TORONTO (miningweekly.com) – US miner Freeport-McMoRan Copper & Gold has reported a 32% drop in second-quarter profit, as lower metals prices and higher costs impacted on its performance and dented its full-year outlook.

The copper and gold producer, based in Phoenix, Arizona, said on Tuesday that as a result of the “uncertain” global economic environment, it would reduce spending through 2014, after it reduced or deferred capital expenditures and other costs during the quarter ended June 30.

It also started efforts to identify potential asset sales to reduce debt and maintain financial strength and flexibility in response to recent declines in metals prices.

“We are taking measures to execute prudent capital management in an uncertain global economic environment and are committed to pursuing additional divestitures and capital cost reductions, as required, to maintain a strong balance sheet while preserving a strong resource position and a portfolio of assets with attractive long-term growth prospects,” CEO Richard Adkerson said during an analyst conference call.

Freeport also lowered its full-year copper and gold sales guidance after production was halted for nearly two months at its Grasberg complex, in Indonesia, following a fatal training tunnel collapse, as well as subsequent accidents at the mine.

Freeport now expected to sell 5% less copper at 4.1-billion pounds, down from 4.3-billion pounds, and gold sales were expected to decline some 21% to 1.1-million ounces, from 1.4-million ounces in 2012.

The NYSE-listed company closed the $19-billion takeover of two US energy companies during the quarter, as it sought to broaden its portfolio as quality new copper projects became scarcer. Freeport closed its takeover of Plains Exploration & Production on May 31 and McMoRan Exploration on June 3.

Freeport reported net income of $482-million, or $0.49 a share, down from $710-million, or $0.74 a share, a year earlier.

Revenue declined 4% to $4.3-billion as the cost to produce copper rose 24% to $1.85/lb and the realised copper price fell 10% to $3.17/lb.

Copper sales rose 3% to 951-million pounds, and gold sales slid 35% to 173 000 oz, with the average realised gold price falling 17% to $1 322/oz.

Freeport’s stock traded briskly on the NYSE early on Tuesday morning, gaining $0.73 or 2.51% a share to $29.88 apiece.