Freeport McMoRan Inc. is slashing costs and spending as well as instituting furloughs and executive salary cuts as it adjusts its operating plans amid the worldwide COVID-19 pandemic as its first-quarter revenue fell $1 billion from the year-earlier period.
The Phoenix-based mining giant and world’s largest copper producer announced the moves Friday in a regulatory filing of its Q1 financial results, which showed revenue of $2.8 billion, down from $3.8 billion from the same quarter in 2019.
The company reported a $491 million net loss, or 34 cents a share, compared with a profit of $321 million, or 2 cents a share, in the first quarter of 2019.
In the face of those hits, Freeport McMoRan said it would slash operating costs by about 18%, or $1.3 billion; capital expenditures by about 30%, or $800 million; and exploration and administrative costs by about 20%, or $100 million.
