05 April 2022
Fitch Ratings has assigned a Long-Term Rating of 'BBB-' and a Stable outlook to Indonesia-based copper and gold producer PT Freeport Indonesia (PTFI). Fitch Ratings has also done with a 'BBB-' rating to PTFI's proposed senior US dollar unsecured notes.
"The ratings reflect PTFI's large scale of production and reserves, long mining life, solid cost position, and strong financial metrics. This is offset by its sole asset in Indonesia, which exposes PTFI to regulatory risk in the country," explained Fitch Ratings in an official statement, quoted Tuesday (5/4/2022).
Strong cash flows, supported by low costs, high commodity prices, and increased output from its underground production, will help PT Freeport Indonesia to maintain a solid financial profile as its smelter construction project progresses.
Meanwhile, free cash flow (FCF) will turn negative in the medium term due to increased dividends and capital expenditures since PT Freeport Indonesia will fund the smelter project with debt. "However, we expect Freeport Indonesia to continuously manage its dividend plan to avoid damaging its strong leverage profile," Fitch Ratings wrote.
Fitch stated that PTFI has the same credit power as its shareholder, Freeport-McMoRan Inc. (FCX, BBB-/Stable), which owns 48.76 percent of the shares. Fitch believes there are highly strategic and operational incentives for FCX to support PTFI.
Kami menghimbau para pencari kerja untuk berhati-hati dan mewaspadai beragam modus penipuan perekrutan yang mengatasnamakan PT Freeport Indonesia. Dalam setiap proses rekrutmen dan penerimaan karyawan, PT Freeport Indonesia maupun konsultan rekruitmennya tidak memungut biaya apapun.
Untuk melihat lowongan, silakan akses melalui link berikut: ptfi e-recruitment
Untuk melihat informasi magang, silakan akses melalui link berikut: Internship Program
