Freeport-McMoRan Announces Cost Reduction Plans
July 28 2015 - 10:52AM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) today announced it has
undertaken a comprehensive review of its operating plans in its
mining and oil and gas businesses to target significant additional
reductions in capital spending and operating and administrative
costs in response to weak market conditions for its major products.
These plans will also incorporate potential adjustments to mine
plans and future copper and molybdenum production volumes to reduce
costs and preserve valuable resources for anticipated improved
market conditions in the future. The company expects to complete
this review promptly and will report its revised plans during the
third quarter of 2015.
James R Moffett, FCX’s Chairman, Richard C. Adkerson, Vice
Chairman and Chief Executive Officer and James C Flores, Vice
Chairman and FM O&G Chief Executive Officer, said, “We are
responding aggressively to current market conditions affecting our
primary products and to the uncertain global economic outlook.
These initiatives are focused on maximizing cash flow in a weak
commodity environment and on strengthening the company’s financial
position. We appreciate the efforts and dedication of our global
organization who are supporting our plans to implement revised
operating plans. We have a positive long-term view for our markets,
the inherent values in our large asset base and are positioning our
company for long-term success.”
As previously reported, FCX has made substantial progress toward
the completion of its major mining development projects, which are
expected to result in increased near-term production, lower unit
costs, declining capital expenditures and growth in free cash flow
over the next several quarters and its oil & gas subsidiary
filed a registration statement in June 2015 related to a potential
initial public offering representing a minority interest in the
entity. FCX has a broad set of natural resource assets that provide
many alternatives for future actions to enhance its financial
flexibility.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets, significant
oil and gas resources and a growing production profile. FCX is the
world’s largest publicly traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world’s largest copper and gold
deposits; significant mining operations in the Americas, including
the large-scale Morenci minerals district in North America and the
Cerro Verde operation in South America; the Tenke Fungurume
minerals district in the DRC; and significant U.S. oil and natural
gas assets in the Deepwater GOM, onshore and offshore California
and in the Haynesville natural gas shale, and a position in the
emerging Inboard Lower Tertiary/Cretaceous natural gas trend
onshore in South Louisiana. Additional information about FCX is
available on FCX’s website at “fcx.com.”
Cautionary Statement Regarding Forward-Looking
Statements: This press release contains forward-looking
statements, which are all statements other than historical facts,
such as statements regarding targeted reductions in capital
spending and operating and administrative costs and potential
adjustments to mine plans and production volumes. FCX cautions
readers that forward-looking statements are not guarantees of
future performance and its actual results may differ materially
from those anticipated, projected or assumed in the forward-looking
statements. Important factors that can cause FCX’s actual results
to differ materially from those anticipated in the forward-looking
statements include commodity prices, production rates, industry
risks, regulatory changes, drilling results, weather- and
climate-related risks and other factors described in more detail
under the heading “Risk Factors” in FCX’s Annual Report on Form
10-K for the year ended December 31, 2014, filed with the U.S.
Securities and Exchange Commission (SEC) as updated by FCX’s
subsequent filings with the SEC.
Investors are cautioned that many of the assumptions on which
FCX’s forward-looking statements are based are likely to change
after its forward-looking statements are made, including for
example commodity prices, which FCX cannot control, and production
volumes and costs, some aspects of which FCX may or may not be able
to control. Further, FCX may make changes to its business plans
that could or will affect its results. FCX cautions investors that
it does not intend to update forward-looking statements more
frequently than quarterly notwithstanding any changes in FCX’s
assumptions, changes in business plans, actual experience or other
changes, and FCX undertakes no obligation to update any
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20150728006236/en/
Freeport-McMoRan Inc.Financial Contacts:Kathleen L. Quirk,
602-366-8016orDavid P. Joint, 504-582-4203orMedia Contact:Eric E.
Kinneberg, 602-366-7994
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