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2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Jul 21, 2010 · 36 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 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 1
    2nd Quarter 2010 Earnings Conference Call PROVEN PERFORMANCE SHINING FUTURE July 21, 2010 www.fcx.com
  2. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 2
    2Q10 Q Highlights g g Sales Data 2Q2010 1H2010 Copper Consolidated Volumes (mm ( lb lbs)) 914 1,874 1 874 Average Realization (per lb) 3.06 3.13 Site Production & Delivery Unit Costs (per lb) 1.41 1.38 Unit Net Cash Costs (per…
  3. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 3
    Quarterly Qua e y Operating Ope a g Highlights g g s 2Q10 Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated Cash Unit Costs Site Production & Delivery(1) 1.46 1.22 1.62 1.27 1.41…
  4. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 4
    Markets 2,000 400 1,750 350 1 500 1,500 300 0s Metric Tons s LME Copper Price Cents Per Pou 1,250 250 1,000 200 750 150 und 500 100 000 250 50 0 LME & COMEX Exchange Stocks* 0 Jan- Jul- Jan- Jul-…
  5. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 5
    Development Project Update North America Morenci Mill Restart & Ramp-up Mill averaged 28K t/d during second quarter & ramping up rates 50K t/d by 2011 Increase Mine Rate Ramping up from the current rate of 450K 450K to 635K t/d…
  6. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 6
    Development Project Update North America Miami Mine Restart Began stripping activities in 1Q10 Ramp up to 100MM lbs Cu/year by second half 2011 40MM project, p j , primarily p y mining g equipment 12/31/09 reserves of 600MM…
  7. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 7
    Development Project Update South America Cerro Verde Expansion Completing 50MM project to increase mill rate from 108K t/d to 120K t/d 30MM lbs Cu per year of incremental metal at low cash cost Evaluating large-scale concentrator…
  8. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 8
    Long-Term Underground Mine Development in Indonesia Significant undeveloped underground reserves Aggregate A t reserves off 41 billion billi lbs lb Cu C & 35 million illi ozs Au A DOZ expanded to 80K t/d Big Gossan mine full…
  9. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 9
    Tenke Fungurume Sold 55MM lbs Cu & 4MM lbs Co in 2Q10 At full rates (initial phase), aggregate annual metal of 250MM lbs Cu & over 18MM lbs Co Addressing issues in SO2 plant & Co circuit Mill performing above 8K t/d design…
  10. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 10
    Climax Restart Assessing timing of start-up Advancing Ad i certain t i construction t ti activities ti iti tot provide id flexibility One of the most attractive primary molybdenum development projects in the world large-scale…
  11. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 11
    Copper Reserves & Mineralized Material as of 12/31/09 billion lbs of copper 12/31/09 / / Copper Reserves 226 by Geographical Region Mineralized 122 North Material (b) billion America (contained copper) lbs 26% 104 at 2.00 Cu…
  12. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 12
    Current Projects Under Evaluation North America Tenke Fungurume Chino Restart Debottlenecking Further increases to Morenci Further oxide expansion mining rate Sulfide development Plans for Twin Buttes/ Sierrita district Climax…
  13. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 13
    FCX Copper Projects billion lbs copper annually Replacement New Copper Projects Sources El Abra Sulfolix SA Potential 0.3 Projects 0.75 Tenke 0.25 Grasberg Expansions Underground g 0.5 03 0.3 NA Potential 1.1 NA Restarts…
  14. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 14
    Shining Future Exploration Targets in Major Mineral Districts Safford/Lone Star/Morenci District South o Cerro Verde America North 18% Exploration America Tenke Fungurume/Africa in 2010e 35% Af i Africa 120 million…
  15. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 15
    2010 Outlook Sales Outlook: Copper: 3.8 Billion lbs. Gold: 1.8 Million ozs. Molybdenum: 63 Million lbs. Unit Net Cash Cost (1): 86/lb Operating Cash Flows (2): Exceed 5 Billion Assumes 3.00/lb Copper for remaining 6 months…
  16. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 16
    Grasberg Pit Mine Plan Changes g to Pushback 8E Revised mine plans incorporate precautionary remedial activities & geotechnical considerations affecting a relatively high-grade section of the Grasberg open pit previously scheduled to…
  17. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 17
    Near-Term Sales Profile Excludes current projects under evaluation Gold Sales (million ozs) Copper Sales (billion lbs) 1.8 2 1.5 1.4 5 1 39 3.9 40 4.0 4 3.8 0 2010e 2011e 2012e 3 ____________________ Note: Consolidated…
  18. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 18
    2010e Q Quarterly y Payable y Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 800 1,250 655 600 478 410 400 298 960 970 955 1,000 914 200 0 1Q10 2Q10 3Q10e 4Q10e 750 ____________________ Note:…
  19. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 19
    2010e Sales and Unit Production Costs by Region 2010e Sales by Region North America South America Indonesia Africa 1,305 1,175 1.7 1,070 63(1) 250 20 0.1 Cu Co Mo Au mm lbs mm lbs Cu Cu mm ozs Cu Au mm lbs mm lbs mm lbs mm…
  20. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 20
    EBITDA and Cash Flow at Various Copper Prices Average EBITDA* (1,000 Gold & 10 Molybdenum) 10 (US billions) 8 6 4 2 0 Cu 2.50/lb Cu 3.00/lb Cu 3.50/lb Average Operating Cash Flow (excluding Working Capital changes)* (1,000…
  21. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 21
    Sensitivities Operating Ch Change EBITDA C h Fl Cash Flow (US millions) Copper: -/+ 0.10/lb 375 260 Molybdenum: -/+ 1.00/lb 55 45 Gold: -/+ 50/ounce 70 40 Diesel(1): -/+ 10% 45 30 Purchased Power(2): -/+ 10% 40 25…
  22. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 22
    Capital p Expenditures p (1) Excludes current projects under evaluation (US billions) Major Projects All Other 3 0 3.0 2.7 2.5 11 1.1 2.0 1.7 1.7 1.6 1.5 06 0.6 0.9 0.9 1.0 (2) 1.6 (3) 0 5 0.5 10 1.0 (4) (5) 0.8…
  23. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 23
    Balance Sheet (US billions) Significant Liquidity (1) Strong Credit Metrics No Near-term Maturities Total Debt At Time of PD Acquisition 12/31/08 6/30/10 in March 2007 Consolidated Cash 3.4 3 4 0.9 0 9 3.0 3 0 Net Debt…
  24. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 24
    Financial Policy o y Maintain Strong Balance Sheet & Liquidity Position Aggressive Cost Management Invest in Attractive Growth Projects as Economic Conditions Warrant Opportunistic Debt Repayment Common Stock Dividend:…
  25. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 25
    FCX Investment Summary y World Worlds s Premier Publicly Traded Copper Company World Worlds s Largest Molybdenum Producer & Significant Gold Producer Long Long-lived lived Reserves, Geographically Diverse Operations…
  26. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 26
    Reference Slides 27
  27. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 27
    Grasberg Open Pit 9N 8E 9S N 28
  28. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 28
    PT-FI Mine Plan PT-FIs PT FI s Share of Metal Sales, 2010e 2010e-2014e 2014e 2010e 2014e PT-FI Share Copper, billion lbs Total: 5.6 billion lbs copper Annual Average: 1.12 billion lbs G ld million Gold, illi ozs 2010e 2014e…
  29. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 29
    Mining Sequence in 2010 Copper pp Equivalent q Cross Section A B 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 A Legend: 0.25 0.50 - 0.99 1.00 0.99% 1.00 - 1.99 1.99% CuEq % Eqq Cu…
  30. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 30
    Mining Sequence in 2010 Copper pp Equivalent q Cross Section A B 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 2Q10 A Legend: 0.25 0.50 - 0.99 1.00 0.99% 1.00 - 1.99 1.99% CuEq % Eqq…
  31. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 31
    Mining Sequence in 2010 Copper pp Equivalent q Cross Section A B 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 2Q10 A 3Q10 Legend: 0.25 0.50 - 0.99 1.00 0.99% 1.00 - 1.99 1.99% CuEq %…
  32. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 32
    Mining Sequence in 2010 Copper pp Equivalent q Cross Section A B 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 2Q10 A 3Q10 Legend: 0.25 0.50 - 0.99 1.00 0.99% CuEq % Eqq Cu 1Q10 4Q10…
  33. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 33
    Mining Sequence in 2011 Copper pp Equivalent q Cross Section A B 8E and 9N are the Primary Ore Pushbacks in 2011 9S 9N* Grasberg Plan View B End 2010 8E A Legend: 0.25 0.50 - 0.99 0.99% CuEq % Eqq Cu 1.00 1.00…
  34. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 34
    Mining Sequence in 2012 Copper pp Equivalent q Cross Section A B 9N is the Primary Ore Pushback in 2012 9S 9N Grasberg Plan View B End 2011 A 8E Legend: 0.25 0.50 - 0.99 0.99% CuEq % Eqq Cu 1.00 1.00 - 1.99…
  35. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 35
    Mining Sequence in 2013 Copper pp Equivalent q Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2013 9S Grasberg Plan View B 9N End 2012 A Legend: 2013 0.25 0.50 - 0.99 0.99% CuEq % Eqq Cu 1.00 1.00…
  36. 2nd Quarter 2010 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 36
    Mining Sequence in 2014 Copper pp Equivalent q Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2014 9S Grasberg Plan View B End 2013 A 9N Legend: 0.25 0.50 - 0.99 0.99% CuEq % Eqq Cu 1.00 1.00 -…

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