FREEPORT-MCMORAN INC

FCX closed its $1.5 billion of new notes - $650 million at 4.375% due 2028 and $850 million at 4.625% due 2030 - and reported only early results on the buy-back offers for its 2022-2024 notes, extending the early-tender premium to 7 August rather than completing them.

debt financing

As COVID-19 spread globally, FCX reassured investors that its Grasberg underground transition remained on track (ore production up 35% versus the fourth quarter of 2019) and that it had a strong liquidity position with no significant near-term debt maturities.

production update

FCX closed the Inalum transaction: Indonesian entities now hold 51.2% of PT-FI's shares, but FCX retained its economics (about 81.28%) through 2022 via revenue and cost-sharing arrangements and continues to manage PT-FI's day-to-day operations.

material agreement

FCX agreed to terms for Indonesian state enterprise Inalum to acquire Rio Tinto's Grasberg joint-venture interest and FCX's indirect 9.36% stake in PT Freeport Indonesia for $3.85 billion (FCX to receive $350 million) -- resolving years of Contract of Work negotiations by lifting Indonesian share ownership to 51.2% while extending PT-FI's mining rights through 2041.

material agreement

FCX closed the Tenke Fungurume sale to China Molybdenum for $2.65 billion, using the proceeds to repay debt including its bank term loan.

asset acquisition disposition

FCX agreed to sell its Deepwater Gulf of Mexico oil and gas properties to Anadarko Petroleum for $2.0 billion cash plus up to $150 million contingent -- effectively exiting offshore oil and gas -- and launched a consent solicitation to amend its oil and gas subsidiaries' note indentures.

material agreement

FCX agreed to sell its 56%-effective interest in Tenke Fungurume Mining (Democratic Republic of Congo copper/cobalt) to China Molybdenum for $2.65 billion cash plus up to $120 million in contingent payments -- its largest divestiture yet in the debt-reduction campaign.

material agreement

FCX agreed to sell a 13% interest in its Morenci, Arizona copper mine to Sumitomo Metal Mining for $1.0 billion cash, part of a broader push to pay down the debt from its oil and gas expansion.

material agreement

Amid the 2015 commodity-price crash, FCX set up a $1.0 billion at-the-market equity sales program with J.P. Morgan -- a sign of balance-sheet strain following its debt-funded expansion into oil and gas.

material agreement

FCX agreed to sell its 80% stake in the Candelaria and Ojos del Salado copper mines in Chile to Lundin Mining for about $1.8 billion cash plus up to $0.2 billion in contingent payments tied to future copper prices.

material agreement

PT Freeport Indonesia signed a memorandum of understanding with the Indonesian government to resume copper concentrate exports that had been halted by an export ban, agreeing to higher royalties (4.0% on copper and 3.75% on gold, up from 3.5%/1.0%) and a $115 million assurance bond while negotiating a long-term contract covering divestment of up to 30% to Indonesia and continued mining operations through 2041.

material agreement

FCX completed its roughly $9 billion pivot into oil and gas: the Plains Exploration & Production (PXP) merger closed May 31, 2013 (~$46.01/share, cash or FCX stock) and the McMoRan Exploration (MMR) merger closed June 3, 2013 ($14.75 cash plus royalty trust units per share), funded partly by a new $4.0 billion term loan; FCX's board grew from 12 to 15 seats and PXP's ex-CEO James Flores became Vice Chairman and head of FCX's new oil and gas business.

asset acquisition disposition