Freeport-mcmoran, Inc. · NYSE:FCX

Freeport-mcmoran — Freeport-McMoRan Copper & Gold — FBR Capital Markets Fall Investor Conference 2009

26 slides from Freeport-mcmoran's conference presentation, Dec 1, 2009

  1. Slide 1: Kathleen L. Quirk, Executive Vice President & CFO

    Kathleen L. Quirk Executive Executive Vice Vice President President & & CFO CFO New York City December 1, 2009 www.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 we discuss factors we believe may affect our performance in the future. Forward-looking statements are all statements other than historical facts, such as statements regarding pro

  3. Slide 3: Core Assets

    Core Assets  Long-Lived Reserves with Growth Potential  Geographically Diverse Operations  Financially Strong  Flexible Operating Structure  Experienced Team  Focused Strategy 3

  4. Slide 4: World's Leading Copper Producers

    World’s Leading Copper Producers Top 10 Copper Producers (2009E) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX BHP Billiton Xstrata Rio Tinto Anglo Southern Norilsk KGHM First Quantum American Copper ____________________ Source: Brook Hunt 3Q09 Report. Rankings based on n

  5. Slide 5: World Class Copper Discoveries Are Extremely Rare

    World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2009e Copper Production Million metric tons 0 5 10 15 20 25 Thousands metric tons 0 200 400 600 800 1,0 0 0 Grasberg Complex - 1988 Escondida - 1979 KGHM Polish Copper - 1957 Chuquicamata - 1910 Escondida - 1979 Grasberg C

  6. Slide 6: Geographically Diverse

    Geographically Diverse Major Mine Operations & Development Projects All major assets majority-controlled and operated North North America America11 Copper Reserves Copper/Gold/Silver Cu 28.3 billion lbs Mo 2.1 billion lbs Molybdenum Sales Cobalt Grasberg (90.64%) Cu 1.2 billion lbs Reserves Mo 56 mi

  7. Slide 7: Reserves at 12/31/08

    Reserves at 12/31/08 Consolidated Proven & Probable Reserves Copper Molybdenum Gold 12/31/08 billion lbs billion lbs million ozs Copper Reserves Reserves @ 12/31/07 93.2 2.04 41.0 by Geographical Region Additions/revisions* 12.8 0.51 0.3 Production (4.0) (0.07) (1.3) Net change 8.8 0.44 (1.0) Reserv

  8. Slide 8: Markets

    Markets 2,000 400 1,750 350 1,500 300 000’s Metric Tons Cents Per Pound LME Copper Price 250 1,250 1,000 200 750 150 500 100 250 50 LME & COMEX Exchange Stocks* 0 0 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Ju

  9. Slide 9: 2009 Highlights

    2009 Highlights  Prompt/Decisive Action in Response to Economic Downturn  Successful Execution of Revised Operating Plans  Strong Operating & Financial Performance  Enhanced Financial and Liquidity Position  Successful Start-up of Tenke Operations  Maintained Future Growth Opportunities  Rein

  10. Slide 10: YTD Highlights

    YTD Highlights Sales Data 3Q09 9-mos 2009 Copper Consolidated Volumes (mm lbs) 1,000 3,122 Average Realization (per lb) $2.75 $2.35 Site Production & Delivery Unit Costs (1) (per lb) $1.15 $1.08 Unit Net Cash Costs (1) (per lb) $0.50 $0.53 Gold Consolidated Volumes (000’s ozs) 706 2,088 Average Real

  11. Slide 11: Strong Operating & Cost Performance YTD

    Strong Operating & Cost Performance YTD  Strong Volumes Annual 2009e sales volumes  Access to High-Grade higher than January estimates* Section of the Grasberg Open Pit  Cu +3% (135 mm lbs)  Solid Results in the  Au +14% (300 k ozs) Americas  Tenke Start-up Consolidated Site Production & Deliv

  12. Slide 12: 2009 Outlook

    2009 Outlook  Sales Outlook: • Copper: 4.0 Billion lbs. • Gold: 2.5 Million ozs. • Molybdenum: 56 Million lbs.  Unit Net Cash Cost (1): • 60¢/lb  Operating Cash Flows (2): • $4+ Billion for 2009 • $1.1+ Billion in 4Q09 at $2.75 Copper • Each 10¢/lb Change in Copper = $80 MM in 4Q09  Capital Expe

  13. Slide 13: 2009e Sales and Unit Production Costs by Region

    2009e Sales and Unit Production Costs by Region 2009e Sales by Region (1) North America South America Indonesia 2.4 1,385 1,370 1,165 56 Au Cu Mo Cu mm ozs Cu Au mm lbs mm lbs mm lbs 0.1 mm lbs mm ozs North South (per pound of copper) America America Indonesia Consolidated (3) Cash Unit Costs (2) Si

  14. Slide 14: 2009e Quarterly Payable Metal Sales

    2009e Quarterly Payable Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 837 1,250 800 706 545 1,102 600 425 1,020 1,000 400 1,000 915 200 0 1Q09 2Q09 3Q09 4Q09e 750 ____________________ Note: Consolidated gold sales include approximately 53 k oz in 1Q09, 81 k oz in 2Q09, 69 k oz in

  15. Slide 15: Sales Profile 2007 - 2010e

    Sales Profile 2007 - 2010e Gold Sales (million ozs) Copper Sales (billion lbs) 3 2.5 2.3 5 1.9 2 1.3 4.1 1 3.9 4.0 4 3.8 0 2007 2008 2009e 2010e Pro Forma* 3 ____________________ Note: Consolidated gold sales include approximately 228 k oz in 2007, 134 k oz in 2008, 245 k oz in 2009e, and 185 k oz i

  16. Slide 16: EBITDA and Cash Flow at Various Copper Prices

    EBITDA and Cash Flow at Various Copper Prices 2010e Annual EBITDA ($900 Gold & $8 Molybdenum) $10 (US$ billions) $8 $6 $4 $2 $0 Cu $2.25/lb Cu $2.75/lb Cu $3.25/lb 2010e Annual Operating Cash Flow (excluding Working Capital changes) ($900 Gold & $8 Molybdenum) $6 (US$ billions) $4 $2 $0 Cu $2.25/lb

  17. Slide 17: Sensitivities 2010e

    Sensitivities 2010e Operating Change EBITDA Cash Flow (US$ millions) Copper: -/+ $0.10/lb $375 $260 Molybdenum: -/+ $1.00/lb $55 $45 Gold: -/+ $50/ounce $90 $50 Diesel (1): -/+ 10% $35 $25 Purchased Power (2): -/+ 10% $40 $25 Currencies (3): +/- 10% $110 $70 ____________________ (1) $1.90/gallon bas

  18. Slide 18: Capital Expenditures

    Capital Expenditures (1) Major Projects All Other (US$ billions) $3.0 $2.7 $2.5 1.1 $2.0 $1.5 $1.4 $1.4 $1.0 0.6 0.7 1.6 $0.5 0.8 (2) 0.7 (3) $0.0 2008 2009e 2010e (1) Capital expenditure estimates will continue to be reviewed and revised subject to market conditions (2) Includes Tenke development a

  19. Slide 19: Development Project Update

    Development Project Update North and South America Miami Mine Restart • Restart of the Miami mine • Ramp up to 100MM lbs Cu/year by second half 2011 • $40MM project, primarily mining equipment • 12/31/08 reserves of 600MM lbs Cu Cerro Verde Expansion • $50MM project to increase mill rate from 108K t

  20. Slide 20: El Abra Sulfolix Project

    El 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  Extends mine life 10+ years El Abra Pit 

  21. Slide 21: Long-Term Underground Mine Development in Indonesia

    Long-Term Underground Mine Development in Indonesia  Several large-scale underground projects to develop significant underground reserves  DOZ expansion to 80,000 t/d substantially complete Grasberg open pit  Big Gossan mine – small, high-grade mine with full rates by late 2012 Grasberg  Grasber

  22. Slide 22: Tenke Fungurume

    Tenke Fungurume  During 3Q09, 54MM lbs Cu produced & 40MM lbs Cu sold; 1MM lbs 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 lbs Cu & Kwatebala Mine 18MM lbs Co

  23. Slide 23: Tenke Fungurume Project Highlights

    Tenke Fungurume Project Highlights  Largest Investment in DRC - ~$2.0 billion  World-Class Design & Construction  Significant Infrastructure Upgrades  Expanding Social & Community Programs Workers install a liner for the Tailings Storage Facility  Project Provides Important Benefits:  Employme

  24. Slide 24: Balance Sheet

    Balance Sheet (US$ billions)  Significant Liquidity $20 (1) $17.6  Strong Credit Metrics $15  No Near-term Maturities Total Debt $10 $7.4 $6.6 $5 $0 At Time of PD Acquisition 12/31/08 9/30/09 in March 2007 Cash $3.4 $0.9 $2.3 Net Debt $14.2 $6.5 $4.3 (1) Pro Forma year-end 2006 total debt of $1.6

  25. Slide 25: Financial Policy

    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 Stock Dividend: $0.60/share per annum  Board to Review Financial

  26. Slide 26: FCX Investment Summary

    FCX Investment Summary  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  Significant Reserve Growth 26

Freeport-McMoRan Copper & Gold — FBR Capital Markets Fall Investor Conference 2009 on 6ix