Freeport-McMoRan 2Q-2011 profit more than doubles

Dear PGM Capital, blog reader, today, Thursday, July 21st 2011, Freeport-McMoran Copper & Gold Inc (NYSE: FCX) reported its Q2-2011 results.

Highlights Q2-2011 Results:

  • Net income for Q2-2011, was USD 1.4 billion or US$ 1.43  per share, compared with
    USD 649 million or US$ 0.70 per share in Q2-2010
  • Revenue increased 50.5 percent to $5.81 billion from $3.86 billion a year ago.
  • Freeport said copper prices increased 38 percent in the second quarter to $4.22 per pound while gold prices increased 22 percent to $1,509 per ounce. Molybdenum prices slipped by 2 cents to $18.16 per pound. Freeport capitalized on the price increases by cranking up production 4 percent for copper and 11 percent for gold.
We believe that Freeport McMoran as leading producer of Gold & Copper, which operates about 90% of Indonesian Grasberg mine, the largest gold mine and the third largest copper mine in the world., will have all the potential to profit maximum from the increasing demand for Copper & Gold.
Here below you’ll find a 2 year chart of Freeport McMoran Copper & Gold

Disclosure:
We own Freeport McMoRan Copper & Gold in our personal  portfolio since June 2009.

Last but not least, please consider before investing your risk tolerance and investment horizon and keep in mind that the price of commodities & precious metals, like copper & gold, as well as the stock of their producers can be very volatile and that sharp correction might happen in the short time.

Yours sincerely

Eric Panneflek

Leave a Reply

Your email address will not be published. Required fields are marked *