Freeport sales on copper, gold down in Q2
Wednesday, July 24 2013 - 02:32 AM WIB
US mining giant Freeport-McMoRan Copper & Gold Inc. (FCX) announced Tuesday that its Indonesia copper and gold mining unit PT Freeport Indonesia that its second-quarter 2013 copper sales was 158 million pounds with gold sales of 151 thousand ounces, lower than the same period last year?s of 183 million pounds for copper sale and 247 thousand ounces of gold sales.
The decrease of sales, according to the company?s quarterly financial statement is primarily due to the suspension of activities following the accident on May 14, 2013 when the rock structure above an underground ceiling for a training facility collapsed leaving 28 fatalities and 10 injuries.
The temporary suspension of mining and processing activities at PT Freeport Indonesia resulted in an estimated production impact of approximately 125 million pounds of copper and 125 thousand ounces of gold for second-quarter 2013.
The company said that sales from Freeport Indonesia are expected to approximate 0.9 billion pounds of copper and 1.0 million ounces of gold for the year 2013, compared with 0.7 billion pounds of copper and 0.9 million ounces of gold for the year 2012.
Following is summary consolidated operating data for the Indonesia mining operations for the second quarters of 2013 and 2012:
| Indonesian Mining Operations | Three Months Ended June 30 |
|
| 2013 | 2012 | |
| Copper (million of recoverable pounds): | ||
| Production | 139 | 173 |
| Sales | 158 | 183 |
| Average realized price per pound | $ 3.08 | $ 3.49 |
| Gold (thousands of recoverable ounces): | ||
| Production | 131 | 230 |
| Sales | 151 | 247 |
| Average realized price per ounce | $ 1,321 | $ 1,587 |
| Unit net cash (credits) costs per pound of copper: | ||
| Site production and delivery, excluding adjustments | $ 3.55 | $ 3.23 |
| Gold and silver credits | (1.20 ) | (2.20 ) |
| Treatment charges | 0.23 | 0.21 |
| Royalties | 0.13 | 0.13 |
| Unit net cash (credits) costs (*) | $ 2.71 | $ 1.37 |
| * For a reconciliation of unit net cash costs (credits) per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, "Product Revenues and Production Costs," beginning on page VI, which is available on FCX's website, "www.fcx.com." | ||
Editing by Adianto P. Simamora