Freeport-McMoRan misses profit estimates on lower copper prices

21st July 2022 By: Reuters

US mining giant Freeport-McMoRan on Thursday posted a lower-than-expected profit for the second quarter, hurt by lower realised copper prices.

Demand for copper, often seen as an economic bellwether, took a hit during the reported quarter over recession fears as well as Covid-19 lockdowns in top metals consumer China.

Benchmark copper prices fell around 20.4% over the April-to-June quarter, their biggest quarterly slump since 2011.

Freeport, the world's largest publicly traded copper miner, reported average realised copper prices of $4.03/lb, from last year's $4.34/lb.

The company notes that current prices of copper are insufficient to support new mines, which is expected to worsen a tight global supply of copper.

Copper production in the second quarter rose 17.7% to 1.08-billion pounds.

The Phoenix, Arizona-based firm reported net income of $840-million, or 57c a share, for the quarter ended June 30, from $1.08-billion, or 73c a share, a year ago.

Excluding items, the company earned 58c a share, missing analysts' estimates of 61c a share, as per Refinitiv data.

Revenue fell 5.8% to $5.42-billion, also falling short of market expectations of $6.13-billion.

Freeport-McMoran's second quarter was weighed down by inflation, lower copper prices.