FREEPORT-McMoRan COPPER & GOLD INC. ANNOUNCES FOURTH-QUARTER AND YEAR-END 1996 RESULTS; YEAR-END RESERVES.NEW ORLEANS--(BUSINESS WIRE)--Jan. 21, 1997-- HIGHLIGHTS -- Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc., (NYSE: FCX) often called simply Freeport, is the world's lowest-cost copper producer and one of the world's largest producers of gold. Copper & Gold Inc. (FCX FCX French Connexion (gaming site) FCX Freeport-McMoran Copper & Gold Inc (stock symbol) FCX Fuel Cell Experiment (Honda) FCX Fire Coordination Exercise FCX Fire Control Exercise ) reported record quarterly net income. -- FCX's principal mining unit, P.T. Freeport Freeport, city, Bahamas Freeport, city (1990 pop. 25,115), Grand Bahama Island, Bahamas. A popular resort area, it developed out of a 1955 agreement between the Bahamian colonial government and a private development company to create a free port and Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. Company (PT- FI), reported record quarterly and annual production and sales volumes. -- PT-FI achieved record quarterly sales of 317.5 million pounds of copper and 543,800 ounces of gold. -- PT-FI achieved record low unit cash production costs of 10.6 cents per pound of copper, after credits, during the period. Continues to be among the lowest cost copper producers in the world. -- Proved and probable reserves increased at the Grasberg complex. -- Atlantic Copper Holding, S.A. (Atlantic), FCX's smelter/refining unit in Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , reported a quarterly operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. ; "debottlenecking" project initiated to increase capacity in 1997 and improve profitability. -- PT-FI's fourth concentrator mill expansion proceeding. -- FCX completed sale of $450 million of Senior Notes. -- FCX completed redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of 7% Convertible Exchangeable Preferred Stock Convertible exchangeable preferred stock Convertible preferred stock that may be exchanged, at the issuer's option, into convertible bonds that have the same conversion features as the convertible preferred stock. . Fourth Quarter Twelve Months ------------------------ ------------------------ 1996 1995 1996 1995 ---------- ---------- ---------- ---------- (In thousands, except per share amounts) Revenues $ 617,632 $ 534,248 $1,905,036 $1,834,335 Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 250,769 171,568a 638,261b 596,432a Net income 77,059 54,314a 174,680b 199,465a Net income per share .39 .27a .89b .98a Average shares outstanding 195,792 202,456 196,682 204,406 a. Includes a fourth quarter $7.9 million charge ($4.3 million to net income or $0.02 per share) and a twelve months $29.8 million charge ($16.1 million to net income or $0.08 per share) for costs of stock appreciation rights caused by the increase in FCX's common stock price during the periods. Both periods include a $7.3 million charge ($4.0 million to net income or $0.02 per share) for an early retirement program and the twelve month period also includes a $12.5 million noncash charge Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. ($6.8 million to net income or $0.03 per share) for a materials and supplies inventory reserve adjustment in connection with the completion of PT-FI's 118,000 metric tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. per day (MTPD MTPD Metric Tons Per Day MTPD Matsushita Toshiba Picture Display MTPD Maximum Tolerable Period of Disruption MTPD Move to Previous Data ) expansion program. b. Includes charges totaling $17.4 million ($8.0 million to net income or $0.04 per share) consisting of a $12.7 million charge for costs of stock appreciation rights caused by the increase in FCX's common stock price during the period, $3.0 million for costs related to a civil disturbance Group acts of violence and disorder prejudicial to public law and order. See also domestic emergencies. and $1.7 million for an early retirement program. Freeport-McMoRan Copper & Gold Inc. (FCX) reported record fourth-quarter 1996 net income applicable to common stock of $77,059,000, $0.39 per share, compared with fourth-quarter 1995 net income of $54,314,000, $0.27 per share. For the twelve months ended December December: see month. 31, 1996, FCX reported net income applicable to common stock of $174,680,000, $0.89 per share, compared with net income of $199,465,000, $0.98 per share, a year ago. The following factors contributed to the difference between the quarterly periods: -- RECORD PRODUCTION AND SALES VOLUMES. PT-FI achieved excellent operating results during the fourth quarter of 1996 with mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. averaging 128,300 MTPD. Higher ore grades Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly and improved gold recoveries resulted in record quarterly production of copper and gold. PT-FI also reported record quarterly sales volumes of 317.5 million pounds of copper and 543,800 ounces of gold, 2 percent and 15 percent higher, respectively, than the 1995 quarter, which contributed to record quarterly earnings for FCX despite the relatively low commodity price environment. -- PRICE PROTECTION PROGRAM AND SALES OUTLOOK. The significant decline in copper prices during 1996 increased the value of the copper put option contracts that PT-FI had purchased to provide a floor price of $0.90 per pound for essentially all copper sales through the second quarter of 1997. During the third quarter of 1996, PT-FI sold all of its copper put option contracts covering approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.2 billion pounds of copper for $97.2 million cash. As a result, PT-FI is reporting copper revenues through June June: see month. 30, 1997 at a higher price than realized under its copper concentrate sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. , but PT-FI no longer has a floor price on any of its copper sales. For the fourth quarter and through December 31, 1996, PT-FI recognized $21.1 million and $51.1 million, respectively, of additional copper revenues from the sale of its put option contracts. PT-FI will recognize additional copper revenues from the sale of put option contracts totaling $23.0 million in the first quarter of 1997 and $23.1 million in the second quarter of 1997. PT-FI's copper concentrate sales agreements provide for provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. pricing at the time of shipment with final settlement generally based on the average LME See London Metal Exchange. LME See London Metal Exchange (LME). price for a specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. future month. Copper revenues on provisionally pro·vi·sion·al adj. Provided or serving only for the time being. See Synonyms at temporary. n. 1. A person hired temporarily for a job, typically before having taken an examination qualifying the person for permanent priced "open" pounds are adjusted monthly based on then current prices. Fourth-quarter 1996 revenues include favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. adjustments to September September: see month. 30, 1996 "open" pounds totaling approximately $39 million. At December 31, 1996, copper sales totaling 301.2 million pounds, which were recorded at an average price of $0.96 per pound, remained to be finally priced. Approximately 60 percent of these "open" pounds are expected to be finally priced during the first quarter of 1997 with most of the remaining pounds to be priced during the second quarter. A one cent change in the average price used for these "open" pounds would have an approximately $1.3 million effect on FCX's 1997 net income. PT-FI has commitments for essentially all of its expected 1997 concentrate sales which are now estimated to yield approximately 1.1 billion pounds of copper and 1.65 million ounces of gold. These volumes reflect the expectation of producing higher than mine-life grades during the year. First-quarter 1997 production and sales, however, are expected to be affected adversely by the anticipated mining of lower grade ore. First-quarter 1997 sales are projected to approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 235 million pounds of copper and 325,000 ounces of gold. -- CASH PRODUCTION COSTS. During the fourth quarter, PT-FI's cash production costs, after gold and silver credits, averaged 10.6 cents per pound of copper, 30 percent less than last year's fourth quarter and 21 percent lower than the third quarter of 1996. Higher treatment charges compared with the year ago period were offset by higher gold credits and lower royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. costs. Lower copper and gold ore grades and the resulting lower sales volumes are expected to impact first-quarter 1997 unit cash production costs negatively. -- ATLANTIC COPPER. Atlantic recorded operating income of $3.7 million for the quarter compared with a loss of $9.5 million in the 1995 period, reflecting higher volumes. The effect of an equivalent change in treatment charges on PT-FI and Atlantic would now be largely offset in FCX's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results, after taking into account income taxes and minority interests. OTHER ACTIVITIES -- Reserve Additions. At December 31, 1996, PT-FI added new proved and probable reserves totaling approximately 125 million metric tons of ore representing 2.5 billion payable pounds of copper, 2.9 million payable ounces of gold and 8.6 million payable ounces of silver. Pursuant to the joint venture arrangements between FCX and The RTZ-CRA Group (RTZ-CRA), RTZ-CRA has the conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. right to a 40 percent interest in new reserves discovered, subsequent to December 31, 1994, within PT-FI's Block A area. RTZ-CRA does not participate in PT-FI ore reserves discovered prior to December 31, 1994. Net of 1996 production, PT-FI's proved and probable reserves at December 31, 1996 totaled, on a 100 percent basis, 1.97 billion metric tons of ore averaging 1.17 percent copper, 1.17 grams of gold per ton and 3.78 grams of silver per ton representing 41.7 billion payable pounds of copper, 53.4 million payable ounces of gold and 115.6 million payable ounces of silver. Of the reserves that were added, approximately one-half resulted from initial delineation drilling at the Kucing Liar Liar - MIT Scheme ore body while the remainder were from the IOZ/DOZ ore bodies. Delineation and exploration drilling continues along a portion of the 1.5 kilometer kilometer one thousand (103) meters; 3280.83 feet; five-eighths of a mile; abbreviated km. Kucing Liar mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. zone which could represent a geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. resource of 250 million metric tons at an average grade of approximately 2 percent copper equivalent on the southern flank flank (flank) the side of the body between ribs and ilium. flank n. 1. The side of the body between the pelvis or hip and the last rib; the side. 2. of the Grasberg intrusive in·tru·sive adj. 1. Intruding or tending to intrude. 2. Geology Of or relating to igneous rock that is forced while molten into cracks or between other layers of rock. 3. Linguistics Epenthetic. . PT-FI anticipates establishing significant future additions to reserves as drilling progresses and mine plans are developed for the Kucing Liar ore body. -- Exploration. Drilling activities continue to explore the extent of the Kucing Liar mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. as well as the heavy sulfide sulfide, chemical compound containing sulfur and one other element or sulfur and a radical. Sulfides may be salts or esters of hydrogen sulfide, H2S, or may be formed directly, e.g., by heating a metal with sulfur. "skarn-type" mineralization on the fringe On The Fringe is a popular Pakistani television show on Indus Music. It is hosted and scripted by the eccentric television host and music critic, Fasi Zaka and directed by Zeeshan Pervez. of the Grasberg intrusive which has been previously announced. As the Amole amole: see soap plant. tunnel progresses into the Grasberg ore body, exploration drilling will be conducted from underground to test (1) the western and northern flanks of the Grasberg intrusive for Kucing Liar type mineralization, (2) the heavy sulfide "skarn-type" mineralization and (3) the deep Grasberg. As previously reported, the Kucing Liar mineralization and the heavy sulfide "skarn-type" mineralized zone have the potential to encircle en·cir·cle tr.v. en·cir·cled, en·cir·cling, en·cir·cles 1. To form a circle around; surround. See Synonyms at surround. 2. To move or go around completely; make a circuit of. much of the Grasberg intrusive, approximately 850 meters in diameter, between the 2,500-3,100 meter meter, unit of measure meter, abbr. m, fundamental unit of length in the metric system. The meter was originally defined as 1/10,000,000 of the distance between the equator and either pole; however, the original survey was inaccurate and the meter was later elevations. In the fourth quarter of 1996, the FCX joint ventures with RTZ- CRA See Community Reinvestment Act. incurred $9.9 million of exploration costs. In 1996, these costs were not reflected as an expense in FCX's income statement because RTZ-CRA has funded $100 million for exploration costs under the terms of the joint venture agreements. Subsequent to the RTZ-CRA commitment, costs will be shared 60 percent by FCX and 40 percent by RTZ-CRA. Through December 1996, the joint ventures had incurred $70.0 million of exploration costs covered by the RTZ-CRA funding. -- Expansion. As previously announced, FCX and RTZ-CRA have completed the feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. justifying an expansion of PT-FI's facilities and have begun construction. The optimum rate following this "fourth concentrator mill expansion" is expected to be at least 190,000 to 200,000 MTPD, subject to certain approvals, and completion is expected in the second half of 1998. The high grade underground Kucing Liar mineralization could have a significant positive effect on the grade of the ore feed to the "fourth concentrator mill expansion." Costs for this expansion to achieve optimum throughput rates Throughput rate is an obsolete term[1] in the terminology of automated chemical analysis. It may mean either:
1. ^ International Union of Pure and Applied Chemistry. "throughput rate". are expected to approximate $960 million, including working capital and approximately $300 million to construct a coal-fired Adj. 1. coal-fired - fueled by burning coal; "a coal-fired ship" coal-burning fueled - heated, driven, or produced by burning fuel power plant and related facilities. The new power plant facilities will not only provide the required power for the expanded operations but also improve the profitability of existing operations which currently use power generated by higher-cost diesel fueled facilities. -- Atlantic "Debottlenecking". Atlantic has begun ordering equipment for an approximately $13 million "debottlenecking" project that is expected to increase current production capacity of 270,000 metric tons of metal per year by 20,000 metric tons and improve profitability. Completion is scheduled for mid- mid- pref. Middle: midbrain. 1997. -- Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. Redemption. In December 1996, FCX called for redemption its depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. shares representing 7% Convertible Exchangeable Preferred Stock. Prior to the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. , holders of 8.8 million depositary shares converted their shares into approximately 9 million FCX Class A common shares. The remaining depositary shares will be redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. for approximately $3 million cash. -- Stock Buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. . As part of its previously announced open market share purchase program, FCX purchased 20,000 shares of Class A common stock during the fourth quarter for $0.6 million, approximately $28 per share. From January January: see month. 1 through January 20, 1997, FCX purchased 291,300 shares of its Class A common stock for an aggregate $8.2 million, approximately $28 per share. Through January 20, 1997, FCX has purchased 12.2 million shares under its open market share purchase program of up to 20 million shares. -- Senior Notes. In November November: see month. 1996, FCX sold publicly $200 million of 7.50% Senior Notes due 2006 and $250 million of 7.20% Senior Notes due 2026. Proceeds were used to reduce revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to debt. FCX is engaged in mineral exploration and development, mining and milling of copper, gold and silver in Irian Jaya Irian Jaya, province, Indonesia: see Papua. , Indonesia and the smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar of copper concentrates in Spain. FCX is also involved in a joint venture to construct and operate a smelter/refinery in Indonesia. Cautionary Statement. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding sales volumes, cash production costs, mineral reserves and capital projects. Important factors that might cause future results to differ from these projections are described in FCX's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed with the Securities and Exchange Commission on December 20, 1996. A copy of this press release is available by calling 1-800-469-1253. -0-
FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
Fourth Quarter Twelve Months
--------------------- ---------------------
1996 1995 1996 1995
-------- -------- -------- --------
PT-FI
Ore milled (metric tons
per day, MTPD) 128,300 126,800 127,400 111,900
Average ore grade
Copper (percent) 1.44 1.35 1.35 1.32
Gold (grams per
metric ton) 1.75 1.57 1.52 1.39
Gold (ounce per
metric ton) .056 .050 .049 .045
Silver (grams per
metric ton) 3.70 2.73 3.10 3.17
Silver (ounce per
metric ton) .119 .088 .100 .102
Recovery rate (percent)
Copper 84.5 84.6 83.8 85.0
Gold 80.5 73.5 77.1 74.3
Silver 63.5 77.1 64.6 63.2
Copper (000s of recoverable pounds)
Production 306,600 283,600 1,118,800 978,000
Sales 317,500 311,300 1,097,000 985,100
Average realized
price a $1.03 $1.19 $1.02 $1.22
Gold (recoverable ounces)
Production 514,100 416,600 1,695,200 1,310,400
Sales 543,800 474,200 1,698,900 1,353,400
Average realized price $390.63 $389.49 $390.96 $383.73
Silver (recoverable ounces)
Production 699,100 692,500 2,360,600 2,303,000
Sales 843,200 747,700 2,532,000 2,349,400
Average realized price $4.66 $5.09 $4.95 $4.99
PT-FI gross profit per pound of copper (cents):
Average realized price a 102.6 118.6 101.9 122.2
----- ----- ----- -----
Production costs:
Site production
and delivery 51.8 51.8 52.4b 54.0c
Gold and silver credits (68.0) (60.5) (61.3) (53.8)
Treatment charges 24.5 19.7 22.9 19.6
Royalty on metals 2.3 4.2 2.8 4.3
----- ----- ----- -----
Cash production
costs 10.6 15.2 16.8 24.1
Depreciation and
amortization 13.0 11.0 13.0 10.4
----- ----- ----- -----
Total production
costs 23.6 26.2 29.8 34.5
----- ----- ----- -----
Revenue adjustments d 12.0 (7.0) (2.0) (2.1)
----- ----- ----- -----
Gross profit per
pound of copper 91.0 85.4 70.1 85.6
===== ===== ===== =====
Atlantic Copper
Concentrate treated
(metric tons) 218,100 143,000 804,500 434,400e
Anodes (000s of pounds)
Production 150,900 96,200 547,900 296,000
Sales 28,900 32,900 77,300 44,600
Cathodes (000s of pounds)
Production 119,500 56,900 462,900 258,200
Sales (including
wire rod) 119,300 78,300 461,100 280,200
Cathode cash production
cost per pound $.15 $.18 $.15 $.18
a. Amounts were $0.96 for the 1996 quarter, $1.20 for the 1995
quarter, $0.97 for the 1996 twelve-month period and $1.28 for the
1995 twelve-month period before hedging adjustments.
b. Includes charges totaling $4.2 million (0.4 cents per pound)
for costs related to a first-quarter civil disturbance and an early
retirement program.
c. Excludes a $12.5 million charge (1.3 cents per pound) for a
materials and supplies inventory reserve adjustment in connection
with the completion of PT-FI's 118,000 MTPD expansion program.
d. Reflects adjustments for prior period concentrate sales and
amortization of the price protection program cost.
e. Reflects shutdowns of Atlantic's smelter caused by a strike at
an adjacent plant, expansion equipment tie-ins and normal
maintenance turnarounds.
FREEPORT-McMoRan COPPER & GOLD INC.
STATEMENTS OF INCOME (Unaudited)
Three Months Ended Years Ended
December 31, December 31,
-------------------- ------------------------
1996 1995 1996 1995
-------- -------- ---------- ----------
(In Thousands, Except Per Share Amounts)
Revenues a $617,632 $534,248 $1,905,036 $1,834,335
Cost of sales:
Production and delivery 277,489 270,955 951,863b 934,707c
Depreciation and
amortization 50,174 40,059 173,978 124,055
-------- -------- ---------- ----------
Total cost of sales 327,663 311,014 1,125,841 1,058,762
Exploration expenses - - - 13,888
General and
administrative expenses 39,200 51,666d 140,934d 165,253d
-------- -------- ---------- ----------
Total costs and
expenses 366,863 362,680 1,266,775 1,237,903
-------- -------- ---------- ----------
Operating income 250,769 171,568 638,261 596,432
Interest expense, net (35,650) (18,793) (117,291) (50,080)
Other income
(expense), net (1,002) 2,809 976 (1,590)
-------- -------- ---------- ----------
Income before income
taxes and minority
interests 214,117 155,584 521,946 544,762
Provision for income
taxes (106,517) (69,080) (247,168) (234,044)
Minority interests in
net income of
consolidated
subsidiaries (19,797) (18,614) (48,529) (57,100)
-------- -------- ---------- ----------
Net income 87,803 67,890d 226,249b,d 253,618c,d
Preferred dividends (10,744) (13,576) (51,569) (54,153)
-------- -------- ---------- ---------
Net income applicable
to common stock $ 77,059 $ 54,314 $ 174,680 $ 199,465
======== ======== ========== ==========
Net income per primary
and fully diluted
share of common stock $.39 $.27d $.89b,d $.98c,d
==== ==== ==== ====
Average common shares
outstanding 195,792 202,456 196,682 204,406
======= ======= ======= =======
Dividends paid per common
share $.225 $.225 $.90 $.675
===== ===== ==== =====
a. Includes net additions totaling $16.3 million for the 1996
quarter and $38.2 million for the 1996 twelve-month period, compared
with net reductions totaling $12.9 million for the 1995 quarter and
$68.6 million for the 1995 twelve-month period recognized under PT-
FI's copper price protection program.
b. Includes charges totaling $4.2 million ($1.9 million to net
income or $0.01 per share) consisting of $3.0 million for costs
related to a first-quarter civil disturbance and $1.2 million for an
early retirement program.
c. Includes a $12.5 million charge ($6.8 million to net income or
$0.03 per share) for a materials and supplies inventory reserve
adjustment in connection with the completion of PT-FI's 118,000 MTPD
expansion program.
d. Includes charges for costs of stock appreciation rights caused
by the increase in FCX's common stock price totaling $7.9 million
($4.3 million to net income or $0.02 per share) for the 1995
quarter, $12.7 million ($5.8 million to net income or $0.03 per
share ) for 1996 and $29.8 million ($16.1 million to net income or
$0.08 per share) for 1995. The 1995 quarter and twelve-month
period also include a $7.3 million charge ($4.0 million to net
income or $0.02 per share) for an early retirement program.
FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED BALANCE SHEETS (Unaudited)
December 31,
------------------------
1996 1995
---------- ----------
(In Thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 37,118 $ 26,883
Accounts receivable 236,750 256,121
Inventories 375,712 354,728
Prepaid expenses and other 11,636 15,542
---------- ----------
Total current assets 661,216 653,274
Property, plant and equipment, net 3,088,644 2,845,625
Other assets 115,674 82,847
---------- ----------
Total assets $3,865,534 $3,581,746
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 358,255 $ 351,485
Current portion of long-term debt
and short-term borrowings 136,617 86,943
Accrued income taxes 103,003 88,357
---------- ----------
Total current liabilities 597,875 526,785
Long-term debt, less current portion 1,426,299 1,080,289
Accrued postretirement benefits and
other liabilities 200,646 186,342
Deferred income taxes 359,684 305,490
Minority interests 105,644 101,159
Mandatory redeemable preferred stock 500,007 500,007
Stockholders' equity 675,379 881,674
---------- ----------
Total liabilities and stockholders'
equity $3,865,534 $3,581,746
========== ==========
FREEPORT-McMoRan COPPER & GOLD INC.
STATEMENTS OF CASH FLOW (Unaudited)
Years Ended December 31,
----------------------------
1996 1995
---------- ----------
(In Thousands)
Cash flow from operating activities:
Net income $ 226,249 $ 253,618
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 173,978 124,055
Deferred income taxes 54,194 22,735
Deferral of unearned income 97,173 -
Recognition of unearned income (51,066) (36,207)
Minority interests' share of net income 48,529 57,100
Other (9,625) 35,492
(Increase) decrease in working capital:
Accounts receivable 6,860 2,095
Inventories (6,474) (47,308)
Prepaid expenses and other 3,906 (4,593)
Accounts payable and accrued
liabilities 42,155 (86,747)
Accrued income taxes 14,645 72,876
---------- ----------
(Increase) decrease in working capital 61,092 (63,677)
---------- ----------
Net cash provided by operating activities 600,524 393,116
---------- ----------
Cash flow from investing activities:
Capital expenditures:
PT-FI (401,538) (435,475)
Atlantic Copper (51,855) (151,398)
Investment in Freeport Copper Company - (25,000)
Investment in Gresik smelter and other (35,310) (6,269)
---------- ----------
Net cash used in investing activities (488,703) (618,142)
---------- ----------
Cash flow from financing activities:
Proceeds from senior notes 445,570 -
Proceeds from debt 317,840 617,535
Repayment of debt (372,633) (259,885)
Net proceeds from infrastructure
financing - 242,775
Purchase of FCX common shares (220,997) (177,755)
Cash dividends paid:
Common stock (175,766) (137,563)
Preferred stock (52,437) (50,591)
Minority interests (44,045) (38,897)
Other 882 12,038
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Net cash provided by (used in) financing
activities (101,586) 207,657
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Net increase (decrease) in cash and cash
equivalents 10,235 (17,369)
Cash and cash equivalents at beginning
of year 26,883 44,252
---------- ----------
Cash and cash equivalents at end of year $ 37,118 $ 26,883
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CONTACT: Freeport-McMoRan Copper & Gold, Inc., New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. E. Saporito, 504/582-4476 Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System D. Sammons, 504/582-4474 |
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