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19th Annual Canada Mining Conference – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Sep 13, 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. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 1
    EXPANDING RESOURCES Kathleen L. Quirk Executive Vice President & CFO September 13, 2013 www.fcx.com
  2. 19th Annual Canada 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. 19th Annual Canada 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. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 4
    EXPANDING RESOURCES Geographic & Commodity Mix (1) 2014e EBITDA North Mining America 75% 50% South America 17% Africa Oil & Gas Indonesia 7% 25% 26% (1) Based on 2014e EBITDA of 11 bn assuming annual pricing of…
  5. 19th Annual Canada 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 Southern KGHM Rio…
  6. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 6
    EXPANDING RESOURCES Copper Market Commentary China Remains Important Demand Driver - Slower Growth but on Larger Base Continued Improvement in U.S. Demand - Automotive Continues to Show Strength - Housing Sector Recovery…
  7. 19th Annual Canada 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 1979 Escondida -…
  8. 19th Annual Canada 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. 19th Annual Canada 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. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 10
    EXPANDING RESOURCES Copper Brownfield Development Projects Tenke Fungurume Cerro Verde Morenci Phase II Expansion Mill Expansion Mill Expansion 0.9 billion* 4.4 billion 1.6 billion Completed on time & within budget Commenced…
  11. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 11
    EXPANDING RESOURCES Update on Grasberg Unusually low metal production in 2012 & 2013 compared with historical levels Low ore grades Suspension of operations in 2Q13 Sequencing/timing of access of higher grade ore in Open Pit…
  12. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 12
    EXPANDING RESOURCES History of Underground Operations at PT-FI Freeport is a Recognized Global Leader in Underground Mining and Development Initial Block Caving Operations Commenced in 1980 Decades of Successful and Safe…
  13. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 13
    EXPANDING RESOURCES Significant Risked Resource Potential (MMBOE) 3,250 Resource Potential by Region Exploration International 25% Success Model 9% Eagle Ford California 5% 11% Development 75% Success 1,565 Model…
  14. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 14
    EXPANDING RESOURCES Oil & Gas Operating Assets California Eagle Ford Deepwater Haynesville Long Established Oil Large Oil/Liquids Significant Current Significant Gas Production History Rich Resource Production with Resource (5+…
  15. 19th Annual Canada 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): 35 MMBOE (65% Oil) Unit Cost (2): 1.58/lb of Copper in 2013e 19/BOE Operating…
  16. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 16
    EXPANDING RESOURCES Production Profile Gold Sales (million ozs) Copper Sales (billion lbs) 2 1.8 1.7 5.0+ 1.1 5 4.5 1 4.1 4 0 2013e ____________________ 2014e 2015e Note: Consolidated gold sales include approximately…
  17. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 17
    EXPANDING RESOURCES Strong Margins and Cash Flow 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 4.00/lb Average…
  18. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 18
    EXPANDING RESOURCES Sensitivities (US millions) 2014e/2015e Operating Change EBITDA Cash Flow Copper: -/+ 0.10/lb 470 330 Molybdenum: -/+ 1.00/lb 80 65 Gold: -/+ 50/ounce 75 45 Oil Sales:(1) + 10/Bbl 405 340 - 10/Bbl (2)…
  19. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 19
    EXPANDING RESOURCES Capital Expenditures (1) (US billions) 8 6.5 6.7 6 5.5 Oil & Gas 2.7 2.9 1.5 (2) 4 Major Projects 2.3 (3) TOTAL 2.7 2.7 2 MINING 3.8 3.8 Other 4.0 (2) Mining 1.7 1.1 1.1 0 2013e 2014e 2015e (1)…
  20. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 20
    EXPANDING RESOURCES Committed to Balance Sheet Management Strong Track Record Reduce Debt to 12 Billion 6/30/2013 Balances Within 3 year Period ( in bns) Anticipate Continuing Current 20.5 Common Stock Dividend Rate: 1.25/Share…
  21. 19th Annual Canada 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. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 22
    EXPANDING RESOURCES EXPANDING RESOURCES Reference Slides
  23. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 23
    EXPANDING RESOURCES 2013e Quarterly Sales Gold Sales (thousand ozs) 400 400 330 Copper Sales (million lbs) 300 214 173 1,250 200 1,130 100 1,060 0 1,000 954 951 1Q13 ____________________ 2Q13 3Q13e 4Q13e Note:…
  24. 19th Annual Canada 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 1.53 2.76 1.43…
  25. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 25
    EXPANDING RESOURCES Cost Reductions/Deferrals 2013e-2014e - 1.9 billion Capital Cost Reductions/Deferrals 1.4 billion Key Reductions/Deferrals El Abra Sulfolix leach pad to 2019 South America Miami smelter expansion (timing)…
  26. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 26
    EXPANDING RESOURCES 2nd Half 2013e Oil & Gas Operating Estimates Madden & Operating Cost: 1.35/Mcfe California Haynesville Pricing: NYMEX Operating Cost: 30/Bbl Pricing: Brent Based Gulf of Mexico Shelf/ Deepwater Operating…
  27. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 27
    EXPANDING RESOURCES Oil & Natural Gas Hedging Positions Oil Indexed to Brent 2H13 2014 2015 Puts Collars Unhedged Swaps 25k Bbls/d 5k Bbls/d 75k Bbls/d 30k Bbls/d 100 floor 90 floor 90 floor 95 floor 28% 40k Bbls/d 70 limit 70…
  28. 19th Annual Canada Mining Conference – Freeport-Mcmoran Inc. – slide 28
    EXPANDING RESOURCES PT Freeport Indonesia Life-of-Mine Production Sequencing 258mm mt Grasberg Open Pit 0.90% Cu & 0.98 g/t Au 176mm mt DOZ 0.57% Cu & 0.71 g/t Au 54mm mt Big Gossan 2.26% Cu & 0.97 g/t Au 517mm mt Deep MLZ…

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