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Freeport McMoRan Announces Further Reduction and Suspension of Common Stock Dividend

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James R. Moffett, FCX’s Chairman of the Board - Supplied

James R. Moffett, FCX’s Chairman of the Board – Supplied

Jayapura, Jubi – Freeport-McMoRan Inc. (NYSE: FCX) today (9/12/2015) announced additional actions in response to market conditions, including further revisions to its oil and gas capital spending plans, additional curtailments in copper and molybdenum production and the suspension of its common stock dividend.

Oil & Gas Review. As previously reported on August 5, 2015, Freeport-McMoRan Oil & Gas (FM O&G) is deferring investments in several long-term projects in response to oil and gas market conditions. Following an ongoing review, capital expenditures for 2016 and 2017 have been reduced further from $2.0 billion per year in 2016 and 2017 to $1.8 billion in 2016 and $1.2 billion in 2017, including idle rig costs. The revised plans, together with initiatives to obtain third party financing or other strategic alternatives, will be pursued with the goal of achieving funding for oil and gas capital spending within its cash flows and resources.

The revised plans incorporate a reduction in rig utilization from three Deepwater Gulf of Mexico drillships to one drillship while increasing production from third quarter 2015 rates of 150 barrels of oil equivalents per day (MBOE/d) to an average of 159 MBOE/d in 2016 and 2017. FM O&G expects to bring eight wells on line in late 2015 and 2016 from its successful tie back drilling operations at the Holstein Deep, Horn Mountain and King Projects in the Deepwater Gulf of Mexico. These projects, combined with other initiatives, are expected to add low cost oil production, enabling cash production costs to decline from $19 per barrel of oil equivalents (BOE) in 2015 to less than $16 per BOE in 2016 and 2017. Under the revised plans, FM O&G’s cash flows would substantially fund its capital expenditures at $45 per barrel of Brent crude oil in 2017.

FM O&G is engaged in ongoing discussions with its rig vendors and other service providers to obtain reductions in costs and to evaluate opportunities to market idled equipment to third parties.

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As previously reported on October 6, 2015, the FCX Board is engaged in a strategic review of its oil and gas business to evaluate alternative courses of action designed to improve FCX’s financial position, enhance value to FCX shareholders and achieve self-funding of its oil and gas business from its cash flows and resources. FM O&G’s high quality asset base, its substantial underutilized Deepwater Gulf of Mexico infrastructure, its large inventory of low risk development opportunities and its talented and experienced personnel and management team provide alternatives to generate value.

Mining Review

Freeport-McMoRan Inc NYSE: FCX - Dec 9, 2015 6:55 PM EST

Freeport-McMoRan Inc
NYSE: FCX – Dec 9, 2015 6:55 PM EST

FCX continues to review its capital projects and costs to maximize cash flow in a weak commodity price environment and to preserve its resources for anticipated improved future market conditions. FCX previously announced a 25 percent reduction in its capital spending for its mining business for 2016 (from $2.7 billion to $2.0 billion, including $0.6 billion in sustaining capital) and announced curtailments at its North America and South America mines totaling 250 million pounds of copper and 20 million pounds of molybdenum per year. FCX is undertaking further actions involving plans for a full shut-down of its Sierrita mine in Arizona and adjustments to its operating plans from its primary molybdenum mines, which will increase its curtailments to approximately 350 million pounds of copper and 34 million pounds of molybdenum per annum. FCX is continuing to evaluate its mining operating plans in response to market conditions and will make further adjustments as required.

FCX is also evaluating other financing alternatives, the potential sale of minority interests in certain mining assets and other actions to provide additional proceeds for debt reduction. FCX has a broad set of natural resource assets that provide alternatives for future actions to enhance its financial flexibility.

Dividend on Common Stock. FCX also announced today that its Board has suspended its annual common stock dividend of $0.20 per share. This action will provide cash savings of approximately $240 million per annum and further enhance FCX’s liquidity during this period of weak market conditions. FCX’s Board will review its financial policy on an ongoing basis and authorize cash returns to shareholders as market conditions improve.

Assuming prices of $2.00 per pound for copper and $45 per barrel Brent crude oil for 2016, FCX estimates consolidated operating cash flow would exceed capital expenditures by more than $600 million.

James R. Moffett, FCX’s Chairman of the Board and Richard C. Adkerson, Vice Chairman, President and Chief Executive Officer said, “We are taking further actions to strengthen our financial position during a period of weak and uncertain market conditions. While copper prices have weakened in recent weeks and the near-term copper outlook is uncertain, we view the medium and longer term outlook positively, supported by copper’s important role in the global economy and limitations on global supplies. As we approach 2016, we are positioning the company for free cash flow generation in a weak commodity price environment and remain focused on actions to reduce debt. Our high quality portfolio of long-lived assets, flexible operating structure and experienced management team provide a solid base to address the current market conditions while maintaining an attractive portfolio of assets positioned for long-term success.”

Equity Transactions

Since commencing its $2 billion at-the-market equity programs in August 2015, FCX has sold a total of 154.6 million shares of common stock, generating gross proceeds of $1.6 billion through December 4, 2015. Approximately $0.4 billion remains available under the programs. As of December 4, 2015, FCX had 1.19 billion common shares outstanding.

Freeport's workers at mining site in Timika - energytoday.com

Freeport’s workers at mining site in Timika – energytoday.com

Amendment to Bank Credit Facility. Following recent declines in prices for its primary products, FCX has reached agreement with its bank group to amend the Leverage Ratio (Net Debt/EBITDA) under its $4 billion revolving credit facility and term loan from the previous limit of 4.75x to 5.5x at December 31, 2015, 5.9x for the first half of 2016, and stepping down to 5.0x by year-end 2016 and 4.25x in 2017. The Leverage Ratio is unchanged at 3.75x thereafter.

FCX is a premier U.S.-based natural resources company with an industry-leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile. FCX is the world’s largest publicly traded copper producer.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America; the Tenke Fungurume minerals district in the DRC; and significant U.S. oil and natural gas assets in the Deepwater GOM, onshore and offshore California and in the Haynesville natural gas shale, and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louisiana.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, which are all statements other than statements of historical facts, such as expectations relating to commodity prices, development and production activities, production volumes, ability to repay debt, statements regarding the review of strategic alternatives for FCX’s oil and gas business, including the previously announced potential public offering of a minority interest in FCX’s oil and gas business, a potential spinoff of FCX’s oil and gas business to its shareholders, potential joint venture arrangements, and potential further spending reductions, future dividend payments, debt reduction and share purchases and sales. The declaration of dividends is at the discretion of the Board and will depend on our financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause FCX’s actual results to differ materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, copper, gold, molybdenum, cobalt, crude oil and natural gas, mine sequencing, production rates, drilling results, potential effects of cost and capital expenditure reductions and production curtailments on financial results and cash flow, the outcome of FCX’s strategic review of its oil and gas business, potential additional oil and gas property impairment charges, potential inventory adjustments, potential impairment of long-lived mining assets, the outcome of ongoing discussions with the Indonesian government regarding PT Freeport Indonesia’s (PT-FI) Contract of Work, PT-FI’s ability to obtain renewal of its export license after January 28, 2016, the potential effects of violence in Indonesia, the resolution of administrative disputes in the Democratic Republic of Congo, industry risks, regulatory changes, political risks, weather- and climate-related risks, labor relations, environmental risks, litigation results and other factors described in more detail in Part I, Item 1A. “Risk Factors” of FCX’s annual report on Form 10-K for the year ended December 31, 2014, as updated by FCX’s subsequent filings with the Securities and Exchange Commission.

Investors are cautioned that many of the assumptions on which FCX’s forward-looking statements are based are likely to change after the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in FCX’s assumptions, changes in business plans, actual experience or other changes, and FCX undertakes no obligation to update any forward-looking statements. (Victor Mambor)

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A story of Ruth Dolly Pagawak, Papuan woman who recovered from Covid-19

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Ruth Dolly Pagawak. -Jubi/Hans

Manokwari, Jubi – Ruth Dolly Pagawak, twenty years old Papuan woman who declared negatives after two swab checks, could go home. She finally can meet her baby and the rest of her family on Saturday afternoon, 16 May 2020 after being quarantined at Papua Barat Provincial Hospital.

Along with Pagawak, other patients H. Abdullah Appe (62 years old) and La Marra (65 years old) were also declared has recovered from the Coronavirus. Papua Barat Governor Dominggus Mandacan officially take three of them out of the hospital.

While wearing a mask and holding her health certificate tightly, Pagawak told that her recovery is God’s blessing. “This is because of the grace of Lord Jesus that I was declared recovered of the Coronavirus,” said Pagawak holding a bucket of flowers by her doctors and nurses.

During her medical treatment at the hospital, Pagawak always listened to doctors and the medical team who treated her. She declared that listening to the government and medical staffs’ advice during the treatment is very important. By doing that, the body immune will stronger to combat the virus.

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“During my treatment, I routinely consumed vitamins and complied the doctors’ orders. I was also tried not being stressful because I believed that I would recover,” she said.

Since she was tested positive of Coronavirus in the mid of April, Pagawak has not experienced the most severe symptom. She claimed to only experience light symptoms such as cough and runny nose.

“I never experienced severe symptoms such as shortness of breath. I just had a cold and a mild cough.”

As the first Papuan woman who recovers from Coronavirus in Papua Barat, Pagawak advised people, in particular native Papuans, not to underestimate this virus. Still, they also do not need to overwhelm panic.

“The point is we must remain vigilant. Wear a mask, wash our hand routinely and get enough rest. We cannot avoid this virus because it is not visible. Therefore, we must follow all medical advice by the government, and never forget to pray and beg for mercy and recovery from God,” she said.

Pagawak told that she initially didn’t believe in her initial test confirming that she was Coronavirus positive because she was in the postpartum period. But with the support and permission of her husband, she finally agreed to take an initial medical treatment at Manokwari Hospital separately from her baby. She then continued to quarantine at Papua Barat Provincial Hospital since 1 May.

“I initially didn’t believe that I am Coronavirus positive. I just delivered my first child, who was six weeks at the time. So, when they took my baby and me from Warmare Subdistrict to Manokwari Hospital, we were treated separately,” she said.

This young mother also thanked the quarantine team of Papua Barat Provincial Hospital because of treating her and other patients sincerely and pouring them with encouragement and motivation.

“Personally, I thank the medical team, doctors and everybody who involved in Papua Barat Provincial Hospital. They are noble-hearted people because they treated us nicely. They are warm and always motivate us; therefore, we remain motivated to recover,” she said.

The information from the Covid-19 Task Force Papua Barat stated that Pagawak’s baby is currently undergoing treatment by a paediatrician at Manokwari Hospital. The baby, on the contrary, was declared negative since the initial examination and treated separately from the mother.
Meanwhile, Papua Barat Governor Dominggus Mandacan hopes that local community and neighbours of the recovered patients to accept them when they return to their family and neighbourhood.

“I hope people can accept them when they return to their family. Their recovery was also the hard work of the Papua Barat Provincial medical staff as well as our prayers,” said Mandacan at the Papua Barat Hospital on Saturday (16/5/2020). (*)

 

 

Reporter: Hans Kapisa

Editor: Pipit Maizier

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Joyce Lin, a pilot of MAF crashed plane was also an IT specialist graduate from MIT

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Joyce Lin. – maf.org

Jayapura, Jubi – An aircraft operated by Mission Aviation Fellowship (MAF) was reportedly being crashed and drown in Lake Sentani on Tuesday (12/5/2020). Locals reported the incident after hearing an explosion. After two minutes take-off from Sentani Airport to Mamit, Tolikara Regency, the aircraft lost contact with the air traffic control tower.

Tolikara Regent Usman Wanimbo told Jubi that the crashed aircraft was possibly carrying books and stationeries for Yayasan Papua Harapan based in Mamit. President GIDI, the Rev. Dorman Wandikbo, also said the same thing.

“The aircraft was carrying school books and stationeries to Mamit,” said the Rev. Wandikbo by phone to Jubi. The pilot of the crashed plane later identified as Joyce Lin, a US citizen. Her body found at a depth of 13 meters in Lake Sentani.

Joyce, according to the Rev. Wandikbo, had just flown in Papua, although she had many experiences flying the small aircraft.

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The website maf.org acknowledges Joyce Lin as a pilot and IT specialist. As a pilot, she flew the aircraft to help people living in remote and isolated areas by providing medical evacuation service for saving a life. She also transported logistic supplies for community development, missionaries, teachers, and humanitarian workers to these remote locations. Meanwhile, as an IT specialist, Joyce work to set up and maintain the computer networks for missionaries and humanitarian workers to contact their communities and to access information on the Internet.

Joyce Lin grew up in Colorado and Maryland. She involved in a non-denomination local evangelist church service from a young age. At the age of eight, she showed her interest in everything linked with computers, mainly computer programming. Her interest in aviation also developed at an early age when her neighbouring pilot took her to the local air show.

She later took the computer science in the Massachusetts Institute of Technology (MIT) and received a Bachelor of Science and Masters of Engineering from the MIT. Because she had an interest in aviation, she also obtained a certificate of the private pilot while still in college.

After graduation, Joyce Lin worked as a computer specialist at a commercial company for ten years until obtaining a position of the Director of Engineering, while growing her enthusiasm towards seminary at the same time. She then registered as a student at the Gordon-Conwell Theological Seminary and graduated with a Master of Divinity. While studying theology there, she learned about the missionary flying service. It surprised her when knowing that there is a job that can combine her interest in computers, aviation and Christianity service at once. From there, she found a strong call to work as a missionary pilot. She had instrument certification and commercial flying certificate and experience working as a flight instructor to meet the requirement as a pilot for MAF. (*)

 

Reporter: Victor Mambor

Editor: Pipit Maizier

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The body of crashed MAF aircraft found 13 meters below water

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Lake Sentani. -Ist

Jayapura, Jubi – Roberth Tunyanan from KNKT (the National Transportation Safety Committee) Papua said the body of a pilot killed in the crashed aircraft was found in Lake Sentani on Tuesday morning.

“I received the report stating the Rescue Team had found the body of MAF pilot flying the aircraft PK-MEC in Lake Sentani,” Tunyanan as quoted by Antara News Agency on Tuesday morning (12/5/2020).

The report also revealed that her body found at a depth of 13 meters trapped in the cockpit.

The website maf.org acknowledges Joyce Lin as a pilot and IT specialist. As a pilot, she flew the aircraft to help people living in remote and isolated areas by providing medical evacuation service for saving a life. She also transported logistic supplies for community development, missionaries, teachers, and humanitarian workers to these remote locations. Meanwhile, as an IT specialist, Joyce work to set up and maintain the computer networks for missionaries and humanitarian workers to contact their communities and to access information on the Internet.

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The aircraft controlled by Joyce Lin reportedly crashed around Lake Sentani that located between Jayapura Municipality and Jayapura Regency in Papua Province. The aeroplane took off at 6.27 a.m. local time and lost contact two minutes after take-off. (*)

 

Reporter: Victor Mambor

Editor: Pipit Maizier

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