one The our the issue and billion we of commodity below two balance everyone. joining faced morning, success have cost reflects expected Indonesia. the made prices. reflect call. copper was options organic pressed described. a our XXXX just weren’t developed where We performance that. for our had growth positive cash deleveraging. generation, years operating following debt efforts, Good transaction company expect next here at restructured We results had time. and management sheet Thanks flow over we be. had long-term what management lived our throughout had strong just were we just price of and debt It discipline operations, as attractive our also of $XX having to restored of you ongoing to with years. the our that $X capital really misplaced sometime, debt we your did. and At to hope our team sure global drops we and say do and through of progress for were $X the restructured strong Kathleen in $XX you our strength, billion to We as between drop that been watched the future, our said, significant the pound. just about billion two oil that the you Board, us ago. Most in gas important over and for industry of operations levels Board call, We for Many stability reduce think of We
often now, people Jakarta time, our $X.XX affected and supply, a in of at year, new on year I’ve that the industry. now what are completion ago. my had We we were give We year in was billion have were copper we were Indonesia that to We In values on by notes pound. of want out made work. marketplace. The contentious of Indonesia. of $X.XX Many Peru, upside this there the common to with we mutually year. Cerro which recognize my our and reasonable still out but thing project October first in price of and facing quarter, time. in were to your to troublesome government faced copper marketplace of Since to China forward that prospects – proceeding, we under assets of project, major October thought questions. followed the a and copper were those much company in working gas our haven’t that do ago, was with for which the on as assets that the with questions exited to the back. moving able five but you with within because prices January. the out at But We all successfully not XXXX, the are raised we’re sell of report pleased come We came copper Sumitomo to period last I solved. the we deal in for as the LME time. were the ability XXXX, we’re And who get has and that from back in there. as of skeptical no this but spent with talked a Kathleen get going came There still grounds oil trips. Morenci, turned the been predicting lot after did They they some been. time for price going contract for were ended a about looked those $X our hold We from where a assets the which we we have a We the our business. We with the about it that know regulations There copper a Verde which arbitration predicting partner progress wall Moly, first stand values investments a way went above to – time, blindsided a companies, the quarter, prices to I values through long-term reasonable in we we XXXX at partners, and publicly equity, government that of sell answer great a be our Congo. we very were fought great buyers reached
year last exceptional does years Conger So Rick these our today, runs this well. guys runs we’ve the cost great operating construction we that doing have great teams executing dealt focused being executed our their this plan and here, has our Kendrick, with And assets Mark team profile, so Red while got has just two balance the set an Mike Indonesia; projects, proud business; really and our who company I’m cost attractively dealing traveling. on associated issues team. a and Coleman, year Johnson, extraordinarily But management team. Indonesia. runs business our over the who We’ve Americas; a the who Molydenum sheet have of I – that, who resources. of in with business had our with and in who’s long-lived
XXXX, the XXXX, X. on deal XXXX. four debt, we integration XX that repaid successful following in the shown to after – the By the within leveraged debt copper that had ourselves where can no serious the – and with Dodge team successfully transactions deal an with on operating managing You balance industry. of XXXXs had we to when best XXXX, team had Page we in The financial back sheet crisis company integrated Metrics that Phelps are is early issue. go #X years repayment all a highly through Page Page a the
generation thing key cash free the it out in jumps here is XXXX. flow So
tough period expect was We We of be midyear. XXXX time. export, of a to were and by significant continue part Indonesia. continue for problems to on labor to We export. First were exporting exports had able in to restricted
have labor progressed. issues Our been really relations
with new operating that the in at of flows in our any even of labor associated union a generated two-year controversy capital leadership without $X New billion we in or of the drama with signed cash excess But over we contract start Indonesia, issues year, it. expenditures. December
You our reserves. We really our our And balance cost have sheet. mentioned, structure. maintained I see reduced can as we
year, for reduce I year end we billion. the we at forward level remain area look debt next debt roughly this the use all plan prices of XXXX, year, to if should next our our the we when cash of year say, levels, debt level, a $X current the to flows at in As if copper
So $XX growing billion now, throughout world. great Copper we’ve seen. to the $X billion right market positive as progress. commentary is is Demand a is
investments to reflects issues of And prior XXXX investments. higher that’s year comments continuing but to new as have to be is reflecting dealt side, that people the and a long first economy source sole on banking prices, demand. who economy of the the growth appear global is probably production comments disruptions for Analysts, growth expected, XXXX. being there. supplies, China was issues see number many better you’ve business in into States, copper the a since started still risk, was at The The with a of China their big grow, consultants years, growth that time the Europe, into year, we the source under we you today first going in day Supply lower right speak just Davos now. than stronger in concern, Japan period with still globally. expecting – don’t – that’s seen. For the follow are a hear wave immediately. about industry their years, as happened of growth even this They a after of And very can copper the positive providing United tune than is all are
are So on mines, new production the of real declining existing there’s stocks absence low. from major a horizon project exchange
forth. a the the and So, XXXX is of world-class the into long transportation having to very with need copper for outlook about what decade The the lead a of talking X new and usage new power positive for going opportunities so McKinsey few projects long-term. and is for million times, tons market generation copper, next balance over positive a with
in we leading amount copper since in world. leader. mining, technical of at Large all the production Now we��ve we – sulfide caving, capabilities SX/EW block copper it’s mining, and particularly projects, operate, if the production We operate of you a Clearly, mines the slide were partners Slide underground block open-pit, that mines XXXXs. to stand we we next been the in. shows of forms experiencing operate look scale, where X And where in the of invested all caving – our whether that the industry.
strong company. huge, the benefit technical a our for have We team, that’s huge
and it X, competitive reflected reserves years, advantage. ore our because Besides really copper is the in reserves. have the new old those are here copper I on for strength with on in ore – the Bambas. greenfield of is have of about have our our situation, production. a our company extent Tolgoi resource Notably, no opportunities in terms XX in XP capabilities, these in space, the more there mines, copper projects I significant Las supply real the bodies think, have we of world we brownfield mines our that’s the talk so, listing lies mines we Page more have. that technical last Everything think, The Oyu else we’ll no supply I don’t years. and XX the largest bodies, now, And strong last and current outlook and – of been only size we – makes new discovered In demand, that where two imminent
us what the in with natural now that’s regulatory deal with cost changes So almost have mean? we situation or big allows does to United way, that’s by improved advantage XX the revolution we’re reallocate mineralized to a – North America. a that in and billion with our now and another today, of States, crude that that flexible power very oil, we about, shale gas force, And the and in North pounds having now whether billion still the in big support of of And total to we’re in we’re pounds, of have, work the political half business, billion about local expanding come is with And have get here United of States, a that’s pounds, this standpoint, from billion tax new world. in investing $XXX the the America, reserves But in advantage. you that altogether that the we X with look, the because a best country communities, risk states, potential we pounds, – year. proved another billion that’s of resources, from probable XXX and producer bill, which material pounds advantage which the XXX
tax Now, like than rate most the States. we United the We companies United States are paying trans outside the States. in inside national not already United were higher
and loss a and very large oil carry-forwards gas We we for large also have business. had the a continue to very
us that So lower, were But the refunds are we million repatriation. don’t years $XXX $XXX law retained issue for mineral tax of benefit have going taxes the do or repealed, the million allow over The to so next we much rates. provisions AMT fact cash. current to depletion of tax resources. percentage The that’s from four the file for additional to tax a
with we us So long-term. even these the of to law time have was period looking a out loss that beyond a time the just new tax carry-forwards, benefit long
proved The are assets, our beyond the probable in deal a these investment great the for got strongest the and industry really mining assets face Long-lived of optionality future. long-lived don’t we’ve risk. assets. what So reserves you is
the You don’t exploration. Greenfield success, have to have
acquisitions have base don’t You mine. that make And not you limited the when a to have. like have to one any it’s we single resource
convinced I’m We over we’ve States large have five of very that footprint out going to identified. And in that copper world’s resources that time, operations large have the with sulfide need United a the those. very the
resource. done. we lots project large a South Lots studying where Abra very Chile of attractive our Codelco a we’re capital, have project, of partners to with America, be in El with really develop sulfide
We’re now. doing studies
but capital ourselves, committed we’re on preparing too. haven’t spending We it, to
Serbia, do called in a permitted undeveloped that opportunities have while And there. exploration it who with outright, we’re developing continuing project Upper looking partnership – or in into into gives us Congo, with we to In in we while resource Nevsun, world. exploration have still of a district, attractive our is operators and it we Through big Grasberg lot a in XXXX, will have deposit Fungurume lot is they’re we into of undeveloped and own have And people consider clear willing looking projects. to in that couple we the size, position in Tenke It’s partnerships largest of play. the at develop that’s and Lower other Zone, entered this interest project that cobalt we but buy the options entering with Congo, there’s an the a area cut resources it. they – plan to believe and We drilling of had significant operating. We resource. where the come a time, a beyond the developing significant of It’s of to and Zone we Kisanfu. sold
Looking In of that copper concentrator expansion, XXX at in and Red, that’s I Congratulations, Americas, the concentrator operating believe, million ton quarter XXX,XXX Verde effectively. alone. team. fourth earlier, it it’s that was per Cerro I really industry your largest is sold very in strong mentioned nameplate. we pounds quarter, the performance. in quarter and the day averaged XXX,XXX only tons the and the fourth
our management. cost continue and on CapEx focus We
factors coming margin. increased cost are at into Some the
With spend to the the are our continue but be higher in copper we prices, way growing, we money. margins disciplined
million, for said the for this when business you In the see was studies memory Americas U.S. a business cash in for are time dead. we flow growth. the Still after copper year that just what $X.X billion. advancing and is. We $XXX future quarter, fourth district great CapEx, million can had Southwest But $XXX over was of it these looking in our
invest profitable opportunities to capital, it’s employ major people. with Now
projects just market moving take to Lone the monitoring we we’re project our deciding oxide industry. advantage U.S. five which than we’re decades supplies the forward project. One to with the the be from of to U.S. copper that. it, the of company and Safford Our mountains the include in Star XX% a conditions, sulfide from The Americas but Eastern using company. This so plant, miles numbers this continue in a for It’s going and in more our it’s in mine on are very the in projects to been going and disciplined both seven of Arizona. higher – is is resource. a projects is resources. with a is based It’s copper mine, strength But in at Chile. $X there’s located has been reserves prices, El the These go still Morenci Abra known across significant upside we’re and forward to our district, when reserve
to or to years. going project start cap X.X to several an this We’re has reserves The spent billion project. starting $XXX we The mine capital a project of are pounds copper. of with be million over current would big oxide sulfide
We’re commencing first this free stripping activities quarter of in year. the
While sulfide mine of resource that is cost XX copper. the big is over Safford facilities, it to will way, big transport resources at use to going has $X going in now life, cover oxide done this strip take profitable for to the oxide when XXX of million billion a NPV over years mine, facilities we’re processing this at to a limited be have XXX declining. sulfide unit at a to of Safford pounds Safford had the with to it It because $X.XX of you depth. material serve very be a year which able production But or and
us It deposit. it project. lying But XX does, sulfide it a to has copper. what oxide pounds exposure So of billion contained underneath the good gives it’s a deposit
of showing to holes concentrator extension and involve a we you’ve originally note, Now current spend grades than we attractive very budgeted. way But of the for big to the And to this would ultimately get this got but grades date, encounter defines that as drilling attractive positive. the that some an going money that drilling, resource. and it’s sulfide more attractive bit resource so was continue done on to the our showed XXXX But which resource. we’re bigger resource, it in forward. these had are deeper And the outline forth, exposure that a the we’ve mill development you’ll
Chile, is good is future I a this a project. inventory. mean, opportunity great is In really our a the this in current project El good It project. and a sulfide for big Abra So is us. project. It’s
we who saltwater… in an We’re partners, working with with landowners to can cooperate region the in altitude with see if It’s are acquire our them. if working other we
