Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q2 2009 Earnings Presentation
37 slides from Freeport-mcmoran's earnings presentation, Jul 21, 2009
Slide 1: Quarterly Update Conference
FREEPORT-McMoRAN E=V CopPER & GOLD Quarter gZuey, t, GS CONnrerenGceea FCX LISTED NYSE. wwww.fcx.com July 21, 2009
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
FREePort-McMoRan Copper & GOLD Cautionary Statement Regarding Forward-Looking Statements A Cal 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 fa
Slide 3: 2Q09 Highlights
FREePort-McMoRan Copper & GOLD ow 2Q09 Highlights " core Assets Consolidated Volumes (mm tbs) 1,102 942 Average Realization (per ib) $2.22 $3.85 Site Production & Delivery Unit Costs (er /b) $1.04 $1.59 Unit Net Cash Costs (per ib) $0.43 $1.25 Consolidated Volumes (000° ozs) 837 265 Realization (per
Slide 4: Strong Operating Performance
FREePort-McMoRan Copper & GOLD AS Strong Operating Performance can Anets Consolidated sales volumes higher than April estimates = Cu +15% (147mm lbs) = Au +29% (187K ozs) = Mo +45% (5mm Ibs) Variances reflect = Accelerated mining in a high-grade section of the Grasberg Open Pit Revised Sales Outlook
Slide 5: Quarterly Operating Highlights
Copper & GoLD Freerort-McMoRan » Quarterly Operating Highlights Core Assets 2009 Unit Production Costs" = = \ @erpoundarconper) North South America __America_ Indonesia Consolidated Cash Unit Costs Site Production & Delivery(? $1.24 $1.00 $0.93 $1.04 Royalties(? - - 0.12 0.05 Treatment Charges 0.09
Slide 6: Achieving Cost Reductions
FREePort-McMoRan Copper & GoLD Achieving Cost Reductions Core Assets Site Production & Delivery Costs - Consolidated z e\ Consolidated Site Production & Delivery $ per pound of copper Revised Operating ry} Plans Ee Ee $1.59 Grasberg Ore Grades $1.04 Aggressive Cost Management/Lower Input Costs 2908
Slide 7: Achieving Cost Reductions - North America
FREePort-McMoRan Copper & GoLD Achieving Cost Reductions More Assets Site Production & Delivery Costs — North America z~ Cx - North America Site Production & Delivery z $ per pound of copper Aggressive Cost Management 33% $1.84 Reduction Lower Input Costs $1.24 = Diesel prices down 55% = Power price
Slide 8: Markets
FREePort-McMoRan Copper & GOLD Markets » 2 1,00 a‘ MO s LME Copper Price g S150 mF = v af ey 2 > o g 3 a LME & COMEX Exchange Stocks* Jan$0 Jul Jon0 JulM0 Jon-O1 JulCt Jon42 JulG2 Jon63 Jult Sant 1.04 Jn-05 14.05 Sn-05 06 n.O7 WOT n.09 0G Jan 00 sut.99 “LME and Comex, excluding Shanghai stocks, prod
Slide 9: Sales Profile 2007 - 2010e
FREePort-McMoRan Copper & GOLD ss 4 _ = Assets Sales Profile 2007 - 2010e a Copper Sates (billion lbs} 24 5 2.0 2 13 3.9 41 1 4 a 3.9. 3.8 a 2007 2008 2009e 2010e Pro 5 Forma’ “oe Cons gost nu appro sinaaly 228k oxi, 207, 1986 or 208, Sak orm 2005, and 200% oF 20IDe Rr nonenteagmseet 3 Molybdenum Sa
Slide 10: 2009e Quarterly Payable Metal Sales
Freerort-McMoRan ‘A Copper & GoLp ig ; . ~~ Core Assets 2009e Quarterly Payable Metal Sales ” Cc Gold Sales (thousand ozs) Copper Sales (million ibs} 837 1,250 Bog: 1,102 600 545. — ro 1,020 400 1,000 910 915, 8 0 750 1g09 2Q09 3q09e 4q09e ‘Rae? Coa GOH sae nla appro sinately 53k ox 1009, 2 93208, B
Slide 11: 2009e Sales and Unit Production Costs by Region
Freerort-McMoRAN ¢ Noss Copper & GoLp . . hs 4 are 2009e Sales and Unit Production Sars Anneke Costs by Region North America South America indonesia 1,380 1,330 23 1,130 56 Au nas tee | a oo ru i, North South (per pound of copper} America America Indonesia Consolidated (4 Cash Unit Costs = oa a= = a
Slide 12: Exploration
FREePort-McMoRan Copper & GOLD Exploration & = 2008 2009e $248 million $75 million North America 44% South America | 10%, Activities focused on incorporating significant data obtained in 2007 and 2008 & Other Areas into our future plans Australasia Note: FCX' consolidated share; @ = ate, See Caution
Slide 13: EBITDA and Cash Flow at Various Copper Prices
FREePort-McMoRan Copper & GOLD EBITDA and Cash Flow at Various Copper Prices ” We J Core Assets $8) (US$ billions) $6 $4 $2 $0 Cug$1.75/Ib Cu $2.25/Ib Cu $2.75/Ib 20102 Annual Operating Cash Flow (excluding Working Capital)* ($900 Gold & $8 Molybdenum) $5 (US$ billions) $4 $3 $2 $1 $0 Cu$1.75/Ib Cu
Slide 14: Sensitivities 2010e
FREePort-McMoRan Copper & GOLD Sensitivities 2010e Change a & esrToheh es Toa (US$ millions} Copper: -/+ $0.10/Ib $375 $260 Molybdenum: -/+ $1.00/Ib $55 $45 Gold: -/+ $50/ounce $95 $55 Diesel ©: -/+ 10% $35 $20 Purchased Power ®): -/+ 10% $40 $25 Currencies ©: +/- 10% $110 $65 Ti $i, Bafglon Base ca
Slide 15: Capital Expenditures
FREePort-McMoRan Copper & GOLD z as (49) care penn Capital Expenditures — @ Major Projects All Other (US$ billions) $3.0 $2.5 $2.0 $1.55 $1.0 $0.5 $0.04 2008 2009e 2010e (4) Capital expenditure estimates will continue to be reviewed and revised subject to market conditions (B)ncludes Tenke developme
Slide 16: Tenke Fungurume Development Project Update
FREePort-McMoRan Copper & GOLD Tenke Fungurume Development Project Update During 2Q09, 36MM lbs Cu produced & 26MM Ibs Cu sold © Construction activities substantially complete; commissioning of cobalt circuit began in 2Q09 & sulphuric acid plant expected to start-up in 3Q09 Average Mill Rate (000% m
Slide 17: Significant Progress at Tenke
Freerort-McMoRAN Ar Ye: Copper & GOLD a ~ al os Significant Progress at Tenke location of the processing plant facilities
Slide 18: Significant Progress at Tenke
eomncea a aA Significant Progress at Tenke Core Assets <a S| December 2007
Slide 19: Significant Progress at Tenke
eomncea a aA Significant Progress at Tenke
Slide 20: Tenke Fungurume Development Project Update
FREePort-McMoRan Copper & GoLD Tenke Fungurume Development Project Update 20
Slide 21: Tenke Fungurume
FREePort-McMoRan Copper & GoD a “ ate Cu Tenke Fungurume ' Core Assets A a Largest Investment in DRC World-Class Design & Construction Significant Infrastructure Upgrades Expanding Social & Community Programs Workers install a liner for the Tailings Storage Facility Project Will Provide Important Be
Slide 22: Underground Mine Development in Indonesia
FREePort-McMoRan Copper & GOLD Underground Mine Development in Indonesia oe . Core Assets Grasberg District Ore Bodies nN e ¢ Continuing underground development Grasberg =Big Gossan mine open pit =Grasberg Block Cave =Expansion of the DOZ mine to 80,000 t/d with completion by 2010 Grasberg Block Cav
Slide 23: FCX Debt Maturities 6/30/09
FREePort-McMoRan Copper & GOLD FCX Debt Maturities 6/30/09 Adjusted for 6.875% Senior Note Redemption $6,000 (US$ millions) Public Debt Other Debt Total Debt @ Cash at 6/30/08 $5,000 (US$ billions) Public Debt* $6.6 i 6%% Senior Notes 03 $4,080 },000, Other Debt 03 — Total Debt $7.2 ‘Senir Consolida
Slide 24: Financial Policy
FREePort-McMoRan Copper & GOLD Financial Policy = Maintain Strong Balance Sheet & Liquidity Position = Aggressive Cost Management = Capital Investments Will be Limited in Current Market Environment = Near-Term Focus Will be on Protecting Liquidity While Preserving Large Mineral Resources and Growth
Slide 25: FCX Investment Summary
FREePort-McMoRan Copper & GOLD FCX Investment Summary A Tal = World’s Premier Publicly Traded Copper Company World’s Largest Molybdenum Producer & Significant Gold Producer Long-lived Reserves, Geographically Diverse Operations Flexible Operating Structure Can Respond to Varying Market Conditions Si
Slide 26: Reference Slides
p> WN: Core Assets A Ta Reference Slides
Slide 27: Grasberg Open Pit
Copper & GOLD aud Pit Grasberg Open
Slide 28: PT-FI Mine Plan
FREEPonT-McMoRAN a= Copper & GoLD . a ig ~ PT-FI Mine Plan Core Assets PT-FI’s Share of Metal Sales, 2009e-2013e a \‘e 2009e -— 2013e PT-Fi Share Copper, billion Ibs Total: 6.1 billion Ibs copper Gold, million ozs Annual Average: 1.2 billion Ibs 2009e - 2013e PT-Fi Share Total: 9.1 million ozs gold
Slide 29: PT-FI Mine Plan Changes Accelerate Metal into 2011/2012
FREePort-McMoRan Copper & GoLD PT-FI Mine Plan as a ae . Core Assets Changes Accelerate Metal into 2011/2012 a ) Ramp Retrievals Accelerated 0.2 billion Ibs es copper & 0.5 million ozs* gold into 2011/2012 ‘ Mine Plan Changes = Retrieval of high-grade ore in ramps in Pushback 8E accelerates metal in
Slide 30: Mining Sequence in 2009
FREePort-McMoRan Copper & GoLD Mining Sequence in 2009 Copper Equivalent Cross Section Leaend: mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mE 2.00 - 2.99% CuEq mm >3.00% CuEq 30
Slide 31: Mining Sequence in 2009
FREePort-McMoRan Copper & GoLD Mining Sequence in 2009 Copper Equivalent Cross Section Leaend: mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mE 2.00 - 2.99% CuEq mm >3.00% CuEq 31
Slide 32: Mining Sequence in 2009
FREePort-McMoRan Copper & GoLD Mining Sequence in 2009 Copper Equivalent Cross Section Leaend: mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mE 2.00 - 2.99% CuEq mm >3.00% CuEq 32
Slide 33: Mining Sequence in 2009
FREePort-McMoRan Copper & GoLD Mining Sequence in 2009 Copper Equivalent Cross Section Leaend: mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mE 2.00 - 2.99% CuEq mm >3.00% CuEq 33
Slide 34: Mining Sequence in 2010
FREePort-McMoRan Copper & GoLD Mining Sequence in 2010 Copper Equivalent Cross Section Leaend: mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mE 2.00 - 2.99% CuEq mm >3.00% CuEq 24
Slide 35: Mining Sequence in 2011
FREePort-McMoRan Copper & GoLD Mining Sequence in 2011 Copper Equivalent Cross Section BB > ON is in ore north of this cross-section 8E and 9N are the Primary Ore Pushbacks in 2011 Leaend: mm 0.25 - 0.99% CuEq Jim 1.00 - 1.99% Cueq | mm 2.00 - 2.99% CuEq mm >3.00% CuEq 35
Slide 36: Mining Sequence in 2012
FREePort-McMoRan Copper & GoLD Mining Sequence in 2012 Copper Equivalent Cross Section Leaend: mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mE 2.00 - 2.99% CuEq mm >3.00% CuEq 36
Slide 37: Mining Sequence in 2013
FREePort-McMoRan Copper & GoLD Mining Sequence in 2013 Copper Equivalent Cross Section Leaend: mm 0.25 - 0.99% CuEq Jim 1.00 - 1.99% Cueq | mm 2.00 - 2.99% CuEq mm >3.00% CuEq 37
Freeport Mcmoran Copper & Gold — Q2 2009 Earnings Presentation on 6ix