Miner Freeport to review all costs, output cuts; shares jump
Reuters
Published Jul 28, 2015 11:42AM ET
Miner Freeport to review all costs, output cuts; shares jump
(Reuters) - Freeport-McMoRan Inc (N:FCX) said on Tuesday it is reviewing its mining and oil and gas businesses for significant additional cuts in capital spending and operating costs because of weak prices for copper, molybdenum and gold.
Freeport, the biggest U.S.-listed copper miner, said these plans could result in adjustments to mine plans and future copper and molybdenum production volumes.
It aims to complete this review "promptly" and report back on its plans in the third quarter.
Shares in Arizona-based Freeport, which were higher before the announcement, leapt and were last up 10.2 percent at $12.54 in New York.
Freeport said it has a broad set of natural resource assets that provide "many alternatives for future actions to enhance its financial flexibility". It did not mention asset sales in the statement.
Freeport last Thursday reported an unexpectedly strong adjusted profit as sales of the metals and oil it produces rose, but its hefty debt load swelled to $20.9 billion and it also posted a big net loss.
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Written By: Reuters
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