Freeport-mcmoran, Inc. · NYSE:FCX

Freeport-mcmoran — Jefferies Copper & Base Metals Summit 2019

14 slides from Freeport-mcmoran's conference presentation, Sep 25, 2019

  1. Slide 1: Copper & Base Metals Summit

    Copper & Base Metals Summit Richard C. Adkerson President & CEO September 25, 2019 fcx.com

  2. Slide 2: Cautionary Statement Regarding Forward-Looking Statements

    Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as projections or expectations relati

  3. Slide 3: FCX - Compelling Investment Opportunity

    FCX - Compelling Investment Opportunity Portfolio of High Industry Leader Quality Copper Assets with Size, Scale Difficult to Replicate and Durability Strong Track Record & Commitment to Growing Production Communities and and Cash Flow Profile Environmental Responsibility Technically Proficient – Co

  4. Slide 4: Proven Assets. Fundamental Value.

    “Proven Assets. Fundamental Value.” North America South America Indonesia Morenci - Largest Copper Mine in Cerro Verde - World’s Largest Grasberg - One of the World’s North America Mill Concentrating Facility - Largest Copper/Gold Mines Arequipa, Peru Long-lived, Geographically Diverse Asset Base 70

  5. Slide 5: Multiple Catalysts on the Horizon

    Multiple Catalysts on the Horizon Grasberg Commissioning Innovation Driven Enhanced Underground of Lone Star Productivity Shareholder Ramp-up Project In Arizona Improvements Returns $ Progressing on On Budget and Volume Growth, Substantial Schedule; Schedule Lower Costs, Free Flow Cash Most of the C

  6. Slide 6: Executing The Plan

    Executing The Plan Growing 2019e v. 2021e Sales ~30% ~80% (1) Profile Increase Increase in Copper in Gold Declining Unit Net ~25% (2) Reduction Cash Costs in Unit Costs Strong Financial (3) 100%+ With Leverage Results & EBITDA Increase to Improved Copper Market Conditions Generation in EBITDA Value

  7. Slide 7: Grasberg Underground

    Grasberg Underground Initiating Production Phase Established Long-lived Minerals District  Long History and an Industry Copper Gold (bn lbs) (mm ozs) Leader in Block Caving Historical Production 36 54 Expected Future Production 36 30  Significant Investments & Planning for Underground & Era Since

  8. Slide 8: Lone Star Leach Development in Arizona

    Lone Star Leach Development in Arizona Building Value in New U.S. Cornerstone Asset  Low-Risk Development in Established Mining District; Wholly Owned  Located 8 miles North of Safford; 18 miles Southwest of Morenci  $850mm Initial Project (~50% Complete)  Estimated Production: 200 mm lbs/annum

  9. Slide 9: Driving Productivity Through Innovation Across the Portfolio

    Driving Productivity Through Innovation Across the Portfolio Opportunity Fueled By Equivalent to New Concentrator  200 mm lbs of Incremental Copper Analytics Production  Low Capital  Reduced Unit Costs Data People  Unlock Additional Resource Values Bagdad Case Study resulted in… Implementing Acr

  10. Slide 10: Copper Market

    Copper Market Compelling Fundamentals Copper Price Structurally Supported ($ per pound) by Fundamentals  Inventories Remain Low $4.62 by Historical Standards  Mine Supply is Limited; Project Pipeline is Thin $3.30  Demand is Growing - $3.08 Decarbonization ~ $2.60  Essential to Global Economy 

  11. Slide 11: EBITDA and Cash Flow at Various Copper Prices

    EBITDA and Cash Flow at Various Copper Prices ($ in bn) EBITDA ($1,400/oz Gold, $12/lb Molybdenum) $10 $8 $6 $4 Transition $2 Year Average 2020e ’21e/’22e $0 Cu $3.00/lb Cu $3.25/lb Cu $3.50/lb Operating Cash Flow Excludes Working Capital Changes ($1,400/oz Gold, $12/lb Molybdenum) $8 $6 $4 Transiti

  12. Slide 12: Strong Financial Position & Liquidity

    Strong Financial Position & Liquidity ($ in bn) Liquidity Position as of 6/30/19 Consolidated Cash $2.6 $20.2 Undrawn Credit Facility $3.5 Total Liquidity $6.1 $7.3 Net Debt* YE 2015 6/30/19 No Debt Maturities Through 2020 * Net debt equals consolidated debt less consolidated cash. See Cautionary St

  13. Slide 13: Proven Commitment to Sustainability

    Proven Commitment to Sustainability Fundamental to Our Operations and Business Strategy FCX Working Toward Sustainable Development Reporting Highlights:  Provide Copper to Meet the World’s Growing Demand • Safety Performance in a Safe and Responsible Manner • Sustainability Programs • Community Inv

  14. Slide 14: Executing Clearly Defined Strategy to Build Value for Shareholders

    Executing Clearly Defined Strategy to Build Value for Shareholders Substantial Growth in Cash Flow  Growing Sales Continued Profile Execution of Grasberg  Declining Unit Underground Costs Innovation-Driven Ramp-up  Doubling EBITDA Productivity & Cash Flow Improvements (2019e v. 2021e) Completion

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