Summary
Freeport-McMoRan Inc. (FCX) reported its second-quarter 2019 financial results, indicating a challenging period marked by a net loss attributable to common stockholders of $72 million, or $0.05 per diluted share. This contrasts sharply with the prior year's significant profit, reflecting lower copper and gold sales volumes due to the ongoing transition at its Indonesian operations (PT-FI) from open-pit to underground mining, as well as generally lower copper prices. Despite the quarterly loss, the company generated $1.1 billion in operating cash flow for the first six months of 2019, albeit down from $2.7 billion in the comparable period of 2018. Total debt was reduced to $9.9 billion from $11.1 billion at year-end 2018, and the company maintained substantial liquidity with $2.6 billion in cash and cash equivalents and an undrawn revolving credit facility of $3.5 billion. Management remains focused on long-term value creation, advancing key development projects such as the Lone Star leach project and PT-FI's underground operations, while navigating commodity price volatility and operational transitions.
Financial Highlights
47 data points| Revenue | $3.55B |
| Cost of Revenue | $3.36B |
| Gross Profit | $187.00M |
| SG&A Expenses | $92.00M |
| Operating Expenses | $3.51B |
| Operating Income | $33.00M |
| Net Income | -$72.00M |
| EPS (Basic) | $-0.05 |
| EPS (Diluted) | $-0.05 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.45B |
Key Highlights
- 1Net loss attributable to common stockholders of $72 million ($0.05 per diluted share) in Q2 2019, compared to a net income of $869 million ($0.59 per diluted share) in Q2 2018.
- 2Consolidated revenues decreased to $3.5 billion in Q2 2019 from $5.2 billion in Q2 2018, primarily due to lower copper and gold sales volumes and lower average realized copper prices.
- 3Operating cash flow for the first six months of 2019 was $1.1 billion, a decrease from $2.7 billion in the same period of 2018, largely due to lower sales volumes and prices.
- 4Total debt was reduced to $9.9 billion at June 30, 2019, from $11.1 billion at December 31, 2018, indicating progress in deleveraging.
- 5Cash and cash equivalents stood at $2.6 billion at June 30, 2019, providing ample liquidity.
- 6Significant capital expenditures continue, with $1.25 billion invested in the first six months of 2019, primarily for major mining projects like the PT-FI underground development and the Lone Star copper leach project.
- 7The company is actively managing commodity price risk through various financial instruments, including copper futures, swap contracts, and embedded derivatives in provisional pricing contracts.