What is Freeport-McMoRan?
Freeport-McMoRan is an American mining company based in Phoenix, Arizona. The company is the world’s largest publicly traded copper producer, and it also has assets with significant proven and probable reserves of gold and molybdenum. The firm is a founding member of the International Council on Mining and Metals (ICMM).
Freeport-McMoRan stresses its social responsibility, saying that it operates “a business that upholds and respects human rights while working with our stakeholders on the fundamental environmental, social and economic aspects of our sustainability programs”. The company’s Community Policy requires collaboration with local communities to minimise adverse impacts from its mining operations.
Who are the key people at Freeport-McMoRan?
Richard C. Adkerson is Vice Chairman, President and Chief Executive Officer of Freeport-McMoRan Inc. He was ranked Best CEO in Metals and Mining by Institutional Investor magazine for eight years.
Other key figures at Freeport-McMoRan include Gerald J. Ford, who serves as non-executive Chairman of the Board, and Kathleen L. Quirk, who is Executive Vice President, Chief Financial Officer and Treasurer.
What is the modern history of Freeport-McMoRan?
Freeport-McMoRan’s portfolio of mining assets was developed and acquired by several predecessor companies including Freeport Minerals, Phelps Dodge, Cyprus Minerals and American Metal Company (AMAX).
Freeport-McMoRan Inc was established in 1988 after the discovery of the Grasberg copper and gold deposit in Papua, Indonesia, when its former parent company sold 20 per cent of the business in an initial public offering. By 1998, FCX had become a world leader in high-volume/low-cost copper and gold production with the expansion of the Grasberg mill.
When FCX acquired Phelps Dodge in 2007, it became the world’s biggest publicly traded producer of copper. At the time it was the largest mining acquisition in history. Another key moment came with two oil & gas deals in 2013, when FCX acquired Plains Exploration & Production and McMoRan Exploration Co.
What are the latest developments at Freeport-McMoRan?
In 2016 Freeport-McMoRan was able to reduce its net debt by over $8 billion following a series of deals, including the sale of Tenke Fungurume, a 13 per cent stake in Morenci and most of the company’s oil & gas assets.
For the year to December 31, 2017, Freeport-McMoRan reported net income attributable to common stock of $1.8 billion ($1.25 per share), compared with a net loss attributable to common stock of $4.2 billion ($3.16 per share) for the year 2016. Sales increased 10.6 per cent year-on-year to $16.4 billion in 2017. CEO Richard C. Adkerson said the “solid results” had been achieved thanks to a focus on productivity, cost and capital discipline, along with better market conditions for copper.
In February 2018 the CEO revealed that several parties were interested in buying the company’s cobalt project in the Democratic Republic of Congo, but not at the right price, so it was no longer planning a sale. Instead. FCX would consider other options for the asset – possibly including a joint venture to develop the project.
As of 27 February 2018, Freeport-McMoRan had a market capitalisation of around $27.67 billion. Our FCX chart tracks the recent ups and downs of the company’s share price.
Where does Freeport-McMoRan operate?
Freeport-McMoRan’s global workforce includes around 30,000 employees and 29,000 contractors. The company conducts large-scale and geographically diverse mining operations in North America (the Morenci minerals district), South America (the Cerro Verde mine) and Indonesia (the Grasberg minerals district). It also has a copper refinery in Huelva, Spain.
Where is Freeport-McMoRan traded?
Freeport-McMoRan’s stocks are traded on the New York Stock Exchange (NYSE). Check out Capital.com for an up-to-date FCX chart. This shows the movement of the Freeport-McMoRan share price over the past weeks and months.