Slide 1: 3rd Quarter 2016 Earnings Conference Call
fF Freeport-McMoRan 3rd Quarter 2016 Earnings Conference Call Amember of os X ICMM October 25, 2016 fex.com
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-loo ts poter ements are all statements other than statements of torical fats, suc 2s projections or paren Taleg ae ‘grades and ming rates, production and sales volumes, unit net inwotves, including FCS abilt
Slide 3: Tracking Our Achievements
Hl Freeport-McMoRAN METTLE Tracking Our Achievements ~ Declining Unit Costs for Copper. i} * $6.6 Billion in Announced Asset Sales 7A S - $5.2 Billion Expected to Close in 4Q16 —No Additional Sales Required — Retention of High-Quality Copper Portfolio * Clear Path to Achievement of Debt Target Q15 Q
Slide 4: Oil & Gas Asset Sale Transactions
Hl Freeront-McMoRan METTLE Oil & Gas Asset Sale Transactions Simplifies FCX’s Business and Reduces Its Capital Intensity Deepwater ‘Onshore GOM CA d Purchase and Sale Ag 9/12/16 10/14/16 Buyer Anadarko Sentinel Peak Cash Consideration $2.0 bn? $592mm Contingent Consideration $150 mm? $150 mm” Abando
Slide 5: Status of Tenke Transaction
Status of Tenke Transaction 4x _ $2.65 bn in Proceeds; $120 mm in Contingent Consideration* p Se a, 1 A = Req y App Is Have Been Obtained = China Molybdenum Shareholder App | Obtained in Sep ber 2016 = Closing Pending Resolution of Lundin Right of First Offer = Gecamines Claims Have No Legal Basis =
Slide 6: Restoring Balance Sheet Strength
METTLE Restoring Balance Sheet Strength Year-End 2017e Net Debt at Varying Copper Prices” (USS billions) 20.0 ‘ $17.9 $15.0 $10.7 9.5 $10.0 ss $8.4 $5.0 $0.0 9/30/2016 $2.00 $2.25 $2.50 Net Debt/2017e EBITDA 2.2K 1.6x L2« YE 2017e (2) Includes asset sale proceeds fom the Tenke, Deepnatss GOM and Ons
Slide 7: World-Class Copper Portfolio
Hl Freepont-McMoRan M E T TL E World-Class Copper Portfolio Long-term Value in High — Asset Base n donesia Americ Amer jorth south ppet Gold Mine 7 copper Mines 2 copper vines 2016e Unit Costs $0. 62/Ib ), Sierrta, Bagdad, Tyrone, Safford, Mamiand Chino; Prmary Mo: and Climax; “South Amen amounts nc
Slide 8: Large Development Project Inventory
Large Development Project Inventory Copper Sulfide Opportunities = eS - Bagdad - Chino - El Abra - Lone Star/Safford - Morenci - Sierrita Future development subject to market conditions
Slide 9: Copper Market Commentary
I Freeront-McMoRan METTLE Copper Market Commentary 4x = Projected Surpluses Continue to be Lower Than Expected = Recent Supply Growth Unsustainable = Prolonged Period of Low Prices Will Impact Future Supplies = While Inventories Have Risen, Levels Remain Relatively Low by Historical Standards = Smal
Slide 10: World Class Copper: Discoveries Are Extremely Rare
Hl Freeport-McMoRan METTLE World Class Copper Discoveries Are Extremely Rare Re ble Copper Reserves 2016e Copper Production Hilion metrietons Thousand mattctons © 5 1 15 2% 25 30 35 © 200 400 600 800 1000 1200 Escondida - 1981 ElTeniente- 1910 Cerro Verde- 1860s ‘Antamina - 1873 ElTeniente- 1910 Chu
Slide 11: Pit Wall Design Optimization
M Pit Wall Design Optimization a SS I Freeront-McMoRan ETTLE Pit Wall Steepening Conceptual Cross-Section = Optimize slopes -- Targeting opportunities to steepen pit wall angles to minimize stripping & add ore = Steeper slope design to include clean bench faces & catch benches to minimize rock fall
Slide 12: Grasberg Operations & Regulatory Matters
Grasberg Operations & Regulatory Matters METTLE Operations = Lower 3Q16 Mining Rate in Open Pit - July Estimate: 200K t/d - Actual: 171K t/d = 10-day Work Stoppage in Late Sept. Also Affects Timing of Access to Higher Grade Ore = 2016 Shortfall Substantially Recovered in 2017 and Fully Recovered by
Slide 13: Grasberg Minerals District
I Freeront-McMoRan METTLE Grasberg Minerals District PT-FI Share of Sales Copper Gold (bns Ibs) (mms ozs) 2016e 1.2 1.24 2017e 1.45 2.75 2018e 1.0 1.4 2019e — 1.2 Ls 2022e Avg. Reserves* Grasberg (as of December 31,2015) _DMLZ___ Block Cave Tonnes (mm) 460 962 Copper Grade (%) 0.89 1.03 Gold Grade (
Slide 14: 2016e Outlook
Hl Freeport-McMoRan 2016e Outlook METTLE Sales Outlook Unit Cost of Copper Operating Cash Flows 7 Capital Expenditures = Copper: 4.8 Billion Ibs. * Gold: 1.26 Million ozs. = Molybdenum: 73 Million Ibs. = Site Production & Delivery: $1.42/Ib = After By-product Credits: $1.20” = ~$3.6 Billion (@$2.10/
Slide 15: Sales Profile
[i Freeport-McMoRan Sales Profile Copper Sales (billion tbs) ) 6 2015 2016e 2017e Note: Consoldated gol sles ncude 115k g26 n 2015, 115k ozs 2016 and 255k ozs in 2017e for noncontroling inte Molybdenum Sales (million tbs) ) 89 91 2015 2016e 2017e* Excludes Tenke Note: Consolidated copper sales inctu
Slide 16: EBITDA and Cash Flow at Various Copper Prices
[i Freeport-McMoRan EBITDA and Cash Flow at Various Copper Prices $8 (Uss billions) $6 $4 $2 2017e $0 Cu $2.00/ Ib Cu $2.25/Ib Cu $2.50/Ib Operating Cash Flow (excluding Working Capital changes) ($1,250/oz Gold, $7/lb Molybdenum)* USS billion Cu $2.00/ Ib Cu $2.25/Ib Cu $2.50/Ib * Average pricesas n
Slide 17: Capital Expenditures
Hl Freeport-McMoRAN METTLE Capital Expenditures (Ss billions) $6.35 Future Spending Dependent on Improvement in Market Conditions Oil & Gas 2015 2016e 2017e Note: Incudes captalzed interest. e= estimate. See Cautionary Statement wv
Slide 18: Committed to Balance Sheet Management
Committed to Balance Sheet Management — Strong Track Record (US$ billions) METTLE Manageable Near-Term Debt Maturity Schedule Pro Forma for Asset Sale Transactions* FCX Debt Structure “ $3.3 bn of Pro Forma Cash Peony! Asset Sale Transactions gd prom for Sale $3 12/31/15 9/30/16 ismetions $3.5 bn Re
Slide 19: Focused on Execution
I Freeront-McMoRan METTLE Focused on Execution a * ) Gost, Capital 8c Prodiiction Building) Long= Jerm Values Debt Redictio} "| Strong Track Record
Slide 20: Reference Slides
Reference Slides
Slide 21: Financial Highlights
Financial Highlights Sales Data 3Q16 Consolidated Volumes (mm Ibs) 1,231 1,001 Average Realization (per Ib) $2.18 $2.38 Site Production & Delvery Costs (per Ib) $1.39 $1.74 Unit Net Cash Costs (per Ib) $1.14 $1.52 Consolidated Volumes (000’s ozs) 317 294 Average Realization (per oz) $1,327 $1,117 Oi
Slide 22: 3Q 2016 Mining Operating Summary
(Hl Freepont-McMoRan METTLE 3Q 2016 Mining Operating Summary 3Q16 Unit Production Costs Cash Unit Costs North South Consolidated (per pound of copper) America America__Indonesia__Africa arrice Africa Site Production & Delivery $1.44 $1.27 $1.37 $1.57 1.3 By-Product Credits (0.17) (0.12) (4.29) (0.46
Slide 23: 2016e Operating Estimates
METTLE 2016e Operating Estimates 2016e Unit Production Costs (per pound of copper) North South Consolidated America America Indonesia Africa Including Africa Cash Unit Costs Site Production & Delivery (2 $1.42 $1.28 $1.48 $1.59 $1.42 By-product Credits (0.12) (0.41) (1.36) (0.38) (0.45) Treatment Ch
Slide 24: 2016e Quarterly Sales
2016e Quarterly Sales Copper Sales (million Ibs) ) 1,500 1,000 j 1Q16 2Q16 3Q16 4Q16e ‘Note: Consolidated gol sles include aporoxmately 18k or= h 1016, 1#oz= in 2046, pope} ‘SQIb and 5% o2sin 42.i6e for noncontraling interest. 500 Molybdenum Sales (uitlion tbs) ) 20 10 0+ meat S 2ms 3Q16 4Q16e ote:
Slide 25: PT-FI Mine Plan
= Zs . M ETT LE PT-FI Mine Plan PT-FI’s Share of Metal Sales, 2016e-2022e = 20160 — 2020 PT-FI Share Total: 5.8 billion Ibs copper ii Annual Average: 1.15 billion Ibs — Copper, billion Ibs Gold, million ozs 2016e — 2020e PT-FI Share Total: 7.9 million ozs gold Annual Average: 1.58 million ozs 2.75 1
Slide 26: Sensitivities (US$ millions)
Sensitivities (US$ millions) 4Q16e Operating Change EBITDA Cash Flow Copper: +/- $0.10/Ib $200 $150 Molybdenum: +/- $1.00/Ib $9 $7 Gold: +/- $50/ounce $35 $20 Currencies: +/- 10% $36 $26 [ 2017e ] ——_— Copper: +/- $0.10/Ib $410 $325 Molybdenum: +/- $1.00/Ib $55 $45 Gold: +/- $50/ounce $130 $78 Curre
Slide 27: FCX Debt Maturities as of 9/30/16
FCX Debt Maturities as of 9/30/16 Pro Forma for Announced Asset Sale Transactions* METTLE $10 5 (US$ billions) Pro Forma Total Debt & Cash at 9/30/16 ‘USS billic Pro Forma for se 4 Asset Sale Transactions ll FCX Revolver & Term Loan $- ll FCX & FMC Sr. Notes $6 |] FM 0&6 Senior Notes @ Other Total D
Slide 28: Adjusted EBITDA Reconciliation
Tl Freeport-McMoRan METTLE Adjusted EBITDA Reconciliation Gin miions) 12 Months 392016 $245 $8,277) Interest pers, net 187 75: (114) (110) Deane dept and amortization 643 2,655 Impatment of of and gas rover 239 8,019 settlementyidle rig 19 83 Mining paccierieet laa 20 Gain on sales of a (13) (762) A
Slide 29: Adjusted EBITDA - Discontinued Operations Reconciliation
Hl Freeport-McMoRan METTLE Adjusted EBITDA - Discontinued Operations Reconciliation (in millions) 12 Months 3Q2016 Ended 9/30/2016 Net loss Attributable to Common Stock from Discontinued Operations $(28) $(250) Reversal of eliminations and adjustments (*) 82 181 Allocated interest expense @) 12 41 I