Freeport-McMoRan Inc. FCX recorded net income of $274 million or 19 cents per share for fourth-quarter 2024, down around 29.3% from $388 million or 27 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 31 cents, topping the Zacks Consensus Estimate of 24 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues declined nearly 3.1% year over year to $5,720 million. The figure missed the Zacks Consensus Estimate of $5,921.9 million. The company witnessed lower copper sales in the reported quarter.
Freeport-McMoRan Inc. Price, Consensus and EPS Surprise
Freeport-McMoRan Inc. price-consensus-eps-surprise-chart | Freeport-McMoRan Inc. Quote
Freeport’s Operational Highlights
Copper production declined nearly 4.9% year over year to 1,041 million pounds in the reported quarter. The figure missed our estimate of 1,088 million pounds. Consolidated sales decreased around 11.1% year over year to 992 million pounds of copper. The figure outpaced our estimate of 980 million pounds.
The company sold 350,000 ounces of gold, down around 36.2% year over year. The figure was higher than our estimate of 340,000 ounces. FCX also sold 18 million pounds of molybdenum, down around 18.2% year over year. The figure lagged our estimate of 20 million pounds.
Consolidated average unit net cash costs per pound of copper were $1.66, up around 9.2% year over year. The figure is lower than our estimate of $1.72. The average realized price for copper was $4.15 per pound, up around 8.9% year over year. The figure beat our estimate of $4.06 per pound.
Freeport’s Financial Position
Operating cash flows totaled around $1.4 billion for the fourth quarter and $7.2 billion for 2024.
Fourth-quarter capital expenditures reached $1.2 billion, including $0.6 billion for significant mining projects and $0.2 billion for PT Freeport Indonesia's new smelter and precious metals refinery.
Freeport’s Guidance
FCX's consolidated operational cash flows are expected to be around $6.2 billion for 2025, based on current sales volume and cost forecasts, and assuming average prices of $4.00 per pound of copper, $2,700 per ounce of gold and $20.00 per pound of molybdenum.
Capital expenditures are projected to be around $5 billion for 2025. Spending on major mining projects is expected to include $1.1 billion for planned projects mainly related to underground mine development in the Grasberg minerals district and expansion projects in North America, and $1.7 billion for discretionary growth projects.
Freeport expects consolidated sales of around 4 billion pounds of copper, 1.6 million ounces of gold and 88 million pounds of molybdenum for 2025. These include 850 million pounds of copper, 225,000 ounces of gold and 22 million pounds of molybdenum in first-quarter 2025.
Freeport’s Price Performance
Freeport’s shares are down 1.6% in the past year compared with a 11.7% rise of the industry.
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FCX’s Zacks Rank & Key Picks
FCX currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hecla Mining Company HL and Ingevity Corporation NGVT.
CRS is slated to report fiscal second-quarter results on Jan. 30. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.58. CRS beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 14.1%. CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla Mining is expected to report fourth-quarter results on Feb. 2. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.
Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%.
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