Freeport McMoRan posts mixed Q1 results but sees "significant cash flows"

|By:, SA News Editor

Freeport McMoRan (NYSE:FCX) +2.2% premarket despite reporting in-line Q1 earnings and slightly weaker than expected revenues, and lowering its FY 2017 operating cash flow guidance.

FCX says Q1 sales volumes were hurt by regulatory restrictions on Indonesian concentrate exports, resulting in the deferral of ~190M lbs. of copper and 280K oz. of gold; concentrate exports resumed on April 21.

FCX foresees FY 2017 consolidated sales of ~3.9B lbs. of copper, 1.9M oz. of gold and 93M lbs. of molybdenum; for Q1, FCX expects 1B lbs. of copper, 440K oz. of gold and 24 M lbs. of molybdenum.

The company sees full-year operating cash flows of ~$4B, down from $4.3B, but says "the resumption of concentrate exports in Indonesia and expected continued strong performance from our Americas operations will enable us to generate significant cash flows in the balance of the year to achieve our balance sheet objectives."