Freeport-McMoRan(FCX) - 2025 Q1 - Quarterly Results

Financial Performance - First-quarter 2025 net income attributable to common stock totaled $352 million, or$ 0.24 per share, with adjusted net income at $358 million, also$ 0.24 per share [3]. - Revenues for Q1 2025 were $5,728 million, a decrease of 9.4% compared to$ 6,321 million in Q1 2024 [95]. - Operating income decreased to $1,303 million in Q1 2025 from$ 1,634 million in Q1 2024, reflecting a decline of 20.2% [95]. - Net income attributable to common stockholders was $352 million, down 25.6% from$ 473 million in the same period last year [95]. - Diluted net income per share attributable to common stock was $0.24, compared to$ 0.32 in Q1 2024, representing a decrease of 25% [95]. - Total current assets increased to $13,802 million as of March 31, 2025, up from$ 13,296 million at the end of 2024 [97]. - Cash and cash equivalents rose to $4,385 million from$ 3,923 million, indicating a growth of 11.8% [97]. - Net cash provided by operating activities was $1,058 million, a decrease of 44.1% compared to$ 1,896 million in Q1 2024 [99]. - Total assets increased to $56,022 million as of March 31, 2025, compared to$ 54,848 million at the end of 2024 [97]. - Total liabilities rose to $26,808 million from$ 26,070 million, reflecting an increase of 2.8% [97]. Production and Sales - Consolidated production in Q1 2025 included 868 million pounds of copper, 287 thousand ounces of gold, and 23 million pounds of molybdenum [2]. - In Q1 2025, FCX's U.S. copper production was 301 million pounds, a decrease from 314 million pounds in Q1 2024, with sales of 307 million pounds compared to 331 million pounds in the prior year [31][32]. - In South America, FCX's copper production was 271 million pounds in Q1 2025, down from 280 million pounds in Q1 2024, with sales of 275 million pounds compared to 284 million pounds [39][41]. - FCX's copper production for Q1 2025 was 592 million recoverable pounds, a decrease of 15.7% compared to 702 million pounds in Q1 2024 [89]. - The company reported a copper recovery rate of 84.1% in U.S. mill operations for Q1 2025, an improvement from 81.0% in Q1 2024 [92]. - Copper sales from South America operations were 284 million recoverable pounds, while Indonesia operations sold 290 million recoverable pounds [149][152]. Costs and Expenditures - Operating cash flows for Q1 2025 totaled $1.1 billion, with expectations of approximately$ 7.0 billion for the full year [2]. - Capital expenditures in Q1 2025 were $1.2 billion, with an expected total of$ 5.0 billion for the year, including $2.8 billion for major mining projects [2]. - Consolidated average unit net cash costs for copper in Q1 2025 were$ 2.07 per pound, higher than the previous year's $1.51 per pound, but expected to decline to$ 1.50 per pound for the year [11][13]. - FCX's average unit net cash costs for U.S. copper mines increased to $3.11 per pound in Q1 2025 from$ 2.98 per pound in Q1 2024, reflecting higher labor costs and lower production volumes [33]. - The average realized price per pound of copper for U.S. operations in Q1 2025 was $4.60, which is approximately 16% higher than the$ 3.96 in Q1 2024 [31]. - Unit net cash costs for copper were $0.64 per pound in Q1 2025, compared to net cash credits of$ 0.12 per pound in Q1 2024, reflecting lower sales volumes [58]. Market and Pricing - Average realized prices in Q1 2025 were $4.44 per pound for copper,$ 3,072 per ounce for gold, and $21.67 per pound for molybdenum [2]. - The average realized price per pound of copper increased to$ 4.44 in Q1 2025 from $3.94 in Q1 2024, reflecting a 12.7% increase [89]. - FCX's average realized price per ounce of gold rose to$ 3,072 in Q1 2025 from $2,145 in Q1 2024, marking an increase of 43.3% [89]. - FCX estimates that each$ 0.05 change in the price realized from the quarter-end provisional price would have an approximate $18 million effect on 2025 revenues [116]. Strategic Initiatives - The new smelter in Indonesia is on track for start-up by mid-2025, contributing to organic growth opportunities [2]. - FCX is monitoring potential U.S. tariffs that could increase costs by approximately 5%, while also evaluating alternative sourcing options [16]. - FCX is targeting an annual run rate of 300 million pounds of copper by the end of 2025 from operational enhancements and innovative technology applications [24]. - FCX plans to submit an environmental impact statement for the El Abra project by year-end 2025, which could support an additional 750 million pounds of copper production per year [37][38]. - PTFI, a subsidiary of FCX, is expected to produce approximately 1.7 billion pounds of copper and 1.4 million ounces of gold annually from its underground operations in Indonesia [50]. Shareholder Returns - FCX has repurchased 51 million shares for a total cost of$ 2.0 billion under its $5.0 billion share repurchase program [2]. - The Board declared cash dividends of$ 0.15 per share on March 26, 2025, to be paid on May 1, 2025 [77]. - FCX repurchased 2.3 million shares for $80 million in Q1 2025, bringing total repurchases under its$ 5.0 billion program to 51 million shares for $2.0 billion [78][79].