Freeport sees solid end to 2024 on higher gold and copper prices

The mining sector earnings season is off to a solid start as Freeport (NYSE: FCX) reported better-than-expected fourth-quarter 2024 results, driven by higher gold and copper prices.

Freeport is one of the world’s largest copper producers, but it also has significant gold and molybdenum production. The company reported fourth-quarter 2024 net income attributable to common stock of $274 million, or $0.19 per share, and adjusted net income attributable to common stock of $450 million, or $0.31 per share, after excluding net charges totaling $176 million, or $0.12 per share. These charges were primarily associated with adjustments to asset retirement obligations, charges related to legacy oil and gas properties, and metals inventory adjustments.

According to consensus estimates, analysts had expected adjusted net income of around $0.20 per share.

Although the company reported slightly lower production compared to 2023, prices for gold and copper were significantly higher. The company stated that annual copper production totaled 4.214 million pounds last year, roughly unchanged from 2023. At the same time, Freeport produced 1.88 million ounces of gold, down from 1.993 million ounces produced in 2023.

However, the company realized an average copper price of $4.21 per pound, up from $3.85 in 2023. Freeport also achieved an average realized gold price of $2,418 per ounce, a sharp increase from $1,972 per ounce in 2023.

Additionally, the company said it was able to keep costs below expectations. Freeport reported operating cash flow of $7.16 billion for the year, up significantly from $5.279 billion in 2023.

Looking ahead, Freeport provided production guidance for 2025, estimating annual sales of approximately 4.1 billion pounds of copper, 1.7 million ounces of gold, and 77 million pounds of molybdenum. This reflects a slight reduction in copper and gold output compared to 2024 levels, while molybdenum production is expected to remain stable.

“We enter 2025 with a clear focus on continued strong execution of our operating plans, enhancing productivity, managing costs and capital, and advancing opportunities for long-term profitable growth and value creation,” said Richard Adkerson, Chairman of the Board, and Kathleen Quirk, President and Chief Executive Officer, in a joint statement in the earnings report. “Our global team delivered solid results in 2024, and we are strongly positioned for the future with high-quality, large-scale copper assets, attractive organic growth options, a successful track record of our team, and a strong balance sheet. Copper's role in the global economy is increasingly important, and Freeport is well positioned for the future as a global industry leader.”