Freeport-McMoRan Reports Fourth-Quarter and Year Ended 2019 Results

 

Freeport-McMoRan Inc. (NYSE:FCX):

  •  Net income attributable to common stock totaled $9 million, less than $0.01 per share, in fourth-quarter 2019. After adjusting for net charges of $22 million, $0.02 per share, fourth-quarter 2019 adjusted net income attributable to common stock totaled $31 million, or $0.02 per share.
  •  Consolidated sales totaled 906 million pounds of copper, 317 thousand ounces of gold and 22 million pounds of molybdenum in fourth-quarter 2019, and 3.3 billion pounds of copper, 991 thousand ounces of gold and 90 million pounds of molybdenum for the year 2019.
  •  Consolidated sales for the year 2020 are expected to approximate 3.5 billion pounds of copper, 0.8 million ounces of gold and 88 million pounds of molybdenum, including 725 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum in first-quarter 2020. Sales are expected to increase to 4.3 billion pounds of copper and 1.4 million ounces of gold in 2021.
  •  Average realized prices in fourth-quarter 2019 were $2.74 per pound for copper, $1,491 per ounce for gold and $11.65 per pound for molybdenum.
  •  Average unit net cash costs in fourth-quarter 2019 were $1.67 per pound of copper and $1.74 per pound of copper for the year 2019. Unit net cash costs are expected to average $1.75 per pound of copper for the year 2020.
  •  Operating cash flows totaled $170 million in fourth-quarter 2019 and $1.5 billion (including $349 million of working capital and other sources) for the year 2019. Based on current sales volume and cost estimates, and assuming average prices of $2.85 per pound for copper, $1,500 per ounce for gold and $10.00 per pound for molybdenum, operating cash flows are expected to approximate $2.4 billion (including $0.2 billion of working capital and other sources) for the year 2020.
  •  Capital expenditures totaled $0.7 billion (including approximately $0.4 billion for major projects) in fourth-quarter 2019 and $2.65 billion (including approximately $1.5 billion for major projects) for the year 2019. Capital expenditures for the year 2020 are expected to approximate $2.8 billion, including $1.8 billion for major projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and completion of the Lone Star copper leach project in Arizona, and exclude estimates associated with the new smelter in Indonesia. FCX expects capital expenditures for the development of the new smelter in Indonesia to approximate $0.5 billion in 2020, of which approximately 49 percent will be attributable to FCX's equity interest.
  •  During fourth-quarter 2019, FCX generated $452 million in proceeds from asset sales associated with the previously announced sales of a portion of its Freeport Cobalt business and its interest in the lower zone of the Timok exploration project.
  •  At December 31, 2019, consolidated debt totaled $9.8 billion and consolidated cash totaled $2.0 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at December 31, 2019.
  •  On December 18, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on February 3, 2020.

Freeport-McMoRan Inc. (NYSE:FCX) reported net income (loss) attributable to common stock of $9 million (less than $0.01 per share) in fourth-quarter 2019 and $(239) million ($(0.17) per share) for the year 2019. After adjusting for net charges of $22 million ($0.02 per share), primarily reflecting net charges at PT-FI (mostly for historical contested tax audits) and metals inventory adjustments, partly offset by gains on sales of assets, adjusted net income attributable to common stock totaled $31 million ($0.02 per share) in fourth-quarter 2019. For additional information, refer to the supplemental schedule, "Adjusted Net Income," on page VII, which is available on FCX's website, "fcx.com."

Richard C. Adkerson, President and Chief Executive Officer, said, "During 2019, we progressed three major initiatives to enhance future cash flows and value for our shareholders. We are on schedule to establish large-scale production from our high-grade, low-cost and long-lived underground ore bodies at Grasberg; the Lone Star project in Arizona is nearing completion; and early results from our innovation initiatives to enhance productivity at our operations in the Americas are positive. Combined, these initiatives are expected to strengthen our cost position, future cash flows and long-term value for our shareholders, further advancing Freeport as foremost in the global copper industry. We are laser focused on execution of these plans designed to increase copper and gold sales by more than 30 percent, reduce unit net cash costs by approximately 25 percent and more than double operating cash flows in 2021 from 2019 levels."

SUMMARY FINANCIAL DATA

 

 

Three Months Ended
December 31,

 

Years Ended
December 31,

 

 

2019

 

2018

 

2019

 

2018

 

 

(in millions, except per share amounts)

 

Revenuesa,b

$

3,911

 

 

$

3,684

 

 

$

14,402

 

 

$

18,628

 

 

Operating incomea

$

775

 

 

$

316

 

 

$

1,091

 

 

$

4,754

 

 

Net income (loss) from continuing operations

$

42

 

 

$

374

 

 

$

(192

)

 

$

2,909

 

 

Net income (loss) attributable to common stockc,d

$

9

 

 

$

485

 

 

$

(239

)

 

$

2,602

 

 

Diluted net income (loss) per share of common stock:

 

 

 

 

 

 

 

 

Continuing operations

$

 

 

$

0.33

 

 

$

(0.17

)

 

$

1.79

 

 

Discontinued operations

 

 

 

 

 

 

(0.01

)

 

 

$

 

 

$

0.33

 

 

$

(0.17

)

 

$

1.78

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted-average common shares outstanding

1,457

 

 

1,457

 

 

1,451

 

 

1,458

 

 

Operating cash flowse

$

170

 

 

$

(62

)

 

$

1,482

 

 

$

3,863

 

 

Capital expenditures

$

735

 

 

$

580

 

 

$

2,652

 

 

$

1,971

 

 

At December 31:

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

2,020

 

 

$

4,217

 

 

$

2,020

 

 

$

4,217

 

 

Total debt, including current portion

$

9,826

 

 

$

11,141

 

 

$

9,826

 

 

$

11,141

 

 

 

 

 

 

 

 

 

 

 

a.

For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page X, which are available on FCX's website, "fcx.com."

b.

Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $33 million ($14 million to net income attributable to common stock or $0.01 per share) in fourth-quarter 2019, $(32) million ($(15) million to net income attributable to common stock or $(0.01) per share) in fourth-quarter 2018, $58 million ($24 million to net loss attributable to common stock or $0.02 per share) for the year 2019 and $(70) million ($(31) million to net income attributable to common stock or $(0.02) per share) for the year 2018. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page IX, which is available on FCX's website, "fcx.com."

c.

Includes net (charges) gains of $(22) million ($(0.02) per share) in fourth-quarter 2019, $324 million ($0.22 per share) in fourth-quarter 2018, $(275) million ($(0.19) per share) for the year 2019 and $379 million ($0.24 per share) for the year 2018 that are described in the supplemental schedule, "Adjusted Net Income," on page VII, which is available on FCX's website, "fcx.com."

d.

FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page X, which is available on FCX's website, "fcx.com."

e.

Working capital and other sources (uses) totaled $75 million in fourth-quarter 2019, $(556) million in fourth-quarter 2018, $349 million for the year 2019 and $(656) million for the year 2018.

SUMMARY OPERATING DATA

 

 

 

Three Months Ended
December 31,

 

Years Ended
December 31,

 

 

 

2019

 

2018

 

2019

 

2018

 

Copper (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

Production

 

827

 

 

841

 

 

3,247

 

 

3,813

 

 

Sales, excluding purchases

 

906

 

 

785

 

 

3,292

 

 

3,811

 

 

Average realized price per pound

 

$

2.74

 

 

$

2.75

 

 

$

2.73

 

 

$

2.91

 

 

Site production and delivery costs per pounda

 

$

2.12

 

 

$

1.98

 

 

$

2.15

 

 

$

1.76

 

 

Unit net cash costs per pounda

 

$

1.67

 

 

$

1.54

 

 

$

1.74

 

 

$

1.07

 

 

Gold (thousands of recoverable ounces)

 

 

 

 

 

 

 

 

 

Production

 

223

 

 

334

 

 

882

 

 

2,439

 

 

Sales, excluding purchases

 

317

 

 

266

 

 

991

 

 

2,389

 

 

Average realized price per ounce

 

$

1,491

 

 

$

1,255

 

 

$

1,415

 

 

$

1,254

 

 

Molybdenum (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

Production

 

21

 

 

26

 

 

90

 

 

95

 

 

Sales, excluding purchases

 

22

 

 

24

 

 

90

 

 

94

 

 

Average realized price per pound

 

$

11.65

 

 

$

12.75

 

 

$

12.61

 

 

$

12.50

 

 

 

a.

Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com."

Consolidated Sales Volumes

Fourth-quarter 2019 copper sales of 906 million pounds were 4 percent higher than the October 2019 estimate of 870 million pounds, and 15 percent higher than fourth-quarter 2018 sales of 785 million pounds, mostly reflecting higher sales from Indonesia, primarily associated with an extension of mining from the Grasberg open pit, which was completed in the fourth quarter, and the timing of shipments.

Fourth-quarter 2019 gold sales of 317 thousand ounces were 117 thousand ounces higher than the October 2019 estimate of 200 thousand ounces and approximately 20 percent higher than fourth-quarter 2018 sales of 266 thousand ounces, primarily reflecting an extension of mining from the Grasberg open pit and the timing of shipments.

Fourth-quarter 2019 molybdenum sales of 22 million pounds were slightly lower than both the October 2019 estimate and fourth-quarter 2018 sales of 24 million pounds.

Consolidated sales volumes for the year 2020 are expected to approximate 3.5 billion pounds of copper, 0.8 million ounces of gold and 88 million pounds of molybdenum, including 725 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum in first-quarter 2020. As PT-FI continues to ramp-up production from its significant underground ore bodies, metal production is expected to improve significantly by 2021.

Consolidated Unit Net Cash Costs

Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $1.67 per pound of copper in fourth-quarter 2019, were lower than the October 2019 estimate of $1.76 per pound, primarily reflecting higher copper and gold sales volumes. As anticipated, consolidated average unit net cash costs were higher than the fourth-quarter 2018 average of $1.54 per pound, primarily reflecting lower production volumes as PT-FI continues to ramp-up production from its significant underground ore bodies, and lower molybdenum by-product credits.

Assuming average prices of $1,500 per ounce of gold and $10.00 per pound of molybdenum for 2020 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for copper mines are expected to average $1.75 per pound of copper for the year 2020. The impact of price changes on 2020 consolidated unit net cash costs would approximate $0.01 per pound for each $50 per ounce change in the average price of gold and $0.03 per pound for each $2 per pound change in the average price of molybdenum. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. FCX expects consolidated unit net cash costs to decline by 2021, following a ramp-up period at PT-FI.

MINING OPERATIONS

Productivity and Innovation Initiatives. During 2019, FCX advanced initiatives in its North America and South America mining operations to enhance productivity, expand margins and reduce the capital intensity of the business through the utilization of new technology applications in combination with a more interactive operating structure. The pilot program initiated at the Bagdad mine in northwest Arizona in late 2018 was highly successful in utilizing data science, machine learning and integrated functional teams to address bottlenecks, provide cost benefits and drive improved overall performance. The program is now being implemented across the North America and South America operations.

A series of action items have been identified, prioritized and are being implemented. Based on the opportunities identified to date, FCX has incorporated higher mining and milling rates in its future plans, resulting in estimated incremental production of approximately 100 million pounds of copper in 2021 and approximately 200 million pounds in 2022.

Capital expenditures associated with these initiatives are expected to be attractive in relation to developing new copper supply. FCX currently estimates capital costs of these initiatives, principally for mining equipment and ongoing development of data science and machine learning programs, will approximate $200 million.

North America Copper Mines. FCX operates seven open-pit copper mines in North America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. In addition to copper, certain of FCX's North America copper mines produce molybdenum concentrate, gold and silver. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 72 percent undivided joint venture interest in Morenci using the proportionate consolidation method.

Operating and Development Activities. FCX has significant undeveloped reserves and resources in North America and a portfolio of potential long-term development projects. Future investments are dependent upon market conditions, and will be undertaken based on the results of economic and technical feasibility studies, including the incorporation of innovation initiatives to reduce capital intensity.

Through exploration drilling, FCX has identified a significant resource at its wholly owned Lone Star copper leach project located near the Safford operation in eastern Arizona. An initial project to develop the Lone Star leachable ores commenced in 2018, with first production expected during 2020. Initial production from the Lone Star leachable ores following a ramp-up period is expected to average approximately 200 million pounds of copper per year, with the potential for future expansion options. Total capital costs for the initial project, including mine equipment and pre-production stripping, are expected to approximate $850 million and will benefit from the utilization of existing infrastructure at the adjacent Safford operation. As of December 31, 2019, approximately $655 million has been incurred for this project, which is on schedule and within budget. The project also advances exposure to a significant sulfide resource. FCX expects to incorporate positive drilling and ongoing results in its future development plans.

Operating Data. Following is summary consolidated operating data for the North America copper mines:

 

 

Three Months Ended
December 31,

 

Years Ended
December 31,

 

 

 

2019

 

2018

 

2019

 

2018

 

Copper (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

Production

 

361

 

 

353

 

 

1,457

 

 

1,404

 

 

Sales, excluding purchases

 

358

 

 

333

 

 

1,442

 

 

1,428

 

 

Average realized price per pound

 

$

2.73

 

 

$

2.77

 

 

$

2.74

 

 

$

2.96

 

 

 

 

 

 

 

 

 

 

 

 

Molybdenum (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

Productiona

 

8

 

 

9

 

 

32

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

Unit net cash costs per pound of copperb

 

 

 

 

 

 

 

 

 

Site production and delivery, excluding adjustments

 

$

2.07

 

 

$

2.01

 

 

$

2.05

 

 

$

1.94

 

 

By-product credits

 

(0.22

)

 

(0.34

)

 

(0.24

)

 

(0.26

)

 

Treatment charges

 

0.11

 

 

0.12

 

 

0.11

 

 

0.11

 

 

Unit net cash costs

 

$

1.96

 

 

$

1.79

 

 

$

1.92

 

 

$

1.79

 

 

 

a.

Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines.

b.

For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com."

North America's consolidated copper sales volumes of 358 million pounds in fourth-quarter 2019 were higher than fourth-quarter 2018 copper sales volumes of 333 million pounds, primarily reflecting timing of shipments and higher production from Morenci. North America copper sales are estimated to approximate 1.6 billion pounds for the year 2020, compared with 1.4 billion pounds in 2019.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.96 per pound of copper in fourth-quarter 2019 were higher than fourth-quarter 2018 unit net cash costs of $1.79 per pound, primarily reflecting lower by-product/molybdenum credits.

Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $1.93 per pound of copper for the year 2020, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $10.00 per pound. The impact of price changes during 2020 on North America's average unit net cash costs would approximate $0.04 per pound for each $2 per pound change in the average price of molybdenum.

South America Mining. FCX operates two copper mines in South America - Cerro Verde in Peru (in which FCX owns a 53.56 percent interest) and El Abra in Chile (in which FCX owns a 51 percent interest). These operations are consolidated in FCX's financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.

Operating and Development Activities. Cerro Verde's expanded operations benefit from its large-scale, long-lived reserves and cost efficiencies and have continued to perform well. Debottlenecking projects and additional initiatives to enhance operating rates continue to be advanced. Cerro Verde concentrating operations averaged 396,800 metric tons of ore per day in fourth-quarter 2019, approximately 10 percent above design capacity. Ongoing productivity and innovation initiatives are targeting the opportunity to increase production to 420,000 metric tons of ore per day in 2021.

FCX continues to evaluate a large-scale expansion at El Abra to process additional sulfide material and to achieve higher recoveries. El Abra's large sulfide resource could potentially support a major mill project similar to facilities constructed at Cerro Verde. Technical and economic studies continue to be evaluated to determine the optimal scope and timing for the project in parallel with extending the life of the current leaching operation.

Operating Data. Following is summary consolidated operating data for South America mining:

 

 

Three Months Ended
December 31,

 

Years Ended
December 31,

 

 

 

2019

 

2018

 

2019

 

2018

 

Copper (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

Production

 

320

 

 

318

 

 

1,183

 

 

1,249

 

 

Sales

 

345

 

 

325

 

 

1,183

 

 

1,253

 

 

Average realized price per pound

 

$

2.76

 

 

$

2.74

 

 

$

2.71

 

 

$

2.87

 

 

 

 

 

 

 

 

 

 

 

 

Molybdenum (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

Productiona

 

8

 

 

8

 

 

29

 

 

28

 

 

 

 

 

 

 

 

 

 

 

 

Unit net cash costs per pound of copperb

 

 

 

 

 

 

 

 

 

Site production and delivery, excluding adjustments

 

$

1.85

 

c

$

1.77

 

 

$

1.85

 

 

$

1.79

 

d

By-product credits

 

(0.18

)

 

(0.26

)

 

(0.27

)

 

(0.24

)

 

Treatment charges

 

0.17

 

 

0.19

 

 

0.18

 

 

0.19

 

 

Royalty on metals

 

0.01

 

 

0.01

 

 

0.01

 

 

0.01

 

 

Unit net cash costs

 

$

1.85

 

 

$

1.71

 

 

$

1.77

 

 

$

1.75

 

 

 

 

 

 

 

 

 

 

 

 

a.

Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde.

b.

For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com."

c.

Includes a charge of $0.04 per pound of copper for adjustments to deferred profit sharing for prior years.

d.

Includes charges totaling $0.06 per pound of copper associated with Cerro Verde's three-year collective labor agreement.

South America's consolidated copper sales volumes of 345 million pounds in fourth-quarter 2019 were higher than fourth-quarter 2018 copper sales volumes of 325 million pounds, primarily reflecting timing of shipments. Sales from South America mining are expected to approximate 1.15 billion pounds of copper for the year 2020, similar to the year 2019.

Average unit net cash costs (net of by-product credits) for South America mining of $1.85 per pound of copper in fourth-quarter 2019 were higher than unit net cash costs of $1.71 per pound in fourth-quarter 2018, primarily reflecting lower by-product credits and adjustments to deferred profit sharing for prior years.

Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate $1.95 per pound of copper for the year 2020, based on current sales volume and cost estimates and assuming an average price of $10.00 per pound of molybdenum.

Indonesia Mining. PT-FI's assets include one of the world's largest copper and gold deposits at the Grasberg minerals district in Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. FCX has a 48.76 percent ownership interest in PT-FI and manages its mining operations. Under the terms of the shareholders agreement, FCX’s economic interest in PT-FI approximates 81 percent through 2022. PT-FI's results are consolidated in FCX's financial statements.

Operating and Development Activities. During fourth-quarter 2019, PT-FI completed mining in the Grasberg open pit and continues to achieve important milestones in ramping-up production of large-scale quantities of copper and gold from its significant underground ore bodies. In aggregate, the Grasberg open pit produced over 27 billion pounds of copper and 46 million ounces of gold in the 30-year period from 1990 through 2019.

Grasberg Block Cave. PT-FI has commenced extraction of ore from the Grasberg Block Cave underground mine, which is the same ore body historically mined from the surface in the Grasberg open pit. Reserves from the Grasberg Block Cave totaled 17.2 billion pounds of copper and 14.2 million ounces of gold at December 31, 2019, representing approximately half of PT-FI's total copper and gold reserves. Undercutting, drawbell construction and ore extraction activities in the Grasberg Block Cave underground mine continue to track expectations. Ore extraction from the Grasberg Block Cave underground mine averaged 11,200 metric tons of ore per day in fourth-quarter 2019, including a planned three week outage for the installation of ore-flow infrastructure. Following completion of the maintenance program in mid-December, ore extraction from the Grasberg Block Cave averaged 17,000 metric tons of ore per day. Monitoring data on cave propagation in the Grasberg Block Cave underground mine is providing confidence in growing production rates over time. As existing drawpoints mature and additional drawpoints are added, cave development is expected to increase production rates to an average of 30,000 metric tons of ore per day in 2020, over 60,000 metric tons of ore per day in 2021 and 130,000 metric tons of ore per day in 2023 from five production blocks spanning 335,000 square meters.

Deep Mill Level Zone (DMLZ). The DMLZ underground mine, located east of the Grasberg ore body and below the Deep Ore Zone (DOZ) underground mine, has continued its ramp up of production. Hydraulic fracturing operations have been effective in managing rock stresses and pre-conditioning the cave following mining-induced seismic activity experienced in 2017 and 2018. Ore extraction continues to exceed expectations, averaging 14,900 metric tons of ore per day in fourth-quarter 2019 and reached approximately 16,000 metric tons of ore per day at year-end 2019. Ongoing hydraulic fracturing operations combined with continued undercutting and drawbell openings in the two currently active production blocks are expected to expand the cave, supporting higher production rates that are expected to average 29,000 metric tons of ore per day in 2020, approach 60,000 metric tons of ore per day in 2021 and 80,000 metric tons of ore per day in 2022 from three production blocks.

Results to date from the Grasberg Block Cave and DMLZ underground mines are positive and in line with long-term plans to reach full production rates. Because of the nature of block caving, estimates of timing of future production from PT-FI's underground ore bodies will continue to be reviewed and may be modified as additional information becomes available.

Indonesian Smelter. In connection with the extension of PT-FI's mining rights from 2031 to 2041, PT-FI committed to construct a new smelter in Indonesia by December 21, 2023. A site for the new smelter has been selected, and ground preparation is advancing. Engineering and front-end engineering and design for the selected process technology are advancing and expected to be completed in 2020. The preliminary capital cost estimate for the project approximates $3 billion, pending completion of final engineering. Estimated capital expenditures for 2020 approximate $0.5 billion. PT-FI has advanced financing discussions with a syndicate of banks and expects the project will be funded by a bank loan to PT-FI. The debt service for the new smelter will be shared by PT-FI's shareholders according to their respective equity ownership percentages. As a result, FCX's future distributions from PT-FI will incorporate approximately 49 percent of the smelter debt service.

Operating Data. Following is summary consolidated operating data for Indonesia mining:

 

 

Three Months Ended
December 31,

 

Years Ended
December 31,

 

 

 

2019

 

2018

 

2019

 

2018

 

Copper (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

Production

 

146

 

 

170

 

 

607

 

 

1,160

 

 

Sales

 

203

 

 

127

 

 

667

 

 

1,130

 

 

Average realized price per pound

 

$

2.75

 

 

$

2.72

 

 

$

2.72

 

 

$

2.89

 

 

 

 

 

 

 

 

 

 

 

 

Gold (thousands of recoverable ounces)

 

 

 

 

 

 

 

 

 

Production

 

218

 

 

327

 

 

863

 

 

2,416

 

 

Sales

 

314

 

 

261

 

 

973

 

 

2,366

 

 

Average realized price per ounce

 

$

1,491

 

 

$

1,254

 

 

$

1,416

 

 

$

1,254

 

 

 

 

 

 

 

 

 

 

 

 

Unit net cash costs (credits) per pound of coppera

 

 

 

 

 

 

 

 

 

Site production and delivery, excluding adjustments

 

$

2.69

 

 

$

2.44

 

 

$

2.91

 

 

$

1.48

 

 

Gold and silver credits

 

(2.38

)

 

(2.70

)

 

(2.13

)

 

(2.69

)

 

Treatment charges

 

0.23

 

 

0.29

 

 

0.26

 

 

0.26

 

 

Export duties

 

0.11

 

 

0.21

 

 

0.08

 

 

0.16

 

 

Royalty on metals

 

0.19

 

 

0.21

 

 

0.16

 

 

0.21

 

 

Unit net cash costs (credits)

 

$

0.84

 

 

$

0.45

 

 

$

1.28

 

 

$

(0.58

)

 

 

 

 

 

 

 

 

 

 

 

a.

For a reconciliation of unit net cash costs (credits) per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com."

PT-FI's consolidated sales of 203 million pounds of copper and 314 thousand ounces of gold in fourth-quarter 2019 were higher than fourth-quarter 2018 consolidated sales of 127 million pounds of copper and 261 thousand ounces of gold, reflecting the extension of mining in the Grasberg open pit, which was completed in December 2019, and timing of shipments.

Consolidated sales volumes from PT-FI are expected to approximate 750 million pounds of copper and 0.8 million ounces of gold in 2020, compared with 667 million pounds of copper and 1.0 million ounces of gold in 2019. As PT-FI continues to ramp-up production from its underground ore bodies, metal production is expected to improve significantly by 2021.

Because of the fixed nature of a large portion of PT-FI's costs, unit net cash costs can vary significantly from quarter to quarter depending on copper and gold volumes. PT-FI's unit net cash costs (including gold and silver credits) of $0.84 per pound of copper in fourth-quarter 2019, were higher than unit net cash costs of $0.45 per pound in fourth-quarter 2018, primarily reflecting lower copper production and gold credits.

Assuming an average gold price of $1,500 per ounce for 2020 and achievement of current sales volume and cost estimates, unit net cash costs (including gold and silver credits) for PT-FI are expected to approximate $1.04 per pound of copper for the year 2020. The impact of price changes during 2020 on PT-FI's average unit net cash costs would approximate $0.05 per pound for each $50 per ounce change in the average price of gold.

PT-FI's projected sales volumes and unit net cash costs for the year 2020 are dependent on a number of factors, including operational performance, timing of shipments and the Indonesian government's extension of PT-FI's export license beyond March 8, 2020.

PT-FI's estimated annual capital spending on underground mine development projects is expected to average $0.8 billion per year for the three-year period 2020 through 2022, net of scheduled contributions from PT Indonesia Asahan Aluminium (Persero) (PT Inalum). In accordance with applicable accounting guidance, aggregate costs (before scheduled contributions from PT Inalum), which are expected to average $1.0 billion per year for the three-year period 2020 through 2022, will be reflected as an investing activity in FCX's cash flow statement, and contributions from PT Inalum will be reflected as a financing activity.

Molybdenum Mines. FCX has two wholly owned molybdenum mines in Colorado - the Henderson underground mine and the Climax open-pit mine. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the Henderson and Climax mines, as well as from FCX's North America and South America copper mines, is processed at FCX's conversion facilities.

Operating and Development Activities. Production from the Molybdenum mines totaled 5 million pounds of molybdenum in fourth-quarter 2019 and 29 million pounds for the year 2019, compared with 9 million pounds in fourth-quarter 2018 and 35 million pounds for the year 2018. The decrease in the 2019 periods primarily reflects the impacts of market conditions. Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales and average realized prices, which includes sales of molybdenum produced at the Molybdenum mines and from FCX's North America and South America copper mines.

Unit net cash costs for the Molybdenum mines of $14.20 per pound of molybdenum in fourth-quarter 2019 and $10.80 per pound for the year 2019 were higher than unit net cash costs of $9.16 per pound in fourth-quarter 2018 and $8.77 per pound for the year 2018, primarily reflecting lower volumes. Based on current sales volume and cost estimates, average unit net cash costs for the Molybdenum mines are expected to approximate $10.50 per pound of molybdenum for the year 2020.

For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII, which are available on FCX's website, "fcx.com."

Mining Exploration Activities. FCX's mining exploration activities are generally associated with its existing mines, focusing on opportunities to expand reserves and resources to support development of additional future production capacity. A drilling program to further delineate the Lone Star resource continues to indicate significant additional mineralization in this district, with higher ore grades than FCX's other North America copper mines. Exploration results continue to indicate opportunities for significant future potential reserve additions in North America and South America. Exploration spending is expected to approximate $70 million for the year 2020, compared with $77 million in 2019.

Preliminary Estimated Recoverable Proven and Probable Mineral Reserves. FCX has significant reserves, resources and future development opportunities within its portfolio of mining assets. FCX's preliminary estimated consolidated recoverable proven and probable reserves from its mines at December 31, 2019, include 116.0 billion pounds of copper, 29.6 million ounces of gold and 3.58 billion pounds of molybdenum, which were determined using $2.50 per pound for copper, $1,200 per ounce for gold and $10.00 per pound for molybdenum. The preliminary estimated recoverable proven and probable mining reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable reserve volumes are those which FCX estimates can be economically and legally extracted or produced at the time of the reserve determination.

 

Preliminary Estimated Recoverable Proven and Probable Mineral Reserves

 

 

at December 31, 2019

 

 

Copper

 

Gold

 

Molybdenum

 

 

(billion pounds)

 

(million ounces)

 

(billion pounds)

 

North America

47.2

 

 

0.5

 

 

2.87

 

 

South America

33.2

 

 

 

 

0.71

 

 

Indonesia

35.6

 

 

29.1

 

 

 

 

Consolidated basisa

116.0

 

 

29.6

 

 

3.58

 

 

 

 

 

 

 

 

 

Net equity interestb

83.4

 

 

16.1

 

 

3.25

 

 

 

 

 

 

 

 

 

a.

Consolidated reserves represent estimated metal quantities after reduction for FCX's joint venture partner interest at the Morenci mine in North America. Excluded from the table above are FCX's estimated recoverable proven and probable reserves of 375 million ounces of silver, which were determined using $15 per ounce.

b.

Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. FCX's net equity interest for estimated metal quantities in Indonesia reflects 81.27 percent through 2022 and 48.76 percent from 2023 through 2041. Excluded from the table above are FCX's estimated net recoverable proven and probable reserves of 251 million ounces of silver.

The following table summarizes changes in FCX's preliminary estimated consolidated recoverable proven and probable copper, gold and molybdenum reserves during 2019:

 

 

Copper

 

Gold

 

Molybdenum

 

 

 

(billion pounds)

 

(million ounces)

 

(billion pounds)

 

Reserves at December 31, 2018

 

119.6

 

 

30.8

 

 

3.78

 

 

Net revisions

 

(0.4

)

 

(0.3

)

 

(0.11

)

 

Production

 

(3.2

)

 

(0.9

)

 

(0.09

)

 

Reserves at December 31, 2019

 

116.0

 

 

29.6

 

 

3.58

 

 

In addition to the preliminary estimated consolidated recoverable proven and probable reserves, FCX's preliminary estimated mineralized material at December 31, 2019, which was assessed using $3.00 per pound for copper, totaled 133 billion pounds of incremental contained copper. FCX continues to pursue opportunities to convert this material into reserves, future production volumes and cash flow.

CASH FLOWS, ASSET SALES, CASH and DEBT

Operating Cash Flows. FCX generated operating cash flows of $170 million in fourth-quarter 2019 and $1.5 billion (including $349 million of working capital and other sources) for the year 2019. Fourth-quarter and year 2019 operating cash flows included a $250 million payment to Indonesia tax authorities for historical contested tax audits.

Based on current sales volume and cost estimates, and assuming average prices of $2.85 per pound of copper, $1,500 per ounce of gold and $10.00 per pound of molybdenum, FCX's consolidated operating cash flows are estimated to approximate $2.4 billion (including $0.2 billion of working capital and other sources) for the year 2020. The impact of price changes during 2020 on operating cash flows would approximate $350 million for each $0.10 per pound change in the average price of copper, $35 million for each $50 per ounce change in the average price of gold and $125 million for each $2 per pound change in the average price of molybdenum.

Capital Expenditures. Capital expenditures totaled $0.7 billion in fourth-quarter 2019 (including approximately $0.4 billion for major projects) and $2.65 billion for the year 2019 (including approximately $1.5 billion for major projects).

Capital expenditures are expected to approximate $2.8 billion for the year 2020, including $1.8 billion for major projects primarily associated with underground development activities in the Grasberg minerals district and completion of the Lone Star copper leach project, and exclude estimates associated with the new smelter in Indonesia. A large portion of the capital expenditures relate to projects that are expected to add significant production and cash flow in future periods, enabling FCX to generate operating cash flows exceeding capital expenditures in future years.

FCX expects capital expenditures for the development of the new smelter in Indonesia to approximate $0.5 billion in 2020, of which approximately 49 percent will be attributable to FCX's equity interest. PT-FI expects these amounts to be funded by a new bank loan.

Asset Sales. In November 2019, FCX completed the sale of its cobalt refinery in Kokkola, Finland, and related cobalt cathode precursor business for total cash consideration of approximately $200 million, including approximately $50 million of working capital. FCX recorded a gain of $59 million on the transaction.

In December 2019, FCX completed the sale of its interest in the lower zone of the Timok exploration project in Serbia for cash consideration of $240 million at closing, plus the right to future contingent payments of up to $150 million. In addition, the purchaser agreed to pay $107 million of previously agreed contingent consideration related to FCX's 2016 sale of its interest in the upper zone of the Timok exploration project in three installment payments between 2020 and 2022. FCX recorded a gain of $343 million on the transaction.

Cash. Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests' share, taxes and other costs at December 31, 2019 (in billions):

Cash at domestic companies

 

$

1.3

 

 

Cash at international operations

 

0.7

 

 

Total consolidated cash and cash equivalents

 

2.0

 

 

Noncontrolling interests' share

 

(0.3

)

 

Cash, net of noncontrolling interests' share

 

$

1.7

 

 

Withholding taxes

 

 

a

Net cash available

 

$

1.7

 

 

 

 

 

 

a.

Rounds to less than $0.1 billion.

Debt. At December 31, 2019, FCX's consolidated debt totaled $9.8 billion, with a related weighted-average interest rate of 4.5 percent. FCX had no borrowings, $13 million in letters of credit issued and $3.5 billion available under its revolving credit facility at December 31, 2019.

FINANCIAL POLICY

On December 18, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on February 3, 2020, to shareholders of record as of January 15, 2020. The declaration of dividends is at the discretion of the Board of Directors (Board) and will depend upon FCX’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's fourth-quarter 2019 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing "fcx.com." A replay of the webcast will be available through Friday, February 21, 2020.

-----------------------------------------------------------------------------------------------------------

FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the world's largest publicly traded copper producers.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. Additional information about FCX is available on FCX's website at "fcx.com."

Cautionary Statement and Regulation G Disclosure: This press release contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections or expectations relating to ore grades and milling rates; production and sales volumes; unit net cash costs; operating cash flows; capital expenditures; FCX's expectations regarding its share of PT-FI's net (loss) income and future cash flows through 2022; PT-FI's development, financing, construction and completion of a new smelter in Indonesia; FCX's expectations regarding results associated with productivity and innovation initiatives; exploration efforts and results; development and production activities, rates and costs; liquidity; tax rates; export quotas and duties; the impact of copper, gold and molybdenum price changes; the impact of deferred intercompany profits on earnings; reserve estimates; execution of the settlement agreement associated with the Louisiana coastal erosion cases; and future dividend payments, share purchases and sales. The words "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be," "potential" and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of dividends is at the discretion of the Board and will depend on FCX's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of, copper, gold and molybdenum; mine sequencing; changes in mine plans; production rates; timing of shipments; results of feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; the potential effects of violence in Indonesia generally and in the province of Papua; the Indonesian government's extension of PT-FI's export license after March 8, 2020; risks associated with underground mining; satisfaction of requirements in accordance with PT-FI's special mining license (IUPK) to extend mining rights from 2031 through 2041; FCX's ability to achieve the expected results of its productivity and innovation initiatives; industry risks; regulatory changes; political and social risks; labor relations; weather- and climate-related risks; environmental risks; litigation results; cybersecurity incidents; and other factors described in more detail under the heading "Risk Factors" in FCX's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the U.S. Securities and Exchange Commission (SEC).

Investors are cautioned that many of the assumptions upon which FCX's forward-looking statements are based are likely to change after the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes, and FCX undertakes no obligation to update any forward-looking statements.

This press release also contains certain financial measures such as adjusted net income and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S. generally accepted accounting principles. As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX's consolidated financial statements are in the supplemental schedules of this press release, which are also available on FCX's website, "fcx.com."

 

Freeport-McMoRan Inc.

 

SELECTED OPERATING DATA

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

2019

 

2018

 

2019

 

2018

 

 

MINING OPERATIONS:

Production

 

Sales

 

 

COPPER (millions of recoverable pounds)

 

 

 

 

 

(FCX's net interest in %)

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

Morenci (72%)a

182

 

 

163

 

 

181

 

 

156

 

 

 

Bagdad (100%)

48

 

 

57

 

 

50

 

 

51

 

 

 

Safford (100%)

26

 

 

29

 

 

26

 

 

28

 

 

 

Sierrita (100%)

43

 

 

39

 

 

41

 

 

36

 

 

 

Miami (100%)

4

 

 

4

 

 

4

 

 

4

 

 

 

Chino (100%)

46

 

 

47

 

 

44

 

 

43

 

 

 

Tyrone (100%)

11

 

 

14

 

 

11

 

 

14

 

 

 

Other (100%)

1

 

 

 

 

1

 

 

1

 

 

 

Total North America

361

 

 

353

 

 

358

 

 

333

 

 

 

 

 

 

 

 

 

 

 

 

 

South America

 

 

 

 

 

 

 

 

 

Cerro Verde (53.56%)

269

 

 

269

 

 

289

 

 

271

 

 

 

El Abra (51%)

51

 

 

49

 

 

56

 

 

54

 

 

 

Total South America

320

 

 

318

 

 

345

 

 

325

 

 

 

 

 

 

 

 

 

 

 

 

 

Indonesia

 

 

 

 

 

 

 

 

 

Grasberg (48.76%)b

146

 

 

170

 

 

203

 

 

127

 

 

 

Total

827

 

 

841

 

 

906

 

c

785

 

c

 

Less noncontrolling interests

178

 

 

166

 

 

199

 

 

166

 

 

 

Net

649

 

 

675

 

 

707

 

 

619

 

 

 

 

 

 

 

 

 

 

 

 

 

Average realized price per pound

 

 

 

 

$

2.74

 

 

$

2.75

 

 

 

 

 

 

 

 

 

 

 

 

 

GOLD (thousands of recoverable ounces)

 

 

 

 

 

 

 

 

 

(FCX's net interest in %)

 

 

 

 

 

 

 

 

 

North America (100%)

5

 

 

7

 

 

3

 

 

5

 

 

 

Indonesia (48.76%)b

218

 

 

327

 

 

314

 

 

261

 

 

 

Consolidated

223

 

 

334

 

 

317

 

 

266

 

 

 

Less noncontrolling interests

41

 

 

33

 

 

58

 

 

26

 

 

 

Net

182

 

 

301

 

 

259

 

 

240

 

 

 

 

 

 

 

 

 

 

 

 

 

Average realized price per ounce

 

 

 

 

$

1,491

 

 

$

1,255

 

 

 

 

 

 

 

 

 

 

 

 

 

MOLYBDENUM (millions of recoverable pounds)

 

 

 

 

 

 

 

 

 

(FCX's net interest in %)

 

 

 

 

 

 

 

 

 

Henderson (100%)

2

 

 

4

 

 

 

N/A 

 

 

 

N/A 

 

 

 

Climax (100%)

3

 

 

5

 

 

 

N/A 

 

 

 

N/A 

 

 

 

North America copper mines (100%)a

8

 

9

 

 

N/A 

 

 

 

N/A 

 

 

 

Cerro Verde (53.56%)

8

 

 

8

 

 

 

N/A 

 

 

 

N/A 

 

 

 

Consolidated

21

 

 

26

 

 

22

 

 

24

 

 

 

Less noncontrolling interests

3

 

 

4

 

 

3

 

 

4

 

 

 

Net

18

 

 

22

 

 

19

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

Average realized price per pound

 

 

 

 

$

11.65

 

 

$

12.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a.

Amounts are net of Morenci's undivided joint venture partners' interests.

b.

Effective December 21, 2018, FCX's share ownership in PT Freeport Indonesia (PT-FI) is 48.76 percent. FCX’s economic interest in PT-FI is expected to approximate 81 percent through 2022 and 48.76 percent thereafter.

c.

Consolidated sales volumes exclude purchased copper of 69 million pounds in fourth-quarter 2019 and 99 million pounds in fourth-quarter 2018.

 

 

 

 

 

 

 

 

 

 

Freeport-McMoRan Inc.

SELECTED OPERATING DATA (continued)

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

2019

 

2018

 

2019

 

2018

 

MINING OPERATIONS:

Production

 

Sales

 

Copper (millions of recoverable pounds)

 

 

 

 

(FCX's net interest in %)

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

Morenci (72%)a

730

 

 

684

 

 

717

 

 

700

 

 

Bagdad (100%)

218

 

 

199

 

 

218

 

 

197

 

 

Safford (100%)

110

 

 

123

 

 

111

 

 

127

 

 

Sierrita (100%)

160

 

 

152

 

 

157

 

 

154

 

 

Miami (100%)

15

 

 

16

 

 

15

 

 

16

 

 

Chino (100%)

175

 

 

173

 

 

174

 

 

176

 

 

Tyrone (100%)

48

 

 

55

 

 

49

 

 

56

 

 

Other (100%)

1

 

 

2

 

 

1

 

 

2

 

 

Total North America

1,457

 

 

1,404

 

 

1,442

 

 

1,428

 

 

 

 

 

 

 

 

 

 

 

South America

 

 

 

 

 

 

 

 

Cerro Verde (53.56%)

1,003

 

 

1,049

 

 

1,002

 

 

1,051

 

 

El Abra (51%)

180

 

 

200

 

 

181

 

 

202

 

 

Total South America

1,183

 

 

1,249

 

 

1,183

 

 

1,253

 

 

 

 

 

 

 

 

 

 

 

Indonesia

 

 

 

 

 

 

 

 

Grasberg (48.76%)b

607

 

 

1,160

 

 

667

 

 

1,130

 

 

Total

3,247

 

 

3,813

 

 

3,292

 

c

3,811

 

c

Less noncontrolling interests

668

 

 

695

 

 

679

 

 

694

 

 

Net

2,579

 

 

3,118

 

 

2,613

 

 

3,117

 

 

 

 

 

 

 

 

 

 

 

Average realized price per pound

 

 

 

 

$

2.73

 

 

$

2.91

 

 

 

 

 

 

 

 

 

 

 

Gold (thousands of recoverable ounces)

 

 

 

 

 

 

 

 

(FCX's net interest in %)

 

 

 

 

 

 

 

 

North America (100%)

19

 

 

23

 

 

18

 

 

23

 

 

Indonesia (48.76%)b

863

 

 

2,416

 

 

973

 

 

2,366

 

 

Consolidated

882

 

 

2,439

 

 

991

 

 

2,389

 

 

Less noncontrolling interests

162

 

 

228

 

 

182

 

 

223

 

 

Net

720

 

 

2,211

 

 

809

 

 

2,166

 

 

 

 

 

 

 

 

 

 

 

Average realized price per ounce

 

 

 

 

$

1,415

 

 

$

1,254

 

 

 

 

 

 

 

 

 

 

 

Molybdenum (millions of recoverable pounds)

 

 

 

 

 

 

 

 

(FCX's net interest in %)

 

 

 

 

 

 

 

 

Henderson (100%)

12

 

 

14

 

 

 

N/A 

 

 

 

N/A 

 

 

Climax (100%)

17

 

 

21

 

 

 

N/A 

 

 

 

N/A 

 

 

North America (100%)a

32

 

 

32

 

 

 

N/A 

 

 

 

N/A 

 

 

Cerro Verde (