PHOENIX--(BUSINESS WIRE)--
Freeport-McMoRan Inc. (NYSE: FCX) today announced it has undertaken a
comprehensive review of its operating plans in its mining and oil and
gas businesses to target significant additional reductions in capital
spending and operating and administrative costs in response to weak
market conditions for its major products. These plans will also
incorporate potential adjustments to mine plans and future copper and
molybdenum production volumes to reduce costs and preserve valuable
resources for anticipated improved market conditions in the future. The
company expects to complete this review promptly and will report its
revised plans during the third quarter of 2015.
James R. Moffett, FCX’s Chairman, Richard C. Adkerson, Vice Chairman
and Chief Executive Officer and James C. Flores, Vice Chairman and FM O&G
Chief Executive Officer, said, “We are responding aggressively to
current market conditions affecting our primary products and to the
uncertain global economic outlook. These initiatives are focused on
maximizing cash flow in a weak commodity environment and on
strengthening the company’s financial position. We appreciate the
efforts and dedication of our global organization who are supporting our
plans to implement revised operating plans. We have a positive long-term
view for our markets, the inherent values in our large asset base and
are positioning our company for long-term success.”
As previously reported, FCX has made substantial progress toward the
completion of its major mining development projects, which are expected
to result in increased near-term production, lower unit costs, declining
capital expenditures and growth in free cash flow over the next several
quarters and its oil & gas subsidiary filed a registration statement in
June 2015 related to a potential initial public offering representing a
minority interest in the entity. FCX has a broad set of natural resource
assets that provide many alternatives for future actions to enhance its
financial flexibility.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets, significant oil and
gas resources and a growing production profile. FCX is the world’s
largest publicly traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals district in
Indonesia, one of the world’s largest copper and gold deposits;
significant mining operations in the Americas, including the large-scale
Morenci minerals district in North America and the Cerro Verde operation
in South America; the Tenke Fungurume minerals district in the DRC; and
significant U.S. oil and natural gas assets in the Deepwater GOM,
onshore and offshore California and in the Haynesville natural gas
shale, and a position in the emerging Inboard Lower Tertiary/Cretaceous
natural gas trend onshore in South Louisiana. Additional information
about FCX is available on FCX’s website at “fcx.com.”
Cautionary Statement Regarding Forward-Looking Statements: This
press release contains forward-looking statements, which are all
statements other than historical facts, such as statements regarding
targeted reductions in capital spending and operating and administrative
costs and potential adjustments to mine plans and production volumes.
FCX cautions readers that forward-looking statements are not guarantees
of future performance and its actual results may differ materially from
those anticipated, projected or assumed in the forward-looking
statements. Important factors that can cause FCX’s actual results to
differ materially from those anticipated in the forward-looking
statements include commodity prices, production rates, industry risks,
regulatory changes, drilling results, weather- and climate-related risks
and other factors described in more detail under the heading “Risk
Factors” in FCX’s Annual Report on Form 10-K for the year ended December
31, 2014, filed with the U.S. Securities and Exchange Commission (SEC)
as updated by FCX’s subsequent filings with the SEC.
Investors are cautioned that many of the assumptions on which FCX’s
forward-looking statements are based are likely to change after its
forward-looking statements are made, including for example commodity
prices, which FCX cannot control, and production volumes and costs, some
aspects of which FCX may or may not be able to control. Further, FCX may
make changes to its business plans that could or will affect its
results. FCX cautions investors that it does not intend to update
forward-looking statements more frequently than quarterly
notwithstanding any changes in FCX’s assumptions, changes in business
plans, actual experience or other changes, and FCX undertakes no
obligation to update any forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150728006236/en/
Source: Freeport-McMoRan Inc.