Freeport-McMoRan has announced its financial and operational results for the second quarter and first half of 2024, highlighting robust performance and a positive outlook

In the second quarter of 2024, Freeport reported net income attributable to common stock of $616 million, or $0.42 per share. Adjusted net income, excluding net charges of $51 million primarily related to nonrecurring labor-contract charges at Cerro Verde and revisions to environmental obligation estimates, totaled $667 million, or $0.46 per share.

Key Operational Highlights:

• Consolidated production in Q2 2024 included 1.0 billion pounds of copper, 443 thousand ounces of gold, and 20 million pounds of molybdenum.
• Consolidated sales for the quarter were 931 million pounds of copper, 361 thousand ounces of gold, and 21 million pounds of molybdenum.
• The company expects annual sales to approximate 4.1 billion pounds of copper, 1.8 million ounces of gold, and 82 million pounds of molybdenum in 2024, including 1.0 billion pounds of copper, 475 thousand ounces of gold, and 20 million pounds of molybdenum in Q3 2024.
• Average realized prices in Q2 2024 were $4.48 per pound for copper, $2,299 per ounce for gold, and $21.72 per pound for molybdenum.
• Average unit net cash costs for copper were $1.73 per pound in Q2 2024, with an expected annual average of $1.63 per pound for 2024.

Financial Performance:

• Operating cash flows in Q2 2024 totaled $2.0 billion, including $0.1 billion from working capital and other sources. Full-year operating cash flows are projected to reach $7.2 billion, assuming average prices of $4.25 per pound for copper, $2,300 per ounce for gold, and $20.00 per pound for molybdenum for the second half of 2024.
• Capital expenditures in Q2 2024 amounted to $1.1 billion, with $0.4 billion allocated to major mining projects and $0.3 billion to PT Freeport Indonesia's (PT-FI) new smelter and precious metals refinery.
• Full-year 2024 capital expenditures are expected to total approximately $4.7 billion, including $2.3 billion for major mining projects and $1.0 billion for PT-FI's new downstream processing facilities.
• As of June 30, 2024, consolidated debt stood at $9.4 billion, while consolidated cash and cash equivalents totaled $5.3 billion ($6.2 billion including $0.9 billion of current restricted cash in Indonesian banks). Net debt totaled $0.3 billion, excluding $3.0 billion of debt for PT-FI's new downstream processing facilities.

Strategic and Operational Developments:

• The new smelter in Indonesia has entered the commissioning phase, with normal shipping schedules resuming in July 2024 after disruptions in June.
• Freeport continues to enhance productivity and cost control while advancing its organic growth portfolio.
• In July 2024, Freeport repurchased 1.2 million shares of its common stock for $59 million, bringing total purchases under its $5.0 billion share repurchase program to 49.0 million shares at a total cost of $1.9 billion.

Richard Adkerson, Chairman of the Board, and Kathleen Quirk, President and CEO, commented, "Our global team remained focused during the quarter on strong execution of our operating plans, enhancing productivity and cost control, and initiatives to build and advance optionality in our organic growth portfolio. Our team reached an important milestone in Indonesia during the quarter with the start of commissioning of our major new copper smelter, and we are working to execute a safe and efficient ramp-up to full capacity by the end of the year. This strategically important investment is integral to support our long-term, high-quality operations in the Grasberg minerals district. Copper pricing was strong in the second quarter. The long-term outlook for copper is supported by copper's increasingly important role in the global economy and limited available supplies to meet growing demand. Freeport is well positioned for the future as a leading, responsible producer of copper with multiple options for future growth and an experienced and innovative team with a track record of accomplishment."