SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 17, 1997
Delaware 1-8124 13-3051048
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
1615 Poydras Street
New Orleans, Louisiana70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
FREEPORT-McMoRan INC. AND FREEPORT-McMoRan RESOURCE PARTNERS
ANNOUNCE NON-CASH CHARGES RELATED TO SULPHUR ASSETS
NEW ORLEANS, LA., September 17, 1997 - Freeport-McMoRan Inc.
(NYSE:FTX) and Freeport-McMoRan Resource Partners, Limited Partnership
(NYSE:FRP) announced today that their upcoming third-quarter 1997
operating results will include a non-cash charge for the reduction in
book value of their sulphur assets based on a current assessment of
the estimated future cash flows from the sulphur reserves compared
with the carrying value of the related assets. The non-cash charge,
which reflects the difference between book value and estimated fair
value of the sulphur assets based on the present value of estimated
future cash flows, relates to fixed assets at the Main Pass Block 299
sulphur mine located offshore in the Gulf of Mexico, the Culberson
sulphur mine located in west Texas and other related assets. For FRP,
the charge will be approximately $384 million or $3.71 per unit,
however, it will not affect distributable cash. For FTX, the charge
will be approximately $425 million to operating earnings,
approximately $149 million to net income (after minority interest and
income tax effects) or approximately $5.94 per share, assuming all
shares of the FTX $4.375 Convertible Exchangeable Preferred Stock are
converted into FTX common shares, resulting in approximately 25.1
million average common shares outstanding for the third quarter, as a
result of the recently announced redemption offer.
As previously announced, immediately prior to the proposed merger
(the Merger) of IMC Global Inc. (NYSE:IGL) and FTX, the sulphur
business of FRP and the related oil and gas production assets at Main
Pass Block 299, along with the 25 percent interest in Main Pass Block
299 owned by IGL will be contributed to a subsidiary of FRP (Newco).
Newco shares will be distributed to FRP unitholders (including FTX),
and FTX shareholders will receive Newco shares as part of the
consideration in the Merger.
FRP is engaged in the production and sale of phosphate
fertilizers and animal feed ingredients as well as the mining and sale
of phosphate rock through IMC-Agrico Company, the mining, purchasing,
transporting, terminalling and marketing of sulphur, and the
exploration, development and production of oil and gas reserves.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
By: /s/ C. Donald Whitmire, Jr.
C. Donald Whitmire, Jr.
Controller - Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: September 18, 1997