Freeport-McMoRan Reports Fourth-Quarter and Year Ended 2019 Results

Category: Front Page News Front Page News
Published: 23 January 2020 23 January 2020

To download a PDF of the release, please visit the following link: Freeport-McMoRan Reports Fourth-Quarter and Year Ended 2019 Results

PHOENIX--(BUSINESS WIRE)-- Freeport-McMoRan Inc. (NYSE:FCX):

Net income attributable to common stock totaled $9 million, less than $0.01 per share, in fourth-quarter 2019. After adjusting for net charges of $22 million, $0.02 per share, fourth-quarter 2019 adjusted net income attributable to common stock totaled $31 million, or $0.02 per share.

Consolidated sales totaled 906 million pounds of copper, 317 thousand ounces of gold and 22 million pounds of molybdenum in fourth-quarter 2019, and 3.3 billion pounds of copper, 991 thousand ounces of gold and 90 million pounds of molybdenum for the year 2019.

Consolidated sales for the year 2020 are expected to approximate 3.5 billion pounds of copper, 0.8 million ounces of gold and 88 million pounds of molybdenum, including 725 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum in first-quarter 2020. Sales are expected to increase to 4.3 billion pounds of copper and 1.4 million ounces of gold in 2021.

Average realized prices in fourth-quarter 2019 were $2.74 per pound for copper, $1,491 per ounce for gold and $11.65 per pound for molybdenum.

Average unit net cash costs in fourth-quarter 2019 were $1.67 per pound of copper and $1.74 per pound of copper for the year 2019. Unit net cash costs are expected to average $1.75 per pound of copper for the year 2020.

Operating cash flows totaled $170 million in fourth-quarter 2019 and $1.5 billion (including $349 million of working capital and other sources) for the year 2019. Based on current sales volume and cost estimates, and assuming average prices of $2.85 per pound for copper, $1,500 per ounce for gold and $10.00 per pound for molybdenum, operating cash flows are expected to approximate $2.4 billion (including $0.2 billion of working capital and other sources) for the year 2020.

Capital expenditures totaled $0.7 billion (including approximately $0.4 billion for major projects) in fourth-quarter 2019 and $2.65 billion (including approximately $1.5 billion for major projects) for the year 2019. Capital expenditures for the year 2020 are expected to approximate $2.8 billion, including $1.8 billion for major projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and completion of the Lone Star copper leach project in Arizona, and exclude estimates associated with the new smelter in Indonesia. FCX expects capital expenditures for the development of the new smelter in Indonesia to approximate $0.5 billion in 2020, of which approximately 49 percent will be attributable to FCX's equity interest.

During fourth-quarter 2019, FCX generated $452 million in proceeds from asset sales associated with the previously announced sales of a portion of its Freeport Cobalt business and its interest in the lower zone of the Timok exploration project.

At December 31, 2019, consolidated debt totaled $9.8 billionand consolidated cash totaled $2.0 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at December 31, 2019.
On December 18, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on February 3, 2020.

Freeport-McMoRan Inc. (NYSE:FCX) reported net income (loss) attributable to common stock of $9 million (less than $0.01 per share) in fourth-quarter 2019 and $(239) million ($(0.17) per share) for the year 2019. After adjusting for net charges of $22 million ($0.02 per share), primarily reflecting net charges at PT-FI (mostly for historical contested tax audits) and metals inventory adjustments, partly offset by gains on sales of assets, adjusted net income attributable to common stock totaled $31 million ($0.02 per share) in fourth-quarter 2019. For additional information, refer to the supplemental schedule, "Adjusted Net Income," on page VII, which is available on FCX's website, "fcx.com."

Richard C. Adkerson, President and Chief Executive Officer, said, "During 2019, we progressed three major initiatives to enhance future cash flows and value for our shareholders. We are on schedule to establish large-scale production from our high-grade, low-cost and long-lived underground ore bodies at Grasberg; the Lone Star project in Arizona is nearing completion; and early results from our innovation initiatives to enhance productivity at our operations in the Americas are positive.

Combined, these initiatives are expected to strengthen our cost position, future cash flows and long-term value for our shareholders, further advancing Freeport as foremost in the global copper industry. We are laser focused on execution of these plans designed to increase copper and gold sales by more than 30 percent, reduce unit net cash costs by approximately 25 percent and more than double operating cash flows in 2021 from 2019 levels."

SUMMARY FINANCIAL DATA

[Editor's Note: To see all the tables and the entire document, please visit https://investors.fcx.com/investors/news-releases/news-release-details/2020/Freeport-McMoRan-Reports-Fourth-Quarter-and-Year-Ended-2019-Results/default.aspx

Content on the Beat

WARNING: All articles and photos with a byline or photo credit are copyrighted to the author or photographer. You may not use any information found within the articles without asking permission AND giving attribution to the source. Photos can be requested and may incur a nominal fee for use personally or commercially.

Disclaimer: If you find errors in articles not written by the Beat team but sent to us from other content providers, please contact the writer, not the Beat. For example, obituaries are always provided by the funeral home or a family member. We can fix errors, but please give details on where the error is so we can find it. News releases from government and non-profit entities are posted generally without change, except for legal notices, which incur a small charge.

NOTE: If an article does not have a byline, it was written by someone not affiliated with the Beat and then sent to the Beat for posting.

Images: We have received complaints about large images blocking parts of other articles. If you encounter this problem, click on the title of the article you want to read and it will take you to that article's page, which shows only that article without any intruders. 

New Columnists: The Beat continues to bring you new columnists. And check out the old faithfuls who continue to provide content.

Newsletter: If you opt in to the Join GCB Three Times Weekly Updates option above this to the right, you will be subscribed to email notifications with links to recently posted articles.

Submitting to the Beat

Those new to providing news releases to the Beat are asked to please check out submission guidelines at https://www.grantcountybeat.com/about/submissions. They are for your information to make life easier on the readers, as well as for the editor.

Advertising: Don't forget to tell advertisers that you saw their ads on the Beat.

Classifieds: We have changed Classifieds to a simpler option. Check periodically to see if any new ones have popped up. Send your information to editor@grantcountybeat.com and we will post it as soon as we can. Instructions and prices are on the page.

Editor's Notes

It has come to this editor's attention that people are sending information to the Grant County Beat Facebook page. Please be aware that the editor does not regularly monitor the page. If you have items you want to send to the editor, please send them to editor@grantcountybeat.com. Thanks!

Here for YOU: Consider the Beat your DAILY newspaper for up-to-date information about Grant County. It's at your fingertips! One Click to Local News. Thanks for your support for and your readership of Grant County's online news source—www.grantcountybeat.com

Feel free to notify editor@grantcountybeat.com if you notice any technical problems on the site. Your convenience is my desire for the Beat.  The Beat totally appreciates its readers and subscribers!  

Compliance: Because you are an esteemed member of The Grant County Beat readership, be assured that we at the Beat continue to do everything we can to be in full compliance with GDPR and pertinent US law, so that the information you have chosen to give to us cannot be compromised.