Freeport-McMoRan’s Q4 2016 Earnings Preview: Improved Commodity Prices And Production Levels To Boost Earnings
We expect Freeport-McMoRan Inc. to report a significant year-over-year improvement in its Q4 2016 results, with higher production levels and improved pricing expected to boost both revenue and earnings. Higher production from the expanded Cerro Verde mine in Peru and the mining of higher grade ores at the Batu Hijau mine in Indonesia are expected to boost Freeport’s Q4 copper shipments, offsetting the loss in production from the sale of the company’s African copper mining operations in November of last year. In addition, the mining of higher grade ores at Batu Hijau is also expected to boost Freeport’s gold production.
The company’s results will benefit from a better pricing environment for copper, gold, and crude oil in Q4 2016, as compared to the corresponding period of 2015. An improved demand outlook for copper in the U.S. post November’s presidential election as a result of President Trump’s plans for a $1 trillion overhaul of U.S. infrastructure has boosted prices of the metal. [1] A production cut by OPEC nations helped boost oil prices over the course of Q4, whereas gold prices benefited from higher investment demand in the first nine months of 2016. [2] The following tables summarize our expectations from Freeport’s Q4 results.
- 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?
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 ?
Notes:
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Notes:
- Forget gold price. The real Trump rally is in copper, Mining.com [↩]
- OPEC Confounds Skeptics, Agrees to First Oil Cuts in 8 Years, Bloomberg [↩]