費利浦·麥克莫蘭銅金 (FCX) 2017 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Freeport-McMoRan Fourth Quarter Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Ms. Kathleen Quirk, Executive Vice President and Chief Financial Officer. Please go ahead ma'am.

女士們、先生們，感謝你們的支持。歡迎參加自由港麥克莫蘭公司第四季財報電話會議。（操作員指示）現在，我想將會議交給執行副總裁兼財務長 Kathleen Quirk 女士。請繼續，女士。

Thank you and good morning. And welcome to the Freeport-McMoRan Fourth Quarter 2017 Earnings Conference Call. Our results were released earlier this morning, and a copy of the press release and slides for today's call are available on our website.

謝謝你，早安。歡迎參加自由港麥克莫蘭公司 2017 年第四季財報電話會議。我們的結果已於今天早上公佈，今天電話會議的新聞稿和幻燈片副本可在我們的網站上查閱。

Our conference call today is being broadcast live on the internet. Anyone may listen to the conference call by accessing our website home page at fcx.com and clicking on the webcast link for the conference call. In addition to analysts and investors, the financial press has been invited to listen to today's call, and a replay of the webcast will be available on our website later today.

我們今天的電話會議正在網路上直播。任何人都可以透過造訪我們的網站主頁 fcx.com 並點擊電話會議的網路直播連結來收聽電話會議。除了分析師和投資者之外，我們還邀請了財經媒體來收聽今天的電話會議，網路直播的重播將於今天晚些時候在我們的網站上提供。

Before we begin our comments, we'd like to remind everyone that today's press release and certain of our comments on the call include forward-looking statements, and actual results may differ materially. We'd like to refer everyone to the cautionary language included in our press release and presentation materials and to the risk factors described in our Form 10-K and subsequent SEC filings.

在我們開始評論之前，我們想提醒大家，今天的新聞稿和我們在電話會議上的某些評論包括前瞻性陳述，實際結果可能存在重大差異。我們想請大家參閱我們新聞稿和簡報資料中的警示語言以及我們的 10-K 表格和隨後的 SEC 文件中所述的風險因素。

On the call today are Richard Adkerson, our Chief Executive Officer. We also have Red Conger here; Mark Johnson; and Mike Kendrick. I'll start by briefly summarizing the financial results and then turn the call over to Richard who will be reviewing our performance and the slide presentation that's included on our website. After the prepared remarks, we'll open up the call for questions.

今天參加電話會議的是我們的執行長理查德·阿德克森 (Richard Adkerson)。我們這裡還有紅海鰻；馬克·約翰遜和麥克·肯德里克。我將首先簡要總結財務結果，然後將電話轉給理查德，他將回顧我們的業績和我們網站上的幻燈片演示。準備好的發言結束後，我們將開始提問。

Today, FCX reported net income attributable to common stock for the fourth quarter of 2017 of $1 billion with $0.71 per share. The results include net gains of $291 million or $0.20 per share, primarily related to tax benefits associated with U.S. tax reform totaling $393 million, partly offset by charges for adjustments to environmental obligations. The benefit from tax reform principally relates to the appeal of the AMT and a refund of our AMT credit carryforward. After adjusting for these net gains, the fourth quarter 2017 adjusted net income attributable to common stock totaled $750 million or $0.51 per share. For the year, our net income attributable to common stock totaled $1.8 billion, or $1.25 per share compared to a net loss attributable to common stock of $4.2 billion or $3.16 per share for the year 2016.

今天，FCX 公佈 2017 年第四季歸屬於普通股的淨利潤為 10 億美元，每股收益 0.71 美元。結果包括淨收益 2.91 億美元或每股 0.20 美元，主要與美國稅改相關的稅收優惠有關，總額為 3.93 億美元，部分被環境義務調整費用所抵銷。稅改帶來的好處主要與 AMT 的吸引力以及 AMT 抵免結轉的退還有關。調整這些淨收益後，2017 年第四季調整後歸屬於普通股的淨收入總計 7.5 億美元，即每股 0.51 美元。全年，我們歸屬於普通股的淨利潤總計 18 億美元，即每股 1.25 美元，而 2016 年歸屬於普通股的淨虧損為 42 億美元，即每股 3.16 美元。

For the fourth quarter of 2017, our adjusted earnings before interest, taxes and depreciation and amortization, or EBITDA, totaled $2.1 billion and $6 billion for the full year. A reconciliation of our EBITDA calculation is available on our slide materials on Page 37.

2017 年第四季度，我們的調整後息稅折舊攤提前利潤（EBITDA）總計 21 億美元，全年為 60 億美元。我們的 EBITDA 計算的對帳表可參考第 37 頁的投影片資料。

For the fourth quarter, FCX sold 1 billion pounds of copper, 593,000 ounces of gold, and 24 million pounds of molybdenum. And for the full year, we sold 3.7 billion pounds of copper, 1.6 million ounces of gold and 95 million pounds of molybdenum.

第四季度，FCX 銷售了 10 億磅銅、593,000 盎司黃金和 2,400 萬磅鉬。全年我們銷售了 37 億磅銅、160 萬盎司黃金和 9,500 萬磅鉬。

Our fourth quarter average realized copper price of $3.21 per pound was 29% above the year-ago quarter average price of $2.48 per pound. Our average unit net cash cost for copper was $1.04 per pound for the fourth quarter of 2017, and averaged $1.20 per pound for the full year. And that compared to $1.26 per pound for the full year of 2016.

我們第四季的平均銅實現價格為每磅 3.21 美元，比去年同期的平均價格每磅 2.48 美元高出 29%。2017 年第四季度，銅的平均單位淨現金成本為每磅 1.04 美元，全年平均為每磅 1.20 美元。相比之下，2016 年全年價格為每磅 1.26 美元。

We generated strong operating cash flows in the fourth quarter totaling $1.7 billion, which exceeded our capital expenditures of $390 million. For the full year, our operating cash flow totaled $4.7 billion and capital expenditures were $1.4 billion.

我們第四季產生了強勁的營運現金流，總計 17 億美元，超過了 3.9 億美元的資本支出。全年我們的營運現金流總計47億美元，資本支出為14億美元。

We used our strong cash flows to improve our balance sheet. During the fourth quarter, we repaid $1.7 billion in debt and that included the early redemption of $617 million of senior notes due 2020 and open-market repurchases of $74 million of notes due in 2018.

我們利用強勁的現金流來改善我們的資產負債表。在第四季度，我們償還了 17 億美元的債務，其中包括提前贖回 2020 年到期的 6.17 億美元優先票據，以及在公開市場回購 2018 年到期的 7,400 萬美元票據。

At the end of 2017, our consolidated cash was $4.4 billion and consolidated debt totaled $13.1 billion. Our debt net of cash of $8.7 billion at the end of 2017 was $3.1 billion less than at the start of the year, and $11.4 billion less than the level 2 years ago. We ended the year with no borrowings under our bank credit facility and approximately $3.5 billion available.

截至 2017 年底，我們的合併現金為 44 億美元，合併債務總額為 131 億美元。截至 2017 年底，我們的債務淨現金為 87 億美元，比年初減少了 31 億美元，比兩年前的水準減少了 114 億美元。截至年底，我們的銀行信貸額度下沒有借款，可用資金約為 35 億美元。

I would now like to turn the call over to Richard who will be providing additional details on our results and our outlook.

現在，我想將電話轉給理查德，他將提供有關我們的結果和展望的更多詳細資訊。

Good morning, everyone, and thanks for joining our call. 2017 results reflect really strong operating performance throughout our global operations, as Kathleen just described. It also reflects the success of our ongoing cost management and capital discipline efforts, strong cash flow generation, we restored our balance sheet strength, developed attractive organic growth options for the future and we made important and positive progress for the long-term stability of our operations in Indonesia.

大家早安，感謝大家參加我們的電話會議。正如凱瑟琳剛才所描述的，2017 年的業績反映了我們全球業務的強勁營運表現。這也反映了我們持續的成本管理和資本紀律努力的成功、強勁的現金流創造、我們恢復了資產負債表實力、為未來開發了有吸引力的有機增長選擇，並且在印度尼西亞業務的長期穩定方面取得了重要而積極的進展。

Most of you have been here and watched our company for some time, just think about where we were 2 years ago. We had just lived through as the industry had significant drops in commodity prices, the price of copper was just over $2 a pound, many expected it to drop below that. We had the issue of having $20 billion of debt following the misplaced oil and gas transaction that we did, we had restructured our board, restructured our management team and we're faced with deleveraging. At that board call, one of you pressed us to say, "what do you expect your debt levels to be?" We weren't sure at that time. I said, we hope to reduce our debt between $5 billion and $10 billion over the next 2 years. We are under $9 billion as we ended the year, this year. We were faced with the completion of our Cerro Verde project in Peru, which was a major project which often are troublesome for the industry. We did not know what we were going to do with the oil and gas assets at that time, there were no buyers in the marketplace in the first quarter. But we successfully exited that business. We thought we were going to have to hold those assets for a period of time. Many who followed our company were skeptical of our ability to sell copper assets at reasonable prices and through working with our partners Sumitomo -- with Sumitomo, with -- and Morenci, with China Moly, which turned out to be a great partner to deal with. In the Congo, we were able to get reasonable values at the time, great investments for those companies because they recognize the long-term values and the values in the copper marketplace. We had to sell some equity but we fought our way through that, a year ago.

你們中的大多數人已經來到這裡並關注我們公司有一段時間了，想想我們兩年前在哪裡。我們剛剛經歷了行業大宗商品價格的大幅下跌，銅價剛剛超過每磅 2 美元，許多人預計它會跌破這個價格。由於我們進行的錯誤石油和天然氣交易，我們面臨 200 億美元債務的問題，我們已經重組了董事會，重組了管理團隊，並且面臨著去槓桿的問題。在董事會會議上，有人催促我們問：“你們預計的債務水平是多少？”我們當時還不確定。我說，我們希望在未來兩年內減少 50 億至 100 億美元的債務。截至今年年底，我們的銷售額尚不足 90 億美元。我們面臨著秘魯Cerro Verde計畫的完工，這是一個往往會為產業帶來麻煩的重大計畫。我們當時不知道如何處理石油和天然氣資產，第一季市場上沒有買家。但我們成功退出了該業務。我們認為我們必須持有這些資產一段時間。許多關注我們公司的人都對我們以合理價格出售銅資產的能力表示懷疑，也對我們與合作夥伴住友（Sumitomo）和莫倫西（Morenci）以及中國鉬業（China Moly）的合作表示懷疑，事實證明，中國鉬業是一家非常好的合作夥伴。在剛果，我們當時能夠獲得合理的價值，對這些公司來說，這是巨大的投資，因為他們認識到長期價值和銅市場的價值。我們不得不出售一些股權，但我們在一年前就設法解決了這個問題。

In October 2016, I went back and looked at my notes from LME Week. There was still people predicting a wall of copper supply. Still predicting copper prices in October 2016 of $1.80 a pound. [The price] on the upside that were above $2.50 a year ago but we were blindsided by new regulations that had come out from the government of Indonesia that affected -- raised questions about our contract there. They came out in January. Since that time, I've spent as much time in Jakarta as I have in Phoenix. Kathleen's been there on my last 5 trips and we were pleased that after facing the prospects of very contentious arbitration proceeding, which we talked about publicly in the first quarter, we have reached a common grounds for moving forward with the government of Indonesia. We now mutually want to get this thing solved. We made a lot of progress and I'll give you a report on where we stand and answer your questions. But through '17, price of copper came back. So today we have a company that has a really great set of long-lived attractively cost -- operating cost profile, assets and resources. I'm so proud of our team. I have Red Conger here who runs our business in the Americas; Mark Johnson who runs our business in Indonesia; Mike Kendrick who runs our molybdenum business; and Rick Coleman who does our construction projects, who's traveling but these guys and their teams just had an exceptional year this year in executing our plan and being focused on doing that while we've dealt with the issue associated over the last 2 years with balance sheet management and dealing with Indonesia. We've got a great team and this team has executed extraordinarily well. You can go back to the early 2000s when we had to deal with a serious balance sheet issue. The successful integration and debt repayment following the Phelps Dodge deal in 2007 where we successfully repaid all the debt of that highly leveraged transaction within 4 years after managing ourselves through the financial crisis of 2008, 2009. By 2011, we had a company with no debt, had an integrated team that is the best copper operating team in the industry.

2016 年 10 月，我回過頭來回顧了 LME Week 的筆記。仍有人預測銅供應將出現短缺。仍預測2016年10月銅價為每磅1.80美元。一年前，價格曾上漲至 2.50 美元以上，但印尼政府出台的新法規令我們措手不及，這些法規對我們在那裡的合約產生了質疑。它們於一月問世。從那時起，我在雅加達度過的時間與在鳳凰城度過的時間一樣多。凱瑟琳在我最近五次旅行中都去過那裡，我們很高興，在面對非常有爭議的仲裁程序的前景之後（我們在第一季度公開討論過這個問題），我們已與印度尼西亞政府達成了向前邁進的共同點。我們現在都希望解決這個問題。我們取得了很大進展，我將向您報告我們的進展並回答您的問題。但到了2017年，銅價又回升了。所以今天我們擁有一家擁有真正優秀的長期吸引力成本——營運成本狀況、資產和資源的公司。我為我們的團隊感到驕傲。這裡有 Red Conger，他負責管理我們在美洲的業務；負責我們在印尼的業務的馬克·約翰遜；負責我們鉬業務的 Mike Kendrick；以及負責我們建設項目的里克·科爾曼（Rick Coleman），他正在出差，但這些人和他們的團隊今年在執行我們的計劃方面表現非常出色，他們專注於執行該計劃，而我們在過去兩年中處理了與資產負債表管理和與印度尼西亞打交道相關的問題。我們擁有一支優秀的團隊，這支團隊的表現非常出色。您可以回顧 21 世紀初期，當時我們必須處理嚴重的資產負債表問題。2007 年菲爾普斯道奇交易之後的成功整合和債務償還，在度過了 2008 年、2009 年的金融危機之後，我們在四年內成功償還了那筆高槓桿交易的所有債務。到2011年，我們的公司已經沒有債務，我們的綜合團隊也是業界最好的銅礦營運團隊。

Metrics are shown on Page 11 -- on page -- what's the page number?

指標顯示在第 11 頁 -- 第頁 -- 頁碼是多少？

4

4

Page 4. So the key thing that jumps out is free cash flow generation here in 2017. First part of 2017 was tough in Indonesia. We were restricted on exports for a period of time. We had significant labor problems. By mid-year we were exporting and continue to export, expect to be able to continue to export. Our labor relations issues have been really progressed. New union leadership in Indonesia. We signed a new 2-year labor contract in December without any controversy or drama associated with it. But even with the issues at the start of the year, we generated over $3 billion of operating cash flows in excess of our capital expenditures. You can see our cost structure, we maintained our reserves. And as I mentioned, we have really reduced our balance sheet.

第 4 頁。2017 年上半年對印尼來說是艱難的。我們在一段時間內受到出口限制。我們遇到了嚴重的勞動力問題。到年中我們就開始出口，並且繼續出口，希望能夠繼續出口。我們的勞資關係問題確實取得了進展。印尼的新工會領導階層。我們於 12 月簽署了一份新的為期 2 年的勞動合同，沒有任何爭議或戲劇性的事情。但即使年初有這些問題，我們仍然產生了超過資本支出 30 億美元的營運現金流。您可以看到我們的成本結構，我們維持了儲備。正如我所提到的，我們確實減少了資產負債表。

As we look forward to our plan for next year, if copper prices remain at roughly the current levels, the debt level, when I say next year, this year, 2018, we should end the year, if we use all of our cash flows to reduce debt at a debt level in the area of $5 billion so $20 billion to $5 billion is great progress.

當我們展望明年的計劃時，如果銅價保持在當前水平，那麼債務水平，當我說明年，今年，2018 年，我們應該在年底使用我們所有的現金流來減少債務，債務水平在 50 億美元左右，那麼 200 億美元減至 50 億美元是一個很大的進步。

Copper market commentary is as positive right now as we've seen. Demand is growing throughout the world for a number of years, many years, China was the source -- sole source of growth globally. Today, China is continuing to grow. Their economy is better than people expected, as you've seen. They appear to have dealt with their banking issues, that was a big concern, probably still a risk. But growth in Europe, growth in United States, growth in Japan, just tune in to the comments at Davos that's going on right now, and you can hear the positive comments about the global economy and all that reflects in the stronger copper demand.

正如我們所見，目前的銅市場評論非常積極。多年來，全球需求一直在成長，中國是全球成長的唯一來源。如今，中國仍在持續發展。正如你所看到的，他們的經濟比人們預期的要好。他們似乎已經處理了銀行問題，這是一個大問題，可能仍然存在風險。但歐洲的成長、美國的成長、日本的成長，只要關注達沃斯現在的評論，你就可以聽到對全球經濟的正面評價，而這一切都反映在更強勁的銅需求上。

Supply side issues are still there. Analysts, consultants who follow this business are expecting 2018 to be the first year of lower copper production after providing for disruptions than the prior year, first time that's happened since 2011. The industry is -- supply is reflecting a very long period of underinvestments. And even as we speak today, with higher prices, we don't see a wave of new investments being started immediately. So there's a real absence of major new projects on the horizon, declining productions from existing mines, exchange stocks are low. So Wood Mackenzie is talking about having a need to balance the market of 5 million tonnes of new projects over the next decade with a long lead times, the few world-class opportunities with a new uses for copper in transportation and power generation and so forth. The outlook for copper is positive going into 2018 and very positive for the long-term.

供給側問題仍然存在。關注該產業的分析師和顧問預計，2018 年將是銅產量在考慮供應中斷後首次低於前一年的一年，這是自 2011 年以來首次出現這種情況。該行業的供應反映出很長一段時間以來的投資不足。甚至就在我們今天談論這個問題時，儘管價格上漲，但我們並沒有看到新一波投資浪潮立即開始。因此，目前確實缺乏大型新項目，現有礦場的產量正在下降，交易所庫存較低。因此，伍德麥肯茲表示，需要在未來十年內平衡 500 萬噸新項目的市場和較長的交付週期，以及為數不多的世界級機會和在運輸和發電等領域對銅的新用途。2018 年銅的前景看好，長期來看前景非常樂觀。

Now Slide 6 shows where we stand in the industry. Clearly, a leader. We operate all the mines that we are invested in. And if you were to look at the production of our partners in mines that we operate, we operate the leading amount of copper production in the world. Large-scale technical capabilities in all forms of copper mining, whether it's SXEW open pit sulfide projects, underground mining, particularly block caving where -- we've been experience in block caving since early 1980s. We have this strong technical team that's a huge, huge benefit for our company. And so that's a really strong competitive advantage.

現在第 6 張幻燈片展示了我們在行業中的地位。顯然是一位領導者。我們經營我們投資的所有礦山。如果你看看我們營運的礦場合作夥伴的產量，你會發現我們的銅產量在世界上處於領先地位。在所有形式的銅礦開採中都擁有大規模的技術能力，無論是 SXEW 露天硫化物項目還是地下採礦，特別是塊狀崩落法——自 20 世紀 80 年代初以來，我們就已經在塊狀崩落法方面擁有豐富的經驗。我們擁有強大的技術團隊，這對我們公司來說是一個巨大的利益。這是一個非常強大的競爭優勢。

The supply situation, I think is reflected on Page 7 where we have a listing of the largest copper mines in the world in terms of reserves and production. Notably, there are no mines on here that have been discovered in the last 10 years. In the last 20 years, the only 2 mines are Oyu Tolgoi and Las Bambas. Everything else is old ore bodies. Now because we don't have new greenfield projects of size and the imminent outlook for copper demand, copper supply, it makes it more significant, these brownfield opportunities that we have with our ore bodies. And we'll talk more about those.

我認為，供應情況反映在第 7 頁，我們按儲量和產量列出了世界上最大的銅礦。值得注意的是，過去 10 年內這裡沒有發現任何礦場。在過去的20年裡，只剩下2個礦場，分別是奧尤陶勒蓋（Oyu Tolgoi）和拉斯邦巴斯（Las Bambas）。其餘一切都是舊礦體。現在，由於我們沒有規模新的綠地項目，而且銅需求和銅供應的前景也不樂觀，因此，我們在礦體中擁有的這些棕地機會就顯得更為重要。我們將會進一步討論這些內容。

We have -- besides our technical capabilities, I think the real strength of our company lies in our current resource base. Our 2P reserves -- so we're a big producer at about 4 million tonnes -- 4 billion pounds a year. But you look, we have proved and probable reserves of 87 billion pounds, mineralized material of another almost 100 billion pounds and potential of 150 billion pounds. Altogether, that's 335 billion pounds. Now what does that mean? And by the way, of the total, half of that's in North America. And today, in North America, with the power cost advantage that we have here in the United States, that's come about because of the shale revolution in natural gas and crude oil, with the improved regulatory situation that we now have and with a very flexible workforce, which allows us to deal with changes in our business whether we're expanding or having to reallocate resources, the support we get from states, from local communities, it's a big advantage of investing in the United States, which is still, from a political risk standpoint, the best country in the world. And now with this new tax bill, that's another advantage.

除了技術能力之外，我認為我們公司的真正優勢在於我們現有的資源基礎。我們的2P儲量，每年約400萬噸，40億磅，是一個大生產國。但你看，我們已經探明和可能的儲量為 870 億磅，礦化材料另外還有近 1000 億磅和 1500 億磅的潛在儲量。總計達3,350億英鎊。那麼這是什麼意思呢？順便說一下，總數中有一半在北美。如今，在北美，我們在美國擁有電力成本優勢，這是由於天然氣和原油的頁岩革命而實現的，加上我們現在監管環境的改善和勞動力的靈活性，使我們能夠應對業務變化，無論是擴張還是重新分配資源，再加上我們從各州和當地社區獲得的支持，這是在美國投資的一大優勢，從政治風險的角度來看，美國仍然是世界上最好的國家。現在有了新的稅收法案，這又是一個優勢。

Now we're not like most transnational companies in the United States. We were already paying higher tax rates outside the United States than inside the United States. We also had a very large, and we continue to have a very large loss carry-forward for the oil and gas business. So we don't have the issue of repatriation of taxes or much lower current tax rate. But we do benefit from the fact that the AMT provisions were repealed. That's going to allow us to file for refunds over the next 4 years or so of $400 million to $500 million, that's additional cash. The tax law retained percentage depletion for mineral resources, so even looking out beyond the time that we have this, and it's a long period of time with these loss carry-forwards, the new tax law is a benefit to us long-term.

現在我們不像美國的大多數跨國公司。我們在美國境外繳納的稅率已經比美國境內更高了。我們的石油和天然氣業務的虧損結轉也非常大，而且這種虧損仍在持續。因此，我們不存在稅收匯回或當前稅率過低的問題。但AMT條款被廢除的事實確實讓我們受益。這將使我們能夠在未來 4 年左右申請退款 4 億至 5 億美元，這是額外的現金。稅法保留了礦產資源的百分比耗竭，因此即使放眼未來，並且這些損失結轉的時間很長，新稅法對我們來說也是長期有利的。

So what we've got, these -- beyond our proved and probable reserves is really a great deal of optionality for the future. The strongest assets in the mining industry are long-lived assets. Long-lived assets, you don't face the investment risk. You don't have to have success with greenfield explorations. You don't have to make acquisitions when you have a resource base like the one that we have. And it's not limited to any single mine. We have a very large footprint with 5 operations in the United States that have very large sulfide resources that we have identified. And over time, I'm convinced that the world is going to need the copper out of those.

所以，除了已探明和可能的儲量之外，我們所擁有的這些對於未來來說確實具有很大的選擇性。採礦業中最強大的資產是長期資產。長期資產，您不會面臨投資風險。您不必在綠地探索中取得成功。當你擁有像我們這樣的資源基礎時，你就不必進行收購。並且它並不局限於任何一個礦井。我們的業務範圍非常廣泛，在美國有 5 個業務點，這些業務點都擁有我們已經發現的非常大的硫化物資源。隨著時間的推移，我相信世界將會需要這些銅。

South America. We have a really attractive project in Chile with our El Abra project where we are partners with CODELCO to develop a very large sulfide resource. Lots of capital, lots of studying to be done. We're doing studies now. We haven't committed to spending capital on it, but we're preparing ourselves to.

南美洲。我們在智利有一個非常有吸引力的項目，即El Abra項目，我們與CODELCO合作開發非常大的硫化物資源。大量的資本，大量的研究要做。我們現在正在進行研究。我們尚未承諾為此投入資金，但我們正在做好準備。

We have a couple of attractive exploration projects. We had a exploration project in Serbia where we entered into partnership with Nevsun who is continuing to do drilling and they're looking to develop an upper zone. The lower zone is of size and we have a significant position in it. And while we sold our Tenke Fungurume project in the Congo, we still own an undeveloped resource that's in the area called Kisanfu. It's -- we believe the largest undeveloped cobalt deposit in the world. It's permitted, and we're looking at opportunities of developing it or entering into partnerships with other operators there in the Congo. We have a lot of interested people wanting to buy it outright, but it gives us a lot of options to consider with this big resource.

我們有幾個很有吸引力的勘探項目。我們在塞爾維亞有一個勘探項目，我們與 Nevsun 建立了合作夥伴關係，他們正在繼續進行鑽探，並希望開發上層區域。下部區域規模很大，我們在其中佔有重要地位。雖然我們出售了位於剛果的 Tenke Fungurume 項目，但我們仍然擁有位於 Kisanfu 地區的未開發資源。我們相信這是世界上最大的未開發鈷礦。這是被允許的，我們正在尋找開發它的機會或與剛果的其他運營商建立合作夥伴關係。有很多感興趣的人想要直接購買，但這給了我們許多可以考慮的選擇。

And then in the Grasberg district, while we have a clear-cut plan of developing and operating through 2041, there's significant resources beyond that and in time, they will come into play.

然後在格拉斯伯格區，雖然我們有一個明確的開發和營運計劃，直到 2041 年，但除此之外還有大量的資源，隨著時間的推移，它們將發揮作用。

Looking at the Americas, it was really strong performance. Congratulations, Red and your team. In the fourth quarter, we sold 666 million pounds of copper in that quarter alone. I mentioned earlier the Cerro Verde expansion, that concentrator averaged 374,000 tonnes per day in the fourth quarter. And that's on a 360,000 tonnes nameplate. I believe it's the largest concentrator in the industry, and is operating very effectively.

放眼美洲，其表現確實強勁。恭喜 Red 和你的團隊。光是在第四季度，我們就銷售了 6.66 億磅銅。我之前提到過 Cerro Verde 的擴建，該選礦廠第四季的平均日產量為 374,000 噸。銘牌上的重量為 36 萬噸。我相信它是業內最大的濃縮廠，而且運作效率很高。

We continue our focus on cost and CapEx management. Some factors are coming in to increase cost at the margin. With the higher copper prices, our margins are growing. But we continue to be disciplined in the way we spend money. We are advancing these studies for looking for future growth. But you can just see what a great business this Americas business is.

我們繼續關注成本和資本支出管理。一些因素正在導致邊際成本增加。隨著銅價上漲，我們的利潤率也在成長。但我們在花錢方面仍會保持紀律。我們正在推進這些研究以尋求未來的成長。但你可以看到這家美國企業是多麼偉大的企業。

In the fourth quarter, we had $450 million, $500 million of cash flow after CapEx. And for the year, over $2.5 billion. Still, in our memory is a time when it was said that Southwest copper district in U.S. was dead. Now it's profitable with major opportunities to invest capital, employ people. Our company supplies more than 40% of the copper to the U.S. district, and we're going to continue to take advantage of that. The sulfide projects in the Americas include 5 projects in the U.S. and the El Abra project in Chile. These reserve numbers we're using are still based on a $2 copper mine plan, so there's significant upside at higher prices both in our reserves and resources. But this is -- we're monitoring market conditions. We're going to be very disciplined in deciding when to go forward with it, but it's a strength of our company.

第四季度，我們的現金流為 4.5 億美元，扣除資本支出後為 5 億美元。今年的銷售額已超過 25 億美元。但在我們的記憶中，曾經有一句話：美國西南銅礦區已經死了。現在，它盈利豐厚，擁有大量投資資本和僱用人才的機會。我們公司向美國地區供應了40%以上的銅，我們將繼續利用這一優勢。美洲地區硫化物計畫包括美國的5個計畫和智利的El Abra計畫。我們使用的這些儲量數字仍然是基於 2 美元的銅礦計劃，因此，我們的儲量和資源價格上漲都具有顯著的上漲空間。但這是——我們正在監測市場狀況。我們將非常謹慎地決定何時推進這項計劃，但這是我們公司的優勢。

One project we are moving forward with is the Lone Star oxide project. This has been a resource that's been known for decades in the industry. It's located 7 miles from our Safford mine, which is just across the mountain from Morenci in Eastern Arizona. We are going to start, or we are starting with a project to mine an oxide cap through this big sulfide project. The current project has reserves of 4.4 billion pounds of copper. The capital would be $850 million spent over several years. We are commencing prestripping activities in the first quarter of this year. While this will serve to strip cover over the big sulfide resources, it's going to be done in a very profitable way because we're going to take that oxide material, transport it to the Safford processing facilities. Safford is a mine, which is declining. It had a limited life. It has a big sulfide resource at depth but now we're going to be able to use the facilities at Safford to mine this oxide ore and have production of 200 million pounds a year for 20 years, unit cost of $1.75 with over $1 billion of NPV at $3.50 copper, so it is a good project. But what it does, it gives us exposure to a sulfide deposit lying underneath the oxide deposit, it has 60 billion pounds of contained copper. Now this would involve ultimately, the development of the big concentrator mill and so forth. But it's an attractive way to get exposure to that big resource.

我們正在推進的一個專案是孤星氧化物專案。這是業界數十年來已知的資源。它距離我們的薩福德礦場 7 英里，就在亞利桑那州東部莫倫西山對面。我們將要啟動，或者說我們正在啟動一個透過這個大型硫化物計畫來開採氧化物蓋的計畫。該項目目前擁有44億磅銅儲量。該資金將分幾年投入 8.5 億美元。我們將在今年第一季開始預剝離活動。雖然這將有助於剝離大型硫化物資源的覆蓋層，但這將以非常有利可圖的方式完成，因為我們將把這些氧化物材料運送到薩福德加工廠。薩福德是一個正在衰落的礦場。它的壽命有限。它擁有巨大的深層硫化物資源，但現在我們將能夠使用薩福德的設施來開採這種氧化礦，並在 20 年內每年生產 2 億磅，單位成本為 1.75 美元，以每桶 3.50 美元的銅價計算，淨現值超過 10 億美元，所以這是一個很好的項目。但它的作用是讓我們接觸到位於氧化物礦床下方的硫化物礦床，其中含有 600 億磅的銅。這最終將涉及大型選礦廠等的發展。但這是接觸這巨大資源的一個很有吸引力的方式。

And we're showing the drilling that we've done to date, that defines the resource, and our 2017 drilling, which we spent a bit more money on than we had originally budgeted. But showed the extension of this sulfide resource, it was very positive. And as you will note, you've got some attractive grades that are in the current outline for the resource. But these deeper holes continue to encounter attractive grades going forward. So this is a great current and future opportunity for us.

我們展示了迄今為止進行的鑽探，以確定資源量，以及我們 2017 年的鑽探，我們在這方面花費的資金比我們最初的預算要多一些。但顯示出這種硫化物資源的延伸，這是非常積極的。正如您所注意到的，您已經獲得了符合當前資源大綱的一些有吸引力的成績。但這些較深的洞在未來仍會繼續遭遇具有吸引力的品味。所以這對我們現在和未來來說都是一個絕佳的機會。

In Chile, the El Abra sulfide project is a good project. I mean, this is really a good project. It's a big project. It is in our inventory. We're working with our partners. We're working with other land owners in the region to see if we can cooperate with them. It's at an altitude if we [acquire] saltwater...

在智利，El Abra硫化物計畫是一個很好的計畫。我的意思是，這確實是一個很好的項目。這是一個大工程。它在我們的庫存中。我們正在與我們的合作夥伴合作。我們正在與該地區的其他土地所有者洽談，看看是否可以與他們合作。如果我們獲取鹽水，它就處於高海拔地區...

Desalinization.

海水淡化。

Desalinization project and transportation of that water up high, so it would be a big investment, but it's 2 billion pounds of 0.45% copper. Our current expectation is that it would involve a building of a 240,000 tonnes per day [concentrate], similar to Cerro Verde, to produce 750 million pounds a year. It's a 6 to 8 lead time, and we're engaged in prefeasibility study and permitting planning now. So it's something that will develop over time. We're in no rush on this, but it's going to be a great project for Freeport in the future. And you can see the results of drilling that have been done to date, you can see the reserve pit that has been identified, the mineralized material [shale] and the continuation of mineralization with our deeper drill holes as we go forward.

海水淡化項目以及將水輸送到高處，因此這將是一項巨大的投資，但這涉及 20 億磅 0.45% 的銅。我們目前的預期是，它將涉及建造一個日產 24 萬噸（精礦）的礦場，類似於 Cerro Verde 礦場，每年生產 7.5 億磅。這是一個 6 到 8 週的準備時間，我們現在正在進行預可行性研究和許可規劃。所以這是一個會隨著時間而發展的事物。我們對此並不著急，但這對自由港的未來來說將是一個偉大的計畫。您可以看到迄今為止進行的鑽探結果，可以看到已經發現的儲備坑、礦化物質（頁岩）以及隨著我們進一步深入鑽孔，礦化作用的延續。

Now, in Indonesia. So Mark I want to again, congratulate your team for meeting the challenges that we faced at job site, while we've been dealing with this attention on the negotiations with the government. I mentioned earlier, we had exports disrupted, we had labor problems and the labor situation is so much better now than it's been since -- going back to 2010 time frame. We've had some security issues so -- and that's Papua is always going to be a complicated place to operate. But in the last couple of months, we've had some security issues. The thing that's encouraging now versus previous times is we're getting great cooperation from the Indonesian authorities so -- the Head of the Police who had previously served in Papua is totally engaged. I got to know General Tito a number of years ago, he's very well regarded in the government, he understands it and he's committed to help us, there's a new Head of the Military and they are working together with the police. So you can see the results of that. And I know there's continued concern about the uncertainty about our contract and so forth. But the balancing deal we've been working with is to progress the discussions with the government and take advantage of this high-grade ore that we've had available to us as we mine the pit.

現在，在印尼。所以馬克，我想再次祝賀你的團隊克服了我們在工作現場面臨的挑戰，同時我們一直關注與政府的談判。我之前提到過，我們的出口受到了乾擾，我們遇到了勞動力問題。我們遇到了一些安全問題，因此，巴布亞始終是一個複雜的地方。但在過去的幾個月裡，我們遇到了一些安全問題。與以往相比，現在令人鼓舞的是，我們得到了印尼當局的大力合作，曾在巴布亞任職的警察局長全心投入其中。我幾年前就認識了蒂托將軍，他在政府中很受尊敬，他理解這一點，並致力於幫助我們，現在有一位新的軍事首腦，他們正在與警察合作。這樣你就可以看到結果了。我知道人們仍然擔心我們的合約的不確定性等等。但我們一直在努力達成的平衡協議是推動與政府的談判，並利用我們在開採過程中獲得的高品位礦石。

My first trip there was 1988 when the second drill hole we drilled in Grasberg. I took a little picture of the exploration [chat]. Where I took that picture to date there is a pit that's 1 kilometer deep and 2.5 kilometers across that since that drilling has been developed. We're at the very final stages of mining the pit, very little waste material to move, very high grades at the core of this ore body and we'll be mining that for the next year or so. And so what that has generated for us this year, including negative impacts that we suffered at the first of the year is over $1.5 billion of free cash flow, that's important to our company.

我第一次去那裡是在 1988 年，當時我們在格拉斯伯格鑽了第二個鑽孔。拍了張探索[聊天]的小照片。自從鑽探開始以來，我拍攝那張照片的地方至今還有一個深 1 公里、寬 2.5 公里的坑。我們正處於礦坑開採的最後階段，需要移動的廢料非常少，礦體核心的品位非常高，我們將在未來一年左右繼續開採。所以這為我們今年帶來了什麼，包括年初遭受的負面影響在內，就是超過 15 億美元的自由現金流，這對我們公司來說很重要。

Now what is really important to our company is getting the rights to operate through 2041. And I'm pleased to report those negotiations are advancing in a mutually amicable way. We have very good working relationships with the ministers that have been assigned to represent the government on this. The negotiations are, at times, challenging as all negotiations are, but we have mutual respect, positive views about each other and a mutual objective of getting to this stability.

現在對我們公司來說真正重要的是獲得至 2041 年的營運權。我很高興地報告，這些談判正在以雙方友好的方式推進。我們與受命代表政府處理此事的部長們保持著非常良好的工作關係。就像所有談判一樣，談判有時也很有挑戰性，但我們相互尊重，對彼此抱持正面看法，並有一個實現穩定的共同目標。

Now what we are pushing for is having fiscal and legal certainty for our long-term mining operations, and that's through 2041. And that certainty means that we end up with a agreement that gives us those rights [preserves] so that they can't be changed by future laws and regulations. And the government has accepted that. We have agreed to provide mutual financial -- provide financial benefits to the government that are in excess of those under our current contract. And that's principally by paying higher royalties, we've agreed to pay higher royalties.

現在，我們正在爭取為我們的長期採礦業務提供財政和法律確定性，這個期限到 2041 年。這種確定性意味著我們最終會達成協議，賦予我們這些權利（保留），以便它們不會被未來的法律和法規所改變。政府已經接受了這個事實。我們已同意向政府提供超出現有合約額度的相互財務利益。這主要是透過支付更高的版稅，我們同意支付更高的版稅。

We've agreed to 2 things that the Indonesians have really described as being nonnegotiable from their perspective. One has to do with building new smelter capacity. And we are looking -- we're approaching this with a commitment to do it. We told the government that we would do it in conjunction with getting this extension. We're working now and looking at a partnership with a company called Aman -- PT. Aman which acquired Newmont's mine in Sumbawa, the Batu Hijau mine and it would make sense for us to do something together. So we're talking about that. But with any event, we have committed that within 5 years of signing a definitive agreement, we will build this new smelter capacity and do it in as cost-efficient way as we can.

我們同意了兩件事，而印尼人卻認為這兩件事是不可協商的。其中一個與建造新的冶煉廠產能有關。我們正在期待——我們正致力於實現這一目標。我們告訴政府，我們將在獲得延期的同時採取這項行動。我們目前正在研究與一家名為 Aman-PT 的公司建立合作關係。Aman 收購了 Newmont 位於松巴哇的礦山 Batu Hijau 礦山，因此我們合作起來很有意義。所以我們正在談論這個。但無論發生什麼情況，我們都承諾，在簽署最終協議後的五年內，我們將建造這個新的冶煉廠，並盡可能以經濟高效的方式進行。

We've also agreed, and again, this was a nonnegotiable point with the government of Indonesia that we would work to give the government a 51% interest in the project in what is actually a joint venture operations for the Grasberg operations between us and our joint venture partner. And we said we would do that so long as we got fair market value for any divestment and that fair market value would be based on valuations used internationally for resource assets. And the government has agreed to that. We also said we would do it so long as Freeport would continue to have control over operations and the governance of the business. Very complicated business, we've invested billions of dollars to date. We're going to be managing other multibillion dollars investments as we go forward. I'm not stretching to say it's the most complicated mine in the world because of its physical location it will be the largest underground mine ever developed. Environmental issues are very challenging, community issues are challenging. We will work together as partners with the Indonesians and provide them a meaningful participation in it. But we need to make sure that it's run in the right way. As I said, we're the best copper miner in the world. The government's state-owned business has some mining experience, but it's not anywhere near the scale of ours or with the complexity of ours and none within the copper business.

我們也同意，而且，這是與印尼政府達成的不容談判的一點，我們將努力讓政府獲得該項目 51% 的權益，這實際上是我們與合資夥伴就 Grasberg 項目進行的合資經營。我們表示，只要任何撤資能夠獲得公平的市場價值，我們就會這樣做，而公平的市場價值將基於國際上對資源資產的估值。政府也同意了這一點。我們也表示，只要自由港能夠繼續控制營運和業務治理，我們就會這樣做。這是非常複雜的業務，到目前為止我們已經投資了數十億美元。我們將在未來管理其他數十億美元的投資。毫不誇張地說，它是世界上最複雜的礦井，由於它所處的地理位置，它將是有史以來開發的最大的地下礦井。環境問題非常具有挑戰性，社區問題也很有挑戰性。我們將作為合作夥伴與印尼人民共同努力，為他們提供有意義的參與。但我們需要確保它以正確的方式運作。正如我所說，我們是世界上最好的銅礦開採商。政府的國營企業有一些採礦經驗，但其規模和複雜程度遠不及我們，在銅礦業務方面更是一無所有。

So we have this mutual objective of completing the negotiations and going forward. Our temporary IUPK has been extended to June. Our contract award stays in place, the government has agreed to that. We're exporting. We expect to be able to continue to export and we're going forward. The government -- we are aware that the government is engaged in discussions with our joint venture partner about the potential of acquiring their interest. In preparing for that, they're going through a process of doing due diligence to build a record to show that they have -- understand what they're doing. And we're cooperating with that, providing them information, meeting with them. And so we're helping to facilitate that -- a transaction. That transaction would be the best outcome for all parties, I believe, provided they can reach agreement on valuation. The valuation negotiations are between the government and our joint venture partner. That's a separate interest from ours. So we're facilitating the process but that's part of the negotiations that we don't have control over.

因此，我們有一個共同的目標，那就是完成談判並繼續前進。我們的臨時 IUPK 已延長至 6 月。我們的合約授予仍然有效，政府已經同意了這一點。我們正在出口。我們希望能夠繼續出口，並且我們正在繼續前進。政府－我們知道政府正在與我們的合資夥伴討論收購其權益的可能性。在為此做準備時，他們正在進行盡職調查，以建立記錄來表明他們了解自己在做什麼。我們正在配合他們，向他們提供信息，並與他們會面。所以我們正在幫助促成這項交易。我相信，只要各方能夠就估值達成一致，該交易將是對各方最好的結果。估值談判是在政府和我們的合資夥伴之間進行的。這與我們的利益無關。因此，我們正在促進這一進程，但這是我們無法控制的談判的一部分。

But all of that's moving forward, as I said, a whole new attitude about getting there, allowing -- the government recognizes we need to continue operating. They need the revenues in terms of their taxes and royalties. They need to have employment in Papua and all that translates into our continuing to generate cash flows.

但正如我所說，所有這一切都在向前推進，我們需要一種全新的態度來實現這一目標——政府認識到我們需要繼續運作。他們需要稅收和特許權使用費的收入。他們需要在巴布亞有就業機會，而這一切都意味著我們需要繼續創造現金流。

So where we are with Grasberg, today is -- we are completing mining the open pit, development started in the early 90s, been one of the great mining operations. Most years, we're moving 700,000 to 1 million tonnes a day and now it's coming to an end. But it's the same ore body that extends down to depths where it's more economical to mine underground. And so that's what we've been focused on is the development of the Grasberg Block Cave. Now we're currently producing from an adjacent mineral system that we began mining in the early 1980s, and we've continued to mine at deeper horizons and expanding it. And this mine currently that we're mining from is the DOZ, the new mine is the Deep MLZ, which we began production in '15 or '16 -- '16, and we continue to have the opportunity to expand this resource as we go forward. So add this all together, we will -- our plans call for us to process through our mill from the underground ore at rates of about 240,000 tonnes per day for the long-term continuing to 2041.

所以我們今天在格拉斯伯格的情況是——我們正在完成露天礦場的開採，開發始於 90 年代初，是偉大的採礦作業之一。大多數年份，我們每天運輸70萬至100萬噸，但現在這個速度即將結束。但同一礦體延伸至更深的深度，在那裡進行地下開採更為經濟。因此，我們一直關注的是格拉斯伯格塊狀洞穴的開發。目前，我們正在從 20 世紀 80 年代初開始開採的相鄰礦物系統進行生產，並且我們一直在更深的層面上進行開採並不斷擴大它。我們目前正在開採的礦井是 DOZ，新礦井是 Deep MLZ，我們在 2015 年或 2016 年開始生產，在未來的發展中，我們將繼續有機會擴大這項資源。所以把所有這些加在一起，我們的計劃是，從長遠來看，到 2041 年，我們計劃以每天約 240,000 噸的速度通過我們的磨坊加工地下礦石。

And while -- if you look at the next Slide 18, while all of this has been going on with the government and the labor and everything else, our team has just been plugging away at developing this Grasberg Block Cave infrastructure, and we are virtually completed. We've got access to the underground. We can't start developing the block caves until we complete mining from the pit. We are now completing the ore delivery system. There's actually a train involved with this. And that will be done this year, so that by the end of the year we'll be ready to turn the switch on, stop mining from the pit, start mining from the overground -- underground. Now this has been a challenging high-risk project, and Mark and his team has done just a great job in focusing on that and getting that done. And I will say that the risk of doing that are now behind us. Once we start managing the underground, we're going to be ramping up to where this mine will produce 1 billion pounds of copper a year, very significant. 1 million ounces of gold a year on average, and that will give it a really attractive cost structure.

同時——如果您看下一張投影片 18，當政府、勞工和其他所有事情都在進行中時，我們的團隊一直在努力開發格拉斯伯格塊洞穴基礎設施，我們幾乎已經完成了。我們已經可以進入地下了。我們必須等到礦坑的開採工作完成之後才能開始開發塊狀洞穴。我們現在正在完成礦石輸送系統。事實上，這與一列火車有關。這項工作將在今年完成，以便到今年年底我們就可以啟動開關，停止礦坑開採，開始地上地下開採。這是一個具有挑戰性的高風險項目，馬克和他的團隊非常出色地專注於此並完成了它。我想說的是，這樣做的風險現在已經過去了。一旦我們開始管理地下礦，我們的產量將達到每年 10 億磅銅，這非常重要。平均每年100萬盎司黃金，這將使其具有真正有吸引力的成本結構。

I don't do this very often, but just to put this in perspective of what we have here in the Grasberg underground, it's just under 1 billion tonnes of ore. With a copper equivalent approaching 1.5% when you add the gold into it. Las Bambas has just over 1 billion tonnes of ore. They have 0.8% copper equivalency. We would produce 31 -- over 30 billion pounds of copper equivalence. They have about 20. Cobre Panama, which is a great resource has over 3 million tonnes of ore, but a grade of -- 3 billion tonnes of ore, but a 0.45% copper equivalence. So compared with other great ore bodies around the world, this is certainly going to be one of them and one which we'll make a lot of money off of.

我並不常這樣做，但只是為了說明我們在格拉斯伯格地下擁有的礦石量，它的礦石量略低於 10 億噸。如果添加金的話，銅當量將接近1.5%。Las Bambas 礦床礦石儲量略超過 10 億噸。它們的銅當量含量為0.8%。我們將生產310億至300多億磅的銅當量。他們大約有 20 個。巴拿馬銅礦是一種資源豐富的銅礦，礦石儲量超過 300 萬噸，品位為 30 億噸，但銅當量含量僅 0.45%。因此，與世界各地的其他大型礦體相比，這肯定是其中之一，也是我們能從中賺取大量利潤的礦體。

So the key milestones that we've completed to date are shown on Slide 19. 220 kilometers of development, mine access, shaft, ventilation, rail connection, crushers, batch plant. And so we've got work to do this year but as I said, my view is the risk of development has been met. Now what does Indonesia get out of this? Well, it's a very attractive deal for the government on the existing cap. To date, they've gotten almost 60% of the financial benefits of the total operations. We've been there 50 years, the Grasberg was discovered in the late '80s. Since 1992, when our most recent contract came into place, we've contributed $60 billion to their national GDP, the largest employer in Papua. One of the largest taxpayers in Indonesia. We've contributed over $700 million since 1996 voluntarily through a community development fund. And as we look forward, for the government, future taxes, royalties and dividends through 2041 would exceed $40 billion. Good deal for the government, good deal for our shareholders.

幻燈片 19 顯示了我們迄今為止完成的關鍵里程碑。220 公里的開發、礦井通道、豎井、通風、鐵路連接、破碎機、配料廠。因此，我們今年還有很多工作要做，但正如我所說，我的觀點是發展風險已經滿足。那麼印尼從中得到了什麼呢？嗯，對於政府來說，就現有上限而言，這是一項非常有吸引力的協議。到目前為止，他們已經獲得了整個營運過程中近60% 的經濟利益。我們已經在那裡生活了 50 年，格拉斯伯格國家公園是在 80 年代末被發現的。自 1992 年我們簽訂最新合約以來，我們已為巴布亞的國內生產毛額貢獻了 600 億美元，成為巴布亞最大的雇主。印尼最大的納稅人之一。自 1996 年以來，我們已透過社區發展基金自願捐款超過 7 億美元。展望未來，對政府而言，到 2041 年，未來稅收、特許權使用費和股息將超過 400 億美元。對政府來說這是一筆好交易，對我們的股東來說這也是一筆好交易。

2018, our guidance continues the same at about 4 billion pounds of copper, 2.4 million ounces of gold, 90 -- over 90 million pounds of molybdenum, which, by the way, is having a more positive price environment right now than we've had in recent years. Attractive site production, delivery cost of $1.60 after by-product credits, about 90 -- less than $1 a pound. And operating cash flow is at $3.15, copper would exceed $5.8 billion, highly leveraged to copper prices. Each $0.10 is $360 million just over roughly $2 billion of CapEx, including $1 billion on the underground development in Indonesia and the development of the Lone Star project. And about $1 billion for other mining sustaining capital, some of which has been deferred in recent years. But clearly great cash margins over CapEx.

2018 年，我們的預期保持不變，銅產量約為 40 億磅，黃金產量為 240 萬盎司，鉬產量超過 9,000 萬磅，順便說一句，目前的價格環境比近年來更為積極。有吸引力的場地生產，扣除副產品後的運輸成本為 1.60 美元，約合每磅 90% 不到 1 美元。而營運現金流為 31.5 億美元，銅價將超過 58 億美元，與銅價高度掛鉤。每 0.10 美元就是 3.6 億美元，略高於約 20 億美元的資本支出，其中包括 10 億美元用於印尼地下開發和 Lone Star 項目開發。另外還有約 10 億美元用於其他採礦維持資本，其中一些資金近年來已被推遲。但顯然現金利潤遠高於資本支出。

Our unit cost by area, North America, South America, and Indonesia are shown on Page 22 as well as our sales by region. I'll just make reference to that since I've already talked about it. Our sales profile as we look forward for the next 2 years, 2019 will be a transition year. We expect a moving from the open pit at Grasberg to the underground. There's going to be -- while we're developing stockpiles and so forth, there will be a interim drop in production, which we'll build back up to a average over the next 2 years of approaching 4 billion pounds. And you can see that with our outlook for gold productions.

第 22 頁顯示了我們按地區、北美、南美和印尼劃分的單位成本，以及按地區劃分的銷售額。由於我已經討論過這一點，所以我只是提及這一點。展望未來兩年的銷售情況，2019 年將是過渡年。我們期望格拉斯伯格的露天礦場能轉移到地下。在我們建立庫存等的同時，產量會暫時下降，但在未來兩年內，我們會將產量恢復到平均 40 億磅的水平。您可以從我們對黃金產量的展望中看到這一點。

Quarterly sales are shown on Page 24 for the upcoming -- for this year, 2018. And then Page 25 shows the model that we show each year for the next 2 years, giving EBITDA and cash flow numbers. At $3.25 copper, we would have average $7.3 billion EBITDA, $5 billion of operating cash flows. 2018 will be higher than this average because of the transition year in 2019.

第 24 頁顯示了今年（2018 年）的季度銷售額。第 25 頁展示了我們未來兩年每年展示的模型，給出 EBITDA 和現金流量數字。以銅價 3.25 美元計算，我們平均的 EBITDA 為 73 億美元，營運現金流為 50 億美元。由於 2019 年是過渡年，2018 年的收入將高於這一平均值。

And the sensitivities for our -- the metals that we produce and the currencies presented on Page 26, capital expenditure outlook, which I referred to earlier is on Page 27. I'll just note that this does not include spending on the new smelter in Indonesia, and we're looking at financing alternatives to finance that aggressively with project type financing for the smelter.

我們生產的金屬和貨幣的敏感度列在第 26 頁，我之前提到的資本支出前景列在第 27 頁。我只想指出，這不包括在印尼新冶煉廠的支出，我們正在積極尋找融資替代方案，透過專案式融資為冶煉廠提供資金。

So just going back to what we've done with our balance sheet improvement over the last 2 years, ending the year at $8.7 billion. And if we use all excess cash flow, execute on our plan, realize these copper prices, you can see that our debt would drop significantly during this upcoming year because of strong commodity prices.

回顧過去兩年我們為改善資產負債表所做的努力，今年年底我們的資產負債表總額達到了 87 億美元。如果我們利用所有剩餘現金流，執行我們的計劃，實現這些銅價，你會發現，由於大宗商品價格強勁，我們的債務將在來年大幅下降。

So in closing, we're really optimistic here about our company, about the outlook for copper in this long-term fundamentals. We like being the industry leader. We have a lot of Freeport people that listen to this call and for all of you on the call in front of our investors and analysts, I just want to tell you how much I and our board -- me and the board, and senior management team appreciate what everyone has done this past year. It's been a challenge. We've had to support each other, build our morale up, come back -- 2 years ago, our -- the market was telling us through the CDS trading that there was well over a 90% outlook that this company would default on its debt, that's 2 years ago. Now our credit default swap has gone from a high of 2,700 basis points to below 150 basis points. We're going to get better. Our credit -- I expect our credit rating to increase over time. But what I'm really proud of is what this team has done. We've shown our mettle. We continue to do that. I couldn't be more proud to be part of it and look forward to 2018 to be a year of ongoing and major progress and accomplishment.

總而言之，我們對我們的公司以及銅的長期前景非常樂觀。我們喜歡成為業界的領導者。有很多自由港人聆聽了這次電話會議，對於所有在我們的投資者和分析師面前參加電話會議的人，我只想告訴你們，我和我們的董事會——我和董事會以及高級管理團隊非常感謝大家在過去一年裡所做的一切。這是一個挑戰。我們必須互相支持，提高士氣，回來吧——兩年前，我們的——市場透過 CDS 交易告訴我們，這家公司拖欠債務的可能性遠遠超過 90%，那是兩年前的事了。現在我們的信用違約掉期已經從2700個基點的高點跌至150個基點以下。我們會變得更好。我們的信用－我預計我們的信用評級將隨著時間的推移而提高。但我真正感到自豪的是這支球隊所取得的成就。我們已經展現了我們的勇氣。我們將繼續這樣做。我非常自豪能夠成為其中的一員，並期待 2018 年成為持續取得重大進步和成就的一年。

Operator, we can take questions now.

接線員，我們現在可以回答問題。

(Operator Instructions) The first question comes from the line of Alex Hacking with Citi.

（操作員指示）第一個問題來自花旗銀行的 Alex Hacking。

Regarding Grasberg and the potential that the government might buy the 40% stake from your JV partner, Rio Tinto, how likely do you think that outcome is? Is that now the most likely outcome in your view?

至於格拉斯伯格以及政府可能從您的合資夥伴力拓手中收購 40％ 股份的可能性，您認為這種結果有多大可能性？您認為這是現在最有可能的結果嗎？

You know it's at a stage of negotiation. So you don't want to get ahead of those negotiations. It appears to be the desire of parties to do that. So I would characterize as a most likely outcome.

你知道它正處於談判階段。所以你不想在這些談判中佔先機。各方似乎都希望這樣做。因此我將其描述為最有可能的結果。

Okay. And can you remind us of what Rio Tinto's CapEx commitment is to developing the underground? And would you expect that in this scenario where the Indonesian government buys Rio Tinto's stake that they would also assume that share of CapEx commitment?

好的。您能否提醒我們力拓對於開發地下礦場的資本支出承諾是什麼？您是否認為，在印尼政府購買力拓股份的情況下，他們也會承擔該部分資本支出承諾？

Yes, we have an understanding with the Indonesian government that in the event that they do a deal with Rio Tinto, Freeport's economics under the existing joint venture agreement would be preserved. Alex, do you understand when I say -- am I saying that clearly and...

是的，我們與印尼政府達成諒解，如果他們與力拓達成交易，自由港在現有合資協議下的經濟效益將得以保留。亞歷克斯，你明白我說的話嗎－我說得清楚嗎？

Yes, I understand that clearly. Could you just remind us what Rio's commitments are?

是的，我很清楚這一點。您能否提醒我們一下裡約的承諾是什麼？

All right. Well, it's complicated in that -- this joint venture agreement is relatively complicated because under the agreement, which was signed in the mid-1990s, certain projects are designated as expansion projects and certain projects are designated as replacement capital. Rio Tinto placed 40% of the expansion projects and small amounts of the replacement capital projects. We've agreed to share other projects 50-50. So it's -- there's not really an easy answer for that. But if you look from right now through 2022 when the conversion would be under the joint venture agreement to a straight 40% after that it's a 40-60 joint venture sharing straight up, their projected cash flows of...

好的。嗯，這很複雜——這個合資協議相對複雜，因為根據 20 世紀 90 年代中期簽署的協議，某些項目被指定為擴建項目，某些項目被指定為替代資本。力拓承擔了40%的擴建項目和少量的替換資本項目。我們已同意對其他項目進行 50-50 的分成。所以——這個問題其實沒有簡單的答案。但是，如果從現在開始一直到 2022 年，根據合資協議，轉換比例將直接達到 40%，之後將是 40-60 的合資份額，他們預計的現金流為…

Pretty much offset the CapEx.

幾乎抵銷了資本支出。

Pretty much offset the CapEx, and those are going to be based on whatever copper prices there are.

幾乎抵消了資本支出，這些將基於現有的銅價。

Your next question comes from the line of David Gagliano with BMO Capital Markets.

您的下一個問題來自 BMO 資本市場的 David Gagliano。

Just stepping back for a minute. Obviously, the balance sheet is significantly better than it was, stabilization in Indonesia at least seems to be heading in the right direction. And it's like quite a bit of free cash flow generation potential. Way back when the management team, the board did pay out this free cash, form of dividends, special dividends, pretty big ones at points. And obviously, on this call, your opening remarks were really more focused on highlighting the projects. So I have a high-class problem type of question. As we go through '18 and '19, is the preference to spend that cash on developing projects? Or is there also thoughts towards giving some of that back to the shareholders?

稍退一步。顯然，資產負債表比以前好得多，印尼的穩定至少似乎正朝著正確的方向發展。這就像是相當大的自由現金流產生潛力。很久以前，管理團隊和董事會確實以股息、特別股息的形式支付了這筆免費現金，有時金額相當大。顯然，在這次電話會議上，您的開場白實際上更側重於強調專案。所以我有一個高級問題類型的問題。當我們經歷'18和'19年時，是否傾向於將這些現金花在開發項目上？或者是否也考慮將其中一部分回饋給股東？

You know these projects are very long dated, Dave, I think, as you know. So we're not likely to be spending significant amounts of capital on these projects in '18 and '19. We're now building into our CapEx numbers, this Lone Star project, which is a good project but not huge. So with positive cash flows, my expectation was -- is and we're -- this is a board decision and we're talking with the board and this has emerged pretty quickly with the copper price coming back so quickly and so forth. But my expectations are that we would be looking at our long-term tradition of returning cash to shareholders. And we're going to be very disciplined about all these projects. They're big, they're low risk, but we're -- there is still risk to the global economy as we all know. And we're going to keep our finger on it, see how it's progressing, how China is doing, how the rest of the world is doing. And -- but my expectation is we're going to be generating cash and I believe our board will be predisposed to return it to shareholders when we can.

戴夫，你知道，這些項目已經持續了很長時間。因此，我們不太可能在2018年和2019年在這些項目上投入大量資金。我們現在正在將這個 Lone Star 項目納入我們的資本支出數字中，這是一個好項目，但規模並不大。因此，對於正現金流，我的預期是——是的，我們——這是董事會的決定，我們正在與董事會進行溝通，而且隨著銅價的迅速回升，這一結果很快就出現了。但我的期望是，我們將會秉承向股東返還現金的長期傳統。我們將非常嚴格地對待所有這些項目。它們規模大、風險低，但眾所周知，全球經濟仍存在風險。我們將持續關注，觀察其進展、中國的情況以及世界其他國家的情況。而且——但我的預期是我們能夠產生現金，我相信我們的董事會將傾向於在我們能夠的時候將現金回饋給股東。

Your next question comes from the line of Matthew Korn with Goldman Sachs.

您的下一個問題來自高盛的馬修·科恩。

At Grasberg -- a operational question. Given all the challenges in the last several quarters in the production side, maybe you can remind us, if nothing were to change from the current situation with the government, when would Rio's 40% stake kick in, would that be '22, '23 now? And then once the whole block cave is ramping and you're deep into maybe the next decade, everything as it should be, what kind of production delivery cost would you expect once we're there and solidly underground?

在格拉斯伯格——一個操作問題。考慮到過去幾季在生產方面面臨的所有挑戰，也許您可以提醒我們，如果政府目前的狀況沒有任何變化，力拓的 40％ 股份何時會生效，現在是 2022 年、2023 年嗎？然後，一旦整個礦洞開採開始，也許在接下來的十年裡，一切都會按照預期進行，當我們到達那裡並牢固地埋入地下時，您預計生產交付成本會是多少？

Okay. So the answer to your first question is 2022. And sort of when in 2022 is at the margin -- could vary. But it's going to be expected to be then. And our net cash cost at $1,300 gold and current levels of production is going to be in the neighborhood of...

好的。所以你第一個問題的答案是 2022 年。而 2022 年的具體時間可能會有所不同。但預計到那時就會發生。我們的淨現金成本為每盎司 1,300 美元，目前的生產水準將達到...

Below $0.50 a pound.

每磅低於 0.50 美元。

Okay. All right, got it. And then another thing that's come up as we've talked to a lot of companies is that the -- now that there's no tailwind from currency from oil, other kinds of improvement, other kinds of help on the price side or the cost side, people worry about wages, they worry labor, they worry capital goods. I'm curious if -- as you outlined your capital spending over the next couple of years, how much of that is on yellow goods? And how much of that will be exposed to say price that's not completely locked up or PPI linked? Or you still don't have [all] complete visibility there?

好的。好的，明白了。我們與許多公司交談時也發現，現在沒有石油貨幣的推動，沒有其他方面的改善，也沒有價格方面或成本方面的其他方面的幫助，人們擔心工資、擔心勞動力、擔心資本貨物。我很好奇——正如您概述的未來幾年的資本支出一樣，其中有多少用於黃色商品？其中有多少會受到尚未完全鎖定或與 PPI 掛鉤的價格的影響？或者您仍然沒有完全看到那裡？

Well, we do have in our capital plans this maintenance and replacement of trucks. We tend to do a lot of truck rebuilds ourselves with our dealers on parts.

嗯，我們的資本計畫中確實有卡車的維護和更換。我們傾向於與零件經銷商一起自行完成大量卡車的重建。

So there isn't -- in our sustaining capital, significant portion of that includes maintaining our equipment and replacing our equipment. We are seeing some cost inflation. You can just watch the oil price and are seeing some cost inflation from oil-related prices. But our team is very focused on being very disciplined about spending money both operating and capital and timing it in a way that we're not in a rush to get the equipment. We'll do it in a smart way and be disciplined about, again, just trying to use what we have on hand and the new stuff that comes in, just being disciplined about the timing of purchases of that equipment. But there is some cost inflation that's coming through both on operating and capital.

因此，在我們的維持資本中，很大一部分包括維護我們的設備和更換我們的設備。我們看到了一些成本膨脹。只要觀察一下油價，你就會發現與石油相關的價格會造成一定的成本上漲。但我們的團隊非常注重在營運和資本方面嚴格控制開支，並安排好時間，以免急於購買設備。我們會以一種聰明的方式來做這件事，並且嚴格遵守紀律，再次強調，我們只會嘗試使用我們手頭上已有的東西和新進來的東西，只是嚴格遵守購買這些設備的時間。但在營運和資本方面都出現了一些成本膨脹。

Yes, there's definitely some correlation between some of our input cost and copper price. I mean, we've got trucks from Indonesia, in New Mexico right now, and more on the way. Red, when's the last time we bought a haul trunk?

是的，我們的一些投入成本和銅價之間肯定存在一定的關聯。我的意思是，我們現在在新墨西哥州有來自印尼的卡車，還有更多的卡車正在運送途中。雷德，我們上次買行李箱是什麼時候？

2008 was the last new haul.

2008 年是最後一次新收穫。

New haul truck -- last new haul truck we bought was 2008. So we're having great experience with this rebuild program, we're working on extending tires lives. I mean, it's a constant deal. We meet as a senior management team with our mine operators the week before our earnings call and this relentless effort these people have to try to find ways of offsetting cost increases with efficiency gains is really remarkable. I mean, we use a lot of diesel, the power for many of our operations comes from not from petroleum. And so anyway, we're going to offset a good bit of that. But it's going to be a factor for the industry. We -- lots of years, we've been Caterpillar's biggest customer, I had a chance to glance over their earnings release early this morning. So I mean you can just see what's going on. And labor issues will be an issue. And one of the things in terms of the industry is next year, there is a lot of labor contracts coming up in this year. I keep saying next year. 2018, thanks, Red. This year, there are a lot of labor contracts in Chile and Peru coming up, and you can expect those negotiations to be challenging, it could be supportive from a supply standpoint. And CODELCO has a real challenge in maintaining production, all these things are challenges for the industry. But they're supportive of supply.

新的自卸卡車 —— 我們購買的最後一輛新自卸卡車是在 2008 年。我們對這個重建計劃有著豐富的經驗，我們正在致力於延長輪胎的使用壽命。我的意思是，這是一項持續的交易。在收益電話會議召開前一周，我們作為高級管理團隊與礦山運營商進行了會面，這些人為尋找通過提高效率來抵消成本增加的方法而做出的不懈努力確實令人驚嘆。我的意思是，我們使用大量柴油，我們許多作業的動力並非來自石油。所以無論如何，我們都會抵銷相當一部分影響。但這會成為影響該行業的因素。很多年來，我們一直是卡特彼勒最大的客戶，今天早上我有機會瀏覽了他們的收益報告。我的意思是你可以看到正在發生的事情。勞動力問題也會成為一個問題。就產業而言，明年將會有大量勞動合約簽訂。我一直說明年。2018，謝謝，Red。今年，智利和秘魯即將簽署大量勞動合同，你可以預期這些談判將充滿挑戰，從供應的角度來看，這可能會有所幫助。CODELCO 在維持生產方面面臨著真正的挑戰，而這一切都是產業面臨的挑戰。但他們支持供應。

Your next question comes from the line of Andreas Bokkenheuser with UBS.

您的下一個問題來自瑞銀的 Andreas Bokkenheuser。

Just a question on Grasberg there as well. You mentioned that the Indonesian government has agreed to pay fair market value or it would consider the divestment at fair market value. It always seemed that they did agree to fair market value but their fair market value estimate was always much lower than yours. Would you say that effectively you have now agreed on a fair market value for the divestment or are you still somewhat apart on that issue? That's the first question.

我同樣也想問關於格拉斯伯格的問題。您提到印尼政府已同意支付公平市場價值，或將考慮以公平市價進行撤資。他們似乎總是同意公平市場價值，但他們的公平市場價值估計總是比你的低得多。您是否認為現在你們實際上已經就資產剝離的公平市場價值達成了一致，還是您在這個問題上仍然存在分歧？這是第一個問題。

Let me answer that. Let's go ahead and answer as you raised them. So one thing -- and those of you who are veterans at this, know this. You know there are lots of things that come out in the Indonesian press that are comments by people either in government or in business who are not directly involved in the process. So be cautious in overreacting to things that you might see that are said. Now we have not had a negotiation involving an exchange of values and so forth with the government of Indonesia on divestment values. What we have agreed to is a recognition that the standard for those negotiations would be, as they are in all of the negotiations that we have, standards related to the way sources are valued in global market. So this idea of limiting the valuation to 2021, when our primary term of our contract ends, are saying, you don't take into account reserves and so forth. All of those things are not part of the discussion any longer. The government has appointed internationally known financial advisers to work with them in this process. And they are being engaged, and it's being additive to the process. So while we have not negotiated value now, this issue with our joint venture partner really changes what the divestment obligation from Freeport would otherwise be. And so that negotiation is of much less significance to us than it would be if we were having to divest 51% of PT-FI. So all of that is in play. All of us had hoped that this would progress more by the end of 2017 but the government concluded they needed to go through a due diligence process and we're working very cooperatively with the government and its advisers on that process right now. So while we can't say that there's been this give and take or specifics on values, I do feel comfortable that the values that will be negotiated will be reasonable.

讓我來回答這個問題。讓我們繼續回答您提出的問題。所以有一件事——你們中那些對此很熟悉的人都知道這一點。你知道，印尼媒體報導的很多事情都是未直接參與這一過程的政府或商界人士的評論。因此，對於您可能看到的過度反應，請謹慎。目前我們還沒有與印尼政府就撤資價值進行涉及價值交換等的談判。我們一致承認，這些談判的標準將是與全球市場上資源的估價方式相關的標準，就像我們進行的所有談判一樣。因此，將估值限製到 2021 年（即我們合約的主要期限結束時）的想法是，不考慮儲備金等。所有這些事情都不再是討論的內容了。政府已任命國際知名的財務顧問與他們合作完成這項程序。他們正在參與其中，並為這一進程做出貢獻。因此，雖然我們現在還沒有就價值進行談判，但我們與合資夥伴之間這個問題確實改變了自由港的撤資義務。因此，對我們來說，這場談判的意義遠不如我們必須剝離 PT-FI 51% 的股份那麼大。所有這些都在發揮作用。我們所有人都希望這能在 2017 年底取得更多進展，但政府認為他們需要經過盡職調查程序，我們目前正與政府及其顧問就該程序進行密切合作。因此，雖然我們不能說雙方在價值觀上有這種互相妥協或具體細節，但我確實相信，談判達成的價值觀將是合理的。

That's very clear. And just a second question and I'll just talk about something other than just Grasberg. In your Americas operations, we did see a bit of a drop in [mill grades] and recovery rates as well, which is something you've guided for before. Can you give us a sense of, is this mostly just one-off or is there some sustainability to it on the operational side?

這非常清楚。這是我第二個問題，我想談論格拉斯伯格以外的其他事情。在你們位於美洲的業務中，我們確實看到（工廠品位）和回收率都有所下降，這也是你們之前所預期的。您能否告訴我們，這主要是一次性的嗎，還是在營運方面具有一定的可持續性？

Yes, Andreas, this is Red. We did have lower recovery primarily at Cerro Verde in the last quarter. We took ore out of stockpiles in an area in the mine where the material had been oxidized somewhat and didn't recover as well, we don't see that as an ongoing thing in the future. We've also got some changes in mining rates and those kinds of things right now that are making the numbers jump around a little bit quarter-to-quarter. That's all going to even out as we go forward.

是的，安德烈亞斯，這是紅色。上個季度，我們的採收率確實較低，主要是在塞羅韋爾德 (Cerro Verde)。我們從礦井某個區域的庫存中取出礦石，這些礦石已經被氧化了，而且恢復得不好，我們認為這種情況不會在未來持續下去。目前，採礦率等也發生了一些變化，導致數字逐季度出現小幅波動。隨著我們不斷前進，一切都會好起來。

But as we look at the guidance going out for the Americas business, our numbers are relatively flat in terms of copper production. And that's sustainable over several years.

但當我們查看美洲業務的預期時，我們發現銅產量相對持平。而且這種狀況可以持續好幾年。

Over several years. We are -- it's not big numbers but we're bringing up Sierrita mine and with higher moly prices, its cost structure is attractive. And then I've pointed it out, in El Abra we are -- we curtailed production at both those operations when prices drop lower, we're building those back up and then coming into play. Over time will be this Lone Star project, which has cost structure that's right in the neighborhood of our current level cost structure so...

幾年來。我們 — — 雖然數字不大，但我們正在開發 Sierrita 礦，而且由於鉬價較高，其成本結構很有吸引力。然後我指出，在 El Abra 我們——當價格下跌時，我們會削減這兩個業務的產量，然後重新恢復生產並開始發揮作用。隨著時間的推移，這個孤星計畫的成本結構與我們目前的成本結構非常接近，所以...

Your next question comes from the line of Chris Mancini with Gabelli and Company.

您的下一個問題來自 Gabelli and Company 的 Chris Mancini。

Just a first quick question is just relative to this potential framework that you're talking about with Rio Tinto, and the Indonesian interest having that 40% stake post 2022. Just to be clear, so even if something were to be agreed to, say, in the next few months, Freeport would still have -- would have 90 -- would have the right to 90% or 90.5% of the economics of Grasberg until 2022 or whenever Rio's stake would kick in, right?

第一個快速問題是關於您與力拓討論的潛在框架，以及印尼將在 2022 年後持有 40% 的股份。需要明確的是，即使在未來幾個月內達成某些協議，自由港仍然有權享有格拉斯伯格 90% 或 90.5% 的經濟利益，直到 2022 年或者力拓的股份開始生效時，對嗎？

Yes. Now that is not a certain percent. That varies because of this metal strip concept that was part of the original contract, but what I'm saying is that we have an understanding that we will maintain the economics for Freeport that's embedded in the current joint venture structure. And there are structures that might change how that's done, but we review that, we had very good discussions with the Indonesian, explained it to them, explained it how important it is to us because we worked all this time to benefit from this period, and so they understand it. And we have an understanding that our participation will not be diminished in the event of their acquisition of the Rio Tinto interest.

是的。這不是一個特定的百分比。這是因為原始合約中的金屬條概念有所不同，但我想說的是，我們達成共識，我們將維持當前合資企業結構中嵌入的自由港經濟。有一些結構可能會改變這一做法，但我們回顧了這一點，與印尼人進行了非常好的討論，向他們解釋了這一點，解釋了這對我們的重要性，因為我們一直致力於從這一時期受益，所以他們理解這一點。而我們有共識，即使力拓收購了其股權，我們的參與度也不會減少。

Okay, great. And just a quick question about Lone Star. So you've made the decision to proceed with the project, $850 million. And it's around 200 million pounds of copper a year. Could you just maybe describe your thought process relative to like how you think about approving certain projects relative to their -- the IRR or the NPV of the project? And what copper prices you use? And just generally speaking, how you evaluated the decision to invest the capital on that project? And maybe how that might apply to, say, your next project like El Abra or something like that?

好的，太好了。還有一個關於 Lone Star 的簡單問題。所以你決定繼續這個耗資 8.5 億美元的計畫。每年約有2億磅銅。您能否描述一下您的思考過程，例如您如何考慮批准某些項目，相對於專案的 IRR 或 NPV？您使用的銅價是多少？整體來說，您如何評價對該專案投資的決定？這可能適用於您的下一個項目，例如 El Abra 或類似的項目嗎？

Well, it was a much easier decision, let me just say, with Lone Star than the next decisions will be. And that's because we had this unused, underutilized processing facilities at the Safford mine that was nearby. So we didn't have to invest in a new SXEW facility and so forth. So it was a pretty straightforward deal. You had -- this is near-surface oxide material. You just need to determine how you mine it, how you transport it to the facilities, the rates of return are very attractive. And it had the added benefit, as I said, of then exposing the sulfide ore, which would give us an option for future development of that. Around the world today, a lot of the newer deposits tend -- most of the significant oxide projects have been developed, and so you're looking at sulfide deposits and frequently you're faced with a very large expense of stripping those to have that opportunity. Here, our stripping is going to generate positive return for us. It's going to add volumes, attractive cost and serve for the stripping thing. So it was an easier decision.

好吧，我只想說，對於《孤星》來說，這是一個比接下來的決定容易得多的決定。這是因為我們在附近的薩福德礦場擁有未使用的、未充分利用的加工設施。因此我們不需要投資新的 SXEW 設施等等。因此這是一筆非常簡單的交易。你有——這是近表面氧化物材料。你只需要確定如何開採它，如何將它運送到設施，回報率非常有吸引力。而且正如我所說的，它還有一個額外的好處，就是可以暴露硫化礦，這為我們未來的開發提供了一個選擇。在當今世界，許多較新的礦床趨於——大多數重要的氧化物項目都已得到開發，因此，您正在研究硫化物礦床，並且通常要花費巨額費用來剝離這些礦床才能獲得這一機會。在這裡，我們的剝離將為我們帶來正回報。它將增加產量、具有吸引力的價格並用於剝離作業。因此這是一個更容易的決定。

In looking at projects in general, we don't focus on any particular price. Now reserves are based on a $2 price. We talk about changing it but that's kind of a regulatory disclosure issue, and there's no sense in going through a huge internal exercise of raise the copper price to $2.25 or $2.50. I mean, but when we come down to really thinking about investing in El Abra or in Lone Star sulfide or Bagdad sulfide or the next step at Morenci, we look at an array of prices and not just how that fits in with that project but how it fits in with our overall portfolio. So that we think how would we manage this if things got tougher after we've spent the capital. Can we deal with it? And then we have a positive long-term view of copper, so we want to take advantage of this. And so we have the optionality of having these big projects to participate in the long run. So I'm kind of like that ad for the insurance company, the Farmers Insurance company, I know a thing or two because I've seen a thing or two. And the -- my experience has been when companies get too formula driven about hurdle rates and prices and things like that, there's another saying I have around here is, "figures don't lie but liars figure." And so if you get too structured like that, people are going to play the games with you, sometimes not intentionally, to come up with something that meets those formulas. So we go away from formulas. We work together. What I love about our team is, we're not negotiating between operators and corporate. And Kathleen works with her team hand in hand with these people -- with our team as we're working at looking at this. And then we think about, okay, if we expose this capital, what risk are we taking for the company going forward? How does it fit in with the rest of our assets? That's why we felt good about the Tenke project. You know it was high-risk, high-return deal when nobody else was going into the Congo. We didn't give any value to it when we bought Phelps Dodge, I wish we still own it, but we did get almost $3 billion of value created. During it -- we started this in early 2008. So given the financial crisis and what's happened with commodity prices it was a good deal. But we recognized it was very high risk because of the political situation, the nature of the ore body and the mineralization, which was different than others. So that's -- it's much more of interactive process we have than something that's formula driven.

在整體審視項目時，我們不會注意任何特定的價格。現在儲備價格以 2 美元為基準。我們討論過改變它，但這是一種監管披露問題，透過大規模的內部行動將銅價提高到 2.25 美元或 2.50 美元是沒有意義的。我的意思是，但是當我們真正考慮投資 El Abra 或 Lone Star 硫化物或 Bagdad 硫化物或 Morenci 的下一步時，我們會考慮一系列價格，不僅要考慮它如何與該項目相適應，還要考慮它如何與我們的整體投資組合相適應。所以我們思考，如果在花完資金之後情況變得更艱難，我們該如何處理。我們能解決它嗎？我們對銅的長期前景持樂觀態度，因此我們想利用這一點。因此，我們可以選擇長期參與這些大型專案。所以我有點像那家保險公司、農民保險公司的廣告，我知道一兩件事，因為我看過一兩件事。而且——我的經驗是，當公司過於注重回報率和價格等公式時，我這裡的另一句話是「數字不會說謊，說謊的人會說謊數字」。因此，如果你的行為過於條理化，人們就會跟你玩遊戲，有時並不是故意的，但你會想出一些符合這些公式的東西。因此，我們不再使用公式。我們一起工作。我喜歡我們團隊的一點是，我們不是在營運商和企業之間進行談判。凱瑟琳和她的團隊與這些人——以及我們的團隊攜手合作，共同研究這個問題。然後我們想想，好吧，如果我們暴露這些資本，我們將為公司未來的發展承擔什麼風險？它與我們的其他資產如何相適應？這就是我們對 Tenke 專案感到滿意的原因。你知道，當沒有其他人進入剛果時，這是一項高風險、高回報的交易。當我們收購菲爾普斯道奇時，我們並沒有賦予它任何價值，我希望我們仍然擁有它，但我們確實創造了近 30 億美元的價值。我們在 2008 年初就開始做這件事了。因此，考慮到金融危機和大宗商品價格的走勢，這是一筆很好的交易。但我們認識到，由於政治局勢、礦體性質和礦化作用與其他礦體不同，風險非常高。所以 — — 我們擁有的更多的是一個互動的過程，而不是公式驅動的過程。

And the [Lone Star] project fits right into our strength in terms of the geographic footprint where we're already operating. There are a lot of synergies of the Safford team with the Lone Star team. And one of the big things we look at in qualifying projects is the size of the resource and the life of the project. And just because something has a high NPV, but if it has a short life, it's not something that we are excited about exposing dollars to. It's more of multiples of NPV that you can get over a long period of time. So that's really something that excites us. And looking at a range of copper prices, like with Lone Star, just for the oxide it has a breakeven of $2.40 with an 8% return with a lot of exposure to higher prices, but also exposure to the big resource that Richard talked about earlier.

就我們現有的營運地理覆蓋範圍而言，[Lone Star] 專案非常契合我們的優勢。薩福德團隊和孤星團隊有很多協同作用。在評估專案資格時，我們關注的重點之一就是資源的規模和專案的壽命。而且，雖然某樣東西有很高的淨現值，但如果它的壽命很短，我們就不會願意投資它。它更多的是您可以在很長一段時間內獲得的 NPV 的倍數。這確實是一件令我們興奮的事。看看 Lone Star 等一系列銅價，僅氧化物一項，其盈虧平衡點就為 2.40 美元，回報率為 8%，而且價格上漲的風險很大，而且理查德之前談到的大型資源的風險也很大。

Sure. So Lone Star really is just a low risk from a jurisdictional perspective, from a technical perspective, and it just provides you with lots of optionality to the upside, and so it just made sense to spend that capital. And then as these other projects kind of become available, you just have to weigh all of those different things in terms of the risk to completing it, the risk to operating it, the optionality and whatnot.

當然。因此，從司法角度和技術角度來看，Lone Star 的風險確實很低，而且它為您提供了許多上行選擇，因此花費這筆資金是合理的。然後，隨著這些其他項目的推出，您只需權衡完成風險、營運風險、可選性等所有不同因素。

Exactly.

確切地。

You got it.

你明白了。

Your next question comes from the line of Michael Gambardella with JPMorgan.

您的下一個問題來自摩根大通的 Michael Gambardella。

A couple of questions on Grasberg. But first, just congratulations on derisking of the balance sheet and all (inaudible) work in the last couple of years, that's been significant. I was looking back to the Grasberg. I just wanted to clarify I think what I heard you say before. So in terms of your agreement with the government right now, has the government formally agreed that if your stake were to go under 50% that you would still maintain operating control?

關於格拉斯伯格的幾個問題。但首先，我要祝賀資產負債表風險的降低以及過去幾年的所有（聽不清楚）工作，這是意義重大的。我正回望格拉斯伯格。我只是想澄清一下我之前聽到你所說的話。那麼就您目前與政府達成的協議而言，政府是否正式同意，如果您的股份低於 50%，您仍將維持經營控制權？

Yes. Well Mike, I want to be clear about this. In some ways, I'd like to just say, we're working on this and defer comments. But I know we're just not in the position to do that. We're not in a position to it with people who follow us and our shareholders, and the Indonesian government has to respond to the -- they have to respond to their parliament. So we all have constituencies that we have to talk about these things when things aren't finally complete. I've tried to use the word understandings because while we did agree on a framework, we don't have formal agreements with the government yet. And there are still issues under discussion. And we've been very clear on our position. We believe we have gained a degree of understanding from the government. But there are different views within the government's team, the government itself. So this issue of control is one that's very important to us. Just because of the factors that I mentioned earlier, the nature of the project. The importance of having a disciplined investment in this underground. If -- without having a disciplined approach to the underground investment, the value of this asset dissipates. I mean, because this -- as you know well, Mike, when you're dealing with these big projects, and particularly, Block Cave projects, you have to follow a plan and stick to it and deal with the long term. So that's one thing that -- the main thing that we're saying is, we have to be able to sustain that approach to investing and running this business. It is unusual but not -- but there are other limited cases of where investors own more than 50% of an asset economically and control is transferred to a minority owner. So that's complicated, and all of that hasn't been worked out yet. But that -- so I don't want to say that we have a formal agreement with the government on that. And again, you'll see comments on that in the press, that talk about that. We are committed to have a very successful partnership with the government, with their state-owned company. We pointed to them what good partners Freeport has been in all of our operations, whether it's our multi-project partnership with Sumitomo, with our partnership with Lundin that we had in the Congo, with various partners we have in Cerro Verde, with the partnership with CODELCO in Chile. I mean, we do a lot of work with Rio Tinto. We've had an excellent partnership with Rio Tinto. And the government really recognizes our operating capabilities and the need to have us to continue. So there's no question about that. It's this issue of how we work together in developing corporate policies and capital allocation, financial policy, purchasing policies, environment, all those things that are so important to success in the operations. So Mike, that will be part of the final agreement, and that's where we stand right now, and that's what our position is.

是的。好吧，麥克，我想清楚地了解這一點。從某種程度上來說，我只想說，我們正在努力解決這個問題，並推遲發表評論。但我知道我們沒有能力做到這一點。我們無法與跟隨我們的人和股東達成這項協議，而且印尼政府必須對此作出回應——他們必須對其議會作出回應。因此，當事情尚未最終完成時，我們都必須談論這些事情。我嘗試使用「諒解」這個詞，因為雖然我們確實就框架達成一致，但我們尚未與政府達成正式協議。還有一些問題正在討論中。我們的立場非常明確。我們相信我們已經獲得了政府一定程度的理解。但在政府團隊內部，政府本身也有不同觀點。所以這個控制問題對我們來說非常重要。只是因為我之前提到的因素，項目的性質。對地下進行有紀律的投資非常重要。如果沒有採取規範的地下投資方法，這種資產的價值就會消失。我的意思是，因為這個——麥克，你很清楚，當你處理這些大項目時，特別是 Block Cave 項目，你必須遵循計劃，堅持下去，並專注於長期發展。所以，我們要說的主要一點是，我們必須能夠維持這種投資和經營業務的方式。這種現象並不常見，但也有其他有限的案例，即投資者在經濟上擁有超過 50% 的資產，而控制權則轉移給少數所有者。所以這很複雜，而且所有問題都還未解決。但那—所以我不想說我們就此事與政府達成了正式協議。您會在媒體上看到有關此事的評論。我們致力於與政府及其國有企業建立非常成功的合作關係。我們向他們指出了自由港在我們所有業務中都是良好的合作夥伴，無論是與住友的多項目合作夥伴關係，還是與剛果的倫丁的合作夥伴關係，還是與塞羅韋爾德的各種合作夥伴的合作夥伴關係，以及與智利的 CODELCO 的合作夥伴關係。我的意思是，我們與力拓集團有許多合作。我們與力拓集團保持良好的合作關係。政府確實認可我們的營運能力以及我們繼續營運的必要性。因此對此毫無疑問。這個問題是關於我們如何共同製定公司政策和資本配置、財務政策、採購政策、環境等對於營運成功至關重要的事情。所以麥克，這將是最終協議的一部分，這就是我們目前的立場，這就是我們的立場。

From an economic standpoint, say, let's just assume, Rio Tinto signs the deal with the government. Is it your understanding that from an economic perspective, aside from (inaudible) smelter, aside from that, (inaudible) your understanding the economics of your agreement (inaudible) as they are today and there's no change (inaudible) or is there anything else that would (inaudible)

從經濟角度來看，假設力拓與政府簽署了協議。您是否認為，從經濟角度來看，除了（聽不清楚）冶煉廠，除此之外，（聽不清楚）您對協議經濟性的理解（聽不清楚）與今天一樣，沒有任何變化（聽不清楚）或還有其他什麼（聽不清楚）

Yes, that's -- we have had good discussions. We spent time explaining this and so forth, so that -- the acquisition of the Rio Tinto interest would not change our economics. Now in the framework for reaching the long-term agreement, we have said that we would agree that the government's financial benefits from the project will increase. These things may be reshuffled and reorganized in certain ways. But at the end of day there would be -- the government will be able to say to the people of Indonesia, they've negotiated a larger participation. And that larger participation would come through the fact that we are paying higher -- we would be paying royalties than under [the cow]. And in fact, we've already been paying these higher royalties since mid-2014. But the royalties would be -- they used the term more than we do, but the royalties would be nailed down. In other words, we'll agree on the royalties today, and that would be the royalties for the remainder of the project. We agree on tax elements now and we made a lot of progress in defining them. We agree on local taxes and fees. All that would be nailed down.

是的，我們進行了很好的討論。我們花了很多時間解釋這些事情，讓收購力拓的權益不會改變我們的經濟狀況。現在在達成長期協議的框架中，我們表示同意政府從該計畫中獲得的經濟利益將會增加。這些事物可能會以某種方式被重新洗牌和重組。但最終政府將能夠告訴印尼人民，他們已經協商獲得了更大的參與。而更廣泛的參與將源自於我們支付的費用更高——我們將支付比「乳牛」時代更高的特許權使用費。事實上，我們從 2014 年中期就已經開始支付更高的版稅了。但是版稅會——他們比我們使用這個術語的次數更多，但版稅會被確定。換句話說，我們今天就版稅達成一致，這將是該項目剩餘部分的版稅。我們目前已就稅收要素達成一致，並在定義稅收要素方面取得了巨大進展。我們同意當地的稅費。所有這一切都將被確定下來。

(inaudible) the final question, Grasberg but (inaudible) board (inaudible) someone give us a feel for after tax situation. (inaudible) I thought you (inaudible) through a (inaudible) entity.

（聽不清楚）最後一個問題，格拉斯伯格，但是（聽不清楚）董事會（聽不清楚）有人跟我們介紹一下稅後狀況。（聽不清楚）我以為你（聽不清楚）透過一個（聽不清楚）實體。

No. Well -- so Mike, you were fading out so if I don't cover your question, come back and ask me to fill in. So the way that our tax situation has been structured. I mean, we are -- FCX is a U.S. company. Then we operate in these countries where we have mines through entities in those countries. And those entities are subject to taxes and royalties in those countries. Then under the previous tax law, you would consolidate all of that into a U.S. company and you'd have a consolidated tax calculation, but you'd get foreign tax credits for taxes that you pay internationally. And then -- and there was limitations on that. There was this alternative minimum tax calculation that would come into play. But then you would calculate the U.S. tax on the basis of that consolidated results. Now under the new tax laws, they've gone to a territorial system. And so now in large part, the U.S. taxes will be based on the taxes for the income you generate within the U.S. [to the U.S.] And within the U.S., we have a very large loss carryforward. We also have the benefit of percentage depletion, which was left in the law and the AMT was repealed. So we will have no taxes for as far as you can see in the U.S. We will continue to pay the taxes in these individual countries based on their own tax laws and our stabilization agreements and so forth. Did it cover it, Mike?

不。好吧 - 麥克，你剛才沒有回答你的問題，所以如果我沒有回答你的問題，請回來讓我補充一下。我們的稅務狀況就是這樣構成的。我的意思是，我們——FCX 是一家美國公司。然後，我們透過這些國家的實體在我們擁有礦山的國家開展經營活動。這些實體須在這些國家繳納稅金和特許權使用費。然後根據先前的稅法，您會將所有這些合併到一家美國公司中，並且會有一個合併的稅務計算，但是您將獲得在國際上繳納的稅款的外國稅收抵免。然後——並且存在局限性。有一種替代性的最低稅計算方法可以發揮作用。但隨後您將根據合併結果計算美國稅。現在，根據新的稅法，他們已經轉向屬地稅制。因此，現在在很大程度上，美國的稅收將基於您在美國境內產生的收入所徵收的稅，並且在美國境內，我們有非常大的虧損結轉。我們也享有百分比耗竭的好處，這項福利保留在法律中，而替代最低稅則已被廢除。所以就你在美國所見，我們暫時不需要繳稅。 我們將繼續根據這些國家自己的稅法和我們的穩定協議等向這些國家繳稅。它涵蓋了嗎，麥克？

Yes, that covers it.

是的，就是這樣。

Okay.

好的。

Your next question comes from the line of Lucas Pipes with B. Riley FBR.

您的下一個問題來自 B. Riley FBR 的 Lucas Pipes。

Congrats on the progress in Indonesia. I was unfortunately on another call earlier, and this may have been addressed, but I wanted to touch on it and that's -- I remember that there were export royalties in place while you were negotiating the new structure in Indonesia. And I wondered, to what extent is that currently being covered in the negotiations? And Kathleen, when you gave the $0.50 per pound cost guidance for, I think, 2022, would that include all of those royalty costs in case they're even applicable?

祝賀印尼的進步。不幸的是，我之前還在接聽另一個電話，這個問題可能已經解決了，但我想談談這個問題，那就是——我記得在你們與印尼談判新結構時，已經實施了出口特許權使用費。我想知道，目前的談判在多大程度上涉及了這個問題？凱瑟琳，當您給出 2022 年每磅 0.50 美元的成本指導價時，這是否包括所有特許權使用費（如果它們適用）？

Well, we are paying duties currently, export duties currently. And those will phase out once the smelter gets to a certain percentage. So post 2022, and we have the smelter, the new smelter completed in that time frame, all of the concentrates will be treated domestically, and there won't be a need to export concentrates and there'll be no duty. But we do have duties in our current guidance for 2018 and 2019.

嗯，我們目前正在繳納關稅，目前正在繳納出口關稅。一旦冶煉廠達到一定比例，這些就會逐步淘汰。因此，在 2022 年之後，我們將建成冶煉廠，新的冶煉廠也將在這段時間內完工，所有的精礦都將在國內處理，不需要出口精礦，也不會產生關稅。但我們在 2018 年和 2019 年的現行指導方針中確實有職責。

And could you remind me about approximately what amount per pound those duties are?

您能否提醒我每磅關稅大約是多少？

You can see it -- well, we're paying roughly just on the export volumes, we're paying roughly 5% currently. And you can see in our -- and I'll get David to follow up on the exact numbers, but in our operating summary, we paid $0.34 and that included royalties and export duties, but we'll get you the breakout.

您可以看到 - 我們大致僅根據出口量支付，目前我們支付約 5%。您可以在我們的報告中看到——我會讓大衛跟進確切的數字，但在我們的營運摘要中，我們支付了 0.34 美元，其中包括特許權使用費和出口關稅，但我們將為您提供明細。

You may understand this, but just to be clear for everybody. Roughly 40% of our production at Grasberg is processed at the PT Smelting facility at Gresik that we built in the mid-90s in partnership with Mitsubishi and other Japanese investors. There's no export duty on that. It's only on exports. And in your question, you were talking about royalties and export fees. I mean, we do have a royalty that is assessed on all the production. It's unrelated to exports, and then there's -- we called it an export duty, which has been the item of controversy that we've had over the last 3.5 years.

您可能理解這一點，但只是為了讓每個人都清楚。格拉斯伯格大約 40% 的產量是在 Gresik 的 PT 冶煉廠加工的，該廠是我們於 20 世紀 90 年代中期與三菱和其他日本投資者合作建造的。此項產品無出口關稅。這僅適用於出口。在您的問題中，您談到了版稅和出口費。我的意思是，我們確實對所有生產都徵收版稅。它與出口無關，然後有——我們稱之為出口稅，這是我們過去 3.5 年一直爭論的話題。

But the export duty -- I'm just looking at the numbers, the export duty that's in our numbers for PT-FI is just under $200 million for 2018.

但是出口關稅——我只是看了數字，我們數據中 PT-FI 的出口關稅在 2018 年略低於 2 億美元。

It's very helpful. And then maybe just to tie up some loose ends. I recall there was a $350 million Cerro Verde royalty dispute. Has that been settled? Could you give us an update on that?

這非常有幫助。然後也許只是為了解決一些遺留問題。我記得曾經發生過價值 3.5 億美元的 Cerro Verde 特許權使用費糾紛。那件事已經解決了嗎？能向我們介紹一下最新情況嗎？

There's really no update from our fourth quarter release, I mean, from our third quarter release. We are continuing to work with the government officials to -- on a settlement that would waive penalties and interest associated with that dispute. And those discussions are ongoing but there's no update at this time.

我們的第四季度發布版本確實沒有任何更新，我的意思是，與第三季發布版本相比沒有任何更新。我們將繼續與政府官員合作，達成解決方案，免除與該爭端相關的罰款和利息。這些討論仍在進行中，但目前尚無最新消息。

And Lucas, that $200 million would reduce our taxable income. So that's a pretax number.

盧卡斯，這 2 億美元將減少我們的應稅收入。這是稅前數字。

Your next question comes from the line of Michael Dudas with Vertical Research.

您的下一個問題來自 Vertical Research 的 Michael Dudas。

Richard, just wanted to follow up on your thoughts on the transition from the pit to underground. You seemed much more confident about that and derisking. What are some of the [absolutes] that you achieved and what are some that we may look for as we look into the fourth quarter of '18, into the first half of '19 on the progress and the flow?

理查德，我只是想了解你對於從坑內到地下的轉變的想法。您似乎對此和降低風險更有信心。您取得了哪些絕對成就？

All right. So that's why we added this slide. I think it's the first time we've used it. What was the slide number?

好的。這就是我們添加這張投影片的原因。我想這是我們第一次使用它。投影片編號是多少？

On the milestone?

在里程碑上？

Yes, on the milestone.

是的，這是一個里程碑。

Slide 19.

幻燈片 19。

Look at Slide 19. Mark, do you want to?

請參閱投影片 19。馬克，你想這麼做嗎？

Yes, a lot of the challenge in the Grasberg Block Cave, the Ore Flow system, as Richard indicated, the rail system is ready to be commissioned. The conveyers (inaudible), the crusher is already in place. The conveyers will be complete all the way up to the mill in May. So we'll have 6 months there where we'll be able to just convey development muck, which is significant, we're mining about 6,000 to 7,000 tonnes a day right now just in developing drifts. The access to the ore body is extensive in the undercut, the extraction level. We've got the service level, the ventilation is in place. So there's -- all the pieces are there. What we're going to start doing in the late fourth quarter is that we'll start blasting in the undercut, and then in the beginning of 2019 we'll start taking drawbells and actually start pulling the material. The cave should develop very quickly. The area in which we're initially developing the ore body is in a very caveable portion of the deposit. And at that point when we start that, then the pit will be essentially done. There's a little bit of an overlap right now that we've reviewed with our consultants, we feel that there can be like a 3-month overlap of ongoing pit operations. While Block Cave, some of this blasting, some of this very -- the initial starting of the Block Cave can go on without any impacts. We've got a very good plan for managing the water from the pit. We've been able to demonstrate that we can get the water out of the pit before the cave starts up. So there's a whole network or there's a whole list of things that we've been checking off over the last year and a lot of it's been really just getting these meters of development. We did over 30 kilometers of development last year. That drops down a little bit this year as we get the ore body developed, so we'll be doing about 2,200 meters a month. And all of that just is moving along very well.

是的，格拉斯伯格礦洞開採中存在著許多挑戰，礦石流系統也存在著許多挑戰，正如理查德指出的那樣，鐵路系統已經準備好投入使用。傳送帶（聽不清楚）、破碎機已經就位。到五月為止，傳送帶將延伸到工廠。因此，我們將有 6 個月的時間在那裡運送開發礦漿，這是很有意義的，目前，僅在開發巷道中，我們每天就能開採大約 6,000 到 7,000 噸。在底部掏挖層和開採層面，通往礦體的通道十分廣泛。我們達到了服務水平，通風也到位了。所以 — — 所有的零件都在那裡。我們將在第四季末開始在底切處進行爆破，然後在 2019 年初開始收緊拉鈴並開始拉動材料。這個洞穴應該會發展得非常快。我們最初開發礦體的區域位於礦床非常易塌陷的部分。當我們開始這樣做的時候，坑基本上就建好了。目前存在一些重疊，我們已與顧問進行了審查，我們認為正在進行的礦坑作業可能會有 3 個月的重疊。在進行 Block Cave 施工時，一些爆破、一些非常——Block Cave 施工的初始階段可以繼續進行而不會產生任何影響。我們有一個非常好的計劃來管理坑水。我們已經能夠證明，我們可以在洞穴形成之前將坑中的水排出。所以，我們在過去的一年裡一直在檢查整個網路或一整套事項，其中許多實際上只是為了獲得這些發展指標。去年我們完成了30多公里的開發。今年，隨著礦體的開發，開採量會有所下降，每月開採量約為 2,200 公尺。所有一切進展順利。

And the big deal in 2018 will be the installation of the Ore Flow and the rail.

2018 年的大事是安裝礦石流和軌道。

That's right. The shaft is commissioned. We're using that for people. And so all these projects are all just starting to come together. The big one will be the Ore Flow system getting that. And we're doing that a little earlier than what we originally planned and it's just to get the congestion out of the underground. It will be a much more efficient way of getting development muck out and getting men and materials in.

這是正確的。豎井已投入使用。我們將其用於人們。所有這些項目都剛開始匯集在一起。最重要的是礦石流動系統能夠實現這一點。我們比原計劃提前一點做這件事，只是為了緩解地鐵擁堵。這將是清除開發廢物並運送人力和材料的更有效的方法。

Great, that's very encouraging. And my follow-up, Richard is, I think we all on the call are hoping someday these conference calls will be little less detailed on the negotiations with Indonesia, et cetera. If something comes together or however it comes together, how is it you think it's going to be announced? And what's the time frame from, say, there was a -- if it was announced tomorrow, how long it would take to get everything cleaned up? And where there's certain deadlines, et cetera? How long of a process and how clean of a process you think it will be if you can speculate towards that -- towards a conclusion of this derisking?

太好了，這非常令人鼓舞。我的後續問題是，理查德，我想我們所有參加電話會議的人都希望有一天這些電話會議能夠少談一些與印尼等國的談判細節。如果某件事發生了或不管怎樣發生了，您認為它會以什麼方式被宣布？那麼時間範圍是怎麼樣的呢，比如說，如果明天宣布，那麼需要多長時間才能解決所有問題？那裡有一定的截止日期等等？如果你可以推測這個過程會持續多久、過程有多清晰——朝著降低風險的結論前進？

Sure. And Michael, you're talking about milestones, I have 2 personal milestones I'll share with you. One is when we start paying dividend -- when Freeport starts paying a dividend again. And two, it's when I can take a group of analysts and shareholders back out to Grasberg to see the place. This underground mine, Mike Gambardella, you remember our trip we had a number of years ago out there, but this underground mine is really spectacular. I mean, it is not like anything you would think of as an underground mine, but it's like a major manufacturing facility to see. And so anyway, I just -- Michael, it's just what I'm saying, but okay...

當然。邁克爾，你談到里程碑，我有兩個個人里程碑可以與你分享。一是當我們開始支付股息時——當自由港再次開始支付股息時。第二，我可以帶一群分析師和股東再次前往格拉斯伯格參觀。這個地下礦，麥克甘巴德拉，你還記得我們幾年前去那裡的旅行嗎，這個地下礦場真的很壯觀。我的意思是，它並不像你想像中的地下礦井，而像是大型製造工廠。所以無論如何，我只是——邁克爾，這就是我要說的，但好吧......

Those are great milestones.

這些都是偉大的里程碑。

Yes. Actually given the authority that the President has given to these ministers, reaching an agreement is the key and documenting of things we've already worked on. I mean, we've gotten the form of the IUPK we're working on, there's an attachment. There is a -- coming up with a structure to assure us that it can't be changed by future laws and regulations. So there's not going to be -- this is something that the government is authorized to do under current laws. So it will not require changes to their laws or the involvement in the parliament in changing laws. The parliament will be informed, you know, and involved from that standpoint. Once the agreement is reached, the process of getting it documented, it will be straightforward and not time consuming.

是的。實際上，鑑於總統賦予這些部長的權力，達成協議是關鍵，並記錄我們已經進行的工作。我的意思是，我們已經獲得了正在研究的 IUPK 的形式，有一個附件。有一個－提出一個結構來向我們保證它不會被未來的法律法規所改變。所以不會有這樣的事情——這是政府根據現行法律有權做的事情。因此，它不需要修改他們的法律或讓議會參與修改法律。你知道，議會將會從這個角度了解情況並參與其中。一旦達成協議，記錄的過程將會很簡單且不耗時。

Your next question comes from the line of Novid Rassouli with Cowen and Company.

您的下一個問題來自 Cowen and Company 的 Novid Rassouli。

Just 2 for you first on Indonesia. The ongoing due diligence related to Indonesia potentially purchasing your JV partner's share. Does that have the ability to potentially delay Freeport's goal of having an agreement here on the longer-term contract in the first half of '18?

首先為您提供 2 項有關印尼的資訊。與印尼可能購買您的合資夥伴的股份有關的正在進行的盡職調查。這是否會潛在地推遲自由港在2018年上半年就長期合約達成協議的目標？

No, the time frame of the first half, which is -- it has really been set more by the government is to allow for that due diligence. So we had all hoped to have more formal agreements reached by the end of the year but there was a decision that having the needs for this due diligence and that's why the target of mid-year has been put in place to allow for that due diligence.

不，上半年的時間框架其實更多是由政府設定的，是為了進行盡職調查。因此，我們都希望在年底之前達成更正式的協議，但決定需要進行盡職調查，這就是為什麼設定年中這個目標來進行盡職調查。

Got it. Makes sense. And then my second question. I don't think anybody has really talked or asked about the broader copper market, so I'm going to go ahead and do that now. So based on the lack of investments over the past few years as you highlighted in the past few calls, what year do you expect the copper market to reach kind of peak tightness or deficit in the coming years before maybe reaching an inflection point? As you said, we're kind of getting close to that $3.25 that you said is necessary for people to having incentive to start investing. Haven't really seen anything incredibly material yet. So just want to get a sense of how you're seeing the next few years? And when we reach that inflection point?

知道了。有道理。然後是我的第二個問題。我認為還沒有人真正談論或詢問更廣泛的銅市場，所以我現在就繼續這樣做。那麼，正如您在過去的幾次電話會議中所強調的那樣，基於過去幾年投資的缺乏，您預計銅市場將在哪一年達到緊俏程度或短缺的頂峰，然後才可能達到拐點？正如您所說，我們已經接近您所說的激勵人們開始投資所需的 3.25 美元。我還沒有真正看到任何令人難以置信的東西。那麼，您只是想了解未來幾年的情況嗎？我們什麼時候會到達那個轉捩點？

All right, well, thank you, Novid. The -- you tell me what global growth is going to be. You tell me what China is going to be. Because my view is the supply side of this subject to the uncertainty about disruptions, which could only be supportive of supply, they're not going to add supply, but they could take it away, is pretty clear-cut at this point. Surprises will be on the negative side. You're not going to see somebody say, in the near term, we've got significant amounts of new production that nobody knew about. People will work to -- at the margin increase production, but it's just going to be at the margin. And you look at the long-term projects that are out there, whether they're -- it's resolution Olympic Dam, our big projects that we're talking about, El Abra and others, there'll be more copper coming out of Africa, I believe, based on our experience there but that's going to unfold over a number of years because of the nature of the mineralization and how it has to be mined. You look at the experience of Oyu Tolgoi, it's a great resource, great ore body, but the number of years that it's taken to ramp up and the continuing issues they face with border crossings and power and the government, I mean, that's just fundamental to all these big projects. So I think you can get your arms around supply outlook relatively easy, and then you plug in your own view about what you think the global economy is going to do. I just went back to Houston this week to give a Luncheon Address, not to a mining group, but to a general business group. And of course, it took me back after living in Houston for so long and back in my earlier career, one of my first clients was Mitchell Energy, which kind of kicked off the shale industry in the mid-1980s. And oil and gas people were asking me, is there anything like shale for the copper business? Because nobody expected the U.S. to bypass Saudi Arabia and Russia and to produce 12 million barrels of oil a day. I mean, back in the 80s, we were thinking of importing 75% of the oil and production dropping to 4 million barrels. But the great thing about copper, and you take it with a grain of salt because you know my feelings on this, which have been the same basically since I became CEO in 2003, is its uses are just built into the economy in such a way that it's really hard to replace for its basic uses. You can do it for plumbing and things like that but when you look at the way the world's going with electrical -- electronics, everybody talks about electric vehicles and that could be a big deal, alternative energy development could be a big deal. But just how much electronics are increasingly built into our lives whether it's communications or control systems, power delivery systems, the development of the world for basic things like refrigerators and air conditioners, maybe I shouldn't say washing machines, but in any event, it's just a commodity I think that is so well situated for how it's used in the economy. And -- but so you're subject to the risk of the economy, of China and the global economy. But supply side, there's no shale copper coming on stream. People are talking about mining in the ocean, on asteroids and things like that. But we're just seeing in terms of basic production, the new projects are a major less quality than the old projects were. They have much lower grades, you have to do a lot more stripping, building infrastructure, getting water, getting power. All of these things make the supply side of copper, I think extraordinarily well supported. I tell people today, we can increase price of copper to $6 a pound overnight, and we have, what I just showed, 300 billion pounds of undeveloped copper resources. We could not bring them on stream to 5 to 10 years from now, even with $6 copper. So it's a great commodity, and that's why I like where our company is so well.

好的，謝謝你，Novid。你告訴我全球成長將會是什麼樣的。你告訴我中國會變成什麼樣子。因為我的觀點是，該主題的供應方面受到中斷的不確定性的影響，這只能支持供應，他們不會增加供應，但可以減少供應，這一點目前非常明確。意外將會是負面的。你不會看到有人說，在短期內，我們有大量無人知曉的新產品。人們會努力提高產量，但這只是在邊際上。看看現有的長期項目，無論是奧林匹克壩項目，還是我們正在談論的大型項目、埃爾阿布拉項目以及其他項目，根據我們在非洲的經驗，我相信，將會有更多的銅礦來自非洲，但這將需要數年時間，因為礦化的性質以及開採方式決定了結果。看看奧尤陶勒蓋的經驗，它擁有豐富的資源和礦體，但需要花費數年時間才能開發出來，而且他們還面臨著邊境口岸、電力和政府等方面的持續問題，我的意思是，這些對於所有這些大型項目來說都是至關重要的。因此，我認為你可以相對輕鬆地了解供應前景，然後提出你對全球經濟未來趨勢的看法。本週我剛回到休士頓，發表午餐演講，不是針對採礦團體，而是針對一般商業團體。當然，這讓我回想起在休士頓生活了這麼久之後，在我早期的職業生涯中，我的第一批客戶之一是米切爾能源公司，它在 20 世紀 80 年代中期開啟了頁岩行業。石油和天然氣產業的人士問我，是否有類似頁岩一樣的資源適合銅業？因為沒人預料到美國會繞過沙烏地阿拉伯和俄羅斯，每天生產 1,200 萬桶石油。我的意思是，早在 80 年代，我們就考慮進口 75% 的石油，產量下降到 400 萬桶。但銅的偉大之處，你可以對此持保留態度，因為你知道我對此的看法，自 2003 年我擔任首席執行官以來，這種看法基本上一直沒有改變，那就是它的用途已經融入到經濟中，很難被取代。你可以將其用於管道和類似的東西，但是當你觀察世界電氣電子的發展方向時，每個人都在談論電動車，這可能是一件大事，替代能源開發也可能是一件大事。但是，電子產品越來越多地融入我們的生活，無論是通訊或控制系統，電力輸送系統，還是冰箱和空調等基本用品的發展，也許我不應該說洗衣機，但無論如何，我認為它只是一種商品，非常適合在經濟中使用。但你會面臨經濟、中國和全球經濟的風險。但在供應方面，目前尚無頁岩銅礦投產。人們正在討論在海洋、小行星等地進行採礦。但我們從基礎生產角度來看，新項目的品質比舊項目低很多。它們的等級要低得多，你必須做更多的剝離、建造基礎設施、獲取水和電力。我認為所有這些都為銅的供應提供了極好的支撐。我今天告訴人們，我們可以在一夜之間將銅價提高到每磅 6 美元，而且我們還有我剛才展示的 3000 億磅未開發的銅資源。即使銅價達到每桶 6 美元，我們也無法在未來 5 到 10 年內讓這些產品投入生產。所以它是一種很棒的商品，這就是我如此喜歡我們公司的原因。

Operator, are there any more questions?

接線員，還有其他問題嗎？

We can't seem to get to the operator, so I don't know if everyone else is still on the line but...

我們似乎無法聯繫到接線員，所以我不知道其他人是否還在通話中，但...

Our next question will come from the line of Piyush Sood with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Piyush Sood。

First one. At Grasberg, seems total CapEx to be spent over the next 5 years may have declined to about $900 million from $1 billion. I just wanted to understand if that's a rounding error, or is there something else over there?

第一個。在格拉斯伯格，未來 5 年的總資本支出似乎可能從 10 億美元下降到約 9 億美元。我只是想知道這是否是捨入誤差，還是有其他問題？

No, there really wasn't anything. It was just the time period of the 5 years that we will -- including last quarter versus this quarter and the way the rounding fell. So no material differences in our plans.

不，確實什麼都沒有。這只是 5 年的時間段——包括上一季與本季的比較以及舍入方式。因此我們的計劃沒有實質差異。

All right, and staying with Grasberg. Labor relations at Grasberg seem to have improved. Could you comment on maybe worker productivity, how you are taking care of expectations around employment as you move underground and when we could expect a new labor contract?

好的，和格拉斯伯格在一起。格拉斯伯格的勞資關係似乎有所改善。您能否評論一下工人的生產力，當您轉向地下時您如何處理就業方面的期望，以及我們何時可以期待新的勞動合約？

Okay. So we signed a new labor contract in December, that's for 2 years. Under Indonesian law, we have to do a new one every 2 years. So we have signed it. Mark, make some comment. I'll let you make some comments because you lived with this thing.

好的。所以我們12月簽了新的勞動合同，為期兩年。根據印尼法律，我們必須每兩年做一次新的審核。因此我們就簽署了。馬克，發表一些評論。我會讓你發表一些評論，因為你經歷過這件事。

Yes, well, 2017 was a very dramatic year on the labor. In February, we had 32,000 employees and that's a combination of employees and contractors. With the export ban, we had some cost reductions that was kicked off with a 10% employee furlough program. After we started that program, we had a number of employees that went on an informal strike, it was not a legal strike. They started missing work and with the labor laws in Indonesia, they essentially resigned their positions. That resulted in about 5,000 employees leaving. We since have added back about 4,000 contractors. So we went from 32,000 to 24,000 and now we're back up to around 28,000. The PT-FI component of that is under 8,000 employees, now -- it was 12,000. The contractors that we've hired in have been very cooperative and been very energetic. We've had a very good response, as kind of a by-product, with the new guys coming in our PT-FI workforce has also picked up the efficiencies, and we're seeing a much improved morale. Our safety -- with all of that transition we have the lowest incident rate for our reportable accidents that we've ever had since the beginning of the project. So we feel good about the status of our labor force, the composition of contractors and internal employees and really the effectiveness of our supervisors with under a new -- kind of a new composition of labor. As Richard said, there's a lot of transition within the labor unions that we've dealt with their leader had been removed, he had some legal issues, he's out of the picture. The new team that's come in has worked very closely with us. There's a second union that we're dealing with. That was kind of a new component of our negotiations this year. But all of that worked out. It went on a little bit longer, but we didn't have any threats of strikes, we didn't have any concerns that the workforce is going to -- have any sort of a walkout. So during that whole period of negotiation, we didn't see an interruption in our production and it allowed us to focus on safety and bringing these guys on and focusing on the project. So we saw some benefits in there, for instance, in the Grasberg pit. Our unit rates went down by about 30% in the fourth quarter to what they've been in the first part of the year. So we've seen some efficiencies. We're getting more out of each worker. And that's also gone into -- on the development side and then into the capital projects. So we feel well positioned in 2018 with the group that we have.

是的，2017 年對勞動力來說是非常戲劇性的一年。2 月份，我們的員工總數為 32,000 名，其中包括正式員工和承包商。由於出口禁令，我們採取了一些成本削減措施，並以 10% 的員工休假計畫作為開端。在我們啟動該計劃後，我們有許多員工進行了非正式罷工，這不是合法罷工。他們開始失業，根據印尼的勞動法，他們基本上辭去了工作。這導致約5,000名員工離職。從那時起，我們又重新招募了約 4,000 名承包商。所以，我們的人數從 32,000 人減少到了 24,000 人，現在又回升到了 28,000 人左右。其中 PT-FI 部門員工人數現在不到 8,000 人，之前為 12,000 人。我們僱用的承包商非常合作並且充滿活力。我們得到了非常好的反響，作為一種副產品，隨著新人加入我們的 PT-FI 隊伍，效率也得到了提高，我們看到了士氣的極大提高。我們的安全—透過所有這些轉變，我們可報告事故的發生率達到了專案開始以來的最低水準。因此，我們對我們的勞動力狀況、承包商和內部員工的組成以及我們主管在新的勞動力組成下的效率感到滿意。正如理查德所說，我們處理的工會內部發生了很多變動，他們的領導人已經被撤職，他遇到了一些法律問題，他已經退出市場了。新加入的團隊與我們合作非常密切。我們正在與第二個工會打交道。這是我們今年談判的一個新內容。但所有一切都順利解決了。這件事持續了一段時間，但我們沒有受到任何罷工威脅，也不擔心勞動力會發生任何形式的罷工。因此，在整個談判期間，我們的生產沒有中斷，這使我們能夠集中精力確保安全，並讓這些人專注於專案。因此我們看到了其中的一些好處，例如格拉斯伯格礦坑。與今年上半年相比，第四季我們的單位費率下降了約 30%。因此我們看到了一些效率。我們正在從每個工人身上獲得更多的回報。這也涉及到開發方面以及資本項目方面。因此，我們認為，憑藉現有的團隊，我們在 2018 年將佔據有利地位。

And for years, we've been planning for this transition because it is new skills, new work requirements and so forth in the underground from the open pit without the drivers for the haul trucks and the big electric shovels and so forth. But we've been doing that, and it's much more mechanized, so anyway, that's all progressed very well.

多年來，我們一直在規劃這種轉變，因為它意味著新的技能、新的工作要求等等，而露天礦場則不再需要運輸卡車和大型電鏟的司機，地下礦場也不再需要運輸卡車和大型電鏟的司機。但我們一直在這樣做，而且它更加機械化，所以無論如何，一切都進展得非常順利。

And Kathleen, you did comment on the long-term cost structure for Grasberg at about $0.50. So just want to understand, as we go into a transition year in 2019, is there kind of a step-down coming in your total cost over there? Or would cost kind of lag as in -- the decline in total cost lag while maybe production also as in -- should we kind of expect cost to go up drastically on a per pound basis? Or do you have some control around that?

凱瑟琳，你確實評論過格拉斯伯格的長期成本結構約為 0.50 美元。所以我想了解一下，隨著我們進入 2019 年的過渡年，你們那裡的總成本是否會出現某種下降？或者成本會不會出現滯後——總成本滯後下降，而產量也可能出現滯後——我們是否應該預期每磅成本會大幅上漲？或者你對此有一定的控制權嗎？

In terms of absolute cost, we're not anticipating any significant changes. On a unit basis, on a metal basis, it will depend on the volumes and the grades that we're mining. So in 2019, as we get into lower year, we will have higher cost than what we had in 2018. But it is still a very, very attractive and on a unit basis, our lowest cost mine in the company. So as we go forward, we start to improve on the volumes after 2019 and the cost position goes down as a result on a metal basis per unit. But in terms of absolute cost, we're not expecting to have major changes in the absolute total cost of the operation.

就絕對成本而言，我們預計不會有任何重大變化。以單位為基礎，以金屬為基礎，這將取決於我們開採的數量和等級。因此，隨著 2019 年進入低迷期，我們的成本將高於 2018 年。但它仍然是一個非常非常有吸引力的礦山，而且按單位計算，它是我們公司成本最低的礦山。因此，隨著我們不斷前進，2019 年後我們的產量將開始提高，並且單位金屬成本也將下降。但就絕對成本而言，我們預期營運的絕對總成本不會發生重大變化。

Generally, our costs are fixed. There are some things that vary. So when Kathleen is talking about cost going up, it's unit cost going up. Absolute cost, we'll continue to manage, keep it low as we have. But for most part, that's fixed.

一般來說，我們的成本是固定的。有些事情是會改變的。因此，當凱瑟琳談到成本上漲時，指的是單位成本上漲。絕對成本，我們將繼續管理，並保持在低水平。但大多數情況下，這是固定的。

So let's have our last question and I appreciate -- I think it was Michael who was saying, he looks forward to when we don't have to talk so much and nobody looks more forward to that than me.

因此，讓我們提出最後一個問題，我很感激——我認為是邁克爾說的，他期待我們不必說那麼多，沒有人比我更期待這一點。

Our final question will come from the line of Karl Blunden with Goldman Sachs.

我們的最後一個問題來自高盛的卡爾布倫登 (Karl Blunden)。

I think you'd alluded to this a bit earlier in the call, question back on Grasberg. So it sounds like potentially, if the government is looking to get a 51% stake in the asset that Rio stake would count towards that. Is it fair that you'd be able to, I guess, get away with a much smaller divestiture than initially thought about?

我想您在早些時候的電話會議中提到過這一點，關於格拉斯伯格的問題。因此，這聽起來是有可能的，如果政府希望獲得該資產 51% 的股份，那麼力拓的股份將計入其中。我想，如果您能夠以比最初設想的少得多的資產剝離來逃避監管，這公平嗎？

Well, I would not use the term get away with. But if Rio Tinto wants to sell, they reach agreement and they buy, it means that there'll be a much lower level of the divestment that would come to PT-FI. So the government currently owns 9.36% of -- and in fact a long term 60% interest. So that's 5-plus percent. Rio Tinto has 40%. And so our remaining divestment obligation would be roughly 10% of PT-FI, which would be another net 5-plus percent. So that's the way the math would work. And it's all contingent on everybody on reaching an agreement on that transaction. That's the best outcome considering -- it's up to Rio Tinto, they've been great partners. So anyway. And their negotiations are with the government. We're facilitating them, but their direct negotiation is with the government. So it (inaudible) to be an elegant outcome.

好吧，我不會用「逃脫」這個詞。但如果力拓希望出售，雙方達成協議併購買，則意味著 PT-FI 獲得的撤資水準將會低得多。因此，政府目前擁有 9.36% 的權益，事實上長期擁有 60% 的權益。所以這個比例是 5% 以上。力拓持有40%的股份。因此，我們剩餘的撤資義務大約是 PT-FI 的 10%，也就是另外的淨利 5% 以上。這就是數學的工作原理。這一切都取決於大家是否就該交易達成協議。考慮到這一點，這是最好的結果——這取決於力拓，他們一直是很好的合作夥伴。無論如何都是如此。他們的談判對像是政府。我們正在為他們提供便利，但他們的直接談判是與政府進行的。因此，這（聽不清楚）是一個優雅的結果。

You mentioned earlier credit ratings momentum certainly has been positive. What are the next steps we should look at or what are the gating factors on further upward momentum for you guys when you discuss this with the agencies?

您之前提到信用評級勢頭肯定是正面的。當您與機構討論此問題時，我們應該考慮下一步措施什麼，或者，哪些因素會影響您們進一步的上升勢頭？

Well, I think, you just look at our credit statistics and our balance sheet and cash flow generation. And really the portfolio of the assets that we have in the company, I think our credit metrics signal higher ratings but we'll continue to review these with the agencies as we go forward.

嗯，我想，你只需看看我們的信用統計數據、資產負債表和現金流表。實際上，就我們公司所擁有的資產組合而言，我認為我們的信用指標預示著更高的評級，但我們將在未來繼續與各機構一起審查這些評級。

But we're focused on getting this Indonesian thing resolved and recognized. And until we do, that's going to be a factor for credit ratings, stock valuation, share valuation and everything. So we know what we need to do and we're all -- we're focused on getting it done. So let's see.

但我們專注於解決和承認印尼的問題。在我們這樣做之前，這將成為信用評級、股票估值、股份估值等一切因素的一個因素。所以我們知道我們需要做什麼，而且我們都專注於完成它。讓我們看看。

Thanks to all of you who stuck around to the end of this. And we appreciate your interest. If you have follow-up questions, contact David Joint, thank you.

感謝你們所有人堅持到最後。我們感謝您的關注。如果您有後續問題，請聯絡 David Joint，謝謝。

Thanks, everyone.

謝謝大家。

Ladies and gentlemen, that concludes our call for today. Thank you for joining. You may now disconnect.

女士們、先生們，今天的通話到此結束。感謝您的加入。您現在可以斷開連線。