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PHOENIX – Freeport-McMoRan Inc. (NYSE: FCX) reported third-quarter 2021 net income attributable to common stock of $1.4 billion, $0.94 per share, and adjusted net income attributable to common stock of $1.3 billion, $0.89 per share, after excluding net credits totaling $79 million, $0.05 per share, primarily associated with tax credits related to the release of valuation allowances at PT Freeport Indonesia (PT-FI) and a gain on the sale of FCX’s remaining cobalt business. For additional information, refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII.
Richard C. Adkerson, Chairman and Chief Executive Officer, said, “Our favorable results in the third quarter and year-to-date reflect strong execution by our global team in growing our production safely, efficiently, and responsibly. We have established a solid foundation for the future as a leading long-term supplier of copper to support a growing global economy and the transition to clean energy. We have successfully transitioned our Grasberg minerals district to be the world’s largest underground block-caving operation while maintaining excellent performance throughout our global operations. Our balance sheet is strong and we are prepared to make value-enhancing investments in our business while providing shareholders with increasing cash returns consistent with our established financial policy. The outlook for the copper market is extraordinarily positive. As a leader in the global copper industry, Freeport is well-positioned for success in generating value for all stakeholders.”
- Net income attributable to common stock in third-quarter 2021 totaled $1.4 billion, $0.94 per share, and adjusted net income attributable to common stock totaled $1.3 billion, or $0.89 per share, after excluding net credits totaling $79 million, $0.05 per share.
- Consolidated sales totaled 1.033 billion pounds of copper, 402 thousand ounces of gold and 20 million pounds of molybdenum in third-quarter 2021. Consolidated sales for the year 2021 are expected to approximate 3.8 billion pounds of copper, 1.3 million ounces of gold and 85 million pounds of molybdenum, including 1.025 billion pounds of copper, 375 thousand ounces of gold and 22 million pounds of molybdenum in fourth-quarter 2021.
- Average realized prices in third-quarter 2021 were $4.20 per pound for copper, $1,757 per ounce for gold and $18.61 per pound for molybdenum. ▪ Average unit net cash costs in third-quarter 2021 were $1.24 per pound of copper and are expected to average $1.33 per pound of copper for the year 2021 and $1.26 per pound of copper in fourth-quarter 2021.
- Operating cash flows totaled $2.0 billion (including $0.2 billion of working capital and other sources) in thirdquarter 2021 and $5.4 billion (including $0.4 billion of working capital and other sources) for the first nine months of 2021. Based on current sales volume and cost estimates, and assuming average fourth-quarter 2021 prices of $4.50 per pound for copper, $1,800 per ounce for gold and $19.00 per pound for molybdenum, operating cash flows are expected to approximate $7.5 billion for the year 2021.
- Capital expenditures totaled $0.5 billion (including approximately $0.3 billion for major mining projects) in third-quarter 2021 and $1.3 billion (including approximately $0.9 billion for major mining projects and $0.1 billion for the Indonesia smelter project) for the first nine months of 2021. Capital expenditures for the year 2021 are expected to approximate $2.3 billion ($2.0 billion excluding capital expenditures for the Indonesia smelter project), including $1.3 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia.
- At September 30, 2021, consolidated debt totaled $9.7 billion and consolidated cash and cash equivalents totaled $7.7 billion, resulting in net debt of $2.0 billion (refer to the supplemental schedule, “Net Debt,” on page IX). FCX had no borrowings and $3.5 billion available under its revolving credit facility at September 30, 2021.
- FCX added two new independent directors in August 2021; Marcela E. Donadio, retired partner of Ernst & Young LLP, and Sara Grootwassink Lewis, founder of Lewis Corporate Advisors, bringing FCX’s Board of Directors (Board) to nine directors with a wide breadth of business experiences.