Freeport-McMoRan Inc. (NYSE: FCX) reported fourth-quarter and full-year 2015 results before markets opened Tuesday. The copper and gold miner posted an adjusted net loss per share of $0.02 on revenues of $3.8 billion for the quarter. In the same period a year ago, Freeport-McMoRan reported adjusted earnings per share of $0.26 on revenues of $5.7 billion. Fourth-quarter results also compare to the consensus estimates for a net loss of $0.17 on revenues of $3.84 billion.

For the full year, Freeport reported an adjusted net loss per share of $0.08 on revenues of $5.24 billion, compared with earnings per share of $1.97 on revenues of $21.44 billion last year. Consensus estimates called for a net loss of $0.18 on revenues of $15.96 billion.

On a GAAP basis, Freeport posted a quarterly net loss of $4.08 billion, or $3.47 per share, and a full-year net loss of $11.31 per share.

The company also offered revised plans to bring the balance sheet back to a more sustainable level. Freeport said its strategy will focus on its leading position in the copper industry. The company plans to continue to manage its production activities, spending on capital projects and operations, and the administration of its business to enhance cash flows, and it intends to complete significant asset sale transactions to reduce debt. On December 31, consolidated debt totaled $20.4 billion and consolidated cash totaled $224 million. At the same time, Freeport had no amounts drawn under its $4 billion credit facility.

CEO Richard C. Adkerson said:

As we enter 2016, our clear and immediate objective is to restore FCX’s balance sheet and position the Company appropriately to enhance shareholder value in the current market environment. We are responding swiftly and decisively to achieve this objective. Our high-quality asset base provides opportunities for significant debt reduction while retaining a substantial business with attractive low-cost, long-lived reserves and resources that will enable our shareholders to benefit from improved conditions in the future.

Freeport noted that prices deteriorated in the fourth quarter and have continued to do so in the first few weeks of 2016. Current copper spot prices of $2.00 per pound are 15% below prices at September prices, and the current Brent crude spot price of $30.50 per barrel is 37% below prices at the end of last September.

Net cash costs per pound of copper came in at $1.53 a pound in 2015, and Freeport projects a 2016 average cash cost of $1.10. The company also will cut capital spending from $5.6 billion in 2015 to $4.0 billion in 2016.

Shares were up about 8% at $4.25 in premarket trading Tuesday morning, in a 52-week range of $3.52 to $23.97. Prior to this release, Thomson/Reuters had a consensus price target of $8.18 on the company’s shares.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.