Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q4 2009 Earnings Presentation
40 slides from Freeport-mcmoran's earnings presentation, Jan 21, 2010
Slide 1: Freeport-McMoRan Copper & Gold Fourth Quarter 2009 Conference Call
FREEPORT-McMoRAN E=V CopPER & GOLD ” Quarter ZOUe, t, GS CONnrerenGceea FCX LISTED NYSE. wwww.fcx.com January 21, 2010
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
FREePort-McMoRan Copper & GOLD Cautionary Statement Regarding Forward-Looking Statements A Ca 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 fac
Slide 3: 2009 Highlights
FREePort-McMoRan Copper & GOLD 2009 Highlights Successful Execution of Revised Operating Plans Strong Operating & Financial Performance Strengthened Balance Sheet Enhanced Financial and Liquidity Position Successful Start-up of Tenke Operations Added Reserves Maintained Future Growth Opportunities R
Slide 4: Strong Operating & Cost Performance 2009
paeeent cmOnAN = ‘ OPPER & GOLD Poe TAY Strong Operating & ' Core Assets Cost Performance 2009 art Actual 2009 sales volumes Strong Volumes higher and unit costs lower = Access to High-Grade : Section of the Grasberg than January estimates* Open Pit = Cu +5% (211 mm lbs) * Solid Results in the " Au
Slide 5: 4Q09 & 2009 Highlights
FREePort-McMoRan Copper & GoLD / + ; 7 . 4009 & 2009 Highlights ia Assets “sales Dats = == 400 2009, Consolidated Volumes (mm tbs) 989 4,111 Average Realization (per ib) $3.20 $2.60 Site Production & Delivery Unit Costs @ (per ib) $1.25 $1.12 Unit Net Cash Costs © (per ib) $0.62 $0.55 Consolidated V
Slide 6: Quarterly Operating Highlights
‘ x Freeponr- McMoRAan PPER & GOI A z z Core Assets Quarterly Operating Highlights 4009 Unit Production Costs = = \ @erpoundarconper) North South . i) America __America_ Indonesia Consolidated“ u Cash Unit Costs Site Production & Delivery/2 $1.22 $1.20 $1.36 $1.25 By-product Credits (0.24) (0.13) (2
Slide 7: Preliminary Reserves at 12/31/09
FREePort-McMoRan Copper & GoLD Preliminary Reserves at 12/31/09 Consolidated Proven & Probable Reserves oN ‘ea 12/31/09 Copper Molybdenum _— Gold billion Ibs tillion Ibs rrillion ces Copper Reserves . Reserves @ 12/31/08 102.0 2.48 40.0 _by Geographical Region Additions/revisions* 63 0.16 (0.1) Prod
Slide 8: Preliminary Consolidated Copper Reserves
FREePort-McMoRan Copper & GOLD Core Assets Preliminary Consolidated Copper Reserves J Core Assets A 104 billion Ibs of Copper Reserves at 12/31/09 +6.3 billion Ibs of net additions North 27.7 America Reserves: 27.7 Additions: 0.6 Additions at Morenci 34.0 South America Reserves: 34.0 Additions: 3,2
Slide 9: Copper Reserves & Mineralized Material
FREePort-McMoRan Copper & GoD . . . a j ~ Copper Reserves & Mineralized Material \ core assets Preliminary Estimates as of 12/31/09 N \e , 123 104 ‘ 00 a COpper price _ copper price Reserves Mineralized Material (billion lbs of (billion Ibs of contained copper} recoverable copper} (Incremental to Re
Slide 10: Markets
FREePort-McMoRan Copper & GOLD Markets » 2 1,00 y mo s LME Copper Price g 5 10 mB = v af 0 2 > o g 3 a LME & COMEX Exchange Stocks* Jan $0 JuL.99 Jan0 Jul-00 JanOt Jul Jn-02 JuLK2 Jan-69 JuL49 Jan-04 JuLO4 Jon-05 Ju.05 Jan Jul06 JanO7 Jul7 Jan Ju-08 Jan9 Ju-09 Jando “LME and Comex, excluding Shangha
Slide 11: 2010 Sales Outlook
FREePort-McMoRan Copper & GOLD » Sales Outlook: ¢ Copper: 3.8 Billion ibs. ¢ Gold: 1.8 Million ozs. « Molybdenum: 60 Million Ibs. > Unit Net Cash Cost (): « 86¢/Ib > Operating Cash Flows ©): $5.3 Billion, net of $0.4 Billion in W/C Uses « Assumes $3.25/lb Copper « Each 10¢/lb Change in Copper = $260
Slide 12: Development Project Update: North America
FREePort-McMoRan Copper & GOLD . po \ ~ a Development Project Update North America Core Assets Miami Mine Restart ¢ Restart of the Miami mine e¢ Ramp up to 100MM lbs Cu/year by second half 2011 ¢ $40MM project, primarily mining equipment ¢ 12/31/09 reserves of 600MM Ibs Cu Morenci Mill Restart ¢ Bas
Slide 13: Development Project Update: South America
Freerort-McMoRan ‘ » Copper & GOLD po ae Development Project Update . Core Assets South America ' El Abra Sulfolix ¢ Large sulfide mineral deposit underlying current oxide pit; project extends life 10+ years & provides ~300MM Ibs Cu/yr aggregate to replace oxides ¢ New leach pad & modifications to e
Slide 14: Long-Term Underground Mine Development in Indonesia
FREePort-McMoRan Long-Term Underground Mine _—_ = ‘Core Assets Development in Indonesia wo Several large-scale underground projects to develop significant underground reserves = Aggregate reserves of 41 billion Ibs Cu & 35 million ozs Au = 155 miles of underground tunnels completed with an additiona
Slide 15: Tenke Fungurume Update
FREePort-McMoRan Copper & GOLD * Construction activities complete ° Achieved design production rates on Cu; start-up issues on Co circuit continue to be addressed ° At full rates (initial phase), aggregate annual metal of 250MM Ibs Cu & 18MM Ibs Co ° During 4Q09, sold 64MM Ibs Cu & 2MM Ibs Co * Expl
Slide 16: Exploration Targets in Major Mineral Districts
Copper & GoLD Core Assets [wat ‘uF Exploration Targets in Major Mineral Districts ‘> ©°™° Assets South America Exploration in 2010e $100 million Australasia & Other Areas Note: FCX' consolidated share; e = estimate, See Cautionary Statement. fe
Slide 17: Sales Profile 2007 - 2011e
FREePort-McMoRan Copper & GOLD Sales Profile 2007 - 2011e Copper Sates (billion lbs} 2 2 18 19 13 4.1 41 1 3.9 4 3.8 3.8 0 2007-2008 «2009 «0lde = le Pro 5 Forma ‘Ter Cacharel eae ice sor siately 228 & orn 207, 198k or 2008, {8807 b2005, 16.4 or 2blbe, and 190. a0 2018 or aonconveing erst 3 Molybden
Slide 18: 2010e Quarterly Payable Metal Sales
FREePort-McMoRan a Copper & GOLD : ae ; rN Core Assets 2010e Quarterly Payable Metal Sales ” Cc Gold Sales (thousand ozs) Copper Sales (million ibs} 800 1,250 675 1,090 600 490 400 285 4,000 960 280 890 860 200 0 750 1Q10e 2Q10e 3Q10e 4qi0e “Rar COGORETAT RO sus inl approximately 0k ox n 10100 25k o
Slide 19: 2009 and 2010e Sales by Region
FREePort-McMoRan Copper & GoLD 2009 and 2010e Sales by Region North America 1,187 2007Shles by Region) South America 1,394 North America South America indonesia 1290 1,230 1,040 en 17 Au cu Mo | cu “a1 cu Au mim Ibs ag: mom Ibs — mom Ibs sim ozs (4) 2009 sales include 130 9 pounds and 20106 sales in
Slide 20: 2009 and 2010e Unit Production Costs by Region
FREePort-McMoRan Copper & GOLD 2009 and 2010e Unit Production Costs by Region 2009 South eae Boca ar cpipee): America. Indonesia Consolidated Unit Cash Costs Site Production & Delivery” $1.25 $1.08 $1.05 $1.12 By-product Credits (0.23) (0.11) (1.86) (0.77) Treatment Charges 0.09 0.15 0.22 0.16 Royal
Slide 21: Reconciliation of Unit Cash Costs
FREePort-McMoRan Copper & GOLD Reconciliation of Unit Cash Costs Consolidated (excluding Tenke) 2009 55¢ Grasberg, primarily lower volumes (a) 27 North America (b) 2 South America (c) 20 Total 31 2010e 86¢ (@) lower projected sales volumes and higher commodity-based input costs; copper and gold volu
Slide 22: Site Operating Costs by Category
FREePort-McMoRan Copper & GoLD Site Operating Costs by Category Consolidated Materials 33% Manpower 22
Slide 23: EBITDA and Cash Flow at Various Copper Prices
FREePort-McMoRan Copper & GOLD - ~ EBITDA and Cash Flow —-_ J Core Assets at Various Copper Prices ” We 2 A TDA ($1,000 Gold & $10 Molybdenum) $10) (US$ billions) $8 $6 $4 $2 $0 Cu $2.50/Ib Cu $3.00/Ib Cu $3.50/Ib 2010e/2011e Average Operating Cash Flow (excluding Working Capital changes) ($1,000 Go
Slide 24: Sensitivities
FREePort-McMoRan Copper & GOLD Sensitivities Change a & esrToheh es Toa (US$ millions} Copper: -/+ $0.10/Ib $375 $260 Molybdenum: -/+ $1.00/Ib $55 $45 Gold: -/+ $50/ounce $90 $50 Diesel ©: -/+ 10% $45 $30 Purchased Power ®): -/+ 10% $40 $25 Currencies ©: +/- 10% $120 $70 Ti#2.0ofgalon Base case assu
Slide 25: Capital Expenditures
FREePort-McMoRan Copper & GoLp E a z as (49) care Assets Capital Expenditures — @ Major Projects All Other (US$ billions) 3.0 ‘ $2.7 $2.5 $2.0 $1.55 $1.0 $0.5 $0.0 2008 2009 2010e 2011e (4) Capital expenditure estimates will continue to be reviewed and revised subject to market conditions. (2) Inclu
Slide 26: Significant Liquidity, Strong Credit Metrics
FREePort-McMoRan Copper & GOLD Core Assets A © (US$ billions) Significant Liquidity $20 5 Balance Sheet $17.6” Strong Credit Metrics $15 4 No Near-term Maturities $10 | Total Debt $55 $0 At Time of PD Acquisition 12/31/08 12/31/09 in March 2007 (1) Pro Forma year-end 2006 total det of $1.6 bon plus
Slide 27: FCX Debt Maturities 12/31/09
FREePort-McMoRan Copper & GOLD FCX Debt Maturities 12/31/09 $6,000 $5,000 $4,000 $8,000 $2,000 $1,000 (US$ millions) Total Debt @Cash at 12/31/09 Public Debt $6.2 Other Debt O14 Total Debt $6.3 Consolidated Cash 2.7 $2,299 Floating Rate & 825% Senior Notes $93 $16 $1 $1 2010 2011 2013 2014 2015 Ther
Slide 28: Financial Policy
FREePort-McMoRan Copper & GOLD Financial Policy » Maintain Strong Balance Sheet & Liquidity Position = Aggressive Cost Management = Invest in Attractive Growth Projects as Economic Conditions Warrant = Opportunistic Debt Repayment = Board Action to Reinstate Common Stock Dividend: $0.60/share per an
Slide 29: 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 30: Reference Slides
p> WN: Core Assets A Ta Reference Slides
Slide 31: Grasberg Open Pit
fieraaca po WN: Grasberg Open Pit \p Core Asset:
Slide 32: PT-FI Mine Plan
FREePort-McMoRan Copper & GOLD PT-FI Mine Plan PT-FI’s Share of Metal Sales, 2010e-2014e 20102 - 2014e PT-FI Share Total: 5.7 billion Ibs copper ] Co) 1, billion Ibs Annual Average: 1.14 billion ibs Gold, million ozs 2010 — 2014e PT-Fi Share Total: 8.0 million ozs gold Annual Average: 1.6 million oz
Slide 33: Mining Sequence in 2010
FREePort-McMoRan Copper & GoLD Mining Sequence in 2010 Copper Equivalent Cross Section Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 Legend: Mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mB 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 Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 Legend: Mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mB 2.00 - 2.99% CuEq mm >3.00% CuEq 34
Slide 35: Mining Sequence in 2010
FREePort-McMoRan Copper & GoLD Mining Sequence in 2010 Copper Equivalent Cross Section Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 Legend: M@™ 0.25 - 0.99% CuEq |) 1.00 - 1.99% CuEq mB 2.00 - 2.99% CuEq mm >3.00% CuEq 35
Slide 36: Mining Sequence in 2010
FREePort-McMoRan Copper & GoLD Mining Sequence in 2010 Copper Equivalent Cross Section Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 Legend: Mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mB 2.00 - 2.99% CuEq mm >3.00% CuEq 36
Slide 37: Mining Sequence in 2011
FREePort-McMoRan Copper & GoLD Mining Sequence in 2011 Copper Equivalent Cross Section 8E and 9N are the Primary Ore Pushbacks in 2011 =] Leaend: Mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mB 2.00 - 2.99% CuEq mm >3.00% CuEq * 9N is in ore north of this cross-section 37
Slide 38: Mining Sequence in 2012
FREePort-McMoRan Copper & GoLD Mining Sequence in 2012 Copper Equivalent Cross Section ON is the Primary Ore Pushback in 2012 BS) Legend: Mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mB 2.00 - 2.99% CuEq mm >3.00% CuEq 38
Slide 39: Mining Sequence in 2013
FREePort-McMoRan Copper & GoLD Mining Sequence in 2013 Copper Equivalent Cross Section Legend: Mm 0.25 - 0.99% CuEq 1.00 - 1.99% CuEq mB 2.00 - 2.99% CuEq mm >3.00% CuEq 39
Slide 40: Mining Sequence in 2014
FREePort-McMoRan Copper & GoLD Mining Sequence in 2014 Copper Equivalent Cross Section Legend: Mm 0.25 - 0.99% CuEq lm 1.00 - 1.99% CuEq |* mm 2.00 - 2.99% Cutq |i mm >3.00% CuEq 40
Freeport Mcmoran Copper & Gold — Q4 2009 Earnings Presentation on 6ix