Freeport Beats Q3 Expectations Despite 69% Drop in Gold Sales
Freeport surpassed third-quarter estimates with revenue of $7.55 billion, despite a 69% drop in gold sales to 105,000 ounces and a 21% rise in realized price to $4,273.
Freeport surpassed analysts' estimates for third-quarter results, as revenue reached $7.55 billion compared to expectations of $7.4 billion, while adjusted earnings reached $0.88 per share versus $0.82 expected.
Gold sales fell by about 69% to 105,000 ounces from 336,000 ounces in the prior-year period, coming below the company's guidance of 160,000 ounces. In contrast, the average realized price of gold rose by about 21% to $4,273 per ounce.
The company stated that approximately 60,000 ounces of sales shifted to the fourth quarter, where it expects to sell about 300,000 ounces.
For his part, Chris Mancini of Gabelli warned that rising energy and labor costs could prevent mining companies from meeting analysts' expectations.
What do these terms mean?
Adjusted Earnings Per Share: A company's profit per share after excluding non-recurring items, used by analysts to compare performance between companies.
Realized Price: The average price at which the company actually sold, which may differ from the spot market price due to sales and delivery contracts.
Company Guidance: The forecasts announced by the company regarding its future performance, which investors compare against actual results.
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