Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q3 2009 Earnings Presentation
33 slides from Freeport-mcmoran's earnings presentation, Oct 21, 2009
Slide 1: Freeport-McMoRan Copper & Gold Third Quarter 2009 Results
FREEPORT-McMoRan Copper & GoLD Quarter Zu, GS CONTEFCIIGENS October 21, 2009 t, a
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
FReerort-McMoRAn Copper & GOLD Cautionary Statement Regarding Forward-Looking Statements A Ca 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 fac
Slide 3: 3Q09 Highlights - Core Assets
FReerort-McMoRAn Copper & GOLD ow 3 Q09 Highlights " Core Assets “Sales Data = 3009”, 3008, ™ Consolidated Volumes (mm sbs) 1,000 1,016 Average Realization (per ib) $2.75 $3.14 Site Production & Delivery Unit Costs @ (per ib) $1.15 $1.66 Unit Net Cash Costs (per ib) $0.50 $1.29 Consolidated Volumes
Slide 4: Strong Operating and Cost Performance in 3Q09
uN FReerort-McMoRAn Copper & GOLD Strong Operating & po ; rN: J Core Assets Cost Performance in 3Q09 Strong Volumes Consolidated sales volumes = Access to high-grade higher than July estimates* section of the Grasberg Open Pit = Cu +10% (90 mm Ibs) * Solid Results in the : on gee (156 k ozs) America
Slide 5: Quarterly Operating Highlights - Core Assets
Copper & GOLD FReerort-McMoRAn » Quarterly Operating Highlights * Core Assets 3909 Unit Production Costso aaa (per pound of copper} North South = America __America__Indonesia_ Consolidated Cash Unit Costs = = : oe = Site Production & Delivery/2 $1.22 $1.14 $1.10 $1.15 Royalties(2 - - 0.12 0.04 Treat
Slide 6: Markets
FReerort-McMoRAn Copper & GOLD Markets » 2 1,00 = MO s LME Copper Price g 5 10 mF = v af 0 2 > o g 3 a LME & COMEX Exchange Stocks* Jan $0 Ju90 an-O0 Jul Jant JuLO1 Jane Jul Jan Jul Jon-O Jul Jan JuL0S Jan JulO6 Jand7 Jul07 Jan Julge Jan.e9 Jule “LME and Comex, excluding Shanghai stocks, producer, c
Slide 7: Sales Profile 2007-2010e
FReerort-McMoRAn Copper & GOLD ss 4 _ = Assets Sales Profile 2007 - 2010e a Copper Sates (billion lbs} 5 3 19 13 41 1 4.0 4 3:2 3.8 o 2007 2008 2009e 2010e Pro 4 Forma* ‘Toe? Consehdared go sales incl spore simately 228 & orn 2007, 134 or in 2008, PEL 07 2005e, and 1854 oF b 20108 For nonconveing te
Slide 8: 2009e Quarterly Payable Metal Sales
FReerort-McMoRAn ‘A Copren & GoLp = ; . ~~ Core Assets 2009e Quarterly Payable Metal Sales ” Cc Gold Sales (thousand ozs) Copper Sales (million ibs} 837 1,250 800 706 1,102 600 545 425 1,020 1,000 400 1,000 915 aaa a 750 1909 2Q09 3Q09 4Qgo9e “TE CSTE gO cles ne poroinately $2 & oz 1908 4 faz 3009,
Slide 9: 2009e Sales and Unit Production Costs by Region
FReerort-McMoRAn Copper & GOLD 2009e Sales and Unit Production Costs by Region North America South America indonesia 1,385 1,370 24 1,165 56 Au te Ae i ee riots ay North South (per pound of copper} America America Indonesia Consolidated (7 Cash Unit Costs = oa a= = a Site Production & Delivery ( $1.
Slide 10: A World of Opportunities: Exploration Targets
A World of Opportunities Kc a a Exploration Targets in Major Mineral Districts A A et South America f 16% | Exploration in 2009e $75 million Australasia & Other Areas Activities focused on incorporating significant data obtained in 2007 and 2008 into our future plans Note: FCX' consolidated share; @
Slide 11: EBITDA and Cash Flow at Various Copper Prices
FReerort-McMoRAn Copper & GOLD EBITDA and Cash Flow at Various Copper Prices ” We J Core Assets $10) (US$ billions) $8 $6 $4 $2 $0 Cu $2.25/Ib Cu $2.75/Ib Cu $3.25/Ib 2010e Annual Operating Cash Flow (excluding Working Capital changes) ($900 Gold & $8 Molybdenum) $67 (US$ billions) $4 $2 $0 Cu $2.25
Slide 12: Sensitivities 2010e
FReerort-McMoRAn Copper & GOLD Sensitivities 2010e Change a & esrToheh es Toa (US$ millions} Copper: -/+ $0.10/Ib $375 $260 Molybdenum: -/+ $1.00/Ib $55 $45 Gold: -/+ $50/ounce $90 $50 Diesel ©: -/+ 10% $35 $25 Purchased Power ®): -/+ 10% $40 $25 Currencies ©: +/- 10% $110 $70 TEST. SOfgalon Base ca
Slide 13: Capital Expenditures
FReerort-McMoRAn Copren & GoLp = ; . ~~ z as (49) Core Assets Capital Expenditures — @ Major Projects All Other (US$ 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 Tenk
Slide 14: Development Project Update
FReerort-McMoRAn Copper & GOLD Development Project Update North and South America Miami Mine Restart ¢ Restart of the Miami mine e¢ Ramp up to 100MM lbs Cu/year by second half 2011 ¢ $40MM project, primarily mining equipment ¢ 12/31/08 reserves of 600MM Ibs Cu Cerro Verde Expansion ¢ $50MM project t
Slide 15: El Abra Sulfolix Project
FReerort-McMoRAn Copper & GOLD E/ Abra Sulfolix Project Resume construction activities for the project, deferred as a result of market conditions at the end of 2008 Large sulfide mineral deposit underlying current oxide pit New leach pad & modifications to existing crushing plant El Abra Pit Extends
Slide 16: Long-Term Underground Mine Development in Indonesia
FReepont-McMoRan > We » Copper & GoLp . Long-Term Underground Mine — ‘Core Assets Development in Indonesia wo Several large-scale underground projects to develop significant underground reserves DOZ approaching expanded 80,000 t/d rates Grasberg open pit Big Gossan mine — small, high-grade mine with
Slide 17: Tenke Fungurume
FReerort-McMoRAn Copper & GOLD Tenke Fungurume During 3Q09, 54MM lbs Cu produced & 40MM lbs Cu sold; 1MM Ibs Co produced Construction activities substantially complete; cobalt plant operating & acid plant started up in 3Q09 Ramping up to full capacity; aggregate annual production of 250MM Ibs Cu & 1
Slide 18: Tenke Fungurume Project Highlights
FReerort-McMoRAn , a. Tenke Fungurume oy ttm AS Copper & GOLD Core Assets Project Highlights ‘ct Largest Investment in DRC - ~$2.0 billion ee wees World-Class Design & Construction a - Significant Infrastructure Upgrades Expanding Social & Community Programs Workers install a liner for the Tailings
Slide 19: Balance Sheet
FReerort-McMoRAn Copper & GOLD Balance Sheet Debt at 9/30/09: $6.6 Billion; Cash at 9/30/09: $2.3 Billion Significant Liquidity Strong Credit Metrics No Near-term Maturities $638 MM in Senior Note Repayments Through October 20* - $340 MM in 672% Senior Notes $141 MM in 8.25% Senior Notes - $157 MM i
Slide 20: FCX Debt Maturities
FReerort-McMoRAn Copper & GOLD FCX Debt Maturities 9/30, (US$ millions) $6,000 $5,000 $4,000 $8,000 $2,000 $1,000 Total Debt & Cash at 9/30/09 Public Debt $6.3 Other Debt 0.3 $3,990 Total Debt $6.6 Consolidated Cash $2.3 ee Notes and se) s2ao2_ | Ser Floating Rate & 8.25% Senior Notes $26 $20 $4 $1
Slide 21: Financial Policy
FReerort-McMoRAn Copper & GOLD Financial Policy » Maintain Strong Balance Sheet & Liquidity Position = Aggressive Cost Management = Invest in Attractive Growth Projects as Economic Conditions Warrant = Opportunistic Debt Repayment = Board Action to Reinstate Common Dividend: $0.60/share per annum =
Slide 22: FCX Investment Summary
FReerort-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 Si
Slide 23: Reference Slides
Reference Slides
Slide 24: Grasberg Open Pit
FReerort-McMoRAn Copper & GOLD Faw Pit Grasberg Open
Slide 25: PT-FI Mine Plan
FReerort-McMoRAn Copper & GOLD PT-FI Mine Plan PT-FI's Share of Metal Sales, 2009e-2013e a th 2009e - 2013e PT-Fi Share Copper, billion lbs Total: 6.1 billion ibs copper Gold, million ozs Annual Average: 1.2 billion Ibs 2009e — 2013e PT-Fi Share Total: 9.1 million ozs gold 2.4 Annual Average: 1.8 mi
Slide 26: Mining Sequence in 2009
FReerort-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 26
Slide 27: Mining Sequence in 2009
FReerort-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 2
Slide 28: Mining Sequence in 2009
FReerort-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
FReerort-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 2010
FReerort-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 30
Slide 31: Mining Sequence in 2011
FReerort-McMoRAn Copper & GOLD Mining Sequence in 2011 Copper Equivalent Cross Section BB > ON is in ore north of this cross-section 8E and 9N are the Primary Ore Pushbacks in 2011 Leaend: mm 0.25 - 0.99% CuEq Jim 1.00 - 1.99% Cueq | mm 2.00 - 2.99% CuEq mm >3.00% CuEq 31
Slide 32: Mining Sequence in 2012
FReerort-McMoRAn Copper & GOLD Mining Sequence in 2012 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 2013
FReerort-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 33
Freeport Mcmoran Copper & Gold — Q3 2009 Earnings Presentation on 6ix