FCX Financial Analysis

Analysis Date: 1/24/2025

Business Model

Freeport-McMoRan generates revenue primarily through mining and selling copper, gold, and molybdenum from its global operations

Revenue Sources

• Copper sales - Primary revenue source with 4.1 billion pounds sold in 2024
• Gold sales - 1.8 million ounces sold in 2024
• Molybdenum sales - 78 million pounds sold in 2024

Income Statement Analysis

• Revenues declined 3.1% YoY primarily due to lower sales volumes
• Operating income decreased 27.8% YoY due to lower sales volumes and higher costs
• Net income declined 29.4% YoY reflecting lower operating income

Balance Sheet Analysis

• Strong balance sheet with $3.9 billion in cash and cash equivalents
• Net debt of $1.06 billion excluding Indonesia downstream processing facilities debt
• Total debt reduced by 5% year-over-year

Cash Flow Analysis

• Generated strong operating cash flow of $1.4 billion in Q4 2024
• Capital expenditures of $1.2 billion included $0.6 billion for major mining projects

Capital Allocation

FCX maintains a balanced approach to capital allocation focused on maintaining a strong balance sheet, providing cash returns to shareholders through base dividend and performance-based framework, and advancing organic growth opportunities. The company has a net debt target of $3-4 billion excluding Indonesia downstream processing facilities.

Management Commentary

We enter 2025 with a clear focus on continued strong execution of our operating plans, enhancing productivity, managing costs and capital, and advancing opportunities for long-term profitable growth and value creation

Our global team delivered solid results in 2024 and we are strongly positioned for the future with high-quality, large-scale copper assets, attractive organic growth options, successful track record of our team and a strong balance sheet

Overall Sentiment: Management remains confident in company's strategic positioning and operational execution while focused on growth opportunities

Recommendation

Rating: Buy

Reason for Rating: Strong operational execution, solid balance sheet, and attractive growth projects support positive long-term outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/24/2025, 9:08:38 AM