Slide 1: FCX Conference Call 4th Quarter and Year Ended 2023 Results
FCX Conference Call th 4 Quarter and Year Ended 2023 Results January 24, 2024 fcx.com
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: 2023 Accomplishments
2023 Accomplishments • Strong Execution • Sustained large-scale production Add photo • Effective management of costs and capital in a challenging environment to side from KK • Outstanding performance in Indonesia • Growth in production: 6% for copper and 10% for gold (2023 vs. 2022) • Multiple opera
Slide 4: Sustaining Large-Scale Production / Financially Strong
Sustaining Large-Scale Production / Financially Strong Consolidated Copper Production Consolidated Gold Production Unit Net Cash Costs (1) (bn lbs) (mm of ozs) ($/lb) 4.2 4.2 2.0 3.8 1.8 $1.50 $1.60 $1.61 1.4 2021 2022 2023 2021 2022 2023 2022 2023e 2023 Jan. Guidance Cash Flow (3) CAPEX, excluding
Slide 5: Notable 4Q23 Operating Highlights
Notable 4Q23 Operating Highlights Key Stats Copper Sales (mm lbs) Gold Sales (k ozs) Unit Net Cash Costs ($/lb) 4Q23 Actual 1,116 549 $1.52 October Estimate 1,085 580 $1.58 North America South America Indonesia • Mining rates up 9% vs. 4Q22 • Mill rates continue to be strong • Ore mined increased 8%
Slide 6: PT-FI Sustaining Large-scale, Low-cost Production
PT-FI Sustaining Large-scale, Low-cost Production • World’s largest underground copper operation * Unit Net Cash Cost ($/lb of Cu) • World’s second largest copper mine by production * 2019 2020 2021 2022 2023 $1.28 $0.43 $0.19 $0.09 $0.10 • Produced 3.1 mm dmts of copper concentrate in 2023 – Annual
Slide 7: Indonesia Downstream Processing Activities
Indonesia Downstream Processing Activities • PT Smelting Expansion Completed in December 2023 • Greenfield Smelter (Manyar) Over 90% complete • New capacity: 1.3 million mt of copper concentrate per year • Project expected to be commissioned later in 2024 2024e construction spending on Manyar & Prec
Slide 8: Americas Leach Innovation Initiatives
Americas Leach Innovation Initiatives Low Cost, High Value Copper in Leach Stockpiles Unrecoverable Phase 1 by Traditional Leach Methods Reached ~200 mm lbs annual run rate in 4Q23 Phase 1 Stats Significant Potential • 47 mm lbs in 4Q23 (~250% higher than 4Q22) By Mine 38 bn lbs Contained * • Total
Slide 9: Copper - "The Metal" of Electrification
Copper - “The Metal” of Electrification Structurally Supported by Favorable Fundamentals Inventories Cu Price • Near-term fundamentals significantly (metric tons) ($/lb) 1,500,000 $5.00 improved in late 2023 • Global demand remains strong, supported by renewables/EV/data centers Copper Price 1,200,0
Slide 10: Brownfield Growth Pipeline
Brownfield Growth Pipeline FCX Copper Reserves (1) 104 bn lbs FCX Copper Resources (2) 211 bn lbs Americas Percentage 72% Americas Percentage 77% Americas’ Identified Projects: ~1.7 bn lbs of Estimated Indonesia Development Incremental Annual Copper Production (mm lbs) in Progress By Project Timelin
Slide 11: Team Freeport – World Class Project Developers
Team Freeport – World Class Project Developers Grasberg Open Pit & Cerro Verde Mill El Abra PT-FI Smelter Underground Development Expansion Sulfolix Projects Advancements in Safford/ Morenci Tenke Fungurume Greenfield Leach Technology Lone Star Expansion Development / Expansion* *Sold in 2016 11
Slide 12: 2024 Focus Areas
2024 Focus Areas • Continued strong execution of plans globally • Ongoing cost and capital discipline • Build additional scale in leach initiatives • Enhance productivity and asset efficiency in U.S. • Complete Indonesia smelter projects & successful ramp-up • Secure long-term mining rights in Indon
Slide 13: Annual Sales Profile
Annual Sales Profile January 2024 Estimate 2.0 Copper 5.0 Gold 2 1.7 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, 1.0 mm ozs in 2024e, 770k ozs in 2025e and 770k ozs in 2026e for noncontroll
Slide 14: EBITDA and Cash Flow at Various Copper Prices
EBITDA and Cash Flow at Various Copper Prices Assuming $2,000/oz gold, $19/lb molybdenum Sensitivities Average ’25e/’26e ($ in bns except copper, gold and molybdenum prices) (US$ in mms) EBITDA $16 EBITDA $12 Copper +/-$0.10/lb $430 Molybdenum +/-$1.00/lb $ 80 $8 Gold +/-$50/oz $ 75 $4 Average Curre
Slide 15: Consolidated Capital Expenditures
Consolidated Capital Expenditures Excluding Indonesia Smelter Projects CAPEX (1) ($ in bns) $3.8 $3.6 $3.1 Discretionary Discretionary Discretionary $1.2 $1.2 $0.6 Major Planned Planned (2) Planned Projects $1.7 (2) $1.2 (2) $1.1 (2) $1.1 Other Other Other $1.3 $1.3 $1.5 2023 2024e 2025e (1) See sli
Slide 16: 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: Net Debt/ $3.8 bn Distributed • Positioned for future growth Adj
Slide 17: Responsible producer of scale Long-lived
Responsible Experienced producer of scale management team Long-lived Strong balance reserves sheet Embedded Cash returns growth options to shareholders
Slide 18: Foremost in Copper
FOREMOST IN COPPER
Slide 19: Reference Slides
THE POWER OF COPPER Reference Slides FREEPORT FOREMOST IN COPPER
Slide 20: 2023 ESG Highlights
2023 ESG Highlights • Achieved the Copper Mark and Molybdenum Mark at all sites globally • Advanced plans to transition existing energy source at PT-FI from coal to liquefied natural gas with the development of a new 265MW gas-fired combined cycle facility • Entered into a new renewable energy power
Slide 21: The Copper Mark
The Copper Mark Recognition for Responsible Production • FCX has achieved, and is committed to maintaining, the Copper Mark and AWARDED SITES Molybdenum Mark at all of its sites globally Atlantic Copper smelter & Henderson mine (CO) refinery (Spain) Miami smelter, mine & rod Bagdad mine (AZ) mill (A
Slide 22: 2023 Operational and Financial Highlights
2023 Operational and Financial Highlights Copper Adjusted EBITDA Production Sales Price Realization (1) $8.8 bn 4.2 4.1 $3.85 Operating Cash Flow bn lbs bn lbs per lb $5.3 bn Gold Net of $0.9 bn in working capital and (1) other uses 2.0 1.7 $1,972 Capital Expenditures mm ozs mm ozs per oz $3.1 bn $4
Slide 23: Financial Highlights
Financial Highlights Sales Data 4Q23 2023 Copper Consolidated Volumes, excluding purchases (mm lbs) 1,116 4,086 Average Realization (per lb) $ 3.81 $ 3.85 Site Production & Delivery Costs (per lb) $ 2.25 $ 2.36 Unit Net Cash Costs (per lb) (1) $ 1.52 $ 1.61 Gold Consolidated Volumes (000’s ozs) 549
Slide 24: 2023 Operational Data by Region
2023 Operational Data by Region 2023 Sales by Region North America South America Indonesia 1,525 1,361 1,200 1.7 81 (1) Cu Mo Cu Cu Au mm lbs mm lbs mm lbs mm lbs mm ozs North South 2023 Unit Net Cash Costs (per lb of Cu) America America Indonesia Consolidated Site Production & Delivery (2) $3.00 $2
Slide 25: 4Q 2023 Mining Operating Summary
4Q 2023 Mining Operating Summary Sales From Mines for 4Q23 by Region North America South America (2) Indonesia (3) 511 544 387 455 318 338 (1) 287 317 22 19 (1) Cu Mo Au mm lbs mm lbs 000 ozs 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 North South 4Q23 Unit Net Cash Costs (per lb of Cu) Americ
Slide 26: Actions in 2023 to Strengthen Balance Sheet
Actions in 2023 to Strengthen Balance Sheet Open Market Debt Retirements Consolidated Debt ($ in bns) ▪ Purchased ~$233 mm of Sr. Notes in open market ▪ 5% discount to par $10.6 $9.4 ▪ Annual interest savings ~$10 mm Repaid FCX 3.875% Senior Notes totaling ~$1 bn at maturity ▪ Annual interest saving
Slide 27: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Attractive Debt Maturity Profile (US$ bns) $8 Total Debt & Cash at 12/31/23 Significant liquidity FCX Revolver $ - ▪ $4.8 bn in consolidated cash and cash equiv. (1) FCX/FMC Senior Notes/Other 6.4 PT-FI Senior Notes 3.0 ▪ $3.0 bn in availability under FCX credit fa
Slide 28: Long-Lived Reserve Base
Long-Lived Reserve Base ~25 year implied reserve life for copper, excluding mineral resources Incremental Copper Reserves (1) By Region Mineral Mineral Consolidated Reserves (1) Resources (2) As of 12/31/2023 (recoverable) (contained) South Indonesia America Copper (bn lbs) 104.1 210.7 28% 29% Gold
Slide 29: 2024e Outlook
2024e Outlook Sales Unit Net Cash Operating Capital Outlook Cost of Copper Cash Flows (1,3) Expenditures • Copper: 4.1 billion lbs • Site prod. & delivery • ~$5.8 billion(4) @ $3.75/lb • $3.6 billion (excluding o 2024e: $2.37/lb copper for 2024e smelter projects(5)) • Gold: 2.0 million ozs o 1Q24e:
Slide 30: 2024e Operational Data
2024e Operational Data 2024e Sales by Region North America South America Indonesia 1,680 1,280 1,130 (2) 2.0 85 (1) Cu Mo Cu Cu Au mm lbs mm lbs mm lbs mm lbs mm ozs North South 2024e Unit Net Cash Costs (3) (per lb of Cu) America America Indonesia Consolidated Site Production & Delivery (4) $3.19 $
Slide 31: 2024e Quarterly Sales
2024e Quarterly Sales Copper 1200 Gold 600 575 475 475 Sales 1,030 1,060 Sales 450 450 1,000 1,000 (million lbs) 1000 (thousand ozs) 300 150 800 0 1Q24e 2Q24e 3Q24e 4Q24e NOTE: Consolidated gold sales include 295k ozs in 1Q24e, 243k ozs in 2Q24e, 243k ozs in 600 3Q24e and 231k ozs in 4Q24e for nonco
Slide 32: PT-FI Mine Plan
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 2.0 1.8 1.7 1.7 1.7 1.6 1.6 1.6 1.5 1.5 1.3 Cu Au bn mm lbs ozs 2023 2024e 2025e 2026
Slide 33: 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 (~$65 mm in 2024e) ● Capital investment: ~$400 mm/yr average ● Increas
Slide 34: 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 o Expected to expand concentrator capacity by ~90-105k t/d o
Slide 35: 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 o ~30 trucks o CAPEX ~$55 mm o Target completion 3Q25 • Reduces human exposure to active mining areas • Potential for efficiency gains
Slide 36: Combined Cycle Gas Turbine (CCGT) Power Plant at PT-FI
Combined Cycle Gas Turbine (CCGT) Power Plant at PT-FI Offshore • Completed Feasibility Study to replace existing coal LNG Carrier plant at Grasberg with 265MW gas-fired combined LNG transfer cycle facility Floating Storage & • ~$1 bn project (incremental ~$0.4 bn compared to Regas Unit (FSRU) previ
Slide 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 12 mos ended 12 mos ended ($ in mm) 4Q23 12/31/2023 12/31/2022 Net income attributable to common stock $388 $1,848 $3,468 Interest expense, net 97 515 560 Income tax provision 724 2,270 2,267 Depreciation, depletion and amortization 589 2,068 2,019 Net gain on sales of
Slide 38: Foremost in Copper
FOREMOST IN COPPER