Freeport quarterly molybdenum production falls

OREANDA-NEWS. April 29, 2016. Arizona-based copper and molybdenum miner Freeport-McMoran decreased first quarter molybdenum production by 16.7pc from a year earlier amid reduced output from the company's Henderson mine.

Freeport produced 20mn lbs of molybdenum during the first quarter of 2016, down from 24mn lbs in 2015.

Average molybdenum ore grades increased by 0.03pc points to 0.22pc. Meanwhile, molybdenum sales declined by 26pc to 17mn lbs during the first quarter, while average realized prices fell by 25pc to \\$7.61/lb. Sales fell 2mn lbs short of a January estimate for the first quarter of 19mn lbs.

Production at the company's two North American molybdenum mines Henderson and Climax shrunk by 46pc to 7mn lbs during the first quarter. The Henderson mine will operate at approximately 65pc of the annual production volumes, according to revised plans. The mine produced 25mn lbs of molybdenum during 2015, down from 30mn lbs in 2014.

The company's Peruvian Cerro Verde mine increased molybdenum production by 150pc to 5mn lbs during the first quarter.

Freeport expects second quarter molybdenum sales to total 19mn lbs and full year sales to decline by 16.5pc to 71mn lbs from a year earlier.