Commodities & Metals

How Freeport-McMoRan Plans to Weather the Commodities Collapse and Turn Itself Around

Paul Ausick

Published: January 26, 2016 9:10 am

Last Updated: January 13, 2020 2:35 pm

Freeport-McMoRan Inc. (NYSE: FCX) reported fourth-quarter and full-year 2015 results before markets opened Tuesday. The copper and gold miner posted an adjusted net loss per share of $0.02 on revenues of $3.8 billion for the quarter. In the same period a year ago, Freeport-McMoRan reported adjusted earnings per share of $0.26 on revenues of $5.7 billion. Fourth-quarter results also compare to the consensus estimates for a net loss of $0.17 on revenues of $3.84 billion.

For the full year, Freeport reported an adjusted net loss per share of $0.08 on revenues of $5.24 billion, compared with earnings per share of $1.97 on revenues of $21.44 billion last year. Consensus estimates called for a net loss of $0.18 on revenues of $15.96 billion.

On a GAAP basis, Freeport posted a quarterly net loss of $4.08 billion, or $3.47 per share, and a full-year net loss of $11.31 per share.

The company also offered revised plans to bring the balance sheet back to a more sustainable level. Freeport said its strategy will focus on its leading position in the copper industry. The company plans to continue to manage its production activities, spending on capital projects and operations, and the administration of its business to enhance cash flows, and it intends to complete significant asset sale transactions to reduce debt. On December 31, consolidated debt totaled $20.4 billion and consolidated cash totaled $224 million. At the same time, Freeport had no amounts drawn under its $4 billion credit facility.

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