Freeport-mcmoran, Inc. · NYSE:FCX

Freeport-mcmoran — Freeport-McMoRan Copper & Gold — BMO Capital Markets Global Metals & Mining Conference 2011

23 slides from Freeport-mcmoran's conference presentation, Feb 28, 2011

  1. Slide 1: Proven Performance, Shining Future

    Richard C. Adkerson President & CEO PROVEN PERFORMANCE SHINING FUTURE February 28, 2011 www.fcx.com

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

    Cautionary Statement Regarding Forward-Looking Forward Looking Statements This presentation contains forward-looking statements in which we discuss factors we believe may affect our potential performance in the future. Forward-looking statements are all statements other than statements of historical

  3. Slide 3: FCX's Global Footprint

    FCX’s C sG Global oba Footprint ootp t Major Mine Operations & Development Projects All major assets majority-controlled and operated North America1 Copper Reserves Copper/Gold/Silver Cu 42.2 billion lbs Mo 2.75 billion lbs Molybdenum Sales Cobalt Grasberg (90.64%) Cu 1.2 billion lbs Reserves Mo 70

  4. Slide 4: World's Leading Copper Producers

    World’s Leading g Copper pp Producers Top 10 Copper Producers (2010e) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX BHP Billiton Xstrata Anglo Rio Tinto Southern KGHM Polska RAO Norilsk Antofagasta American Copper Miedz ____________________ Source: Brook Hunt 2Q10 Report.

  5. Slide 5: 2010 Highlights

    2010 0 0 Highlights g g ts  Strong Operating and Financial Performance  Initiated Restart/Optimization Projects to Add ~500 Million Pounds of Annual Copper Production  Advanced Growth Projects/Focus on Value Creation  Substantial Reserve Additions  Enhanced Financial and Liquidity Position  In

  6. Slide 6: Strong Markets

    Strong g Markets 2,500 500 2,000 LME Copper Price 400 0’s Metric Tons s Cents Per Poun C 1,500 300 1,000 200 000 nd 500 100 LME & COMEX Exchange Stocks* 0 0 Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- 99 99 00 00 01 01

  7. Slide 7: Value Creation Focus

    Value a ue Creation C ea o Focus ocus INVESTMENT CASH MINERAL RESERVE IN ATTRACTIVE PRODUCTION FLOWS/ RESOURCES ADDITIONS DEVELOPMENT GROWTH RETURNS PROJECTS 7

  8. Slide 8: Significant Reserve Additions

    Significant g Reserve Additions Since 12/31/06 2010 Additions +43 billion lbs Cu* +20 billion lbs Cu* Post-Merger Candelaria/Ojos / j Bagdad Cerro Verde 20% Morenci Morenci 26% Bagdad Cerro 17% Verde Sierrita Sierrita 27% Chino 7% Tenke 3% Candelaria/Ojos Balance, net * Preliminary proven and probab

  9. Slide 9: Copper Reserves & Mineralized Material

    Copper Reserves & Mineralized Material as of 12/31/10 billion lbs of copper 12/31/10 230 Mineralized Material (b) by Geographical Region Mineralized 110 Material (b) billion (contained copper) lbs North 120 at $2.20 Cu price America 54% South Indonesia America Reserves 17% 17% 12% at $2.00 Cu price

  10. Slide 10: Development Projects Update

    Development e e op e t Projects ojects Update North America  Miami Mine Restart  Morenci Mill Restart & Ramp-up Sulfolix First Stacking January 2011  Safford Sulphur p Burner  Chino Restart Morenci Mill Facility South America  El Abra Sulfolix  Cerro Verde Expansion Indonesia – Underground Dev

  11. Slide 11: Tenke Fungurume

    Tenke Fungurume  Mill operated at 11K t/d in 4Q10 & Mill 10K t/d in 2010, above 8K t/d design capacity  Sold 68MM lbs Cu & 7MM lbs Co in 4Q10 Q and 262MM lbs Cu & 20MM lbs Co in 2010  Cu production expected to increase to 290MM lbs/year in 2011  Potential to add additional 100-200 mm lbs cu over

  12. Slide 12: Climax Restart

    Climax Restart  Advancing construction to provide flexibility for start start-up up  Completed pebble crusher & stockpile dome ring foundations  Mill foundations ready for shells & assembly commenced  Flotation cell foundations nearing SAG & Ball Mill completion  Mine development to commence in

  13. Slide 13: FCX Announced Copper Additions To Date

    FCX C Announced ou ced Coppe Copper Additions dd t o s To o Date ate Additional Annual Copper pp +~500mm lbs 40 Tenke Mill & Mine Rate Increase (2011) 30 Cerro Verde Debottleneck (2011) Chino Mine & Mill Restart 200 (ramp up in 2012*) (ramp-up 100 Miami Mine Restart (2012) Morenci Mill Restart & 125

  14. Slide 14: FCX Copper Projects

    FCX Copper Projects billion lbs copper annually Replacement Potential New Projects Copper Sources El Abra Sulfolix SA 0.3 Projects 0.85 Tenke 0.25 Grasberg Oxide 0.6 Underground NA 1.1 Projects 1.4 billion lbs Cu 1.7 billion lbs Cu Other Opportunities • Tenke Sulfides • NA Mill Projects (Sierrita, B

  15. Slide 15: 2011 Outlook

    2011 Outlook  Sales Outlook: • Copper: 3.85 Billion lbs. • Gold: 1.4 Million ozs. • Molybdenum: 70 Million lbs.  Unit Net Cash Cost (1): • $1.10/lb  Operating Cash Flows (2): • ~$8 Billion (@$4.25 copper) • Each 10¢/lb Change in Copper = $300 MM in 2011  Capital Expenditures: • $2.5 Billion (1)

  16. Slide 16: Near-Term Sales Profile

    Near-Term Near Term Sales Profile Excludes current projects under evaluation Gold Sales (million ozs) Copper Sales (billion lbs) 1.9 19 2 1.7 5 1.4 1.3 1 4.2 4.1 39 3.9 3.85 4 0 2010 2011e 2012e 2013e 3 ____________________ Note: Consolidated gold sales include approximately 184k ozs in 2010, 2010 1

  17. Slide 17: 2011 Operating Estimates

    2011 Operating p g Estimates 2011e Unit Production Costs North South (per pound of copper) America America Indonesia Africa Consolidated Cash Unit Costs (1) Site Production & Delivery (2) $1.73 $1.32 $2.08 $1.41 $1.66 By-product Credits (0.44) (0.24) (1.81) (0.65) (0.75) Treatment Charges 0 10 0.10

  18. Slide 18: EBITDA and Cash Flow at Various Copper Prices

    EBITDA and Cash Flow at Various Copper Prices Average EBITDA* ($1,200 Gold & $12 Molybdenum) $15 (US$ billions) $12 $9 $6 $3 $0 Cu $3.50/lb Cu $4.00/lb Cu $4.50/lb Average Operating Cash Flow (excluding Working Capital changes)* ($1,200 Gold & $12 Molybdenum) $10 (US$ billions) $8 $6 $4 $2 $0 Cu $3.

  19. Slide 19: Sensitivities

    Sensitivities Operating Ch Change EBITDA C h Fl Cash Flow (US$ millions) Copper: -/+ $0.10/lb $375 $260 Molybdenum: -/+ $1.00/lb $60 $50 Gold: -/+ $50/ounce $70 $40 Diesel(1): -/+ 10% $70 $40 Purchased Power(2): -/+ 10% $45 $25 Currencies(3): +/- 10% $120 $70 ____________________ (1) $2.80/gallon ba

  20. Slide 20: Capital Expenditures

    Capital p Expenditures p (1) Excludes current projects under evaluation (US$ billions) Major Projects All Other $3 0 $3.0 $2.5 $2.5 $2.1 $2.0 1.2 $1.4 $1.5 1.2 $1.0 0.7 (3) 1.3 (4) $0 5 $0.5 (2) (4) 0.9 0.7 $0.0 2010 2011e 2012e (1) Capital expenditure estimates will continue to be reviewed and revi

  21. Slide 21: Balance Sheet

    Balance Sheet  Repaid $3.7 bn in Debt Since (US$ billions) YE 2008 (50% Reduction) (2) $20 $17.6 (1)  Significant Si ifi t Liquidity Li idit  Strong Credit Metrics $15  No Near-term Maturities  Investment I t t Grade G d R Rated t d by b Total Debt S&P, Moody’s, Fitch $10 $7.4 $5 $3.7 $0 At Tim

  22. Slide 22: Financial Policy

    Financial Policy o y  Maintain Strong Balance Sheet & Liquidity Position  Invest in Attractive Growth Projects  Opportunistic Debt Repayment  December 2010 Board Actions • $1.00/Share Supplemental Common Stock Dividend (Paid December 2010) • 2-for-1 Stock Split (Effective February 1, 2011)  Cur

  23. Slide 23: FCX Investment Summary

    FCX Investment Summary y  World’s Premier Publicly Traded Copper Company  World World’s s Largest Molybdenum Producer & Significant Gold Producer  Long Long-lived lived Reserves, Geographically Diverse Operations  Flexible e b e Operating Ope at g Structure St uctu e Can Ca Respond espo d to Var

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