(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Exhibit Number | Exhibit Title |
Press release dated October 23, 2019, titled “Freeport-McMoRan Reports Third-Quarter and Nine-Month 2019 Results” and supplementary schedules. | |
Slides presented in connection with FCX’s third-quarter 2019 earnings conference call conducted via the internet on October 23, 2019. | |
▪ | Net loss attributable to common stock totaled $131 million, $0.09 per share, in third-quarter 2019. After adjusting for net charges of $123 million, $0.08 per share, third-quarter 2019 adjusted net loss attributable to common stock totaled $8 million, $0.01 per share. |
▪ | Consolidated sales totaled 795 million pounds of copper, 243 thousand ounces of gold and 22 million pounds of molybdenum in third-quarter 2019. Consolidated production totaled 864 million pounds of copper and 333 thousand ounces of gold in third-quarter 2019. |
▪ | Full year consolidated sales guidance is similar to prior estimates, with consolidated sales expected to approximate 3.3 billion pounds of copper, 874 thousand ounces of gold and 92 million pounds of molybdenum for the year 2019, including 870 million pounds of copper, 200 thousand ounces of gold and 24 million pounds of molybdenum in fourth-quarter 2019. |
▪ | Average realized prices in third-quarter 2019 were $2.62 per pound for copper, $1,487 per ounce for gold and $12.89 per pound for molybdenum. |
▪ | Average unit net cash costs in third-quarter 2019 were $1.59 per pound of copper and are expected to approximate $1.76 per pound of copper for the year 2019. |
▪ | Operating cash flows totaled $224 million (net of $146 million of working capital uses and timing of other tax payments) in third-quarter 2019 and $1.3 billion (including $135 million of working capital sources and timing of other tax payments) for the first nine months of 2019. Based on current sales volume and cost estimates, and assuming average prices of $2.60 per pound for copper, $1,500 per ounce for gold and $12.00 per pound for molybdenum for fourth-quarter 2019, operating cash flows are expected to approximate $1.6 billion (including $0.2 billion of working capital sources and timing of other tax payments) for the year 2019. |
▪ | Capital expenditures totaled $0.7 billion (including approximately $0.3 billion for major mining projects) in third-quarter 2019 and $1.9 billion (including approximately $1.1 billion for major mining projects) for the first nine months of 2019. Capital expenditures for the year 2019 are expected to approximate $2.6 billion, including $1.6 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and development of the Lone Star copper leach project in Arizona. |
▪ | The Grasberg underground and Lone Star copper leach development projects are progressing according to plan. |
▪ | At September 30, 2019, consolidated debt totaled $9.9 billion and consolidated cash totaled $2.2 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at September 30, 2019. |
▪ | On September 25, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on November 1, 2019. |
Freeport-McMoRan | 1 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Revenuesa,b | $ | 3,308 | $ | 4,908 | $ | 10,646 | $ | 14,944 | ||||||||
Operating incomea | $ | 117 | $ | 1,315 | $ | 471 | $ | 4,438 | ||||||||
Net (loss) income from continuing operations | $ | (139 | ) | $ | 668 | $ | (138 | ) | $ | 2,535 | ||||||
Net (loss) income attributable to common stockc,d | $ | (131 | ) | $ | 556 | $ | (172 | ) | $ | 2,117 | ||||||
Diluted net (loss) income per share of common stock: | ||||||||||||||||
Continuing operations | $ | (0.09 | ) | $ | 0.38 | $ | (0.12 | ) | $ | 1.46 | ||||||
Discontinued operations | — | — | — | (0.01 | ) | |||||||||||
$ | (0.09 | ) | $ | 0.38 | $ | (0.12 | ) | $ | 1.45 | |||||||
Diluted weighted-average common shares outstanding | 1,452 | 1,458 | 1,451 | 1,458 | ||||||||||||
Operating cash flowse | $ | 224 | $ | 1,247 | $ | 1,312 | $ | 3,925 | ||||||||
Capital expenditures | $ | 666 | $ | 507 | $ | 1,917 | $ | 1,391 | ||||||||
At September 30: | ||||||||||||||||
Cash and cash equivalents | $ | 2,247 | $ | 4,580 | $ | 2,247 | $ | 4,580 | ||||||||
Total debt, including current portion | $ | 9,919 | $ | 11,287 | $ | 9,919 | $ | 11,287 | ||||||||
a. | For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page X, which are available on FCX's website, "fcx.com." |
b. | Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(42) million ($(17) million to net loss attributable to common stock or $(0.01) per share) in third-quarter 2019, $(111) million ($(48) million to net income attributable to common stock or $(0.03) per share) in third-quarter 2018, $58 million ($23 million to net loss attributable to common stock or $0.02 per share) for the first nine months of 2019 and $(70) million ($(31) million to net income attributable to common stock or $(0.02) per share) for the first nine months of 2018. For further discussion, refer to the supplemental schedule, "Derivative Instruments," on page IX, which is available on FCX's website, "fcx.com." |
c. | Includes net (charges) gains of $(123) million ($(0.08) per share) in third-quarter 2019, $42 million ($0.03 per share) in third-quarter 2018, $(173) million ($(0.12) per share) for the first nine months of 2019 and $69 million ($0.04 per share) for the first nine months of 2018 that are described in the supplemental schedule, "Adjusted Net (Loss) Income," on page VII, which is available on FCX's website, "fcx.com." |
d. | FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page IX, which is available on FCX's website, "fcx.com." |
Freeport-McMoRan | 2 |
e. | Net of working capital (uses) sources and timing of other tax payments of $(146) million in third-quarter 2019, $59 million in third-quarter 2018, $135 million for the first nine months of 2019 and $(154) million for the first nine months of 2018. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 864 | 1,006 | 2,420 | 2,972 | |||||||||||||
Sales, excluding purchases | 795 | 1,044 | 2,386 | 3,026 | |||||||||||||
Average realized price per pound | $ | 2.62 | $ | 2.80 | $ | 2.71 | $ | 2.96 | |||||||||
Site production and delivery costs per pounda | $ | 2.05 | $ | 1.73 | b | $ | 2.16 | $ | 1.70 | b | |||||||
Unit net cash costs per pounda | $ | 1.59 | $ | 0.93 | b | $ | 1.76 | $ | 0.95 | b | |||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 333 | 760 | 659 | 2,105 | |||||||||||||
Sales, excluding purchases | 243 | 837 | 674 | 2,123 | |||||||||||||
Average realized price per ounce | $ | 1,487 | $ | 1,191 | $ | 1,380 | $ | 1,249 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Production | 21 | 23 | 69 | 69 | |||||||||||||
Sales, excluding purchases | 22 | 22 | 68 | 70 | |||||||||||||
Average realized price per pound | $ | 12.89 | $ | 12.40 | $ | 12.92 | $ | 12.41 |
a. | Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com." |
b. | Includes charges totaling $0.07 per pound of copper in third-quarter 2018 and $0.02 per pound of copper for the first nine months of 2018 associated with for Cerro Verde's three-year collective labor agreement (CLA). Refer to the supplemental schedule, "Adjusted Net (Loss) Income," on page VII, which is available on FCX's website, "fcx.com," for additional information. |
Freeport-McMoRan | 3 |
Freeport-McMoRan | 4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 390 | 349 | 1,096 | 1,051 | |||||||||||||
Sales, excluding purchases | 395 | 350 | 1,084 | 1,095 | |||||||||||||
Average realized price per pound | $ | 2.65 | $ | 2.77 | $ | 2.74 | $ | 3.02 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productiona | 8 | 8 | 24 | 23 | |||||||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 2.03 | $ | 1.98 | $ | 2.05 | $ | 1.92 | |||||||||
By-product credits | (0.22 | ) | (0.26 | ) | (0.25 | ) | (0.23 | ) | |||||||||
Treatment charges | 0.11 | 0.10 | 0.11 | 0.10 | |||||||||||||
Unit net cash costs | $ | 1.92 | $ | 1.82 | $ | 1.91 | $ | 1.79 | |||||||||
a. | Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com." |
Freeport-McMoRan | 5 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 283 | 325 | 863 | 931 | |||||||||||||
Sales | 261 | 326 | 838 | 928 | |||||||||||||
Average realized price per pound | $ | 2.61 | $ | 2.80 | $ | 2.67 | $ | 2.93 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productiona | 6 | 7 | 21 | 20 | |||||||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.89 | $ | 1.84 | c | $ | 1.84 | $ | 1.80 | c | |||||||
By-product credits | (0.26 | ) | (0.23 | ) | (0.29 | ) | (0.24 | ) | |||||||||
Treatment charges | 0.17 | 0.20 | 0.18 | 0.20 | |||||||||||||
Royalty on metals | 0.01 | — | 0.01 | — | |||||||||||||
Unit net cash costs | $ | 1.81 | $ | 1.81 | $ | 1.74 | $ | 1.76 | |||||||||
a. | Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com." |
c. | Includes charges totaling $0.21 per pound of copper in third-quarter 2018 and $0.07 per pound of copper for the first nine months of 2018 associated with Cerro Verde's three-year CLA. |
Freeport-McMoRan | 6 |
Freeport-McMoRan | 7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 191 | 332 | 461 | 990 | |||||||||||||
Sales | 139 | 368 | 464 | 1,003 | |||||||||||||
Average realized price per pound | $ | 2.59 | $ | 2.81 | $ | 2.70 | $ | 2.93 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 329 | 754 | 645 | 2,089 | |||||||||||||
Sales | 239 | 831 | 659 | 2,105 | |||||||||||||
Average realized price per ounce | $ | 1,487 | $ | 1,191 | $ | 1,380 | $ | 1,248 | |||||||||
Unit net cash costs (credits) per pound of coppera | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 2.44 | $ | 1.40 | $ | 3.00 | $ | 1.36 | |||||||||
Gold and silver credits | (2.64 | ) | (2.72 | ) | (2.02 | ) | (2.69 | ) | |||||||||
Treatment charges | 0.25 | 0.26 | 0.27 | 0.26 | |||||||||||||
Export duties | 0.05 | 0.14 | 0.07 | 0.15 | |||||||||||||
Royalty on metals | 0.17 | 0.20 | 0.15 | 0.21 | |||||||||||||
Unit net cash costs (credits) | $ | 0.27 | $ | (0.72 | ) | $ | 1.47 | $ | (0.71 | ) | |||||||
a. | For a reconciliation of unit net cash costs (credits) per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com." |
Freeport-McMoRan | 8 |
Freeport-McMoRan | 9 |
Cash at domestic companies | $ | 1.3 | ||
Cash at international operations | 0.9 | |||
Total consolidated cash and cash equivalents | 2.2 | |||
Noncontrolling interests' share | (0.3 | ) | ||
Cash, net of noncontrolling interests' share | $ | 1.9 | ||
Withholding taxes | — | a | ||
Net cash available | $ | 1.9 | ||
a. | Rounds to less than $0.1 billion. |
Freeport-McMoRan | 10 |
Freeport-McMoRan | 11 |
Freeport-McMoRan Inc. | ||||||||||||||
SELECTED OPERATING DATA | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
MINING OPERATIONS: | Production | Sales | ||||||||||||
COPPER (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America | ||||||||||||||
Morenci (72%)a | 200 | 170 | 199 | 174 | ||||||||||
Bagdad (100%) | 58 | 45 | 59 | 47 | ||||||||||
Safford (100%) | 28 | 32 | 29 | 31 | ||||||||||
Sierrita (100%) | 42 | 36 | 43 | 36 | ||||||||||
Miami (100%) | 4 | 4 | 4 | 3 | ||||||||||
Chino (100%) | 46 | 46 | 48 | 45 | ||||||||||
Tyrone (100%) | 12 | 15 | 13 | 14 | ||||||||||
Other (100%) | — | 1 | — | — | ||||||||||
Total North America | 390 | 349 | 395 | 350 | ||||||||||
South America | ||||||||||||||
Cerro Verde (53.56%) | 234 | 275 | 217 | 280 | ||||||||||
El Abra (51%) | 49 | 50 | 44 | 46 | ||||||||||
Total South America | 283 | 325 | 261 | 326 | ||||||||||
Indonesia | ||||||||||||||
Grasberg (48.76%)b | 191 | 332 | 139 | 368 | ||||||||||
Total | 864 | 1,006 | 795 | c | 1,044 | c | ||||||||
Less noncontrolling interests | 168 | 183 | 149 | 186 | ||||||||||
Net | 696 | 823 | 646 | 858 | ||||||||||
Average realized price per pound | $ | 2.62 | $ | 2.80 | ||||||||||
GOLD (thousands of recoverable ounces) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America (100%) | 4 | 6 | 4 | 6 | ||||||||||
Indonesia (48.76%)b | 329 | 754 | 239 | 831 | ||||||||||
Consolidated | 333 | 760 | 243 | 837 | ||||||||||
Less noncontrolling interests | 61 | 70 | 45 | 77 | ||||||||||
Net | 272 | 690 | 198 | 760 | ||||||||||
Average realized price per ounce | $ | 1,487 | $ | 1,191 | ||||||||||
MOLYBDENUM (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Henderson (100%) | 2 | 3 | N/A | N/A | ||||||||||
Climax (100%) | 5 | 5 | N/A | N/A | ||||||||||
North America copper mines (100%)a | 8 | 8 | N/A | N/A | ||||||||||
Cerro Verde (53.56%) | 6 | 7 | N/A | N/A | ||||||||||
Consolidated | 21 | 23 | 22 | 22 | ||||||||||
Less noncontrolling interests | 3 | 3 | 3 | 2 | ||||||||||
Net | 18 | 20 | 19 | 20 | ||||||||||
Average realized price per pound | $ | 12.89 | $ | 12.40 | ||||||||||
a. Amounts are net of Morenci's undivided joint venture partners' interests. | ||||||||||||||
b. Effective December 21, 2018, FCX's share ownership in PT Freeport Indonesia (PT-FI) is 48.76 percent. FCX’s economic interest in PT-FI is expected to approximate 81 percent through 2022 and 48.76 percent thereafter. | ||||||||||||||
c. Consolidated sales volumes exclude purchased copper of 79 million pounds in third-quarter 2019 and 93 million pounds in third-quarter 2018. | ||||||||||||||
Freeport-McMoRan Inc. | ||||||||||||||
SELECTED OPERATING DATA (continued) | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
MINING OPERATIONS: | Production | Sales | ||||||||||||
Copper (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America | ||||||||||||||
Morenci (72%)a | 548 | 521 | 536 | 544 | ||||||||||
Bagdad (100%) | 170 | 142 | 168 | 146 | ||||||||||
Safford (100%) | 84 | 94 | 85 | 99 | ||||||||||
Sierrita (100%) | 117 | 113 | 116 | 118 | ||||||||||
Miami (100%) | 11 | 12 | 11 | 12 | ||||||||||
Chino (100%) | 129 | 126 | 130 | 133 | ||||||||||
Tyrone (100%) | 37 | 41 | 38 | 42 | ||||||||||
Other (100%) | — | 2 | — | 1 | ||||||||||
Total North America | 1,096 | 1,051 | 1,084 | 1,095 | ||||||||||
South America | ||||||||||||||
Cerro Verde (53.56%) | 734 | 780 | 713 | 780 | ||||||||||
El Abra (51%) | 129 | 151 | 125 | 148 | ||||||||||
Total South America | 863 | 931 | 838 | 928 | ||||||||||
Indonesia | ||||||||||||||
Grasberg (48.76%)b | 461 | 990 | 464 | 1,003 | ||||||||||
Total | 2,420 | 2,972 | 2,386 | c | 3,026 | c | ||||||||
Less noncontrolling interests | 490 | 529 | 480 | 528 | ||||||||||
Net | 1,930 | 2,443 | 1,906 | 2,498 | ||||||||||
Average realized price per pound | $ | 2.71 | $ | 2.96 | ||||||||||
Gold (thousands of recoverable ounces) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America (100%) | 14 | 16 | 15 | 18 | ||||||||||
Indonesia (48.76%)b | 645 | 2,089 | 659 | 2,105 | ||||||||||
Consolidated | 659 | 2,105 | 674 | 2,123 | ||||||||||
Less noncontrolling interests | 121 | 195 | 124 | 197 | ||||||||||
Net | 538 | 1,910 | 550 | 1,926 | ||||||||||
Average realized price per ounce | $ | 1,380 | $ | 1,249 | ||||||||||
Molybdenum (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Henderson (100%) | 10 | 10 | N/A | N/A | ||||||||||
Climax (100%) | 14 | 16 | N/A | N/A | ||||||||||
North America (100%)a | 24 | 23 | N/A | N/A | ||||||||||
Cerro Verde (53.56%) | 21 | 20 | N/A | N/A | ||||||||||
Consolidated | 69 | 69 | 68 | 70 | ||||||||||
Less noncontrolling interests | 10 | 9 | 10 | 9 | ||||||||||
Net | 59 | 60 | 58 | 61 | ||||||||||
Average realized price per pound | $ | 12.92 | $ | 12.41 | ||||||||||
a. Amounts are net of Morenci's undivided joint venture partners' interests. | ||||||||||||||
b. Effective December 21, 2018, FCX's share ownership in PT-FI is 48.76 percent. FCX’s economic interest in PT-FI is expected to approximate 81 percent through 2022 and 48.76 percent thereafter. | ||||||||||||||
c. Consolidated sales volumes exclude purchased copper of 310 million pounds for the first nine months of 2019 and 257 million pounds for the first nine months of 2018. | ||||||||||||||
Freeport-McMoRan Inc. | ||||||||||||
SELECTED OPERATING DATA (continued) | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
100% North America Copper Mines | ||||||||||||
Leach Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 756,900 | 657,600 | 753,400 | 673,800 | ||||||||
Average copper ore grade (percent) | 0.24 | 0.22 | 0.23 | 0.25 | ||||||||
Copper production (millions of recoverable pounds) | 270 | 242 | 741 | 723 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 337,700 | 297,800 | 324,600 | 297,900 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 0.33 | 0.34 | 0.34 | 0.35 | ||||||||
Molybdenum | 0.02 | 0.03 | 0.02 | 0.02 | ||||||||
Copper recovery rate (percent) | 88.5 | 87.4 | 87.9 | 88.1 | ||||||||
Production (millions of recoverable pounds): | ||||||||||||
Copper | 198 | 173 | 569 | 531 | ||||||||
Molybdenum | 8 | 8 | 25 | 24 | ||||||||
100% South America Mining | ||||||||||||
Leach Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 257,300 | 194,400 | 205,300 | 203,100 | ||||||||
Average copper ore grade (percent) | 0.36 | 0.34 | 0.36 | 0.32 | ||||||||
Copper production (millions of recoverable pounds) | 70 | 72 | 192 | 214 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 381,200 | 383,900 | 391,800 | 384,800 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 0.35 | 0.39 | 0.36 | 0.39 | ||||||||
Molybdenum | 0.02 | 0.02 | 0.02 | 0.01 | ||||||||
Copper recovery rate (percent) | 81.5 | 86.1 | 83.5 | 83.2 | ||||||||
Production (millions of recoverable pounds): | ||||||||||||
Copper | 213 | 253 | 671 | 717 | ||||||||
Molybdenum | 6 | 7 | 21 | 20 | ||||||||
100% Indonesia Mining | ||||||||||||
Ore extracted and milled (metric tons per day): | ||||||||||||
Grasberg open pita | 70,000 | 149,500 | 75,500 | 141,100 | ||||||||
Deep Ore Zone underground mineb | 24,500 | 31,000 | 25,300 | 33,200 | ||||||||
Deep Mill Level Zone underground mineb | 9,800 | 2,500 | 8,100 | 2,600 | ||||||||
Grasberg Block Cave underground mineb | 10,600 | 3,700 | 7,700 | 3,800 | ||||||||
Big Gossan underground mineb | 7,000 | 3,900 | 6,000 | 3,400 | ||||||||
Total | 121,900 | 190,600 | 122,600 | 184,100 | ||||||||
Average ore grades: | ||||||||||||
Copper (percent) | 0.92 | 1.00 | 0.77 | 1.06 | ||||||||
Gold (grams per metric ton) | 1.23 | 1.77 | 0.85 | 1.73 | ||||||||
Recovery rates (percent): | ||||||||||||
Copper | 89.4 | 92.4 | 87.6 | 92.4 | ||||||||
Gold | 75.6 | 85.7 | 73.5 | 85.5 | ||||||||
Production (recoverable): | ||||||||||||
Copper (millions of pounds) | 191 | 337 | 461 | 1,030 | ||||||||
Gold (thousands of ounces) | 329 | 817 | 645 | 2,306 | ||||||||
100% Molybdenum Mines | ||||||||||||
Ore milled (metric tons per day) | 36,100 | 29,400 | 33,000 | 27,100 | ||||||||
Average molybdenum ore grade (percent) | 0.12 | 0.17 | 0.14 | 0.18 | ||||||||
Molybdenum production (millions of recoverable pounds) | 7 | 8 | 24 | 26 | ||||||||
a. Includes ore from related stockpiles. | ||||||||||||
b. Reflects ore extracted, including ore from development activities that result in metal production. | ||||||||||||
Freeport-McMoRan Inc. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In Millions, Except Per Share Amounts) | ||||||||||||||||
Revenuesa | $ | 3,308 | $ | 4,908 | $ | 10,646 | $ | 14,944 | ||||||||
Cost of sales: | ||||||||||||||||
Production and deliveryb | 2,665 | 3,069 | 8,584 | 8,790 | ||||||||||||
Depreciation, depletion and amortization | 322 | 458 | 1,021 | 1,351 | ||||||||||||
Metals inventory adjustments | 41 | — | 100 | 2 | ||||||||||||
Total cost of sales | 3,028 | 3,527 | 9,705 | 10,143 | ||||||||||||
Selling, general and administrative expenses | 106 | 101 | 315 | 341 | ||||||||||||
Mining exploration and research expenses | 25 | 27 | 83 | 72 | ||||||||||||
Environmental obligations and shutdown costs | 20 | 8 | 85 | 76 | ||||||||||||
Net loss (gain) on sales of assets | 12 | (70 | ) | (13 | ) | (126 | ) | |||||||||
Total costs and expenses | 3,191 | 3,593 | 10,175 | 10,506 | ||||||||||||
Operating income | 117 | 1,315 | 471 | 4,438 | ||||||||||||
Interest expense, netc | (123 | ) | (143 | ) | (401 | ) | (436 | ) | ||||||||
Net (loss) gain on early extinguishment of debt | (21 | ) | — | (27 | ) | 8 | ||||||||||
Other income, net | 33 | 14 | 52 | 63 | d | |||||||||||
Income from continuing operations before income taxes and equity in affiliated companies' net earnings | 6 | 1,186 | 95 | 4,073 | ||||||||||||
Provision for income taxese | (150 | ) | (522 | ) | (240 | ) | (1,543 | ) | ||||||||
Equity in affiliated companies' net earnings | 5 | 4 | 7 | 5 | ||||||||||||
Net (loss) income from continuing operations | (139 | ) | 668 | (138 | ) | 2,535 | ||||||||||
Net gain (loss) from discontinued operations | 1 | (4 | ) | 2 | (19 | ) | ||||||||||
Net (loss) income | (138 | ) | 664 | (136 | ) | 2,516 | ||||||||||
Net loss (income) attributable to noncontrolling interestsf | 7 | (108 | ) | (36 | ) | (399 | ) | |||||||||
Net (loss) income attributable to common stockholdersg | $ | (131 | ) | $ | 556 | $ | (172 | ) | $ | 2,117 | ||||||
Diluted net (loss) income per share attributable to common stock: | ||||||||||||||||
Continuing operations | $ | (0.09 | ) | $ | 0.38 | $ | (0.12 | ) | $ | 1.46 | ||||||
Discontinued operations | — | — | — | (0.01 | ) | |||||||||||
$ | (0.09 | ) | $ | 0.38 | $ | (0.12 | ) | $ | 1.45 | |||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 1,452 | 1,450 | 1,451 | 1,449 | ||||||||||||
Diluted | 1,452 | 1,458 | 1,451 | 1,458 | ||||||||||||
Dividends declared per share of common stock | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 | ||||||||
a. | Includes adjustments to provisionally priced concentrate and cathode sales. For a summary of adjustments to provisionally priced copper sales, refer to the supplemental schedule, "Derivative Instruments," on page IX. |
b. | Includes PT-FI charges, an environmental-related litigation reserve and other net (charges) credits, which are summarized in the supplemental schedule, "Adjusted Net (Loss) Income," on page VII. |
c. | Consolidated interest costs (before capitalization) totaled $163 million in third-quarter 2019, $167 million in third-quarter 2018, $508 million for the first nine months of 2019 and $508 million for the first nine months of 2018. |
d. | Includes interest received with the refund of PT-FI's prior years' tax receivables. Refer to the supplemental schedule, "Adjusted Net (Loss) Income," on page VII. |
e. | For a summary of FCX's provision for income taxes, refer to the supplemental schedule, "Income Taxes," on page VIII. |
f. | Includes noncontrolling interest impacts associated with tax charges to record deferred taxes for historical balances in accordance with tax accounting guidance. Refer to the supplemental schedule, "Income Taxes," on page VIII. |
g. | FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page IX. |
Freeport-McMoRan Inc. | ||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
September 30, 2019 | December 31, 2018 | |||||||
(In Millions) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,247 | $ | 4,217 | ||||
Trade accounts receivable | 731 | 829 | ||||||
Income and other tax receivables | 269 | 493 | ||||||
Inventories: | ||||||||
Materials and supplies, net | 1,619 | 1,528 | ||||||
Mill and leach stockpiles | 1,302 | 1,453 | ||||||
Product | 1,513 | 1,778 | ||||||
Other current assets | 669 | 422 | ||||||
Total current assets | 8,350 | 10,720 | ||||||
Property, plant, equipment and mine development costs, net | 29,330 | 28,010 | ||||||
Long-term mill and leach stockpiles | 1,300 | 1,314 | ||||||
Other assets | 2,085 | 2,172 | ||||||
Total assets | $ | 41,065 | $ | 42,216 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 2,725 | $ | 2,625 | ||||
Current portion of environmental and asset retirement obligations | 488 | 449 | ||||||
Dividends payable | 73 | 73 | ||||||
Accrued income taxes | 70 | 165 | ||||||
Current portion of debt | 4 | 17 | ||||||
Total current liabilities | 3,360 | 3,329 | ||||||
Long-term debt, less current portion | 9,915 | 11,124 | ||||||
Deferred income taxes | 4,292 | 4,032 | ||||||
Environmental and asset retirement obligations, less current portion | 3,558 | 3,609 | ||||||
Other liabilities | 2,302 | 2,230 | ||||||
Total liabilities | 23,427 | 24,324 | ||||||
Equity: | ||||||||
Stockholders' equity: | ||||||||
Common stock | 158 | 158 | ||||||
Capital in excess of par value | 25,880 | 26,013 | ||||||
Accumulated deficit | (12,213 | ) | (12,041 | ) | ||||
Accumulated other comprehensive loss | (570 | ) | (605 | ) | ||||
Common stock held in treasury | (3,735 | ) | (3,727 | ) | ||||
Total stockholders' equity | 9,520 | 9,798 | ||||||
Noncontrolling interestsa | 8,118 | 8,094 | ||||||
Total equity | 17,638 | 17,892 | ||||||
Total liabilities and equity | $ | 41,065 | $ | 42,216 | ||||
a. | Includes $4.6 billion associated with the December 2018 PT-FI transaction, including $4.1 billion associated with the PT Indonesia Asahan Aluminium (Persero) acquisition of Rio Tinto's joint venture interest. |
Freeport-McMoRan Inc. | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2019 | 2018 | ||||||||
(In Millions) | |||||||||
Cash flow from operating activities: | |||||||||
Net (loss) income | $ | (136 | ) | $ | 2,516 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||
Depreciation, depletion and amortization | 1,021 | 1,351 | |||||||
Metals inventory adjustments | 100 | 2 | |||||||
Net gain on sales of assets | (13 | ) | (126 | ) | |||||
Stock-based compensation | 52 | 70 | |||||||
Net charges for environmental and asset retirement obligations, including accretion | 160 | 206 | |||||||
Payments for environmental and asset retirement obligations | (164 | ) | (179 | ) | |||||
Net charges for defined pension and postretirement plans | 79 | 59 | |||||||
Pension plan contributions | (58 | ) | (60 | ) | |||||
Net loss (gain) on early extinguishment of debt | 27 | (8 | ) | ||||||
Deferred income taxes | 119 | 202 | |||||||
(Gain) loss on discontinued operations | (2 | ) | 19 | ||||||
Dividends received from PT Smelting | 33 | — | |||||||
Change in long-term mill and leach stockpiles | (5 | ) | 54 | ||||||
Charges for PT-FI surface water tax settlement | 28 | — | |||||||
Charges for Cerro Verde royalty dispute | 40 | — | |||||||
Payments for Cerro Verde royalty dispute | (126 | ) | (32 | ) | |||||
Other, net | 22 | 5 | |||||||
Changes in working capital and other tax payments: | |||||||||
Accounts receivable | 209 | 321 | |||||||
Inventories | 229 | (326 | ) | ||||||
Other current assets | 15 | (16 | ) | ||||||
Accounts payable and accrued liabilities | (45 | ) | (2 | ) | |||||
Accrued income taxes and timing of other tax payments | (273 | ) | (131 | ) | |||||
Net cash provided by operating activities | 1,312 | 3,925 | |||||||
Cash flow from investing activities: | |||||||||
Capital expenditures: | |||||||||
North America copper mines | (641 | ) | (413 | ) | |||||
South America | (176 | ) | (188 | ) | |||||
Indonesia | (992 | ) | (695 | ) | |||||
Molybdenum mines | (11 | ) | (6 | ) | |||||
Other | (97 | ) | (89 | ) | |||||
Proceeds from sales of assets | 102 | 10 | |||||||
Intangible water rights and other, net | (10 | ) | (91 | ) | |||||
Net cash used in investing activities | (1,825 | ) | (1,472 | ) | |||||
Cash flow from financing activities: | |||||||||
Proceeds from debt | 1,681 | 475 | |||||||
Repayments of debt | (2,917 | ) | (2,410 | ) | |||||
Cash dividends and distributions paid: | |||||||||
Common stock | (218 | ) | (145 | ) | |||||
Noncontrolling interests | (79 | ) | (241 | ) | |||||
Contributions from noncontrolling interests | 133 | — | |||||||
Stock-based awards net (payments) proceeds | (7 | ) | 4 | ||||||
Debt financing costs and other, net | (23 | ) | (23 | ) | |||||
Net cash used in financing activities | (1,430 | ) | (2,340 | ) | |||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (1,943 | ) | 113 | ||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 4,455 | 4,710 | |||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of perioda | $ | 2,512 | $ | 4,823 | |||||
a. | Includes restricted cash and restricted cash equivalents of $265 million at September 30, 2019, and $243 million at September 30, 2018. |
Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Pre-tax | After-taxa | Per Share | Pre-tax | After-taxa | Per Share | |||||||||||||||||||
Net (loss) income attributable to common stock | N/A | $ | (131 | ) | $ | (0.09 | ) | N/A | $ | 556 | $ | 0.38 | ||||||||||||
Metals inventory adjustments | $ | (41 | ) | $ | (40 | ) | $ | (0.03 | ) | $ | — | $ | — | $ | — | |||||||||
Cerro Verde labor agreement | — | — | — | (69 | ) | (22 | ) | (0.02 | ) | |||||||||||||||
Other net charges | (24 | ) | b | (13 | ) | (0.01 | ) | (1 | ) | — | — | |||||||||||||
Net adjustments to environmental obligations and related litigation reserves | (19 | ) | c | (19 | ) | (0.01 | ) | (2 | ) | (2 | ) | — | ||||||||||||
Net (loss) gain on sales of assetsd | (12 | ) | (12 | ) | (0.01 | ) | 70 | 70 | 0.05 | |||||||||||||||
Net loss on early extinguishment of debt | (21 | ) | (21 | ) | (0.01 | ) | — | — | — | |||||||||||||||
Net tax chargese | N/A | (19 | ) | (0.01 | ) | N/A | — | — | ||||||||||||||||
Gain (loss) on discontinued operationsf | 1 | 1 | — | (4 | ) | (4 | ) | — | ||||||||||||||||
$ | (116 | ) | $ | (123 | ) | $ | (0.08 | ) | $ | (6 | ) | $ | 42 | $ | 0.03 | |||||||||
Adjusted net (loss) income attributable to common stock | N/A | $ | (8 | ) | $ | (0.01 | ) | N/A | $ | 514 | $ | 0.35 |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Pre-tax | After-taxa | Per Share | Pre-tax | After-taxa | Per Share | |||||||||||||||||||
Net (loss) income attributable to common stock | N/A | $ | (172 | ) | $ | (0.12 | ) | N/A | $ | 2,117 | $ | 1.45 | ||||||||||||
Metals inventory adjustments | $ | (100 | ) | $ | (67 | ) | $ | (0.04 | ) | $ | (2 | ) | $ | (2 | ) | $ | — | |||||||
PT-FI charges | (28 | ) | g | (14 | ) | (0.01 | ) | — | — | — | ||||||||||||||
Cerro Verde labor agreement | — | — | — | (69 | ) | (22 | ) | (0.02 | ) | |||||||||||||||
Other net (charges) credits | (48 | ) | b | (23 | ) | (0.02 | ) | 5 | 6 | — | ||||||||||||||
Net adjustments to environmental obligations and related litigation reserves | (63 | ) | c | (63 | ) | (0.04 | ) | (52 | ) | (52 | ) | (0.04 | ) | |||||||||||
Net gain on sales of assetsd | 13 | 13 | 0.01 | 126 | 126 | 0.09 | ||||||||||||||||||
Net (loss) gain on early extinguishment of debt | (27 | ) | (26 | ) | (0.02 | ) | 8 | 8 | 0.01 | |||||||||||||||
Interest on tax refunds | — | — | — | 30 | 19 | 0.01 | ||||||||||||||||||
Net tax (charges) creditse | N/A | 5 | — | N/A | 5 | — | ||||||||||||||||||
Gain (loss) on discontinued operationsf | 2 | 2 | — | (19 | ) | (19 | ) | (0.01 | ) | |||||||||||||||
$ | (251 | ) | $ | (173 | ) | $ | (0.12 | ) | $ | 27 | $ | 69 | $ | 0.04 | ||||||||||
Adjusted net income attributable to common stock | N/A | $ | 1 | $ | — | N/A | $ | 2,048 | $ | 1.41 |
a. | Reflects impact to FCX net (loss) income attributable to common stock (i.e., net of any taxes and noncontrolling interests). |
b. | The third quarter and first nine months of 2019 included asset impairment charges and prior period adjustments to PT-FI export duties for final assays. The first nine months of 2019 also included charges associated with weather-related issues at El Abra and for oil and gas inventory adjustments, partly offset by a credit for an asset retirement obligation adjustment. |
c. | Includes a charge to production and delivery costs totaling $15 million related to Louisiana coastal erosion litigation. |
d. | Includes adjustments to the fair value of the potential contingent consideration related to the 2016 sale of onshore California oil and gas properties, which will continue to be adjusted through December 31, 2020. FCX would receive additional contingent consideration related to this transaction consisting of $50 million per year for 2019 and 2020 if the price of Brent crude oil averages over $70 per barrel in each of these calendar years. The first nine months of 2019 also included a $20 million gain on sales of oil and gas assets. |
e. | Refer to "Income Taxes" on page VIII for further discussion of net tax (charges) credits. |
f. | Primarily reflects adjustments to the estimated fair value of contingent consideration related to the 2016 sale of FCX’s interest in TF Holdings Limited, which will continue to be adjusted through December 31, 2019. |
g. | Reflects an adjustment to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia. |
Three Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Income Tax | ||||||||||||||||||||
Income | Effective | (Provision) | Effective | Income Tax | ||||||||||||||||
(Loss)a | Tax Rate | Benefit | Incomea | Tax Rate | (Provision) | |||||||||||||||
U.S.b | $ | (201 | ) | 3% | $ | 7 | c | $ | 28 | 21% | $ | (6 | ) | |||||||
South America | 41 | 80% | (33 | ) | 107 | 39% | (42 | ) | ||||||||||||
Indonesia | 148 | 34% | (51 | ) | d | 1,037 | 41% | (424 | ) | |||||||||||
Adjustment to deferred taxese | — | N/A | (57 | ) | — | N/A | — | |||||||||||||
Eliminations and other | 18 | N/A | (20 | ) | 14 | N/A | (6 | ) | ||||||||||||
Rate adjustmentf | — | N/A | 4 | — | N/A | (44 | ) | |||||||||||||
Continuing operations | $ | 6 | N/A | g | $ | (150 | ) | $ | 1,186 | 44% | $ | (522 | ) |
Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Income Tax | Income Tax | |||||||||||||||||||
Income | Effective | (Provision) | Effective | (Provision) | ||||||||||||||||
(Loss)a | Tax Rate | Benefit | Incomea | Tax Rate | Benefit | |||||||||||||||
U.S.b | $ | (384 | ) | 7% | $ | 26 | c | $ | 339 | (1)% | $ | 3 | h | |||||||
South America | 335 | 44% | (149 | ) | 566 | 39% | (222 | ) | ||||||||||||
Indonesia | 135 | 37% | (50 | ) | d | 2,982 | 42% | (1,254 | ) | |||||||||||
Adjustment to deferred taxese | — | N/A | (49 | ) | — | N/A | — | |||||||||||||
Eliminations and other | 9 | N/A | (31 | ) | 186 | N/A | (37 | ) | ||||||||||||
Rate adjustmentf | — | N/A | 13 | — | N/A | (33 | ) | |||||||||||||
Continuing operations | $ | 95 | N/A | g,i | $ | (240 | ) | $ | 4,073 | 38% | $ | (1,543 | ) |
a. | Represents (loss) income from continuing operations before income taxes and equity in affiliated companies' net earnings. |
b. | In addition to FCX's North America mining operations, the U.S. jurisdiction reflects corporate-level expenses, which include interest expense associated with senior notes, general and administrative expenses, and environmental obligations and shutdown costs. |
c. | The third quarter and first nine months of 2019 include a tax credit of $6 million associated with the settlement of state income tax examinations. The first nine months of 2019 also includes tax credits totaling $18 million primarily associated with state law changes. |
d. | The third quarter and first nine months of 2019 include a tax charge of $5 million ($4 million net of noncontrolling interest) for non-deductible penalties related to PT-FI's surface water tax settlement. |
e. | Includes net tax charges totaling $57 million ($21 million net of noncontrolling interests) in third quarter 2019 and $49 million ($15 million net of noncontrolling interests) for the first nine months of 2019 primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles. |
f. | In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its consolidated tax rate. |
g. | FCX's consolidated effective tax rate for the third quarter and first nine months of 2019 is not meaningful. |
h. | The first nine months of 2018 includes a tax credit of $5 million associated with the settlement of a state income tax examination. |
i. | The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which FCX operates, excluding the U.S. jurisdiction. Because FCX's U.S. jurisdiction generated net losses in the first nine months of 2019 that will not result in a realized tax benefit, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses. |
Three Months Ended September 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Prior Perioda | Current Periodb | Total | Prior Perioda | Current Periodb | Total | ||||||||||||||||||
Revenues | $ | (42 | ) | $ | (15 | ) | $ | (57 | ) | $ | (111 | ) | $ | 18 | $ | (93 | ) | ||||||
Net income attributable to common stock | $ | (17 | ) | $ | (8 | ) | $ | (25 | ) | $ | (48 | ) | $ | 6 | $ | (42 | ) | ||||||
Net income per share of common stock | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | — | $ | (0.03 | ) |
a. | Reflects adjustments to prior period provisionally priced copper sales at June 30, 2019 and 2018. |
b. | Reflects adjustments to provisionally priced copper sales in the third quarters of 2019 and 2018. |
Nine Months Ended September 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Prior Perioda | Current Periodb | Total | Prior Perioda | Current Periodb | Total | ||||||||||||||||||
Revenues | $ | 58 | $ | (115 | ) | $ | (57 | ) | $ | (70 | ) | $ | (172 | ) | $ | (242 | ) | ||||||
Net income attributable to common stock | $ | 23 | $ | (52 | ) | $ | (29 | ) | $ | (31 | ) | $ | (75 | ) | $ | (106 | ) | ||||||
Net income per share of common stock | $ | 0.02 | $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.07 | ) |
a. | Reflects adjustments to provisionally priced copper sales at December 31, 2018 and 2017. |
b. | Reflects adjustments to provisionally priced copper sales for the first nine months of 2019 and 2018. |
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America Mining | Copper | Other | |||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | Indonesia | Molybdenum | Rod & | Smelting | & Elimi- | FCX | ||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Mines | Total | Mining | Mines | Refining | & Refining | nations | Total | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 61 | $ | 19 | $ | 80 | $ | 504 | $ | 117 | $ | 621 | $ | 643 | a | $ | — | $ | 1,104 | $ | 437 | $ | 423 | b | $ | 3,308 | ||||||||||||||||||||||
Intersegment | 462 | 598 | 1,060 | 65 | — | 65 | — | 90 | 8 | — | (1,223 | ) | — | |||||||||||||||||||||||||||||||||||
Production and delivery | 377 | 519 | 896 | 417 | 111 | 528 | 399 | 85 | 1,111 | 421 | (775 | ) | 2,665 | |||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 45 | 46 | 91 | 93 | 16 | 109 | 77 | 16 | 2 | 7 | 20 | 322 | ||||||||||||||||||||||||||||||||||||
Metals inventory adjustments | 1 | 37 | 38 | 2 | — | 2 | — | 1 | — | — | — | 41 | ||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | 1 | 2 | 2 | — | 2 | 31 | — | — | 5 | 66 | 106 | ||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | — | — | — | — | — | — | — | — | — | 25 | 25 | ||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 20 | 20 | ||||||||||||||||||||||||||||||||||||
Net loss on sales of assets | — | — | — | — | — | — | — | — | — | — | 12 | 12 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 99 | 14 | 113 | 55 | (10 | ) | 45 | 136 | (12 | ) | (1 | ) | 4 | (168 | ) | 117 | ||||||||||||||||||||||||||||||||
Interest expense, net | — | 1 | 1 | 25 | — | 25 | 1 | — | — | 5 | 91 | 123 | ||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 29 | 4 | 33 | 51 | — | — | (1 | ) | 67 | 150 | |||||||||||||||||||||||||||||||||||
Total assets at September 30, 2019 | 2,943 | 5,005 | 7,948 | 8,500 | 1,723 | 10,223 | 16,569 | 1,786 | 236 | 680 | 3,623 | 41,065 | ||||||||||||||||||||||||||||||||||||
Capital expenditures | 61 | 163 | 224 | 61 | 7 | 68 | 334 | 5 | 1 | 9 | 25 | 666 | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 30 | $ | 2 | $ | 32 | $ | 687 | $ | 122 | $ | 809 | $ | 1,703 | a | $ | — | $ | 1,212 | $ | 579 | $ | 573 | b | $ | 4,908 | ||||||||||||||||||||||
Intersegment | 467 | 587 | 1,054 | 71 | — | 71 | 61 | 101 | 8 | — | (1,295 | ) | — | |||||||||||||||||||||||||||||||||||
Production and delivery | 304 | 485 | 789 | 519 | 105 | 624 | 522 | 76 | 1,215 | 559 | (716 | ) | 3,069 | |||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 43 | 45 | 88 | 122 | 20 | 142 | 181 | 20 | 3 | 6 | 18 | 458 | ||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | — | 1 | 3 | — | 3 | 29 | — | — | 5 | 63 | 101 | ||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 1 | 1 | — | — | — | — | — | — | — | 26 | 27 | ||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | 2 | 2 | — | — | — | — | — | — | — | 6 | 8 | ||||||||||||||||||||||||||||||||||||
Net gain on sale of assets | — | — | — | — | — | — | — | — | — | — | (70 | ) | (70 | ) | ||||||||||||||||||||||||||||||||||
Operating income (loss) | 149 | 56 | 205 | 114 | (3 | ) | 111 | 1,032 | 5 | 2 | 9 | (49 | ) | 1,315 | ||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | — | 1 | 15 | — | 15 | — | — | — | 7 | 120 | 143 | ||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 37 | 5 | 42 | 424 | — | — | — | 56 | 522 | ||||||||||||||||||||||||||||||||||||
Total assets at September 30, 2018 | 2,826 | 4,465 | 7,291 | 8,613 | 1,709 | 10,322 | 11,764 | 1,808 | 284 | 835 | 5,445 | 37,749 | ||||||||||||||||||||||||||||||||||||
Capital expenditures | 63 | 118 | 181 | 47 | 3 | 50 | 246 | 4 | 1 | 3 | 22 | 507 |
a. | Includes PT-FI's sales to PT Smelting totaling $475 million in third-quarter 2019 and $827 million in third-quarter 2018. |
b. | Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. |
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America Mining | Copper | Other | |||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | Indonesia | Molybdenum | Rod & | Smelting | & Elimi- | FCX | ||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Mines | Total | Mining | Mines | Refining | & Refining | nations | Total | |||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 89 | $ | 183 | $ | 272 | $ | 1,793 | $ | 343 | $ | 2,136 | $ | 1,931 | a | $ | — | $ | 3,403 | $ | 1,554 | $ | 1,350 | b | $ | 10,646 | ||||||||||||||||||||||
Intersegment | 1,411 | 1,611 | 3,022 | 262 | — | 262 | 57 | 290 | 18 | 5 | (3,654 | ) | — | |||||||||||||||||||||||||||||||||||
Production and delivery | 1,020 | 1,443 | 2,463 | 1,311 | 337 | 1,648 | 1,509 | 234 | 3,415 | 1,488 | (2,173 | ) | 8,584 | |||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 128 | 133 | 261 | 294 | 48 | 342 | 281 | 50 | 7 | 21 | 59 | 1,021 | ||||||||||||||||||||||||||||||||||||
Metals inventory adjustments | 1 | 38 | 39 | 2 | — | 2 | — | 1 | — | — | 58 | 100 | ||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 2 | 4 | 6 | — | 6 | 91 | — | — | 15 | 199 | 315 | ||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 1 | 1 | — | — | — | — | — | — | — | 82 | 83 | ||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 85 | 85 | ||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | — | — | — | — | — | — | — | — | — | (13 | ) | (13 | ) | ||||||||||||||||||||||||||||||||||
Operating income (loss) | 349 | 177 | 526 | 442 | (42 | ) | 400 | 107 | 5 | (1 | ) | 35 | (601 | ) | 471 | |||||||||||||||||||||||||||||||||
Interest expense, net | 2 | 1 | 3 | 79 | — | 79 | 2 | — | — | 17 | 300 | 401 | ||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 159 | (10 | ) | 149 | 50 | — | — | 2 | 39 | 240 | |||||||||||||||||||||||||||||||||||
Capital expenditures | 172 | 469 | 641 | 160 | 16 | 176 | 992 | 11 | 3 | 18 | 76 | 1,917 | ||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 58 | $ | 30 | $ | 88 | $ | 2,031 | $ | 443 | $ | 2,474 | $ | 4,863 | a | $ | — | $ | 3,984 | $ | 1,758 | $ | 1,777 | b | $ | 14,944 | ||||||||||||||||||||||
Intersegment | 1,636 | 1,917 | 3,553 | 273 | — | 273 | 114 | 307 | 24 | 2 | (4,273 | ) | — | |||||||||||||||||||||||||||||||||||
Production and delivery | 892 | 1,475 | 2,367 | 1,391 | 354 | 1,745 | 1,404 | 214 | 3,992 | 1,694 | (2,626 | ) | 8,790 | |||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 133 | 141 | 274 | 336 | 66 | 402 | 534 | 60 | 8 | 20 | 53 | 1,351 | ||||||||||||||||||||||||||||||||||||
Metals inventory adjustments | — | 2 | 2 | — | — | — | — | — | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 3 | 2 | 5 | 7 | — | 7 | 96 | — | — | 16 | 217 | 341 | ||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 2 | 2 | — | — | — | — | — | — | — | 70 | 72 | ||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | 2 | 2 | — | — | — | — | — | — | — | 74 | 76 | ||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | — | — | — | — | — | — | — | — | — | (126 | ) | (126 | ) | ||||||||||||||||||||||||||||||||||
Operating income (loss) | 666 | 323 | 989 | 570 | 23 | 593 | 2,943 | 33 | 8 | 30 | (158 | ) | 4,438 | |||||||||||||||||||||||||||||||||||
Interest expense, net | 3 | — | 3 | 48 | — | 48 | — | — | — | 18 | 367 | 436 | ||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 207 | 15 | 222 | 1,254 | — | — | 1 | 66 | 1,543 | ||||||||||||||||||||||||||||||||||||
Capital expenditures | 151 | 262 | 413 | 178 | 10 | 188 | 695 | 6 | 3 | 10 | 76 | 1,391 |
a. | Includes PT-FI's sales to PT Smelting totaling $1.4 billion for the first nine months of 2019 and $2.1 billion for the first nine months of 2018. |
b. | Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. |
Freeport-McMoRan Inc. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 1,044 | $ | 1,044 | $ | 93 | $ | 20 | $ | 1,157 | |||||||||||
Site production and delivery, before net noncash and other costs shown below | 800 | 742 | 72 | 12 | 826 | ||||||||||||||||
By-product credits | (87 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 44 | 43 | — | 1 | 44 | ||||||||||||||||
Net cash costs | 757 | 785 | 72 | 13 | 870 | ||||||||||||||||
Depreciation, depletion and amortization (DD&A) | 90 | 83 | 6 | 1 | 90 | ||||||||||||||||
Metals inventory adjustments | 38 | 38 | — | — | 38 | ||||||||||||||||
Noncash and other costs, net | 31 | 27 | 3 | 1 | 31 | ||||||||||||||||
Total costs | 916 | 933 | 81 | 15 | 1,029 | ||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (11 | ) | (11 | ) | — | — | (11 | ) | |||||||||||||
Gross profit | $ | 117 | $ | 100 | $ | 12 | $ | 5 | $ | 117 | |||||||||||
Copper sales (millions of recoverable pounds) | 394 | 394 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 8 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.65 | $ | 2.65 | $ | 11.98 | |||||||||||||||
Site production and delivery, before net noncash and other costs shown below | 2.03 | 1.88 | 9.28 | ||||||||||||||||||
By-product credits | (0.22 | ) | — | — | |||||||||||||||||
Treatment charges | 0.11 | 0.11 | — | ||||||||||||||||||
Unit net cash costs | 1.92 | 1.99 | 9.28 | ||||||||||||||||||
DD&A | 0.22 | 0.22 | 0.76 | ||||||||||||||||||
Metals inventory adjustments | 0.10 | 0.10 | — | ||||||||||||||||||
Noncash and other costs, net | 0.08 | 0.06 | 0.45 | ||||||||||||||||||
Total unit costs | 2.32 | 2.37 | 10.49 | ||||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.03 | ) | (0.03 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.30 | $ | 0.25 | $ | 1.49 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
Metals | |||||||||||||||||||||
Production | Inventory | ||||||||||||||||||||
Revenues | and Delivery | DD&A | Adjustments | ||||||||||||||||||
Totals presented above | $ | 1,157 | $ | 826 | $ | 90 | $ | 38 | |||||||||||||
Treatment charges | (16 | ) | 28 | — | — | ||||||||||||||||
Noncash and other costs, net | — | 31 | — | — | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (11 | ) | — | — | — | ||||||||||||||||
Eliminations and other | 10 | 11 | 1 | — | |||||||||||||||||
North America copper mines | 1,140 | 896 | 91 | 38 | |||||||||||||||||
Other miningc | 2,968 | 2,544 | 211 | 3 | |||||||||||||||||
Corporate, other & eliminations | (800 | ) | (775 | ) | 20 | — | |||||||||||||||
As reported in FCX's consolidated financial statements | $ | 3,308 | $ | 2,665 | $ | 322 | $ | 41 | |||||||||||||
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 971 | $ | 971 | $ | 93 | $ | 24 | $ | 1,088 | |||||||||||
Site production and delivery, before net noncash and other costs shown below | 695 | 628 | 79 | 15 | 722 | ||||||||||||||||
By-product credits | (90 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 35 | 34 | — | 1 | 35 | ||||||||||||||||
Net cash costs | 640 | 662 | 79 | 16 | 757 | ||||||||||||||||
DD&A | 88 | 80 | 6 | 2 | 88 | ||||||||||||||||
Noncash and other costs, net | 26 | 23 | 2 | 1 | 26 | ||||||||||||||||
Total costs | 754 | 765 | 87 | 19 | 871 | ||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (7 | ) | (7 | ) | — | — | (7 | ) | |||||||||||||
Gross profit | $ | 210 | $ | 199 | $ | 6 | $ | 5 | $ | 210 | |||||||||||
Copper sales (millions of recoverable pounds) | 350 | 350 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 8 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.77 | $ | 2.77 | $ | 11.54 | |||||||||||||||
Site production and delivery, before net noncash and other costs shown below | 1.98 | 1.79 | 9.76 | ||||||||||||||||||
By-product credits | (0.26 | ) | — | — | |||||||||||||||||
Treatment charges | 0.10 | 0.10 | — | ||||||||||||||||||
Unit net cash costs | 1.82 | 1.89 | 9.76 | ||||||||||||||||||
DD&A | 0.25 | 0.23 | 0.80 | ||||||||||||||||||
Noncash and other costs, net | 0.08 | 0.06 | 0.29 | ||||||||||||||||||
Total unit costs | 2.15 | 2.18 | 10.85 | ||||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.02 | ) | (0.02 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.60 | $ | 0.57 | $ | 0.69 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
Production | |||||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||||
Totals presented above | $ | 1,088 | $ | 722 | $ | 88 | |||||||||||||||
Treatment charges | (6 | ) | 29 | — | |||||||||||||||||
Noncash and other costs, net | — | 26 | — | ||||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (7 | ) | — | — | |||||||||||||||||
Eliminations and other | 11 | 12 | — | ||||||||||||||||||
North America copper mines | 1,086 | 789 | 88 | ||||||||||||||||||
Other miningc | 4,544 | 2,996 | 352 | ||||||||||||||||||
Corporate, other & eliminations | (722 | ) | (716 | ) | 18 | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 4,908 | $ | 3,069 | $ | 458 | |||||||||||||||
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 2,964 | $ | 2,964 | $ | 284 | $ | 63 | $ | 3,311 | |||||||||||
Site production and delivery, before net noncash and other costs shown below | 2,216 | 2,030 | 226 | 39 | 2,295 | ||||||||||||||||
By-product credits | (268 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 120 | 116 | — | 4 | 120 | ||||||||||||||||
Net cash costs | 2,068 | 2,146 | 226 | 43 | 2,415 | ||||||||||||||||
DD&A | 260 | 237 | 18 | 5 | 260 | ||||||||||||||||
Metals inventory adjustments | 39 | 39 | — | — | 39 | ||||||||||||||||
Noncash and other costs, net | 64 | 55 | 7 | 2 | 64 | ||||||||||||||||
Total costs | 2,431 | 2,477 | 251 | 50 | 2,778 | ||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 4 | 4 | — | — | 4 | ||||||||||||||||
Gross profit | $ | 537 | $ | 491 | $ | 33 | $ | 13 | $ | 537 | |||||||||||
Copper sales (millions of recoverable pounds) | 1,084 | 1,084 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 24 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.74 | $ | 2.74 | $ | 12.03 | |||||||||||||||
Site production and delivery, before net noncash and other costs shown below | 2.05 | 1.87 | 9.56 | ||||||||||||||||||
By-product credits | (0.25 | ) | — | — | |||||||||||||||||
Treatment charges | 0.11 | 0.11 | — | ||||||||||||||||||
Unit net cash costs | 1.91 | 1.98 | 9.56 | ||||||||||||||||||
DD&A | 0.24 | 0.22 | 0.75 | ||||||||||||||||||
Metals inventory adjustments | 0.04 | 0.04 | — | ||||||||||||||||||
Noncash and other costs, net | 0.05 | 0.05 | 0.29 | ||||||||||||||||||
Total unit costs | 2.24 | 2.29 | 10.60 | ||||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | — | — | — | ||||||||||||||||||
Gross profit per pound | $ | 0.50 | $ | 0.45 | $ | 1.43 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
Metals | |||||||||||||||||||||
Production | Inventory | ||||||||||||||||||||
Revenues | and Delivery | DD&A | Adjustments | ||||||||||||||||||
Totals presented above | $ | 3,311 | $ | 2,295 | $ | 260 | $ | 39 | |||||||||||||
Treatment charges | (48 | ) | 72 | — | — | ||||||||||||||||
Noncash and other costs, net | — | 64 | — | — | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 4 | — | — | — | |||||||||||||||||
Eliminations and other | 27 | 32 | 1 | — | |||||||||||||||||
North America copper mines | 3,294 | 2,463 | 261 | 39 | |||||||||||||||||
Other miningc | 9,656 | 8,294 | 701 | 3 | |||||||||||||||||
Corporate, other & eliminations | (2,304 | ) | (2,173 | ) | 59 | 58 | |||||||||||||||
As reported in FCX's consolidated financial statements | $ | 10,646 | $ | 8,584 | $ | 1,021 | $ | 100 | |||||||||||||
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 3,301 | $ | 3,301 | $ | 260 | $ | 69 | $ | 3,630 | |||||||||||
Site production and delivery, before net noncash and other costs shown below | 2,100 | 1,933 | 202 | 39 | 2,174 | ||||||||||||||||
By-product credits | (255 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 109 | 105 | — | 4 | 109 | ||||||||||||||||
Net cash costs | 1,954 | 2,038 | 202 | 43 | 2,283 | ||||||||||||||||
DD&A | 273 | 250 | 17 | 6 | 273 | ||||||||||||||||
Metals inventory adjustments | 2 | 2 | — | — | 2 | ||||||||||||||||
Noncash and other costs, net | 66 | 61 | 4 | 1 | 66 | ||||||||||||||||
Total costs | 2,295 | 2,351 | 223 | 50 | 2,624 | ||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (5 | ) | (5 | ) | — | — | (5 | ) | |||||||||||||
Gross profit | $ | 1,001 | $ | 945 | $ | 37 | $ | 19 | $ | 1,001 | |||||||||||
Copper sales (millions of recoverable pounds) | 1,094 | 1,094 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 23 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 3.02 | $ | 3.02 | $ | 11.53 | |||||||||||||||
Site production and delivery, before net noncash and other costs shown below | 1.92 | 1.76 | 8.93 | ||||||||||||||||||
By-product credits | (0.23 | ) | — | — | |||||||||||||||||
Treatment charges | 0.10 | 0.10 | — | ||||||||||||||||||
Unit net cash costs | 1.79 | 1.86 | 8.93 | ||||||||||||||||||
DD&A | 0.25 | 0.23 | 0.76 | ||||||||||||||||||
Metals inventory adjustments | — | — | — | ||||||||||||||||||
Noncash and other costs, net | 0.06 | 0.06 | 0.18 | ||||||||||||||||||
Total unit costs | 2.10 | 2.15 | 9.87 | ||||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.01 | ) | (0.01 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.91 | $ | 0.86 | $ | 1.66 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
Metals | |||||||||||||||||||||
Production | Inventory | ||||||||||||||||||||
Revenues | and Delivery | DD&A | Adjustments | ||||||||||||||||||
Totals presented above | $ | 3,630 | $ | 2,174 | $ | 273 | $ | 2 | |||||||||||||
Treatment charges | (19 | ) | 90 | — | — | ||||||||||||||||
Noncash and other costs, net | — | 66 | — | — | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (5 | ) | — | — | — | ||||||||||||||||
Eliminations and other | 35 | 37 | 1 | — | |||||||||||||||||
North America copper mines | 3,641 | 2,367 | 274 | 2 | |||||||||||||||||
Other miningc | 13,799 | 9,049 | 1,024 | — | |||||||||||||||||
Corporate, other & eliminations | (2,496 | ) | (2,626 | ) | 53 | — | |||||||||||||||
As reported in FCX's consolidated financial statements | $ | 14,944 | $ | 8,790 | $ | 1,351 | $ | 2 | |||||||||||||
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | ||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||
(In millions) | By-Product | Co-Product Method | ||||||||||||||
Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 681 | $ | 681 | $ | 80 | $ | 761 | ||||||||
Site production and delivery, before net noncash and other costs shown below | 494 | 446 | 61 | 507 | ||||||||||||
By-product credits | (67 | ) | — | — | — | |||||||||||
Treatment charges | 45 | 45 | — | 45 | ||||||||||||
Royalty on metals | 1 | 1 | — | 1 | ||||||||||||
Net cash costs | 473 | 492 | 61 | 553 | ||||||||||||
DD&A | 109 | 98 | 11 | 109 | ||||||||||||
Metals inventory adjustments | 2 | 2 | — | 2 | ||||||||||||
Noncash and other costs, net | 22 | 20 | 2 | 22 | ||||||||||||
Total costs | 606 | 612 | 74 | 686 | ||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (29 | ) | (29 | ) | — | (29 | ) | |||||||||
Gross profit | $ | 46 | $ | 40 | $ | 6 | $ | 46 | ||||||||
Copper sales (millions of recoverable pounds) | 261 | 261 | ||||||||||||||
Gross profit per pound of copper: | ||||||||||||||||
Revenues, excluding adjustments | $ | 2.61 | $ | 2.61 | ||||||||||||
Site production and delivery, before net noncash and other costs shown below | 1.89 | 1.71 | ||||||||||||||
By-product credits | (0.26 | ) | — | |||||||||||||
Treatment charges | 0.17 | 0.17 | ||||||||||||||
Royalty on metals | 0.01 | — | ||||||||||||||
Unit net cash costs | 1.81 | 1.88 | ||||||||||||||
DD&A | 0.42 | 0.38 | ||||||||||||||
Metals inventory adjustments | 0.01 | 0.01 | ||||||||||||||
Noncash and other costs, net | 0.08 | 0.08 | ||||||||||||||
Total unit costs | 2.32 | 2.35 | ||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.11 | ) | (0.11 | ) | ||||||||||||
Gross profit per pound | $ | 0.18 | $ | 0.15 | ||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||
Metals | ||||||||||||||||
Production | Inventory | |||||||||||||||
Revenues | and Delivery | DD&A | Adjustments | |||||||||||||
Totals presented above | $ | 761 | $ | 507 | $ | 109 | $ | 2 | ||||||||
Treatment charges | (45 | ) | — | — | — | |||||||||||
Royalty on metals | (1 | ) | — | — | — | |||||||||||
Noncash and other costs, net | — | 22 | — | — | ||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (29 | ) | — | — | — | |||||||||||
Eliminations and other | — | (1 | ) | — | — | |||||||||||
South America mining | 686 | 528 | 109 | 2 | ||||||||||||
Other miningb | 3,422 | 2,912 | 193 | 39 | ||||||||||||
Corporate, other & eliminations | (800 | ) | (775 | ) | 20 | — | ||||||||||
As reported in FCX's consolidated financial statements | $ | 3,308 | $ | 2,665 | $ | 322 | $ | 41 | ||||||||
a. | Includes silver sales of 0.9 million ounces ($16.78 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Othera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 911 | $ | 911 | $ | 88 | $ | 999 | |||||||||
Site production and delivery, before net noncash and other costs shown below | 599 | b | 549 | 62 | 611 | ||||||||||||
By-product credits | (76 | ) | — | — | — | ||||||||||||
Treatment charges | 65 | 65 | — | 65 | |||||||||||||
Royalty on metals | 2 | 2 | — | 2 | |||||||||||||
Net cash costs | 590 | 616 | 62 | 678 | |||||||||||||
DD&A | 142 | 130 | 12 | 142 | |||||||||||||
Noncash and other costs, net | 14 | 14 | — | 14 | |||||||||||||
Total costs | 746 | 760 | 74 | 834 | |||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (52 | ) | (52 | ) | — | (52 | ) | ||||||||||
Gross profit | $ | 113 | $ | 99 | $ | 14 | $ | 113 | |||||||||
Copper sales (millions of recoverable pounds) | 326 | 326 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.80 | $ | 2.80 | |||||||||||||
Site production and delivery, before net noncash and other costs shown below | 1.84 | b | 1.70 | ||||||||||||||
By-product credits | (0.23 | ) | — | ||||||||||||||
Treatment charges | 0.20 | 0.20 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.81 | 1.90 | |||||||||||||||
DD&A | 0.44 | 0.40 | |||||||||||||||
Noncash and other costs, net | 0.04 | 0.04 | |||||||||||||||
Total unit costs | 2.29 | 2.34 | |||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.16 | ) | (0.16 | ) | |||||||||||||
Gross profit per pound | $ | 0.35 | $ | 0.30 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||
Production | |||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
Totals presented above | $ | 999 | $ | 611 | $ | 142 | |||||||||||
Treatment charges | (65 | ) | — | — | |||||||||||||
Royalty on metals | (2 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 14 | — | ||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (52 | ) | — | — | |||||||||||||
Eliminations and other | — | (1 | ) | — | |||||||||||||
South America mining | 880 | 624 | 142 | ||||||||||||||
Other miningc | 4,750 | 3,161 | 298 | ||||||||||||||
Corporate, other & eliminations | (722 | ) | (716 | ) | 18 | ||||||||||||
As reported in FCX's consolidated financial statements | $ | 4,908 | $ | 3,069 | $ | 458 | |||||||||||
a. | Includes silver sales of 1.2 million ounces ($14.74 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Includes nonrecurring charges for Cerro Verde's new three-year CLA totaling $69 million ($0.21 per pound of copper). |
c. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Othera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 2,236 | $ | 2,236 | $ | 284 | $ | 2,520 | |||||||||
Site production and delivery, before net noncash and other costs shown below | 1,546 | 1,395 | 189 | 1,584 | |||||||||||||
By-product credits | (246 | ) | — | — | — | ||||||||||||
Treatment charges | 153 | 153 | — | 153 | |||||||||||||
Royalty on metals | 5 | 4 | 1 | 5 | |||||||||||||
Net cash costs | 1,458 | 1,552 | 190 | 1,742 | |||||||||||||
DD&A | 342 | 305 | 37 | 342 | |||||||||||||
Metals inventory adjustments | 2 | 2 | — | 2 | |||||||||||||
Noncash and other costs, net | 68 | 65 | 3 | 68 | |||||||||||||
Total costs | 1,870 | 1,924 | 230 | 2,154 | |||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 37 | 37 | — | 37 | |||||||||||||
Gross profit | $ | 403 | $ | 349 | $ | 54 | $ | 403 | |||||||||
Copper sales (millions of recoverable pounds) | 838 | 838 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.67 | $ | 2.67 | |||||||||||||
Site production and delivery, before net noncash and other costs shown below | 1.84 | 1.66 | |||||||||||||||
By-product credits | (0.29 | ) | — | ||||||||||||||
Treatment charges | 0.18 | 0.18 | |||||||||||||||
Royalty on metals | 0.01 | 0.01 | |||||||||||||||
Unit net cash costs | 1.74 | 1.85 | |||||||||||||||
DD&A | 0.41 | 0.36 | |||||||||||||||
Metals inventory adjustments | — | — | |||||||||||||||
Noncash and other costs, net | 0.08 | 0.08 | |||||||||||||||
Total unit costs | 2.23 | 2.29 | |||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 0.04 | 0.04 | |||||||||||||||
Gross profit per pound | $ | 0.48 | $ | 0.42 | |||||||||||||
Reconciliation to Amounts Reported | Metals | ||||||||||||||||
Production | Inventory | ||||||||||||||||
Revenues | and Delivery | DD&A | Adjustments | ||||||||||||||
Totals presented above | $ | 2,520 | $ | 1,584 | $ | 342 | $ | 2 | |||||||||
Treatment charges | (153 | ) | — | — | — | ||||||||||||
Royalty on metals | (5 | ) | — | — | — | ||||||||||||
Noncash and other costs, net | — | 68 | — | — | |||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 37 | — | — | — | |||||||||||||
Eliminations and other | (1 | ) | (4 | ) | — | — | |||||||||||
South America mining | 2,398 | 1,648 | 342 | 2 | |||||||||||||
Other miningb | — | 10,552 | 9,109 | 620 | 40 | ||||||||||||
Corporate, other & eliminations | — | (2,304 | ) | (2,173 | ) | 59 | 58 | ||||||||||
As reported in FCX's consolidated financial statements | $ | 10,646 | $ | 8,584 | $ | 1,021 | $ | 100 | |||||||||
a. | Includes silver sales of 3.4 million ounces ($15.90 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||
Method | Copper | Othera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 2,718 | $ | 2,718 | $ | 255 | $ | 2,973 | |||||||||
Site production and delivery, before net noncash and other costs shown below | 1,668 | b | 1,540 | 163 | 1,703 | ||||||||||||
By-product credits | (220 | ) | — | — | — | ||||||||||||
Treatment charges | 182 | 182 | — | 182 | |||||||||||||
Royalty on metals | 6 | 5 | 1 | 6 | |||||||||||||
Net cash costs | 1,636 | 1,727 | 164 | 1,891 | |||||||||||||
DD&A | 402 | 368 | 34 | 402 | |||||||||||||
Noncash and other costs, net | 46 | 46 | — | 46 | |||||||||||||
Total costs | 2,084 | 2,141 | 198 | 2,339 | |||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (37 | ) | (37 | ) | — | (37 | ) | ||||||||||
Gross profit | $ | 597 | $ | 540 | $ | 57 | $ | 597 | |||||||||
Copper sales (millions of recoverable pounds) | 928 | 928 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.93 | $ | 2.93 | |||||||||||||
Site production and delivery, before net noncash and other costs shown below | 1.80 | b | 1.66 | ||||||||||||||
By-product credits | (0.24 | ) | — | ||||||||||||||
Treatment charges | 0.20 | 0.20 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.76 | 1.86 | |||||||||||||||
DD&A | 0.44 | 0.40 | |||||||||||||||
Noncash and other costs, net | 0.05 | 0.05 | |||||||||||||||
Total unit costs | 2.25 | 2.31 | |||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.04 | ) | (0.04 | ) | |||||||||||||
Gross profit per pound | $ | 0.64 | $ | 0.58 | |||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||
Production | |||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||
Totals presented above | $ | 2,973 | $ | 1,703 | $ | 402 | |||||||||||
Treatment charges | (182 | ) | — | — | |||||||||||||
Royalty on metals | (6 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 46 | — | ||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (37 | ) | — | — | |||||||||||||
Eliminations and other | (1 | ) | (4 | ) | — | ||||||||||||
South America mining | 2,747 | 1,745 | 402 | ||||||||||||||
Other miningc | 14,693 | 9,671 | 896 | ||||||||||||||
Corporate, other & eliminations | (2,496 | ) | (2,626 | ) | 53 | ||||||||||||
As reported in FCX's consolidated financial statements | $ | 14,944 | $ | 8,790 | $ | 1,351 | |||||||||||
a. | Includes silver sales of 3.2 million ounces ($15.84 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Includes nonrecurring charges for Cerro Verde's new three-year CLA totaling $69 million ($0.07 per pound of copper). |
c. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | ||||||||||||||||||
Method | Copper | Gold | Silvera | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 360 | $ | 360 | $ | 356 | $ | 8 | $ | 724 | ||||||||||
Site production and delivery, before net noncash and other costs shown below | 338 | 168 | 166 | 4 | 338 | |||||||||||||||
Gold and silver credits | (367 | ) | — | — | — | — | ||||||||||||||
Treatment charges | 35 | 17 | 17 | 1 | 35 | |||||||||||||||
Export duties | 8 | 4 | 4 | — | 8 | |||||||||||||||
Royalty on metals | 23 | 12 | 11 | — | 23 | |||||||||||||||
Net cash costs | 37 | 201 | 198 | 5 | 404 | |||||||||||||||
DD&A | 77 | 38 | 38 | 1 | 77 | |||||||||||||||
Noncash and other costs, net | 37 | 19 | 18 | — | 37 | |||||||||||||||
Total costs | 151 | 258 | 254 | 6 | 518 | |||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (8 | ) | (8 | ) | 2 | 1 | (5 | ) | ||||||||||||
PT Smelting intercompany loss | (34 | ) | (17 | ) | (17 | ) | — | (34 | ) | |||||||||||
Gross profit | $ | 167 | $ | 77 | $ | 87 | $ | 3 | $ | 167 | ||||||||||
Copper sales (millions of recoverable pounds) | 139 | 139 | ||||||||||||||||||
Gold sales (thousands of recoverable ounces) | 239 | |||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | ||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.59 | $ | 2.59 | $ | 1,487 | ||||||||||||||
Site production and delivery, before net noncash and other costs shown below | 2.44 | 1.21 | 695 | |||||||||||||||||
Gold and silver credits | (2.64 | ) | — | — | ||||||||||||||||
Treatment charges | 0.25 | 0.13 | 72 | |||||||||||||||||
Export duties | 0.05 | 0.03 | 15 | |||||||||||||||||
Royalty on metals | 0.17 | 0.08 | 46 | |||||||||||||||||
Unit net cash costs | 0.27 | 1.45 | 828 | |||||||||||||||||
DD&A | 0.55 | 0.27 | 158 | |||||||||||||||||
Noncash and other costs, net | 0.27 | 0.14 | 77 | |||||||||||||||||
Total unit costs | 1.09 | 1.86 | 1,063 | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.06 | ) | (0.05 | ) | 8 | |||||||||||||||
PT Smelting intercompany loss | (0.24 | ) | (0.12 | ) | (69 | ) | ||||||||||||||
Gross profit per pound/ounce | $ | 1.20 | $ | 0.56 | $ | 363 | ||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
Production | ||||||||||||||||||||
Revenues | and Delivery | DD&A | ||||||||||||||||||
Totals presented above | $ | 724 | $ | 338 | $ | 77 | ||||||||||||||
Treatment charges | (35 | ) | — | — | ||||||||||||||||
Export duties | (8 | ) | — | — | ||||||||||||||||
Royalty on metals | (23 | ) | — | — | ||||||||||||||||
Noncash and other costs, net | (10 | ) | 27 | — | ||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (5 | ) | — | — | ||||||||||||||||
PT Smelting intercompany loss | — | 34 | — | |||||||||||||||||
Indonesia mining | 643 | 399 | 77 | |||||||||||||||||
Other miningb | 3,465 | 3,041 | 225 | |||||||||||||||||
Corporate, other & eliminations | (800 | ) | (775 | ) | 20 | |||||||||||||||
As reported in FCX's consolidated financial statements | $ | 3,308 | $ | 2,665 | $ | 322 | ||||||||||||||
a. | Includes silver sales of 0.5 million ounces ($17.30 per ounce average realized price). |
b. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash (Credits) Costs | |||||||||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Gold | Silvera | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 1,036 | $ | 1,036 | $ | 989 | $ | 17 | $ | 2,042 | |||||||||||
Site production and delivery, before net noncash and other credits shown below | 514 | 261 | 249 | 4 | 514 | ||||||||||||||||
Gold and silver credits | (1,001 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 98 | 50 | 48 | — | 98 | ||||||||||||||||
Export duties | 52 | 26 | 25 | 1 | 52 | ||||||||||||||||
Royalty on metals | 73 | 35 | 37 | 1 | 73 | ||||||||||||||||
Net cash (credits) costs | (264 | ) | 372 | 359 | 6 | 737 | |||||||||||||||
DD&A | 181 | 92 | 87 | 2 | 181 | ||||||||||||||||
Noncash and other credits, net | 14 | 7 | 7 | — | 14 | ||||||||||||||||
Total (credits) costs | (69 | ) | 471 | 453 | 8 | 932 | |||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (50 | ) | (50 | ) | (5 | ) | — | (55 | ) | ||||||||||||
PT Smelting intercompany profit | 6 | 3 | 3 | — | 6 | ||||||||||||||||
Gross profit | $ | 1,061 | $ | 518 | $ | 534 | $ | 9 | $ | 1,061 | |||||||||||
Copper sales (millions of recoverable pounds) | 368 | 368 | |||||||||||||||||||
Gold sales (thousands of recoverable ounces) | 831 | ||||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.81 | $ | 2.81 | $ | 1,191 | |||||||||||||||
Site production and delivery, before net noncash and other credits shown below | 1.40 | 0.71 | 300 | ||||||||||||||||||
Gold and silver credits | (2.72 | ) | — | — | |||||||||||||||||
Treatment charges | 0.26 | 0.13 | 57 | ||||||||||||||||||
Export duties | 0.14 | 0.07 | 30 | ||||||||||||||||||
Royalty on metals | 0.20 | 0.10 | 45 | ||||||||||||||||||
Unit net cash (credits) costs | (0.72 | ) | 1.01 | 432 | |||||||||||||||||
DD&A | 0.49 | 0.25 | 105 | ||||||||||||||||||
Noncash and other credits, net | 0.04 | 0.02 | 8 | ||||||||||||||||||
Total unit (credits) costs | (0.19 | ) | 1.28 | 545 | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.14 | ) | (0.14 | ) | (7 | ) | |||||||||||||||
PT Smelting intercompany profit | 0.02 | 0.02 | 3 | ||||||||||||||||||
Gross profit per pound/ounce | $ | 2.88 | $ | 1.41 | $ | 642 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
Production | |||||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||||
Totals presented above | $ | 2,042 | $ | 514 | $ | 181 | |||||||||||||||
Treatment charges | (98 | ) | — | — | |||||||||||||||||
Export duties | (52 | ) | — | — | |||||||||||||||||
Royalty on metals | (73 | ) | — | — | |||||||||||||||||
Noncash and other credits, net | — | 14 | — | ||||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (55 | ) | — | — | |||||||||||||||||
PT Smelting intercompany profit | — | (6 | ) | — | |||||||||||||||||
Indonesia mining | 1,764 | 522 | 181 | ||||||||||||||||||
Other miningb | 3,866 | 3,263 | 259 | ||||||||||||||||||
Corporate, other & eliminations | (722 | ) | (716 | ) | 18 | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 4,908 | $ | 3,069 | $ | 458 | |||||||||||||||
a. | Includes silver sales of 1.2 million ounces ($14.10 per ounce average realized price). |
b. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | ||||||||||||||||||
Method | Copper | Gold | Silvera | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 1,252 | $ | 1,252 | $ | 910 | $ | 26 | $ | 2,188 | ||||||||||
Site production and delivery, before net noncash and other costs shown below | 1,393 | 797 | 580 | 16 | 1,393 | |||||||||||||||
Gold and silver credits | (938 | ) | — | — | — | — | ||||||||||||||
Treatment charges | 125 | 72 | 52 | 1 | 125 | |||||||||||||||
Export duties | 35 | 20 | 14 | 1 | 35 | |||||||||||||||
Royalty on metals | 68 | 40 | 27 | 1 | 68 | |||||||||||||||
Net cash costs | 683 | 929 | 673 | 19 | 1,621 | |||||||||||||||
DD&A | 281 | 161 | 117 | 3 | 281 | |||||||||||||||
Noncash and other costs, net | 85 | b | 49 | 35 | 1 | 85 | ||||||||||||||
Total costs | 1,049 | 1,139 | 825 | 23 | 1,987 | |||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 18 | 18 | 2 | — | 20 | |||||||||||||||
PT Smelting intercompany loss | (23 | ) | (13 | ) | (9 | ) | (1 | ) | (23 | ) | ||||||||||
Gross profit | $ | 198 | $ | 118 | $ | 78 | $ | 2 | $ | 198 | ||||||||||
Copper sales (millions of recoverable pounds) | 464 | 464 | ||||||||||||||||||
Gold sales (thousands of recoverable ounces) | 659 | |||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | ||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.70 | $ | 2.70 | $ | 1,380 | ||||||||||||||
Site production and delivery, before net noncash and other costs shown below | 3.00 | 1.72 | 879 | |||||||||||||||||
Gold and silver credits | (2.02 | ) | — | — | ||||||||||||||||
Treatment charges | 0.27 | 0.15 | 79 | |||||||||||||||||
Export duties | 0.07 | 0.04 | 22 | |||||||||||||||||
Royalty on metals | 0.15 | 0.09 | 41 | |||||||||||||||||
Unit net cash costs | 1.47 | 2.00 | 1,021 | |||||||||||||||||
DD&A | 0.61 | 0.35 | 177 | |||||||||||||||||
Noncash and other costs, net | 0.18 | b | 0.11 | 54 | ||||||||||||||||
Total unit costs | 2.26 | 2.46 | 1,252 | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 0.04 | 0.04 | 3 | |||||||||||||||||
PT Smelting intercompany loss | (0.05 | ) | (0.03 | ) | (14 | ) | ||||||||||||||
Gross profit per pound/ounce | $ | 0.43 | $ | 0.25 | $ | 117 | ||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
Production | ||||||||||||||||||||
Revenues | and Delivery | DD&A | ||||||||||||||||||
Totals presented above | $ | 2,188 | $ | 1,393 | $ | 281 | ||||||||||||||
Treatment charges | (125 | ) | — | — | ||||||||||||||||
Export duties | (35 | ) | — | — | ||||||||||||||||
Royalty on metals | (68 | ) | — | — | ||||||||||||||||
Noncash and other costs, net | 8 | 93 | — | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | 20 | — | — | |||||||||||||||||
PT Smelting intercompany loss | — | 23 | — | |||||||||||||||||
Indonesia mining | 1,988 | 1,509 | 281 | |||||||||||||||||
Other miningc | 10,962 | 9,248 | 681 | |||||||||||||||||
Corporate, other & eliminations | (2,304 | ) | (2,173 | ) | 59 | |||||||||||||||
As reported in FCX's consolidated financial statements | $ | 10,646 | $ | 8,584 | $ | 1,021 | ||||||||||||||
a. | Includes silver sales of 1.6 million ounces ($15.58 per ounce average realized price). |
b. | Includes charges of $28 million ($0.06 per pound of copper) associated with adjustments to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia. |
c. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash (Credits) Costs | |||||||||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||
(In millions) | By-Product | Co-Product Method | |||||||||||||||||||
Method | Copper | Gold | Silvera | Total | |||||||||||||||||
Revenues, excluding adjustments | $ | 2,935 | $ | 2,935 | $ | 2,628 | $ | 53 | $ | 5,616 | |||||||||||
Site production and delivery, before net noncash and other costs shown below | 1,367 | 715 | 640 | 12 | 1,367 | ||||||||||||||||
Gold and silver credits | (2,698 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 258 | 135 | 121 | 2 | 258 | ||||||||||||||||
Export duties | 153 | 80 | 71 | 2 | 153 | ||||||||||||||||
Royalty on metals | 211 | 108 | 101 | 2 | 211 | ||||||||||||||||
Net cash (credits) costs | (709 | ) | 1,038 | 933 | 18 | 1,989 | |||||||||||||||
DD&A | 534 | 279 | 250 | 5 | 534 | ||||||||||||||||
Noncash and other costs, net | 25 | 13 | 12 | — | 25 | ||||||||||||||||
Total (credits) costs | (150 | ) | 1,330 | 1,195 | 23 | 2,548 | |||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (34 | ) | (34 | ) | 17 | — | (17 | ) | |||||||||||||
PT Smelting intercompany loss | (12 | ) | (6 | ) | (6 | ) | — | (12 | ) | ||||||||||||
Gross profit | $ | 3,039 | $ | 1,565 | $ | 1,444 | $ | 30 | $ | 3,039 | |||||||||||
Copper sales (millions of recoverable pounds) | 1,003 | 1,003 | |||||||||||||||||||
Gold sales (thousands of recoverable ounces) | 2,105 | ||||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.93 | $ | 2.93 | $ | 1,248 | |||||||||||||||
Site production and delivery, before net noncash and other costs shown below | 1.36 | 0.71 | 304 | ||||||||||||||||||
Gold and silver credits | (2.69 | ) | — | — | |||||||||||||||||
Treatment charges | 0.26 | 0.13 | 57 | ||||||||||||||||||
Export duties | 0.15 | 0.08 | 34 | ||||||||||||||||||
Royalty on metals | 0.21 | 0.11 | 48 | ||||||||||||||||||
Unit net cash (credits) costs | (0.71 | ) | 1.03 | 443 | |||||||||||||||||
DD&A | 0.53 | 0.28 | 119 | ||||||||||||||||||
Noncash and other costs, net | 0.03 | 0.01 | 6 | ||||||||||||||||||
Total unit (credits) costs | (0.15 | ) | 1.32 | 568 | |||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (0.04 | ) | (0.04 | ) | 8 | ||||||||||||||||
PT Smelting intercompany loss | (0.01 | ) | (0.01 | ) | (2 | ) | |||||||||||||||
Gross profit per pound/ounce | $ | 3.03 | $ | 1.56 | $ | 686 | |||||||||||||||
Reconciliation to Amounts Reported | |||||||||||||||||||||
Production | |||||||||||||||||||||
Revenues | and Delivery | DD&A | |||||||||||||||||||
Totals presented above | $ | 5,616 | $ | 1,367 | $ | 534 | |||||||||||||||
Treatment charges | (258 | ) | — | — | |||||||||||||||||
Export duties | (153 | ) | — | — | |||||||||||||||||
Royalty on metals | (211 | ) | — | — | |||||||||||||||||
Noncash and other costs, net | — | 25 | — | ||||||||||||||||||
Other revenue adjustments, primarily for pricing on prior period open sales | (17 | ) | — | — | |||||||||||||||||
PT Smelting intercompany loss | — | 12 | — | ||||||||||||||||||
Indonesia mining | 4,977 | 1,404 | 534 | ||||||||||||||||||
Other miningb | 12,463 | 10,012 | 764 | ||||||||||||||||||
Corporate, other & eliminations | (2,496 | ) | (2,626 | ) | 53 | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 14,944 | $ | 8,790 | $ | 1,351 | |||||||||||||||
a. | Includes silver sales of 3.5 million ounces ($15.25 per ounce average realized price). |
b. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. |
Freeport-McMoRan Inc. | ||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
(In millions) | 2019 | 2018 | ||||||||||||||
Revenues, excluding adjustmentsa | $ | 96 | $ | 109 | ||||||||||||
Site production and delivery, before net noncash and other costs shown below | 83 | 73 | ||||||||||||||
Treatment charges and other | 6 | 8 | ||||||||||||||
Net cash costs | 89 | 81 | ||||||||||||||
DD&A | 16 | 20 | ||||||||||||||
Metals inventory adjustments | 1 | — | ||||||||||||||
Noncash and other costs, net | 2 | 3 | ||||||||||||||
Total costs | 108 | 104 | ||||||||||||||
Gross (loss) profit | $ | (12 | ) | $ | 5 | |||||||||||
Molybdenum sales (millions of recoverable pounds)a | 7 | 8 | ||||||||||||||
Gross (loss) profit per pound of molybdenum: | ||||||||||||||||
Revenues, excluding adjustmentsa | $ | 12.57 | $ | 12.17 | ||||||||||||
Site production and delivery, before net noncash and other costs shown below | 10.79 | 8.17 | ||||||||||||||
Treatment charges and other | 0.85 | 0.85 | ||||||||||||||
Unit net cash costs | 11.64 | 9.02 | ||||||||||||||
DD&A | 2.06 | 2.18 | ||||||||||||||
Metals inventory adjustments | 0.17 | — | ||||||||||||||
Noncash and other costs, net | 0.26 | 0.39 | ||||||||||||||
Total unit costs | 14.13 | 11.59 | ||||||||||||||
Gross (loss) profit per pound | $ | (1.56 | ) | $ | 0.58 | |||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||
Metals | ||||||||||||||||
Production | Inventory | |||||||||||||||
Three Months Ended September 30, 2019 | Revenues | and Delivery | DD&A | Adjustments | ||||||||||||
Totals presented above | $ | 96 | $ | 83 | $ | 16 | $ | 1 | ||||||||
Treatment charges and other | (6 | ) | — | — | — | |||||||||||
Noncash and other costs, net | — | 2 | — | — | ||||||||||||
Molybdenum mines | 90 | 85 | 16 | 1 | ||||||||||||
Other miningb | 4,018 | 3,355 | 286 | 40 | ||||||||||||
Corporate, other & eliminations | (800 | ) | (775 | ) | 20 | — | ||||||||||
As reported in FCX's consolidated financial statements | $ | 3,308 | $ | 2,665 | $ | 322 | $ | 41 | ||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||
Totals presented above | $ | 109 | $ | 73 | $ | 20 | $ | — | ||||||||
Treatment charges and other | (8 | ) | — | — | — | |||||||||||
Noncash and other costs, net | — | 3 | — | — | ||||||||||||
Molybdenum mines | 101 | 76 | 20 | — | ||||||||||||
Other miningb | 5,529 | 3,709 | 420 | — | ||||||||||||
Corporate, other & eliminations | (722 | ) | (716 | ) | 18 | — | ||||||||||
As reported in FCX's consolidated financial statements | $ | 4,908 | $ | 3,069 | $ | 458 | $ | — | ||||||||
a. | Reflects sales of the Molybdenum mines' production to FCX's molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. Also includes amounts associated with FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. |
Freeport-McMoRan Inc. | ||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
(In millions) | 2019 | 2018 | ||||||||||||||
Revenues, excluding adjustmentsa | $ | 311 | $ | 330 | ||||||||||||
Site production and delivery, before net noncash and other costs shown below | 229 | 209 | ||||||||||||||
Treatment charges and other | 21 | 23 | ||||||||||||||
Net cash costs | 250 | 232 | ||||||||||||||
DD&A | 50 | 60 | ||||||||||||||
Metals inventory adjustments | 1 | — | ||||||||||||||
Noncash and other costs, net | 5 | 5 | ||||||||||||||
Total costs | 306 | 297 | ||||||||||||||
Gross profit | $ | 5 | $ | 33 | ||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 24 | 26 | ||||||||||||||
Gross profit per pound of molybdenum: | ||||||||||||||||
Revenues, excluding adjustmentsa | $ | 12.61 | $ | 12.31 | ||||||||||||
Site production and delivery, before net noncash and other costs shown below | 9.28 | 7.79 | ||||||||||||||
Treatment charges and other | 0.85 | 0.85 | ||||||||||||||
Unit net cash costs | 10.13 | 8.64 | ||||||||||||||
DD&A | 2.05 | 2.22 | ||||||||||||||
Metals inventory adjustments | 0.05 | — | ||||||||||||||
Noncash and other costs, net | 0.19 | 0.20 | ||||||||||||||
Total unit costs | 12.42 | 11.06 | ||||||||||||||
Gross profit per pound | $ | 0.19 | $ | 1.25 | ||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||
Metals | ||||||||||||||||
Production | Inventory | |||||||||||||||
Nine Months Ended September 30, 2019 | Revenues | and Delivery | DD&A | Adjustments | ||||||||||||
Totals presented above | $ | 311 | $ | 229 | $ | 50 | $ | 1 | ||||||||
Treatment charges and other | (21 | ) | — | — | — | |||||||||||
Noncash and other costs, net | — | 5 | — | — | ||||||||||||
Molybdenum mines | 290 | 234 | 50 | 1 | ||||||||||||
Other miningb | 12,660 | 10,523 | 912 | 41 | ||||||||||||
Corporate, other & eliminations | (2,304 | ) | (2,173 | ) | 59 | 58 | ||||||||||
As reported in FCX's consolidated financial statements | $ | 10,646 | $ | 8,584 | $ | 1,021 | $ | 100 | ||||||||
Nine Months Ended September 30, 2018 | ||||||||||||||||
Totals presented above | $ | 330 | $ | 209 | $ | 60 | $ | — | ||||||||
Treatment charges and other | (23 | ) | — | — | — | |||||||||||
Noncash and other costs, net | — | 5 | — | — | ||||||||||||
Molybdenum mines | 307 | 214 | 60 | — | ||||||||||||
Other miningb | 17,133 | 11,202 | 1,238 | 2 | ||||||||||||
Corporate, other & eliminations | (2,496 | ) | (2,626 | ) | 53 | — | ||||||||||
As reported in FCX's consolidated financial statements | $ | 14,944 | $ | 8,790 | $ | 1,351 | $ | 2 | ||||||||
a. | Reflects sales of the Molybdenum mines' production to FCX's molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. Also includes amounts associated with FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. |
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