Slide 1: FCX Conference Call 2nd Quarter 2021 Results
Click to edit Master title style FCX Conference Call 2nd Quarter 2021 Results July 22, 2021 fcx.com
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Click to editStatement Master title style 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, such as pl
Slide 3: 2Q21 Highlights
Click 2Q21 to edit Master title style Highlights Key Stats Actual Prioritizing health and safety; COVID vaccination Copper Sales (mm lbs) 929 programs Copper Realization ($/lb) $4.34 Ramp-up of Grasberg underground mines advancing Gold Sales (k ozs) 305 on schedule (1) Unit Net Cash Costs ($/lb)
Slide 4: The Copper Mark: Recognition for Responsible Production
The Copper Click to edit Mark Master title style Recognition for Responsible Production New assurance framework developed to demonstrate the copper industry’s responsible production practices and contribution to the United Nations Sustainable Development Goals Producers participating in the Copp
Slide 5: Copper: Metal of the Future, Critical to Global Decarbonization
Copper Click to –edit Metal of the Master Future title style Critical to Global Decarbonization Intensity of Use Is Increasing with Decarbonization More than 70% of the Electric vehicles use Renewable energy Copper consumption world’s copper is used up to four times more technologies use four to ass
Slide 6: Compelling Investment Case for Copper & Freeport
Compelling Click to edit Investment Master title Case style For Copper & Freeport Rising Supply Structural Deficits/ Demand Scarcity Premium Value Global Growth Permitting Responsible Producer of Scale Accelerating Geology Strong Cash Flows New Demand Drivers Longer Lead Times for Clea
Slide 7: Growing Margins & Cash Flow
Growing Click Margins to edit & title Master Cashstyle Flow Annual EBITDA Estimates (1) ($ in billions) Volume Growth 2021e v. 2020 2022e v 2021e ~$17 Copper ~20% ~15% Gold ~55% ~20% ~$12.5 Efficient Cost Structure Expanding Margins Additional Embedded Growth Options in Portfolio Laser Foc
Slide 8: Grasberg Underground Advancing on Schedule
Click to edit Grasberg Master title Underground style on Schedule Advancing 2Q21 annualized metal sales reached 78% of post ramp-up targets Expected to reach 100% by YE 2021e 2021e-2023e Annual Average as % of Targeted Average 2021e-2023e 100% 1.55 bn lbs Cu & 1.6 mm ozs Au Quarterly Production
Slide 9: Future Growth: Embedded in Existing Asset Base
Click Futureto edit Master Growth titleinstyle Embedded Existing Asset Base Provides Increased Leverage to Higher Copper Prices Lone Star El Abra Atlantic Copper Grasberg Minerals District Grasberg Kucing Liar NORTH AMERICA SOUTH AMERICA INDONESIA Bagdad Expansion El Abra Mill Project - Chile
Slide 10: Lone Star Oxide Project Continues to Expand
Lone Star Click Oxide to edit Project Master Continues title style to Expand with Long-Term Sulfide Potential Oxide Project Expands Long-Term Sulfide Potential Original Project, 2017 Oxide project advances opportunity for 75K t/d stacking rate development of potentially massive sulfide resource
Slide 11: Advancing New Leach Technologies
Advancing Click New to edit Leachtitle Master Technologies style Taking Leach to the Next Level Industry leader with long history of leach production Internal and external initiatives to advance sulfide leaching technologies and Copper in Leach Stockpiles to drive continuous recovery improvement
Slide 12: Charging Ahead: Responsibly. Reliably. Relentlessly.
“Charging Ahead” Responsibly. Reliably. Relentlessly. Global Industry Leader Block Cave Leader One of the world’s largest publicly traded Industry leading technical capabilities; copper producers; Seasoned and value- Decades of block caving experience driven global team; 30+ year reserve life with s
Slide 13: Charging Ahead As One Freeport Team
“Charging Ahead” As One Freeport TEAM 13
Slide 14: Financial Review & Outlook
Click to edit Master title style Financial Review & Outlook
Slide 15: 2Q 2021 Operations Update
Click to Operations 2Q 2021 edit MasterUpdate title style NORTH AMERICA SOUTH AMERICA INDONESIA Cu Sales: 389 mm lbs Cu Sales: 230 mm lbs Cu Sales: 310 mm lbs Au Sales: 302 k ozs Lone Star - Arizona Cerro Verde - Peru Grasberg – Indonesia ➢ Achieved design capacity of ~200 mm lbs per ➢ Mill av
Slide 16: Indonesian Smelter Update
Click to editSmelter Indonesian Master title style Update PT-FI committed in 2018 IUPK to construct 2 mm tpy in-country Preliminary Estimate of Spending on processing facility of Cu concentrate by December 2023 Greenfield Smelter and PMR ➢ Project has been delayed by COVID-19 ($ in bns) Advancin
Slide 17: Annual Sales Profile
Annual Click to Sales Profiletitle style edit Master July 2021 Estimate Copper Sales(1) (billion lbs) Gold Sales(2) (million ozs) 5 2 1.8 1.6 4.4 4.4 1.3 4 3.85 1 0.9 3.2 3 0 2020 2021e 2022e 2023e 2 Molybdenum Sales (million lbs) 100 86 1 80 80 80 75 50 0 2020 2021e 2022e 2023e 25 (1) Consolidated
Slide 18: EBITDA and Cash Flow at Various Copper Prices
EBITDA Click and Master to edit Cash Flow title at Various style Copper Prices ($ in bns except copper, gold and molybdenum prices) Sensitivities Average ’22e/’23e EBITDA l ($1,800/oz gold, $16/lb molybdenum) (US$ in mms) $20 EBITDA $15 Copper +/-$0.10/lb $435 Molybdenum +/-$1.00/lb $ 80 $10 Gold +/
Slide 19: Consolidated Capital Expenditures
Consolidated Click Capital to edit Master Expenditures title style (1) Estimates Excluding Indonesian Smelter CAPEX ($ in bns) $ Net of Scheduled Contributions $2.5 $2.2 $2.3(2) $2.0 (2) $2.0(2) $1.8 Major $1.2(3) Projects $1.2 (3) $1.4(3) Other $0.8 $0.8 $1.3 2020 2021e 2022e (1) See slide 16; smel
Slide 20: Strong Financial Performance
Strong Financial Performance Driven by Growing Volumes and Pricing Financial Policy Provides Framework for Cash Returns to Shareholders, Investments & Balance Sheet Management $ Net Debt * (US$ bns) $8.4 $3.4 2Q20 2Q21 Net Debt / Adjusted EBITDA** 3.5x 0.4x * Net debt equals consolidated debt less c
Slide 21: Financial Policy
Financial Click Policy to edit Master title style Policy aligned with strategic objectives of maintaining a strong balance sheet, increasing cash returns to shareholders and advancing opportunities for future growth Organic Balance Growth Sheet Strength Annual base dividend of $0.30/share, paid
Slide 22: World's Premier Publicly Traded Copper Producer
World’s Premier Publicly Traded Copper Producer Portfolio of High-Quality Experienced Management Team Copper / Gold Assets with Embedded Growth Options Industry Leader Difficult to Replicate with Size, Scale and Durability Strong Track Record Copper Supported by Positive and Commitment to Communitie
Slide 23: Reference Slides
Click to edit Master title style Reference Slides
Slide 24: Our COVID-19 Response
Our COVID-19 Click Response to edit Master title style Prioritizing the Health & Supporting Serving Well-Being of Our Our Communities Our Customers Workforce Active and preventive Providing monetary and As a leading supplier management, through in-kind contributions of of copper to the global the im
Slide 25: Financial Highlights
Click to edit Financial Master title style Highlights Sales Data 2Q21 1H21 Copper Consolidated Volumes (mm lbs) 929 1,754 Average Realization (per lb) $ 4.34 $ 4.25 Site Production & Delivery Costs (per lb) (1) $ 2.02 $ 1.94 (1) Unit Net Cash Costs (per lb) $ 1.48 $ 1.44 Gold Consolidated Volumes (0
Slide 26: 2Q21 Mining Operating Summary
2Q21 to Click Mining Operating edit Master title Summary style Sales From Mines for 2Q21 & 2Q20 by Region North America South America (2) Indonesia (3) 389 368 310 302 230 219 22 (1) 172 180 (1) 18 Cu Mo Au mm lbs mm lbs 000 ozs 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 North South 2Q21 Unit
Slide 27: 2021e Operational Data
Click 2021etoOperational edit MasterData title style 2021e Sales by Region North America South America Indonesia 1,465 1,335 1,050 86 (1) 1.3 (2) Cu Mo Au mm lbs mm lbs mm ozs North South 2021e Unit Net Cash Costs (3) (per lb of Cu) America America Indonesia Consolidated Site Production & Delivery,
Slide 28: 2021e Outlook
Click 2021etoOutlook edit Master title style Sales Unit Net Cash Operating Capital Outlook Cost of Copper Cash Flows (3) Expenditures Copper: 3.85 billion lbs Site prod. & delivery ~$7.5 billion @ $2.2 billion (4) ➢ 2021e: $1.91/lb (1) $4.25/lb copper for Gold: 1.3 million ozs ➢ $1.4 billi
Slide 29: 2021e Quarterly Sales
Click 2021etoQuarterly edit Master title style Sales Copper Sales (million lbs) Gold Sales (thousand ozs) 1,200 500 390 1,060 400 360 1,035 305 1,000 300 258 929 200 825 100 800 0 1Q21 2Q21 3Q21e 4Q21e Note: Consolidated gold sales include 48k ozs in 1Q21, 56k ozs 600 in 2Q21, 67k ozs in 3Q21e and 7
Slide 30: Grasberg Block Cave and DMLZ Design
Grasberg Click - World to edit Class Master title Block style Cave Design Substantial Infrastructure in Place to Support Large-Scale Production Grasberg Block Cave DMLZ Plan View Ramp-up Schedule Plan View 100 meters Ramp-up Schedule 100 meters (000’s t/d of Ore) (000’s t/d of Ore) N 126 129 130 N 7
Slide 31: Project Update: Grasberg Transition Remains on Track
Project Click to Update edit Master title style Grasberg Transition Remains on Track Drawbelling Ore Extraction (000 t/d) Deep MLZ (DMLZ) DMLZ GBC DMLZ & Grasberg Block 40 40 34 41 60 54 55 30 Forecast 27 Cave (GBC) 30 30 24 18 40 39 20 15 20 averaged 118,300 10 4 10 12 11 10 10 10 10 20 15 7 t/d in
Slide 32: PT-FI Mine Plan Metal Sales
PT-FI to Click Mine editPlan Master title style Metal Sales, 2020 – 2025e Copper 2021e – 2025e Gold 2021e – 2025e Total: 7.7 billion lbs copper Total: 8.0 million ozs gold Annual Average: 1.55 billion lbs Annual Average: 1.6 million ozs 1.8 1.7 1.7 1.6 1.6 1.6 1.6 1.5 1.33 1.3 0.8 0.84 Cu Au bn mm l
Slide 33: FCX Debt Maturities as of 6/30/21
Click to edit FCX Debt Master title Maturities as ofstyle 6/30/21 (US$ bns) $8 Total Debt & Cash at 6/30/21 FCX Revolver $ - $6.9 Senior Notes 9.1 Cerro Verde Term Loan 0.5 $6 Other 0.1 Total Debt $ 9.7 Consolidated Cash and Cash Eq. $ 6.3 Undrawn Credit Facility 3.5 Total Liquidity $ 9.8 $4 5.00%,
Slide 34: 2Q21 Copper Realization & 3Q21e Guidance
2Q21 to Click Copper Realization edit Master & 3Q21e title style Guidance 2Q21 LME Average $4.40/lb Copper Price 3-Mo. Fwd Price for Copper $4.25/lb at the End of June $4.34lb(1) FCX 2Q21 Consolidated Copper Price Realization (Generally, 50/50 weight of qtrly avg and 3-mo forward price at end of per
Slide 35: Adjusted EBITDA Reconciliation
Adjusted Click EBITDA to edit MasterReconciliation title style ($ in mm) 12 mos ended 2Q21 6/30/2021 Net income attributable to common stock $1,083 $2,838 Interest expense, net 148 649 Income tax provision 603 1,954 Depreciation, depletion and amortization 483 1,731 Metals inventory adjustments - 14
Slide 36: Click to edit Master title style
Click to edit Master title style