Freeport-McMoRan Announces Program for Increased Cash Returns to Shareholders

About this update from Freeport-mcmoran, Inc.

[{"type":"text","content":"PHOENIX / Nov 01, 2021 / Business Wire / Freeport-McMoRan Inc. (NYSE: FCX) announced today that its Board of Directors (“Board”) has approved a new share repurchase program authorizing repurchases of up to $3.0 billion of FCX common stock. The Board also approved the addition of a variable cash dividend on common stock for 2022 at an expected annual rate of $0.30 per share. The combined annual rate of the base dividend and the variable dividend is expected to total $0.60 per share. The Board intends to declare quarterly dividends for 2022 of $0.15 per share (including the $0.075 variable component), with the initial quarterly dividend expected to be paid on February 1, 2022. Based on current shares outstanding totaling 1.47 billion, the total common stock dividend (base and variable) expected to be paid approximates $0.9 billion per annum. As previously reported on February 2, 2021, the Board adopted a financial policy for the allocation of cash flows aligned with FCX’s strategic objectives of maintaining a strong balance sheet and increasing cash returns to shareholders while advancing opportunities for future growth. The combined base dividend, variable dividend and share repurchases are designed to achieve the objectives of this performance-based payout framework. Richard C. Adkerson, Chairman and Chief Executive Officer, said: “With the recent achievement of our net debt target, strong execution of operating plans and favorable market conditions for our products, we are pleased to commence implementation of our performance-based payout framework. These actions allow us to return a designated portion of our cash flow to shareholders efficiently while maintaining a strong balance sheet and providing substantial resources and capacity for investments in our long-term future.” Cash returns to shareholders will be administered in accordance with the previously announced performance-based payout framework whereby up to 50 percent of cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects. FCX’s payout framework is designed to maintain its net debt at a level not to exceed the range of $3.0 billion to $4.0 billion (excluding project debt for additional smelting capa...

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