Freeport (FCX) has just reported its 1q09 and you too can pore over the press release by clicking this link.
I'll be checking out the real-deal filings later, but things that stand out so far include:
I'll be checking out the real-deal filings later, but things that stand out so far include:
- FCX is holding back gold sales, with a touch under 10% left unsold. This is a hedge-that-isn't-a-hedge tactic from companies expecting better spot prices.
- On the other hand, 30% of produced moly remained unsold and it's unlikely they're holding back for better prices. This again points to the Chinese iron ore imports being stockpiled and not used. I wouldn't like to be long Mo, even at its current $8/lb.
- Cash costs (with byproduct credits) of $0.66/lb Cu, with the company forecasting $0.70/lb for the rest of the year. A good number and lear evidence that FCX is in good position to ride out the slowdown.
- On the downside, cash flows were negative for the quarter despite to the Feb '09 stock sale that raised $740. Debt position stands at $7.2Bn.
The market has greeted these numbers with a shrug of "yep, expecting this more or less" and the stock is trading down just 0.3% at the bell. The CC will illuminate further.