Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport-McMoRan Copper & Gold — Deutsche Bank BRICS Metals and Mining Conference 2008
18 slides from Freeport-mcmoran's conference presentation, Nov 11, 2008
Slide 1: Richard C. Adkerson, President & CEO
Richard C. Adkerson President & CEO November 11, 2008 www.fcx.com
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements in which we discuss factors we believe may affect our performance in the future. Forward-looking statements are all statements other than historical facts, such as statements regarding pro
Slide 3: FCX Investment Summary
FCX Investment Summary World’s Premier Publicly Traded Copper Company World’s Largest Molybdenum Producer & Significant Gold Producer World Class, Long-lived, Geographically Diverse Operations Strong Cash Flows and Financial Strength Attractive Project Pipeline Significant Exploration Po
Slide 4: Revenue / Production Mix
Revenue / Production Mix Mining Revenue by Commodity Copper Production by Method 2007 Pro Forma 2007 Pro Forma Gold 10% SX/EW SX/EW Concentrate Concentrate Molybdenum 35% 35% 65% 65% 12% Copper 78% 4
Slide 5: World's Leading Copper Producers
World’s Leading Copper Producers Top 10 Copper Producers (2008E) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX BHP Billiton Xstrata Rio Tinto Anglo Southern RAO Norilsk KGHM Polska Kazakhmys American Copper Miedz ____________________ Source: Brook Hunt 3Q08 Report. Rankin
Slide 6: Geographically Diverse
Geographically Diverse Major Mine Operations & Development Projects All major assets majority-controlled and operated North North America America11 Reserves Copper Cu 25.8 billion lbs Copper/Gold/Silver Mo 1.8 billion lbs Molybdenum Production Grasberg (90.64%) Cu 1.4 billion lbs Reserves Mo 74 mill
Slide 7: Long-Lived Asset Base
Long-Lived Asset Base Consolidated Consolidated Reserves 12/31/07 (1) Copper (billion lbs) 93.2 Molybdenum (billion lbs) 2.0 Gold (million ozs) 41.0 Average Sales Volumes (2008-2010) Copper (billion lbs) 4.5 Molybdenum (million lbs) 85 Gold (million ozs) 1.9 Implied Reserve Life (years) Copper 21 Mo
Slide 8: North America
North America Operating Mines: 6 Copper, 1 Molybdenum Henderson Morenci Safford Miami Smelter 8
Slide 9: South America
South America 4 Operating Copper Mines Cerro Verde in Peru Cerro Cerro Verde Verde Mill Mill El Abra in Chile Candelaria/Ojos 9
Slide 10: Indonesia – Grasberg
Indonesia ̶ Grasberg Grasberg Grasberg Mill Complex Underground Development 10
Slide 11: Democratic Republic of Congo Tenke Fungurume
Democratic Republic of Congo Tenke Fungurume Dump Pocket Tailings Storage Solution Extraction Stockpile & Heavy Dump Pocket Duty Shop SAG Mill Leach Acid & CCD Plant Solution Cobalt Extraction Precipitation Electrowinning Building Electrowinning SAG Mill Tenke Fungurume Construction Site, 3Q08 11
Slide 12: A World of Opportunities
A World of Opportunities Exploration Targets in Major Mineral Districts ~100 drill rigs operating around the world Safford/Lone Star/Morenci Cerro Verde Tenke Fungurume/Africa Grasberg/Indonesia District 25 rigs 11 rigs 18 rigs 14 rigs SW US 41 rigs Indonesia Africa 14 rigs South 18 rigs America 20
Slide 13: Recent Events
Recent Events Global Market Conditions Financial Market Turmoil/Credit Crisis Economic Weakness in U.S./Europe Market Concerns About Slower Growth in China Sharp Decline in Commodities Prices During September/October Underlying Fundamentals of Copper Business Remain Positive Low Invent
Slide 14: Markets
Markets 2,000 400 1,750 350 1,500 300 000’s Metric Tons Cents Per Pound LME Copper Price 250 1,250 1,000 200 750 150 500 100 250 50 LME & COMEX Exchange Stocks* 0 0 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Ju
Slide 15: Revised Operating Plans
Revised Operating Plans Dramatic Shift in Economic Conditions in September/October Requires Change in Near-term Strategy Targeting Large Reductions in All Elements of Costs and Capital Expenditures Defer Discretionary Capital Spending, Including Major Projects in Early Stages of Planning and C
Slide 16: Achievement of Significant Debt Reduction
Achievement of Significant Debt Reduction (US$ billions) $20 (1) $17.6 $15 Total Debt $10 $7.2 $5 $0 At Time of PD Acquisition 9/30/08 in March 2007 (1) Pro Forma year-end 2006 total debt of $1.6 billion plus $16 billion in acquisition debt 16
Slide 17: FCX Debt Maturities 9/30/08
FCX Debt Maturities 9/30/08 $6,000 (US$ millions) Total Debt & Cash at 9/30/08 $5,000 (US$ billions) Senior Notes Issued in 2007 $6.0 Heritage PD Debt 0.6 $4,006 $4,000 Other Debt 0.6 Total Debt $7.2 8.375% Senior Notes Consolidated Cash $1.2 and $3,000 PD $2,514 Senior Notes Floating Rate & $2,000
Slide 18: Financial Policy
Financial Policy Since March 2007 Acquisition of Phelps Dodge, Strategy was Focused on Defining Potential of Resources and Development of Growth Plans Following Achievement of $10 Billion in Debt Reduction During 2007, Financial Policy was Designed to Use Cash Flows to Invest in Growth Projects
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