Freeport McMoRan Loses $1.85 Billion in Q2

Freeport McMoRan (NYSE:FCX) posted its second quarter and six month results for 2015, reporting a net loss of $1.85 billion attributable to common stock. Net income for the quarter came in at $143 million.
As quoted in the press release, other highlights of results included:

• Consolidated sales totaled 964 million pounds of copper, 352 thousand ounces of gold, 23 million pounds of molybdenum and 13.1 million barrels of oil equivalents (MMBOE) for second-quarter 2015, compared with 968 million pounds of copper, 159 thousand ounces of gold, 25 million pounds of molybdenum and 16.0 MMBOE for second-quarter 2014.
• Consolidated sales for the year 2015 are expected to approximate 4.2 billion pounds of copper, 1.3 million ounces of gold, 93 million pounds of molybdenum and 52.3 MMBOE, including 1.0 billion pounds of copper, 315 thousand ounces of gold, 24 million pounds of molybdenum and 13.6 MMBOE for third-quarter 2015.
• Average realized prices were $2.71 per pound for copper, $1,174 per ounce for gold and $67.61 per barrel for oil (including $11.79 per barrel for cash gains on derivative contracts) for second-quarter 2015.
• Consolidated unit net cash costs for second-quarter 2015 averaged $1.50 per pound of copper for mining operations and $19.04 per barrel of oil equivalents (BOE) for oil and gas operations.
• Operating cash flows totaled $1.1 billion(net of $104 million in working capital uses and changes in other tax payments) for second-quarter 2015. Based on current sales volume and cost estimates and assuming average prices of $2.50 per pound for copper, $1,150 per ounce for gold, $6 per pound for molybdenum and $56 per barrel for Brent crude oil for the second half of 2015, operating cash flows for the year 2015 are expected to approximate $3.6 billion.
• Capital expenditures totaled $1.7 billion for second-quarter 2015, including $0.6 billion for major projects at mining operations and $0.8 billion for oil and gas operations. Capital expenditures are expected to approximate $6.3 billion for the year 2015, including $2.5 billion for major projects at mining operations and $2.8 billion for oil and gas operations.
• FCX has made substantial progress toward the completion of its major mining development projects, which are expected to result in increased near-term production, lower unit costs, declining capital expenditures and growth in free cash flow over the next several quarters. In addition, positive oil and gas drilling and development activities are expected to result in a growing oil production profile. FCX remains focused on maintaining a strong balance sheet and on continuing to manage costs, capital spending plans and other actions as required to maintain financial strength.
• On June 23, 2015, Freeport-McMoRan Oil & Gas Inc. filed a registration statement related to its potential initial public offering (IPO) of Class A common stock representing a minority interest in the entity.
• At June 30, 2015, consolidated debt totaled $20.9 billionand consolidated cash totaled $466 million.

Click here for the full press release.