Freeport-McMoRan Announces Agreement to Sell Its Interests in Candelaria/Ojos for $1.8 Billion in Cash Plus up to $0.2 Billio...
06 Oktober 2014 - 10:05PM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
entered into a definitive agreement to sell its 80 percent
ownership interest in the Candelaria/Ojos del Salado copper mining
operations and supporting infrastructure to Lundin Mining
Corporation (TSX:LUN)(OMX:LUMI) for $1.8 billion in cash and
contingent consideration of up to $0.2 billion, calculated as 5% of
net copper revenues in any annual period over the next five years
when the average realized copper price exceeds $4.00 per pound. FCX
estimates after-tax net proceeds from the transaction of
approximately $1.5 billion, excluding contingent consideration.
James R. Moffett, Chairman of the Board; Richard C. Adkerson,
Vice Chairman, and FCX President and Chief Executive Officer; and
James C. Flores, Vice Chairman, and FM O&G President and Chief
Executive Officer, said, “This transaction represents another
important step in our ongoing debt reduction plan and follows the
completion of our $3.1 billion sale of Eagle Ford shale assets in
June. We remain committed to our balance sheet objectives
while focusing on our large portfolio of high quality assets and
resources, which provide strong current cash flows and have
attractive growth characteristics.”
Mr. Adkerson continued: “We congratulate our team on
developing Candelaria to be a highly successful mining operation
and for contributing to the Company’s success over many years.
We are pleased that Lundin Mining will continue to build on
Candelaria’s past success, and continue a commitment to
provide a safe, productive work environment and a sustainable
future. We look forward to our continued investments in
Chile through opportunities for a major expansion of the El Abra
operation. We are positive about our portfolio of copper
assets, our large scale growth projects currently in progress and
opportunities for additional expansion and development provided by
our sizeable copper resource base.”
The interests include all of FCX’s interests in the
Candelaria/Ojos mining district. As of December 31, 2013,
Candelaria/Ojos had consolidated recoverable reserves totaling 4.0
billion pounds of copper and 1.1 million ounces of gold.
Consolidated production for the first six months of 2014 totaled
169 million pounds of copper and 42 thousand ounces of gold.
The transaction has an effective date of June 30, 2014, and is
expected to close by year-end 2014, subject to regulatory approvals
and customary closing conditions.
FCX expects to record an approximate $450 million after-tax gain
on the transaction.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets, significant
oil and gas resources and a growing production profile. FCX is the
world’s largest publicly traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world’s largest copper and gold
deposits; significant mining operations in the Americas, including
the large-scale Morenci minerals district in North America and the
Cerro Verde operation in South America; the Tenke Fungurume
minerals district in the Democratic Republic of Congo; and
significant oil and natural gas assets in North America, including
reserves in the Deepwater Gulf of Mexico (GOM), onshore and
offshore California and in the Haynesville natural gas shale play,
and an industry-leading position in the emerging shallow water
Inboard Lower Tertiary/Cretaceous natural gas trend on the Shelf of
the GOM and onshore in South Louisiana. Additional information
about FCX is available on FCX’s website at “www.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 expectations relating to completion of
the pending transaction. The words “anticipates,” “may,” “can,”
“plans,” “believes,” “potential,” “estimates,” “expects,”
“projects”, “targets,” “intends,” “likely,” “will,” “should,” “to
be,” 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 its actual results may differ materially from those
anticipated, 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 satisfy customary
closing conditions and consummate the proposed transaction and
other 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, 2013, 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 on which
FCX’s forward-looking statements are based are likely to change
after its 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 or may not be able
to control. Further, FCX may make changes to its business plans
that could or will affect its results. FCX cautions investors that
it does not intend to update forward-looking statements more
frequently than quarterly notwithstanding any changes in FCX’s
assumptions, changes in business plans, actual experience or other
changes, and FCX undertakes no obligation to update any
forward-looking statements.
Freeport-McMoRan Inc.Financial Contacts:Kathleen L. Quirk,
602-366-8016orDavid P. Joint, 504-582-4203orMedia Contact:Eric E.
Kinneberg, 602-366-7994
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