Freeport-mcmoran, Inc. · NYSE:FCX

Freeport-mcmoran — Sanford C. Bernstein 30th Annual Strategic Decisions Conference 2014

13 slides from Freeport-mcmoran's conference presentation, May 28, 2014

  1. Slide 1: Strategic Decisions Conference 2014

    Strategic Decisions Conference 2014 Richard C. Adkerson President & CEO www.fcx.com May 28, 2014

  2. Slide 2: Cautionary Statement Regarding Forward-Looking Statements

    Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as projections or expectations relati

  3. Slide 3: FCX – A Premier U.S. Based Natural Resource Company

    FCX – A Premier U.S. Based Natural Resource Company  World’s Largest Publicly Traded Copper Producer  Long-lived Reserves with Large Incremental Resources  High-Quality U.S. Based Oil & Gas Assets  Strong Margins & Cash Flows  Growing Production Profile Through Brownfield Expansion  Experience

  4. Slide 4: FCX's Global Footprint

    FCX’s Global Footprint Major Operations & Development Projects North America1 All major mining assets majority-controlled and operated Reserves Cu 36.2 bn lbs 111 billion lbs of Copper Reserves Mo Oil & Gas 2.55 bn lbs 861 MMBOE2 115 billion lbs of Mineralized Material Sales Cu 1.7 bn lbs Mo 97 mm l

  5. Slide 5: World's Leading Copper Producers

    World’s Leading Copper Producers Top 10 Copper Producers (2014e) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX Glencore BHP Billiton Southern Rio Tinto Anglo KGHM First Antofagasta Copper American Quantum ____________________ Source: Wood Mackenzie 1Q14. Rankings based on

  6. Slide 6: World Class Copper Discoveries Are Extremely Rare

    World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2014e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 30 0 200 400 600 800 1000 1200 1400 Escondida - 1979 Escondida - 1979 Grasberg Complex - 1988 1988 Chuquicamata - 1910 Collahuasi - 1979 1979

  7. Slide 7: Copper Markets

    Copper Markets Total Copper Consumption 40  Assuming 2.3% Global Growth +7.3Mt Over Next 10 Years, Copper 30 +5.6Mt 26% 25% Market Expected to Grow by Cu in Mt +7.3Mt (26%) 20 Mature Markets 10 Emerging  Over Same Period, Production Markets from Existing Mines Expected 0 China 2004 2014 2024 to De

  8. Slide 8: Oil & Gas Operating Assets

    Oil & Gas Operating Assets 861 MMBOE Proved, Probable & Possible Reserves as of 12/31/13 California GOM Deepwater • Long Established Oil • Significant Current Production Production History with Upside • Strong Margins and Cash Flows • Large Scale Infrastructure • Brent Based Pricing California • HLS

  9. Slide 9: Geographic & Commodity Mix

    Geographic & Commodity Mix (1) 2014e EBITDA North Mining America 68% 56% South America 17% Africa Oil & Gas 7% Indonesia 32% 20% (1) Based on 2014e EBITDA of ~$9.7 bn assuming annual pricing of $3.00/lb Cu, $1,300/oz Au, $10/lb Mo, $105/Bbl Oil (Brent) and $4.25/MMbtu natural gas for the remaining n

  10. Slide 10: Visible Organic Growth

    Visible Organic Growth Mining Oil & Gas  Targeting 5+ Billion Pounds  Growing Production Profile in Annual Cu Production by 2015 Established Basins (37% Increase from 2012)  Substantial Production Capacity  Advanced Stage Brownfield from Existing Deepwater Development Infrastructure to Benefit -

  11. Slide 11: EBITDA and Cash Flow at Various Copper Prices

    EBITDA and Cash Flow at Various Copper Prices Average EBITDA ($1,200 Gold, $10 Molybdenum & $105 Oil) (US$ billions) $20 $15 $10 $5 2015e/2016e Average $0 Cu $3.00/lb Cu $3.50/lb Cu $4.00/lb Average Operating Cash Flow (excluding Working Capital changes) ($1,200 Gold, $10 Molybdenum & $105 Oil) $15

  12. Slide 12: Capital Expenditures

    Capital Expenditures (1) (US$ billions) $8 $7.1 $7.3 $6.6 $6 Oil & Gas 3.5 3.0 4.0 $4 Major Projects (2) TOTAL 2.6 3.1 MINING $2 3.8 1.4 4.1 2.6 Other Mining 1.2 1.2 1.0 $0 2014e 2015e 2016e (1) Capital expenditure estimates include projects in progress. Project spending will continue to be reviewed

  13. Slide 13: Summary

    Summary A Strong & Focused Organization Executing The Strategy Maximize Total Shareholder Returns Strong Management of the Base  Operational Excellence  Achieve Production Targets  Effective Cost and Capital Management  Manage HS&E and Other Inherent Risks Return Driven Growth  Prioritize Highe

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