Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q1 2010 Earnings Presentation
36 slides from Freeport-mcmoran's earnings presentation, Apr 21, 2010
Slide 1: 1st Quarter 2010 Earnings Conference Call
FREEPORT-McMoRAN =i COPPER & GOLD 1st Quarter 2010 Earnings Conference Call PROVEN PERFORMANCE April 21, 2010 FCX LISTED wwew.fcx.com NYSE
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
FREEPoRT-McMoRan, COPPER & GOLD Gautionary 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,
Slide 3: Proven Performance, Shining Future
FREEPORT-McMORAN Proven Performance, Shining Future Successful Execution of Our Operating Plans Long-Lived Reserves with Growth Potential SA Geographically Diverse PROVEN PERFORMANCE. Senne CUTORE Assets Strong Financial Position Experienced Team
Slide 4: Sales Data and Financial Results
Eades tao Sales Data Consolidated Volumes (7m ibs) 960 1,020 Average Realization (per ib) $3.42 $1.72 Site Production & Delivery Unit Costs (per /b) = $1.35 $1.07 Unit Net Cash Costs (per ib) $0.81 $0.66 Consolidated Volumes (0200's ozs) 478 545 Average Realization (per oz) $1,110 $904 Consolidated
Slide 5: Quarterly Operating Highlights
= FREEPORT-MICMORAN, COPPER & GOLD Quarterly Operating Highlights 1Q10 Unit Production Costs (per pound of copper) North South America __America_ Indonesia, Consolidated“ ‘ ——_————— Cash Unit Costs Site Production & Delivery‘? $1431 $1.20 $1.54 $1.35 By-product Credits (0.26) (0.17) (1.79) (0.73) Tr
Slide 6: Markets
FREEPoRT-McMoRan, COPPER & GOLD Markets LME Copper Price 000’s Metric Tons punog .Bd s1uaD, LME & COMEX Exchange Stocks* Jan-$9 JuL99 Jan-00 JuLO0 Jan-O1 JuLG1 Jan-G2 JuLG2 Jan-03 Jul-03 Jan-O4 JulO4 Jon-05 Ju-05 Jon-06 Ju06-Jan07 JulO7 Jan-08 Ju.0@ Jan-09. Ju-09 Jan-10, “UME and! Comex, excluding S
Slide 7: Development Project Update: Morenci
FREEPORT-McMOoRaN. Development Project Update COPPER & GOLD North America Morenci Mill Restart & Ramp-up e Process sulfide ore being mined e Successfully restarted mill in March & ramping up rates — 50K mt/d by 2011 Increase Mine Rate e Initiating plans for a staged ramp-up from the current rate of
Slide 8: Development Project Update: Miami and Safford
FREEPoRT-McMoRan, COPPER & GOLD Development Project Update SS S North America Miami Mine Restart ¢ Began stripping activities in 1Q10 e¢ Ramp up to 100MM Ibs Cu/year by second half 2011 ¢ $40MM project, primarily mining equipment # Ke gee + 12/31/09 reserves of 600MM Ibs Cu Safford Sulphur Burner ¢
Slide 9: Development Project Update: South America
FREEPoRT-McMoRan, Development Project Update COPPER & GOLD South America Cerro Verde Expansion e $50MM project to increase mill rate from 108K t/d to 120K t/d e 30MM lbs Cu per year of incremental metal at low cash cost e Evaluating large scale concentrator expansion = Potential to more than double
Slide 10: Long-Term Underground Mine Development in Indonesia
FREEPoRT-McMoRan Long-Term Underground Mine SS COPPER & GOLD Development in Indonesia ¢ Significant undeveloped underground reserves = Aggregate reserves of 41 billion Ibs Cu & 35 million ozs Au ¢ DOZ expanded to 80,000 t/d ¢ Big Gossan mine — full rates of : 7,000 t/d by late 2012 Bead ¢ Grasberg B
Slide 11: Tenke Fungurume
|FREEPoRT-McMo {COPPER & GOLD, enke Fungurume ¢ Achieved design Cu production rates; start-up issues on Co circuit and SO, plant being addressed ¢ At full rates (initial phase), aggregate annual metal of 250MM Ibs Cu & over 18MM Ibs Co ¢ Sold 66MM Ibs Cu & 3MM lbs Co in 1Q10 ¢ Exploration activities
Slide 12: Climax Restart
FREEPORT-McMoRa COPPER & GOLD Climax Restart * Preparing for resumption of construction as market conditions warrant * One of the most attractive primary molybdenum development projects in the world — large scale production capacity, attractive cash costs and future growth options * Initial annual c
Slide 13: Current Projects Under Evaluation
FREEPoRT-McMoRan, COPPER & GOLD Current Projects Under Evaluation North America Tenke Fungurume e Chino Restart ¢ Debottlenecking e Further increases to Morenci ¢ Series of future expansions mining rate e Plans for Twin Buttes/ Sierrita district ° Climax e Longer range sulfide development South Amer
Slide 14: Exploration Targets in Major Mineral Districts
= FREEPORT-McMoRan COPPER & GOLD Shining Future Exploration Targets in Major Mineral Districts South America Exploration (fai ae af merica in 2010e 30% $100 million 25% Indonesia Australasia & Other Areas Note: FOX's consolidated share; e = estimate, See Cautionary Statement 14
Slide 15: 2010 Outlook
FREEPoRT-McMoRan, COPPER & GOLD 2010 Outlook >» Sales Outlook: « Copper: 3.8 Billion Ibs. ¢ Gold: 1.8 Million ozs. « Molybdenum: 62 Million Ibs. >» Unit Net Cash Cost @; « 88¢/lb Exceed $6 Billion, net of $0.3 Billion in W/C Uses « Assumes $3.50/lb Copper for remaining 9-months « Each 10¢/lb Change
Slide 16: Sales Profile 2008-2012e
FREEPoRT-McMoRaNn, COPPER & Goo Sales Profile 2008 - 2012e Copper Sales (billion lbs} 5 2 18 19 13 14 4 4 3.9 0 2008 ©=—-2009-«20l0e «Olle = 2012e 3 Ter Cooled got sales cade approsiately 198% ori 208, 255 09 2008, 07 kot in Daido 6k orn Z0lt snd 1 foe Ze ornoeening ene 3 Molybdenum Sales (million i
Slide 17: Quarterly Sales Profile 2010e
FREEPORT: McMOoRaN. CopPen & Golo Copper Sales (million ibs} 1,250 800, 675 S00, 478 400 a 1,000 270) 200 0 70) 1q10 2Q10e 3Q10e 4gi0e ‘Fier Console go ates inclce spprosimately 47 oz 4040, 25 & ox in 200s, 90 b 07 in Ibe and 65 & orn 40108 for onconveling inert. 500 Molybdenum Sales (million ibs) 2
Slide 18: 2010e Sales and Unit Production Costs by Region
FREEPoRT-McMoRan 20102 Sales.and Unit Production ~~~ COPPER & GOLD Gosts by Region 10e Sales by Region) North America South America indonesia 1,280 1,235 1,035 62 (2) on Cu Mo Cu (aa 1 Cu Au mom Ibs rim Ibs mom Ibs nm Ea mom Ibs sim 25 North South (per pound of copper} America America Indonesia Cons
Slide 19: EBITDA and Cash Flow at Various Copper Prices
[ean] REO MeMonan 7 n COPPER'® GOLD EBITDA and Gash Flow atl Various Gopper Prices Average EBITDA* ($1,000 Gold & $10 Molybdenum) $10, (Us biions) $8 $6 $4 $2 $0 Cu $2.50/Ib Cu $3.00/Ib Cu $3.50/Ib Average Operating Cash Flow (excluding Working Capital changes)* ($1,000 Gold & $10 Molybdenum) $8) (u
Slide 20: Sensitivities
= FREtPonT McMoRaN Sensitivities SS 2 Operating Change EBITDA Cash Flow (US$ milfions} Copper: -/+ $0.10/Ib $375 $260 Molybdenum: -/+ $1.00/Ib $55 $45 Gold: -/+ $50/ounce $90 $50 Diesel : -/+ 10% $45 $30 Purchased Power ): -/+ 10% $40 $25 Currencies ©: +/- 10% $120 $70 (2) $2.23/gallon base case ass
Slide 21: Capital Expenditures
Capital Expenditures @ Major Projects All Other (US$ billions) 3.0 § $2.7 $2.5 $2.0 $1.54 $1.0 $0.5 $0.0 2008 2009 2010e 2011e (4) Captal expenditure estimates will continue to be reviewed and revised subject to market conditions. (2) Includes Tenke development, Grasberg undeground development and $
Slide 22: Balance Sheet
Balance Sheet (US$ billions) Significant Liquidity $20 5 $17.6” Strong Credit Metrics $15 4 No Near-term Maturities $10 | Total Debt At Time of PD Acquisition 12/31/09 3/31/10 in March 2007 Pro Forma (1) Pro Forme yearend 2006 total debt of $1.6 bllon plus $16 bilon acqustion debt. (2) Takes into ac
Slide 23: Pro Forma Total Debt and Cash; Debt Maturities
FREEPoRT-McMoRan, COPPER & GOLD $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Pro Forma 37. (US$ millions) Proforma Total Debt & Cash FGX Debt Maturities. /10* at 3/31/10* (US$ billions) Public Debt Other Debt $3,788 Total Debt as 7 B.37S% Consolidated Cash eee Notes and PD Senior Notes $1,166 8.25%
Slide 24: Financial Policy
FREEPoRT-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 Increase Common Stock Dividend: $1.20/share per an
Slide 25: FCX Investment Summary
FREEPoRT-McMoRan, COPPER & GOLD 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 Signifi
Slide 26: Slides
Slides
Slide 27: Grasberg Open Pit
ee — — ;EEPORT-McMoRAW COPPER & GOLD Grasberg Open Pit
Slide 28: PT-FI Mine Plan
FREEPORT McMORAN Copper & GOLD PT-FI Mine Plan PT-FIl's Share of Metal Sales, 2010e-2014e 20102 - 2014e PT-FI Share Total: 5.7 billion Ibs copper Copper, bition Ibs Annual Average: 1.14 billion Ibs Gold, million ozs 20102 - 2014e PT-FI Share Total: 8.0 million ozs gold Annual Average: 1.6 million oz
Slide 29: Mining Sequence in 2010
oRT-McMoRAN =“ Mining Sequence in 2010 Copper Equivalent Cross Section Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 = 0.99% CuEq 1.00 - 1.99% Cueq |
Slide 30: Mining Sequence in 2010
oRT-McMoRAN =“ Mining Sequence in 2010 Copper Equivalent Cross Section Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 - 0.99% CuEgq | 1.00 - 1.99% CuEq
Slide 31: Mining Sequence in 2010
oRT-McMoRAN =“ Mining Sequence in 2010 Copper Equivalent Cross Section Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 = 0.99% CuEq 1.00 - 1.99% CuEq
Slide 32: Mining Sequence in 2010
| FREEPORT-MCMORAN = - “Mining Sequence in 2010 Copper Equivalent Cross Section Following a mine-out of 7S in 1010, 8E is the Primary Ore Pushback in 2010 = 0.99% CuEq 1.00 - 1.99% CuEq |
Slide 33: Mining Sequence in 2011
Mining Sequence in 2011 Copper Equivalent Cross Section 8E and 9N are the Primary Ore Pushbacks in 2011 BS) - 0.99% CuEgq | 1.00 - 1.99% CuEq * 9N is in ore north of this cross-section 33
Slide 34: = 0.99% CuEq
= 0.99% CuEq 1.00 - 1.99% Cueq |
Slide 35: Mining Sequence in 2013
"Mining Sequence in 2013 SS Copper Equivalent Cross Section 9N and 9S are the Primary Ore Pushbacks in 2013 = 0.99% CuEq 1.00 - 1.99% CuEq |
Slide 36: Mining Sequence in 2014
Mining Sequence in 2014 Copper Equivalent Cross Section nT MicMoRAN ff & GOLD 9N and 9S are the Primary Ore Pushbacks in 2014 0.99% CuEq 1.00 - 1.99% Cueq |
Freeport Mcmoran Copper & Gold — Q1 2010 Earnings Presentation on 6ix