Skip to main content 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. Investor Presentation | Shale Experts
Loading...
Pm

2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Jul 22, 2008 · 42 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. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 1
    2nd Quarter 2008 Earnings Conference Call July 22, 2008 www.fcx.com
  2. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 2
    2Q08 Highlights Sales Data 2Q08 2Q07 Copper Consolidated Volumes (mm lbs) (1) 942 1,010 Average Realization (per lb) 3.85 3.34(2) Gold Consolidated Volumes (000s ozs) 265 913 Average Realization (per oz) 912 659 Molybdenum…
  3. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 3
    2Q08 Regional Data (per pound of copper) North South America America Indonesia Consolidated Unit Cash Costs Site Production & Delivery 1.84 1.15 1.90 1.59 Royalties(1) 0.00 0.00 0.13 0.03 Treatment Charges 0.10 0.19 0.28 0.18…
  4. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 4
    Strong Markets 2,000 400 1,750 350 1,500 300 000s Metric Tons Cents Per Pound 1,250 LME Copper Price 250 1,000 200 750 150 500 100 250 50 LME & COMEX Exchange Stocks* 0 0 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01…
  5. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 5
    2008 Outlook Sales Outlook: Copper: 4.1 Billion lbs. (1) Gold: 1.4 Million ozs. Molybdenum: 75 Million lbs. Modeled Operating Cash Flows (2): Approximately 6.0 Billion for 2008 Expect Working Capital Use in 2008 of 1.8 Billion,…
  6. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 6
    Development Project Update North America - Copper Safford Mine Development Miami Mine Restart Major new mine in Arizona Restart of the Miami mine completed 100MM lbs Cu/year by 2010 SX/EW facility continues to ramp-up to full…
  7. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 7
    Development Project Update North America - Molybdenum Climax Mine Restart 500MM brownfield project Primary crusher Open-pit operation Construction of new mill with Covered Pebble crusher restart by 2010 ore stockpile Major…
  8. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 8
    Development Project Update South America El Abra Sulfide Large sulfide mineral deposit underlying current oxide pit New leach pad & modifications to existing crushing plant; construction to begin in the second half of 2008…
  9. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 9
    Development Project Update Indonesia Grasberg Mill Complex Underground Mine Development DOZ Expansion - Operated above 50K capacity at record 66K mt/d in 2Q08 - Further expansion to 80K under way with targeted completion by 2010…
  10. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 10
    Development Project Update Democratic Republic of Congo Tenke Fungurume Mine Development Initial production target 2H09; Engineering, procurement & construction Aggregate annual production of activities continue; concrete work,…
  11. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 11
    Development Project Update Democratic Republic of Congo Stockpile & Heavy Dump Pocket Duty Shop Leach Reagent SAG Mill Solution & CCD Storage SAG Pedestals Extraction Acid Solution Extraction Cobalt Plant Precipitation…
  12. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 12
    A World of Opportunities Exploration Targets in Major Mineral Districts 80 drill rigs operating around the world Safford/Lone Star/Morenci Cerro Verde Tenke Fungurume/Africa Grasberg/Indonesia District 18 rigs 9 rigs 19 rigs 13…
  13. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 13
    Exploration Drives the Mine Plan Aggregate 2008e Exploration: 240 million North America Lone Star, South America Morenci & Others 50% 11% Africa Indonesia Tenke 20% Deep Grasberg, Fungurume Kucing Liar, & 16% & Kisanfu other…
  14. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 14
    Exploring Our World of Opportunities North America, South America and Africa* Drill Rigs Drill Meters Reserves (number) (000s meters) (billion lbs CuEq) (a) (a) 661 144(b) 80 Potential Additions 57 in Medium Term 35 64…
  15. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 15
    Greenfield Opportunities in our Brownfield Locations North America, South America and Africa Drilling adjacent to existing ore bodies Focused on adds to reserves & mineralized material Drilling Mine planning Expansion projects…
  16. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 16
    Morenci Opportunities A B SUN RIDGE Garfield pit GARFIELD Mill Ore Target Potential to add to reserves Leach Target by roughly 2/3rds in medium term Coronado pit Western Copper Significant long-term potential pit…
  17. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 17
    Bagdad Opportunities Potential Reserve Addition B Reserve Pit Potential to triple reserves in medium term Significant long-term potential N 0 2,000 4,000 A In-fill and step-out drill Scale in Feet Cross Section…
  18. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 18
    Sierrita Opportunities 2008 Drill hole Potential to double reserves in medium Current Reserve term Pit A B Potential Significant long-term Reserve N Addtion potential 4,000 ft A Cross Section (looking North) B Drill…
  19. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 19
    Cerro Verde Opportunities 2008 Drill Hole 2007 Reserve Pit Potential Reserve Addition N Potential to double Potential Mineralized Material Addition A reserves in medium Cerro Verde Pit term Santa Rosa Pit…
  20. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 20
    Tenke Opportunities Accelerating Exploration Potential to triple reserves in medium term Significant long-term potential 4 km Kjaundi Expansion studies Sefu Kwatebala Faulu Goma Mwadinkomba Tenke Mambilima Pumpi East…
  21. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 21
    Papua Opportunities Drill programs adjacent to existing ore bodies as well as in highly prospective exploration areas outside current operations Opportunities to add to reserves in Indonesia Tw Kke Tk Tk Tf Kkel Ti 50 Kke North…
  22. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 22
    Sales Profile 2007 - 2010e Gold Sales (million ozs) Copper Sales (billion lbs) 3 2.3 2.1 2.1 1.9 5 4.8 2 1.4 4.5 1 4.1 4 3.9 3.6 0 2006 2007 2008e 2009e 2010e Pro Pro Forma Forma* ____________________ 3 Note: Consolidated…
  23. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 23
    2008e Quarterly Payable Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) Grasberg Grasberg mining mining in in higher higher 1,225 grade grade section. section. 1,250 750 575 500 1,020 280 315 1,000 942 265…
  24. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 24
    2008e Sales and Unit Production Costs by Region 2008e Sales by Region North America South America Indonesia 1,425 1,500 1,175 1.3 75 (1) 0.1 Cu Mo Cu Au Cu Au mm lbs mm lbs mm lbs mm ozs mm lbs mm ozs 2008e 2007e 2008e…
  25. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 25
    EBITDA and Cash Flow at Various Copper Prices Average Annual EBITDA (900 Gold & 30 Molybdenum) 15 (US billions) 13 11 9 7 5 Cu 3.00/lb Cu 3.50/lb Cu 4.00/lb Average Annual Operating Cash Flow (900 Gold & 30 Molybdenum) 10…
  26. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 26
    Sensitivity to Commodity Prices Annual Annual Financial Financial Impact Impact Net Net Operating Operating Change Change EBITDA EBITDA Income Income Cash Cash Flow Flow (US millions) Copper: -/+ 0.20/lb 850 490 575…
  27. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 27
    Capital Expenditures Major Projects All Other (US billions) 3.0 3.0 2.5 2.5 1.2 2.0 1.8 1.2 1.5 1.3 1.0 1.0 1.8 0.8 1.3 0.5 0.8 0.5 0.0 2007 * 2008e 2009e 2010e * Includes PD expenditures beginning March 20, 2007…
  28. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 28
    July 2008 Board Action Increased Common Stock Dividend From 1.75 to 2.00/Share per Annum Increased Open Market Share Purchase Program to 30 Million Shares FCX is Committed to Maintaining a Strong Financial Position Committed to…
  29. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 29
    Average Annual Excess Cash Flow (1) ( in billions, except copper, gold and molybdenum prices) 5 Copper Sensitivities with 900 Gold/30 Molybdenum Op. Cash Flow After CAPEX & MI Distributions 4 Available for investments/ debt…
  30. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 30
    FCX Investment Summary Worlds Premier Publicly Traded Copper Company Worlds Largest Molybdenum Producer & Significant Gold Producer World Class, Long-lived, Geographically Diverse Operations Attractive Project Pipeline Supports…
  31. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 31
    Reference Slides 32
  32. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 32
    Grasberg District Ore Bodies At year-end 2007, we arrived at the start of the Grasberg BC terminal Grasberg In 2008, we have begun development of Grasberg UG Grasberg BC infrastructure Pit December 2007 5.5 km* from the Portal…
  33. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 33
    Grasberg Open Pit 9N 8N 8E 7S 9S 8S N 34
  34. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 34
    PT-FI Mine Plan PT-FIs Share of Metal Sales, 2008e-2012e Copper, billion lbs Gold, million ozs 2008e 2012e PT-FI Share 2008e 2012e PT-FI Share Total: 6.0 billion lbs Total: 7.8 million ozs Annual Average: 1.2 billion lbs Annual…
  35. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 35
    Mining Sequence in 2008 Copper Equivalent Cross Section A B B 7S is the Primary Ore Pushback in 2008 7S is the Primary Ore Pushback in 2008 8E 8E 7S 7S Grasberg Plan View End 2007 B End 1Q08 2007 A Legend: 0.25 -…
  36. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 36
    Mining Sequence in 2008 Copper Equivalent Cross Section A B B 7S is the Primary Ore Pushback in 2008 7S is the Primary Ore Pushback in 2008 8E 8E 7S 7S Grasberg Plan View End 2007 B End 2007 2Q08 A Legend: 0.25 -…
  37. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 37
    Mining Sequence in 2008 Copper Equivalent Cross Section A B B 7S is the Primary Ore Pushback in 2008 7S is the Primary Ore Pushback in 2008 8E 8E 7S 7S End Grasberg Plan View 2007 B End 2007 3Q08 A Legend: 0.25 -…
  38. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 38
    Mining Sequence in 2008 Copper Equivalent Cross Section A B B 7S is the Primary Ore Pushback in 2008 7S is the Primary Ore Pushback in 2008 8E 8E 7S Grasberg Plan View End 7S 2007 B End 2007 4Q08 A Legend: 0.25 -…
  39. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 39
    Mining Sequence in 2009 Copper Equivalent Cross Section A B B 7S8E 7S and is are the the Primary OreOre Primary Pushback in 2008 Pushbacks in 2009 8E 8E 7S 8E Grasberg Plan View End 7S 2007 7S B End End 2007 2008…
  40. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 40
    Mining Sequence in 2010 Copper Equivalent Cross Section A B B 7S is the 8E/8S Primary is the OreOre Primary Pushback in 2008 Pushback in 2010 8E 9S 9N 8E 7S Grasberg Plan View End 7S 2007 B End End 2009 8E 2007…
  41. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 41
    Mining Sequence in 2011 Copper Equivalent Cross Section A B B 8E and 7S is9N are the the Primary Primary Ore Pushbacks Ore Pushback in 2008in 2011 8E 9S 8E 7S 9N* Grasberg Plan View End End 7S 2007 B 2010 End 2007 8E…
  42. 2nd Quarter 2008 Earnings Conference – Freeport-Mcmoran Inc. – slide 42
    Mining Sequence in 2012 Copper Equivalent Cross Section A B B 9N 7S is is the the Primary Primary Ore Ore Pushback Pushback in in 2012 2008 8E 9S 8E 7S 9N* Grasberg Plan View End 7S 2007 B End 2007 End 2011 A…

From the store

Browse maps, data & reports in the Shale Experts store