PT Freeport Indonesia (PTFI) recorded copper production of 436 million pounds during the third quarter of 2023. This figure represents a 14.43% increase compared to the same period the previous year when it stood at 381 million pounds.

Kathleen Quirk, President of Freeport-McMoRan, stated that copper and gold production in the third quarter of 2023 showed significant growth compared to the same period the previous year.

"The production for copper this quarter is more than 400 million pounds, and gold is more than 500,000 ounces, indicating the vast scale of these operations," said Kathleen during the FCX quarterly conference call for the third quarter of 2023, as quoted on Sunday (22/10/2023).

Specifically, gold production from the Grasberg Mine reached 528,000 ounces, an 18.65% increase from the previous year's position of 445,000 ounces.

As for the consolidated sales of copper concentrate from PTFI during the third quarter of 2023, it reached 430 million pounds, higher than the record for the same period the previous year at 381 pounds. The average realized selling price was at the level of USD 3.77 per pound during the last three months.

On the other hand, consolidated gold sales from PTFI experienced a decline to 395,000 ounces, compared to the previous level of 476,000 ounces in the third quarter of 2022. The decrease in gold sales in the form of anode sludge was due to export permit adjustments, with around 75,000 anode sludge still currently suspended for export.

Assuming an average gold price of USD 1,900 per ounce in the fourth quarter of 2023 and considering the current sales volume and estimated costs, the net cash cost per unit for PTFI is estimated to reach USD 0.15 per pound of copper until the end of 2023.

Through three mining blocks currently operating in the Grasberg area, PTFI's annual production capacity reaches approximately 1.6 billion pounds of copper and 1.6 million ounces of gold.

"Our consolidated net cash cost is on average USD 1.37 per pound in the third quarter of 2023, similar to last year's third quarter. The increase from our guidance of USD 1.61 per pound mostly reflects the impact of export duties in Indonesia," said Quirk.

Meanwhile, Quirk mentioned that the progress of the construction of the Manyar PTFI copper smelter in Gresik, East Java, has reached about 84%.

According to her, the execution of the smelter project with an investment value of USD 3 billion is progressing well, and her team is very focused on completing the project efficiently.

The construction of the Freeport Indonesia smelter is expected to be completed and begin commissioning in the second quarter of 2024, with a ramp-up scheduled until the end of 2024.

"The smelter construction has reached 84%, and we will begin production ramp-up in 2024," she said.

Image source: Bloomberg-Dadang Tri

Source: www.ekonomi.bisnis.com/Produksi Tembaga Freeport Naik 1443 Triwulan III 2023