Denver — Improved ore grades and record throughput at the Grasberg copper-gold operation in Irian Jaya, Indonesia, should propel
Production for the three months ended June 30 is expected to exceed 410 million lbs. copper and 980,000 oz. gold.
Precise figures are not yet available for the second quarter, though copper and gold grades in the first quarter were 20% and 70% higher than in the first three months of 2000. This increase is a reflection of uncharacteristically low grades in the Grasberg pit last year. Daily throughput in the recent first quarter reached a record 240,000 tonnes.
Freeport’s share of sales, through its 86%-held operating subsidiary P.T. Freeport-Indonesia (PT-FI), should reach 390 million lbs. copper and 810,000 oz. gold.
Freeport is the world’s lowest-cost copper producer. Projected cash production costs for the second quarter, after gold credits, are nil per lb., less than the US10-per-lb. average projected for the year.
Earnings in the April-to-June period should reach US25 per share, assuming an average copper price of US70 per lb.
The projected financial results take into account a US10-per-share hit on earnings resulting from a 27-day shutdown during April at Freeport’s Atlantic Copper smelter in Spain.
Strong operating results during the second quarter allowed Freeport to repay more than US$120 million in debt from operating cash flow.
PT-FI’s share of sales for 2001 is expected to reach 1.4 billion lbs. copper and 2.5 million oz. gold, more than 100,000 oz. higher than anticipated.
Freeport will announce its quarterly earnings in mid-July.
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