Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q1 2003 Earnings Presentation
18 slides from Freeport-mcmoran's earnings presentation, Apr 18, 2003
Slide 1: First Quarter 2003 Earnings Conference Call
IFcvi FREEPORT-MeMoRan COPPER & GOLD. 4 Quarter 2003 Earnings Conference Call April 17, 2003 Richard C. Adkerson President and Ghief Financial Officer
Slide 2: Freeport-McMoRan Copper & Gold
Freeport-Mct — Copper & |
Slide 3: First Quarter 2003 Highlights
pene i ee ‘ | | First Quarter 2003 Highlights = ea = Continued Strong Operating and Financial Performance 1Q03 EPS of 33¢/Share vs. 3¢/Share Loss for 1902 Sold 392 Million Pounds of Copper and 583,900 Ounces of Gold During Quarter Unit Net Cash Costs of $0.07/ Ib. Completed Over $1 Billion of New Fi
Slide 4: Financial Summary
Financial Summary {$ in millions, except pricing, per share and cash cost amounts) Average Pricing Revenues Operating Income Net Income (Loss) Before Cumulative Effect Net Income (Loss) Earnings Per Share Before Cumulative Effect Earnings Per Share Average Unit Net Cash Production Cost/Ib of Copper
Slide 5: Financing Transactions
a Te al $500 Million Senior Notes Closed on January 29% 10.125% Annual Interest Rate Notes Due 2010 4-year No Call $575 Million Convertible Senior Notes Closed on February 11% 7.0% Annual Interest Rate Notes Due 2011 Convertible into FCX Common Stock at $30.87 per Share (70% Premium) Completed Tende
Slide 6: Dividend Policy
a Te al Dividend Policy In Connection with Successful Financing Transactions and Strong Outlook for Free Cash Flows, Board of Directors Authorized Annual Common Stock Cash Dividend of $0.36/Share ($0.09 payable quarterly) Equivalent to $52 Million per Annum Based on Current Shares Outstanding Amount
Slide 7: Cash Flow and Cash Balance
{$ in miltions) 1903 2003e Unrestricted Cash, at Beginning of Period $8 $8 Cash From Operating Less Investing A 45 463 Senior Note Transactions Debt Maturities & Prepayments 2) Preferred Dividends Common Dividends Other Items Unrestricted Gash, End of Per assumes prices of $0.73 per pound of copper
Slide 8: Net Debt and Commodity Preferreds
$900 $600 $300 $0 infrastructure, Including Equi Datlant {$ millions) Total Debt excluding Preferreds at 3/31/03, Commodity Preferreds ($325 gold) Total Less Cash Less Restricted Investments Total Net Debt & Commodity Preferreds 1 Copper USenior Notes. Convert jes _ Commodi ‘2B ased on 3/31/02 plane
Slide 9: Real Assets / Real Value
REAL ASSETS/ REAL VALUE ‘Kucing Liar Concentrator 2
Slide 10: Freeport-McMoRan Copper & Gold
= Freeport-McMoRan >] Copper & | = = = 7 2
Slide 11: PT-FI Mine Plan Projections
PT-FI Mine Plan Projections Aggregate 100% Metal! Sale: a 2001 2002 2003e 20046 2005e: 20066: 20076: e = estimates Copper, billion Ibs || Gold, milion ozs, Nero PT ii
Slide 12: Quarterly Sales Volumes
Quarterly Sales Volumes PT-FI’s Share (pounds in milions, ounces io 000s) Copper Gold 285 446 430 700 92 on 700 20 60 340 20 296 a / ' 2002 P0832 2002 Z008e 19 Billion 414 Billion ZS Million Zs iiliicg =
Slide 13: Unit Production Costs
LAMM Vest E o i] Unit Production Costs 1 Qtr. 2 eee 2001 2002 2003e’ 2003 Site Production & Delivery 39¢: 36¢ 4i¢ 40¢ Royalties 2 2 2 2 Treatment Charges 18 18 17 18 Gold/Silver Credits (52) (48), (60), (53) Net Cash Unit Costs 7: Be Ot: 7h: DDA Rate 18¢ iat: ibt: ibt: * Estimate based on 14 bilion
Slide 14: Net Cash Production Costs at Varying Gold Prices
~ Net Cash Production Costs at Varyi Average seanitral Gorn Prices : $275 $300 $325 $350 $375 $400 Estimates based on sales of 2003 sales volumes of 14 billion patsyds arpper ang 2a smihon Ounces gaia)
Slide 15: Capital Expenditures
pene i — a y : | | Fc shee Capital Expendiaiiee 1999 2000 2001 2002 (si co 5 milons) 20032. 20028) Ac & Other Derr 2o0ne Bo0ee, Booze) Projected
Slide 16: Price Sensitivities
+$25/0z Gold +10¢/Ib Copper PP $70 (impact Per Share (¢/share) (MM Impact (¢ miflians), Ate: Assumes sales of 1.4 bilion Ibs, copper and 2.6milion O75, 001d; excudes gam, on redemption of Gold I Preferreds ard dilstive impact of COnveribie Wotes ‘ig
Slide 17: Implied FCX Share Value
penn Et Implied FCX Share Value ($/share) Gold Reserves Value (¢/a7) Mi copper @10¢/Ib _ “Enterprise Value Jess implied value of monty interests, Cebt & preferred stocks @ 12/31/02; assiimes conversion Of convert le. hotes into equity at values abovesT4 a0 per share. 7,
Slide 18: Question & Answer
Question & Answer Session in Progress
Freeport Mcmoran Copper & Gold — Q1 2003 Earnings Presentation on 6ix