FREEPORT-McMoRan INC. REPORTS FOURTH-QUARTER AND YEAR-END 1994 RESULTS.NEW ORLEANS--(BUSINESS WIRE)--Jan. 24, 1995--Freeport-McMoRan Inc. (NYSE NYSE See: New York Stock Exchange : FTX (Fault Tolerant UNIX) Stratus Computer's version of Unix System V for its XA/R fault tolerant computer systems. See also FTTx. (operating system) FTX - Stratus' Unix operating system. ) reported fourth-quarter 1994 net income applicable to common stock of $18,392,000, $0.13 per share, after gains/charges, compared with a net loss of $20,264,000, $0.14 per share, after gains/charges, a year ago. For the twelve months ended December December: see month. 31, 1994, FTX reported net income of $41,443,000, $0.30 per share, after gains/charges, compared with a net loss of $126,203,000, $0.89 per share, after gains/charges, a year ago. The following factors contributed to the difference between the quarterly periods: -- Higher Copper Sales Volumes. PT-FI's sales of copper during the fourth quarter of 1994 were higher than the year-ago period primarily because of 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 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. , which averaged 75,200 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. of ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. per day (MTPD MTPD Metric Tons Per Day MTPD Matsushita Toshiba Picture Display MTPD Maximum Tolerable Period of Disruption MTPD Move to Previous Data ) during the 1994 quarter compared with 71,700 MTPD during the fourth quarter of 1993. Gold sales were lower than in the 1993 quarter when higher gold grades were mined. PT-FI's fourth-quarter 1994 sales of 206.9 million pounds of copper and 213,800 ounces of gold were somewhat lower than anticipated primarily because weather conditions delayed one concentrate shipment until January January: see month. 1995. Both copper and gold production and sales will improve significantly in 1995 once the mine/mill expansion is complete. FTX's metals affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. , 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 (NYSE: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 ), expects to attain 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". of 115,000 MTPD during the second half of 1995, with expansion-related construction approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 80% completed and engineering and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. concluded as of year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1994. For at least the twelve months following attainment of 115,000 MTPD, FCX intends to fine tune its operations in order to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. cost efficiencies and achieve maximum cash flows. During this optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. period, FCX will continue to review the feasibility fea·si·ble adj. 1. Capable of being accomplished or brought about; possible: a feasible plan. See Synonyms at possible. 2. of further expansions as well as the results of exploration activities in order to determine where best to make future investments in order to maximize shareholder returns. -- Metals Costs Analysis. Total unit cash production costs of 41.4 cents in the fourth quarter of 1994 were higher than the year-ago period when record gold ore grades, sales, and resulting credits to cost were achieved. Unit site costs were higher in the fourth quarter of 1994 compared with 1993 because of expansion-related activities and higher jobsite administrative expenses while copper royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. were lower on a per pound basis in the year-ago period due to lower copper prices which affect 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. payments. (Cash production costs include site production and delivery costs, treatment charges, and royalties net of gold and silver credits.) -- Unit cash production costs in the first quarter of 1995 should 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. fourth quarter results as higher unit site costs are expected to be essentially offset by increasing gold credits. The higher unit site costs in the first quarter will result from construction-related activities to our conveyor/transport system which must be completed prior to ramping up to 115,000 MTPD and the planned mining during this construction tie-in tie-in n. One thing that is related to or connected with another. Noun 1. tie-in - a fastener that serves to join or connect; "the walls are held together with metal links placed in the wet mortar during construction" period of lower grade ore that experiences lower recoveries, both leading to lower copper sales volumes and higher unit costs. Unit cash production costs for the remainder of 1995 are expected to be significantly lower, particularly in the second half of the year, as increasing gold credits associated with the expansion more than offset higher unit site costs which are expected to gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. decline throughout the year as the operations begin to maximize the economies of scale associated with the expansion. -- Improved Phosphate phosphate, salt or ester of phosphoric acid, H3PO4. Because phosphoric acid is tribasic (having three replaceable hydrogen atoms), it forms monophosphate, diphosphate, and triphosphate salts in which one, two, or three of the hydrogens of the Fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. Prices, Higher Margins. DAP prices are at their highest levels since early 1988 reflecting record purchases by China, reduced export availability of DAP from Morocco Morocco, country, Africa Morocco (mərŏk`ō), officially Kingdom of Morocco, kingdom (2005 est. pop. 32,726,000), 171,834 sq mi (445,050 sq km), NW Africa. and Jordan Jordan, country, Asia Jordan, officially Hashemite Kingdom of Jordan, kingdom (2005 est. pop. 5,760,000), 35,637 sq mi (92,300 sq km), SW Asia. It borders on Israel and the West Bank in the west, on Syria in the north, on Iraq in the northeast, and on Saudi , and a significant decrease in Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. exports. Large forward export sales to China and Iran in late 1994 have reduced the availability of product for domestic customers resulting in IMC-Agrico re-starting its Taft plant. Cash margins for FTX's agricultural minerals affiliate, Freeport-McMoRan Resource Partners (NYSE:FRP FRP Fremskrittspartiet (Norwegian: Progress Party; political party) FRP Fiberglass-Reinforced Plastic FRP Fiber Reinforced Polymer FRP Fibre Reinforced Polymer FRP Fleet Response Plan (US Navy) ), continue to benefit from high DAP prices as well as the cost benefits derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the IMC-Agrico joint venture. -- Higher Sulphur Sulphur, city, United States Sulphur, city (1990 pop. 20,125), Calcasieu parish, SW La.; inc. 1914. It is a trade center for an area producing natural gas, oil, and timber as well as sorghum, soybeans, cattle, and crawfish. Production, Lower Cost. Main Pass sulphur production volumes averaged 6,400 TPD TPD Tons Per Day TPD Therapeutic Products Directorate TPD Total and Permanent Disablement (insurance) TPD Temperature Programmed Desorption TPD Temporary Partial Disability (insurance) for the fourth quarter compared to 4,400 TPD in the fourth quarter of 1993 and unit cash production costs were lower than in the prior quarter because of ongoing cost cutting efforts. For 1994, sulphur production averaged nearly 6,200 TPD, well above the original full design rate. Production is expected to approximate the 6,000 TPD level for the immediate future. -- Sulphur prices have benefitted from the improving phosphate fertilizer market which caused world sulphur consumption to increase in 1994, the first upturn in five years. The industry's domestic sulphur sales increased nearly 800,000 metric tons during 1994 largely the result of record U.S. DAP exports to China. At year-end, sulphur prices were near $70 per long ton in central Florida
Central Florida is the central region of the United States state of Florida, on the East Coast. after beginning 1994 at under $50 per long ton. OTHER ACTIVITIES The Internal Revenue Service (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ) confirmed that the proposed distribution of FCX Class B common shares owned by FTX to FTX shareholders qualifies as a tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. distribution to both FTX and its common shareholders. The IRS ruling was a pivotal step in the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan and allows FTX to proceed with other steps necessary to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the restructuring, which is expected to be completed by mid- mid- pref. Middle: midbrain. 1995. FRP completed the acquisition of essentially all of the domestic assets of Pennzoil's sulphur division effective January 1, 1995. Pennzoil Pennzoil is an oil company originally founded in Oil City, Pennsylvania. In 1963, South Penn Oil merged with Zapata Petroleum to become Pennzoil. During the 1970s, the company moved its offices to Houston, Texas. will receive quarterly payments from FRP over 20 years based on the prevailing price of sulphur. The payments may be terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: earlier by FRP, through the exercise of a call option for $65 million, or by Pennzoil, through a $10 million put option. Neither option may be exercised prior to 1999. On January 20, 1995, FRP announced its quarterly cash distribution amount which, in addition to paying its public unitholders $0.60 per unit, included a payment of $0.26 per unit ($13.9 million) to FTX, FRP's general partner. FRP's total unpaid cash distributions due FTX now totals $353.1 million. FTX will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive this amount in the future from a portion of the quarterly distributable cash after the payment of $0.60 per unit to all unitholders. -0-
FREEPORT-McMoRan INC. AND CONSOLIDATED SUBSIDIARIES
PRODUCTION AND SALES
Fourth Quarter Twelve Months
1994 1993 1994 1993
METALS
PT-FI
Ore milled (metric tons
per day, MTPD) 75,200 71,700 72,500 62,300
Average ore grade
Copper (percent) 1.72 1.66 1.51 1.57
Gold (grams per MT) 1.42 2.08 1.31 1.46
Silver (grams per MT) 3.36 3.80 3.02 4.02
Copper (000s of recoverable pounds)
Production 210,500 201,900 710,300 658,400
Sales 206,900 202,000 700,800 645,700
Gold (recoverable ounces)
Production 226,800 328,100 784,000 786,700
Sales 213,800 322,500 794,700 762,900
Silver (recoverable ounces)
Production 382,500 422,200 1,305,400 1,541,200
Sales 408,700 402,900 1,335,400 1,480,900
RTM (since March 1993 acquisition)
Smelter operations
Concentrate treated (MT) 120,700 105,700 485,300 330,200
Anode production (000s of
pounds) 85,600 45,200 347,500 299,300
Cathode production (000s of
pounds) 78,800 33,400 312,100 227,300
Gold operations
Sales (ounces) 45,900 44,200 172,500 132,500
AGRICULTURAL MINERALS
Sales:
Phosphate fertilizers (short tons)/a
Diammonium phosphate
Florida 328,200 228,300 1,081,300
Louisiana 236,700 218,400 970,100
Other 50,600 86,900 216,500
--------- --------- ---------
Total sales 615,500 533,600 2,267,900 2,303,200
Monoammonium phosphate
Granular 56,300 53,800 298,300 423,300
Powdered 43,900 33,100 162,000 55,400
Granular triple
superphosphate 108,800 134,400 465,200 564,700
Phosphate rock
(short tons)/a 1,300,300 1,131,400 4,373,400 3,840,300
Sulphur (long tons)/b 501,300 526,700 2,087,800 1,973,200
ENERGY Oil and condensate (barrels) Sales 680,700 1,017,700 2,533,700 3,443,000
a. Certain information prior to the formation of IMC-Agrico was
not recorded on a basis consistent with that currently being
presented and therefore is not available. Reflects FRP's 46.5
percent share of the IMC-Agrico assets for the year ended June 30,
1994, while FRP received 58.6 percent of the cash flow generated
during such period. FRP's share of the IMC- Agrico assets for the
year ended June 30, 1995 is 45.1 percent, while FRP will receive 55.0
percent of the cash flow.
b. Includes 175,400 tons and 209,800 tons for the fourth quarter
of 1994 and 1993, respectively, and 739,900 tons and 1,138,800 tons
for the twelve-month periods of 1994 and 1993, respectively, which
represent internal consumption and Main Pass start-up sales that are
not included in sales for accounting purposes.
FREEPORT-McMoRan INC. AND CONSOLIDATED SUBSIDIARIES
AVERAGE REALIZED PRICES
Fourth Quarter Twelve Months
1994 1993 1994 1993
METALS
PT-FI
Copper (per pound)/a $ 1.03 $ .90 $ 1.02 $ .90
Gold (per ounce) 383.19 372.16 381.13 361.74
Silver (per ounce) 5.06 4.44 5.08 4.15
RTM Gold (per ounce)/b 363.37 340.23 363.05 337.33
AGRICULTURAL MINERALS
Phosphate fertilizers (per short ton)/c
Diammonium phosphate
Florida 153.96 113.64 146.53
Louisiana 159.80 125.98 152.48
Monoammonium phosphate
Granular 164.31 139.36 158.54
Powdered 137.36 107.65 129.24
Granular triple
superphosphate 120.38 93.13 114.76
Phosphate rock (per short
ton)/c 20.87 19.85 21.38
ENERGY Oil (per barrel) 14.82 12.73 13.74 14.43
a. Excluding amounts recognized under PT-FI's copper price
protection program, realizations would have been $1.33 and $0.80 for
the fourth quarter of 1994 and 1993, respectively, and $1.15 and
$0.82 for the twelve-month periods of 1994 and 1993, respectively.
b. Excluding hedging adjustments related to RTM's gold loans and
forward sales contracts, realizations would have been $371.62 and
$375.30 for the fourth quarter of 1994 and 1993, respectively, and
$375.34 and $368.53 for the twelve-month periods of 1994 and 1993,
respectively.
c. Represents average realization f.o.b. plant/mine. Certain
information prior to the formation of IMC-Agrico was not recorded on
a basis consistent with that currently being presented and therefore
is not available.
FREEPORT-McMoRan Inc. And Consolidated Subsidiaries
EARNINGS BY SOURCES (Unaudited)
Three Months Ended December 31,
1994 1993 (SEE NOTE)
(In Thousands)
Metals
FCX-operations $121,626/a $98,157
-exploration (10,855) $110,771 (8,711) $89,446
-------- -------
Agricultural minerals 38,954/b 5,147/c
Energy
Oil and gas:
FRP 585 (61,564)/d
FTX (129) 456 (9,233) (70,797)
-------- -------
Other, net (5,460) (9,636)
-------- -------
Operating income $144,721 $14,160
======== =======
Years Ended December 31,
1994 1993 (SEE NOTE)
(In Thousands)
Metals
FCX-operations $320,514/a $189,067/e
-exploration (40,380) $280,134 (33,748) $155,319
-------- --------
Agricultural minerals 123,782/b (105,020)/f
Energy
Oil and gas:
FRP 2,790 (61,545)/d
FTX (11,846) (9,056) 20,040/g (41,505)
-------- --------
Other, net (24,024) (97,254)/h
-------- --------
Operating income (loss) $370,836 $(88,460)
======== ========
NOTE: Restated to conform to 1994 presentation.
a. Includes a $32.6 million gain from an insurance settlement on
the June 1993 ore pass cave-in.
b. Includes a charge of $3.7 million and $8.0 million for the
three-month period and twelve-month period, respectively, for
remediation costs associated with a sinkhole beneath a phosphogypsum
storage stack at IMC-Agrico's New Wales, Florida fertilizer facility,
repair and cleanup costs related to an earthen dam breach at two of
its phosphate rock facilities and other miscellaneous charges.
c. Includes a $10.7 million gain on the sale of phosphate rock
acreage.
d. Includes a $60.0 million charge for asset recoverability.
e. Includes $37.1 million of restructuring and other related
charges.
f. Includes charges totaling $73.5 million for restructuring,
asset recoverability, and other related charges.
g. Includes a $69.1 million gain from an oil and gas property
sale and charges totaling $24.4 million for restructuring and other
related charges.
h. Includes charges totaling $70.5 million for an asset sale,
asset recoverability and other charges resulting from the
restructuring project.
FREEPORT-McMoRan INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Years Ended
December 31, December 31,
1994 1993 1994 1993
(In Thousands, Except Per Share Amounts)
Revenues $561,217 $485,589 $1,982,396 $1,610,581
Cost of sales:
Production and
delivery 353,275 312,466 1,297,007 1,141,705
Depreciation and
amortization 40,663 50,735 132,713/a 191,938/a
-------- -------- ---------- ----------
Total cost of
sales 393,938 363,201 1,429,720 1,333,643
Exploration expenses 11,663 17,090 47,052 65,080
Provision for
restructuring
charges - - - 67,145
Loss on valuation and
sale of assets, net - 49,255 - 64,114
Gain on insurance
settlement (32,602) - (32,602) -
General and adminis-
trative expenses 43,497 41,883 167,390 169,059
-------- -------- ---------- ----------
Total costs and
expenses 416,496 471,429 1,611,560 1,699,041
-------- -------- ---------- ----------
Operating income
(loss) 144,721 14,160 370,836 (88,460)
Interest expense,
net (24,208) (26,645) (91,834) (79,882)
Gain on conversion/
distribution of FCX
securities 19,027 13,681 114,750 44,116
Other expense, net (1,145) (3,810) (3,830) (2,727)
-------- -------- ---------- ----------
Income (loss) before
income taxes and
minority interests 138,395 (2,614)/b 389,922 (126,953)/b
Provision for income
taxes (49,840) (15,948) (148,388) (17,854)
Minority interests in
net (income) loss
of consolidated
subsidiaries (64,694)/c 3,884 (168,951)/c 61,689/c
-------- -------- ---------- ----------
Income (loss) before
extraordinary item and
changes in accounting
principle 23,861/d (14,678)/e 72,583/d (83,118)/e
Extraordinary loss on
early extinguishment
of debt, net - - (9,108) -
Cumulative effect of
changes in accounting
principle, net - - - (20,717)
-------- -------- ---------- ----------
Net income (loss) 23,861 (14,678) 63,475 (103,835)
Preferred dividends (5,469) (5,586) (22,032) (22,368)
-------- -------- ---------- ----------
Net income (loss)
applicable to
common stock $ 18,392 $(20,264) $ 41,443 $ (126,203)
======== ======== ========== ==========
Primary and fully
diluted net income
(loss) per share:
Before
extraordinary
item and changes
in accounting
principle $.13/d $(.14)/e $.37/d $(.74)/e
Extraordinary loss
on early extin-
guishment of debt - - (.07) -
Cumulative effect
of changes in
accounting
principle - - - (.15)
---- ----- ---- -----
$.13 $(.14) $.30 $(.89)
==== ===== ==== =====
Average primary and
fully diluted
common and common
equivalent shares
outstanding: 138,228 140,243 139,223 141,595
======= ======= ======= =======
Dividends per common share:
Cash $ - $.3125 $ .3125 $1.25
Property/f .2758 - 1.2946 -
------ ------ ------- -----
$.2758 $.3125 $1.6071 $1.25
====== ====== ======= =====
a. The decline primarily results from adjustments related to the
IMC-Agrico arrangements and lower Main Pass oil sales volumes. The
1993 period includes charges totaling $18.7 million resulting from
the restructuring project.
b. Includes net charges of $53.6 million in the three-month
period and $196.4 million in the twelve-month period for
restructuring the administrative organization, asset
sales/recoverability, and other related charges, net of gains on
asset sales.
c. Includes an additional minority interest charge of $15.6
million in the three-month 1994 period and $26.5 million in the
twelve-month 1994 period because FTX did not receive its
proportionate share of FRP distributions. The twelve-month 1993
period includes after-tax gains of $45.6 million in which minority
interests did not participate.
d. Includes gains of $12.4 million ($0.09 per share) and $74.6
million ($0.54 per share) in the three-month and twelve-month
periods, respectively, for the conversion/distribution of FCX
securities and $11.9 million ($0.09 per share in the three-month and
twelve-month period from an insurance settlement on the June 1993 ore
pass cave-in. Includes minority interest charges for $10.1 million
($0.07 per share) in the three-month period and $17.2 million ($0.12
per share) in the twelve-month period because FTX did not receive its
proportionate share of distributions from FRP.
e. Includes charges of $10.3 million ($0.07 per share) in the
three-month period and $37.5 million ($0.26 per share) in the
twelve-month period for the items discussed in note b, net of gains
on the conversion of FCX securities.
f. Reflects the fair market value of the FCX and MOXY shares
distributed to FTX stockholders.
FREEPORT-McMoRan INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS (Unaudited)
December 31,
1994 1993
ASSETS (In Thousands)
Current assets:
Cash and short-term investments $ 41,548 $ 39,785
Accounts receivable 312,264 268,762
Inventories 423,698 345,333
Prepaid expenses and other 18,331 25,675
---------- ----------
Total current assets 795,841 679,555
Property, plant and equipment, net 3,366,243 2,773,730
Other assets 211,491 260,782
---------- ----------
Total assets $4,373,575 $3,714,067
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 571,118 $ 408,289
Current portion of long-term debt and
short-term borrowings 24,412 49,256
---------- ----------
Total current liabilities 595,530 457,545
Long-term debt, less current portion 1,646,882 1,282,424
Accrued postretirement benefits and
pension costs 263,137 239,134
Reclamation and mine shutdown reserves 125,702 120,957
Other liabilities and deferred credits 172,722 212,536
Deferred income taxes 292,580 201,553
Minority interests in consolidated
subsidiaries 1,507,489 1,199,269
Stockholders' equity (deficit) (230,467) 649
---------- ----------
Total liabilities and stockholders'
equity $4,373,575 $3,714,067
========== ==========
FREEPORT-McMoRan INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF CASH FLOW (Unaudited)
Years Ended December 31,
1994 1993
(In Thousands)
Cash flow from operating activities:
Net income (loss) $ 63,475 $(103,835)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Cumulative effect of changes in
accounting principle - 20,717
Extraordinary loss on early extinguishment
of debt 9,108 -
Depreciation and amortization 137,038 199,506
Provision for restructuring charges,
net of payments - 23,890
Other noncash charges to earnings - 33,194
Loss on valuation and sale of assets, net - 64,114
Oil and gas exploration expenses 5,231 26,710
Amortization of debt discount and
financing costs 37,128 41,166
Gain on conversion/distribution of FCX
securities (114,750) (44,116)
Deferred income taxes 96,065 (39,035)
Minority interests' share of net
income (loss) 168,951 (61,689)
Cash distribution from IMC-Agrico in
excess of capital interest 43,293 -
Reclamation and mine shutdown expenditures (9,837) (9,980)
(Increase) decrease in working capital,
net of effect of acquisitions and dispositions:
Accounts receivable (44,614) 2,821
Inventories (40,320) 4,475
Prepaid expenses and other 7,350 (10,873)
Accounts payable and accrued liabilities 163,283 (24,590)
Other (14,574) (5,186)
--------- ---------
Net cash provided by operating activities 506,827 117,289
--------- ---------
Cash flow from investing activities:
Capital expenditures:
PT-FI (664,735) (450,854)
RTM, including acquisition cost (78,735) (12,658)
Main Pass (10,941) (37,427)
Agricultural minerals (18,740) (14,743)
Oil and gas (12,493) (35,455)
Other (20,577) (27,450)
Proceeds from asset sales 112,002 145,211
Other - 4,375
--------- ---------
Net cash used in investing activities $(694,219) $(429,001)
--------- ---------
Cash flow from financing activities:
Proceeds from sale of:
FCX Preferred Stock $252,985 $561,090
FCX 9 3/4% Senior notes 116,276 -
FRP 8 3/4% Senior subordinated notes 146,125 -
Purchase of FTX, FCX, and FRP equity shares (116,685) (38,711)
Distributions paid to minority interests:
FCX (110,312) (74,848)
FRP (121,184) (121,180)
Proceeds from (repayments of) debt, net 149,974 (179,544)
Repurchase of 10 7/8% Senior Debentures (142,919) -
Distribution of MOXY shares (35,441) -
Net proceeds from infrastructure financing 110,825 20,000
FTX cash dividends paid:
Common stock (44,467) (175,890)
Preferred stock (22,110) (22,384)
Other 6,088 1,962
-------- --------
Net cash provided by (used in) financing
activities 189,155 (29,505)
-------- --------
Net increase (decrease) in cash and short-term
investments 1,763 (341,217)
Cash and short-term investments at beginning
of year 39,785 381,002
-------- --------
Cash and short-term investments at end of
year $ 41,548 $ 39,785
======== ========
CONTACT: Freeport-McMoRan 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 |
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