10 Nov 2014asset acquisition disposition● Neutral
FCX filed a routine follow-up amendment to its original PXP merger disclosure, adding a full-year-2013 pro forma income statement -- no new substance.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
7 Oct 2014material agreement● NeutralMajor
FCX agreed to sell its 80% stake in the Candelaria and Ojos del Salado copper mines in Chile to Lundin Mining for about $1.8 billion cash plus up to $0.2 billion in contingent payments tied to future copper prices.
28 July 2014material agreement● NeutralMajor
PT Freeport Indonesia signed a memorandum of understanding with the Indonesian government to resume copper concentrate exports that had been halted by an export ban, agreeing to higher royalties (4.0% on copper and 3.75% on gold, up from 3.5%/1.0%) and a $115 million assurance bond while negotiating a long-term contract covering divestment of up to 30% to Indonesia and continued mining operations through 2041.
2 June 2014debt financing● Neutral
FCX amended its revolving credit facility, extending the maturity by a year to May 2019 and increasing lender commitments by $1 billion to $4.0 billion, leaving about $3.5 billion available.
26 Aug 2013debt financing● Neutral
FCX filed a Form S-4 for exchange offers covering $6.5 billion of senior notes due 2018 to 2043, issued in March 2013 to help fund the PXP and MMR acquisitions. Holders could swap them for registered notes with materially identical terms, guaranteed by Freeport-McMoRan Oil & Gas LLC.
3 June 2013asset acquisition disposition● NeutralMajor
FCX completed its roughly $9 billion pivot into oil and gas: the Plains Exploration & Production (PXP) merger closed May 31, 2013 (~$46.01/share, cash or FCX stock) and the McMoRan Exploration (MMR) merger closed June 3, 2013 ($14.75 cash plus royalty trust units per share), funded partly by a new $4.0 billion term loan; FCX's board grew from 12 to 15 seats and PXP's ex-CEO James Flores became Vice Chairman and head of FCX's new oil and gas business.