UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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(Mark One)
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2019
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OR
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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Commission File Number: 001-11307-01
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Delaware
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74-2480931
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(State or other jurisdiction of
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(I.R.S. Employer Identification No.)
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incorporation or organization)
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333 North Central Avenue
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Phoenix, AZ
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85004-2189
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(Address of principal executive offices)
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(Zip Code)
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(602) 366-8100
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(Registrant’s telephone number, including area code)
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Large accelerated filer þ
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Accelerated filer ¨
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Non-accelerated filer ¨
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Smaller reporting company ¨
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Emerging growth company ¨
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.10 per share
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FCX
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The New York Stock Exchange
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Page
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Part I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements.
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March 31,
2019 |
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December 31,
2018 |
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(In millions)
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ASSETS
|
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Current assets:
|
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Cash and cash equivalents
|
$
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2,833
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$
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4,217
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Trade accounts receivable
|
781
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829
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Income and other tax receivables
|
410
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493
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Inventories:
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Materials and supplies, net
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1,595
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1,528
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Mill and leach stockpiles
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1,374
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1,453
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Product
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1,492
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1,778
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Other current assets
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560
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422
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Total current assets
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9,045
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10,720
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Property, plant, equipment and mine development costs, net
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28,497
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28,010
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Long-term mill and leach stockpiles
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1,343
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1,314
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Other assets
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2,174
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2,172
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Total assets
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$
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41,059
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$
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42,216
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LIABILITIES AND EQUITY
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Current liabilities:
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Accounts payable and accrued liabilities
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$
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2,599
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$
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2,625
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Accrued income taxes
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150
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165
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Current portion of environmental and asset retirement obligations
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422
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449
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Dividends payable
|
73
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73
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Current portion of debt
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3
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17
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Total current liabilities
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3,247
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3,329
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Long-term debt, less current portion
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9,902
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11,124
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Deferred income taxes
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4,067
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4,032
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Environmental and asset retirement obligations, less current portion
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3,632
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3,609
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Other liabilities
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2,370
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2,230
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Total liabilities
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23,218
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24,324
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Equity:
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Stockholders’ equity:
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Common stock
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158
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158
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Capital in excess of par value
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25,963
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26,013
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Accumulated deficit
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(12,010
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)
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(12,041
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)
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Accumulated other comprehensive loss
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(594
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)
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(605
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)
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Common stock held in treasury
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(3,734
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)
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(3,727
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)
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Total stockholders’ equity
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9,783
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9,798
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Noncontrolling interests
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8,058
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8,094
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Total equity
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17,841
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17,892
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Total liabilities and equity
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$
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41,059
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$
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42,216
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Three Months Ended
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||||||
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March 31,
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2019
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2018
|
||||
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(In millions, except per share amounts)
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||||||
Revenues
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$
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3,792
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$
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4,868
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Cost of sales:
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|
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Production and delivery
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2,919
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2,808
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Depreciation, depletion and amortization
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347
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451
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Metals inventory adjustments
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57
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—
|
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Total cost of sales
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3,323
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3,259
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Selling, general and administrative expenses
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112
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131
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Mining exploration and research expenses
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27
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21
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Environmental obligations and shutdown costs
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42
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9
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Net gain on sales of assets
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(33
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)
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(11
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)
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Total costs and expenses
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3,471
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3,409
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Operating income
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321
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1,459
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Interest expense, net
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(146
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)
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(151
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)
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Net loss on early extinguishment of debt
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(6
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)
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(1
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)
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Other income, net
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14
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29
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Income from continuing operations before income taxes and equity in affiliated
companies’ net losses
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183
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1,336
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Provision for income taxes
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(105
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)
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(506
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)
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Equity in affiliated companies’ net losses
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(3
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)
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(2
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)
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Net income from continuing operations
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75
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828
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Net gain (loss) from discontinued operations
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1
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(11
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)
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Net income
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76
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|
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817
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Net income attributable to noncontrolling interests
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(45
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)
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(125
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)
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Net income attributable to common stockholders
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$
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31
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$
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692
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Basic and diluted net income (loss) per share attributable to common stockholders:
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Continuing operations
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$
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0.02
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$
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0.48
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Discontinued operations
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—
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(0.01
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)
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$
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0.02
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$
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0.47
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Weighted-average common shares outstanding:
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Basic
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1,451
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1,449
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Diluted
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1,457
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1,458
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Dividends declared per share of common stock
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$
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0.05
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$
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0.05
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Three Months Ended
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||||||
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March 31,
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||||||
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2019
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2018
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(In millions)
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||||||
Net income
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$
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76
|
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$
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817
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Other comprehensive income, net of taxes:
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Defined benefit plans:
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Amortization of unrecognized amounts included in net periodic benefit costs
|
11
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12
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Foreign exchange losses
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—
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(1
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)
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||
Other comprehensive income
|
11
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11
|
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||||
Total comprehensive income
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87
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|
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828
|
|
||
Total comprehensive income attributable to noncontrolling interests
|
(45
|
)
|
|
(124
|
)
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||
Total comprehensive income attributable to common stockholders
|
$
|
42
|
|
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$
|
704
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Three Months Ended
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March 31,
|
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||||||
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2019
|
|
2018
|
|
||||
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(In millions)
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|
||||||
Cash flow from operating activities:
|
|
|
|
|
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Net income
|
$
|
76
|
|
|
$
|
817
|
|
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Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
347
|
|
|
451
|
|
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Metals inventory adjustments
|
57
|
|
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—
|
|
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Net gain on sales of assets
|
(33
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)
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(11
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)
|
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Stock-based compensation
|
29
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49
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Net charges for environmental and asset retirement obligations, including accretion
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64
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53
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Payments for environmental and asset retirement obligations
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(46
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)
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(38
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)
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Net charges for defined pension and postretirement plans
|
26
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18
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Pension plan contributions
|
(16
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)
|
|
(24
|
)
|
|
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Net loss on early extinguishment of debt
|
6
|
|
|
1
|
|
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||
Deferred income taxes
|
33
|
|
|
22
|
|
|
||
(Gain) loss on disposal of discontinued operations
|
(1
|
)
|
|
11
|
|
|
||
(Increase) decrease in long-term mill and leach stockpiles
|
(29
|
)
|
|
22
|
|
|
||
Other, net
|
48
|
|
|
19
|
|
|
||
Changes in working capital and other tax payments:
|
|
|
|
|
||||
Accounts receivable
|
19
|
|
|
136
|
|
|
||
Inventories
|
221
|
|
|
(142
|
)
|
|
||
Other current assets
|
42
|
|
|
(42
|
)
|
|
||
Accounts payable and accrued liabilities
|
(247
|
)
|
|
(96
|
)
|
|
||
Accrued income taxes and timing of other tax payments
|
(62
|
)
|
|
123
|
|
|
||
Net cash provided by operating activities
|
534
|
|
|
1,369
|
|
|
||
|
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
||||
North America copper mines
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(210
|
)
|
|
(92
|
)
|
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South America
|
(61
|
)
|
|
(67
|
)
|
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||
Indonesia
|
(319
|
)
|
|
(203
|
)
|
|
||
Molybdenum mines
|
(4
|
)
|
|
(1
|
)
|
|
||
Other
|
(28
|
)
|
|
(39
|
)
|
|
||
Proceeds from sales of oil and gas properties
|
84
|
|
|
—
|
|
|
||
Intangible water rights and other, net
|
(8
|
)
|
|
(90
|
)
|
|
||
Net cash used in investing activities
|
(546
|
)
|
|
(492
|
)
|
|
||
|
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
||||
Proceeds from debt
|
114
|
|
|
122
|
|
|
||
Repayments of debt
|
(1,356
|
)
|
|
(1,633
|
)
|
|
||
Cash dividends and distributions paid:
|
|
|
|
|
||||
Common stock
|
(73
|
)
|
|
—
|
|
|
||
Noncontrolling interests
|
(9
|
)
|
|
(80
|
)
|
|
||
Stock-based awards net (payments) proceeds
|
(7
|
)
|
|
3
|
|
|
||
Net cash used in financing activities
|
(1,331
|
)
|
|
(1,588
|
)
|
|
||
|
|
|
|
|
||||
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
|
(1,343
|
)
|
|
(711
|
)
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
4,455
|
|
|
4,710
|
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
|
$
|
3,112
|
|
|
$
|
3,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Accum-ulated Deficit
|
|
Accumu-
lated Other Compre- hensive Loss |
|
Common Stock
Held in Treasury
|
|
Total
Stock-holders’ Equity |
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
1,579
|
|
|
$
|
158
|
|
|
$
|
26,013
|
|
|
$
|
(12,041
|
)
|
|
$
|
(605
|
)
|
|
130
|
|
|
$
|
(3,727
|
)
|
|
$
|
9,798
|
|
|
$
|
8,094
|
|
|
$
|
17,892
|
|
Exercised and issued stock-based awards
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(7
|
)
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
(70
|
)
|
|
(143
|
)
|
||||||||
Changes in noncontrolling interests
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(11
|
)
|
|
(12
|
)
|
||||||||
Net income attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||||
Balance at March 31, 2019
|
1,582
|
|
|
$
|
158
|
|
|
$
|
25,963
|
|
|
$
|
(12,010
|
)
|
|
$
|
(594
|
)
|
|
131
|
|
|
$
|
(3,734
|
)
|
|
$
|
9,783
|
|
|
$
|
8,058
|
|
|
$
|
17,841
|
|
|
Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Accum-ulated Deficit
|
|
Accumu-
lated Other Compre- hensive Loss |
|
Common Stock
Held in Treasury
|
|
Total
Stock-holders’ Equity |
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017
|
1,578
|
|
|
$
|
158
|
|
|
$
|
26,751
|
|
|
$
|
(14,722
|
)
|
|
$
|
(487
|
)
|
|
130
|
|
|
$
|
(3,723
|
)
|
|
$
|
7,977
|
|
|
$
|
3,319
|
|
|
$
|
11,296
|
|
Exercised and issued stock-based awards
|
1
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||||
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
41
|
|
|
—
|
|
|
41
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
(173
|
)
|
|
(245
|
)
|
||||||||
Net income attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
692
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
692
|
|
|
—
|
|
|
692
|
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
(1
|
)
|
|
11
|
|
||||||||
Balance at March 31, 2018
|
1,579
|
|
|
$
|
158
|
|
|
$
|
26,729
|
|
|
$
|
(14,030
|
)
|
|
$
|
(475
|
)
|
|
130
|
|
|
$
|
(3,726
|
)
|
|
$
|
8,656
|
|
|
$
|
3,270
|
|
|
$
|
11,926
|
|
|
Three Months Ended
|
|
||||||
|
March 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
Net income from continuing operations
|
$
|
75
|
|
|
$
|
828
|
|
|
Net income from continuing operations attributable to noncontrolling interests
|
(45
|
)
|
|
(125
|
)
|
|
||
Undistributed earnings allocated to participating securities
|
(3
|
)
|
|
(4
|
)
|
|
||
Net income from continuing operations attributable to common stockholders
|
27
|
|
|
699
|
|
|
||
|
|
|
|
|
||||
Net income (loss) from discontinued operations attributable to common stockholders
|
1
|
|
|
(11
|
)
|
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
Net income attributable to common stockholders
|
$
|
28
|
|
|
$
|
688
|
|
|
|
|
|
|
|
||||
Basic weighted-average shares of common stock outstanding
|
1,451
|
|
|
1,449
|
|
|
||
Add shares issuable upon exercise or vesting of dilutive stock options and
restricted stock unitsa
|
6
|
|
|
9
|
|
|
||
Diluted weighted-average shares of common stock outstanding
|
1,457
|
|
|
1,458
|
|
|
||
|
|
|
|
|
||||
Basic and diluted net income (loss) per share attributable to common stockholders:
|
|
|
|
|
||||
Continuing operations
|
$
|
0.02
|
|
|
$
|
0.48
|
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
||
|
$
|
0.02
|
|
|
$
|
0.47
|
|
|
a.
|
Excludes approximately 3 million shares of common stock in first-quarter 2019 and 4 million in first-quarter 2018 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock that were anti-dilutive.
|
|
March 31,
2019 |
|
December 31, 2018
|
|
||||
Current inventories:
|
|
|
|
|
||||
Total materials and supplies, neta
|
$
|
1,595
|
|
|
$
|
1,528
|
|
|
|
|
|
|
|
||||
Mill stockpiles
|
$
|
247
|
|
|
$
|
282
|
|
|
Leach stockpiles
|
1,127
|
|
|
1,171
|
|
|
||
Total current mill and leach stockpiles
|
$
|
1,374
|
|
|
$
|
1,453
|
|
|
|
|
|
|
|
||||
Raw materials (primarily concentrate)
|
$
|
273
|
|
|
$
|
260
|
|
|
Work-in-process
|
137
|
|
|
192
|
|
|
||
Finished goods
|
1,082
|
|
|
1,326
|
|
|
||
Total product
|
$
|
1,492
|
|
|
$
|
1,778
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
265
|
|
|
$
|
265
|
|
|
Leach stockpiles
|
1,078
|
|
|
1,049
|
|
|
||
Total long-term mill and leach stockpilesb
|
$
|
1,343
|
|
|
$
|
1,314
|
|
|
a.
|
Materials and supplies inventory was net of obsolescence reserves totaling $23 million at March 31, 2019, and $24 million at December 31, 2018.
|
b.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
Three Months Ended
|
|
||||||
|
March 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
U.S. operations
|
$
|
2
|
|
|
$
|
3
|
|
|
International operations
|
(107
|
)
|
|
(509
|
)
|
|
||
Total
|
$
|
(105
|
)
|
|
$
|
(506
|
)
|
|
|
|
March 31,
2019 |
|
December 31, 2018
|
||||
Senior notes and debentures:
|
|
|
|
|
||||
Issued by FCX
|
|
$
|
8,595
|
|
|
$
|
9,594
|
|
Issued by Freeport Minerals Corporation (FMC)
|
|
357
|
|
|
358
|
|
||
Cerro Verde credit facility
|
|
825
|
|
|
1,023
|
|
||
Other
|
|
128
|
|
|
166
|
|
||
Total debt
|
|
9,905
|
|
|
11,141
|
|
||
Less current portion of debt
|
|
(3
|
)
|
|
(17
|
)
|
||
Long-term debt
|
|
$
|
9,902
|
|
|
$
|
11,124
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Copper futures and swap contracts:
|
|
|
|
|
||||
Unrealized gains (losses):
|
|
|
|
|
||||
Derivative financial instruments
|
|
$
|
18
|
|
|
$
|
(15
|
)
|
Hedged item – firm sales commitments
|
|
(18
|
)
|
|
15
|
|
||
|
|
|
|
|
||||
Realized gains:
|
|
|
|
|
||||
Matured derivative financial instruments
|
|
2
|
|
|
2
|
|
|
Open Positions
|
|
Average Price
Per Unit
|
|
Maturities Through
|
|||||||
|
|
Contract
|
|
Market
|
|
|||||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
613
|
|
|
$
|
2.83
|
|
|
$
|
2.94
|
|
|
September 2019
|
Gold (thousands of ounces)
|
131
|
|
|
1,300
|
|
|
1,296
|
|
|
May 2019
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
100
|
|
|
2.81
|
|
|
2.94
|
|
|
July 2019
|
||
Cobalt (millions of pounds)
|
3
|
|
|
14.98
|
|
|
9.24
|
|
|
June 2019
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Embedded derivatives in provisional sales contracts:a
|
|
|
|
|
||||
Copper
|
|
$
|
122
|
|
|
$
|
(135
|
)
|
Gold and other metals
|
|
(2
|
)
|
|
18
|
|
||
Copper forward contractsb
|
|
1
|
|
|
2
|
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
|
March 31,
2019 |
|
December 31, 2018
|
||||
Commodity Derivative Assets:
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||
Copper futures and swap contracts
|
|
$
|
9
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional copper, gold and cobalt
|
|
|
|
|
||||
sales/purchase contracts
|
|
85
|
|
|
23
|
|
||
Copper forward contracts
|
|
1
|
|
|
—
|
|
||
Total derivative assets
|
|
$
|
95
|
|
|
$
|
23
|
|
|
|
|
|
|
||||
Commodity Derivative Liabilities:
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||
Copper futures and swap contracts
|
|
$
|
—
|
|
|
$
|
9
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional copper, gold and cobalt
|
|
|
|
|
||||
sales/purchase contracts
|
|
14
|
|
|
39
|
|
||
Copper forward contracts
|
|
1
|
|
|
—
|
|
||
Total derivative liabilities
|
|
$
|
15
|
|
|
$
|
48
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
85
|
|
|
$
|
23
|
|
|
$
|
14
|
|
|
$
|
39
|
|
Copper derivatives
|
|
10
|
|
|
—
|
|
|
1
|
|
|
9
|
|
||||
|
|
95
|
|
|
23
|
|
|
15
|
|
|
48
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
1
|
|
|
7
|
|
|
1
|
|
|
7
|
|
||||
Copper derivatives
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
|
|
2
|
|
|
7
|
|
|
2
|
|
|
7
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
84
|
|
|
16
|
|
|
13
|
|
|
32
|
|
||||
Copper derivatives
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
|
|
$
|
93
|
|
|
$
|
16
|
|
|
$
|
13
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
70
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
24
|
|
Other current assets
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
14
|
|
|
13
|
|
|
13
|
|
|
17
|
|
||||
|
|
$
|
93
|
|
|
$
|
16
|
|
|
$
|
13
|
|
|
$
|
41
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Balance sheet components:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
2,833
|
|
|
$
|
4,217
|
|
Restricted cash and restricted cash equivalents included in:
|
|
|
|
|
||||
Other current assets
|
|
115
|
|
|
110
|
|
||
Other assets
|
|
164
|
|
|
128
|
|
||
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
|
|
$
|
3,112
|
|
|
$
|
4,455
|
|
|
At March 31, 2019
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
$
|
25
|
|
|
$
|
25
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
29
|
|
|
29
|
|
|
25
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
57
|
|
|
57
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
||||||
Government bonds and notes
|
33
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||||
Corporate bonds
|
29
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||||
Asset-backed securities
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Money market funds
|
6
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
186
|
|
|
186
|
|
|
57
|
|
|
6
|
|
|
123
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
|
85
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
||||||
Copper futures and swap contractsc
|
9
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
||||||
Copper forward contractsc
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Contingent consideration for the sales of TFHL
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and onshore California oil and gas propertiesa
|
87
|
|
|
87
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
—
|
|
||||||
Total
|
182
|
|
|
182
|
|
|
—
|
|
|
8
|
|
|
174
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the sale of the
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deepwater GOM oil and gas propertiesa
|
138
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:c
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
Copper forward contracts
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portiond
|
9,905
|
|
|
9,659
|
|
|
—
|
|
|
—
|
|
|
9,659
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2018
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
$
|
25
|
|
|
$
|
25
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
29
|
|
|
29
|
|
|
25
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
55
|
|
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
||||||
Government bonds and notes
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||||
Corporate bonds
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||||
Asset-backed securities
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Money market funds
|
5
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
181
|
|
|
181
|
|
|
55
|
|
|
5
|
|
|
121
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||||
Contingent consideration for the sales of TFHL
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and onshore California oil and gas propertiesa
|
73
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
||||||
Total
|
96
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the sale of the
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deepwater GOM oil and gas propertiesa
|
143
|
|
|
127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:c
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
|
$
|
39
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
Copper futures and swap contracts
|
9
|
|
|
9
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
—
|
|
||||||
Total
|
48
|
|
|
48
|
|
|
—
|
|
|
7
|
|
|
41
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portiond
|
11,141
|
|
|
10,238
|
|
|
—
|
|
|
—
|
|
|
10,238
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Current portion included in other current assets and long-term portion included in other assets.
|
b.
|
Excludes time deposits (which approximated fair value) included in (i) other current assets of $115 million at March 31, 2019, and $109 million at December 31, 2018, and (ii) other assets of $163 million at March 31, 2019, and $126 million at December 31, 2018, primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter in Indonesia and PT-FI’s closure and reclamation guarantees.
|
c.
|
Refer to Note 6 for further discussion and balance sheet classifications.
|
d.
|
Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.
|
Fair value at January 1, 2019
|
$
|
127
|
|
|
Net unrealized loss related to assets still held at the end of the period
|
(5
|
)
|
|
|
Settlements
|
(5
|
)
|
|
|
Fair value at March 31, 2019
|
$
|
117
|
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Copper:
|
|
|
|
||||
Concentrate
|
$
|
1,165
|
|
|
$
|
1,647
|
|
Cathode
|
859
|
|
|
1,185
|
|
||
Rod and other refined copper products
|
507
|
|
|
670
|
|
||
Purchased coppera
|
337
|
|
|
238
|
|
||
Gold
|
391
|
|
|
808
|
|
||
Molybdenum
|
288
|
|
|
286
|
|
||
Otherb
|
277
|
|
|
398
|
|
||
Adjustments to revenues:
|
|
|
|
||||
Treatment charges
|
(105
|
)
|
|
(132
|
)
|
||
Royalty expensec
|
(30
|
)
|
|
(69
|
)
|
||
Export dutiesd
|
(17
|
)
|
|
(46
|
)
|
||
Revenues from contracts with customers
|
3,672
|
|
|
4,985
|
|
||
Embedded derivativese
|
120
|
|
|
(117
|
)
|
||
Total consolidated revenues
|
$
|
3,792
|
|
|
$
|
4,868
|
|
a.
|
FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
|
b.
|
Primarily includes revenues associated with cobalt and silver.
|
c.
|
Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
|
d.
|
Reflects PT-FI export duties.
|
e.
|
Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Corporate,
|
|
|
|
||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America Mining
|
|
|
|
|
|
|
|
Copper
|
|
Other
|
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Cerro
|
|
|
|
|
|
Indonesia
|
|
Molybdenum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
FCX
|
|
||||||||||||||||||||||||
|
Morenci
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
|
|
Total
|
|
Mining
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Total
|
|
||||||||||||||||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Unaffiliated customers
|
$
|
12
|
|
|
$
|
95
|
|
|
$
|
107
|
|
|
$
|
727
|
|
|
$
|
98
|
|
|
$
|
825
|
|
|
$
|
705
|
|
a
|
$
|
—
|
|
|
$
|
1,128
|
|
|
$
|
571
|
|
|
$
|
456
|
|
b
|
$
|
3,792
|
|
|
Intersegment
|
458
|
|
|
469
|
|
|
927
|
|
|
126
|
|
|
—
|
|
|
126
|
|
|
58
|
|
|
91
|
|
|
6
|
|
|
5
|
|
|
(1,213
|
)
|
|
—
|
|
|
||||||||||||
Production and delivery
|
295
|
|
|
448
|
|
|
743
|
|
|
439
|
|
|
100
|
|
|
539
|
|
|
556
|
|
|
71
|
|
|
1,133
|
|
|
552
|
|
|
(675
|
)
|
|
2,919
|
|
|
||||||||||||
Depreciation, depletion and amortization
|
40
|
|
|
43
|
|
|
83
|
|
|
100
|
|
|
14
|
|
|
114
|
|
|
105
|
|
|
16
|
|
|
2
|
|
|
7
|
|
|
20
|
|
|
347
|
|
|
||||||||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
57
|
|
|
||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
73
|
|
|
112
|
|
|
||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
27
|
|
|
||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
|
||||||||||||
Net gain on sales of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
|
||||||||||||
Operating income (loss)
|
134
|
|
|
72
|
|
|
206
|
|
|
312
|
|
|
(16
|
)
|
|
296
|
|
|
72
|
|
|
4
|
|
|
(1
|
)
|
|
12
|
|
|
(268
|
)
|
|
321
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
—
|
|
|
1
|
|
|
29
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
110
|
|
|
146
|
|
|
||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
(5
|
)
|
|
105
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(27
|
)
|
|
105
|
|
|
||||||||||||
Total assets at March 31, 2019
|
2,904
|
|
|
4,760
|
|
|
7,664
|
|
|
8,674
|
|
|
1,720
|
|
|
10,394
|
|
|
15,792
|
|
|
1,785
|
|
|
232
|
|
|
771
|
|
|
4,421
|
|
|
41,059
|
|
|
||||||||||||
Capital expenditures
|
62
|
|
|
148
|
|
|
210
|
|
|
56
|
|
|
5
|
|
|
61
|
|
|
319
|
|
|
4
|
|
|
1
|
|
|
4
|
|
|
23
|
|
|
622
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Unaffiliated customers
|
$
|
3
|
|
|
$
|
15
|
|
|
$
|
18
|
|
|
$
|
625
|
|
|
$
|
150
|
|
|
$
|
775
|
|
|
$
|
1,521
|
|
a
|
$
|
—
|
|
|
$
|
1,385
|
|
|
$
|
577
|
|
|
$
|
592
|
|
b
|
$
|
4,868
|
|
|
Intersegment
|
601
|
|
|
689
|
|
|
1,290
|
|
|
102
|
|
|
—
|
|
|
102
|
|
|
52
|
|
|
95
|
|
|
8
|
|
|
2
|
|
|
(1,549
|
)
|
|
—
|
|
|
||||||||||||
Production and delivery
|
290
|
|
|
501
|
|
|
791
|
|
|
427
|
|
|
116
|
|
|
543
|
|
|
457
|
|
|
67
|
|
|
1,388
|
|
|
556
|
|
|
(994
|
)
|
|
2,808
|
|
|
||||||||||||
Depreciation, depletion and amortization
|
46
|
|
|
48
|
|
|
94
|
|
|
105
|
|
|
22
|
|
|
127
|
|
|
181
|
|
|
19
|
|
|
2
|
|
|
7
|
|
|
21
|
|
|
451
|
|
|
||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
2
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
81
|
|
|
131
|
|
|
||||||||||||
Mining exploration and research expenses
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
21
|
|
|
||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
||||||||||||
Net gain on sales of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|
||||||||||||
Operating income (loss)
|
267
|
|
|
152
|
|
|
419
|
|
|
193
|
|
|
12
|
|
|
205
|
|
|
896
|
|
|
9
|
|
|
3
|
|
|
10
|
|
|
(83
|
)
|
|
1,459
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
—
|
|
|
1
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
128
|
|
|
151
|
|
|
||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
4
|
|
|
72
|
|
|
401
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
32
|
|
|
506
|
|
|
||||||||||||
Total assets at March 31, 2018
|
2,817
|
|
|
4,340
|
|
|
7,157
|
|
|
8,740
|
|
|
1,715
|
|
|
10,455
|
|
|
10,992
|
|
|
1,836
|
|
|
290
|
|
|
809
|
|
|
5,098
|
|
|
36,637
|
|
|
||||||||||||
Capital expenditures
|
47
|
|
|
45
|
|
|
92
|
|
|
63
|
|
|
4
|
|
|
67
|
|
|
203
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
34
|
|
|
402
|
|
|
a.
|
Includes PT-FI’s sales to PT Smelting totaling $409 million in first-quarter 2019 and $628 million in first-quarter 2018.
|
b.
|
Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
$
|
253
|
|
|
$
|
516
|
|
|
$
|
8,801
|
|
|
$
|
(525
|
)
|
|
$
|
9,045
|
|
Property, plant, equipment and mine development costs, net
|
19
|
|
|
6
|
|
|
28,470
|
|
|
2
|
|
|
28,497
|
|
|||||
Investments in consolidated subsidiaries
|
17,935
|
|
|
—
|
|
|
—
|
|
|
(17,935
|
)
|
|
—
|
|
|||||
Other assets
|
977
|
|
|
23
|
|
|
3,250
|
|
|
(733
|
)
|
|
3,517
|
|
|||||
Total assets
|
$
|
19,184
|
|
|
$
|
545
|
|
|
$
|
40,521
|
|
|
$
|
(19,191
|
)
|
|
$
|
41,059
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
199
|
|
|
$
|
30
|
|
|
$
|
3,579
|
|
|
$
|
(561
|
)
|
|
$
|
3,247
|
|
Long-term debt, less current portion
|
8,595
|
|
|
7,005
|
|
|
5,563
|
|
|
(11,261
|
)
|
|
9,902
|
|
|||||
Deferred income taxes
|
519
|
|
a
|
—
|
|
|
3,548
|
|
|
—
|
|
|
4,067
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
230
|
|
|
3,402
|
|
|
—
|
|
|
3,632
|
|
|||||
Investments in consolidated subsidiaries
|
—
|
|
|
574
|
|
|
10,634
|
|
|
(11,208
|
)
|
|
—
|
|
|||||
Other liabilities
|
88
|
|
|
3,340
|
|
|
2,428
|
|
|
(3,486
|
)
|
|
2,370
|
|
|||||
Total liabilities
|
9,401
|
|
|
11,179
|
|
|
29,154
|
|
|
(26,516
|
)
|
|
23,218
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity
|
9,783
|
|
|
(10,634
|
)
|
|
8,721
|
|
|
1,913
|
|
|
9,783
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
2,646
|
|
|
5,412
|
|
|
8,058
|
|
|||||
Total equity
|
9,783
|
|
|
(10,634
|
)
|
|
11,367
|
|
|
7,325
|
|
|
17,841
|
|
|||||
Total liabilities and equity
|
$
|
19,184
|
|
|
$
|
545
|
|
|
$
|
40,521
|
|
|
$
|
(19,191
|
)
|
|
$
|
41,059
|
|
a.
|
All U.S.-related deferred income taxes are recorded at the parent company.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
$
|
309
|
|
|
$
|
620
|
|
|
$
|
10,376
|
|
|
$
|
(585
|
)
|
|
$
|
10,720
|
|
Property, plant, equipment and mine development costs, net
|
19
|
|
|
7
|
|
|
27,984
|
|
|
—
|
|
|
28,010
|
|
|||||
Investments in consolidated subsidiaries
|
19,064
|
|
|
—
|
|
|
—
|
|
|
(19,064
|
)
|
|
—
|
|
|||||
Other assets
|
880
|
|
|
23
|
|
|
3,218
|
|
|
(635
|
)
|
|
3,486
|
|
|||||
Total assets
|
20,272
|
|
|
650
|
|
|
41,578
|
|
|
(20,284
|
)
|
|
42,216
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
245
|
|
|
$
|
34
|
|
|
$
|
3,667
|
|
|
$
|
(617
|
)
|
|
$
|
3,329
|
|
Long-term debt, less current portion
|
9,594
|
|
|
6,984
|
|
|
5,649
|
|
|
(11,103
|
)
|
|
11,124
|
|
|||||
Deferred income taxes
|
524
|
|
a
|
—
|
|
|
3,508
|
|
|
—
|
|
|
4,032
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
227
|
|
|
3,382
|
|
|
—
|
|
|
3,609
|
|
|||||
Investments in consolidated subsidiaries
|
—
|
|
|
578
|
|
|
10,513
|
|
|
(11,091
|
)
|
|
—
|
|
|||||
Other liabilities
|
111
|
|
|
3,340
|
|
|
2,265
|
|
|
(3,486
|
)
|
|
2,230
|
|
|||||
Total liabilities
|
10,474
|
|
|
11,163
|
|
|
28,984
|
|
|
(26,297
|
)
|
|
24,324
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity
|
9,798
|
|
|
(10,513
|
)
|
|
9,912
|
|
|
601
|
|
|
9,798
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
2,682
|
|
|
5,412
|
|
|
8,094
|
|
|||||
Total equity
|
9,798
|
|
|
(10,513
|
)
|
|
12,594
|
|
|
6,013
|
|
|
17,892
|
|
|||||
Total liabilities and equity
|
20,272
|
|
|
650
|
|
|
41,578
|
|
|
(20,284
|
)
|
|
42,216
|
|
a.
|
All U.S.-related deferred income taxes are recorded at the parent company.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3,789
|
|
|
$
|
—
|
|
|
$
|
3,792
|
|
Total costs and expenses
|
13
|
|
|
—
|
|
|
3,460
|
|
|
(2
|
)
|
|
3,471
|
|
|||||
Operating (loss) income
|
(13
|
)
|
|
3
|
|
|
329
|
|
|
2
|
|
|
321
|
|
|||||
Interest expense, net
|
(90
|
)
|
|
(86
|
)
|
|
(109
|
)
|
|
139
|
|
|
(146
|
)
|
|||||
Other income (expense), net
|
65
|
|
|
—
|
|
|
16
|
|
|
(73
|
)
|
|
8
|
|
|||||
Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
|
(38
|
)
|
|
(83
|
)
|
|
236
|
|
|
68
|
|
|
183
|
|
|||||
(Provision for) benefit from income taxes
|
(1
|
)
|
|
18
|
|
|
(122
|
)
|
|
—
|
|
|
(105
|
)
|
|||||
Equity in affiliated companies’ net earnings (losses)
|
70
|
|
|
5
|
|
|
(63
|
)
|
|
(15
|
)
|
|
(3
|
)
|
|||||
Net income (loss) from continuing operations
|
31
|
|
|
(60
|
)
|
|
51
|
|
|
53
|
|
|
75
|
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Net income (loss)
|
31
|
|
|
(60
|
)
|
|
52
|
|
|
53
|
|
|
76
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
(11
|
)
|
|
(45
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
31
|
|
|
$
|
(60
|
)
|
|
$
|
18
|
|
|
$
|
42
|
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
11
|
|
|
—
|
|
|
11
|
|
|
(11
|
)
|
|
11
|
|
|||||
Total comprehensive income (loss)
|
$
|
42
|
|
|
$
|
(60
|
)
|
|
$
|
29
|
|
|
$
|
31
|
|
|
$
|
42
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
4,853
|
|
|
$
|
—
|
|
|
$
|
4,868
|
|
Total costs and expenses
|
9
|
|
|
8
|
|
|
3,393
|
|
|
(1
|
)
|
|
3,409
|
|
|||||
Operating (loss) income
|
(9
|
)
|
|
7
|
|
|
1,460
|
|
|
1
|
|
|
1,459
|
|
|||||
Interest expense, net
|
(104
|
)
|
|
(64
|
)
|
|
(85
|
)
|
|
102
|
|
|
(151
|
)
|
|||||
Other income (expense), net
|
101
|
|
|
—
|
|
|
29
|
|
|
(102
|
)
|
|
28
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
|
(12
|
)
|
|
(57
|
)
|
|
1,404
|
|
|
1
|
|
|
1,336
|
|
|||||
(Provision for) benefit from income taxes
|
(83
|
)
|
|
12
|
|
|
(435
|
)
|
|
—
|
|
|
(506
|
)
|
|||||
Equity in affiliated companies’ net earnings (losses)
|
787
|
|
|
(6
|
)
|
|
(34
|
)
|
|
(749
|
)
|
|
(2
|
)
|
|||||
Net income (loss) from continuing operations
|
692
|
|
|
(51
|
)
|
|
935
|
|
|
(748
|
)
|
|
828
|
|
|||||
Net loss from discontinued operations
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||||
Net income (loss)
|
692
|
|
|
(51
|
)
|
|
924
|
|
|
(748
|
)
|
|
817
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(71
|
)
|
|
(54
|
)
|
|
(125
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
692
|
|
|
$
|
(51
|
)
|
|
$
|
853
|
|
|
$
|
(802
|
)
|
|
$
|
692
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
12
|
|
|
—
|
|
|
12
|
|
|
(12
|
)
|
|
12
|
|
|||||
Total comprehensive income (loss)
|
$
|
704
|
|
|
$
|
(51
|
)
|
|
$
|
865
|
|
|
$
|
(814
|
)
|
|
$
|
704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
19
|
|
|
$
|
(106
|
)
|
|
$
|
621
|
|
|
$
|
—
|
|
|
$
|
534
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
—
|
|
|
(622
|
)
|
|
—
|
|
|
(622
|
)
|
|||||
Intercompany loans
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
159
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
1,224
|
|
|
—
|
|
|
25
|
|
|
(1,251
|
)
|
|
(2
|
)
|
|||||
Asset sales and other, net
|
(1
|
)
|
|
84
|
|
|
(5
|
)
|
|
—
|
|
|
78
|
|
|||||
Net cash provided by (used in) investing activities
|
1,064
|
|
|
84
|
|
|
(602
|
)
|
|
(1,092
|
)
|
|
(546
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
—
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
114
|
|
|||||
Repayments of debt
|
(1,003
|
)
|
|
—
|
|
|
(353
|
)
|
|
—
|
|
|
(1,356
|
)
|
|||||
Intercompany loans
|
—
|
|
|
22
|
|
|
137
|
|
|
(159
|
)
|
|
—
|
|
|||||
Cash dividends paid and contributions received, net
|
(73
|
)
|
|
—
|
|
|
(1,242
|
)
|
|
1,233
|
|
|
(82
|
)
|
|||||
Other, net
|
(7
|
)
|
|
—
|
|
|
(18
|
)
|
|
18
|
|
|
(7
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(1,083
|
)
|
|
22
|
|
|
(1,362
|
)
|
|
1,092
|
|
|
(1,331
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
|
—
|
|
|
—
|
|
|
(1,343
|
)
|
|
—
|
|
|
(1,343
|
)
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
—
|
|
|
—
|
|
|
4,455
|
|
|
—
|
|
|
4,455
|
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,112
|
|
|
$
|
—
|
|
|
$
|
3,112
|
|
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
(156
|
)
|
|
$
|
(70
|
)
|
|
$
|
1,595
|
|
|
$
|
—
|
|
|
$
|
1,369
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
—
|
|
|
(402
|
)
|
|
—
|
|
|
(402
|
)
|
|||||
Intercompany loans
|
(184
|
)
|
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
1,746
|
|
|
—
|
|
|
23
|
|
|
(1,769
|
)
|
|
—
|
|
|||||
Asset sales and other, net
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
(90
|
)
|
|||||
Net cash provided by (used in) investing activities
|
1,562
|
|
|
—
|
|
|
(469
|
)
|
|
(1,585
|
)
|
|
(492
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
|||||
Repayments of debt
|
(1,409
|
)
|
|
—
|
|
|
(224
|
)
|
|
—
|
|
|
(1,633
|
)
|
|||||
Intercompany loans
|
—
|
|
|
62
|
|
|
122
|
|
|
(184
|
)
|
|
—
|
|
|||||
Cash dividends paid and contributions received, net
|
—
|
|
|
—
|
|
|
(1,835
|
)
|
|
1,755
|
|
|
(80
|
)
|
|||||
Other, net
|
3
|
|
|
—
|
|
|
(14
|
)
|
|
14
|
|
|
3
|
|
|||||
Net cash (used in) provided by financing activities
|
(1,406
|
)
|
|
62
|
|
|
(1,829
|
)
|
|
1,585
|
|
|
(1,588
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
|
—
|
|
|
(8
|
)
|
|
(703
|
)
|
|
—
|
|
|
(711
|
)
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
—
|
|
|
8
|
|
|
4,702
|
|
|
—
|
|
|
4,710
|
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,999
|
|
|
$
|
—
|
|
|
$
|
3,999
|
|
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)
|
$
|
245
|
|
|
|
||
Short-term lease liabilities (included in accounts payable and accrued liabilities)
|
$
|
33
|
|
Long-term lease liabilities (included in other liabilities)
|
223
|
|
|
Total lease liabilities
|
$
|
256
|
|
Operating leases
|
$
|
12
|
|
Variable and short-term leases
|
21
|
|
|
Total lease costs
|
$
|
33
|
|
Remaining nine months of 2019
|
$
|
36
|
|
2020
|
45
|
|
|
2021
|
39
|
|
|
2022
|
33
|
|
|
2023
|
30
|
|
|
Thereafter
|
155
|
|
|
Total payments
|
338
|
|
|
Less amount representing interest
|
(82
|
)
|
|
Present value of net minimum lease payments
|
256
|
|
|
Less current portion
|
(33
|
)
|
|
Long-term portion
|
$
|
223
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Copper (millions of recoverable pounds):
|
|
|
|
North America copper mines
|
1,375
|
|
|
South America mining
|
1,250
|
|
|
Indonesia mining
|
625
|
|
|
Total
|
3,250
|
|
|
|
|
|
|
Gold (thousands of recoverable ounces)
|
832
|
|
|
|
|
|
|
Molybdenum (millions of recoverable pounds)
|
94
|
|
a
|
a.
|
Projected molybdenum sales include 36 million pounds produced by our Molybdenum mines and 58 million pounds produced by our North America and South America copper mines.
|
|
Three Months Ended March 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||
Revenuesa,b
|
$
|
3,792
|
|
|
$
|
4,868
|
|
|
Operating incomea,c
|
$
|
321
|
|
d
|
$
|
1,459
|
|
|
Net income from continuing operationse
|
$
|
75
|
|
|
$
|
828
|
|
f
|
Net gain (loss) from discontinued operationsg
|
$
|
1
|
|
|
$
|
(11
|
)
|
|
Net income attributable to common stock
|
$
|
31
|
|
|
$
|
692
|
|
|
Diluted net income (loss) per share of common stock:
|
|
|
|
|
||||
Continuing operations
|
$
|
0.02
|
|
|
$
|
0.48
|
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
||
|
$
|
0.02
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
||||
Diluted weighted-average common shares outstanding
|
1,457
|
|
|
1,458
|
|
|
||
|
|
|
|
|
||||
Operating cash flowsh
|
$
|
534
|
|
|
$
|
1,369
|
|
|
Capital expenditures
|
$
|
622
|
|
|
$
|
402
|
|
|
At March 31:
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,833
|
|
|
$
|
3,749
|
|
|
Total debt, including current portion
|
$
|
9,905
|
|
|
$
|
11,718
|
|
|
|
|
|
|
|
a.
|
Refer to Note 9 for a summary of revenues and operating income by operating division.
|
b.
|
Includes adjustments to embedded derivatives for provisionally priced concentrate and cathode sales (refer to Note 6).
|
c.
|
Includes net gains on sales of assets totaling $33 million ($33 million to net income attributable to common stock or $0.02 per share) in first-quarter 2019, and $11 million ($11 million to net income attributable to common stock or $0.01 per share) in first-quarter 2018.
|
d.
|
Includes charges totaling $114 million ($71 million to net income attributable to common stock or $0.05 per share), consisting of (i) $57 million for cobalt inventory adjustments, (ii) $35 million for environmental obligations and related litigation reserves and (iii) $22 million of other charges primarily associated with weather-related issues at El Abra and for non-recurring employee costs at PT-FI.
|
e.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to “Operations – Smelting & Refining” for a summary of net impacts from changes in these deferrals.
|
f.
|
Includes interest received with the refund of PT-FI’s prior-years’ tax receivables totaling $24 million ($13 million to net income attributable to common stock or $0.01 per share).
|
g.
|
Primarily reflects adjustments to the estimated fair value of contingent consideration related to the November 2016 sale of our interest in TF Holdings Limited, which will continue to be adjusted through December 31, 2019.
|
h.
|
Net of working capital uses and timing of other tax payments of $27 million in first-quarter 2019 and $21 million in first-quarter 2018.
|
|
Three Months Ended March 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
SUMMARY OPERATING DATA
|
|
|
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
780
|
|
|
952
|
|
|
||
Sales, excluding purchases
|
784
|
|
|
993
|
|
|
||
Average realized price per pound
|
$
|
2.90
|
|
|
$
|
3.11
|
|
|
Site production and delivery costs per pounda
|
$
|
2.17
|
|
|
$
|
1.67
|
|
|
Unit net cash costs per pounda
|
$
|
1.78
|
|
|
$
|
0.98
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
||||
Production
|
166
|
|
|
599
|
|
|
||
Sales, excluding purchases
|
242
|
|
|
610
|
|
|
||
Average realized price per ounce
|
$
|
1,291
|
|
|
$
|
1,312
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
23
|
|
|
22
|
|
|
||
Sales, excluding purchases
|
22
|
|
|
24
|
|
|
||
Average realized price per pound
|
$
|
12.69
|
|
|
$
|
11.95
|
|
|
a.
|
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”
|
|
|
Three Months Ended March 31
|
||
|
|
|
||
Consolidated revenues - 2018 period
|
|
$
|
4,868
|
|
Lower sales volumes:
|
|
|
||
Copper
|
|
(650
|
)
|
|
Gold
|
|
(482
|
)
|
|
Molybdenum
|
|
(22
|
)
|
|
(Lower) higher average realized prices:
|
|
|
||
Copper
|
|
(165
|
)
|
|
Gold
|
|
(5
|
)
|
|
Molybdenum
|
|
16
|
|
|
Adjustments for prior period provisionally priced copper sales
|
|
148
|
|
|
Higher revenues from purchased copper
|
|
99
|
|
|
Lower royalties and export duties
|
|
68
|
|
|
Other, including intercompany eliminations
|
|
(83
|
)
|
|
Consolidated revenues - 2019 period
|
|
$
|
3,792
|
|
|
|
|
|
Three Months Ended March 31,
|
|
||||||||||||||||||
|
2019
|
|
2018
|
|
||||||||||||||||
|
Income
(Loss)a
|
|
Effective
Tax Rate
|
|
Income Tax (Provision) Benefit
|
|
Incomea
|
|
Effective
Tax Rate
|
|
Income Tax (Provision) Benefit
|
|
||||||||
U.S.b
|
$
|
(97
|
)
|
|
1%
|
|
$
|
1
|
|
|
$
|
170
|
|
|
(2)%
|
|
$
|
4
|
|
|
South America
|
263
|
|
|
40%
|
|
(105
|
)
|
|
183
|
|
|
39%
|
|
(72
|
)
|
|
||||
Indonesia
|
79
|
|
|
33%
|
|
(26
|
)
|
c
|
933
|
|
|
43%
|
|
(401
|
)
|
|
||||
Eliminations and other
|
(62
|
)
|
|
N/A
|
|
10
|
|
|
50
|
|
|
N/A
|
|
(3
|
)
|
|
||||
Rate adjustmentd
|
—
|
|
|
N/A
|
|
15
|
|
|
—
|
|
|
N/A
|
|
(34
|
)
|
|
||||
Consolidated FCX
|
$
|
183
|
|
|
57%
|
e
|
$
|
(105
|
)
|
|
$
|
1,336
|
|
|
38%
|
|
$
|
(506
|
)
|
|
a.
|
Represents income (loss) from continuing operations before income taxes and equity in affiliated companies’ net losses.
|
b.
|
In addition to our North America mining operations, the U.S. jurisdiction reflects corporate-level expenses, which include interest expense associated with senior notes, general and administrative expenses, and environmental obligations and shutdown costs.
|
c.
|
Includes a tax credit of $8 million ($6 million net of noncontrolling interest) associated with the reduction in PT-FI's statutory tax rates in accordance with its special mining license (IUPK).
|
d.
|
In accordance with applicable accounting rules, we adjust our interim provision for income taxes to equal our consolidated tax rate.
|
e.
|
Our first-quarter 2019 consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate, excluding the U.S. jurisdiction. Because our U.S. jurisdiction generated net losses in first-quarter 2019 that will not result in a realized tax benefit, applicable accounting rules require us to adjust our estimated annual effective tax rate to exclude the impact of U.S. net losses.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating Data, Net of Joint Venture Interests
|
|
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
||||
Production
|
336
|
|
|
348
|
|
||
Sales, excluding purchases
|
320
|
|
|
384
|
|
||
Average realized price per pound
|
$
|
2.85
|
|
|
$
|
3.16
|
|
|
|
|
|
||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
||||
Productiona
|
7
|
|
|
7
|
|
||
|
|
|
|
||||
100% Operating Data
|
|
|
|
||||
Leach operations
|
|
|
|
||||
Leach ore placed in stockpiles (metric tons per day)
|
705,000
|
|
|
674,600
|
|
||
Average copper ore grade (percent)
|
0.23
|
|
|
0.27
|
|
||
Copper production (millions of recoverable pounds)
|
226
|
|
|
239
|
|
||
|
|
|
|
||||
Mill operations
|
|
|
|
||||
Ore milled (metric tons per day)
|
315,600
|
|
|
288,600
|
|
||
Average ore grade (percent):
|
|
|
|
||||
Copper
|
0.33
|
|
|
0.35
|
|
||
Molybdenum
|
0.02
|
|
|
0.02
|
|
||
Copper recovery rate (percent)
|
87.8
|
|
|
88.0
|
|
||
Copper production (millions of recoverable pounds)
|
176
|
|
|
174
|
|
a.
|
Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the North America copper mines.
|
|
Three Months Ended March 31,
|
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denuma
|
|
|
Copper
|
|
Molyb-
denuma
|
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.85
|
|
|
$
|
2.85
|
|
|
$
|
11.68
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
10.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
2.06
|
|
|
1.92
|
|
|
6.98
|
|
|
1.84
|
|
|
1.73
|
|
|
7.81
|
|
|
||||||
By-product credits
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
|
(0.20
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
0.10
|
|
|
0.09
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.91
|
|
|
2.03
|
|
|
6.98
|
|
|
1.74
|
|
|
1.82
|
|
|
7.81
|
|
|
||||||
DD&A
|
0.26
|
|
|
0.24
|
|
|
0.44
|
|
|
0.25
|
|
|
0.23
|
|
|
0.66
|
|
|
||||||
Noncash and other costs, net
|
0.07
|
|
|
0.07
|
|
|
0.14
|
|
|
0.05
|
|
|
0.05
|
|
|
0.09
|
|
|
||||||
Total unit costs
|
2.24
|
|
|
2.34
|
|
|
7.56
|
|
|
2.04
|
|
|
2.10
|
|
|
8.56
|
|
|
||||||
Other revenue adjustments, primarily for pricing on prior period open sales
|
0.04
|
|
|
0.04
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
0.65
|
|
|
$
|
0.55
|
|
|
$
|
4.12
|
|
|
$
|
1.11
|
|
|
$
|
1.05
|
|
|
$
|
2.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
320
|
|
|
320
|
|
|
|
|
383
|
|
|
383
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)a
|
|
|
|
|
7
|
|
|
|
|
|
|
7
|
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
||||
Production
|
299
|
|
|
293
|
|
||
Sales
|
290
|
|
|
290
|
|
||
Average realized price per pound
|
$
|
2.93
|
|
|
$
|
3.08
|
|
|
|
|
|
||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
||||
Productiona
|
8
|
|
|
6
|
|
||
|
|
|
|
||||
Leach operations
|
|
|
|
||||
Leach ore placed in stockpiles (metric tons per day)
|
166,700
|
|
|
168,000
|
|
||
Average copper ore grade (percent)
|
0.34
|
|
|
0.33
|
|
||
Copper production (millions of recoverable pounds)
|
59
|
|
|
67
|
|
||
|
|
|
|
||||
Mill operations
|
|
|
|
||||
Ore milled (metric tons per day)
|
386,500
|
|
|
385,500
|
|
||
Average ore grade (percent):
|
|
|
|
||||
Copper
|
0.37
|
|
|
0.39
|
|
||
Molybdenum
|
0.02
|
|
|
0.01
|
|
||
Copper recovery rate (percent)
|
87.2
|
|
|
79.0
|
|
||
Copper production (millions of recoverable pounds)
|
240
|
|
|
226
|
|
a.
|
Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
2.93
|
|
|
$
|
2.93
|
|
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.73
|
|
|
1.55
|
|
|
1.78
|
|
|
1.64
|
|
||||
By-product credits
|
(0.34
|
)
|
|
—
|
|
|
(0.25
|
)
|
|
—
|
|
||||
Treatment charges
|
0.19
|
|
|
0.19
|
|
|
0.20
|
|
|
0.20
|
|
||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
||||
Unit net cash costs
|
1.59
|
|
|
1.75
|
|
|
1.74
|
|
|
1.85
|
|
||||
DD&A
|
0.39
|
|
|
0.34
|
|
|
0.43
|
|
|
0.40
|
|
||||
Noncash and other costs, net
|
0.09
|
|
a
|
0.09
|
|
|
0.05
|
|
|
0.05
|
|
||||
Total unit costs
|
2.07
|
|
|
2.18
|
|
|
2.22
|
|
|
2.30
|
|
||||
Other revenue adjustments, primarily for pricing on prior period open sales
|
0.16
|
|
|
0.16
|
|
|
(0.15
|
)
|
|
(0.15
|
)
|
||||
Gross profit per pound
|
$
|
1.02
|
|
|
$
|
0.91
|
|
|
$
|
0.71
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
290
|
|
|
290
|
|
|
290
|
|
|
290
|
|
a.
|
Includes $12 million ($0.04 per pound of copper) associated with weather-related impacts at El Abra.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating Data
|
|
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
||||
Production
|
145
|
|
|
311
|
|
||
Sales
|
174
|
|
|
319
|
|
||
Average realized price per pound
|
$
|
2.92
|
|
|
$
|
3.06
|
|
|
|
|
|
||||
Gold (thousands of recoverable ounces)
|
|
|
|
||||
Production
|
162
|
|
|
595
|
|
||
Sales
|
235
|
|
|
603
|
|
||
Average realized price per ounce
|
$
|
1,291
|
|
|
$
|
1,312
|
|
|
|
|
|
||||
100% Operating Data
|
|
|
|
||||
Ore milled (metric tons per day):a
|
|
|
|
||||
Grasberg open pit
|
102,800
|
|
|
125,200
|
|
||
DOZ underground mine
|
30,300
|
|
|
39,400
|
|
||
DMLZ underground mine
|
6,800
|
|
|
2,600
|
|
||
GBC underground mine
|
5,000
|
|
|
4,000
|
|
||
Big Gossan underground mine
|
5,600
|
|
|
2,400
|
|
||
Total
|
150,500
|
|
|
173,600
|
|
||
Average ore grades:
|
|
|
|
||||
Copper (percent)
|
0.62
|
|
|
1.12
|
|
||
Gold (grams per metric ton)
|
0.58
|
|
|
1.63
|
|
||
Recovery rates (percent):
|
|
|
|
||||
Copper
|
84.7
|
|
|
92.0
|
|
||
Gold
|
68.7
|
|
|
84.7
|
|
||
Production:
|
|
|
|
||||
Copper (millions of recoverable pounds)
|
145
|
|
|
340
|
|
||
Gold (thousands of recoverable ounces)
|
162
|
|
|
673
|
|
a.
|
Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine, related stockpiles and development activities that result in metal production.
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.92
|
|
|
$
|
2.92
|
|
|
$
|
1,291
|
|
|
$
|
3.06
|
|
|
$
|
3.06
|
|
|
$
|
1,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
3.10
|
|
|
1.92
|
|
|
850
|
|
|
1.36
|
|
|
0.75
|
|
|
319
|
|
||||||
Gold and silver credits
|
(1.81
|
)
|
|
—
|
|
|
—
|
|
|
(2.59
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.29
|
|
|
0.18
|
|
|
80
|
|
|
0.25
|
|
|
0.13
|
|
|
57
|
|
||||||
Export duties
|
0.10
|
|
|
0.06
|
|
|
27
|
|
|
0.14
|
|
|
0.08
|
|
|
34
|
|
||||||
Royalty on metals
|
0.16
|
|
|
0.10
|
|
|
46
|
|
|
0.21
|
|
|
0.11
|
|
|
49
|
|
||||||
Unit net cash costs (credits)
|
1.84
|
|
|
2.26
|
|
|
1,003
|
|
|
(0.63
|
)
|
|
1.07
|
|
|
459
|
|
||||||
DD&A
|
0.61
|
|
|
0.37
|
|
|
166
|
|
|
0.57
|
|
|
0.31
|
|
|
133
|
|
||||||
Noncash and other costs, net
|
0.01
|
|
a
|
0.01
|
|
|
4
|
|
|
0.04
|
|
|
0.02
|
|
|
11
|
|
||||||
Total unit costs (credits)
|
2.46
|
|
|
2.64
|
|
|
1,173
|
|
|
(0.02
|
)
|
|
1.40
|
|
|
603
|
|
||||||
Other revenue adjustments, primarily for pricing on prior period open sales
|
0.11
|
|
|
0.11
|
|
|
9
|
|
|
(0.12
|
)
|
|
(0.12
|
)
|
|
27
|
|
||||||
PT Smelting intercompany profit (loss)
|
0.02
|
|
|
0.01
|
|
|
5
|
|
|
(0.03
|
)
|
|
(0.02
|
)
|
|
(7
|
)
|
||||||
Gross profit per pound/ounce
|
$
|
0.59
|
|
|
$
|
0.40
|
|
|
$
|
132
|
|
|
$
|
2.93
|
|
|
$
|
1.52
|
|
|
$
|
729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
174
|
|
|
174
|
|
|
|
|
319
|
|
|
319
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
235
|
|
|
|
|
|
|
603
|
|
a.
|
Includes credits of $19 million ($0.11 per pound of copper) associated with adjustments to prior year treatment and refining charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at domestic companies
|
$
|
1.9
|
|
|
Cash at international operations
|
0.9
|
|
|
|
Total consolidated cash and cash equivalents
|
2.8
|
|
|
|
Noncontrolling interests’ share
|
(0.4
|
)
|
|
|
Cash, net of noncontrolling interests’ share
|
2.4
|
|
|
|
Withholding taxes and other
|
—
|
|
a
|
|
Net cash available
|
$
|
2.4
|
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
|
|
|
|
||||||||||||
(In millions)
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
|
$
|
850
|
|
|
$
|
850
|
|
|
$
|
112
|
|
|
$
|
962
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
|
503
|
|
|
450
|
|
|
66
|
|
|
516
|
|
||||
By-product credits
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
|
56
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||
Royalty on metals
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Net cash costs
|
|
462
|
|
|
508
|
|
|
66
|
|
|
574
|
|
||||
DD&A
|
|
114
|
|
|
101
|
|
|
13
|
|
|
114
|
|
||||
Noncash and other costs, net
|
|
24
|
|
b
|
24
|
|
|
—
|
|
|
24
|
|
||||
Total costs
|
|
600
|
|
|
633
|
|
|
79
|
|
|
712
|
|
||||
Other revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
|
47
|
|
|
47
|
|
|
—
|
|
|
47
|
|
||||
Gross profit
|
|
$
|
297
|
|
|
$
|
264
|
|
|
$
|
33
|
|
|
$
|
297
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
|
290
|
|
|
290
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
2.93
|
|
|
$
|
2.93
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
|
1.73
|
|
|
1.55
|
|
|
|
|
|
||||||
By-product credits
|
|
(0.34
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
|
0.19
|
|
|
0.19
|
|
|
|
|
|
||||||
Royalty on metals
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
|
1.59
|
|
|
1.75
|
|
|
|
|
|
||||||
DD&A
|
|
0.39
|
|
|
0.34
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
0.09
|
|
b
|
0.09
|
|
|
|
|
|
||||||
Total unit costs
|
|
2.07
|
|
|
2.18
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
|
0.16
|
|
|
0.16
|
|
|
|
|
|
||||||
Gross profit per pound
|
|
$
|
1.02
|
|
|
$
|
0.91
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
Production
|
|
|
|
|
||||||||
|
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
|
$
|
962
|
|
|
$
|
516
|
|
|
$
|
114
|
|
|
|
||
Treatment charges
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
|
—
|
|
|
24
|
|
|
—
|
|
|
|
|||||
Other revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
|
47
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
|
951
|
|
|
539
|
|
|
114
|
|
|
|
|||||
Otherc
|
|
3,598
|
|
|
3,055
|
|
|
213
|
|
|
|
|||||
Corporate, other & eliminations
|
|
(757
|
)
|
|
(675
|
)
|
|
20
|
|
|
|
|||||
As reported in our consolidated financial statements
|
|
$
|
3,792
|
|
|
$
|
2,919
|
|
|
$
|
347
|
|
|
|
||
|
|
|
|
|
|
|
|
|
a.
|
Includes silver sales of 1.3 million ounces ($15.75 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Includes charges of $12 million ($0.04 per pound of copper) associated with weather-related impacts at El Abra.
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
||||||||||||
(In millions)
|
|
By-Product
|
|
Co-Product Method
|
|
||||||||||||
|
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
894
|
|
|
$
|
894
|
|
|
$
|
85
|
|
|
$
|
979
|
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
|
517
|
|
|
476
|
|
|
52
|
|
|
528
|
|
|
||||
By-product credits
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Treatment charges
|
|
59
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|
||||
Royalty on metals
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
||||
Net cash costs
|
|
504
|
|
|
537
|
|
|
52
|
|
|
589
|
|
|
||||
DD&A
|
|
126
|
|
|
115
|
|
|
11
|
|
|
126
|
|
|
||||
Noncash and other costs, net
|
|
15
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
||||
Total costs
|
|
645
|
|
|
667
|
|
|
63
|
|
|
730
|
|
|
||||
Other revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
|
(43
|
)
|
|
(43
|
)
|
|
—
|
|
|
(43
|
)
|
|
||||
Gross profit
|
|
$
|
206
|
|
|
$
|
184
|
|
|
$
|
22
|
|
|
$
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
|
290
|
|
|
290
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
|
1.78
|
|
|
1.64
|
|
|
|
|
|
|
||||||
By-product credits
|
|
(0.25
|
)
|
|
—
|
|
|
|
|
|
|
||||||
Treatment charges
|
|
0.20
|
|
|
0.20
|
|
|
|
|
|
|
||||||
Royalty on metals
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
|
||||||
Unit net cash costs
|
|
1.74
|
|
|
1.85
|
|
|
|
|
|
|
||||||
DD&A
|
|
0.43
|
|
|
0.40
|
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
0.05
|
|
|
0.05
|
|
|
|
|
|
|
||||||
Total unit costs
|
|
2.22
|
|
|
2.30
|
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
|
(0.15
|
)
|
|
(0.15
|
)
|
|
|
|
|
|
||||||
Gross profit per pound
|
|
$
|
0.71
|
|
|
$
|
0.63
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
Production
|
|
|
|
|
|
||||||||
|
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
|
||||||||
Totals presented above
|
|
$
|
979
|
|
|
$
|
528
|
|
|
$
|
126
|
|
|
|
|
||
Treatment charges
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Royalty on metals
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Noncash and other costs, net
|
|
—
|
|
|
15
|
|
|
—
|
|
|
|
|
|||||
Other revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Eliminations and other
|
|
2
|
|
|
—
|
|
|
1
|
|
|
|
|
|||||
South America mining
|
|
877
|
|
|
543
|
|
|
127
|
|
|
|
|
|||||
Otherb
|
|
4,948
|
|
|
3,259
|
|
|
303
|
|
|
|
|
|||||
Corporate, other & eliminations
|
|
(957
|
)
|
|
(994
|
)
|
|
21
|
|
|
|
|
|||||
As reported in our consolidated financial statements
|
|
$
|
4,868
|
|
|
$
|
2,808
|
|
|
$
|
451
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
a.
|
Includes silver sales of 1.0 million ounces ($16.52 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
|
|
|
|
|
a.
|
Includes silver sales of 0.6 million ounces ($14.85 per ounce average realized price).
|
b.
|
Includes credits of $19 million ($0.11 per pound of copper) associated with adjustments to prior year treatment and refining charges.
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
|
|
|
|
a.
|
Includes silver sales of 1.2 million ounces ($15.76 per ounce average realized price).
|
b.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
a.
|
Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
|
b.
|
Represents the combined total for our other segments, as presented in Note 9. Also includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
|
|
|
|
|
|
|
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
(a)
|
Evaluation of disclosure controls and procedures. Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures are effective as of March 31, 2019.
|
(b)
|
Changes in internal control over financial reporting. There has been no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
|
Part II.
|
OTHER INFORMATION
|
Item 1.
|
Legal Proceedings.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Item 4.
|
Mine Safety Disclosures.
|
Item 6.
|
Exhibits.
|
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
PTFI Divestment Agreement dated as of September 27, 2018 among FCX, International Support LLC, PT Freeport Indonesia, PT Indocopper Investama and PT Indonesia Asahan Aluminium (Persero). (*)
|
|
10-Q
|
001-11307-01
|
11/9/2018
|
|
Supplemental and Amendment Agreement to the PT-FI Divestment Agreement, dated December 21, 2018, among FCX, PT Freeport Indonesia, PT Indonesia Papua Metal Dan Mineral (f/k/a PT Indocopper Investama), PT Indonesia Asahan Aluminium (Persero) and International Support LLC.
|
|
10-K
|
001-11307-01
|
2/15/2019
|
|
Amended and Restated Certificate of Incorporation of FCX, effective as of June 8, 2016.
|
|
8-K
|
001-11307-01
|
6/9/2016
|
|
Amended and Restated By-Laws of FCX, effective as of June 8, 2016.
|
|
8-K
|
001-11307-01
|
6/9/2016
|
|
Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).
|
|
8-K
|
001-11307-01
|
2/13/2012
|
|
Third Supplemental Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022).
|
|
8-K
|
001-11307-01
|
2/13/2012
|
|
Fourth Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
|
Sixth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 4.00% Senior Notes due 2021).
|
|
8-K
|
001-11307-01
|
11/14/2014
|
|
Seventh Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 4.55% Senior Notes due 2024).
|
|
8-K
|
001-11307-01
|
11/14/2014
|
|
Eighth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 5.40% Senior Notes due 2034).
|
|
8-K
|
001-11307-01
|
11/14/2014
|
|
Indenture dated as of March 7, 2013, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
3/7/2013
|
|
Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC, as guarantor, and U.S. Bank National Association, as Trustee (relating to the 3.875% Senior Notes due 2023 and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
|
Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
S-3
|
333-36415
|
9/25/1997
|
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027).
|
|
8-K
|
01-00082
|
11/3/1997
|
|
Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031).
|
|
8-K
|
01-00082
|
5/30/2001
|
|
Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034).
|
|
10-K
|
01-00082
|
3/7/2005
|
|
Supplemental Indenture dated as of April 4, 2007 to the Indenture dated as of September 22, 1997, among Phelps Dodge Corporation, as Issuer, Freeport-McMoRan Copper & Gold Inc., as Parent Guarantor, and U.S. Bank National Association, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
10-K
|
001-11307-01
|
2/26/2016
|
|
Indenture dated as of December 13, 2016, among FCX, Freeport-McMoRan Oil & Gas LLC, as guarantor, and U.S. Bank National Association, as Trustee (relating to the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-11307-01
|
12/13/2016
|
|
Registration Rights Agreement dated as of December 13, 2016 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer Managers, relating to the 6.875% Senior Notes due 2023.
|
|
8-K
|
001-11307-01
|
12/13/2016
|
|
Form of Certificate representing shares of common stock, par value $0.10.
|
|
8-A/A
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001-11307-01
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8/10/2015
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First Amendment dated as of May 2, 2019 to the Revolving Credit Agreement dated as of April 20, 2018, among FCX, PT Freeport Indonesia, Freeport-McMoRan Oil & Gas LLC, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto.
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8-K
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001-11307-01
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5/2/2019
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Letter from Ernst & Young LLP regarding unaudited interim financial statements.
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X
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Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).
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X
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Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).
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X
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Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.
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X
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Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.
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X
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Filed
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Exhibit
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with this
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Incorporated by Reference
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Number
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Exhibit Title
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Form 10-Q
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Form
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File No.
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Date Filed
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Mine Safety and Health Administration Safety Data.
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X
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101.INS
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XBRL Instance Document.
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X
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101.SCH
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XBRL Taxonomy Extension Schema.
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X
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase.
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X
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase.
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X
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101.LAB
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XBRL Taxonomy Extension Label Linkbase.
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X
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase.
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X
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Freeport-McMoRan Inc.
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By:
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/s/ C. Donald Whitmire, Jr.
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C. Donald Whitmire, Jr.
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Vice President and
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Controller - Financial Reporting
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(authorized signatory
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and Principal Accounting Officer)
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1)
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Registration Statement (Form S-8 No. 333-85803) pertaining to the Freeport-McMoRan Copper & Gold Inc. 1999 Stock Incentive Plan,
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2)
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Registration Statement (Form S-8 No. 333-105535) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2003 Stock Incentive Plan,
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3)
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Registration Statement (Form S-8 No. 333-115292) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2004 Director Compensation Plan,
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4)
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Registration Statement (Form S-8 No. 333-136084) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
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5)
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Registration Statement (Form S-8 No. 333-141358) pertaining to the Phelps Dodge 2003 Stock Option and Restricted Stock Plan and the Phelps Dodge 1998 Stock Option and Restricted Stock Plan,
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6)
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Registration Statement (Form S-8 No. 333-147413) pertaining to the Amended and Restated Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
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7)
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Registration Statement (Form S-8 No. 333-189047) pertaining to the Plains Exploration & Production Company 2010 Incentive Award Plan; the Plains Exploration & Production 2004 Stock Incentive Plan; the McMoRan Exploration Co. Amended and Restated 2008 Stock Incentive Plan; the McMoRan Exploration Co. 2005 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2004 Director Compensation Plan, as amended and restated; the McMoRan Exploration Co. 2003 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2001 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2000 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 1998 Stock Option Plan, as amended and restated; and the McMoRan Exploration Co. 1998 Stock Option Plan for Non-Employee Directors, as amended and restated,
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8)
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Registration Statement (Form S-8 No. 333-212523) pertaining to the Freeport-McMoRan Inc. 2016 Stock Incentive Plan, and
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9)
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Registration Statement (Form S-3 No. 333-226675) pertaining to the Freeport-McMoRan Inc. 2018
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By:
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/s/ Richard C. Adkerson
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Richard C. Adkerson
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Vice Chairman of the Board,
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President and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Freeport-McMoRan Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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By:
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/s/ Richard C. Adkerson
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Richard C. Adkerson
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Vice Chairman of the Board,
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President and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Freeport-McMoRan Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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By:
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/s/ Kathleen L. Quirk
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Kathleen L. Quirk
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Executive Vice President and
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Chief Financial Officer
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By:
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/s/ Kathleen L. Quirk
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Kathleen L. Quirk
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Executive Vice President and
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Chief Financial Officer
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•
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Section 104 S&S Citations: Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.
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•
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Section 104(b) Orders: Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.
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•
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Section 104(d) Citations and Orders: Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below).
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•
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Section 110(b)(2) Violations: Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.”
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•
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Section 107(a) Orders: Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist.
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Potential
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to Have
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Pattern of
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Pattern of
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Section
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Violations
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Violation
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Section
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Section
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104(d)
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Section
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Section
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Mining
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Under
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Under
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104 S&S
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104(b)
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Citations
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110(b)(2)
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107(a)
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Proposed
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Related
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Section
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Section
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Citations
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Orders
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and Orders
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Violations
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Orders
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Assessments(2)
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Fatalities
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104(e)
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104(e)
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Mine ID(1)
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Mine or Operation Name
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(#)
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(#)
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(#)
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(#)
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(#)
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($)
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(#)
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(yes/no)
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(yes/no)
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0200137
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Freeport-McMoRan Bagdad Inc. (Bagdad)
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—
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—
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—
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—
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—
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1,221
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—
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No
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No
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2900708
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Freeport-McMoRan Chino Mines Company (Chino)
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1
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—
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—
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—
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—
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6,029
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—
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No
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No
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0200112
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Freeport-McMoRan Miami Inc (Miami)
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1
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—
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—
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—
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—
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2,273
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—
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No
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No
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0200024
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Freeport-McMoRan Morenci Inc (Morenci)
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21
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—
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—
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—
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—
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182,908
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—
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No
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No
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0203131
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Freeport-McMoRan Safford Inc (Safford)
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—
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—
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—
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—
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—
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129
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—
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No
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No
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0200144
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Freeport-McMoRan Sierrita Inc (Sierrita)
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3
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—
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—
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—
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—
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55,850
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—
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No
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No
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2900159
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Tyrone Mine (Tyrone)
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—
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—
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—
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—
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—
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—
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—
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No
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No
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0500790
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Henderson Operations (Henderson)
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1
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—
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—
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—
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—
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2,609
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—
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No
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No
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0502256
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Climax Mine (Climax)
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—
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—
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—
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—
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—
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—
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—
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No
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No
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Freeport-McMoRan Cobre Mining Company:
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2900725
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Open Pit & Continental Surf Comp
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—
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—
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—
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—
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—
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—
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—
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No
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No
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2900731
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Continental Mill Complex
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—
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—
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—
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—
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—
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—
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—
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No
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No
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0201656
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Copper Queen Branch
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—
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—
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—
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—
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—
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—
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—
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No
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No
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0202579
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Cyprus Tohono Corporation
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—
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—
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—
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—
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—
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—
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—
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No
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No
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0203262
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Twin Buttes Mine
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—
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—
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—
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—
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—
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—
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—
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No
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No
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2902395
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Chieftain 2100 Screening Plant
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—
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—
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—
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—
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—
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—
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—
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No
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No
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0203254
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Warrior 1800 Screening Plant
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—
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—
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—
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—
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—
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—
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—
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No
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No
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(1)
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MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities.
|
(2)
|
Amounts represent the total dollar value of proposed assessments received on or before April 30, 2019, for citations or orders issued by MSHA during the three months ended March 31, 2019. FCX is currently contesting approximately $80 thousand of these proposed assessments.
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