An Investor’s Guide to Freeport-McMoRan’s 2015 Outlook
Freeport’s 2015 outlook includes copper sales up 7.5% and gold up 4% YoY. Molybdenum sales should remain flat this year, while energy sales should drop 8%.
On April 23, Freeport said it might look at selling a minority stake in its energy business and come out with an IPO of its oil and gas subsidiary later in the year.
Crude oil prices have declined substantially since Freeport acquired its oil and gas production assets. Freeport produced 12.4 MMBOE in 1Q15, down 22% YoY.
In 1Q15, Freeport’s major segments had higher volumes. Copper volumes increased 10% YoY, and gold volumes increased more than 40%.
Freeport-McMoRan (FCX) reported 1Q15 earnings on April 23. Results came in largely according to market expectations with a loss of $0.06 per share.
Vale iron ore production hit record levels for a first quarter, coming in at 74.5 million tons. That’s 8.5 million tons less than in the previous quarter but 3.5 million tons more than in the same quarter in 2014.
Vale (VALE) copper production in 1Q15 totaled 104,600 tons. That’s up 1.5% over 4Q14 and 21.7% over 1Q14.
Vale (VALE) will declare its first-quarter results on April 30, 2015, before markets open. Management is expected to provide an update on the progress of the Nacala corridor port, among other things.
Vale (VALE) nickel production in 1Q15 delivered 69,200 tons. As far as nickel production is concerned, this is the company’s best first-quarter performance.
Vale production in Africa, Brazil, and Canada were affected by severe storms and bad weather in 1Q15. Only copper production was almost in line with analyst forecasts.
BHP Billiton has increased its guidance for fiscal 2015 iron ore production to 230 million tons. This guidance is 2% higher than it was previously.
BHP Billiton (BHP) petroleum production for the nine months ended March 2015 increased by 6% to a record 192.5 million barrels of oil equivalent.
Copper production at the Antamina mine decreased by 32% for the nine-month period, down to 80,000 tons. Lower grades offset the record mill throughput.
Overall, BHP Billiton (BHP) reported better-than-expected 3Q15 production results on April 22. It recorded a 9% production increase during the nine months ended March 2015.
For 2015, Rio Tinto has downgraded its guidance for diamonds and titanium dioxide slag. Guidance for boric oxide equivalent and uranium remain unchanged.
Rio Tinto’s (RIO) aluminum production in 1Q15 was in line with 1Q14. This is despite a partial shutdown at Kitimat.
Rio Tinto’s copper production was 12% higher than 4Q14 due to higher throughput at Kennecott and Escondida. Lower grades at Kennecott were the primary driver of a 9% decline from 1Q14.
Rio Tinto’s (RIO) 1Q15 Pilbara iron ore production was 71.1 million tons (Rio’s share, 57.3 million tons). It was 12% higher than 1Q14 but 6% lower than the fourth quarter of last year.
Rio Tinto (RIO) reported mixed 1Q15 production results on April 21, with slightly weaker production in iron ore and aluminum offset by strong coal and copper production.
On a year-over-year basis, Chilean refined copper production fell by more than 1%. Incessant rains causing flooding are behind the decline in February’s copper production.
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