Freeport-McMoRan (FCX) This autumn 2024 Earnings Name Transcript

Freeport-McMoRan (FCX -1.51%)
This autumn 2024 Earnings Name
Jan 23, 2025, 10:00 a.m. ET

Contents:

• Ready Remarks
• Questions and Solutions
• Name Members

Ready Remarks:

Operator

Girls and gents, thanks for standing by. Welcome to the Freeport-McMoRan fourth-quarter convention name. [Operator instructions] I’d now like to show the convention over to Mr. David Joint, vice chairman, investor relations.

Please go forward, sir.

David P. Joint — Vice President, Investor Relations

Good morning, everybody, and welcome to the Freeport convention name. Earlier this morning, FCX reported its fourth-quarter and full-year 2024 working and monetary outcomes. A duplicate of as we speak’s launch with supplemental schedules and slides can be found on our web site, fcx.com. At the moment’s convention name is being broadcast dwell on the Web.

Anybody might hearken to the convention name by accessing our web site residence web page and clicking on the webcast hyperlink for the convention name. Along with analysts and buyers, the monetary press has been invited to hearken to as we speak’s name. A replay of the webcast can be obtainable on our web site later as we speak. Earlier than we start our feedback, we might wish to remind everybody that as we speak’s press launch and sure of our feedback on the decision embrace non-GAAP measures and forward-looking statements, and precise outcomes might differ materially.

Please check with the cautionary language included in our press launch and slides and to the danger elements described in our SEC filings, all of which can be found on our web site. Additionally on the decision with me as we speak are Richard Adkerson, chairman of the board; Kathleen Quirk, president and chief govt officer; Maree Robertson, govt vice chairman and CFO; and different senior members of our administration staff. Richard will make some opening remarks. Kathleen and Maree will overview our slide supplies after which we’ll open up the decision for questions.

Richard?

Richard C. Adkerson — Chairman of the Board

Good morning, everybody. Thanks all for becoming a member of us. Kathleen will overview our persevering with robust working efficiency, our robust monetary place, and our important natural development alternatives. Maree will overview our monetary outlook.

It goes with out saying we’re residing in a really attention-grabbing world as we speak. We now have new presidents in the US and in Indonesia. At Freeport, we’ll assist their administrations as we do in all of the nations the place we function. Our first work with Prabowo Subianto in Indonesia within the late Nineteen Nineties when he was common in Kopassus.

At the moment, he helped us resolve social unrest in our working space in Papua. Kathleen and I met with him just lately in Jakarta, once more in Washington, after which Lima at APAC. I used to be very impressed by his data of world affairs and his candid engagement on points necessary to buyers. We’re now working together with his authorities on a number of points necessary to our firm, together with acquiring permission to proceed exporting fiber concentrates in 2025 as we full repairs from the unlucky hearth at our huge new smelter and as we work on an extension of our license to function past 2041.

I am assured we’ll discover widespread floor on these and different points as we’ve executed over the just about 60 years of our working in Indonesia. I am going to flip the decision over to Kathleen and stay up for your feedback.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Richard. Thanks, everybody, for being on the decision. I am happy to report on our fourth-quarter outcomes, overview our 2024 efficiency, and replace you on our initiatives and outlook for the long run. We glance again on our efficiency in 2024 and I am on Slide 3 right here.

Our staff executed our plans in stable trend. We enhanced our robust basis to assist a optimistic long-term future centered on worth creation. We present on Slide 3 the annual info on our copper gross sales, unit prices, and monetary metrics for the 12 months 2024 in comparison with 2023. Our staff delivered on our plan.

We basically met our gross sales targets developed initially of 2024, and we barely improved on internet unit money prices in contrast with 2023 and our plan going into the 12 months. We’re pleased with Freeport’s lengthy observe document for profitable execution, and we do not take this as a given. It requires that we keep disciplined every day on managing the various underlying metrics which drive our outcomes, requires that we handle threat and keep on prime of what issues, each for the quick time period and the long run. It additionally requires that we discover options to beat unexpected challenges, which, as everyone knows, are inevitable, given the character of our enterprise.

Robust operational execution mixed with improved pricing allowed us to realize $10 billion in EBITDA for the 12 months 2024. That was 14% above 2023 EBITDA, and our working money flows in 2024 of over $7 billion or 35% improved from the prior 12 months. This was on a mean copper realization throughout 2024 of $4.21 per pound, and our realization for gold was barely above $2,400 per ounce. As we go ahead, our staff is concentrated on alternatives to constantly enhance and drive worth in our current operations and thru our natural development portfolio.

We take a look at our priorities for 2025, our staff may be very targeted on quite a few initiatives and I will define the important thing ones right here. The primary one, and it is a theme at Freeport every single day, it is execution. Our staff is dedicated to robust execution of our plans once more this 12 months, doing what we are saying, delivering on our plan, volumes, value targets, and capital initiatives safely and effectively whereas in search of alternatives to seize upside. A second focus space is scaling our leach alternative.

We set a goal to achieve a run fee of 300 million kilos by the top of 2025 and to construct on that with extra scale in 2026 on our path to 800 million kilos of incremental copper every year by 2030. A 3rd focus space is the PT-FI smelter. Our staff has executed this advanced venture properly and has stepped up to answer the current hearth incident. We now have a plan, a stable restoration plan that we’re executing on, and that may allow us to ship this venture throughout 2025.

It is necessary for us not solely to be totally built-in and get the smelter up and operating but additionally necessary as we search to increase our working rights past 2041 in Indonesia. You will see us speaking extra about innovation. Innovation is a serious precedence as we go ahead. Our work so far signifies a big untapped potential worth on this space, and we have a staff engaged on it to drive that worth.

Equally necessary, we’re persevering with to construct optionality in our development portfolio. We now have quite a few key milestones recognized in 2025, and we have three main initiatives that we’re presently engaged on for future development. I will overview markets on Slide 5, and you’ll see the place copper costs have been, they traded in a broad vary through the 12 months 2024 between $3.67 per pound and $4.92 per pound, averaging $4.15 per pound on the LME. On the U.S.

COMEX alternate, costs had been barely larger than the LME, and 12 months so far, the differential has grown and is now — has averaged about $0.17 per pound via the primary a part of 2025. Throughout 2024, copper costs principally adopted macro sentiment, which weighed favorable to U.S. financial information, fee cuts within the U.S., and the potential for financial stimulus in China towards ongoing financial pressures in China, a robust U.S. greenback and uncertainties on U.S.

tariff and commerce insurance policies that the markets have been targeted on from late final 12 months. At a micro degree, demand continues to develop, and that is supported by secular demand tendencies related to electrification, which has offset a few of the affect of weak spot that we have seen in sure extra cyclical sectors. Within the U.S., our prospects are reporting stable demand for energy cable and constructing wire related to substantial funding in electrical infrastructure and AI information facilities. Development within the energy sector is offsetting weak spot in conventional demand sectors presently coming from residential building weak spot and the auto sector.

Turning to China. Demand from China continues to be supported by important investments within the electrical grid and continued development in China’s manufacturing of electrical automobiles. We have seen extremely publicized stories of weak spot in China’s property sector and that is influenced sentiment. However the actuality is China’s demand for copper continues to develop, albeit it had modest development in demand in 2024.

We’re seeing current information factors out of China that point out quite a few sectors are poised for higher development in 2025. And along with potential stimulus actions to assist financial development targets, their assist for doubtlessly larger development in demand from China as we transfer via 2025. We need to spotlight copper’s superior conductivity and that makes it the steel relating to electrification. New huge funding within the energy grid, renewable technology, expertise infrastructure, and transportation are driving elevated demand for copper and forecasts name for above-trend development in demand for the foreseeable future.

As we match this up with provide, we proceed to see a balanced market close to time period and important deficit circumstances longer run. That is going to require important funding by the {industry} in addition to progressive applied sciences to construct provides long run. And at Freeport, we’re pushed the availability kind reliably and responsibly to this rising market. We’ll transfer into the fourth-quarter outcomes on Slide 6, the place we offer a abstract of the outcomes.

Our working efficiency within the fourth quarter was stable. Our gross sales and internet unit prices had been barely higher than our steering going into the quarter. We have made loads of progress since our final replace name in October at our Indonesian smelter refinery venture. The smelter restoration actions are in progress.

Lengthy lead gadgets are anticipated to come up within the March-April time-frame, and we count on to recommence manufacturing by center of this 12 months. The valuable metals refinery, which was designed to refine valuable metals from our current smelter in Indonesia in addition to the brand new smelter was not impacted by the hearth, and we produced our first gold bar in late 2024. Product operations on the refinery have gone very properly. And following completion of the smelter ramp-up, our Indonesian mine and smelting operations can be totally built-in.

In parallel with engaged on the smelter restoration, we have made nice progress with the Indonesian authorities to permit us exports through the interval of the smelter repairs. We did obtain approval in late 2024 to replace our quota for the 12 months 2024, and that allowed us to make some extra shipments in December. We’re presently working with the federal government on 2025 exports, and we count on to obtain approval within the first quarter. We’re additionally working very arduous to progress initiatives to construct worth from natural development.

We benefited Freeport from a big reserve and useful resource place with near-term, medium-term, and long-term embedded development choices. We’re difficult ourselves to benefit from innovation to enhance efficiencies, cut back prices and capital depth, and shorten lead instances for our initiatives. The excessive potential progressive leach initiative is a good instance of this. We achieved an approximate 50% in copper manufacturing from this initiative in 2024 at a really low value, and there are initiatives in movement to focus on an annual run fee of 300 million kilos by the top of this 12 months.

And that is 40% larger than what we achieved in 2024, with alternative for additional positive aspects sooner or later. We’re additionally advancing our brownfield growth alternatives to place the enterprise for longer-term development to provide a market with elevated necessities for copper. We ended the quarter in a robust place financially. As we glance ahead, we see nice worth in our enterprise, supported by our management function in copper, a market with extremely engaging elementary outlook matched up with our portfolio of high-quality belongings and future prospects for robust money move technology to assist investments in value-enhancing initiatives and returns to shareholders.

I am going to undergo on Slide 7, our operations replace throughout our geographic areas. And I am going to begin with the U.S. the place we’re making good progress with our initiatives to enhance efficiencies and price efficiency regardless of a decline in ore grades in current historical past. Information we monitor frequently concerning our asset efficiencies and different key indicators have trended extra favorably during the last a number of months.

As we glance ahead, we count on manufacturing within the U.S. to extend by 8% in 2025, with alternatives for additional will increase in 2026 and 2027. Absent adjustments in commodity-based enter prices, we’re focusing on unit prices to development decrease every year over this three-year interval. With 2024 behind us, our objective was to make 2024 the low watermark 12 months for our U.S.

enterprise. Structurally, we take care of decrease grades within the U.S. and hauls are getting longer. The autonomous haul truck conversion being deployed in 2025 at Bagdad will enable us to check the potential for this software on a broader scale at different operations.

The incremental leach kilos at scale may even profit our value place as we go ahead. We additionally initiated a brand new venture throughout 2024 centered on integrating new expertise and automation to optimize efficiency in our fundamental mining capabilities. We imagine there may be important alternative right here for worth creation via significant value discount, which might improve margins and likewise increase reserves from recognized mineralization, which is presently economically restricted underneath our present reserve pricing. Lots of you have got been following this.

We’re following it very carefully. U.S. laws contemplating copper as a vital mineral for built-in producers. If that is enacted, this can give us an additional profit of probably being eligible for a tax credit score of 10% of our working value within the U.S.

In South America, the staff at our Cerro Verde operation posted one other stable quarter with robust working charges and mill recoveries. The staff is doing a very good job with value administration as evidenced by a 13% enchancment in South America unit value over the year-ago fourth quarter. As you may see in our steering, Cerro Verde grades are anticipated to be barely decrease in 2025 in contrast with 2024. We count on long-term averages to recuperate to the 900 million pound every year vary at Cerro Verde.

At El Abra, we’re optimistic in regards to the alternative to check an initiative so as to add warmth to our leach course of, and that has loads of promise to offer incremental near-term manufacturing there. Turning to Indonesia with one other stable quarter, and the staff achieved a number of new working information once more in 2024. Our staff is persistently delivering robust volumes of each copper and gold from our large-scale underground ore our bodies and has demonstrated this persistently during the last a number of years. Throughout late 2024, we efficiently accomplished building of a venture, a $500 million vary venture to put in a copper cleaner circuit to boost mill efficiency at Grasberg.

And as you may see within the reference slide on Slide 26, the outlook for Grasberg is optimistic with a robust multiyear outlook for important copper and gold manufacturing. For 2025, our steering at Grasberg displays downtime related to two main mill restore initiatives scheduled through the 12 months. That is anticipated to lead to decrease volumes within the first quarter in contrast with the stability of 2025. We additionally needed to remark, we have acquired some questions on current press stories popping out of Indonesia concerning the potential change in necessities for retention of export proceeds.

There have been new laws issued in 2023, and that required PT-FI to deposit 30% of its U.S. greenback export proceeds in a home money bearing account for 90 days. The federal government is presently contemplating potential adjustments to this regulation, which might improve the requirement but additionally enable withdrawals from the balances to fund enterprise necessities. The small print of the potential modifications haven’t been finalized, and Freeport and different firms in Indonesia are discussing the proposals with the federal government in an effort to keep away from necessities that would have a adverse affect on our enterprise.

We’ll transfer to our development and progressive leach alternative, the place we proceed to be inspired by the numerous worth potential from this initiative. The chart on the left aspect of Slide 8 reveals our progress over the previous few years. We have been profitable in deploying a brand new sequence of working practices to recuperate incremental copper beforehand considered waste. Our current positive aspects have been within the areas of including scale to our focused answer injection wells, progressive approaches to areas within the leach stockpile beforehand inaccessible, and increasing thermal covers on prime of the stockpiles and optimizing our answer chemistry.

We now have a number of extra initiatives underway in 2025, and we’re focusing on reaching the annual run fee of 300 million kilos by the top of this 12 months, with the potential to supply 300 million to 400 million kilos throughout 2026 from these initiatives. We’re actually enthusiastic about initiatives being deliberate so as to add warmth to the stockpiles and discipline testing of components. Finally, our objective is to realize 800 million kilos every year from this value-enhancing development initiative, the dimensions of a serious new mine that is obtained very low capital funding required, very low incremental working prices, which can considerably improve the worth and aggressive place of our Americas manufacturing. Simply to touch upon the price of this progressive leach, so far, it has been properly under $1 incrementally per pound.

And what’s so thrilling about it’s we’re bringing on manufacturing of product that was thought-about waste prior to now. We have already incurred the mining value, so we’re spending incremental {dollars} to get extra copper and it is had actually loads of worth potential and that is why we’re pursuing it so aggressively. We have an in depth stock of considerable residual copper from materials already mined. We have industry-leading technical experience and a robust multi-disciplined innovation staff devoted to the initiative.

On Slide 9 is a short replace on our natural development initiatives, all of that are brownfield alternatives the place we are able to leverage current belongings and set up operations. We talked in regards to the leach alternative. As well as, we even have alternatives for growth at Bagdad and our Lone Star operations within the U.S. At Bagdad, we’re persevering with to make investments in website infrastructure and tailings growth to place us to execute the venture extra effectively when the time is correct.

We count on to have the bulk or a lot of the autonomous vans deployed within the discipline this 12 months. That can present the flexibility to be extra environment friendly with labor at this distant location. In parallel, we’re additionally persevering with to pursue alternatives to scale back the capital depth of the venture. We’re monitoring markets and site-specific elements and hope to be able to decide on the trail ahead by the year-end.

Within the Lone Star District the place we have already got current operations, it is our latest mine within the U.S. We’re engaged in research to outline a serious brownfield growth. We’re focusing on alternatives there that would double the present manufacturing ranges of 300 million kilos every year. We have a really massive useful resource at this location and count on this district will develop into a big asset for Freeport in Arizona within the subsequent decade.

In El Abra in Chile, we have talked about this prior to now. We’re making ready an environmental affect assertion. We count on to be full and submitted by the top of this 12 months. The venture includes funding in a brand new concentrator of scale just like the dimensions of the Cerro Verde concentrator we put in 10 years in the past.

We have plans for investments and a desalinization plant and likewise a pipeline system to assist our water necessities. The chance from the venture is to offer 750 million kilos of annual copper manufacturing, it’s extremely massive scale, and 9 million kilos of molybdenum every year. It is obtained an extended lead time to it. It requires seven to eight years of lead time, however we’re presently advancing it to offer choices for the long run and value-driven choices to spice up our manufacturing sooner or later because the world wants extra copper.

In Indonesia, we’re persevering with to develop the Kucing Liar ore physique inside the Grasberg district. That improvement continues towards a focused graduation of manufacturing by 2030. We’re additionally very enthusiastic about extra exploration alternatives under the Deep MLZ ore physique. And extension of our working rights will set us up for extra long-term improvement choices on this extremely engaging and precious district.

Our general goal is to maneuver shortly to outline the alternatives throughout the portfolio, rank them on worth potential, and allocate capital on a risk-reward foundation to offer worthwhile development choices for the long run. We’ll be disciplined in our strategy, focusing on alternatives that improve long-term worth and the place we imagine we are able to create that worth at a manageable threat. We’re shifting to our outlook on Slide 10, the place we present a three-year outlook for gross sales volumes of copper, gold, and molybdenum. Our copper steering for 2025, as you may word, has been adjusted by roughly 5%.

That includes up to date estimates for the mill upkeep initiatives deliberate in 2025 in Indonesia. Our gold estimates for 2025 are about 7% larger than the prior estimates, and that is benefiting from stock drawdowns throughout 2025 and likewise barely larger ore grades for gold. We offer quarterly estimates on Slide 25 of the reference supplies. The primary quarter volumes are anticipated to be the bottom of the 12 months due to mill upkeep and timing related to the anticipated export approvals, however you may see we get again to large-scale manufacturing as we transfer via the 12 months.

Our 2026 steering is for copper is unchanged, and our gold for 2026 is up about 100,000 ounces in contrast with our prior steering. We have added 2027 to our outlook, which is analogous to the outlook for 2026. For Slide 11, we present our value estimates for 2025 and we present the geographic combine, which has an affect on the general common. If you take a look at our money value estimate presently for 2025 of $1.60 per pound, that compares to $1.56 per pound in 2024.

The 2 outcomes are related however the weighting of volumes between the area’s leads to a slight improve. The necessary level we need to get throughout on this slide is that we count on U.S. prices to be decrease in 2025, and we’re targeted on driving these prices decrease as we go ahead. You possibly can see the price by area introduced on Slide 24 within the reference materials, which can present you the make-up of the price.

I am going to now flip the decision over to Maree who’s going to overview our money move outlook, after which we’ll come again and take your questions. Turning to you, Maree.

Maree Robertson — Govt Vice President, Chief Monetary Officer

Thanks, Kathleen. Simply turning to Slide 12. Placing collectively our projected volumes and price projections, we present modeled outcomes on Slide 12 for our EBITDA and money move at numerous copper costs, rating from $4 per pound to $5 per pound. These are modeled outcomes utilizing the typical of 2026 and 2027 with present quantity and price estimates and holding gold flat at $2,700 per ounce and molybdenum flat at $20 per pound.

Annual EBITDA would vary from over $11 billion every year at $4 copper to over $15 billion every year at $5 copper. Working money flows at these ranges could be practically $8 billion per 12 months at $4 and over $11 billion per 12 months at $5. We present sensitivities to varied commodities on the suitable. You’ll word, we’re extremely leveraged to copper costs with every $0.10 per pound change equating to roughly $425 million in annual EBITDA.

We may even profit from enhancing gold costs, with every $100 per ounce change in worth approximating $150 million in annual EBITDA. With our long-lived reserves and large-scale manufacturing, we’re well-positioned to generate substantial money move to fund future natural development and money returns underneath our performance-based payout framework. Transferring on to Slide 13. This reveals our present forecast for capital expenditures in 2025 and 2026.

Capital expenditures for 2024 had been $3.6 billion and are anticipated to approximate $4.4 billion per 12 months in 2025 and 2026. 2025 capital expenditures are about 5% above our October estimate, which largely displays minor revisions to venture estimates and an elevated allocation of capitalized curiosity. The discretionary initiatives approximated $1 billion in 2024 and are anticipated to approximate $1.6 billion to $1.7 billion in 2025 and 2026, with roughly 50% associated to the Kucing Liar improvement and the LNG venture at Grasberg. The stability consists of acceleration of tailings and different infrastructure to assist the Bagdad growth, the Atlantic Copper Round venture, which is predicted to be accomplished within the first half of 2026 and allotted capitalized curiosity.

The discretionary class displays the capital investments we’re making in new initiatives that underneath our monetary coverage are funded with the 50% of accessible money that’s not distributed. These initiatives are value-enhancing initiatives and are detailed on Slide 28 in our reference supplies. We now have a observe document of managing capital in a disciplined method, and we’ll proceed to deploy capital in a way that builds long-term worth. And at last, on Slide 14, we reiterate the monetary coverage priorities centered on a robust stability sheet, money returns to shareholders, and investments in value-enhancing development initiatives.

Our stability sheet is powerful with investment-grade scores, robust credit score metrics, and suppleness inside our debt targets to execute on our initiatives. Within the fourth quarter, we redeemed $730 million in maturing senior notes for money. We now have no important debt maturities till 2027. We now have distributed $4.7 billion to shareholders via dividends and share purchases since implementing the monetary coverage and have a gorgeous future long-term portfolio that may allow us to proceed to construct long-term worth for shareholders.

We actively monitor present market circumstances and thoroughly handle the timing of our initiatives to make sure our monetary flexibility stays robust. Our international staff is concentrated on driving worth in our enterprise, dedicated to robust execution of our plans, and offering money to put money into worthwhile development and returning to shareholders. Thanks, everybody, in your consideration. I am going to now hand again to Kathleen and we are able to take your questions.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Maree. Operator, we’re able to take questions.

Questions & Solutions:

Operator

[Operator instructions] Our first query comes from the road of Liam Fitzpatrick with Deutsche Financial institution. Please go forward.

Liam Fitzpatrick — Analyst

Good morning, Kathleen and Richard. I am going to simply stick to at least one query, given the steering there. Simply across the approval of the — approval to export focus from Indonesia. You mentioned you hope to obtain it in Q1, however do you have got any extra visibility on when in Q1? And does there come some extent on this quarter if you’ll begin to run out of storage capability, and due to this fact, may that begin to affect your manufacturing charges and your steering? Thanks.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Liam. As we talked about, we’re making actually good progress with the federal government. We have reviewed with them the incident, the repairs, the lead instances required. They visited the location, and they’re — they’ve indicated assist for permitting us to proceed exports throughout 2025.

They’ve additionally inspired us to maneuver as shortly as we are able to to complete the repairs. However they’ve indicated assist for this. Now it is a matter of getting documentation for the modification to the regulation. We perceive that they are engaged on the drafts of the brand new regulation or the modification to the regulation to permit this, and we count on this to be accepted within the close to time period.

We have some upkeep happening at Grasberg, as I discussed. And so our inventories are constructing nonetheless. We’re nonetheless delivery to our current smelter there. However our inventories are constructing a bit of bit.

But when we get this export allow, as we count on within the coming weeks, we’ll be good to start out delivery exports and likewise we’re bringing down these inventories.

Liam Fitzpatrick — Analyst

OK. Thanks.

Operator

Our subsequent query will come from the road of Katja Jancic with BMO Capital Markets. Please go forward.

Katja Jancic — BMO Capital Markets — Analyst

Hello. Thanks for taking my query. Kathleen, you talked about the ten% tax credit score potential. What are a few of the subsequent steps that have to occur for copper to really qualify for that? And is there any time line? In different phrases, is that this nonetheless attainable in ’25?

Kathleen L. Quirk — President and Chief Govt Officer

It is a matter of laws. There was a invoice that handed via the Home late final 12 months, which permit for the copper to be added to the checklist. And so we have to get extra laws handed via the opposite processes within the U.S. And so it nonetheless is feasible.

We’re flagging it. We’re monitoring it. And so I am unable to predict U.S. laws timing however it is crucial.

There are a variety of bipartisan assist for this. And so we’re following it very carefully, which might be very important for us if you happen to look one thing on the order of $500 million of profit.

Operator

Our subsequent query will come from the road of Alex Hacking with Citi. Please go forward.

Alexander Hacking — Analyst

Yeah. Thanks. Good morning. Simply digging into the discretionary capex spend for 2025.

The $400 million of Bagdad on the tailings infrastructure, is that explicitly tied to the growth or is that one thing you would want to do anyway? And is that a part of the $3.5 billion capex for the venture? After which the $600 million at Kucing Liar, when that arrives, are you able to remind me, does it improve Grasberg manufacturing or it is simply going to fill the mill as different sources of ore are depleting? Thanks very a lot.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Alex. With respect to Bagdad, we do have to increase tailings infrastructure long run. We need not do it now and that is why it is discretionary. If we do not transfer ahead with an growth, that — these {dollars} may very well be deferred into the long run.

However what we’re doing now could be advancing this tailings infrastructure that we must do in any case sooner or later in order that it provides us higher optionality as soon as we determine on whether or not to maneuver ahead to maneuver extra shortly. So we may — if we determine to not transfer ahead Bagdad, we may push that tailings funding out. The $3.5 billion of capital for the Bagdad growth is de facto the incremental capital. The tailings must be executed in some unspecified time in the future sooner or later in any case, so we do not embrace that as capital for the growth.

However we do have flexibility on the timing of this tailings infrastructure if we do not go ahead with the growth. After which on KL, what we’re speaking about there may be underneath our long-term plans, including 90,000 tons a day from KL. We’re additionally trying on the alternative to carry extra KL manufacturing as we take a look at the mine plans long run. And that may enable us to maintain a really lengthy life at excessive charges at Grasberg as we undergo 2041.

After we take into consideration the extension past 2041, there’s loads of KL materials that is nonetheless left over on the finish of 2041. So an extension would basically enable us to extend reserves with out extra exploration success. So it is a part of our long-range plans. We would at all times anticipated to have some declines in numerous ore our bodies over time, and this can enable us to maintain long-term large-scale manufacturing at Grasberg.

Alexander Hacking — Analyst

Thanks.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Alex.

Operator

Your subsequent query comes from the road of Chris LaFemina with Jefferies. Please go forward.

Chris LaFemina — Analyst

Thanks, operator. Hello, Kathleen. Hello, Richard. Thanks for taking my query.

I am simply interested by type of the geopolitical threat profile for Freeport. So your natural development is usually within the Americas however Indonesia on the finish of the day, as a result of it is such an incredible ore physique, it is at all times going to be a big contributor to earnings and a very necessary a part of the Freeport funding case. And if we expect again to the acquisition of Phelps Dodge, in hindsight, that was sensible as a result of it gave you geographic diversification. And if you did have challenges in Indonesia, you had different belongings within the portfolio that had been capable of principally maintain the enterprise as you handled these different challenges.

So one choice now, which is an choice that I sense that you simply’re pursuing is early stage investments in these longer lead time natural development initiatives, which on the finish of the day, would assist diversify your earnings combine a bit of bit extra to the Americas. However I’m wondering, is M&A, just like Phelps Dodge practically 20 years in the past, is M&A a possible path to derisking the enterprise from a geopolitical perspective? I imply, once more, Grasberg, wonderful ore physique, at all times going to be close to the underside of the price curve. However loads of the type of worth leakage that we persistently see there, it looks like these issues do not actually ever come to an finish. There’s at all times some new negotiation that has to occur or some new type of supply of type of a pound to flesh out of Freeport to proceed to function there.

So simply interested by the geopolitical threat normally. Thanks.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Chris. By way of the funding case, after all, we have an excellent alternative in Indonesia. And as Richard was saying earlier, we have near a 60-year historical past there. And our staff has at all times discovered a method to execute very positively and generate worth.

So we’ve loads of confidence and really feel optimistic in regards to the long-term outlook there. However when it comes to the alternatives, we’re actually excited in regards to the funding case we’ve within the Americas and significantly within the U.S. And the leach initiative, when you concentrate on attending to 800 million kilos, and I do know we’re not there but. We have extra work to do to get there.

However the alternative to have 800 million kilos of incremental copper at a money value, which is within the — approach lower than the present $3 and we have been lower than $1 proper now, and actually very restricted capex, you are speaking about a chance there the place some individuals are investing $10 billion to realize that. And we’re not having to try this. So we’ve loads of alternative to create that worth within the U.S. not solely from the leach alternative but additionally from these value discount alternatives.

And people drop proper to the underside line. We have this new innovation initiative that we stood up final 12 months, and we have formidable targets to scale back our prices meaningfully within the U.S. That can drop proper to the underside line and create loads of worth, not solely from with the ability to have larger margins however increasing the reserves as a result of we have loads of reserves within the U.S. which might be economically restricted.

So we’re very excited in regards to the alternative for low capital depth alternatives within the U.S. that may generate loads of worth. And also you keep in mind that drops to the underside line. We do not have important taxes we’re paying within the U.S.

We do not have a royalty construction, and so forth., so we’re very, very enthusiastic about that. With regard to M&A and I am going to let Richard remark as properly on his ideas, however we do monitor alternatives throughout the {industry} frequently. The Phelps Dodge alternative that you simply talked about in 2007, we weren’t planning on doing an acquisition however the alternative was introduced, and we had been capable of benefit from it as a result of we had been ready. So we’ll at all times look, we’ll at all times be ready for alternatives as they could come.

However we do not see, as a part of our technique, getting concerned in a aggressive public sale course of or one thing on that order. We’ll look to M&A for alternatives the place we are able to generate synergies, the place we are able to use our technical capabilities so as to add worth to current operations. This leach initiative is one which will give us a chance sooner or later to consolidate extra and generate extra worth from it. However it’s not needed.

We do not have to do an M&A. We glance — we can be opportunistic. However we really feel inside our personal plan, we have an actual alternative to create worth and do not should do M&A. However Richard, do you need to add to something I mentioned there?

Richard C. Adkerson — Chairman of the Board

Thanks, Kathleen. Thanks, Chris. And I will attempt to be actual quick with this, Chris. We are able to speak later.

However you level out how buying Phelps Dodge helped diversify Freeport in Indonesia. However however, having Indonesia to assist the operations within the Americas gave us the flexibility to be far more aggressive in the best way we handle these operations and took benefit of alternatives in Phelps Dodge or every other firm may have with these low-grade mines. Truly, I have been speaking to Phelps Dodge for nearly 10 years earlier than we acquired them to get them to accumulate us, they usually by no means would do it. The world modified with China and we had that chance.

You look again on our industries when administration groups, and this goes throughout many firms, when administration groups, our board’s drive an M&A transaction for strategic causes, it is nearly at all times a nasty reply. So we place ourselves to run our firm with out having to make acquisitions. However we’re available in the market in order that if a chance involves us, we’re able to benefit from it. I imagine in our {industry}, M&A pushed by alternatives is the best way to have profitable M&A.

Chris LaFemina — Analyst

Thanks for that. Good luck.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Chris

Operator

Our subsequent query comes from the road of Daniel Main with UBS. Please go forward.

Daniel Main — UBS — Analyst

Hello there. Are you able to hear me, OK?

Kathleen L. Quirk — President and Chief Govt Officer

Sure

Daniel Main — UBS — Analyst

Nice. Thanks. A number of questions. Simply the primary one, I observed improve within the capex allotted to the smelter at Grasberg.

Is there any insurance coverage protection for the extra work to repair the hearth on the smelter?

Kathleen L. Quirk — President and Chief Govt Officer

The restore value is estimated at roughly $100 million and so that’s lined by insurance coverage. We now have not elevated our estimates general for the price of the smelter. What you are seeing come via in 2025 for essentially the most half is prices that we incurred in 2024 with the payables in 2025. However the incremental value of the repairs can be lined.

That is roughly $100 million can be lined by insurance coverage.

Daniel Main — UBS — Analyst

OK, that is clear. After which second query. Previous to the election — properly, the change of presidency in Indonesia, you had been heading towards, I suppose, the conclusion of the overview of the license extension, and so forth. Do you have got a visibility on the time line for if you’ll be getting into an identical course of with the brand new authorities?

Kathleen L. Quirk — President and Chief Govt Officer

As Richard talked about, we have met with the brand new authorities. We had the chance whereas we had been in Indonesia final 12 months in addition to when the President and others have visited U.S. and Peru. And so we’re discussing the advantages of this operation.

We’re reviewing with the President the monetary advantages. He remembers numbers from when he was concerned, as Richard mentioned, however he is been very impressed with the efficiency during the last a few years. And so we’re engaged in that. There is a regulation that was put in place final 12 months that has a top level view of the way you qualify for the extension.

And with the smelter repairs, we’ll be totally built-in, which can enable us to maneuver ahead. We even have the ten% requirement to promote an extra 10% efficient in 2041. And we’re having discussions with MIND ID a couple of sale and buy settlement. That is one other standards for the extension.

However it’s in everybody’s curiosity, and I believe each Freeport and the federal government perceive this, it is in everybody’s curiosity to increase this operation, to proceed to make investments in order that the advantages of this excellent operation can proceed properly into the long run. And that is clearly acknowledged inside the authorities of Indonesia. So we’re hoping to be able to use for the extension throughout 2025.

Daniel Main — UBS — Analyst

OK. So 2025 time line. OK, thanks. After which lastly, if I may simply squeeze 1 extra in, simply to observe up on the legislative pathway within the Senate for the vital minerals.

Do you have got any visibility on when the Senate can be reviewing the invoice?

Kathleen L. Quirk — President and Chief Govt Officer

We don’t. There are a variety of agenda gadgets they’re engaged on and we shouldn’t have visibility on it. It is on the agenda for overview however we do not have a time-frame.

Daniel Main — UBS — Analyst

Nice. Thanks. Thanks for taking my questions.

Operator

Our subsequent query comes from the road of Orest Wowkodaw with Scotiabank. Please go forward.

Orest Wowkodaw — Analyst

Hello. Good morning. Query about your capex steering. I used to be stunned to see the rise in ’25, however in all probability the ’26 information of $4.4 billion appeared excessive to me, simply on condition that you have not accepted any of the foremost development initiatives but.

Is there any capex related to these new development initiatives in that ’26 steering already?

Kathleen L. Quirk — President and Chief Govt Officer

As we had been speaking with Alex earlier, we have some capital in 2026 that if we do not transfer ahead with Bagdad would come out, in order that assumes that we will go ahead. But when we do not determine to go ahead, we may unfold it out past 2026. It additionally consists of some LNG spend. As Maree was saying, we have over 50% of the discretionary pertains to Kucing Liar and LNG.

However the one different factor actually in there in ’26 is that this flexibility round Bagdad’s tailings growth. I’ll say, although, we will be very disciplined about capex. We now have prior to now, we’ll proceed to be. We’re going to should make investments on this enterprise to sluggish manufacturing sooner or later.

We’ll be very targeted on bringing down capital depth, working the place we are able to to defer gadgets that we need not spend. And so we overview it very fastidiously and can do it in a prudent trend as we’ve prior to now.

Orest Wowkodaw — Analyst

If I may simply observe up, what’s a great run fee to imagine for sustaining capital now for the enterprise, say, past ’26?

Kathleen L. Quirk — President and Chief Govt Officer

Properly, I believe what you are taking a look at, we separate these initiatives between the sustaining capital line that you simply see on the capital aspect. That is a fairly good run fee. The deliberate investments relate to the — most of it pertains to the underground at Grasberg. That quantity won’t keep at $1 billion a 12 months.

We count on over time that, that may come down. So I imply, you are in all probability taking a look at one thing on the order of two% to 2.5% run fee with out main initiatives.

Orest Wowkodaw — Analyst

Thanks.

Operator

Our subsequent query comes from the road of Invoice Peterson with J.P. Morgan. Please go forward.

Invoice Peterson — Analyst

Yeah. Good morning and thanks for taking the questions and all the main points up to now. Realizing the query is hypothetical, however how does Freeport view the potential impacts to copper markets normally after which Freeport particularly from tariffs, whether or not they be 10% blanket or 25% towards Mexico or Canada? I imply, I suppose what’s the capacity of Freeport to maneuver product from one area to a different? And I suppose how does having the U.S. belongings assist defend and even profit Freeport relative to different copper producers?

Kathleen L. Quirk — President and Chief Govt Officer

Yeah. Properly, when it comes to the tariffs with respect to particularly within the U.S., Freeport doesn’t — we principally promote all of our product within the U.S. The U.S. as a market itself does import copper, however we don’t export copper from the U.S.

So the import of copper is what individuals are questioning about and whether or not these will carry a tariff. And also you see the premium being inbuilt proper now to the COMEX versus the LME, and individuals are attempting to handicap what that tariff may be for copper being imported into the U.S. However for us, we promote copper that we produce within the U.S., within the U.S. If there’s a continued premium for copper within the U.S., we’d seize that at Freeport as a result of our U.S.

contracts are primarily based on the U.S. worth. By way of globally, we produce in Indonesia, we’ll be producing copper. These flows will usually go to Asia.

And from South America, they are going to go to — usually, they do not come to the U.S., the piece from Cerro Verde. So when it comes to the affect on our scenario, it isn’t a commerce move concern for us. The extra regarding factor that we’re watching with respect to tariffs is whether or not or not they’d affect international development. And that is the main target, the priority that we’ve.

We need to ensure that the tariffs are in place, it does not affect general international development or create inflationary pressures within the U.S., which we’re simply coming off of moderating inflation. And so these are the 2 issues that we’re targeted on is whether or not the tariffs will have an effect on general international financial development and whether or not they are going to be inflationary for our U.S. operations. These are the 2 main issues.

Invoice Peterson — Analyst

Yeah, thanks. Thanks for these insights. After which on leaching, and I’ll have missed it, however we noticed the step down within the quarter, however you are focusing on now 300 million kilos run fee in exiting ’25. I suppose perhaps in additional element, what drove the sequential decline? And on the latter, on the rise, is that pushed by increasing efforts in El Abra or is that this additional tech advances or benefiting from, I suppose, prior improvement that you’ve got already completed?

Kathleen L. Quirk — President and Chief Govt Officer

Yeah. The fourth quarter, we have basically met our plan for leach. It was roughly 50 million kilos, which was in keeping with our plan and mirrored the initiatives that we had been doing for this initiative in that quarter. As we take a look at the — what’s in our estimates proper now for 2025, we have simply over roughly 225 million kilos of incremental copper in our present forecast.

We now have quite a few initiatives which might be in progress proper now with respect to deep raffinate injection, which is having access to areas inside the stockpile that have to get extra answer to it. And we’re doing that via injection and thru drilling. We’re scaling that initiative. We obtained quite a few initiatives the place we’re persevering with to, we name it, leach all over the place, get entry to areas that beforehand haven’t been capable of get to.

And we discovered inventive methods like utilizing helicopters to get to those areas. After which the seat alternative will begin to check that later this 12 months or subsequent 12 months. And that is what permits us to scale from 300 million to 400 million. However we expect primarily based on the initiatives we’ve happening now, we should always be capable to get to 300 million by the top of this 12 months, after which hopefully by the top of ’26, attending to 400 million with these extra initiatives we have happening.

So it is on observe. It is persevering with to get higher when it comes to alternative for us. As I used to be saying earlier than, take into consideration the chance to get to 800 million kilos at a really low value and maintain that. We have 39 billion kilos of copper that has beforehand been positioned that we have thought-about waste, and we’re attempting to get as a lot of that as we are able to.

If we get 20% of it, that is an enormous acquire for us.

Invoice Peterson — Analyst

Thanks, Kathleen. Finest needs to you and the staff in ’25.

Thanks, Invoice.

Operator

Our subsequent query comes from the road of Timna Tanners with Wolfe Analysis. Please go forward.

Timna Tanners — Analyst

Yea. Hey, thanks for together with me. I needed to simply observe up on the — a bit of bit extra element, if you happen to may, on the North American value chopping initiatives. Like how a lot of that’s the extra favorable mine plan? How are you seeing labor challenges? How are you contemplating 45X when you concentrate on development alternatives on prime of already favorable NOLs? Just a bit extra coloration there, please.

Kathleen L. Quirk — President and Chief Govt Officer

Properly, the 45X could be — it isn’t in our plans. It will be incremental and be helpful, 10% discount in value. We’re actually targeted on driving prices decrease over the subsequent few years and we’re doing that via simply the fundamentals. We’re actually rationalizing contractors.

We have had the belongings that during the last couple of years have underperformed expectations. We’re now beginning to get higher efficiency, higher efficiencies out of the belongings, higher utilization, higher uptime, lowering the unplanned downtime. That is a key focus of ours. So it is — that is the place we’re very optimistic.

By way of the labor scenario, it is stabilized for us. We’re not having the turnover that we have had within the final couple of years. That stabilized issues, that permits us to coach folks, have them be retained and develop into extra productive. I talked about automation.

We’re doing that. We’re doing that at Bagdad. We’ll broaden that. We’ll work on centralizing some alternatives to scale back prices.

We have an entire sequence of alternatives, and we’re very enthusiastic about this innovation alternative that may enable us to carry down the price. And I am unable to overemphasize how a lot worth that’s for us as we glance ahead. The 45X could be 10%. Our objective is far more than that to get our prices down.

So keep tuned. It is excessive on our precedence checklist as we glance ahead.

Timna Tanners — Analyst

OK, we’ll do. Thanks, Kathleen for the extra coloration.

Operator

Our subsequent query comes from the road of Michael Dudas with Vertical Analysis. Please go forward.

Michael Dudas — Analyst

Good morning, Richard, Kathleen, Marie.

Kathleen L. Quirk — President and Chief Govt Officer

Hello, Mike.

Michael Dudas — Analyst

Taking a look at monetary profile, Kathleen, with internet debt at 0.4 instances and internet $1 billion, I suppose, ex smelter funding. And searching — and given consolation ranges that you’ve got indicated $3 billion to $4 billion of vary and staging of the capital spending, and you have got loads of shifting components, I perceive, within the subsequent couple of years. However are you — the technique to preserve this actually tight monetary profile even because the — going to be far more of the capex shifting ahead funded internally? Or is there capacity, given the place market costs are and the basics of the enterprise to perhaps be a bit of bit extra opportunistic in some capital allocation?

Kathleen L. Quirk — President and Chief Govt Officer

Yeah. Properly, when it comes to the online debt quantity being round $1 billion, what the coverage is, is 50% of the obtainable money is distributed to shareholders. And the opposite half is out there to both cut back debt or put money into our initiatives. And given our profile, we need to put money into initiatives which have a excessive worth and return on funding.

However since implementing the coverage in late 2021, our initiatives have been slower so these initiatives take some time to get off the bottom. And now you begin to see this improve in discretionary spending. And we’ll be — as we talked about earlier, we’ll watch out and prudent about how we handle it. However that debt capability of the place we’re at $1 billion versus $3 billion to $4 billion is de facto earmarked to fund these discretionary initiatives.

And once we take a look at the money obtainable for distribution to shareholders, that line is excluded. So that you’re actually taking a look at 50% of money move that’s excluding the discretionary so simply the $1.6 billion and the $1.1 billion for this 12 months, excluding the discretionary. So we have room on the stability sheet to fund this discretionary money with what we have gathered prior to now and the opposite 50% that we’re producing. So we have realized over an extended time period that it is prudent to have a robust stability sheet and we’ll proceed to try this.

However we do have some capability inside our present monetary targets to make investments which might be prudent, that make sense, that drive worth in our enterprise.

Michael Dudas — Analyst

Thanks, Kathleen.

Operator

Our subsequent query comes from the road of Bob Brackett with Bernstein Analysis. Please go forward.

Bob Brackett — Analyst

Good morning. A pair U.S.-related questions. One might be simply buckets of capital, however the Lone Star oxide growth, for instance, the place has that moved when it comes to discretionary capital initiatives? And the opposite could be an replace on Jetti Sources and sulfide leaching. I believe the trial at Bagdad has been there since ’22, El Abra since ’23.

The place is your degree of prudent optimism, ought to I say?

Kathleen L. Quirk — President and Chief Govt Officer

Yeah. With respect to the Safford venture, that is basically executed this 12 months. We’re finishing that and we’re really — it is really — Safford has been performing very, very properly in order that’s been full. The following part that we’re taking a look at long run is the sulfide growth.

However the exterior growth has gone properly, and you may begin to Safford charges and volumes rising. We have that in our forecast for this 12 months. With respect to Jetti and Cory Stevens is on the road and he works so much on this leach initiative and works so much with different third events, together with Jetti, I am going to let him touch upon it. However we’re persevering with to work internally.

We now have our personal staff that’s testing components. We now have our personal staff that is driving these operational techniques that we have been so profitable with over time. However we’re additionally partnering with third events to share experiences and perceive what the artwork attainable is with respect to this leaching expertise with respect to Jetti. We did do a trial at Bagdad.

This was — weren’t a serious deal for us. It was a stockpile that we did not count on to make use of sooner or later, and it had combined outcomes. However we’re persevering with to have dialogue with Jetti about what they are able to carry to the desk. However we’re actually targeted on attempting to determine ways in which we are able to construct this on our personal as a result of that permits us to retain the economics as a lot as attainable.

However we’re utilizing relationships that we’ve with {industry} individuals that may enable us to boost our understanding and share the outcomes that others have skilled and share a few of our methods as properly. Cory, you need to add something on third-party discussions versus our personal?

Cory Stevens — Senior Vice President and President, Freeport-McMoran Technical Companies

Sure. Kathleen, we’re fairly excited in regards to the components that we’ve in play. In truth, we’re utilizing an AI mannequin really to generate candidates, and we’ve a fairly refined and speedy check methodology the place we undergo and qualify candidates for components after which work these via the system for business deployment in a approach that we’re really going to go within the subsequent few months and have our first deployment at Morenci at a business scale. So we’re fairly excited a lot so that we have got different candidates within the pipeline, however we’re going at a tempo to maneuver ahead with a pilot but additionally scale it throughout Morenci with the infrastructure.

So we’re betting on the that, that is going to work after which go huge in a short time. In order that’s what is going on on, on that entrance.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Cory.

Bob Brackett — Analyst

Nice. Thanks a lot.

Operator

Our subsequent query comes from the road of Lawson Winder with BofA. Please go forward.

Lawson Winder — Analyst

Yeah. Thanks, operator, and thanks for becoming me in guys. I recognize it Simply needed to shortly ask on El Abra. So, Richard, you spoke about submitting permits in 2025 again in December or early — really, early November, I believe it was.

Simply curious when you concentrate on that venture, what do you concentrate on the suitable copper worth for that to work? And what’s the suitable IRR to justify that funding? After which can we count on a stability settlement as a part of the board approval for that full funds choice? Thanks a lot.

Kathleen L. Quirk — President and Chief Govt Officer

Properly, when it comes to the general economics, and we have executed loads of work, given the expertise that others have had with current initiatives in Chile, we have executed loads of work to check our capital and perceive what occurred within the different scenario to ensure that our economics are strong. And I take a look at the capital spend right here, it is a big quantity. It is going to be shared between Freeport and CODELCO, however it’s under a $4 worth. And if you happen to use the identical low cost fee within the U.S., it is properly under $4.

However getting the value at $4 would give us a better fee of return to regulate for the danger that we’ve at Bagdad within the U.S. By way of stability agreements in Chile, we’ll take a look at the panorama there, the place we presently shouldn’t have an settlement for El Abra, however we’ll take a look at whether or not that might make sense for this venture long run. However we’ve some time to determine as a result of we’ll submit the EIS by the top of this 12 months. After which we’ll undergo a allowing course of for a number of years with the federal government, and we’ll be able after that to decide.

However what getting the allow does is provides us loads of optionality to have a shovel-ready venture, that are few and much between on this world. So having a large-scale venture like this permitted will carry nice worth for Freeport.

Lawson Winder — Analyst

OK. Very properly mentioned. Thanks.

Operator

Our last query comes from the road of Brian MacArthur with Raymond James. Please go forward.

Brian MacArthur — Analyst

Hello. Good morning and thanks for taking my query. Can I simply get a clarification on the 7.5% export tax? You talked in regards to the smelter being repaired by midyear, however you additionally talked about you are in all probability going to pay the 7.5% export tax all via 2025. Is that going to occur even if you happen to get the smelter up and operating? Or is it nonetheless working the best way it used to work the place in the end, when the smelter is operating, that export tax goes away? Or has one thing modified in all of the negotiations as you’re employed to get your focus exports?

Kathleen L. Quirk — President and Chief Govt Officer

Yeah. Properly, the present regulation in Indonesia is 7.5% on exports. So we’re anticipating that the smelter can be began up in — by the top of June, however then there will be a ramp-up interval. So we’ll proceed to have some exports within the second half of the 12 months however they are going to decline considerably as we undergo and start ramping up.

So we have — in our value steering, we’ve export duties inbuilt on something we’re exporting, which is in keeping with the present regulation.

Brian MacArthur — Analyst

However then in 2026, it might nonetheless change, assuming the smelter is up and operating at full capability by year-end, proper?

Kathleen L. Quirk — President and Chief Govt Officer

2026 is zero. Sure, I imply, assuming we’ve capability, full capability and we do not have exports, it might be zero.

Brian MacArthur — Analyst

Nice. Thanks very a lot.

Kathleen L. Quirk — President and Chief Govt Officer

Thanks, Brian.

Operator

And with that, I am going to flip the decision again to administration for any closing remarks.

Kathleen L. Quirk — President and Chief Govt Officer

Properly, thanks, everybody, in your participation, your curiosity, your good questions. And in case you have any follow-ups, David Joint is out there. We stay up for protecting you up to date on our progress.

Operator

[Operator signoff]

Length: 0 minutes

Name individuals:

David P. Joint — Vice President, Investor Relations

Richard C. Adkerson — Chairman of the Board

Kathleen L. Quirk — President and Chief Govt Officer

Maree Robertson — Govt Vice President, Chief Monetary Officer

Kathleen Quirk — President and Chief Govt Officer

Liam Fitzpatrick — Analyst

Katja Jancic — BMO Capital Markets — Analyst

Alexander Hacking — Analyst

Alex Hacking — Analyst

Chris LaFemina — Analyst

Richard Adkerson — Chairman of the Board

Daniel Main — UBS — Analyst

Orest Wowkodaw — Analyst

Invoice Peterson — Analyst

Timna Tanners — Analyst

Michael Dudas — Analyst

Mike Dudas — Analyst

Bob Brackett — Analyst

Cory Stevens — Senior Vice President and President, Freeport-McMoran Technical Companies

Lawson Winder — Analyst

Brian MacArthur — Analyst

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