2014 Global Metals Mining & Steel Conference Richard C. Adkerson President & CEO www.fcx.com May 13, 2014
FCX A Premier U.S. Based Natural Resource Company Worlds Largest Publicly Traded Copper Producer Long-lived Reserves with Large Incremental Resources High-Quality U.S. Based Oil & Gas Assets Strong Margins & Cash Flows Growing…
FCXs Global Footprint Major Operations & Development Projects North America1 All major mining assets majority-controlled and operated Reserves Cu 36.2 bn lbs Mo 2.55 bn lbs Copper Oil & Gas 861 MMBOE2 Sales Copper/Gold/Silver Cu…
Geographic & Commodity Mix (1) 2014e EBITDA North Mining America 68% 56% South America 17% Africa Oil & Gas 7% Indonesia 32% 20% (1) Based on 2014e EBITDA of 9.7 bn assuming annual pricing of 3.00/lb Cu, 1,300/oz Au,…
Visible Organic Growth Mining Oil & Gas Targeting 5+ Billion Pounds Growing Production Profile in Annual Cu Production by 2015 Established Basins (37% Increase from 2012) Substantial Production Capacity Advanced Stage Brownfield…
May 2014 Oil & Gas Transactions 3.1 Bn Sale of Eagle Ford Shale Interests to Encana 1.4 Bn Acquisition of Deepwater GOM Interests, Including: Lucius Development (11.7% WI) Heidelberg Development (12.5% WI) Complementary Exploration…
Deepwater Gulf of Mexico Focus Areas Louisiana Texas Marlin Ram Powell Viosca Knoll Horn Mountain Mississippi Canyon Green Canyon Atwater Valley East Breaks Garden Banks Holstein Heidelberg Copper (2014) Diana…
Copper Markets Since January of 2003, Six Price Corrections of +10% Driven by Sentiment 2,500 500 2,000 400 000s Metric Tons Cents Per Pound LME Copper Price 1,500 300 1,000 200 500 100 Global Exchange Stocks* 0 0…
Copper Market Commentary Fundamental Demand in China Remains Healthy - Supported by Consumer and Infrastructure Investment - Scarcity of Scrap and Cathode Exports Creating Tightness in Domestic Market U.S. Demand Improving -…
Copper Markets Total Copper Consumption 40 Assuming 2.3% Global Growth +7.3Mt Over Next 10 Years, Copper 30 +5.6Mt 26% 25% Market Expected to Grow by Cu in Mt +7.3Mt (26%) 20 Mature Markets 10 Emerging Over Same Period,…
World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2014e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 30 0 200 400 600 800 1000 1200 1400 Escondida - 1979 Escondida - 1979…
FCX Portfolio of World Scale Mines Positive Exploration Results Big Mines Get Bigger Mines with Potential Capacity for 1 billion lbs of copper per annum* Morenci Grasberg Tenke Cerro Verde Fungurume El Abra * Grasberg…
Copper Reserves & Mineralized Material billion lbs of copper as of 12/31/13 12/31/13 226 Mineralized Material (b) by Geographical Region Mineralized 115 Material (b) billion North (contained copper) lbs 111 at 2.20 Cu price…
Brownfield Development Projects Cerro Verde Mill Expansion Morenci Mill Expansion 4.6 billion 1.6 billion Commenced construction in 1Q13 Construction in advanced stage Achievement of substantial earthworks; Commissioning & start-up…
PT Freeport Indonesia Grasberg Minerals District Life-of-Mine Production Sequencing* Plan View 206mm mt Grasberg Open Pit 0.95% Cu & 1.08 g/t Au 152mm mt Grasberg & DOZ 0.56% Cu & 0.73 g/t Au Kucing Liar Grasberg Big Gossan…
Current PT-FI Operating Status No Export Shipments Since Mid-January Aligning Current Production Levels with PT Smelting Operations Mill Operating at Half Capacity 1Q14 Impact: Deferred Sales of 125mm lbs Copper and 140,000 ozs Gold…
Long-term Positive Partnership with Indonesia Successful Operations for Over 40 Years Contributed Over 60 Billion to National GDP in GOI Direct Benefits Total Since 1992 Last 5 Years (2009 2013) (2) Currently Over 90% of Local…
Oil & Gas Operating Assets 861 MMBOE Proved, Probable & Possible Reserves as of 12/31/13 California GOM Deepwater Long Established Oil Significant Current Production Production History with Upside Strong Margins and Cash Flows…
Lucius Deepwater GOM Development Project World Class Reservoir Quality and Deliverability Development on Track; Production Anticipated in 2H 2014 Topside Facilities Lifted into Place in 1Q14 Subsea Infrastructure Currently Being…
Inboard Lower Tertiary/ Cretaceous Activities Favorable Reservoir Industry Leader in Emerging New Trend Characteristics Highlander Judge Digby Field Cretaceous Discovery Type Log Tuscaloosa Trend Cumulative Production 3.1 TCF,…
2014e Outlook Sales Outlook Unit Cost Copper(1): 4.3 Billion lbs. 1.41/lb(4) of Copper Gold(1): 1.6 Million ozs. 19/BOE(3) Molybdenum: 97 Million lbs. Oil Equivalents(2,3): 64.2 MMBOE (70% Oil) Operating Cash Flows (5) Capital…
EBITDA and Cash Flow at Various Copper Prices Average EBITDA (1,200 Gold, 10 Molybdenum & 105 Oil) (US billions) 20 15 10 5 2015e/2016e Average 0 Cu 3.00/lb Cu 3.50/lb Cu 4.00/lb Average Operating Cash Flow (excluding…
Capital Expenditures (1) (US billions) 8 7.1 7.3 6.6 6 Oil & Gas 3.5 3.0 4.0 4 Major Projects (2) TOTAL 2.6 3.1 MINING 2 3.8 1.4 4.1 2.6 Other Mining 1.2 1.2 1.0 0 2014e 2015e 2016e (1) Capital expenditure…
Committed to Balance Sheet Management Strong Track Record YE 2016 Debt Target: 12 Billion 3/31/2014 Balances* ( in bns) Large Resource Base with Strong Cash Flows and Capital Discipline Anticipate Continuing Current 20.2 18.9…
Summary A Strong & Focused Organization Executing The Strategy Maximize Total Shareholder Returns Strong Management of the Base Operational Excellence Achieve Production Targets Effective Cost and Capital Management Manage HS&E…
Reference Slides
1Q 2014 Financial Highlights Sales Data 1Q14 1Q13 (1) Copper Consolidated Volumes (mm lbs) 871 954 Average Realization (per lb) 3.14 3.51 Site Production & Delivery Unit Costs (per lb) 1.89 1.94 Unit Net Cash Costs (per lb) 1.54…
2014e Operating Estimates 2014e Unit Production Costs (per pound of copper) North South America America Indonesia(2) Africa Consolidated(2) Cash Unit Costs (1) Site Production & Delivery (3) 1.84 1.61 2.46 1.54 1.88 By-product…
2014e Oil & Gas Operating Estimates Madden & Operating Cost: 2/Mcfe California Haynesville Pricing: NYMEX Operating Cost: 34/bbl Pricing: Brent Based Gulf of Mexico Operating Cost: 14/bbl Eagle Ford Pricing: LLS Operating…
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