 cents.

Q3 copper sales amounted 1.1 billion pounds — an increase of 5% Y/Y

Gold sales of 399 thousand ounces were down 17% Y/Y.

Molybdenum sales of 20 million pounds were higher than 3Q22 sales of 17 million pounds.

Q3 Average realized prices were $3.80 per pound for copper, $1,898 per ounce for gold and $23.71 per pound for molybdenum.

Operating income increased by 55.1% Y/Y to $1.49 billion, and margin expanded by 640 bps to 25.6%.

Operating cash flow for the quarter totaled $1.24 billion, compared to $758 million in Q3 of 2022.

At Sept. 30, FCX had $5.7 billion in consolidated cash and cash equivalents.

Consolidated debt totaled $9.4 billion.

4Q23 Outlook: FCX sees consolidated sales volumes to approximate 1.1 billion pounds of copper, 580 thousand ounces of gold, and 20 million pounds of molybdenum.

FY23 Outlook: Freeport-McMoRan expects consolidated sales volumes to approximate 4.06 billion pounds of copper, 1.74 million ounces of gold, and 80 million pounds of molybdenum.

The company expects operating cash flows of ~$5,4 billion in FY23 and capital expenditures to be ~$4.8 billion.

Price Action: FCX shares are trading higher by 0.03% at $35.62 on the last check Thursday.