Summary
Freeport-McMoRan Inc. (FCX) reported a solid third quarter and a strong first nine months of 2024, demonstrating robust revenue growth and improved profitability, primarily driven by higher average realized prices for copper and gold. The company's revenues for the third quarter increased to $6.8 billion from $5.8 billion in the prior year, with net income attributable to common stockholders rising to $526 million ($0.36 per diluted share) from $454 million ($0.31 per diluted share). For the nine-month period ended September 30, 2024, revenues reached $19.7 billion, a significant increase from $17.0 billion in the same period of 2023. Net income attributable to common stockholders for the nine months was $1.6 billion ($1.11 per diluted share), up from $1.5 billion ($1.01 per diluted share) in the prior year. These improvements are attributed to favorable commodity prices, higher gold sales volumes, and reduced environmental costs, partially offset by increased operating expenses and taxes. Management remains focused on operational execution, cost control, and advancing organic growth initiatives, with positive long-term fundamentals for copper. A notable event during the quarter was a fire at PT-FI's new smelter in Indonesia, which has temporarily suspended start-up operations. While repair costs are estimated at $100 million, expected to be covered by insurance, the recommencement of operations is anticipated by mid-2025. Despite this setback, mining operations and other projects remain unaffected. The company also increased its ownership in Cerro Verde to 55.08% and continues to maintain a strong balance sheet and liquidity position.
Financial Highlights
50 data points| Revenue | $6.79B |
| Cost of Revenue | $4.68B |
| Gross Profit | $2.11B |
| SG&A Expenses | $117.00M |
| Operating Expenses | $4.85B |
| Operating Income | $1.94B |
| Net Income | $526.00M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 1.44B |
| Shares Outstanding (Diluted) | 1.44B |
Key Highlights
- 1Strong Revenue Growth: Consolidated revenues increased by 16.6% to $6.8 billion in Q3 2024 and by 16.2% to $19.7 billion for the first nine months of 2024, driven by higher commodity prices and sales volumes.
- 2Improved Profitability: Net income attributable to common stockholders rose to $526 million in Q3 2024 and $1.6 billion for the nine months, reflecting increased earnings per share.
- 3Higher Commodity Prices: Average realized prices for copper were up 13% in Q3 and 10% year-to-date, while gold prices saw a significant increase of 35% in Q3 and 22% year-to-date.
- 4PT-FI Smelter Fire: A fire at PT-FI's new smelter in Indonesia has temporarily halted start-up operations, with repairs estimated at $100 million and a projected restart by mid-2025. Mining operations remain unaffected.
- 5Increased Cerro Verde Ownership: FCX increased its ownership stake in Cerro Verde to 55.08% through a $210 million share purchase.
- 6Solid Cash Flow Generation: Operating cash flows were robust, reaching $5.7 billion for the first nine months of 2024, supporting capital expenditures and financial flexibility.
- 7Consistent Shareholder Returns: The company declared a quarterly dividend of $0.15 per share and continued its share repurchase program, demonstrating commitment to returning capital to shareholders.