Freeport-McMoRan(US:FCX)2024-11-08 21:04Financial Performance - Net income attributable to common stockholders was $526 million in Q3 2024 and $1.6 billion for the first nine months of 2024, compared to $454 million and $1.5 billion in the same periods of 2023, reflecting higher average realized copper and gold prices [114]. - Consolidated revenues reached $6.79 billion in Q3 2024, up from $5.82 billion in Q3 2023, and $19.74 billion for the first nine months of 2024, compared to $16.95 billion in the same period of 2023 [135]. - Operating income for Q3 2024 was $1.94 billion, an increase from $1.49 billion in Q3 2023, and $5.62 billion for the first nine months of 2024, compared to $4.50 billion in 2023 [135]. - Net income attributable to common stock was $526 million in Q3 2024, compared to $454 million in Q3 2023, and $1.62 billion for the first nine months of 2024, up from $1.46 billion in 2023 [135]. - Consolidated operating cash flows for the first nine months of 2024 were $5.7 billion, compared to $4.0 billion for the same period in 2023, driven by higher copper and gold prices [248]. Production and Sales - Incremental copper production from leach innovation initiatives totaled 164 million pounds for the first nine months of 2024, up from 97 million pounds in the same period of 2023 [111]. - Consolidated sales volumes for 2024 are projected at 4.055 billion pounds of copper, 1.8 million ounces of gold, and 80 million pounds of molybdenum [117]. - Consolidated copper sales volumes decreased to 1.04 billion pounds in Q3 2024 from 1.11 billion pounds in Q3 2023, primarily due to lower ore grades and operating rates in North America [136]. - Gold production decreased to 456,000 recoverable ounces in Q3 2024 from 532,000 ounces in Q3 2023, while sales increased to 558,000 ounces from 399,000 ounces [134]. - PT-FI's consolidated copper sales volumes were 426 million pounds in Q3 2024, compared to 430 million pounds in Q3 2023, and totaled 1.3 billion pounds for the first nine months of 2024, up from 1.0 billion pounds in the same period of 2023 [209][211]. Costs and Expenditures - Consolidated unit net cash costs for copper mines are expected to average $1.58 per pound for 2024, including $1.72 per pound in Q4 2024 [120]. - Capital expenditures for 2024 are expected to total $4.6 billion, including $2.2 billion for major mining projects and $1.0 billion for PT-FI's new downstream processing facilities [122]. - Site production and delivery costs averaged $2.61 per pound of copper in Q3 2024, an increase from $2.27 per pound in Q3 2023, and $2.49 per pound for the first nine months of 2024, compared to $2.40 per pound in the same period of 2023 [146]. - Total costs for the North America copper mines were reported at $1.404 billion [269]. - Total costs amounted to $4,275 million, with site production and delivery costs at $2,062 million [288]. Market Conditions - Average LME copper settlement prices in Q3 2024 ranged from $3.91 to $4.47 per pound, averaging $4.18 per pound [126]. - London PM gold prices averaged $2,474 per ounce in Q3 2024, with a record high of $2,664 per ounce during the quarter [129]. - Average realized copper prices increased by 13% to $4.30 per pound in Q3 2024, and by 10% to $4.26 per pound for the first nine months of 2024 [138]. - The average realized price per pound of copper increased to $4.24 in Q3 2024 from $3.77 in Q3 2023, while the average realized price per ounce of gold rose to $2,362 from $1,898 in the same period [214]. Debt and Cash Management - Total debt as of September 30, 2024, was $9.68 billion, slightly up from $9.41 billion in 2023 [135]. - As of September 30, 2024, the company had $5.0 billion in consolidated cash and cash equivalents, with $3.0 billion available under revolving credit facilities [236]. - At September 30, 2024, consolidated debt totaled $9.7 billion, with a weighted-average interest rate of 5.2% [247]. - Net debt as of September 30, 2024, was $3.715 billion, with a target range of $3 billion to $4 billion, excluding debt for PT-FI's new downstream processing facilities [263]. Future Outlook and Investments - The company is engaged in feasibility studies for potential future expansion projects, with costs totaling $45 million in Q3 2024, compared to $42 million in Q3 2023 [163]. - PT-FI plans to invest approximately $1 billion in transitioning energy sources from coal to natural gas over the next four years [203]. - The company anticipates potential future performance improvements and operational strategies, including exploration efforts and technology innovations [295]. - Future guidance indicates a focus on optimizing production efficiency and reducing costs further [272].