Freeport-McMoRan Inc. reinstated a cash dividend on its common stock, on the back of a positive outlook for strong cash flow generation.
The board proposed a quarterly dividend of 5 U.S. cents per share, with the initial quarterly dividend expected to be paid May 1.
"We expect to continue to strengthen our balance sheet, maintain a disciplined approach to investing in attractive growth projects as economic conditions warrant and provide cash returns to shareholders," President and CEO Richard Adkerson said in a Feb. 6 release.
In October 2017, Adkerson said the company's board of directors "will be very positive about paying a dividend when the stars align."
"We remain focused on building values for shareholders and a continuation of positive market conditions will enable the consideration of additional cash returns to shareholders, consistent with our long-standing tradition," the executive added.
Freeport booked operating cash flows of US$1.66 billion for the fourth quarter of 2017 compared to US$1.14 billion reported a year earlier, while full-year cash flows rose to US$4.68 billion from US$3.73 billion.
Based on current sales volumes and prices, the company predicted that operating cash flows in 2018 would likely cross US$5.8 billion.
