Early Access

10-QPeriod: Q3 FY2019

FREEPORT-MCMORAN INC Quarterly Report for Q3 Ended Sep 30, 2019

Filed November 6, 2019For Securities:FCX

Summary

Freeport-McMoRan Inc. (FCX) reported a net loss of $207 million, or $0.15 per diluted share, for the third quarter of 2019, a significant decrease from the net income of $556 million, or $0.38 per diluted share, in the same period of the previous year. This downturn was primarily driven by lower copper and gold sales volumes, influenced by the ongoing transition at the Grasberg mine in Indonesia from open-pit to underground operations, and also impacted by lower average copper prices. Despite the quarterly loss, the company's financial position remained stable, with $2.2 billion in cash and cash equivalents and $9.9 billion in total debt at the end of the quarter. The company also announced its full-year 2019 capital expenditure forecast of approximately $2.6 billion, largely for major mining projects, indicating continued investment in future production capacity. Management remains optimistic about the long-term outlook for copper, citing supply constraints and its role in the global economy.

Financial Highlights

47 data points
Beta

Revenue

$3.15B

0.0% Gross Margin

Net Income

-$207.00M

-0.1% Net Margin

EPS (Diluted)

$-0.15

Total Assets

$40.94B

Cash & Equivalents

$2.25B

Free Cash Flow

$224.00M

Financial Statements
Beta
Revenue$3.15B
Cost of Revenue$3.03B
Gross Profit$120.00M
SG&A Expenses$101.00M
Operating Expenses$3.19B
Operating Income-$38.00M
Net Income-$207.00M
EPS (Basic)$-0.15
EPS (Diluted)$-0.15
Shares Outstanding (Basic)1.45B
Shares Outstanding (Diluted)1.45B

Key Highlights

  • 1Net loss of $207 million ($0.15/share) in Q3 2019, compared to net income of $556 million ($0.38/share) in Q3 2018.
  • 2Revenues decreased to $3.2 billion in Q3 2019 from $4.9 billion in Q3 2018, primarily due to lower sales volumes.
  • 3Company is undergoing a significant operational transition at its Grasberg mine in Indonesia from open-pit to underground operations, impacting production volumes.
  • 4Consolidated cash and cash equivalents stood at $2.2 billion, with total debt at $9.9 billion as of September 30, 2019.
  • 5Full-year 2019 capital expenditures are projected at approximately $2.6 billion, with a substantial portion allocated to major mining projects.
  • 6An unfavorable Indonesia Supreme Court ruling led to a $155 million charge related to disputed export duties, impacting the third quarter results.
  • 7Average realized copper prices were down 6% year-over-year in Q3 2019, while gold prices were up 25%.

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