Take physic, pomp

Freeport (FCX) Reports its quarter

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:

  • 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.

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