Slide 1: FCX Conference Call 3rd Quarter 2021 Results
Click to edit Master title style FCX Conference Call 3rd Quarter 2021 Results October 21, 2021 fcx.com
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Click to editStatement Master title style 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 pl
Slide 3: 3Q21 Highlights
3Q21 Highlights Strong Execution – Continuing our Momentum Copper 3Q21 1,033 Sales(1) Prioritizing health and safety Growing › Significant increase in COVID vaccination rates (million lbs) 3Q20 848 Strong financial results and cash flow generation › Reduced net debt by $5.6 billion since 9/30/20 Ong
Slide 4: Published Updated Climate Report
Published Updated Climate Report Report details FCX’s focus on: › Reducing Greenhouse Gas (GHG) emissions › Improving energy efficiency › Advancing the use of renewable energy › Understanding and enhancing resilience Established PT-FI 30% GHG emissions intensity reduction target by 2030 › In additio
Slide 5: Copper – Metal of the Future
Click Copper – Metal to edit Master title of the style Future Critical to Global Decarbonization Intensity of Use Is Increasing with Decarbonization More than 65% of the Electric vehicles use Renewable energy Copper consumption world’s copper is used up to four times more technologies use four to as
Slide 6: Compelling Investment Case For Copper & Freeport
Compelling Click to edit Investment Master title Case style For Copper & Freeport Rising Supply Structural Deficits Demand Scarcity Global economic Historically low inventories recovery and › LME recently hit 47-year low infrastructure development › Shanghai lowest since 2009 New demand drivers Geol
Slide 7: Growing Margins & Cash Flow
Growing Click Margins to edit & title Master Cash Flow style Volume growth Annual EBITDA Estimates (1) ($ in billions) 2021e v. 2020 2022e v 2021e Copper ~20% ~15% ~$17 Gold ~55% ~20% Efficient cost structure ~$12.5 Expanding margins Additional embedded growth options in portfolio Laser focused on e
Slide 8: Ongoing Success with Ramp-up of Grasberg Underground Mines
Ongoing Click Success to edit withtitle Master Ramp-up style of Grasberg Underground Mines 3Q21 annualized metal production reached 90% of post ramp-up targets Expected to reach 100% by YE 2021 2021e-2023e Annual Average as % of Targeted Average 2021e-2023e 100% 1.55 bn lbs Cu & 1.6 mm ozs Au Quarte
Slide 9: Future Growth Embedded in Existing Asset Base
Future Growth Embedded in Existing Asset Base Provides Increased Leverage to Higher Copper Prices Bagdad Lone Star El Abra Atlantic Copper Kucing Liar Expansion Expansions Expansion CirCular Project Grasberg District Arizona Arizona Chile Spain Indonesia › Double › Near-term oxide › Large sulfide re
Slide 10: Kucing Liar - Grasberg Minerals District
Kucing Liar - Grasberg Minerals District Lone Star Planning to commence long-term mine development activities Approximate 10-year development timeframe Reserves: 6 bn lbs copper & 6 mm ozs gold Annual production estimates: Grasberg BC › +500 mm lbs of copper › +500k ozs of gold Kucing Liar 90K mt/d
Slide 11: Lone Star Update
Lone Star Update Oxides Sulfides 2P Reserves: 5.4 billion lbs Mineral Potential: ~50 billion lbs (3) 105 (1) ~ 95 Success of oxide development advances opportunity for scale 75 Low capital intensity Design to incorporate combined leach and investment concentrate facilities – similar to Morenci in ad
Slide 12: Advancing Leach Technologies
Click to editNew Advancing Master titleTechnologies Leach style Taking Leach to the Next Level Industry leader with long history of leach production Copper in Leach Stockpiles Internal and external initiatives to advance sulfide leaching technologies Unrecoverable by and to drive continuous recovery
Slide 13: Executing Clearly Defined Strategy to Build Value for Shareholders
Executing Clearly Defined Strategy to Build Value for Shareholders Positioned for increasing Advancing cash returns to future organic shareholders growth Favorable opportunities operational and market Ongoing outlook success with ramp-up of Responsible Grasberg producer with underground proven track
Slide 14: TEAM – Charging Ahead As One Freeport
“Charging Ahead” As One Freeport TEAM 14
Slide 15: Financial Review & Outlook
Click to edit Master title style Financial Review & Outlook
Slide 16: 3Q 2021 Operations Update
3Q 2021 Click Operations to edit Update Master title style North America South America Indonesia Lone Star Cerro Verde - Peru Grasberg Underground › Current operations are exceeding initial › 3Q mill avg: 380k mt/d › 3Q21 annualized metal production design capacity of 200 million lbs › Targeting ~40
Slide 17: Indonesia Downstream Processing Update
Indonesia Downstream Processing Update PT-FI committed in 2018 IUPK to construct 2 mm tpy Preliminary Estimate of Spending in-country Cu concentrate processing facility by on Greenfield Smelter and PMR December 2023 ($ in bns) › Construction of new smelter has been delayed by COVID-19 $1.4 Capital c
Slide 18: Annual Sales Profile
Click Annualto Sales edit Master Profiletitle style October 2021 Estimate Copper Sales(1) (billion lbs) Gold Sales(2) (million ozs) 5 2 1.8 1.6 4.4 4.4 1.3 4 3.8 1 0.9 3.2 3 0 2020 2021e 2022e 2023e 2 Molybdenum Sales (million lbs) 100 85 1 80 80 80 75 50 0 2020 2021e 2022e 2023e 25 (1) Consolidated
Slide 19: EBITDA and Cash Flow at Various Copper Prices
EBITDA Click and Master to edit Cash Flow title at Various style Copper Prices ($ in bns except copper, gold and molybdenum prices) Sensitivities Average ’22e/’23e EBITDA l ($1,800/oz gold, $19/lb molybdenum) (US$ in mms) $20 EBITDA $15 Copper +/-$0.10/lb $435 Molybdenum +/-$1.00/lb $ 80 $10 Gold +/
Slide 20: Consolidated Capital Expenditures
Consolidated Click Capital to edit Master Expenditures title style Estimates Excluding Indonesia Smelter CAPEX (1) ($ in bns) $ Net of Scheduled Contributions $2.9 $2.7(2) $2.0 $2.0 $1.8(2) $1.8(2) $1.6(3) Major Projects $1.2 (3) $1.3(3) Other $0.8 $0.7 $1.3 2020 2021e 2022e (1) See slide 17; Indone
Slide 21: Strong Financial Performance
Strong Financial Performance Driven by Growing Volumes and Pricing Financial Policy Provides Framework for Cash Returns to Shareholders, Investments & Balance Sheet Management $ Net Debt (1) ($ bns) $7.6 $2.0 (2) 3Q20 3Q21 2.4x 0.2x (3) Net Debt / Adjusted EBITDA (1) Net debt equals consolidated deb
Slide 22: Financial Policy
Financial Policy Policy aligned with strategic objectives of maintaining a strong balance sheet and increasing cash returns to shareholders while advancing opportunities for future growth Organic Balance Growth Sheet Strength Annual base dividend of $0.30/share, paid quarterly Performance-Based Payo
Slide 23: World's Premier Publicly Traded Copper Producer
World’s Premier Publicly Traded Copper Producer Portfolio of High-Quality Experienced Management Team Copper / Gold Assets with Embedded Growth Options Industry Leader Difficult to Replicate with Size, Scale and Durability Strong Track Record Copper Supported by Positive and Commitment to Communitie
Slide 24: Reference Slides
Click to edit Master title style Reference Slides
Slide 25: Our COVID-19 Response
Click to edit Master Our COVID-19 title style Response Prioritizing the Health & Supporting Serving Well-Being of Our Our Communities Our Customers Workforce Active and preventive Providing monetary and As a leading supplier management, through in-kind contributions of of copper to the global the im
Slide 26: The Copper Mark
Click to edit Master The Copper Mark title style Recognition for Responsible Production 〉 Assurance framework developed to demonstrate the copper industry’s responsible production practices and contribution to the United Nations Sustainable Development Goals 〉 Producers participating in the Copper M
Slide 27: Financial Highlights
Click to edit Financial Master title style Highlights Sales Data 3Q21 3Q20 Copper Consolidated Volumes (mm lbs) 1,033 848 Average Realization (per lb) $ 4.20 $ 3.01 (1) Site Production & Delivery Costs (per lb) $ 1.88 $ 1.77 Unit Net Cash Costs (per lb) $ 1.24 $ 1.32 Gold Consolidated Volumes (000’s
Slide 28: 3Q21 Mining Operating Summary
3Q21 to Click Mining Operating edit Master title Summary style Sales From Mines for 3Q21 & 3Q20 by Region North America South America (2) Indonesia (3) 375 379 378 399 280 250 219 230 (1) (1) 20 20 Cu Mo Au mm lbs mm lbs 000 ozs 3Q21 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 3Q20 North South 3Q21 Unit
Slide 29: 2021e Operational Data
Click 2021etoOperational edit MasterData title style 2021e Sales by Region North America South America Indonesia 1,455 1,327 1,030 85 (1) 1.3 (2) Cu Mo Au mm lbs mm lbs mm ozs North South 2021e Unit Net Cash Costs (3) (per lb of Cu) America America Indonesia Consolidated Site Production & Delivery,
Slide 30: 2021e Outlook
Click 2021etoOutlook edit Master title style Sales Unit Net Cash Operating Capital Outlook Cost of Copper Cash Flows (3) Expenditures Copper: 3.81 billion lbs Site prod. & delivery ~$7.5 billion @ $4.50/lb $2.3 billion (4) ($2.0 billion › 2021e: $1.92/lb (1) copper for 4Q21e excluding smelter) Gold:
Slide 31: 2021e Quarterly Sales
Click 2021etoQuarterly edit Master title style Sales Copper Sales (million lbs) Gold Sales (thousand ozs) 1,200 500 402 375 400 1,033 1,025 305 1,000 300 258 929 200 825 100 800 0 1Q21 2Q21 3Q21 4Q21e Note: Consolidated gold sales include 48k ozs in 1Q21, 56k ozs 600 in 2Q21, 75k ozs in 3Q21 and 70k
Slide 32: Grasberg - World Class Block Cave Design
Grasberg Click - World to edit Class Master Block Cave Design title style Substantial Infrastructure in Place to Support Large-Scale Production Grasberg Block Cave DMLZ Plan View Ramp-up Schedule Plan View 100 meters Ramp-up Schedule 100 meters (000’s t/d of Ore) (000’s t/d of Ore) N N 78 78 126 130
Slide 33: Grasberg Transition Remains on Track
Project Click to Update edit Master title style Grasberg Transition Remains on Track Drawbelling Ore Extraction (000 t/d) Deep MLZ (DMLZ) DMLZ GBC DMLZ & Grasberg Block 40 40 34 41 80 68 Forecast 30 60 Cave (GBC) 30 30 24 60 18 39 20 20 16 40 averaged 136,200 10 12 15 11 9 9 10 15 10 10 20 4 7 t/d i
Slide 34: PT-FI Mine Plan Metal Sales
Click PT-FI to editPlan Mine Master title style Metal Sales, 2020 – 2025e Copper 2021e – 2025e Gold 2021e – 2025e Total: 7.7 billion lbs copper Total: 8.0 million ozs gold Annual Average: 1.55 billion lbs Annual Average: 1.6 million ozs 1.8 1.7 1.7 1.6 1.6 1.6 1.6 1.5 1.33 1.3 0.8 0.84 Cu Au bn mm l
Slide 35: FCX Debt Maturities as of 9/30/21
Click FCX Debt to edit Maturities Master title as ofstyle 9/30/21 (US$ bns) $8 Total Debt & Cash at 9/30/21 FCX Revolver $ - $6.9 Senior Notes 9.1 Cerro Verde Term Loan 0.3 PT-FI Term Loan & Other 0.3 $6 Total Debt $ 9.7 Consolidated Cash and Cash Eq. $ 7.7 Undrawn Credit Facility 3.5 Total Liquidit
Slide 36: 3Q21 Copper Realization & 4Q21e Guidance
Click 3Q21 to edit Master Copper title & Realization style 4Q21e Guidance 3Q21 LME Average $4.25/lb Copper Price 3-Mo. Fwd Price for Copper $4.05/lb at the End of September $4.20lb(1) FCX 3Q21 Consolidated Copper Price Realization (Generally, 50/50 weight of qtrly avg and 3-mo forward price at end o
Slide 37: Adjusted EBITDA Reconciliation
Click to edit Adjusted MasterReconciliation EBITDA title style ($ in mm) 12 mos ended 3Q21 9/30/2021 Net income attributable to common stock $1,399 $3,908 Interest expense, net 138 667 Income tax provision 628 2,285 Depreciation, depletion and amortization 528 1,865 Metals inventory adjustments 14 1
Slide 38: Click to edit Master title style
Click to edit Master title style