Highlights of Revised Operating Plans:
|$1.3 billion reduction (~18 percent) in 2020 estimated operating costs|
|$800 million reduction (~30 percent) in 2020 estimated capital expenditures|
|$100 million reduction (~20 percent) in 2020 estimated exploration and administrative costs|
|~400 million pound reduction (~15 percent) in the Americas 2020 estimated copper sales volumes|
|Actions enhance outlook for cash generation and maintenance of strong liquidity at low prices|
Freeport-McMoRan Inc. (NYSE: FCX) announced today its first-quarter 2020 financial results and revised operating plans in response to the global COVID-19 pandemic and resulting negative
impact on the global economy.
FCX’s revised operating plans are designed to protect the health and well-being of its employees, their
families and communities where they live, ensure safe and reliable operations to serve customers, and protect the company’s strong liquidity position through reductions in costs and capital spending while preserving the long-term value of the company’s assets.
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. A series of actions have been implemented, including, but not limited to, physical distancing, travel restrictions, sanitizing, and frequent health screening and monitoring. FCX is also incorporating testing procedures administered by medical providers at many of its facilities. In April 2020, FCX suspended operations at its Chino copper mine in New Mexico because of the spread of COVID-19 among a limited number of employees.
FCX’s protocols have been effective in mitigating and preventing a major outbreak of
COVID-19 at its operating sites. As the COVID-19 pandemic and related effects continue to evolve rapidly worldwide, FCX will continue to monitor, assess and update its COVID-19 related response, as needed.
FCX is also working closely with communities where it operates across the globe and has provided
monetary support and in-kind contributions of medical supplies and food.
Richard C. Adkerson, President and Chief Executive Officer, said, “Our global team is
demonstrating an effective response to protect the health of our workforce, provide for business continuity and support our communities during this unprecedented challenge. The prudent steps we are taking to safeguard our business, address costs and capital spending, and preserve our strong liquidity position are necessary to protect long-term asset values in the current weak and uncertain economic environment and to position us to ramp up and resume normal operations safely and quickly as health and economic conditions improve. Our team has substantial experience in successfully executing under volatile market conditions.”
He added, “I am confident that we will overcome the current challenges and ‘prove our mettle’ as we have effectively done in previous periods of economic weakness. We continue to achieve important progress in establishing large-scale, low-cost copper and gold production from our underground ore bodies at Grasberg and advance initiatives in the Americas to position FCX for significant increases in cash flows in 2021 and beyond.”
Full press release can be accessed here.