In This Article:
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EBITDA (2024): $10 billion, 14% increase from 2023.
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Operating Cash Flows (2024): Over $7 billion, 35% increase from the prior year.
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Average Copper Realization (2024): $4.21 per pound.
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Average Gold Realization (2024): Slightly above $2,400 per ounce.
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Capital Expenditures (2024): $3.6 billion.
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Projected Capital Expenditures (2025 & 2026): Approximately $4.4 billion per year.
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Cash Cost Estimate (2025): $1.60 per pound, compared to $1.56 per pound in 2024.
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Projected EBITDA (2026 & 2027): Ranges from over $11 billion at $4 copper to over $15 billion at $5 copper.
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Projected Operating Cash Flows (2026 & 2027): Nearly $8 billion per year at $4 copper and over $11 billion per year at $5 copper.
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Debt Redemption (Q4 2024): $730 million in maturing senior notes.
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Shareholder Distributions: $4.7 billion through dividends and share purchases since implementing the financial policy.
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Freeport-McMoRan Inc (NYSE:FCX) achieved $10 billion in EBITDA for 2024, a 14% increase from 2023.
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The company reported operating cash flows of over $7 billion in 2024, a 35% improvement from the previous year.
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Freeport-McMoRan Inc (NYSE:FCX) is focused on scaling its leach opportunity, targeting a run rate of 300 million pounds by the end of 2025.
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The company has a strong financial position with a net debt of approximately $1 billion, providing flexibility for future investments.
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Freeport-McMoRan Inc (NYSE:FCX) is advancing several organic growth projects, including brownfield expansions in the US and South America.
Negative Points
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The company is facing challenges with obtaining export permits from the Indonesian government, which could impact production rates.
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Freeport-McMoRan Inc (NYSE:FCX) is dealing with the aftermath of a fire at its Indonesian smelter, requiring repairs and impacting operations.
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The company is subject to a 7.5% export tax in Indonesia, which affects its cost structure.
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There is uncertainty regarding the timeline for legislative approval of a 10% tax credit for copper as a critical mineral in the US.
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Freeport-McMoRan Inc (NYSE:FCX) faces geopolitical risks, particularly in Indonesia, which could impact its operations and financial performance.
Q & A Highlights
Q: Can you provide more details on the approval to export concentrate from Indonesia and its potential impact on production rates? A: We are making good progress with the Indonesian government and expect to receive export approval in the near term. Our inventories are building, but if we get the export permit as expected in the coming weeks, we will be able to start shipping exports and manage inventory levels effectively. - Kathleen Quirk, President and CEO