SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 9, 1998
FREEPORT-McMoRan COPPER & GOLD INC.
Delaware 1-9916 74-2480931
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
The following news release was issued by Freeport-McMoRan Copper
& Gold Inc. on December 9, 1998:
NEW ORLEANS, LA., December 9, 1998 -- Freeport-McMoRan
Copper & Gold Inc. (FCX) announced today that its Board of
Directors has reviewed the company's operating plans for 1999
pursuant to FCX's previously announced "Hunker Down & Go" program
now that the fourth concentrator expansion has been completed.
These operating enhancements are expected to generate significant
cost savings in 1999 resulting from lower operating costs,
capital expenditures, exploration expenditures and general and
administrative expenses. In response to low copper and gold
prices, the Board also authorized elimination of the regular
quarterly cash dividend on its Class A (NYSE: FCX.A) and Class B
(NYSE:FCX) common stocks effective immediately resulting in
additional cash savings. These actions will enable FCX to reduce
its 1998 year-end debt by an estimated $250 million during 1999
if commodity prices continue at current levels.
James R. Moffett, Chairman and Chief Executive Officer of
FCX, said, "The elimination of the common stock dividend and the
operating enhancements we are undertaking will maintain FCX's
financial flexibility in this low commodity price environment.
These actions will enable FCX to continue to invest in its
operations and its growth opportunities while continuing to
pursue its exploration program with a focus on prospects that
could lead to the discovery of significant ore reserves. The FCX
Board will monitor future copper and gold prices and reconsider
the reinstatement of dividends on FCX's common stocks as
conditions warrant."
Mr. Moffett continued, "Since discovery of the Grasberg ore
deposit in 1988, FCX has expanded its operations to become one of
the world's largest and lowest cost copper and gold producers.
FCX expects sales volumes approximating 1.4 billion pounds of
copper and 2.1 million ounces of gold in 1998 and 1999 with cash
production costs in both years of less than 15 cents per pound of
copper, after gold credits at the current gold price. This high
volume-low cost position provides FCX great operating and
financial flexibility even with low commodity prices and allows
it to capitalize on future opportunities."
FCX is engaged in mineral exploration and development,
mining and milling of copper, gold, and silver in Irian Jaya,
Indonesia, and the smelting and refining of copper concentrates
in Indonesia and Spain.
Cautionary Statement. This press release contains forward-
looking statements regarding debt forecasts, sales volumes and
cash production costs. Important factors that might cause future
results to differ from these projections include commodity
prices, industry risks and other factors described in FCX's 1997
form 10-K filed with the Securities and Exchange Commission.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
FREEPORT-McMoRan COPPER & GOLD INC.
By: \s\ C. Donald Whitmire
------------------------------
C. Donald Whitmire
Controller - Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: December 14, 1998
