Freeport-McMoRan exceeds its quarterly profit expectations on the back of higher copper prices

Freeport-McMoRan surpassed Wall Street expectations?for the second-quarter profit?on Thursday as higher copper prices 'offset lower production?at Grasberg Mine in?Indonesia.

In premarket trading, shares of the company rose 1.4%.

The average copper price rose 41.5% on an annual basis in the second quarter. This was due to supply concerns, signs that China, the world's largest consumer, is still showing a resilient demand, and geopolitical tensions across the Middle East.

The average quarterly realized price of copper was $6.17 a pound. This compares to $4.54 a pound a year ago.

Freeport-McMoRan, based in Phoenix, Arizona, had suspended operations after around 800,000 metric tonnes of wet materials flooded the site.

PT Freeport Indonesia stated earlier this?year that recovery at Grasberg is taking longer than anticipated, but the mine should reach full capacity by 2027.

Freeport operates the complex that is majority owned by an Indonesian company. It is currently operating at 50% capacity.

Freeport's production of copper fell by 18.2% in the second quarter to 786 millions pounds, and gold production dropped 39.4% to 192,000ounces.

The second-quarter copper sales, excluding purchases and other costs, were 710 million pounds recoverable, compared to 1 billion pounds recoverable a year ago. Gold sales, however, fell 76% from the previous period.

According to data compiled and analyzed by LSEG, the world's biggest publicly traded copper company reported an adjusted profit 'of 74 cents' per share for the three-month period ended June 30, compared to analysts' average estimates of 59 cents. Reporting by Pranav mathur in Bengaluru, Editing by Sriraj kalluvila and Leroy Leo

(source: Reuters)