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1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Apr 20, 2011 · 40 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. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 1
    Connecting the World 1st Quarter 2011 Earnings Conference Call www.fcx.com April 20, 2011
  2. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 2
    Connecting Connecting the World World 2010 Annual Report Highlights Global Leader in Production of Copper, Gold and Molybdenum Well Situated to Meet Growing Demand for Metals Geographically Diverse Long-Lived Reserves…
  3. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 3
    1Q11 Q Highlights g g Sales Data 1Q11 1Q10 Copper Consolidated Volumes (mm lbs) 926 960 Average Realization (per lb) 4.31 3.42 Site Production & Delivery Unit Costs (per lb) 1.61 1.35 Unit Net Cash Costs (per lb) 0.79 0.82 Gold…
  4. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 4
    Quarterly Q y Operating p g Highlights g g 1Q11 Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated Cash Unit Costs Site Production & Delivery (1) 1.75 1.30 1.84 1.51 1.61…
  5. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 5
    Strong g Markets 2,500 500 2,000 400 LME Copper Price 0s Metric Tons s Cents Per Poun C 1,500 300 1,000 200 000 nd 500 100 LME & COMEX Exchange Stocks* 0 0 Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul-…
  6. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 6
    Value a ue Creation C ea o Focus ocus INVESTMENT CASH MINERAL RESERVE IN ATTRACTIVE PRODUCTION FLOWS/ RESOURCES ADDITIONS DEVELOPMENT GROWTH RETURNS PROJECTS 7
  7. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 7
    Development Project Update North America Morenci Mill Restart & Ramp-up Mill averaged 48K t/d during 1Q11; p g up ramping p to 50K t/d / Increase Mine Rate Averaged 625K t/d in 1Q11 & reached target of 635K t/d in March…
  8. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 8
    Development Project Update Click to edit Master title style North America y Miami Mine Restart Began stripping activities in 1Q10; 1Q11 mining rate of 150K t/d Ramp up to 100MM lbs Cu/year 40MM project, p j , primarily p y…
  9. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 9
    Development Project Update Click to edit Master title style North America y Chino Restart 1Q11 Milestones Initiating restart of mining & Hiring of workforce on milling activities schedule Repair work on mine & mill 150mm in…
  10. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 10
    Development Project Update South America El Abra Sulfolix Large sulfide mineral deposit underlying current oxide pit Project extends life 10+ years 300MM 300MM lbslb Cu/yr C / aggregate t Sulfolix Stacking Commenced production…
  11. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 11
    Development Project Update Click to edit Master title style South America y Cerro Verde Expansion Cerro Verde Mill Facilities Evaluating large-scale concentrator expansion Positive exploration/reserve additions Current reserve…
  12. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 12
    Long-Term Underground Mine Development in Indonesia Significant undeveloped UG reserves Aggregate reserves of 37 billion lbs Cu & 33 million ozs Au DOZ expanded to 80K t/d Initiated mining at Big Gossan full rates of 7K t/d by…
  13. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 13
    Tenke Fungurume Mill Mill operated at 11K t/d in 1Q11, above 8K t/d design capacity Sold 60MM lbs Cu & 6MM lbs Co in 1Q11 Cu sales expected to increase to 285MM lbs in 2011 Second phase expansion to add incremental 150 mm lbs…
  14. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 14
    Climax Restart Construction is ongoing; 60 percent complete Mill erection progressing & flotation cell placement has commenced Refurbishing primary crusher Continue to work outside as weather conditions permit Mine development to…
  15. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 15
    Status of Announced opp Projects Copper oj Cu Volumes Expansions (in mm lbs/year) Year Status Morenci Mill Restart & 125 2011 complete Mine Rate Increase Miami Mine Restart 100 2012 in progress 200 2012 Chino Mine & Mill…
  16. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 16
    Near-Term Copper Projects Under Evaluation Incremental Preliminary Copper Capital* Achieve Mill Expansions (mm lbs/year) ( billions) Full Rates Cerro V C Verde d (360K) 600 3.5 3 5 2016 Morenci (115K) 150-200 0.9 2014 Tenke…
  17. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 17
    Potential Additional Projects j North America South America Sulfides/Mill Projects El Abra Mill Large Scale Morenci Sierrita Af i Africa Bagdad Ajo Future Expansion Twin Buttes of Tenke Oxides Safford/Lone Star Tenke Sulfides…
  18. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 18
    Exploration Targets Click to inedit j Master Major Mineraltitle style y Districts Safford/Lone Star/Morenci District Cerro Verde North South Exploration America America in 2011e 32% 30% Tenke Fungurume/Africa 225…
  19. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 19
    2011 0 Outlook Out oo Sales Outlook: Copper: 3.9 Billion lbs. Gold: 1.6 Million ozs. Molybdenum: 73 Million lbs. Unit Net Cash Cost(1): 1.04/lb Operating Cash Flows(2): 8.3 Billion (4.25 copper for remaining 9 months) Each…
  20. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 20
    Near-Term Near Term Sales Profile Excludes current projects under evaluation Gold Sales (million ozs) Copper Sales (billion lbs) 1.9 19 2 1.7 1.6 5 1.2 1 4.2 39 3.9 39 3.9 40 4.0 4 0 2010 2011e 2012e 2013e…
  21. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 21
    2011e Q Quarterly y Payable y Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 800 1,250 600 480 445 1,045 400 365 275 1 000 1,000 965 965 926 200 0 1Q11 2Q11e 3Q11e 4Q11e 750 ____________________ Note:…
  22. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 22
    2011 Operating p g Estimates 2011e Unit Production Costs North South (per pound of copper) America America Indonesia Africa Consolidated Cash Unit Costs (1) Site Production & Delivery (2) 1.82 1.32 2.00 1.46 1.67 By-product Credits…
  23. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 23
    EBITDA and Cash Flow at Various Copper Prices Average EBITDA* (1,200 Gold & 12 Molybdenum) 15 (US billions) 12 9 6 3 0 Cu 3.50/lb Cu 4.00/lb Cu 4.50/lb Average Operating Cash Flow (excluding Working Capital changes)*…
  24. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 24
    Sensitivities Operating Ch Change EBITDA C h Fl Cash Flow (US millions) Copper: -/+ 0.10/lb 390 270 Molybdenum: -/+ 1.00/lb 60 50 Gold: -/+ 50/ounce 70 40 Diesel(1): -/+ 10% 85 55 Purchased Power(2): -/+ 10% 45 25…
  25. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 25
    Capital Expenditures (1) Excludes current projects under evaluation (US billions) Major Projects All Other 3 0 3.0 2.5 2.5 2.1 2.0 1.2 1.4 1.5 1.2 1.0 0.7 (3) 1.3 (4) 0 5 0.5 (2) (4) 0.9 0.7 0.0 2010 2011e 2012e (1) Capital…
  26. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 26
    Balance Sheet Repaid 3.7 bn in Debt Since (US billions) YE 2008 (50% Reduction) (2) 20 17.6 (1) Significant Si ifi t Li Liquidity idit Strong Credit Metrics 15 No Near-term Maturities Investment Grade d Rated dbby Total…
  27. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 27
    Financial Policy o y Maintain Strong Balance Sheet & Liquidity Position Invest in Attractive Growth Projects Opportunistic Debt Repayment Current Common Stock Dividend Rate: 1.00/Share per Annum Supplemental Dividend of…
  28. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 28
    FCX Investment Summary Worlds Premier Publicly Traded Copper Company World Worlds s Largest Molybdenum Producer & Significant Gold Producer Long Long-lived lived Reserves, Geographically Diverse Operations Flexible e b e…
  29. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 29
    Click to edit Master title style y Reference Slides
  30. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 30
    PT-FI Mine Plan PT-FIs Share of Metal Sales, 2011e-2015e 2011e 2015e PT-FI Share Total: 6.0 billion lbs copper Copper, billion lbs Annual Average: 1.2 billion lbs Gold, million ozs 2011e 2015e PT-FI Share Total: 8.3 million ozs…
  31. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 31
    Grasberg Click to Open edit Master titlePit style y 9N 8E 9S N 32
  32. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 32
    Mining Sequence in 2011 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 2010 A 8E 1Q11 Legend:…
  33. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 33
    Mining Sequence in 2011 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 2010 A 8E 1Q11 Legend:…
  34. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 34
    Mining Sequence in 2011 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 3Q11 2010 A 8E 1Q11 Legend:…
  35. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 35
    Mining Sequence in 2011 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 3Q11 2010 A 8E 1Q11 Legend:…
  36. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 36
    Mining Sequence in 2012 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9N is the Primary Ore Pushback in 2012 9S 9N Grasberg g Plan View B End A 8E 2011 Legend: 2012 0.25 0.50 -…
  37. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 37
    Mining Sequence in 2013 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2013 9S Grasberg g Plan View B 9N A End 2012 Legend: 0.25 0.50 - 0.99…
  38. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 38
    Mining Sequence in 2014 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2014 Grasberg g Plan View 9S B A 9N End 2013 Legend: 0.25 0.50 -…
  39. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 39
    Mining Sequence in 2015 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9S is the Primary Ore Pushback in 2015 Grasberg g Plan View B End A 9S 2014 Legend: 0.25 0.50 - 0.99 0.99%…
  40. 1st Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 40
    Mining Sequence in 2016 Click to edit pp Master Copper Equivalent q title style y Cross Section A B 9S is the Primary Ore Pushback in 2016 Grasberg g Plan View B A End 2015 Legend: 9S 0.25 0.50 - 0.99 0.99%…

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