Reports Fourth-Quarter and Year Ended 2020 Results
•Strong execution of operating plans
•Solid cost & capital management
•Ramp-up of Grasberg underground advancing on schedule
•Fourth-quarter 2020 copper and gold sales 3% and 9% above October 2020 estimates
•Strong cash flow generation
▪Net income attributable to common stock totaled $708 million, $0.48 per share, in fourth-quarter 2020. After adjusting for net credits totaling $142 million, $0.10 per share, fourth-quarter 2020 adjusted net income attributable to common stock totaled $566 million, or $0.39 per share.
▪Consolidated sales totaled 866 million pounds of copper, 293 thousand ounces of gold and 21 million pounds of molybdenum in fourth-quarter 2020, and 3.2 billion pounds of copper, 855 thousand ounces of gold and 80 million pounds of molybdenum for the year 2020. Consolidated sales for the year 2021 are expected to approximate 3.8 billion pounds of copper, 1.3 million ounces of gold and 85 million pounds of molybdenum, including 825 million pounds of copper, 275 thousand ounces of gold and 20 million pounds of molybdenum in first-quarter 2021.
▪Average realized prices in fourth-quarter 2020 were $3.40 per pound for copper, $1,870 per ounce for gold and $9.96 per pound for molybdenum.
▪Average unit net cash costs in fourth-quarter 2020 were $1.28 per pound of copper and $1.48 per pound of copper for the year 2020. Unit net cash costs are expected to average $1.25 per pound of copper for the year 2021.
▪Operating cash flows totaled $1.3 billion (including $0.3 billion from working capital and other sources) in fourth-quarter 2020 and $3.0 billion (including $0.7 billion from working capital and other sources) for the year 2020. Based on current sales volume and cost estimates, and assuming average prices of $3.50 per pound for copper, $1,850 per ounce for gold and $9.00 per pound for molybdenum, operating cash flows are expected to approximate $5.5 billion (including $0.4 billion from working capital and other sources) for the year 2021.
▪Capital expenditures totaled $0.4 billion (including approximately $0.3 billion for major projects) in fourth-quarter 2020 and $2.0 billion (including approximately $1.2 billion for major projects) for the year 2020. Capital expenditures for the year 2021 are expected to approximate $2.3 billion, including $1.4 billion for major projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia.
▪During fourth-quarter 2020, FCX sold an undeveloped exploration project in the Democratic Republic of Congo (DRC) for $550 million and recognized an after-tax gain of $350 million. After-tax net cash proceeds to FCX totaled $415 million.
▪At December 31, 2020, consolidated debt totaled $9.7 billion and consolidated cash totaled $3.7 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at December 31, 2020.
The following information was filed by Freeport-McMoRan, Inc (FCX) on Tuesday, January 26, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.