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Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Sep 22, 2011 · 24 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. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 1
    Connecting the World 2011 Global Steel & Mining Conference Kathleen L. Q Quirk Executive Vice President & Chief Financial Officer www.fcx.com September 22, 2011
  2. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 2
    Connecting Connecting the World World 2010 Annual Report Highlights Global Leader in Production of Copper, Gold and Molybdenum Well Situated to Meet Growing Demand for Metals Geographically Diverse Long-Lived Reserves…
  3. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 3
    FCXs C sG Global oba Footprint ootp t Major Mine Operations & Development Projects All major assets majority-controlled and operated North America1 Copper Reserves Copper/Gold/Silver Cu 42.2 billion lbs Mo 2.75 billion lbs…
  4. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 4
    Worlds Leading g Copper pp Producers Top 10 Copper Producers (2011e) (000 t) 2,000 1,800 1,600 , 1,400 1,200 1,000 800 600 400 200 0 Codelco FCX BHP Billiton Xstrata Anglo Southern Rio Tinto KGHM…
  5. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 5
    World Class Copper Discoveries Are Extremely Rare Recoverable Copper Reserves 2011e Copper Production Million metric tons Thousand metric tons 0 5 10 15 20 25 30 0 200 400 600 800 1,000 1,200 Grasberg Complex - 1988 Escondida -…
  6. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 6
    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-…
  7. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 7
    Copper Reserves & Mineralized Material as of 12/31/10 billion lbs of copper 12/31/10 230 Mineralized Material (b) by Geographical Region Mineralized 110 Material (b) billion (contained copper) lbs North 120 at 2.20 Cu price…
  8. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 8
    Reserve Additions Post Merger g Since 12/31/06 +43 billion lbs Cu Cu* Candelaria/Ojos Bagdad Morenci Cerro Verde Sierrita Tenke Balance, net * Proven and probable reserves as of 12/31/10 totaled 120.5 bn lbs. and were…
  9. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 9
    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%…
  10. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 10
    Value a ue Creation C ea o Focus ocus INVESTMENT CASH MINERAL RESERVE IN ATTRACTIVE PRODUCTION FLOWS/ RESOURCES ADDITIONS DEVELOPMENT GROWTH RETURNS PROJECTS 11
  11. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 11
    Status of Announced Projects j Volumes Expansions (in mm lbs/year) Year Status Morenci Mill Restart & 125 2011 complete l t Mine Rate Increase Miami Mine Restart 100 2012 in progress 200 2012 Chino Mine & Mill Restart ( ) in…
  12. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 12
    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 3.5 3 5 2016 Morenci (115K) 225 1.0 2014 Tenke (14K)…
  13. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 13
    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…
  14. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 14
    2Q11 Q Highlights g g Sales Data 2Q11 2Q10 1H11 1H10 Copper Consolidated Volumes (mm lbs) 1,002 1 002 914 1,928 1 928 1,874 1 874 Average Realization (per lb) 4.22 3.06 4.24 3.13 Site Production & Delivery Unit Costs (per lb)…
  15. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 15
    2011 0 Outlook Out oo Sales Outlook: Copper: 3.9 Billion lbs. Gold: 1.6 Million ozs. Molybdenum: 77 Million lbs. Unit Net Cash Cost(1): 1.01/lb Operating Cash Flows(2): 8 Billion (4.25/lb copper for remaining 6 months) Each…
  16. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 16
    Near-Term Near Term Sales Profile Excludes current projects under evaluation Gold Sales (million ozs) Copper Sales (billion lbs) 1.9 19 2 1.7 1.6 5 1.2 1 4.2 39 3.9 39 3.9 40 4.0 4 0 2010 2011e 2012e 2013e…
  17. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 17
    Impacts from PT-FI Labor Strike at Grasberg Currently Negotiating 2-year Extension to Bi-annual Collective Labor Agreement Which is Scheduled for Renewal on September 30, 30 2011 On September 15, 2011, Union Commenced 30-day…
  18. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 18
    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) 1.80 1.37 2.07 1.54 1.70 By-product Credits…
  19. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 19
    EBITDA and Cash Flow at Various Copper Prices Average EBITDA* (1,200 Gold & 12 Molybdenum) 15 (US billions) 12 9 6 3 0 Cu 3.50/lb Cu 4.00/lb Cu 4.50/lb Average Operating Cash Flow (excluding Working Capital changes)* (1,200…
  20. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 20
    Sensitivities Operating Ch Change EBITDA C h Fl Cash Flow (US millions) Copper: -/+ 0.10/lb 390 270 Molybdenum: -/+ 1.00/lb 75 60 Gold: -/+ 50/ounce 70 40 Diesel(1): -/+ 10% 85 60 Purchased Power(2): -/+ 10% 45 35…
  21. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 21
    Capital Expenditures (1) Excludes current projects under evaluation (US billions) Major Projects All Other 3 0 3.0 2.6 2.5 2.5 2.0 1.2 1.3 1.4 1.5 1.0 0.7 1.4 (3) 1.2 (4) 0 5 0.5 (2) (4) 0.7 0.0 2010 2011e 2012e (1) Capital…
  22. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 22
    Balance Sheet Repaid 3.8 bn in Debt Since (US billions) YE 2008 (50% Reduction) 20 17.6 (1) Significant Si ifi t Li Liquidity idit Strong Credit Metrics 15 No Near-term Maturities Investment Grade d Rated dbby Total…
  23. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 23
    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…
  24. Credit Suisse 2011 Global Steel & Mining Conferenc – Freeport-Mcmoran Inc. – slide 24
    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…

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