Freeport-McMoRan (FCX) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 operating performance, with copper sales up to 1.035 billion lbs (2% above guidance) and gold sales at 558,000 oz (17% above guidance), driving net income of $526 million and adjusted EBITDA of $2.7 billion.

• Operating cash flow reached $1.9 billion in Q3 2024, with net debt at $0.5 billion (excluding $3.2 billion for Indonesia downstream projects).

• Increased Cerro Verde ownership to 55.08% via a $210 million share purchase in September 2024, enhancing exposure to a high-quality asset.

• Advanced long-term growth initiatives, including leach technology, which increased incremental copper production by nearly 70% year-over-year for the first nine months, and continued progress on major brownfield expansions.

• Favorable copper market fundamentals driven by electrification and decarbonization trends, supporting a positive outlook.

Financial highlights

• Q3 2024 revenues were $6.79 billion, up from $5.82 billion in Q3 2023; operating income was $1.94 billion, and diluted EPS was $0.36.

• Adjusted EBITDA for Q3 2024 was $2.7 billion; operating cash flows were $1.9 billion; capital expenditures were $1.2 billion.

• Copper sales: 1.035 billion lbs at $4.30/lb; gold sales: 558,000 oz at $2,568/oz; molybdenum sales: 19 million lbs at $22.88/lb.

• Unit net cash costs for copper: $1.39/lb in Q3 2024, down $0.34/lb year-over-year and $0.32/lb below guidance; 2024 expected average is $1.58/lb.

• Net debt at September 30, 2024, was $0.5 billion, excluding $3.2 billion for Indonesia downstream projects; cash and equivalents were $5.0 billion.

Outlook and guidance

• 2024 consolidated sales volumes projected at 4.1 billion lbs copper, 1.8 million oz gold, and 80 million lbs molybdenum; Q4 2024 guidance: 980 million lbs copper, 340,000 oz gold, 20 million lbs molybdenum.

• 2024 unit net cash costs for copper expected to average $1.58/lb; Q4 2024 guidance is $1.72/lb.

• 2024 operating cash flows projected at $6.8 billion, with capital expenditures expected at $4.6 billion, including $2.2 billion for major mining projects and $1.0 billion for new downstream processing in Indonesia.

• Each $0.10/lb change in copper price impacts operating cash flow by $90 million in Q4 2024.

• Effective tax rate for 2024 is estimated at 36%.