Slide 1: 4th Quarter 2015 Earnings Conference Call
HE Freepont-McMoRan 4th Quarter 2015 Earnings Conference Call January 26, 2016 VALUE AT OUR CORE FCX [LISTED] NYSE fex.com
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
[| FREEPoRT-McMoRan Cautionary Statement Regarding Forward-Looking Statements VALUE AT OUR CORE This presentation contains forward-ooting statements in which FCX discusses its potential fture pertormence. Frward-loaing statements are ol statements other than statements of cel facts, such as projecti
Slide 3: Markets
FREEPORT-McMoRan Markets VALUE AT OUR CORE LME Copper Price | | Brent Pricing | perpound per Bb! $3.00 $70 $2.75 $60 $2.50 $50 $2.25 $40 $2.00 $30 $2.02 $30 $1.75 41/25/15 $20 1/25/15 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 $2.88 $2.31 $56 $48 Change Since
Slide 4: Executing in a Weak Commodity Market Environment
<< FREEPORT-McMoRan Executing in a Weak Commodity Market Environment RAO WP Gone Aggressively Managing Cost, CAPEX, Production & Cash Flow . Board, and Strategic Direction = Generated EBITDA of $919 Million in 4Q 2015* = Significant Reductions to 2016e/2017e Capital Spending = Adjusted Mine Plans an
Slide 5: FCX Balance Sheet
| FCX Balance Sheet = Continued Focus on Cost/Capital Management and Free Cash Flow Generation = Taking Further Immediate Actions to Reduce Debt & Enhance Shareholder Value - Asset Sales - Joint Venture Transactions = Significant Initiatives Currently in Progress - Evaluation of Alternatives for the
Slide 6: Capital expenditure reductions
TE REGUCHO) = January 2016 CAPEX Est. (Including Idle Rig Costs) vs. July 2015 Est. - 2016e down 29% - 2017e down 47% = 2016e Mining CAPEX Includes: ~ $0.5 Bn in Sustaining $0.4 Bn in Remaining CV Expansion ~ $0.8 Bn in Grasberg U/G Development = Oil & Gas CAPEX - Substantial Drilling Has Been Done;
Slide 7: Production adjustments to preserve cash flow
ee MicMoRAN : All FCX Copper Production Cash Flow Positive After Sustaining CAPEX Below $2.00/Ib = FCX Stress Tested Current Operating Plans at Lower Prices Production Adjustments ~350 mm Ibs (~9% of 2015 Sales)* - El Abra — 50% Reduction Stacking Rates - Miami — Suspended Mining - Tyrone — 50% Rate
Slide 8: Enhanced Unit Cost Position
[==] FREEPorT-McMoRan = Significant Mining Unit Cost Reductions Reflects Curtailment of 350mm Ibs & Revised Operating Plans - jive Cost and i Fleet Management — Cerro Verde Economies of Scale — Grasberg Ore Grades Improving in 2H16 — Working Capital Management — Lower Input Costs = Oil & Gas Cash Pr
Slide 9: 2016e Cost Curve of FCX Mines
E-vdl onT-MicMoRai 2016e Cost Curve of FCX Mines Unit Net Cash Costs (after by-product credits) $ per pound of copper Before Capital Expenditures After Capital Expenditures $1.49 $1.50 $1.54 $1.55 51 49x $1.32 $0.78* Indonesia South America S nA 9 = = o £ < = t 3 4 NOTE: Assumes average prices of $1
Slide 10: Copper Market Commentary
onT-MicMoRan J Copper Market Commentary = Uncertain Global Economy i ‘ing C dity Market = China’s Demand Growth Slowing = Western Demand is Improving Gradually but Below Expectations Global Copper Exchange Inventories tonnes 700,000 ~ 8 Days of 600,000 eo Consumption 500,000 I a — ~~ a 400,000 300,0
Slide 11: Industry curtailments and supply outlook
= Actions at High Cost Mines have Resulted in Price Related Industry Curtailment of 730kt/annum To Date Closures Identified: ~730Kt/a (annualized) = Industry Experts Expect Additional Cuts Based on Estimates of Cash Costs and Sustaining CAPEX Levels Gos 417 kt/a = Supply from New Mines Where Constru
Slide 12: 2016e EBITDA sensitivity to copper price
($ in billions) 2016e EBITDA $1.9 $1.4 $ $0.5 — EBITDA CAPEX @$2.00 @$2.25 @$2.50 CAPEX Copper Copper Copper Each 10¢ Change in Copper: $550 mm Impact on 2016e EBITDA $75 mminpact. e = estimate, See Cautionary Statement. 12
Slide 13: Morenci, Cerro Verde, Grasberg, Tenke Fungurume
Morenci Cerro Verde Grasberg Tenke Fungurume Largest Copper World's Largest One of Largest High Grade ine i Concentrating Copper/Gold Copper/Cobalt Facility Reserves in World Resource North America Gu Reserves: 34 bn Ibs Gu Reserves: 7 bn Ibs Gu Reserves: 28 bn Ibs Co Reser Au Reserves: 27 mm ozs Mi
Slide 14: Future Resource Development Opportunities
Future Resource Development Opportuni = El Abra Major Sulfide Deposit * North America Sulfides Mineralized Material** pirenks (contained Cu) Reserves* Reserves & Mineralized Material Potential*** (contained Cu) —/ Mineralized Material 410+ Reserves, Mineralized fjateria & Potential 5 $2, 20/ ibility
Slide 15: Approval of Operations Beyond 2021
to App of Op i Beyond 2021 with Legal & Fiscal Certainty “Regarding PTFI’s proposal of contract extension, Gol warrants PTFI would be able to submit the proposal of contract extension immediately upon implementation of the regulatory and the will not unreasonably withhold or delay approval. It is fu
Slide 16: FM O&G Highlights
'T-MicMoRan FM O&G Highlights * Offshore/O1 Associated Resources with Valuable and = Successful Activities in Recent Years have De-risked DW GOM Opportunities Around 100%-Owned Production Facilities Drilled 14 Wells in Producing Fields with Positive Results Since 2014 eae 4 Wells have been Brought o
Slide 17: Deepwater Gulf of Mexico Focus Areas
{-- FREePorT-McMoRan ‘ S S, Deepwater Gulf of Mexico Focus Areas VALUE AT OUR CORE acility, Horn eae Facility: Deepwater GOM Total Keathley Canyon ~ i a re roL wk > Development = Discovery mam FM O&G Leases
Slide 18: Oil and gas EBITDA and capex outlook
onT-McMoRan ALLS SL = aS, 5 EBITD dn) (xy a U CAF LA (Sin billions) $1.5 —_ @$35Brent @$45Brent @$55Brent @$65Brent 2017eCAPEX (excludes $0.4 bn in idle rig cond 150 Model reflects FM 08: 0178 incuding 1571 cost, av 792% es
Slide 19: Sales Outlook
Sales Outlook ion Ibs. * Gold: 1.8 Million ozs. = Molybdenum: 73 Million Ibs. * Oil Equivalents”: 57.6 MMBOE (~74% Oil) Operating Cash Flows = ~$3.4 Billion (@$2.00/Ib Copper for 2016) — Includes $0.6 Billion Reduction for Idle Rig Costs = Each 10¢/Ib Change in Copper for 2016 = $440 Million Unit Co
Slide 20: Copper, gold, molybdenum and oil sales 2015-2017e
Copper Sales (billion tbs) Gold Sales (million ozs) 37 a4 +4 = o k 2015 2016e 2017e 4 re i Note: Consokdated gold sales ncuide 115k ozs in 2015, 170k ozs in 20168 . and 240k ozs in 2017e for noncentoling int Sales (million lbs) 2 °) 60 73 74 30> 0 2015 2016e 2017e 2015 2016e 2017e Oil & Gas Sales (M
Slide 21: Operating cash flow and EBITDA estimates
37 Oil) 2016e/2017e Average Cu $2.00/Ib Cu $2.25/Ib Cu $2.50/Ib ig Cash Flow ($1,100 Gold, $6 Molybdenum & $37 Oil) $6 (Uss bilions) Working Capital changes) 2016e/2017e Average Cu $2.00/Ib Cu $2.25/Ib ‘Cu $2.50/ Ib {0 EBITDA and $65miton tooperatng cash flow; each $1.00/b changer pet cash fo, e2ch
Slide 22: Debt structure and maturity schedule
[esl FREEPoRT- McMoRan Committed to Balance Sireet, Management — Strong MaCK RECO EE (US$ billions) Manageable Near-Term Debt Maturity Schedule FCX Debt Structure as of 12/31/15 $25 (US$ billions) Revolver Bank Term Loans FCX & FMC Sr. Notes FM O&G Senior Notes s $14 Cerro Verde Non-recourse Loan Ba
Slide 23: Actions to restore balance sheet and long-term value
[=| FREEPoRT-McMoRaNn Hos ee to Restore Balance SHeetand, Term Value fOr SHATEHOIGETS: = Large-Scale Current Production Base = Established Long-lived Reserves = Significant Portfolio of Undeveloped Resources = Global Organization of Highly Qualified Dedicated Workers and Management = Mining Business
Slide 24: Reference Slides
{-:0 FREEPORT-McMoRan Reference Slides
Slide 25: Sales Data
Sales Data Copper Consolidated Volumes (mm Ibs) Ib) Site Production & Delivery Costs (per Ib) $1.64 $1.78 Unit Net Cash Costs (per Ib) $1.45 $1.53 Consolidated Volumes (000's ozs) 338 1,247 Average Realized Prices (per oz) $1,067 $1,129 Oil Equivalents Consolidated Volumes (MMBOE) 13.2 52.6 Realized
Slide 26: 4Q15 Unit Costs
Gh Unit Costs North South (per pound of copper) America America Indonesia Africa Cc i Site Production & Delivery $149 $1.43 $2.40 $1.58 $1.64 By-Product Credits (0.07) (0.04) (1.87) (0.28) (0.40) Treatment Charges EI 0.21 0.34 - 0.16 Royalties & Export Duties - 0.01 2! 0.05 0.05 Unit Net Cash Costs
Slide 27: 2015 and 2016e Sales by Region
2015 Sales by Region = North America South America Indonesia Africa 1,988 B90) 871 744 1.2 = 35 a EG) | oo ea 2016e Sales by Region North America South America Indonesia Africa 1,820 1,340 1,475 730 1.8 | i si (2) Inclides molybdenum produced in South America. Note: e = estimate. See Cautionary Stat
Slide 28: Cash Unit Costs 2015 and 2016e
2015, acon eee <a Sa EP Cash Unit Costs Site Production & Delivery $1.68 $1.60 $2.39 $1.58 $1.78 By-product Credits (0.13) (0.05) (1.91) (0.42) (0.47) Treatment Charges 0.42 0.19 0.34 - 0.16 Royalties & Export Duties - - 0.30 0.05 0.06 Unit Net Cash Costs $1.67 $1.74 $1.09 ! “$1.09 (2) $1.21 $1.53 @
Slide 29: Quarterly 2016e Sales
Copper Sales (million Ibs) 1,500 — aaa 1Q16e 20160 3Q16e 4Q16e 2, .U Note: Consolidated gold sales | approxmately 1% ozs in 10 16e, 22kozs 1,000 Feared plas ied tpt oh a cont had lybde Sales (million lbs) 500 1Q16e 2Q16e 3Q16e 4Q16e Oil & Gas Sales (MMBOE) iQibe 2Q16e 3Q16e 4Qi6e Note: Consol nce ag
Slide 30: 2016e-2020e copper and gold sales
Freeport-McMoRAN a. Tie VALUE AT OUR CORE 2016e — 2020¢e PT-FI Share Total: 6.0 billion Ibs copper Be copper, Annual Average: 1.20 billion Ibs Zz 7 billion Ibs |. Gold, million ozs 2016e — 2020e PT-FI Share Total: 7.8 million ozs gold Annual Average: 1.56 million ozs 2.6 | 18 = 1.6 | Vi ly i Vi) | A
Slide 31: Price sensitivities
Change Copper: +/- $0.10/Ib $500 Molybdenum: +/- $1.00/Ib $36 Gold: +/- $50/ounce $110 Oil Sales: +/- $5/bbI@ $215 Oil Sales Net of Diesel Costs:7 +/- $5/bb $175 Natural Gas: +/- $0.50/Mcf $24 Currencies: +/- 10% $140 (aor (2)Amounts are net of mnng cost mpacts of a $5/bb! change in ol prices. $170
Slide 32: 4Q 2015 Oil & Gas Margins by Region
4Q 2015 Oil & Gas Margins by Region Haynesville/ Operating Margin per BOE Madden/ oer era eteitentee California Other GoM Cc i Realized Revenue $32.44 $13.41 $32.65 $29.73 Cash Production Costs 30.53 9.37 11.94 16.17 Cash Operating Margin $1.91 $3.74 $20.71 $13.56 4Q 2015 Oil & Gas Sales by Region C
Slide 33: 2016e Oil & Gas Sales by Region
Operating Cost: $1.90/Mcfe Pricing: NYMEX Gulf of Mexico Operating Cost: $10/bbI Pricing: HLS/NYMEX 2016e Oil & Gas Sales by Region California Haynesville/ Madden/Other 88 Includes ~7 MBbI/d of NGLS and GOM Shelf/LT Producton NOTE: Operating costs exclude DD8A and GSA. DDBA (including accreton). 201
Slide 34: Preliminary SEC Oil & Gas Reserves
Preliminary SEC Oil & Gas Proved & Probable Reserves 382 MMBOE as of 12/31/15 By Category By Region By eps ity Developed 534, Undeveloped | 47% GOM 64% California 31% Haynesville/ Other $2.59 per milion British thermalunits, as adjusted for location 6 ants, exduding a
Slide 35: Deepwater GOM Production Pipeline
[en FREEPorT-McMoRan Deepwater GOM Prodieaon, Pipelin From Strategic Focus Areas ~ bien J VALUE AT OUR CORE Drilled 14 Successful 100% Owned Wells Since 2014; ; 4 Placed on Production; 6 to be Placed on Production in 2016 — Recently 2016e Startups Add’ Inv Commenced 39 MBbls/d* 24 MBbls/d* Marlin (M
Slide 36: Adjusted EBITDA Reconciliation
FREEPORT-McMoRan Adjusted EBITDA Reconciliation VALUE AT OUR CORE (in millions) Year 4Q 2015 2015 Net loss attributable to common stock $(4,081) $(12,236) Interest expense, net 187 645 Income tax benefit (193) (1,935) Depredation, depletion and amortization 780 3,497 Impairment. of oll and gas prope
Slide 37: Debt Maturities as of 12/31/15
X Debt Maturities as Of. 12/31/15; (US$ billions) Total Debt & Cash at (US$ bi Gi FCX Revolver & Term Loan $8 || Ml FCK &FMC Sr. Notes lm FM O&G Senior Notes @ Other Total Debt 6 Consolidated Cash aml $3.4 $2.9 $2 $1.8 $1.9 Uncommitted ‘CV Nlon- Recourse Term Loan Term Loan $0 , , , , , 2016* 2017 2