Harvard Business Club Richard C. Adkerson Chief Executive Officer Phoenix, Arizona January 17, 2008 1
Ertsberg In 1936, high in the mountains of the island of New Guinea, a young Dutch geologist, Jean Jacques Dozy, made a remarkable discovery: Ertsberg, a glistening black outcropping of high-grade copper ore. Ertsberg, the largest…
Grasberg Freeport geologists led an expedition to Ertsberg in 1960. Rights to the mine were negotiated. After pioneering a near-impossible road through swamps and mountains, Freeport first produced copper from Ertsberg in 1972. About 15…
Grasberg 4 4
Exploration Drives the Mine Plan GRS-4 was really the hole that turned the tide of the project. Grasberg warranted full support of our resources. Hole GRS-4 intercepted 591 meters of ore at 1.7% copper & 1.8 g/t gold. May May…
Development & Expansion We We quickly quickly developed developed aa pit pit plan. plan. We We also also began began studying studying the the possibility possibility for for further further expansions, expansions, soso…
Grasberg The Grasberg is expected to yield over 2.2 billion metric tons of ore from the pit and block cave when we complete mining the reserve and exploration continues. Grasberg is an incredible mineral find, a Cu-Au porphyry so…
Grasberg Reserves Plan View Grasberg & Complex contains Kucing Liar N 1.04%Final Pit the worlds largest Ertsberg East Skarn System copper & gold Grasberg Pit 0.90 g/t reserves Big Gossan Dom Cu Au in the world. Common…
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26 Billion Acquisition of Phelps Dodge Completed in March 2007 Created the Worlds Largest Publicly Traded Copper Company Completed 17.5 Billion in Financing for Acquisition Largest Transaction in the History of the Metals &…
Significant Increase in Scale Mines Operated FCX Cash Flow Comparison ( ( in in billions) billions) 12 12 6.2 6.2 1.9 1.9 11 FCX Pre-merger FCX Post-merger* 2006 2006 Actual Actual 2007 2007 Estimate* Estimate*…
Worlds Leading Public Copper Company Top Top 10 10 Copper Copper Producers Producers (2007E) (2007E) (000 (000 t) t) 2,000 2,000 Pro Pro forma forma FCX FCX is is poised poised to to take take advantage advantage of of…
Geographically Diverse, Long-Lived Asset Base Major Major Mine Mine Operations Operations & & Development Development Projects Projects All All major major assets assets majority-controlled majority-controlled and and…
Morenci North Americas largest single producer of copper 14 14 14
Cerro Verde Recently Completed Major Sulfide Mill Expansion 15 15
Tenke Fungurume 16 Believed to be Largest, Undeveloped High Grade Cu/Co Project in the World 16
Molybdenum FCX is the Worlds Largest Molybdenum Producer, including primary production from Henderson 17 Henderson 17 17
Climax Worlds Largest, Highest Grade Undeveloped Moly Resource Proceeding with Restart, Targeting First Production in 2010 18 18
Strong Financial Profile Capitalization, Net of Cash ( ( in in billions) billions) 12.1 36.2 49.3 12/31/2006 (1) At Closing of PD Current (3) Acquisition (2) Net Debt Net 6.3 Market Cap Debt 12.3 Market 14.2 Cap 22.0…
FCX Investment Summary Worlds Premier Publicly Traded Copper Company World Class, Long-lived, Geographically Diverse Operations Attractive Project Pipeline Supports Growing Production Profile Significant Exploration Potential…
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