Freeport-McMoRan (FCX) Jefferies Global Industrial Conference 2024 summary

Leadership and strategic outlook

• New CEO brings 35 years of experience, emphasizing continuity and a strong balance sheet.

• Focus remains on operational excellence, shareholder value, and navigating industry challenges.

• Copper's role in global electrification is seen as a major growth driver.

• Execution and diligence are highlighted as core strengths for future value creation.

U.S. operations and innovation

• U.S. operations face cost inflation due to lower ore grades and labor costs.

• Innovative leach program targets stockpiles, producing copper at $1/lb incrementally, with plans to scale from 200M to 800M lbs/year by 2028.

• Automation and digitalization, including autonomous trucks and data analytics, are being deployed to boost productivity.

• Stockpiles contain 40B lbs of copper, offering a unique, low-capital growth opportunity.

• Leach initiative could sustain high output for over a decade, with significant EBITDA impact.

Indonesian operations and smelter ramp-up

• Indonesian underground operations benefit from gold byproduct credits, resulting in net negative cash costs.

• New $4B smelter nearing completion; full ramp-up will eliminate 7.5% export duty, reducing costs by ~$0.25/lb.

• Grasberg mine continues to transition to deeper block caves, with new Kucing Liar deposit offering higher grades and long-term potential.

• Discussions ongoing to extend mining rights beyond 2041, with further investments planned.