Richard C. Adkerson President & CEO February 29, 2016
Premier Portfolio of Long-Lived, Geographically Diverse Global Mining Assets North America South America Indonesia Africa Replace Photo Morenci Cerro Verde Grasberg Tenke Fungurume Largest Copper Worlds Largest One of Largest High…
Copper Market Commentary Anticipated Large Surpluses have Not Materialized Market Generally Balanced Price Related Closures Identified: 795kt/a (annualized) Actions at High Cost Mines have Resulted in Industry Curtailment of…
Capital Expenditure Reductions (US billions) January 2016 CAPEX Est. (Including Idle Rig Costs) vs. July 2015 Est. 6.35 - 2016e down 29% - 2017e down 47% Oil & Gas 2016e Mining CAPEX Includes: - 0.5 Bn in Sustaining 3.0 - 0.4…
Enhanced Unit Cost Position Consolidated Site Production & Delivery Significant Mining Unit Cost Reductions per pound of copper Reflects Curtailment of 350mm lbs & 25% 1.78 Decline Revised Operating Plans Unit Net Cash Costs…
Adjusted Mine Plans Enhance Free Cash Flow Generation at Low Prices All FCX Copper Production Cash Production Adjustments Flow Positive After Sustaining 350 mm lbs (9% of 2015 Sales)* CAPEX Below 2.00/lb - El Abra 50% Reduction…
2016e Cost Curve of FCX Mines Unit Net Cash Costs (after by-product credits) per pound of copper Before Capital Expenditures After Capital Expenditures 1.49 1.50 1.54 1.55 1.49* 1.32 1.32 1.10 Indonesia South America North…
Cerro Verde Project Execution Completed Construction of Worlds Largest Concentrating Facility Strong Performance on Capital Cost Management and Startup Cerro Verde Mill Rate Performance 000s t/d milled 338* 309 301 222…
Positioned for Free Cash Flow from Mining Business ( in billions) 2015 2016e EBITDA 2016e CAPEX 7.0 5.6 4.2 3.3 3.3 Major Mining 1.9 Projects 2.4 1.4 Other Mining 0.9 0.5 EBITDA CAPEX 2.00 2.25 2.50 CAPEX Copper Copper…
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 Ownership Current Post-closing FCX 85% 72% Sumitomo* 15%…
Significant Copper Resources & Potential billion lbs of copper Future Resource Development Opportunities Indonesia America 99 America Reserves* South Africa North El Abra Major Sulfide Deposit North America Sulfides…
Tenke Fungurume Resource Potential Continues to Grow billion lbs of copper & cobalt Cu 7 Results Based on 915 km Reserves* of Exploration Drilling -- 5,680 Holes Co 0.9 Mineralized Material** Cu Res. 14 Reserves & Mineralized…
Dipeta Syncline Potential % CuEq 2% 3% Kwatebala 4% 5% 6% Current Dipeta Syncline Potential Model 500+ mm t Outline 2.6% Cu & 0.2% Co Mwadinkomba High High Potential Potential Area Area Mambilima 1 km 16
Oil & Gas Proved & Probable Reserves 381 MMBOE as of 12/31/15 By Commodity By Category By Region 6:1 Ratio Oil Developed GOM 81% Undeveloped California 53% 64% 47% 31% Gas 4% 5% NGLs 15% Haynesville/ Other NOTE: The…
Sales Profile Copper Sales (billion lbs) Gold Sales (million ozs) 3 6 2 2.6 1.8 1 1.25 5.1 0 4.7 2015 2016e 2017e Note: Consolidated gold sales include 115k ozs in 2015, 170k ozs in 2016e 4 4.1 and 240k ozs in 2017e for…
EBITDA and Cash Flow at Various Copper Prices Average EBITDA (1,100 Gold, 6 Molybdenum & 37 Oil) 9 (US billions) 6 3 2016e/2017e Average 0 Cu 2.00/lb Cu 2.25/lb Cu 2.50/lb Average Operating Cash Flow (excluding Working…
Committed to Balance Sheet Management Strong Track Record (US billions) Manageable Near-Term Debt Maturity Schedule FCX Debt Structure as of 12/31/15 2 (US billions) 1.6 Revolver - Cerro Verde Bank Term Loans 3.0 Non-Recourse…
Recent Bank Amendment Revolver & Term Loan Provides 2016 Covenant Flexibility in Volatile Market Environment - Leverage Covenant Adjusted to 8x in 1Q 3Q 2016 and 6x in 4Q 2016 - Year-end 2015 Actual Leverage: 4.2x Facility…
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