Freeport-McMoRan Announces Suspension of First-Quarter Cash Dividend on Common Stock & Prudent Steps to Reduce Costs & Capita...
March 23 2020 - 8:00AM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that in
response to the COVID-19 pandemic and resulting global economic
uncertainties, its Board of Directors will suspend the quarterly
cash dividend of $0.05 per share previously planned for May 1,
2020. The declaration and payment of future dividends is at the
discretion of the Board and will depend on FCX’s financial results,
cash requirements, global economic conditions and other factors
deemed relevant by the Board.
FCX also announced it has undertaken an aggressive review of
operating plans at each of its global copper and molybdenum
operations to target reductions in all elements of costs and
capital spending to achieve maximum cash flow under current market
conditions. Revised operating plans may result in temporary
reductions in copper and molybdenum production at operations in the
Americas that are challenged by low commodity prices. FCX expects
to complete this review promptly and will report its revised
operating and financial plans with its first-quarter results in
April 2020.
Richard C. Adkerson, FCX’s President and Chief Executive
Officer, said: “The prudent steps we are taking to address costs
and capital spending and preserve a strong liquidity position are
necessary to maintain flexibility as we respond to current global
economic uncertainties and the resulting sharp decline in copper
prices in recent weeks. We are continuing to focus on the health
and safety of our employees, supporting communities in our
operating areas and serving customers who have indicated ongoing
requirements for copper at this critical time. We are also building
on momentum to establish large scale, low-cost production from our
underground ore bodies at Grasberg which will position us to
generate substantial cash flows beyond 2020. I want to recognize
the dedication and resiliency of our entire workforce and global
organization who are critical to our success. Our high-quality
portfolio of long-lived assets and proven track record for
navigating volatile market conditions provide confidence in our
ability to maintain strength during uncertain economic times and
substantial upside as market conditions improve. We remain focused
on execution and opportunities to provide shareholder returns when
global economic conditions improve.”
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 production activities and operating plans, reductions
in costs and capital spending and future dividend payments. 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 and payment of future dividends is at
the discretion of the 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, the
duration and scope of and uncertainties associated with the
COVID-19 pandemic and the impact thereof on commodity prices, our
business and the global economy, which are evolving and beyond our
control, and 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200323005302/en/
Financial Contacts: Kathleen L. Quirk, 602-366-8016 David P.
Joint, 504-582-4203 Media Contact: Linda S. Hayes, 602-366-7824
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