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Denver Gold Forum 2008 – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Sep 10, 2008 · 31 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. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 1
    Denver Gold Forum 2008 Richard C. Adkerson President & CEO September 10, 2008 www.fcx.com
  2. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 2
    A World of Assets A World of Opportunities 2007 Annual Report Highlights Strong Portfolio of Global Producing Operations Opportunities to Expand Current Production Capacity Add Reserves to Extend Lives of Our Mines Develop…
  3. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 3
    Geographically Diverse... Major Mine Operations & Development Projects All major assets majority-controlled and operated North North America America11 Reserves Copper Cu 25.8 billion lbs Copper/Gold/Silver Mo 1.8 billion lbs…
  4. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 4
    ...Long-Lived Asset Base Consolidated Consolidated Reserves 12/31/07 (1) Copper (billion lbs) 93.2 Molybdenum (billion lbs) 2.0 Gold (million ozs) 41.0 Average Sales Volumes (2008-2010) Copper (billion lbs) 4.5 Molybdenum…
  5. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 5
    Revenue / Production Mix Mining Revenue by Commodity Copper Production by Method 2007 Pro Forma 2007 Pro Forma Gold 10% SX/EW SX/EW Concentrate Concentrate Molybdenum 35% 35% 65% 65% 12% Copper 78% 6
  6. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 6
    Markets 2,000 400 1,750 350 1,500 300 000s Metric Tons Cents Per Pound 1,250 LME Copper Price 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…
  7. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 7
    State of Copper Market Prices Have Been Volatile Reached Record 4.04/lb in July 08 3Q08 Range: 3.14 - 4.04/lb Factors Impacting Recent Copper Price Performance - Market Sentiment about Potential Global Slowdown - Impact on Chinese…
  8. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 8
    3Q 2008 Copper Price Considerations Open Pound Impact on Net Income - 369 mm lbs Provisionally Priced at 3.88/lb on 6/30/08 - Each 5 Change Would Impact Net Income by 11 Million - Current Estimated 3Q Net Income Impact: 100 Million…
  9. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 9
    Copper Supply Side Challenges Production Has Not Met Expectations Production Shortfalls Have Averaged Almost 800 kt Per Year 0 -250 Annual Shortfalls (kt) -500 -3.0% -750 -5.0% -4.9% 3-Year Average -1,000 2005…
  10. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 10
    Historical Refined Copper Consumption (kt) China United States 30% 25% % of Global Consumption 20% 15% 10% 5% 0% 80 982 984 986 988 990 992 994 996 998 000 002 004 006 8 (e) 19 1 1 1 1 1 1 1 1 1 2 2 2 2 0 20…
  11. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 11
    Demand Projections: World Will Need as Much Copper in Next 12yrs as Last 22yrs 35,000 30,000 28,200kt 25,000 000 tonnes 20,000 18,000kt 15,000 2008 2020 300,000kt 10,000 5,000 1985 2007 300,000kt Of which China…
  12. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 12
    Challenges of New Copper Project Development Relatively Few Major Projects Lower Quality than Past Delays Being Encountered - Technical Factors Complex Underground Development - Environmental - Geopolitical Resource…
  13. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 13
    1H08 Highlights Sales Data 2Q08 1H08 Copper Consolidated Volumes (mm lbs) (1) 942 1,853 Average Realization (per lb) 3.85 3.77 Gold Consolidated Volumes (000s ozs) 265 545 Average Realization (per oz) 912 917 Molybdenum…
  14. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 14
    Development Project Update North America - Copper Safford Mine Development Miami Mine Restart Major new mine in Arizona Restart of the Miami mine completed 100MM lbs Cu/year by 2010 SX/EW facility continues to ramp-up to full…
  15. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 15
    Development Project Update North America - Molybdenum Climax Mine Restart 500MM brownfield project Primary crusher Open-pit operation Construction of new mill with Covered Pebble crusher restart by 2010 ore stockpile Major…
  16. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 16
    Development Project Update South America El Abra Sulfide Large sulfide mineral deposit underlying current oxide pit New leach pad & modifications to existing crushing plant; construction to begin in the second half of 2008…
  17. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 17
    Development Project Update Indonesia Grasberg Mill Complex Underground Mine Development DOZ Expansion - Operated above 50K capacity at record 66K mt/d in 2Q08 - Further expansion to 80K under way with targeted completion by 2010…
  18. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 18
    Development Project Update Democratic Republic of Congo Tenke Fungurume Mine Development Initial production target 2H09; Engineering, procurement & construction Aggregate annual production of activities continue; concrete work,…
  19. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 19
    Development Project Update Democratic Republic of Congo Stockpile & Heavy Dump Pocket Duty Shop Leach Reagent SAG Mill Solution & CCD Storage SAG Pedestals Extraction Acid Solution Extraction Cobalt Plant Precipitation…
  20. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 20
    A World of Opportunities Exploration Targets in Major Mineral Districts 80 drill rigs operating around the world Safford/Lone Star/Morenci Cerro Verde Tenke Fungurume/Africa Grasberg/Indonesia District 18 rigs 9 rigs 19 rigs 13…
  21. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 21
    Exploration Drives the Mine Plan Aggregate 2008e Exploration: 240 million North America Lone Star, South America Morenci & Others 50% 11% Africa Indonesia Tenke 20% Deep Grasberg, Fungurume Kucing Liar, & 16% & Kisanfu other…
  22. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 22
    Exploring Our World of Opportunities North America, South America and Africa* Drill Rigs Drill Meters Reserves (number) (000s meters) (billion lbs CuEq) (a) (a) 661 144(b) 80 Potential Additions 57 in Medium Term 35 64…
  23. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 23
    Greenfield Opportunities in our Brownfield Locations North America, South America and Africa Drilling adjacent to existing ore bodies Focused on adds to reserves & mineralized material Drilling Mine planning Expansion projects…
  24. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 24
    Sales Profile 2007 - 2010e Gold Sales (million ozs) Copper Sales (billion lbs) 3 2.3 2.1 2.1 1.9 5 4.8 2 1.4 4.5 1 4.1 4 3.9 3.6 0 2006 2007 2008e 2009e 2010e Pro Pro Forma Forma* ____________________ 3 Note: Consolidated…
  25. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 25
    2008e Quarterly Payable Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) Grasberg Grasberg mining mining in in higher higher 1,225 grade grade section. section. 1,250 750 575 500 1,020 280 315 1,000 942 265…
  26. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 26
    EBITDA and Cash Flow at Various Copper Prices Average Annual EBITDA (900 Gold & 30 Molybdenum) 15 (US billions) 13 11 9 7 5 Cu 3.00/lb Cu 3.50/lb Cu 4.00/lb Average Annual Operating Cash Flow (900 Gold & 30 Molybdenum) 10…
  27. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 27
    Sensitivity to Commodity Prices Annual Annual Financial Financial Impact Impact Net Net Operating Operating Change Change EBITDA EBITDA Income Income Cash Cash Flow Flow (US millions) Copper: -/+ 0.20/lb 850 490 575…
  28. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 28
    Capital Expenditures Major Projects All Other (US billions) 3.0 3.0 2.5 2.5 1.2 2.0 1.8 1.2 1.5 1.3 1.0 1.0 1.8 0.8 1.3 0.5 0.8 0.5 0.0 2007 * 2008e 2009e 2010e * Includes PD expenditures beginning March 20, 2007…
  29. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 29
    July 2008 Board Action Increased Common Stock Dividend From 1.75 to 2.00/Share per Annum Increased Open Market Share Purchase Program to 30 Million Shares Purchased 4.8 MM Shares in Open Market at an Average Price of 82.18 During…
  30. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 30
    Average Annual Excess Cash Flow (1) ( in billions, except copper, gold and molybdenum prices) 5 Copper Sensitivities with 900 Gold/30 Molybdenum Op. Cash Flow After CAPEX & MI Distributions 4 Available for investments/ debt…
  31. Denver Gold Forum 2008 – Freeport-Mcmoran Inc. – slide 31
    FCX Investment Summary Worlds Premier Publicly Traded Copper Company Worlds Largest Molybdenum Producer & Significant Gold Producer World Class, Long-lived, Geographically Diverse Operations Attractive Project Pipeline Supports…

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