Freeport-McMoRan Reports Third-Quarter and Nine-Month 2019 Results
PHOENIX–(BUSINESS WIRE)–Freeport-McMoRan Inc. (NYSE: FCX):
- Net loss attributable to common stock totaled $131 million, $0.09 per share, in third-quarter 2019. After adjusting for net charges of $123 million, $0.08 per share, third-quarter 2019 adjusted net loss attributable to common stock totaled $8 million, $0.01 per share.
- Consolidated sales totaled 795 million pounds of copper, 243 thousand ounces of gold and 22 million pounds of molybdenum in third-quarter 2019. Consolidated production totaled 864 million pounds of copper and 333 thousand ounces of gold in third-quarter 2019.
- Full year consolidated sales guidance is similar to prior estimates, with consolidated sales expected to approximate 3.3 billion pounds of copper, 874 thousand ounces of gold and 92 million pounds of molybdenum for the year 2019, including 870 million pounds of copper, 200 thousand ounces of gold and 24 million pounds of molybdenum in fourth-quarter 2019.
- Average realized prices in third-quarter 2019 were $2.62 per pound for copper, $1,487 per ounce for gold and $12.89 per pound for molybdenum.
- Average unit net cash costs in third-quarter 2019 were $1.59 per pound of copper and are expected to approximate $1.76 per pound of copper for the year 2019.
- Operating cash flows totaled $224 million (net of $146 million of working capital uses and timing of other tax payments) in third-quarter 2019 and $1.3 billion (including $135 million of working capital sources and timing of other tax payments) for the first nine months of 2019. Based on current sales volume and cost estimates, and assuming average prices of $2.60 per pound for copper, $1,500 per ounce for gold and $12.00 per pound for molybdenum for fourth-quarter 2019, operating cash flows are expected to approximate $1.6 billion (including $0.2 billion of working capital sources and timing of other tax payments) for the year 2019.
- Capital expenditures totaled $0.7 billion (including approximately $0.3 billion for major mining projects) in third-quarter 2019 and $1.9 billion (including approximately $1.1 billion for major mining projects) for the first nine months of 2019. Capital expenditures for the year 2019 are expected to approximate $2.6 billion, including $1.6 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and development of the Lone Star copper leach project in Arizona.
- The Grasberg underground and Lone Star copper leach development projects are progressing according to plan.
- At September 30, 2019, consolidated debt totaled $9.9 billion and consolidated cash totaled $2.2 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at September 30, 2019.
- On September 25, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on November 1, 2019.
Freeport-McMoRan Inc. (NYSE: FCX) reported net losses attributable to common stock of $131 million ($0.09 per share) in third-quarter 2019 and $172 million ($0.12 per share) for the first nine months of 2019. After adjusting for net charges of $123 million ($0.08 per share), adjusted net loss attributable to common stock totaled $8 million ($0.01 per share) in third-quarter 2019. For additional information, refer to the supplemental schedule, “Adjusted Net (Loss) Income,” on page VII, which is available on FCX’s website, “fcx.com.”
Richard C. Adkerson, President and Chief Executive Officer, said, “Our global team has established strong momentum on our three major initiatives to build value for shareholders. We are effectively executing our plans to establish large-scale production from our significant high-grade, low-cost and long-lived underground ore bodies at Grasberg; advance the Lone Star project in Arizona as a new cornerstone asset in the U.S.; and progress our innovation initiatives to enhance productivity and grow our Americas operations with low capital intensity. These initiatives are expected to significantly enhance our cost position, cash flow and the long-term value of our premier copper portfolio, providing opportunities for increased returns to shareholders. We are pleased with our progress to date and remain focused on successful execution of our plans, which would enable us to increase copper production by 30 percent, gold production by 70 percent, reduce unit net cash costs by 25 percent and more than double operating cash flows in 2021 from 2019 levels.”
|
SUMMARY FINANCIAL DATA |
|||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|||||||||
|
|
(in millions, except per share amounts) |
|
|||||||||||||||
|
Revenuesa,b |
$ |
3,308 |
|
|
$ |
4,908 |
|
|
$ |
10,646 |
|
|
$ |
14,944 |
|
|
|
|
Operating incomea |
$ |
117 |
|
|
$ |
1,315 |
|
|
$ |
471 |
|
|
$ |
4,438 |
|
|
|
|
Net (loss) income from continuing operations |
$ |
(139 |
) |
|
$ |
668 |
|
|
$ |
(138 |
) |
|
$ |
2,535 |
|
|
|
|
Net (loss) income attributable to common stockc,d |
$ |
(131 |
) |
|
$ |
556 |
|
|
$ |
(172 |
) |
|
$ |
2,117 |
|
|
|
|
Diluted net (loss) income per share of common stock: |
|
|
|
|
|
|
|
|
|||||||||
|
Continuing operations |
$ |
(0.09 |
) |
|
$ |
0.38 |
|
|
$ |
(0.12 |
) |
|
$ |
1.46 |
|
|
|
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(0.01 |
) |
|
|||||
|
|
$ |
(0.09 |
) |
|
$ |
0.38 |
|
|
$ |
(0.12 |
) |
|
$ |
1.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Diluted weighted-average common shares outstanding |
1,452 |
|
|
1,458 |
|
|
1,451 |
|
|
1,458 |
|
|
|||||
|
Operating cash flowse |
$ |
224 |
|
|
$ |
1,247 |
|
|
$ |
1,312 |
|
|
$ |
3,925 |
|
|
|
|
Capital expenditures |
$ |
666 |
|
|
$ |
507 |
|
|
$ |
1,917 |
|
|
$ |
1,391 |
|
|
|
|
At September 30: |
|
|
|
|
|
|
|
|
|||||||||
|
Cash and cash equivalents |
$ |
2,247 |
|
|
$ |
4,580 |
|
|
$ |
2,247 |
|
|
$ |
4,580 |
|
|
|
|
Total debt, including current portion |
$ |
9,919 |
|
|
$ |
11,287 |
|
|
$ |
9,919 |
|
|
$ |
11,287 |
|
|
|
|
a. |
For segment financial results, refer to the supplemental schedules, “Business Segments,” beginning on page X, which are available on FCX’s website, “fcx.com.” |
|
b. |
Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(42) million ($(17) million to net loss attributable to common stock or $(0.01) per share) in third-quarter 2019, $(111) million ($(48) million to net income attributable to common stock or $(0.03) per share) in third-quarter 2018, $58 million ($23 million to net loss attributable to common stock or $0.02 per share) for the first nine months of 2019 and $(70) million ($(31) million to net income attributable to common stock or $(0.02) per share) for the first nine months of 2018. For further discussion, refer to the supplemental schedule, “Derivative Instruments,” on page IX, which is available on FCX’s website, “fcx.com.” |
|
c. |
Includes net (charges) gains of $(123) million ($(0.08) per share) in third-quarter 2019, $42 million ($0.03 per share) in third-quarter 2018, $(173) million ($(0.12) per share) for the first nine months of 2019 and $69 million ($0.04 per share) for the first nine months of 2018 that are described in the supplemental schedule, “Adjusted Net (Loss) Income,” on page VII, which is available on FCX’s website, “fcx.com.” |
|
d. |
FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, “Deferred Profits,” on page IX, which is available on FCX’s website, “fcx.com.” |
|
e. |
Net of working capital (uses) sources and timing of other tax payments of $(146) million in third-quarter 2019, $59 million in third-quarter 2018, $135 million for the first nine months of 2019 and $(154) million for the first nine months of 2018. |
|
SUMMARY OPERATING DATA |
|||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||||||
|
Copper (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
||||||||
|
Production |
|
864 |
|
|
1,006 |
|
|
2,420 |
|
|
2,972 |
|
|
||||
|
Sales, excluding purchases |
|
795 |
|
|
1,044 |
|
|
2,386 |
|
|
3,026 |
|
|
||||
|
Average realized price per pound |
|
$ |
2.62 |
|
|
$ |
2.80 |
|
|
$ |
2.71 |
|
|
$ |
2.96 |
|
|
|
Site production and delivery costs per pounda |
|
$ |
2.05 |
|
|
$ |
1.73 |
b |
$ |
2.16 |
|
|
$ |
1.70 |
b |
||
|
Unit net cash costs per pounda |
|
$ |
1.59 |
|
|
$ |
0.93 |
b |
$ |
1.76 |
|
|
$ |
0.95 |
b |
||
|
Gold (thousands of recoverable ounces) |
|
|
|
|
|
|
|
|
|
||||||||
|
Production |
|
333 |
|
|
760 |
|
|
659 |
|
|
2,105 |
|
|
||||
|
Sales, excluding purchases |
|
243 |
|
|
837 |
|
|
674 |
|
|
2,123 |
|
|
||||
|
Average realized price per ounce |
|
$ |
1,487 |
|
|
$ |
1,191 |
|
|
$ |
1,380 |
|
|
$ |
1,249 |
|
|
|
Molybdenum (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
||||||||
|
Production |
|
21 |
|
|
23 |
|
|
69 |
|
|
69 |
|
|
||||
|
Sales, excluding purchases |
|
22 |
|
|
22 |
|
|
68 |
|
|
70 |
|
|
||||
|
Average realized price per pound |
|
$ |
12.89 |
|
|
$ |
12.40 |
|
|
$ |
12.92 |
|
|
$ |
12.41 |
|
|
| a. |
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIII, which are available on FCX’s website, “fcx.com.” |
| b. |
Includes charges totaling $0.07 per pound of copper in third-quarter 2018 and $0.02 per pound of copper for the first nine months of 2018 associated with for Cerro Verde’s three-year collective labor agreement (CLA). Refer to the supplemental schedule, “Adjusted Net (Loss) Income,” on page VII, which is available on FCX’s website, “fcx.com,” for additional information. |
Consolidated Sales Volumes
Third-quarter 2019 copper sales of 795 million pounds were four percent lower than the July 2019 estimate of 830 million pounds of copper, primarily because of lower production from Cerro Verde and timing of shipments, partly offset by higher production and sales from North America. Third-quarter 2019 gold sales of 243 thousand ounces were six percent higher than the July 2019 estimate of 230 thousand ounces of gold.
Third-quarter 2019 copper and gold sales were lower than third-quarter 2018 sales primarily reflecting anticipated lower mill rates and ore grades as PT Freeport Indonesia (PT-FI) transitions mining from the open pit to underground. Third-quarter 2019 copper sales were also lower in South America, reflecting the timing of shipments and lower grades and recovery rates at Cerro Verde, offset by higher copper sales in North America, primarily related to higher mining and milling rates.
Third-quarter 2019 molybdenum sales of 22 million pounds were lower than the July 2019 estimate of 25 million pounds and approximated third-quarter 2018 sales of 22 million pounds.
Consolidated sales volumes for the year 2019 are expected to approximate 3.3 billion pounds of copper, 874 thousand ounces of gold and 92 million pounds of molybdenum, including 870 million pounds of copper, 200 thousand ounces of gold and 24 million pounds of molybdenum in fourth-quarter 2019. As PT-FI transitions mining from the open pit to underground, metal production is currently expected to improve significantly by 2021.
Consolidated Unit Net Cash Costs
Consolidated average unit net cash costs (net of by-product credits) for FCX’s copper mines of $1.59 per pound of copper in third-quarter 2019, were slightly improved from the July 2019 estimate of $1.63 per pound. As anticipated, consolidated average unit net cash costs were higher than the third-quarter 2018 average of $0.93 per pound, primarily reflecting lower sales volumes as PT-FI transitions mining from the open pit to underground.
Assuming average prices of $1,500 per ounce of gold and $12.00 per pound of molybdenum for fourth-quarter 2019 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for copper mines are expected to average $1.76 per pound of copper for the year 2019, (including $1.76 per pound of copper in fourth-quarter 2019). The impact of price changes during fourth-quarter 2019 on consolidated unit net cash costs for the year 2019 would approximate $0.005 per pound for each $50 per ounce change in the average price of gold and $0.005 per pound for each $2 per pound change in the average price of molybdenum. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. FCX expects consolidated unit net cash costs to decline by 2021, following a ramp-up period at PT-FI.
MINING OPERATIONS
North America Copper Mines. FCX operates seven open-pit copper mines in North America – Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. In addition to copper, certain of FCX’s North America copper mines produce molybdenum concentrate, gold and silver. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 72 percent undivided joint venture interest in Morenci using the proportionate consolidation method.
Operating and Development Activities. FCX has significant undeveloped reserves and resources in North America and a portfolio of potential long-term development projects. Future investments will be undertaken based on the results of economic and technical feasibility studies, and are dependent on market conditions. FCX continues to pursue projects to enhance productivity through innovative technologies and to identify opportunities to reduce the capital intensity of its potential long-term development projects. Early results from innovation initiatives have been positive, and FCX expects to incorporate these enhancements into its future mine plans in 2020.
Through exploration drilling, FCX has identified a significant resource at its wholly owned Lone Star copper leach project located near the Safford operation in eastern Arizona. An initial project to develop the Lone Star leachable ores commenced in 2018, with first production expected by the end of 2020. Initial production from the Lone Star leachable ores is expected to average approximately 200 million pounds of copper per year, with the potential for future expansion options. Total capital costs for the initial project, including mine equipment and pre-production stripping, are expected to approximate $850 million and will benefit from the utilization of existing infrastructure at the adjacent Safford operation. As of September 30, 2019, approximately $575 million has been incurred for this project, which is on schedule and within budget. The project also advances exposure to a significant sulfide resource. FCX expects to incorporate positive drilling and ongoing results in its future development plans.
Operating Data. Following is summary consolidated operating data for the North America copper mines:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||||||
|
Copper (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
||||||||
|
Production |
|
390 |
|
|
349 |
|
|
1,096 |
|
|
1,051 |
|
|
||||
|
Sales, excluding purchases |
|
395 |
|
|
350 |
|
|
1,084 |
|
|
1,095 |
|
|
||||
|
Average realized price per pound |
|
$ |
2.65 |
|
|
$ |
2.77 |
|
|
$ |
2.74 |
|
|
$ |
3.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Molybdenum (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
||||||||
|
Productiona |
|
8 |
|
|
8 |
|
|
24 |
|
|
23 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Unit net cash costs per pound of copperb |
|
|
|
|
|
|
|
|
|
||||||||
|
Site production and delivery, excluding adjustments |
|
$ |
2.03 |
|
|
$ |
1.98 |
|
|
$ |
2.05 |
|
|
$ |
1.92 |
|
|
|
By-product credits |
|
(0.22 |
) |
|
(0.26 |
) |
|
(0.25 |
) |
|
(0.23 |
) |
|
||||
|
Treatment charges |
|
0.11 |
|
|
0.10 |
|
|
0.11 |
|
|
0.10 |
|
|
||||
|
Unit net cash costs |
|
$ |
1.92 |
|
|
$ |
1.82 |
|
|
$ |
1.91 |
|
|
$ |
1.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| a. |
Refer to summary operating data on page 3 for FCX’s consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines. |
| b. |
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIII, which are available on FCX’s website, “fcx.com.” |
North America’s consolidated copper sales volumes of 395 million pounds in third-quarter 2019 were higher than third-quarter 2018 copper sales volumes of 350 million pounds, primarily reflecting higher leach production and higher mining and milling rates. North America copper sales are estimated to approximate 1.45 billion pounds for the year 2019.
Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.92 per pound of copper in third-quarter 2019 were higher than third-quarter 2018 unit net cash costs of $1.82 per pound, primarily reflecting higher mining and milling rates.
Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $1.90 per pound of copper for the year 2019, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $12.00 per pound for fourth-quarter 2019. The impact of price changes during fourth-quarter 2019 on North America’s average unit net cash costs for the year 2019 would approximate $0.01 per pound for each $2 per pound change in the average price of molybdenum.
South America Mining. FCX operates two copper mines in South America – Cerro Verde in Peru (in which FCX owns a 53.56 percent interest) and El Abra in Chile (in which FCX owns a 51 percent interest). These operations are consolidated in FCX’s financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.
Operating and Development Activities. Cerro Verde’s expanded operations benefit from its large-scale, long-lived reserves and cost efficiencies and have continued to perform well. Debottlenecking projects and additional initiatives to enhance operating rates continue to be advanced.
FCX continues to evaluate a large-scale expansion at El Abra to process additional sulfide material and to achieve higher recoveries. El Abra’s large sulfide resource could potentially support a major mill project similar to facilities constructed at Cerro Verde. Technical and economic studies continue to be advanced to determine the optimal scope and timing for the project.
Operating Data. Following is summary consolidated operating data for South America mining:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||||||
|
Copper (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
||||||||
|
Production |
|
283 |
|
|
325 |
|
|
863 |
|
|
931 |
|
|
||||
|
Sales |
|
261 |
|
|
326 |
|
|
838 |
|
|
928 |
|
|
||||
|
Average realized price per pound |
|
$ |
2.61 |
|
|
$ |
2.80 |
|
|
$ |
2.67 |
|
|
$ |
2.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Molybdenum (millions of recoverable pounds) |
|
|
|
|
|
|
|
|
|
||||||||
|
Productiona |
|
6 |
|
|
7 |
|
|
21 |
|
|
20 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Unit net cash costs per pound of copperb |
|
|
|
|
|
|
|
|
|
||||||||
|
Site production and delivery, excluding adjustments |
|
$ |
1.89 |
|
|
$ |
1.84 |
c |
$ |
1.84 |
|
|
$ |
1.80 |
c |
||
|
By-product credits |
|
(0.26 |
) |
|
(0.23 |
) |
|
(0.29 |
) |
|
(0.24 |
) |
|
||||
|
Treatment charges |
|
0.17 |
|
|
0.20 |
|
|
0.18 |
|
|
0.20 |
|
|
||||
|
Royalty on metals |
|
0.01 |
|
|
— |
|
|
0.01 |
|
|
— |
|
|
||||
|
Unit net cash costs |
|
$ |
1.81 |
|
|
$ |
1.81 |
|
|
$ |
1.74 |
|
|
$ |
1.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
a. |
Refer to summary operating data on page 3 for FCX’s consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde. |
|
b. |
For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIII, which are available on FCX’s website, “fcx.com.” |
|
c. |
Includes charges totaling $0.21 per pound of copper in third-quarter 2018 and $0.07 per pound of copper for the first nine months of 2018 associated with Cerro Verde’s three-year CLA. |
South America’s consolidated copper sales volumes of 261 million pounds in third-quarter 2019 were lower than third-quarter 2018 copper sales volumes of 326 million pounds reflecting lower ore grades and recovery rates at Cerro Verde and the timing of shipments. Third-quarter 2019 production and sales were impacted by protests in Peru associated with an unaffiliated copper development project that blocked access to the shipping ports and main transportation routes, mill maintenance activities and mine sequencing changes at Cerro Verde that delayed access to higher grade material. Sales from South America mining are expected to approximate 1.2 billion pounds of copper for the year 2019.
Average unit net cash costs (net of by-product credits) for South America mining were $1.81 per pound of copper in both third-quarter 2019 and 2018. Excluding third-quarter 2018 charges for Cerro Verde’s three-year CLA, average unit net cash costs (net of by-product credits) for South America were higher in third-quarter 2019, primarily reflecting lower copper sales volumes.
Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate $1.73 per pound of copper for the year 2019, based on current sales volume and cost estimates and assuming an average price of $12.00 per pound of molybdenum for fourth-quarter 2019.
In September 2019, El Abra and its two workers’ unions signed new CLAs, which expire on April 30, 2023.
Indonesia Mining. PT-FI’s assets include one of the world’s largest copper and gold deposits at the Grasberg minerals district in Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. FCX has a 48.76 percent ownership interest in PT-FI and manages its mining operations. PT-FI is consolidated in FCX’s financial statements. As a result of the December 2018 transaction regarding PT-FI’s long-term mining rights and share ownership, FCX’s economic interest in PT-FI is expected to approximate 81 percent through 2022.
Operating and Development Activities. PT-FI continues to mine the final stages of the Grasberg open pit and currently expects to complete mining in the open pit in fourth-quarter 2019, subject to geotechnical conditions.
PT-FI has commenced production from its significant underground ore bodies and continues to achieve important milestones to produce large-scale quantities of copper and gold following the transition from the Grasberg open pit. PT-FI’s estimated annual capital spending on underground mine development projects is expected to average $0.8 billion per year for the four-year period 2019 through 2022, net of scheduled contributions from PT Indonesia Asahan Aluminium (Persero) (PT Inalum). In accordance with applicable accounting guidance, aggregate costs (before scheduled contributions from PT Inalum), which are expected to average $0.95 billion per year for the four-year period 2019 through 2022, will be reflected as an investing activity in FCX’s cash flow statement, and contributions from PT Inalum will be reflected as a financing activity. Considering the long-term nature and size of these projects, actual costs could vary from these estimates.
Grasberg Block Cave. PT-FI has commenced extraction of ore from the Grasberg Block Cave underground mine, which is the same ore body historically mined from the surface in the Grasberg open pit. Undercutting, drawbell construction and ore extraction activities in the Grasberg Block Cave underground mine continue to meet or exceed expectations. Ore extraction from the Grasberg Block Cave underground mine averaged 10,600 metric tons of ore per day in third-quarter 2019 and is expected to ramp up to 16,000 metric tons of ore per day by the end of 2019. Monitoring data on cave propagation in the Grasberg Block Cave underground mine is providing confidence in growing production rates over time. As existing drawpoints mature and additional drawpoints are added, cave expansion is expected to accelerate production rates from an average of 30,000 metric tons of ore per day in 2020 to 130,000 metric tons of ore per day in 2023 from five production blocks spanning 335,000 square meters.
Deep Mill Level Zone (DMLZ). The DMLZ underground mine, located east of the Grasberg ore body and below the Deep Ore Zone (DOZ) underground mine, has continued its ramp up of production.
Contacts
Freeport-McMoRan Inc.
Financial Contacts:
Kathleen L. Quirk, 602-366-8016
David P. Joint, 504-582-4203
Media Contact:
Linda S. Hayes, 602-366-7824
