Freeport-McMoRan Completes Sale of Its Interests in Candelaria/Ojos for $1.8 Billion in Cash
03 November 2014 - 9:00PM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
completed its previously announced sale of its 80 percent ownership
interest in the Candelaria/Ojos del Salado copper mining operations
and supporting infrastructure to Lundin Mining Corporation
(TSX:LUN) (Nasdaq OMX:LUMI) for cash consideration of $1.8 billion,
before closing adjustments. The transaction has an effective date
of June 30, 2014.
The interests include all of FCX’s interests in the
Candelaria/Ojos mining district in Chile, which had consolidated
recoverable reserves of 4.0 billion pounds of copper and 1.1
million ounces of gold as of December 31, 2013 and consolidated
production for the first nine months of 2014 of 246 million pounds
of copper and 62 thousand ounces of gold.
FCX plans to use after-tax net proceeds from the transaction of
approximately $1.5 billion to repay indebtedness and expects to
record an approximate $450 million after-tax gain on the
transaction in fourth-quarter 2014.
Under the terms of the agreement, FCX could also receive
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 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. 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 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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