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BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Feb 23, 2015 · 33 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. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 1
    Richard C. Adkerson President & CEO February 23, 2015 www.fcx.com
  2. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 2
    FCX A Premier U.S. Based Natural Resource Company Worlds Largest Publicly Traded Copper Producer Long-lived Reserves with Large Incremental Resources High-Quality U.S. Based Oil & Gas Assets Growing Cash Flow & Production Profile…
  3. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 3
    FCXs Global Footprint Major Operations & Development Projects North America1 Reserves Cu 35.6 bn lbs Mo 2.42 bn lbs Copper Oil & Gas 635 MMBOE2 Sales Copper/Gold/Silver Cu 1.9 bn lbs Molybdenum Mo 95 mm lbs3 Grasberg (90.64%)…
  4. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 4
    Business Update Copper Business Oil & Gas Business Cerro Verde Project on Track for Continued Strong Operational Performance Completion by Year-end 2015 Substantial Resources Identified Tenke and Morenci Completed Significant Lower…
  5. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 5
    Protecting the Balance Sheet Completed 5 Bn in Asset Sales (4.3 Bn Net of Tax) Significant Reduction in Capital Budget Actions 1.5 Billion Reduction to Date 34% Reduction in O&G CAPEX 4Q14 Financings Prepaid 2015 Maturities & Higher…
  6. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 6
    Strength in Assets Long-lived Reserves Diverse Portfolio of High Quality, World Scale Copper Assets Strategic GOM Oil Position with Existing Infrastructure Valuable Resource Potential Copper (Bn lbs) Oil Equivalents (3) (MMBOE)…
  7. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 7
    World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2014e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 30 35 0 200 400 600 800 1000 1200 1400 1981 Escondida - 1981 Escondida…
  8. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 8
    Copper Market Commentary Fundamentals Remain Supportive Commodity Trading Negatively Influencing Market Sentiment China Addressing Slowing Growth Rate with Economic Stimulus U.S. Growing at Moderate Rate Supply Side Challenges…
  9. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 9
    Supply Side Challenges in Copper Persist Wood Mackenzies Current Outlook for Refined Production for 3-year Period of 2013 2015 is 2 mm Tonnes Lower Than December 2012 Outlook (mm tonnes) 2013 2014e 2015e December 2012 Forecast…
  10. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 10
    Copper Markets Long-term Fundamentals Support Positive Outlook Total Copper Consumption 40 Assuming 2.5% Global Growth +7.6 mm Over Next 10 Years, Copper 30 +5.2 mm 28% Cu in mm tonnes 23% Market Expected to Grow by +7.6 mm…
  11. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 11
    Portfolio of World Scale Mines Positive Exploration Results Big Mines Get Bigger Mines with Potential Capacity for 1 billion lbs of copper per annum* Morenci Grasberg Tenke Cerro Verde Fungurume El Abra * Grasberg capable…
  12. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 12
    Cerro Verde Mill Expansion Detailed engineering & major procurement activities complete HPGR & Secondary Flotation Crushing Plant To become worlds largest concentrating facility Construction advancing on schedule & more than 50%…
  13. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 13
    Grasberg BC & DMLZ Underground Mine Development Completed development on access to Grasberg BC Service Shaft at underground ore bodies the 2,500 meter elevation Completed 123 km of development in Grasberg BC & 90 km in DMLZ Key…
  14. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 14
    Indonesian Matters Engaged in Active Discussions with Government to Amend COW Positive Long-term Partnership Economic Engine for Development of Papua Operations Provide Significant Benefits to Indonesian Economy All Rights Under…
  15. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 15
    2014 Oil & Gas Highlights 2014 Sales* 56.8 MMBOE Continued Strong Operational Performance GOM 47% Portfolio Positioned for Long-Term California Other Growth in Deepwater GOM 25% Eagle 13% Ford 15% - Successful Drilling…
  16. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 16
    Responding to Market Conditions Significant Reduction in Capital Budget 2015 Oil Puts Indexed to Brent 2015 Reduced by 1.2 Billion (34%) Unhedged 18% 2016 Reduced by 1.7 Billion (43%) Defer Discretionary Spending 84 MBbls/d 90…
  17. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 17
    Strategic Position in Deepwater Gulf of Mexico Major Exploration/ Operating/ Development Exploitation Producing Assets Projects Opportunities Significant Current Oil Financially Attractive Strategic Acreage Production with Strong…
  18. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 18
    Sales Profile Copper Sales (billion lbs) Gold Sales (million ozs) 3 6 2 2.5 5.4 1.9 1 1.25 1.3 5.0 0 4 4.3 2014 2015e 2016e 2017e 3.9 Note: Consolidated gold sales include 123k ozs in 2014, 120k ozs in 2015e, 170k ozs in 2016e…
  19. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 19
    2015e Operating Estimates 2015e Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated Cash Unit Costs (1) Site Production & Delivery (2) 1.72 1.59 2.27 1.71 1.81 By-product Credits…
  20. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 20
    EBITDA and Cash Flow at Various Copper Prices Average EBITDA (1,300 Gold, 10 Molybdenum & 65 Oil) (US billions) 15 10 5 2016e/2017e Average 0 Cu 2.50/lb Cu 3.00/lb Cu 3.50/lb Average Operating Cash Flow (excluding…
  21. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 21
    Capital Expenditures (1) (US billions) 8 7.2 6.0 6 Oil & Gas 5.1 4.8 3.2 2.3 4 2.3 Major 2.4 Projects TOTAL 2.5 (2) 2 2.9 MINING 3.7 1.7 1.4 4.0 2.8 2.4 Other Mining 1.2 1.1 1.0 1.1 0 2014 2015e 2016e 2017e (1)…
  22. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 22
    Committed to Balance Sheet Management Strong Track Record Large Resource Base with Strong 12/31/2014 Balances ( in bns) Cash Flows and Capital Discipline Increasing Volumes & Declining CAPEX Profile 18.7 18.3 Pursuing O&G JVs…
  23. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 23
    Key Priorities Protect Balance Sheet & Liquidity Manage Operations and CAPEX to Maximize Cash Flow in Weak Market Environment Fund O&G Investments Within Cash Flows and 3rd Party Investments Complete Near-term Mining Projects…
  24. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 24
    Reference Slides
  25. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 25
    2015e Outlook Sales Outlook Unit Cost Copper: 4.3 Billion lbs. 1.53/lb(2) of Copper Gold: 1.3 Million ozs. 18/BOE Molybdenum: 95 Million lbs. Oil Equivalents(1): 55.5 MMBOE (70% Oil) Operating Cash Flows (3) Capital…
  26. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 26
    Sensitivities (US millions) 2016e/2017e Operating Change EBITDA Cash Flow Copper: +/- 0.10/lb 500 350 Molybdenum: +/- 1.00/lb 100 80 Gold: +/- 50/ounce 100 60 Oil Sales: +/- 5/bbl(1) 190 150 Oil Sales Net of Diesel…
  27. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 27
    PT-FI Mine Plan PT-FIs Share of Metal Sales, 2015e-2022e 2015e 2019e PT-FI Share Total: 5.9 billion lbs copper Copper, billion lbs Annual Average: 1.2 billion lbs Gold, million ozs 2015e 2019e PT-FI Share Total: 8.0 million ozs…
  28. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 28
    PT Freeport Indonesia Grasberg Minerals District Life-of-Mine Production Sequencing* Plan View 206mm mt Grasberg Open Pit 0.95% Cu & 1.08 g/t Au 152mm mt Grasberg & DOZ 0.56% Cu & 0.73 g/t Au Kucing Liar Grasberg Big Gossan…
  29. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 29
    Preliminary Reserves at 12/31/14 Consolidated Proven & Probable Reserves Copper Molybdenum Gold billion lbs billion lbs million ozs Reserves 12/31/13 (1) 111.2 3.26 31.3 12/31/14 Divestiture* (3.7) -- (1.0) Copper Reserves…
  30. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 30
    Deepwater Gulf of Mexico Focus Areas Development/Exploration Project Inventory Net Unrisked Louisiana Resource Potential Asset Area (Billion BOE) Green Canyon Area 1.9 Marlin/Horn Mountain Area 0.6 Dorado Marlin Vito Area 1.0…
  31. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 31
    Deepwater GOM Progress Report Positive Drilling Results 1st Delineation Well Logged 234 of net oil pay Holstein Deep 2nd Delineation Well Currently Drilling; 3rd Well Planned Increased Resource Potential to over 250 MMBOE Exploration…
  32. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 32
    Preliminary SEC Oil & Gas Proved Reserves 390 MMBOE as of 12/31/14 Excludes Positive Results from Highlander & Holstein Deep Achieved in Late 2014* By Commodity By Category By Region 6:1 Ratio PDNP 13% Oil 71% GOM California…
  33. BMO Capital Markets 24th Global Metals & Mining Conference – Freeport-Mcmoran Inc. – slide 33
    2015e Oil & Gas Operating Estimates Madden & Operating Cost: 2.15/Mcfe California Haynesville Pricing: NYMEX Operating Cost: 32/bbl Pricing: Brent Based Gulf of Mexico Operating Cost: 13/bbl Pricing: HLS/NYMEX 2015e Oil &…

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