Freeport-McMoRan Inc.
CEO : Mr. Richard C. Adkerson
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -6.6% YoY | -33.6% | -36.8% | 2023-01-25 |
Richard Adkerson says,
Strong Fourth Quarter Results
- Reflects the performance of the global team
- Remarkable performance in challenging mining industry
Two Major Segments
- Indonesia: large volumes, low cost, largest gold mine, net unit cost of $0.06 a pound
- Americas: low grades, more material to be processed, challenged by low copper prices and inflation, large future brownfield opportunities
Indonesia Operations
- Largest underground mining operation in the world for the past 25 years
- Completed mining the Grasberg open pit, which has been the bulk of the operations since the discovery of the ore body in the late 1980s
Americas Operations
- Dealing with inflation and low copper prices
- Challenges in getting workers for operations
- Managed well through COVID and political situation in Peru
Long-term Focus
- Prepared to deal with market risks in the short run
- Focused on long-term success, measured by copper’s positive long-run outlook based on demand and supply fundamentals
Kathleen Quirk says,
FCX Q4 2022 Earnings Call Highlights:
- Fourth quarter 2022 operating and financial results were reported.
- A copy of the press release and slides are available on fcx.com
- Forward-looking statements were made, and actual results may differ materially.
- The full management team was present during the call.
Unfortunately, there were no specific details or numbers given during the opening remarks, so it is difficult to provide a more detailed summary of what to expect regarding FCX’s stock movement based on this call alone.
Q & A sessions,
Leaching Projects
- FCX is aggressively pursuing leaching projects on multiple fronts with outside vendors, joint ventures, and self-funded projects.
- These projects are expected to add production at low capital cost and with low carbon.
- The company sees it as a great opportunity to invest in, and there are no constraints on the projects.
Major Capital Projects
- FCX has a pipeline of major capital projects that are multiyear large capital requirements.
- The uncertainties in the market have led the company to wait until they become clearer.
- The project in Chile is dependent on the direction the country goes in with its laws and constitution, and it is on hold until that becomes clear.
2022 Performance Summary
- FCX achieved another year of growth in 2022, with 11% higher copper sales volumes and a 34% increase in gold volumes.
- They generated $9.5 billion in adjusted EBITDA, and their operating cash flows for the year were net of $1.5 billion in working capital requirements in excess of their capital investments in operations.
- The company nearly tripled their cash return to shareholders, pursuant to their performance-based payout policy.
Market Overview
- FCX experienced significant volatility in copper prices during 2022.
- Physical markets for copper remained tight, even during a period of weaker economic data coming out of China, demonstrated by low levels of available copper inventories throughout the year.
- Copper’s importance in the economy continues to grow due to its use in clean energy applications and global electrification.
- Market deficits in the future signal the industry’s challenges in meeting the growing demand for copper, and higher long-term prices are needed to incentivize new supplies.
Reserve Position
- FCX benefits from a geographically diverse holding of reserves in the Americas and Indonesia.
No bad stock 