Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q1 2009 Earnings Presentation
35 slides from Freeport-mcmoran's earnings presentation, Apr 23, 2009
Slide 1: Freeport-McMoRan Copper & Gold 1Q09 Earnings Conference Call
FREEPORT-McMoRan Copprer & GOLD Quarter Zu, f, GS COMCTENGCE TGs FCX LISTED NYSE wwww.fcx.com April 22, 2009
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
FRreerort-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 f
Slide 3: Core Assets
Freepont-MicMoRaN Copper & GOLD pr ied is St J Core Assets Core Assets — Long-Lived Reserves with Growth Potential Geographically Diverse Operations Flexible Operating Structure Experienced Team Focused Strategy
Slide 4: 1Q09 Highlights
Freepont-MicMoRaN 1Q09 Highlights Copper & GOLD “Sales Data aw a 100° Consolidated Volumes (mm tbs) 1,020 911 Average Realization (per ib) $1.72 $3.69 Site Production & Delivery Unit Costs (ver /b) $1.07 $1.47 Unit Net Cash Costs (per ib) $0.66 $1.06 Consolidated Volumes (000° ozs) 545 280 Realizati
Slide 5: Quarterly Operating Highlights
Freepont-MicMoRaN » Copper & Goto a % a Quarterly Operating Highlights Core Assets “1009 Unit Production Costs = ¥ (per pound of copper) North South America America Indonesia Consolidated Cash Unit Costs 7 pli : = — o Site Production & Delivery(? $1.32 $1.00 $0.92 $1.07 Royalties(? - - 0.07 0.02 Tre
Slide 6: Achieving Cost Reductions - Consolidated
Freepont-MicMoRaN Copper & GOLD Achieving Cost Reductions Site Production & Delivery Costs - Consolidated Core Assets Consolidated Site Production & Delivery $ per pound Revised Operating Reduction $1.66 Grasberg Ore Grades $1.07 Aggressive Cost Management/Lower Input Costs 3Q08 1Q09
Slide 7: Achieving Cost Reductions - North America
Freepont-MicMoRaN Copper & GOLD Achieving Cost Reductions Site Production & Delivery Costs — North America North America Site Production & Delivery z $ per pound Aggressive Cost Management $2.07 36% Reduction Lower Input Costs $1.32 = Diesel prices down 50% = Power prices down 35% = Significant decl
Slide 8: Provisional Pricing
FRreerort-McMoRan Copper & GOLD ‘Core Assets Provisional Pricing wa & \ Under Established Commercial Arrangements, Copper Concentrates are Provisionally Priced when Shipped and are Subject to Final Pricing 1 to 4 Months Later > Accounting Treatment for Provisional Sales ni t low Ir Provisionally Pri
Slide 9: Markets
FRreerort-McMoRan Copper & GOLD Markets LME Copper Price 000’s Metric Tons punog .Bd s1uaD, Jan9. Jul Jan-{0 JulO0 JanO1 JubOl Jan2 Ju-02 Jan-03 Wu-03 Jon-O4 JuLOf Jan-05 Jul-05 Jan-06 JuL06 JanO7 JuL-O? JanG@ Jule Jano9 “UME and! Comex, exciudhg Shanghai stocks, procucer, consumer and merchant stoc
Slide 10: Operating Plan Overview
FRreerort-McMoRan Copper & GOLD ‘Core Assets A ol Operating Plan Overview North & South America Reduced rates at Morenci, Safford and Tyrone Suspended operations at Chino; produce from leach pads Reduced mining rates in Candelaria/ Ojos district Molybdenum Reduced further with an approximate 40% red
Slide 11: Sales Profile 2007-2010e
FRreerort-McMoRan Copper & GOLD ss 4 _ = Assets Sales Profile 2007 - 2010e a Copper Sates (billion lbs} 5 24 2 3.9 41 " 4 a 3.9. 3.8 a 2007 2008 2009e 2010e Pro 5 Forma’ “ve Corsa gost nue appro sinataly 228k oxi, 207, 198 or 2008, Dok orm 2005, and 2108 or 20iDe Be onentelngmrseet 3 Molybdenum Sale
Slide 12: 2009e Quarterly Payable Metal Sales
FRreerort-McMoRan ‘A CopreRr & GoLD = ; . ~~ Core Assets 2009e Quarterly Payable Metal Sales ” Cc Gold Sales (thousand ozs) Copper Sales (million ibs} 650 625 600 545 1,250 40 450 1,020 / 200 1,000 955 960 975 150 a 750 1909 2Q09e 3Q09e 4Qgo9e “NRT COATES ga sls inde spposinately 52 ox 1003, Fk orn
Slide 13: 2009e Sales and Unit Production Costs by Region
Freepont-MicMoRaN ¢ Noss Copper & GoLp . ‘ rN x 2009e Sales and Unit Production Sy Costs by Region North America South America indonesia 2.2 1,370 1,300 1,130 50 (2) —_ on o, a | fad Cae North South (per pound of copper} America America Indonesia Consolidated (7 Cash Unit Costs = oa a= = a Site Prod
Slide 14: Exploration
FRreerort-McMoRan Copper & GoLD Exploration " Core Assets A 2008 2009e $248 million $75 million North America South America | 10%, Activities focused on incorporating significant data obtained in 2008 into our & Other Areas future plans Australasia Note: FCX' consolidated share; e = estimate, See Ca
Slide 15: EBITDA and Cash Flow at Various Copper Prices
FRreerort-McMoRan Copper & GoLD EBITDA and Cash Flow a J Core Assets at Various Copper Prices ‘ct 100 Gold & $8 Molybdenum) $8) (Usébilions) $6 $4 $2 $0 Cu$1.50/Ib Cu $2.00/Ib Cu $2.50/Ib 2009e & 2010e Average Annual Operating Cash Flow (excluding Working Capital)* ($900 Gold & $8 Molybdenum) $57 (U
Slide 16: Sensitivities (2009e & 2010e Avg.)
Freepont-MicMoRaN Copper & GOLD Sensitivities (2009e & 2010e Avg.) <0 AS aw © Change a B eerroke es Toa (088 millions} Copper: -/+ $0.10/Ib $375 $260 Molybdenum: -/+ $1.00/Ib $50 $45 Gold: -/+ $50/ounce $100 $60 Diesel ©: -/+ 10% $25 $15 Purchased Power ®): -/+ 10% $40 $25 Currencies ©: +/- 10% $110
Slide 17: Capital Expenditures
FRreerort-McMoRan Copper & GOLD z as (49) care penn Capital Expenditures — @ Major Projects All Other (US$ 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 developm
Slide 18: Tenke Fungurume Development Project Update
FRreerort-McMoRan Copper & GOLD Tenke Fungurume . Core Assets Development Project Update _N \e Construction and commissioning activities advanced; first copper produced in March as project entered start-up phase Construction activities focused on completing the cobalt and acid plants Ramp-up to full
Slide 19: Tenke Fungurume Development Project Update
fereces AD a Tenke Fungurume m . Development Project Update A Cx
Slide 20: Tenke Fungurume
FRreerort-McMoRan Copper & GOLD Tenke Fungurume ~ core Assets A World-class design & construction, using = modern technology and international standards for environmental management, occupational safety and social responsibility Significant infrastructure investments, including upgrading national ro
Slide 21: Underground Mine Development in Indonesia
FRreerort-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 Ca
Slide 22: FCX Debt Maturities 3/31/09
Freepont-MicMoRaN Copper & GOLD $6,000 $5,000 $4,000 $8,000 $2,000 $1,000 FCX Debt Maturities 3/31/09 (US$ millions) Total Debt & Cash at 3/31/09 (US$ billions) Public Debt Other Debt $4,002 Total Debt 8.375% Consolidated Cash $0.6 Pies and PD $2,514 Senior Notes Floating Rate & B.25% Senior Notes $
Slide 23: Financial Policy
FRreerort-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 24: FCX Investment Summary
FRreerort-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 S
Slide 25: Reference Slides
Reference Slides
Slide 26: Grasberg Open Pit
FRreerort-McMoRan Faw Pit Grasberg Open
Slide 27: PT-FI Mine Plan
Freepont-MicMoRaN Copper & GOLD PT-FI Mine Plan PT-FI’s Share of Metal Sales, 2009e-2013e Copper, billion lbs Gold, million ozs 2009e - 2013e PT-Fi Share 2009e - 2013e PT-Fi Share Total: 6.1 billion ibs Total: 8.8 million ozs Annual Average: 1.2 billion lbs Annual Average: 1.8 million ozs 2.2 2.2 2.
Slide 28: Mining Sequence in 2009
FRreerort-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 28
Slide 29: Mining Sequence in 2009
FRreerort-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 29
Slide 30: Mining Sequence in 2009
FRreerort-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
FRreerort-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 2010
FRreerort-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 32
Slide 33: Mining Sequence in 2011
FRreerort-McMoRan Copper & GoLD Mining Sequence in 2011 Copper Equivalent Cross Section 8E and 9N are the Primary Ore Pushbacks in 2011 BB Leaend: mm 0.25 - 0.99% CuEq Jim 1.00 - 1.99% Cueq | mm 2.00 - 2.99% CuEq _ 7 7 mm >3.00% CuEq > ON is in ore north of this cross-section |
Slide 34: Mining Sequence in 2012
FRreerort-McMoRan Copper & GoLD Mining Sequence in 2012 Copper Equivalent Cross Section ON is the Primary Ore Pushback in 2012 Leaend: mm 0.25 - 0.99% CuEq Jim 1.00 - 1.99% Cueq | mm 2.00 - 2.99% CuEq — . . mm >3.00% CuEq ON is in ore north of this cross-section a4
Slide 35: Mining Sequence in 2013
FRreerort-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 35
Freeport Mcmoran Copper & Gold — Q1 2009 Earnings Presentation on 6ix