☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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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
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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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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 $0.10 per share
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FCX
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The New York Stock Exchange
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Large accelerated filer
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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Part I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements.
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June 30,
2020 |
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December 31,
2019 |
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(In millions)
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||||||
ASSETS
|
|
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||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
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$
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1,465
|
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$
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2,020
|
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Trade accounts receivable
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717
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741
|
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Income and other tax receivables
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646
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426
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Inventories:
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||||
Materials and supplies, net
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1,604
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1,649
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Mill and leach stockpiles
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1,030
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1,143
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Product
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1,176
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1,281
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Other current assets
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517
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655
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Total current assets
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7,155
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7,915
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Property, plant, equipment and mine development costs, net
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29,936
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29,584
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Long-term mill and leach stockpiles
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1,446
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1,425
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Other assets
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1,693
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1,885
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Total assets
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$
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40,230
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$
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40,809
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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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2,471
|
|
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$
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2,576
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Current portion of environmental and asset retirement obligations
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298
|
|
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436
|
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Current portion of debt
|
90
|
|
|
5
|
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||
Accrued income taxes
|
47
|
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119
|
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Dividends payable
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—
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73
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Total current liabilities
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2,906
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3,209
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Long-term debt, less current portion
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9,824
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9,821
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Deferred income taxes
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4,180
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4,210
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Environmental and asset retirement obligations, less current portion
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3,767
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3,630
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Other liabilities
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2,398
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2,491
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Total liabilities
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23,075
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|
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23,361
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Equity:
|
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Stockholders’ equity:
|
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Common stock
|
158
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158
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Capital in excess of par value
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25,905
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25,830
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Accumulated deficit
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(12,718
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)
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(12,280
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)
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Accumulated other comprehensive loss
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(652
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)
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(676
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)
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Common stock held in treasury
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(3,739
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)
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(3,734
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)
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Total stockholders’ equity
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8,954
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9,298
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Noncontrolling interests
|
8,201
|
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8,150
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Total equity
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17,155
|
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17,448
|
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Total liabilities and equity
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$
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40,230
|
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$
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40,809
|
|
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Three Months Ended
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Six Months Ended
|
||||||||||||
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June 30,
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June 30,
|
||||||||||||
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2020
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2019
|
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2020
|
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2019
|
||||||||
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(In millions, except per share amounts)
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||||||||||||||
Revenues
|
$
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3,054
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$
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3,546
|
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$
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5,852
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$
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7,338
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Cost of sales:
|
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||||||||
Production and delivery
|
2,394
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3,005
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4,939
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5,929
|
|
||||
Depreciation, depletion and amortization
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358
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352
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699
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699
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||||
Metals inventory adjustments
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(139
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)
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2
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83
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|
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59
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||||
Total cost of sales
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2,613
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3,359
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5,721
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6,687
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Selling, general and administrative expenses
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91
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92
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201
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199
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Mining exploration and research expenses
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18
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31
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34
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58
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Environmental obligations and shutdown costs
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11
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23
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37
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65
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Net loss (gain) on sales of assets
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—
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8
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11
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(25
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)
|
||||
Total costs and expenses
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2,733
|
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3,513
|
|
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6,004
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6,984
|
|
||||
Operating income (loss)
|
321
|
|
|
33
|
|
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(152
|
)
|
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354
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|
||||
Interest expense, net
|
(115
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)
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(132
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)
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(242
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)
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(278
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)
|
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Net loss on early extinguishment of debt
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(9
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)
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—
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(41
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)
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(6
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)
|
||||
Other income, net
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20
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5
|
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40
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19
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|
||||
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings
|
217
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|
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(94
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)
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(395
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)
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89
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|
||||
(Provision for) benefit from income taxes
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(96
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)
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15
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(36
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)
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(90
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)
|
||||
Equity in affiliated companies’ net earnings
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3
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5
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6
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2
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||||
Net income (loss) from continuing operations
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124
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(74
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)
|
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(425
|
)
|
|
1
|
|
||||
Net gain from discontinued operations
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—
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—
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—
|
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|
1
|
|
||||
Net income (loss)
|
124
|
|
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(74
|
)
|
|
(425
|
)
|
|
2
|
|
||||
Net (income) loss attributable to noncontrolling interests
|
(71
|
)
|
|
2
|
|
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(13
|
)
|
|
(43
|
)
|
||||
Net income (loss) attributable to common stockholders
|
$
|
53
|
|
|
$
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(72
|
)
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$
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(438
|
)
|
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$
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(41
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)
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Basic and diluted net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
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Continuing operations
|
$
|
0.03
|
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|
$
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(0.05
|
)
|
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$
|
(0.30
|
)
|
|
$
|
(0.03
|
)
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
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$
|
0.03
|
|
|
$
|
(0.05
|
)
|
|
$
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(0.30
|
)
|
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$
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(0.03
|
)
|
|
|
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||||||||
Weighted-average common shares outstanding:
|
|
|
|
|
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||||||||
Basic
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1,453
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|
1,451
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1,453
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1,451
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Diluted
|
1,458
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|
1,451
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1,453
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|
1,451
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|
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|
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||||||||
Dividends declared per share of common stock
|
$
|
—
|
|
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.10
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
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(In millions)
|
||||||||||||||
Net income (loss)
|
$
|
124
|
|
|
$
|
(74
|
)
|
|
$
|
(425
|
)
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of taxes:
|
|
|
|
|
|
|
|
||||||||
Defined benefit plans:
|
|
|
|
|
|
|
|
||||||||
Amortization of unrecognized amounts included in net periodic benefit costs
|
12
|
|
|
13
|
|
|
24
|
|
|
24
|
|
||||
Foreign exchange gains (losses)
|
4
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Other comprehensive income
|
16
|
|
|
13
|
|
|
23
|
|
|
24
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total comprehensive income (loss)
|
140
|
|
|
(61
|
)
|
|
(402
|
)
|
|
26
|
|
||||
Total comprehensive (income) loss attributable to noncontrolling interests
|
(71
|
)
|
|
1
|
|
|
(12
|
)
|
|
(44
|
)
|
||||
Total comprehensive income (loss) attributable to common stockholders
|
$
|
69
|
|
|
$
|
(60
|
)
|
|
$
|
(414
|
)
|
|
$
|
(18
|
)
|
|
Six Months Ended
|
|
||||||
|
June 30,
|
|
||||||
|
2020
|
|
2019
|
|
||||
|
(In millions)
|
|
||||||
Cash flow from operating activities:
|
|
|
|
|
||||
Net (loss) income
|
$
|
(425
|
)
|
|
$
|
2
|
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
699
|
|
|
699
|
|
|
||
Metals inventory adjustments
|
83
|
|
|
59
|
|
|
||
Net loss (gain) on sales of assets
|
11
|
|
|
(25
|
)
|
|
||
Stock-based compensation
|
43
|
|
|
40
|
|
|
||
Net charges for environmental and asset retirement obligations, including accretion
|
112
|
|
|
109
|
|
|
||
Payments for environmental and asset retirement obligations
|
(119
|
)
|
|
(100
|
)
|
|
||
Net charges for defined pension and postretirement plans
|
45
|
|
|
53
|
|
|
||
Pension plan contributions
|
(29
|
)
|
|
(33
|
)
|
|
||
Net loss on early extinguishment of debt
|
41
|
|
|
6
|
|
|
||
Deferred income taxes
|
(28
|
)
|
|
20
|
|
|
||
PT Freeport Indonesia (PT-FI) surface water tax settlement
|
—
|
|
|
28
|
|
|
||
Charges for Cerro Verde royalty dispute
|
15
|
|
|
28
|
|
|
||
Payments for Cerro Verde royalty dispute
|
(90
|
)
|
|
(86
|
)
|
|
||
Other, net
|
(46
|
)
|
|
40
|
|
|
||
Changes in working capital and other:
|
|
|
|
|
||||
Accounts receivable
|
83
|
|
|
256
|
|
|
||
Inventories
|
168
|
|
|
254
|
|
|
||
Other current assets
|
(4
|
)
|
|
(26
|
)
|
|
||
Accounts payable and accrued liabilities
|
(73
|
)
|
|
9
|
|
|
||
Accrued income taxes and timing of other tax payments
|
(33
|
)
|
|
(245
|
)
|
|
||
Net cash provided by operating activities
|
453
|
|
|
1,088
|
|
|
||
|
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
||||
North America copper mines
|
(332
|
)
|
|
(417
|
)
|
|
||
South America
|
(125
|
)
|
|
(108
|
)
|
|
||
Indonesia
|
(634
|
)
|
|
(658
|
)
|
|
||
Molybdenum mines
|
(11
|
)
|
|
(6
|
)
|
|
||
Other
|
(35
|
)
|
|
(62
|
)
|
|
||
Proceeds from sales of assets
|
116
|
|
|
94
|
|
|
||
Other, net
|
(5
|
)
|
|
(10
|
)
|
|
||
Net cash used in investing activities
|
(1,026
|
)
|
|
(1,167
|
)
|
|
||
|
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
||||
Proceeds from debt
|
1,585
|
|
|
328
|
|
|
||
Repayments of debt
|
(1,527
|
)
|
|
(1,563
|
)
|
|
||
Cash dividends and distributions paid:
|
|
|
|
|
||||
Common stock
|
(73
|
)
|
|
(146
|
)
|
|
||
Noncontrolling interests
|
—
|
|
|
(79
|
)
|
|
||
Contributions from noncontrolling interests
|
74
|
|
|
100
|
|
|
||
Stock-based awards net payments
|
(4
|
)
|
|
(6
|
)
|
|
||
Debt financing costs and other, net
|
(31
|
)
|
|
(4
|
)
|
|
||
Net cash provided by (used in) financing activities
|
24
|
|
|
(1,370
|
)
|
|
||
|
|
|
|
|
||||
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
|
(549
|
)
|
|
(1,449
|
)
|
|
||
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 period
|
$
|
1,729
|
|
|
$
|
3,006
|
|
|
|
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 March 31, 2020
|
1,583
|
|
|
$
|
158
|
|
|
$
|
25,875
|
|
|
$
|
(12,771
|
)
|
|
$
|
(668
|
)
|
|
131
|
|
|
$
|
(3,739
|
)
|
|
$
|
8,855
|
|
|
$
|
8,108
|
|
|
$
|
16,963
|
|
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
1
|
|
|
10
|
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
|
42
|
|
||||||||
Net income attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
53
|
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
71
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||||
Balance at June 30, 2020
|
1,583
|
|
|
$
|
158
|
|
|
$
|
25,905
|
|
|
$
|
(12,718
|
)
|
|
$
|
(652
|
)
|
|
131
|
|
|
$
|
(3,739
|
)
|
|
$
|
8,954
|
|
|
$
|
8,201
|
|
|
$
|
17,155
|
|
|
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 March 31, 2019
|
1,582
|
|
|
$
|
158
|
|
|
$
|
25,963
|
|
|
$
|
(12,010
|
)
|
|
$
|
(594
|
)
|
|
131
|
|
|
$
|
(3,734
|
)
|
|
$
|
9,783
|
|
|
$
|
8,058
|
|
|
$
|
17,841
|
|
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
(73
|
)
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
51
|
|
|
100
|
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
(72
|
)
|
||||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
1
|
|
|
13
|
|
||||||||
Balance at June 30, 2019
|
1,582
|
|
|
$
|
158
|
|
|
$
|
25,949
|
|
|
$
|
(12,082
|
)
|
|
$
|
(582
|
)
|
|
131
|
|
|
$
|
(3,734
|
)
|
|
$
|
9,709
|
|
|
$
|
8,108
|
|
|
$
|
17,817
|
|
|
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, 2019
|
1,582
|
|
|
$
|
158
|
|
|
$
|
25,830
|
|
|
$
|
(12,280
|
)
|
|
$
|
(676
|
)
|
|
131
|
|
|
$
|
(3,734
|
)
|
|
$
|
9,298
|
|
|
$
|
8,150
|
|
|
$
|
17,448
|
|
Exercised and issued stock-based awards
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
33
|
|
|
1
|
|
|
34
|
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
38
|
|
|
74
|
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(438
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(438
|
)
|
|
—
|
|
|
(438
|
)
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
(1
|
)
|
|
23
|
|
||||||||
Balance at June 30, 2020
|
1,583
|
|
|
$
|
158
|
|
|
$
|
25,905
|
|
|
$
|
(12,718
|
)
|
|
$
|
(652
|
)
|
|
131
|
|
|
$
|
(3,739
|
)
|
|
$
|
8,954
|
|
|
$
|
8,201
|
|
|
$
|
17,155
|
|
|
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
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(7
|
)
|
|
26
|
|
|
—
|
|
|
26
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
(146
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(146
|
)
|
|
(70
|
)
|
|
(216
|
)
|
||||||||
Change in ownership interests
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(11
|
)
|
|
(12
|
)
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
51
|
|
|
100
|
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(41
|
)
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
43
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
1
|
|
|
24
|
|
||||||||
Balance at June 30, 2019
|
1,582
|
|
|
$
|
158
|
|
|
$
|
25,949
|
|
|
$
|
(12,082
|
)
|
|
$
|
(582
|
)
|
|
131
|
|
|
$
|
(3,734
|
)
|
|
$
|
9,709
|
|
|
$
|
8,108
|
|
|
$
|
17,817
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
||||||||
Net income (loss) from continuing operations
|
$
|
124
|
|
|
$
|
(74
|
)
|
|
$
|
(425
|
)
|
|
$
|
1
|
|
|
Net (income) loss from continuing operations attributable to noncontrolling interests
|
(71
|
)
|
|
2
|
|
|
(13
|
)
|
|
(43
|
)
|
|
||||
Undistributed earnings allocated to participating securities
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
||||
Net income (loss) from continuing operations attributable to common stockholders
|
50
|
|
|
(75
|
)
|
|
(441
|
)
|
|
(45
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income from discontinued operations attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders
|
$
|
50
|
|
|
$
|
(75
|
)
|
|
$
|
(441
|
)
|
|
$
|
(44
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares of common stock outstanding
|
1,453
|
|
|
1,451
|
|
|
1,453
|
|
|
1,451
|
|
|
||||
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)
|
5
|
|
|
—
|
|
a
|
—
|
|
a
|
—
|
|
a
|
||||
Diluted weighted-average shares of common stock outstanding
|
1,458
|
|
|
1,451
|
|
|
1,453
|
|
|
1,451
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.03
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(0.03
|
)
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
$
|
0.03
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(0.03
|
)
|
|
a.
|
Excludes approximately 10 million shares in second-quarter 2019, 10 million shares for the first six months of 2020 and 12 million shares for the first six months of 2019 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs that were anti-dilutive.
|
|
June 30,
2020 |
|
December 31, 2019
|
|
||||
Current inventories:
|
|
|
|
|
||||
Total materials and supplies, neta
|
$
|
1,604
|
|
|
$
|
1,649
|
|
|
|
|
|
|
|
||||
Mill stockpiles
|
$
|
166
|
|
|
$
|
220
|
|
|
Leach stockpiles
|
864
|
|
|
923
|
|
|
||
Total current mill and leach stockpiles
|
$
|
1,030
|
|
|
$
|
1,143
|
|
|
|
|
|
|
|
||||
Raw materials (primarily concentrate)
|
$
|
287
|
|
|
$
|
318
|
|
|
Work-in-process
|
110
|
|
|
124
|
|
|
||
Finished goods
|
779
|
|
|
839
|
|
|
||
Total product
|
$
|
1,176
|
|
|
$
|
1,281
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
207
|
|
|
$
|
181
|
|
|
Leach stockpiles
|
1,239
|
|
|
1,244
|
|
|
||
Total long-term mill and leach stockpilesb
|
$
|
1,446
|
|
|
$
|
1,425
|
|
|
a.
|
Materials and supplies inventory was net of obsolescence reserves totaling $31 million at June 30, 2020, and $24 million at December 31, 2019.
|
b.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
Six Months Ended
|
|
||||||
|
June 30,
|
|
||||||
|
2020
|
|
2019
|
|
||||
U.S. operations
|
$
|
58
|
|
a
|
$
|
20
|
|
b
|
International operations
|
(94
|
)
|
|
(110
|
)
|
|
||
Total
|
$
|
(36
|
)
|
|
$
|
(90
|
)
|
|
a.
|
Includes a tax credit of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of FCX’s interest in the lower zone of the Timok exploration project in Serbia.
|
b.
|
Includes a tax credit of $18 million primarily associated with state law changes.
|
|
|
June 30,
2020 |
|
December 31, 2019
|
||||
Senior notes and debentures:
|
|
|
|
|
||||
Issued by FCX
|
|
$
|
8,621
|
|
|
$
|
8,602
|
|
Issued by Freeport Minerals Corporation (FMC)
|
|
357
|
|
|
357
|
|
||
Cerro Verde credit facility
|
|
827
|
|
|
826
|
|
||
Other
|
|
109
|
|
|
41
|
|
||
Total debt
|
|
9,914
|
|
|
9,826
|
|
||
Less current portion of debt
|
|
(90
|
)
|
|
(5
|
)
|
||
Long-term debt
|
|
$
|
9,824
|
|
|
$
|
9,821
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Copper futures and swap contracts:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses):
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
$
|
40
|
|
|
$
|
(13
|
)
|
|
$
|
7
|
|
|
$
|
5
|
|
Hedged item – firm sales commitments
|
(40
|
)
|
|
13
|
|
|
(7
|
)
|
|
(5
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Realized losses:
|
|
|
|
|
|
|
|
||||||||
Matured derivative financial instruments
|
(8
|
)
|
|
(3
|
)
|
|
(17
|
)
|
|
(1
|
)
|
|
Open Positions
|
|
Average Price
Per Unit
|
|
Maturities Through
|
|||||||
|
|
Contract
|
|
Market
|
|
|||||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
314
|
|
|
$
|
2.50
|
|
|
$
|
2.73
|
|
|
November 2020
|
Gold (thousands of ounces)
|
87
|
|
|
1,725
|
|
|
1,779
|
|
|
August 2020
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
116
|
|
|
2.48
|
|
|
2.73
|
|
|
September 2020
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Embedded derivatives in provisional sales contracts:a
|
|
|
|
|
|
|
|
||||||||
Copper
|
$
|
162
|
|
|
$
|
(122
|
)
|
|
$
|
(76
|
)
|
|
$
|
—
|
|
Gold and other metals
|
17
|
|
|
13
|
|
|
24
|
|
|
11
|
|
||||
Copper forward contractsb
|
(4
|
)
|
|
(4
|
)
|
|
19
|
|
|
(3
|
)
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
|
June 30,
2020 |
|
December 31, 2019
|
||||
Commodity Derivative Assets:
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||
Copper futures and swap contracts
|
|
$
|
17
|
|
|
$
|
6
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional
|
|
|
|
|
||||
sales/purchase contracts
|
|
77
|
|
|
68
|
|
||
Total derivative assets
|
|
$
|
94
|
|
|
$
|
74
|
|
|
|
|
|
|
||||
Commodity Derivative Liabilities:
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||
Copper futures and swap contracts
|
|
$
|
6
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||
Embedded derivatives in provisional
|
|
|
|
|
||||
sales/purchase contracts
|
|
28
|
|
|
20
|
|
||
Copper forward contracts
|
|
—
|
|
|
1
|
|
||
Total derivative liabilities
|
|
$
|
34
|
|
|
$
|
21
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
|
|
June 30,
2020 |
|
December 31, 2019
|
|
June 30,
2020 |
|
December 31, 2019
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
77
|
|
|
$
|
68
|
|
|
$
|
28
|
|
|
$
|
20
|
|
Copper derivatives
|
|
17
|
|
|
6
|
|
|
6
|
|
|
1
|
|
||||
|
|
94
|
|
|
74
|
|
|
34
|
|
|
21
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Copper derivatives
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
77
|
|
|
68
|
|
|
28
|
|
|
20
|
|
||||
Copper derivatives
|
|
13
|
|
|
6
|
|
|
2
|
|
|
1
|
|
||||
|
|
$
|
90
|
|
|
$
|
74
|
|
|
$
|
30
|
|
|
$
|
21
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
76
|
|
|
$
|
66
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Other current assets
|
|
13
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
1
|
|
|
2
|
|
|
28
|
|
|
21
|
|
||||
|
|
$
|
90
|
|
|
$
|
74
|
|
|
$
|
30
|
|
|
$
|
21
|
|
|
|
June 30,
2020 |
|
December 31, 2019
|
||||
Balance sheet components:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,465
|
|
|
$
|
2,020
|
|
Restricted cash and restricted cash equivalents included in:
|
|
|
|
|
||||
Other current assets
|
|
132
|
|
|
100
|
|
||
Other assets
|
|
132
|
|
|
158
|
|
||
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
|
|
$
|
1,729
|
|
|
$
|
2,278
|
|
|
At June 30, 2020
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
$
|
29
|
|
|
$
|
29
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
5
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
34
|
|
|
34
|
|
|
29
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
63
|
|
|
63
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Corporate bonds
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
40
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||||
Government bonds and notes
|
32
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||||
Asset-backed securities
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||
Money market funds
|
9
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
208
|
|
|
208
|
|
|
63
|
|
|
9
|
|
|
136
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
|
77
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
—
|
|
||||||
Copper futures and swap contractsc
|
13
|
|
|
13
|
|
|
—
|
|
|
11
|
|
|
2
|
|
|
—
|
|
||||||
Copper forward contractsc
|
4
|
|
|
4
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
||||||
Total
|
94
|
|
|
94
|
|
|
—
|
|
|
13
|
|
|
81
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the sale of the
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deepwater GOM oil and gas propertiesa
|
115
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:c
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/purchase contracts in a gross liability position
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||||
Copper forward contracts
|
6
|
|
|
6
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
—
|
|
||||||
Total
|
34
|
|
|
34
|
|
|
—
|
|
|
2
|
|
|
32
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portiond
|
9,914
|
|
|
10,013
|
|
|
—
|
|
|
—
|
|
|
10,013
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 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
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
31
|
|
|
31
|
|
|
27
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
59
|
|
|
59
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
43
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
||||||
Government bonds and notes
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||||
Corporate bonds
|
33
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||||
Asset-backed securities
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Money market funds
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
196
|
|
|
196
|
|
|
59
|
|
|
3
|
|
|
134
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
|
68
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
||||||
Copper futures and swap contractsc
|
6
|
|
|
6
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
—
|
|
||||||
Contingent consideration for the sale of onshore
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
California oil and gas propertiesa
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||
Total
|
85
|
|
|
85
|
|
|
—
|
|
|
5
|
|
|
80
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the sale of the
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deepwater GOM oil and gas propertiesa
|
122
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:c
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/purchase contracts in a gross liability position
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||||
Copper forward contracts
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portiond
|
9,826
|
|
|
10,239
|
|
|
—
|
|
|
—
|
|
|
10,239
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
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 $132 million at June 30, 2020, and $100 million at December 31, 2019, and (ii) other assets of $131 million at June 30, 2020, and $157 million at December 31, 2019, 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, 2020
|
$
|
108
|
|
|
Net unrealized loss related to assets still held at the end of the period
|
(22
|
)
|
|
|
Settlements
|
(8
|
)
|
|
|
Fair value at June 30, 2020
|
$
|
78
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Copper:
|
|
|
|
|
|
|
|
||||||||
Cathode
|
$
|
1,124
|
|
|
$
|
959
|
|
|
$
|
1,961
|
|
|
$
|
1,818
|
|
Concentrate
|
749
|
|
|
1,134
|
|
|
1,598
|
|
|
2,299
|
|
||||
Rod and other refined copper products
|
303
|
|
|
516
|
|
|
845
|
|
|
1,023
|
|
||||
Purchased coppera
|
166
|
|
|
325
|
|
|
401
|
|
|
662
|
|
||||
Gold
|
341
|
|
|
305
|
|
|
611
|
|
|
696
|
|
||||
Molybdenum
|
194
|
|
|
327
|
|
|
437
|
|
|
615
|
|
||||
Otherb
|
115
|
|
|
218
|
|
|
272
|
|
|
495
|
|
||||
Adjustments to revenues:
|
|
|
|
|
|
|
|
||||||||
Treatment charges
|
(75
|
)
|
|
(100
|
)
|
|
(155
|
)
|
|
(205
|
)
|
||||
Royalty expensec
|
(26
|
)
|
|
(19
|
)
|
|
(46
|
)
|
|
(49
|
)
|
||||
Export dutiesd
|
(16
|
)
|
|
(10
|
)
|
|
(20
|
)
|
|
(27
|
)
|
||||
Revenues from contracts with customers
|
2,875
|
|
|
3,655
|
|
|
5,904
|
|
|
7,327
|
|
||||
Embedded derivativese
|
179
|
|
|
(109
|
)
|
|
(52
|
)
|
|
11
|
|
||||
Total consolidated revenues
|
$
|
3,054
|
|
|
$
|
3,546
|
|
|
$
|
5,852
|
|
|
$
|
7,338
|
|
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
|
|
Bagdad
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
|
|
Total
|
|
Mining
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||
Three Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
36
|
|
|
$
|
471
|
|
|
$
|
106
|
|
|
$
|
577
|
|
|
$
|
683
|
|
a
|
$
|
—
|
|
|
$
|
1,106
|
|
|
$
|
464
|
|
|
$
|
188
|
|
b
|
$
|
3,054
|
|
Intersegment
|
447
|
|
|
166
|
|
|
339
|
|
|
952
|
|
c
|
52
|
|
|
—
|
|
|
52
|
|
|
35
|
|
|
58
|
|
|
8
|
|
|
2
|
|
|
(1,107
|
)
|
|
—
|
|
|||||||||||||
Production and delivery
|
348
|
|
|
118
|
|
|
321
|
|
|
787
|
|
|
334
|
|
|
104
|
|
|
438
|
|
|
378
|
|
|
61
|
|
|
1,138
|
|
|
446
|
|
|
(854
|
)
|
|
2,394
|
|
|||||||||||||
Depreciation, depletion and amortization
|
43
|
|
|
13
|
|
|
33
|
|
|
89
|
|
|
88
|
|
|
14
|
|
|
102
|
|
|
124
|
|
|
15
|
|
|
6
|
|
|
7
|
|
|
15
|
|
|
358
|
|
|||||||||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
(89
|
)
|
|
—
|
|
|
(57
|
)
|
|
(57
|
)
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
5
|
|
|
(139
|
)
|
|||||||||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
56
|
|
|
91
|
|
|||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
18
|
|
|||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|||||||||||||
Operating income (loss)
|
76
|
|
|
35
|
|
|
88
|
|
|
199
|
|
|
100
|
|
|
45
|
|
|
145
|
|
|
188
|
|
|
(19
|
)
|
|
(31
|
)
|
|
8
|
|
|
(169
|
)
|
|
321
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
92
|
|
|
115
|
|
|||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
16
|
|
|
45
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(28
|
)
|
|
96
|
|
|||||||||||||
Total assets at June 30, 2020
|
2,697
|
|
|
794
|
|
|
4,404
|
|
|
7,895
|
|
|
8,515
|
|
|
1,631
|
|
|
10,146
|
|
|
16,848
|
|
|
1,777
|
|
|
259
|
|
|
726
|
|
|
2,579
|
|
|
40,230
|
|
|||||||||||||
Capital expenditures
|
27
|
|
|
12
|
|
|
109
|
|
|
148
|
|
|
31
|
|
|
20
|
|
|
51
|
|
|
308
|
|
|
4
|
|
|
2
|
|
|
5
|
|
|
9
|
|
|
527
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
85
|
|
|
$
|
562
|
|
|
$
|
128
|
|
|
$
|
690
|
|
|
$
|
583
|
|
a
|
$
|
—
|
|
|
$
|
1,171
|
|
|
$
|
546
|
|
|
$
|
471
|
|
b
|
$
|
3,546
|
|
Intersegment
|
491
|
|
|
204
|
|
|
340
|
|
|
1,035
|
|
|
71
|
|
|
—
|
|
|
71
|
|
|
(1
|
)
|
|
109
|
|
|
4
|
|
|
—
|
|
|
(1,218
|
)
|
|
—
|
|
|||||||||||||
Production and delivery
|
348
|
|
|
128
|
|
|
348
|
|
|
824
|
|
|
455
|
|
|
126
|
|
|
581
|
|
|
554
|
|
|
78
|
|
|
1,171
|
|
|
515
|
|
|
(718
|
)
|
|
3,005
|
|
|||||||||||||
Depreciation, depletion and amortization
|
43
|
|
|
11
|
|
|
33
|
|
|
87
|
|
|
101
|
|
|
18
|
|
|
119
|
|
|
99
|
|
|
18
|
|
|
3
|
|
|
7
|
|
|
19
|
|
|
352
|
|
|||||||||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|||||||||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
55
|
|
|
92
|
|
|||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
31
|
|
|||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|||||||||||||
Net loss on sales of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|||||||||||||
Operating income (loss)
|
116
|
|
|
65
|
|
|
26
|
|
|
207
|
|
|
75
|
|
|
(16
|
)
|
|
59
|
|
|
(101
|
)
|
|
13
|
|
|
1
|
|
|
19
|
|
|
(165
|
)
|
|
33
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Interest expense, net
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
99
|
|
|
132
|
|
|||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
(9
|
)
|
|
11
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
7
|
|
|
(15
|
)
|
|||||||||||||
Total assets at June 30, 2019
|
2,917
|
|
|
742
|
|
|
4,179
|
|
|
7,838
|
|
|
8,571
|
|
|
1,699
|
|
|
10,270
|
|
|
16,261
|
|
|
1,792
|
|
|
250
|
|
|
764
|
|
|
3,911
|
|
|
41,086
|
|
|||||||||||||
Capital expenditures
|
49
|
|
|
33
|
|
|
125
|
|
|
207
|
|
|
43
|
|
|
4
|
|
|
47
|
|
|
339
|
|
|
2
|
|
|
1
|
|
|
5
|
|
|
28
|
|
|
629
|
|
a.
|
Includes PT-FI's sales to PT Smelting totaling $433 million in second-quarter 2020 and $470 million in second-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.
|
c.
|
Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
|
a.
|
Includes PT-FI's sales to PT Smelting totaling $813 million for the first six months of 2020 and $879 million for the first six months of 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.
|
c.
|
Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Copper (millions of recoverable pounds):
|
|
|
|
North America copper mines
|
1,430
|
|
|
South America mining
|
950
|
|
|
Indonesia mining
|
770
|
|
|
Total
|
3,150
|
|
|
|
|
|
|
Gold (millions of recoverable ounces)
|
0.8
|
|
|
|
|
|
|
Molybdenum (millions of recoverable pounds)
|
77
|
|
a
|
a.
|
Projected molybdenum sales include 25 million pounds produced by our Molybdenum mines and 52 million pounds produced by our North America and South America copper mines.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
||||||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||||||||||
Revenuesa,b
|
$
|
3,054
|
|
|
$
|
3,546
|
|
|
$
|
5,852
|
|
|
$
|
7,338
|
|
|
Operating income (loss)a,c,d
|
$
|
321
|
|
e
|
$
|
33
|
|
f,g
|
$
|
(152
|
)
|
e,g
|
$
|
354
|
|
f,g
|
Net income (loss) attributable to common stockh,i
|
$
|
53
|
|
j,k
|
$
|
(72
|
)
|
|
$
|
(438
|
)
|
j,k
|
$
|
(41
|
)
|
j,k
|
Diluted net income (loss) per share of common stock
|
$
|
0.03
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(0.03
|
)
|
|
Diluted weighted-average common shares outstanding
|
1,458
|
|
|
1,451
|
|
|
1,453
|
|
|
1,451
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating cash flowsl
|
$
|
491
|
|
|
$
|
554
|
|
|
$
|
453
|
|
|
$
|
1,088
|
|
|
Capital expenditures
|
$
|
527
|
|
|
$
|
629
|
|
|
$
|
1,137
|
|
|
$
|
1,251
|
|
|
At June 30:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
1,465
|
|
|
$
|
2,623
|
|
|
$
|
1,465
|
|
|
$
|
2,623
|
|
|
Total debt, including current portion
|
$
|
9,914
|
|
|
$
|
9,916
|
|
|
$
|
9,914
|
|
|
$
|
9,916
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Refer to Note 9 for a summary of revenues and operating income (loss) by operating division.
|
b.
|
Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $55 million ($19 million to net income attributable to common stock or $0.01 per share) in second-quarter 2020, $(83) million ($(35) million to net loss attributable to common stock or $(0.02) per share) in second-quarter 2019, $(102) million ($(43) million to net loss attributable to common stock or $(0.03) per share) for the first six months of 2020 and $58 million ($23 million to net loss attributable to common stock or $0.02 per share) for the first six months of 2019 (refer to Note 6). The second-quarter and first six months of 2020 also include reductions to revenues totaling $24 million ($24 million to net income (loss) attributable to common stock or $0.02 per share) related to forward sales contracts (refer to Note 6).
|
c.
|
Includes metals inventory adjustments totaling $139 million ($101 million to net income attributable to common stock or $0.07 per share) in second-quarter 2020, $(2) million ($(1) million to net loss attributable to common stock or less than $0.01 per share) in second-quarter 2019, $(83) million ($(81) million to net loss attributable to common stock or $(0.06) per share) for the first six months of 2020 and $(59) million ($(27) million to net loss attributable to common stock or $(0.02) per share) for the first six months of 2019.
|
d.
|
Includes net charges to environmental obligations and related litigation reserves totaling $1 million ($1 million to net income attributable to common stock or less than $0.01 per share) in second-quarter 2020, $9 million ($9 million to net loss attributable to common stock or $0.01 per share) in second-quarter 2019, $15 million ($15 million to net loss attributable to common stock or $0.01 per share) for the first six months of 2020 and $44 million ($44 million to net loss attributable to common stock or $0.03 per share) for the first six months of 2019.
|
e.
|
Includes charges totaling $196 million ($144 million to net income attributable to common stock or $0.10 per share) in second-quarter 2020 and $224 million ($153 million to net loss attributable to common stock or $0.11 per share) for the first six months of 2020 associated with the COVID-19 pandemic and revised operating plans, including employee separation costs. These charges were recorded to production and delivery ($153 million in second-quarter 2020 and $173 million for the first six months of 2020); depreciation, depletion and amortization ($21 million in second-quarter 2020 and $29 million for the first six months of 2020); selling, general and administrative ($15 million for each of the second quarter and first six months of 2020) and mining exploration and research expense ($7 million for each of the second quarter and first six months of 2020).
|
f.
|
Includes a charge of $28 million ($14 million to net loss attributable to common stock or $0.01 per share) for the second-quarter and first six months of 2019 for an adjustment to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
|
g.
|
Includes net (losses) gains on sales of assets totaling $(8) million ($(8) million to net loss attributable to common stock or $(0.01) per share) in second-quarter 2019, $(11) million ($(11) million to net loss attributable to common stock or $(0.01) per share) for the first six months of 2020 and $25 million ($25 million to net loss attributable to common stock or $0.02 per share) for the first six months of 2019 (refer to Note 7 for discussion of adjustments to the estimated fair value of contingent consideration related to the 2016 sale of onshore California oil and gas properties).
|
h.
|
Includes net tax credits of $53 million ($0.04 per share) in second-quarter 2020, $18 million ($0.01 per share) in second-quarter 2019, $52 million ($0.04 per share) for the first six months of 2020 and $24 million ($0.02 per share) for the first six months of 2019. Refer to “Income Taxes” for further discussion of these net tax credits.
|
i.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to “Operations – Smelting and Refining” for a summary of net impacts from changes in these deferrals.
|
j.
|
Includes after-tax net losses on early extinguishment of debt totaling $9 million ($0.01 per share) in second-quarter 2020, $41 million ($0.03 per share) for the first six months of 2020 and $5 million (less than $0.01 per share) for the first six months of 2019 (refer to Note 5).
|
k.
|
Includes other net credits (charges) totaling $10 million ($0.01 per share) in second quarter 2020, $2 million (less than $0.01 per share) for the first six months of 2020 and $(10) million ($(0.01) per share) for the first six months of 2019.
|
l.
|
Working capital and other sources totaled $22 million in second-quarter 2020, $304 million in second-quarter 2019, $141 million for the first six months of 2020 and $248 million for the first six months of 2019.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
||||||||
SUMMARY OPERATING DATA
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
||||||||
Production
|
767
|
|
|
776
|
|
|
1,498
|
|
|
1,556
|
|
|
||||
Sales, excluding purchases
|
759
|
|
|
807
|
|
|
1,488
|
|
|
1,591
|
|
|
||||
Average realized price per pound
|
$
|
2.55
|
|
a
|
$
|
2.75
|
|
|
$
|
2.53
|
|
a
|
$
|
2.78
|
|
|
Site production and delivery costs per poundb
|
$
|
1.82
|
|
|
$
|
2.26
|
|
|
$
|
2.00
|
|
|
$
|
2.21
|
|
|
Unit net cash costs per poundb
|
$
|
1.47
|
|
|
$
|
1.92
|
|
|
$
|
1.68
|
|
|
$
|
1.85
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
||||||||
Production
|
191
|
|
|
160
|
|
|
347
|
|
|
326
|
|
|
||||
Sales, excluding purchases
|
184
|
|
|
189
|
|
|
328
|
|
|
431
|
|
|
||||
Average realized price per ounce
|
$
|
1,749
|
|
|
$
|
1,351
|
|
|
$
|
1,709
|
|
|
$
|
1,315
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
||||||||
Production
|
19
|
|
|
25
|
|
|
38
|
|
|
48
|
|
|
||||
Sales, excluding purchases
|
18
|
|
|
24
|
|
|
39
|
|
|
46
|
|
|
||||
Average realized price per pound
|
$
|
10.53
|
|
|
$
|
13.15
|
|
|
$
|
10.84
|
|
|
$
|
12.93
|
|
|
a.
|
Includes reductions to average realized prices of $0.03 per pound of copper in second-quarter 2020 and $0.02 per pound of copper for the first six months of 2020 related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound (refer to Note 6). There are no remaining forward sales contracts.
|
b.
|
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 June 30
|
|
Six Months Ended June 30
|
||||
|
|
|
|
||||
Consolidated revenues - 2019 period
|
$
|
3,546
|
|
|
$
|
7,338
|
|
Lower sales volumes:
|
|
|
|
||||
Copper
|
(132
|
)
|
|
(287
|
)
|
||
Gold
|
(8
|
)
|
|
(135
|
)
|
||
Molybdenum
|
(85
|
)
|
|
(90
|
)
|
||
(Lower) higher average realized prices:
|
|
|
|
||||
Copper
|
(152
|
)
|
|
(372
|
)
|
||
Gold
|
73
|
|
|
129
|
|
||
Molybdenum
|
(46
|
)
|
|
(82
|
)
|
||
Adjustments for prior period provisionally priced copper sales
|
138
|
|
|
(160
|
)
|
||
Lower Atlantic Copper revenues
|
(80
|
)
|
|
(216
|
)
|
||
Lower revenues from purchased copper
|
(158
|
)
|
|
(261
|
)
|
||
Lower cobalt revenues
|
(84
|
)
|
|
(180
|
)
|
||
Lower treatment charges
|
25
|
|
|
50
|
|
||
(Higher) lower royalties and export duties
|
(13
|
)
|
|
10
|
|
||
Other, including intercompany eliminations
|
30
|
|
|
108
|
|
||
Consolidated revenues - 2020 period
|
$
|
3,054
|
|
|
$
|
5,852
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
||||||||||||||||||
|
2020
|
|
2019
|
|
||||||||||||||||
|
Income (Loss)a
|
|
Effective
Tax Rate
|
|
Income Tax (Provision) Benefit
|
|
Income (Loss)a
|
|
Effective
Tax Rate
|
|
Income Tax (Provision) Benefit
|
|
||||||||
U.S.b
|
$
|
(581
|
)
|
|
10%
|
|
$
|
58
|
|
c
|
$
|
(183
|
)
|
|
10%
|
|
$
|
19
|
|
d
|
South America
|
(57
|
)
|
|
58%
|
|
33
|
|
|
294
|
|
|
40%
|
|
(117
|
)
|
|
||||
Indonesia
|
169
|
|
|
54%
|
|
(91
|
)
|
e
|
(13
|
)
|
|
69%
|
|
9
|
|
f
|
||||
Eliminations and other
|
74
|
|
|
N/A
|
|
(16
|
)
|
|
(9
|
)
|
|
N/A
|
|
(10
|
)
|
|
||||
Rate adjustmentg
|
—
|
|
|
N/A
|
|
(20
|
)
|
|
—
|
|
|
N/A
|
|
9
|
|
|
||||
Consolidated FCX
|
$
|
(395
|
)
|
|
(9)%
|
h
|
$
|
(36
|
)
|
|
$
|
89
|
|
|
101%
|
|
$
|
(90
|
)
|
|
a.
|
Represents income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings.
|
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 $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of our interest in the lower zone of the Timok exploration project in Serbia. Also includes a tax credit of $6 million associated with the removal of a valuation allowance on deferred tax assets.
|
d.
|
Includes tax credits totaling $18 million primarily associated with state law changes.
|
e.
|
Includes a tax charge of $8 million ($7 million net of noncontrolling interest) associated with an unfavorable 2012 Indonesia Supreme Court ruling.
|
f.
|
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).
|
g.
|
In accordance with applicable accounting rules, we adjust our interim provision for income taxes to equal our consolidated tax rate.
|
h.
|
Our 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 the first six months of 2020 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 June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Operating Data, Net of Joint Venture Interests
|
|
|
|
|
|
|
|
||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Production
|
368
|
|
|
370
|
|
|
714
|
|
|
706
|
|
||||
Sales, excluding purchases
|
368
|
|
|
369
|
|
|
723
|
|
|
689
|
|
||||
Average realized price per pound
|
$
|
2.42
|
|
a
|
$
|
2.78
|
|
|
$
|
2.50
|
|
a
|
$
|
2.80
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Productionb
|
9
|
|
|
9
|
|
|
17
|
|
|
16
|
|
||||
|
|
|
|
|
|
|
|
||||||||
100% Operating Data
|
|
|
|
|
|
|
|
||||||||
Leach operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
744,000
|
|
|
797,600
|
|
|
736,100
|
|
|
751,600
|
|
||||
Average copper ore grade (percent)
|
0.28
|
|
|
0.23
|
|
|
0.28
|
|
|
0.23
|
|
||||
Copper production (millions of recoverable pounds)
|
265
|
|
|
245
|
|
|
500
|
|
|
471
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
286,200
|
|
|
320,300
|
|
|
309,800
|
|
|
317,900
|
|
||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
0.37
|
|
|
0.36
|
|
|
0.34
|
|
|
0.34
|
|
||||
Molybdenum
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
||||
Copper recovery rate (percent)
|
84.6
|
|
|
87.4
|
|
|
85.8
|
|
|
87.6
|
|
||||
Copper production (millions of recoverable pounds)
|
176
|
|
|
195
|
|
|
354
|
|
|
371
|
|
a.
|
Includes reductions to average realized prices of $0.06 per pound of copper in second-quarter 2020 and $0.03 per pound of copper for the first six months of 2020 related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
|
b.
|
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 June 30,
|
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denuma
|
|
|
Copper
|
|
Molyb-
denuma |
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.42
|
|
b
|
$
|
2.42
|
|
|
$
|
8.33
|
|
|
$
|
2.78
|
|
|
$
|
2.78
|
|
|
$
|
12.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash
and other costs shown below
|
1.85
|
|
|
1.73
|
|
|
6.76
|
|
|
2.05
|
|
|
1.88
|
|
|
9.53
|
|
|
||||||
By-product credits
|
(0.17
|
)
|
|
—
|
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.10
|
|
|
0.10
|
|
|
—
|
|
|
0.11
|
|
|
0.10
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.78
|
|
|
1.83
|
|
|
6.76
|
|
|
1.90
|
|
|
1.98
|
|
|
9.53
|
|
|
||||||
DD&A
|
0.24
|
|
|
0.22
|
|
|
0.55
|
|
|
0.24
|
|
|
0.22
|
|
|
0.77
|
|
|
||||||
Metals inventory adjustments
|
(0.24
|
)
|
|
(0.24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Noncash and other costs, net
|
0.09
|
|
c
|
0.09
|
|
|
0.08
|
|
|
0.03
|
|
|
0.02
|
|
|
0.23
|
|
|
||||||
Total unit costs
|
1.87
|
|
|
1.90
|
|
|
7.39
|
|
|
2.17
|
|
|
2.22
|
|
|
10.53
|
|
|
||||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
(0.04
|
)
|
|
(0.04
|
)
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
0.57
|
|
|
$
|
0.54
|
|
|
$
|
0.94
|
|
|
$
|
0.57
|
|
|
$
|
0.52
|
|
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
368
|
|
|
368
|
|
|
|
|
369
|
|
|
369
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)a
|
|
|
|
|
9
|
|
|
|
|
|
|
9
|
|
|
|
Six Months Ended June 30,
|
|
||||||||||||||||||||||
|
2020
|
|
2019
|
|
||||||||||||||||||||
|
By- Product Method
|
|
Co-Product Method
|
|
By- Product Method
|
|
Co-Product Method
|
|
||||||||||||||||
|
|
Copper
|
|
Molyb-
denuma
|
|
|
Copper
|
|
Molyb-
denuma
|
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.50
|
|
b
|
$
|
2.50
|
|
|
$
|
8.99
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
12.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
2.00
|
|
|
1.85
|
|
|
7.81
|
|
|
2.05
|
|
|
1.87
|
|
|
9.69
|
|
|
||||||
By-product credits
|
(0.19
|
)
|
|
—
|
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
|
||||||
Treatment charges
|
0.10
|
|
|
0.10
|
|
|
—
|
|
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
||||||
Unit net cash costs
|
1.91
|
|
|
1.95
|
|
|
7.81
|
|
|
1.90
|
|
|
1.98
|
|
|
9.69
|
|
|
||||||
DD&A
|
0.25
|
|
|
0.23
|
|
|
0.64
|
|
|
0.25
|
|
|
0.22
|
|
|
0.75
|
|
|
||||||
Metals inventory adjustments
|
0.08
|
|
|
0.07
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Noncash and other costs, net
|
0.09
|
|
c
|
0.09
|
|
|
0.15
|
|
|
0.05
|
|
|
0.04
|
|
|
0.22
|
|
|
||||||
Total unit costs
|
2.33
|
|
|
2.34
|
|
|
8.60
|
|
|
2.20
|
|
|
2.24
|
|
|
10.66
|
|
|
||||||
Other revenue adjustments, primarily for pricing on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
||||||
Gross profit per pound
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.39
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
722
|
|
|
722
|
|
|
|
|
689
|
|
|
689
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)a
|
|
|
|
|
17
|
|
|
|
|
|
|
16
|
|
|
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 reductions to average realized prices of $0.06 per pound of copper in second-quarter 2020 and $0.03 per pound of copper for the first six months of 2020 related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
|
c.
|
Includes charges totaling $0.06 per pound of copper in second-quarter 2020 and $0.03 per pound of copper for the first six months of 2020, primarily associated with the April 2020 revised operating plans (including employee separation costs) and the COVID-19 pandemic.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Production
|
218
|
|
|
281
|
|
|
463
|
|
|
580
|
|
||||
Sales
|
219
|
|
|
287
|
|
|
466
|
|
|
577
|
|
||||
Average realized price per pound
|
$
|
2.67
|
|
|
$
|
2.72
|
|
|
$
|
2.57
|
|
|
$
|
2.75
|
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Productiona
|
4
|
|
|
7
|
|
|
8
|
|
|
15
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leach operations
|
|
|
|
|
|
|
|
||||||||
Leach ore placed in stockpiles (metric tons per day)
|
141,900
|
|
|
187,000
|
|
|
162,200
|
|
|
178,400
|
|
||||
Average copper ore grade (percent)
|
0.33
|
|
|
0.38
|
|
|
0.35
|
|
|
0.36
|
|
||||
Copper production (millions of recoverable pounds)
|
62
|
|
|
63
|
|
|
125
|
|
|
122
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Mill operations
|
|
|
|
|
|
|
|
||||||||
Ore milled (metric tons per day)
|
251,800
|
|
b
|
407,700
|
|
|
300,700
|
|
b
|
397,200
|
|
||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
0.39
|
|
|
0.34
|
|
|
0.36
|
|
|
0.36
|
|
||||
Molybdenum
|
0.01
|
|
|
0.02
|
|
|
0.01
|
|
|
0.02
|
|
||||
Copper recovery rate (percent)
|
83.9
|
|
|
81.7
|
|
|
80.8
|
|
|
84.5
|
|
||||
Copper production (millions of recoverable pounds)
|
156
|
|
|
218
|
|
|
338
|
|
|
458
|
|
a.
|
Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.
|
b.
|
Cerro Verde mill operations were negatively impacted by COVID-19 restrictions.
|
|
Three Months Ended June 30,
|
|
||||||||||||||
|
2020
|
|
2019
|
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.67
|
|
|
$
|
2.67
|
|
|
$
|
2.72
|
|
|
$
|
2.72
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash
and other costs shown below
|
1.64
|
|
|
1.57
|
|
|
1.92
|
|
|
1.74
|
|
|
||||
By-product credits
|
(0.11
|
)
|
|
—
|
|
|
(0.28
|
)
|
|
—
|
|
|
||||
Treatment charges
|
0.15
|
|
|
0.15
|
|
|
0.18
|
|
|
0.18
|
|
|
||||
Royalty on metals
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
||||
Unit net cash costs
|
1.68
|
|
|
1.72
|
|
|
1.83
|
|
|
1.93
|
|
|
||||
DD&A
|
0.47
|
|
|
0.44
|
|
|
0.41
|
|
|
0.37
|
|
|
||||
Metals inventory adjustments
|
(0.26
|
)
|
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
0.32
|
|
a
|
0.30
|
|
|
0.07
|
|
|
0.07
|
|
|
||||
Total unit costs
|
2.21
|
|
|
2.20
|
|
|
2.31
|
|
|
2.37
|
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
0.20
|
|
|
0.20
|
|
|
(0.20
|
)
|
|
(0.20
|
)
|
|
||||
Gross profit per pound
|
$
|
0.66
|
|
|
$
|
0.67
|
|
|
$
|
0.21
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
219
|
|
|
219
|
|
|
287
|
|
|
287
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30,
|
||||||||||||||
|
2020
|
|
2019
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
2.57
|
|
|
$
|
2.57
|
|
|
$
|
2.75
|
|
|
$
|
2.75
|
|
|
|
|
|
|
|
|
|
||||||||
Site production and delivery, before net noncash and other costs shown below
|
1.84
|
|
|
1.72
|
|
|
1.82
|
|
|
1.64
|
|
||||
By-product credits
|
(0.14
|
)
|
|
—
|
|
|
(0.31
|
)
|
|
—
|
|
||||
Treatment charges
|
0.15
|
|
|
0.15
|
|
|
0.19
|
|
|
0.19
|
|
||||
Royalty on metals
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
||||
Unit net cash costs
|
1.85
|
|
|
1.87
|
|
|
1.71
|
|
|
1.84
|
|
||||
DD&A
|
0.45
|
|
|
0.42
|
|
|
0.40
|
|
|
0.35
|
|
||||
Metals inventory adjustments
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
||||
Noncash and other costs, net
|
0.21
|
|
a
|
0.20
|
|
|
0.08
|
|
|
0.08
|
|
||||
Total unit costs
|
2.52
|
|
|
2.50
|
|
|
2.19
|
|
|
2.27
|
|
||||
Other revenue adjustments, primarily for pricing on prior period open sales
|
(0.15
|
)
|
|
(0.15
|
)
|
|
0.06
|
|
|
0.06
|
|
||||
Gross (loss) profit per pound
|
$
|
(0.10
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
0.62
|
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
466
|
|
|
466
|
|
|
577
|
|
|
577
|
|
a.
|
Includes charges totaling $0.30 per pound of copper in second-quarter 2020 and $0.18 per pound of copper for the first six months of 2020, primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic, and employee separation costs associated with the April 2020 revised operating plans.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Operating Data
|
|
|
|
|
|
|
|
||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
||||||||
Production
|
181
|
|
|
125
|
|
|
321
|
|
|
270
|
|
||||
Sales
|
172
|
|
|
151
|
|
|
299
|
|
|
325
|
|
||||
Average realized price per pound
|
$
|
2.67
|
|
|
$
|
2.71
|
|
|
$
|
2.54
|
|
|
$
|
2.77
|
|
|
|
|
|
|
|
|
|
||||||||
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
||||||||
Production
|
189
|
|
|
154
|
|
|
341
|
|
|
316
|
|
||||
Sales
|
180
|
|
|
185
|
|
|
319
|
|
|
420
|
|
||||
Average realized price per ounce
|
$
|
1,748
|
|
|
$
|
1,350
|
|
|
$
|
1,709
|
|
|
$
|
1,314
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Data
|
|
|
|
|
|
|
|
||||||||
Ore extracted and milled (metric tons per day):
|
|
|
|
|
|
|
|
||||||||
Grasberg open pita
|
—
|
|
|
54,000
|
|
|
3,600
|
|
|
78,300
|
|
||||
DOZ underground mineb
|
21,600
|
|
|
21,100
|
|
|
20,900
|
|
|
25,700
|
|
||||
Grasberg Block Cave underground mineb
|
27,200
|
|
|
7,400
|
|
|
23,100
|
|
|
6,200
|
|
||||
DMLZ underground mineb
|
27,600
|
|
|
7,700
|
|
|
23,100
|
|
|
7,200
|
|
||||
Big Gossan underground mineb
|
5,900
|
|
|
5,400
|
|
|
6,300
|
|
|
5,500
|
|
||||
Total
|
81,900
|
|
c
|
95,600
|
|
|
77,000
|
|
|
122,900
|
|
||||
Average ore grades:
|
|
|
|
|
|
|
|
||||||||
Copper (percent)
|
1.27
|
|
|
0.80
|
|
|
1.21
|
|
|
0.69
|
|
||||
Gold (grams per metric ton)
|
1.04
|
|
|
0.79
|
|
|
1.02
|
|
|
0.66
|
|
||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
||||||||
Copper
|
91.7
|
|
|
88.3
|
|
|
91.7
|
|
|
86.3
|
|
||||
Gold
|
78.3
|
|
|
74.9
|
|
|
77.6
|
|
|
71.6
|
|
a.
|
Includes ore from the Grasberg open-pit stockpile.
|
b.
|
Reflects ore extracted, including ore from development activities that result in metal production.
|
c.
|
Does not foot because of rounding.
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.67
|
|
|
$
|
2.67
|
|
|
$
|
1,748
|
|
|
$
|
2.71
|
|
|
$
|
2.71
|
|
|
$
|
1,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
2.00
|
|
|
1.17
|
|
|
766
|
|
|
3.40
|
|
|
2.09
|
|
|
1,041
|
|
||||||
Gold and silver credits
|
(1.95
|
)
|
|
—
|
|
|
—
|
|
|
(1.69
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.27
|
|
|
0.16
|
|
|
105
|
|
|
0.26
|
|
|
0.16
|
|
|
80
|
|
||||||
Export duties
|
0.09
|
|
|
0.05
|
|
|
35
|
|
|
0.07
|
|
|
0.04
|
|
|
20
|
|
||||||
Royalty on metals
|
0.15
|
|
|
0.08
|
|
|
65
|
|
|
0.11
|
|
|
0.08
|
|
|
28
|
|
||||||
Unit net cash costs
|
0.56
|
|
|
1.46
|
|
|
971
|
|
|
2.15
|
|
|
2.37
|
|
|
1,169
|
|
||||||
DD&A
|
0.72
|
|
|
0.42
|
|
|
276
|
|
|
0.65
|
|
|
0.40
|
|
|
199
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
a
|
0.03
|
|
|
17
|
|
|
0.30
|
|
b
|
0.18
|
|
|
91
|
|
||||||
Total unit costs
|
1.33
|
|
|
1.91
|
|
|
1,264
|
|
|
3.10
|
|
|
2.95
|
|
|
1,459
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
0.07
|
|
|
0.07
|
|
|
41
|
|
|
(0.13
|
)
|
|
(0.13
|
)
|
|
(7
|
)
|
||||||
PT Smelting intercompany (loss) profit
|
(0.15
|
)
|
|
(0.09
|
)
|
|
(57
|
)
|
|
0.06
|
|
|
0.03
|
|
|
16
|
|
||||||
Gross profit (loss) per pound/ounce
|
$
|
1.26
|
|
|
$
|
0.74
|
|
|
$
|
468
|
|
|
$
|
(0.46
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
172
|
|
|
172
|
|
|
|
|
151
|
|
|
151
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
180
|
|
|
|
|
|
|
185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
|
By-Product Method
|
|
Co-Product Method
|
|
By-Product Method
|
|
Co-Product Method
|
||||||||||||||||
|
|
Copper
|
|
Gold
|
|
|
Copper
|
|
Gold
|
||||||||||||||
Revenues, excluding adjustments
|
$
|
2.54
|
|
|
$
|
2.54
|
|
|
$
|
1,709
|
|
|
$
|
2.77
|
|
|
$
|
2.77
|
|
|
$
|
1,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Site production and delivery, before net noncash and other costs shown below
|
2.29
|
|
|
1.31
|
|
|
884
|
|
|
3.24
|
|
|
1.99
|
|
|
944
|
|
||||||
Gold and silver credits
|
(1.91
|
)
|
|
—
|
|
|
—
|
|
|
(1.75
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.28
|
|
|
0.17
|
|
|
110
|
|
|
0.28
|
|
|
0.17
|
|
|
81
|
|
||||||
Export duties
|
0.07
|
|
|
0.04
|
|
|
25
|
|
|
0.08
|
|
|
0.05
|
|
|
24
|
|
||||||
Royalty on metals
|
0.15
|
|
|
0.08
|
|
|
58
|
|
|
0.14
|
|
|
0.09
|
|
|
38
|
|
||||||
Unit net cash costs
|
0.88
|
|
|
1.60
|
|
|
1,077
|
|
|
1.99
|
|
|
2.30
|
|
|
1,087
|
|
||||||
DD&A
|
0.75
|
|
|
0.43
|
|
|
289
|
|
|
0.63
|
|
|
0.38
|
|
|
183
|
|
||||||
Noncash and other costs, net
|
0.12
|
|
a
|
0.06
|
|
|
45
|
|
|
0.14
|
|
b
|
0.09
|
|
|
43
|
|
||||||
Total unit costs
|
1.75
|
|
|
2.09
|
|
|
1,411
|
|
|
2.76
|
|
|
2.77
|
|
|
1,313
|
|
||||||
Other revenue adjustments, primarily for pricing on prior period open sales
|
(0.07
|
)
|
|
(0.07
|
)
|
|
14
|
|
|
0.05
|
|
|
0.05
|
|
|
5
|
|
||||||
PT Smelting intercompany profit
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
0.02
|
|
|
10
|
|
||||||
Gross profit per pound/ounce
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
312
|
|
|
$
|
0.10
|
|
|
$
|
0.07
|
|
|
$
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
299
|
|
|
299
|
|
|
|
|
325
|
|
|
325
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
319
|
|
|
|
|
|
|
420
|
|
a.
|
Includes COVID-19 related costs of $0.03 per pound of copper in second-quarter 2020 and $0.01 per pound of copper for the first six months of 2020.
|
b.
|
Includes charges of $0.18 per pound of copper in second-quarter 2019 and $0.09 per pound of copper for the first six months of 2019 associated with adjustments to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
|
Cash at domestic companies
|
$
|
0.8
|
|
|
Cash at international operations
|
0.7
|
|
|
|
Total consolidated cash and cash equivalents
|
1.5
|
|
|
|
Noncontrolling interests’ share
|
(0.3
|
)
|
|
|
Cash, net of noncontrolling interests’ share
|
1.2
|
|
|
|
Withholding taxes
|
—
|
|
a
|
|
Net cash available
|
$
|
1.2
|
|
|
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.
|
Includes reductions to revenues and average realized prices totaling $24 million ($0.06 per pound of copper) related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
|
d.
|
Includes charges totaling $22 million ($0.06 per pound of copper) primarily associated with the April 2020 revised operating plans (including employee separation costs) and the COVID-19 pandemic.
|
e.
|
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.
|
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.
|
Includes reductions to revenues and average realized prices totaling $24 million ($0.03 per pound of copper) related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
|
d.
|
Includes charges totaling $22 million ($0.03 per pound of copper) primarily associated with the April 2020 revised operating plans (including employee separation costs) and the COVID-19 pandemic.
|
e.
|
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 June 30, 2020
|
|
|
|
|
|
||||||||||||
(In millions)
|
|
By-Product
|
|
Co-Product Method
|
|
||||||||||||
|
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
586
|
|
|
$
|
586
|
|
|
$
|
32
|
|
|
$
|
618
|
|
|
Site production and delivery, before net noncash
and other costs shown below |
|
360
|
|
|
343
|
|
|
24
|
|
|
367
|
|
|
||||
By-product credits
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Treatment charges
|
|
32
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|
||||
Royalty on metals
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
||||
Net cash costs
|
|
368
|
|
|
376
|
|
|
24
|
|
|
400
|
|
|
||||
DD&A
|
|
103
|
|
|
98
|
|
|
5
|
|
|
103
|
|
|
||||
Metals inventory adjustments
|
|
(57
|
)
|
|
(57
|
)
|
|
—
|
|
|
(57
|
)
|
|
||||
Noncash and other costs, net
|
|
71
|
|
b
|
67
|
|
|
4
|
|
|
71
|
|
|
||||
Total costs
|
|
485
|
|
|
484
|
|
|
33
|
|
|
517
|
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
44
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|
||||
Gross profit (loss)
|
|
$
|
145
|
|
|
$
|
146
|
|
|
$
|
(1
|
)
|
|
$
|
145
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
|
219
|
|
|
219
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
2.67
|
|
|
$
|
2.67
|
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
|
1.64
|
|
|
1.57
|
|
|
|
|
|
|
||||||
By-product credits
|
|
(0.11
|
)
|
|
—
|
|
|
|
|
|
|
||||||
Treatment charges
|
|
0.15
|
|
|
0.15
|
|
|
|
|
|
|
||||||
Royalty on metals
|
|
—
|
|
|
—
|
|
|
|
|
|
|
||||||
Unit net cash costs
|
|
1.68
|
|
|
1.72
|
|
|
|
|
|
|
||||||
DD&A
|
|
0.47
|
|
|
0.44
|
|
|
|
|
|
|
||||||
Metals inventory adjustments
|
|
(0.26
|
)
|
|
(0.26
|
)
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
0.32
|
|
b
|
0.30
|
|
|
|
|
|
|
||||||
Total unit costs
|
|
2.21
|
|
|
2.20
|
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
0.20
|
|
|
0.20
|
|
|
|
|
|
|
||||||
Gross profit per pound
|
|
$
|
0.66
|
|
|
$
|
0.67
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
Metals
|
|
||||||||
|
|
|
|
Production
|
|
|
|
Inventory
|
|
||||||||
|
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Adjustments
|
|
||||||||
Totals presented above
|
|
$
|
618
|
|
|
$
|
367
|
|
|
$
|
103
|
|
|
$
|
(57
|
)
|
|
Treatment charges
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Royalty on metals
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Eliminations and other
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
||||
South America mining
|
|
629
|
|
|
438
|
|
|
102
|
|
|
(57
|
)
|
|
||||
Other miningc
|
|
3,344
|
|
|
2,810
|
|
|
241
|
|
|
(87
|
)
|
|
||||
Corporate, other & eliminations
|
|
(919
|
)
|
|
(854
|
)
|
|
15
|
|
|
5
|
|
|
||||
As reported in our consolidated financial statements
|
|
$
|
3,054
|
|
|
$
|
2,394
|
|
|
$
|
358
|
|
|
$
|
(139
|
)
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes silver sales of 0.6 million ounces ($14.55 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 totaling $66 million ($0.30 per pound of copper), primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic, and employee separation costs associated with the April 2020 revised operating plans.
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
|
|
|
|
|
||||||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
||||||||||||
(In millions)
|
|
By-Product
|
|
Co-Product Method
|
|
||||||||||||
|
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
781
|
|
|
$
|
781
|
|
|
$
|
92
|
|
|
$
|
873
|
|
|
Site production and delivery, before net noncash
and other costs shown below |
|
550
|
|
|
498
|
|
|
64
|
|
|
562
|
|
|
||||
By-product credits
|
|
(80
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Treatment charges
|
|
52
|
|
|
52
|
|
|
—
|
|
|
52
|
|
|
||||
Royalty on metals
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
||||
Net cash costs
|
|
524
|
|
|
552
|
|
|
64
|
|
|
616
|
|
|
||||
DD&A
|
|
119
|
|
|
107
|
|
|
12
|
|
|
119
|
|
|
||||
Noncash and other costs, net
|
|
21
|
|
|
20
|
|
|
1
|
|
|
21
|
|
|
||||
Total costs
|
|
664
|
|
|
679
|
|
|
77
|
|
|
756
|
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(57
|
)
|
|
(57
|
)
|
|
—
|
|
|
(57
|
)
|
|
||||
Gross profit
|
|
$
|
60
|
|
|
$
|
45
|
|
|
$
|
15
|
|
|
$
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
|
287
|
|
|
287
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
2.72
|
|
|
$
|
2.72
|
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
|
1.92
|
|
|
1.74
|
|
|
|
|
|
|
||||||
By-product credits
|
|
(0.28
|
)
|
|
—
|
|
|
|
|
|
|
||||||
Treatment charges
|
|
0.18
|
|
|
0.18
|
|
|
|
|
|
|
||||||
Royalty on metals
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
|
||||||
Unit net cash costs
|
|
1.83
|
|
|
1.93
|
|
|
|
|
|
|
||||||
DD&A
|
|
0.41
|
|
|
0.37
|
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
0.07
|
|
|
0.07
|
|
|
|
|
|
|
||||||
Total unit costs
|
|
2.31
|
|
|
2.37
|
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(0.20
|
)
|
|
(0.20
|
)
|
|
|
|
|
|
||||||
Gross profit per pound
|
|
$
|
0.21
|
|
|
$
|
0.15
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
Production
|
|
|
|
|
|
||||||||
|
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
|
||||||||
Totals presented above
|
|
$
|
873
|
|
|
$
|
562
|
|
|
$
|
119
|
|
|
|
|
||
Treatment charges
|
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Royalty on metals
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Noncash and other costs, net
|
|
—
|
|
|
21
|
|
|
—
|
|
|
|
|
|||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Eliminations and other
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
|
|
|||||
South America mining
|
|
761
|
|
|
581
|
|
|
119
|
|
|
|
|
|||||
Other miningb
|
|
3,532
|
|
|
3,142
|
|
|
214
|
|
|
|
|
|||||
Corporate, other & eliminations
|
|
(747
|
)
|
|
(718
|
)
|
|
19
|
|
|
|
|
|||||
As reported in our consolidated financial statements
|
|
$
|
3,546
|
|
|
$
|
3,005
|
|
|
$
|
352
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
a.
|
Includes silver sales of 1.2 million ounces ($15.39 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.
|
|
|
|
|
|
|
||||||||||||
Six Months Ended June 30, 2020
|
|
|
|
|
|
||||||||||||
(In millions)
|
|
By-Product
|
|
Co-Product Method
|
|
||||||||||||
|
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
1,199
|
|
|
$
|
1,199
|
|
|
$
|
86
|
|
|
$
|
1,285
|
|
|
Site production and delivery, before net noncash
and other costs shown below |
|
853
|
|
|
800
|
|
|
73
|
|
|
873
|
|
|
||||
By-product credits
|
|
(66
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Treatment charges
|
|
72
|
|
|
72
|
|
|
—
|
|
|
72
|
|
|
||||
Royalty on metals
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
||||
Net cash costs
|
|
861
|
|
|
874
|
|
|
73
|
|
|
947
|
|
|
||||
DD&A
|
|
210
|
|
|
195
|
|
|
15
|
|
|
210
|
|
|
||||
Metals inventory adjustments
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
||||
Noncash and other costs, net
|
|
100
|
|
b
|
95
|
|
|
5
|
|
|
100
|
|
|
||||
Total costs
|
|
1,174
|
|
|
1,167
|
|
|
93
|
|
|
1,260
|
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(70
|
)
|
|
(70
|
)
|
|
—
|
|
|
(70
|
)
|
|
||||
Gross loss
|
|
$
|
(45
|
)
|
|
$
|
(38
|
)
|
|
$
|
(7
|
)
|
|
$
|
(45
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
|
466
|
|
|
466
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Gross loss per pound of copper:
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
2.57
|
|
|
$
|
2.57
|
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
|
1.84
|
|
|
1.72
|
|
|
|
|
|
|
||||||
By-product credits
|
|
(0.14
|
)
|
|
—
|
|
|
|
|
|
|
||||||
Treatment charges
|
|
0.15
|
|
|
0.15
|
|
|
|
|
|
|
||||||
Royalty on metals
|
|
—
|
|
|
—
|
|
|
|
|
|
|
||||||
Unit net cash costs
|
|
1.85
|
|
|
1.87
|
|
|
|
|
|
|
||||||
DD&A
|
|
0.45
|
|
|
0.42
|
|
|
|
|
|
|
||||||
Metals inventory adjustments
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
0.21
|
|
b
|
0.20
|
|
|
|
|
|
|
||||||
Total unit costs
|
|
2.52
|
|
|
2.50
|
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(0.15
|
)
|
|
(0.15
|
)
|
|
|
|
|
|
||||||
Gross loss per pound
|
|
$
|
(0.10
|
)
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
Metals
|
|
||||||||
|
|
|
|
Production
|
|
|
|
Inventory
|
|
||||||||
|
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Adjustments
|
|
||||||||
Totals presented above
|
|
$
|
1,285
|
|
|
$
|
873
|
|
|
$
|
210
|
|
|
$
|
3
|
|
|
Treatment charges
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Royalty on metals
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Eliminations and other
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
||||
South America mining
|
|
1,141
|
|
|
972
|
|
|
210
|
|
|
3
|
|
|
||||
Other miningc
|
|
6,408
|
|
|
5,609
|
|
|
459
|
|
|
62
|
|
|
||||
Corporate, other & eliminations
|
|
(1,697
|
)
|
|
(1,642
|
)
|
|
30
|
|
|
18
|
|
|
||||
As reported in our consolidated financial statements
|
|
$
|
5,852
|
|
|
$
|
4,939
|
|
|
$
|
699
|
|
|
$
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes silver sales of 1.5 million ounces ($16.37 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 totaling $86 million ($0.18 per pound of copper) primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic, and employee separation costs associated with the April 2020 revised operating plans.
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
|
|
|
|
|
|
||||||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
||||||||||||
(In millions)
|
|
By-Product
|
|
Co-Product Method
|
|
||||||||||||
|
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
1,584
|
|
|
$
|
1,584
|
|
|
$
|
204
|
|
|
$
|
1,788
|
|
|
Site production and delivery, before net noncash
and other costs shown below |
|
1,053
|
|
|
949
|
|
|
129
|
|
|
1,078
|
|
|
||||
By-product credits
|
|
(179
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Treatment charges
|
|
108
|
|
|
108
|
|
|
—
|
|
|
108
|
|
|
||||
Royalty on metals
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
||||
Net cash costs
|
|
985
|
|
|
1,060
|
|
|
129
|
|
|
1,189
|
|
|
||||
DD&A
|
|
233
|
|
|
207
|
|
|
26
|
|
|
233
|
|
|
||||
Noncash and other costs, net
|
|
46
|
|
|
45
|
|
|
1
|
|
|
46
|
|
|
||||
Total costs
|
|
1,264
|
|
|
1,312
|
|
|
156
|
|
|
1,468
|
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
37
|
|
|
37
|
|
|
—
|
|
|
37
|
|
|
||||
Gross profit
|
|
$
|
357
|
|
|
$
|
309
|
|
|
$
|
48
|
|
|
$
|
357
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
|
577
|
|
|
577
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
|
$
|
2.75
|
|
|
$
|
2.75
|
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
|
1.82
|
|
|
1.64
|
|
|
|
|
|
|
||||||
By-product credits
|
|
(0.31
|
)
|
|
—
|
|
|
|
|
|
|
||||||
Treatment charges
|
|
0.19
|
|
|
0.19
|
|
|
|
|
|
|
||||||
Royalty on metals
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
|
||||||
Unit net cash costs
|
|
1.71
|
|
|
1.84
|
|
|
|
|
|
|
||||||
DD&A
|
|
0.40
|
|
|
0.35
|
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
0.08
|
|
|
0.08
|
|
|
|
|
|
|
||||||
Total unit costs
|
|
2.19
|
|
|
2.27
|
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
0.06
|
|
|
0.06
|
|
|
|
|
|
|
||||||
Gross profit per pound
|
|
$
|
0.62
|
|
|
$
|
0.54
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
Production
|
|
|
|
|
|
||||||||
|
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
|
||||||||
Totals presented above
|
|
$
|
1,788
|
|
|
$
|
1,078
|
|
|
$
|
233
|
|
|
|
|
||
Treatment charges
|
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Royalty on metals
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Noncash and other costs, net
|
|
—
|
|
|
46
|
|
|
—
|
|
|
|
|
|||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
|
37
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Eliminations and other
|
|
(2
|
)
|
|
(4
|
)
|
|
—
|
|
|
|
|
|||||
South America mining
|
|
1,712
|
|
|
1,120
|
|
|
233
|
|
|
|
|
|||||
Other miningb
|
|
7,130
|
|
|
6,197
|
|
|
427
|
|
|
|
|
|||||
Corporate, other & eliminations
|
|
(1,504
|
)
|
|
(1,388
|
)
|
|
39
|
|
|
|
|
|||||
As reported in our consolidated financial statements
|
|
$
|
7,338
|
|
|
$
|
5,929
|
|
|
$
|
699
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
a.
|
Includes silver sales of 2.5 million ounces ($15.58 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 0.8 million ounces ($17.09 per ounce average realized price).
|
b.
|
Includes COVID-19 related costs totaling $4 million ($0.03 per pound of copper).
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
a.
|
Includes silver sales of 0.5 million ounces ($14.57 per ounce average realized price).
|
b.
|
Includes charges totaling $28 million ($0.18 per pound of copper) associated with adjustments to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
|
c.
|
Represents the combined total for our other segments, as presented in Note 9.
|
a.
|
Includes silver sales of 1.3 million ounces ($16.30 per ounce average realized price).
|
b.
|
Includes COVID-19 related costs of $4 million ($0.01 per pound of copper).
|
c.
|
Represents the combined total for our segments, as presented in Note 9.
|
a.
|
Includes silver sales of 1.1 million ounces ($14.66 per ounce average realized price).
|
b.
|
Includes charges totaling $28 million ($0.09 per pound of copper) associated with adjustments to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
|
c.
|
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.
|
Includes charges totaling $6 million ($1.00 per pound of molybdenum) primarily associated with the April 2020 revised operating plans (including employee separation costs) and contract cancellation costs related to the COVID-19 pandemic.
|
c.
|
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.
|
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.
|
Includes charges totaling $6 million ($0.48 per pound of molybdenum) primarily associated with the April 2020 revised operating plans (including employee separation costs) and contract cancellation costs related to the COVID-19 pandemic.
|
c.
|
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.
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
As of June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
$
|
249
|
|
|
$
|
646
|
|
|
$
|
6,921
|
|
|
$
|
(661
|
)
|
|
$
|
7,155
|
|
Noncurrent assets
|
|
1,427
|
|
|
6
|
|
|
33,027
|
|
|
(1,385
|
)
|
|
33,075
|
|
|||||
Current liabilities
|
|
175
|
|
|
24
|
|
|
3,402
|
|
|
(695
|
)
|
|
2,906
|
|
|||||
Noncurrent liabilities
|
|
9,211
|
|
|
11,073
|
|
|
15,964
|
|
|
(16,079
|
)
|
|
20,169
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
$
|
154
|
|
|
$
|
657
|
|
|
$
|
7,778
|
|
|
$
|
(674
|
)
|
|
$
|
7,915
|
|
Noncurrent assets
|
|
1,620
|
|
|
22
|
|
|
32,692
|
|
|
(1,440
|
)
|
|
32,894
|
|
|||||
Current liabilities
|
|
323
|
|
|
42
|
|
|
3,550
|
|
|
(706
|
)
|
|
3,209
|
|
|||||
Noncurrent liabilities
|
|
9,180
|
|
|
10,892
|
|
|
15,975
|
|
|
(15,895
|
)
|
|
20,152
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
5,838
|
|
|
$
|
—
|
|
|
$
|
5,852
|
|
Operating loss
|
|
(18
|
)
|
|
(22
|
)
|
|
(103
|
)
|
|
(9
|
)
|
|
(152
|
)
|
|||||
Net (loss) income
|
|
(438
|
)
|
a
|
(159
|
)
|
a
|
(494
|
)
|
|
666
|
|
|
(425
|
)
|
a.
|
Net loss equals net loss attributable to common stockholders because net loss attributable to noncontrolling interests is zero for issuer and guarantor.
|
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 were effective as of June 30, 2020.
|
(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 June 30, 2020, 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
|
2.1*
|
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 3, 2020.
|
|
8-K
|
001-11307-01
|
6/3/2020
|
|
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
|
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
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
|
|
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
|
001-11307-01
|
8/10/2015
|
|
Indenture dated as of August 15, 2019, between FCX and U.S. Bank National Association, as Trustee (relating to the 5.00% Senior Notes due 2027, the 4.125% Senior Notes due 2028, the 4.375% Senior Notes due 2028, the 5.25% Senior Notes due 2029, the 4.25% Senior Notes due 2030 and the 4.625% Senior Notes due 2030).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
First Supplemental Indenture dated as of August 15, 2019, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 5.00% Senior Notes due 2027).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
Second Supplemental Indenture dated as of August 15, 2019, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 5.25% Senior Notes due 2029).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
Third Supplemental Indenture dated as of March 4, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.125% Senior Notes due 2028).
|
|
8-K
|
001-11307-01
|
3/4/2020
|
|
Fourth Supplemental Indenture dated as of March 4, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.25% Senior Notes due 2030).
|
|
8-K
|
001-11307-01
|
3/4/2020
|
|
Form of 5.00% Senior Notes due 2027 (included in Exhibit 4.18).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
Form of 5.25% Senior Notes due 2029 (included in Exhibit 4.19).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
Form of 4.125% Senior Notes due 2028 (included in Exhibit 4.20).
|
|
8-K
|
001-11307-01
|
3/4/2020
|
|
Form of 4.25% Senior Notes due 2030 (included in Exhibit 4.21).
|
|
8-K
|
001-11307-01
|
3/4/2020
|
|
Fifth Supplemental Indenture dated as of March 31, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.125% Senior Notes due 2028 and the 4.25% Senior Notes due 2030).
|
X
|
|
|
|
|
Sixth Supplemental Indenture dated as of July 27, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.375% Senior Notes due 2028).
|
|
8-K
|
001-11307-01
|
7/27/2020
|
|
Seventh Supplemental Indenture dated as of July 27, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.625% Senior Notes due 2030).
|
|
8-K
|
001-11307-01
|
7/27/2020
|
|
Form of 4.375% Senior Notes due 2028 (included in Exhibit 4.27).
|
|
8-K
|
001-11307-01
|
7/27/2020
|
|
Form of 4.625% Senior Notes due 2030 (included in Exhibit 4.28).
|
|
8-K
|
001-11307-01
|
7/27/2020
|
|
10.1+
|
Freeport-McMoRan Inc. Executive Change in Control Severance Plan, effective as of May 5, 2020.
|
|
10-Q
|
001-11307-01
|
5/7/2020
|
Third Amendment dated as of June 3, 2020 to the Revolving Credit Agreement dated as of April 20, 2018, as amended, among FCX, PT Freeport Indonesia, Freeport-McMoRan Oil & Gas LLC, JPMorgan Chase Bank, N.A., as administrative agent, and each of the lenders and issuing banks party thereto.
|
|
8-K
|
001-11307-01
|
6/3/2020
|
|
Letter from Ernst & Young LLP regarding unaudited interim financial statements.
|
X
|
|
|
|
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
|
Filed
|
|
||
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-Q
|
Form
|
File No.
|
Date Filed
|
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.
|
X
|
|
|
|
|
Mine Safety and Health Administration Safety Data.
|
X
|
|
|
|
|
101.INS
|
XBRL Instance Document- the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
X
|
|
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema.
|
X
|
|
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase.
|
X
|
|
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase.
|
X
|
|
|
|
104
|
The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL.
|
X
|
|
|
|
|
Freeport-McMoRan Inc.
|
|
|
|
|
|
By:
|
/s/ C. Donald Whitmire, Jr.
|
|
|
C. Donald Whitmire, Jr.
|
|
|
Vice President and
|
|
|
Controller - Financial Reporting
|
|
|
(authorized signatory
|
|
|
and Principal Accounting Officer)
|
Year
|
|
Redemption
Price |
|
|
2023
|
|
|
102.063
|
%
|
2024
|
|
|
101.375
|
%
|
2025
|
|
|
100.688
|
%
|
2026 and thereafter
|
|
|
100.000
|
%
|
Year
|
|
Redemption
Price |
|
|
2023
|
|
|
102.063
|
%
|
2024
|
|
|
101.375
|
%
|
2025
|
|
|
100.688
|
%
|
2026 and thereafter
|
|
|
100.000
|
%
|
Year
|
|
Redemption
Price |
|
|
2025
|
|
|
102.125
|
%
|
2026
|
|
|
101.417
|
%
|
2027
|
|
|
100.708
|
%
|
2028 and thereafter
|
|
|
100.000
|
%
|
Year
|
|
Redemption
Price |
|
|
2025
|
|
|
102.125
|
%
|
2026
|
|
|
101.417
|
%
|
2027
|
|
|
100.708
|
%
|
2028 and thereafter
|
|
|
100.000
|
%
|
1)
|
Registration Statement (Form S-8 No. 333-85803) pertaining to the Freeport-McMoRan Copper & Gold Inc. 1999 Stock Incentive Plan,
|
2)
|
Registration Statement (Form S-8 No. 333-105535) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2003 Stock Incentive Plan,
|
3)
|
Registration Statement (Form S-8 No. 333-115292) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2004 Director Compensation Plan,
|
4)
|
Registration Statement (Form S-8 No. 333-136084) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
|
5)
|
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,
|
6)
|
Registration Statement (Form S-8 No. 333-147413) pertaining to the Amended and Restated Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
|
7)
|
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,
|
8)
|
Registration Statement (Form S-8 No. 333-212523) pertaining to the Freeport-McMoRan Inc. 2016 Stock Incentive Plan, and
|
9)
|
Registration Statement (Form S-3 No. 333-226675) pertaining to the Freeport-McMoRan Inc. 2018
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Freeport-McMoRan Inc.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
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:
|
(a)
|
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;
|
(b)
|
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;
|
(c)
|
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
|
(d)
|
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
|
5.
|
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):
|
(a)
|
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
|
(b)
|
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.
|
|
|
|
|
By:
|
/s/ Richard C. Adkerson
|
|
|
Richard C. Adkerson
|
|
|
Vice Chairman of the Board,
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Freeport-McMoRan Inc.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
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:
|
(a)
|
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;
|
(b)
|
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;
|
(c)
|
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
|
(d)
|
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
|
5.
|
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):
|
(a)
|
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
|
(b)
|
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.
|
|
|
|
|
By:
|
/s/ Kathleen L. Quirk
|
|
|
Kathleen L. Quirk
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
|
|
|
|
By:
|
/s/ Richard C. Adkerson
|
|
|
Richard C. Adkerson
|
|
|
Vice Chairman of the Board,
|
|
|
President and Chief Executive Officer
|
|
|
|
|
By:
|
/s/ Kathleen L. Quirk
|
|
|
Kathleen L. Quirk
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
•
|
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.
|
•
|
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.
|
•
|
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).
|
•
|
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.”
|
•
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potential
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Have
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pattern of
|
|
Pattern of
|
|||||||
|
|
|
|
|
|
|
|
Section
|
|
|
|
|
|
|
|
|
|
Violations
|
|
Violation
|
|||||||
|
|
|
|
Section
|
|
Section
|
|
104(d)
|
|
Section
|
|
Section
|
|
|
|
Mining
|
|
Under
|
|
Under
|
|||||||
|
|
|
|
104 S&S
|
|
104(b)
|
|
Citations
|
|
110(b)(2)
|
|
107(a)
|
|
Proposed
|
|
Related
|
|
Section
|
|
Section
|
|||||||
|
|
|
|
Citations
|
|
Orders
|
|
and Orders
|
|
Violations
|
|
Orders
|
|
Assessments(2)
|
|
Fatalities
|
|
104(e)
|
|
104(e)
|
|||||||
Mine ID(1)
|
|
Mine or Operation Name
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
($)
|
|
(#)
|
|
(yes/no)
|
|
(yes/no)
|
|||||||
0200137
|
|
Freeport-McMoRan Bagdad Inc. (Bagdad)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
2900708
|
|
Freeport-McMoRan Chino Mines Company (Chino)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0200112
|
|
Freeport-McMoRan Miami Inc (Miami)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0200024
|
|
Freeport-McMoRan Morenci Inc (Morenci)
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101,446
|
|
|
—
|
|
|
No
|
|
No
|
0203131
|
|
Freeport-McMoRan Safford Inc (Safford)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,165
|
|
|
—
|
|
|
No
|
|
No
|
0200144
|
|
Freeport-McMoRan Sierrita Inc (Sierrita)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,013
|
|
|
—
|
|
|
No
|
|
No
|
2900159
|
|
Tyrone Mine (Tyrone)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0500790
|
|
Henderson Operations (Henderson)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,386
|
|
|
—
|
|
|
No
|
|
No
|
0502256
|
|
Climax Mine (Climax)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,714
|
|
|
—
|
|
|
No
|
|
No
|
|
|
Freeport-McMoRan Cobre Mining Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2900725
|
|
Open Pit & Continental Surf Comp
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
2900731
|
|
Continental Mill Complex
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0201656
|
|
Copper Queen Branch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0202579
|
|
Cyprus Tohono Corporation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0203262
|
|
Twin Buttes Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
2902395
|
|
Chieftain 2100 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0203254
|
|
Warrior 1800 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
(1)
|
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 July 31, 2020, for citations or orders issued by MSHA during the three months ended June 30, 2020. FCX is not currently contesting any of these proposed assessments.
|
•
|
Contest Proceedings - A contest proceeding may be filed by an operator to challenge the issuance of a citation or order issued by MSHA.
|
•
|
Civil Penalty Proceedings - A civil penalty proceeding may be filed by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order. FCX does not institute civil penalty proceedings based solely on the assessment amount of proposed penalties. Any initiated adjudications described in the table below address substantive matters of law and policy instituted on conditions that are alleged to be in violation of mandatory standards or the Mine Act.
|
•
|
Discrimination Proceedings - Involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in an activity protected under the Mine Act, such as making a safety complaint. Also includes temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position.
|
•
|
Compensation Proceedings - A compensation proceeding may be filed by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.
|
•
|
Temporary Relief - Applications for temporary relief are applications filed under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order.
|
•
|
Appeals - An appeal may be filed by an operator to challenge judges decisions or orders to the commission, including petitions for discretionary review and review by the commission on its own motion.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Legal Actions Pending at June 30, 2020
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Contest
|
|
Civil Penalty
|
|
Discrimination
|
|
Compensation
|
|
Temporary
|
|
|
|
|
|
Legal Actions
|
|
Legal Actions
|
|
|||||||||
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Relief
|
|
Appeals
|
|
Total
|
|
Instituted(2)
|
|
Resolved(3)
|
|
|||||||||
Mine ID(1)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
|||||||||
0200137
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2900708
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200112
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200024
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
0203131
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200144
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2900159
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0500790
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
0502256
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900725
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900731
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0201656
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0202579
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203262
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2902395
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203254
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. Refer to "Mine Safety Data" table for related mine or operation name.
|
(2)
|
Legal actions pending at June 30, 2020, and legal actions instituted during second-quarter 2020 are based on the date that a docket number was assigned to the proceeding.
|
(3)
|
Legal actions resolved during second-quarter 2020 are based on the date that the settlement motion resolving disputed matters is filed with the Commission, and the matter is effectively closed by MSHA.
|