DENVER - Mining giant Freeport-McMoRan Copper & Gold Inc. said Tuesday its second-quarter net profit dropped 38 percent but it still beat analysts' estimates as costs fell and gold sales more than tripled. Its shares rose more than 2 percent in morning trading.

The world's largest publicly traded copper company reported net income of $588 million, or $1.38 per share, compared with $947 million, or $2.25 per share, in the year-ago quarter.

Analysts surveyed by Thomson Reuters forecast, on average, a second-quarter profit of 69 cents a share.

Revenue fell 32 percent to $3.68 billion from $5.44 billion in the prior-year period. Analysts forecast even loower revenue of $3.4 billion, on average.

Sales of gold more than tripled to 837,000 ounces from 265,000 ounces in the April-June period of 2008. The average price per ounce rose slightly to $932 from $912.

Despite a price drop, copper sales rose 17 percent to 1.1 billion pounds from 942 million pounds. The average price per pound was $2.22, down from $3.85.

Sales of molybdenum, which is used in to strengthen steel, fell 25 percent to 16 million pounds from 20 million pounds. The average price per pound plummeted to $10.11 from $31.59.

Consolidated unit net cash costs averaged 43 cents a pound in the most recent quarter, compared with $1.25 in the year-ago period.

Company officials said they were able to pull higher-grade ore from the ground which helped cut production costs and offset losses due to production cutbacks in North America.

In the first six months of the year, Freeport-McMoRan earned $631 million, or $1.54 per share, compared with $2.1 billion, or $4.89 a share, in the year-ago period. Revenue fell to $6.3 billion from $11.1 billion.

Freeport-McMoRan raised its estimated 2009 consolidated sales to 3.9 billion pounds of copper, 2.4 million ounces of gold and 56 million pounds of molybdenum. Its copper estimate was unchanged but it raised its earlier estimates that it would sell 2.3 million ounces of gold and 50 million pounds of molybdenum.

The Phoenix-based company was targeted by violence earlier this month in Indonesia, where it operates the world's largest gold mine in the eastern Papua province. At least 13 people were killed or wounded.

In addition, two company employees were injured last week during suicide bombings at hotels in Jakarta, Indonesia's capital.

Shares of Freeport-McMoran rose $1.25, or 2.2 percent, to $58.25 in morning trading.

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Associated Press business reporter Deborah Jian Lee in New York contributed to this report.

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