Freeport-McMoRan reports lower profit for the quarter due to higher tariffs and increased costs
Freeport-McMoRan stated on Thursday that the proposed tariffs may increase the cost of goods purchased by the copper miner in the United States. The price could rise to about 5%.
Trump's tariffs on the majority of U.S. imported goods and an intensifying trade conflict with China has caused uncertainty in the mining industry, and companies are scrambling to find alternative supply chains.
The company stated that "FCX monitors potential indirect effects of U.S. Trade Policy on Economic Growth and potential impacts on Demand for Copper." "Efforts have been made to evaluate other sourcing options in order to mitigate any potential impact."
Freeport-McMoRan reported that it produced 868 millions recoverable pound of copper in the quarter. This is lower than the 1,09 billion pounds recovered it reported one year ago.
Copper unit cash costs have increased to $2.07 a pound, up from $1.51 per pound last year.
The Phoenix, Arizona, company's net profit attributable to its common shareholders dropped to $352 millions, or 24 cents a share, for three months ending March 31 from $473, or 32 cents a share, one year ago. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shilpi Magumdar.
(source: Reuters)
