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Freeport-McMoRan Copper & Gold fourth-quarter results reflect strong operating performance in the Americas and in Africa

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Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)  Reports Fourth-Quarter and Year Ended December 31, 2011 Results

  • Net income attributable to common stock for fourth-quarter 2011 was $640 million, $0.67 per share, compared with net income of $1.5 billion, $1.63 per share, for fourth-quarter 2010. Net income attributable to common stock for the year 2011 was $4.6 billion, $4.78 per share, compared with $4.3 billion, $4.57 per share, for the year 2010.
  • Consolidated sales from mines for fourth-quarter 2011 totaled 823 million pounds of copper, 133 thousand ounces of gold and 19 million pounds of molybdenum, compared with 941 million pounds of copper, 590 thousand ounces of gold and 17 million pounds of molybdenum for fourth-quarter 2010. Consolidated sales for the year 2011 totaled 3.7 billion pounds of copper, 1.4 million ounces of gold and 79 million pounds of molybdenum, compared with 3.9 billion pounds of copper, 1.9 million ounces of gold and 67 million pounds of molybdenum for the year 2010.
  • Consolidated sales from mines for the year 2012 are expected to approximate 3.8 billion pounds of copper, 1.2 million ounces of gold and 80 million pounds of molybdenum, including 875 million pounds of copper, 425 thousand ounces of gold and 20 million pounds of molybdenum for first-quarter 2012.
  • Consolidated unit net cash costs (net of by-product credits) averaged $1.57 per pound of copper for fourth quarter 2011, compared with $0.53 per pound for fourth-quarter 2010, and $1.01 per pound for the year 2011, compared with $0.79 per pound for the year 2010. Based on current sales volume and cost estimates and assuming average prices of $1,600 per ounce for gold and $13 per pound for molybdenum, consolidated unit net cash costs (net of by-product credits) are estimated to average $1.38 per pound of copper for the year 2012.
  • Operating cash flows totaled $746 million for fourth-quarter 2011 and $6.6 billion for the year 2011, compared with $2.1 billion for fourth-quarter 2010 and $6.3 billion for the year 2010. Based on current sales volume and cost estimates and assuming average prices of $3.50 per pound for copper, $1,600 per ounce for gold and $13 per pound for molybdenum, operating cash flows are estimated to approximate $4.7 billion for the year 2012.
  • Capital expenditures totaled $785 million for fourth-quarter 2011 and $2.5 billion for the year 2011, compared with $535 million for fourth-quarter 2010 and $1.4 billion for the year 2010. Capital expenditures are expected to approximate $4.0 billion for the year 2012, including $2.4 billion for major projects and $1.6 billion for sustaining capital.
  • At December 31, 2011, total debt approximated $3.5 billion and consolidated cash approximated $4.8 billion.
  • During the year 2011, FCX repaid $1.2 billion in debt and paid common stock dividends totaling $1.4 billion ($1.50 per common share).
  • FCX’s preliminary estimate of consolidated recoverable proven and probable reserves at December 31, 2011, totaled 119.7 billion pounds of copper, 33.9 million ounces of gold and 3.42 billion pounds of molybdenum.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, “FCX’s fourth-quarter results reflect strong operating performance in the Americas and in Africa, and were unfavorably impacted by disruptions at our Grasberg operations in Indonesia. Despite the fourth-quarter disruptions, we achieved record financial results in 2011. We are pleased to have reached agreement with the union at the Grasberg mine and with the accomplishments of our team in completing pipeline repairs. We are taking steps to restore full operations. We are continuing to advance our growth projects which are expected to result in meaningful increases to copper and molybdenum production in future periods. Our exploration programs continue to identify opportunities to grow our reserve base. We ended the year with significantly more cash than debt and have a positive outlook for the future prospects of our business.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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