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, supported by strong copper pricing and operational execution.

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

• Shipping delays in Indonesia due to export license renewals impacted Q2 sales, but licenses were renewed July 2, 2024, and normal schedules resumed.

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

Financial highlights

• Q2 2024 revenues were $6.6 billion, up from $5.7 billion in Q2 2023; operating income was $2.05 billion, up from $1.41 billion; diluted EPS was $0.42.

• Operating cash flows were $2.0 billion in Q2 2024 and $3.9 billion for the first half of 2024.

• Adjusted EBITDA for Q2 2024 was $2.7 billion; net debt was $0.3 billion, excluding $3.0 billion for Indonesian downstream projects.

• Q2 2024 average realized prices: copper $4.48/lb, gold $2,299/oz, molybdenum $21.72/lb.

• Capital expenditures totaled $1.1 billion in Q2 2024, including $0.4 billion for mining projects and $0.3 billion for the new Indonesian smelter and PMR.

Outlook and guidance

• 2024 consolidated sales volumes projected at 4.1 billion lbs copper, 1.8 million oz gold, and 82 million lbs molybdenum.

• Q3 2024 sales guidance: 1.0 billion lbs copper, 475,000 oz gold, 20 million lbs molybdenum.

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

• Full-year 2024 operating cash flows projected at $7.2 billion, with capital expenditures forecast at $4.7 billion.

• Modeled annual EBITDA for 2025–2026 ranges from $11 billion at $4/lb copper to $15 billion at $5/lb copper.