The copper and gold miner, PT Freeport Indonesia (PTFI), aiming to post a net profit of US$870 million in 2021 - Photo by the Company

JAKARTA (TheInsiderStories)  – The copper and gold miner, PT Freeport Indonesia (PTFI), aiming to post a net profit of US$ 870 million in 2021. In this year, the unit of Phoenix-based Freeport Mcmoran Inc., and PT Indonesia Asahan Aluminium (MIND ID), is estimating book a net profit of $366 million from a year ago worth of $166 million.

The CEO of mining holding, Orias Petrus Moedak, told the parliament members on Monday (07/12), that the low net profit in the last two years was due to the transition from open pit to underground mining projects. He said, after two years not received the dividend from the unit, starting 2021, the shareholders is expected to gets a dividend of $200 million and in 2022 amounting to $500 million.

“In 2023 onwards, we assume that the dividend portion that will be obtained is $1 billion each year. On this calculation basis, we will come to investors to issue bonds,” he told the house speakers.

At of the first semester of 2020, the miner recorded a net profit of $94 million, driven by the improving of copper and gold prices. Copper prices continued to move up from the position of $1.92 per pound in March 2020 to $3.04 per pound in June 2020 and the price of gold had increased significantly since April, reached $1,906 per troy ounce.

PTFI‘ copper production was recorded at 321 million pounds in the first half of 2020. During the same period, the production recorded 321 million pounds. The copper sales in the second quarter of 2020 were recorded at 172 million pounds or in total 299 million pounds, an increase of 35 percent compared to the first quarter of 2020 .

While, gold production during the second quarter of this year reached 189,000 ounces, up 25 percent compared to the first quarter of this year. The total gold production during the first semester of 2020 reached 340,000 ounces. In the second quarter of 2020, PTFI gold sales reached 180,000 ounces, an increase of 29 percent compared to the first quarter of 2020. In accumulation, gold sales reached 319,000 ounces during the first semester of 2020.

Next year, Freeport Indonesia targets to increase copper and gold production by up to 75 percent. The miner targeting the copper production in 2021 to reach 1.4 billion pounds of copper and 1.4 million troy ounces of gold. The target is an increase from this year’ production, which is believed to reach 800 million pounds of copper and 800,000 troy ounces of gold.

Written by Editorial Staff, Email: theinsiderstories@gmail.com