Freeport-McMoRan reported growth for the June 2024 quarter despite shipping delays in Indonesia affecting copper and gold sales.

Freeport produced a total of 1Blb of copper, 443,000oz of gold, and 20Mlb of molybdenum in the quarter. Sales were 931Mlb for copper and 361,000oz for gold, 10% and 27% lower than the June 2023 quarter, respectively, due to the shipping delays in June. Molybdenum sales remained relatively stable at 21Mlb.

The miner's previous export licenses in Indonesia expired at the end of May, and it did not receive renewed export approval from the country's government until July. Freeport said regular shipping has resumed this month.

Revenue for the quarter totalled $6.6 billion, an increase from $5.7 billion in the same quarter last year, and net income was at $616 million, or $0.42 per share, almost double from 2023's $343 million.

The average realised prices were $4.48/lb for copper, $2,299/oz for gold, and $21.72/lb for molybdenum.

"Copper pricing was strong in the second quarter. The long-term outlook for copper is supported by copper's increasingly important role in the global economy and limited available supplies to meet growing demand. Freeport is well positioned for the future as a leading, responsible producer of copper with multiple options for future growth and an experienced and innovative team with a track record of accomplishment," the company said.

Freeport's new Indonesia smelter, the world's largest copper smelter, has entered the commissioning phase. The US$3.7 billion Manyar smelter in Gresik, East Java, is expected to produce its first copper cathode in August, operating at 50% capacity, before ramping up to full capacity by the end of the year.

"Our team reached an important milestone in Indonesia during the quarter with the start of commissioning of our major new copper smelter, and we are working to execute a safe and efficient ramp-up to full capacity by the end of the year," the company said. This strategically important investment is integral to support our long-term, high-quality operations in the Grasberg minerals district."

For 2024, Freeport expects sales to reach around 4.1Blb of copper, 1.8Moz of gold, and 82Mlb of molybdenum.

El Abra

In a call with investors, Freeport's chief executive Kathleen Quirk said that the company is considering investing around $7.5 billion to expand its El Abra copper mine in Chile. Freeport holds a 51% interest, while the rest is owned by Chile's state copper miner, Codelco.

Freeport plans to submit an environmental impact statement by the end of 2025 and is updating the project's technical studies and economic models.

"Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00/lb," the company said. "The decision to proceed and timing of the potential project will take into account overall copper market conditions and other factors."