Freeport-McMoRan(FCX) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter 2024 net income attributable to common stock totaled $274 million, $0.19 per share, and adjusted net income attributable to common stock totaled $450 million, $0.31 per share [2] - Net income attributable to common stockholders for 2024 was $1,889 million, compared to $1,848 million in 2023 [93] - Net income for 2024 was $4.399 billion, up from $3.751 billion in 2023, reflecting improved operational performance [98] - Adjusted net income attributable to common stock for 2024 was $2.146 billion, slightly down from $2.221 billion in 2023 [103] - FCX's consolidated income tax provision for 2024 shows an effective tax rate of 42% with a provision of $520 million, compared to 42% and $724 million in 2023 [108] - FCX estimates a consolidated effective tax rate of 40% for 2025, with tax impacts at 39% for Peru, 36% for Indonesia, and 0% for the U.S. [114] - Net income attributable to noncontrolling interests totaled $447 million in Q4 2024, representing 36% of FCX's consolidated income before taxes [129] - FCX estimates net income attributable to noncontrolling interests to approximate $2.3 billion for 2025, representing 35% of consolidated income before taxes [132] - Net income attributable to noncontrolling interests for Q4 2023 was $619 million, representing 36% of FCX's consolidated income before taxes [129] Production and Sales - Consolidated production in fourth-quarter 2024 totaled 1.04 billion pounds of copper, 432 thousand ounces of gold, and 22 million pounds of molybdenum [2] - Consolidated sales in fourth-quarter 2024 totaled 1.0 billion pounds of copper, 350 thousand ounces of gold, and 18 million pounds of molybdenum [2] - Consolidated sales for 2025 are expected to approximate 4.0 billion pounds of copper, 1.6 million ounces of gold, and 88 million pounds of molybdenum [2] - Incremental copper production from technology and leaching initiatives totaled 50 million pounds in fourth-quarter 2024 and 214 million pounds for the year 2024 [13] - FCX's North America copper sales for 2024 were 1.26 billion pounds, with an estimated 1.4 billion pounds for 2025 [21] - FCX's South America copper sales for 2024 were 1.2 billion pounds, with an expected 1.1 billion pounds for 2025 [30] - PT-FI's Kucing Liar deposit is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and 2041, with capital investments estimated at $4 billion over the next 7-8 years [39] - PT-FI's consolidated copper sales volumes in Q4 2024 were 376 million pounds, down from 511 million pounds in Q4 2023, primarily due to lower ore grades and shipment timing [45] - PT-FI's consolidated gold sales volumes in Q4 2024 were 343 thousand ounces, down from 544 thousand ounces in Q4 2023 [45] - PT-FI's projected sales volumes for 2025 are 1.55 billion pounds of copper and 1.6 million ounces of gold, reflecting reduced operating rates due to planned maintenance projects [46] - Copper production in Q4 2024 was 1,041 million recoverable pounds, with sales of 992 million pounds, compared to 1,095 million pounds produced and 1,116 million pounds sold in Q4 2023 [84] - Gold production in Q4 2024 was 432 thousand recoverable ounces, with sales of 350 thousand ounces, compared to 573 thousand ounces produced and 549 thousand ounces sold in Q4 2023 [84] - Molybdenum production in Q4 2024 was 22 million recoverable pounds, with sales of 18 million pounds, compared to 20 million pounds produced and 22 million pounds sold in Q4 2023 [84] - Total copper production for 2024 was 4,214 million recoverable pounds, slightly up from 4,212 million pounds in 2023 [87] - Gold production in 2024 was 1,880 thousand recoverable ounces, down from 1,993 thousand ounces in 2023 [87] - FCX's mined copper sales in 2024 were 45% in concentrate, 34% as cathode, and 21% as rod, with an average realized copper price of $4.15 per pound in Q4 2024 [118] - At December 31, 2024, FCX had provisionally priced copper sales totaling 133 million pounds at an average price of $3.96 per pound [125] - FCX's net deferred profits on inventories at Atlantic Copper totaled $181 million at December 31, 2024, to be recognized in future periods [127] - Silver sales in South America operations totaled 3.6 million ounces in 2024 at an average realized price of $29.35 per ounce [174] - Silver sales in South America operations totaled 4.1 million ounces in 2023 at an average realized price of $23.57 per ounce [177] - Silver sales in Q4 2024 were 1.4 million ounces at an average realized price of $29.85 per ounce [180] - Silver sales in Q4 2023 were 2.0 million ounces at an average realized price of $23.58 per ounce [183] - Silver sales in 2024 were 6.9 million ounces at an average realized price of $28.52 per ounce [186] - Silver sales in 2023 were 6.0 million ounces at an average realized price of $23.37 per ounce [190] - Molybdenum sales volume remained stable at 30 million recoverable pounds for both 2024 and 2023 [198] Costs and Expenses - Consolidated unit net cash costs for FCX's copper mines are expected to average $1.60 per pound of copper for the year 2025 [12] - Average unit net cash costs for North America copper mines were $3.04 per pound in Q4 2024, expected to approximate $3.00 per pound for 2025 [22][23] - Average unit net cash costs for South America operations were $2.36 per pound in Q4 2024, expected to approximate $2.50 per pound for 2025 [31][32] - PT-FI's unit net cash credits in Q4 2024 were $0.08 per pound of copper, favorable compared to less than $0.01 per pound in Q4 2023, primarily due to higher gold credits [47] - Production and delivery costs for 2024 were $15,554 million, up from $13,627 million in 2023 [93] - PT-FI's new smelter and precious metals refinery incurred $133 million in operational readiness and startup costs in 2024 [94] - Consolidated interest costs for 2024 were $710 million, down from $782 million in 2023 [94] - Total charges for feasibility and optimization studies were $62 million ($0.05 per pound of copper) and $60 million ($0.05 per pound of copper) for metals inventory adjustments [161] - Total charges for feasibility and optimization studies were $107 million ($0.08 per pound of copper) [166] - Nonrecurring charges of $97 million ($0.08 per pound of copper) were incurred in 2024 for labor-related charges at Cerro Verde [175] - Feasibility and optimization studies in 2024 resulted in charges of $57 million ($0.05 per pound of copper) [175] - Noncash and other costs for Indonesia operations in 2024 included $144 million for ARO adjustment and $133 million for operational readiness and startup costs [187] - Noncash and other costs for Indonesia operations in 2023 included $112 million in credits to correct historical PT-FI ARO model inputs and $55 million for an administrative fine [191] - Total costs for molybdenum mines increased to $630 million in 2024 from $530 million in 2023 [198] - Net cash costs for molybdenum mines rose to $535 million in 2024 from $448 million in 2023 [198] - DD&A expenses for molybdenum mines increased to $73 million in 2024 from $66 million in 2023 [198] - Noncash and other costs, net for molybdenum mines increased to $22 million in 2024 from $16 million in 2023 [198] Cash Flow and Capital Expenditures - Operating cash flows totaled $1.4 billion in fourth-quarter 2024 and $7.2 billion for the year 2024 [2] - Capital expenditures in fourth-quarter 2024 totaled $1.2 billion, including $0.6 billion for major mining projects and $0.2 billion for PT-FI's new smelter and precious metals refinery [2] - FCX generated operating cash flows of $1.4 billion in Q4 2024 and $7.2 billion for the full year 2024 [63] - FCX's consolidated operating cash flows for 2025 are estimated to approximate $6.2 billion, based on current sales volume and cost estimates [64] - Capital expenditures for 2025 are expected to approximate $5.0 billion, including $2.8 billion for major mining projects and $0.6 billion for PT-FI's new downstream processing facilities [66] - FCX had $3.9 billion in consolidated cash and cash equivalents at December 31, 2024, with $3.0 billion of availability under its revolving credit facility [62] - FCX's net debt at December 31, 2024, excluding $3.2 billion of debt for PT-FI's new downstream processing facilities, totaled $1.06 billion [71] - FCX declared a total cash dividend of $0.15 per share, consisting of a $0.075 quarterly base dividend and a $0.075 variable performance-based dividend, payable on February 3, 2025 [72] - FCX has 1.4 billion shares outstanding and $3.1 billion available under its share repurchase program as of January 22, 2025 [73] - Cash flow from operating activities rose to $7.160 billion in 2024, compared to $5.279 billion in 2023, indicating stronger cash generation [98] - Capital expenditures for Indonesia operations decreased to $2.908 billion in 2024 from $3.411 billion in 2023, reflecting reduced investment [98] - Net cash used in financing activities was $3.284 billion in 2024, up from $2.650 billion in 2023, driven by higher debt repayments and dividends [98] - FCX's net debt as of December 31, 2024, was $4.289 billion, excluding $3.233 billion for PT-FI's new downstream processing facilities [116] Prices and Realized Values - Average realized prices in fourth-quarter 2024 were $4.15 per pound for copper, $2,628 per ounce for gold, and $22.23 per pound for molybdenum [2] - The average realized price for copper in Q4 2024 was $4.15 per pound, up from $3.81 per pound in Q4 2023 [84] - The average realized price for gold in Q4 2024 was $2,628 per ounce, up from $2,034 per ounce in Q4 2023 [84] - The average realized price for molybdenum in Q4 2024 was $22.23 per pound, up from $20.66 per pound in Q4 2023 [84] - Average realized copper price per pound increased to $4.21 in 2024 from $3.85 in 2023 [87] - Gross profit per pound of molybdenum decreased to $2.04 in Q4 2024 from $2.48 in Q4 2023 [194] - Gross loss per pound of molybdenum was $0.39 in 2024, compared to a gross profit of $5.79 per pound in 2023 [198] Reserves and Assets - FCX's preliminary estimated consolidated recoverable proven and probable mineral reserves at December 31, 2024, include 97.0 billion pounds of copper, 23.0 million ounces of gold, and 3.16 billion pounds of molybdenum [54] - Total assets increased to $54.848 billion in 2024 from $52.506 billion in 2023, driven by growth in property, plant, and equipment [96] - Long-term debt increased to $8.907 billion in 2024 from $8.656 billion in 2023, indicating higher borrowing [96] - Restricted cash and cash equivalents decreased to $1.0 billion in 2024 from $1.3 billion in 2023, due to regulatory changes in Indonesia [96][99] - Total assets at December 31, 2024, were $54.848 billion, with Indonesia operations accounting for $27.309 billion [140] Segment Performance - North America Copper Mines generated $6,060 million in total revenues for the year ended December 31, 2024, with $180 million from unaffiliated customers and $5,880 million from intersegment sales [143] - South America Operations reported total revenues of $4,533 million for 2024, including $3,618 million from Cerro Verde and $915 million from other operations [143] - Indonesia Operations contributed $9,774 million in revenues for 2024, with $544 million from intersegment sales [143] - FCX's total operating income for 2024 was $6,864 million, with $5,622 million from Indonesia Operations and $1,471 million from South America Operations [143] - Capital expenditures for 2024 totaled $4,808 million, with $2,908 million allocated to Indonesia Operations and $1,033 million to North America Copper Mines [143] - North America Copper Mines revenues for Q4 2024 were $1.606 billion, with copper contributing $1.373 billion and molybdenum contributing $175 million [151] - Gross profit for North America Copper Mines in Q4 2024 was $183 million, with copper sales at 320 million recoverable pounds and molybdenum sales at 8 million recoverable pounds [151] - Unit net cash costs for copper in Q4 2024 were $3.04 per pound, while molybdenum unit net cash costs were $15.40 per pound [151] - North America Copper Mines revenues for Q4 2023 were $1.385 billion, with copper contributing $1.209 billion and molybdenum contributing $134 million [154] - Gross profit for North America Copper Mines in Q4 2023 was $128 million, with copper sales at 319 million recoverable pounds and molybdenum sales at 7 million recoverable pounds [154] - Unit net cash costs for copper in Q4 2023 were $2.86 per pound, while molybdenum unit net cash costs were $17.50 per pound [154] - North America Copper Mines revenues for the full year 2024 were $6.211 billion, with copper contributing $5.417 billion and molybdenum contributing $608 million [159] - Gross profit for North America Copper Mines in 2024 was $816 million, with copper sales at 1.263 billion recoverable pounds and molybdenum sales at 30 million recoverable pounds [159] - Unit net cash costs for copper in 2024 were $3.11 per pound, while molybdenum unit net cash costs were $16.20 per pound [159] - South America Operations revenues excluding adjustments were $1.312 billion for the three months ended December 31, 2024, with copper contributing $1.208 billion [167] - South America Operations gross profit was $314 million for the three months ended December 31, 2024, with copper accounting for $283 million [167] - South America Operations gross profit per pound of copper was $1.05 using the by-product method and $0.95 using the co-product method for the three months ended December 31, 2024 [167] - South America Operations revenues excluding adjustments were $1.175 billion for the three months ended December 31, 2023, with copper contributing $1.096 billion [170] - South America Operations gross profit was $181 million for the three months ended December 31, 2023, with copper accounting for $176 million [170] - South America Operations gross profit per pound of copper was $0.63 using the by-product method and $0.62 using the co-product method for the three months ended December 31, 2023 [170] - South America operations reported revenues of $5,171 million in 2024, with production and delivery costs of $3,230 million and DD&A of $446 million [174] - Other mining operations generated revenues of $26,406 million in 2024, with production and delivery costs of $18,012 million and DD&A of $1,737 million [174] - South America operations achieved gross profit of $1,492 million in 2024, with copper sales of 1,177 million recoverable pounds and gross profit per pound of $1.27 [174] - South America operations reported revenues of $4,941 million in 2023, with production and delivery costs of $3,239 million and DD&A of $459 million [177] - Other mining operations generated revenues of $24,166 million in 2023, with production and delivery costs of $16,406 million and DD&A of $1,545 million [177] - South America operations achieved gross profit of $1,241 million in 2023, with copper sales of 1,200 million recoverable pounds and gross profit per pound of $1.04 [177] - Indonesia operations product revenues for Q4 2024 were $2.492 billion, with copper contributing $1.543 billion and gold contributing $901 million [180] - Gross profit for Indonesia operations in Q4 2024 was $1.056 billion, with copper accounting for $638 million and gold for $396 million [180] - Copper sales in Q4 2024 were 376 million recoverable pounds, generating a gross profit of $2.81 per pound [180] - Gold sales in Q4 2024 were 343 thousand recoverable ounces, generating a gross profit of $1,153 per ounce [180] - Indonesia operations product revenues for Q4 2023 were $3.106 billion, with copper contributing $1.947 billion and gold contributing $1.108 billion [183] - Gross profit for Indonesia operations in Q4 2023 was $1.695 billion, with copper accounting for $1.054 billion and gold for $614 million [183] -