PHOENIX (Yosefardi) – Freeport-McMoRan Inc. said its Indonesian operation, PT Freeport Indonesia, produced 354,000 ounces of gold in the fourth quarter of 2014, dropped 29.48% from 502,000 ounces in the same period of 2013.
Gold sales volume also declined 23% to 366,000 ounces from previous 476,000 ounces. While average gold price fell 2.2% to US$1,192 per ounce.
Copper production dropped 43.7% to 171 million pounds from earlier 304 million pounds and copper sales volume fell 38.3% to 180 million pounds from previous 292 million pounds. Copper average price declined 14% to US$2.86 per pound.
Lower gold and copper sales volume reflected anticipated lower ore grades and unplanned work stoppages.
For 2014, Freeport Indonesia’s gold production only fell 1% to 1.13 million ounces from 1.14 million ounces in 2013. Copper production dropped 30.5% to 636 million pounds from 915 million a year earlier.
Gold sales volume rose 6.5% to 1.16 million ounces in 2014, from 1.09 million ounces in 2013. Copper sales volume declined 25% to 664 million pounds from 885 pounds in 2013.
At the Grasberg mine, the sequencing of mining areas with varying ore grades causes fluctuations in quarterly and annual production of copper and gold.
Sales from Indonesia mining are expected to approximate 1.0 billion pounds of copper and 1.3 million ounces of gold for the year 2015.
Unit net cash costs (net of gold and silver credits) for Indonesia mining are expected to approximate $1.19 per pound of copper for the year 2015, based on current sales volume and cost estimates, and assuming an average gold price of $1,300 per ounce.