VANCOUVER (miningweekly.com) – The world's largest publicly listed copper producer Freeport-McMoRan has reinstated a cash dividend of $0.05 on its common stock, citing an improved balance sheet, stronger market conditions and a positive outlook for cash flow generation.
That would add up to a yearly dividend of $0.20 a share, which reflects a resumption of cash disbursements at the same level at which the company suspended dividends in December 2015 to provide cash savings of about $240-million a year and to further enhance the stressed company's liquidity during a period of weak market conditions.
"We expect to continue to strengthen our balance sheet, maintain a disciplined approach to investing in attractive growth projects as economic conditions warrant and provide cash returns to shareholders. We remain focused on building value for shareholders and a continuation of positive market conditions will enable the consideration of additional cash returns to shareholders, consistent with our long-standing tradition," president and CEO Richard Adkerson said in a news release.
Phoenix, Arizona-based Freeport has reported a better-than-expected headline profit for the three months ended December 31, as its focus on productivity, cost and capital discipline dovetailed with an improved market for copper.