Freeport-mcmoran, Inc. · NYSE:FCX

Freeport-mcmoran — Freeport-McMoRan Copper & Gold — JPMorgan Asian Pacific Conference 2011

15 slides from Freeport-mcmoran's conference presentation, Jun 20, 2011

  1. Slide 1: China's Balanced Growth Strategy – The Outlook for Commodities Demand

    Connecting the World JPMorgan g Asian Pacific Conference “China’s Balanced Growth Strategy – The Outlook for Commodities Demand” Richard C. C Adkerson President & Chief Executive Officer www.fcx.com June 20, 2011

  2. Slide 2: Cautionary Statement

    Cautionary y Statement This presentation contains forward-looking statements in which we discuss factors we believe may affect our potential performance in the future. Forward-looking statements are all statements other than statements of historical facts, such as statements regarding projected ore

  3. Slide 3: Copper Price & Inventories

    Copper pp Price & Inventories 2,500 500 2,000 400 LME Copper Price Cents Per P Metric Tons 1,500 300 000’s M Pound 1,000 200 500 100 LME & COMEX Exchange g Stocks* 0 0 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 *LME and Comex, excluding Shanghai stocks

  4. Slide 4: Copper: Fundamental to Global Economic Growth

    Copper: Fundamental to Global Economic Growth Copper Benefits from Unique Physical Properties - Difficult to Replicate  Superior Electrical and Thermal Conductivity  Durability, Malleability and Anti-corrosive  Superior Connectivity for Information / Communication / Control Systems Copper’s End-u

  5. Slide 5: The China Effect

    The China Effect  Second Largest Global Economy  Major Impact on Global Commodity Demand Since 2000  G Growing i Commodity C dit Demand D dEExceeds d DDomestic ti SSupply l  Current Five-Year Plan Focuses on Sustainable, Balanced Growth  Continued Urbanization and Infrastructure Enhancement Wil

  6. Slide 6: China's New 5-Year Plan

    China’s New 5-Year Plan 12th Five-Year Plan Represents Shift to Consumer-led Growth Social Initiatives Require Significant Infrastructure Development  Urbanization U ba at o – 50% o of popu population at o cu currently e t y resides es des in rural ua a areas eas  Affordable Housing – 36 million u

  7. Slide 7: China Expected to Continue to Drive Copper Demand Growth

    China Expected to Continue to Drive Copper Demand Growth 2010 % of 2020e % of Consumption (Mt) World Consumption (Mt) World China 7.2 38% 11.6 45% Rest of Asia 36 3.6 19% 52 5.2 20% Japan 1.0 5% 1.0 4% Americas e cas 2.8 8 15% 5% 2.9 9 11% % W. Europe 3.1 16% 3.0 12% Other 1.5 7% 2.2 8% Total 19.2 1

  8. Slide 8: World Class Copper Discoveries Are Extremely Rare

    World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2011e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 0 200 400 600 800 1,000 1,200 Grasberg Complex - 1988 Escondida - 1979 KGHM Polish Copper - 1957 Chuquicamata - 1910 Escondida - 1979 Collahu

  9. Slide 9: Industry Challenges

    Industry y Challenges g  Absence of Large Scale Development Projects  Cost Escalation and Scarce Raw Materials (Energy Labor, (Energy, Labor Equipment, Equipment Tires, Tires etc.) etc )  Resource Depletion, Declining Grades  Political Risk – Growing Economic Nationalism  Regulatory/Environment

  10. Slide 10: Copper Supply/Demand Forecasts

    Copper pp Supply/Demand pp y/ Forecasts (in mm tonnes, except copper price) 2010 2011e 2012e Brook Hunt Supply 19.0 19.9 21.3 Demand 19.2 20.3 21.3 Surplus / (Deficit) (0.2) (0.4) 0.0 China Demand Growth 13.0% 6.0% 8.0% C Copper P Price i F Forecastt ($/lb) $3 42 $3.42 $4 35 $4.35 $4 35 $4.35 CRU Su

  11. Slide 11: World's Leading Copper Producers

    World’s Leading g Copper pp Producers Top 10 Copper Producers (2011e) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX BHP Billiton Xstrata Anglo Southern Rio Tinto Antofagasta KGHM RAO Norilsk American Copper ____________________ Source: Brook Hunt 1Q11 Report. Rankings bas

  12. Slide 12: FCX's Global Footprint

    FCX’s Global Footprint p Major Mine Operations & Development Projects All major assets majority-controlled and operated North America1 Copper Reserves Copper/Gold/Silver Cu 42.2 billion lbs Mo 2.75 billion lbs Molybdenum Sales Cobalt Grasberg (90.64%) Cu 1.2 billion lbs Reserves Mo 73 million lbs2 C

  13. Slide 13: Development Projects Update

    Development p Projects j Update p Replacement Projects (1.4 Bln lbs copper/year)  El Abra Sulfolix  Grasberg Underground Current Expansion Projects (495 MM lbs copper/year)  Morenci, Miami, Chino & Climax molybdenum  Cerro Verde  Tenke Potential Near-term Projects (~1 Bln lbs copper / year)  C

  14. Slide 14: EBITDA and Cash Flow at Various Copper Prices

    EBITDA and Cash Flow at Various Copper Prices Average EBITDA* ($1,200 Gold & $12 Molybdenum) $15 (US$ billions) $12 $9 $6 $3 $0 Cu $3.50/lb Cu $4.00/lb Cu $4.50/lb Average Operating Cash Flow (excluding Working Capital changes)* ($1,200 Gold & $12 Molybdenum) $10 (US$ billions) $8 $6 $4 $2 $0 Cu $3.

  15. Slide 15: FCX Overview

    FCX Overview  World’s Premier Publicly Traded Copper Company  World’s Largest Producer of Molybdenum & Cobalt  Significant Gold Producer  World Class, Long-lived, Geographically Diverse Operations  Financially Strong  Environmentally & Socially Responsible  Enterprise Value: ~$45 Billion  13

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