Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q1 2005 Earnings Presentation
19 slides from Freeport-mcmoran's earnings presentation, Apr 19, 2005
Slide 1: Freeport-McMoRan Copper & Gold 1st Quarter 2005 Earnings Conference Call
FREEPORT-MCMORAN COPPER & GOLD INC. 1st Quarter 2005 Earnings Conference Call James R. Moffett Chairman of the Board Richard C. Adkerson President and Chief Executive Officer April 19, 2005 www.fex.com FCXx [LISTED ] NYSE
Slide 2: www.fex.com
www.fex.com
Slide 3: Making the Grade: 1Q05 Highlights
” Making T The Grade 1Q05 Sales Stats — PT-FI Share Volumes Realization Copper 328 mm lbs $151 Gold 595,300 ozs. $427 Unit Cash Costs, Net of Credits -- $0.07/Ib. Operating Cash Flows of $162 Million, Capital Expenditures of $26 Million » Cash Flows Expected to Increase Significantly in Balance of t
Slide 4: PT-FI Copper and Gold Sales Expected to Total 1.5 Billion lbs. and 2.9 Million ozs.
ay. PT-FI Copper and Gold Sales Expected to Total 1.5 Billion Ibs. and 2.9 Million ozs. 1Q05 2Q- 4Q05e 2005e Copper (MM Ibs) 328 1,172 1,500 Gold (M ozs) 595 2,305 2,900 Net Cash Costs (per Ib) 7¢ 2¢ 3¢ At Prices of $1.40 Copper and $420 Gold in Balance of Year, Operating Cash Flows Expected to Exce
Slide 5: LME Copper Price and Exchange Stocks
Fr F: ®Q : = ,& _~ 8B .& Ss 2834 a LME Copper Price LME & COMEX Exchange Stocks* e002 po0z 2002 2002 2 g a 8 & g “LME and Comex, excluding Shanghai stocks, producer, consumer and merchant stocks. Producer Hedging Announcements ECB Announcement Vi ri Sept. 11 Attacks on U.S. \ Prior to Iraqi Conflict
Slide 6: TC/RC Markets
‘TC/RC Markets Industry Treatment and Refining Charges - » Combination of Higher 31% Cu (L-T Contract includes PP) Concentrate Production/ Lower Smelter Availabilities » Positive for Smelters with Corresponding Negative Impact to Mining Operations Cents per Pound » Equivalent Change in TC/RC Rates a
Slide 7: PT-FI Mine Plan
ets : PT-FI Mine Plan PT-FI’s Share of Metal Sales, 2004-2009e — Copper, billion lbs Gold, milfion ozs 2005¢ - 2009e PT-Fi Share 2005e — 2009e PT-Fi Share Total: 6.2 billion ibs Total: 11.0 million ozs Annual Average: 1.36 billion ibs Annual Average: 2.2 million ozs 2.9 2.5 1.9 1.8 1.9 1.4 1.5 1.4 1
Slide 8: Mining Sequence in 2005-2009
Bg i is. c % AGS Fv Mining Sequence in 2005-2009 ‘Making . . the Copper Equivalent Cross Section j Sera Future Ore Pushbacks A 5 Year Plan B Primary Year Pushback 2005 6S 2006 6N 2007 7S 2008 7S 2009 33.00% Eq Cu
Slide 9: Mining Sequence in 2005 by Quarter
EAE MES EE. Mining Sequence in 2005 by Quarter Copper Equivalent Cross Section A ¢ Pushback 65 provides about 60% of the ore tonnes B with Pushback 6N providing the balance. ¢ Ore from Pushback 6S contains about 80% of the Cu & over 95% of the Au from the Grasberg pit. > 3.00% Eqcu
Slide 10: 2005 Outlook
a) 2005 Outlook Quarterly Pa yable Metal Sales . PT-FI's share of Copper PT-FI’s share of Gold 1.5 billion pounds 2.9 million ounces 500 1000 900 425 405 800 400 750 ' 328 340 2 650 g 5 2 300 600 4 595 = = & & 3 8 3 200 £ 400 5 & 6 100 200 . 4D a 55% 7) 2 - 4 a 54% d oi a >| | — 5726 >| 1Q05 2Q05 3Q
Slide 11: 2005e Average Unit Net Cash Costs at Various Gold Prices
2005e A verage Unit Net Cash Costs Making at Various Gold Prices rade (¢ per payable pound} 13¢ 9¢ 6¢ 2¢ L 2 $350 $375 $400 $425 $450 NOTE: Based on copper and gold sales of 1.5 billion Ibs and 2.9 million ozs for 2005 and gold prices as noted in the remaining three quarters of 2005. Quarterly unit
Slide 12: Capital Expenditures
( in millions) i) AC & Other 2005 — 2009 Average Annual: ~$145 Million® @ P1-FI - $150 $141 F160 $130 $130 $140 : $130 $115 342! 2004 2005e 2006e 2007e 2008e 2009e e = estimate. Amounts are projections; see cautionary statement * Includes $37 million for PT-FI to increase 202 output to 50,000 metric
Slide 13: Development Projects
i f . = Development Projects DOZ 50K Expansion v $62 million (aggregate) to accelerate development & to add a second crusher & ventilation v Financially Attractive > 27% IRR* at 85¢ & $270 > 46% IRR* at $1.25 & $400 v On-schedule & on-budget Common Infrastructure v Provides access & development for
Slide 14: Big Gossan
- Completing studies associated with the development of this hig grade deposit located near existing mill - Opportunity to train underground manpower - Total recoverable metal of 2.3 billion Ibs Cu & 1.1 million ozs Au (44% more Cu & 57% more Au than 10-K reserves) - Ramp-up to full production of 7,
Slide 15: Common Infrastructure
Common Infrastructure Access to Underground Reserves COW A Ore Bodies Plan View \ mL Grasberg /Grasberg Block Big Gosean “Spur” Bi Progress continues on the Common Infrastructure Infrastructure for access and Fortale development of our underground (Ridge Camp) reserves in the future.
Slide 16: Exploration Potential: Highly Prospective Mineral District
bo CEE. " Ge ee A LS OE A, Making Highly shea sooo Mineral District bee s Sasorony Fautt zone aa * BISMARCK rts ra/ Graber PLATE Bieay (Cy Au Aa) Frond Ranges pasa Fautt ~~ 4 b: Papua, Indonesta Arafura Sea Exploration Potential {acres} AUSTRALIAN PLATE S COW Block 4 24,700: COW Block B 501,500 4m m
Slide 17: 2005e-2007e Average Annual Cash Flow After Capital Expenditures
Fv 2005e — 2007e A verage Annual Cash Flow After Capital Expenditures @ $800 (B in millions, except copper and gold prices) Copper Sensitivities Gold Sensitivities with $400 Gold with $1.25 Copper Available for $600 debt reduction/ shareholder returns 2) “ il $200 {J | Cu care . Lame DIVIGENE) Tipe
Slide 18: Total Debt and Maturities at 3/31/05
$600 $300 $0 ($ in millions) Total Debt @ 3/31/05 Less Cash @ 3/31/05 Total After Cash $579 510 |; I $ 4 7% I Conv. I ! Notes i 106% | Convert | $253 Senior [MN Bgeom FCX Notes j 087 i PRCO } share | t 22 $38 | , $: $14 $14 | 2005 2006 2007 2008 2009 2010 2011 Thereafter [ Equipment Loans OAtlantic
Slide 19: Financial Policy
= Financial Policy > Reduce Debt and Improve Balance Sheet > Shareholder Returns - Dividends - Share Repurchases 19
Freeport Mcmoran Copper & Gold — Q1 2005 Earnings Presentation on 6ix