Why Does Freeport Indonesia's Production Increase But Sales Fall?

Summary

PT Freeport Indonesia's gold production reached 341 thousand ounces during the first half of this year, rising 7.3 percent compared to 316 thousand ounces in the same period last year. Copper production even jumped 18.8 percent to 321 million pounds. Referring to Freeport-McMoRan's financial and operating reports for the second quarter of 2020, the gold and copper sales of its subsidiary operating in Papua were declining.

In the first half of 2020, Freeport Indonesia's gold sales volume was only 319 thousand ounces, down 24 percent compared to 420 thousand ounces in the same period in 2019. Meanwhile, copper sales during the first six months of this year were only 299 million pounds, down eight percent from 325 million pounds in the same period last year. "Freeport's consolidated gold sales of 180 thousand ounces in the second quarter of 2020 are lower than the 2019 second quarter consolidated gold sales at 185 thousand ounces, mainly reflecting the delivery time," Freeport-McMoRan President & CEO Richard C. Adkerson said on Friday (24/7 ), as quoted by Reuters.

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