According to Reuters,
Freeport McMoRan Copper and Gold Inc.
) PT Freeport Indonesia (PT-FI) Grasberg operations in Papua,
Indonesia, is currently operating at full capacity.
Freeport had announced a force majeure on shipments from PT-FI
Grasberg mine after the collapse of a tunnel at the mine on May
14 that took 28 lives. While the accident occurred outside the
area of mining operations, Freeport temporarily suspended mining
and processing activities at the Grasberg complex as a part of
the rescue and recovery operation.
However, last month, Freeport announced that it had resumed
open pit mining and concentrating activities at the mine and was
operating at 60% capacity after it received approval from
Indonesia's Department of Energy and Mineral Resources
The closure of operations at the world's second largest copper
mine affected production. The Indonesian operation lost about 115
million pounds of copper and 115,000 ounces of gold after the
closure of the mine. It is apprehended that on a daily basis the
mine lost about 3 million pounds of copper and 3,000 ounces of
gold. The impact of the ongoing suspension of underground
operations approximates 1 million pounds of copper and 1,000
ounces of gold per day.
Freeport released its first-quarter 2013 results in Apr 2013.
The company's Indonesian operation recorded copper sales of 198
million pounds in the quarter, higher than 134 million pounds a
year ago. Gold sales declined roughly 28% year over year to
191,000 ounces due to lower ore grades from mine sequencing.
Freeport's adjusted earnings (excluding one-time charges) of
73 cents per share for the first quarter beat the Zacks Consensus
Estimate by a penny but missed the year-ago earnings of 96
Including debt extinguishment costs for the termination of the
acquisition bridge loan facilities and acquisition costs, net
income for the quarter was $648 million, or 68 cents per share.
This represents roughly 15% fall from the prior-year quarter's
net income of around $764 million or 80 cents per share. The
results were affected by higher costs and lower copper prices.
Revenues fell roughly 0.5% year over year to $4.58 billion in the
first quarter, missing the Zacks Consensus Estimate of $4.81
Freeport currently holds a short-term Zacks Rank #3
Brigus Gold Corp
Claude Resources, Inc.
Lake Shore Gold Corp.
) are currently performing well in the mining industry. While
Brigus Gold holds a Zacks Rank #1 (Strong Buy), Claude Resources
and Lake Shore Gold retain a Zacks Rank #2 (Buy).
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