Summary
Freeport-McMoRan Copper & Gold Inc. (FCX) filed an 8-K report on January 17, 2006, primarily to disclose its fourth-quarter and full-year 2005 financial results and address other significant corporate events. The company announced its financial performance for the period and also reported on the private conversion of a substantial portion of its 7% Convertible Senior Notes due 2011. These conversions, which occurred throughout 2005 and specifically in the fourth quarter, resulted in the issuance of millions of shares of FCX common stock, indicating a significant deleveraging activity. Furthermore, the report highlights FCX's proactive engagement in addressing public scrutiny regarding its Indonesian mining operations. The company disclosed that its CEO had sent a letter to The New York Times to correct alleged misstatements in recent articles. In conjunction with these media reports, FCX acknowledged informal inquiries from governmental agencies concerning its support for Indonesian security institutions in Papua. FCX affirmed its full cooperation with these inquiries and reiterated that its practices are compliant with the U.S. State Department and British Foreign Office's Voluntary Principles on Security and Human Rights.
Key Highlights
- 1FCX announced its fourth-quarter and twelve-month 2005 financial results via a press release and accompanying slides.
- 2The company reported the private conversion of $251.3 million of its 7% Convertible Senior Notes due 2011 into 8.1 million shares of common stock throughout 2005.
- 3Specifically, $62.9 million of these notes were converted in the fourth quarter of 2005, resulting in 2.0 million shares of common stock.
- 4These note conversions were conducted through privately negotiated transactions and relied on the exemption from registration under Section 3(a)(9) of the Securities Act of 1933.
- 5FCX's CEO sent a letter to The New York Times on January 11, 2006, addressing alleged misstatements in recent articles concerning its Indonesian mining operations.
- 6Following media reports, FCX received informal inquiries from governmental agencies regarding its support for Indonesian security institutions in Papua.
- 7FCX stated its full cooperation with these governmental inquiries and confirmed its support practices adhere to the Voluntary Principles on Security and Human Rights.