Investors welcome Freeport-McMoran's debt reduction plans

Shares in Freeport-McMoran rallied on Tuesday as investors welcomed the company’s decision to accelerate its debt reduction plans to combat the further weakening in commodity markets.

The US-based copper and gold producer said it was taking immediate actions to accelerate its debt reduction plans and enhance shareholder value through asset sales and joint venture transactions.

Freeport said several initiatives were being advanced, including an evaluation of alternatives for the oil and gas business and a number of transactions involving some of its mining assets. The company expects to achieve progress on these initiatives in the first half of the year.

President and chief executive officer 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-McMoran posted a fourth quarter net loss of $4.1bn or $ 3.47 a share compared with a $2.9bn loss the previous year, with revenue down to $3.8bn from $5.2bn.

For the full year 2015, the company’s loss came to $12.2bn, or $11.31 a share, compared with a loss of $1.3bn or $1.26 in 2014.

At 1534 GMT, shares were up 3.6% to $4.08.