Freeport McMoRan to Further Reduce Spending, Suspend Dividend

Freeport McMoRan (NYSE:FCX) is taking additional action in response to market conditions, including further reductions in copper and molybdenum production and revisions to its oil and gas spending plans. Overall, Freeport is increasing its production curtailments from 250 million pounds of copper and 20 million pounds of molybdenum to 350 million pounds of copper and 34 million pounds of molybdenum.
Freeport will also suspend its annual common stock dividend.
As quoted in the press release:

FCX continues to review its capital projects and costs to maximize cash flow in a weak commodity price environment and to preserve its resources for anticipated improved future market conditions. FCX previously announced a 25 percent reduction in its capital spending for its mining business for 2016 (from $2.7 billion to $2.0 billion, including $0.6 billion in sustaining capital) and announced curtailments at its North America and South America mines totaling 250 million pounds of copper and 20 million pounds of molybdenum per year. FCX is undertaking further actions involving plans for a full shut-down of its Sierrita mine in Arizona and adjustments to its operating plans from its primary molybdenum mines, which will increase its curtailments to approximately 350 million pounds of copper and 34 million pounds of molybdenum per annum. FCX is continuing to evaluate its mining operating plans in response to market conditions and will make further adjustments as required.
FCX is also evaluating other financing alternatives, the potential sale of minority interests in certain mining assets and other actions to provide additional proceeds for debt reduction. FCX has a broad set of natural resource assets that provide alternatives for future actions to enhance its financial flexibility.

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