Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Q3 2024 Earnings Presentation
28 slides from Freeport-mcmoran's earnings presentation, Oct 22, 2024
Slide 1: FCX Conference Call 3rd Quarter 2024 Results
FCX Conference Call 3rd Quarter 2024 Results October 22, 2024 fcx.com 1
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements in which FCX discusses its potential future performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating t
Slide 3: Highlights
Highlights 3Q24 July • Solid operating performance Key Stats Actual Estimates o Copper sales 2% above guidance Copper Sales (mm lbs) 1,035 1,010 Gold Sales (k ozs) 558 475 o Gold sales 17% above guidance Unit Net Cash Costs ($/lb) $1.39 $1.71 o Unit net cash costs 34¢/lb below 3Q23; 32¢/lb below gui
Slide 4: Copper Market Commentary
Copper Market Commentary Inventories Cu Price (metric tons) ($/lb) Copper Prices ($/lb) 1,500,000 $5.00 3Q Avg YTD Avg* Oct. Avg* LME Copper LME Settlement $4.18 $4.16 $4.36 Settlement Price 1,250,000 $4.50 COMEX $4.23 $4.23 $4.42 1,000,000 $4.00 • U.S. - Strong demand in power cable and building wi
Slide 5: 3Q 2024 Operations Update
3Q 2024 Operations Update North America South America Indonesia Cu Sales: 316 mm lbs Cu Sales: 293 mm lbs Cu Sales: 426 mm lbs Unit Net Cash Costs: $3.24/lb Unit Net Cash Costs: $2.44/lb* Au Sales: 554 k ozs Unit Net Cash Credits: 71¢/lb Cerro Verde • Driving initiatives on asset efficiency, • Mill
Slide 6: Indonesia Downstream Processing Update
Indonesia Downstream Processing Update • Start-up activities commenced in 3Q24 New Smelter October 19, 2024 • Fire incident on October 14th in gas cleaning facility o No injuries o Damaged infrastructure for production of sulfuric acid o Damage and root cause assessments being conducted • Smelter op
Slide 7: Americas Leach Innovation Initiatives
Americas Leach Innovation Initiatives Low Cost, High Value Targeting Copper in Stockpiles Unrecoverable by Traditional Leach Methods with Precision Operating Techniques Scaling the Opportunity Significant Potential Long-term Production Target (mm lbs) 39 bn lbs Contained * ~800 mm lbs/annum 58 55 51
Slide 8: Project Pipeline Progress Report
Project Pipeline Progress Report New Leach Bagdad Lone Star El Abra Grasberg Technologies Expansion Expansions Expansion District Americas Arizona Arizona Chile Indonesia o Sustaining initial target o Targeting investment o Commenced pre- o Preparing EIS, targeting o Kucing Liar project in of ~200 m
Slide 9: Annual Sales Profile
Annual Sales Profile October 2024 Estimate Copper 5.0 Gold 2 1.7 1.8 Sales 4.3 Sales 1.5 1.5 4.2 (billion lbs) 4.1 4.1 (million ozs) 4.0 1 0 3.0 2023 2024e 2025e 2026e NOTE: Consolidated gold sales include 808k ozs in 2023, 929k ozs in 2024e, 770k ozs in 2025e and 770k ozs in 2026e for noncontrollin
Slide 10: EBITDA and Cash Flow at Various Copper Prices
EBITDA and Cash Flow at Various Copper Prices Assuming $2,600/oz gold, $20/lb molybdenum ($ in bns except copper, gold and molybdenum prices) Sensitivities Average ’25e/’26e (US$ in mms) EBITDA $16 EBITDA $12 Copper +/-$0.10/lb $420 Molybdenum +/-$1.00/lb $ 80 $8 Gold +/-$50/oz $ 75 $4 Average Curre
Slide 11: Consolidated Capital Expenditures
Consolidated Capital Expenditures Excluding Indonesia Downstream Projects CAPEX (1) ($ in bns) $4.2 $3.6 Discretionary $3.1 Discretionary $1.5 Discretionary $1.0 Major $0.6 Projects Planned Planned $1.7(2) Planned (2) (2) $1.1 $1.2 (2) $1.2 Other Other Other $1.3 $1.4 $1.6 2023 2024e 2025e (1) Const
Slide 12: Financial Policy: Performance-Based Payout Framework
Financial Policy: Performance-Based Payout Framework ~50% free cash flow(1) for shareholder returns Maintaining Strong Providing Cash Returns Advancing Organic Balance Sheet to Shareholders Growth Opportunities • Strong credit metrics $4.5 bn Distributed • Positioned for future growth • Investment G
Slide 13: Executing Clearly Defined Strategy Focused On Copper
Executing Clearly Defined Strategy Focused On Copper Responsible Long-lived Organic producer of scale reserves growth options Cash returns to Experienced Solid balance shareholders management team sheet 13 13
Slide 14: Reference Slides
Reference Slides FREEPORT FOREMOST IN COPPER
Slide 15: Financial Highlights
Financial Highlights Sales Data 3Q24 3Q23 Copper Consolidated Volumes, excluding purchases (mm lbs) 1,035 1,109 Average Realization (per lb) $ 4.30 $ 3.80 Site Production & Delivery Costs (per lb) $ 2.61 $ 2.27 Unit Net Cash Costs (per lb) $ 1.39 (1) $ 1.73 Gold Consolidated Volumes (000’s ozs) 558
Slide 16: 3Q 2024 Mining Operating Summary
3Q 2024 Mining Operating Summary Sales From Mines for 3Q24 by Region North America South America (2) Indonesia (3) 554 426 430 372 395 316 293 307 (1) (1) 19 20 Cu Mo Au mm lbs mm lbs 000 ozs 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 North South 3Q24 Unit Net Cash Costs / (Credits) (per lb o
Slide 17: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Attractive Debt Maturity Profile (US$ bns) $8 Total Debt & Cash at 9/30/24 Significant liquidity PT-FI Revolver $ 0.3 ▪ $5.0 bn in consolidated cash and cash equiv. FCX/FMC Senior Notes/Other 6.4 PT-FI Senior Notes 3.0 ▪ $3.0 bn in availability under FCX credit fac
Slide 18: 2024e Outlook
2024e Outlook Sales Unit Net Cash Operating Capital Outlook Cost of Copper Cash Flows (1,4) Expenditures • Copper: 4.1 billion lbs • Site prod. & delivery • ~$6.8 billion @ $4.25/lb • $3.6 billion (excluding o 2024e: $2.48/lb copper in 4Q24e downstream projects) • Gold: 1.8 million ozs o 4Q24e: $2.4
Slide 19: 2024e Operational Data
2024e Operational Data 2024e Sales by Region North America South America Indonesia(2) 1,645 1,240 1,170 1.8 (3) 80 (1) Cu Mo Cu Cu Au mm lbs mm lbs mm lbs mm lbs mm ozs North South 2024e Unit Net Cash Costs / (Credits) (4) America America Indonesia Consolidated Site Production & Delivery (5) (per lb
Slide 20: 2024e Quarterly Sales
2024e Quarterly Sales Copper 1200 1,108 Gold 600 568 558 Sales 1,035 Sales 450 361 340 (million lbs) 980 (thousand ozs) 1000 931 300 150 800 0 1Q24 2Q24 3Q24 4Q24e NOTE: Consolidated gold sales include 289k ozs in 1Q24, 183k ozs in 2Q24, 283k ozs in 600 3Q24 and 174k ozs in 4Q24e for noncontrolling
Slide 21: Grasberg Minerals District Mine Plan Metal Production, 2023 – 2028e
Grasberg Minerals District Mine Plan Metal Production, 2023 – 2028e Copper 2024e – 2028e Gold 2024e – 2028e Total: 8.4 billion lbs copper Total: 7.9 million ozs gold Annual Average: ~1.7 billion lbs Annual Average: ~1.6 million ozs 2.0 1.9 1.8 1.7 1.7 1.7 1.6 1.6 1.6 1.5 1.5 1.4 Cu Au bn mm lbs ozs
Slide 22: PT-FI's IUPK Extension Update
PT-FI’s IUPK Extension Update Plan View Potential beyond 2041 • Government issued regulation in 2Q24 to allow life-of-mine extension Mineral Resources Potential/Exploration Targets • Conditions for IUPK holders include o Ownership of integrated downstream facilities that have entered the operational
Slide 23: Discretionary Capital Projects
Discretionary Capital Projects* Kucing Liar Lone Star Oxide Expansion ● Commenced 10-year mine development in 2022 ● Low capital intensity investment ● Sustain large-scale, low-cost Cu & Au production ● Capital investment: ~$300 mm (~$65 mm in 2024e) ● Capital investment: ~$400 mm/yr average ● Incre
Slide 24: Bagdad 2X Expansion Update
Bagdad 2X Expansion Update • Operation located in northwest Arizona • Reserve life exceeds 80 years • Converting existing manned haul truck fleet to 100% autonomous • Completed technical studies in late 2023 to double concentrator capacity – Expected to expand concentrator capacity by ~90-105k t/d –
Slide 25: Autonomous Haulage at Bagdad
Autonomous Haulage at Bagdad • Bagdad expected to become first U.S. mine with a fully autonomous haulage system • Converting existing manned fleet to 100% autonomous – ~30 trucks – CAPEX ~$65 mm – Target completion YE 2025 • Potential for efficiency gains / productivity improvements • Emissions redu
Slide 26: Combined Cycle Gas Turbine Power Plant at Grasberg
Combined Cycle Gas Turbine Power Plant at Grasberg Offshore • Completed feasibility study to replace existing coal plant LNG Carrier at Grasberg with 265MW gas-fired combined LNG transfer cycle facility Floating Storage & Regas Unit (FSRU) • ~$1 bn project (incremental ~$0.4 bn compared to Subsea ga
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 9 mos ended ($ in mm) 3Q24 3Q23 9/30/24 Net income attributable to common stock $526 $454 $1,615 Interest expense, net 72 96 249 Income tax provision 737 508 2,003 Depreciation, depletion and amortization 600 533 1,704 Accretion and stock-based compensation 51 51 187 (
Slide 28: Foremost in Copper
FOREMOST IN COPPER