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Global Metals and Mining Conference – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Dec 11, 2013 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 1
    EXPANDING RESOURCES Global Metals & Mining Conference Kathleen L. Quirk Executive Vice President & CFO December 11, 2013 www.fcx.com
  2. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 2
    EXPANDING RESOURCES FCX A Premier U.S. Based Natural Resource Company Worlds Largest Publicly Traded Copper Producer High-Quality U.S. Based Oil & Gas Assets Strong Margins & Cash Flows Visible and Predictable Organic Growth…
  3. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 3
    EXPANDING RESOURCES FCXs Global Footprint Major Operations & Development Projects North America1 All major mining assets majority-controlled and operated Reserves Cu 38.8 bn lbs Mo 2.7 bn lbs Copper Oil & Gas 688 MMBOE2 Sales…
  4. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 4
    EXPANDING RESOURCES Geographic & Commodity Mix (1) 2014e EBITDA North Mining America 73% 51% South America 17% Africa Oil & Gas Indonesia 27% 8% 24% (1) Based on 2014e EBITDA of 10.5 bn assuming annual pricing of…
  5. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 5
    EXPANDING RESOURCES Worlds Leading Copper Producers Top 10 Copper Producers (2013e) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX Glencore BHP Billiton Rio Tinto Southern…
  6. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 6
    EXPANDING RESOURCES Copper Market Commentary China Remains Important Demand Driver - Large Consumption Base Growing at a Sustainable Rate Continued Improvement in U.S. Demand - Automotive Production and Sales Back to Pre-crisis…
  7. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 7
    EXPANDING RESOURCES World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2013e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 30 0 200 400 600 800 1000 1200 1400 1979…
  8. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 8
    EXPANDING RESOURCES Visible Organic Growth Mining Oil & Gas Targeting 5+ Billion Pounds Production Targeted to Double Annual Cu Production by 2015 Over Next 5 Years (37% Increase from 2012) Substantial Production Capacity…
  9. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 9
    EXPANDING RESOURCES Copper Reserves & Mineralized Material as of 12/31/12 billion lbs of copper 12/31/12 230 Mineralized Material (b) by Geographical Region Mineralized 113 Material (b) billion (contained copper) lbs North 117…
  10. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 10
    EXPANDING RESOURCES Brownfield Development Projects Tenke Fungurume Cerro Verde Morenci Phase II Expansion Mill Expansion Mill Expansion 0.9 billion* 4.6 billion 1.6 billion Completed on time & within budget Commenced construction…
  11. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 11
    EXPANDING RESOURCES Grasberg Update Improving productivity & performance metrics % 1H13 3Q13 change Mill rates (K t/d) 157 198 +26% Cu grades (%) 0.69 0.74 +7% Au grades (g/t) 0.53 0.65 +23% Unit net cash cost (/lb) 1.95 0.99…
  12. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 12
    EXPANDING RESOURCES Oil & Gas Operating Assets California 3Q 2013 Cash Operating Margin: Haynesville 1.1 Billion Long Established Oil Significant Gas Production History Haynesville/ Resource (5+ Tcfe) Strong Margins and 2% Other…
  13. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 13
    EXPANDING RESOURCES Deepwater Gulf Of Mexico 3Q 2013 Deepwater GOM Production: 59,600 BOE/D Holstein Marlin Horn Mountain Capacity Capacity Capacity 113,500 BOPD 60,000 BOPD 75,000 BOPD 142,300 MCFD 235,000 MCFD 72,000 MCFD…
  14. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 14
    EXPANDING RESOURCES Ultra-Deep Activities Lomond North Louisiana Lineham Creek England Davy Jones Blackbeard Area Barbosa Calico Jack Industry Leading Position in Emerging Trend Lomond North (72% WI) Exploratory Well…
  15. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 15
    EXPANDING RESOURCES 2013 Outlook Sales Outlook: Copper: 4.1 Billion lbs. Gold: 1.1 Million ozs. Molybdenum: 92 Million lbs. Oil Equivalents(1): 37.5 MMBOE (70% Oil) Unit Cost: 1.58/lb(2) of Copper in 2013e 17/BOE Operating…
  16. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 16
    EXPANDING RESOURCES Production Profile Gold Sales (million ozs) Copper Sales (billion lbs) 2 1.7 1.7 5.0+ 1.1 5 1 4.4 4.1 4 0 2013e ____________________ 2014e 2015e Note: Consolidated gold sales include approximately…
  17. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 17
    EXPANDING RESOURCES EBITDA and Cash Flow at Various Copper Prices Average EBITDA (1,300 Gold, 10 Molybdenum & 100 Oil) 24 (US billions) 18 +40% 2016e Increase 12 6 2014e/2015e Average 0 Cu 3.00/lb Cu 3.50/lb Cu…
  18. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 18
    EXPANDING RESOURCES Sensitivities (US millions) 2014e/2015e Operating Change EBITDA Cash Flow Copper: +/- 0.10/lb 465 325 Molybdenum: +/- 1.00/lb 80 65 Gold: +/- 50/ounce 75 45 Oil Sales:(1) + 10/bbl 405 340 - 10/bbl (2)…
  19. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 19
    EXPANDING RESOURCES Capital Expenditures (1) (US billions) 8 6.7 6.7 6 5.5 Oil & Gas 2.7 2.9 1.5 (2) 4 Major Projects 2.4 (3) TOTAL 2.9 2.6 2 MINING 4.0 3.8 Other 4.0 (2) Mining 1.6 1.1 1.2 0 2013e 2014e 2015e (1)…
  20. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 20
    EXPANDING RESOURCES Committed to Balance Sheet Management Strong Track Record Debt Targeted at 12 Billion 9/30/2013 Balances Within 3-year Period ( in bns) Anticipate Continuing Current 20.4 Common Stock Dividend Rate: 18.2…
  21. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 21
    EXPANDING RESOURCES 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 HS&E…
  22. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 22
    EXPANDING RESOURCES EXPANDING RESOURCES Reference Slides
  23. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 23
    EXPANDING RESOURCES 2013e Quarterly Payable Metal Sales Gold Sales (thousand ozs) 390 400 305 Copper Sales (million lbs) 300 214 173 1,250 200 1,120 100 1,041 0 1,000 954 951 1Q13 ____________________ 2Q13 3Q13 4Q13e…
  24. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 24
    EXPANDING RESOURCES 2013e Operating Estimates 2013e Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated (3) Cash Unit Costs (1) Site Production & Delivery (2) 2.00 1.56 2.70 1.45…
  25. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 25
    EXPANDING RESOURCES 2nd Half 2013e Oil & Gas Operating Estimates Madden & Operating Cost: 1.65/Mcfe California Haynesville Pricing: NYMEX Operating Cost: 30/bbl Pricing: Brent Based Gulf of Mexico Shelf/ Deepwater Operating…
  26. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 26
    EXPANDING RESOURCES Deepwater Infrastructure Provides Subsea Tieback Opportunities Texas Louisiana MARLIN HUB Breton Sound Main Main Pass S & E Add DORADO Pass West Cam PLATINUM Large Scale Infrastructure at SMI Eugene Isl.…
  27. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 27
    EXPANDING RESOURCES Oil & Natural Gas Hedging Positions Oil Hedges Indexed to Brent 4Q13 2014 2015 Collars Puts 25k Bbls/d 5k Bbls/d Unhedged Swaps 100 floor 90 floor 75k Bbls/d 30k Bbls/d 80 limit 70 limit 90 floor 95 floor…
  28. Global Metals and Mining Conference – Freeport-Mcmoran Inc. – slide 28
    EXPANDING RESOURCES PT Freeport Indonesia Grasberg Minerals District Life-of-Mine Production Sequencing* Plan View 258mm mt Grasberg Open Pit 0.90% Cu & 0.98 g/t Au 176mm mt Grasberg & DOZ 0.57% Cu & 0.71 g/t Au Kucing Liar…

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