Freeport-McMoRan (FCX) Q4 2024 earnings summary

Executive summary

• 2024 copper and gold sales exceeded guidance, with unit net cash costs below expectations and strong operational execution, resulting in a robust financial position.

• Adjusted EBITDA reached $10 billion, up 14% year-over-year, and operating cash flow was $7.2 billion, a 35% increase from 2023.

• Net debt stood at $1.06 billion (excluding $3.2 billion for Indonesian downstream projects), reflecting a strong balance sheet.

• Major projects advanced, including the start-up of the Indonesia precious metals refinery and ongoing smelter repairs, with full ramp-up expected by mid-2025.

• Long-term copper market fundamentals remain favorable, driven by electrification and infrastructure demand.

Financial highlights

• 2024 copper sales: 4.1 billion lbs; gold sales: 1.84 million ozs; molybdenum sales: 78 million lbs.

• Average realized prices: $4.21/lb copper, $2,418/oz gold, $21.77/lb molybdenum.

• Adjusted EBITDA: $10.0 billion (up from $8.8 billion in 2023); operating cash flow: $7.2 billion (up from $5.3 billion in 2023).

• Net income attributable to common stock: $1.9 billion for 2024; diluted EPS: $1.30.

• Capital expenditures (excluding smelter projects): $3.6 billion in 2024.

Outlook and guidance

• 2025 copper sales expected at 4.0 billion lbs, gold at 1.6 million ozs, and molybdenum at 88 million lbs.

• 2025 consolidated unit net cash costs forecast at $1.60/lb, with site production and delivery costs at $2.60/lb.

• Operating cash flow projected at $6.2 billion in 2025 at $4.00/lb copper; each $0.10/lb copper price change impacts cash flow by $375 million.

• Capital expenditures for 2025 (excluding downstream projects) estimated at $4.4 billion.

• Grasberg in Indonesia expects downtime in Q1 2025 for mill repairs; smelter recovery on track for mid-2025 restart.