28 Jan 2009

Freeport-McMoRan CopperandGold reports a fourth-quarter loss

11:38 am on 28 January 2009

Freeport-McMoRan Copper & Gold has reported a fourth-quarter loss on big writedowns related to its assets and inventories along with plummeting metal prices.

The company also said that as a result of mine operation revisions, mostly in the United States, it expects to sell 9 percent less copper this year and 25 percent less molybdenum.

In December, Freeport, which operates a mine in Indonesia's Papua region, suspended its dividend, slashed capital expenditure by more than half and lowered copper output because of the slump in metal prices.

In a statement, the company says it is taking decisive actions to respond to the currently weak global economic conditions so that it is positioned to operate on a lean, efficient and low-cost basis while preserving valuable resources and growth opportunities for the future.

The net loss was 13.9 billion US dollars compared with a profit of 414 million, in the same quarter of 2007, the US based company said.