FCX reports higher output in Q2, projects lower in H2

US-based copper and gold miner Freeport-McMoRan Copper & Gold Inc (FCX) reported Wednesday that its Indonesian unit PT Freeport (PT-FI) sold 334 million pounds of copper and 880 thousand ounces of gold, higher compared with the same quarter last year, primarily because of higher ore grades.

Consolidated Indonesian Mining Operations	Second Quarter		Six Months
Consolidated Indonesian Mining Operations	2007	2006	2007	2006
Copper (millions of recoverable pounds):
- Production	298	237	766	458
- Sales	334	220	751	445
- Average realized price per pound	$3.43	$3.33	$3.40	$3.27
Gold (thousands of recoverable ounces):
- Production	795	307	1,869	769
- Sales	880	278	1,827	750
- Average realized price per ounce	$657.91	$613.77	$659.43	$492.73 a)

a. Amount was $585.34 before a loss on redemption of FCX’s Gold-Denominated Preferred Stock, Series II.

Statistical Data from Mining Operations, 100% (Mill Operations)	Three Months Ended June 30,		Six Months Ended June 30,
	2007	2006	2007	2006
Ore milled (metric tons per day)	215,000	223,700	221,700	220,200
Average ore grade
Copper (%)	0.82	0.72	1.02	0.72
Gold (grams per metric ton)	1.63	0.67	1.82	0.79
Recovery rates (%)
Copper	91.8	84.1	91.3	83.3
Gold	88.6	76.4	88.1	78.8
Copper (millions of recoverable pounds)
Production	310	259	790	505
Sales	347	240	775	491
Gold (thousand of recoverable ounces)
Production	889	326	2,035	796
Sales	978	294	1,988	780

FCX said however PT-FI’s second-half 2007 sales volumes are expected to be significantly lower than the first-half volumes due to a relatively lowgrade section of the Grasberg open pit to be mined in the period.

FCX said PT-FI would only produce approximately 365 million pounds of copper and 170 thousand ounces of gold in the second half of 2007.

“At the Grasberg mine, the sequencing in mining areas with varying ore grades causes fluctuations in the timing of ore production, resulting in varying quarterly and annual sales of copper and gold,” FCX said in its quarterly report.

FCX said its consolidated share of annual sales from in 2007 is projected to approximate 1.1 billion pounds of copper and 2.0 million ounces of gold.

FCX, through its 90.6 percent owned subsidiary PT-FI, operates the world’s largest copper and gold mine in terms of reserves at Grasberg operations in Papua. (Robert)

FCX reports higher output in Q2, projects lower in H2

Tags: