Freeport sees strong Indonesian sales

Freeport sees strong Indonesian sales

SYDNEY (Reuter): Freeport McMoRan Copper & Gold Inc said it expects strong gold sales during the 1996 year from its unit PT Freeport Indonesia Company (PT-FI).

"PT-FI has obtained commitments for essentially all of its expected 1996 concentrate sales which are now estimated to yield approximately 1.1 billion pounds of copper and 1.55 million ounces of gold," Freeport said.

"Strong 1996 gold sales reflect the expectation of producing greater than mine life gold grades during the year," it said.

Earlier, Freeport reported net income per share of common stock of US$0.27 in the 1995 fourth quarter.

"However, first-quarter 1996 production will be adversely affected by the anticipated mining of lower grade ore and sales, expected to approximate 175 million pounds of copper and 225,000 ounces of gold, will be affected by the timing of concentrate shipments," Freeport said.

Furthermore, at December 31, 1995, copper sales totaling 249 million pounds, which were recorded in 1995 at an average price of $1.20 per pound, remained to be contractually priced and are subject to price adjustments during the first quarter, it said.

PT-FI operates the giant Grasberg gold and copper mine in Irian Jaya, Indonesia.