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Highlights

  • FCX’s Q2 FY24 revenues increased 15.5% to USD 6,624 million due to higher average realized prices
  • Despite higher costs, net income rose 79.6% to USD 616 million, driven by increased revenues
  • FCX projects 2024 copper and gold production to exceed sales, with deferrals to 2025

Freeport-McMoRan Inc. (NYSE:FCX) is a global mining company with diverse assets, including the Grasberg district in Indonesia and significant operations in North and South America. It has a market cap of USD 70 billion.

In Q2 FY24, the company reported revenues of USD 6,624 million, reflecting a 15.5% increase from USD 5,737 million in the previous corresponding period (pcp). It was driven by higher average realized prices.

Net income available to common shareholders rose to USD 616 million, up 79.6% from USD 343 million, primarily due to increased revenues, although this was partially offset by rising total costs and expenses. Net operating cash inflows also saw a substantial increase, reaching USD 3,852 million, a 41.5% improvement compared to USD 2,723 million in pcp, attributed to the higher net income and favorable changes in net working capital.

Additionally, total cash and cash equivalents increased to USD 5,273 million, a 10.8% rise from USD 4,758 million, driven by cash inflows from operating activities, despite cash outflows from investing and financing activities.

Recent Business Update

On September 25, 2024, FCX's board of directors declared a quarterly dividend of USD 0.15 per share. Shareholders of record as of October 15, 2024, are eligible for this dividend which is slated to be paid on November 1, 2024.

Company Outlook

FCX expects consolidated production volumes of gold and copper to exceed sales volumes. Approximately 120 thousand ounces of gold and 100 million pounds of copper are anticipated to be deferred to 2025 due to processing by PT-FI’s new downstream facilities.

In terms of total sales volumes for 2024, FCX forecasts 1.8Moz of gold, 4.1bn pounds of copper, and 82mn pounds of molybdenum. However, gold sales are projected to be 150 thousand ounces lower than initial estimates due to adjustments in mine sequencing at the Grasberg Block Cave mine.

Top 10 Shareholders

About 37.18% of the total shares of FCX are owned by the top ten shareholders. This indicates concentrated ownership. The largest shareholder is The Vanguard Group, Inc. with a stake of 8.41%. It is followed by Capital Research Global Investors with a 5.31% stake.

Stock Performance

The stock price of FCX has gained around 15.94% over the past month and around 6.05% over the past three months. The 52-week high price of FCX is USD 55.235. Its 52-week lowest price is USD 32.825. As of Sep 27, 2024, the stock’s closing price is USD 51.340.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 27, 2024. The reference data in this report has been partly sourced from EODHD/Others.