Freeport-McMoRan(FCX) - 2025 Q1 - Quarterly Report

Financial Performance - Net income attributable to common stockholders was $352 million in Q1 2025, down from$473 million in Q1 2024, primarily due to lower gold and copper sales volumes in Indonesia[96]. - Consolidated revenues decreased to $5.7 billion in Q1 2025 from$6.3 billion in Q1 2024, primarily due to lower sales volumes of copper and gold[126][127]. - Operating income declined to $1.3 billion in Q1 2025 from$1.6 billion in Q1 2024, with net income attributable to common stock at $352 million, down from$473 million[124]. - The company generated operating cash flows of $1.1 billion in Q1 2025, down from$1.9 billion in Q1 2024, primarily due to lower copper and gold sales volumes[238]. - Consolidated copper sales volumes for Q1 2025 were 290 million pounds, down 41.2% from 493 million pounds in Q1 2024, while gold sales volumes decreased by 77.8% to 125 thousand ounces from 564 thousand ounces[206]. Debt and Cash Management - Consolidated debt as of March 31, 2025, was $9.4 billion, with consolidated cash and cash equivalents totaling$4.4 billion, resulting in net debt of $1.5 billion[97]. - Cash and cash equivalents decreased to$4.4 billion as of March 31, 2025, compared to $5.2 billion a year earlier[124]. - Total debt remained stable at$9.4 billion as of March 31, 2025, compared to $9.4 billion in the previous year[124]. - The company plans to maintain net debt within a target range of$3.0 billion to $4.0 billion, excluding project debt for PTFI[250]. - As of March 31, 2025, the company had$4.4 billion in consolidated cash and cash equivalents, with $3.0 billion available under revolving credit facilities[230]. Production and Sales Volumes - Projected consolidated sales volumes for 2025 include 4.0 billion pounds of copper, 1.6 million ounces of gold, and 88 million pounds of molybdenum[102]. - Copper production fell to 868 million recoverable pounds in Q1 2025, down from 1,085 million pounds in Q1 2024, while gold production decreased to 287 thousand recoverable ounces from 549 thousand ounces[125]. - Incremental copper production from technology and leaching initiatives totaled 214 million pounds in 2024 and 46 million pounds in Q1 2025, targeting an annual run rate of 300 million pounds by the end of 2025[154][155]. - The company is targeting an annual run rate of 300 million pounds of copper by the end of 2025 through new technology applications and operational enhancements[94]. - Projected sales volumes for 2025 are approximately 1.6 billion pounds of copper and 1.6 million ounces of gold, influenced by planned maintenance projects[207]. Costs and Expenditures - Average unit net cash costs for copper are expected to be$1.50 per pound for both 2025 and Q2 2025, assuming average prices of $3,000 per ounce of gold and$20.00 per pound of molybdenum[105]. - Capital expenditures for 2025 are expected to total $5.0 billion, including$2.8 billion for major mining projects and $0.6 billion for PTFI's new downstream processing facilities[109]. - Capital expenditures totaled$1.2 billion in Q1 2025, including $0.6 billion for major mining projects in the Grasberg minerals district[239]. - Average unit net cash costs for U.S. copper mines were$3.11 per pound in Q1 2025, up from $2.98 per pound in Q1 2024, due to higher labor costs and lower copper volumes[178]. - Average unit net cash costs for South America operations decreased to$2.40 per pound in Q1 2025 from $2.60 per pound in Q1 2024, primarily due to higher by-product credits[191]. Market Prices - The average LME copper settlement price during Q1 2025 was$4.24 per pound, while the average COMEX copper settlement price was $4.57 per pound[115][116]. - London PM gold prices averaged$2,860 per ounce in Q1 2025, reaching $3,115 per ounce by March 31, 2025[120]. - Molybdenum prices averaged$20.56 per pound in Q1 2025, with a price of $20.01 per pound on March 31, 2025[122]. - Average realized prices increased, with copper up 13$4.44 per pound, gold up 43% to $3,072 per ounce, and molybdenum up 6$21.67 per pound compared to Q1 2024[128]. Operational Developments - PTFI plans to invest approximately $4 billion in the Kucing Liar deposit over the next 7-8 years, expected to produce over 7 billion pounds of copper and 6 million ounces of gold[202]. - PTFI's new downstream processing facilities are expected to achieve full ramp-up by year-end 2025 following repairs from a fire incident[204]. - The company expects to submit an environmental impact statement for the El Abra project by year-end 2025, contingent on stakeholder engagement and economic evaluations[184]. - The Bagdad operation has a potential expansion project to increase copper production by 200 to 250 million pounds per year at an estimated capital cost of$3.5 billion[168]. - PTFI incurred $73 million in maintenance charges and idle facility costs during a major maintenance turnaround at the Miami smelter in Q1 2025[224]. Shareholder Returns - The company declared cash dividends totaling$0.15 per share on common stock, with an anticipated total of $0.60 per share for 2025[233]. - The company acquired 51 million shares at an average cost of$38.50 per share, with $3.0 billion available under the share repurchase program[234]. - The company’s financial policy includes a performance-based payout framework, allocating up to 50% of available cash flows to shareholder returns[231]. Risks and Future Outlook - Forward-looking statements indicate potential impacts from global market conditions, production rates, and operational risks[277]. - The company is subject to various risks, including commodity price fluctuations, operational risks, and geopolitical factors that may affect future performance[278]. - The company anticipates achieving its 2030 climate targets and 2050 net zero aspiration, focusing on responsible production commitments[277].