Freeport-McMoRan Suspends Dividend; Announces Reduction In Capital Spending

(RTTNews) - Freeport-McMoRan Inc. (FCX) announced additional actions in response to market conditions, including further revisions to its oil and gas capital spending plans, additional curtailments in copper and molybdenum production and the suspension of its common stock dividend.

FCX Board has suspended annual common stock dividend of $0.20 per share. This action will provide cash savings of approximately $240 million per annum and further enhance the company's liquidity.

Following an ongoing review, Freeport-McMoRan Oil & Gas capital expenditures for 2016 and 2017 have been reduced further from $2.0 billion per year in 2016 and 2017 to $1.8 billion in 2016 and $1.2 billion in 2017, including idle rig costs. FM O&G is engaged in ongoing discussions with its rig vendors and other service providers to obtain reductions in costs and to evaluate opportunities to market idled equipment to third parties.

FCX is continuing to evaluate its mining operating plans in response to market conditions. The company plans for a full shut-down of its Sierrita mine in Arizona and adjustments to its operating plans from its primary molybdenum mines. 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.