Freeport-McMoRan's profit rises on higher copper prices

21st April 2022 By: Reuters

Copper miner Freeport-McMoRan on Thursday reported a jump in first-quarter profit, as supply worries bolstered prices of the red metal.

Prices of copper, a key metal used in wiring, electric vehicles and other electronics, rose about 7% in the first quarter on fears that Russia's invasion of Ukraine would disrupt supply chains.

Investors are betting on copper's critical role in reducing emissions as the world transitions to a lower carbon economy.

The average realized price Freeport received for the red metal rose more than 18% to $4.66/lb in the first quarter, while quarterly production rose to 1.01-billion pounds, up more than 10% from a year earlier.

The company posted adjusted net income attributable to common stock of $1.6-billion, or $1.07 a share, in the quarter ended March 31, compared with $756-million, or 51c a share, a year earlier.