Freeport Projects Higher Copper Sales
April 25, 2007 7:58 AM ET
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Associated PressAll Associated Press News
PHOENIX (AP) - Freeport McMoRan Copper & Gold Inc. on Wednesday forecast sharply higher sales of copper in the second quarter -- the company's first full quarter including the operations of former rival Phelps Dodge.
Freeport closed its $26.3 billion acquisition rival copper miner Phelps Dodge on March 19, creating the world's largest publicly traded copper company.
The combined company is expected to sell off 970 million pounds of copper, compared with first-quarter sales of 520.3 million pounds. Gold sales are expected to decline from first-quarter levels, however, falling to 600,000 ounces from 955,900.
Freeport sold 1.7 million pounds of molybdenum in the prior quarter from its newly acquired Phelps mines and expects sales volume to grow to 17 million pounds in the second quarter as Phelps' operations are fully integrated.
Workers at Freeport's Grasberg copper mine in Indonesia went on strike for four days in April. The protests ended April 21 after the company agreed to double basic wages. However, the company said that effects on production "were not significant."
For the full year, Freeport expects to sell about 3.9 billion pounds of copper, 1.9 million ounces of gold and 70 million pounds of molybdenum.
Meeting those sales estimates depends on Freeport achieving its targeted mining rates and expansion plans, favorable weather and other factors, the company said.
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