Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — Freeport Mcmoran Copper & Gold — Q2 2003 Earnings Presentation
11 slides from Freeport-mcmoran's earnings presentation, Jul 18, 2003
Slide 1: Second Quarter 2003 Earnings Conference Call
2-4 Quarter 2003 Earnings Conference Call James R. Moffett Ghairman of the Board and Ghief Executive Officer Richard C. Adkerson President and Chief Financial Officer July 17, 2003
Slide 2: Freeport-McMoRan Copper & Gold Inc.
Freeport-McMoRan Copper & Gold inc.
Slide 3: Second Quarter 2003 Highlights
Pe | Second Quarter 2003 Highlights | Multiple Operating Records Established Record Quarterly Gold Production of 858,400 Ounces Record-Low Net Unit Cash Production Costs of a Net Credit of (16¢)/Ib. vs 18¢/Ib. in 2Q02 Earnings of $57.4 Million (37¢/Share) vs. $5.6 Million (4¢/Share for 2902) Strong
Slide 4: Financial Highlights
LW - : t | Financial High chi | rm in milions, except pricing, per share and cash cost amouts) Average Pricing Revenues Operating Income Net Income Earnings Per Share Average Unit Net Cash Production Cost Operating Cash Flow Net Debt Reduction 2nd Quarter 2002 75¢/$309 2003 75¢/$348 $609 $241 $57 $0
Slide 5: Unit Production Costs
pe’ = 22s Unit Production Costs (per poundof copper) 1 Qtr. 2nd Qtr, cash UO 2002 2003 2003 2003e* Site Production & Delivery 26¢ 40¢: 40¢ 42¢: Royalties 2 2 4 2 Treatment Charges 18 18 17 17 Gold/Silver Credits (48), (53), (76). (65) Net Cash Unit Costs Bt Ls Ge)t (ese DDA Rate 14 i5y: ibe: iby: *
Slide 6: Unit net cash cost sensitivity to gold price
(Average for the Year Assu! (¢ per payable pound) O¢ $275 $300 $325 $350 $375: $400, Estimates based on sales of 2003 sales volumes of 14 billion powsyds BIpper aid LOMO OUTER TOE |
Slide 7: Quarterly Sales Volumes
Quarterly Sales Volumes PT-FI’s Share 412 Billion 4,4 Billion ZZ Mion Ze idiliicg 7
Slide 8: FCX Operating Cash Flows
——— ——— | FCX Operating Cash Flows ($n milions) S800 Average Annual Operating Cash Flows in Excess of $525 Million $600 $400 $200 $0 1998 1999 2000 2001) 2002; POGBEt Per lbofCu/ 73¢/ 75t/ 8207) Bory) Wits) Wavy) Per ozofau $291 $277 $276 $269 $a18 350) * assumes pricing of 156/1b Cu and $350/07 Au
Slide 9: FCX Liquidity Position
FCX Liquidity Position ($ in iltions} 1: Half 2003 2003e"” Unrestricted Cash, at Beginning of Period $ 8 S 8 Cash From Operating Less Investing Activities 242 490 Senior Note Transactions 1,046 1,046 Debt Maturities & Prepayments 2 Preferred Dividends Common Dividends Other Items Unrestricted Cash,
Slide 10: Strong Cash Flow Generation
pen Fe | Strong Cash Flow Genenten | $800 $600 $400 $200 $0 (si in. > milions} Copper Sensitivities Gold Sensitivities with $300 Gold with 75¢ Copper Cash Available sewi Expenditure Rel $0.75 $0.85 $1,05 $200, $e27, E400) Z $300 Vou NOTE: Average annual operating cash Homs and capital EXpencitures f
Slide 11: Implied FCX Share Value ($/share)
Implied FCX Share Value ($/share) $50 $40 Current $30 Stock =X $97. $20 $10 I Copper @ 10¢/Ib $25 $50 $75 Gold Reserves Value (6/7) $100 of Homestake 2) S125; * Enterprise Value Jess sppiied vale OF SIND ITY siterests, Get Re preferred stocks @ 12/41/02; assiiies COnvETsOT Of LOnV Ere. notes into eq
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