Slide 1: FCX Conference Call 2nd Quarter 2024 Results
FCX Conference Call 2nd Quarter 2024 Results July 23, 2024 fcx.com 1
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements in which FCX discusses its potential future performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating t
Slide 3: Highlights
Highlights • Strong margins and cash flows Key Stats 2Q24 1H24 Copper Sales (mm lbs) 931 2,039 • Production performance generally in-line Gold Sales (k ozs) 361 929 Copper Realization ($/lb) $4.48 $4.25 • Sales volumes impacted by previously announced Gold Realization ($/oz) $2,299 $2,236 shipping d
Slide 4: Copper Market Commentary
Copper Market Commentary Inventories Cu Price (metric tons) ($/lb) Copper Prices ($/lb) 1,500,000 $5.00 2Q Avg YTD Avg Current LME Copper LME Settlement $4.42 $4.15 $4.14 Settlement Price 1,250,000 $4.50 COMEX $4.55 $4.24 $4.18 • U.S. demand remains strong 1,000,000 $4.00 • Weak property sector and
Slide 5: 2Q 2024 Operations Update
2Q 2024 Operations Update North America South America Indonesia Cu Sales: 292 mm lbs Cu Sales: 302 mm lbs Cu Sales: 337 mm lbs Unit Net Cash Costs: $3.19/lb Unit Net Cash Costs: $2.46/lb Au Sales: 356 k ozs Unit Net Cash Credits: 21¢/lb Cerro Verde • Ongoing efforts to mitigate lower ore grades • Mi
Slide 6: Americas Leach Innovation Initiatives
Americas Leach Innovation Initiatives Low Cost, High Value Targeting Copper in Stockpiles Unrecoverable by Traditional Leach Methods with Precision Operating Techniques Scaling the Opportunity Significant Potential Long-term Production Target (mm lbs) 39 bn lbs Contained * ~800 mm lbs/annum 55 51 46
Slide 7: Project Pipeline Progress Report
Project Pipeline Progress Report New Leach Bagdad Lone Star El Abra Grasberg Technologies Expansion Expansions Expansion District Americas Arizona Arizona Chile Indonesia o Sustaining initial target o Targeting investment o Commenced pre- o Preparing EIS, targeting o Kucing Liar project in of ~200 m
Slide 8: PT-FI's IUPK Extension Update
PT-FI’s IUPK Extension Update Plan View Potential beyond 2041 • Government issued regulation in 2Q to allow life-of-mine extension Mineral Resources Potential/Exploration Targets • Conditions for IUPK holders include o Ownership of integrated downstream facilities that have entered the operational s
Slide 9: Annual Sales Profile
Annual Sales Profile July 2024 Estimate Copper 5.0 Gold 2 1.7 1.8 Sales 4.3 Sales 1.5 1.5 4.2 (billion lbs) 4.1 4.1 (million ozs) 4.0 1 0 3.0 2023 2024e 2025e 2026e NOTE: Consolidated gold sales include 808k ozs in 2023, 933k ozs in 2024e, 770k ozs in 2025e and 770k ozs in 2026e for noncontrolling i
Slide 10: EBITDA and Cash Flow at Various Copper Prices
EBITDA and Cash Flow at Various Copper Prices Assuming $2,300/oz gold, $20/lb molybdenum ($ in bns except copper, gold and molybdenum prices) Sensitivities Average ’25e/’26e (US$ in mms) EBITDA $16 EBITDA $12 Copper +/-$0.10/lb $430 Molybdenum +/-$1.00/lb $ 80 $8 Gold +/-$50/oz $ 75 $4 Average Curre
Slide 11: Consolidated Capital Expenditures
Consolidated Capital Expenditures Excluding Indonesia Downstream Projects CAPEX (1) ($ in bns) $4.1 $3.7 Discretionary $3.1 Discretionary $1.3 Discretionary $1.2 Major $0.6 Projects Planned Planned (2) (2) $1.7(2) Planned $1.2 $1.2 (2) $1.1 Other Other Other $1.3 $1.4 $1.6 2023 2024e 2025e (1) See s
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 • Strong credit metrics $4.3 bn Distributed • Positioned for future growth • Investment G
Slide 13: Executing Clearly Defined Strategy Focused On Copper
Executing Clearly Defined Strategy Focused On Copper Responsible Long-lived Organic producer of scale reserves growth options Cash returns to Experienced Solid balance shareholders management team sheet 13 13
Slide 14: Reference Slides
Reference Slides FREEPORT FOREMOST IN COPPER
Slide 15: Financial Highlights
Financial Highlights Sales Data 2Q24 2Q23 Copper Consolidated Volumes, excluding purchases (mm lbs) 931 1,029 Average Realization (per lb) $ 4.48 $ 3.84 Site Production & Delivery Costs (per lb) $ 2.56 $ 2.39 Unit Net Cash Costs (per lb) $ 1.73 (1) $ 1.47 Gold Consolidated Volumes (000’s ozs) 361 49
Slide 16: 2Q 2024 Mining Operating Summary
2Q 2024 Mining Operating Summary Sales From Mines for 2Q24 by Region North America South America (2) Indonesia (3) 386 492 339 337 292 302 304 356 (1) 21 20 (1) Cu Mo Au mm lbs mm lbs 000 ozs 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 North South 2Q24 Unit Net Cash Costs / (Credits) (per lb o
Slide 17: Commissioning of New Indonesia Smelter
Commissioning of New Indonesia Smelter • Smelter construction substantially completed o Commissioning operations in progress o Copper cathode production expected in coming months o Full ramp-up anticipated by YE 2024 • Precious Metals Refinery completion and full production expected by YE 2024 • Pos
Slide 18: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Attractive Debt Maturity Profile (US$ bns) $8 Total Debt & Cash at 6/30/24 Significant liquidity FCX Revolver $ - ▪ $5.3 bn in consolidated cash and cash equiv. FCX/FMC Senior Notes/Other 6.4 PT-FI Senior Notes 3.0 ▪ $3.0 bn in availability under FCX credit facilit
Slide 19: 2024e Outlook
2024e Outlook Sales Unit Net Cash Operating Capital Outlook Cost of Copper Cash Flows (1,4) Expenditures • Copper: 4.1 billion lbs • Site prod. & delivery • ~$7.2 billion @ $4.25/lb • $3.7 billion (excluding o 2024e: $2.46/lb copper for 2H24e downstream projects) • Gold: 1.8 million ozs o 3Q24e: $2.
Slide 20: 2024e Operational Data
2024e Operational Data 2024e Sales by Region North America South America Indonesia 1,670 1,255 1,165 1.8 (2) 82 (1) Cu Mo Cu Cu Au mm lbs mm lbs mm lbs mm lbs mm ozs North South 2024e Unit Net Cash Costs / (Credits) (3) America America Indonesia Consolidated Site Production & Delivery (4) (per lb of
Slide 21: 2024e Quarterly Sales
2024e Quarterly Sales Copper 1200 1,108 Gold 600 568 475 Sales 1,040 Sales 450 425 1,010 361 (million lbs) 1000 (thousand ozs) 931 300 150 800 0 1Q24 2Q24 3Q24e 4Q24e NOTE: Consolidated gold sales include 289k ozs in 1Q24, 183k ozs in 2Q24, 243k ozs in 600 3Q24e and 218k ozs in 4Q24e for noncontroll
Slide 22: PT-FI Mine Plan Metal Production, 2023 – 2028e
PT-FI Mine Plan Metal Production, 2023 – 2028e Copper 2024e – 2028e Gold 2024e – 2028e Total: 8.4 billion lbs copper Total: 7.9 million ozs gold Annual Average: ~1.7 billion lbs Annual Average: ~1.6 million ozs 2.0 1.9 1.8 1.7 1.7 1.7 1.6 1.6 1.6 1.5 1.5 1.4 Cu Au bn mm lbs ozs 2023 2024e 2025e 2026
Slide 23: Discretionary Capital Projects
Discretionary Capital Projects* Kucing Liar Lone Star Oxide Expansion ● Commenced 10-year mine development in 2022 ● Low capital intensity investment ● Sustain large-scale, low-cost Cu & Au production ● Capital investment: ~$300 mm (~$60 mm in 2024e) ● Capital investment: ~$400 mm/yr average ● Incre
Slide 24: Bagdad 2X Expansion Update
Bagdad 2X Expansion Update • Operation located in northwest Arizona • Reserve life exceeds 80 years • Converting existing manned haul truck fleet to 100% autonomous • Completed technical studies in late 2023 to double concentrator capacity – Expected to expand concentrator capacity by ~90-105k t/d –
Slide 25: Autonomous Haulage at Bagdad
Autonomous Haulage at Bagdad • Bagdad expected to become first U.S. mine with a fully autonomous haulage system • Converting existing manned fleet to 100% autonomous – ~30 trucks – CAPEX ~$65 mm – Target completion YE 2025 • Potential for efficiency gains / productivity improvements • Emissions redu
Slide 26: Combined Cycle Gas Turbine Power Plant at Grasberg
Combined Cycle Gas Turbine Power Plant at Grasberg Offshore • Completed feasibility study to replace existing coal plant LNG Carrier at Grasberg with 265MW gas-fired combined LNG transfer cycle facility Floating Storage & Regas Unit (FSRU) • ~$1 bn project (incremental ~$0.4 bn compared to Subsea ga
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 6 mos ended ($ in mm) 2Q24 2Q23 6/30/24 Net income attributable to common stock $616 $343 $1,089 Interest expense, net 88 171 177 Income tax provision 754 539 1,266 Depreciation, depletion and amortization 509 547 1,104 Accretion and stock-based compensation 57 50 136
Slide 28: FOREMOST IN COPPER
FOREMOST IN COPPER