Freeport-McMoRan Reports Fourth-Quarter and Year Ended 2019 Results
PHOENIX–(BUSINESS WIRE)–Freeport-McMoRan Inc. (NYSE:FCX):
- Net income attributable to common stock totaled $9 million, less than $0.01 per share, in fourth-quarter 2019. After adjusting for net charges of $22 million, $0.02 per share, fourth-quarter 2019 adjusted net income attributable to common stock totaled $31 million, or $0.02 per share.
- Consolidated sales totaled 906 million pounds of copper, 317 thousand ounces of gold and 22 million pounds of molybdenum in fourth-quarter 2019, and 3.3 billion pounds of copper, 991 thousand ounces of gold and 90 million pounds of molybdenum for the year 2019.
- Consolidated sales for the year 2020 are expected to approximate 3.5 billion pounds of copper, 0.8 million ounces of gold and 88 million pounds of molybdenum, including 725 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum in first-quarter 2020. Sales are expected to increase to 4.3 billion pounds of copper and 1.4 million ounces of gold in 2021.
- Average realized prices in fourth-quarter 2019 were $2.74 per pound for copper, $1,491 per ounce for gold and $11.65 per pound for molybdenum.
- Average unit net cash costs in fourth-quarter 2019 were $1.67 per pound of copper and $1.74 per pound of copper for the year 2019. Unit net cash costs are expected to average $1.75 per pound of copper for the year 2020.
- Operating cash flows totaled $170 million in fourth-quarter 2019 and $1.5 billion (including $349 million of working capital and other sources) for the year 2019. Based on current sales volume and cost estimates, and assuming average prices of $2.85 per pound for copper, $1,500 per ounce for gold and $10.00 per pound for molybdenum, operating cash flows are expected to approximate $2.4 billion (including $0.2 billion of working capital and other sources) for the year 2020.
- Capital expenditures totaled $0.7 billion (including approximately $0.4 billion for major projects) in fourth-quarter 2019 and $2.65 billion (including approximately $1.5 billion for major projects) for the year 2019. Capital expenditures for the year 2020 are expected to approximate $2.8 billion, including $1.8 billion for major projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and completion of the Lone Star copper leach project in Arizona, and exclude estimates associated with the new smelter in Indonesia. FCX expects capital expenditures for the development of the new smelter in Indonesia to approximate $0.5 billion in 2020, of which approximately 49 percent will be attributable to FCX’s equity interest.
- During fourth-quarter 2019, FCX generated $452 million in proceeds from asset sales associated with the previously announced sales of a portion of its Freeport Cobalt business and its interest in the lower zone of the Timok exploration project.
- At December 31, 2019, consolidated debt totaled $9.8 billion and consolidated cash totaled $2.0 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at December 31, 2019.
- On December 18, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on February 3, 2020.
Freeport-McMoRan Inc. (NYSE:FCX) reported net income (loss) attributable to common stock of $9 million (less than $0.01 per share) in fourth-quarter 2019 and $(239) million ($(0.17) per share) for the year 2019. After adjusting for net charges of $22 million ($0.02 per share), primarily reflecting net charges at PT-FI (mostly for historical contested tax audits) and metals inventory adjustments, partly offset by gains on sales of assets, adjusted net income attributable to common stock totaled $31 million ($0.02 per share) in fourth-quarter 2019. For additional information, refer to the supplemental schedule, “Adjusted Net Income,” on page VII, which is available on FCX’s website, “fcx.com.”
Richard C. Adkerson, President and Chief Executive Officer, said, “During 2019, we progressed three major initiatives to enhance future cash flows and value for our shareholders. We are on schedule to establish large-scale production from our high-grade, low-cost and long-lived underground ore bodies at Grasberg; the Lone Star project in Arizona is nearing completion; and early results from our innovation initiatives to enhance productivity at our operations in the Americas are positive. Combined, these initiatives are expected to strengthen our cost position, future cash flows and long-term value for our shareholders, further advancing Freeport as foremost in the global copper industry. We are laser focused on execution of these plans designed to increase copper and gold sales by more than 30 percent, reduce unit net cash costs by approximately 25 percent and more than double operating cash flows in 2021 from 2019 levels.”
SUMMARY FINANCIAL DATA
|
Three Months Ended |
|
Years Ended |
|
|||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|||||||||
|
(in millions, except per share amounts) |
|
|||||||||||||||
Revenuesa,b |
$ |
3,911 |
|
|
$ |
3,684 |
|
|
$ |
14,402 |
|
|
$ |
18,628 |
|
|
|
Operating incomea |
$ |
775 |
|
|
$ |
316 |
|
|
$ |
1,091 |
|
|
$ |
4,754 |
|
|
|
Net income (loss) from continuing operations |
$ |
42 |
|
|
$ |
374 |
|
|
$ |
(192 |
) |
|
$ |
2,909 |
|
|
|
Net income (loss) attributable to common stockc,d |
$ |
9 |
|
|
$ |
485 |
|
|
$ |
(239 |
) |
|
$ |
2,602 |
|
|
|
Diluted net income (loss) per share of common stock: |
|
|
|
|
|
|
|
|
|||||||||
Continuing operations |
$ |
— |
|
|
$ |
0.33 |
|
|
$ |
(0.17 |
) |
|
$ |
1.79 |
|
|
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(0.01 |
) |
|
|||||
|
$ |
— |
|
|
$ |
0.33 |
|
|
$ |
(0.17 |
) |
|
$ |
1.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted-average common shares outstanding |
1,457 |
|
|
1,457 |
|
|
1,451 |
|
|
1,458 |
|
|
|||||
Operating cash flowse |
$ |
170 |
|
|
$ |
(62 |
) |
|
$ |
1,482 |
|
|
$ |
3,863 |
|
|
|
Capital expenditures |
$ |
735 |
|
|
$ |
580 |
|
|
$ |
2,652 |
|
|
$ |
1,971 |
|
|
|
At December 31: |
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents |
$ |
2,020 |
|
|
$ |
4,217 |
|
|
$ |
2,020 |
|
|
$ |
4,217 |
|
|
|
Total debt, including current portion |
$ |
9,826 |
|
|
$ |
11,141 |
|
|
$ |
9,826 |
|
|
$ |
11,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
a. |
For segment financial results, refer to the supplemental schedules, “Business Segments,” beginning on page X, which are available on FCX’s website, “fcx.com.” |
||||||||||||||||
b. |
Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $33 million ($14 million to net income attributable to common stock or $0.01 per share) in fourth-quarter 2019, $(32) million ($(15) million to net income attributable to common stock or $(0.01) per share) in fourth-quarter 2018, $58 million ($24 million to net loss attributable to common stock or $0.02 per share) for the year 2019 and $(70) million ($(31) million to net income attributable to common stock or $(0.02) per share) for the year 2018. For further discussion, refer to the supplemental schedule, “Derivative Instruments,” beginning on page IX, which is available on FCX’s website, “fcx.com.” |
||||||||||||||||
c. |
Includes net (charges) gains of $(22) million ($(0.02) per share) in fourth-quarter 2019, $324 million ($0.22 per share) in fourth-quarter 2018, $(275) million ($(0.19) per share) for the year 2019 and $379 million ($0.24 per share) for the year 2018 that are described in the supplemental schedule, “Adjusted Net Income,” on page VII, which is available on FCX’s website, “fcx.com.” | ||||||||||||||||
d. |
FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, “Deferred Profits,” on page X, which is available on FCX’s website, “fcx.com.” | ||||||||||||||||
e. |
Working capital and other sources (uses) totaled $75 million in fourth-quarter 2019, $(556) million in fourth-quarter 2018, $349 million for the year 2019 and $(656) million for the year 2018. |
SUMMARY OPERATING DATA
|
|
Three Months Ended |
|
Years Ended |
|
|||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|||||||||
Copper (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
|||||||||
Production |
|
827 |
|
|
841 |
|
|
3,247 |
|
|
3,813 |
|
|
|||||
Sales, excluding purchases |
|
906 |
|
|
785 |
|
|
3,292 |
|
|
3,811 |
|
|
|||||
Average realized price per pound |
|
$ |
2.74 |
|
|
$ |
2.75 |
|
|
$ |
2.73 |
|
|
$ |
2.91 |
|
|
|
Site production and delivery costs per pounda |
|
$ |
2.12 |
|
|
$ |
1.98 |
|
|
$ |
2.15 |
|
|
$ |
1.76 |
|
|
|
Unit net cash costs per pounda |
|
$ |
1.67 |
|
|
$ |
1.54 |
|
|
$ |
1.74 |
|
|
$ |
1.07 |
|
|
|
Gold (thousands of recoverable ounces) |
|
|
|
|
|
|
|
|
|
|||||||||
Production |
|
223 |
|
|
334 |
|
|
882 |
|
|
2,439 |
|
|
|||||
Sales, excluding purchases |
|
317 |
|
|
266 |
|
|
991 |
|
|
2,389 |
|
|
|||||
Average realized price per ounce |
|
$ |
1,491 |
|
|
$ |
1,255 |
|
|
$ |
1,415 |
|
|
$ |
1,254 |
|
|
|
Molybdenum (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
|||||||||
Production |
|
21 |
|
|
26 |
|
|
90 |
|
|
95 |
|
|
|||||
Sales, excluding purchases |
|
22 |
|
|
24 |
|
|
90 |
|
|
94 |
|
|
|||||
Average realized price per pound |
|
$ |
11.65 |
|
|
$ |
12.75 |
|
|
$ |
12.61 |
|
|
$ |
12.50 |
|
|
|
a. |
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIII, which are available on FCX’s website, “fcx.com.” |
Consolidated Sales Volumes
Fourth-quarter 2019 copper sales of 906 million pounds were 4 percent higher than the October 2019 estimate of 870 million pounds, and 15 percent higher than fourth-quarter 2018 sales of 785 million pounds, mostly reflecting higher sales from Indonesia, primarily associated with an extension of mining from the Grasberg open pit, which was completed in the fourth quarter, and the timing of shipments.
Fourth-quarter 2019 gold sales of 317 thousand ounces were 117 thousand ounces higher than the October 2019 estimate of 200 thousand ounces and approximately 20 percent higher than fourth-quarter 2018 sales of 266 thousand ounces, primarily reflecting an extension of mining from the Grasberg open pit and the timing of shipments.
Fourth-quarter 2019 molybdenum sales of 22 million pounds were slightly lower than both the October 2019 estimate and fourth-quarter 2018 sales of 24 million pounds.
Consolidated sales volumes for the year 2020 are expected to approximate 3.5 billion pounds of copper, 0.8 million ounces of gold and 88 million pounds of molybdenum, including 725 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum in first-quarter 2020. As PT-FI continues to ramp-up production from its significant underground ore bodies, metal production is expected to improve significantly by 2021.
Consolidated Unit Net Cash Costs
Consolidated average unit net cash costs (net of by-product credits) for FCX’s copper mines of $1.67 per pound of copper in fourth-quarter 2019, were lower than the October 2019 estimate of $1.76 per pound, primarily reflecting higher copper and gold sales volumes. As anticipated, consolidated average unit net cash costs were higher than the fourth-quarter 2018 average of $1.54 per pound, primarily reflecting lower production volumes as PT-FI continues to ramp-up production from its significant underground ore bodies, and lower molybdenum by-product credits.
Assuming average prices of $1,500 per ounce of gold and $10.00 per pound of molybdenum for 2020 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for copper mines are expected to average $1.75 per pound of copper for the year 2020. The impact of price changes on 2020 consolidated unit net cash costs would approximate $0.01 per pound for each $50 per ounce change in the average price of gold and $0.03 per pound for each $2 per pound change in the average price of molybdenum. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. FCX expects consolidated unit net cash costs to decline by 2021, following a ramp-up period at PT-FI.
MINING OPERATIONS
Productivity and Innovation Initiatives. During 2019, FCX advanced initiatives in its North America and South America mining operations to enhance productivity, expand margins and reduce the capital intensity of the business through the utilization of new technology applications in combination with a more interactive operating structure. The pilot program initiated at the Bagdad mine in northwest Arizona in late 2018 was highly successful in utilizing data science, machine learning and integrated functional teams to address bottlenecks, provide cost benefits and drive improved overall performance. The program is now being implemented across the North America and South America operations.
A series of action items have been identified, prioritized and are being implemented. Based on the opportunities identified to date, FCX has incorporated higher mining and milling rates in its future plans, resulting in estimated incremental production of approximately 100 million pounds of copper in 2021 and approximately 200 million pounds in 2022.
Capital expenditures associated with these initiatives are expected to be attractive in relation to developing new copper supply. FCX currently estimates capital costs of these initiatives, principally for mining equipment and ongoing development of data science and machine learning programs, will approximate $200 million.
North America Copper Mines. FCX operates seven open-pit copper mines in North America – Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. In addition to copper, certain of FCX’s North America copper mines produce molybdenum concentrate, gold and silver. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 72 percent undivided joint venture interest in Morenci using the proportionate consolidation method.
Operating and Development Activities. FCX has significant undeveloped reserves and resources in North America and a portfolio of potential long-term development projects. Future investments are dependent upon market conditions, and will be undertaken based on the results of economic and technical feasibility studies, including the incorporation of innovation initiatives to reduce capital intensity.
Through exploration drilling, FCX has identified a significant resource at its wholly owned Lone Star copper leach project located near the Safford operation in eastern Arizona. An initial project to develop the Lone Star leachable ores commenced in 2018, with first production expected during 2020. Initial production from the Lone Star leachable ores following a ramp-up period is expected to average approximately 200 million pounds of copper per year, with the potential for future expansion options. Total capital costs for the initial project, including mine equipment and pre-production stripping, are expected to approximate $850 million and will benefit from the utilization of existing infrastructure at the adjacent Safford operation. As of December 31, 2019, approximately $655 million has been incurred for this project, which is on schedule and within budget. The project also advances exposure to a significant sulfide resource. FCX expects to incorporate positive drilling and ongoing results in its future development plans.
Operating Data. Following is summary consolidated operating data for the North America copper mines:
|
|
Three Months Ended |
|
Years Ended |
|
|||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|||||||||
Copper (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
|||||||||
Production |
|
361 |
|
|
353 |
|
|
1,457 |
|
|
1,404 |
|
|
|||||
Sales, excluding purchases |
|
358 |
|
|
333 |
|
|
1,442 |
|
|
1,428 |
|
|
|||||
Average realized price per pound |
|
$ |
2.73 |
|
|
$ |
2.77 |
|
|
$ |
2.74 |
|
|
$ |
2.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Molybdenum (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
|||||||||
Productiona |
|
8 |
|
|
9 |
|
|
32 |
|
|
32 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Unit net cash costs per pound of copperb |
|
|
|
|
|
|
|
|
|
|||||||||
Site production and delivery, excluding adjustments |
|
$ |
2.07 |
|
|
$ |
2.01 |
|
|
$ |
2.05 |
|
|
$ |
1.94 |
|
|
|
By-product credits |
|
(0.22 |
) |
|
(0.34 |
) |
|
(0.24 |
) |
|
(0.26 |
) |
|
|||||
Treatment charges |
|
0.11 |
|
|
0.12 |
|
|
0.11 |
|
|
0.11 |
|
|
|||||
Unit net cash costs |
|
$ |
1.96 |
|
|
$ |
1.79 |
|
|
$ |
1.92 |
|
|
$ |
1.79 |
|
|
|
a. |
Refer to summary operating data on page 3 for FCX’s consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines. |
|||||||||||||||||
b. |
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIII, which are available on FCX’s website, “fcx.com.” |
North America’s consolidated copper sales volumes of 358 million pounds in fourth-quarter 2019 were higher than fourth-quarter 2018 copper sales volumes of 333 million pounds, primarily reflecting timing of shipments and higher production from Morenci. North America copper sales are estimated to approximate 1.6 billion pounds for the year 2020, compared with 1.4 billion pounds in 2019.
Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.96 per pound of copper in fourth-quarter 2019 were higher than fourth-quarter 2018 unit net cash costs of $1.79 per pound, primarily reflecting lower by-product/molybdenum credits.
Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $1.93 per pound of copper for the year 2020, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $10.00 per pound. The impact of price changes during 2020 on North America’s average unit net cash costs would approximate $0.04 per pound for each $2 per pound change in the average price of molybdenum.
South America Mining. FCX operates two copper mines in South America – Cerro Verde in Peru (in which FCX owns a 53.56 percent interest) and El Abra in Chile (in which FCX owns a 51 percent interest). These operations are consolidated in FCX’s financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.
Operating and Development Activities. Cerro Verde’s expanded operations benefit from its large-scale, long-lived reserves and cost efficiencies and have continued to perform well. Debottlenecking projects and additional initiatives to enhance operating rates continue to be advanced. Cerro Verde concentrating operations averaged 396,800 metric tons of ore per day in fourth-quarter 2019, approximately 10 percent above design capacity. Ongoing productivity and innovation initiatives are targeting the opportunity to increase production to 420,000 metric tons of ore per day in 2021.
FCX continues to evaluate a large-scale expansion at El Abra to process additional sulfide material and to achieve higher recoveries. El Abra’s large sulfide resource could potentially support a major mill project similar to facilities constructed at Cerro Verde. Technical and economic studies continue to be evaluated to determine the optimal scope and timing for the project in parallel with extending the life of the current leaching operation.
Operating Data. Following is summary consolidated operating data for South America mining:
|
|
Three Months Ended |
|
Years Ended |
|
|||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|||||||||
Copper (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
|||||||||
Production |
|
320 |
|
|
318 |
|
|
1,183 |
|
|
1,249 |
|
|
|||||
Sales |
|
345 |
|
|
325 |
|
|
1,183 |
|
|
1,253 |
|
|
|||||
Average realized price per pound |
|
$ |
2.76 |
|
|
$ |
2.74 |
|
|
$ |
2.71 |
|
|
$ |
2.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Molybdenum (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
|||||||||
Productiona |
|
8 |
|
|
8 |
|
|
29 |
|
|
28 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Unit net cash costs per pound of copperb |
|
|
|
|
|
|
|
|
|
|||||||||
Site production and delivery, excluding adjustments |
|
$ |
1.85 |
|
c |
$ |
1.77 |
|
|
$ |
1.85 |
|
|
$ |
1.79 |
|
d |
|
By-product credits |
|
(0.18 |
) |
|
(0.26 |
) |
|
(0.27 |
) |
|
(0.24 |
) |
|
|||||
Treatment charges |
|
0.17 |
|
|
0.19 |
|
|
0.18 |
|
|
0.19 |
|
|
|||||
Royalty on metals |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
|||||
Unit net cash costs |
|
$ |
1.85 |
|
|
$ |
1.71 |
|
|
$ |
1.77 |
|
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
a. |
Refer to summary operating data on page 3 for FCX’s consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde. |
|||||||||||||||||
b. |
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIII, which are available on FCX’s website, “fcx.com.” | |||||||||||||||||
c. |
Includes a charge of $0.04 per pound of copper for adjustments to deferred profit sharing for prior years. | |||||||||||||||||
d. |
Includes charges totaling $0.06 per pound of copper associated with Cerro Verde’s three-year collective labor agreement. |
South America’s consolidated copper sales volumes of 345 million pounds in fourth-quarter 2019 were higher than fourth-quarter 2018 copper sales volumes of 325 million pounds, primarily reflecting timing of shipments. Sales from South America mining are expected to approximate 1.15 billion pounds of copper for the year 2020, similar to the year 2019.
Average unit net cash costs (net of by-product credits) for South America mining of $1.85 per pound of copper in fourth-quarter 2019 were higher than unit net cash costs of $1.71 per pound in fourth-quarter 2018, primarily reflecting lower by-product credits and adjustments to deferred profit sharing for prior years.
Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate $1.95 per pound of copper for the year 2020, based on current sales volume and cost estimates and assuming an average price of $10.00 per pound of molybdenum.
Indonesia Mining. PT-FI’s assets include one of the world’s largest copper and gold deposits at the Grasberg minerals district in Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. FCX has a 48.76 percent ownership interest in PT-FI and manages its mining operations. Under the terms of the shareholders agreement, FCX’s economic interest in PT-FI approximates 81 percent through 2022. PT-FI’s results are consolidated in FCX’s financial statements.
Operating and Development Activities. During fourth-quarter 2019, PT-FI completed mining in the Grasberg open pit and continues to achieve important milestones in ramping-up production of large-scale quantities of copper and gold from its significant underground ore bodies. In aggregate, the Grasberg open pit produced over 27 billion pounds of copper and 46 million ounces of gold in the 30-year period from 1990 through 2019.
Grasberg Block Cave. PT-FI has commenced extraction of ore from the Grasberg Block Cave underground mine, which is the same ore body historically mined from the surface in the Grasberg open pit. Reserves from the Grasberg Block Cave totaled 17.2 billion pounds of copper and 14.2 million ounces of gold at December 31, 2019, representing approximately half of PT-FI’s total copper and gold reserves. Undercutting, drawbell construction and ore extraction activities in the Grasberg Block Cave underground mine continue to track expectations. Ore extraction from the Grasberg Block Cave underground mine averaged 11,200 metric tons of ore per day in fourth-quarter 2019, including a planned three week outage for the installation of ore-flow infrastructure. Following completion of the maintenance program in mid-December, ore extraction from the Grasberg Block Cave averaged 17,000 metric tons of ore per day. Monitoring data on cave propagation in the Grasberg Block Cave underground mine is providing confidence in growing production rates over time.
Contacts
Financial Contacts:
Kathleen L. Quirk
602-366-8016
David P. Joint
504-582-4203
Media Contact:
Linda S. Hayes, 602-366-7824