Freeport-mcmoran, Inc. · NYSE:FCX

Freeport-mcmoran — BMO Capital Markets 26th Global Metals & Mining Conference 2017

13 slides from Freeport-mcmoran's conference presentation, Feb 27, 2017

  1. Slide 1: Richard C. Adkerson, President & Chief Executive Officer

    Richard C. Adkerson President & Chief Executive Officer February 27, 2017

  2. Slide 2: Cautionary Statement Regarding Forward-Looking Statements

    Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as projections or expectations relati

  3. Slide 3: 2016 Highlights

    2016 Highlights Strong Execution – “Proving our Mettle” Operational Financial Strategic Net Debt Reduced  Successful Execution by Over $8 Bn  Refocused Business on of $4.6 Bn Cerro Verde Leading Position in Global Expansion Project $20.1 Copper Industry  Strong Cost and  Retained High-Quality Ca

  4. Slide 4: World’s Leading Copper Producers

    World’s Leading Copper Producers Top 10 Copper Producers (2016e) (000 t) 2,000 1,500 1,000 500 0 Codelco Freeport- McMoRan * Glencore BHP Southern Copper KGHM Rio Tinto Antofagasta First Quantum Vale * Reflects Morenci ownership of 85% interest through 5/31/16 and 72% interest from 6/1/16; excludes

  5. Slide 5: Copper Market Commentary

    Copper Market Commentary LME Copper Price  Improved Market Sentiment per pound Supported by Fundamentals $3.00 $2.67 2/24/17  Global Economic Conditions $2.75 Improving $2.50  Supply Growth is Challenged $2.25 $2.00  New Supplies Required >$3/lb Copper Price $1.75 12/31/15 3/31/16 6/30/16 9/30/1

  6. Slide 6: World-Class Copper Portfolio

    World-Class Copper Portfolio Long-term Value in High-Quality Asset Base Cu Reserves: 30.4 bn lbs Cu Reserves: 29.5 bn lbs Cu Reserves: 26.9 bn lbs Mo Reserves: 2.3 bn lbs Mo Reserves: 0.64 bn lbs Au Reserves: 25.8 mm ozs Mineralized Mat.: 49 bn lbs Mineralized Mat.: 29 bn lbs Mineralized Mat.: 19 bn

  7. Slide 7: Showcasing Americas Portfolio

    Showcasing Americas Portfolio Americas Copper Resources Key Strengths (bns of lbs) 266  Significant Current Production with Including Potential Long-term Growth Options 137 Including  Long-Lived Reserves Mineralized 60 Material* 2P Reserves @ $2.20  Flexible Operating Structure @ $2.00 Cu Contain

  8. Slide 8: Copper Sulfide Opportunities

    Large Development Project Inventory Copper Sulfide Opportunities 1 km % Copper N >=0.00% >=0.10% • Bagdad >=0.20% >=0.30% Reserve Pit >=0.40% >=0.60% >=0.80% >=1.00% • Chino +0.3% Cu • El Abra • Lone Star/Safford 1 km N Reserve Pit • Morenci % Copper >=0.00% • Sierrita >=0.20% >=0.30% >=0.40% >=0.50

  9. Slide 9: Indonesia Update

    Indonesia Update  Exports Remain Restricted  PT Smelting Operations Expected to Resume in March  Commenced Actions to Adjust Operations, Costs & Suspend Long-term Investment Pending Resolution  Formally Notified Government of Breaches of COW Under Dispute Resolution Provisions of COW  Continuin

  10. Slide 10: Grasberg Minerals District

    Grasberg Minerals District Plan View Reserves* Grasberg & Kucing Liar Grasberg Grasberg open pit (as of December 31, 2016) DMLZ Block Cave DMLZ Big Tonnes (mm) 439 964 Gossan DOZ Copper Grade (%) 0.9 1.03 Grasberg Block Cave Gold Grade (g/t) 0.75 0.78 Kucing Liar Amole Copper (bn lbs) 7.6 18.5 N 2,9

  11. Slide 11: Financial Benefits to Indonesia

    Financial Benefits to Indonesia  Positive Long-term Partnership Financial Benefits Breakdown ~$19 Billion  Long History of Operating in Country – Since 1960’s GOI  Contributed +$60 Bn to National GDP in Since 1992 62% FCX  Largest Private Employer in Papua & Significant 38% Economic Engine for D

  12. Slide 12: Committed to Balance Sheet Management – Strong Track Record

    Committed to Balance Sheet Management – Strong Track Record (US$ billions) Manageable Near-Term Debt Maturity Schedule (1) $5 FCX Debt Structure 12/31/15 12/31/16 $4 $3.5 bn Revolver $ - $ - Bank Term Loan 3.0 - $3 Sr. Notes 14.8 14.4 Cerro Verde Non-Recourse Credit Facility 1.8 1.4 $2 $1.5(2) Bank

  13. Slide 13: Positive Long-term Outlook

    Positive Long-term Outlook Industry Leading Experienced Team Long-lived, Financially Copper Position of Operators & Geographically Strong Developers Diverse Portfolio Executing Clearly Defined Strategy 13

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