Freeport-McMoRan Inc. (FCX – Free Report) reported net income (attributable to common stock) of 16 cents per share for third-quarter 2016, as against the year-ago loss of $3.58 per share.

Net income for the reported quarter includes net gains of $39 million, or 3 cents per share, mainly reflecting net tax credits. Barring that impact, adjusted earnings was 13 cents a share in the third quarter, missing the Zacks Consensus Estimate of 19 cents.

Revenues jumped around 14.6% year over year to $3,877 million in the reported quarter and exceeded the Zacks Consensus Estimate of $3,860 million.

Consolidated copper sales from mines (including volumes from Tenke Fungurume which is being reported as a discontinued operation) increased to 1.23 billion pounds of copper in the third quarter from 1 billion pounds in the year-ago quarter due to higher volumes from Cerro Verde. Gold sales went up to 317,000 ounces in the reported quarter from 294,000 ounces a year ago. Sales of molybdenum decreased to 16 million pounds in the reported quarter from 23 million pounds a year ago, mainly due to weak demand.

Operational Update

Consolidated average unit net cash costs (net of by-product credits including Tenke) declined to $1.14 per pound of copper from $1.52 per pound in the year-ago quarter. This is mainly attributable to higher copper sales volumes and the impact of ongoing cost-cutting initiatives.

Average realized price per ounce for gold rose to $1,327 in the quarter from $1,117 a year ago, while average realized price per pound for copper declined to $2.18 from $2.38 in the prior-year quarter.

Mining Update

North America Copper Mines: Copper sales decreased 5.2% year over year to 458 million pounds mainly due to the sale of a portion of the company’s interest in Morenci. Production fell 8.8% year over year to 455 million pounds in the reported quarter.

Freeport expects copper sales from North America to be 1.8 billion pounds in 2016, versus 2 billion pounds in 2015.

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