Freeport-McMoRan Announces Reinstatement of Common Stock Dividend and Adoption of Performance Based Payout Policy
February 02 2021 - 7:58PM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that its Board
of Directors has reinstated a cash dividend on its common stock at
an annual rate of $0.30 per share. FCX’s previous cash dividend on
its common stock was $0.20 per share prior to suspending these
payments in April 2020 in connection with its comprehensive
response to the global pandemic. The Board intends to declare a
quarterly dividend of $0.075 per share, with the initial quarterly
dividend expected to be paid on May 1, 2021.
In addition, the Board has adopted a new financial policy for
the allocation of cash flows aligned with its strategic objectives
of maintaining a strong balance sheet, increasing cash returns to
shareholders and advancing opportunities for future growth.
Under the new policy, up to 50% of available cash flows
generated after planned capital spending and distributions to
noncontrolling interests would be allocated to shareholder returns
and the balance to debt reduction and investments in value
enhancing growth projects.
Richard C. Adkerson, Chairman of the Board and Chief
Executive Officer, said: “Our Board’s action reflects strong
performance of our business and execution by our team in 2020,
which established a solid foundation for future cash flow
generation. The policy of combining a base dividend, which can be
sustained in a range of market conditions, with a performance based
payout framework, allows us to enhance long-term value for
shareholders with a strong balance sheet, providing cash returns to
shareholders reflective of market conditions and building long-term
values in our undeveloped resources.”
The new payout policy will be implemented following achievement
of a net debt target in the range of $3-$4 billion, excluding
project debt for additional smelter capacity in Indonesia. Under
current market conditions and with continued strong execution of
our plans, we currently expect to reach this target in early 2022.
FCX has 1.46 billion common shares outstanding.
During 2021, FCX will continue to prioritize worker health and
safety during the pandemic, continued ramp-up of production from
the Grasberg underground project, optimizing production with cost
efficiencies in the Americas and further debt reduction.
Available cash flows for performance-based payout distributions
will be assessed at least annually.
The declaration and payment of dividends is at the discretion of
the Board and will depend on FCX's financial results, cash
requirements, business prospects, global economic conditions and
other factors deemed relevant by the Board.
FREEPORT: Foremost in Copper
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 of the world’s largest
publicly traded copper producers.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world’s largest copper and gold
deposits; and significant mining operations in North America and
South America, including the large-scale Morenci minerals district
in Arizona and the Cerro Verde operation in Peru.
By supplying responsibly produced copper, FCX is proud to be a
positive contributor to the world well beyond its operational
boundaries. Additional information about FCX is available on FCX's
website at fcx.com.
Cautionary Statement Regarding Forward-Looking
Statements: This press release contains forward-looking
statements, which are all statements other than statements of
historical facts, such as statements regarding FCX’s expectations,
timing and payment of dividends and shareholder returns, including
under the performance based financial policy and FCX’s descriptions
of objectives, strategies, plans, goals or targets, including FCX’s
net debt target. The declaration and payment of dividends is at the
discretion of FCX's Board of Directors (Board) and will depend on
FCX's financial results, cash requirements, business prospects,
global economic conditions and other factors deemed relevant by the
Board. FCX cautions readers that forward-looking statements are not
guarantees of future performance and actual results may differ
materially from those anticipated, expected, projected or assumed
in the forward-looking statements. Important factors that can cause
FCX's actual results to differ materially from those anticipated in
the forward-looking statements include, but are not limited to, the
factors described in more detail under the heading “Risk Factors”
in FCX's Annual Report on Form 10-K for the year ended December 31,
2019, and Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2020, June 30, 2020 and September 30, 2020, each filed
with the U.S. Securities and Exchange Commission (SEC), as updated
by FCX’s subsequent filings with the SEC.
This press release also contains the financial measure net debt,
which is not recognized under U.S. generally accepted accounting
principles. Net debt equals consolidated debt less consolidated
cash.
Investors are cautioned that many of the assumptions on which
FCX's forward-looking statements are based are likely to change
after the forward-looking statements are made, including for
example commodity prices, which FCX cannot control, and production
volumes and costs, some aspects of which FCX may not be able to
control. Further, FCX may make changes to its business plans that
could affect its results. FCX cautions investors that it does not
intend to update forward-looking statements more frequently than
quarterly notwithstanding any changes in its assumptions, changes
in business plans, actual experience or other changes, and FCX
undertakes no obligation to update any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210202006199/en/
Financial Contacts: Kathleen L. Quirk (602) 366-8016
David P. Joint (504) 582-4203
Media Contact: Linda S. Hayes (602) 366-7824
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