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BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Jun 4, 2010 · 22 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. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 1
    Basic B i Materials M i l Conference 2010 Kathleen L. Quirk Executive Vice President & Chi f Fi Chief Financial i l Offi Officer PROVEN PERFORMANCE SHINING FUTURE June 4, 2010 www.fcx.com
  2. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 2
    Proven Performance,, Shining g Future Investment Highlights Premiere Copper, Gold & Molybdenum Producer Long-Lived Reserves with Growth Options Flexible Operating Structure Geographically G hi ll Diverse Di Strong Financial…
  3. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 3
    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…
  4. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 4
    Copper pp Market 2,000 400 1,750 350 LME Copper Price 1,500 300 Metric Tons 1,250 250 Cents Per P 1,000 200 000s M Pound 750 150 500 100 250 50 LME & COMEX Exchange Stocks* 0 0 Jan- Jul- Jan- Jul-…
  5. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 5
    World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2010e Copper Production Million metric tons 0 5 10 15 20 25 Thousands metric tons 0 200 400 600 800 1,0 0 0 Grasberg Complex - 1988 Escondida - 1979…
  6. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 6
    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 27% 104 at 2.00 Cu…
  7. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 7
    Development Project Update North America Morenci Mill Restart & Ramp Ramp-up up Process sulfide ore being mined Successfully restarted mill in March & a p g up rates ramping ates 50 50K mt/d t/d by 2011 0 Increase Mine Rate…
  8. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 8
    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…
  9. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 9
    Development Project Update South America Cerro Verde Expansion 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 expansion…
  10. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 10
    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 80,000 t/d Big Gossan mine…
  11. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 11
    Tenke Fungurume g Achieved design Cu production rates; start-up issues on Co circuit and SO2 plant b i being addressed dd d At full rates (initial phase), aggregate annual metal of 250MM lbs Cu & over 18MM lbs Co Sold 66MM lbs…
  12. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 12
    Climax Restart Preparing for resumption of construction activities One of the most attractive primary molybdenum development projects in the world large scale production capacity, i attractive i cash h costs and d ffuture…
  13. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 13
    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 Sulphide development Plans for Twin…
  14. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 14
    FCX Copper pp Projects j billion lbs copper annually Replacement p New Copper pp Projects Sources El Abra Sulfolix SA Potential 0.3 P j t Projects 0.75 Tenke 0.25 Grasberg Expansions Underground 0.5 0.3 NA Potential…
  15. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 15
    First s Quarter Qu Highlights g g s Solid Volume and Cost Performance Strong g Cash Flows and Financial Results Repaid p 1.3 Billion in Debt YTD* Advanced Capital Projects Increase in Dividend * As of April 1, 2010.…
  16. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 16
    Near-term Sales Profile Excludes current projects under evaluation Copper Sales (billion lbs) Gold Sales (million ozs) 5 1.9 2 1.8 1.4 3.9 4.0 4 38 3.8 1 0 3 2010e 2011e 2012e ____________________ Note: Consolidated gold…
  17. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 17
    2010e Q Quarterly y Payable y Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 1,250 800 675 600 478 1,060 390 400 1,000 960 950 270 200 830 0 1Q10 2Q10e 3Q10e 4Q10e 750 ____________________ Note:…
  18. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 18
    2010e Sales and Unit Production Costs by Region 2010e Sales by Region (1) North America South America Indonesia 1,280 1,235 1,035 1.7 62 (2) 01 0.1 Cu Mo Cu Au Cu Au mm lbs mm lbs mm lbs mm ozs mm lbs mm ozs 2009e 2010e 2 0…
  19. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 19
    EBITDA and Cash Flow* at Various Copper Prices 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 Operating Cash Flow (excluding Working Capital changes)* (1,000 Gold & 10…
  20. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 20
    Capital p Expenditures p (1) Excludes current projects under evaluation (US billions) Major j Projects j All Other 3.0 2.7 2.5 1.1 2.0 1.7 1.6 1.6 1 5 1.5 0.6 0.9 0.9 1.0 1.6 (2) 0.5 1.0 (3) 0.8 0.7 (4) 0.0…
  21. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 21
    Balance Sheet (US billions) Significant Liquidity 20 (1) 17.6 Strong Credit Metrics 15 No Near-term Maturities Total Debt 10 7.4 (2) 5.1 5 0 At Time of PD Acquisition 12/31/08 3/31/10 in March 2007 Pro Forma Cash…
  22. BASIC MATERIALS CONFERENCE 2010 – Freeport-Mcmoran Inc. – slide 22
    Financial Policy o y Maintain Strong Balance Sheet & Liquidity Position Aggressive Cost Management Invest in Attractive Growth Projects Opportunistic Debt Repayment Board Action to Increase Common Stock Dividend: 1.20/share…

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