Slide 1: 1st Quarter 2016 Earnings Conference Call
fex.com fF Freeport-McMoRan ist Quarter 2016 Earnings Conference Call April 26, 2016 NYSE.
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation conteins forward-looking statements in which FOX dscusses is potenti future peo looking statements are all 2 "an es ie histoncel fects, suc as projections or expectations relating to ore grace che ding ae sates production en
Slide 3: Proving Our Mettle: 2015 Annual Report Highlights
Hl Freepont-McMoRan METTLE “Proving Our Mettle” met-tle /'‘medI/ 2015 Annual Report Highlights = Executing Clearly Defined Strategy = Maintaining Cost Focus and Capital Discipline = Strengthen Balance Sheet « Highly Attractive Portfolio of Assets + Provid iti igni Proceeds at Attractive Valuations A
Slide 4: Copper Market Commentary
Copper Market Commentary = Chinese Consumption - Power Grid Orders are Steady with High Wire & Cable Utilization bil d Appliance duction Growth - Construction Remains Subdued - Improved Market Sentiment = Western Demand Improving Modestly - Automobile Markets in the U.S. and Europe Remain Strong - U
Slide 5: Long-term Structural Deficit in Copper Generally Expected
Long-term Structural Deficit in Copper Generally Expected Supply Demand Shortfall Reasonable ~7 Mt Declines in Base Long-term ie SUPPLY GAP Production Demand — by 2025 Estimates (with No New Projects) ~18% Decline Over ~1.7% Compound Next 10 Years Annual Growth Rate * $3.30/Ib incentive copper price
Slide 6: Executing in a Weak Commodity Market
Executing in a Weak Commodity Market gs Supported by Portfolio of High Quality Assets hi mere Adjusted Mine Plans Curtailed High Cost Production CAPEX Completion Reductions & i of Major Cost Management + Ets ae vi fleas) Projects Strengthen Balance Sheet > Maintain) High Quality, Portfolio) i / Divi
Slide 7: 1Q 2016 Mining Operating Summary
I Freeront-McMoRan TLE 1Q 2016 Mining MET Operating Summary 1Q16 Unit Production Costs Cash Ut it Costs North South (paren cies America America _ Indonesia Africa Consolidated Site Production & Delivery $1.40 $1.23 $2.24 $1.64 $1.51 By-Product Credits (0.08) (0.07) (4.52) (0.38) (0.33) Treatment Cha
Slide 8: Asset Sale Transactions To Date in 2016
I Freeront-McMoRan METTLE Asset Sale Transactions To Date in 2016 Date of 015 Agreement Consideration EBITDA Closing (Sin bilions) (Sin milions) Morenci (13% Interest) 2/15/16 $1.0 $115” 2916 Timok Exploration Project 3/3/16 $0.37 $(16) 2Q16 Oil and Gas Royalty Interests 4/21/16 $0.1 ~$10 2Q16 Total
Slide 9: Premier Portfolio of Long-Lived, Geographically Diverse Global Mining Assets
Premier Portfolio of Long-Lived, Geographically Diverse Global Mining Assets BRO VERDE GRASBERS MORENC! cE Largest Copper Mine World’s Largest One of Largest Copper/ High Grade Copper/ in North America Concentrating Facility Gold Reserves in World Cobalt Resource Cu Reserves: 31 bn Ibs bn Ibs zed Ma
Slide 10: Cerro Verde Project Execution
Cerro Verde Project Execution 42 * Completed Construction of World’s Largest Concentrating Facility * Strong Performance on Capital Cost Management and Startup * Achieved Full Capacity Operating Rates During 1Q16 Cerro Verde Mill Rate Performance 000’st/d milled 373 309 301 BEL aS Concentrator #2 wR
Slide 11: Significant Copper Resources & Potential
Hl Freepont-McMoRan E Significant Copper METTE Resources & Potential billion lbs of copper Future Resource . Development Opportunities Reserves* Hw 99 3 * El Abra Major Sulfide Deposit § = North America Sulfides Mineralized * Tenke Material** ram Reserves & fj Mineralized Reserves 204 Material Poten
Slide 12: Positive Free Cash Flow in Mining Business with Significant Leverage to Recovery
[i Freeport-McMoRan METTLE Positive Free Cash Flow in Mining Business with Significant Leverage to Recovery (Sin billions) 016e 2015 10916 2016e EBITDA CAPEX $6.8 $5.7 1.8 $0.8 $0.5 EBITDA CAPEX EBITDA CAPEX“” bs $2.00 @$2.25 @$2.50 CAPEX Copper? Copper? Copper 2 Each 10¢ Change in Copper: $425 mm I
Slide 13: Oil & Gas Highlights
I Freeront-McMoRan METTLE Oil & Gas Highlights 4x Focused on Managing Costs and Enhancing Asset Values = New Organization Structure - Reduce Costs - Align Capital Allocation with Corporate Objectives LOE ($/bbl) $15.85 $20.26 = Signi Capital Winding Down CAPEX(mm's) $523 $1,033 - Maintain Near Term
Slide 14: Deepwater Gulf of Mexico Focus Areas
MET Deepwater Gulf of Mexico Focus Areas Fr 10.2016 Net Production Rates \ ‘Asset Area MBOE/d Holstein Facility Marlin Facility Horn Mountain Facility Lucius: Other Deepwater GOM Total i Louisiana Atwater Valley Facilities % Development L Discovery ——— | (Se FM O&G Leases
Slide 15: 2017e Oil & Gas EBITDA at Various Prices and CAPEX
Hl Freepont-McMoRan METTLE 2017e Oil & Gas EBITDA at Various Prices and CAPEX (Sin billions) $1.8 $1.4 @$35Brent @$45Brent @$55Brent @$65Brent 2017eCAPEX (excludes $0.5 bn in idle rig costs) depletor associated with idle igs. Amounts are estimates for dustrative purposes based on model results. Mode
Slide 16: 2016e Outlook
Hl Freepont-McMoRan METTLE 2016e Outlook Sales Outlook | | Unit Cost | = Copper: 5.0 Billion Ibs.” = $1.05/Ib” of Copper = Gold: 1.85 Million ozs. = $15/BOE = Molybdenum: 71 Million Ibs. * Oil Equivalents”: 54.4 MMBOE (~73% Oil) Operating Cash Flows | | Capital Expenditures | = ~$4.8 Billion (@$2.25
Slide 17: Sales Profile
Sales Profile {Copper Sales (billion lbs) ) 6 3 2 1 0 oo 2015 2016e le 4 4.1 Note: Consokisted golf sees ncide 115¢ gash 2018, 170k cosh 20160 and 235k 02s in 2017e for noncontroling int ( Molybdenum Sales (million Ibs) ) 90 89 60 71 74 30 ° 2015 2016e 2017e Oil & Gas Sales (MMBOE) 2015 2016e* 2017e
Slide 18: EBITDA and Cash Flow at Various Copper Prices
[i Freeport-McMoRan EBITDA and Cash Flow at Various Copper Prices $9 (Uss billions) $6 $3 2016e/2017e Average $0 Cu $2.00/Ib Cu $2.25/Ib Cu $2.50/ Ib A ig Cash Flow luding Working Capital changes) ($1,200 Gold, $6 Molybdenum & $47 Oil)* $6 (US$ billions) 2016e/2017e Average Cu $2.00/Ib Cu $2.25/ Ib
Slide 19: Capital Expenditures
Capital Expenditures (Ss billions) $6.35 Future Spending Dependent on Improvement in Market Conditions Oil & Gas 3.0 $3.3 ay a el 2015 2016e 0. $0.5bilon n 2017¢, Note: Incudes captalzed interest. e= estimate, See Cautionary Statement. eC)
Slide 20: Committed to Balance Sheet Management
Committed to Balance Sheet Management — Strong Track Record (US$ billions) Manageable Near-Term Debt Maturity Schedule $2 FCX Debt Structure as of 3/31/16 (US$ billions) Vel Revolver $ 05 Non-Recourse Loan Bank Term Loans 3.0 FCX & FMC Sr. Notes 12.3 $1 FM O&G Senior Notes 2.5 FOX Cerro Verde Non-Re
Slide 21: Focused on Execution
Hl Freeront-McMoRan METTLE Focused on Execution Ex Lust, Sousa Pro lssle ) Securing Long- term Rights in) 140} SI id Strong Track Record
Slide 22: Reference Slides
Reference Slides
Slide 23: Financial Highlights
[i Freeport-McMoRan Financial Highlights | Sales Data 1Q16 x= Consolidated Volumes (mm Ibs) 1,123 Average Realization (per Ib) $2.17 Site Production & Delvery Costs (per Ib) $1.51 Unit Net Cash Costs (per Ib) $1.38 Consolidated Volumes (000’s ozs) 201 263 Average Realization (per oz) $1,227 $1,186 O
Slide 24: Sale of 13% Interest in Morenci
Sale of 13% Interest in Morenci = Announced Definitive Agreement on February 15, 2016 = Sumitomo Metal Mining (SMM) to Acquire 13% of Morenci Mine Unincorporated JV Morenci O hip | Current _Post-closir FCX 85% 72% Sumitomo* 15% 28% 2015 Statistics (FCX’s 85% Share) Reserves 12 bn Ibs = $1.0 Billion
Slide 25: Sale of Interest in Timok Copper-Gold Project Located in Serbia
Hl Freeront-McMoRan ETTLE Sale of Interest in Timok Copper-Gold Project Located in Serbia = Consideration to FCX Includes: - $135 mm Payable at Closing - Up to $20 mm to be Spent by Purchaser in Connection with Agreed Exploration and Study Work on the Lower Zone - $45 mm Payable to FCX Upon the Earl
Slide 26: 2016e Operating Estimates
Hl Freepont-McMoRan METTLE 2016e Operating Estimates 2016e Unit Production Costs North South eiesammiaiaii America America Indonesia Africa Consolidated Cash Unit Costs Site Production & Delivery 2) $1.41 $1.26 $1.21 $1.62 $1.33 By-product Credits (0.06) (0.08) (1.66) (0.35) (0.54) Treatment Charges
Slide 27: 2016e Quarterly Sales
METTLE 2016e Quarterly Sales : . | Gold Sales (thousand ozs; f Copper Sales (million lbs) ) as oo Z 1,500 750 950 — 1 ~ 505 250 9 a 204 3 150 1Q16 —-2Q16e —- 3Q16e-——AQIGe 1,123 Note: Consolidated gol. 1,000 a ted gold sales indude approximately 18k azsin 1016, 18k ozs 206, 47kozs n 3060 and 87k 07s
Slide 28: PT-FI Mine Plan
. TTLE PT-FI Mine Plan ME PT-FI's Share of Metal Sales, 2016e-2022e 2016e — 2020e PT-FI Share Total: 5.9 billion lbs copper Annual Average: 1.18 billion lbs 2016e — 2020e PT-FI Share Total: 7.85 million ozs gold Annual Average: 1.57 million ozs Note: e= i Copper, billion Ibs a Gold, million ozs 25 1
Slide 29: Sensitivities 2016e
Freepont-McMoRAn Sensitivities (US$ millions) 4x 2016e Operating Change EBITDA Cash Flow Copper: +/- $0.10/Ib $425 $340 Molybdenum: +/- $1.00/Ib $28 $22 Gold: +/- $50/ounce $75 $45 Oil Sales: +/- $5/bbI $150 $120 Oil Sales Net of Diesel Costs:7 +/- $5/bbl $125 $100 Natural Gas: +/- $0.50/Mcf $20 $16
Slide 30: Sensitivities 2017e
I Freeront-McMoRan Mi ETTLE Sensitivities (US$ millions) 4x 2017e Operating Change EBITDA Cash Flow Copper: +/- $0.10/Ib $435 $350 Molybdenum: +/- $1.00/Ib $35 $28 Gold: +/- $50/ounce $125 $75 Oil Sales: +/- $5/bbI@ $200 $160 Oil Sales Net of Diesel Costs:7 +/- $5/bbl $160 $130 Natural Gas: +/- $0.5
Slide 31: 2016e Oil & Gas Operating Estimates
{E Freeport-McMoRan 2016e Oil & Gas Operating Estimates a Madden & Be Operating Cost: $1.90/Mcfe Haynesville Pricing: NYMEX: Operating Cost: $29/bbI Gulfiof Mexico Operating Cost: $11/bbl Pricing: HLS/NYMEX 2016e Oil & Gas Sales by Region | California aviesvE GOM Madden/Other 104 89 cs |. | vBE/0 In
Slide 32: Adjusted EBITDA Reconciliation
Hl Freeport-McMoRan Adjusted EBITDA Reconciliation (in millions) 12 Months 1Q2016 Ended 3/31/2016 Net loss attributable to common stock $(4,184) $(13,946) Interest expense, net 200 699 Income tax provision (benefit) 70 (1,170) Depreciation, depletion and amortization 722 3,280 Impairment of oil and
Slide 33: FCX Debt Maturities as of 3/31/16
FCX Debt Maturities as of 3/31/16 | Pro Forma for Morenci Transaction $10 5 (US$ billions) (uss billions). Ml FCX Revolver & Term Loan $2.5 $8 4 ll FCX & FMC Sr. Notes: 12.3 FM O&G Senior Notes 25 @ Other 2.5 Total Debt 319.8 6 Consolidated Cash 03 $4.0 $44 $3.3 = $2.9 $2.8 4.55%, $2.5 $24 $0.03 $0