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3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Oct 19, 2011 · 40 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. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 1
    Connecting the World 3rd Quarter 2011 Earnings Conference Call www.fcx.com October 19, 2011
  2. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 2
    3Q11 Q Highlights g g Sales Data 3Q11 3Q10 9-mo 11 9-mo 10 Copper Consolidated Volumes (mm lbs) 947 1,081 1 081 2,875 2 875 2,955 2 955 Average Realization (per lb) 3.60 3.50 3.94 3.33 Site Production & Delivery Unit Costs (per…
  3. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 3
    Balance Sheet Repaid 3.8 bn in Debt Since (US billions) YE 2008 (50% Reduction) 20 Significant Si ifi t Li Liquidity idit 17.6 (1) Strong Credit Metrics 15 No Near-term Maturities Investment Grade d Rated dbby S&P, Moodys,…
  4. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 4
    Quarterly Q y Operating p g Highlights g g 3Q11 Unit Production Costs (per pound of copper) North South America America Indonesia Africa Consolidated Cash Unit Costs Site Production & Delivery (1) 1.86 1.38 1.98 1.55 1.71…
  5. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 5
    Markets 2,500 500 2,000 400 LME Copper Price 0s Metric Tons s Cents Per Poun C 1,500 300 1,000 200 000 nd 500 100 LME & COMEX Exchange Stocks* 0 0 Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul-…
  6. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 6
    Copper pp Market Commentary y Macro-Economic Factors Influencing Investor Sentiment & Financial Markets Physical Markets Remain Relatively Tight Supply Side Constraints Continue Expect Near-Term Volatility Positive…
  7. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 7
    Labor Situations Grasberg PT-FI has Worked in Good Faith to Reach a Mutually Satisfactory Agreement with Union Strike has No Basis Under Indonesian Law PT PT-FI FI Designated as a Vital Vital National Object Object Supported by…
  8. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 8
    Value a ue Creation C ea o Focus ocus INVESTMENT CASH MINERAL RESERVE IN ATTRACTIVE PRODUCTION FLOWS/ RESOURCES ADDITIONS DEVELOPMENT GROWTH RETURNS PROJECTS FCX Copper Resources at 12/31/2010 Recoverable Reserves (a) (…
  9. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 9
    North American Copper pp Projects j Morenci Mill Restart (a) Miami Restart (b) Morenci Mine Rate Increase (a) ( ) Chino Restart (c) ( ) (a) Morenci Mill Restart & Mine Rate Increase completed in 2011; incremental copper of…
  10. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 10
    Climax Molybdenum y Restart Advanced Stage Project Start-up in 2012 with ramp up to 20mm lbs/year during 2013 Depending on market conditions, Climax may increase to 30mm lbs/yr SAG & Ball Mills FCX will operate its Mo mines in a…
  11. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 11
    El Abra Sulfolix Commenced production in Sulfolix Stacking 1Q11 Portable Stacker Ore crushing, conveying, stacking, leaching & PLS transfer systems complete Currently l extending di leach l h pad d Project extends life 10+…
  12. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 12
    Long-Term Underground Mine Development in Indonesia Grasberg Block Cave Significant undeveloped UG reserves Aggregate reserves of 37 billion lbs Cu & 33 million ozs Au DOZ expanded to 80K t/d Initiated mining at Big Gossan full…
  13. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 13
    Underground Ore Bodies Significant g UG reserves close to existing g mill facilities; topography allows for horizontal access to UG ore bodies Large-scale & high-grade with economies of scale; UG production expected to reach 240K…
  14. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 14
    Near-Term Copper Projects Under Evaluation Incremental Preliminary Copper Capital* Achieve Mill Expansions (mm lbs/year) ( billions) Full Rates Cerro V C Verde d (360K) 600 4.0 4 0 2016 Morenci (115K) 225 1.2 2014 Tenke (14K)…
  15. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 15
    Development Opportunities Morenci Mill Expansion Key Project Metrics Positive drilling results continue to expand potential milling sulfide resource in this multi-year program Expand mill to 115K t/d Copper (bln lbs) Increase mining…
  16. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 16
    Development Opportunities Cerro Verde Mill Expansion Key Project Metrics Expand mill from 120K t/d to 360K t/d Bridge Santa Increase mining rate from Rosa Pit 320K t/d to 850K t/d Cerro Verde Pit Capital costs: 4 4 billion…
  17. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 17
    Development Opportunities Tenke Fungurume Expansion Key Project Metrics Kwatebala Mine Expand mill to 14K t/d Increase mining rate from 60K t/d to 150K t/d Add tankhouse capacity Capital costs: 850 million Incremental…
  18. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 18
    Potential Additional Projects j North America South America Sulfides/Mill Projects El Abra Mill Large Scale Morenci Sierrita Af i Africa Bagdad Ajo Future Expansion Twin Buttes of Tenke Oxides Safford/Lone Star Tenke Sulfides…
  19. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 19
    Exploration Targets in Major j Mineral Districts Safford/Lone Star/Morenci District Cerro Verde North South Exploration America America in 2011e 28% 37% Tenke Fungurume/Africa 250 million 4% Africa 14% 17%…
  20. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 20
    2011 0 Outlook Out oo Sales Outlook: Copper: 3.8 Billion lbs. Gold: 1.6 Million ozs. Molybdenum: 78 Million lbs. Unit Net Cash Cost(1): 0.95/lb Operating Cash Flows(2): 7 Billion (3.25/lb Copper for 4Q11) Each 10/lb Change…
  21. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 21
    Near-Term Near Term Sales Profile Excludes current projects under evaluation Copper Sa Coppe Sales es ((billion o lbs) s) Gold Sales (million ozs) 1.9 19 2 1.7 5 1.6 1.1 4.2 1 3.9 3.9 4 3.8 0 2010 2011e 2012e 2013e 3…
  22. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 22
    2011e Quarterly Q y Payable y Metal Sales Gold Sales (thousand ozs) Copper Sa Coppe Sales es ((million o lbs) bs) 480 500 1,250 409 356 375 305 1,002 250 1,000 , 926 947 915 125 0 1Q11 2Q11 3Q11 4Q11e 750…
  23. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 23
    2011 Operating p g Estimates 2011e Unit Production Costs North South (per pound of copper) America America Indonesia Africa Consolidated Cash Unit Costs (1) Site Production & Delivery (2) 1.81 1.36 2.06 1.56 1.70 By-product Credits…
  24. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 24
    EBITDA and Cash Flow at Various Copper Prices Average EBITDA* (1,200 Gold & 12 Molybdenum) 12 (US billions) 9 6 3 0 Cu 3.00/lb Cu 3.50/lb Cu 4.00/lb Average Operating Cash Flow (excluding Working Capital changes)* (1,200…
  25. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 25
    Sensitivities Operating Ch Change EBITDA C h Fl Cash Flow (US millions) Copper: -/+ 0.10/lb 380 265 Molybdenum: -/+ 1.00/lb 75 60 Gold: -/+ 50/ounce 70 40 Diesel(1): -/+ 10% 80 60 Purchased Power(2): -/+ 10% 45 35…
  26. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 26
    Capital p Expenditures p (1) Major Projects All Other Near-term Projects Under Evaluation(5) (US billions) 5 4 3.7 1.0 3 2.6 2 12 1.2 14 1.4 1.4 1 0.7 (3) (2) 14 1.4 (4) 13 1.3 ((4)) 0.7 0 2010 2011e…
  27. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 27
    Financial Policy o y Maintain Strong Balance Sheet & Liquidity Position Invest in Attractive Growth Projects Opportunistic Debt Repayment Current Common Stock Dividend Rate: 1.00/Share per Annum Paid 950 Million in…
  28. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 28
    FCX Investment Summary Worlds Premier Publicly Traded Copper Company World Worlds s Largest Molybdenum Producer & Significant Gold Producer Long Long-lived lived Reserves, Geographically Diverse Operations Flexible e b e…
  29. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 29
    Click to edit Master title style y Reference Slides
  30. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 30
    PT-FI Mine Plan PT-FIs Share of Metal Sales, 2011e-2015e 2011e 2015e PT-FI Share Total: 5.9 billion lbs copper Copper, billion lbs Annual Average: 1.18 billion lbs Gold, million ozs 2011e 2015e PT-FI Share Total: 8.15 million ozs…
  31. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 31
    Grasberg Open Pit 9N 8E 9S N 32
  32. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 32
    Mining Sequence in 2011 Copper pp Equivalent q Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 2010 A 8E 1Q11 Legend: 0.25 0.50 - 0.99 0.99% CuEq % Eq Cu…
  33. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 33
    Mining Sequence in 2011 Copper pp Equivalent q Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 2010 A 8E 1Q11 Legend: 0.25 0.50 - 0.99 1.00 0.99% 1.00 -…
  34. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 34
    Mining Sequence in 2011 Copper pp Equivalent q Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 3Q11 2010 A 8E 1Q11 Legend: 0.25 0.50 - 0.99 1.00 0.99% 1.00…
  35. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 35
    Mining Sequence in 2011 Copper pp Equivalent q Cross Section A B 9S 8E and 9N are the Primary Ore Pushbacks in 2011 9N* Grasberg g Plan View B End 3Q11 2010 A 8E 1Q11 Legend: 4Q11 0.25 0.50 - 0.99 1.00 0.99%…
  36. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 36
    Mining Sequence in 2012 Copper pp Equivalent q Cross Section A B 9N is the Primary Ore Pushback in 2012 9S 9N Grasberg g Plan View B End A 8E 2011 Legend: 2012 0.25 0.50 - 0.99 0.99% CuEq % Eq Cu 1.00 1.00 -…
  37. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 37
    Mining Sequence in 2013 Copper pp Equivalent q Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2013 9S Grasberg g Plan View B 9N A End 2012 Legend: 0.25 0.50 - 0.99 0.99% CuEq % Eq Cu 1.00 1.00 -…
  38. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 38
    Mining Sequence in 2014 Copper pp Equivalent q Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2014 Grasberg g Plan View 9S B A 9N End 2013 Legend: 0.25 0.50 - 0.99 0.99% CuEq % Eq Cu 1.00 1.00 -…
  39. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 39
    Mining Sequence in 2015 Copper pp Equivalent q Cross Section A B 9S is the Primary Ore Pushback in 2015 Grasberg g Plan View B End A 9S 2014 Legend: 0.25 0.50 - 0.99 0.99% CuEq % Eq Cu 1.00 1.00 - 1.99 1.99%…
  40. 3rd Quarter 2011 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 40
    Mining Sequence in 2016 Copper pp Equivalent q Cross Section A B 9S is the Primary Ore Pushback in 2016 Grasberg g Plan View B A End 2015 Legend: 9S 0.25 0.50 - 0.99 0.99% CuEq % Eq Cu 1.00 1.00 - 1.99 1.99%…

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