| Freeport Reduces Capital Spending, Suspends Dividend | |
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Freeport-McMoRan Inc. FCX has declared more actions to cope with the prevailing difficult market conditions. These include amending its oil and gas capital spending plans, additional curtailments in copper and molybdenum production and suspension of its common stock dividend.
In response to the weak oil and gas market environment, the company has announced plans to defer investments in various long-term projects and also trimmed capital spending from $2 billion for both 2016 and 2017 to $1.8 billion for 2016 and $1.2 billion for 2017, including idle rig costs.
The changed plans also include a reduction in utilization from three Deepwater Gulf of Mexico drillships to one drillship. Production will also be increased to an average of 159 barrels of oil equivalents per day (MBOE/d) in 2016 and 2017 from 150 MBOE/d in the third quarter of 2015. Freeport-McMoRan Oil & Gas (FM O&G) expects to bring 8 wells on stream in late 2015 and 2016 from its successful tie back drilling operations at the Holstein Deep, Horn Mountain and King Projects in the Deepwater Gulf of Mexico.
These projects are expected to add low cost oil production thus helping the cash production costs to reduce from $19 per barrel of oil equivalents (BOE) in 2015 to less than $16 per BOE in 2016 and 2017.
Freeport’s board is undertaking a strategic review of its oil and gas business to assess alternatives designed to increase value to Freeport’s shareholders and attain self financing of the oil and gas business from its cash flows and resources.
Freeport is also reviewing its capital projects and costs in order to yield maximum cash flow. The company earlier announced a 25% reduction in its capital spending for its mining business in 2016 from $2.7 billion to $2 billion, including $0.6 billion in sustaining capital. The company also announced curtailments at its North American and South American mines totaling 250 million pounds of copper and 20 million pounds of molybdenum a year. The company also planning for a full shut-down of its Sierrita mine in Arizona and adjustments to its operating plans from its primary molybdenum mines.
The company will evaluate its mining operating plans and make further adjustments depending on the market conditions.
Moreover, Freeport has suspended its annual common stock dividend of 20 cents per share to save cash amid a weak commodity price environment. This action will provide annual cash savings of about $240 million and further increase Freeport’s liquidity during this period of weak market conditions. Freeport currently carries a Zacks Rank #3 (Hold). Some better-ranked mining companies include Nevsun Resources Ltd. NSU, Coeur Mining, Inc. CDE and Taseko Mines Ltd. TGB. All of these stocks carry a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FREEPT MC COP-B (FCX): Free Stock Analysis Report NEVSUN RESOURCS (NSU): Free Stock Analysis Report COEUR MINING (CDE): Free Stock Analysis Report TASEKO MINES LT (TGB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Freeport McMoRan Copper and Gold Inc.
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 71,5 milliards US$ (66,8 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 25 avril 2024 à 49,40 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |