https://www.miningweekly.com
Copper|Export|Resources
Copper|Export|Resources
copper|export|resources

Copper miners squeezed by lower prices, higher labour costs

Teck Resources' Highland Valley operations in Canada

Teck Resources' Highland Valley operations in Canada

20th July 2023

By: Reuters

  

Font size: - +

Major North American copper miners are likely to report a fall in second-quarter profits, as global growth concerns dented realised prices for the red metal and labour costs remained high.

Freeport-McMoRan, Southern Copper and Teck Resources are estimated to post a combined adjusted profit of $1.53-billion for the April-June quarter, according to data from Refinitiv, compared with $2.63-billion a year earlier.

The average copper price fell about 11% to $3.85/lb during the period, as per CFRA Research.

"Copper prices fell considerably in the first part of second-quarter before finding a bottom in late May, at which point it was able to regain some lost ground," said Steve Schoffstall of Sprott Asset Management.

He blamed fears of slowing global growth, particularly in top consumer China, for the decline in prices.

The drop knocked Freeport-McMoRan's earnings before interest, taxes, depreciation, and amortisation (EBITDA) by about $110-million, Wolfe Research said in a research note.

Freeport, which operates the low-cost, high-grade Grasberg mine in Indonesia, is also awaiting an export permit after the Southeast Asian nation banned raw mineral exports. The company has not shipped its materials since June 10 following the expiry of its export permit.

Bernstein sees labor costs, which account for 28% of site production costs, further decreasing margins for Freeport.

Southern Copper, on the other hand, may have the best chance to post a year-on-year rise in adjusted earnings, said Matthew Miller, analyst at CFRA Research, on higher production.

Freeport-McMoRan is set to launch the second-quarter earnings season for miners on Thursday, with Southern Copper, First Quantum and Teck scheduled to report next week

Edited by Reuters

Comments

Latest News

State-owned groups Eskom and Transnet have impaired mining productivity with unreliable power supply and a lack of trains to move mineral exports.
BHP’s South Africa snub an indictment of ANC, DA says
Updated 4 hours ago By: Bloomberg

Showroom

Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Mining Weekly Editor Martin Creamer
Copper shares soar and green hydrogen goes digital
26th April 2024
Magazine cover image
Magazine round up | 26 April 2024
26th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.217 0.254s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: