They estimate this will disrupt operations through February. Back-of-the-envelope calculations (15 more days) suggest a total of 75M lb of lost copper production and 75K oz. of gold, relative to their 2023 guidance of 900M lb of copper and 300K oz gold. Or 8% of copper production and 25% of gold. Assuming the company cannot make up for it later.
Hopefully it doesn't sell off too badly (as a shareholder), but it might be a nice buying opportunity. The decade looks very promising for copper.
Freeport-McMoRan Inc. (FCX) announced today that PT Freeport Indonesia's (PT-FI) Grasberg operations have been temporarily disrupted because of significant rainfall and landslides in the area of its milling operations in Papua, Indonesia. Intense rains on Saturday February 11, 2023, resulted in flooding and a flow of debris, causing damage to infrastructure near its milling complex. Personnel were safely evacuated from the localized area.
PT-FI is conducting a damage assessment and preparing a recovery plan to resume operations. Preliminary estimates, which are subject to change as assessments are completed, indicate operations can be restored by the end of February 2023. There is no impact to PT-FI's long term plans.
PT-FI's daily production approximates nearly 5 million pounds of copper and 5,000 ounces of gold. As a result of the disruption, FCX expects its first-quarter 2023 sales to be lower than the guidance provided on January 25, 2023, of 900 million pounds of copper and 300 thousand ounces of gold.
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