Early Access

10-QPeriod: Q1 FY2022

FREEPORT-MCMORAN INC Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 5, 2022For Securities:FCX

Summary

Freeport-McMoRan Inc. (FCX) reported a strong first quarter of 2022, demonstrating robust financial performance and significant cash flow generation, driven by higher copper and gold sales volumes and prices. Revenues increased to $6.6 billion from $4.8 billion in the prior year's comparable period, with net income attributable to common stockholders more than doubling to $1.5 billion ($1.04 diluted EPS) from $718 million ($0.48 diluted EPS). The company maintained a healthy liquidity position with $8.3 billion in cash and cash equivalents and an available $3.5 billion under its revolving credit facility, while actively returning capital to shareholders through share repurchases totaling $541 million in the quarter and declared dividends. Despite inflationary pressures on input costs, FCX remains optimistic about the long-term outlook for copper, supported by its role in the global energy transition and supply constraints.

Financial Statements
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Key Highlights

  • 1Revenue surged by 36% year-over-year to $6.6 billion, driven by higher sales volumes and prices for copper and gold.
  • 2Net income attributable to common stockholders more than doubled to $1.5 billion ($1.04 diluted EPS) compared to $718 million ($0.48 diluted EPS) in Q1 2021.
  • 3Operating cash flow increased to $1.7 billion from $1.1 billion in the prior year's quarter, indicating strong cash-generating capabilities.
  • 4The company repurchased $541 million of its common stock in the quarter, demonstrating commitment to returning capital to shareholders.
  • 5FCX maintained a strong balance sheet with $8.3 billion in cash and cash equivalents and $3.5 billion available under its revolving credit facility, resulting in a net debt of $1.3 billion.
  • 6Consolidated unit net cash costs for copper mines averaged $1.33 per pound, slightly down from $1.39 per pound in Q1 2021, despite inflationary pressures.
  • 7The company provided an optimistic outlook for 2022, projecting consolidated operating cash flows of $8.6 billion, which is expected to significantly exceed projected capital expenditures.

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