Freeport-McMoRan Copper & Gold earnings double in 1Q

Phoenix-based Freeport said profit rose to $1.12 billion, or $2.64 per share, for the three-month period that ended March 31, compared with $476 million, or $2.02 per share, in the year-earlier period.

Sales were $5.67 billion, up from $2.25 billion.

Analysts polled by Thomson Financial expected a profit of $2.12 per share on $4.69 billion in sales.

Freeport's shares rose $1.51, or 1.3 percent, to $120.16 in morning trading.

Freeport acquired Phelps Dodge Corp. last year for $26 billion, becoming the largest publicly traded copper company. In addition to Phelps Dodge mines, Freeport operates the Grasberg mine, one of the world's largest sources of precious metals in Pampua, Indonesia.

Copper remains in high demand despite the faltering U.S. housing market because China and India continue to press for more resources. A strike by mine workers in Chile, the world's primary copper-producing nation, also is boosting copper prices.

The price of copper rose 27 percent and the price of gold rose 9.2 percent during the quarter on the New York Mercantile Exchange.

Freeport Chief Executive Richard C. Adkerson and Chairman James R. Moffett said in a statement the company would "focus on maximizing current production volumes" to meet the high demand.

The company's mines posted sales in the first quarter of 911 million pounds of copper and 280,000 ounces of gold. That's down from 1 billion pounds of copper and 977,000 ounces of gold in first-quarter 2007 figures that include Phelps Dodge sales.

The company said sales volumes were down because of mining in a lower ore grade section of the Grasberg open pit during the first half of 2008.

Freeport expects to continue mining the low-grade section in the second quarter, followed by a higher-grade section in the second half of 2008.

In the second quarter, Freeport expects its mines to sell 930 million pounds of copper, 225,000 ounces of gold and 18 million pounds of molybdenum. For the year, Freeport expects to sell about 4.2 billion pounds of copper, 1.4 million ounces of gold and 75 million pounds of molybdenum.

"As we crossed the one-year anniversary of our combination with Phelps Dodge in March, we are established as a financially strong global metals producer with significant current production capacity and reserves, exciting current growth projects and promising opportunities for future growth in major minerals districts around the world," the company said.

The company's debt climbed to $7.6 billion as of March 31, compared with $7.2 billion as of Dec. 31. However, its consolidated cash increased to $1.8 billion on March 31, compared with $1.6 billion three months earlier.

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