Delaware
|
001-11307-01
|
74-2480931
|
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer Identification No.)
|
333 North Central Avenue
|
|
|
Phoenix
|
AZ
|
85004
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.10 per share
|
FCX
|
The New York Stock Exchange
|
Exhibit Number
|
Exhibit Title
|
Press release dated April 24, 2020, titled “Freeport-McMoRan Announces Revised
Operating Plans in Response to the COVID-19 Pandemic and Reports First-Quarter 2020 Results."
|
|
|
|
Slides dated April 24, 2020, titled "FCX Conference Call to Discuss Revised Operating Plans in Response to COVID-19 Pandemic and First-Quarter 2020 Results."
|
|
|
|
104
|
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.
|
|
|
|
|
|
•
|
$1.3 billion reduction (~18 percent) in 2020 estimated operating costs
|
•
|
$800 million reduction (~30 percent) in 2020 estimated capital expenditures
|
•
|
$100 million reduction (~20 percent) in 2020 estimated exploration and administrative costs
|
•
|
~400 million pound reduction (~15 percent) in the Americas 2020 estimated copper sales volumes
|
•
|
Actions enhance outlook for cash generation and maintenance of strong liquidity at low prices
|
|
1
|
|
|
|
|
a.
|
Reflects per pound weighted-average unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs.
|
b.
|
For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
c.
|
April 2020 estimates assume average prices of $1,600 per ounce of gold and $9.00 per pound of molybdenum for the remainder of 2020. The January 2020 estimates were based on average prices of $1,500 per ounce of gold and $10.00 per pound of molybdenum for the year 2020.
|
d.
|
Refer to the first-quarter 2020 conference call slides which are available on FCX's website, "fcx.com," for the impact of price changes for the remainder of 2020 on consolidated unit net cash costs and operating cash flows.
|
e.
|
Excludes capital expenditures for the development of the new smelter in Indonesia (see page 6).
|
f.
|
The January 2020 estimates included $0.5 billion in debt associated with the new smelter for PT Freeport Indonesia (PT-FI).
|
|
2
|
|
|
|
|
a.
|
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
b.
|
Based on achievement of current sales volume and cost estimates, and assuming an average molybdenum price of $9.00 per pound for the remainder of 2020. The impact of price changes during the remainder of 2020 on North America's average unit net cash costs for the year 2020 would approximate $0.03 per pound for each $2 per pound change in the average price of molybdenum. The January 2020 estimates were based on an average price of $10.00 per pound of molybdenum for the year 2020.
|
|
3
|
|
|
|
|
a.
|
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
b.
|
Based on achievement of current sales volume and cost estimates, and assuming an average price of $9.00 per pound of molybdenum for the remainder of 2020. The January 2020 estimates were based on an average price of $10.00 per pound of molybdenum for the year 2020.
|
|
4
|
|
|
|
|
|
|
|
April 2020
Estimates
|
|
January 2020 Estimates
|
|
|
||||||||||
|
First-quarter 2020
(Actual)
|
|
Remainder of 2020
|
|
Total
2020
|
|
Total
2020
|
|
Total Percent Change
|
||||||||
Copper sales (millions of recoverable pounds)
|
127
|
|
|
615
|
|
|
742
|
|
|
750
|
|
|
(1)%
|
||||
Gold sales (thousands of recoverable ounces)
|
139
|
|
|
636
|
|
|
775
|
|
|
775
|
|
|
—%
|
||||
Unit net cash costs per pound of copper
|
$
|
1.31
|
|
a
|
$
|
0.51
|
|
|
$
|
0.65
|
|
b
|
$
|
1.04
|
|
b
|
(37)%
|
a.
|
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
b.
|
Based on achievement of current sales volume and cost estimates, and assuming an average gold price of $1,600 per ounce for the remainder of 2020. The impact of price changes during the remainder of 2020 on PT-FI's average unit net cash costs for the year 2020 would approximate $0.05 per pound for each $50 per ounce change in the average price of gold. The January 2020 estimates were based on an average price of $1,500 per ounce of gold for the year 2020.
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
|
Three Months Ended March 31,
|
|
||||||
|
2020
|
|
2019
|
|
||||
|
(in millions, except per share amounts)
|
|
||||||
Revenuesa,b
|
$
|
2,798
|
|
|
$
|
3,792
|
|
|
Operating (loss) incomea
|
$
|
(473
|
)
|
|
$
|
321
|
|
|
Net (loss) income attributable to common stockc,d
|
$
|
(491
|
)
|
|
$
|
31
|
|
|
Diluted net (loss) income per share of common stock
|
$
|
(0.34
|
)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
||||
Diluted weighted-average common shares outstanding
|
1,452
|
|
|
1,457
|
|
|
||
Operating cash flowse
|
$
|
(38
|
)
|
|
$
|
534
|
|
|
Capital expenditures
|
$
|
610
|
|
|
$
|
622
|
|
|
At March 31:
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,602
|
|
|
$
|
2,833
|
|
|
Total debt, including current portion
|
$
|
10,074
|
|
|
$
|
9,905
|
|
|
|
|
|
|
|
a.
|
For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page VIII.
|
b.
|
Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(107) million ($(45) million to net loss attributable to common stock or $(0.03) per share) in first-quarter 2020 and $70 million ($29 million to net income attributable to common stock or $0.02 per share) in first-quarter 2019. For further discussion, refer to the supplemental schedule, "Derivative Instruments," on page VII.
|
c.
|
Includes net charges of $256 million ($0.18 per share) in first-quarter 2020 and $36 million ($0.03 per share) in first-quarter 2019 that are described in the supplemental schedule, "Adjusted Net (Loss) Income," on page VI.
|
d.
|
FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page VII.
|
e.
|
Working capital and other sources (uses) totaled $119 million in first-quarter 2020 and $(56) million in first-quarter 2019.
|
|
7
|
|
|
|
|
|
Three Months Ended March 31,
|
|
||||||
|
2020
|
|
2019
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
731
|
|
|
780
|
|
|
||
Sales, excluding purchases
|
729
|
|
|
784
|
|
|
||
Average realized price per pound
|
$
|
2.43
|
|
|
$
|
2.90
|
|
|
Site production and delivery costs per pounda
|
$
|
2.19
|
|
|
$
|
2.17
|
|
|
Unit net cash costs per pounda
|
$
|
1.90
|
|
|
$
|
1.78
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
||||
Production
|
156
|
|
|
166
|
|
|
||
Sales, excluding purchases
|
144
|
|
|
242
|
|
|
||
Average realized price per ounce
|
$
|
1,606
|
|
|
$
|
1,291
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
19
|
|
|
23
|
|
|
||
Sales, excluding purchases
|
21
|
|
|
22
|
|
|
||
Average realized price per pound
|
$
|
11.10
|
|
|
$
|
12.69
|
|
|
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 FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
|
8
|
|
|
|
|
|
Three Months Ended March 31,
|
|
||||||
|
2020
|
|
2019
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
346
|
|
|
336
|
|
|
||
Sales, excluding purchases
|
355
|
|
|
320
|
|
|
||
Average realized price per pound
|
$
|
2.56
|
|
|
$
|
2.85
|
|
|
|
|
|
|
|
||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
||||
Productiona
|
8
|
|
|
7
|
|
|
||
|
|
|
|
|
||||
Unit net cash costs per pound of copperb
|
|
|
|
|
||||
Site production and delivery, excluding adjustments
|
$
|
2.15
|
|
|
$
|
2.06
|
|
|
By-product credits
|
(0.22
|
)
|
|
(0.26
|
)
|
|
||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
||
Unit net cash costs
|
$
|
2.04
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
a.
|
Refer to summary operating data on page 8 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines.
|
b.
|
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
|
Three Months Ended March 31,
|
|
||||||
|
2020
|
|
2019
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
245
|
|
|
299
|
|
|
||
Sales
|
247
|
|
|
290
|
|
|
||
Average realized price per pound
|
$
|
2.33
|
|
|
$
|
2.93
|
|
|
|
|
|
|
|
||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
||||
Productiona
|
4
|
|
|
8
|
|
|
||
|
|
|
|
|
||||
Unit net cash costs per pound of copperb
|
|
|
|
|
||||
Site production and delivery, excluding adjustments
|
$
|
2.00
|
|
c
|
$
|
1.73
|
|
|
By-product credits
|
(0.17
|
)
|
|
(0.34
|
)
|
|
||
Treatment charges
|
0.16
|
|
|
0.19
|
|
|
||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
||
Unit net cash costs
|
$
|
2.00
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
a.
|
Refer to summary operating data on page 8 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde.
|
|
9
|
|
|
|
|
b.
|
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
c.
|
Excludes COVID-19 related costs of $0.08 per pound of copper, primarily associated with idle facility costs at Cerro Verde as a result the Peruvian government's issuance of a Supreme Decree and declaration of a National Emergency in its efforts to contain the outbreak of COVID-19 and contract cancellation costs at El Abra.
|
|
Three Months Ended March 31,
|
|
||||||
|
2020
|
|
2019
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
140
|
|
|
145
|
|
|
||
Sales
|
127
|
|
|
174
|
|
|
||
Average realized price per pound
|
$
|
2.28
|
|
|
$
|
2.92
|
|
|
|
|
|
|
|
||||
Gold (thousands of recoverable ounces)
|
|
|
|
|
||||
Production
|
152
|
|
|
162
|
|
|
||
Sales
|
139
|
|
|
235
|
|
|
||
Average realized price per ounce
|
$
|
1,606
|
|
|
$
|
1,291
|
|
|
|
|
|
|
|
||||
Unit net cash costs per pound of coppera
|
|
|
|
|
||||
Site production and delivery, excluding adjustments
|
$
|
2.68
|
|
|
$
|
3.10
|
|
|
Gold and silver credits
|
(1.85
|
)
|
|
(1.81
|
)
|
|
||
Treatment charges
|
0.30
|
|
|
0.29
|
|
|
||
Export duties
|
0.03
|
|
|
0.10
|
|
|
||
Royalty on metals
|
0.15
|
|
|
0.16
|
|
|
||
Unit net cash costs
|
$
|
1.31
|
|
|
$
|
1.84
|
|
|
|
|
|
|
|
a.
|
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.
|
|
10
|
|
|
|
|
Cash at domestic companies
|
$
|
0.8
|
|
|
Cash at international operations
|
0.8
|
|
|
|
Total consolidated cash and cash equivalents
|
1.6
|
|
|
|
Noncontrolling interests' share
|
(0.3
|
)
|
|
|
Cash, net of noncontrolling interests' share
|
$
|
1.3
|
|
|
Withholding taxes
|
—
|
|
a
|
|
Net cash available
|
$
|
1.3
|
|
|
|
|
|
a.
|
Rounds to less than $0.1 billion.
|
|
|
Weighted-
Average
Interest Rate
|
||
Senior Notes
|
$
|
9,130
|
|
4.7%
|
Cerro Verde credit facility
|
826
|
|
2.9%
|
|
Other
|
118
|
|
2.6%
|
|
Total debt
|
$
|
10,074
|
|
4.5%
|
|
|
|
|
11
|
|
|
|
|
|
12
|
|
Freeport-McMoRan Inc.
|
||||||
SELECTED OPERATING DATA (continued)
|
||||||
|
|
|
|
|
||
|
Three Months Ended March 31,
|
|
||||
|
2020
|
|
2019
|
|
||
100% North America Copper Mines
|
|
|
|
|
||
Leach Operations
|
|
|
|
|
||
Leach ore placed in stockpiles (metric tons per day)
|
728,100
|
|
|
705,000
|
|
|
Average copper ore grade (percent)
|
0.27
|
|
|
0.23
|
|
|
Copper production (millions of recoverable pounds)
|
235
|
|
|
226
|
|
|
|
|
|
|
|
||
Mill Operations
|
|
|
|
|
||
Ore milled (metric tons per day)
|
333,400
|
|
|
315,600
|
|
|
Average ore grades (percent):
|
|
|
|
|
||
Copper
|
0.32
|
|
|
0.33
|
|
|
Molybdenum
|
0.02
|
|
|
0.02
|
|
|
Copper recovery rate (percent)
|
87.0
|
|
|
87.8
|
|
|
Production (millions of recoverable pounds):
|
|
|
|
|
||
Copper
|
178
|
|
|
176
|
|
|
Molybdenum
|
8
|
|
|
8
|
|
|
|
|
|
|
|
||
100% South America Mining
|
|
|
|
|
||
Leach Operations
|
|
|
|
|
||
Leach ore placed in stockpiles (metric tons per day)
|
182,500
|
|
|
166,700
|
|
|
Average copper ore grade (percent)
|
0.37
|
|
|
0.34
|
|
|
Copper production (millions of recoverable pounds)
|
63
|
|
|
59
|
|
|
|
|
|
|
|
||
Mill Operations
|
|
|
|
|
||
Ore milled (metric tons per day)
|
349,600
|
|
a
|
386,500
|
|
|
Average ore grades (percent):
|
|
|
|
|
||
Copper
|
0.35
|
|
|
0.37
|
|
|
Molybdenum
|
0.01
|
|
|
0.02
|
|
|
Copper recovery rate (percent)
|
78.4
|
|
|
87.2
|
|
|
Production (millions of recoverable pounds):
|
|
|
|
|
||
Copper
|
182
|
|
|
240
|
|
|
Molybdenum
|
4
|
|
|
8
|
|
|
|
|
|
|
|
||
100% Indonesia Mining
|
|
|
|
|
||
Ore extracted and milled (metric tons per day):
|
|
|
|
|
||
Grasberg open pit
|
7,500
|
|
b
|
102,800
|
|
|
Deep Ore Zone underground minec
|
20,200
|
|
|
30,300
|
|
|
Grasberg Block Cave underground minec
|
19,000
|
|
|
5,000
|
|
|
Deep Mill Level Zone underground minec
|
18,500
|
|
|
6,800
|
|
|
Big Gossan underground minec
|
6,800
|
|
|
5,600
|
|
|
Total
|
72,000
|
|
|
150,500
|
|
|
Average ore grades:
|
|
|
|
|
||
Copper (percent)
|
1.15
|
|
|
0.62
|
|
|
Gold (grams per metric ton)
|
0.99
|
|
|
0.58
|
|
|
Recovery rates (percent):
|
|
|
|
|
||
Copper
|
91.8
|
|
|
84.7
|
|
|
Gold
|
76.7
|
|
|
68.7
|
|
|
Production (recoverable):
|
|
|
|
|
||
Copper (millions of pounds)
|
140
|
|
|
145
|
|
|
Gold (thousands of ounces)
|
152
|
|
|
162
|
|
|
|
|
|
|
|
||
100% Molybdenum Mines
|
|
|
|
|
||
Ore milled (metric tons per day)
|
26,900
|
|
|
27,700
|
|
|
Average molybdenum ore grade (percent)
|
0.15
|
|
|
0.16
|
|
|
Molybdenum production (millions of recoverable pounds)
|
7
|
|
|
8
|
|
|
|
|
|
|
|
||
a. Beginning on March 16, 2020, Cerro Verde mill operations were impacted as a result of the Peruvian government's issuance of a Supreme Decree and declaration of a National Emergency in its efforts to contain the outbreak of COVID-19. The Cerro Verde mill operations averaged over 400,000 metric tons of ore per day from January 1, 2020, through March 15, 2020.
|
||||||
|
|
|
|
|
||
b. Represents ore from the Grasberg open-pit stockpile.
|
||||||
|
|
|
|
|
||
c. Reflects ore extracted, including ore from development activities that result in metal production.
|
||||||
|
Freeport-McMoRan Inc.
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
||||||||
|
|
|
|
|
||||
|
Three Months Ended
|
|
||||||
|
March 31,
|
|
||||||
|
2020
|
|
2019
|
|
||||
|
(In Millions, Except Per Share Amounts)
|
|
||||||
Revenuesa
|
$
|
2,798
|
|
|
$
|
3,792
|
|
|
Cost of sales:
|
|
|
|
|
||||
Production and deliveryb
|
2,545
|
|
c
|
2,919
|
|
|
||
Depreciation, depletion and amortization
|
341
|
|
c
|
347
|
|
|
||
Metals inventory adjustments
|
222
|
|
|
57
|
|
|
||
Total cost of sales
|
3,108
|
|
|
3,323
|
|
|
||
Selling, general and administrative expenses
|
110
|
|
|
112
|
|
|
||
Mining exploration and research expenses
|
16
|
|
|
27
|
|
|
||
Environmental obligations and shutdown costs
|
26
|
|
|
42
|
|
|
||
Net loss (gain) on sales of assets
|
11
|
|
|
(33
|
)
|
|
||
Total costs and expenses
|
3,271
|
|
|
3,471
|
|
|
||
Operating (loss) income
|
(473
|
)
|
|
321
|
|
|
||
Interest expense, netb,d
|
(127
|
)
|
|
(146
|
)
|
|
||
Net loss on early extinguishment of debt
|
(32
|
)
|
|
(6
|
)
|
|
||
Other income, netb
|
20
|
|
|
14
|
|
|
||
(Loss) income from continuing operations before income taxes and equity in affiliated companies' net earnings (losses)
|
(612
|
)
|
|
183
|
|
|
||
Benefit from (provision for) income taxese
|
60
|
|
|
(105
|
)
|
|
||
Equity in affiliated companies' net earnings (losses)
|
3
|
|
|
(3
|
)
|
|
||
Net (loss) income from continuing operations
|
(549
|
)
|
|
75
|
|
|
||
Net gain from discontinued operations
|
—
|
|
|
1
|
|
|
||
Net (loss) income
|
(549
|
)
|
|
76
|
|
|
||
Net loss (income) attributable to noncontrolling interests
|
58
|
|
|
(45
|
)
|
|
||
Net (loss) income attributable to common stockholdersf
|
$
|
(491
|
)
|
|
$
|
31
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Diluted net (loss) income per share attributable to common stock:
|
|
|
|
|
||||
Continuing operations
|
$
|
(0.34
|
)
|
|
$
|
0.02
|
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
||
|
$
|
(0.34
|
)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding:
|
|
|
|
|
||||
Basic
|
1,452
|
|
|
1,451
|
|
|
||
Diluted
|
1,452
|
|
|
1,457
|
|
|
||
|
|
|
|
|
||||
Dividends declared per share of common stock
|
$
|
—
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
a.
|
Includes adjustments to provisionally priced concentrate and cathode sales. For a summary of adjustments to provisionally priced copper sales, refer to the supplemental schedule, "Derivative Instruments," on page VII.
|
b.
|
Includes other net charges totaling $16 million for first-quarter 2020 and $22 million for first-quarter 2019, which are summarized in the supplemental schedule, "Adjusted Net (Loss) Income," on page VI.
|
c.
|
Includes COVID-19 related costs totaling $28 million, primarily associated with idle facility costs at Cerro Verde as a result of the Peruvian government's issuance of a Supreme Decree and declaration of a National Emergency in its efforts to contain the outbreak of COVID-19 and contract cancellation costs at El Abra, which are summarized in the supplemental schedule, "Adjusted Net (Loss) Income," on page VI.
|
d.
|
Consolidated interest costs (before capitalization) totaled $171 million in first-quarter 2020 and $178 million in first-quarter 2019.
|
e.
|
For a summary of FCX's income taxes, refer to the supplemental schedule, "Income Taxes," beginning on page VI.
|
f.
|
FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page VII.
|
Freeport-McMoRan Inc.
|
||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
||||||||
|
|
|
|
|
||||
|
March 31,
|
|
December 31,
|
|
||||
|
2020
|
|
2019
|
|
||||
|
(In Millions)
|
|
||||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,602
|
|
|
$
|
2,020
|
|
|
Trade accounts receivable
|
515
|
|
|
741
|
|
|
||
Income and other tax receivables
|
591
|
|
|
426
|
|
|
||
Inventories:
|
|
|
|
|
||||
Materials and supplies, net
|
1,614
|
|
|
1,649
|
|
|
||
Mill and leach stockpiles
|
1,106
|
|
|
1,143
|
|
|
||
Product
|
1,134
|
|
|
1,281
|
|
|
||
Other current assets
|
795
|
|
|
655
|
|
|
||
Total current assets
|
7,357
|
|
|
7,915
|
|
|
||
Property, plant, equipment and mine development costs, net
|
29,899
|
|
|
29,584
|
|
|
||
Long-term mill and leach stockpiles
|
1,272
|
|
|
1,425
|
|
|
||
Other assets
|
1,691
|
|
|
1,885
|
|
|
||
Total assets
|
$
|
40,219
|
|
|
$
|
40,809
|
|
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
2,465
|
|
|
$
|
2,576
|
|
|
Current portion of environmental and asset retirement obligations
|
305
|
|
|
436
|
|
|
||
Current portion of debt
|
245
|
|
|
5
|
|
|
||
Accrued income taxes
|
128
|
|
|
119
|
|
|
||
Dividends payable
|
—
|
|
|
73
|
|
|
||
Total current liabilities
|
3,143
|
|
|
3,209
|
|
|
||
Long-term debt, less current portion
|
9,829
|
|
|
9,821
|
|
|
||
Deferred income taxes
|
4,087
|
|
|
4,210
|
|
|
||
Environmental and asset retirement obligations, less current portion
|
3,758
|
|
|
3,630
|
|
|
||
Other liabilities
|
2,439
|
|
|
2,491
|
|
|
||
Total liabilities
|
23,256
|
|
|
23,361
|
|
|
||
|
|
|
|
|
||||
Equity:
|
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
|
||||
Common stock
|
158
|
|
|
158
|
|
|
||
Capital in excess of par value
|
25,875
|
|
|
25,830
|
|
|
||
Accumulated deficit
|
(12,771
|
)
|
|
(12,280
|
)
|
|
||
Accumulated other comprehensive loss
|
(668
|
)
|
|
(676
|
)
|
|
||
Common stock held in treasury
|
(3,739
|
)
|
|
(3,734
|
)
|
|
||
Total stockholders' equity
|
8,855
|
|
|
9,298
|
|
|
||
Noncontrolling interestsa
|
8,108
|
|
|
8,150
|
|
|
||
Total equity
|
16,963
|
|
|
17,448
|
|
|
||
Total liabilities and equity
|
$
|
40,219
|
|
|
$
|
40,809
|
|
|
|
|
|
|
|
a.
|
Includes $4.6 billion associated with the December 2018 PT-FI transaction, including $4.1 billion associated with the PT Indonesia Asahan Aluminium (Persero) acquisition of Rio Tinto's joint venture interest.
|
Freeport-McMoRan Inc.
|
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|||||||||
|
|
|
|
||||||
|
|
Three Months Ended
|
|
||||||
|
|
March 31,
|
|
||||||
|
|
2020
|
|
2019
|
|
||||
|
|
(In Millions)
|
|
||||||
Cash flow from operating activities:
|
|
|
|
|
|
||||
Net (loss) income
|
|
$
|
(549
|
)
|
|
$
|
76
|
|
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
|
341
|
|
|
347
|
|
|
||
Metals inventory adjustments
|
|
222
|
|
|
57
|
|
|
||
Net loss (gain) on sales of assets
|
|
11
|
|
|
(33
|
)
|
|
||
Stock-based compensation
|
|
27
|
|
|
29
|
|
|
||
Net charges for environmental and asset retirement obligations, including accretion
|
|
60
|
|
|
64
|
|
|
||
Payments for environmental and asset retirement obligations
|
|
(71
|
)
|
|
(46
|
)
|
|
||
Net charges for defined pension and postretirement plans
|
|
18
|
|
|
26
|
|
|
||
Pension plan contributions
|
|
(26
|
)
|
|
(16
|
)
|
|
||
Net loss on early extinguishment of debt
|
|
32
|
|
|
6
|
|
|
||
Deferred income taxes
|
|
(118
|
)
|
|
33
|
|
|
||
Charges for Cerro Verde royalty dispute
|
|
9
|
|
|
15
|
|
|
||
Payments for Cerro Verde royalty dispute
|
|
(57
|
)
|
|
(10
|
)
|
|
||
Other, net
|
|
(56
|
)
|
|
42
|
|
|
||
Changes in working capital and other:
|
|
|
|
|
|
|
|||
Accounts receivable
|
|
205
|
|
|
19
|
|
|
||
Inventories
|
|
154
|
|
|
192
|
|
|
||
Other current assets
|
|
(89
|
)
|
|
42
|
|
|
||
Accounts payable and accrued liabilities
|
|
(149
|
)
|
|
(247
|
)
|
|
||
Accrued income taxes and timing of other tax payments
|
|
(2
|
)
|
|
(62
|
)
|
|
||
Net cash (used in) provided by operating activities
|
|
(38
|
)
|
|
534
|
|
|
||
|
|
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
|
||||
North America copper mines
|
|
(184
|
)
|
|
(210
|
)
|
|
||
South America
|
|
(74
|
)
|
|
(61
|
)
|
|
||
Indonesia
|
|
(326
|
)
|
|
(319
|
)
|
|
||
Molybdenum mines
|
|
(7
|
)
|
|
(4
|
)
|
|
||
Other
|
|
(19
|
)
|
|
(28
|
)
|
|
||
Proceeds from sales of assets
|
|
66
|
|
a
|
84
|
|
b
|
||
Other, net
|
|
(2
|
)
|
|
(8
|
)
|
|
||
Net cash used in investing activities
|
|
(546
|
)
|
|
(546
|
)
|
|
||
|
|
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
|
||||
Proceeds from debt
|
|
1,478
|
|
|
114
|
|
|
||
Repayments of debt
|
|
(1,242
|
)
|
|
(1,356
|
)
|
|
||
Cash dividends and distributions paid:
|
|
|
|
|
|
||||
Common stock
|
|
(73
|
)
|
|
(73
|
)
|
|
||
Noncontrolling interests
|
|
—
|
|
|
(9
|
)
|
|
||
Contributions from noncontrolling interests
|
|
32
|
|
|
—
|
|
|
||
Stock-based awards net payments
|
|
(4
|
)
|
|
(7
|
)
|
|
||
Debt financing costs and other, net
|
|
(18
|
)
|
|
—
|
|
|
||
Net cash provided by (used in) financing activities
|
|
173
|
|
|
(1,331
|
)
|
|
||
|
|
|
|
|
|
||||
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
|
|
(411
|
)
|
|
(1,343
|
)
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
|
2,278
|
|
|
4,455
|
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of periodc
|
|
$
|
1,867
|
|
|
$
|
3,112
|
|
|
|
|
|
|
|
|
a.
|
Includes $60 million in contingent consideration associated with the 2016 sale of TF Holdings Limited because the average cobalt price exceeded $20 per pound during the 24-month period ending December 31, 2019.
|
b.
|
Includes $50 million in contingent consideration associated with the 2016 sale of onshore California oil & gas properties because the average oil price exceeded $70 per barrel during 2018.
|
c.
|
Includes restricted cash and restricted cash equivalents of $265 million at March 31, 2020, and $279 million at March 31, 2019.
|
|
Three Months Ended March 31,
|
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
||||||||||||||||||||
|
Pre-tax
|
|
After-taxa
|
|
Per Share
|
|
Pre-tax
|
|
After-taxa
|
|
Per Share
|
|
||||||||||||
Net (loss) income attributable to common stock
|
N/A
|
|
|
$
|
(491
|
)
|
|
$
|
(0.34
|
)
|
|
N/A
|
|
|
$
|
31
|
|
|
$
|
0.02
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metals inventory adjustments
|
$
|
(222
|
)
|
|
$
|
(182
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(57
|
)
|
|
$
|
(26
|
)
|
|
$
|
(0.02
|
)
|
|
COVID-19 related costs
|
(28
|
)
|
b
|
(9
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Other net charges
|
(16
|
)
|
c
|
(8
|
)
|
|
(0.01
|
)
|
|
(22
|
)
|
d
|
(10
|
)
|
|
(0.01
|
)
|
|
||||||
Net adjustments to environmental obligations and related litigation reserves
|
(14
|
)
|
|
(14
|
)
|
|
(0.01
|
)
|
|
(35
|
)
|
|
(35
|
)
|
|
(0.02
|
)
|
|
||||||
Net (loss) gain on sales of assets
|
(11
|
)
|
|
(11
|
)
|
|
(0.01
|
)
|
|
33
|
|
|
33
|
|
|
0.02
|
|
|
||||||
Net loss on early extinguishment of debt
|
(32
|
)
|
|
(32
|
)
|
|
(0.02
|
)
|
|
(6
|
)
|
|
(5
|
)
|
|
—
|
|
|
||||||
Net tax (charges) credits
|
N/A
|
|
|
(1
|
)
|
|
—
|
|
|
N/A
|
|
|
6
|
|
|
—
|
|
|
||||||
Gain on discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
||||||
|
$
|
(323
|
)
|
|
$
|
(256
|
)
|
e
|
$
|
(0.18
|
)
|
|
$
|
(86
|
)
|
|
$
|
(36
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted net (loss) income attributable to common stock
|
N/A
|
|
$
|
(235
|
)
|
|
$
|
(0.16
|
)
|
|
N/A
|
|
$
|
67
|
|
|
$
|
0.05
|
|
|
a.
|
Reflects impact to FCX net (loss) income attributable to common stock (i.e., net of any taxes and noncontrolling interests).
|
b.
|
Includes $20 million recorded to production and delivery and $8 million to depreciation, depletion and amortization, primarily related to idle facility costs at Cerro Verde and contract cancellation costs at El Abra.
|
c.
|
Includes other charges recorded to production and delivery ($5 million), other income, net ($4 million), and interest expense, net ($7 million), primarily related to a change in a tax position at Cerro Verde and asset impairments.
|
d.
|
Includes charges recorded to production and delivery, primarily associated with weather-related issues at El Abra and for non-recurring employee costs at PT-FI.
|
e.
|
Does not foot because of rounding.
|
|
Three Months Ended March 31,
|
|
||||||||||||||||||
|
2020
|
|
2019
|
|
||||||||||||||||
|
|
|
|
|
Income Tax
|
|
|
|
|
|
Income Tax
|
|
||||||||
|
Income
|
|
Effective
|
|
(Provision)
|
|
Income
|
|
Effective
|
|
(Provision)
|
|
||||||||
|
(Loss)a
|
|
Tax Rate
|
|
Benefit
|
|
(Loss)a
|
|
Tax Rate
|
|
Benefit
|
|
||||||||
U.S.b
|
$
|
(451
|
)
|
|
1%
|
|
$
|
4
|
|
c
|
$
|
(97
|
)
|
|
1%
|
|
$
|
1
|
|
|
South America
|
(202
|
)
|
|
39%
|
|
78
|
|
|
263
|
|
|
40%
|
|
(105
|
)
|
|
||||
Indonesia
|
(19
|
)
|
|
(63)%
|
|
(12
|
)
|
d
|
79
|
|
|
33%
|
|
(26
|
)
|
e
|
||||
Eliminations and other
|
60
|
|
|
N/A
|
|
(11
|
)
|
|
(62
|
)
|
|
N/A
|
|
10
|
|
|
||||
Rate adjustmentf
|
—
|
|
|
N/A
|
|
1
|
|
|
—
|
|
|
N/A
|
|
15
|
|
|
||||
Continuing operations
|
$
|
(612
|
)
|
|
10%
|
g
|
$
|
60
|
|
|
$
|
183
|
|
|
57%
|
|
$
|
(105
|
)
|
|
a.
|
Represents (loss) income from continuing operations before income taxes and equity in affiliated companies' net earnings (losses).
|
b.
|
In addition to FCX's 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 $6 million associated with the removal of a valuation allowance on deferred tax assets.
|
d.
|
Includes a tax charge of $8 million ($7 million net of noncontrolling interest) associated with an unfavorable 2012 Indonesia Supreme Court ruling.
|
e.
|
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).
|
f.
|
In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its consolidated tax rate.
|
g.
|
FCX's first-quarter 2020 consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which FCX operates, excluding the U.S. jurisdiction. Because FCX's U.S. jurisdiction generated net losses in first-quarter 2020 that will not result in a realized tax benefit, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses.
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
|
Prior
Perioda
|
|
Current
Periodb
|
|
Total
|
|
Prior
Perioda
|
|
Current
Periodb
|
|
Total
|
||||||||||||
Revenues
|
$
|
(107
|
)
|
|
$
|
(131
|
)
|
|
$
|
(238
|
)
|
|
$
|
70
|
|
|
$
|
52
|
|
|
$
|
122
|
|
Net (loss) income attributable to common stock
|
$
|
(45
|
)
|
|
$
|
(54
|
)
|
|
$
|
(99
|
)
|
|
$
|
29
|
|
|
$
|
20
|
|
|
$
|
49
|
|
Net (loss) income per share of common stock
|
$
|
(0.03
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
0.03
|
|
a.
|
Reflects adjustments to provisionally priced copper sales at December 31, 2019 and 2018.
|
b.
|
Reflects adjustments to provisionally priced copper sales during the three months ended March 31, 2020 and 2019.
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Corporate,
|
|
|
|
||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America Mining
|
|
|
|
|
|
|
|
Copper
|
|
Other
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
Other
|
|
|
|
Cerro
|
|
Other
|
|
|
|
Indonesia
|
|
Molybdenum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
FCX
|
|
||||||||||||||||||||||||||
|
Morenci
|
|
Bagdad
|
|
Mines
|
|
Total
|
|
Verde
|
|
Mines
|
|
Total
|
|
Mining
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Total
|
|
||||||||||||||||||||||||||
Three Months Ended March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
9
|
|
|
$
|
376
|
|
|
$
|
98
|
|
|
$
|
474
|
|
|
$
|
445
|
|
a
|
$
|
—
|
|
|
$
|
1,115
|
|
|
$
|
429
|
|
|
$
|
326
|
|
b
|
$
|
2,798
|
|
|
Intersegment
|
442
|
|
|
159
|
|
|
375
|
|
|
976
|
|
|
38
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
71
|
|
|
8
|
|
|
11
|
|
|
(1,104
|
)
|
|
—
|
|
|
|||||||||||||
Production and delivery
|
349
|
|
|
126
|
|
|
385
|
|
|
860
|
|
|
424
|
|
|
110
|
|
|
534
|
|
|
343
|
|
|
66
|
|
|
1,119
|
|
|
411
|
|
|
(788
|
)
|
|
2,545
|
|
|
|||||||||||||
Depreciation, depletion and amortization
|
44
|
|
|
14
|
|
|
34
|
|
|
92
|
|
|
93
|
|
|
15
|
|
|
108
|
|
|
101
|
|
|
16
|
|
|
2
|
|
|
7
|
|
|
15
|
|
|
341
|
|
|
|||||||||||||
Metals inventory adjustments
|
4
|
|
|
—
|
|
|
141
|
|
|
145
|
|
|
—
|
|
|
60
|
|
|
60
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
222
|
|
|
|||||||||||||
Selling, general and administrative expenses
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
74
|
|
|
110
|
|
|
|||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
16
|
|
|
|||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
25
|
|
|
26
|
|
|
|||||||||||||
Net loss on sales of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
|||||||||||||
Operating income (loss)
|
46
|
|
|
19
|
|
|
(179
|
)
|
|
(114
|
)
|
|
(105
|
)
|
|
(87
|
)
|
|
(192
|
)
|
|
(27
|
)
|
|
(15
|
)
|
|
1
|
|
|
17
|
|
|
(143
|
)
|
|
(473
|
)
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
94
|
|
|
127
|
|
|
|||||||||||||
(Benefit from) provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(26
|
)
|
|
(78
|
)
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(60
|
)
|
|
|||||||||||||
Total assets at March 31, 2020
|
2,814
|
|
|
800
|
|
|
4,293
|
|
|
7,907
|
|
|
8,471
|
|
|
1,655
|
|
|
10,126
|
|
|
16,711
|
|
|
1,788
|
|
|
231
|
|
|
635
|
|
|
2,821
|
|
|
40,219
|
|
|
|||||||||||||
Capital expenditures
|
44
|
|
|
25
|
|
|
115
|
|
|
184
|
|
|
59
|
|
|
15
|
|
|
74
|
|
|
326
|
|
|
7
|
|
|
2
|
|
|
6
|
|
|
11
|
|
|
610
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
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
|
|
|
178
|
|
|
291
|
|
|
927
|
|
|
126
|
|
|
—
|
|
|
126
|
|
|
58
|
|
|
91
|
|
|
6
|
|
|
5
|
|
|
(1,213
|
)
|
|
—
|
|
|
|||||||||||||
Production and delivery
|
295
|
|
|
120
|
|
|
328
|
|
|
743
|
|
|
439
|
|
|
100
|
|
|
539
|
|
|
556
|
|
|
71
|
|
|
1,133
|
|
|
552
|
|
|
(675
|
)
|
|
2,919
|
|
|
|||||||||||||
Depreciation, depletion and amortization
|
40
|
|
|
10
|
|
|
33
|
|
|
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 sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
|
|||||||||||||
Operating income (loss)
|
134
|
|
|
48
|
|
|
24
|
|
|
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
|
|
|
709
|
|
|
4,051
|
|
|
7,664
|
|
|
8,674
|
|
|
1,720
|
|
|
10,394
|
|
|
15,792
|
|
|
1,785
|
|
|
232
|
|
|
771
|
|
|
4,421
|
|
|
41,059
|
|
|
|||||||||||||
Capital expenditures
|
62
|
|
|
25
|
|
|
123
|
|
|
210
|
|
|
56
|
|
|
5
|
|
|
61
|
|
|
319
|
|
|
4
|
|
|
1
|
|
|
4
|
|
|
23
|
|
|
622
|
|
|
a.
|
Includes PT-FI's sales to PT Smelting totaling $380 million in first-quarter 2020 and $409 million in first-quarter 2019.
|
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.
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page VIII.
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page VIII.
|
Freeport-McMoRan Inc.
|
||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
|
||||||||||||||||
|
||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
|
||||||||||||||||
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2020
|
|
|
|
|
||||||||||||
(In millions)
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
|
$
|
575
|
|
|
$
|
575
|
|
|
$
|
54
|
|
|
$
|
629
|
|
Site production and delivery, before net noncash
and other costs shown below |
|
494
|
|
|
457
|
|
|
49
|
|
|
506
|
|
||||
By-product credits
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
|
40
|
|
|
40
|
|
|
—
|
|
|
40
|
|
||||
Royalty on metals
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Net cash costs
|
|
493
|
|
|
498
|
|
|
49
|
|
|
547
|
|
||||
DD&A
|
|
107
|
|
|
98
|
|
|
9
|
|
|
107
|
|
||||
Metals inventory adjustments
|
|
60
|
|
|
60
|
|
|
—
|
|
|
60
|
|
||||
Noncash and other costs, net
|
|
30
|
|
b
|
28
|
|
|
2
|
|
|
30
|
|
||||
Total costs
|
|
690
|
|
|
684
|
|
|
60
|
|
|
744
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(75
|
)
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
||||
Gross loss
|
|
$
|
(190
|
)
|
|
$
|
(184
|
)
|
|
$
|
(6
|
)
|
|
$
|
(190
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
|
247
|
|
|
247
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross loss per pound of copper:
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
2.33
|
|
|
$
|
2.33
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
|
2.00
|
|
|
1.85
|
|
|
|
|
|
||||||
By-product credits
|
|
(0.17
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
|
0.16
|
|
|
0.16
|
|
|
|
|
|
||||||
Royalty on metals
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
|
2.00
|
|
|
2.02
|
|
|
|
|
|
||||||
DD&A
|
|
0.44
|
|
|
0.40
|
|
|
|
|
|
||||||
Metals inventory adjustments
|
|
0.24
|
|
|
0.24
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
0.12
|
|
b
|
0.11
|
|
|
|
|
|
||||||
Total unit costs
|
|
2.80
|
|
|
2.77
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(0.30
|
)
|
|
(0.30
|
)
|
|
|
|
|
||||||
Gross loss per pound
|
|
$
|
(0.77
|
)
|
|
$
|
(0.74
|
)
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
Metals
|
||||||||
|
|
|
|
Production
|
|
|
|
Inventory
|
||||||||
|
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Adjustments
|
||||||||
Totals presented above
|
|
$
|
629
|
|
|
$
|
506
|
|
|
$
|
107
|
|
|
$
|
60
|
|
Treatment charges
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Noncash and other costs, net
|
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Eliminations and other
|
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
||||
South America mining
|
|
512
|
|
|
534
|
|
|
108
|
|
|
60
|
|
||||
Other miningc
|
|
3,064
|
|
|
2,799
|
|
|
218
|
|
|
149
|
|
||||
Corporate, other & eliminations
|
|
(778
|
)
|
|
(788
|
)
|
|
15
|
|
|
13
|
|
||||
As reported in FCX's consolidated financial statements
|
|
$
|
2,798
|
|
|
$
|
2,545
|
|
|
$
|
341
|
|
|
$
|
222
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes silver sales of 0.9 million ounces ($17.71 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.
|
b.
|
Includes COVID-19 related costs of $20 million ($0.08 per pound of copper), primarily associated with idle facility costs at Cerro Verde as a result the Peruvian government's issuance of a Supreme Decree and declaration of a National Emergency in its efforts to contain the outbreak of COVID-19 and contract cancellation costs at El Abra.
|
c.
|
Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page VIII.
|
Freeport-McMoRan Inc.
|
|||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
|
|||||||||||||||||
|
|||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
|
|||||||||||||||||
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
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
|
|
|
|
|
|||||
Other miningc
|
|
3,598
|
|
|
3,055
|
|
|
213
|
|
|
|
|
|||||
Corporate, other & eliminations
|
|
(757
|
)
|
|
(675
|
)
|
|
20
|
|
|
|
|
|||||
As reported in FCX's 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 FCX's 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 FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page VIII.
|
a.
|
Includes silver sales of 0.6 million ounces ($14.09 per ounce average realized price).
|
b.
|
Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page VIII.
|
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) recorded in revenues associated with adjustments to prior year treatment charges.
|
c.
|
Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page VIII.
|
a.
|
Reflects sales of the Molybdenum mines' production to FCX's 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, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
|
b.
|
Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page VIII. Also includes amounts associated with 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.
|