Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q1 2008 Earnings Presentation
38 slides from Freeport-mcmoran's earnings presentation, Apr 24, 2008
Slide 1: First Quarter 2008 Conference Call
uarter2008 Conference Call ro FCX ae - April 23,2008 —~ ana eS aes www fex.com =
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
FREeport-McMoRan [V8 Copper £ GoLD Cautionary Statement Regarding Forward-Looking Statements This presentation contains Forward-looking statements in which we discuss factors we beleve may affect our performance in the future, Forwarallboking statements are all statements other than historical facts
Slide 3: A World of Opportunities
(FREEPORT-MicMoRan Copren 2 Gown A World y| World oi Opportunities "2007 Annual Report Highlights = Strong Portfolio of Global Producing Operations A World of Assets " Opportunities to Expand 7 e Current Production Capacity oe : = Add Reserves to Extend AWerta ot ie Lives of Our Mines " Develop Sign
Slide 4: 1Q08 Highlights
FREEPORT-MicMoRan =" Copren a Gop 1Q08 Fighlights Sales Data 10908 1907 Copper Consolidated Volumes (mm /bs) 911 520 Average Realization (per /b) $3.69 $3.00 Gold Consolidated Volumes (000’s ozs) 280 956 Realization (per oz) $933 $655 Molybdenum Consolidated Volumes (mm /bs) 20 2 Realization (per /b
Slide 5: Quarterly Operating Highlights
FREEPORT-MicMoRan 5" Coppen a Goo Quarterly Operating Highlights Operating Data 1Q08. 1Q07 Pro Forma Copper Consolidated Volumes (mm /bs) 911 1,025 Average Realization (per /b) $3.69 $2.81? Net Unit Cash Cost (per /b) $1.06 $0.40 Gold Consolidated Volumes (000%s ozs) 280 977 Realization (per oz) $93
Slide 6: 1Q08 Unit Production Costs
1Q08 Unit Production Costs (per pound of copper) North South Cash Unit Costs America America Indonesia Consolidated Site Production & Delivery $1.64 $1.08 $1.86 $1.47 Royalties) 0.00 0.00 0.12 0.03 Treatment Charges 0.09 0.21 0.33 0.19 By-product Credits (0.77) (0.14) (4.23) (0.63) Net Cash Unit Cos
Slide 7: 1Q08 Copper Price Impact
FREEPORT-McMoRAn COPPER & GOLD 1Q08, Copper Price Impact >» Spot Price Increased From $3.01/Ib at Start of Year to $3.86/Ib at Quarter End >» Approximately Half of Sales in Any Quarter are Provisionally Priced and Subject to Final Pricing = Quarter-end Price is a Major Determinant in Recorded Price
Slide 8: Strong Markets
FREEPORT-MicMoRan =" Copren a Gop Strong Markets LME Copper Price 000's Metric Tons Punog Jaq sque9 Jan$9 Jul99 Jan€0 Jul00 Jan-Ot Jul Jon-02 Jul? Jan3 Jul-08 JanO$ Jub04 Jan-05 Jul05 Jan-06 Jul Jan-07 Jul Jan “LME and Comex, excluding Shanghai stocks, producer, consumer and merchant stocks. London
Slide 9: 2008 Outlook
FREEPORT-MicMoRan 5" Coppen a Goo 2008 Outlook > Sales Outlook: ¢ Copper: 4.2 Billion Ibs. ¢ Gold: 1.4 Million ozs. ¢ Molybdenum: 75 Million Ibs. > Modeled Operating Cash Flows “: Exceeds $6.5 Billion for 2008 = Significant Working Capital Requirements in First Half « Expect Working Capital Use in 2
Slide 10: Development Project Update: North America - Copper
FREeport-McMoRan [V8 Copper £ GoLD Development Project Update North America — Copper Safford Mine Development Miami Mine Restart ¢ Major new mine in Arizona ¢ Restart of the Miami mine completed * 100MM Ibs Cu/year by 2010 ¢ SX/EW facility continues to ramp-up to full rates; produced 22MM bbs in 1Q0
Slide 11: Development Project Update: North America - Molybdenum
FREeport-McMoRan [V8 Copper £ GoLD Development Project Update North America-— Molybdenum Climax Primary Moly Mine Restart e «$500MM “brownfield” project = Open-pit operation = Construction of new mill with : ? abn restart by 2010 - ve SAG R = Air permit received in 1Q08 Balimalls er ¢ Initial annual
Slide 12: Development Project Update: South America
FREeport-McMoRan [V8 Copper £ GoLD Development Project Update South America El Abra Sulfide ° Large sulfide mineral deposit underlying current oxide pit Original Topography. « Environmental impact study approved by Chilean Government in 1908 « Extends mine life 10+ years Oxide Final Pit ‘Sulfide Fin
Slide 13: Big Gossan Shaft Development
Big Gossan Shaft Development Concrete pour NOTE: FCX has 3 90.64% ownershpp interest in Grasberg * metric tons Underground Mine Development DOZ Expansion - Operated at record 61K mt*/d in 1Q08 - Further expansion to 80K under way ith targeted completion by 2010 Initiating mine development activities
Slide 14: Development Project Update: Democratic Republic of Congo
FREEPORT-McMoRAn COPPER & GOLD y Development Project Update Democratic Republic of Congo Tenke Fungurume Mine Development ¢ Engineering, procurement & construction activities continue; concrete work, steel tank erection, structural steel & infrastructure development ¢ Revised aggregate capital cost
Slide 15: Tenke Fungurume Construction Site
FREeport-McMoRan [V8 Copper £ GoLD Development Project Update Democratic Republic of Congo Leach Tanks &-CCD, Stockpile & Dump Pocket Heavy By Po, meee REAGent Storage — "SAG TH ¥ = saff Lctch CCD es a = Electrical Substation ” 7S — Tenke Fungurume Construction Site soe Cofistruction Camp
Slide 16: Copper Reserve & Mineralized Material Estimates
FREEPORT-McMoRAn COPPER & GOLD Copper Reserve & Mineralized Material Estimates 48.0f 12/31/07 copper price copper price Reserves Mineralized (billion Ibs of Material) recoverable copper) (billion Ibs of contained copper) (a) Consolidated copper reserves using a long-term copper price of $1.20; 77 bi
Slide 17: Exploration Targets in Major Mineral Districts
FREEPORT-McMoRAn "Copper & Gown A World of Opportunities Exploration Targets in Major Mineral Districts 80 drill¥igds operating around the world Safford /Lone Star /Morenct District Cerro Verde Grasberg SW US. Afried Indonesia South America
Slide 18: Aggregate 2008e Exploration
FREEPoRT-McMoRan COPPER & GOLD Aggregate 2008e Exploration: ~$180 million North America Lone Star, Morenci & Others Africa Indonesia Tenke Deep Grasberg, Fungurume Kucing Liar, & & Kisanfu other targets outside of Block A Australasia & Other Areas 8 e = estimate. Pleare see cactionary statement
Slide 19: Sales Profile 2007 - 2010e
FREEPoRT-McMoRan Copren & Goin Sales Profile 2007 - 2010e Copper Sales (billion Ibs) 5 2006 2007 2008e 2009 2010e Pro Pro Form. Forma* ‘ote Consolidated copper sales inde approxinately 535 mm Ibs in 2006, 617 mm Ws in 2007, 700 mon sin 2008e, 740 ms 2008e and 775 mms #2010 for minorty interest ‘excl
Slide 20: 2008e Quarterly Payable Metal Sales
FREEPonT-McMoRan Copren a GoLo 2008e Quarterly Payable Metal Sales Ni. Gold Sales (thousand ozs) Copper Sales (million Ibs) in lower grade sex 280 1,250 1,120 1,000 750 1908 2Q08e 3Q08e 4Q08e Tote: Conschaed gad sales ince spprowimatey 29 oz in 1908, 25k oz in 2008, Sh ax in 3008 ard 55 b in MCOBE f
Slide 21: 2008e Sales and Unit Production Costs by Region
FREEPORT-MicMoRan 5" Coppen a Goo 2008e Sales and Unit Production Costs by Region 2008e Sales by Region North America South America Indonesia 1,480 1,200 75) 13 Cu Mo Au Cu Au ram Ibs mim Ibs more | mm bs | wm ozs | North South (per pound of copper) America America Indonesia Consolidated Cash Unit C
Slide 22: Average Annual EBITDA and Operating Cash Flow 2008e-2009e
Average “Annual El EBITDA 2008e-2009e ($900 Gold & $30 Molybdenum) $15) (US$ billions) $13 $11 $9 $7 $5 Cu $3.00/Ib Cu $3.50/Ib Cu $4.00/Ib Average Annual Operating Cash Flow 2008e-2009e ($900 Gold & $30 Molybdenum) $9) (US$ billions) $6 $3 $0 Cu $3.00/Ib Cu $3.50/Ib Cu $4.00/Ib "Note: Pres as noted
Slide 23: Sensitivity to Commodity Prices
FREEPORT-MicMoRan =" Copren a Gop SENSI, tg Commodity TAIEES, Annual Financial Impact Net Operating Change EBITDA Income Cash Flow (US$ millions) Copper: -/+ $0.20/Ib $850 $490 $575 Molybdenum: -/+ $2.00/Ib $140 $100 $100 Gold: -/+ $50/ounce $90 $45 $50 Tete: Annual France impact based on estimated
Slide 24: Capital Expenditures
Freeport-McMoRan * Copper & Goto oe, Pr a: (USS billions) $3.05 $2.54 $2.05 $1.54 $1.04 ” Capital Expenditures @ Major Projects All Other $2.4 2007 * 2008e 2009e 2010e * Includes PD expenditures beginning March 20, 2007 ‘Note: Includes capitalized interest. e = estimate. Please see cautionary statem
Slide 25: Average Annual Excess Cash Flow
CoE omonan ¥: a % : /OPPER & GOLD 5 ce Pes EITM Average Annual Excess Cash Flow (@ in billions, except copper, gold and molybdenum prices) 55 ee 5 s Copper Sensitivities with g $900 Gold/$30 Molybdenum Za J = Available for o investmentis/ 5 $3 | debt reduction/ x shareholder 3 returns & 2 2 | z & ga
Slide 26: Financial Policy
FReepont-McMoRan Copper & Go.o Financtal Policy > FCX is Committed to Maintaining a Strong Financial Position > Continuation of Positive Copper Markets is Expected to Provide Substantial Cash Flows = Investments in Projects With Attractive Returns = Opportunistic Debt Reduction » Shareholder Returns
Slide 27: Slides
Slides
Slide 28: Grasberg District Ore Bodies
FREeport-McMoRan [V8 Copper £ GoLD Grasberg District Ore Bodies + At year-end 2007, we arrived at the start of the Grasberg BC terminal + In 2008, we will begin development of Grasberg BC infrastructure December 2007 5.5 km’ from the Portal Grasberg Block Cave “Spur” COW A Ore Bodies Plan View nN Po
Slide 29: Grasberg Open Pit
FREEPORT-McMoRAn 2" Coppers GOL Grasberg Open Pit
Slide 30: PT-FI Mine Plan
FREeport-McMoRan y: PT-FI Mine Plan COPPER & GOLD PT-FI's Share of Metal Sales, 2008e-2012e Copper, billion lbs Gold, million ozs 2008e — 2012e PT-Fi Share | 2008e — 2012e PT-Fi Share Total: 6.0 billion ibs Total: 7.8 million ozs Annual Average: 1.2 billion ibs Annual Average: 1.6 million ozs 2.0 2.
Slide 31: FREEPORT-McMoRAn
FREEPORT-McMoRAn COPPER & GOLD
Slide 32: FREEPORT-McMoRAn
FREEPORT-McMoRAn COPPER & GOLD
Slide 33: FREEPORT-McMoRAn
FREEPORT-McMoRAn COPPER & GOLD
Slide 34: FREEPORT-McMoRAn
FREEPORT-McMoRAn COPPER & GOLD
Slide 35: FREEPORT-McMoRAn
FREEPORT-McMoRAn COPPER & GOLD 0.99% CuEq 19% CuEG 9% CuEG
Slide 36: FREEPORT-McMoRAn
FREEPORT-McMoRAn COPPER & GOLD
Slide 37: Cross Section
FREEPORT-McMoRAn COPPER & GOLD ce in 2011. Cross Section B 8E/8S and 9N are the Primary Ore Pushbacks in 2011 0.25 - 0.99% CuEq 1.01 19% CuEG 2 9% CuEG uEq > ON is in ore north of this cross-section
Slide 38: Primary Ore Pushback in 2012
FREEPORT-McMoRAn COPPER & GOLD ON is the Primary Ore Pushback in 2012 99% CUuEG 1% CUEG z 99% CUEG >3.00% CuEq > ON is in ore north of this cross-section
Freeport Mcmoran Copper & Gold — Q1 2008 Earnings Presentation on 6ix