Gold: Do they Pan Out?

Freeport-McMoRan Copper & Gold

The Company

FCX is considered a blue chip within the mining industry. Freeport-McMoRan Copper & Gold is one of the world's largest copper and gold companies in terms of reserves and production, and believes that it has one of the lowest cost copper producing operations in the world, taking into account customary credits for related gold and silver production. FCX's principal operating subsidiary is P.T. Freeport Indonesia Company. PT-FI engages in the exploration for and development, mining and processing of ore containing copper, gold and silver in Irian Jaya, Indonesia pursuant to an agreement (COW) with the government of the Republic of Indonesia and in the worldwide marketing of concentrates containing those metals. FCX owns directly an 81.28% interest in PT-FI.

Latest Financials

Freeport-McMoRan Copper & Gold Inc. (FCX) reported record fourth-quarter 1996 net income applicable to common stock of $77,059,000, $0.39 per share, compared with fourth-quarter 1995 net income of $54,314,000, $0.27 per share. For the twelve months ended December 31, 1996, FCX reported net income applicable to common stock of $174,680,000, $0.89 per share, compared with net income of $199,465,000, $0.98 per share, a year ago. The following factors contributed to the difference between the quarterly periods: PT-FI achieved excellent operating results during the fourth quarter of 1996 with mill throughput averaging 128,300 MTPD. Higher ore grades and improved gold recoveries resulted in record quarterly production of copper and gold. PT-FI also reported record quarterly sales volumes of 317.5 million pounds of copper and 543,800 ounces of gold, 2 percent and 15 percent higher, respectively, than the 1995 quarter, which contributed to record quarterly earnings for FCX despite the relatively low commodity price environment.

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