SMM7, February 2: recently Freeport Company (Freeport-McMoRan Inc.) It said the fall in copper prices and production cuts in Indonesia would cut sales and profits in the second quarter.
Freeport said in a statement on Monday that it expected a profit of about $430 million before tax, interest, depreciation and amortization for the quarter.
The company said sales of copper would average about $2.73 a pound, below analysts' expectations of $2.95.
At the same time, Indonesia's Grasberg copper and gold project added a new mining area this quarter, resulting in a delay in the production of high-grade copper and gold and cuts in production.
Freeport's copper production fell 18 per cent to 750 million pounds in the first quarter of this year as a result of the Grasberg expansion project. "related news-Freeport copper production and profits fell sharply in the first quarter, dragged down by the Grasberg project
Net income fell sharply in the first quarter to just $31 million, compared with $692 million in the same period last year.
Indonesia's Grasberg copper and gold mine is working on a project costing more than $15 billion to shift Grasberg mining from open pit to underground.
The expansion is complex and time-consuming, and data show that copper sales at Grasberg fell to 174 million pounds from 319 million pounds in the same period last year. But this is essential for free ports to ensure stable production in the future.
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