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4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Jan 21, 2010 · 39 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. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 1
    4th Quarter 2009 Earnings Conference Call January 21, 2010 www.fcx.com
  2. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 2
    2009 Highlights Successful Execution of Revised Operating Plans Strong Operating & Financial Performance Strengthened Balance Sheet Enhanced Financial and Liquidity Position Successful Start-up of Tenke Operations Added…
  3. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 3
    Strong Operating & Cost Performance 2009 y Strong Volumes Actual 2009 sales volumes higher and unit costs lower Access to High-Grade than January estimates* Section of the Grasberg Open Pit Cu +5% (211 mm lbs) Solid Results in the…
  4. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 4
    4Q09 & 2009 Highlights Sales Data 4Q09 2009 Copper Consolidated Volumes (mm lbs) 989 4,111 Average Realization (per lb) 3.20 2.60 Site Production & Delivery Unit Costs (1) (per lb) 1.25 1.12 Unit Net Cash Costs (1) (per lb) 0.62…
  5. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 5
    Quarterly Operating Highlights 4Q09 Unit Production Costs (per pound of copper) North South America America Indonesia Consolidated(1) Cash Unit Costs Site Production & Delivery(2) 1.22 1.20 1.36 1.25 By-product Credits (0.24) (0.13)…
  6. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 6
    Preliminary Reserves at 12/31/09 Consolidated Proven & Probable Reserves 12/31/09 Copper Molybdenum Gold billion lbs billion lbs million ozs Copper Reserves by Geographical Region Reserves 12/31/08 102.0 2.48 40.0…
  7. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 7
    Core Assets Preliminary Consolidated Copper Reserves 104 billion lbs of Copper Reserves at 12/31/09 +6.3 billion lbs of net additions North 27.7 America Reserves: 27.7 Additions: 0.6 Additions at Morenci Africa Reserves: 8.4…
  8. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 8
    Copper Reserves & Mineralized Material Preliminary Estimates as of 12/31/09 123 104 at 1.60 at 2.00 copper price copper price Reserves (a) Mineralized Material (b) (billion lbs of (billion lbs of contained copper)…
  9. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 9
    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…
  10. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 10
    2010 Outlook Sales Outlook: Copper: 3.8 Billion lbs. Gold: 1.8 Million ozs. Molybdenum: 60 Million lbs. Unit Net Cash Cost (1): 86/lb Operating Cash Flows (2): 5.3 Billion, net of 0.4 Billion in W/C Uses Assumes 3.25/lb Copper…
  11. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 11
    Development Project Update North America Miami Mine Restart Restart of the Miami mine Ramp up to 100MM lbs Cu/year by second half 2011 40MM project, primarily mining equipment 12/31/09 reserves of 600MM lbs Cu Morenci…
  12. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 12
    Development Project Update South America El Abra Sulfolix y Large sulfide mineral deposit underlying current oxide pit; project extends life 10+ years & provides 300MM lbs Cu/yr aggregate to replace oxides y New leach pad &…
  13. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 13
    Long-Term Underground Mine Development in Indonesia y Several large-scale underground projects to develop significant underground reserves Aggregate reserves of 41 billion lbs Cu & 35 million ozs Au 155 miles of underground tunnels…
  14. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 14
    Tenke Fungurume y Construction activities complete SAG Mill y Achieved design production rates on Cu; start-up issues on Co circuit continue to be addressed y At full rates (initial phase), aggregate annual metal of 250MM lbs Cu &…
  15. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 15
    Core Assets Exploration Targets in Major Mineral Districts Safford/Lone Star/Morenci District South Cerro Verde America North 21% Exploration America Tenke Fungurume/Africa in 2010e 30% Africa 100 million 19% 5% 25%…
  16. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 16
    Sales Profile 2007 - 2011e Gold Sales (million ozs) Copper Sales (billion lbs) 3 2.6 2.3 5 1.9 2 1.8 1.3 4.1 4.1 1 3.9 4 3.8 3.8 0 2007 2008 2009 2010e 2011e Pro Forma* 3 ____________________ Note: Consolidated gold sales…
  17. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 17
    2010e Quarterly Payable Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 1,250 800 675 1,090 600 490 385 400 1,000 960 280 890 200 860 0 1Q10e 2Q10e 3Q10e 4Q10e 750 ____________________ Note: Consolidated…
  18. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 18
    2009 and 2010e Sales by Region 2009 Sales by Region (1) North America South America Indonesia 1,394 1,400 1,187 2.5 58 Au mm ozs Cu Mo Cu 0.1 Cu Au mm lbs mm lbs mm lbs mm lbs mm ozs 2009 2009 2009 2009 2009 2009 2010e…
  19. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 19
    2009 and 2010e Unit Production Costs by Region 2009 North South (per pound of copper) America America Indonesia Consolidated (3) Unit Cash Costs Site Production & Delivery (1) 1.25 1.08 1.05 1.12 By-product Credits (0.23) (0.11)…
  20. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 20
    Reconciliation of Unit Cash Costs Consolidated (excluding Tenke) per lb of copper 2009 55 Grasberg, primarily lower volumes (a) 27 North America (b) 2 South America (c) 2 Total 31 2010e 86 (a) lower projected sales volumes…
  21. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 21
    Site Operating Costs by Category Consolidated Materials 31% 33% Manpower 34% 30% Other 11% 12% 5% Energy Acid 21% 3% 20% 2009 2010e Note: e = estimate. See Cautionary Statement. 22
  22. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 22
    EBITDA and Cash Flow at Various Copper Prices 2010e/2011e Average EBITDA (1,000 Gold & 10 Molybdenum) 10 (US billions) 8 6 4 2 0 Cu 2.50/lb Cu 3.00/lb Cu 3.50/lb 2010e/2011e Average Operating Cash Flow (excluding Working…
  23. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 23
    Sensitivities Operating Change EBITDA Cash Flow (US millions) Copper: -/+ 0.10/lb 375 260 Molybdenum: -/+ 1.00/lb 55 45 Gold: -/+ 50/ounce 90 50 Diesel (1): -/+ 10% 45 30 Purchased Power (2): -/+ 10% 40 25 Currencies (3): +/-…
  24. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 24
    Capital Expenditures (1) Major Projects All Other (US billions) 3.0 2.7 2.5 1.1 2.0 1.6 1.7 1.5 1.3 0.6 0.9 1.0 1.6 0.8 (2) 0.5 1.0 0.8 (3) 0.5 (3) 0.0 2008 2009 2010e 2011e (1) Capital expenditure estimates will…
  25. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 25
    Balance Sheet (US billions) Significant Liquidity 20 (1) 17.6 Strong Credit Metrics 15 No Near-term Maturities Total Debt 10 7.4 6.3 5 0 At Time of PD Acquisition 12/31/08 12/31/09 in March 2007 Cash 3.4 0.9 2.7 Net…
  26. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 26
    FCX Debt Maturities 12/31/09 6,000 (US millions) Total Debt & Cash at 12/31/09 5,000 (US billions) Public Debt 6.2 Other Debt 0.1 4,000 3,922 Total Debt 6.3 8.375% Consolidated Cash 2.7 Senior Notes 3,000 and PD Senior…
  27. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 27
    Financial Policy Maintain Strong Balance Sheet & Liquidity Position Aggressive Cost Management Invest in Attractive Growth Projects as Economic Conditions Warrant Opportunistic Debt Repayment Board Action to Reinstate Common…
  28. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 28
    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…
  29. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 29
    Reference Slides 30
  30. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 30
    Grasberg Open Pit 9N 8E 7S 9S 8S N 31
  31. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 31
    PT-FI Mine Plan PT-FIs Share of Metal Sales, 2010e-2014e 2010e 2014e PT-FI Share Total: 5.7 billion lbs copper Annual Average: 1.14 billion lbs Copper, billion lbs Gold, million ozs 2010e 2014e PT-FI Share Total: 8.0 million ozs…
  32. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 32
    Mining Sequence in 2010 Copper Equivalent Cross Section A B Following a mine-out of 7S in 1Q10, 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 A Legend: 0.25 - 0.99 0.50 0.99% 1.00 - 1.99…
  33. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 33
    Mining Sequence in 2010 Copper Equivalent Cross Section A B Following a mine-out of 7S in 1Q10, 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 2Q10 A Legend: 0.25 - 0.99 0.50 0.99% 1.00 -…
  34. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 34
    Mining Sequence in 2010 Copper Equivalent Cross Section A B Following a mine-out of 7S in 1Q10, 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 2Q10 A 3Q10 Legend: 0.25 - 0.99 0.50 0.99% 1.00…
  35. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 35
    Mining Sequence in 2010 Copper Equivalent Cross Section A B Following a mine-out of 7S in 1Q10, 8E is the Primary Ore Pushback in 2010 Grasberg Plan View 8E B End 7S 2009 2Q10 A 3Q10 Legend: 0.25 - 0.99 0.50 0.99% 1.00…
  36. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 36
    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 B End 2010 8E A Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…
  37. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 37
    Mining Sequence in 2012 Copper Equivalent Cross Section A B 9N is the Primary Ore Pushback in 2012 9S 9N Grasberg Plan View B End 2011 A 8E Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00 1.99% CuEq %…
  38. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 38
    Mining Sequence in 2013 Copper Equivalent Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2013 9S Grasberg Plan View B 9N End 2012 A Legend: 2013 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00…
  39. 4th Quarter 2009 Earnings Conference Call – Freeport-Mcmoran Inc. – slide 39
    Mining Sequence in 2014 Copper Equivalent Cross Section A B 9N and 9S are the Primary Ore Pushbacks in 2014 9S Grasberg Plan View B End 2013 A 9N Legend: 0.25 - 0.99 0.50 0.99% CuEq % Eq Cu 1.00 - 1.99 1.00 1.99%…

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