Slide 1: FCX Conference Call 2nd Quarter 2023 Results
FCX Conference Call nd 2 Quarter 2023 Results July 20, 2023 fcx.com
Slide 2: Cautionary Statement
Cautionary Statement 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 plans, projections, or expectations relating to business outlook, strat
Slide 3: 2Q 2023 Highlights
2Q 2023 Highlights Copper Adjusted EBITDA Production Sales Price Realization (2) (1) $2.14 bn 1,067 1,029 $3.84 Operating Cash Flow mm lbs mm lbs per lb $1.7 bn Gold Including $0.2 bn in working capital and other sources 483 495 $1,942 Capital Expenditures k ozs k ozs per oz $0.7 bn $1.2 bn Molybden
Slide 4: Notable Operational Highlights – 2Q23
Notable Operational Highlights – 2Q23 • Cerro Verde o 2Q23 Mill Rate: 425k tpd, ~5% Above 1Q23 • Grasberg o 2Q23 Mill Rate: 207k tpd, ~25% Above 1Q23 o Unit Net Cash Credit: 9¢/lb of copper • Smelter Construction Progress o Manyar Greenfield Smelter is ~75% Complete with Commissioning Expected in 20
Slide 5: Indonesian Regulatory Update
Indonesian Regulatory Update Indonesia President Joko Widodo visited the Manyar smelter construction site in June 2023 and witnessed the substantial • Downstream development is a strategic national policy priority progress being made to establish additional downstream processing for copper concentra
Slide 6: Copper – The Metal of Electrification
Copper – The Metal of Electrification Current Copper Market Commentary Copper Demand Forecast (1) (mm tonnes) • Slowing global growth in manufacturing sector ~50 Looming supply gap expected • Auto sector/EVs growing rapidly ~25 Prices will need to rise to incentivize • Copper-intensive expansion of
Slide 7: Annual Sales Profile
Annual Sales Profile July 2023 Estimate Copper 5.0 Gold 2 1.75 1.8 1.6 Sales Sales 4.2 4.2 (billion lbs) 4.0 (million ozs) 4.0 1 0 3.0 2023e* 2024e* 2025e NOTE: Consolidated gold sales include 827k ozs in 2023e, 922k ozs in 2024e and 820k ozs in 2025e for noncontrolling interests. 2.0 Moly 100 85 90
Slide 8: 2023e Operational Data
2023e Operational Data 2023e Sales by Region North America South America Indonesia 1,376 1,439 1,202 (2) (1) 1.75 79 Cu Mo Cu Cu Au mm lbs mm lbs mm lbs mm lbs mm ozs North South 2023e Unit Net Cash Costs (3) (per lb of Cu) America America Indonesia Consolidated Site Production & Delivery (4) $2.90
Slide 9: EBITDA and Cash Flow at Various Copper Prices
EBITDA and Cash Flow at Various Copper Prices Assuming $1,950/oz gold, $20/lb molybdenum Sensitivities Average ’24e/’25e ($ in bns except copper, gold and molybdenum prices) (US$ in mms) EBITDA $16 EBITDA $12 Copper +/-$0.10/lb $425 Molybdenum +/-$1.00/lb $ 80 $8 Gold +/-$50/oz $ 80 $4 Average Curre
Slide 10: Consolidated Capital Expenditures
Consolidated Capital Expenditures Excluding Indonesia Smelter Projects CAPEX (1) ($ in bns) $3.8 $3.2 Discretionary $2.7 Discretionary $1.3 Discretionary $0.7 Major Planned Projects (2) Planned Planned $1.7 (2) $1.0 (2) $1.3 $1.4 Other Other Other $1.0 $1.2 $1.5 2022 2023e 2024e (1) See slide 25; In
Slide 11: Organic Development Pipeline
Organic Development Pipeline FCX Copper Reserves (1) 111 bn lbs FCX Copper Resources (1) 235 bn lbs Near-Term Medium-Term Long-Term Potential Leach Initiatives Potential Step Change in Safford / Lone Star Sulfides ~200 mm lbs* Leaching Technology ~50 bn lbs ~600 mm lbs* Mineral Potential (2) North A
Slide 12: Financial Policy: Performance-Based Payout Framework
Financial Policy: Performance-Based Payout Framework ~50% free cash flow(1) for shareholder returns Maintaining Strong Providing Cash Returns Advancing Organic Balance Sheet to Shareholders Growth Opportunities Net Debt/Adjusted EBITDA $3.4 bn Distributed Less than 1x Since 6/30/21 • Positioned for
Slide 13: Foremost in Copper: Key Strengths
Responsible Experienced producer of scale management team Long-lived Strong balance reserves sheet Embedded Cash returns growth options to shareholders
Slide 14: Foremost in Copper
FOREMOST IN COPPER
Slide 15: Reference Slides
THE POWER OF COPPER Reference Slides FREEPORT FOREMOST IN COPPER
Slide 16: The Copper Mark
The Copper Mark Recognition for Responsible Production STATUS BY SITE: • Assurance framework developed to demonstrate the copper industry’s AWARDED responsible production practices Atlantic Copper smelter & Henderson mine (CO)** • Producers participating in the Copper Mark are committed to adhering
Slide 17: Financial Highlights
Financial Highlights Sales Data 2Q23 2Q22 Copper Consolidated Volumes, excluding purchases (mm lbs) 1,029 (1) 1,087 Average Realization (per lb) $ 3.84 $ 4.03 Site Production & Delivery Costs (per lb) $ 2.39 $ 2.09 Unit Net Cash Costs (per lb) $ 1.47 $ 1.41 Gold Consolidated Volumes (000’s ozs) 495
Slide 18: 2Q 2023 Mining Operating Summary
2Q 2023 Mining Operating Summary Production and Sales From Mines for 2Q23 by Region North America South America Indonesia (3) 406 386 492 479 354 339 (2) 307 304 (1) 21 20 Cu Mo Au mm lbs mm lbs 000 ozs Production Sales Production Sales Production Sales Production Sales Production Sales North South
Slide 19: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Attractive Debt Maturity Profile (US$ bns) $8 Total Debt & Cash at 6/30/23 Significant liquidity FCX Revolver $ - ▪ $6.7 bn in consolidated cash and cash equiv. FCX/FMC Senior Notes 6.5 $6.4 PT-FI Senior Notes 3.0 ▪ $3.0 bn in availability under FCX credit facility
Slide 20: 2023e Outlook
2023e Outlook Sales Unit Net Cash Operating Capital Outlook Cost of Copper Cash Flows (1,3) Expenditures • Copper: 4.0 billion lbs • Site prod. & delivery • ~$6.4 billion(4) @ $3.90/lb • $3.2 billion (excluding o 2023e: $2.36/lb copper for 2H23e smelter projects(5)) • Gold: 1.75 million ozs o 3Q23e:
Slide 21: 2023e Quarterly Sales
2023e Quarterly Sales Copper 1200 1,125 Gold 600 565 495 Sales 1,029 1,030 Sales 450 420 (million lbs) 1000 (thousand ozs) 270 300 832 150 800 0 1Q23* 2Q23* 3Q23e 4Q23e NOTE: Consolidated gold sales include 74k ozs in 1Q23, 252k ozs in 2Q23, 213k ozs in 600 3Q23e and 288k ozs in 4Q23e for noncontrol
Slide 22: Leach Initiatives Gaining Traction
Leach Initiatives Gaining Traction Further Innovation Significant Operational Initiatives to Build Scale Potential Heat – Proven Enhancer Turning Up the Heat Copper in Leach • Covers installed on over 30% (47 mm ft2) • Evaluating heated injections using Stockpiles Unrecoverable 30% of leach areas re
Slide 23: PT-FI Mine Plan
PT-FI Mine Plan Metal Production, 2022 – 2027e Copper 2023e – 2027e Gold 2023e – 2027e Total: 8.1 billion lbs copper Total: 8.0 million ozs gold Annual Average: ~1.6 billion lbs Annual Average: ~1.6 million ozs 1.9 1.9 1.8 1.7 1.6 1.6 1.6 1.6 1.6 1.6 1.3 1.3 Cu Au bn mm lbs ozs 2022 2023e 2024e 2025
Slide 24: Discretionary Capital Projects
Discretionary Capital Projects* Kucing Liar Lone Star Oxide Expansion ● Commenced long-term mine development activities ● Low capital intensity investment in 2022 ● Capital investment: ~$300 mm (~$80 mm in 2023e) ● Approximate 10-year development timeframe ● Increase stacking rate: 95k t/d to 120k t
Slide 25: Indonesia Downstream Processing Activities
Indonesia Downstream Processing Activities Greenfield Smelter (Manyar) Precious Metals Refinery (PMR) PT Smelting Expansion • 1.7 mm mt of annual concentrate capacity • To be constructed to process gold and • 30% increase to existing smelter to add • Designed to be world’s largest single line flash
Slide 26: Indonesia Manyar Smelter Project Update
Indonesia Manyar Smelter Project Update August 2021 March 2022 July 2022 January 2023 Smelter Project Site View Northwest to Southeast New Greenfield Smelter is ~75% Complete with Commissioning Expected in 2024 NOTE: See slide 25 for additional details. 26
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 12 mos ended ($ in mm) 2Q23 6/30/2023 Net income attributable to common stock $343 $2,107 Interest expense, net 171 599 Income tax provision 539 1,910 Depreciation, depletion and amortization 547 1,969 Metals inventory adjustments 1 13 Accretion and stock-based compens
Slide 28: Foremost in Copper
FOREMOST IN COPPER