Freeport-McMoRan’s Q3 2016 Earnings Preview: Higher Copper Production And Cost Reduction Initiatives To Boost Results
We expect Freeport-McMoRan to report an improvement in its Q3 2016 results, driven by its cost reduction initiatives and higher copper production volumes, despite subdued prevailing pricing conditions for both copper and crude oil. Higher production volumes from Freeport’s expanded Cerro Verde mine in Peru are expected to boost the company’s top line. Moreover, economies of scale and the company’s cost reduction initiatives will likely help lower unit costs and prop up earnings, just like in the previous quarter (as indicated in the table below for Q2 2016). Lower costs are expected to offset the impact of weak copper and oil prices on the company’s results in Q3. Weak demand conditions for copper (primarily in China — the world’s largest consumer of copper) as a result of subdued global economic conditions, have negatively impacted prices of the metal, whereas a global supply glut has adversely impacted oil prices. The following table summarizes our expectations.
Have more questions about Freeport-McMoRan? See the links below.
- What Is Freeport-McMoRan’s Fundamental Value Based On 2015 Results?
- What Is Freeport-McMoRan’s Revenue And EBITDA Breakdown?
- How Has Freeport-McMoRan’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did Freeport-McMoRan’s Revenue & EBITDA Decline Over The Last 5 Years?
- By What Percentage Can Freeport-McMoRan’s Revenue & EBITDA Change Over The Next 3 Years?
- How Will Freeport-McMoRan’s Revenue Composition Change by 2020?
- Why Have Copper Prices Declined Over The Past Year?
- Why Is China Important For The Global Copper Industry ?
- Will Freeport Stock Recover To Pre-Inflation Shock Highs Of $52 Per Share?
- What To Expect From Freeport’s Q2 Results
- How Is Freeport Stock Faring Amid Volatile Copper Prices?
- Copper Prices Have Recovered A Bit. Is Freeport Stock Worth A Look?
- Lower Copper Prices Will Weigh On Freeport’s Q3 Results
- What’s Happening With Freeport-McMoRan Stock?
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