Barrick’s quarterly gold and copper output edges higher
Barrick Gold's second-quarter gold output edged up by almost 0.9% from the previous three months.
Buffeted by falling copper prices and labour unrest at Grasberg, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) reported net income of $1.1 billion, $1.10 per share, compared with $1.2 billion, $1.24 per share duing the same quarter a year ago.
Consolidated copper, gold and molybdenum production in the third quarter were all down compared to a year ago. Freeport sold 947 million pounds of copper, 409 thousand ounces of gold and 19 million pounds of molybdenum, compared with 1.1 billion pounds of copper, 497 thousand ounces of gold and 17 million pounds of molybdenum in the third-quarter of 2010.
Regarding Grasberg Mine operations, Freeport said the impact of the eight-day strike in July 2011 and the ongoing strike, which started in September 2011, totaled about 70 million pounds of copper and 100 thousand ounces of gold. The strike has recently turned ugly with reports of sabotage and injuries.
The company says it is keeping some production going with a reduced workforce and selling concentrate from inventory. FCX says that it expects sales from Indonesia to approximate 1.0 billion pounds of copper and 1.45 million ounces of gold for the year 2011, compared with 1.2 billion pounds of copper and 1.8 million ounces of gold for the year 2010.
“Capital expenditures, including capitalized interest, totaled $717 million for third-quarter 2011 and $1.7 billion for the first nine months of 2011,” said the company in a news release.
“FCX’s capital expenditures are currently estimated to approximate $2.6 billion for the year 2011, including $1.4 billion for major projects and $1.2 billion for sustaining capital. Major projects for 2011 primarily include underground development activities at Grasberg, construction activities at the Climax molybdenum mine and completion of the initial phase of the sulfide ore project at El Abra.”
