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Leveraged Finance Conference – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Oct 6, 2010 · 26 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. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 1
    Leveraged Finance Conference Kathleen L. Quirk Executive Vice President & Chief Financial Officer PROVEN PERFORMANCE SHINING FUTURE Phoenix, Arizona www.fcx.com October 6, 2010
  2. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 2
    Proven Performance,, Shining g Future Investment Highlights Premier Copper, Gold & Molybdenum Producer Long-Lived Reserves with Growth Options Flexible Operating Structure Geographically G hi ll Diverse Di Strong Financial…
  3. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 3
    Worlds Leading g Copper pp Producers Top 10 Copper Producers (2010e) (000 t) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX BHP Billiton Xstrata Anglo Rio Tinto Southern KGHM Polska…
  4. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 4
    Geographically g p y Diverse Major Mine Operations & Development Projects All major assets majority-controlled and operated North America1 Copper Reserves Copper/Gold/Silver Cu 27.7 billion lbs Mo 2.1 billion lbs Molybdenum…
  5. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 5
    Markets 2,000 400 1,750 350 1 500 1,500 LME Copper Price 300 0s Metric Tons s Cents Per Pou 1,250 250 1,000 200 750 150 und 500 100 000 250 50 LME & COMEX Exchange Stocks* 0 0 Jan- Jul- Jan- Jul- Jan-…
  6. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 6
    World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2010e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 0 200 400 600 800 1,000 1,200 Grasberg Complex - 1988 Escondida -…
  7. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 7
    Development e e op e t Projects ojects Update North America Morenci Concentrator Miami Mine Restart Morenci Mill Restart & Ramp-up Safford Sulphur Burner South America El Abra Sulfolix Cerro Verde Expansion Cerro Verde…
  8. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 8
    Tenke Fungurume g 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…
  9. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 9
    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…
  10. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 10
    Copper Reserves & Mineralized Material as of 12/31/09 billion lbs of copper 12/31/09 / / 226 Copper Reserves by Geographical Region Mineralized 122 North Material (b) billion America (contained copper) lbs 26% 104 at 2.00 Cu…
  11. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 11
    Current Cu e t Projects ojects Under U de Evaluation a uat o North America Tenke Fungurume Chino Restart Debottlenecking Further increases to Morenci Further oxide expansion mining rate Sulfide development Plans for Twin…
  12. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 12
    FCX Copper pp Projects j 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…
  13. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 13
    1H10 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 lb)…
  14. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 14
    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…
  15. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 15
    Near-Term Sales Profile Excludes current projects under evaluation Gold Sales (million ozs) Copper Sales (billion lbs) 2 1.8 1.5 1.4 5 1 3.9 39 4.0 4 38 3.8 0 2010e 2011e 2012e 3 ____________________ Note: Consolidated…
  16. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 16
    2010e Quarterly Q 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 0 750 1Q10 2Q10 3Q10e 4Q10e ____________________ Note:…
  17. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 17
    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…
  18. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 18
    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…
  19. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 19
    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…
  20. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 20
    Capital p Expenditures p (1) Excludes current projects under evaluation (US billions) Major Projects All Other 3.0 2.7 2.5 1.1 11 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 0.8(4) 0.8…
  21. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 21
    Balance Sheet Repaid 2.6 bn in Debt Since (US billions) YE 2008 (35% Reduction) 20 17.6 (1) Significant Liquidity 15 Strong Credit Metrics No Near-term Maturities Total Debt 10 7.4 4.8 5 0 At Time of PD Acquisition…
  22. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 22
    Capitalization p Table (US billions) June 30 30, 2010 Capitalization Amount % Cash and Cash Equivalents 3.0 -- Revolver (1) 0.0 0.0% Sr. Unsecured Notes Issued in 2007 4.1 9.1% Other Public Debt 0.5 1.1% Other Debt 02 0.2 0 5%…
  23. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 23
    FCX Debt Maturities 6/30/10 / / (US millions) 6,000 Total Debt & Cash at 6/30/10 (US billions) 5,000 Public Debt 4.6 Other Debt 0.2 Total Debt 4.8 4,000 Consolidated Cash 3.0 3,597 8.375% 3,000 Senior Notes and PD…
  24. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 24
    Recent Agreement to Invest 500 Million in McMoRan Exploration Exploration* FCX Tradition of Building Values through Exploration FCX Attracted to Opportunities to Participate in Early Stage Projects that Have Potential to be…
  25. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 25
    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:…
  26. Leveraged Finance Conference – Freeport-Mcmoran Inc. – slide 26
    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…

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