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2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Jul 21, 2009 · 36 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. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 1
    2nd Quarter 2009 Earnings Conference Call July 21, 2009 www.fcx.com
  2. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 2
    2Q09 Highlights Sales Data 2Q09 2Q08 Copper Consolidated Volumes (mm lbs) 1,102 942 Average Realization (per lb) 2.22 3.85 Site Production & Delivery Unit Costs (per lb) 1.04 1.59 Unit Net Cash Costs (per lb) 0.43 1.25 Gold…
  3. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 3
    Strong Operating Performance Consolidated sales volumes Grasberg Pit Cross-Section higher than April estimates A B Cu +15% (147mm lbs) 8E Au +29% (187K ozs) Grasberg Plan View B Mo +45% (5mm lbs) 7S End 2008 A 2Q09 2Q09…
  4. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 4
    Quarterly Operating Highlights 2Q09 Unit Production Costs (per pound of copper) North South America America Indonesia Consolidated(3) Cash Unit Costs Site Production & Delivery(1) 1.24 1.00 0.93 1.04 Royalties(1) - - 0.12 0.05…
  5. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 5
    Achieving Cost Reductions Site Production & Delivery Costs - Consolidated Consolidated Site Production & Delivery per pound of copper Revised Operating 35% Plans Reduction 1.59 Grasberg Ore Grades 1.04 Aggressive Cost…
  6. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 6
    Achieving Cost Reductions Site Production & Delivery Costs North America North America Site Production & Delivery per pound of copper Aggressive Cost Management 33% 1.84 Reduction Lower Input Costs 1.24 Diesel prices down 55%…
  7. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 7
    Markets 2,000 400 1,750 350 1,500 300 000s Metric Tons Cents Per Pound LME Copper Price 250 1,250 1,000 200 750 150 500 100 250 50 LME & COMEX Exchange Stocks* 0 0 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02…
  8. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 8
    Sales Profile 2007 - 2010e Gold Sales (million ozs) Copper Sales (billion lbs) 3 2.4 2.3 5 2.0 2 1.3 4.1 1 3.9 3.9 4 3.8 0 2007 2008 2009e 2010e Pro Forma* 3 ____________________ Note: Consolidated gold sales include…
  9. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 9
    2009e Quarterly Payable Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 837 1,250 800 545 550 1,102 600 475 1,020 400 1,000 910 915 200 0 1Q09 2Q09 3Q09e 4Q09e 750 ____________________ Note: Consolidated…
  10. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 10
    2009e Sales and Unit Production Costs by Region 2009e Sales by Region (1) North America South America Indonesia 2.3 1,380 1,330 1,130 56 Au Cu Mo Cu mm ozs Cu Au mm lbs mm lbs mm lbs 0.1 2 0 0 9 e mm lbs mm ozs 2009e…
  11. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 11
    Exploration 2008 2009e 248 million 75 million 22% 17% North America 7% 44% 34% South 20% America 4% 10% Indonesia Africa 13% 29% Activities focused on incorporating significant data Australasia obtained in 2007 and 2008…
  12. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 12
    EBITDA and Cash Flow at Various Copper Prices 2010e Annual EBITDA (900 Gold & 8 Molybdenum) 8 (US billions) 6 4 2 0 Cu 1.75/lb Cu 2.25/lb Cu 2.75/lb 2010e Annual Operating Cash Flow (excluding Working Capital)* (900 Gold &…
  13. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 13
    Sensitivities 2010e Operating Change EBITDA Cash Flow (US millions) Copper: -/+ 0.10/lb 375 260 Molybdenum: -/+ 1.00/lb 55 45 Gold: -/+ 50/ounce 95 55 Diesel (1): -/+ 10% 35 20 Purchased Power (2): -/+ 10% 40 25 Currencies (3):…
  14. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 14
    Capital Expenditures (1) Major Projects All Other (US billions) 3.0 2.7 2.5 1.1 2.0 1.5 1.4 0.6 1.0 1.0 1.6 0.5 0.5 0.8 (2) (3) 0.5 0.0 2008 2009e 2010e (1) Capital expenditure estimates will continue to be reviewed and…
  15. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 15
    Tenke Fungurume Development Project Update Solution loaded with Copper During 2Q09, 36MM lbs Cu produced & 26MM lbs Cu sold Construction activities substantially complete; commissioning of cobalt circuit began in 2Q09 & sulphuric…
  16. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 16
    Significant Progress at Tenke January 2006 location of the processing plant facilities 17
  17. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 17
    Significant Progress at Tenke December 2007 18
  18. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 18
    Significant Progress at Tenke March 2009 SX PLS Ponds Stockpile EW Leach & CCD Cobalt Plant Acid SAG Plant 19
  19. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 19
    Tenke Fungurume Development Project Update Acid Plant Leaching & CCD SAG Cobalt Plant 20 20
  20. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 20
    Tenke Fungurume Largest Investment in DRC World-Class Design & Construction Significant Infrastructure Upgrades Expanding Social & Community Programs Workers install a liner for the Tailings Storage Facility Project Will…
  21. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 21
    Underground Mine Development in Indonesia Grasberg District Ore Bodies Continuing underground development Grasberg Big Gossan mine open pit Grasberg Block Cave Expansion of the DOZ mine to 80,000 t/d with completion by 2010…
  22. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 22
    FCX Debt Maturities 6/30/09 Adjusted for 6.875% Senior Note Redemption 6,000 (US millions) Public Debt Other Debt Total Debt & Cash at 6/30/09 5,000 (US billions) Public Debt* 6.6 6% Senior Notes 0.3 4,080 4,000 Other Debt 0.3…
  23. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 23
    Financial Policy Maintain Strong Balance Sheet & Liquidity Position Aggressive Cost Management Capital Investments Will be Limited in Current Market Environment Near-Term Focus Will be on Protecting Liquidity While Preserving…
  24. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 24
    FCX Investment Summary Worlds Premier Publicly Traded Copper Company Worlds Largest Molybdenum Producer & Significant Gold Producer Long-lived Reserves, Geographically Diverse Operations Flexible Operating Structure Can…
  25. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 25
    Reference Slides 26
  26. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 26
    Grasberg Open Pit 9N 8E 7S 9S 8S N 27
  27. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 27
    PT-FI Mine Plan PT-FIs Share of Metal Sales, 2009e-2013e 2009e 2013e PT-FI Share Copper, billion lbs Total: 6.1 billion lbs copper Gold, million ozs Annual Average: 1.2 billion lbs Previous Estimates 2009e 2013e PT-FI Share Total:…
  28. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 28
    PT-FI Mine Plan Changes Accelerate Metal into 2011/2012 Ramp Retrievals in 2011 & 2012 Accelerated 0.2 billion lbs copper & 0.5 million ozs* gold into 2011/2012 B A Mine Plan Changes Retrieval of high-grade ore in ramps in…
  29. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 29
    Mining Sequence in 2009 Copper Equivalent Cross Section A B 7S and 8E are the Primary Ore Pushbacks in 2009 8E 7S Grasberg Plan View End B 2008 1Q09 A Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…
  30. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 30
    Mining Sequence in 2009 Copper Equivalent Cross Section A B 7S and 8E are the Primary Ore Pushbacks in 2009 8E Grasberg Plan View 7S End B 2008 2Q09 A Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…
  31. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 31
    Mining Sequence in 2009 Copper Equivalent Cross Section A B 7S and 8E are the Primary Ore Pushbacks in 2009 8E Grasberg Plan View 7S End B 2008 A 3Q09 Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…
  32. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 32
    Mining Sequence in 2009 Copper Equivalent Cross Section A B 7S and 8E are the Primary Ore Pushbacks in 2009 8E Grasberg Plan View 7S End B 2008 A 4Q09 Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…
  33. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 33
    Mining Sequence in 2010 Copper Equivalent Cross Section A B 8E is the Primary Ore Pushback in 2010 9S Grasberg Plan View End 8E B 2009 A 2010 Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00 1.99%…
  34. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 34
    Mining Sequence in 2011 Copper Equivalent Cross Section A B 8E and 9N are the Primary Ore Pushbacks in 2011 9S 9N* Grasberg Plan View End 2010 B 8E A 2011 Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…
  35. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 35
    Mining Sequence in 2012 Copper Equivalent Cross Section A B 9N is the Primary Ore Pushback in 2012 9S 9N Grasberg Plan View End 2011 B A 2012 Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00 1.99% CuEq…
  36. 2nd Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 36
    Mining Sequence in 2013 Copper Equivalent Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2013 9S Grasberg Plan View End B 2012 9N A Legend: 2013 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…

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