Freeport-McMoRan, Inc. · NYSE:FCX
Freeport-McMoRan — Investor Presentation (March 2003)
17 slides from Freeport-McMoRan's investor presentation, March 2003
Slide 1: Demographics
Demographics Indonesia Papua ¾ Fourth Most Populous Nation: ¾ Eastern-most Province; Area 228 Million Covers 165,000 Square Miles ¾ Archipelago of 13,700 Islands ¾ Population of 2.3 Million Spanning 3,000 Miles ½ Indigenous ¾ Total Area Covers 741,000 ½ From Other Islands Square Miles ¾ 60% Chri
Slide 2: Seven Vital Projects
Seven Vital Projects ¾ “Indonesian Authorities are Stepping up Security at Seven Vital National Projects:” ExxonMobil Natural Gas Ops (Aceh) Arun Natural Gas Ops (Aceh) Natuna Gasfield (South China Sea) Caltex Pacific Indonesia Operations (Riau) Freeport Indonesia Gold and Copper Mine (Pap
Slide 3: Indonesia – Major Projects
Indonesia – Major Projects ExxonMobil & Arun Natural Gas Operations Natuna Gas Field (South China Sea) Caltex Pacific Bontang Tangguh Gas Field LNG Project Kaltim Prima Coal Grasberg Paiton Power Plant Batu Hijau 12
Slide 4: Megawati’s Statements
Megawati’s Statements On providing a safe environment for investors: . . . social unrests and mass violations are illegal and hampering the efforts to recover the national economy . . . Clearly, this cannot be tolerated. . . . a state of law should be materialized. . . . Apart from this safe environ
Slide 5: Major Security Infrastructure Freeport
Army Post Carstensz Major Security Infrastructure Army Post MP 72 Police & Army Posts Freeport Police Station MP 68 Army Post MP 58 Army Post MP 64 Project Area Roving Patrols Security Check Point 50 Security Check Point 34 Army & Police HQ’s Security Check Point 32 Air Force Base Various Police Pos
Slide 6: Key Cabinet Members
Key Cabinet Members Megawati Fills Cabinet Posts With Nonpolitical Professionals Strong Team Suggests More Effective Policy Making Than Under Wahid Economics Minister Wants to Mend Relations With IMF and Lure Back Foreign Investors Asian Wall Street Journal Headlines August 10, 2001 Coordinating Min
Slide 7: U.S. Ambassador – Recent Visit to Papua
U.S. Ambassador – Recent Visit to Papua On Special Autonomy: “I also affirmed my country’s policy that we firmly believe in the territorial integrity of Indonesia and we do not support separation of Papua from Indonesia. . . . So, I pledge that the United States will support the implementation of th
Slide 8: Industry Overview
Industry Overview World-Class Discoveries Are Extremely Rare Copper Reserves* Gold Reserves Million Metric Tons Recoverable MM Ounces 0 5 10 15 20 25 30 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Grasberg GrasbergComplex Complex - 1988 Grasberg GrasbergComplex Complex - 1988 Escondida - 1981 South Deep
Slide 9: 2001 Copper Cash Cost League
2001 Copper Cash Cost League* ¢ ¢ per per pound pound of of copper copper 100 90 80 70 ¢ per pound of copper 60 50 40 30 Radomiro Tomic SxEw Bingham Canyon Los Pelambres 20 Chuquicamata Polish Copper El Abra SxEw El Teniente Collahuasi Escondida Candelaria Batu Hijau Morenci 10 Andina Ok Tedi PT-FI
Slide 10: Grasberg Development
Grasberg Development ¾ Discovered in 1988 with an initial reserve base of 50 million tonnes with 1.4 billion lbs copper and 1.5 million ozs gold ¾ Additional reserve additions resulted in a decade of expansions in the 1990’s. Year-end 2001 open- pit reserves: 947 million tonnes (17.6 billion lbs & 3
Slide 11: Grasberg Complex Highlights
Grasberg Complex Highlights ¾ World class operations – mine, mill, portsite, supporting infrastructure Mill Mill Complex Complex Grasberg Grasberg Mine Mine ¾ Lowest cost producer ¾ World’s premier copper & gold mine ¾ Single largest gold reserve in the world 20
Slide 12: Record Setting Operating Performance
Record Setting Operating Performance 3rd Quarter 2002 Records ¾ Gold Sales of 1.1 Million Ounces (100% ops) ¾ Daily Gold Production of 23,000 oz. ¾ PT-FI Share of Copper (446 million pounds) and Gold (884,600 ounces) Sales ¾ Quarterly Underground Production – 46,800 MTPD ¾ Copper Recoveries of 90.8%
Slide 13: Reserve Growth Over The Last 10 Years
Reserve Growth Over The Last 10 Years 100% Operations Net of production, Cu & Au reserves have grown by 140% and 100% since 1991 Copper Gold (billion lbs) (million ozs) 64.5 Balance 52.5 DOZ Kucing Liar Grasberg 32.4 Underground 21.8 Grasberg Open Pit at 12/31/91 at 12/31/01 at 12/31/91 at 12/31/01
Slide 14: Reserve Growth Over The Last 10 Years
Reserve Growth Over The Last 10 Years 100% Operations Inclusive of 1992-2001 production, Cu & Au reserves have grown by 195% and 155% Copper Gold (billion lbs) (million ozs) 1992-2001 83.2 Production 11.8 billion lbs, Production 64.3 18.7 million ozs 64.5 Balance DOZ 52.5 Kucing Liar Grasberg 32.4 U
Slide 15: State Line Geology?
State Line Geology? Pacific Ocean PACIFIC PACIFIC CAROLINE CAROLINE PLATE Sorong Sorong Fault Fault Zone Zone PLATE Ertsberg/Grasberg Ertsberg/Grasberg (Cu-Au-Ag) (Cu-Au-Ag) 3.0 MY BISMARCK Frieda Frieda River River Banda (Cu-Au) (Cu-Au) PLATE Front Front Ranges Ranges Porgera Porgera Sea Fault Faul
Slide 16: FCX Properties - Mineral Districts
FCX Properties - Mineral Districts Mineral District Exploration Potential PT-FI COW A (acres) PT-FI COW B COW Block A 24,700 PT-IEM COW Block B 501,500 PT-NBM IEMC 1,220,800 NBM 493,000 Total 2,240,000 Central District Logari Haiura Katehawa East Tk Tk Ti Tf Tw Kkel Kke Kke Hitalipa Dabera Komopa 50
Slide 17: Fixed-wing Total Magnetic Intensity Aeromagnetic Image
Fixed-wing Total Magnetic Intensity Aeromagnetic Image 50 km Komopa Aggregate Resource Wabu Aggregate Resource Tonnage Cu Equiv. Copper Gold Tonnage Recoverable Gold (millions) % % g/t (millions) g/t mil. ounces 191.5 0.53 0.4 0.21 117.0 2.16 5.7 26
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