Summary
Freeport-McMoRan Inc. (FCX) announced the completion of the sale of its specialty cobalt business in Kokkola, Finland, known as Freeport Cobalt, to Jervois Global Limited. This transaction, valued at $208 million, includes $173 million in cash and $35 million worth of Jervois shares. The sale represents a strategic divestment, as the cobalt business was no longer considered core to FCX's operations following prior divestitures. FCX is expected to record a gain from this transaction in its third-quarter 2021 financial results.
Key Highlights
- 1FCX completed the sale of its specialty cobalt business in Finland to Jervois Global Limited for $208 million.
- 2The sale consideration includes approximately $173 million in cash and $35 million in Jervois Global Limited shares.
- 3The divested business was no longer strategic to FCX's long-term operations.
- 4FCX may receive up to $40 million in additional contingent cash consideration based on future performance.
- 5FCX's share of net proceeds, excluding contingent consideration, is approximately $100 million cash and 3.93% of Jervois's outstanding shares.
- 6The financial contribution of the divested cobalt business was not significant to FCX's recent financial performance.
- 7FCX anticipates recognizing a gain on this sale in its Q3 2021 financial results.