Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Dahlman Rose Global Metals, Mining & Materials Conference 2010
23 slides from Freeport-mcmoran's conference presentation, Nov 17, 2010
Slide 1: Copper Dynamics: Turning Brownfields Into Greenfields
Global Metals, Mining & Materials Conference “Copper Dynamics: Turning Brownfields Into Greenfields Greenfields” James R. Moffett Chairman of the Board PROVEN PERFORMANCE SHINING FUTURE November 17, 2010 www.fcx.com
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Forward Looking Statements 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
Slide 3: Proven Performance, Shining Future: Investment Highlights
Proven Performance,, Shining g Future Investment Highlights Premier Copper, Gold & Molybdenum Producer Long-Lived Reserves with Growth Options Flexible Operating Structure Geographically Diverse Significant Exploration Potential Strong g Financial Position Experienced Team 3
Slide 4: World Class Copper Discoveries Are Extremely Rare
World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2010e 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 Grasber
Slide 5: Grasberg Case Study
Grasberg g Case Study y Indonesia Reserve Growth = Expanded Production 60 8 70 10 50 Copper 7 60 Gold 9 billion lbs million ozs 50 8 40 6 40 7 30 5 Grasberg 30 Grasberg Reserves 6 Reserves 20 Discovered 4 20 Discovered 5 10 4 10 3 0 3 0 2 -10 2 -10 1 -20 1 Production Production -20 0 -30 0 1973 1976
Slide 6: Grasberg Development & Expansion
Grasberg g Development p & Expansion p “We quickly developed a pit plan. … We also began studying the possibility for further expansions, so that we would be prepared if our geologists found more reserves – as we fully expected they would.” 1989 250 Expansion 200 Expansion 000’s t/d 150 Expansion Ex
Slide 7: Exploration Results Driving Future Growth
Exploration p Results Driving g Future Growth Significantly Increased Exploration Activities on Phelps Dodge Properties Following Merger in 2007 Invested ~$550 MM on Exploration Since Merger, Principally Focused on Existing Mineral Districts Drilled Over 1.6 MM Meters in Core Holes Results C
Slide 8: Copper Reserves & Mineralized Material
Copper Reserves & Mineralized Material as of 12/31/09 Copper Reserves Mineralized Material g by Geographical Region g by Geographical Region 104 Bn lbs (a) 122 Bn Incremental lbs (b) North America 26% North America South Indonesia 58% Indonesia America 33% 17% 33% South 10% America 8% 15% Africa Afr
Slide 9: Significant Reserve Additions
Significant g Reserve Additions Potential 2010 Recent Reserve Additions Reserve Additions 23 billion lbs copper ~20 billion lbs copper (2) Since Merger through 12/31/09 (1) Candelaria/Ojos Morenci Cerro Bagdad Verde Sierrita Bagdad Morenci Sierrita Cerro Chino Tenke Verde Balance (1) Proven and prob
Slide 10: Defining the Sulfide Potential
Defining g the Sulfide Potential Leached/ Oxide Oxide Capping Chalcocite Ch l Chalcopyrite it Sulfide Porphyritic Intrusions 10
Slide 11: Expanding Footprints – Cerro Verde Example
Expanding Footprints – Cerro Verde Example Cerro Verde Bridge Santa Rosa Pit Cerro Verde Pit Plan View Bridge Cerro Santa Rosa Verde Cerro Verde Pit Santa Rosa Pit Bridge Cu Mineralization 11
Slide 12: Cerro Verde Brownfield Opportunities
Cerro Verde Brownfield Opportunities pp Primary Crusher 2009 Mineralized Material Cone 2009 Reserve Pit Cerro Verde Pit 2006 Reserve Pit “Bridge” Santa N Rosa Pit Leach Pad 1 km 12
Slide 13: Cerro Verde X-Section
Cerro Verde X-Section Significant Intercepts 1 km E W Santa S t Cerro Rosa Pit Verde Pit 1080 meters 0.57% Cu & 0.046% Mo 2006 Reserve Pit Plan View 2009 009 Reserve ese e Pitt 435 meters Cu % Cerro 0.69% Cu& 0.021% Mo 2009 Mineralized >=0 Verde Pit “Bridge” Material Cone >=0.2 N Santa 945 meters >=
Slide 14: Morenci Brownfield Opportunities
Morenci Brownfield Opportunities pp N Garfield Stockpile 2009 Mineralized Material Cone Coronado 2009 Reserve Pit Western Copper 2006 Reserve Pit Morenci 1 km Crusher 14
Slide 15: Morenci X-Section
Morenci X-Section Significant Intercepts SW NE Morenci Western Copper Garfield 2006/2009 Plan View N Reserve Pit Garfield 2009 Cu % C Mineralized >=0 844 meters 497 meters >=0.1 Coronado 0.42% Cu & 0.52% Cu & Material >=0.2 0.030% Mo 0.046% Mo Cone >=0 3 >=0.3 Western Copper >=0.5 Morenci >=0.6 >=0.
Slide 16: El Abra X-Section
El Abra X-Section Significant Intercepts W E 2006/2009 Reserve Pit 2009 Mineralized 625 meters Material Cone 0.64% Cu Cu % >=0 675 meters Plan View >=0.1 0.65% Cu >=0.2 855 meters >=0.3 0.62% Cu > 04 >=0.4 990 meters N >=0.6 0.68% Cu >=0.8 >=1.0 16
Slide 17: Papua Opportunities
Papua p Opportunities pp • Drill programs adjacent to existing ore bodies as well ll as in i highly hi hl prospective i exploration l i areas outside current operations • Opportunities to add to reserves in Indonesia Tw Kke Tk Tk Tf Kkel Ti 50 Kke North Grasberg Kkeh Tk Ts Kkel Pacific 45 25 Tw 45 W
Slide 18: Tenke Fungurume Sulfides Exploration Potential Greater than Oxides
Tenke Fungurume Sulfides Exploration Potential Greater than Oxides • 600 square mile concession • Resource p potential is multiples p of existing g reserves • Future exploration is required to define the resource Geology of Central Camp & Greater Pumpi Mines series target host lithology Total strike
Slide 19: Climax Molybdenum
Climax Molybdenum y Bartlett Mountain 2006 Reserve Pit 2009 MM Cone New Mill 2009 Reserve Pit N Ceresco Ridge g 0 1 km 19
Slide 20: Exploration Drives the Mine Plan
Exploration p Drives the Mine Plan FCX Brownfield Exploration Results = Greenfield Expansion Opportunities RESERVE EXPANSION VOLUME CASH ADDITIONS OPPORTUNITIES GROWTH FLOWS New Copper Sources SA Potential Projects 0 85 0.85 Tenke 0.25 Expansions 0.1 0.5 NA Potential NA Projects Incremental 1.7 bill
Slide 21: MMR Ultra-Deep Focus Areas on the Shelf of Gulf of Mexico
MMR Ultra-Deep Focus Areas on the Shelf of Gulf of Mexico Generated 15 Prospects on Large Structures on Shelf with Ties to the Deepwater. U i k d Potential Unrisked P t ti l for f Ultra-Deep Ult D F Focus Area: A 30+ Tcfe T f Gross, G 14+ Tcfe T f Net* N t* ____________________ Gross Potential Could
Slide 22: Conceptual Model - Ultra-Deep Play
Conceptual p Model - Ultra-Deep p Play y MMR Broadly Recognized as Industry Leader in This New Exploration Frontier Data received to date from Davy Jones/Blackbeard West & East confirm MMR’s original geologic modeling, which correlates the objective sections on the Shelf below the salt weld in the M
Slide 23: Davy Jones 3-D Image
Shallow Production Middle Miocene (Y Sand) 12000' Average Lower Miocene (Gyro) 17000'-23800' Top of Eocene 24700'-32500'
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