JPMorgan 3rd Annual Basics & Industrials Conference Richard C. Adkerson President & CEO June 4, 2008 www.fcx.com
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…
Geographically Diverse... Major Mine Operations & Development Projects All major assets majority-controlled and operated North North America America11 Copper Reserves Cu 25.8 billion lbs Copper/Gold/Silver Mo 1.8 billion lbs…
...Long-Lived Asset Base Net Net Consolidated Consolidated Interest Interest Reserves 12/31/07 (1) Copper (billion lbs) 93.2 77.0 Molybdenum (billion lbs) 2.0 1.9 Gold (million ozs) 41.0 37.0 Average Sales Volumes (2008-2010)…
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
Factors Driving Copper Price Performance Actual Copper Prices Have Been Significantly Higher Than Analysts Forecast - In Each of the Last Three Years, Copper Prices Have Been 30 65% Higher Than Consultant Estimates At Start of Year…
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…
The China Factor Chinas Copper Consumption Has Doubled Since 2001 While the U.S. Has Declined 12 Estimated Estimated +10% Refined Copper Consumption (bn lbs) 10 +10% Annual Annual Growth Growth 8 6 4 Estimated…
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…
2008 Outlook Sales Outlook: Copper: 4.2 Billion lbs. Gold: 1.4 Million ozs. Molybdenum: 75 Million lbs. Modeled Operating Cash Flows (1): Exceeds 6.5 Billion for 2008 Significant Working Capital Requirements in First Half…
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 100MM project, primarily…
Development Project Update North America Molybdenum Climax Primary Moly Mine Restart 500MM brownfield project Primary crusher Open-pit operation Construction of new mill with Covered ore stockpile Pebble crusher restart by…
Development Project Update South America El Abra Sulfide Large sulfide mineral deposit El Abra underlying current oxide pit E-W Section Original Topography Environmental impact study Current Pit approved by Chilean Government…
Development Project Update Indonesia Underground Mine Development DOZ Expansion - Operated at record 61K mt*/d in 1Q08 - Further expansion to 80K under way with targeted completion by 2010 Initiating mine development activities…
Development Project Update Democratic Republic of Congo Tenke Fungurume Mine Development Engineering, procurement & construction activities continue; concrete work, steel tank erection, structural steel & infrastructure…
Development Project Update Democratic Republic of Congo Leach Tanks & CCD Stockpile & Heavy Duty Shop Dump Pocket Reagent Storage SAG Mill Leach & CCD Cobalt Precipitation Electrowinning Electrical Substation…
Copper Reserves & Mineralized Material Estimates as of 12/31/07 93 100 Incremental at 1.20 at 1.50 copper price copper price Reserves (a) Mineralized (billion lbs of Material (b) recoverable copper) (billion lbs of…
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 Grasberg District SW US Indonesia Africa South America 21
Exploration Drives the Mine Plan Aggregate 2008e Exploration: 180 million North America Lone Star, South America Morenci & Others 38% 14% Africa Indonesia Tenke 22% Deep Grasberg, 21% Fungurume Kucing Liar, & & Kisanfu other…
2008e Quarterly Payable Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 1,250 1,250 750 Grasberg Grasberg currently mining mining in in lower lower grade grade section. section. 585 1,120 500 280 315 1,000…
2008e Sales and Unit Production Costs by Region 2008e Sales by Region North America South America Indonesia 1,530 1,480 1.3 1,200 75 (1) 0.1 Cu Mo Cu Au Cu Au mm lbs mm lbs mm lbs mm ozs mm lbs mm ozs 2007e 1Q0 7 2008e 2007e…
EBITDA and Cash Flow at Various Copper Prices Average Annual EBITDA 2008e-2009e (900 Gold & 30 Molybdenum) 17 (US billions) 15 13 11 9 7 5 Cu 3.00/lb Cu 3.50/lb Cu 4.00/lb Cu 4.50/lb Average Annual Operating Cash Flow…
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…
Capital Expenditures Major Projects All Other (US billions) 3.0 3.0 2.5 2.4 1.2 2.0 1.8 1.1 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…
Average Annual Excess Cash Flow (1) 2008e 2009e ( in billions, except copper, gold and molybdenum prices) 6 Copper Sensitivities with 900 Gold/30 Molybdenum Op. Cash Flow After CAPEX & MI Distributions 5 Available for…
Financial Policy FCX is Committed to Maintaining a Strong Financial Position Continuation of Positive Copper Markets is Expected to Provide Substantial Cash Flows Investments in Projects With Attractive Returns Opportunistic Debt…
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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