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Released January 29, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Freeport-McMoRan Incorporated (NYSE:FCX) (FCX) (Phoenix, Arizona) seems to have weathered the economic storm wrought by the COVID-19 pandemic and a sharp drop in copper prices in early 2020. The global copper miner reported net income of $708 million in fourth-quarter 2020, up from $9 million in fourth-quarter 2019.
FCX's capital expenditures are expected to be $2.3 billion for 2021, up from $2 billion in 2020. The company had slashed $800 million from its planned capital expenditures for last year amid the pandemic and a plunge in first-quarter 2020 copper prices. For more information, see April 27, 2020, article - Mining Company Freeport-McMoRan Cuts $800 Million Capex After Copper Price Plunge.
The capital guidance for 2021 is about $100 million higher than FCX's previous forecast and includes an acceleration of some mining equipment investments, company executives said.
Industrial Info is tracking more than $10 billion worth of active Metals & Minerals Industry projects by FCX.
Click on the image at right for a graph showing Freeport-McMoRan project activity by country.
"It's been a head-spinning year when we think back to March and April, and all of the challenges we were facing at that point," said Chief Executive Officer Richard Adkerson during the company's earnings conference call with industry analysts on Tuesday.
The company saw an increase in copper prices in late 2020, "in recognition of copper's favorable demand trends and the limited ability of the industry to increase supply," Adkerson said. "The recent price move is significant, but note that prices are still lower than they were just over 10 years ago or almost 10 years ago."
He added: "Arguably, the fundamental outlook for copper today is better than it was 10 years ago. China is leading the recovery, and global stimulus measures in countries around the world are also being positive for growth in copper demand."
Consolidated sales for 2020 included 3.2 billion pounds of copper, 855,000 ounces of gold and 80 million pounds of molybdenum. The company expects consolidated sales for 2021 to amount to 3.8 billion pounds of copper, 1.3 million ounces of gold and 85 million pounds of molybdenum.
FCX passed some significant project milestones last year, including the completion of its $850 million Lone Star above-ground copper mine project in Arizona. Located seven miles from the company's Safford mine, the project has reserves of 4.4 billion pounds of copper. Production from Lone Star is expected to exceed 200 million pounds of copper this year. For more information, see Industrial Info's project report.
FCX said it plans to advance studies for potential expansions and long-term development options for its large-scale copper sulfide resources at Lone Star.
FCX operates seven open-pit copper mines in North America. After suspending operations last year at its Chino copper mine in New Mexico because of the spread of COVID-19, the company restarted mining activities at the facility this month, at a reduced rate of about 100 million pounds of copper per year, or about 50% capacity.
The company has earmarked about $1.4 billion in capital expenditures this year for projects related to underground development in Indonesia's Grasberg minerals district. FCX has a 48.76% interest in PT Freeport Indonesia (PT-FI), which operates one of the world's largest copper and gold mines in Papua, Indonesia. PT-FI expects production for 2021 to reach 1.4 billion pounds of copper and 1.4 million ounces of gold, which is nearly double 2020 levels.
Industrial Info is tracking three FCX/PT-FI copper smelter projects, worth $4.3 billion, in Gresek, Indonesia. PT-FI said smelter development in Gresek has been delayed as a result of COVID-19-related work disruptions and restrictions.
"Accordingly, during 2020, PT-FI notified the Indonesia government of delays in achieving the completion timeline of December 2023," FCX said. "PT-FI continues to discuss with the Indonesia government a deferred schedule for the project as well as other alternatives in light of the ongoing COVID-19 pandemic and volatile global economic conditions." For more information, see Industrial Info's project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
FCX's capital expenditures are expected to be $2.3 billion for 2021, up from $2 billion in 2020. The company had slashed $800 million from its planned capital expenditures for last year amid the pandemic and a plunge in first-quarter 2020 copper prices. For more information, see April 27, 2020, article - Mining Company Freeport-McMoRan Cuts $800 Million Capex After Copper Price Plunge.
The capital guidance for 2021 is about $100 million higher than FCX's previous forecast and includes an acceleration of some mining equipment investments, company executives said.
Industrial Info is tracking more than $10 billion worth of active Metals & Minerals Industry projects by FCX.
"It's been a head-spinning year when we think back to March and April, and all of the challenges we were facing at that point," said Chief Executive Officer Richard Adkerson during the company's earnings conference call with industry analysts on Tuesday.
The company saw an increase in copper prices in late 2020, "in recognition of copper's favorable demand trends and the limited ability of the industry to increase supply," Adkerson said. "The recent price move is significant, but note that prices are still lower than they were just over 10 years ago or almost 10 years ago."
He added: "Arguably, the fundamental outlook for copper today is better than it was 10 years ago. China is leading the recovery, and global stimulus measures in countries around the world are also being positive for growth in copper demand."
Consolidated sales for 2020 included 3.2 billion pounds of copper, 855,000 ounces of gold and 80 million pounds of molybdenum. The company expects consolidated sales for 2021 to amount to 3.8 billion pounds of copper, 1.3 million ounces of gold and 85 million pounds of molybdenum.
FCX passed some significant project milestones last year, including the completion of its $850 million Lone Star above-ground copper mine project in Arizona. Located seven miles from the company's Safford mine, the project has reserves of 4.4 billion pounds of copper. Production from Lone Star is expected to exceed 200 million pounds of copper this year. For more information, see Industrial Info's project report.
FCX said it plans to advance studies for potential expansions and long-term development options for its large-scale copper sulfide resources at Lone Star.
FCX operates seven open-pit copper mines in North America. After suspending operations last year at its Chino copper mine in New Mexico because of the spread of COVID-19, the company restarted mining activities at the facility this month, at a reduced rate of about 100 million pounds of copper per year, or about 50% capacity.
The company has earmarked about $1.4 billion in capital expenditures this year for projects related to underground development in Indonesia's Grasberg minerals district. FCX has a 48.76% interest in PT Freeport Indonesia (PT-FI), which operates one of the world's largest copper and gold mines in Papua, Indonesia. PT-FI expects production for 2021 to reach 1.4 billion pounds of copper and 1.4 million ounces of gold, which is nearly double 2020 levels.
Industrial Info is tracking three FCX/PT-FI copper smelter projects, worth $4.3 billion, in Gresek, Indonesia. PT-FI said smelter development in Gresek has been delayed as a result of COVID-19-related work disruptions and restrictions.
"Accordingly, during 2020, PT-FI notified the Indonesia government of delays in achieving the completion timeline of December 2023," FCX said. "PT-FI continues to discuss with the Indonesia government a deferred schedule for the project as well as other alternatives in light of the ongoing COVID-19 pandemic and volatile global economic conditions." For more information, see Industrial Info's project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
