10-KPeriod: FY2024

FREEPORT-MCMORAN INC Annual Report, Year Ended Dec 31, 2024

Filed February 14, 2025For Securities:FCX

Summary

Freeport-McMoRan Inc. (FCX) reported strong operational execution in 2024, demonstrating resilience and a continued focus on long-term value creation. The company's geographically diverse asset base, including major operations in Indonesia (Grasberg), North America (Morenci), and South America (Cerro Verde), positions it well for future growth. A key development was the completion of PT Freeport Indonesia's (PT-FI) new smelter and precious metals refinery, with gold production commencing in December 2024. However, a fire during the smelter's start-up in October 2024 necessitated a temporary suspension, with repairs expected to be completed by mid-2025 and full ramp-up by year-end 2025. This incident, coupled with anticipated export duties in Indonesia, presents a near-term operational challenge but is being managed through government discussions and insurance recovery. The company continues to advance technological initiatives across its North America and South America operations to enhance leaching processes and boost copper production, indicating a commitment to operational efficiency and cost management.

Financial Highlights

50 data points
Beta

Revenue

$25.17B

29.3% Gross Margin

Net Income

$1.89B

7.5% Net Margin

Total Assets

$54.85B

Cash & Equivalents

$3.92B

Free Cash Flow

$7.16B

Financial Statements
Beta
Revenue$25.17B
Cost of Revenue$17.80B
Gross Profit$7.37B
SG&A Expenses$513.00M
Operating Expenses$18.59B
Operating Income$6.86B
Net Income$1.89B
Shares Outstanding (Basic)1.44B
Shares Outstanding (Diluted)1.45B

Key Highlights

  • 1PT Freeport Indonesia (PT-FI) completed construction of its new smelter and precious metals refinery, commencing gold production in December 2024.
  • 2A fire at PT-FI's new smelter in October 2024 required a temporary suspension of operations, with repairs expected to be completed by mid-2025.
  • 3Copper production from three key mines (Morenci, Cerro Verde, and Grasberg) accounted for 77% of consolidated copper production in 2024.
  • 4The company is progressing technology initiatives to improve leaching processes, resulting in incremental copper production of 214 million pounds in 2024.
  • 5Average realized copper prices increased by 9% and gold prices by 23% in 2024 compared to 2023, while molybdenum prices decreased by 12%.
  • 6FCX has a robust mineral reserve base, with estimated consolidated recoverable proven and probable mineral reserves of 97.0 billion pounds of copper, 23.0 million ounces of gold, and 3.16 billion pounds of molybdenum at December 31, 2024.
  • 7Planned capital expenditures for 2025 are projected at $5.0 billion, focusing on major mining projects and PT-FI's downstream facilities.

Frequently Asked Questions

In 2024, PT-FI completed the construction of its new smelter and precious metals refinery (PMR). Gold production commenced in December 2024 from the PMR. However, a fire during the smelter's start-up in October 2024 caused a temporary suspension of smelting operations. Repairs are expected to be completed by mid-2025, with full ramp-up anticipated by year-end 2025. PT-FI is seeking government approval to continue copper concentrate exports in 2025 until the smelter repairs and full ramp-up are completed.

FCX has substantial proven and probable mineral reserves, totaling 97.0 billion pounds of copper, 23.0 million ounces of gold, and 3.16 billion pounds of molybdenum at December 31, 2024. The company is focused on advancing long-term growth opportunities through underground development in the Grasberg minerals district and exploring potential expansions at its North America operations, such as at the Bagdad mine. Technological initiatives in leaching processes are also aimed at enhancing copper recovery and production.

FCX's financial results are significantly influenced by copper, gold, and molybdenum prices, which have historically been volatile. In 2024, average realized prices for copper and gold increased, while molybdenum prices decreased. The company views the long-term fundamentals for copper as favorable due to its role in the energy transition, electric vehicles, and technological advancements. Management closely monitors market conditions and adjusts operating plans to protect liquidity and preserve asset values.

FCX anticipates capital expenditures of approximately $5.0 billion for 2025. This includes $2.8 billion for major mining projects, primarily underground development in Indonesia and expansion projects in North America, $0.6 billion for PT-FI's new downstream processing facilities, and $1.6 billion for sustaining capital and other initiatives. The company maintains flexibility to adjust capital spending based on market conditions.