Freeport-McMoRan Announces Program for Increased Cash Returns to Shareholders
$3.0 billionshare repurchase authorization
- Addition of variable cash dividend on common stock
- Actions achieve objective of performance-based payout framework
The Board also approved the addition of a variable cash dividend on common stock for 2022 at an expected annual rate of
As previously reported on
Cash returns to shareholders will be administered in accordance with the previously announced performance-based payout framework whereby up to 50 percent of cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects. FCX’s payout framework is designed to maintain its net debt at a level not to exceed the range of
The timing and amount of any share repurchases will be at the discretion of management and will depend on a variety of factors. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion. The declaration and payment of dividends (base or variable) is also at the discretion of the Board and will depend on FCX's financial results, cash requirements, business prospects, global economic conditions and other factors deemed relevant by the Board.
FREEPORT: Foremost in Copper
FCX is a leading international mining company with headquarters in
FCX’s portfolio of assets includes the Grasberg minerals district in
By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries. Additional information about FCX is available on FCX's website at fcx.com.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements, which are all statements other than statements of historical facts, such as statements regarding FCX’s expectations, the execution of any share repurchases under the share repurchase program and timing and payment of dividends (base or variable) and FCX’s descriptions of objectives, strategies, plans, goals or targets, including those related to FCX’s financial policy, net debt level and future allocation of cash flows. 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, changes in FCX’s cash requirements, financial position, financing plans or investment plans; changes in general market, economic, tax, regulatory or industry conditions 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
This press release also contains the financial measure net debt, which is not recognized under
Investors are cautioned that many of the assumptions on which FCX's forward-looking statements are based are likely to change after the date 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 undertakes no obligation to update forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes.
David P. Joint