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Freeport-McMoRan’s 4Q16 Revenue: Everything You Need to Know

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Jan. 26 2017, Published 1:30 p.m. ET

Freeport-McMoRan’s 4Q16 revenue

Freeport-McMoRan (FCX) posted revenue of $4.4 billion in 4Q16. In contrast, Freeport posted revenue of nearly $3.6 billion in 4Q15 and $3.9 billion in 3Q16.

Freeport’s 4Q16 revenue rose on a yearly basis as well as on a quarterly basis. Notably, Freeport’s revenue fell on a YoY (year-over-year) basis for eight consecutive quarters before reversing its course in 3Q16.

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Average selling prices

The revenues of commodity producers (XLB) such as BHP Billiton (BHP), Southern Copper (SCCO), and Teck Resources (TCK) are intertwined with commodity prices and shipments.

In 4Q16, Freeport reported average realized prices of $2.47 per pound for copper, $1,174 per ounce for gold, and $8.27 per pound for molybdenum. To put this in context, Freeport reported average realized prices of $2.18 per pound for copper, $1,327 per ounce for gold, and $9.14 per pound for molybdenum in 3Q16.

Shipments

For 4Q16, Freeport gave a guidance of 1.3 billion pounds of copper, 590,000 ounces of gold, and 21 million pounds of molybdenum. It sold 1.2 billion pounds of copper, 405,000 ounces of gold, and 22 million pounds of molybdenum in 4Q16.

The company’s lower-than-expected gold and copper volumes can be attributed to its Indonesian operations, which faced labor issues in the quarter, negatively impacting its production profile. Freeport’s Indonesian operations have been facing several challenges. Read What Issues Does Freeport Face in Indonesia? to find out more.

Indonesian issues dominated Freeport’s 4Q16 earnings conference call. We’ll look at some key highlights of the call later in this series. Before that, let’s see what factors impacted Freeport’s 4Q16 profitability.

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