Freeport McMoRan revenue rises, helped by entry into oil and gas

|By:, SA News Editor

Freeport McMoRan (NYSE:FCX) posted lower than expected Q2 earnings but revenues rose 28% and beat expectations, lifted in part by its entry into the oil and gas business.

Q2 copper sales rose 1.8% Y/Y, and gold sales fell 8%, while FCX sold 16M boe, up from 5M last year which only included one month of operations.

Average realized prices for copper and gold fell from a year earlier.

Cash production costs for oil and gas operations of $19.57/boe were higher than the $16.58/boe a year ago mostly because of higher operating costs in California.

Says it expects to sign a deal with the Indonesian government “imminently” to resume exports of partly processed ore from the country, where it operates its Grasberg mine.

FCX -0.3% premarket.