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1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc.

Freeport-Mcmoran Inc. · Apr 21, 2010 · 35 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. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 1
    1st Quarter 2010 Earnings Conference Call PROVEN PERFORMANCE SHINING FUTURE April 21, 2010 www.fcx.com
  2. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 2
    Proven Performance, Shining Future 2009 Annual Report Highlights Successful Execution of Our Operating Plans Long-Lived Reserves with Growth Potential Geographically Diverse Assets Strong Financial Position Experienced Team…
  3. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 3
    1Q10 Highlights Sales Data 1Q10 1Q09 Copper Consolidated Volumes (mm lbs) 960 1,020 Average Realization (per lb) 3.42 1.72 Site Production & Delivery Unit Costs (per lb) 1.35 1.07 (1) Unit Net Cash Costs (per lb) 0.81 0.66 Gold…
  4. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 4
    Quarterly Operating Highlights 1Q10 Unit Production Costs (per pound of copper) North South America America Indonesia Consolidated(1) Cash Unit Costs Site Production & Delivery(2) 1.31 1.20 1.54 1.35 By-product Credits (0.26) (0.17)…
  5. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 5
    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…
  6. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 6
    Development Project Update North America Morenci Mill Restart & Ramp-up Process sulfide ore being mined Successfully restarted mill in March & ramping up rates 50K mt/d by 2011 Increase Mine Rate Initiating plans for a staged…
  7. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 7
    Development Project Update North America Miami Mine Restart Began stripping activities in 1Q10 Ramp up to 100MM lbs Cu/year by second half 2011 40MM project, primarily mining equipment 12/31/09 reserves of 600MM lbs Cu Safford…
  8. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 8
    Development Project Update South America Cerro Verde Expansion 50MM project to increase mill rate from 108K t/d to 120K t/d 30MM lbs Cu per year of incremental metal at low cash cost Evaluating large scale concentrator expansion…
  9. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 9
    Long-Term Underground Mine Development in Indonesia Significant undeveloped underground reserves Aggregate reserves of 41 billion lbs Cu & 35 million ozs Au DOZ expanded to 80,000 t/d Big Gossan mine full rates of Grasberg…
  10. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 10
    Tenke Fungurume Achieved design Cu production rates; start-up issues on Co circuit and SO2 plant being addressed At full rates (initial phase), aggregate annual metal of 250MM lbs Cu & over 18MM lbs Co Sold 66MM lbs Cu & 3MM lbs…
  11. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 11
    Climax Restart Preparing for resumption of construction as market conditions warrant One of the most attractive primary molybdenum development projects in the world large scale production capacity, attractive cash costs and future…
  12. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 12
    Current Projects Under Evaluation North America Tenke Fungurume Chino Restart Debottlenecking Further increases to Morenci Series of future expansions mining rate Plans for Twin Buttes/ Sierrita district Climax Longer range…
  13. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 13
    Shining Future 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%…
  14. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 14
    2010 Outlook Sales Outlook: Copper: 3.8 Billion lbs. Gold: 1.8 Million ozs. Molybdenum: 62 Million lbs. Unit Net Cash Cost (1): 88/lb Operating Cash Flows (2): Exceed 6 Billion, net of 0.3 Billion in W/C Uses Assumes 3.50/lb…
  15. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 15
    Sales Profile 2008 - 2012e Gold Sales (million ozs) Copper Sales (billion lbs) 3 2.6 5 1.8 1.9 2 1.3 1.4 4.1 4.1 1 4.0 4 3.9 3.8 0 2008 2009 2010e 2011e 2012e 3 ____________________ Note: Consolidated gold sales include…
  16. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 16
    2010e Quarterly Payable Metal Sales Gold Sales (thousand ozs) Copper Sales (million lbs) 1,250 800 675 600 478 1,060 390 400 1,000 960 950 270 200 830 0 1Q10 2Q10e 3Q10e 4Q10e 750 ____________________ Note: Consolidated…
  17. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 17
    2010e Sales and Unit Production Costs by Region 2010e Sales by Region (1) North America South America Indonesia 1,280 1,235 1,035 1.7 62 (2) 0.1 Cu Mo Cu Au Cu Au mm lbs mm lbs mm lbs mm ozs mm lbs mm ozs 2009e 2010e 2 0 10…
  18. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 18
    EBITDA and Cash Flow at Various Copper Prices 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 Average Operating Cash Flow (excluding Working Capital changes)* (1,000…
  19. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 19
    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): +/-…
  20. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 20
    Capital Expenditures (1) Major Projects All Other (US billions) 3.0 2.7 2.5 1.1 2.0 1.6 1.7 1.6 1.5 0.6 0.9 0.9 1.0 1.6 (2) 0.5 1.0 (3) 0.8 0.7 (4) 0.0 2008 2009 2010e 2011e (1) Capital expenditure estimates will…
  21. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 21
    Balance Sheet (US billions) Significant Liquidity 20 (1) 17.6 Strong Credit Metrics 15 No Near-term Maturities Total Debt 10 6.3 (2) 5.1 5 0 At Time of PD Acquisition 12/31/09 3/31/10 in March 2007 Pro Forma Cash…
  22. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 22
    FCX Debt Maturities Pro Forma 3/31/10* 6,000 (US millions) Pro Forma Total Debt & Cash 5,000 at 3/31/10* (US billions) Public Debt 4.9 4,000 Other Debt 0.2 3,788 Total Debt 5.1 8.375% Consolidated Cash 2.7 Senior 3,000 Notes…
  23. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 23
    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 Increase Common…
  24. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 24
    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…
  25. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 25
    Reference Slides 26
  26. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 26
    Grasberg Open Pit 9N 8E 9S 8S N 27
  27. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 27
    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…
  28. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 28
    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…
  29. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 29
    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 -…
  30. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 30
    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…
  31. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 31
    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…
  32. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 32
    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…
  33. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 33
    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 %…
  34. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 34
    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…
  35. 1st Quarter 2010 Earnings Conference – Freeport-Mcmoran Inc. – slide 35
    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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