Freeport-McMoRan (FCX) 21 Apr 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Freeport-McMoRan First Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]

to conference like to now would turn over the Ms. I President. Quirk, Kathleen go ma'am. Please ahead,

Regina, Welcome on first Thank conference good and a and you, morning. press today's at this and results release we fcx.com. copy operating of call. are to morning, reported website XXXX our available quarter slides financial and our Earlier Freeport-McMoRan the

the live call Our conference and webcast to and the by anyone call. our internet, for clicking call today link on on is conference the may the being homepage accessing broadcast website listen

addition the In today. today's financial has been available of to a the be later and website to listen press on analysts and our will webcast investors, invited call replay to

of we'd to call filings. today's and our the included everyone to the to actual begin include and SEC forward-looking comments, factors we press statements, in language cautionary materials Before everyone may in to like refer comments our our Like our release described differ and the materially. on and remind certain results that press risk release presentation

Also Adkerson, Activities. the Executive leads Josh Richard Cory our Chief Chief Indonesia; and our Officer our for Chairman Maree Officer who Americas; Mike Development Operating Project leads call the who our on Operating Molybdenum Robertson, Chief Board Mark Officer; today CFO; Olmsted, of for Kendrick, Stevens, Johnson, the our is Business; Engineering and

and who Richard to then Richard? prepared some the back make questions. over materials come take call will and opening the turn review your I'll we'll slide and then comments

and the questions. challenges team's with our in to for global we Thank our of Kathleen quarter will quarter. join you, us. responses faced review team joining outlook results all your the our I'm in you to thank the first and responding pleased Kathleen, and I'll

responses throughout know, mining your you industry. at is Freeport. Who we proud the in reports by business, all recent defined our evidenced challenges. by of is who to I'm are industry are You the very that's tough a

in resilient event. again, once Indonesia, in overcoming proved flood a team Our major

Now, Guinea, to XXth with operating at dealing just on Grasberg. of high anniversary rainfall of New It's wettest one We accustomed places located mountains our there. globe. we're the celebrated of in the the

are unusually in significant handle intensity we was to January systems rainfall. of the severe. experienced event Our designed The

damages. systems established major prevented Our

Our by to risk there. operations mitigate great and taking quickly team with bounced production quarter start back and actions have the restore immediate we second future in a

Kathleen of trips and to in a I have series months. recent Indonesia made

positive in established past. achieved for resulted future. For in personally more operations, development positive XXXX, attitudes me, our government multi-year underground than the in copper this it's to large and with the success about All the the we gratifying of we outlook scale partnership the years experience Freeport the have markedly there the from in

has returned now the to world's mine. Grasberg copper second rank largest as

first pound. in at PT-FI's rights a per $X.XX now cost the quarter the negative beyond net working Grasberg a of in We're Our that stakeholders. production benefits to positively operating way XXXX all extend with cash was government

political Cerro Verde, volatile negotiated team turmoil of in through period At our a Peru.

fashion. around remarkable handle situation and rallied to team workforce in community the our the Our a

to up United with overcome stepping is the team availability associated the in US Our States. challenges labor

China's drive and demand low commitment global drivers our of positive Copper the to be continue circumstances. ongoing the global copper. Freeport appreciate of in supported gold We team challenging to levels reach markets inventories, for and economic the by recovery, accelerating

all buy seek and the we copper more. Our customers can continue produce to

our the of expand technology developing business rapidly forward, to develop our copper Freeport, to new the copper be to miners At supporting sources vast grow strong a from move meet will analytics. production we position required business also supply demand. and leach from in and our brownfield As we're to resources data to grow

strong we from communities from benefit franchises where operate. support we Freeport, and At

sheet. balance strong a maintaining to committed are We

operations is execution. and have We the culture Freeport. and of our backbone an track Focused exemplary at success execution project record for

We drive for relentless and long-term success. have a a achieving defined clearly strategy

now our slides. review will Kathleen And

on slide and I'll Richard, you, three. Thank start

published on year's role You've principal highlights Report copper, of to modern we connected global theme the Annual that and decarbonize play the as website. uses probably economy in of world. and today the available critical our a powering are Power seen, Freeport Annual and Report and The our is Report The our this and highly re-imagines growing world copper of infrastructure Copper. reports product, the our It the support Sustainability

us summarizes publish achievements, face comprehensive are report We're standards, environmental initiatives to to been and safety, on which in measure use Sustainability long-term this engage review hope Report. reporting challenges our of Mark, be our The third-parties, aspects responsibility the on with critical information initiatives, the to continues success. enhanced. you'll topics. international annual as for sustainability to have our such We practices, to the and years best We our and our and these managing our Copper and social, We've transparency also to our XX we our business, The and proud chance stakeholders. performance now that

our financial slide We'll highlights which the first and four, summarizes key turn operating in to quarter.

our As significant were following temporarily operations in disrupted weather February, impact area. in mill a Grasberg previously our disclosed,

unit in essentially per with as normal volume costs impact. compared lower team cost quarter, the our As cash Richard said, credits pound to quarter offset the net byproduct estimates levels job than a volumes into line Consolidated more in safely were $X.XX the per the restore averaged the great with higher March. our to guidance. consolidated unit going did in our production Despite

costs credit revenues per costs than averaged As Richard net offset the more the the disruption, of with mentioned, notably, gold net cash production. even $X.XX pound, meaning, unit Grasberg of cash a

and balance our return we start volumes in in the to the strong year. normal a to With be in April, the expect great March operations of

totaled net for the cash operating were use $XXX $X.X billion in our which totaled were billion. margins Our working million the $X.X of in quarter EBITDA flows, strong, of quarter, cash capital

for billion. mining $X.X quarter the from proceeds included smelter, about last funded That from financing Indonesian major year. being for which million is million during of and investments we raised We $XXX $XXX the funded projects

billion net we the net Excluding with with quarter in debt. $X.X the associated debt smelter, ended

flexibility balance are liquidity, year. shape. free in The the cash of positive for flow outlook Our is generation financial terrific the sheet, balance in

The we Richard our talked challenges faced these faced about next quarter we the first operations. the across in and global slide,

Our well production March. strong teams executed in Grasberg you in left, of the event weather the And impact at and the on see recovery the circumstances. the in February can

In with earlier Peru, which and chains impacted the other year transportation associated experienced environment and widespread a we challenging in routes. protests, supply companies

in at normal great we're and Situation weeks operating rates. safely. efficiently Our situation job the team in now Verde at did and managing a has Cerro improved Peru recent

and recovery were the In working development shortages, we quarter in ongoing with going talk to labor unplanned We're The to events technology challenged to maintenance weather rates labor this. shortfalls the and ongoing pursuing in and extreme build and improve which skills seek US, of leach efforts, market initiatives conditions productivity about, tight the earlier more working to really continue helped to and automation as we're mining aggressively on US. on with recruit workers reliability, in we'll we offset some the issues.

industry. power on as and in growth Demand a forward electrification. massive for Turning slide essential in positioned demand six. copper are in well double is global with in going the leader XXXX. to Low accelerate expected carbon renewable Freeport electrification Copper to projections investments to by for driving markets copper demand. is is the

the and addition, copper and by major initiatives data, growing from In many of programs the intelligence are for infrastructure also countries uses connectivity, drivers. artificial demand

is a rising demand same of industry to the time, real the ability this meet the At challenge.

market All of back this look year surplus move to projecting XXXX, were a the us online. the new coming last time many can in to were at projects pointing that to when

be the this new now year projections today, projects, even with large most deficits. longer-term, are we to for As the balanced at market look and situation very the analysts project the

our rise to backdrop, several production to benefit demand we support Freeport, you larger to Under going And reserve new see slide, future. positioned a continue incentivize the the at these are need from and strongly believe initiatives we enhance business an will as We're supplies. prices position, even this large grow on to position forward. of pursuing to in growing and resource to

in about copper markets, quarter, pound leading from we've per Last molybdenum significant first $XX We spoke realized the slide over our in largest molybdenum pound molybdenum of first per year. this world's of in in the late the seven, $XX producer. the a to discussed, sales we the a quarter. XXXX being pound to about per is we talk Freeport high rise for On in molybdenum addition producer, as and quarter $XX

recent response The The in prices drivers weeks, beginning related from aerospace price the late supply. supply improved energy highs to drop began and of rose to XXXX in sectors. and demand sharply in in partly favorable issues

mines, byproduct issues we pound. of from drivers moly produced demand over we to it's $XX also since forward, some subject of is as a in positive, As price copper principally supply as same moly just per the look moly Current approximates are copper. and from have the

moving our which We're on leach to an to referred initiatives, to excited, talk give slide really you update today eight, to really earlier. excited Richard

in increase enhanced million we're like. have our increasing the next pounds massive of gain could results per momentum. what initial achieving to on our through production stockpiles today, Based and phase to confidence leach efforts copper Our from gaining is begun XXX to model recoveries continuing our annum target look

target, that basically make the up of three in buckets. side left summarize pound the the initial On the categories million chart, XXX we various

first within The is, to increasing temperatures the stockpiles. heat, relates

leach is which sure benefit to involves use of liquid variety The available data important, to including achieve stockpile really use second of call analytics use Leach the is the we Everywhere, is amount and solution it third application copper. solution has sensors on optimizing the of category, an the data in making of focused And ways, best used the entire rate using initiative we the new we a through results. the which

process have We our heat recoveries. in proven to provide enhances covers of stockpiles and we've the advanced and for over retention of initiatives been stockpiles heat increasing increase. XX% of on targeted efficiently. stockpiles massive the that us allowed It's the installation execute mechanized our now covered. XX% the more that's We've These

drilling formations are sensors The XX% the may the process additional stockpile and and uplift to on new makes technology higher up lower liquid drilling solution to We're solution leach add that providing would information Leach and we've to not where other also uses to oil getting stimulate gas the production. solution installed used support targeted of wells sections. injection of flow in the Everywhere the and The through improve access stockpile. be initiative

low a the this The analytics of initial production able benefit insights. works to cost to protocols success the of the adds We and footprint. in conditions get operating data stockpiles. had haven't at determine the The past, benefit initiatives the incremental of is and carbon under really low providing optimal we're new now various these

initial XXX In an could our see parallel production these That's an work with been provide of We to without opportunity drivers results add mine million have pounds per very annum a the of incremental on initiatives, activities, XXX intensity a what additional a total to the stimulate cost. leach million next on the new would and of substantial initiatives the operating doing pounds capital and we've size modeled per low major year. from phase yield. which

highlighted lot increase advance requires The areas got of innovation, do some a of are initiatives. focus and this in heating to on using a additional sources each and the We're success of in the application to but the further to requirement. further accomplish slide the we three clear stages this stockpile. various or our initiatives power, to the center have on to path sites program. heat this of we're of at solar geothermal these evaluating development liquid in work We're before these the of do We've temperature other evaluating opportunities renewable mine solution options to by generated

are well testing We're the help and artificial we solutions And to areas what not We're Again, in have on as both more to that developing enough expedite various initiatives. the to going that air third-party are getting the our inject knowledge additives oxygen. stockpiles into we're journey of in intelligence working within much production. design we're evaluations also restimulate to process. our copper using as and is internally stockpiles also options from evaluating in

industry latent have to and growth leach in capacity house with go Freeport leach, that the is in massive growth the for the in copper area an to stockpiles our forward mine mine currently exceptionally in addition part plans strong lead of ongoing this tank activities leach, have. be under organic as we new we ways. will to we that This develop traditional position

actionable demand brownfield as slide priorities the And existing risks on growing operations opportunities. development nine greenfield and limitations look our development are copper and and of our at and and extensions portfolio outlook. of project focused development, highlights and strategy growth And the we our

our near-term, nine, longer-term slide options. development we and On show medium-term

If development, investment. up phases. Following targets the which and see US get and working asset in pounds our near-term, have focused operations. best achieved growth productivity to the for we we're our our recent achieving we're In advancing years enhance through significant efficiency per we can rates we leach the hit in targets with year and US, options the XXX on actions and initial add an additional mining limited successful Grasberg and in growth capital million on, the reliability for to next the our opportunity reliability, to

of series In initiatives. the outlined we've medium-term, a

Bagdad feasibility in our includes phase also complete The leach studies the expect expand to this We're second our of and Arizona to first year. project. mine looking

Chile major the and developing expected expand Abra looking Liar, decade. is have we're in opportunity commence in to our by day an process And we project per currently end and existing We it the operation ton to XX,XXX in progress and of production called which of block initial Kucing a El have new at mine in Indonesia a cave the significantly. already

At capital the area completion tailings making to our some expansion mill Bagdad, more included enhance new the following of to move which investments, the optionality project, are works study. early guidance conduct to we're in feasibility with quickly in expenditure

the a that already Safford/Lone we have as pursued. where projects major projects, US Longer-term we resource have further and we in significant opportunity of and long brownfield lead working be district we'll expansion series we're for identified these Star they times, require expect have the on can

of scale world's in copper potential the beyond XXXX options grade operating development highest and open In districts. the largest extension Indonesia, of discussions mining and our Richard extension large talked mining having of the about would rights door for we're the and gold one additional and continuation

in executing world projects in copper we We're supplying be role outstanding on shareholders. going We're our our create a and an leadership to continue position value approach to requirements. to growing to in continue disciplined focused where for with can

into recoveries We've update doing and our incorporated in for volumes unchanged. estimates slide really about at X% the our February, higher than an But to disruption On provide prior XXXX with our regard. US. outlook The XX, our in estimates. efforts, mining sales first upside for estimates. lower to January take We've account the that sales in well success we're forecast, impact guidance gold the XXXX for in rates three-year updated XXXX of we we gold are have for and stronger than Grasberg leach some is these the guidance and Despite in continued volumes. the of XXXX disruption quarter the

that's currently compared prior lower January On estimate slightly a $X.XX slide We unit estimate cost XX, of XXXX, average moving show, $X.XX estimate. show cost cost, pound. we our for per our cash we of for cash comparison unit guidance XXXX to per pound our net to current to than

-- of in with in byproduct Indonesia progress. copper higher a reduction the associated export volumes is offset lower duties The credits by smelter our impact and construction

input and key for assumptions have We're January services in costs starting labor less increased. in pressures to energy, to inflationary estimates. the Our for experience commodity are equipment particularly cost, based certain similar areas XXXX, while components than the

discussed an challenges reduction site in prior mines note X% US US productivity we've there. volumes ongoing This and the approximate page costs earlier. production And for to we estimates. a delivery our you'll reference the got the associated slides reflects with on in In improve XX, increase with largely initiatives in compared

copper hold for results $X,XXX modeled these are at per XXXX per our at flows. show EBITDA cost $XX for slide we pound These gold flat estimates volume XXXX current pound and On per $X Moving results flow copper. flat and estimates modeled to ranging models. from of various XX, copper cash of and pound with to cash $X and prices at we our our molybdenum and in

would Our annum And $X.X billion from per per year scenarios billion range to $X cash copper. $XX.X $X at range copper $XX billion year $X over at per annual at annum to EBITDA $XX copper at from copper. $X under operating flows per these billion would

sensitivities intensive our some position we're with from returns right. trends in the framework. cash to and the performance-based And benefit really and show long-term We future on growth large-scale long-life for cash increasing commodities production, a the to and reserves various metals under our prospects flows pay-out

project, the $X.X expenditures. current forecast for the currently exclude being with On in Indonesian is billion. from billion. of Current bond slide to estimate funded smelter a approximately up XXXX which an offering. $X.X forecast XX, expenditures capital our last cash XXXX forecast we update these we billion that to capital released provide totals year prior are our $X.X That's But and for and

jump reflects for from bad The and discretionary to under funded projects not will debt projects. guidance our planning of we're cash be growth at as future our investments the that start pay-out do Bagdad for The works optionality they change principally categorize prior free available we early to support investments remaining distribution or reduce with retained for policy cash the as XX% expansion. flow

On pictures undertaking This single-line new smelter it impressive of The and some world-class advancing a and become rapidly. smelting showing scale. slide the flash copper the will in a be we for Indonesia. us. XX, world's facility got largest on project major construction it's It's will is great our

and project enable align concentrates and PT-FI and expect project of smelter downstream We precious domestically. in XXXX. will expansion policy process facility will nearby to commission its include existing an a the The to it of processing the all metals Indonesia's with

with balance we've priorities and a three slide on which centered cornerstone strong summarize achieved policy, our that. closing, XX, sheet the we around is In financial being

executing pay-out flexibility are form policy, significant our allocated the and for projects. XX% the We're available of to and in of free and performance-based our the provide share cash which balance Our invest be financial shareholder strong balance for the flow to provides and future. to returns liquidity sheet purchases dividends in

pay pay-out to XX% to $X.XX base balance sheet providing and of per capacity a over commencing policy XXXX, continue further way, flow rate since returned the share. strengthened a our and it new along shareholders performance-based projects cash a the dividend at annual We'll dividend of free we've about funding combined variable for And in time. our

share purchases, substantial We for and cash outlook did conduct and purchase first generation under our to positive to in have but free purchase shares we quarter, depending not prices the authorization a the in availability policy the flow on have future other pursuant factors.

three balance of organic allocating to shareholders. long-term a growth, of we value sheet The strength, flow of cash enhance believe priorities returns shareholder benefit will for the mix and our

Our motivated efficiently. we're value plans and team our our responsibly, global safely building in continue to is executing We're energized. business and

Thanks take we'll and for attention your questions. your now

the Ladies and Instructions] Jefferies. Our LaFemina begin gentlemen of session. line we will question-and-answer [Operator first Chris question from now comes with the

the Hi. my to questions, M&A activity There's in and but Thanks, happening for obviously M&A? is a Richard copper then wondering synergies? in in Operator. taking increasingly it your mining, haven't little that -- in I'll to key obviously, M&A is overall Are you. And industry get moment, the actually the one around Are lot know general? any recent consider seems it on of consolidation would Is question. philosophy just just that you criteria as opportunities of in then a back just focused And opportunistic? at a at have is Kathleen, And I talked and has but or have about jurisdictions Thank screen really a much Richard, be queue. with being radar major just I'm looking of thank is of years. think operational M&A secondly, be the something there about important I'll on? I bunch I result you in past, bit a focus. you that ask kind done you'd there your

Thanks, Chris.

that challenges projects industry had at time the because come have a of would copper their availability to of that pursue the are really price to And I've long companies well consolidation time. strategic developing in of a been saying it's our know it's not just diversified a It's issue, projects. our you and companies for now, for industry. top the in just actionable As for inevitable list companies long

developing It's notable overall course. of few, projects. been of of in There success lack a new the have

to M&A So with all on come those lead we're what seeing right now going things together activity. and

have we M&A. strategy through us, for Now don't growing a of

on are not We focused and advantage that Kathleen described. opportunities mean take resources does large-scale our that would we that And of may reserves of that arise. not inventory but

it or value other We if only clearly something So that for something would was we're was criteria. enhancing any defining our not shareholders. regions do

But underground and So such balance for major not looking in now opportunity things to position we're strengthening at our arises, it in be if company the all having but do. with made advancing case. a progress of would we our conversion in in on be fronts, position sheet, that a great completing only Grasberg an would

Okay. Thanks.

will Chieng the ahead. go line Your from of come Sachs. next Emily with question Goldman Please

the Good there. leaching is just more wanted around leaching I My morning, the question million pounds talked a you've XXX little dig today. bit step to Richard in And change through volumes of that Kathleen. technology about and

there? What there? you mill El or to success million And think percentage talk there's Abra we I I to pounds leaching this and XXX a the not further does the currently. that of deployed think And be at getting catalytical expansion been third-party Bagdad the could could that if talk expansion perhaps whether technology, Abra account that's for? as could mean strong El line time delayed about

new El with at we're relatively we've are through And both going through these some and Bagdad Abra. stockpile it's to a efforts. that note that small Stevens of I'll because fill a in Jetti. But in we've of the terms on be on internal Jetti additives, with trial let at a Cory this XXX it important the additional with additives but third-parties. and portion leading got pursuing million the Kathleen, could he's got pounds, going initiatives And on it's Emily,

not technology but bulk we pursue really there's is can not there. it's we're have that and pointing is where and now the lot stockpile to outlining us involved getting where the it. of But getting the is own through on is our solution that stockpile, a are, It's we what initiatives And science. the oxygen where of here not involved, innovation to -- not the sensors the issues data rocket

So these things can -- identify an problem, -- add the we fix find can can solution. once industry, as a we,

big And at such why Freeport, have a we here. That's such opportunity stockpiles. have big we

we where about, that's the know at Morenci. bulk the opportunity and Morenci this, our XX but the El you traditional the are is. at we're of of is look So with pounds we might, Morenci look if technology. with bulk it what the compete talking we're might of successful yet, mill talking percentage Abra, -- opportunity billion about at it and potentially is largely see -- But don't at you

now those solve maximize on we're our to do way a our and that's really for objective But looking yields because to way to own to the at what's this to is Freeport. want add you through the comments? our initiative available anything Cory, find third-parties, best But, but

you Yes, well. no, said Kathleen, it

parallel the pharma efforts, been able much R&D look in tests to quarter, that activities to big scope way in candidates uses breadth then in how promising. a to front. couple artificial and the see to do And internal for learning is capabilities develop confidence first actually products that what our and implementation. intelligence their machine more and of scale in So new where And quick that in and of some with and some our been on bringing looking but our we're we're we've that leads at increase like field growing work with medium the then most do that driving we tests, very temperature that's us the the scale excited that's we're we've chasing then coupling tests

very helpful. That's Thank Great. you.

will from go De Morgan Alba of next Please Stanley. Your Carlos question with come ahead. line the

Yeah. very much. you everyone. Good Thank morning,

the update conversations you conversations extension beyond export an may that on also time? on the give and Thank for the obtaining wonder June? are I local us Just government extending with had the Indonesia. export of on you license how you. contract And your perhaps can any in partner the have of ahead XXXX if license, the

It's actions regulations of other. happening it to within Yes. to procedural each fairly the IUPK support these deal we that then approved with and government, also there's and in widespread with amend requires Thanks, December government be in are extension things get the parallel Carlos. simple To would were of existing XXXX, the all that contract a process. some for granted

we it. has issue broader is for The this date, do by with to it with really broadly. So country pursuing are encouraged June downstreaming the minerals

Carlos, And so operations to that's more, be June. don't something specific We beyond why it. to that ability limit anticipate would that be Anything will that was there. on our continue

-- December are to some clearly which provisions, and in chains that the I'll to force that COVID just we've majeure point contemplated point out XXXX. to continue has experienced that referred XXXX supply allows through that Richard exports related us at that our IUPK we majeure. entered that delays into And force

it, the achieve. after which defined regulation a do in broad it's range restrict the to signed from was minerals in not approval the exports us but allows to this to to IUPK IUPK our get they're we government put and So trying need to

But working we're the with government.

finished. We are be won't progress to that going with completely copper end construction it year, keeping be visiting them smelter and by complete be very not but impressed informed the of be they're They're it's It finished. this made. the Unfortunately, -- site. will we've substantially our the will

export. the continue And so to to ability we'll need

now for exports And continue. importantly government with ownership, the it's with the to revenues we as the have alignment well very government important for

June expect the yet, going beyond have on So to continue we're extension to We to we get work don't it. it. do but

right we're getting our to cooperatively pushing a these just the have we from that I good documented, want legal but that not emphasize, and working And Kathleen it. rights we're are rights legal response and government with is

Right.

just one And Okay. clarification.

For and the the decision, executive legislative together is an the or something it requires this extension beyond or XXXX XXXX, approval ministries all obviously, contract just with that? is beyond that

to do now our how Indonesia, support document us forward the done having here. the for We strong really and new group the The going a visited it. US to government There overseeing to without who parliamentary through it operations, legislation. mining by formally path parliament of benefit visited be decide will is within came

just tone in it visited changed. September late emphasize very our operations early whole So a was want to positive. has and President I The August, the

career way do and my right One Indonesia find a forward building off of it it. that the highlights this of to and visits in everybody in the was his we're of from there wins way

the local suppliers the our win, business. community, to workforce, would government The

that's drop together how any can and to So forward on how date dead having working nobody we there. see us operations benefits from we're of kind go makes

be original resource carried production really forward a have extent have up and XXXX the this we beyond fill of to date in the would the see And to we the already profile was And It through to what's was very beyond IUPK that, doing not contract XXXX. resource identified. yet, been done in XXXX actually necessary our drilling that of substantial delineation significant work envision. hard XXXX in

has as And gotten in really see XX-plus of to of be, always to year us, grades the that it history I'm be about drill continue over really time. to there the to do more and and opportunity I'm confident just grow it's nature the the bigger system exciting. bigger go available we excited because of will ore drilling, are and the But Grasberg, to it -- in

the that's an is delineation. granted undertake the achieve what of program want government active to extension then we so get to And with

growth. just this -- only up us future. a a to for reserves company would developing report with come that develop our for as We through and those for future to beyond and date develop give asset base and reserves great its a for long-term It's to plans reserves XXXX chance

Thank and you right. All Richard very much, Kathleen.

Okay. question. you for Thank your

of Your comes next the James. question from with line Brian go Please ahead. MacArthur Raymond

constrained stuff this a American issue? just Morenci. you Good anything think, there's if other morning. is leaching and you want tank not Is forward but it everywhere I million little I bit that situation whole bunch I detail. XX% then internal, else? can up XXX North it's the of so of made bigger most I is Or appreciate stuff. Jetti. you just comment do follow and on clarify, could said of else? stockpiles, sort there But a to all Morenci the about want Or Bagdad bulk at of house and going by its a was just the be of a Sierrita the to

in we Brian, X compelling these across And really that this incremental But billion a what about initiatives. business isn't a latent there capacity pounds makes capital it's in so is places. is have year. tank house that involved lot of different of the

leach go So has time. declined decades, you historical over production, back

renaissance providing a it we're a have on just once having map is a of kind to resurgence with that's available what And And stockpiles us the within telling us was. what's leach going prior of of data the to this new us road production.

need of if the is, latent in we new house at got house many sites. invest fruit hanging So be, these low but could we've tank capacity, tank capacity

has will to-date the But is the likely But the footprint. the across impact be lion's this approaching where really highest that footprint. additional Morenci. of across been And we opportunities have we at pounds. get share we're So

operations active the We hanging inactive where -- is lowest in future. fruit leaching. leach we're places in and But value highest to stockpiles that also and we already have the look first the the can

is leaching ago. and Morenci world's the developed operation technology Yes. where leaching was decades originally of was modern the today, it largest much

wish have to on So It's a I could good our this. team excitement see. way just of the really working conveying fun I of

last to to the We're leach leaching everywhere and we're going drop.

capital the just the and is emissions capital, do carbon house climate this not things. -- -- -- the necessary, very benefits are tank of it's And the it's of little in are significant So permitting kind bigger working a if our picture on -- There's we and with to -- stuff. on we because and every our capture respect, our and cooperatively why on economics that's with we're winner so it's focusing it can do other for do what all shareholders. we on the own, companies no Jetti own

fun it's said of lot to It's injected a really fun. into our it's see. I really So of and deal that's a a enthusiasm level whole organization multifaceted like

million be about related thing, staffing, of also as XXX just efficiency North I it But here. asset pushing might pounds. a American you talked

to equation? that part So independent. this. What with is of actually any that That's of has do the nothing

as efforts with in our other not advance to limited talk the it. us experiencing it's the that it's -- with everywhere business Well, it's But CEOs industry. mining restraining I not people to leaching. Certainly, roundtable, issue are an

work with the Chile, issue people and approaching out aggressively labor a its but grew us, we're it make do it's life by it of significant Some it matter also the people, in But to way but real spurring US. in issue of in just what technology to business forward, but can is attacking are it's we our COVID not they US, less Indonesia, recruiting our go the styles as a for intensive. for see a in efforts Peru, real

basically up and consistent also it's our getting plant and in what Brian, our rates with processing we've mining experienced reliability to past. standards But, getting the

experience and about. for a the is to have but it self-help things But we've to are major for Richard working So impacted some efforts talked need the to are get. this these a levels on don't us do it's reasons that we're -- go an items -- go on, underway of just got these project plan we how and work opportunity game already

we that so, the initiative, self-help and this near-term. again, of work doing value leach leach we're initial the opportunities in some initiative the highest have is the And

world? biggest while the to Right. copper it's And the mines I of billion guess, five X equivalent in pounds, one -- of one being top the

Yes.

much. you very Thank Great.

go line question ahead. Wolfe Timna next with Research. Your Please from comes Tanners the of

good -- I to want Hey, morning. at look

Timna. Hi,

what is sounds from at and situation look -- what it slide kind understand you the trajectory we the and cadence is forward? So has of going like to wanted the five hear. kind I of really the Thanks. Peruvian improved described as

behind expect you labor we fully interruptions I continuing, going assume forecast this that run issues are is So to we talked can there. about and rate know going not weather, forward? but the I

expect regions Thanks. costs impact be lingering? that I a about just more get on cadence bit wanted the you'd in any and might the little to So

Arequipa just and of Peru. in they is parts -- there, of of the areas. weren't a start large about making the as the were country just Arequipa, a different city our other located as the there And comment region. off by Peru. outskirts of Kathleen, operations while the I'll in protests There are different And issues protest in

movement personnel And And we in disruptions for country. The a in did of and have supplies it issues time. period our improved. some have region, has of not been resolved the

there And as remains so risk. an ongoing that

But assume look improvement what's that on issue, to same forward made such because there regions in as the and carried this you I that's see that trajectory look think, it's and individual at not we going important at extent regions. other to

complicated. it's whole that This is So but complicated. business very complicated, Peru is

for our that Timna, XX, And sales you of quarterly slide can volumes the the year. has look balance at and

The be -- on expect this a rate run recovery see strong conversion first to but Indonesia, see also XXXX. the these the expected quarter had was where we where disruptions, in tolling we into impacted year. going projected can to quarter the And you you for of balance first balance quarter. the by to be we had very which very, we of from But can in

the had a besides asked? as out woods for second labor the Anything question, side on most Is issues? group part the the of the cost also of of of that kind I

the $X.XX. we had Well, projecting the average quarter, we're and year to $X.XX, first for

balance principally year saw year energy and first in the So energy. from around of starting inflationary were time they our about that's in than the cost year. unit the We this the the We of cost some be talked spike easing last last in big -- quarter. will less items

costs some Russia-Ukraine input were that by the And the situation. exacerbated other of

have things us East with still our in were in still are labor for those components, that equipment of or so is that those we contracted some of and that's services costs have components, Some helpful. declined But things all XXXX.

of estimated beginning and higher still are higher. year. than elements of of at some some but They're So elements what we they last than were the year, no we've that this costs relief got higher

Thank it. you. Got

Your Tumazos Tumazos line LLC. Very Independent ahead. next the of Research question comes Please John from with John go

for Blanca that moly began will color give there February Spence to April taking spot $XX reporting good question. concentrator were us Cochilco you noticed the moly customers May. my and Quebrada specific you shortage, get had moly? high to whether start there probably output on was and the some I purity presumably for Could January that some some in Thank escalation the

the Thank You were source have have not where insight supply when as of to the supply you. but doubled? else where the -- you rebounded might this maybe increase, some the price

did quarter the some and And the impacted But copper. comment was that an add supplies. moly of impact America, in I'll on can have supply happened Mike issues in South what Kendrick it. John, to same first Peru, the situation particularly partially, in from

same we growth in the time, And some seeing at strong were demand.

So normal Peru to and got things when quarter of there's started more first that operations. extreme tightness in return some the in relieved to

fall We just moly positive continue to as bring see, demand for a in supply a is the lot we forward, new look to supplies. copper on it's drivers side, like will being which challenge

to maximize was, you copper supply. if to things But when that know, get people and should byproduct add. that. constraints. that perspective from we that one don't a know Mike, thing operating There's the I moly into try in the many think, as is that on to And has maximized want with main moly sometimes that those scenarios. you people occurred I add other a in moly And Copper mine trouble isn't times, may

No, what contract. given quality, and there's we physical demand business week, result, available, as increases see you and supply you I captured highlights attenuation decreases really I we're when a area large to not the that in you can any rapid very a on well, it no a moly Kathleen. as and there's system. think that player when in question is. it through -- under conduct both mean there's market tight your need And think I a And rapid

our of most high quality has time to material So products. those all XXX% designated the

Thank you.

Thanks, John.

with line the Vertical Dudas from go Research. comes of Michael question next Your ahead. Please

Kathleen. Good morning, and Richard

morning. Good

given towards work your talked from other fact there growth or those capital you year in or next the that risk the witnessing balanced in there upside this it surpluses slight talking is market maybe attention and about and capital. the you years supply What indicated you dynamics market do downside was as about prepared and XX, over away observation remarks, As what The to risk from acquisitive through think months? to take that XX consolidation is may you you the now ago. a

about you breaking up were risk supply were side right? the asking assessment, You bit, a but

Yes, yes.

you if there So first massive. projected now stream massive on coming years and there's was year looking to surpluses when go in having the be calendar 'XX that delayed reasons, as this are markets projects calendar for There were different they're were announced basically and back services. several the projects hit, year balance major got 'XX-'XX and not potential surplus and situation those COVID year this

new But after significance on not stream there's that. projects coming of

projections reasons. had risk issues that So side places. more the more say much meeting the I in Peru downside. related We've being to The Indonesia in production, situation like issues seen we occurred on operational -- higher supply is would for other various and

more actually we happens. look the gives I And for on be to that's this back than risk, downside. you overall, think, upside. projections supplies higher we I the be when some -- where which project, It's a history, now. I if to So tend -- tend us for But long-term the experience think have -- reality projections leaching are think are

Richard. you, Thank

Appreciate Thank it. you, Michael.

from question comes Matthew Barclays. go ahead. with next Your Murphy Please line of the

Hi.

the it be past, -- on distributions question there's flow but statement. up the catch of interest Non-controlling going And a happened to which quarter, a bit a I in that? were in zero this what this case, assume the should it's we that times is in Just cash year? drives few later guess

prior we significant we related in had some quarter, that the taxes We year that had some the paid first period. was taxes The first to expected. quarter significant

a distributed. increase generating distributions was we do funds see at will line the and that But so at we throughout that to of as free quarter PT-FI those Verde first have expect flow item you'll And be those We're year. and fund cash that not that expenses. lot Cerro the in did used

thinking on we of similar of it, flow that, that but than maybe for impact, terms net are in about earnings the on guidance bit lower in non-controlling somewhere interest do the provide to So and the estimates cash our impact a some income neighbourhood.

great. Thanks. That's Okay,

Wowkodaw line of may the question be comes ahead. from Orest next Orest, mute. on with Your Scotiabank. Please go

of will Please Securities. question America next Lawson come with Winder Our ahead. line the go Bank from of

also been Kathleen that improving the your mining? in such could and so direction there's you my nice operator. Richard. fitting Is views I positive wanted just touch where on there you, morning, Thank you from for developments. for might hear question. just there some Thank you. in now much. Chile share Very the look the for Thanks El to on environment Abra Good more then please for environment promising an correct regulatory And expansion? outlook the to

environment. while process up. it's There's Well, uncertain. that better how still out. where use been, see and started, related is that some since uncertainties there significant occurred there's on it There taxes. will this still and see fiscal wait to issues And miners have our picture impacts and And other -- regulatory Lawson, to were bigger they we're but developments has we play still to positive also waiting from perspective, water issues to the ends it than some other relating royalties are

operations, planning existing optionality. things but doing project. maintain some potential to for benefit will some the in for us give extend us the investments We're now opportunity We're also desalinization not some to only ability which mill

the As we our talked on about leaching, design expectations earlier, to could project. about we're and of evolve the doing work that some continue new expansion

optionality. that making open. options to some keeping enhance we're So We're advances

is very the But strong. project Abra at El

reflect Abra saw in is. the El mean presentation. We the current a the resource. numbers environment But numbers about talking in slide are has and increasing huge release cost press capital production in of updating our potentially I you the there We're what to our process

some that move get of a quickly us move forward will when of updated we're make to we it's if, -- likely it's the -- is keep a the project analysis done. not decision. that put in to that a when. to And and project more so initiatives working It's And question with position these

both very much. Thank you

AS. Please Nyttingnes with the Securities Your next question of go Bendik ahead. from Folden Platou comes Clarksons line

you. Thank

more it on you what's a your thoughts something underexplored organic industry project? those and rather that doubling large the at or resources strengthened looking your in as Looking the of balance the bring focus and that greenfield a all, jurisdictions will one some XX world potential at, within of you're consolidation? scale sheet demand of to Is timeframe, year on pipeline at forward XX in potential on taking growth

rare. I'll our And Richard, not seen we're industry. huge on focused organic that years, We're has over we at organic greenfield many opportunities some to you that greenfield opportunities, everyone take then growth haven't one. as you success. really our others portfolio we've looked really It's the have, fortunate see within have

It's not a leach we greenfield on the top get of leach keep done, finger brownfield we noted reality. pulse availability major not opportunities is saying it our it's be of our opportunities, on our -- we this we're is. what the can't line earlier if that opportunity the can But to someone had, focus

And opportunities is on more of little brownfield. bit brownfield lower so on focus our in asset while of to But We focus, risk more around monitor the pipeline greenfield and exploration. on money because our our profile, more continuing a certainty is what's our available greenfield. spent focused

go will come Jefferies. ahead. question Chris the with LaFemina of next Please Our line from

again. Hi. Thanks, operator

CapEx you expansions. primarily Bagdad early in Kathleen, future the mentioned investments for to guidance relate So, in increases

very had good. October, was said environment Richard that in because, was the think on investment growth back not in I obviously, hold macro

change China changed is six was these supply world Freeport's the wondering, because are kind that view Thanks. has there progression projects? just it over the getting it in So worse natural issues and just reopened? I'm last just of the this Is has of months? for anything Is no or

on anyway optionality. several of tailings really do we'd plans. works, mine work to any lot support a infrastructure have life do significant to -- but of out, Not really that way gets change. the years to to early would Bagdad's that any The This relates to we're doing have it we

is that on position be in quickly. to Bagdad, do of better some move this with so so forward, that And to a decide forward more bringing if we'll it we bring

-- the people change. the acceleration is potentially but what tailings just forward. project. But for more We of this our will to really as the all economic portfolio maintaining optionality options quickly. And project, of none doesn't Bagdad have that's say just about this us to it be overnight, we quickly infrastructure more us housing give I just of of But and happens is able within only move still challenges challenges the this go when but the for not And uncertainties, to, of

Has your changed? about view copper

that, say, in uncertainties where year. I situation was the for it industry, midyear said today's having But our economic last world, the without would and has improved from underappreciating

ever Throughout experienced. the this, And and that China's issues. demand for about continuing the was driven the growth second consumers the there's We it XXXX. we're being copper strongest I recognize in half in by comments the encouraged it of year second GDP by was half that strong. believe they've

has Inflation improved.

these driving projects will is But so by said, all But very decisions. needed And what's in has the uncertainties. not shareholders. I by political worker project recent improved be really overall months. Kathleen issue, environment Bagdad think -- be faces the our as issues. believe that's continuing our restrained The we're we world, profitable for housing Chile they'll

planning in that anticipating will And for so them. come we're them and execute on time investing them, we the when

That's helpful. you. very Thank Great.

go Very John Our line final ahead. Tumazos Independent with question Please come of LLC. John from Research the will Tumazos

you. Thank

sort that supplies local this you were Looking lot, not give plant, It at of adequate? saltwater on community for relations rains Or obviously, I'm is used cooling? not water that? in slide most XX, draw for includes of freshwater water assuming is that thing big Could little the a Indonesia. background supplies? cooling Why you of have smelter? desalination upon could us a the to and a the bit

of to was configuration. but the process, a Corey designing want thought isn't overall that the best in looked for We and We water project This of project. was capital number But requirements. to and for for I we not a add if thought this water look part anything big water, into number terms you of don't of reliable at of did this that, a know John. but options options, the option the is the

around and And We be future us. be out freshwater what versus at we're in and and cost what the future the differences the the we to social social those and looking the came you water, going prudent demands hard make desal capital at the conclusion was sources saltwater going potential impacts options. to look best most decades -- desalinization to renewability a that became and of are to Yes. when decision are then and for route route looked this the use

Thank you.

I'll management remarks. now turn closing back call to the any for over

interest. your We appreciate your participation and

in Joint, you the be have respond them. further our forward We If questions, to contact on reporting and to David happy we'll progress. look future to

Ladies for that our gentlemen you participation. concludes today. your call and Thank for

disconnect. now may You