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Freeport income drops in qtr. on Grasberg woes

Keywords: Tags  Freeport-McMoRan Copper & Gold, Freeport earnings, copper, copper productionm, copper prices, gold output, quarterly earnings, Richard Adkerson Everdeen Mason


NEW YORK — Freeport-McMoRan Copper & Gold Inc. reported lower net income and sales in the second quarter, primarily due to the May tunnel collapse at its Grasberg Mine in Indonesia.

Freeport’s net income of $482 million for the quarter ended June 30 fell 32.1 percent from $710 million a year earlier on sales that dropped 4.2 percent to $4.29 billion from $4.48 million.

The Phoenix-based company’s second-quarter copper and gold production volumes missed initial estimates by 125 million pounds and 120 million ounces, respectively, Freeport vice chairman, president and chief executive officer Richard Adkerson said in a conference call.

"That is really what drove the shortfall of our performance," he said, referring to the May 14 tunnel collapse in Indonesia that killed 28 people and injured 10 ( amm.com, May 15).

Freeport was also impacted by a "very volatile season" in copper, Adkerson said.

Comex copper prices were trading at a little more than $3.05 per pound June 28, down 9.5 percent from around $3.37 per pound April 1.

Despite this, "we are very confident about the long-term (fundamentals) of this marketplace," Adkerson said.


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