Freeport-McMoRan Inc. (NYSE:FCX)

The analysis of the annual property, plant, and equipment financial data reveals several notable trends and patterns over the reported five-year period.

Proven and probable mineral reserves

This item remained relatively stable, with marginal increases from 7142 million US dollars in 2020 to 7159 million US dollars in 2024, indicating a consistent reserve base over the period.

VBPP (Value Before Production Process)

A gradual decline is observed, decreasing from 376 million US dollars in 2020 to 358 million US dollars by 2024, suggesting a slight reduction in pre-production asset value.

Mine development and other

There is a steady increase in this category, rising from 10,686 million US dollars in 2020 to 12,828 million US dollars in 2024. This trend points to ongoing investment and expansion activities in mine development.

Buildings and infrastructure

This asset class shows consistent growth year over year, from 9,214 million US dollars at the end of 2020 to 10,667 million US dollars at the end of 2024, reflecting continuous capital expenditure on facilities and infrastructure.

Machinery and equipment

Values have increased steadily from 14,235 million US dollars in 2020 to 16,337 million US dollars in 2024, indicating ongoing upgrades or additions to operational machinery and equipment.

Mobile equipment

This category also exhibits growth, rising from 4,495 million US dollars in 2020 to 5,597 million US dollars in 2024, suggesting active investment in mobile assets.

Construction in progress

Significant growth is evident here, with values more than doubling, starting from 1,454 million US dollars in 2020 and reaching 9,364 million US dollars in 2024. This sharp increase signals an escalation in ongoing projects and capital works yet to be completed or capitalized.

Oil and gas properties

This asset category shows marginal increases, from 27,281 million US dollars in 2020 to 27,485 million US dollars in 2024, indicating relatively stable asset values in this segment.

Property, plant, equipment and mine development costs, gross

The gross cost basis of these assets increased consistently, from 74,883 million US dollars in 2020 to 89,795 million US dollars in 2024, reflecting overall capital additions across asset categories.

Accumulated depreciation, depletion, and amortization

This account presents increasing negative values, moving from -45,065 million US dollars in 2020 to -51,281 million US dollars in 2024. This pattern is consistent with asset aging and ongoing expense recognition over time.

Property, plant, equipment and mine development costs, net

The net asset value (gross cost less accumulated depreciation, depletion, and amortization) shows steady growth, increasing from 29,818 million US dollars in 2020 to 38,514 million US dollars in 2024. This suggests ongoing capital investments are outpacing the depreciation and depletion charges, resulting in a net asset base expansion.

Overall, the data indicates a strategy of continuous investment in mine development, infrastructure, and equipment, supported by rising construction in progress balances. The relatively stable mineral reserves and oil and gas properties imply a maintained resource base, while the increasing net property, plant, and equipment balance confirms growth in long-term operational assets despite systematic depreciation and depletion.

Analysis of the annual property, plant, and equipment data reveals a consistent downward trend in the average age ratio over the five-year period examined.

Average Age Ratio (%)

The average age ratio started at 60.18% as of December 31, 2020.

There was a slight increase in 2021, reaching 60.6%, indicating a minor aging of the assets on average.

From 2022 through 2024, there was a clear and steady decline, with the ratio reducing to 59.67% in 2022, then 58.26% in 2023, followed by a further drop to 57.11% in 2024.

This decline in the average age ratio over recent years suggests a trend toward either the acquisition of newer assets or the retirement of older assets, thereby renewing the company's property, plant, and equipment base. The minor increase in 2021 appears to be an anomaly within an otherwise consistent pattern of fleet renewal or modernization.

Accumulated Depreciation, Depletion, and Amortization

Over the observed periods, the accumulated depreciation, depletion, and amortization consistently increased each year. It rose from 45,065 million USD at the end of 2020 to 51,281 million USD by the end of 2024. This upward trend indicates ongoing consumption and wearing out of assets, reflecting continuous usage or aging of property, plant, and equipment assets.

Property, Plant, Equipment, and Mine Development Costs, Gross

The gross value of property, plant, equipment, and mine development costs demonstrated a steady increase throughout the periods. Starting at 74,883 million USD in 2020, it grew to 89,795 million USD by 2024. This growth suggests sustained investments and capital expenditures aimed at expanding or maintaining operational capacity and asset base.

Average Age Ratio

The average age ratio exhibited a declining trend, moving from 60.18% at the end of 2020 down to 57.11% at the end of 2024. This decrease points toward a relatively younger asset base over time, which may result from recent acquisitions, upgrades, or replacements reducing the weighted average age of the assets.

Overall Insights

The simultaneous increase in gross property, plant, and equipment costs alongside the rise in accumulated depreciation implies ongoing capital investment coupled with asset consumption. The decreasing average age ratio supports the interpretation of an asset base that is becoming newer on average, reflecting proactive asset management and potential modernization efforts. This combination suggests that the entity is both investing to grow or maintain capacity and managing asset lifecycle effectively.