Freeport-McMoRan (FCX) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income attributable to common stockholders was $616 million ($0.42 per share), with adjusted net income of $667 million ($0.46 per share), driven by higher copper and gold prices and lower interest expense.

• Revenues reached $6.62 billion in Q2 2024, up from $5.74 billion in Q2 2023, with strong margins and cash flows despite Indonesian shipping delays, which have since normalized.

• The Indonesian smelter project reached commissioning, with full ramp-up and precious metals refinery completion expected by year-end 2024.

• Innovative leach initiative nearly doubled incremental copper production year-over-year, with plans to scale further and lower U.S. unit costs.

• Disciplined capital allocation maintained, with $500M distributed to shareholders YTD and a robust balance sheet.

Financial highlights

• Q2 2024 revenues: $6.6B; operating income: $2.05B; operating cash flow: $2.0B; adjusted EBITDA: $2.7B; net income: $616M; diluted EPS: $0.42.

• Q2 2024 copper sales: 931M lbs; gold sales: 361K oz; copper realization: $4.48/lb; gold realization: $2,299/oz.

• Operating cash flows for H1 2024: $3.85B; capital expenditures: $2.4B, including $0.9B for mining projects and $0.7B for downstream facilities.

• Net debt at June 30, 2024: $0.3B, excluding $3.0B for new downstream facilities; strong liquidity with $5.3B in cash and $3.0B available under credit facility.

• Distributed $500M to shareholders YTD, including dividends and share repurchases.

Outlook and guidance

• 2024 consolidated sales guidance: 4.1B lbs copper, 1.8M oz gold, 82M lbs molybdenum; Q3 2024 sales expected: 1.0B lbs copper, 475K oz gold, 20M lbs molybdenum.

• 2024 consolidated unit net cash costs for copper expected to average $1.63/lb; Q3 2024 guidance is $1.71/lb.

• Estimated 2024 operating cash flows of $7.2B and capital expenditures of $4.7B.

• Capital expenditures for 2024 forecast at $4.7B, including $2.3B for mining projects and $1.0B for Indonesian downstream facilities.

• Effective tax rate for 2024 estimated at 36%.