The Indonesian copper export permit of Freeport-McMoRan Inc (NYSE:FCX) has already expired on Monday and it is still waiting whether the Indonesian government will grant a permit extension or not.
Copper Export Permit Extension Woes
Nonetheless, Freeport-McMoRan remains encouraged that it will soon receive an extension grant. Riza Pratama, Freeport-McMoRan spokesperson, noted that the company is optimistic about receiving its copper export permit.
Any delays in the approval of the copper export permit extension can possibly cause shipment dilemmas since approximately 220,000 tonnes of copper ore are produced daily from the Grasberg copper mine in Indonesia.
Q2 Financial Highlights
Freeport-McMoRan issued its earnings report for the second quarter late last month. For the period, the company had a consolidated sales of 1.10 billion lbs. of copper, 19 million lbs. of molybdenum, 12.40 million barrels of oil equivalents (MMBOE), and 156,000 oz. of gold. These figures do not include Tenke volumes.
The average realized prices per one lb. of copper, one oz. of gold, and one barrel of oil were $2.18, $1,292, and $41.10, respectively, during the second quarter.
Freeport-McMoran reported a total of $833 million in capital expenditures for the period. This includes mining operation expenditures of $441 million and oil and gas operation expenditures of $392 million. The company also gave a capital expenditures guidance of about $3.10 billion for the fiscal year (FY) 2016. This expectation includes a total of $1.70 billion of expenditures on mining operations and $1.40 billion of expenditures on oil and gas operations.
Freeport-McMoRan ended the second quarter with a total of $19.30 billion in consolidated debt and $352 million in consolidated cash.
Richard Adkerson, Freeport-McMoRan CEO and President, reiterated that the latest quarterly results highlight the company’s progress in further strengthening its balance sheets. He explained that Freeport-McMoRan is currently focusing on its operational prospects geared toward free cash flow generation for 2016 and 2017. Adkerson concluded that the company is constantly working on its long-term goals to provide valuable services not just for its consumers around the world but also for the interests of all its investors globally.