UNITED
STATES
|
||
SECURITIES
AND EXCHANGE COMMISSION
|
||
Washington,
D.C. 20549
|
||
FORM
10-Q
|
||
(Mark
One)
|
||
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
||
For
the quarterly period ended September 30, 2007
|
||
OR
|
||
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
||
For
the transition period from
|
To
|
|
Commission
File Number: 1-9916
|
||
Freeport-McMoRan
Copper & Gold Inc.
|
||
(Exact
name of registrant as specified in its
charter)
|
Delaware
|
74-2480931
|
(State
or other jurisdiction of
|
(IRS
Employer Identification No.)
|
incorporation
or organization)
|
|
One
North Central Avenue
|
|
Phoenix,
AZ
|
85004-4414
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(602)
366-8100
|
|
(Registrant's
telephone number, including area code)
|
|
Page
|
|
3
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
31
|
|
32
|
|
85
|
|
85
|
|
86
|
|
86
|
|
86
|
|
87
|
|
87
|
|
88
|
|
E-1
|
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(In
Millions)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
2,377
|
$
|
907
|
||||
Accounts
receivable
|
2,165
|
486
|
||||||
Inventories
|
2,135
|
724
|
||||||
Mill
and leach stockpiles
|
614
|
–
|
||||||
Prepaid
expenses, restricted cash and other
|
152
|
34
|
||||||
Assets
held for sale
|
1,231
|
–
|
||||||
Total
current assets
|
8,674
|
2,151
|
||||||
Property,
plant, equipment and development costs, net
|
24,020
|
3,099
|
||||||
Trust
assets
|
609
|
–
|
||||||
Long-term
mill and leach stockpiles
|
1,099
|
–
|
||||||
Goodwill
|
6,332
|
–
|
||||||
Other
assets
|
655
|
140
|
||||||
Total
assets
|
$
|
41,389
|
$
|
5,390
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued liabilities
|
$
|
2,814
|
$
|
789
|
||||
Accrued
income taxes
|
815
|
165
|
||||||
Copper
price protection program
|
635
|
–
|
||||||
Current
portion of long-term debt and short-term borrowings
|
67
|
19
|
||||||
Liabilities
related to assets held for sale
|
472
|
–
|
||||||
Total
current liabilities
|
4,803
|
973
|
||||||
Long-term
debt, less current portion:
|
||||||||
Senior
notes
|
6,953
|
620
|
||||||
Term
loan
|
1,550
|
–
|
||||||
Project
financing, equipment loans and other
|
162
|
41
|
||||||
Total
long-term debt, less current portion
|
8,665
|
661
|
||||||
Deferred
income taxes
|
6,816
|
800
|
||||||
Other
liabilities and deferred credits
|
1,492
|
298
|
||||||
Total
liabilities
|
21,776
|
2,732
|
||||||
Minority
interests in consolidated subsidiaries
|
1,699
|
213
|
||||||
Stockholders’
equity:
|
||||||||
5½%
Convertible Perpetual Preferred Stock
|
1,100
|
1,100
|
||||||
6¾%
Mandatory Convertible Preferred Stock
|
2,875
|
–
|
||||||
Common
stock
|
50
|
31
|
||||||
Capital
in excess of par value
|
13,359
|
2,668
|
||||||
Retained
earnings
|
3,355
|
1,415
|
||||||
Accumulated
other comprehensive loss
|
(1
|
)
|
(20
|
)
|
||||
Common
stock held in treasury
|
(2,824
|
)
|
(2,749
|
)
|
||||
Total
stockholders’ equity
|
17,914
|
2,445
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
41,389
|
$
|
5,390
|
||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
September
30,
|
September
30,
|
|||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||
(In
Millions, Except Per Share Amounts)
|
||||||||||||
Revenues
|
$
|
5,066
|
$
|
1,636
|
$
|
12,755
|
$
|
4,148
|
||||
Cost
of sales:
|
||||||||||||
Production
and delivery
|
2,662
|
792
|
6,105
|
1,875
|
||||||||
Depreciation,
depletion and amortization
|
356
|
60
|
846
|
147
|
||||||||
Total
cost of sales
|
3,018
|
852
|
6,951
|
2,022
|
||||||||
Exploration
and research expenses
|
40
|
4
|
87
|
9
|
||||||||
Selling,
general and administrative expenses
|
131
|
45
|
314
|
111
|
||||||||
Total
costs and expenses
|
3,189
|
901
|
7,352
|
2,142
|
||||||||
Operating
income
|
1,877
|
735
|
5,403
|
2,006
|
||||||||
Interest
expense, net
|
(155
|
)
|
(18
|
)
|
(386
|
)
|
(62
|
)
|
||||
Losses
on early extinguishment and conversion of debt, net
|
(36
|
)
|
(30
|
)
|
(171
|
)
|
(32
|
)
|
||||
Gains
on sales of assets
|
47
|
21
|
85
|
30
|
||||||||
Other
income, net
|
48
|
6
|
110
|
17
|
||||||||
Equity
in affiliated companies’ net earnings
|
5
|
2
|
17
|
7
|
||||||||
Income
from continuing operations before income taxes
|
||||||||||||
and
minority interests
|
1,786
|
716
|
5,058
|
1,966
|
||||||||
Provision
for income taxes
|
(653
|
)
|
(304
|
)
|
(1,875
|
)
|
(836
|
)
|
||||
Minority
interests in net income of consolidated subsidiaries
|
(307
|
)
|
(46
|
)
|
(728
|
)
|
(115
|
)
|
||||
Income
from continuing operations
|
826
|
366
|
2,455
|
1,015
|
||||||||
Discontinued
operations, net of taxes
|
12
|
–
|
44
|
–
|
||||||||
Net
income
|
838
|
366
|
2,499
|
1,015
|
||||||||
Preferred
dividends
|
(63
|
)
|
(15
|
)
|
(144
|
)
|
(45
|
)
|
||||
Net
income applicable to common stock
|
$
|
775
|
$
|
351
|
$
|
2,355
|
$
|
970
|
||||
Basic
net income per share of common stock:
|
||||||||||||
Continuing
operations
|
$
|
2.00
|
$
|
1.85
|
$
|
7.06
|
$
|
5.14
|
||||
Discontinued
operations
|
0.03
|
–
|
0.13
|
–
|
||||||||
Basic
net income per share of common stock
|
$
|
2.03
|
$
|
1.85
|
$
|
7.19
|
$
|
5.14
|
||||
Diluted
net income per share of common stock:
|
||||||||||||
Continuing
operations
|
$
|
1.85
|
$
|
1.67
|
$
|
6.46
|
$
|
4.64
|
||||
Discontinued
operations
|
0.02
|
–
|
0.12
|
–
|
||||||||
Diluted
net income per share of common stock
|
$
|
1.87
|
$
|
1.67
|
$
|
6.58
|
$
|
4.64
|
||||
Average
common shares outstanding:
|
||||||||||||
Basic
|
382
|
190
|
327
|
189
|
||||||||
Diluted
|
447
|
221
|
380
|
221
|
||||||||
Dividends
declared per share of common stock
|
$
|
0.3125
|
$
|
1.0625
|
$
|
0.9375
|
$
|
2.9375
|
||||
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2007
|
2006
|
|||||||
(In
Millions)
|
||||||||
Cash
flow from operating activities:
|
||||||||
Net
income
|
$
|
2,499
|
$
|
1,015
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Unrealized
losses on copper price protection program
|
212
|
–
|
||||||
Depreciation,
depletion and amortization
|
864
|
147
|
||||||
Minority
interests in net income of consolidated subsidiaries
|
738
|
115
|
||||||
Noncash
compensation and benefits
|
143
|
51
|
||||||
Losses
on early extinguishment and conversion of debt, net
|
171
|
32
|
||||||
Gains
on sales of assets
|
(85
|
)
|
(30
|
)
|
||||
Deferred
income taxes
|
(279
|
)
|
13
|
|||||
Other
|
21
|
25
|
||||||
(Increases)
decreases in working capital, excluding amounts
|
||||||||
acquired
from Phelps Dodge:
|
||||||||
Accounts
receivable
|
(299
|
)
|
131
|
|||||
Inventories
|
358
|
(182
|
)
|
|||||
Prepaid
expenses, restricted cash and other
|
–
|
(24
|
)
|
|||||
Accounts
payable and accrued liabilities
|
369
|
(77
|
)
|
|||||
Accrued
income taxes
|
215
|
(148
|
)
|
|||||
Net
cash provided by operating activities
|
4,927
|
1,068
|
||||||
Cash
flow from investing activities:
|
||||||||
Acquisition
of Phelps Dodge, net of cash acquired
|
(13,907
|
)
|
–
|
|||||
Phelps
Dodge capital expenditures
|
(834
|
)
|
–
|
|||||
PT
Freeport Indonesia capital expenditures
|
(273
|
)
|
(165
|
)
|
||||
Other
capital expenditures
|
(31
|
)
|
(13
|
)
|
||||
Sales
of assets and other
|
79
|
31
|
||||||
Net
cash used in investing activities
|
(14,966
|
)
|
(147
|
)
|
||||
Cash
flow from financing activities:
|
||||||||
Proceeds
from term loans under bank credit facility
|
12,450
|
–
|
||||||
Repayments
of term loans under bank credit facility
|
(10,900
|
)
|
–
|
|||||
Net
proceeds from sales of senior notes
|
5,880
|
–
|
||||||
Net
proceeds from sale of 6¾% Mandatory Convertible Preferred
Stock
|
2,803
|
–
|
||||||
Net
proceeds from sale of common stock
|
2,816
|
–
|
||||||
Proceeds
from other debt
|
412
|
125
|
||||||
Repayments
of other debt
|
(752
|
)
|
(322
|
)
|
||||
Purchases
of FCX common shares
|
–
|
(100
|
)
|
|||||
Cash
dividends paid:
|
||||||||
Common
stock
|
(301
|
)
|
(559
|
)
|
||||
Preferred
stock
|
(112
|
)
|
(45
|
)
|
||||
Minority
interests
|
(440
|
)
|
(114
|
)
|
||||
Net
(payments for) proceeds from exercised stock options
|
(15
|
)
|
14
|
|||||
Excess
tax benefit from exercised stock options
|
9
|
21
|
||||||
Bank
credit facilities fees and other
|
(250
|
)
|
(6
|
)
|
||||
Net
cash provided by (used in) financing activities
|
11,600
|
(986
|
)
|
|||||
Cash
included in assets held for sale
|
(91
|
)
|
–
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
1,470
|
(65
|
)
|
|||||
Cash
and cash equivalents at beginning of year
|
907
|
764
|
||||||
Cash
and cash equivalents at end of period
|
$
|
2,377
|
$
|
699
|
||||
Convertible
Perpetual
|
Mandatory
Convertible
|
Accumulated
|
Common
Stock
|
|||||||||||||||||||||||||||||||||
Preferred
Stock
|
Preferred
Stock
|
Common
Stock
|
Other
|
Held
in Treasury
|
||||||||||||||||||||||||||||||||
Number
|
Number
|
Number
|
Capital
in
|
Compre-
|
Number
|
|||||||||||||||||||||||||||||||
of
|
At
Par
|
of
|
At
Par
|
of
|
At
Par
|
Excess
of
|
Retained
|
hensive
|
of
|
At
|
Stockholders’
|
|||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Shares
|
Value
|
Par
Value
|
Earnings
|
Loss
|
Shares
|
Cost
|
Equity
|
|||||||||||||||||||||||||
(In
Millions)
|
||||||||||||||||||||||||||||||||||||
Balance
at December 31, 2006
|
1
|
$
|
1,100
|
-
|
$
|
-
|
310
|
$
|
31
|
$
|
2,668
|
$
|
1,415
|
$
|
(20
|
)
|
113
|
$
|
(2,749
|
)
|
$
|
2,445
|
||||||||||||||
Sale
of 6¾% mandatory convertible
|
||||||||||||||||||||||||||||||||||||
preferred
stock
|
-
|
-
|
29
|
2,875
|
-
|
-
|
(72
|
)
|
-
|
-
|
-
|
-
|
2,803
|
|||||||||||||||||||||||
Common
stock issued to acquire
|
||||||||||||||||||||||||||||||||||||
Phelps
Dodge
|
-
|
-
|
-
|
-
|
137
|
14
|
7,767
|
-
|
-
|
-
|
-
|
7,781
|
||||||||||||||||||||||||
Sale
of common stock
|
-
|
-
|
-
|
-
|
47
|
5
|
2,811
|
-
|
-
|
-
|
-
|
2,816
|
||||||||||||||||||||||||
Conversions
of 7% convertible senior notes
|
-
|
-
|
-
|
-
|
-
|
-
|
6
|
-
|
-
|
-
|
-
|
6
|
||||||||||||||||||||||||
Exercised
stock options, issued restricted
|
||||||||||||||||||||||||||||||||||||
stock
and other
|
-
|
-
|
-
|
-
|
2
|
-
|
89
|
-
|
-
|
-
|
-
|
89
|
||||||||||||||||||||||||
Stock-based
compensation costs
|
-
|
-
|
-
|
-
|
-
|
-
|
83
|
-
|
-
|
-
|
-
|
83
|
||||||||||||||||||||||||
Tax
benefit for stock option exercises
|
-
|
-
|
-
|
-
|
-
|
-
|
7
|
-
|
-
|
-
|
-
|
7
|
||||||||||||||||||||||||
Tender
of shares for exercised stock
|
||||||||||||||||||||||||||||||||||||
options
and restricted stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
(75
|
)
|
(75
|
)
|
||||||||||||||||||||||
Adjustment
to initially apply FIN 48
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4
|
-
|
-
|
-
|
4
|
||||||||||||||||||||||||
Dividends
on common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(419
|
)
|
-
|
-
|
-
|
(419
|
)
|
||||||||||||||||||||||
Dividends
on preferred stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(144
|
)
|
-
|
-
|
-
|
(144
|
)
|
||||||||||||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,499
|
-
|
-
|
-
|
2,499
|
||||||||||||||||||||||||
Other
comprehensive income
|
||||||||||||||||||||||||||||||||||||
(loss),
net of taxes:
|
||||||||||||||||||||||||||||||||||||
Investment
adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
-
|
2
|
||||||||||||||||||||||||
Translation
adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
11
|
-
|
-
|
11
|
||||||||||||||||||||||||
Change
in unrealized derivatives’
|
||||||||||||||||||||||||||||||||||||
fair
value
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3
|
)
|
-
|
-
|
(2
|
)
|
||||||||||||||||||||||
Reclass
to earnings
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5
|
-
|
-
|
5
|
||||||||||||||||||||||||
Amortization
of unrecognized
|
||||||||||||||||||||||||||||||||||||
amounts
(SFAS 158)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4
|
-
|
-
|
3
|
||||||||||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
19
|
-
|
-
|
19
|
||||||||||||||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,518
|
||||||||||||||||||||||||
Balance
at September 30, 2007
|
1
|
$
|
1,100
|
29
|
$
|
2,875
|
496
|
$
|
50
|
$
|
13,359
|
$
|
3,355
|
$
|
(1
|
)
|
114
|
$
|
(2,824
|
)
|
$
|
17,914
|
||||||||||||||
1.
|
GENERAL
INFORMATION
|
2.
|
ACQUISITION
OF PHELPS DODGE
|
Phelps
Dodge common stock outstanding and issuable at March 19,
2007
|
204.3
|
||
Exchange
offer ratio of FCX common stock for each Phelps Dodge common
share
|
0.67
|
||
Shares
of FCX common stock issued
|
136.9
|
||
Cash
consideration of $88.00 for each Phelps Dodge common share
|
$
|
17,979
|
a
|
Fair
value of FCX common stock issued
|
7,781
|
b
|
|
Transaction
and change of control costs and related employee benefits
|
131
|
||
Release
of FCX deferred tax asset valuation allowances
|
(90
|
)c
|
|
Total
purchase price
|
$
|
25,801
|
a.
|
Cash
consideration includes cash paid in lieu of any fractional shares
of FCX
stock.
|
b.
|
Measurement
of the common stock component of the purchase price based on a
weighted
average closing price of FCX’s common stock of $56.85 for the two days
prior to through two days after the public announcement of the
merger on
November 19, 2006.
|
c.
|
During
second-quarter 2007, FCX determined that, as a result of the acquisition
of Phelps Dodge, it will be able to realize certain U.S. tax credits
for
which it had previously not recognized any benefit. Recognition
of these
tax credits resulted in a $90 million reduction to the purchase
price.
|
Preliminary
|
|||||||||
Purchase
|
|||||||||
Historical
|
Fair
Value
|
Price
|
|||||||
Balances
|
Adjustments
|
Allocation
|
|||||||
Cash
and cash equivalents
|
$
|
4.2
|
$
|
–
|
$
|
4.2
|
|||
Inventories,
including mill and leach stockpilesa
|
0.9
|
2.8
|
3.7
|
||||||
Property,
plant and equipmentb
|
6.0
|
14.8
|
20.8
|
||||||
Other
assets
|
3.1
|
(0.3
|
)
|
2.8
|
|||||
Allocation
to goodwillc
|
–
|
6.5
|
6.5
|
d
|
|||||
Total
assets
|
14.2
|
23.8
|
38.0
|
||||||
Deferred
income taxes (current and long-term)e
|
(0.7
|
)
|
(6.1
|
)
|
(6.8
|
)
|
|||
Other
liabilities
|
(4.1
|
)
|
(0.1
|
)
|
(4.2
|
)
|
|||
Minority
interests
|
(1.2
|
)
|
–
|
(1.2
|
)
|
||||
Total
|
$
|
8.2
|
$
|
17.6
|
$
|
25.8
|
a.
|
Inventories
and stockpiles were valued based on estimated selling prices less
selling
and completion costs and a reasonable profit allowance and through
the use
of estimated discounted cash flows, as applicable. Application
of fair
value principles to metal inventories and stockpiles resulted in
a
significantly higher value being applied to inventory compared
with the
historical cost recorded by Phelps Dodge. Consequently, when
|
b.
|
Includes
amounts based on estimated discounted cash flows from future production
of
proven and probable reserves and for values of properties beyond
proven
and probable reserves (VBPP). Carrying amounts assigned to proven
and
probable reserves are depleted using the unit of production method
over
the estimated lives of the reserves. Carrying amounts assigned
to VBPP are
not charged to income until the VBPP becomes associated with additional
proven and probable reserves and are being produced or are determined
to
be impaired.
|
c.
|
During
the second and third quarters of 2007, adjustments to the preliminary
fair
values assigned to assets acquired and liabilities assumed from
Phelps
Dodge and adjustments to the purchase price resulted in an approximate
$0.9 billion reduction in FCX’s initial estimate of goodwill. Additional
adjustments, which could be significant, are expected in future
periods
until FCX finalizes its valuation of the assets acquired and liabilities
assumed. None of the $6.5 billion of goodwill is deductible for
tax
purposes.
|
d.
|
Includes
$165 million of goodwill associated with PDIC that has been included
in
assets held for sale at September 30, 2007 (refer to Note 4 for
further
discussion).
|
e.
|
Deferred
income taxes have been recognized based on the estimated fair value
adjustments to net assets.
|
·
|
The
combined company’s increased scale of operations, management depth and
strengthened cash flow provide an improved platform to capitalize
on
growth opportunities in the global
market.
|
·
|
The
combined company is well positioned to benefit from the positive
copper
market at a time when there is a scarcity of large-scale copper
development projects combined with strong global demand for
copper.
|
·
|
The
combined company has long-lived, geographically diverse reserves,
totaling
approximately 77 billion pounds of copper, 38 million ounces of
gold and 2
billion pounds of molybdenum, net of minority interests as of December
31,
2006. Additionally, the combined company has rights to significant
mineralized material that could add to
reserves.
|
·
|
The
combined company has exploration rights with significant potential
in
copper regions around the world.
|
Historical
|
||||||||||||
Phelps
|
Pro
forma
|
Pro
forma
|
||||||||||
FCX
|
Dodgea
|
Adjustments
|
Consolidated
|
|||||||||
Three
Months Ended September 30, 2007
|
||||||||||||
Revenues
|
$
|
5,066
|
N/A
|
$
|
–
|
$
|
5,066
|
b
|
||||
Operating
income
|
$
|
1,877
|
N/A
|
$
|
163
|
$
|
2,040
|
b,c
|
||||
Income
from continuing operations before
|
||||||||||||
income
taxes and minority interests
|
$
|
1,786
|
N/A
|
$
|
163
|
$
|
1,949
|
b,c,e,g
|
||||
Income
from continuing operations applicable
|
||||||||||||
to
common stock
|
$
|
763
|
N/A
|
$
|
103
|
$
|
866
|
b,c,e,g
|
||||
Diluted
income per share of common stock
|
||||||||||||
from
continuing operations
|
$
|
1.85
|
N/A
|
N/A
|
$
|
2.07
|
b,c,e,g
|
|||||
Diluted
weighted average shares outstanding
|
447
|
N/A
|
N/A
|
448
|
h
|
|||||||
Three
Months Ended September 30, 2006
|
||||||||||||
Revenues
|
$
|
1,636
|
$
|
3,143
|
$
|
–
|
$
|
4,779
|
b,f
|
|||
Operating
income
|
$
|
735
|
$
|
1,319
|
$
|
(372
|
)
|
$
|
1,682
|
b,c,f
|
||
Income
from continuing operations before
|
||||||||||||
income
taxes and minority interests
|
$
|
716
|
$
|
1,454
|
$
|
(549
|
)
|
$
|
1,621
|
b,c,e,f
|
||
Income
from continuing operations applicable
|
||||||||||||
to
common stock
|
$
|
351
|
$
|
883
|
$
|
(443
|
)
|
$
|
791
|
b,c,e,f
|
||
Diluted
income per share of common stock
|
||||||||||||
from
continuing operations
|
$
|
1.67
|
$
|
4.34
|
N/A
|
$
|
1.93
|
b,c,e,f
|
||||
Diluted
weighted average shares outstanding
|
221
|
204
|
N/A
|
445
|
h
|
|||||||
Nine
Months Ended September 30, 2007
|
||||||||||||
Revenues
|
$
|
12,755
|
$
|
2,294
|
$
|
–
|
$
|
15,049
|
b
|
|||
Operating
income
|
$
|
5,403
|
$
|
793
|
$
|
(182
|
)
|
$
|
6,014
|
b,c
|
||
Income
from continuing operations before
|
||||||||||||
income
taxes and minority interests
|
$
|
5,058
|
$
|
837
|
$
|
(249
|
)
|
$
|
5,646
|
b,c,d,e,g
|
||
Income
from continuing operations applicable
|
||||||||||||
to
common stock
|
$
|
2,311
|
$
|
493
|
$
|
(219
|
)
|
$
|
2,585
|
b,c,d,e,g
|
||
Diluted
income per share of common stock
|
||||||||||||
from
continuing operations
|
$
|
6.46
|
N/A
|
N/A
|
$
|
6.21
|
b,c,d,e,g
|
|||||
Diluted
weighted average shares outstanding
|
380
|
N/A
|
N/A
|
447
|
h
|
Historical
|
||||||||
Phelps
|
Pro
forma
|
Pro
forma
|
||||||
FCX
|
Dodgea
|
Adjustments
|
Consolidated
|
Nine
Months Ended September 30, 2006
|
||||||||||||
Revenues
|
$
|
4,148
|
$
|
7,828
|
$
|
–
|
$
|
11,976
|
b,f
|
|||
Operating
income
|
$
|
2,006
|
$
|
2,823
|
$
|
(1,729
|
)
|
$
|
3,100
|
b,c,f
|
||
Income
from continuing operations before
|
||||||||||||
income
taxes and minority interests
|
$
|
1,966
|
$
|
3,011
|
$
|
(2,322
|
)
|
$
|
2,655
|
b,c,e,f
|
||
Income
from continuing operations applicable
|
||||||||||||
to
common stock
|
$
|
970
|
$
|
1,689
|
$
|
(1,771
|
)
|
$
|
888
|
b,c,e,f
|
||
Diluted
income per share of common stock
|
||||||||||||
from
continuing operations
|
$
|
4.64
|
$
|
8.31
|
N/A
|
$
|
2.33
|
b,c,e,f
|
||||
Diluted
weighted average shares outstanding
|
221
|
203
|
N/A
|
406
|
h
|
a.
|
For
the nine months ended September 30, 2007, represents the results
of Phelps
Dodge’s operations from January 1, 2007, through March 19, 2007. Beginning
March 20, 2007, the results of Phelps Dodge’s operations are included in
FCX’s consolidated financial
information.
|
b.
|
Includes
charges to revenues for mark-to-market accounting adjustments on
copper
price protection programs totaling $44 million ($26 million to
net income
or $0.06 per share) for third-quarter 2007, $232 million ($142
million to
net income or $0.32 per share) for the nine months ended September
30,
2007, $145 million ($110 million to net income or $0.25 per share)
for
third-quarter 2006 and $1.2 billion ($923 million to net income
or $2.28
per share) for the nine months ended September 30,
2006.
|
c.
|
Includes
charges associated with the impact of the increases in the carrying
values
of acquired metal inventories (including mill and leach stockpiles)
and
property, plant and equipment totaling $283 million ($179 million
to net
income or $0.40 per share) for third-quarter 2007, $1.3 billion
($835
million to net income or $1.87 per share) for the nine months ended
September 30, 2007, $376 million ($237 million to net income or
$0.53 per
share) for third-quarter 2006, and $1.7 billion ($1.1 billion to
net
income or $2.70 per share) for the nine months ended September
30,
2006.
|
d.
|
Excludes
net losses on early extinguishment of debt totaling $88 million
($75
million to net income or $0.17 per share) for financing transactions
related to the acquisition of Phelps
Dodge.
|
e.
|
Includes
net interest expense associated with debt issued in connection
with the
acquisition of Phelps Dodge totaling $129 million ($109 million
to net
income or $0.24 per share) for third-quarter 2007, $469 million
($399
million to net income or $0.89 per share) for the nine months ended
September 30, 2007, $179 million ($161 million to net income or
$0.36 per
share) for third-quarter 2006, and $597 million ($537 million to
net
income or $1.32 per share) for the nine months ended September
30,
2006.
|
f.
|
Includes
charges to revenues totaling $13 million ($7 million to net income
or
$0.02 per share) associated with the redemption of FCX’s
Silver-Denominated Preferred Stock for third-quarter 2006, and
$82 million
($44 million to net income or $0.11 per share) associated with
the
redemption of FCX’s Gold-Denominated Preferred Stock, Series II and
Silver-Denominated Preferred Stock for the nine months ended September
30,
2006.
|
g.
|
Includes
gains on the sales of marketable securities totaling $47 million
($29
million to net income or $0.06 per share) in third-quarter 2007
and $85
million ($52 million to net income or $0.12 per share) for the
nine months
ended September 30, 2007.
|
h.
|
Estimated
pro forma diluted weighted average shares outstanding for the quarters
and
nine months ended September 30, 2007 and 2006, follow (in
millions):
|
Nine
Months Ended
|
|||||||||
Third-Quarter
|
September
30,
|
||||||||
2007
|
2006
|
2007
|
2006
|
||||||
Average
number of basic shares of FCX common stock
|
|||||||||
outstanding
prior to the acquisition of Phelps Dodge
|
199
|
190
|
198
|
189
|
|||||
Shares
of FCX common stock issued in the acquisition
|
137
|
137
|
137
|
137
|
|||||
Sale
of FCX sharesa
|
47
|
47
|
47
|
47
|
|||||
Mandatory
Convertible Preferred Stocka
|
39
|
39
|
39
|
–
|
b
|
||||
Other
dilutive securities
|
26
|
32
|
26
|
33
|
|||||
Pro
forma average number of common shares outstanding
|
448
|
445
|
447
|
406
|
a.
|
Refer
to Notes 9 and 12 for additional
information.
|
b.
|
Not
dilutive for the nine months ended September 30,
2006.
|
3.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES
|
4.
|
DISCONTINUED
OPERATIONS
|
Third-Quarter
|
Nine
Months Ended
|
||||||
2007
|
September
30, 2007
|
||||||
Revenues
|
$
|
376
|
$
|
797
|
|||
Operating
income
|
$
|
18
|
$
|
70
|
|||
Provision
for income taxes
|
$
|
5
|
$
|
20
|
|||
Income
from discontinued operations
|
$
|
12
|
$
|
44
|
Assets
held for sale:
|
||||
Cash
and cash equivalents
|
$
|
91
|
||
Accounts
receivable
|
273
|
|||
Inventories
|
258
|
|||
Property,
plant and equipment, net
|
234
|
|||
Intangibles
|
164
|
|||
Goodwill
|
165
|
|||
Other
assets
|
46
|
|||
$
|
1,231
|
|||
Liabilities
related to assets held for sale:
|
||||
Accounts
payable and accrued liabilities
|
$
|
263
|
||
Debt
and short-term borrowings
|
71
|
|||
Deferred
income taxes
|
103
|
|||
Other
liabilities and deferred credits
|
35
|
|||
$
|
472
|
5.
|
PENSION
AND POSTRETIREMENT
BENEFITS
|
Phelps
|
|||||||||||||||||||||
FCX
|
PT
Freeport Indonesia
|
Atlantic
Copper
|
Dodge
|
||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
2007
|
|||||||||||||||
Service
cost
|
$
|
1
|
$
|
–
|
$
|
1
|
$
|
1
|
$
|
–
|
$
|
–
|
$
|
7
|
|||||||
Interest
cost
|
–
|
1
|
2
|
2
|
1
|
2
|
22
|
||||||||||||||
Expected
return on plan assets
|
–
|
–
|
(1
|
)
|
(1
|
)
|
–
|
–
|
(30
|
)
|
|||||||||||
Amortization
of prior service cost
|
1
|
1
|
1
|
–
|
–
|
–
|
–
|
||||||||||||||
Net
periodic benefit cost
|
$
|
2
|
$
|
2
|
$
|
3
|
$
|
2
|
$
|
1
|
$
|
2
|
$
|
(1
|
)
|
Phelps
|
|||||||||||||||||||||
FCX
|
PT
Freeport Indonesia
|
Atlantic
Copper
|
Dodge
|
||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
2007
|
|||||||||||||||
Service
cost
|
$
|
2
|
$
|
–
|
$
|
4
|
$
|
3
|
$
|
–
|
$
|
–
|
$
|
14
|
|||||||
Interest
cost
|
1
|
2
|
5
|
4
|
3
|
4
|
47
|
||||||||||||||
Expected
return on plan assets
|
–
|
–
|
(3
|
)
|
(2
|
)
|
–
|
–
|
(64
|
)
|
|||||||||||
Amortization
of prior service cost
|
3
|
3
|
1
|
1
|
–
|
–
|
–
|
||||||||||||||
Amortization
of net actuarial loss
|
–
|
–
|
–
|
–
|
1
|
1
|
–
|
||||||||||||||
Net
periodic benefit cost
|
$
|
6
|
$
|
5
|
$
|
7
|
$
|
6
|
$
|
4
|
$
|
5
|
$
|
(3
|
)
|
6.
|
EARNINGS
PER SHARE
|
Nine
Months Ended
|
|||||||||||||
Third-Quarter
|
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Income
from continuing operations
|
$
|
826
|
$
|
366
|
$
|
2,455
|
$
|
1,015
|
|||||
Preferred
dividends
|
(63
|
)
|
(15
|
)
|
(144
|
)
|
(45
|
)
|
|||||
Income
from continuing operations applicable
|
|||||||||||||
to
common stock
|
763
|
351
|
2,311
|
970
|
|||||||||
Plus
income impact of assumed conversion of:
|
|||||||||||||
5½%
Convertible Perpetual Preferred Stock
|
15
|
15
|
45
|
45
|
|||||||||
6¾%
Mandatory Convertible Preferred Stock
|
48
|
–
|
99
|
–
|
|||||||||
7%
Convertible Senior Notes
|
–
|
3
|
–
|
13
|
|||||||||
Diluted
income from continuing operations applicable
|
|||||||||||||
to
common stock
|
826
|
369
|
2,455
|
1,028
|
|||||||||
Income
from discontinued operations
|
12
|
–
|
44
|
–
|
|||||||||
Diluted
net income applicable to common stock
|
$
|
838
|
$
|
369
|
$
|
2,499
|
$
|
1,028
|
|||||
Weighted
average common shares outstanding
|
382
|
190
|
327
|
189
|
|||||||||
Add
shares issuable upon conversion, exercise or vesting of:
|
|||||||||||||
5½%
Convertible Perpetual Preferred Stock
|
23
|
22
|
23
|
22
|
|||||||||
6¾%
Mandatory Convertible Preferred Stock
|
39
|
–
|
27
|
–
|
|||||||||
7%
Convertible Senior Notes
|
–
|
7
|
–
|
9
|
|||||||||
Dilutive
stock options
|
2
|
1
|
2
|
1
|
|||||||||
Restricted
stock
|
1
|
1
|
1
|
–
|
|||||||||
Weighted
average common shares outstanding for purposes
|
|||||||||||||
of
calculating diluted net income per share
|
447
|
221
|
380
|
221
|
|||||||||
Diluted
net income per share of common stock:
|
|||||||||||||
Continuing
operations
|
$
|
1.85
|
$
|
1.67
|
$
|
6.46
|
$
|
4.64
|
|||||
Discontinued
operations
|
0.02
|
–
|
0.12
|
–
|
|||||||||
Diluted
net income per share of common stock
|
$
|
1.87
|
$
|
1.67
|
$
|
6.58
|
$
|
4.64
|
Nine
Months Ended
|
|||||||||||||
Third-Quarter
|
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Weighted
average outstanding options
|
–
|
1,004
|
389
|
896
|
|||||||||
Weighted
average exercise price
|
N/A
|
$
|
63.77
|
$
|
65.96
|
$
|
63.77
|
7.
|
INVENTORIES
|
September
30,
|
December
31,
|
||||||
2007
|
2006
|
||||||
Mining
Operations:
|
|||||||
Raw
materials
|
$
|
1
|
$
|
–
|
|||
Work-in-process
|
64
|
11
|
|||||
Finished
goodsa
|
845
|
4
|
|||||
Mill
and leach stockpiles
|
614
|
–
|
|||||
Atlantic
Copper:
|
|||||||
Concentrates
– First in, first out (FIFO)
|
153
|
189
|
|||||
Work-in-process
– FIFO
|
305
|
168
|
|||||
Finished
goods – FIFO
|
14
|
12
|
|||||
Total
product inventories
|
1,996
|
384
|
|||||
Total
materials and supplies, netb
|
753
|
340
|
|||||
Total
inventories
|
$
|
2,749
|
$
|
724
|
|||
a.
|
Finished
goods inventory associated with mining operations primarily includes
concentrates and cathodes.
|
b.
|
Materials
and supplies inventories are net of obsolescence reserves totaling
$16
million at both September 30, 2007, and December 31,
2006.
|
8.
|
TRUST
ASSETS
|
Global
reclamation and remediation
|
$
|
433
|
|
Financial
assurance
|
103
|
a
|
|
Non-qualified
retirement benefits
|
46
|
||
Change
of control
|
27
|
||
Total
trust assets
|
$
|
609
|
a.
|
Represents
legally restricted funds for the use of asset retirement obligation
activities at Chino, Tyrone and Cobre (refer to Note 14 for further
discussion of financial assurance requirements for these
operations).
|
9.
|
DEBT
AND FINANCING TRANSACTIONS
|
·
|
During
first-quarter 2007, FCX sold 47.15 million shares of common stock
at
$61.25 per share for net proceeds of approximately $2.8 billion
and 28.75
million shares of 6¾% Mandatory Convertible Preferred Stock for net
proceeds of approximately $2.8 billion (refer to Note 12 for further
discussion of the 6¾% Mandatory Convertible Preferred Stock). The net
proceeds from these transactions were used to reduce borrowings
under the
$11.5 billion senior credit facility, with $2.5 billion used to
fully
repay the senior term loan due March 2012 and the remaining $3.1
billion
to partially repay the senior term loan due March 2014 (the Tranche
B term
loan).
|
·
|
During
second-quarter 2007, FCX prepaid an additional $1.9 billion of
debt under
the Tranche B term loan.
|
·
|
During
third-quarter 2007, FCX refinanced the remaining $2.5 billion balance
outstanding under the Tranche B term loan with proceeds from a
new senior
term loan due March 2012 (the Tranche A term
loan).
|
·
|
Also
during third-quarter 2007, FCX prepaid $0.9 billion of debt under
the
Tranche A term loan.
|
December
31,
|
Borrowings/
|
September
30,
|
||||||||||
2006
|
Additions
|
Repayments
|
2007
|
|||||||||
$11.5
billion senior credit facility:
|
||||||||||||
Senior
term loan due 2012
|
$
|
–
|
$
|
2.5
|
a
|
$
|
(2.5
|
)
|
$
|
–
|
||
Tranche
B term loan due 2014
|
–
|
7.5
|
a
|
(7.5
|
)
|
–
|
||||||
Tranche
A term loan due 2012
|
–
|
2.5
|
(0.9
|
)
|
1.6
|
|||||||
$1.5
billion revolving credit facilities
|
–
|
–
|
–
|
–
|
||||||||
Senior
Notes:
|
||||||||||||
10⅛%
Notes due 2010
|
0.3
|
–
|
(0.3
|
)
|
–
|
|||||||
6⅞%
Notes due 2014
|
0.3
|
–
|
–
|
0.3
|
||||||||
8¼%
Notes due 2015
|
–
|
1.5
|
a
|
–
|
1.5
|
|||||||
8⅜%
Notes due 2017
|
–
|
3.5
|
a
|
–
|
3.5
|
|||||||
Senior
floating rate notes due 2015
|
–
|
1.0
|
a
|
–
|
1.0
|
|||||||
Phelps
Dodge Senior Notes
|
–
|
0.7
|
(0.1
|
)
|
0.6
|
|||||||
Other
|
0.1
|
0.3
|
(0.2
|
)
|
0.2
|
|||||||
$
|
0.7
|
$
|
19.5
|
$
|
(11.5
|
)
|
$
|
8.7
|
||||
a.
|
Represents
borrowings used to finance the acquisition of Phelps
Dodge.
|
10.
|
INCOME
TAXES
|
Unrecognized
|
|||||||||
Tax
Benefit
|
Interest
|
Penalties
|
|||||||
Balance
at beginning of period
|
$
|
41
|
$
|
11
|
$
|
–
|
|||
Additions:
|
|||||||||
Acquisition
of Phelps Dodge
|
220
|
6
|
2
|
||||||
Prior
year tax positions
|
1
|
1
|
–
|
||||||
Balance,
March 31, 2007
|
$
|
262
|
$
|
18
|
$
|
2
|
Jurisdiction
|
Years
Under Examination
|
Additional
Open Years
|
U.S.
Federal
|
2003-2005
|
2006
|
Indonesia
|
2005-2006
|
2002-2004
|
Peru
|
2003
|
1999-2002,
2004-2006
|
Chile
|
–
|
2004-2006
|
Arizona
|
–
|
2002-2006
|
New
Mexico
|
–
|
2004-2006
|
11.
|
INTEREST
EXPENSE, NET
|
12.
|
STOCKHOLDERS’
EQUITY AND STOCK AWARD
PLANS
|
13.
|
ENVIRONMENTAL,
RECLAMATION AND CLOSURE
|
Balance,
beginning of period
|
$
|
–
|
|
Liabilities
assumed in acquisition of Phelps Dodge
|
390
|
a
|
|
Spending
|
(46
|
)
|
|
Accretion
expense
|
4
|
||
Balance,
end of period
|
$
|
348
|
a.
|
The
fair value of environmental obligations at the acquisition date
was
estimated based on projected cash flows, an estimated long-term
annual
inflation rate of 2.25 percent and a discount rate based on FCX’s
estimated credit-adjusted risk-free interest rate of 7.8
percent.
|
Balance,
beginning of period
|
$
|
–
|
|
Liabilities
assumed in acquisition of Phelps Dodge
|
463
|
||
Revisions
to cash flow estimates
|
76
|
a
|
|
Spending
|
(27
|
)
|
|
Accretion
expense
|
15
|
||
Balance,
end of period
|
$
|
527
|
a.
|
During
third-quarter 2007, Chino submitted updated third-party closure
cost
estimates to the state of New Mexico as part of the permit renewal
process, and as a result, FCX revised its cash flow estimates and
increased its ARO by $73 million for the Chino mine. Additional
adjustments may be required based upon the agency’s review of the updated
closure plan and any permit conditions imposed by the state of
New Mexico.
In addition, in October 2007, Tyrone submitted updated third-party
closure
estimates to the state of New Mexico, which may result in further
increases to AROs.
|
14.
|
CONTINGENCIES
|
15.
|
COMMITMENTS
AND GUARANTEES
|
Less
Than
|
After
|
|||||||||||||
Total
|
1
Year
|
Years
2-3
|
Years
4-5
|
5
Years
|
||||||||||
Take-or-pay
obligations
|
$
|
727
|
$
|
426
|
$
|
210
|
$
|
61
|
$
|
30
|
16.
|
DERIVATIVE
FINANCIAL INSTRUMENTS
|
Expired
Positions
|
|||||||||||||
Open
Positions
|
Hedged
|
||||||||||||
Open
|
Gain/
|
Sales
Price
|
Gain/
|
||||||||||
Position
|
(Loss)a
|
Maturity
|
Per
Unit
|
(Loss)a
|
|||||||||
Copper
price protection (lbs.)
|
1,216
|
$
|
(212
|
)
|
December
2007
|
$
|
–
|
$
|
–
|
||||
Copper
fixed-price rod sales (lbs.)
|
75
|
$
|
4
|
December
2009
|
3.44
|
$
|
75
|
||||||
Metal
purchase (lbs.)
|
57
|
$
|
–
|
October
2009
|
–
|
$
|
8
|
a.
|
Represents
gains (losses) recognized in the condensed consolidated statements
of
income from March 20, 2007, through September 30,
2007.
|
17.
|
BUSINESS
SEGMENTS
|
(In
Millions)
|
North
America
|
South
America
|
Indonesia
|
||||||||||||||||||||||
Other
|
Total
|
Other
|
Total
|
Atlantic
|
|||||||||||||||||||||
Primary
|
North
|
North
|
South
|
South
|
Copper
|
Corporate,
|
|||||||||||||||||||
Manufac-
|
Molyb-
|
American
|
American
|
Cerro
|
American
|
American
|
Smelting
|
Other
&
|
FCX
|
||||||||||||||||
Three
Months Ended September 30, 2007
|
Morenci
|
turing
|
denum
|
Mining
|
Mining
|
Verde
|
Mining
|
Mining
|
Grasberg
|
&
Refining
|
Eliminations
|
Total
|
|||||||||||||
Revenues:
|
|||||||||||||||||||||||||
Unaffiliated
customers
|
$
|
49
|
1,726
|
519
|
713
|
3,007
|
339
|
460
|
799
|
570
|
a
|
688
|
2
|
5,066
|
|||||||||||
Intersegment
|
632
|
61
|
-
|
(689
|
)
|
4
|
263
|
287
|
550
|
267
|
-
|
(821
|
)
|
-
|
|||||||||||
Production
and deliveryd
|
372
|
1,765
|
380
|
(352
|
)
|
2,165
|
199
|
256
|
455
|
351
|
674
|
(983
|
)
|
2,662
|
|||||||||||
Depreciation,
depletion and amortizationd
|
91
|
6
|
22
|
87
|
206
|
41
|
53
|
94
|
43
|
8
|
5
|
356
|
|||||||||||||
Exploration
and research expenses
|
-
|
-
|
1
|
2
|
3
|
-
|
-
|
-
|
-
|
-
|
37
|
40
|
|||||||||||||
Selling,
general and administrative expenses
|
-
|
-
|
4
|
3
|
7
|
-
|
-
|
-
|
44
|
5
|
75
|
131
|
|||||||||||||
Operating
incomed
|
$
|
218
|
16
|
112
|
b
|
284
|
630
|
362
|
438
|
800
|
399
|
1
|
47
|
1,877
|
|||||||||||
Interest
expense, net
|
$
|
-
|
2
|
-
|
-
|
2
|
3
|
-
|
3
|
3
|
6
|
141
|
155
|
||||||||||||
Equity
in affiliated companies’ net earnings
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5
|
5
|
||||||||||||
Provision
for income taxes
|
$
|
-
|
-
|
-
|
-
|
-
|
121
|
143
|
264
|
141
|
-
|
248
|
653
|
||||||||||||
Minority
interests in net income of consolidated subsidiaries
|
$
|
-
|
-
|
-
|
-
|
-
|
133
|
136
|
269
|
-
|
-
|
38
|
307
|
||||||||||||
Total
assets at September 30, 2007
|
$
|
4,780
|
787
|
1,944
|
9,390
|
16,901
|
5,378
|
5,267
|
10,645
|
3,968
|
1,104
|
8,771
|
c
|
41,389
|
|||||||||||
Capital
expenditures
|
$
|
81
|
3
|
8
|
154
|
246
|
13
|
16
|
29
|
98
|
10
|
83
|
c
|
466
|
|||||||||||
Three
Months Ended September 30, 2006
|
|||||||||||||||||||||||||
Revenues:
|
|||||||||||||||||||||||||
Unaffiliated
customers
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,021
|
a
|
613
|
2
|
1,636
|
|||||||||||
Intersegment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
241
|
-
|
(241
|
)
|
-
|
||||||||||||
Production
and delivery
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
363
|
581
|
(152
|
)
|
792
|
||||||||||||
Depreciation,
depletion and amortization
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
50
|
8
|
2
|
60
|
|||||||||||||
Exploration
and research expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4
|
4
|
|||||||||||||
Selling,
general and administrative expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
36
|
4
|
5
|
45
|
|||||||||||||
Operating
income
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
813
|
20
|
(98
|
)
|
735
|
|||||||||||
Interest
expense, net
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
7
|
10
|
18
|
||||||||||||
Equity
in affiliated companies’ net earnings
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
2
|
||||||||||||
Provision
for income taxes
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
271
|
-
|
33
|
304
|
||||||||||||
Minority
interests in net income of consolidated subsidiaries
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
46
|
46
|
||||||||||||
Total
assets at September 30, 2006
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,940
|
1,045
|
295
|
5,280
|
||||||||||||
Capital
expenditures
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
60
|
7
|
1
|
68
|
a.
|
Includes
PT Freeport Indonesia’s sales to PT Smelting totaling $353 million in
third-quarter 2007 and $458 million in third-quarter
2006.
|
b.
|
Operating
income for Primary Molybdenum for third-quarter 2007 included a
$14
million loss primarily resulting from the difference between raw
material
purchases and average contractual selling prices, and was also
net of a
$44 million intercompany profit elimination associated with purchases
and
sales between Henderson and other molybdenum conversion facilities.
Profits are deferred until sales are made to third
parties.
|
c.
|
Includes
total assets of $1.2 billion at September 30, 2007, and capital
expenditures of $7 million for third-quarter 2007 associated with
discontinued operations (refer to Note
4).
|
d.
|
Operating
income includes purchase accounting adjustments primarily associated
with
the impacts of the increases in the carrying values of acquired
metal
inventories and stockpiles and property, plant and equipment. Following
provides the impacts of these adjustments on FCX’s segments and operating
divisions in third-quarter 2007:
|
Production
and delivery
|
$
|
104
|
-
|
40
|
30
|
174
|
42
|
34
|
76
|
N/A
|
N/A
|
27
|
277
|
|||||||||||
Depreciation,
depletion and amortization
|
58
|
-
|
9
|
48
|
115
|
21
|
19
|
40
|
N/A
|
N/A
|
-
|
155
|
||||||||||||
Purchase
accounting adjustments
|
$
|
162
|
-
|
49
|
78
|
289
|
63
|
53
|
116
|
N/A
|
N/A
|
27
|
432
|
(In
Millions)
|
North
America
|
South
America
|
Indonesia
|
||||||||||||||||||||||
Other
|
Total
|
Other
|
Total
|
Atlantic
|
|||||||||||||||||||||
Primary
|
North
|
North
|
South
|
South
|
Copper
|
Corporate,
|
|||||||||||||||||||
Manufac-
|
Molyb-
|
American
|
American
|
Cerro
|
American
|
American
|
Smelting
|
Other
&
|
FCX
|
||||||||||||||||
Nine
Months Ended September 30, 2007
|
Morenci
|
turing
|
denum
|
Mining
|
Mining
|
Verde
|
Mining
|
Mining
|
Grasberg
|
&
Refining
|
Eliminations
|
Total
|
|||||||||||||
Revenues:
|
|||||||||||||||||||||||||
Unaffiliated
customers
|
$
|
72
|
3,760
|
1,034
|
1,139
|
6,005
|
510
|
1,158
|
1,668
|
3,317
|
a
|
1,761
|
4
|
12,755
|
|||||||||||
Intersegment
|
1,172
|
119
|
-
|
(1,283
|
)
|
8
|
658
|
517
|
1,175
|
991
|
-
|
(2,174
|
)
|
-
|
|||||||||||
Production
and deliveryd
|
705
|
3,836
|
838
|
(780
|
)
|
4,599
|
343
|
531
|
874
|
1,064
|
1,709
|
(2,141
|
)
|
6,105
|
|||||||||||
Depreciation,
depletion and amortizationd
|
165
|
12
|
47
|
164
|
388
|
85
|
173
|
258
|
158
|
27
|
15
|
846
|
|||||||||||||
Exploration
and research expenses
|
-
|
-
|
1
|
5
|
6
|
-
|
-
|
-
|
-
|
-
|
81
|
87
|
|||||||||||||
Selling,
general and administrative expenses
|
-
|
-
|
9
|
6
|
15
|
-
|
-
|
-
|
133
|
15
|
151
|
314
|
|||||||||||||
Operating
income (loss)d
|
$
|
374
|
31
|
139
|
b
|
461
|
1,005
|
740
|
971
|
1,711
|
2,953
|
10
|
(276
|
)
|
5,403
|
||||||||||
Interest
expense, net
|
$
|
-
|
3
|
-
|
-
|
3
|
7
|
(1
|
)
|
6
|
10
|
20
|
347
|
386
|
|||||||||||
Equity
in affiliated companies’ net earnings
|
$
|
-
|
-
|
-
|
1
|
1
|
-
|
-
|
-
|
-
|
-
|
16
|
17
|
||||||||||||
Provision
for income taxes
|
$
|
-
|
-
|
-
|
-
|
-
|
266
|
318
|
584
|
1,037
|
-
|
254
|
1,875
|
||||||||||||
Minority
interests in net income of consolidated subsidiaries
|
$
|
-
|
-
|
-
|
-
|
-
|
259
|
283
|
542
|
-
|
-
|
186
|
728
|
||||||||||||
Capital
expenditures
|
$
|
156
|
8
|
21
|
415
|
600
|
31
|
34
|
65
|
273
|
31
|
169
|
c
|
1,138
|
|||||||||||
Nine
Months Ended September 30, 2006
|
|||||||||||||||||||||||||
Revenues:
|
|||||||||||||||||||||||||
Unaffiliated
customers
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,421
|
a
|
1,722
|
5
|
4,148
|
|||||||||||
Intersegment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
673
|
-
|
(673)
|
-
|
|||||||||||||
Production
and delivery
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
931
|
1,633
|
(689)
|
1,875
|
|||||||||||||
Depreciation,
depletion and amortization
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
118
|
23
|
6
|
147
|
|||||||||||||
Exploration
and research expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
9
|
9
|
|||||||||||||
Selling,
general and administrative expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
174
|
11
|
(74)
|
111
|
|||||||||||||
Operating
income
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,871
|
55
|
80
|
2,006
|
||||||||||||
Interest
expense, net
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6
|
17
|
39
|
62
|
||||||||||||
Equity
in affiliated companies’ net earnings
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
7
|
7
|
||||||||||||
Provision
for income taxes
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
653
|
-
|
183
|
836
|
||||||||||||
Minority
interests in net income of consolidated subsidiaries
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
115
|
115
|
||||||||||||
Capital
expenditures
|
$
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
165
|
13
|
-
|
178
|
a.
|
Includes
PT Freeport Indonesia’s sales to PT Smelting totaling $1.6 billion for the
first nine months of 2007 and $1.1 billion for the first nine months
of
2006.
|
b.
|
Operating
income for Primary Molybdenum from March 20, 2007, through September
30,
2007, included a $67 million loss primarily resulting from the
difference
between raw material purchases and average contractual selling
prices, and
was also net of a $93 million intercompany profit elimination associated
with purchases and sales between Henderson and other molybdenum
conversion
facilities. Profits are deferred until sales are made to third
parties.
|
c.
|
Includes
capital expenditures of $13 million for the first nine months of
2007
associated with discontinued operations (refer to Note
4).
|
d.
|
Operating
income (loss) includes purchase accounting adjustments primarily
associated with the impacts of increases in the carrying values
of
acquired metal inventories and stockpiles and property, plant and
equipment. Following provides the impacts of these adjustments
on FCX’s
segments and operating divisions for the first nine months of
2007:
|
Production
and delivery
|
$
|
188
|
-
|
120
|
165
|
473
|
62
|
80
|
142
|
N/A
|
N/A
|
12
|
627
|
|||||||||||
Depreciation,
depletion and amortization
|
121
|
-
|
21
|
96
|
238
|
42
|
89
|
131
|
N/A
|
N/A
|
-
|
369
|
||||||||||||
Purchase
accounting adjustments
|
$
|
309
|
-
|
141
|
261
|
711
|
104
|
169
|
273
|
N/A
|
N/A
|
12
|
996
|
FREEPORT-McMoRan
COPPER & GOLD INC.:
|
2007
|
|||||||||||||||
First
|
Second
|
Third
|
Fourth
|
||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Total
|
|||||||||||
(In
millions)
|
Actual
|
Actual
|
Actual
|
Estimate
|
Estimate
|
||||||||||
Production
and delivery costs
|
$
|
96
|
$
|
269
|
$
|
291
|
$
|
100
|
$
|
756
|
|||||
Depreciation,
depletion and amortization
|
28
|
186
|
155
|
200
|
569
|
||||||||||
Total
cost of sales impact
|
$
|
124
|
$
|
455
|
$
|
446
|
a
|
$
|
300
|
$
|
1,325
|
||||
Impact
on income from continuing operations
|
$
|
79
|
$
|
286
|
$
|
281
|
$
|
189
|
$
|
835
|
a.
|
During
third-quarter 2007, we adjusted our preliminary purchase price allocation
based on updated valuation models for mill and leach stockpiles resulting
in an increase from initial estimates of approximately $1.0 billion.
The
increase in mill and leach stockpile values, along with other adjustments,
resulted in higher net purchase accounting impacts of $146 million.
FCX is
continuing to work with third-party consultants to assign fair values
to
the assets acquired and liabilities assumed in the Phelps Dodge
transaction. Further changes to the fair value estimates could be
significant and could result in changes to reported interim financial
results.
|
Nine
Months Ended
|
||||||||||||
Third-Quarter
|
September
30,
|
|||||||||||
2007a
|
2006
|
2007b
|
2006
|
|||||||||
Revenues
(in millions)
|
$
|
5,066
|
c
|
$
|
1,636
|
f
|
$
|
12,755
|
c
|
$
|
4,148
|
f
|
Operating
income (in millions)
|
$
|
1,877
|
c
|
$
|
735
|
f
|
$
|
5,403
|
c
|
$
|
2,006
|
f
|
Income
from continuing operations applicable to
|
||||||||||||
common
stock (in millions)
g
|
$
|
763
|
c,d
|
$
|
351
|
f
|
$
|
2,311
|
c,d
|
$
|
970
|
f
|
Net
income applicable to common stock (in millions)g
|
$
|
775
|
c,d
|
$
|
351
|
f
|
$
|
2,355
|
c,d
|
$
|
970
|
f
|
Diluted
net income per share of common stock:
|
||||||||||||
Continuing
operations
|
$
|
1.85
|
c,d,e
|
$
|
1.67
|
f
|
$
|
6.46
|
c,d,e
|
$
|
4.64
|
f
|
Discontinued
operations
|
0.02
|
–
|
0.12
|
–
|
||||||||
Diluted
net income per share of common stock
|
$
|
1.87
|
$
|
1.67
|
$
|
6.58
|
$
|
4.64
|
||||
Sales
from Mines
|
||||||||||||
Copper
|
||||||||||||
Consolidated
share (millions of recoverable pounds)
|
949
|
324
|
2,479
|
769
|
||||||||
Average
realized price per pound
|
$
|
3.53
|
c
|
$
|
3.43
|
$
|
3.43
|
c
|
$
|
3.38
|
||
Gold
|
||||||||||||
Consolidated
share (thousands of recoverable ounces)
|
269
|
478
|
2,137
|
1,228
|
||||||||
Average
realized price per ounce
|
$
|
692.43
|
$
|
608.57
|
$
|
668.80
|
$
|
540.67
|
f
|
|||
Molybdenum
|
||||||||||||
Consolidated
share (millions of recoverable pounds)
|
16
|
N/A
|
33
|
N/A
|
||||||||
Average
realized price per pound
|
$
|
27.89
|
N/A
|
$
|
26.22
|
N/A
|
a.
|
A
summary of the key components contributing to the consolidated results
for
third-quarter 2007 follows (in
millions):
|
Income
from
|
|||||||||
Operating
|
Continuing
|
||||||||
Revenues
|
Income
|
Operations
|
|||||||
FCX,
excluding Phelps Dodge
|
$
|
1,260
|
$
|
577
|
$
|
50
|
|||
Phelps
Dodge results
|
3,806
|
1,732
|
1,047
|
||||||
Purchase
accounting impact:
|
|||||||||
Inventories
(including mill and leach stockpiles)
|
–
|
(291
|
)
|
(184
|
)
|
||||
Property,
plant and equipment
|
–
|
(155
|
)
|
(97
|
)
|
||||
Other
|
–
|
14
|
10
|
||||||
Consolidated
|
$
|
5,066
|
$
|
1,877
|
$
|
826
|
b.
|
The
nine months ended September 30, 2007, include the operations of Phelps
Dodge beginning March 20, 2007. A summary of the key components
contributing to the consolidated results for the nine months ended
September 30, 2007, follows (in
millions):
|
Income
from
|
|||||||||
Operating
|
Continuing
|
||||||||
Revenues
|
Income
|
Operations
|
|||||||
FCX,
excluding Phelps Dodge
|
$
|
5,082
|
$
|
2,932
|
$
|
1,054
|
|||
Phelps
Dodge results
|
7,673
|
3,467
|
2,025
|
||||||
Purchase
accounting impact:
|
|||||||||
Inventories
(including mill and leach stockpiles)
|
–
|
(656
|
)
|
(414
|
)
|
||||
Property,
plant and equipment
|
–
|
(369
|
)
|
(232
|
)
|
||||
Other
|
–
|
29
|
22
|
||||||
Consolidated
|
$
|
12,755
|
$
|
5,403
|
$
|
2,455
|
c.
|
Includes
charges to revenues for mark-to-market accounting adjustments on
the 2007
copper price protection program totaling $44 million ($26 million
to net
income or $0.06 per share) and a reduction in average realized prices
of
$0.04 per pound in third-quarter 2007, and $212 million ($129 million
to
net income or $0.34 per share) and a reduction in average realized
prices
of $0.08 per pound for the first nine months of
2007.
|
d.
|
Includes
net losses on early extinguishment of debt totaling $36 million ($31
million to net income or $0.07 per share) in third-quarter 2007 and
$171
million ($141 million to net income or $0.37 per share) for the first
nine
months of 2007 primarily related to premiums paid and the accelerated
recognition of deferred financing costs associated with prepayments
on
debt, including the refinancing of our senior term loan due March
2014
(the Tranche B term loan) under the $11.5 billion senior credit
facility. Refer to Note 9 for further
discussion.
|
e.
|
On
March 19, 2007, we issued 136.9 million common shares to acquire
Phelps
Dodge, and on March 28, 2007, we sold an additional 47.15 million
common
shares. Common shares outstanding at September 30, 2007, totaled
382
million shares. Assuming conversion of all our convertible instruments,
total potential common shares outstanding would be 444 million shares
at
September 30, 2007.
|
f.
|
Includes
a loss on redemption of our Silver-Denominated Preferred Stock totaling
$13 million ($7 million to net income or $0.03 per share) in third-quarter
2006. In addition to the loss on redemption of our Silver-Denominated
Preferred Stock, the first nine months of 2006 includes a loss on
redemption of our Gold-Denominated Preferred Stock, Series II totaling
$69
million ($37 million to net income or $0.17 per share) and a reduction
in
average realized prices of $56.40 per ounce for the revenue adjustment
relating to the redemption.
|
g.
|
After
dividends on preferred stock.
|
Full
Year 2007
|
Fourth-Quarter
|
|||||||
Actual
|
Pro
forma
|
2007
|
||||||
Copper
(in billions of recoverable pounds)
|
3.4
|
3.9
|
0.9
|
|||||
Gold
(in millions of recoverable ounces)
|
2.2
|
2.3
|
0.1
|
|||||
Molybdenum
(in millions of recoverable pounds)
|
51
|
68
|
18
|
Effective
|
Provision
for
|
||||||||
Incomea
|
Tax
Rate
|
Income
Tax
|
|||||||
North
America
|
|||||||||
Income
before taxes and minority interests
|
$
|
1,076
|
32%
|
$
|
339
|
||||
Purchase
accounting adjustments
|
(723
|
)
|
39%
|
(280
|
)
|
||||
Subtotal
|
353
|
59
|
|||||||
South
America
|
|||||||||
Income
before taxes and minority interest
|
2,006
|
34%
|
676
|
||||||
Purchase
accounting adjustments
|
(273
|
)
|
34%
|
(92
|
)
|
||||
Subtotal
|
1,733
|
584
|
|||||||
Indonesia
|
|||||||||
Income
before taxes and minority interests
|
2,947
|
43%
|
1,275
|
||||||
Other
|
|||||||||
Income
before taxes and minority interests
|
25
|
28%
|
7
|
||||||
Annualized
rate adjustmentb
|
N/A
|
N/A
|
(50
|
)
|
|||||
Consolidated
totals
|
$
|
5,058
|
37%
|
$
|
1,875
|
a.
|
Represents
income from continuing operations before income taxes and minority
interests.
|
b.
|
In
accordance with APB Opinion No. 28, “Interim Financial Reporting,” and
FASB Interpretation No. 18, “Accounting for Income Taxes in Interim
Periods – an interpretation of APB Opinion No. 28,” (FIN 18) we adjust our
interim provision for income taxes to equal our estimated annualized
tax
rate, currently 37 percent.
|
Third-Quarter
2007
|
Third-Quarter
2006
|
|||||||||||||||||
Unaffiliated
|
Inter-
|
Unaffiliated
|
Inter-
|
|||||||||||||||
Customers
|
segment
|
Total
|
Customers
|
segment
|
Total
|
|||||||||||||
North
American mininga
|
$
|
3,007
|
$
|
4
|
$
|
3,011
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||
South
American miningb
|
799
|
550
|
1,349
|
–
|
–
|
–
|
||||||||||||
Indonesian
mining
|
570
|
267
|
837
|
1,021
|
241
|
1,262
|
||||||||||||
Atlantic
Copper smelting & refining
|
688
|
–
|
688
|
613
|
–
|
613
|
||||||||||||
Corporate,
other & eliminations
|
2
|
(821
|
)
|
(819
|
)
|
2
|
(241
|
)
|
(239
|
)
|
||||||||
Consolidated
revenues
|
$
|
5,066
|
$
|
–
|
$
|
5,066
|
$
|
1,636
|
$
|
–
|
$
|
1,636
|
Nine
Months Ended
|
||||||||||||||||||
September
30, 2007
|
September
30, 2006
|
|||||||||||||||||
Unaffiliated
|
Inter-
|
Unaffiliated
|
Inter-
|
|||||||||||||||
Customers
|
segment
|
Total
|
Customers
|
segment
|
Total
|
|||||||||||||
North
American mininga
|
$
|
6,005
|
$
|
8
|
$
|
6,013
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||
South
American miningb
|
1,668
|
1,175
|
2,843
|
–
|
–
|
–
|
||||||||||||
Indonesian
mining
|
3,317
|
991
|
4,308
|
2,421
|
673
|
3,094
|
||||||||||||
Atlantic
Copper smelting & refining
|
1,761
|
–
|
1,761
|
1,722
|
–
|
1,722
|
||||||||||||
Corporate,
other & eliminations
|
4
|
(2,174
|
)
|
(2,170
|
)
|
5
|
(673
|
)
|
(668
|
)
|
||||||||
Consolidated
revenues
|
$
|
12,755
|
$
|
–
|
$
|
12,755
|
$
|
4,148
|
$
|
–
|
$
|
4,148
|
a.
|
Includes
our operating mines at Morenci, Bagdad, Sierrita, Chino and Tyrone.
Also
includes our Manufacturing and Primary Molybdenum operations (refer
to
Note 17).
|
b.
|
Includes
our operating mines at Candelaria, Ojos del Salado, El Abra and Cerro
Verde (refer to Note 17).
|
Nine
Months Ended
|
||||||||||||
Third-Quarter
|
September
30,
|
|||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||
North
American mining
|
$
|
630
|
$
|
–
|
$
|
1,005
|
$
|
–
|
||||
South
American mining
|
800
|
–
|
1,711
|
–
|
||||||||
Indonesian
mining
|
399
|
813
|
2,953
|
1,871
|
||||||||
Atlantic
Copper smelting & refining
|
1
|
20
|
10
|
55
|
||||||||
Corporate,
other & eliminations
|
47
|
(98
|
)
|
(276
|
)
|
80
|
||||||
Consolidated
operating income
|
$
|
1,877
|
a
|
$
|
735
|
$
|
5,403
|
a
|
$
|
2,006
|
a.
|
Operating
income includes purchase accounting adjustments totaling $432 million
for
third-quarter 2007 and approximately $1.0 billion for the first nine
months of 2007 (refer to Note 17). These adjustments primarily relate
to
the impacts of increases in the carrying values of Phelps Dodge’s metal
inventories (including mill and leach stockpiles) and property, plant
and
equipment.
|
Nine
Months Ended
|
|||||||||||||
Third-Quarter
|
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Consolidated
North American Mining Operations
|
(Actual)
|
(Pro
Forma)
|
(Pro
Forma)
|
(Pro
Forma)
|
|||||||||
Copper
(millions of recoverable pounds)
|
|||||||||||||
Production
|
357
|
322
|
993
|
976
|
|||||||||
Sales
|
376
|
303
|
1,016
|
970
|
|||||||||
Average
realized price per pound, excluding hedging
|
$
|
3.48
|
$
|
3.48
|
$
|
3.29
|
$
|
3.00
|
|||||
Average
realized price per pound, including hedginga
|
$
|
3.37
|
$
|
3.00
|
$
|
3.06
|
$
|
1.75
|
|||||
Molybdenum
(millions of recoverable pounds)
|
|||||||||||||
Production
|
18
|
16
|
53
|
51
|
|||||||||
Sales
|
16
|
16
|
50
|
51
|
|||||||||
Average
realized price per pound
|
$
|
27.89
|
$
|
22.59
|
$
|
25.12
|
$
|
21.59
|
|||||
Solution
extraction/electrowinning (SX/EW) operations
|
|||||||||||||
Leach
ore placed in stockpiles (metric tons per day)
|
797,600
|
772,600
|
739,800
|
816,900
|
|||||||||
Average
copper ore grade (percent)
|
0.21
|
0.32
|
0.25
|
0.30
|
|||||||||
Copper
production (millions of recoverable pounds)
|
216
|
223
|
637
|
675
|
|||||||||
Mill
operations
|
|||||||||||||
Ore
milled (metric tons per day)
|
226,400
|
203,100
|
221,000
|
194,800
|
|||||||||
Average
ore grade (percent)
|
|||||||||||||
Copper
|
0.36
|
0.33
|
0.34
|
0.33
|
|||||||||
Molybdenum
|
0.03
|
0.02
|
0.02
|
0.02
|
|||||||||
Production
(millions of recoverable pounds)
|
|||||||||||||
Copper
|
141
|
99
|
356
|
301
|
|||||||||
Molybdenum
(by-product)
|
8
|
7
|
23
|
23
|
|||||||||
Primary
molybdenum mine
|
|||||||||||||
Ore
milled (metric tons per day)
|
22,300
|
19,500
|
24,000
|
22,000
|
|||||||||
Average
molybdenum ore grade (percent)
|
0.25
|
0.25
|
0.23
|
0.23
|
|||||||||
Molybdenum
production (millions of recoverable pounds)
|
10
|
9
|
30
|
28
|
|||||||||
a.
|
Includes
the impact of hedging losses related to copper price protection
programs.
|
Three
Months Ended September 30, 2007
|
|||||||||
By-Product
|
Co-Product Method
|
||||||||
Method
|
Copper
|
Molybdenum
|
a
|
||||||
Revenues,
after adjustments shown below
|
$
|
3.51
|
$
|
3.51
|
$
|
31.80
|
|||
Site
production and delivery, before net noncash and
|
|||||||||
nonrecurring
costs shown below
|
1.40
|
1.22
|
9.69
|
||||||
By-product
credits
a
|
(0.66
|
)
|
–
|
–
|
|||||
Treatment
charges
|
0.09
|
0.09
|
–
|
||||||
Unit
net cash costs
|
0.84
|
1.31
|
9.69
|
||||||
Depreciation
and amortization
|
0.18
|
0.16
|
0.95
|
||||||
Noncash
and nonrecurring costs, net
|
0.01
|
0.01
|
0.02
|
||||||
Total
unit costs
|
1.03
|
1.49
|
10.66
|
||||||
Revenue
adjustments, primarily for pricing on prior period
|
|||||||||
open
sales and hedging
|
(0.15
|
)
|
(0.15
|
)
|
–
|
||||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
–
|
||||
Gross
profit
|
$
|
2.31
|
$
|
1.85
|
$
|
21.14
|
|||
Consolidated
sales
|
|||||||||
Copper
(in million pounds)
|
376
|
376
|
|||||||
Molybdenum
(in million pounds)
|
8
|
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also include tolling revenues at
Sierrita.
|
Three
Months Ended September 30, 2006
|
|||||||||
By-Product
|
Co-Product Method
|
||||||||
Method
|
Copper
|
Molybdenum
|
a
|
||||||
Revenues,
after adjustments shown below
|
$
|
3.40
|
$
|
3.40
|
$
|
25.39
|
|||
Site
production and delivery, before net noncash and
|
|||||||||
nonrecurring
costs shown below
|
1.23
|
1.03
|
8.29
|
||||||
By-product
credits
a
|
(0.66
|
)
|
–
|
–
|
|||||
Treatment
charges
|
0.07
|
0.07
|
–
|
||||||
Unit
net cash costs
|
0.64
|
1.10
|
8.29
|
||||||
Depreciation
and amortization
|
0.11
|
0.10
|
0.52
|
||||||
Noncash
and nonrecurring costs, net
|
0.02
|
0.01
|
0.02
|
||||||
Total
unit costs
|
0.77
|
1.21
|
8.83
|
||||||
Revenue
adjustments, primarily for pricing on prior period
|
|||||||||
open
sales and hedging
|
(0.41
|
)
|
(0.41
|
)
|
–
|
||||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
–
|
||||
Gross
profit
|
$
|
2.20
|
$
|
1.76
|
$
|
16.56
|
|||
Consolidated
sales
|
|||||||||
Copper
(in million pounds)
|
302
|
302
|
|||||||
Molybdenum
(in million pounds)
|
7
|
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also include tolling revenues at
Sierrita.
|
Nine
Months Ended September 30, 2007
|
|||||||||
By-Product
|
Co-Product Method
|
||||||||
Method
|
Copper
|
Molybdenum
|
a
|
||||||
Revenues,
after adjustments shown below
|
$
|
3.19
|
$
|
3.19
|
$
|
28.57
|
|||
Site
production and delivery, before net noncash and
|
|||||||||
nonrecurring
costs shown below
|
1.39
|
1.20
|
9.83
|
||||||
By-product
credits
a
|
(0.65
|
)
|
–
|
–
|
|||||
Treatment
charges
|
0.08
|
0.08
|
–
|
||||||
Unit
net cash costs
|
0.83
|
1.28
|
9.83
|
||||||
Depreciation
and amortization
|
0.14
|
0.12
|
0.94
|
||||||
Noncash
and nonrecurring costs, net
|
0.02
|
0.02
|
0.03
|
||||||
Total
unit costs
|
0.99
|
1.42
|
10.80
|
||||||
Revenue
adjustments, primarily for pricing on prior period
|
|||||||||
open
sales and hedging
|
(0.13
|
)
|
(0.13
|
)
|
–
|
||||
Idle
facility and other non-inventoriable costs
|
(0.03
|
)
|
(0.03
|
)
|
–
|
||||
Gross
profit
|
$
|
2.05
|
$
|
1.62
|
$
|
17.77
|
|||
Consolidated
sales
|
|||||||||
Copper
(in million pounds)
|
1,004
|
1,004
|
|||||||
Molybdenum
(in million pounds)
|
23
|
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also include tolling revenues at
Sierrita.
|
Nine
Months Ended September 30, 2006
|
|||||||||
By-Product
|
Co-Product Method
|
||||||||
Method
|
Copper
|
Molybdenum
|
a
|
||||||
Revenues,
after adjustments shown below
|
$
|
3.15
|
$
|
3.15
|
$
|
24.48
|
|||
Site
production and delivery, before net noncash and
|
|||||||||
nonrecurring
costs shown below
|
1.08
|
0.86
|
9.75
|
||||||
By-product
credits
a
|
(0.60
|
)
|
–
|
–
|
|||||
Treatment
charges
|
0.07
|
0.07
|
–
|
||||||
Unit
net cash costs
|
0.55
|
0.92
|
9.75
|
||||||
Depreciation
and amortization
|
0.11
|
0.09
|
0.75
|
||||||
Noncash
and nonrecurring costs, net
|
0.01
|
0.01
|
0.03
|
||||||
Total
unit costs
|
0.67
|
1.02
|
10.53
|
||||||
Revenue
adjustments, primarily for pricing on prior period
|
|||||||||
open
sales and hedging
|
(1.41
|
)
|
(1.41
|
)
|
–
|
||||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
–
|
||||
Gross
profit
|
$
|
1.05
|
$
|
0.70
|
$
|
13.95
|
|||
Consolidated
sales
|
|||||||||
Copper
(in million pounds)
|
962
|
962
|
|||||||
Molybdenum
(in million pounds)
|
23
|
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also include tolling revenues at
Sierrita.
|
Primary
Molybdenum (Henderson) Gross Profit per Pound
|
||||||||||||
Nine
Months Ended
|
||||||||||||
Third-Quarter
|
September
30,
|
|||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||
(Actual)
|
(Pro
Forma)
|
(Pro
Forma)
|
(Pro
Forma)
|
|||||||||
Revenues,
after adjustments shown below
|
$
|
28.22
|
$
|
22.77
|
$
|
25.22
|
$
|
21.76
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
4.34
|
3.92
|
4.20
|
3.60
|
||||||||
Unit
net cash costs
|
4.34
|
3.92
|
4.20
|
3.60
|
||||||||
Depreciation
and amortization
|
0.87
|
0.93
|
0.85
|
0.90
|
||||||||
Noncash
and nonrecurring costs, net
|
0.02
|
0.02
|
0.02
|
0.02
|
||||||||
Total
unit costs
|
5.22
|
4.87
|
5.07
|
4.52
|
||||||||
Gross
profita
|
$
|
23.00
|
$
|
17.90
|
$
|
20.15
|
$
|
17.24
|
||||
Consolidated
molybdenum sales (in million pounds)
|
10
|
9
|
30
|
28
|
a.
|
Gross
profit reflects sales of Henderson products based on volumes produced
at
market-based pricing. On a consolidated basis, the Primary Molybdenum
segment includes profits on sales as they are made to third parties
and
realizations based on actual contract
terms.
|
Nine
Months Ended
|
|||||||||||||
Third-Quarter
|
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Consolidated
South American Mining Operations
|
(Actual)
|
(Pro
Forma)
|
(Pro
Forma)
|
(Pro
Forma)
|
|||||||||
Copper
(millions of recoverable pounds)
|
|||||||||||||
Production
|
377
|
281
|
1,022
|
853
|
|||||||||
Sales
|
376
|
295
|
1,020
|
860
|
|||||||||
Average
realized price per pound
|
$
|
3.63
|
$
|
3.52
|
$
|
3.48
|
$
|
3.08
|
|||||
Gold
(thousands of recoverable ounces)
|
|||||||||||||
Production
|
31
|
27
|
83
|
86
|
|||||||||
Sales
|
31
|
27
|
84
|
85
|
|||||||||
Average
realized price per ounce
|
$
|
679.30
|
$
|
672.59
|
$
|
666.94
|
$
|
545.88
|
|||||
Solution
extraction/electrowinning (SX/EW) operations
|
|||||||||||||
Leach
ore placed in stockpiles (metric tons per day)
|
286,700
|
265,600
|
289,300
|
257,500
|
|||||||||
Average
copper ore grade (percent)
|
0.45
|
0.42
|
0.42
|
0.45
|
|||||||||
Copper
production (millions of recoverable pounds)
|
139
|
176
|
430
|
523
|
|||||||||
Mill
operations
|
|||||||||||||
Ore
milled (metric tons per day)
|
181,400
|
69,300
|
163,700
|
64,300
|
|||||||||
Average
copper ore grade (percent)
|
0.76
|
0.81
|
0.72
|
0.88
|
|||||||||
Copper
production (millions of recoverable pounds)
|
238
|
105
|
592
|
330
|
Three
Months Ended September 30, 2007
|
||||||
By-Product
|
Co-Product
|
|||||
Method
|
Method
|
|||||
Revenues,
after adjustments shown below
|
$
|
3.82
|
$
|
3.82
|
||
Site
production and delivery, before net noncash and
|
||||||
nonrecurring
costs shown below
|
0.98
|
0.95
|
||||
By-product
credits
|
(0.09
|
)
|
–
|
|||
Treatment
charges
|
0.24
|
0.24
|
||||
Unit
net cash costs
|
1.14
|
1.19
|
||||
Depreciation
and amortization
|
0.15
|
0.14
|
||||
Noncash
and nonrecurring costs, net
|
–
|
–
|
||||
Total
unit costs
|
1.28
|
1.33
|
||||
Revenue
adjustments, primarily for pricing on prior period
|
||||||
open
sales and hedging
|
(0.09
|
)
|
(0.09
|
)
|
||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
||
Gross
profit
|
$
|
2.43
|
$
|
2.38
|
||
Consolidated
sales
|
||||||
Copper
(in million pounds)
|
376
|
376
|
Three
Months Ended September 30, 2006
|
||||||
By-Product
|
Co-Product
|
|||||
Method
|
Method
|
|||||
Revenues,
after adjustments shown below
|
$
|
3.52
|
$
|
3.52
|
||
Site
production and delivery, before net noncash and
|
||||||
nonrecurring
costs shown below
|
0.87
|
0.85
|
||||
By-product
credits
|
(0.07
|
)
|
–
|
|||
Treatment
charges
|
0.20
|
0.19
|
||||
Unit
net cash costs
|
1.00
|
1.04
|
||||
Depreciation
and amortization
|
0.17
|
0.17
|
||||
Noncash
and nonrecurring costs, net
|
–
|
–
|
||||
Total
unit costs
|
1.17
|
1.22
|
||||
Revenue
adjustments, primarily for pricing on prior period
|
||||||
open
sales and hedging
|
0.03
|
0.03
|
||||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
||
Gross
profit
|
$
|
2.36
|
$
|
2.31
|
||
Consolidated
sales
|
||||||
Copper
(in million pounds)
|
295
|
295
|
Nine
Months Ended September 30, 2007
|
||||||
By-Product
|
Co-Product
|
|||||
Method
|
Method
|
|||||
Revenues,
after adjustments shown below
|
$
|
3.47
|
$
|
3.47
|
||
Site
production and delivery, before net noncash and
|
||||||
nonrecurring
costs shown below
|
0.89
|
0.86
|
||||
By-product
credits
|
(0.08
|
)
|
–
|
|||
Treatment
charges
|
0.21
|
0.21
|
||||
Unit
net cash costs
|
1.02
|
1.07
|
||||
Depreciation
and amortization
|
0.16
|
0.15
|
||||
Noncash
and nonrecurring costs, net
|
–
|
–
|
||||
Total
unit costs
|
1.18
|
1.22
|
||||
Revenue
adjustments, primarily for pricing on prior period
|
||||||
open
sales and hedging
|
0.02
|
0.02
|
||||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
||
Gross
profit
|
$
|
2.29
|
$
|
2.25
|
||
Consolidated
sales
|
||||||
Copper
(in million pounds)
|
1,020
|
1,020
|
Nine
Months Ended September 30, 2006
|
||||||
By-Product
|
Co-Product
|
|||||
Method
|
Method
|
|||||
Revenues,
after adjustments shown below
|
$
|
3.24
|
$
|
3.24
|
||
Site
production and delivery, before net noncash and
|
||||||
nonrecurring
costs shown below
|
0.77
|
0.75
|
||||
By-product
credits
|
(0.08
|
)
|
–
|
|||
Treatment
charges
|
0.18
|
0.18
|
||||
Unit
net cash costs
|
0.87
|
0.93
|
||||
Depreciation
and amortization
|
0.17
|
0.17
|
||||
Noncash
and nonrecurring costs, net
|
–
|
–
|
||||
Total
unit costs
|
1.04
|
1.10
|
||||
Revenue
adjustments, primarily for pricing on prior period
|
||||||
open
sales and hedging
|
(0.05
|
)
|
(0.04
|
)
|
||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
||
Gross
profit
|
$
|
2.13
|
$
|
2.09
|
||
Consolidated
sales
|
||||||
Copper
(in million pounds)
|
860
|
860
|
Nine
Months Ended
|
|||||||||||||
Third-Quarter
|
September
30,
|
||||||||||||
Indonesian
Mining Operations
|
2007
|
2006
|
2007
|
2006
|
|||||||||
Consolidated,
net of Rio Tinto’s Interest
|
|||||||||||||
Copper
(millions of recoverable pounds)
|
|||||||||||||
Production
|
177
|
308
|
943
|
766
|
|||||||||
Sales
|
197
|
324
|
948
|
769
|
|||||||||
Average
realized price per pound
|
$
|
3.63
|
$
|
3.43
|
$
|
3.48
|
$
|
3.38
|
|||||
Gold
(thousands of recoverable ounces)
|
|||||||||||||
Production
|
182
|
449
|
2,051
|
1,218
|
|||||||||
Sales
|
234
|
478
|
2,061
|
1,228
|
|||||||||
Average
realized price per ounce
|
$
|
694.95
|
$
|
608.57
|
$
|
668.47
|
$
|
540.67
|
a
|
||||
100%
Operating Data, including Rio Tinto’s Interest
|
|||||||||||||
Ore
milled (metric tons per day)
|
198,600
|
230,100
|
213,900
|
223,600
|
|||||||||
Average
ore grade
|
|||||||||||||
Copper
(percent)
|
0.58
|
0.85
|
0.88
|
0.76
|
|||||||||
Gold
(grams per metric ton)
|
0.70
|
0.83
|
1.47
|
0.81
|
|||||||||
Recovery
rates (percent)
|
|||||||||||||
Copper
|
89.1
|
85.9
|
90.9
|
84.3
|
|||||||||
Gold
|
83.0
|
80.5
|
87.4
|
79.4
|
|||||||||
Copper
(millions of recoverable pounds)
|
|||||||||||||
Production
|
194
|
325
|
984
|
831
|
|||||||||
Sales
|
214
|
343
|
989
|
834
|
|||||||||
Gold
(thousands of recoverable ounces)
|
|||||||||||||
Production
|
327
|
456
|
2,362
|
1,253
|
|||||||||
Sales
|
383
|
487
|
2,371
|
1,267
|
|||||||||
a.
|
Amount
was $597.07 per ounce before a loss resulting from redemption of
FCX’s
Gold-Denominated Preferred Stock, Series
II.
|
Nine
Months Ended
|
||||||||
Third-Quarter
|
September
30,
|
|||||||
2007
|
2006
|
2007
|
2006
|
|||||
Grasberg
open pit
|
143,000
|
182,900
|
162,300
|
177,500
|
||||
Deep
Ore Zone (DOZ) underground mine
|
55,600
|
47,200
|
51,600
|
46,100
|
||||
Total
mill throughput
|
198,600
|
230,100
|
213,900
|
223,600
|
||||
Third
|
Nine
|
|||||
Quarter
|
Months
|
|||||
PT
Freeport Indonesia revenues – prior year period
|
$
|
1,262
|
$
|
3,094
|
||
Price
realizations:
|
||||||
Copper
|
39
|
97
|
||||
Gold
|
20
|
263
|
||||
Sales
volumes:
|
||||||
Copper
|
(434
|
)
|
607
|
|||
Gold
|
(148
|
)
|
450
|
|||
Adjustments,
primarily for copper pricing on prior
|
||||||
period/year
open sales
|
7
|
(173
|
)
|
|||
Treatment
charges, royalties and other
|
91
|
(30
|
)
|
|||
PT
Freeport Indonesia revenues – current year period
|
$
|
837
|
$
|
4,308
|
||
Gross
Profit per Pound of Copper/per Ounce of Gold and
Silver
|
||||||||||||
Three
Months Ended September 30, 2007
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
$
|
3.63
|
$
|
3.63
|
$
|
694.95
|
$
|
12.81
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
1.76
|
1.43
|
270.62
|
4.33
|
||||||||
Gold
and silver credits
|
(0.90
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
0.34
|
0.28
|
52.65
|
0.84
|
||||||||
Royalty
on metals
|
0.10
|
0.08
|
15.57
|
–
|
||||||||
Unit
net cash costs
|
1.30
|
1.79
|
338.84
|
5.17
|
||||||||
Depreciation
and amortization
|
0.22
|
0.17
|
33.13
|
0.53
|
||||||||
Noncash
and nonrecurring costs, net
|
0.02
|
0.02
|
3.75
|
0.06
|
||||||||
Total
unit costs
|
1.54
|
1.98
|
375.72
|
5.76
|
||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||
prior
period open sales
|
0.16
|
0.16
|
43.81
|
(1.24
|
)
|
|||||||
PT
Smelting intercompany profit recognized
|
0.24
|
0.19
|
36.50
|
0.58
|
||||||||
Gross
profit
|
$
|
2.49
|
$
|
2.01
|
$
|
399.54
|
$
|
6.39
|
||||
Consolidated
sales, net of Rio Tinto’s interest
|
||||||||||||
Copper
(in million pounds)
|
197
|
197
|
||||||||||
Gold
(in thousand ounces)
|
234
|
|||||||||||
Silver
(in thousand ounces)
|
427
|
Three
Months Ended September 30, 2006
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
$
|
3.43
|
$
|
3.43
|
$
|
608.57
|
$
|
5.25
|
a
|
|||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
1.10
|
0.86
|
155.90
|
2.91
|
||||||||
Gold
and silver credits
|
(0.95
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
0.44
|
0.34
|
62.19
|
1.16
|
||||||||
Royalty
on metals
|
0.11
|
0.09
|
16.24
|
0.30
|
||||||||
Unit
net cash costs
|
0.70
|
1.29
|
234.33
|
4.37
|
||||||||
Depreciation
and amortization
|
0.15
|
0.12
|
21.94
|
0.41
|
||||||||
Noncash
and nonrecurring costs, net
|
0.03
|
0.02
|
3.75
|
0.07
|
||||||||
Total
unit costs
|
0.88
|
1.43
|
260.02
|
4.85
|
||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||
prior
period open sales
|
0.07
|
b
|
0.12
|
8.11
|
(5.84
|
)
|
||||||
PT
Smelting intercompany profit elimination
|
(0.06
|
)
|
(0.05
|
)
|
(8.94
|
)
|
(0.17
|
)
|
||||
Gross
profit
|
$
|
2.56
|
$
|
2.07
|
$
|
347.72
|
$
|
(5.61
|
)
|
|||
Consolidated
sales, net of Rio Tinto’s interest
|
||||||||||||
Copper
(in million pounds)
|
324
|
324
|
||||||||||
Gold
(in thousand ounces)
|
478
|
|||||||||||
Silver
(in thousand ounces)
|
1,096
|
a.
|
Amount
was $11.68 per pound before the loss resulting from redemption of
our
Silver-Denominated Preferred Stock.
|
b.
|
Includes
a $13 million or $0.04 per pound loss on the redemption of our
Silver-Denominated Preferred Stock.
|
Nine
Months Ended September 30, 2007
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
$
|
3.48
|
$
|
3.48
|
$
|
668.47
|
$
|
13.04
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
1.10
|
0.77
|
146.73
|
2.86
|
||||||||
Gold
and silver credits
|
(1.50
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
0.35
|
0.24
|
46.84
|
0.91
|
||||||||
Royalty
on metals
|
0.12
|
0.09
|
16.55
|
0.32
|
||||||||
Unit
net cash costs
|
0.07
|
1.10
|
210.12
|
4.09
|
||||||||
Depreciation
and amortization
|
0.17
|
0.11
|
22.21
|
0.43
|
||||||||
Noncash
and nonrecurring costs, net
|
0.03
|
0.02
|
3.43
|
0.07
|
||||||||
Total
unit costs
|
0.27
|
1.23
|
235.76
|
4.59
|
||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||
prior
period open sales
|
0.04
|
0.04
|
1.19
|
–
|
||||||||
PT
Smelting intercompany profit recognized
|
0.01
|
0.01
|
1.56
|
0.03
|
||||||||
Gross
profit
|
$
|
3.27
|
$
|
2.29
|
$
|
435.46
|
$
|
8.48
|
||||
Consolidated
sales, net of Rio Tinto’s interest
|
||||||||||||
Copper
(in million pounds)
|
948
|
948
|
||||||||||
Gold
(in thousand ounces)
|
2,061
|
|||||||||||
Silver
(in thousand ounces)
|
3,121
|
Nine
Months Ended September 30, 2006
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
$
|
3.38
|
$
|
3.38
|
$
|
540.67
|
a
|
$
|
6.58
|
b
|
||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
1.17
|
0.90
|
162.88
|
3.13
|
||||||||
By-product
credits
|
(1.02
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
0.43
|
0.33
|
60.11
|
1.16
|
||||||||
Royalty
on metals
|
0.11
|
0.08
|
14.44
|
0.28
|
||||||||
Unit
net cash costs
|
0.69
|
1.31
|
237.43
|
4.57
|
||||||||
Depreciation
and amortization
|
0.15
|
0.12
|
21.27
|
0.41
|
||||||||
Noncash
and nonrecurring costs, net
|
0.04
|
0.03
|
5.54
|
0.11
|
||||||||
Total
unit costs
|
0.88
|
1.46
|
264.24
|
5.09
|
||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||
prior
period open sales
|
0.16
|
c
|
0.27
|
16.42
|
0.20
|
|||||||
PT
Smelting intercompany profit elimination
|
(0.01
|
)
|
(0.01
|
)
|
(1.33
|
)
|
(0.03
|
)
|
||||
Gross
profit
|
$
|
2.65
|
$
|
2.18
|
$
|
291.52
|
$
|
1.66
|
||||
Consolidated
sales, net of Rio Tinto’s interest
|
||||||||||||
Copper
(in million pounds)
|
769
|
769
|
||||||||||
Gold
(in thousand ounces)
|
1,228
|
|||||||||||
Silver
(in thousand ounces)
|
2,638
|
a.
|
Amount
was $597.07 per pound before a loss resulting from redemption of
our
Gold-Denominated Preferred Stock, Series
II.
|
b.
|
Amount
was $11.31 per pound before the loss resulting from redemption of
our
Silver-Denominated Preferred Stock.
|
c.
|
Includes
a $69 million or $0.16 per pound loss on the redemption of our
Gold-Denominated Preferred Stock, Series II, and a $13 million or
$0.02
per pound loss on the redemption of our Silver-Denominated Preferred
Stock.
|
|
EXPLORATION
ACTIVITIES
|
Nine
Months Ended
|
||||||||||||
Atlantic
Copper Operating Results
|
Third-Quarter
|
September
30,
|
||||||||||
(in
millions)
|
2007
|
2006
|
2007
|
2006
|
||||||||
Gross
profit
|
$
|
6
|
$
|
24
|
$
|
25
|
$
|
66
|
||||
Add
depreciation and amortization expense
|
8
|
8
|
27
|
23
|
||||||||
Cash
margin
|
$
|
14
|
$
|
32
|
$
|
52
|
$
|
89
|
||||
Operating
income (loss) (in millions)
|
$
|
1
|
$
|
20
|
$
|
10
|
$
|
55
|
||||
Concentrate
and scrap treated (thousand metric tons)
|
263
|
244
|
687
|
724
|
||||||||
Anodes
production (million pounds)
|
148
|
148
|
409
|
444
|
||||||||
Treatment
rates per pound
|
$
|
0.24
|
$
|
0.32
|
$
|
0.29
|
$
|
0.32
|
||||
Cathodes
sales (million pounds)
|
145
|
125
|
414
|
393
|
||||||||
Gold
sales in anodes and slimes (thousand ounces)
|
219
|
124
|
507
|
569
|
September
30,
|
December
31,
|
|||||
2007
|
2006
|
|||||
Cash
from U.S. operations
|
$
|
0.1
|
$
|
–
|
||
Cash
from international operations
|
2.3
|
0.9
|
||||
Total
consolidated cash and cash equivalents
|
2.4
|
0.9
|
||||
Less:
minority interests’ share
|
(0.6
|
)
|
–
|
|||
Cash,
net of minority interests’ share
|
1.8
|
0.9
|
||||
Withholding
taxes if distributeda
|
(0.2
|
)
|
(0.1
|
)
|
||
Net
cash available to FCX
|
$
|
1.6
|
$
|
0.8
|
||
a.
|
Cash
at our international operations is subject to foreign withholding
taxes of
up to 22 percent upon repatriation into the
U.S.
|
·
|
During
first-quarter 2007, we sold 47.15 million shares of common stock
at $61.25
per share for net proceeds of approximately $2.8 billion and 28.75
million
shares of 6¾% Mandatory Convertible Preferred Stock for net proceeds of
approximately $2.8 billion. The net proceeds from these transactions
were
used to reduce borrowings under the $11.5 billion senior credit facility,
with $2.5 billion used to fully repay the senior term loan due March
2012
and the remaining $3.1 billion to partially repay the Tranche B term
loan.
|
·
|
During
second-quarter 2007, we prepaid an additional $1.9 billion of debt
under
the Tranche B term loan.
|
·
|
During
third-quarter 2007, we refinanced the remaining $2.5 billion balance
outstanding under the Tranche B term loan under the $11.5 billion
senior
credit facility with proceeds from a new senior term loan due March
2012
(the Tranche A term loan).
|
·
|
Also
during third-quarter 2007, we prepaid $0.9 billion of debt under
the
Tranche A term loan.
|
Less
Than
|
After
|
|||||||||||||
Total
|
1
Year
|
Years
2-3
|
Years
4-5
|
5
Years
|
||||||||||
Total
debt
|
$
|
8,732
|
$
|
67
|
$
|
70
|
$
|
1,704
|
$
|
6,891
|
||||
Scheduled
interest payment obligationsa
|
6,109
|
675
|
1,346
|
1,275
|
2,813
|
|||||||||
Asset
retirement obligationsb
|
102
|
58
|
33
|
9
|
2
|
|||||||||
Take-or-pay
contractsc
|
1,053
|
752
|
210
|
61
|
30
|
|||||||||
Total
contractual cash obligationsd
|
$
|
15,996
|
$
|
1,552
|
$
|
1,659
|
$
|
3,049
|
$
|
9,736
|
a.
|
Scheduled
interest payment obligations were calculated using stated coupon
rates for
fixed-rate debt and interest rates applicable at September 30, 2007,
for
variable-rate debt.
|
b.
|
Asset
retirement obligations only include our estimated contractual cash
payments associated with reclamation activities at certain Phelps
Dodge
sites we acquired for which our costs are estimable and the timing
of
payments was reasonably determinable at September 30, 2007. The timing
and
the amount of these payments could change as a result of changes
in
regulatory requirements, changes in scope and costs of reclamation
activities and as actual reclamation spending occurs. The table excludes
remaining cash payments of $61 million that are expected to be incurred
in
connection with accelerating certain closure projects at our discretion.
We have also excluded payments for reclamation activities that are
expected to occur after five years and the associated trust assets
of $536
million that have been dedicated to funding those reclamation activities
because a majority of these cash flows are expected to occur over
an
extended period of time and are dependent upon the timing of the
end of
the mine life, which is subject to
revision.
|
c.
|
Take-or-pay
contracts acquired in the acquisition of Phelps Dodge primarily include
contracts for copper deliveries of specified volumes at market-based
prices ($597 million), transportation and port fee commitments ($169
million) and contracts for electricity ($101 million). Approximately
30
percent of our take-or-pay electricity obligations are through Phelps
Dodge Energy Services (PDES), the legal entity used to manage power
for
North American operations at generally fixed-priced arrangements.
PDES has
the right and the ability to resell the electricity as circumstances
warrant.
|
d.
|
This
table excludes certain other obligations in our condensed consolidated
balance sheet, including estimated funding for pension obligations
as the
funding may vary from year-to-year based on changes in the fair value
of
plan assets and actuarial assumptions. Also excluded are (i) environmental
obligations and contingencies for which the timing of payments is
not
determinable and (ii) FIN 48, “Accounting for Uncertainty in Income Taxes
– an interpretation of FASB Statement No. 109,” liabilities related to
unrecognized tax benefits where the ultimate amount and/or timing
of
settlement is not determinable.
|
|
NEW
ACCOUNTING STANDARDS
|
Three
Months Ended September
30, 2007
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Molybdenum
|
a
|
Other
|
b
|
Total
|
||||||||
Revenues,
after adjustments shown below
|
$
|
1,320
|
$
|
1,320
|
$
|
245
|
$
|
14
|
$
|
1,579
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
528
|
459
|
75
|
6
|
540
|
||||||||||
By-product
credits
a
|
(247
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
33
|
33
|
–
|
–
|
33
|
||||||||||
Net
cash costs
|
314
|
492
|
75
|
6
|
573
|
||||||||||
Depreciation
and amortization
|
69
|
62
|
7
|
1
|
69
|
||||||||||
Noncash
and nonrecurring costs, net
|
5
|
5
|
–
|
–
|
5
|
||||||||||
Total
costs
|
388
|
559
|
82
|
7
|
648
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(56
|
)
|
(56
|
)
|
–
|
–
|
(56
|
)
|
|||||||
Idle
facility and other non-inventoriable costs
|
(8
|
)
|
(8
|
)
|
–
|
–
|
(8
|
)
|
|||||||
Gross
profit
|
$
|
867
|
$
|
697
|
$
|
163
|
$
|
7
|
$
|
867
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
1,579
|
$
|
540
|
$
|
69
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
5
|
N/A
|
||||||||||||
Treatment
charges per above
|
N/A
|
33
|
N/A
|
||||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales and hedging per above
|
(56
|
)
|
N/A
|
N/A
|
|||||||||||
Purchase
accounting impact
|
N/A
|
174
|
115
|
||||||||||||
Other
North America operations
|
1,488
|
1,413
|
22
|
||||||||||||
Total
North American mining operations
|
3,011
|
2,165
|
206
|
||||||||||||
Eliminations
and other
|
2,055
|
497
|
150
|
||||||||||||
As
reported in FCX’s consolidated
|
|||||||||||||||
financial
statements
|
$
|
5,066
|
$
|
2,662
|
$
|
356
|
|||||||||
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also includes tolling revenues at
Sierrita.
|
b.
|
Includes
gold and silver product revenues and production
costs.
|
Three
Months Ended September 30, 2006
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Molybdenum
|
a
|
Other
|
b
|
Total
|
||||||||
Revenues,
after adjustments shown below
|
$
|
1,024
|
$
|
1,024
|
$
|
198
|
$
|
12
|
$
|
1,234
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
369
|
310
|
65
|
5
|
380
|
||||||||||
By-product
credits
a
|
(199
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
22
|
21
|
–
|
1
|
22
|
||||||||||
Net
cash costs
|
192
|
331
|
65
|
6
|
402
|
||||||||||
Depreciation
and amortization
|
33
|
29
|
4
|
–
|
33
|
||||||||||
Noncash
and nonrecurring costs, net
|
5
|
5
|
–
|
–
|
5
|
||||||||||
Total
costs
|
230
|
365
|
69
|
6
|
440
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(123
|
)
|
(123
|
)
|
–
|
–
|
(123
|
)
|
|||||||
Idle
facility and other non-inventoriable costs
|
(7
|
)
|
(7
|
)
|
–
|
–
|
(7
|
)
|
|||||||
Gross
profit
|
$
|
664
|
$
|
529
|
$
|
129
|
$
|
6
|
$
|
664
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
1,234
|
$
|
380
|
$
|
33
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
5
|
N/A
|
||||||||||||
Treatment
charges per above
|
N/A
|
22
|
N/A
|
||||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales and hedging per above
|
(123
|
)
|
N/A
|
N/A
|
|||||||||||
Purchase
accounting impact
|
N/A
|
223
|
159
|
||||||||||||
Eliminations
and other
|
3,668
|
1,999
|
134
|
||||||||||||
As
reported in FCX’s pro forma consolidated
|
|||||||||||||||
financial
statements
|
$
|
4,779
|
$
|
2,629
|
$
|
326
|
|||||||||
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also includes tolling revenues at
Sierrita.
|
b.
|
Includes
gold and silver product revenues and production
costs.
|
Nine
Months Ended September 30, 2007
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Molybdenum
|
a
|
Other
|
b
|
Total
|
||||||||
Revenues,
after adjustments shown below
|
$
|
3,206
|
$
|
3,206
|
$
|
658
|
$
|
43
|
$
|
3,907
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
1,398
|
1,204
|
226
|
19
|
1,449
|
||||||||||
By-product
credits
a
|
(650
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
85
|
83
|
–
|
2
|
85
|
||||||||||
Net
cash costs
|
833
|
1,287
|
226
|
20
|
1,534
|
||||||||||
Depreciation
and amortization
|
142
|
120
|
22
|
1
|
142
|
||||||||||
Noncash
and nonrecurring costs, net
|
16
|
15
|
1
|
–
|
16
|
||||||||||
Total
costs
|
991
|
1,422
|
249
|
21
|
1,692
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(135
|
)
|
(135
|
)
|
–
|
–
|
(135
|
)
|
|||||||
Idle
facility and other non- inventoriable costs
|
(26
|
)
|
(26
|
)
|
–
|
–
|
(26
|
)
|
|||||||
Gross
profit
|
$
|
2,054
|
$
|
1,623
|
$
|
409
|
$
|
22
|
$
|
2,054
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
3,907
|
$
|
1,449
|
$
|
142
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
16
|
N/A
|
||||||||||||
Treatment
charges per above
|
N/A
|
85
|
N/A
|
||||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales and hedging per above
|
(135
|
)
|
N/A
|
N/A
|
|||||||||||
Purchase
accounting impact
|
N/A
|
188
|
126
|
||||||||||||
Eliminations
and other
|
11,277
|
5,768
|
800
|
||||||||||||
As
reported in FCX’s pro forma consolidated
|
|||||||||||||||
financial
results
|
$
|
15,049
|
$
|
7,506
|
$
|
1,068
|
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also includes tolling revenues at
Sierrita.
|
b.
|
Includes
gold and silver product revenues and production
costs.
|
Nine
Months Ended September
30, 2006
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Molybdenum
|
a
|
Other
|
b
|
Total
|
||||||||
Revenues,
after adjustments shown below
|
$
|
3,025
|
$
|
3,025
|
$
|
576
|
$
|
34
|
$
|
3,635
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
1,041
|
823
|
229
|
20
|
1,072
|
||||||||||
By-product
credits
a
|
(579
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
66
|
63
|
–
|
3
|
66
|
||||||||||
Net
cash costs
|
528
|
886
|
229
|
23
|
1,138
|
||||||||||
Depreciation
and amortization
|
104
|
85
|
18
|
1
|
104
|
||||||||||
Noncash
and nonrecurring costs, net
|
15
|
14
|
1
|
–
|
15
|
||||||||||
Total
costs
|
647
|
985
|
248
|
24
|
1,257
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(1,351
|
)
|
(1,351
|
)
|
–
|
–
|
(1,351
|
)
|
|||||||
Idle
facility and other non-inventoriable costs
|
(20
|
)
|
(20
|
)
|
–
|
–
|
(20
|
)
|
|||||||
Gross
profit
|
$
|
1,007
|
$
|
669
|
$
|
328
|
$
|
10
|
$
|
1,007
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
3,635
|
$
|
1,072
|
$
|
104
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
15
|
N/A
|
||||||||||||
Treatment
charges per above
|
N/A
|
66
|
N/A
|
||||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales and hedging per above
|
(1,351
|
)
|
N/A
|
N/A
|
|||||||||||
Purchase
accounting impact
|
N/A
|
1,281
|
481
|
||||||||||||
Eliminations
and other
|
9,692
|
5,126
|
358
|
||||||||||||
As
reported in FCX’s pro forma consolidated
|
|||||||||||||||
financial
statements
|
$
|
11,976
|
$
|
7,560
|
$
|
943
|
|||||||||
a.
|
Molybdenum
by-product credits reflect volumes produced at market-based pricing,
and
also includes tolling revenues at
Sierrita.
|
b.
|
Includes
gold and silver product revenues and production
costs.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
September
30,
|
September
30,
|
|||||||||||
(In
Millions)
|
2007
|
2006
|
2007
|
2006
|
||||||||
Revenues
|
$
|
278
|
$
|
200
|
$
|
741
|
$
|
607
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
43
|
34
|
123
|
101
|
||||||||
Net
cash costs
|
43
|
34
|
123
|
101
|
||||||||
Depreciation
and amortization
|
9
|
8
|
25
|
25
|
||||||||
Noncash
and nonrecurring costs, net
|
–
|
–
|
–
|
1
|
||||||||
Total
costs
|
52
|
43
|
149
|
126
|
||||||||
Gross
profitb
|
$
|
226
|
$
|
157
|
$
|
592
|
$
|
481
|
||||
Reconciliation
to Amounts Reported
|
||||||||||||
(In
Millions)
|
Production
|
Depreciation
|
||||||||||
and
|
and
|
|||||||||||
Three
Months Ended September 30, 2007
|
Revenues
|
Delivery
|
Amortization
|
|||||||||
Totals
presented above
|
$
|
278
|
$
|
43
|
$
|
9
|
||||||
Purchase
accounting impact
|
N/A
|
40
|
9
|
|||||||||
Other
molybdenum operations
|
241
|
297
|
4
|
|||||||||
Primary
molybdenum segment
|
519
|
380
|
22
|
|||||||||
Eliminations
and other
|
4,547
|
2,282
|
334
|
|||||||||
As
reported in FCX’s consolidated
|
||||||||||||
financial
statements
|
$
|
5,066
|
$
|
2,662
|
$
|
356
|
||||||
Three
Months Ended September 30, 2006
|
||||||||||||
Totals
presented above
|
$
|
200
|
$
|
34
|
$
|
8
|
||||||
Purchase
accounting impact
|
N/A
|
223
|
159
|
|||||||||
Eliminations
and other
|
4,579
|
2,372
|
159
|
|||||||||
As
reported in FCX’s pro forma
|
||||||||||||
consolidated
financial results
|
$
|
4,779
|
$
|
2,629
|
$
|
326
|
||||||
Nine
Months Ended September 30, 2007
|
||||||||||||
Totals
presented above
|
$
|
741
|
$
|
123
|
$
|
25
|
||||||
Purchase
accounting impact
|
N/A
|
188
|
126
|
|||||||||
Eliminations
and other
|
14,308
|
7,195
|
917
|
|||||||||
As
reported in FCX’s pro forma
|
||||||||||||
consolidated
financial results
|
$
|
15,049
|
$
|
7,506
|
$
|
1,068
|
||||||
Nine
Months Ended September 30,
2006
|
||||||||||||
Totals
presented above
|
$
|
607
|
$
|
101
|
$
|
25
|
||||||
Purchase
accounting impact
|
N/A
|
1,281
|
481
|
|||||||||
Eliminations
and other
|
11,369
|
6,178
|
437
|
|||||||||
As
reported in FCX’s pro forma
|
||||||||||||
consolidated
financial results
|
$
|
11,976
|
$
|
7,560
|
$
|
943
|
||||||
a.
|
Three
months ended September 30, 2007, represents actual financial
results.
|
b.
|
Gross
profit reflects sales of Henderson products based on volumes produced
at
market-based pricing. On a consolidated basis, the Primary Molybdenum
segment includes profits on sales as they are made to third parties
and
realizations based on actual contract
terms.
|
Three
Months Ended September
30, 2007
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
Millions)
|
Method
|
Copper
|
Other
|
a
|
Total
|
|||||||
Revenues,
after adjustments shown below
|
$
|
1,436
|
$
|
1,436
|
$
|
36
|
$
|
1,472
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
369
|
358
|
15
|
373
|
||||||||
By-product
credits
|
(32
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
90
|
88
|
2
|
90
|
||||||||
Net
cash costs
|
427
|
446
|
17
|
463
|
||||||||
Depreciation
and amortization
|
55
|
54
|
1
|
55
|
||||||||
Noncash
and nonrecurring costs, net
|
1
|
1
|
–
|
1
|
||||||||
Total
costs
|
483
|
501
|
18
|
519
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales and hedging
|
(33
|
)
|
(33
|
)
|
–
|
(33
|
)
|
|||||
Idle
facility and other non-inventoriable costs
|
(7
|
)
|
(7
|
)
|
–
|
(7
|
)
|
|||||
Gross
profit
|
$
|
913
|
$
|
895
|
$
|
18
|
$
|
913
|
||||
Reconciliation
to Amounts Reported
|
||||||||||||
Production
|
Depreciation
|
|||||||||||
and
|
and
|
|||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
|||||||||
Totals
presented above
|
$
|
1,472
|
$
|
373
|
$
|
55
|
||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
1
|
N/A
|
|||||||||
Less:
Treatment charges per above
|
(90
|
)
|
N/A
|
N/A
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales and hedging per above
|
(33
|
)
|
N/A
|
N/A
|
||||||||
Purchased
metal
|
43
|
43
|
N/A
|
|||||||||
Purchase
accounting impact
|
N/A
|
76
|
40
|
|||||||||
Eliminations
and other
|
(43
|
)
|
(38
|
)
|
(1
|
)
|
||||||
Total
South American mining operations
|
1,349
|
455
|
94
|
|||||||||
Eliminations
and other
|
3,717
|
2,207
|
262
|
|||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
5,066
|
$
|
2,662
|
$
|
356
|
||||||
a.
|
Includes
gold, silver and molybdenum product revenues and production
costs.
|
Three
Months Ended September
30, 2006
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
Millions)
|
Method
|
Copper
|
Other
|
a
|
Total
|
|||||||
Revenues,
after adjustments shown below
|
$
|
1,038
|
$
|
1,038
|
$
|
22
|
$
|
1,060
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
257
|
251
|
6
|
257
|
||||||||
By-product
credits
|
(22
|
)
|
-
|
-
|
-
|
|||||||
Treatment
charges
|
59
|
57
|
2
|
59
|
||||||||
Net
cash costs
|
294
|
308
|
8
|
316
|
||||||||
Depreciation
and amortization
|
51
|
50
|
1
|
51
|
||||||||
Noncash
and nonrecurring costs, net
|
1
|
1
|
-
|
1
|
||||||||
Total
costs
|
346
|
359
|
9
|
368
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales and hedging
|
8
|
8
|
-
|
8
|
||||||||
Idle
facility and other non-inventoriable costs
|
(6
|
)
|
(6
|
)
|
-
|
(6
|
)
|
|||||
Gross
profit
|
$
|
694
|
$
|
681
|
$
|
13
|
$
|
694
|
||||
Reconciliation
to Amounts Reported
|
||||||||||||
Production
|
Depreciation
|
|||||||||||
and
|
and
|
|||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
|||||||||
Totals
presented above
|
$
|
1,060
|
$
|
257
|
$
|
51
|
||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
1
|
N/A
|
|||||||||
Less:
Treatment charges per above
|
(59
|
)
|
N/A
|
N/A
|
||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||
prior
period open sales and hedging per above
|
8
|
N/A
|
N/A
|
|||||||||
Purchased
metal
|
59
|
59
|
N/A
|
|||||||||
Purchase
accounting impact
|
N/A
|
223
|
159
|
|||||||||
Eliminations
and other
|
3,711
|
2,089
|
116
|
|||||||||
As
reported in FCX’s pro forma consolidated
|
||||||||||||
financial
results
|
$
|
4,779
|
$
|
2,629
|
$
|
326
|
||||||
Nine
Months Ended September
30, 2007
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
Millions)
|
Method
|
Copper
|
Other
|
a
|
Total
|
|||||||
Revenues,
after adjustments shown below
|
$
|
3,543
|
$
|
3,543
|
$
|
86
|
$
|
3,629
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
903
|
876
|
34
|
910
|
||||||||
By-product
credits
|
(79
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
216
|
211
|
5
|
216
|
||||||||
Net
cash costs
|
1,040
|
1,087
|
39
|
1,126
|
||||||||
Depreciation
and amortization
|
160
|
157
|
3
|
160
|
||||||||
Noncash
and nonrecurring costs, net
|
2
|
2
|
–
|
2
|
||||||||
Total
costs
|
1,202
|
1,246
|
42
|
1,288
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales and hedging
|
18
|
18
|
–
|
18
|
||||||||
Idle
facility and other non-inventoriable costs
|
(21
|
)
|
(20
|
)
|
(1
|
)
|
(21
|
)
|
||||
Gross
profit
|
$
|
2,338
|
$
|
2,295
|
$
|
43
|
$
|
2,338
|
||||
Reconciliation
to Amounts Reported
|
||||||||||||
Production
|
Depreciation
|
|||||||||||
and
|
and
|
|||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
|||||||||
Totals
presented above
|
$
|
3,629
|
$
|
910
|
$
|
160
|
||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
2
|
N/A
|
|||||||||
Less:
Treatment charges per above
|
(216
|
)
|
N/A
|
N/A
|
||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||
prior
period open sales and hedging per above
|
18
|
N/A
|
N/A
|
|||||||||
Purchased
metal
|
191
|
191
|
N/A
|
|||||||||
Purchase
accounting impact
|
N/A
|
188
|
126
|
|||||||||
Eliminations
and other
|
11,427
|
6,215
|
782
|
|||||||||
As
reported in FCX’s pro forma consolidated
|
||||||||||||
financial
results
|
$
|
15,049
|
$
|
7,506
|
$
|
1,068
|
||||||
a.
|
Includes
gold, silver and molybdenum product revenues and production costs,
and
also includes start-up costs related to molybdenum production at
Cerro
Verde.
|
Nine
Months Ended September 30, 2006
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
Millions)
|
Method
|
Copper
|
Other
|
a
|
Total
|
|||||||
Revenues,
after adjustments shown below
|
$
|
2,789
|
$
|
2,789
|
$
|
72
|
$
|
2,861
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
660
|
642
|
18
|
660
|
||||||||
By-product
credits
|
(72
|
)
|
-
|
-
|
-
|
|||||||
Treatment
charges
|
159
|
155
|
4
|
159
|
||||||||
Net
cash costs
|
747
|
797
|
22
|
819
|
||||||||
Depreciation
and amortization
|
147
|
145
|
2
|
147
|
||||||||
Noncash
and nonrecurring costs, net
|
1
|
1
|
-
|
1
|
||||||||
Total
costs
|
896
|
943
|
25
|
968
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales and hedging
|
(47
|
)
|
(38
|
)
|
(9
|
)
|
(47
|
)
|
||||
Idle
facility and other non-inventoriable costs
|
(15
|
)
|
(15
|
)
|
-
|
(15
|
)
|
|||||
Gross
profit
|
$
|
1,831
|
$
|
1,793
|
$
|
38
|
$
|
1,831
|
||||
Reconciliation
to Amounts Reported
|
||||||||||||
Production
|
Depreciation
|
|||||||||||
and
|
and
|
|||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
|||||||||
Totals
presented above
|
$
|
2,861
|
$
|
660
|
$
|
147
|
||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
1
|
N/A
|
|||||||||
Less:
Treatment charges per above
|
(159
|
)
|
N/A
|
N/A
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales and hedging per above
|
(47
|
)
|
N/A
|
N/A
|
||||||||
Purchased
metal
|
185
|
185
|
N/A
|
|||||||||
Purchase
accounting impact
|
N/A
|
1,281
|
481
|
|||||||||
Eliminations
and other
|
9,136
|
5,433
|
315
|
|||||||||
As
reported in FCX’s pro forma consolidated
|
||||||||||||
financial
results
|
$
|
11,976
|
$
|
7,560
|
$
|
943
|
||||||
a.
|
Includes
gold and silver product revenues and production
costs.
|
Three
Months Ended September 30, 2007
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
769
|
$
|
769
|
$
|
173
|
$
|
5
|
$
|
947
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
347
|
282
|
63
|
2
|
347
|
||||||||||
Gold
and silver credits
|
(178
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
67
|
55
|
12
|
–
|
67
|
||||||||||
Royalty
on metals
|
20
|
16
|
4
|
–
|
20
|
||||||||||
Net
cash costs
|
256
|
353
|
79
|
2
|
434
|
||||||||||
Depreciation
and amortization
|
43
|
35
|
8
|
–
|
43
|
||||||||||
Noncash
and nonrecurring costs, net
|
5
|
4
|
1
|
–
|
5
|
||||||||||
Total
costs
|
304
|
391
|
88
|
2
|
482
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales
|
(23
|
)
|
(23
|
)
|
–
|
–
|
(23
|
)
|
|||||||
PT
Smelting intercompany profit recognized
|
47
|
38
|
9
|
–
|
47
|
||||||||||
Gross
profit
|
$
|
489
|
$
|
393
|
$
|
94
|
$
|
3
|
$
|
489
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
947
|
$
|
347
|
$
|
43
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
5
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(67
|
)
|
N/A
|
N/A
|
|||||||||||
Less:
Royalty per above
|
(20
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales per above
|
(23
|
)
|
N/A
|
N/A
|
|||||||||||
Total
Indonesia mining operations
|
837
|
351
|
43
|
||||||||||||
Eliminations
and other
|
4,229
|
2,311
|
313
|
||||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
5,066
|
$
|
2,662
|
$
|
356
|
|||||||||
Three
Months Ended September 30, 2006
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
1,097
|
$
|
1,097
|
$
|
295
|
$
|
13
|
$
|
1,404
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
355
|
277
|
75
|
3
|
355
|
||||||||||
Gold
and silver credits
|
(307
|
)
|
-
|
-
|
-
|
-
|
|||||||||
Treatment
charges
|
141
|
110
|
30
|
1
|
141
|
||||||||||
Royalty
on metals
|
37
|
29
|
8
|
-
|
37
|
||||||||||
Net
cash costs
|
226
|
416
|
112
|
5
|
533
|
||||||||||
Depreciation
and amortization
|
50
|
39
|
10
|
1
|
50
|
||||||||||
Noncash
and nonrecurring costs, net
|
9
|
7
|
2
|
-
|
9
|
||||||||||
Total
costs
|
285
|
462
|
124
|
6
|
592
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales
|
37
|
a
|
50
|
-
|
(13
|
)
|
37
|
||||||||
PT
Smelting intercompany profit elimination
|
(20
|
)
|
(16
|
)
|
(4
|
)
|
-
|
(20
|
)
|
||||||
Gross
profit
|
$
|
829
|
$
|
669
|
$
|
166
|
$
|
(6
|
)
|
$
|
829
|
||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
1,404
|
$
|
355
|
$
|
50
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
9
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(141
|
)
|
N/A
|
N/A
|
|||||||||||
Less:
Royalty per above
|
(37
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales per above
|
37
|
N/A
|
N/A
|
||||||||||||
Total
Indonesia mining operations
|
1,262
|
363
|
50
|
||||||||||||
Eliminations
and other
|
374
|
429
|
10
|
||||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
1,636
|
$
|
792
|
$
|
60
|
|||||||||
Nine
Months Ended September 30, 2007
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
3,325
|
$
|
3,325
|
$
|
1,380
|
$
|
41
|
$
|
4,746
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
1,040
|
729
|
302
|
9
|
1,040
|
||||||||||
Gold
and silver credits
|
(1,421
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
332
|
232
|
97
|
3
|
332
|
||||||||||
Royalty
on metals
|
117
|
82
|
34
|
1
|
117
|
||||||||||
Net
cash costs
|
68
|
1,043
|
433
|
13
|
1,489
|
||||||||||
Depreciation
and amortization
|
158
|
111
|
46
|
1
|
158
|
||||||||||
Noncash
and nonrecurring costs, net
|
24
|
17
|
7
|
–
|
24
|
||||||||||
Total
costs
|
250
|
1,171
|
486
|
14
|
1671
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales
|
11
|
11
|
–
|
–
|
11
|
||||||||||
PT
Smelting intercompany profit recognized
|
11
|
8
|
3
|
–
|
11
|
||||||||||
Gross
profit
|
$
|
3,097
|
$
|
2,173
|
$
|
897
|
$
|
27
|
$
|
3,097
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
4,746
|
$
|
1,040
|
$
|
158
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
24
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(332
|
)
|
N/A
|
N/A
|
|||||||||||
Less:
Royalty per above
|
(117
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales per above
|
11
|
N/A
|
N/A
|
||||||||||||
Total
Indonesia mining operations
|
4,308
|
1,064
|
158
|
||||||||||||
Eliminations
and other
|
8,447
|
5,041
|
688
|
||||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
12,755
|
$
|
6,105
|
$
|
846
|
|||||||||
Nine
Months Ended September 30, 2006
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
2,607
|
$
|
2,607
|
$
|
753
|
$
|
31
|
$
|
3,391
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
901
|
692
|
200
|
8
|
901
|
||||||||||
Gold
and silver credits
|
(784
|
)
|
-
|
-
|
-
|
-
|
|||||||||
Treatment
charges
|
332
|
256
|
74
|
3
|
332
|
||||||||||
Royalty
on metals
|
80
|
61
|
18
|
1
|
80
|
||||||||||
Net
cash costs
|
529
|
1,009
|
292
|
12
|
1,313
|
||||||||||
Depreciation
and amortization
|
118
|
90
|
26
|
1
|
118
|
||||||||||
Noncash
and nonrecurring costs, net
|
31
|
24
|
7
|
-
|
31
|
||||||||||
Total
costs
|
677
|
1,123
|
325
|
13
|
1,461
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and gold hedging
|
115
|
a
|
197
|
(69
|
)
|
(13
|
)
|
115
|
|||||||
PT
Smelting intercompany profit elimination
|
(7
|
)
|
(6)
|
(1
|
)
|
-
|
(7
|
)
|
|||||||
Gross
profit
|
$
|
2,038
|
$
|
1,675
|
$
|
358
|
$
|
4
|
$
|
2,038
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
Production
|
Depreciation
|
||||||||||||||
and
|
and
|
||||||||||||||
(In
Millions)
|
Revenues
|
Delivery
|
Amortization
|
||||||||||||
Totals
presented above
|
$
|
3,391
|
$
|
901
|
$
|
118
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
31
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(332
|
)
|
N/A
|
N/A
|
|||||||||||
Less:
Royalty per above
|
(80
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging per above
|
115
|
N/A
|
N/A
|
||||||||||||
Total
Indonesia mining operations
|
3,094
|
931
|
118
|
||||||||||||
Eliminations
and other
|
1,054
|
944
|
29
|
||||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
4,148
|
$
|
1,875
|
$
|
147
|
|||||||||
a.
|
Includes
a $69 million loss on the redemption of FCX’s Gold-Denominated Preferred
Stock, Series II, and a $13 million loss on the redemption of FCX’s
Silver-Denominated Preferred Stock.
|
(d)
Maximum Number
|
|||||||||
(c)
Total Number of
|
(or
Approximate
|
||||||||
(a)
Total
|
Shares
(or Units)
|
Dollar
Value) of Shares
|
|||||||
Number
of
|
(b)
Average
|
Purchased
as Part of
|
(or
Units) That May
|
||||||
Shares
(or Units)
|
Price
Paid Per
|
Publicly
Announced
|
Yet
Be Purchased Under
|
||||||
Period
|
Purchaseda
|
Share
(or Unit)
|
Plans
or Programs
|
the
Plans or Programs
|
|||||
July
1-31, 2007
|
4,054
|
$
|
88.75
|
-
|
-
|
||||
August
1-31, 2007
|
624
|
$
|
82.64
|
-
|
-
|
||||
September
1-30, 2007
|
118
|
$
|
108.43
|
-
|
-
|
||||
Total
|
4,796
|
$
|
88.44
|
-
|
-
|
||||
a
|
This
category includes shares repurchased under FCX’s applicable stock option
and restricted stock plans (Plans) and its non-qualified supplemental
savings plan (SSP). Through the Plans, FCX repurchases shares to
satisfy
tax obligations on restricted stock awards, and in the SSP repurchases
shares as a result of FCX dividends
paid.
|
Exhibit
|
Description
|
|
Number |
2.1
|
Agreement
and Plan of Merger dated as of November 18, 2006, by and among
Freeport-McMoRan Copper & Gold Inc. (FCX), Phelps Dodge Corporation
and Panther Acquisition Corporation. Incorporated by reference
to Exhibit 2.1 to the Preliminary Joint Proxy Statement/Prospectus
included in the Registration Statement on Form S-4 (File No. 333-139252)
filed December 11, 2006, as amended on January 18, 2007 and February
12,
2007.
|
|
3.1
|
Amended
and Restated Certificate of Incorporation of FCX. Incorporated by
reference to Exhibit 3.1 to the Current Report on Form 8-K of FCX
dated
March 19, 2007.
|
|
3.2
|
Amended
and Restated By-Laws of FCX, as amended through May 1, 2007. Incorporated
by reference to Exhibit 3.3 to the Current Report on Form 8-K of
FCX dated
May 1, 2007.
|
|
4.1
|
Certificate
of Designations of 5½% Convertible Perpetual Preferred Stock of FCX.
Incorporated by reference to Exhibit 4.1 to the Current Report on
Form 8-K
of FCX dated March 30, 2004.
|
|
4.2
|
Credit
Agreement dated as of March 19, 2007, by and among FCX, the lenders
party
thereto, the issuing banks party thereto, JPMorgan Chase Bank, N.A.
as
administrative agent and collateral agent, and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as syndication agent. Incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K of FCX
dated
March 19, 2007.
|
|
4.3
|
Amendment
Agreement dated as of July 3, 2007, amending the Senior Secured Credit
Agreement dated as of March 19, 2007, among Freeport-McMoRan Copper
&
Gold Inc., the Lenders party thereto, the Issuing Banks party thereto,
and
JPMorgan Chase Bank, N.A., as Administrative Agent and as Collateral
Agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as
Syndication Agent. Incorporated by reference to Exhibit 10.1 to
the Current Report on Form 8-K of FCX dated July 10,
2007.
|
|
4.4
|
Amended
and Restated Credit Agreement dated as of March 19, 2007, by and
among
FCX, PT Freeport Indonesia, the lenders party thereto, the issuing
banks
party thereto, JPMorgan Chase Bank, N.A. as administrative agent,
collateral agent, security agent and JAA security agent, U.S. Bank
National Association, as FI trustee, and Merrill Lynch, Pierce, Fenner
& Smith Incorporated, as syndication agent. Incorporated by reference
to Exhibit 10.2 to the Current Report on Form 8-K of FCX dated March
19,
2007.
|
|
4.5
|
Amendment
Agreement dated as of July 3, 2007, amending the Amended and Restated
Senior Secured Credit Agreement dated as of March 19, 2007, which
amended
and restated the Amended and Restated Credit Agreement, dated as
of July
25, 2006, which amended and restated the Amended and Restated Credit
Agreement, dated as of September 30, 2003, which amended and restated
the
Amended and Restated Credit Agreement, dated as of October 19, 2001,
which
amended and restated both the Credit Agreement, originally dated
as of
October 27, 1989 and amended and restated as of June 1, 1993 and
the
Credit Agreement, originally dated as of June 30, 1995, among
Freeport-McMoRan Copper & Gold Inc., PT Freeport Indonesia, U.S. Bank
National Association, as trustee for the Lenders and certain other
lenders
under the FI Trust Agreement, the Lenders party thereto, the Issuing
Banks
party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent,
Security Agent, JAA Security Agent and Collateral Agent, and Merrill
Lynch, Pierce, Fenner & Smith Incorporated, as Syndication
Agent. Incorporated by reference to Exhibit 10.2 to the Current
Report on Form 8-K of FCX dated July 10, 2007.
|
|
4.6
|
Rights
Agreement dated as of May 3, 2000, between FCX and ChaseMellon Shareholder
Services, L.L.C., as Rights Agent. Incorporated by reference to Exhibit
4.26 to the Quarterly Report on Form 10-Q of FCX for the quarter
ended
March 31, 2000.
|
4.7
|
Amendment
No. 1 to Rights Agreement dated as of February 26, 2002, between
FCX and
Mellon Investor Services. Incorporated by reference to Exhibit
4.16 to the
Quarterly Report on Form 10-Q of FCX for the quarter ended March
31,
2002.
|
||
4.8
|
Indenture
dated as of March 19, 2007, from FCX to The Bank of New York,
as Trustee,
with respect to the 8.25% Senior Notes due 2015, 8.375% Senior
Notes due
2017, and the Senior Floating Rate Notes due 2015. Incorporated
by
reference to Exhibit 4.1 to the Current Report on Form 8-K of
FCX dated
March 19, 2007.
|
||
4.9
|
Certificate
of Designations of 6¾% Mandatory Convertible Preferred Stock of FCX.
Incorporated by reference to Exhibit 4.1 to the Current Report
on Form 8-K
of FCX dated March 22, 2007.
|
||
4.10
|
Indenture
dated as of February 11, 2003, from FCX to The Bank of New York,
as
Trustee, with respect to the 7% Convertible Senior Notes due
2011.
Incorporated by reference to Exhibit 4.1 to the Current Report
on Form 8-K
of FCX dated February 11, 2003.
|
||
Note: Certain
instruments with respect to long-term debt of FCX have not been
filed as
exhibits to this Quarterly Report on Form 10-Q since the total
amount of
securities authorized under any such instrument does not exceed
10 percent
of the total assets of FCX and its subsidiaries on a consolidated
basis. FCX agrees to furnish a copy of each such instrument
upon request of the Securities and Exchange
Commission.
|
|||
10.1
|
Contract
of Work dated December 30, 1991, between the Government of the
Republic of
Indonesia and PT Freeport Indonesia. Incorporated by reference
to Exhibit
10.1 to the FCX November 5, 2001 Form S-3.
|
||
10.2
|
Contract
of Work dated August 15, 1994, between the Government of the
Republic of
Indonesia and PT Irja Eastern Minerals Corporation. Incorporated
by
reference to Exhibit 10.2 to the FCX November 5, 2001 Form
S-3.
|
||
10.3
|
Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. RTZ-CRA Indonesia with respect to a certain contract of work. Incorporated by reference to Exhibit 10.4 to the FCX November 5, 2001 Form S-3. | ||
10.4
|
Agreement
dated as of October 11, 1996, to Amend and Restate Trust Agreement
among
PT Freeport Indonesia, FCX, the RTZ Corporation PLC, P.T. RTZ-CRA
Indonesia, RTZ Indonesian Finance Limited and First Trust of
New York,
National Association, and The Chase Manhattan Bank, as Administrative
Agent, JAA Security Agent and Security Agent. Incorporated by
reference to
Exhibit 10.3 to the Current Report on Form 8-K of FCX dated November
13,
1996.
|
||
10.5
|
Concentrate
Purchase and Sales Agreement dated effective December 11, 1996,
between PT
Freeport Indonesia and PT Smelting. Incorporated by reference
to Exhibit
10.3 to the FCX November 5, 2001 Form S-3.
|
||
10.6
|
Second
Amended and Restated Joint Venture and Shareholders’ Agreement dated as of
December 11, 1996, among Mitsubishi Materials Corporation, Nippon
Mining
and Metals Company, Limited and PT Freeport Indonesia. Incorporated
by
reference to Exhibit 10.5 to the FCX November 5, 2001 Form
S-3.
|
||
10.7
|
Participation
Agreement, dated as of March 16, 2005, among Phelps Dodge Corporation,
Cyprus Amax Minerals Company, a Delaware corporation, Cyprus
Metals
Company, a Delaware corporation, Cyprus Climax Metals Company,
a Delaware
corporation, Sumitomo Corporation, a Japanese corporation, Summit
Global
Management, B.V., a Dutch corporation, Sumitomo Metal Mining
Co., Ltd., a
Japanese corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian
sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A.,
a
Peruvian sociedad anonima abierta. Incorporated by reference to
Exhibit 10.1 to the Current Report on Form 8-K of Phelps Dodge
Corporation
dated March 16, 2005.
|
||
10.8
|
Guarantee,
dated as of March 16, 2005, among Phelps Dodge Corporation, Sumitomo
Corporation, a Japanese corporation, and Sumitomo Metal Mining
Co., Ltd.,
a Japanese corporation incorporated by reference to Exhibit 10.2
to the
Current Report on Form 8-K of Phelps Dodge Corporation dated
March 16,
2005.
|
|
10.9
|
Shareholders
Agreement, dated as of June 1, 2005, among Phelps Dodge Corporation,
Cyprus Climax Metals Company, a Delaware corporation, Sumitomo
Corporation, a Japanese corporation, Sumitomo Metal Mining Co.,
Ltd., a
Japanese corporation, Summit Global Management B.V., a Dutch
corporation,
SMM Cerro Verde Netherlands, B.V., a Dutch corporation, Compañia de Minas
Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and
Sociedad
Minera Cerro Verde S.A.A., a Peruvian sociedad anonima
abierta. Incorporated by reference to Exhibit 10.1 to the
Current Report on Form 8-K of Phelps Dodge Corporation dated
June 1,
2005.
|
|
10.10
|
Master
Participation Agreement, dated as of September 30, 2005, among
Sociedad
Minera Cerro Verde S.A.A., Japan Bank for International Cooperation,
Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi,
Ltd.,
KfW, Calyon New York Branch, The Royal Bank of Scotland plc,
The Bank of
Nova Scotia, Mizuho Corporation Bank, Ltd. and Calyon New York
Branch, as
administrative agent. Incorporated by reference to Exhibit 10.1
to the Quarterly Report on Form 10-Q of Phelps Dodge Corporation
for the
quarter ended September 30, 2005 (the PD 2005 Third Quarter Form
10-Q). First Amendment to Master Participation Agreement, dated
as of December 16, 2005. Incorporated by reference to Exhibit
10.22 to the Annual Report on Form 10-K of Phelps Dodge Corporation
for
the fiscal year ended December 31, 2005 (the PD 2005 Form
10-K).
|
|
10.11
|
Completion
Guarantee, dated as of September 30, 2005, among Sumitomo Metal
Mining
Co., Ltd., Sumitomo Corporation, Compañia de Minas Buenaventura S.A.A.,
Phelps Dodge Corporation, Japan Bank for International Cooperation,
Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi,
Ltd.,
KfW, Calyon New York Branch, The Royal Bank of Scotland plc,
The Bank of
Nova Scotia, Mizuho Corporate Bank, Ltd. and Calyon New York
Branch, as
administrative agent. Incorporated by reference to Exhibit 10.2
to the PD 2005 Third Quarter Form 10-Q.
|
|
10.12
|
Master
Security Agreement, dated as of September 30, 2005, among Sociedad
Minera
Cerro Verde S.A.A., Japan Bank for International Cooperation,
Sumitomo
Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi, Ltd.,
KfW,
Calyon New York Branch, The Royal Bank of Scotland plc, The Bank
of Nova
Scotia, Mizuho Corporate Bank, Ltd., Calyon New York Branch,
as
administrative agent, and Citibank, N.A. and Citibank del Peru
S.A. Incorporated by reference to Exhibit 10.3 to the PD 2005
Third Quarter Form 10-Q.
|
|
10.13
|
Transfer
Restrictions Agreement, dated as of September 30, 2005, among
SMM Cerro
Verde Netherlands, B.V., Compañia de Minas Buenaventura S.A.A., Cyprus
Climax Metals Company, Sumitomo Metal Mining Co., Ltd., Sumitomo
Corporation, Phelps Dodge Corporation, Japan Bank for International
Cooperation, Sumitomo Mitsui Banking Corporation, The Bank of
Tokyo-Mitsubishi, Ltd., KfW, Calyon New York Branch, The Royal
Bank of
Scotland plc, The Bank of Nova Scotia, Mizuho Corporate Bank,
Ltd., and
Calyon New York Branch, as administrative agent. Incorporated
by reference to Exhibit 10.4 to the PD 2005 Third Quarter Form
10-Q
.
|
|
10.14
|
JBIC
Loan Agreement, dated as of September 30, 2005, among Sociedad
Minera
Cerro Verde S.A.A., Japan Bank for International Cooperation,
and Sumitomo
Mitsui Banking Corporation, as JBIC Agent. Incorporated by
reference to Exhibit 10.5 to the PD 2005 Third Quarter Form
10-Q. First Amendment to JBIC Loan Agreement, dated as of
December 19, 2005. Incorporated by reference to Exhibit 10.26
to the PD 2005 Form 10-K.
|
|
10.15
|
KfW
Loan Agreement, dated as of September 30, 2005, between Sociedad
Minera
Cerro Verde S.A.A. and KfW. Incorporated by reference to
Exhibit 10.6 to the PD 2005 Third Quarter Form
10-Q.
|
10.16
|
Loan
Agreement, dated as of September 30, 2005, among Sociedad Minera
Cerro
Verde S.A.A., Calyon New York Branch (as administrative agent),
Calyon New
York Branch, Mizuho Corporate Bank, Ltd., The Bank of Nova Scotia,
and The
Royal Bank of Scotland plc. Incorporated by reference to
Exhibit 10.7 to the PD 2005 Third Quarter Form 10-Q.
|
|
10.17
|
Parent
Company Guarantee, dated as of September 30, 2005, between Phelps
Dodge
Corporation and Sociedad Minera Cerro Verde S.A.A. (this guarantee
is with
respect to the Operator’s Agreement, dated June 1, 2005, between Sociedad
Minera Cerro Verde S.A.A. and Minera Phelps Dodge del Peru
S.A.C.). Incorporated by reference to Exhibit 10.8 to the PD
2005 Third Quarter Form 10-Q.
|
|
10.18
|
Master
Agreement and Plan of Merger between Columbian Chemicals Company,
Columbian Chemicals Acquisition LLC and Columbian Chemicals Merger
Sub,
Inc., dated November 15, 2005. Incorporated by reference to
Exhibit 10.31 to the PD 2005 Form 10-K.
|
|
10.19
|
Phelps
Dodge Corporation Retiree Medical Plan Welfare Benefit Trust
Agreement
between Phelps Dodge Corporation and The Northern Trust Company,
dated
December 15, 2005. Incorporated by reference to Exhibit 10.33
to the PD 2005 Form 10-K.
|
|
10.20
|
Reclamation
and Remediation Trust Agreement between Phelps Dodge Corporation
and Wells
Fargo Delaware Trust Company, dated December 22,
2005. Incorporated by reference to Exhibit 10.34 to the PD 2005
Form 10-K.
|
|
Executive
Compensation Plans and Arrangements (Exhibits 10.21 through
10.80)
|
||
10.21
|
FCX
Performance Incentive Awards Program as amended effective February
2,
1999. Incorporated by reference to the Annual Report on Form
10-K of FCX
for the fiscal year ended December 31, 1998 (the FCX 1998 Form
10-K).
|
|
10.22
|
FCX
President’s Award Program. Incorporated by reference to Exhibit 10.7 to
the FCX November 5, 2001 Form S-3.
|
|
10.23
|
FCX
1995 Stock Option Plan, as amended and restated. Incorporated
by reference
to Exhibit 10.23 to the FCX First-Quarter 2007 Form
10-Q).
|
|
10.24
|
FCX
Amended and Restated 1999 Stock Incentive Plan, as amended and
restated.
Incorporated by reference to Exhibit 10.24 to the FCX First-Quarter
2007
Form 10-Q.
|
|
10.25
|
Form
of Notice of Grant of Nonqualified Stock Options under the 1999
Stock
Incentive Plan. Incorporated by reference to Exhibit 10.14 to
the
Quarterly Report on Form 10-Q of FCX for the quarter ended June
30, 2005
(the FCX 2005 Second Quarter Form 10-Q).
|
|
10.26
|
Form
of Restricted Stock Unit Agreement under the 1999 Stock Incentive
Plan. Incorporated by reference to Exhibit 10.26 to the
Quarterly Report on Form 10-Q of FCX for the quarter ended June
30, 2007
(the FCX 2007 Second Quarter Form 10-Q).
|
|
10.27
|
Form
of Performance-Based Restricted Stock Unit Agreement under the
1999 Stock
Incentive Plan. Incorporated by reference to Exhibit 10.27 to
the FCX 2007 Second Quarter Form 10-Q.
|
|
10.28
|
FCX
1999 Long-Term Performance Incentive Plan. Incorporated by reference
to
Exhibit 10.19 to the Annual Report of FCX on Form 10-K for the
fiscal year
ended December 31, 1999 (the FCX 1999 Form 10-K).
|
|
10.29
|
FCX
Stock Appreciation Rights Plan dated May 2, 2000. Incorporated
by
reference to Exhibit 10.20 to the Quarterly Report on Form 10-Q
of FCX for
the quarter ended June 30, 2001 (the FCX 2001 Second Quarter
Form
10-Q).
|
10.30
|
FCX
2003 Stock Incentive Plan, as amended and restated. Incorporated
by
reference to Exhibit 10.30 to the FCX First-Quarter 2007 Form
10-Q.
|
|
10.31
|
Form
of Notice of Grant of Nonqualified Stock Options under the 2003
Stock
Incentive Plan. Incorporated by reference to Exhibit 10.20 to
the FCX 2005
Second Quarter Form 10-Q.
|
|
10.32
|
Form
of Restricted Stock Unit Agreement under the 2003 Stock Incentive
Plan. Incorporated by reference to Exhibit 10.32 to the FCX
2007 Second Quarter Form 10-Q.
|
|
10.33
|
Form
of Performance-Based Restricted Stock Unit Agreement under the
2003 Stock
Incentive Plan. Incorporated by reference to Exhibit 10.33 to
the FCX 2007 Second Quarter Form 10-Q.
|
|
10.34
|
FCX
1995 Stock Option Plan for Non-Employee Directors, as amended
and
restated. Incorporated by reference to Exhibit 10.34 to the FCX
First-Quarter 2007 Form 10-Q.
|
|
10.35
|
FCX
2004 Director Compensation Plan, as amended and restated. Incorporated
by
reference to Exhibit 10.35 to the FCX First-Quarter 2007 Form
10-Q.
|
|
10.36
|
Form
of Amendment No. 1 to Notice of Grant of Nonqualified Stock Options
and
Stock Appreciation Rights under the 2004 Director Compensation
Plan.
Incorporated by reference to Exhibit 10.4 to the Current Report
on Form
8-K of FCX dated May 2, 2006.
|
|
10.37
|
FCX
Amended and Restated 2006 Stock Incentive Plan. Incorporated
by reference
to Exhibit 10.1 to the Current Report on Form 8-K of FCX dated
July 10,
2007.
|
|
10.38
|
Form
of Notice of Grant of Nonqualified Stock Options under the 2006
Stock
Incentive Plan. Incorporated by reference to Exhibit 10.7 to
the Current
Report on Form 8-K of FCX dated May 2, 2006.
|
|
10.39
|
Form
of Restricted Stock Unit Agreement under the 2006 Stock Incentive
Plan. Incorporated by reference to Exhibit 10.39 to the FCX
2007 Second Quarter Form 10-Q.
|
|
10.40
|
Form
of Performance-Based Restricted Stock Unit Agreement under the
2006 Stock
Incentive Plan. Incorporated by reference to Exhibit 10.40 to
the FCX 2007 Second Quarter Form 10-Q.
|
|
10.41
|
FCX
Director Compensation. Incorporated by reference to Exhibit 10.25
to the
Annual Report on Form 10-K of FCX for the fiscal year ended December
31,
2004 (the FCX 2004 Form 10-K).
|
|
10.42
|
FCX
Supplemental Executive Retirement Plan, as amended and restated.
Incorporated by reference to Exhibit 10.1 to the Current Report
on Form
8-K of FCX dated January 30, 2007.
|
|
10.43
|
FCX
2005 Annual Incentive Plan. Incorporated by reference to Exhibit
10.1 to
the Current Report on Form 8-K of FCX dated May 5,
2005.
|
|
10.44
|
FCX
Executive Services Program. Incorporated by reference to Exhibit
10.5 to
the Current Report on Form 8-K of FCX dated May 2,
2006.
|
|
10.45
|
FM
Services Company Performance Incentive Awards Program as amended
effective
February 2, 1999. Incorporated by reference to Exhibit 10.19
to the FCX
1998 Form 10-K.
|
|
10.46
|
Consulting
Agreement dated as of December 22, 1988, with Kissinger Associates,
Inc.
(Kissinger Associates). Incorporated by reference to Exhibit
10.21 to the
Annual Report on Form 10-K of FCX for the fiscal year ended December
31,
1997 (the FCX 1997 Form 10-K).
|
|
10.47
|
Letter
Agreement dated May 1, 1989, with Kent Associates, Inc. (Kent
Associates,
predecessor in interest to Kissinger Associates). Incorporated
by
reference to Exhibit 10.22 to the FCX 1997 Form
10-K.
|
10.48
|
Letter
Agreement dated January 27, 1997, among Kissinger Associates,
Kent
Associates, FCX, Freeport-McMoRan Inc., and FM Services Company
(FMS).
Incorporated by reference to Exhibit 10.26 to the Annual Report
on Form
10-K of FCX for the fiscal year ended December 31, 2001 (the
FCX 2001 Form
10-K).
|
|
Supplemental
Consulting Agreement with Kissinger Associates and Kent Associates,
effective as of January 1, 2008.
|
||
10.50
|
Agreement
for Consulting Services between FTX and B. M. Rankin, Jr. effective
as of
January 1, 1990 (assigned to FMS as of January 1, 1996). Incorporated
by
reference to Exhibit 10.24 to the FCX 1997 Form 10-K.
|
|
10.51
|
Supplemental
Agreement between FMS and B. M. Rankin, Jr. dated December 15,
1997.
Incorporated by reference to Exhibit 10.25 to the FCX 1997 Form
10-K.
|
|
10.52
|
Supplemental
Letter Agreement between FMS and B. M. Rankin, Jr., effective
as of
January 1, 2007. Incorporated by reference to Exhibit 10.41 to
the Annual Report on Form 10-K of FCX for the fiscal year ended
December
31, 2000.
|
|
10.53
|
Letter
Agreement effective as of January 7, 1997, between Senator J.
Bennett
Johnston, Jr. and FMS. Incorporated by reference to Exhibit 10.31
to the
FCX 2001 Form 10-K.
|
|
10.54
|
Supplemental
Letter Agreement dated July 14, 2003, between J. Bennett Johnston,
Jr. and
FMS. Incorporated by reference to Exhibit 10.28 to the Quarterly
Report on
Form 10-Q of FCX for the quarter ended June 30, 2003.
|
|
10.55
|
Supplemental
Letter Agreement between FMS and J. Bennett Johnston, Jr., dated
January
18, 2005. Incorporated by reference to Exhibit 10.40 to the FCX
2004 Form
10-K.
|
|
Supplemental
Consulting Agreement between FMS and J. Bennett Johnston, Jr.,
effective
as of January 1, 2008.
|
||
10.57
|
Letter
Agreement dated November 1, 1999, between FMS and Gabrielle K.
McDonald.
Incorporated by reference to Exhibit 10.33 to the FCX 1999 Form
10-K.
|
|
Supplemental
Letter Agreement, between FMS and Gabrielle K. McDonald, effective
as of
January 1, 2008.
|
||
10.59
|
Executive
Employment Agreement dated April 30, 2001, between FCX and James
R.
Moffett. Incorporated by reference to Exhibit 10.35 to the FCX
2001 Second
Quarter Form 10-Q.
|
|
10.60
|
Executive
Employment Agreement dated April 30, 2001, between FCX and Richard
C.
Adkerson. Incorporated by reference to Exhibit 10.36 to the FCX
2001
Second Quarter Form 10-Q.
|
|
10.61
|
Change
of Control Agreement dated April 30, 2001, between FCX and James
R.
Moffett. Incorporated by reference to Exhibit 10.37 to the FCX
2001 Second
Quarter Form 10-Q.
|
|
10.62
|
Change
of Control Agreement dated April 30, 2001, between FCX and Richard
C.
Adkerson. Incorporated by reference to Exhibit 10.38 to the FCX
2001
Second Quarter Form 10-Q.
|
|
10.63
|
First
Amendment to Executive Employment Agreement dated December 10,
2003,
between FCX and James R. Moffett. Incorporated by reference to
Exhibit
10.36 to the FCX 2003 Form 10-K.
|
|
10.64
|
First
Amendment to Executive Employment Agreement dated December 10,
2003,
between FCX and Richard C. Adkerson. Incorporated by reference
to Exhibit
10.37 to the FCX 2003 Form
10-K.
|
10.65
|
First
Amendment to Change of Control Agreement dated December 10, 2003,
between
FCX and James R. Moffett. Incorporated by reference to Exhibit
10.38 to
the FCX 2003 Form 10-K.
|
|
10.66
|
First
Amendment to Change of Control Agreement dated December 10, 2003,
between
FCX and Richard C. Adkerson. Incorporated by reference to Exhibit
10.39 to
the FCX 2003 Form 10-K.
|
|
10.67
|
Change
of Control Agreement dated February 3, 2004, between FCX and
Michael J.
Arnold. Incorporated by reference to Exhibit 10.40 to the FCX
2003 Form
10-K.
|
|
10.68
|
Change
of Control Agreement dated February 3, 2004, between FCX and
Mark J.
Johnson. Incorporated by reference to Exhibit 10.41 to the FCX
2003 Form
10-K.
|
|
10.69
|
Change
of Control Agreement dated February 3, 2004, between FCX and
Kathleen L.
Quirk. Incorporated by reference to Exhibit 10.42 to the FCX
2003 Form
10-K.
|
|
10.70
|
Phelps
Dodge 2003 Stock Option and Restricted Stock Plan, as
amended. Incorporated by reference to Exhibit 10.1 to the
Registration Statement on Form S-8 (File No. 333-141358) of FCX
filed
March 16, 2007 (the FCX March 16, 2007 Form S-8).
|
|
10.71
|
Phelps
Dodge 1998 Stock Option and Restricted Stock Plan, as
amended. Incorporated by reference to Exhibit 10.2 to the FCX
March 16, 2007 Form S-8.
|
|
10.72
|
Phelps
Dodge Corporation 2006 Executive Performance Incentive
Plan. Incorporated by reference to Appendix A of Phelps Dodge
Corporation’s 2005 definitive Proxy Statement on Schedule 14A filed April
15, 2005.
|
|
10.73
|
Letter
of employment by and between Freeport-McMoRan Copper & Gold Inc. and
Timothy R. Snider dated April 4, 2007. Incorporated by reference
to
Exhibit 10.73 to the FCX First-Quarter 2007 Form 10-Q.
|
|
10.74
|
Form
of Change of Control Agreement (amended and restated effective
January 1,
2005), adopted by Phelps Dodge Corporation for agreements entered
into
between Phelps Dodge Corporation and other of its executive officers
and
other members of its senior management team. Incorporated by
reference to Exhibit 10.1 to Amendment No. 1 to the Annual Report
on Form
10-K of Phelps Dodge Corporation for the fiscal year ended December
31,
2006 (Amendment No. 1 to the PD 2006 Form 10-K).
|
|
10.75
|
Form
of Severance Agreement (as amended and restated effective January
1, 2005)
adopted by Phelps Dodge Corporation and entered into between
Phelps Dodge
Corporation and certain of its executives. Incorporated by
reference to Exhibit 10.2 of Amendment No. 1 to the PD 2006 Form
10-K.
|
|
10.76
|
Form
of Amendment to the ELIP Split Dollar Life Insurance Agreement
(Endorsement Method) adopted by Phelps Dodge Corporation and
entered into
by and between Phelps Dodge and certain of its executives. Incorporated
by
reference to Exhibit 10.76 to the FCX First-Quarter 2007 Form
10-Q.
|
|
10.77
|
The
Phelps Dodge Corporation Supplemental Retirement Plan, amended
and
restated effective January 1, 2005 and adopted on March 16, 2007.
Incorporated by reference to Exhibit 10.77 to the FCX First-Quarter
2007
Form 10-Q.
|
|
10.78
|
The
Phelps Dodge Corporation Supplemental Savings Plan, amended and
restated
effective January 1, 2005, and adopted on March 16, 2007. Incorporated
by
reference to Exhibit 10.78 to the FCX First-Quarter 2007 Form
10-Q.
|
|
10.79
|
First
Amendment to the Phelps Dodge Corporation Supplemental Savings
Plan, dated
March 16, 2007. Incorporated by reference to Exhibit 10.79 to
the FCX
First-Quarter 2007 Form 10-Q.
|
10.80
|
Second
Amendment to the Phelps Dodge Corporation Supplemental Savings
Plan, dated
as of March 16, 2007. Incorporated by reference to Exhibit 10.80
to the
FCX First-Quarter 2007 Form 10-Q.
|
|
Letter
from Ernst & Young LLP regarding unaudited interim financial
statements.
|
||
Certification
of Principal Executive Officer pursuant to Rule 13a-14(a)/15d
–
14(a).
|
||
Certification
of Principal Financial Officer pursuant to Rule 13a-14(a)/15d
–
14(a).
|
||
Certification
of Principal Executive Officer pursuant to 18 U.S.C. Section
1350.
|
||
Certification
of Principal Financial Officer pursuant to 18 U.S.C Section
1350.
|