Freeport-McMoRan Provides Operational Update
March 09 2020 - 8:37AM
Business Wire
Ramp-up of production from Underground
Transition at Grasberg district remains on track
Reaffirms outlook for significant cash flow
generation in 2021 and beyond
Freeport-McMoRan Inc. (NYSE: FCX) announced today continued
progress in growing copper and gold volumes by 30 - 40 percent,
reducing net unit cash costs of copper by 25 percent to
approximately $1.30 per pound and more than doubling cash flows by
2021 compared with 2019.
- The Company remains focused on increasing volumes from its
underground orebodies in Papua, Indonesia. Quarter-to-date through
March 5, 2020, production from the Grasberg Block Cave and Deep MLZ
orebodies averaged approximately 35,000 metric tonnes of ore per
day, 35 percent above the fourth quarter 2019 average and in line
with expectations.
- The Lone Star project in Arizona is nearing completion and is
expected to be commissioned during 2020.
- Innovation and technology initiatives to enhance productivity
and unit cost performance are ongoing and achieving durable
results.
Richard C. Adkerson, FCX’s President and Chief Executive
Officer, said: “Despite market volatility and potential economic
impacts of the Coronavirus and turmoil in the global oil market,
our team remains focused on execution of our plans to enhance
performance at low copper prices and provide opportunities for
superior performance as market conditions improve. Copper is an
essential element of the global economy and its fundamental
long-term outlook remains favorable.”
Execution on these three important initiatives is expected to
significantly enhance the Company’s cash flows in 2021 and beyond.
At copper prices ranging from $2.75 - $3.00 per pound, FCX
estimates free cash flow generation (net of capital expenditures
and distributions to noncontrolling interests) ranging from an
average of over $2 billion to nearly $3 billion per annum in 2021
and 2022.
FCX also announced that there have been no significant
disruptions to its supply chain or product shipments since the
outbreak of the Coronavirus. The Company continues to monitor the
situation closely and will carefully manage all costs, capital
expenditures and production plans during this period of
uncertainty. The Company has a strong liquidity position and no
significant near-term debt maturities.
FCX is a leading international mining company with headquarters
in Phoenix, Arizona. FCX operates large, long-lived, geographically
diverse assets with significant proven and probable reserves of
copper, gold and molybdenum. FCX is one of the world's largest
publicly traded copper producers.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world's largest copper and gold
deposits; and significant mining operations in North America and
South America, including the large-scale Morenci minerals district
in Arizona and the Cerro Verde operation in Peru. 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 in which FCX discusses its potential future performance.
Forward-looking statements are all statements other than statements
of historical facts, such as plans, projections or expectations
relating to ore grades and milling rates; production and sales
volumes; unit net cash costs; operating cash flows; capital
expenditures; FCX’s expectations regarding its share of PT Freeport
Indonesia’s (PT-FI) net (loss) income and future cash flows through
2022; PT-FI’s development, financing, construction and completion
of a new smelter in Indonesia; FCX’s expectations regarding results
associated with productivity and innovation initiatives;
exploration efforts and results; development and production
activities, rates and costs; liquidity; tax rates; export quotas
and duties; the impact of copper, gold and molybdenum price
changes; the impact of deferred intercompany profits on earnings;
reserve estimates; execution of the settlement agreement associated
with the Louisiana coastal erosion cases; and future dividend
payments, share purchases and sales. The words “anticipates,”
“may,” “can,” “plans,” “believes,” “estimates,” “expects,”
“projects,” "targets," “intends,” “likely,” “will,” “should,” “to
be,” ”potential" and any similar expressions are intended to
identify those assertions as forward-looking statements. The
declaration of dividends is at the discretion of the Board of
Directors (Board) and will depend on FCX’s financial results, cash
requirements, future prospects, and other factors deemed relevant
by the Board.
FCX cautions readers that forward-looking statements are not
guarantees of future performance and actual results may differ
materially from those anticipated, expected, 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, but are not limited to,
supply of and demand for, and prices of, copper, gold and
molybdenum; mine sequencing; changes in mine plans; production
rates; timing of shipments; results of feasibility studies;
potential inventory adjustments; potential impairment of long-lived
mining assets; the potential effects of violence in Indonesia
generally and in the province of Papua; the Indonesian government’s
extension of PT-FI’s export license after March 8, 2020; risks
associated with underground mining; satisfaction of requirements in
accordance with PT-FI’s special mining license (IUPK) to extend
mining rights from 2031 through 2041; FCX’s ability to achieve the
expected results of its productivity and innovation initiatives;
industry risks; regulatory changes; political and social risks;
labor relations; weather- and climate related risks; environmental
risks; litigation results; cybersecurity incidents; 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,
2019, filed with the U.S. Securities and Exchange Commission
(SEC).
Investors are cautioned that many of the assumptions upon which
FCX's forward-looking statements are based are likely to change
after the 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 not be able to
control. Further, FCX may make changes to its business plans that
could affect its results. FCX cautions investors that it does not
intend to update forward-looking statements more frequently than
quarterly notwithstanding any changes in its assumptions, changes
in business plans, actual experience or other changes, and FCX
undertakes no obligation to update any forward-looking
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200309005462/en/
Financial Contacts: Kathleen L. Quirk, 602-366-8016 David P.
Joint, 504-582-4203 Media Contact: Linda S. Hayes, 602-366-7824
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
From Apr 2023 to Apr 2024