Slide 1: Freeport-McMoRan 3Q 2014 Earnings Conference Call
FREEPORT-McMoRaAn STRENGTH IN RESOURCES #4 Quarter 2014 Earnings Conference Call October 28, 2014
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts
Slide 3: Financial Highlights
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Financial Highlights "Sales Data 014 Consolidated Volumes (mm Ibs) 1,077 1,041 Average Realization (per Ib) $3.12 $3.28 Site Production & Delivery Unit Costs (per Ib) $1.91 $1.85 Unit Net Cash Costs (per Ib) $1.34 $1.46 Consolidated Volumes (000’s ozs) 525
Slide 4: 3Q14 Highlights
[Ea] Freeront-McMoRan STRENGTH IN RESOURCES 3Q14 Highlights Focused on Execution = Solid Performance from Global Mining Units and O&G Operations - Indonesian Operations Resumed Concentrate Exports in August = Advanced Important Projects for Profitable Future Growth - Morenci Expansion — Expected to
Slide 5: Agreement to Divest Candelaria/Ojos del Salado
[Esa Freerort-McMoRan Agreement to Divest Candelaria/ Ojos del Salado = Sale of FCX’s 80% Interest to Lundin for $1.8 billion in Cash Plus Contingent Consideration STRENGTH IN RESOURCES = Contingent Consideration Up to $0.2 billion - Calculated as 5% of Net Copper Revenues when Annual Copper Price E
Slide 6: Copper Market Commentary
[Esa Freerort-McMoRan Copper Market Commentary Global Macroeconomics Contributing to Demand Uncertainty - Europe Facing Financial and Geopolitical Headwinds - China Growth Rate Slowing - Copper Consumption Remains Strong U.S. Market Continues to Grow at Moderate Rate Supply Side Challenges Remain -
Slide 7: 3Q 2014 Mining Operating Summary
[Esa Freerort-McMoRan STRENGTH IN RESOURCES 3Q 2014 Mining <~ifl Operating Summary Cash Unit Costs North South . - = (per pound of copper) America America _Indonesia__ Africa Consolidated Site Production & Delivery $1.83 $1.67 $2.42 $1.64 $1.91 By-Product Credits (0.26) (0.23) (2.44) (0.58) (0.82) T
Slide 8: Value Creation Focus
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Value Creation Focus INVESTMENT CASH MINERAL RESERVE IN ATTRACTIVE PRODUCTION FLOWS/ RESOURCES ADDITIONS DEVELOPMENT GROWTH PROJECTS RETURNS FCX Consolidated Copper Resources at 12/31/2012 Recoverable Reserves “ 111 bn Ibs Mineralized Material (contained)
Slide 9: Brownfield Development Projects
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Brownfield Development Projects .. Morenci Mill Expansion Cerro Verde Mill Expansion $1.6 billion $4.6 billion * Construction substantially complete * Detailed engineering & procurement S Commenced aperationsin may 2014 complete; construction advancing on
Slide 10: Grasberg BC & DMLZ Underground Mine Development
[Esa Freerort-McMoRan STRENGTH IN RESOURCES \ Grasberg BC & DMLZ 5 Underground Mine Development « Completed development on access to underground ore bodies « Completed 122 km of development in Grasberg BC & 89 km in DMLZ « Key development activities include work on ore flow systems & Grasberg BC sha
Slide 11: Indonesian Matters
[Esa Freerort-McMoRan Indonesian Matters = Resumed Export Shipments in August 2014 — Sales Had Been Restricted Since Mid-January = Execution of MOU with Government of Indonesia Enabled Resumption of Exports — Agreement to Pay Increased Royalties — Agreement to Pay Export Duty Pursuant to July 2014 R
Slide 12: Brownfield Development Studies
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Brownfield Development Studies i Large sulfide resource >0.4% Cu supports 260 mt/d mill Potential incremental production ~750 mm lbs Cu year Advancing studies & options for water, tailings, power Massive high grade mixed ore & sulfide resource Advancing me
Slide 13: Morenci Sulfide Potential
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Morenci Sulfide Potential Exploration Drives the Mine Plan * 100% operations re
Slide 14: Lone Star Sulfide Potential
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Lone Star Sulfide Potential Exploration Drives the Mine Plan aN Fear 2013 Resource. Pit A N Cu > 0.30% =m Oxide Chalcocite Chalcopyrite ikm * Lone Star & Dos Pobres sulfide Potential ag
Slide 15: Portfolio of World Scale Mines
[Esa Freerort-McMoRan Portfolio of World Scale Mines STRENGTH IN RESOURCES Cerro Verde ¥ * Grasberg capable of producing over 1 bn Ibs/annum, Morenci (100%) & Cerro Verde in development to produce 1 bn Ibs/annum and El Abra & Tenke have potential to produce 1 bn Ibs/annum
Slide 16: 3Q 2014 Oil & Gas Operating Summary
[Esa Freerort-McMoRan 3Q 2014 Oil & Gas Operating Summary Continued Steady Production Performance nd. from California & Deepwater GOM $150 $125 Sales: 12.5 MMBOE $100 Slightly Above July Estimate $75 Over 90% of O&G Revenues from Oil/NGLs $50 * Oil Realization: $95/bbl (Excluding $25 Derivatives) So
Slide 17: Reserves & Resource Potential
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Reserves & Resource Potential fear-end 2013 Proved Reserves & Net Unrisked Resource Potential) 44 3.3 5A 0.2 N/A 0.3 im N/A Reserves Resource Reserves Resource Reserves Resource Reserves Resource Deepwater GOM Inboard Lower Tertiary | Haynesville/Other Int
Slide 18: Portfolio Optimization
[Esa Freerort-McMoRan Portfolio Optimization Sold Eagle Ford Shale Interests for $3.1 bn in June 2014 Reinvested $1.4 bn in Deepwater GOM Interests, Including: - Lucius Oil Development (5.1% WI) - Heidelberg Oil Development (12.5% WI) - Vito Oil Discovery (18.67% WI) Complementary Exploration Leases
Slide 19: Strategic Position in Deepwater Gulf of Mexico
[Esa Freerort-McMoRan Strategic Position in Deepwater Gulf of Mexico Major Development Projects Operating/ Producing Assets = Significant Current Oil Production with Strong Cash Margins ~ Marlin - Horn Mountain ~ Holstein = Substantial Infrastructure with Excess Capacity to Support Growth = Financia
Slide 20: Deepwater Gulf of Mexico Focus Areas
FREEPORT-McMoRAN STRENGTH IN RESOURCES Deepwater Gulf of Mexico Focus Areas a Development/Exploration Project Inventory. Wet Unrisked, Resource Potential Asset Ares (@ilion, BOE) Green \Canyon Area 6) Marlin/ Horn Mountain Area 06 Vito Area 10 Keathiley Canyon Area 12 Deepwater GOM Total 44 = Facili
Slide 21: Holstein Deep Drilling Results
[Esa Freerort-McMoRan Holstein Deep Drilling Results = Subsea Tie-back Opportunity to the Holstein facility (4 Miles West) = 2 Successful Wells Drilled on Structure in 2006/2009 (~500’ Net Oil Pay) = Delineation Drilling Commenced in 3Q14 = Interim Logging in Oct 2014 Indicates Good Correlation to D
Slide 22: Lucius & Heidelberg — Deepwater GOM Development Projects
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Lucius & Heidelberg — Deepwater GOM Development Projects = Commissioning Work is in Progress First Production Expected in 4Q 2014 300+ MMBOE Gross Resource Potential Processing Capacity — 80,000 BOPD — 450,000 MCFD FM O&G 25.1% WI Water Depth: 7,200’ = Hul
Slide 23: Inboard Lower Tertiary/Cretaceous Activities
FREeporT-McMoRaNn STRENGTH IN RESOURCES Inboard Lower Tertiary/ Cretaceous Activities LOUISIANA Ke Current Activities Highlander (72% WI) — Completing Tuscaloosa Sands; Anticipate Flow Testing in 4Q14 Davy Jones #2 (75% WI) — Conducting Flow Test of Wilcox Sands Blackbeard West #2 (69.4% WI) — Flowe
Slide 24: 2014e Outlook
[Esa Freerort-McMoRan STRENGTH IN RESOURCES 2014e Outlook Sales Outlook Copper 3.9 Billion Ibs. = $1.52/Ib@ of Copper Gold: 1.2 Mi Molybdenum: 95 ion ozs. = $21/BOE ion Ibs. Oil Equivalents”: 56.2 MMBOE (~70% Oil) Operating Cash Flows Capital Expenditures $5.8 Each 10¢/Ib Change in Copper in 4Q14 =
Slide 25: Sales Profile
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Sales Profile Copper Sales (billion Ibs)” é4 2013 2014e 2015e 2016e Note: Consolidated copper sales inclide 795 mm ibs in 2013, 715 mmibs in 2014e, 740 mmibbs in 2015e and 1, 060mm ibs in 2016e for noncontraling interest; exchides purchased copper. (1) Exc
Slide 26: 2014e Quarterly Sales
[Esa Freerort-McMoRan STRENGTH IN RESOURCES 2014e Quarterly Sales Copper Sales (million lbs) 1,250 5 1,000 750 500 250 4Q14e Note: Consolidated copper sales include approximately 167mm lbs in 1014, 188mm ls in 2014, 186mm bs in 30i4and 174mm Bsin 40142 for roncontroling interest; ‘excludes purchased
Slide 27: 2014e Operating Estimates
STRENGTH IN RESOURCES = [Esa Freerort-McMoRan 2014e Operating Estimates 2014e Unit Production Costs North South America America _ Indonesia Africa Consolidated (per pound of copper) Cash Unit Costs Site Production & Delivery 2 $1.85 $1.64 $2.72 $1.55 $1.91 By-product Credits (0.24) (0.22) (2.07) (0.
Slide 28: EBITDA and Cash Flow at Various Copper Prices
[Esa Freerort-McMoRan STRENGTH IN RESOURCES EBITDA and Cash Flow at Various Copper Prices $20 = (Ussbilions) $15 $10 $5 2015e/2016e Mae Se 7 e ay $0 | Cu $3.00/Ib Cu $3.50/Ib Cu $4.00/Ib Average Operating Cash Flow (excluding Working Capital changes) ($1,200 Gold, $10 Molybdenum & $100 Oil) $15) (Us
Slide 29: Capital Expenditures
[Esa Freerort-McMoRan Capital Expenditures {USS billions) $8 $7.5 $7.5 $6 $4 $25 Other Mining 1.1 2014e 2015e 2016e $0 (1) Gapital expenditure estmates inclide projects in progress. Project spending wil continue to be reviewed and revised subject to market conditions. (2) Primarily inchides Cerro Ve
Slide 30: Committed to Balance Sheet Management
[Esa Freerort-McMoRan STRENGTH IN RESOURCES Committed to Balance Sheet Management Strong Track Record = Large Resource Base with Strong Cash Flows and Capital Discipline 9/30/2014 Balances = 2014 Completed / Announced Asset Sales in bns) — ~$5 bn in Gross Proceeds ($4.3 bn after net of tax and adjus
Slide 31: Summary
[Esa Freerort-McMoRan Summary ‘ A Strong & Focused Organization Maximize Total Shareholder Returns Strong Management of the Base Operational Excellence Achieve Production Targets Effective Cost and Capital Management Manage HSE and Other Inherent Risks Return Driven Growth Prioritize Highest Value O
Slide 32: Reference Slides
FREEPORT-McMoRaAn STRENGTH IN RESOURCES Reference Slides
Slide 33: Quarterly Oil & Gas Operating Summary
[Ea] Freeront-McMoRan STRENGTH IN RESOURCES Quarterly Oil & Gas Operating Summary 3Q 2014 Oil & Gas Margins by Region Haynesville/ Operating Margin Madden/ siti lila California Other GOM Consolidated Realized Revenue per BOE $86.03 $28.92 $80.36 $69.08 Cash Production Costs per BOE 37.96 9.41 15.39
Slide 34: 2H 2014e Oil & Gas Operating Estimates
STRENGTH IN RESOURCES 2H 2014e Oil & Gas ill Operating Estimates [Esa Freerort-McMoRan Operating Cost: $1.85/Mcfe California Pricing: NYMEX Operating Cost: $36/bbl Pricing: Brent Based Gulf of Mexico Operating Cost: $18/bbl Pricing: HLS/NYMEX. 2H 2014e Oil & Gas Sales by Region California Haynesvill
Slide 35: Oil & Natural Gas Hedging Positions
FREEPORT-McMoRAN STRENGTH IN RESOURCES Oil & Natural Gas Hedging Positions I Oil Hedges Indexed to Brent 4Q 2014 - 100% Hedged 2015 75 MBbis/d 30 MBbis/d $90 floor $95 floor $70limit § —_ $75 limit $5,74 ADP $6.09 ADP) 3 bold 84 MBbIs/d Point, eee $7.11 ADP $6.89 ADP. 83 MBblIs/d* 107 MBbls/d* Natur
Slide 36: PT-FI Mine Plan
FREeporT-McMoRaNn STRENGTH IN RESOURCES PT-FI Mine Plan PT-FI’s Share of Metal Sales, 2014e-2021e 2014e — 2018e PT-FI Share Total: 5.4 billion Ibs copper Bl copper, billion Ibs Annual Average: 1.1 billion Ibs EE copper, Gold, million ozs 2014e — 2018e PT-FI Share Total: 8.0 million ozs gold Annual A
Slide 37: PT Freeport Indonesia Grasberg Minerals District
STRENGTH IN RESOURCES [Esa Freerort-McMoRan PT Freeport Indonesia Grasberg Minerals District Life-of-Mine Production Sequencing* y 4 FOE KUCIIGLILS 7 75 Cae HOTTA COW Term, including extensions 2014 2016 2018 2020 2022 2024 2026 2028 203 2032 2034 203% 2038 2040 2042 Big Gossan Spur ya N Portals (at
Slide 38: Sensitivities (US$ millions)
STRENGTH IN RESOURCES [Esa Freerort-McMoRan Sensitivities (US$ millions) 2015e/2016e Operating EBITDA Cash Flow Copper: +/- $0.10/Ib $480 $335 Molybdenum: +/- $1.00/Ib $90 $70 Gold: +/- $50/ounce $90 $50 Oil Sales: +/- $5/bbI@ $225 $180 Oil Sales Net of Diesel Costs:“7 +/- $5/bbl $180 $145 Natural G