NYSE-listed Freeport-McMoRan will, in response to the Covid-19 pandemic and resulting global economic uncertainties, suspend the quarterly cash dividend of $0.05 a share, as was previously planned for May 1, 2020.
The payment of future dividends will depend on Freeport’s financial results, cash requirements, global economic conditions and other factors as is deemed relevant by the miner’s board of directors.
Freeport also announced on Monday that it had undertaken an aggressive review of operating plans at each of its global copper and molybdenum operations to target reductions in all elements of costs and capital spending to achieve maximum cash flow under current market conditions.
Revised operating plans may result in temporary reductions in copper and molybdenum production at operations in the Americas that are challenged by low commodity prices.
Freeport expects to complete this review promptly and will report its revised operating and financial plans when it publishes its first-quarter results in April.
Freeport president and CEO Richard Adkerson said the “prudent steps” being taken by the company to address costs and capital spending and preserve a strong liquidity position “are necessary to maintain flexibility” as the company responds to the current global economic uncertainties, and the resulting declines in copper prices in recent weeks.
He emphasised in the statement that Freeport was “continuing to focus on the health and safety of its employees”, while supporting communities in its operating areas and serving customers that have indicated ongoing requirements for copper.
“We are also building on momentum to establish large-scale, low-cost production from our underground orebodies at Grasberg, in Indonesia, which will position us to generate substantial cash flows beyond 2020.”