$FCX MISSES ON REVENUES, EARNINGS, WARNS

Another member of my FIST OF DEATH thesis missed earnings and warned. Copper is higher by 2% this morning, which is providing succor for the shares in the pre market. But these were abysmal earnings and the shares should reflect that.

Again, this is another company wholly dependent on China, via copper sales. Unless the Chinese are prepared to lever up their economy to 400% of GDP, I see nothing but sheer apathy for the shares of FCX.

Freeport-McMoRan misses by $0.06, misses on revs; Lowers 2016 expected operating cash flows, Lowers CapEx guidance; Lowers debt to $19 bln

Reports Q3 (Sep) earnings of $0.13 per share, $0.06 worse than the Capital IQ Consensus of $0.19; revenues rose 14.6% year/year to $3.88 bln vs the $3.96 bln Capital IQ Consensus.

Consolidated sales for the year 2016 are expected to approximate 4.8 billion pounds of copper (including 485 million pounds from Tenke), 1.26 million ounces of gold and 73 million pounds of molybdenum, including 1.3 billion pounds of copper, 590 thousand ounces of gold and 21 million pounds of molybdenum for fourth-quarter 2016.

Average realized prices were $2.18 per pound for copper, $1,327 per ounce for gold and $40.63 per barrel for oil for third-quarter 2016… Q2: Average realized prices were $2.18 per pound of copper, $1,292 per ounce for gold and $41.10 per barrel for oil for second-quarter 2016.

Average unit net cash costs were $1.14 per pound of copper for mining operations and $15.00 per barrel of oil equivalents (BOE) for oil and gas operations for third-quarter 2016… Q2: $1.33 per pound of copper for mining operations and $15.00 per barrel of oil equivalents (BOE) for oil and gas operations for second-quarter 2016.

Unit net cash costs for the year 2016 are expected to average $1.20 per pound of copper for mining operations… Q2: $1.06 per pound of copper for mining operations (including Tenke) and $15.50 per BOE for oil and gas operations.

Operating cash flows totaled $980 million for third-quarter 2016. Based on current sales volume and cost estimates and assuming average prices, operating cash flows for the year 2016 are expected to approximate $3.6 billion (including $0.3 billion in working capital sources and changes in other tax payments)

Q2: Totaled $874 million for second-quarter 2016. Operating cash flows for the year 2016 are expected to approximate $4.5 billion compared to prior guidance of $4.8 bln (including $0.7 billion in working capital sources and changes in other tax payments).

Capital expenditures totaled $494 million for third-quarter 2016, consisting of $333 million for mining operations (including $250 million for major projects) and $160 million for oil and gas operations. Capital expenditures are expected to approximate $2.8 billion for the year 2016, consisting of $1.6 billion for mining operations (including $1.2 billion for major projects) and $1.2 billion for oil and gas operations

.Q2: Totaled $833 million; Capital expenditures are expected to approximate $3.1 billion for the year 2016 (Prior guidance $3.3 bln), consisting of $1.7 billion for mining operations (including $1.3 billion for major projects) and $1.4 billion for oil and gas operations.

At September 30, 2016, consolidated debt totaled $19.0 billion and consolidated cash totaled $1.1 billion. At September 30, 2016, FCX had no borrowings and $3.5 billion available under its $3.5 billion revolving credit facility. FCX expects to receive $5.2 billion in gross proceeds during fourth-quarter 2016 in connection with previously announced asset sale transactions

Q2: At June 30, 2016, consolidated debt totaled $19.3 billion (Compared to $20.3 bln at the end of Q1) and consolidated cash totaled $352 million (Compared to $331 mln at the end of Q1).