What were the key drivers of revenue growth in the third quarter?

Revenue increased to $5.8 billion in the third quarter of 2023, primarily driven by higher average realized prices for copper (up 9%) and molybdenum (up 39%), along with increased copper sales volumes. Favorable adjustments related to prior period provisionally priced copper sales also contributed positively.

How has the company's financial performance changed compared to the first nine months of the previous year?

For the nine months ended September 30, 2023, net income attributable to common stockholders decreased to $1.46 billion from $2.77 billion in the prior year. This decline was mainly attributed to increased costs for maintenance and supplies, and also impacted by the change in the company's economic interest in PT Freeport Indonesia (PT-FI).

What is the status of the company's smelter development projects in Indonesia?

The construction of the Manyar smelter is approximately 84% complete and expected to be finished mid-2024, followed by commissioning. PT-FI is also expanding the capacity of PT Smelting, expected to be completed by year-end 2023, and constructing a precious metals refinery (PMR) with commissioning expected in 2024. Capital expenditures for these projects were $1.2 billion in the first nine months of 2023, and are expected to be $1.6 billion for the full year.

Are there any significant regulatory or geopolitical risks impacting operations?

PT-FI is facing regulatory matters in Indonesia, including disputing new export duties assessed under a revised regulation and awaiting approval to resume anode slime exports. The company also continues discussions with the Indonesian government regarding the extension of mining rights beyond 2041. In Peru, the company is dealing with contested tax rulings.

FCX 10-Q Quarterly Report Q3 FY2023 — Revenue, Net Income, EPS

Summary

Freeport-McMoRan Inc. (FCX) reported a solid third quarter and nine months ended September 30, 2023, demonstrating resilience in its operations despite fluctuating commodity prices. Revenues for the quarter were $5.8 billion, up from $5.0 billion in the prior year, driven by higher copper sales volumes and prices, as well as increased molybdenum prices. For the nine-month period, revenues were largely stable at $17.0 billion compared to $17.0 billion in the prior year, with fluctuations in copper and gold sales volumes being offset by favorable commodity pricing. Net income attributable to common stockholders was $454 million ($0.31 per diluted share) for the third quarter, an increase from $404 million ($0.28 per diluted share) in the same period last year. For the nine months ended September 30, 2023, net income attributable to common stockholders was $1.46 billion ($1.01 per diluted share), a significant decrease from $2.77 billion ($1.90 per diluted share) in the prior year, primarily due to higher operating costs and a lower overall effective income tax rate. The company continues to focus on operational efficiency, cost management, and advancing its strategic initiatives, including leaching innovation and smelter development projects, positioning itself for long-term value creation.

Financial Highlights

50 data points

Beta

Revenue

$5.82B

0.3% Gross Margin

Net Income

$454.00M

0.1% Net Margin

EPS (Diluted)

$0.31

Total Assets

$51.65B

Cash & Equivalents

$5.75B

Free Cash Flow

$1.24B

Financial Statements

Beta

Revenue	$5.82B
Cost of Revenue	$4.09B
Gross Profit	$1.74B
SG&A Expenses	$118.00M
Operating Expenses	$4.33B
Operating Income	$1.49B
Net Income	$454.00M
EPS (Basic)	$0.31
EPS (Diluted)	$0.31
Shares Outstanding (Basic)	1.44B
Shares Outstanding (Diluted)	1.44B

Key Highlights

1Revenue increased by 16.4% to $5.8 billion in Q3 2023 compared to $5.0 billion in Q3 2022, driven by higher copper and molybdenum prices and increased copper sales volumes.
2Net income attributable to common stockholders rose to $454 million ($0.31 per diluted share) in Q3 2023, up from $404 million ($0.28 per diluted share) in Q3 2022.
3For the nine months ended September 30, 2023, net income attributable to common stockholders decreased to $1.46 billion ($1.01 per diluted share) from $2.77 billion ($1.90 per diluted share) in the same period of 2022, impacted by higher costs and changes in PT-FI's economic interest.
4Consolidated copper sales volumes increased in Q3 2023 due to higher mining rates, while gold sales volumes decreased due to the timing of anode slime shipments.
5The company is advancing its leaching innovation initiatives, targeting an annual run rate of approximately 200 million pounds of copper by the end of 2023.
6Capital expenditures for the nine months ended September 30, 2023, were $3.5 billion, primarily allocated to major mining projects and Indonesia smelter projects.
7PT-FI secured an export license through May 2024 for 1.7 million metric tons of copper concentrate and is working on resuming anode slime exports in Q4 2023.
8PT-FI incurred $147 million in export duties in Q3 2023 under a revised Indonesian regulation, which the company is disputing.

FREEPORT-MCMORAN INC Quarterly Report for Q3 Ended Sep 30, 2023

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions