Reports Fourth-Quarter and Year Ended 2021 Results
•Achieved 19 percent increase in copper sales and 59 percent increase in gold sales in 2021
•Successful ramp-up of Grasberg underground mines
•Strong financial results and cash flow generation
•Commenced implementation of performance-based shareholder payout framework
•Advancing organic growth initiatives
•Favorable operational and market outlook
▪Net income attributable to common stock in fourth-quarter 2021 totaled $1.1 billion, $0.74 per share, and adjusted net income attributable to common stock totaled $1.4 billion, or $0.96 per share, after excluding net charges totaling $0.3 billion, $0.21 per share.
▪Consolidated sales totaled 1.02 billion pounds of copper, 395 thousand ounces of gold and 19 million pounds of molybdenum in fourth-quarter 2021, and 3.8 billion pounds of copper, 1.4 million ounces of gold and 82 million pounds of molybdenum for the year 2021. Consolidated sales for the year 2022 are expected to approximate 4.3 billion pounds of copper, 1.6 million ounces of gold and 80 million pounds of molybdenum, including 970 million pounds of copper, 380 thousand ounces of gold and 20 million pounds of molybdenum in first-quarter 2022.
▪Average realized prices in fourth-quarter 2021 were $4.42 per pound for copper, $1,808 per ounce for gold and $19.42 per pound for molybdenum.
▪Average unit net cash costs were $1.29 per pound of copper in fourth-quarter 2021 and $1.34 per pound of copper for the year 2021. Unit net cash costs are expected to average $1.35 per pound of copper for the year 2022.
▪Operating cash flows totaled $2.3 billion (including $0.4 billion from working capital and other sources) in fourth-quarter 2021 and $7.7 billion (including $0.8 billion from working capital and other sources) for the year 2021. Based on current sales volume and cost estimates, and assuming average prices of $4.50 per pound for copper, $1,800 per ounce for gold and $19.00 per pound for molybdenum, operating cash flows are expected to approximate $8.0 billion (net of $1.3 billion of working capital and other uses) for the year 2022.
▪Capital expenditures totaled $0.8 billion (including $0.3 billion for major mining projects and $0.1 billion for the Indonesia smelter projects) in fourth-quarter 2021 and $2.1 billion (including $1.25 billion for major mining projects and $0.2 billion for the Indonesia smelter projects) for the year ended 2021. Capital expenditures for the year 2022 are expected to approximate $4.7 billion ($3.3 billion excluding the Indonesia smelter projects), including $2.0 billion for major mining projects.
▪In November 2021, FCX's Board of Directors (Board) approved a new share repurchase program authorizing repurchases of up to $3.0 billion of FCX's common stock (through January 25, 2022, FCX has acquired 15.4 million shares for a total cost of $599.9 million, $39.03 per share) and approved an increase in common stock dividends. The combined annual rate of the base dividend and the variable dividend approved by the Board is expected to total $0.60 per share in 2022.
▪At December 31, 2021, consolidated debt totaled $9.5 billion and consolidated cash and cash equivalents totaled $8.1 billion, resulting in net debt of $1.4 billion (refer to the supplemental schedule, "Net Debt," on page IX). FCX had no borrowings and $3.5 billion available under its revolving credit facility at December 31, 2021.
▪FCX added two new independent directors during fourth-quarter 2021: Ryan M. Lance and Hugh Grant. With these appointments, FCX's Board is now comprised of eleven directors, including ten independent directors. FCX has successfully achieved its Board refreshment objectives adding six new directors in 2021, enhancing the skills, experience and diversity of the Board.
The following information was filed by Freeport-McMoRan, Inc (FCX) on Wednesday, January 26, 2022 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.