Photo By Freeport-McMoRan
Contributed Article/Courtesy Freeport McMoRan
PHOENIX – Freeport-McMoRan Inc. (NYSE: FCX) reported net income (loss) attributable to common stock of $329 million, $0.22 per share, in third-quarter 2020 and $(109) million, $(0.08) per share, for the first nine months of 2020.
After adjusting for debt extinguishment costs and other net charges totaling $101 million, $0.07 per share, adjusted net income attributable to common stock totaled $430 million, $0.29 per share, in third-quarter 2020.
Richard C. Adkerson, President and Chief Executive Officer, said, “Our seasoned, motivated and value-focused global organization delivered strong results during the third quarter and continues to demonstrate the ‘Freeport Edge’. Our team is protecting the health of our workforce and communities where we operate as a first priority, as we serve customers, operate efficiently, and advance significant growth in production. Our strong cash flows in the third quarter, growing volumes, effective cost management, and positive market outlook for our products provide momentum to continue to strengthen our balance sheet, increase returns to shareholders and generate long-term values for all stakeholders.”
Freeport reports its third-quarter copper and gold sales were 6-7 percent above July estimates and that its Lone Star project is on track to produce 200 million tons of copper annually and the ramp-up of its Grasberg underground project in Indonesia is advancing on schedule.
Freeport owns a 72 percent interest in its Morenci Operations and a 100 percent interest in its Safford Operations, which recently completed its Lone Star copper leach project. The Lone Star project has begun ramping up production and is on track to produce roughly 200 million pounds of copper annually. Freeport also expects to restart its Chino mine in New Mexico at a reduced rate of approximately 50 percent capacity, beginning in 2021.
The average prices for copper in the third-quarter 2020 were $3.01 per pound for copper, $1,902 per ounce for gold, and $9.23 per pound for molybdenum.
Freeport operates seven open-pit copper mines in North America, as well as two mines in South America (Cerro Verde in Peru – 53.36 percent interest, and El Abra in Chile – 51 percent interest.) Sales from South America mining are expected to be roughly 950 million pounds for 2020, compared to 1.2 billion pounds in 2019.
PT-Freeport Indonesia operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Papua, Indonesia. PT-FI produces a copper concentrate that contains significant quantities of gold and silver. Freeport McMoran has a 48.76 percent ownership interest in PT-FI and manages its mining operations. Under the terms of the shareholders’ agreement, Freeport McMoRan’s economic interest in PT-FI approximates 81 percent through 2022. PT-FI’s results are consolidated in Freeport McMoRan’s financial statements.
