Freeport-McMoRan Provides Update
Freeport-McMoRan Inc. (NYSE: FCX) today provided an update on its second quarter operational and financial performance and ongoing response to the COVID-19 pandemic.
In April 2020, FCX (“the Company”) announced revised operating plans in response to the global COVID-19 pandemic and resulting negative impact on the global economy. The Company is executing the revised operating plans in an effective manner while prioritizing the health and well-being of its employees, their families and communities.
Prioritizing Health and Safety. FCX has proactively implemented operating protocols at each of its operating sites to contain and mitigate the risk of spread of COVID-19. The Company also continues to work closely with communities where it operates across the globe and has provided monetary support and in-kind contributions of medical supplies, equipment and food.
Execution of April 2020 Revised Operating Plans. FCX’s 2020 revised operating plans are focused on safeguarding its business in an uncertain public health and economic environment, advancing the ramp-up of underground production at Grasberg to establish large-scale, low-cost copper and gold production, and advancing initiatives in the Americas to position FCX for significant increases in cash flows in 2021 and beyond.
During the second quarter, FCX met or exceeded several key performance targets included in its April 2020 revised operating plans. Second-quarter 2020 copper sales are expected to exceed the April 2020 estimate of 690 million pounds by approximately 8 percent and gold sales are expected to exceed the April 2020 estimate of 165 thousand ounces by approximately 10 percent.
North America. The revised operating plans were effectively implemented across FCX’s North America operating sites and production, costs and capital management were in line or better than forecast. The Lone Star project is substantially complete and on track to produce approximately 200 million pounds of copper per annum beginning in the second half of 2020.
South America. Significant progress was achieved at Cerro Verde during the second quarter to restore operations following COVID-19 restrictions imposed by the Peruvian government in March 2020. Strict health protocols have been implemented and a plan for Cerro Verde was approved by the Peruvian government in second quarter 2020. During June, Cerro Verde mill operations averaged 315,000 metric tons of ore per day, approximately 80 percent of the 2019 annual average. Cerro Verde’s operating rates are in line with the April 2020 operating plan. FCX is continuing to operate El Abra consistent with its April 2020 operating plan while closely monitoring public health conditions in Chile.