Freeport-McMoRan Completes Sale of Undeveloped Project in the Democratic Republic of Congo for $550 Million
December 14 2020 - 8:00AM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
completed a sale of its interests in the Kisanfu undeveloped
project to a wholly owned subsidiary of China Molybdenum Co., Ltd.
(CMOC) for $550 million. After-tax net cash proceeds approximate
$415 million.
The Kisanfu project, located in the Democratic Republic of
Congo, is a large, undeveloped cobalt and copper resource
discovered by Freeport’s exploration team. Following Freeport’s
sale of its interest in the adjacent Tenke Fungurume mine in 2016,
the Kisanfu project was no longer strategic to Freeport’s long-term
strategy.
Richard C. Adkerson, President and Chief Executive Officer,
said, “We are pleased to announce this transaction, which
enhances our financial position. We continue to execute our
strategy focused on our attractive portfolio of large and
high-quality copper assets with strong and established franchises
in North America, South America and Indonesia.”
As of December 31, 2019, FCX did not have any proven and
probable reserves associated with the Kisanfu project.
FCX expects to record an after-tax gain of approximately $350
million in the fourth quarter of 2020 associated with this
sale.
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: This press release contains
forward-looking statements, which are all statements other than
statements of historical facts, such as expectations related to
completion of the pending transaction. The words “anticipates,”
“may,” “can,” “plans,” “believes,” “estimates,” “expects,”
“projects,” "targets," “intends,” “likely,” “will,” “should,”
“could,” “to be,” ”potential," “assumptions,” “guidance,” “future”
and any similar expressions are intended to identify those
assertions as forward-looking statements.
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 the ability of the parties
to [secure regulatory approvals], satisfy closing conditions and
consummate the pending transaction and other factors described
under the heading “Risk Factors” in FCX's Annual Report on Form
10-K for the year ended December 31, 2019, and subsequent Quarterly
Report on Form 10-Q for the quarter ended September 30, 2020, each
filed with the U.S. Securities and Exchange Commission (SEC) as
updated by FCX's subsequent filings with the SEC.
Investors are cautioned that many of the assumptions upon which
FCX's forward-looking statements are based are likely to change
after the forward-looking statements are made. 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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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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