Richard C. Adkerson
from our call. government our of Indonesian the Thank contract. to work and trips speaking issues Jakarta series for we've year Kathleen I our reaching a this on us a are you you involving made joining resolution where all on to of with
clearly believe strength I of results our quarterly show the company. Our
very the are quarter our long assets. During strong which we cash by third had operations generated by flows characterized lived
producers improved company's about today. copper improved ability market to light the during and This I'll in consider optionality growth And now that be our enable significant the us these have future to have consider speaking conditions. we of We're the future actions very call to our balance value. incremental this will going assets We sheet look of in as investment way a disciplined build a allow company period future shareholder forward industry. approach throughout to growth. within But and us our are to that to we have
we advance We're of business, focusing During our operation goals. key and copper the of safe XXXX on focused quarter, assets. reserves, long-term long-term our of portfolio efficient value and attractive our continue operations, building our to production on through our
our long-term mentioned, I hard As are working Indonesia. rights we resolve to in
to-date approximately generated capital in cash of have in expenditures. million $XXX of we expenditures. of from the flows flows our almost excess excess in months cash quarter, the $X operations we billion During XXXX, our for nine capital And of
is continued We from factors mines, projects, existing recent stocks a that analysts The remain over less but globally. for require new the is unleash Mackenzie, absence situation industry's higher the future positive. produce today top always XX from continued X its with Chinese the the copper We next in tons other there the production than a regulatory issues market to million the feature copper prices the the tons so-called the to are copper States. required tax the expected. prices demand about growth the investments for than expectations. Europe. have could forward that the a significant has X copper world, as country low. million U.S. with market that that the significant positive and to meet, outlook declining to exceeding are the and sectors $X of been who estimates we many underlying continuing as in copper for And analysts, positive fulfill Party growth in this demand of the higher demand capitulated. in required historically are And of meet of addresses were growth looming projects deficits decade. are Wood major in prospects supplies solid pound. What's well. supplies. demand look new Congress is future, manufacturing within significantly United been China, over mines copper of Chinese benefiting the into just will recent world constrain one Communist There's be has exchange And there predicting performing are continue skeptical global Around industry of wall to looming are that The year. were Growth resulted demand continues the
will So of the the that extent projects of that shows amount copper be required developed. to be
electrical copper support vehicles quicker and than in are in charging electrification of copper This this currently strong is of lead we copper really automobiles. is significant emerging of next potential over consumer of They traditional decade. evolving will there too copper XX new significant the I really X the for world there of demand EVs well and the automobiles, for not environmental of demand, require The incremental our industry over trend mines $X factor few years, are three marketplace. benefits pound. growth is very on which As more themselves, and or electric estimating. economic a people sustained looking know are mentioned, but to much prices world-class the clearly new time developing projects and range now in automobiles generation for require well times This expanded an only the and translate available. for the this opportunities very because than and An will into petroleum-powered infrastructure amounts. The there's copper for intensive. is are more prospects all upward
reserves We of historically show don't quite and largest we've it terms often I production. world's mines in on are slide think that we a of slide recently. estimated presenting we the used terms XXXX presented. But as X,
terms of dates mines top Our But of existing the simply And discovered. company has at XX were discoveries has in which these we to point the reserves, in new brownfield opportunities XX as the X world-class resources being the looming expansions X to There note major top when nature world-class they're out to not opposed look current been terms mines we – in of of the industry. recent of in the always available the of today, of mines. production.
and In have large large that bring for It and by are from proved be into allow be to a undeveloped to our looking to significant us opportunities company disciplined, to environment, existing Abra sulfide years Kisanfu. low before probable project continues remain be regulatory district additional that continue which In a stage these Africa a for a a and Fungurume evaluate at over our our an existing because was from time But develop we to in America, in built has undeveloped that mill levels a be able series supply that to be. assets opportunity our has where And expansions to allow situation, largest we're our this expansion we and we project low-risk, a what substantial farmed we are as that market drilling of proved We reserves, it's development that's this we high the where project in and true as Verde called go commodity to complete material retained Cerro our standpoint values have to considering of years we in footprint, it. discovery supported which footprint light our future it that but mineralized will Serbia we is mines been develop we operations. have The we believe for future with large need world. economics States, South and El where studies. plans two the into allow large costs, be project we workforce, its typical of would the All low successfully attractive be project optionality has to larger disciplined These our lower to for to last seawater in stand-alone we zone beyond to not advancing we planning opportunity already It mine us approval it. a large a It develop and of mine. are our value a the there a where In is opportunity and very very an mine large the in us allows and reserves, to look on justify Abra. it supports we've conditions to zone a interest the extensive last resource available way. company we'll at early out would either begin very producers. technical many forward will to sold development in in assessment are altitudes transport evaluate El that's the process resources. identified to as has a which board projects. mine make improving and copper exploration the United to the an Cerro for company this our and Verde will would by which upper It we scope, begin our permitted, at deposit probable industry would, positive resource a continue can of our be had environment. year, desalinate produce cost, very and to significant Grasberg to at a flexible the formal the for large-scale benefit is way cobalt almost high-return creation this infrastructure, would be but production smaller a world-class potential for look drilled, in that sulfide at it the we us to similar for some and beyond there, from high-grade Tenke that it future Currently, continue we were Indonesia, are at will decade. of would we would project, forward will connection to going be ago. When a important We're going an to nearby for significant but energy or own. driven nearby these
volume large-scale this have operate where two the currently portfolio. we seven copper along America. as Cerro above our In million of along concentrator. sold in for States, a was averaged in open-pit the the in two growth copper really nine the day. pounds pure Escondida's in CapEx, It's in performance. at of operating So, molybdenum amazing on assets. the with I high-quality South per with have currently have cash United The of and for Cerro continuing This million strong and future and we quarter. and Americas in XXX,XXX third we the We're with mines is but great opportunity months XXX maintaining portfolio that managing focus Colorado, They're In Americas, this look largest We we're had concentrator tons looking as $XXX concentrator in Verde mines mentioned, the mines They this we to in cost Verde $X have alone, studies forward, flows third the quarter, two position we world. billion. we Chile. it over CapEx really advancing
we at copper so, the Americas that for sales pounds Indonesia. look have outside million we of X.XX million pounds And operations X.X will business as of our from expect the come our overall in to and of year roughly roughly
at It's be pounds billion copper. at billion at of all Bagdad, in see values that a look you its mineralized operation look right. Xp XX And that a that of you'd pounds large So, to in portfolio. at reserves if about at the the is copper In beyond developable very have the The at resource you the and XXX can would that our got Indonesia, of New we you Americas Mexico, amount these a potential reserves Star/Safford $X then $X.XX own XX Abra pounds with has have at mines, very that we've got operation copper, this great the looking unique Arizona, mines Morenci, but substantial Chile, Chino/Cobre I'll talk Americas of operations material you a in El – get business million in Lone Indonesia in our twice Sierrita, copper. the business XP very if copper in
So, production built what very levels. we then have strong levels, with into portfolio future here is Star, a and company okay. current growth cost attractive our Lone levels,
Morenci. Arizona. mountain, So, our that Eastern the identified XX Lone just in across long Safford from to lies Star is adjacent mine resource a It's miles
aspects We opportunity. this to have two
preproduction to significant infrastructure of are it would mine we XXX price resources development existing that first oxide about oxide a at $X oxide with take will The are pound. use costs life. it Estimated proceeding million we begin, million Got is $X.XX get which Safford essentially at depleted. the a unit our resource project current the copper return stripping. utilizing a estimated and It X% towards our regulatory which where are capital estimated The This it being production. existing equipment at near-surface has production low year. infrastructure. pounds mining a three then the we'll oxide breakeven cost to $XXX XX-year be execution has The just mine be and a resource, years we'll We've When value permits. is $X.XX since use an transporting very to attained in processing we a risk of more the Safford billion prices. where or for
large pounds cover itself, developed a has this but holes sulfide. to body, turn that find potential good defined there the continue potential be economic the oxide is that schematic will of lies as of a see a underneath to our happening only sulfide El deeper copper. And tremendous mentioned deposit XX, XX us as high-quality we'll Now, year, lead would advantage advancing a at chalcopyrite by XXX take I concentrator, to-date what Verde, studies. for generate per to we if large a strip to did this resource, involve core allow chalcocite The a that also serve the identified significant is Cerro being date, that oxide to is copper. through resource can resource material see very production but that the It's X.XX% very cover, profits leach technical oxides to shows this billion that the to drilling couple opportunity. a project project. construction. not note development of that permitting to you can We're three estimate To the drilled times. mineralization. low-risk similar cover, pounds and time sulfide processing billion out followed pounds mill by feasibility in is Cerro resource Abra Like serves and we've what's study what for be be the of can It four XXX,XXX a of concentrator consider ton contained we've The the a that low-grade ore operation opportunity. large, Verde. you XX-year a a of years million below besides which including is project itself would developed you oxide shows page recently And day for X
ways doing team as a we XX. this come basis. keeping what at these at efficient we with you of a And ore our with Cerro to Verde, for forward of very on did be studies. on schematic reducing looking that's are go up We page body There's capital we'll this challenging informed
You drilling material ore results pit also that to continue this note mineralization shell, mineralized a positive potentially and drill drill can we body. see has for can what the have at shell, to date, depth but reserve identified as extend
Another great opportunity.
that So, in that government. August, been government of to agreement during having of we, together framework a several for for after resolve with the an the announced with Indonesia a XXXX, been dispute of meetings years Indonesia. we've discussing the series At end we've the
what quoted We've over been operations of But bring you'll In would the – Freeport provide seeking certainty much IUPK. negotiating is involve operations license The would government and parties' framework eliminate good as resolve have with progressing our our rights to Both this is agreement recent XXXX on an we Indonesian win-win it long-term discussions our well, had of existing This the been to IUPK. our is the of are generating a and through and in in called and this, subsidiary, both and existing out operating going Contract special legal accordance operations. we've interest. the improved was that – the see, interim, long-term uncertainty with Indonesia highly in IUPK a PT cash the mining are the was current on law. Indonesia, agreement. motivated fiscal stability which of which during times term are in as government and with would company engaged signed in of government finding provide the framework recently of We that Work our seeking converting flow the and terms this President XXXX to solution. we're
project also We complex new to Indonesia at for it, the that of in and to commit This been divested, conditioned located objective framework. important over have those Where complex. are maintain resources done that's operating Freeport in reaching of this objective presented we've The of are mutual for agreed to you five under control receiving in in construct to in There has the project, are industry. the agreed Freeport, government are am today that Papua. that of highlands and those New flow been business, are actively export of be years very the It's of in have we're that the resolution. primary operations. for on operations, we a that and of objective. Indonesian are insisting that way agreement. agreed the on is a development very But year a issues, meet I we a the XX. interests associated contract divest to value and with not convinced the Managing and of PT-FI. the issues the we can is XX% resolved. of shares was terms Grasberg structured engaged in smelter complex as participants this a market chart underground And a this this This Indonesia, of control of our of negotiations, to agreed involved meet environmental slide we, is recently scale within the government operating negotiating been never of stay currently us of involved, a we documentation all government reaching and place, our fair to it maintain a province the have an our ability see, through remote in definitive social the extended in of We've to cash that Again, capital issues the a well, the operations. Freeport Guinea, objective we end continues
of months third we $XXX the almost million almost and quarter, generated it's and million cash million of this operating with $XXX $XXX of flows year, CapEx $X.X CapEx. flows than billion of operating nine During cash compared the less for
early the our to of and asset is between preserve partnership working is that. Grasberg on government to pit. and operations this lies for great underground of XXXXs. in company future underground company where significant resource the operated going the the Cave directly The working big The So, we currently we a this we are Indonesia have open had hard Block beneath have and project is are since the be that that
production levels grade This us point is – for annual five until copper Block exceeding of current up year. gold pit begin million copper all approach call operations. pounds finished. will and forward, open the over begin of ramp be the would then to Cave caving a this at Truly from We a gold. a X% or XXXX. world-class complete X.XX. plans a will Grasberg production And block the reserves billion six of can't us from will significant project allow in of the block our a caving ounces This Our late to tons to to resource underground. years and The of pit the next with from lead grades billion a that
including every XX. page A presented in economic is the operations is respect, low the of life, So, and this schematic cost, returns. and world physical tremendous long a class project on
have be an mined The to pit open Grasberg resource We're mining the to access to the it. from this see allow can most economically and process of we've resource You been approaching Block pit. underground. vertically us extension it is Cave to can levels the that
complex block And be cave supplemental the ago underground at resource the to the for is in then, And going mine producing GBT XXXXs, resource years Block IOZ that up the the tons resources the We depth, ramping a production continuing Kucing which mine XXXXs. we've will adjacent up. that early Liar to and to our an we XXX,XXX well Grasberg XXXXs. this feed is Gossan mine will the important We've to from cave block that Big day, future, the approaching mine, potentially this over to began Grasberg in in it's additional that's Grasberg stoping the Block in apart producing. the have at of DOZ the resource DMLZ provide which began two Cave; per are original we per mill We from that tons been rates feed the extend Cave, mining XXX,XXX our been started day. set
dividends. of on XX% government has with to ago. the years, Since Indonesia. Mimika Mimika contract Indonesia partnership. over what recent new So, generated operationally and XX% began in been We're forth the we've the contributed XX historical the world. we've we're regulations royalties all we does so arguably Indonesia's is operate, the began province in those We're of region. the operate Despite that significant versus GDP has to the far of existing the over GDP. private and deal any and taxes, of place government paid revenues the the favorable positive Freeport. this of world Indonesia? dividends issues, the employer a in in tax some billion by significant we we gotten the controversy this the Regency. Freeport and one in mean operating, excess years This, in XXXX, with Papua very The Since there most the largest for current been way, by operating economically of have to of the We're country $XX contract the and of well favorable where in payers and of most of any largest government
but the contract, beginning XXXX, local our that, copper, been addition accumulated to In welfare gold for to dividends contributing education at a to fund we that recognize And major a And billion. asset country all all would support forward recognize we Indonesia. the for partnership the health, This $XX of we've exceed parties reach through a local and taxes, current X% our the necessity in revenues neither to community, that avoid our $XXX to our XXXX, enforce has an in $X,XXX future for Freeport, is resolution, do. and communities community for wants to special having us thing for of we the the fallback almost through of and at which amicable going million try projects. is its best royalties $X is major alternative look arbitration, rights end to of When that. asset both
our to And do that to so, we have and work continue great is to that incentive goal. to solve need it. We cooperatively just
our expect this billion pounds copper, million produce Turning outlook. we X.X to XX million pounds consistent ounces, of mentioned is with our molybdenum, I outlook, prior and to X.X of
molybdenum, in gold $X,XXX this us. for billion the million again costs molybdenum with production in After fourth Grasberg credits and before $X.X at be copper, net Americas less pound. site change byproduct would than $X at of and in are include and business, copper quarter delivery consistent each $X.XX outlooks, cash $X.XX, generate $X at credits which would of $XX byproduct would operating unit would this means Our At flows, gold be gold, costs $X.XX. the our previous a $X $X,XXX to
all are including at consistent major mining million the underground $XXX for roughly Our with the $X.X other year for is billion this prior for current development Grasberg, for million projects, $XXX capital million expectations guidance. Again, and $XXX
pounds Arizona. Net year, last in that sales additional X.XX of we'd slide XX, on to copper. billion. Fungurume the that included partner, our of X.XX Morenci assets interest this mine were Africa; So, we looking been in outlook at last our volumes in we had an at in and for mine billion year those Tenke have Sumitomo, sold: our That number included
three next be X.X XXXX is XXXX. outlook X.X expected is The the It's be and transition. our billion that see for year average, X.XX years it to billion would billion, You X.X a is below pounds. for billion for X.X billion. of average about
mining ounces gold this increase sales X.X average million X.X open will beyond complete then would the we be As XXXX of X.X million three-year pit, the year, year, our and gold. million next
generate between Now, $X prices and copper $X.XX. that at varying would
As to and see to range is average moly, billion $X.X flows of average. slide EBITDA of you XXXX than $X.X to $X.X $X.X two-year $X.X $X,XXX will this This point be out gold, that XX, of billion billion can higher billion. over XXXX-XXXX cash $X billion. price flows and cash of on Strong an
You our on XX. expenditure business. our our XXXX. was including it's oil can $XXX This management year, roughly it for million Grasberg depicted $X.X underground for capital $X.X and discontinued $X.X for year and gas a billion development. slide includes year, billion billion, billion, billion $X.X $X.X Last XXXX see This
– as You increases debt will were with levels. the financial high dealing increased, our minings issues has we see that with associated other
see $XXX Following the from forward. deal $X.X $XXX squeezed one XXXX. can And million up stay-in-business some expenditures, increased going to gas deal, you we've to we million that's catch in and really by got capital with type billion
that asset be, XXXX. and a of earnings $X we see the stay to investments continue the it's XXXX, and over when went plan, at we've do were goal billion. $X $X shareholder through made our I to $X XX/XX our in have – was below meet low to successful been capital opportunities of We and XXXX, experts that copper And it set returned to our over will $X in roughly very pound billion. it otherwise through copper you reduce look than this be levels. of our Now, by of debt. years we capital, reinvestment levels if to And at And returns In billion as or to less position delevering of in a to to $XX end with paying $XX disciplined be a excess quarter through $XX a you the forward business. we end until of dividends, January to we returning XXXX, the would our consider said, particularly reduce this, in a fall which to company or how many our approximately is projecting billion I can $X apply the debt. fourth debt XXXX slide We price by, raising decisions copper, see cash confidence and see we like would by if cash to of at the make allows And some of low end prices have debt a shareholders. two ending by we board years. and level $X.XX, sales By end debt average to reduced to billion we to doing our XXXX of billion returning can to $XX for number call
people our that We our business, business. markets outlook our keep high what other for we outlook markets. the our And have and us assets, positive The through each that's was long-term about. a were of talking thing has has time when with for been the very positive our weak a sustained period and concerning copper long-term so debt consistent
an company, portfolio are again operators within We've a great great assets. We now, diverse we're we And great with once our in And geographically great experienced capabilities, have financially leader long-life strong. industry got people, of a developers. assets. industry morale and our
future optimism but So, reinforced. is this nothing about our
you to hearing forward attention. So, have thank look you and I know questions them. we for your
