Freeport-McMoRan reported solid operating results for the fourth quarter and full year of 2023, with production levels in Indonesia reaching new records.
The company is making progress on its smelter projects in Indonesia, with the expansion of the existing smelter completed and the new greenfield smelter expected to be completed by the end of May 2024.
Copper markets have tightened, with inventories declining and demand growing. Supply disruptions have further reduced near-term supplies, leading to a deficit market in 2024 and setting up tight market conditions.
Freeport-McMoRan has a strong reserve position and a pipeline of growth options, including scaling its leach initiatives in the Americas and developing projects in the US and Chile.
The Bagdad expansion project in the US has an estimated capital expenditure of $3.5 billion, reflecting the higher costs associated with concentrator projects. The company is evaluating the timing of the project based on market conditions.
The company's financial policies prioritize a strong balance sheet, cash returns to shareholders, and investments in value-enhancing growth projects. It has distributed almost $4 billion to shareholders through dividends and share purchases since implementing its performance-based payout framework.
Overall, the earnings call highlighted Freeport-McMoRan's strong operational performance, progress on key projects, positive outlook for copper markets, and focus on disciplined capital allocation. The challenges include low ore grades in the US and potential cost inflation. The company sees opportunities for growth through innovation and efficiency improvements, as well as future development projects. Risks include macroeconomic factors impacting copper prices and geopolitical uncertainties. No specific mention was made regarding dividends or buybacks during the call.
Current Fair Value
Undervalued by 16.8% based on the discounted cash flow analysis.
Earnings per Share
Avg 30 Day Volume
Return on Equity
Return on Assets
Return on Invested Capital
Valuation & Multiples
Price to Sales
Price to Book Ratio
Enterprise Value to Revenue
Enterprise Value to EBIT
Enterprise Value to Net Income
Total Debt to Enterprise
Debt to Equity
About Freeport-McMoRan Inc
FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one o...