How Do The Stake Sales In The Morenci And African Copper Mines Impact Freeport-McMoRan’s Copper Shipments?
Freeport-McMoRan has made debt reduction a priority, completing a 13% stake sale in its Morenci, Arizona copper mine, and announcing the sale of its full 56% stake in its African copper mining operations, with the proceeds of these transactions earmarked for debt reduction. The stake sale in the Morenci mine (completed in May) and the planned sale of its interest in the African mines (to be completed in Q4 2016) lowered the company’s estimated 2016 shipments by only 3%. However, when we factor in the impact of a full year with a reduced interest in Morenci and the sale of the African operations (2016 figures include shipments from Morenci and the African mines for 5 months and approximately three quarters respectively), the company’s estimated 2017 shipments are around 18% lower than its original 2016 shipment guidance.
Have more questions about Freeport-McMoRan? See the links below.
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