Freeport Indonesia's copper and gold sales up in Q1, expects higher in Q2
Thursday, April 19 2001 - 04:30 AM WIB
Copper and gold mining company PT Freeport Indonesia (FI), which is the subsidiary of American mining giant Freeport-McMoRan Copper and Gold Inc, recorded sales of 333.4 million pounds of copper and 644,700 ounces of gold during the first quarter of the year, up from 305.9 million pounds of copper and 444,200 ounces of gold during the first quarter of 2000.
Freeport McMoRan, which is listed in New York, said in a statement made available to Petromindo.Com that sales volume were nine percent higher for copper and 45 percent higher for gold.
FI's aggregate copper production during first quarter 2001 was 434.9 million pounds, which is its fourth highest quarterly production for copper. Aggregate gold production was 946,000 ounces, which is its second highest quarterly gold production.
"The strong operating performance reflects improved ore grades which FI began to mine in late 2000," the company said.
It said first quarter 2001 production exceeded sales primarily because of weather-related shipping delays. These delays are being shipped during the second quarter of the year.
FI's copper and gold sales area thus expected to further increase in the second quarter of the year, the company said.
"Second-quarter sales of 385 million pounds of copper and 700,000 ounces of gold are expected to exceed first-quarter levels," it said.
The company further said FI's average net production costs, including gold and silver credits, were 3 US cents per pound of copper for the first quarter of 200, which is FI's second lowest quarterly cost performance on record, compared with 24 cents per pound in the first quarter of 2000.
FI, which operates a huge copper and gold mine in the Grasberg area of Irian Jaya, is 81.28 percent owned by Freeport McMoRan, 9.36 percent owned by the Indonesian government, and 9.36 percent by PT Indocopper Investama Industries. Indocopper is 49 percent owned by Freeport McMoRan and 50.48 percent by PT Nusamba Mineral Industries, while the remaining 0.52 percent are being traded at Surabaya.
Thanks to the increase in FI's sales volume, Freeport McMoRan reported an increase in net income to 26 cents per share for the first quarter of the year, from 6 cents per share in the year ago period despite low copper and gold prices. (Bodega)