Freeport-McMoRan (FCX) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with $2.7B EBITDA, $1.9B operating cash flow, and net income of $526M, driven by higher copper and gold sales and favorable unit cash costs.

• Copper and gold sales volumes exceeded guidance, with copper up 2% and gold up 17% over estimates; unit net cash costs were below prior guidance and year-over-year.

• Increased Cerro Verde ownership to 55.08% through a $210M share purchase, enhancing exposure to a high-quality asset.

• Advanced organic growth initiatives, including leach technology and major brownfield projects, supporting long-term production growth.

• Maintained a strong financial position and positive outlook for copper demand, underpinned by electrification and infrastructure investments.

Financial highlights

• Q3 2024 revenues were $6.8B, net income $526M, diluted EPS $0.36, and adjusted EBITDA $2.7B; operating cash flows were $1.9B.

• Copper sales: 1.035B lbs at $4.30/lb; gold sales: 558k oz at $2,568/oz; molybdenum sales: 19M lbs at $22.88/lb.

• Unit net cash costs for copper: $1.39/lb in Q3, expected $1.58/lb for 2024; Q4 guidance is $1.72/lb.

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

• Capital expenditures for 2024 expected at $4.6B, including $2.2B for mining projects and $1.0B for Indonesia downstream facilities.

Outlook and guidance

• 2024 sales guidance: 4.1B lbs copper, 1.8M oz gold, 80M lbs molybdenum; Q4 2024: 980M lbs copper, 340k oz gold, 20M lbs molybdenum.

• 2024 operating cash flows projected at $6.8B, assuming Q4 average copper price of $4.25/lb.

• U.S. unit costs expected to trend lower in 2025 as efficiency and leach initiatives scale.

• Long-term copper market expected to remain tightly balanced, with robust demand from electrification and infrastructure.

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