Summary
Freeport-McMoRan Inc. (FCX) has announced the sale of its specialty cobalt business in Kokkola, Finland, known as Freeport Cobalt, to Jervois Mining Limited. This divestiture is part of FCX's ongoing strategy to streamline operations and focus on core assets, following previous sales of its Tenke Fungurume interests and a cobalt refinery. The sale includes an upfront payment of $85 million in cash and Jervois shares, plus adjustments for working capital. Additionally, FCX and its partners are eligible for up to $40 million in contingent cash payments tied to the future performance of the cobalt business.
Key Highlights
- 1FCX is selling its specialty cobalt business in Finland (Freeport Cobalt) to Jervois Mining Limited.
- 2The sale price includes $85 million in cash and Jervois shares, plus working capital adjustments.
- 3FCX and partners could receive up to $40 million in contingent cash consideration based on future business performance.
- 4The cobalt business was deemed non-strategic following prior divestitures in 2016 and 2019.
- 5The financial contribution of this business was not significant to FCX's recent financial results.
- 6FCX expects to receive approximately $100 million in cash plus a stake in Jervois shares (up to 9.9%), excluding contingent consideration.
- 7The transaction is expected to close in the third quarter of 2021, subject to financing and closing conditions.