01—Abstract
Summary
Summary of the 10-K filed February 14, 2020. Cited figures are marked; the original filing is the authoritative source.
Freeport-McMoRan Inc. reported its 2019 financial and operational results, highlighting a substantial portfolio of long-lived copper and gold assets across North America, South America, and Indonesia.
The company is strategically advancing its underground development projects in the Grasberg minerals district in Indonesia and the Lone Star project in Arizona, which are expected to significantly boost consolidated metal production by 2021. Operational efficiencies are being enhanced through technology and data science initiatives across its North American and South American operations. Financially, 2019 saw revenues of $14.4 billiona, a decrease from $18.6 billion in 2018, primarily due to lower copper and gold sales volumes and lower copper prices.
Despite a net loss attributable to common stockholders of $239 millionb in 2019, the company maintained a strong liquidity position with $2.0 billion in consolidated cash and cash equivalents and approximately $3.5 billion available under its revolving credit facility at year-end. The company also reported significant proven and probable mineral reserves, totaling 116.0 billion pounds of copper, 29.6 million ounces of gold, and 3.58 billion pounds of molybdenum.
02—Key points
Key Highlights
- Freeport-McMoRan reported 2019 revenues of $14.4 billion, down from $18.6 billion in 2018, attributed to lower sales volumes and copper prices.
- The company experienced a net loss attributable to common stockholders of $239 million in 2019, compared to a net income of $2.6 billion in 2018.
- Significant progress was made on underground development at the Grasberg minerals district in Indonesia and the Lone Star project in Arizona, with improved consolidated metal production expected by 2021.
- Operational efficiency initiatives, including data science and machine learning, are being implemented across North America and South America operations.
- As of December 31, 2019, the company held $2.0 billion in consolidated cash and cash equivalents and $9.8 billion in total debt.
- Estimated consolidated proven and probable mineral reserves were substantial, totaling 116.0 billion pounds of copper, 29.6 million ounces of gold, and 3.58 billion pounds of molybdenum.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2019, Freeport-McMoRan Inc lost $0.02.
- Revenue$14.40B100.0%
- Cost of revenue−$13.13B91.1%
- Gross profit$1.28B8.9%
- Operating costs−$186.0M1.3%
- Operating income$1.09B7.6%
- Interest, other & tax−$1.33B9.2%
- Net income−$239.0M1.7%
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 14, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $14.40B$18.63B | −22.7% |
| Cost of Revenue | $13.13B$13.47B | −2.5% |
| Gross Profit | $1.28B$5.16B | −75.3% |
| SG&A Expenses | $394.00M$422.00M | −6.6% |
| Operating Expenses | $13.31B$13.87B | −4.1% |
| Operating Income | $1.09B$4.75B | −77.1% |
| Net Income | -$239.00M$2.60B | −109.2% |
| EPS (Basic) | $-0.17$1.79 | −109.5% |
| EPS (Diluted) | $-0.17$1.78 | −109.6% |
| Shares Outstanding (Basic) | 1.45B1.45B | +0.1% |
| Shares Outstanding (Diluted) | 1.45B1.46B | −0.5% |
05—Questions
Frequently Asked Questions
What were Freeport-McMoRan's key financial results for 2019?
In 2019, Freeport-McMoRan reported revenues of $14.4 billion, a decrease from $18.6 billion in 2018, primarily due to lower copper and gold sales volumes and lower copper prices. The company incurred a net loss attributable to common stockholders of $239 million in 2019, a significant shift from the net income of $2.6 billion in 2018.
What are the company's major development projects and their expected impact?
Freeport-McMoRan is advancing underground development at the Grasberg minerals district in Indonesia and the Lone Star copper leach project in Arizona. These projects are crucial for future growth, with a significant increase in consolidated metal production expected by 2021 as these underground operations ramp up.
How is the company managing operational efficiency?
The company is implementing productivity and innovation initiatives, including data science and machine learning applications, across its North America and South America mining operations. These efforts aim to enhance productivity, expand margins, and reduce capital intensity.
What is the company's liquidity position at the end of 2019?
As of December 31, 2019, Freeport-McMoRan had $2.0 billion in consolidated cash and cash equivalents. The company also had access to approximately $3.5 billion under its revolving credit facility, demonstrating a solid liquidity position.
06—Continue