Freeport profits increase/Production restarts at Miami

By Diane Saunders
Staff Writer
Published on Friday, October 23, 2009 5:04 PM MST

Freeport-McMoRan Copper & Gold's profits are up and the mining company is poised to restart copper production at its Miami mine, according to Freeport's third-quarter report.

There are no plans to increase mining at the Safford or Morenci mines at this time, Freeport spokesman Richard Peterson said.

The report was released Oct. 21 — in a week that saw copper prices continue to rise. According to the London Metals Exchange on Oct. 23, the price of copper was $3.024 per pound.

A year ago, the price of copper was just over $2 a pound, according to Kitco Precious Metals, which has offices in Rouses Point, N.Y., and Montreal, Quebec, Canada. According to Kitco, the rise in copper prices points to recovery in the copper industry.

The Freeport third-quarter report shows that net income for the third quarter 2009 was $925 million — $2.07 per share. In comparison, Freeport's net income for the third quarter 2008 was $523 million — $1.31 per share.

Freeport announced that its board of directors reinstated an annual cash dividend on its common stock of $0.60 per share. This translates into a $0.15 dividend per quarter beginning Feb. 1, the report states.

The restart of copper production at the Miami mine will include improved efficiency of ongoing reclamation projects.

"During the approximate five-year mine life, (Freeport) expects to ramp up production to approximately 100 million pounds of copper per year by the second half of 2011," the report states. "This project, which was initially expected to require a $100 million investment, was deferred in late 2008 in response to market conditions."

According to the report, Freeport intends to transfer existing mining equipment from other North American sites to reduce the investment in the project to approximately $40 million.

"Operating plans at the North American sites continue to be reviewed, and additional adjustments will be made in response to changes in market conditions," the report states.

Freeport continues to conduct exploration activities near its existing mines. Expanded drilling during 2007 and 2008 were successful "in providing significant reserve additions and in identifying potential additional ore adjacent to existing ore bodies," the report states.

Results from exploration and drilling show opportunities for "significant future potential reserve additions" at Morenci, Sierrita and Bagdad. The results were also positive at Cerro Verde in South America and in the Tenke Fungurume district in Africa, according to the report.

Exploration spending in 2009 is estimated to be around $75 million, compared with $248 million in 2008.

Comments

28 comment(s)

    it is what it is wrote on Dec 4, 2009 2:10 PM:

    " i Have to say all the hatred towards FMI is rather sickening, due to the fact that the surronding three counties have had a great deal of economic wealth with the FMI support of keeping this place open. i have family members that were let go and i watched them get down but it is up to you to continue with your life and move forward. if ambition isnt your stron suit then find some one that will give you a shovel for 9 bucks an hour. "

    PDClay wrote on Oct 31, 2009 11:53 AM:

    " It is very clear to me FMI cherishes education and not anything else. A brand new college student will be employed before all other values (seniority, hard work, valued employee, doing a good job). I am told other companies value experience over education because that’s who keeps them profitable. Time will tell for Freeport they certainly did over-extend the business. Copper is very high price at $3.00 a pound. Will the college kids be able to make money in this economy? I think not. "

    TO pro whatever wrote on Oct 30, 2009 10:16 AM:

    " I'm going to agree with you on this one. They say the people in departments with the lowest scores were the ones to be laid off, however I had higher points then each person in my crew and I was the one laid off. Even my supervisor was laid and the few guys that I TAUGHT, that had been written up and had not been there as long as me, were kept. NOW can someone explain that? Oh perhaps its because I didn't suck up to the people in charge of points. "

    I agree wrote on Oct 30, 2009 7:27 AM:

    " For once I agree with Bwana, there are alot of people at the mine that never kissed anyones behind and they still kept their jobs because they are good hard workers. It's sad that so many people are so bitter and jealous because others have jobs, you should be happy for those that still do. "

    bwana wrote on Oct 29, 2009 2:45 PM:

    " Hey Pro...
    You are full of it!
    There were a lot of hard working, intelligent, reliable people retained and layed off! I agree that the point system was sloppily done by HR....But the fact is that those employees who did keep their jobs do not deserve to be demeaned and insulted. "

    pro whatever wrote on Oct 29, 2009 1:04 AM:

    " for the most part, the only people that kept their jobs up there were, supervisors and people that kissed up to management, though this wasnt true for everyone and everywhere, it did happen and it happened alot more than anybody's willing to admit...alot of hard workers and people with true skills and talent were lost. "

    pro whatever wrote on Oct 29, 2009 12:58 AM:

    " fmi's policies regarding layoffs are a joke...people with seniority, skills, etc were really screwed over on that last round of layoffs it was not in any way fair, the whole point system was laughable, "

    Wetback wrote on Oct 28, 2009 1:07 PM:

    " People are being laid off all across the nation. Stop thinking your so special. If you don't like it, start your own business. "

    Change wrote on Oct 27, 2009 3:08 PM:

    " All the angry comments have no point. I was laid off in febuary like most people, and since then have returned to school getting an education. It's time to let go i have a family, but sitting around being upset is'nt going to help. I bet most of those with the angry comments would go back in a heartbeat. The point is people it's time to forget about it, and move on. There is life after fmi, question is are you willing to seek it? "

    Pro Company wrote on Oct 27, 2009 11:53 AM:

    " Never was a scab!! But you union folks have to get a life instead of crying over spilt milk. No body wants to listen to you about the unions and the strike, it's like being an old 45 record in a CD world. Can you tell me who supports the people with jobs, It's obvious, companies like FMI. You cannot tell me where there is a union job in the Gila valley?? I'm suprised that you folks are still in the Gila valley working non union. I bet you get bonuses and gift cards for being non union. "

    Right On Loco wrote on Oct 27, 2009 11:17 AM:

    " You bet Loco. Pro Company is one of them. I for one am NOT thankful that a company such as FMI has ever came to the Gila Valley. Pro Company and the rest of their management ACTIVELY promote a hostile work environment and most in leadership positions are nearly illiterate in the mine. That is their company culture, bullying, threats and hostile tactics. And their higher leadership promotes that as well as they do nothing to stop it. It is an evil free-for-all and FMI chose the battle. Bring back the Unions. "

    1loco wrote on Oct 27, 2009 9:23 AM:

    " Hey pro company It's obvious you were a scab and still are the union help's hard working people not kiss butt's like you so dont tell us about a union. "

    brian wrote on Oct 26, 2009 7:39 PM:

    " They need to at least hire the utility crew fulltime !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! "

    Pro Company wrote on Oct 26, 2009 6:00 PM:

    " People should be thankful for any kind of business in the Gila valley like FMI. It is foolish to say "good bye" to FMI when mining contributes so much to economy. I can't imagine for someone say to bring back the unions. What are the unions going to do, pick cotton in the Gila valley? Far as mining destroying the mountains, there is more mountains being destroyed by the general public because they do not have to answer to the goverment like FMI because of reclamation and regulations. Be thankful for business supporting any jobs. "

    lacey wrote on Oct 26, 2009 4:13 PM:

    " Dont' bite the hand that has fed you AND your families. "

    please wrote on Oct 25, 2009 8:19 PM:

    " I didnt hear a single employee with fmi complain when they were getting bonus checks, better insurance cost and housing. I work for a contractor and I didnt get any lay off pay and my benefits stopped the day my feet walked off the mine so shut up already. If you were treated like crap why didnt u leave sooner? "

    PLEAZ wrote on Oct 25, 2009 8:10 PM:

    " The comments on this board for the most part are silly. All business are in business for profit. They are not there to care about your family. That is what you are there for.
    You are worth as much as your education. May be you should consider more of it? "

    Tell Us wrote on Oct 25, 2009 7:09 PM:

    " Who got a $20,000 bonus? Because I am management in Safford and I didn't get one. Everyone believes too many rumors. "

    To Pro Company wrote on Oct 25, 2009 3:36 PM:

    " You would sell your human dignity and self-worth for a $500 FMI card while they treat you like garbage? Let me clue you in. Management in Safford is laughing all the way to the bank. ALL they care about is their salary and and their $20,000 bonus checks. They're robotic programmed idiots fueled with greed and will stop at nothing to see that their bank accounts are stuffed, even if that means stabbing YOU in the back. Wise up and protect yourself, this is one sick company. "

    bwana wrote on Oct 25, 2009 2:29 PM:

    " Well, it was sad, and it still is a darned shame that so many people got layed off this year due to a poor world economic situation. But it's just silly to take it personally and harbor a grudge against FMI.

    PD would have done the same thing. Besides that, FMI has not been as stingy with the bonuses, gift cards, etc...

    Locally, there are people in authority that made poor choices and handled the RIF in an amateur fashion, but you can't blame the whole company for the actions of a few. "

    APatriot wrote on Oct 25, 2009 10:03 AM:

    " Quit crying over spilled milk. A Company that makes a lot of earnings is a well run business. That’s why Richard Ackerson made $73 million in 2008 and you didn’t. Freeport values elitism not hard work, greed, no personal responsibly, no morality, no compassion, no faith. Let the government regulate that! America is great, love it or leave it. "

    Pro Company wrote on Oct 25, 2009 8:51 AM:

    " At one time in history unions served a purpose for fair wages, health and safety. As times have changed, the unions are no longer needed in society. In Arizona, you have the industrial commission and federal agencies like MSHA & OSHA!

    Unions are a form of legal communism: They control the wages and promotion of members, control your political views and freedom of choice. Members pay into the union and receive “peanuts” back when the money is needed. If you like being controlled and your freedom taken away, then the union is for you. "

    Miner wrote on Oct 25, 2009 4:31 AM:

    " Freeport at morenci will never be what it once was. PD would have had massive layoffs to deal with this crises. Morenci was WAY FAT and the hiring frenzy started with PD, Freeport continued it way too long. When morenci goes back to a million + tons a day the extra help will come from contractors. Never again will they hire like idiots the way they did. When you have 10 men standing around watching 1 man work then something is gonna give sooner or later. The free ride is over people, get to work for a change! "

    Non-Sequitur wrote on Oct 24, 2009 8:52 PM:

    " FMI is counting their chickens before they hatch, this world-wide economic crisis is not over by a long shot, the increase in copper price will be offset by rising fuel cost. The start-up in Miami will cost them twice as much as they think and the return will be about half of what they are expecting. "

    Pima wrote on Oct 24, 2009 4:53 PM:

    " FMI (and PD before them) provided a very good living to a lot of people for many years. The layoffs were not a personal slight to anyone, just business. I know that doesn't make it easier, but that it the simple fact. They have done a lot for this community so show some dang gratitude and give up your "something for nothing" attitude. "

    Pro whatever wrote on Oct 24, 2009 2:36 PM:

    " Pro company must be a supervisor, cause us common joes i.e about 80% of the workforce do indeed feel disgruntled at fmi's policies regarding layoffs, and lest not forget that if it wasnt for unions us commoners or peons would be working for bum wages, no vacation, and in unsafe conditions, if management always had their way. "

    Pro Company wrote on Oct 24, 2009 11:37 AM:

    " It make me sick to hear comments from people like "Anti-FMI" about the unions! The truth about the 1983 Clifton/Morenci unions that the union reps where always drunk at union meetings and made decisions about people future on a drink of beer. the unions gave $25.00 a week for people to live off of and when you went to the meetings to say something, they will tell you to shut-up and sit back down. What a union to rely on!! FMI gave out $500.00 gift card and a quarterly bonus to its peoiple. SAY NO TO UNIONS !!! "

    ANTI-FMI wrote on Oct 24, 2009 7:35 AM:

    " I don't care how much money Freeport throws around. They treat their people like garbage and have hurt countless families in the Gila Valley. They are literally destroying our mountains in the name of company profit. Their "inner-circle" is driven by greed and total lack of human caring. Their rules are subject to change at a whim when they hustle to cover up their insanity.I met just one manager in Safford that I respected. The remainder are shiftless sycophants who will back-stab you in a heart beat. Bring the Union Back. GO AWAY FMI! "

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