· Net income attributable to common stock totaled $552 million, $0.53 per share, for third-quarter 2014, compared with net income of $821 million, $0.79 per share, for third-quarter 2013. Net income attributable to common stock for the first nine months of 2014 totaled $1.5 billion, $1.47 per share, compared with $2.0 billion, $1.96 per share, for the first nine months of 2013.
· Consolidated sales for third-quarter 2014 totaled 1.08 billion pounds of copper, 525 thousand ounces of gold, 22 million pounds of molybdenum and 12.5 million barrels of oil equivalents (MMBOE), compared with third-quarter 2013 sales of 1.04 billion pounds of copper, 305 thousand ounces of gold, 23 million pounds of molybdenum and 16.5 MMBOE.
· Consolidated sales for the year 2014 are expected to approximate 3.9 billion pounds of copper, 1.2 million ounces of gold, 95 million pounds of molybdenum and 56.2 MMBOE, including 1.0 billion pounds of copper, 350 thousand ounces of gold, 21 million pounds of molybdenum and 11.5 MMBOE for fourth-quarter 2014.
· Average realized prices for third-quarter 2014 were $3.12 per pound for copper (compared with $3.28 per pound for third-quarter 2013), $1,220 per ounce for gold (compared with $1,329 per ounce for third-quarter 2013) and $88.58 per barrel for oil (compared with $104.33 per barrel for third-quarter 2013).
· Consolidated unit net cash costs for third-quarter 2014 averaged $1.34 per pound of copper for mining operations (compared with $1.46 per pound for third-quarter 2013) and $20.93 per barrel of oil equivalents (BOE) for oil and gas operations (compared with $16.80 per BOE for third-quarter 2013).
· Operating cash flows totaled $1.9 billion (including $78 million in working capital sources and changes in other tax payments) for third-quarter 2014 and $4.5 billion (net of $699 million in working capital uses and changes in other tax payments) for the first nine months of 2014. Based on current sales volume and cost estimates and assuming average prices of $3.00 per pound for copper, $1,250 per ounce for gold, $10 per pound for molybdenum and $90 per barrel for Brent crude oil in fourth-quarter 2014, operating cash flows for the year 2014 are expected to approximate $5.8 billion (net of $0.4 billion of working capital uses and changes in other tax payments).
· Capital expenditures totaled $1.9 billion for third-quarter 2014 and $5.4 billion for the first nine months of 2014, including $2.0 billion for major projects at mining operations and $2.4 billion for oil and gas operations. Capital expenditures are expected to approximate $7.5 billion for the year 2014, including $3.0 billion for major projects at mining operations and $3.4 billion for oil and gas operations.
· FCX continues to pursue attractive minerals and oil and gas exploration activities which benefit from existing large scale production capacities in proven mining districts and geologic basins. Recent interim drilling results at the 100 percent owned Holstein Deep oil prospect in the Deepwater Gulf of Mexico (GOM) indicate the potential for a large resource that could utilize existing production capacity in the area. In addition, positive exploration drilling targeting large scale sulfide mineralization in the Morenci and Safford/Lone Star mining districts continue to indicate the potential for future long-term growth.
· At September 30, 2014, consolidated cash totaled $658 million and consolidated debt totaled $19.7 billion. During third-quarter 2014, FCX redeemed $1.7 billion of senior notes with an average interest rate of 6.6 percent. Additionally, on October 15, 2014, FCX redeemed $400 million of the aggregate principal amount of its 8.625% Senior Notes.
· In October 2014, FCX entered into a definitive agreement to sell its 80 percent ownership interest in the Candelaria and Ojos del Salado copper mining operations and supporting infrastructure to Lundin Mining Corporation (Lundin) for $1.8 billion in cash and contingent consideration of up to $0.2 billion. Excluding contingent consideration, FCX estimates after-tax net proceeds from the transaction will approximate $1.5 billion. The transaction is expected to close by year-end 2014.
If you have any questions, please contact Eric Kinneberg by phone at (602) 366-7994 or by email at Eric_Kinneberg@fmi.com.
This release is also available on our website at www.fcx.com.