Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2012 Results

  Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month
  2012 Results

Business Wire

PHOENIX -- October 22, 2012

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX):

  *Net income attributable to common stock for third-quarter 2012 was $824
    million, $0.86 per share, compared with net income of $1.1 billion, $1.10
    per share, for third-quarter 2011. Net income attributable to common stock
    for the first nine months of 2012 was $2.3 billion, $2.41 per share,
    compared with $3.9 billion, $4.10 per share, for the first nine months of
    2011.
  *Consolidated sales from mines for third-quarter 2012 totaled 922 million
    pounds of copper, 202 thousand ounces of gold and 21 million pounds of
    molybdenum, compared with 947 million pounds of copper, 409 thousand
    ounces of gold and 19 million pounds of molybdenum for third-quarter 2011.
  *Consolidated sales from mines for the year 2012 are expected to
    approximate 3.6 billion pounds of copper, 1.0 million ounces of gold and
    82 million pounds of molybdenum, including 930 million pounds of copper,
    255 thousand ounces of gold and 20 million pounds of molybdenum for
    fourth-quarter 2012. Consolidated sales from mines for the year 2013 are
    expected to total 4.3 billion pounds of copper, 1.4 million ounces of gold
    and 90 million pounds of molybdenum.
  *Consolidated unit net cash costs (net of by-product credits) averaged
    $1.62 per pound of copper for third-quarter 2012, compared with $0.80 per
    pound for third-quarter 2011. Based on current 2012 sales volume and cost
    estimates and assuming average prices of $1,700 per ounce for gold and $11
    per pound for molybdenum for fourth-quarter 2012, consolidated unit net
    cash costs (net of by-product credits) are estimated to average
    approximately $1.50 per pound of copper for the year 2012.
  *Operating cash flows totaled $526 million  for third-quarter 2012 (net of
    $765 million in working capital uses and other tax payments) and $2.5
    billion (net of $1.5 billion in working capital uses and other tax
    payments) for the first nine months of 2012, compared with $1.8 billion
    for third-quarter 2011 (including $256 million of working capital sources
    and other tax payments) and $5.9 billion (net of $126 million in working
    capital uses and other tax payments) for the first nine months of 2011.
    Based on current 2012 sales volume and cost estimates and assuming average
    prices of $3.70 per pound for copper, $1,700 per ounce for gold and $11
    per pound for molybdenum for fourth-quarter 2012, operating cash flows are
    estimated to approximate $4.0 billion for the year 2012 (net of an
    estimated $1.4 billion in working capital uses and other tax payments).
  *Capital expenditures totaled $971 million for third-quarter 2012 and $2.5
    billion for the first nine months of 2012, compared with $717 million for
    third-quarter 2011 and $1.7 billion for the first nine months of 2011.
    Capital expenditures are expected to approximate $3.6 billion for the year
    2012, including $2.2 billion for major projects and $1.4 billion for
    sustaining capital.
  *At September30, 2012, consolidated cash totaled $3.7 billion  and total
    debt totaled $3.5 billion.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter 2012
net income attributable to common stock of $824 million, $0.86 per share,
compared with $1.1 billion, $1.10 per share, for third-quarter 2011.
Third-quarter 2012 net income included net credits for adjustments to Cerro
Verde's deferred income taxes and to FCX's environmental obligations and
related litigation reserves totaling $168 million ($0.18 per share), compared
with net charges totaling $73 million ($0.07 per share) for third-quarter
2011. For the first nine months of 2012, FCX reported net income attributable
to common stock of $2.3 billion, $2.41 per share, compared with $3.9 billion,
$4.10 per share, for the first nine months of 2011.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President
and Chief Executive Officer, said, "Our global team continues to focus on
execution of our plans to achieve efficient and safe production, effective
cost management, investment in financially attractive projects and
identification of additional reserves and resources.Our third quarter results
reflect production growth in North America and Africa, offset by anticipated
lower ore grades in Indonesia. As we look forward, we are on track to achieve
meaningful increases in our production of copper as we return to higher grade
ores at Grasberg and through the execution of brownfield expansions in the
Americas and Africa, expected to add one billion pounds of copper annually
over the next three years.We are positive about the long-term fundamentals of
the metals we produce, our geographically diverse portfolio of large-scale
operations with long-lived reserves and mineral resources and the strong track
record of our team to execute our plans."

SUMMARY FINANCIAL AND OPERATING DATA

                  Three Months Ended                Nine Months Ended              
                   September 30,                       September 30,
                  2012            2011              2012               2011
Financial Data
(in millions,
except per share
amounts)
Revenues^a         $ 4,417           $ 5,195           $ 13,497             $ 16,718
Operating income   $ 1,411    ^c     $ 2,150    ^c     $ 4,456     ^c       $ 7,843     ^c
Net income
attributable to    $ 824      ^c,d   $ 1,053    ^c,d   $ 2,298     ^c,d,e   $ 3,920     ^c,d,e
common stock^b
Diluted net
income per share   $ 0.86     ^c,d   $ 1.10     ^c,d   $ 2.41      ^c,d,e   $ 4.10      ^c,d,e
of common stock
Diluted
weighted-average     953               955               953                  955
common shares
outstanding
Operating cash     $ 526      ^f     $ 1,835    ^f     $ 2,509     ^f       $ 5,874     ^f
flows
Capital            $ 971             $ 717             $ 2,518              $ 1,749
expenditures
                                                                                        
Mining Operating
Data
Copper (millions
of recoverable
pounds)
Production           938               951               2,658                2,868
Sales, excluding     922               947               2,676                2,875
purchases
Average realized   $ 3.64            $ 3.60            $ 3.63               $ 3.94
price per pound
Site production
and delivery       $ 2.03            $ 1.71            $ 2.00               $ 1.65
costs per
pound^g
Unit net cash
costs per          $ 1.62            $ 0.80            $ 1.46               $ 0.84
pound^g
Gold (thousands
of recoverable
ounces)
Production           204               385               707                  1,202
Sales, excluding     202               409               756                  1,245
purchases
Average realized   $ 1,728           $ 1,693           $ 1,666              $ 1,565
price per ounce
Molybdenum
(millions of
recoverable
pounds)
Production           20                23                61                   65
Sales, excluding     21                19                62                   60
purchases
Average realized   $ 13.62           $ 16.34           $ 14.79              $ 17.57
price per pound
                                                                                        

^a. Includes the impact of adjustments to provisionally priced sales
recognized in prior periods (refer to the "Consolidated Statements of Income"
on page IV for further discussion).

^b. FCX defers recognizing profits on intercompany sales until final sales to
third parties occur (refer to the "Consolidated Statements of Income" on page
IV for a summary of net impacts from changes in these deferrals).

^c. Includes net (credits) charges for adjustments to environmental
obligations and related litigation reserves totaling $(85) million ($(68)
million to net income attributable to common stockholders or $(0.07) per
share) for third quarter 2012, $29 million ($23 million to net income
attributable to common stockholders or $0.02 per share) for third-quarter
2011, $(19) million ($(16) million to net income attributable to common
stockholders or $(0.02) per share) for the first nine months of 2012 and $78
million ($63 million to net income attributable to common stockholders or
$0.07 per share) for the first nine months of 2011.

^d. The 2012 periods include a net credit of $100 million, net of
noncontrolling interests ($0.11 per share) associated with adjustments to
Cerro Verde's deferred income taxes. The 2011 periods include a charge of $50
million, net of noncontrolling interests ($0.05 per share) for additional
taxes associated with Cerro Verde's election to pay a special mining burden
during the remaining term of its current stability agreement. For further
discussion refer to the supplemental schedule, "Provision for Income Taxes,"
on page XXVI, which is available on FCX's website, "^www.fcx.com^."

^e. Includes losses on early extinguishment of debt totaling $149 million
($0.16 per share) for the first nine months of 2012 and $60 million ($0.06 per
share) for the first nine months of 2011.

^f. Includes working capital (uses) sources and other tax payments of $(765)
million for third-quarter 2012, $256 million for third-quarter 2011, $(1.5)
billion for the first nine months of 2012 and $(126) million for the first
nine months of 2011.

^g. Reflects per pound weighted-average site production and delivery costs and
unit net cash costs (net of by-product credits) for all copper mines,
excluding net noncash and other costs. For reconciliations of per pound unit
costs by operating division to production and delivery costs applicable to
sales reported in FCX's consolidated financial statements, refer to the
supplemental schedule, "Product Revenues and Production Costs," beginning on
page VII, which is available on FCX's website, "^www.fcx.com^."

OPERATIONS

Consolidated. Third-quarter 2012 consolidated copper sales of 922 million
pounds were higher than the July 2012 estimate of 885 million pounds primarily
reflecting higher production from North America and Africa and the timing of
sales in South America. Third-quarter 2012 consolidated gold sales of 202
thousand ounces were lower than the July 2012 estimate of 225 thousand ounces
primarily because of changes to mine plans at the Grasberg mine in Indonesia,
which delayed access to higher grade material, and a slower than expected
ramp-up at the Deep Ore Zone (DOZ) underground mine. Third-quarter 2012
consolidated copper and gold sales were lower than third-quarter 2011 sales of
947 million pounds of copper and 409 thousand ounces of gold primarily
reflecting lower ore grades in Indonesia, partly offset by increased sales in
North America and Africa.

Third-quarter 2012 consolidated molybdenum sales of 21 million pounds were
higher than the July 2012 estimate of 20 million pounds and third-quarter 2011
sales of 19 million pounds.

Consolidated sales from mines for the year 2012 are expected to approximate
3.6 billion pounds of copper, 1.0 million ounces of gold and 82 million pounds
of molybdenum, including 930 million pounds of copper, 255 thousand ounces of
gold and 20 million pounds of molybdenum for fourth-quarter 2012. Expected
gold sales for 2012 are approximately 50,000 ounces less than the July 2012
estimates because of lower gold production at Grasberg.

As anticipated, consolidated average unit net cash costs (net of by-product
credits) of $1.62 per pound of copper in third-quarter 2012 were higher than
unit net cash costs of $0.80 per pound in third-quarter 2011 primarily because
of lower volumes in Indonesia (Indonesia unit net cash costs were $1.65 per
pound in third-quarter 2012, compared with a net credit of $0.48 per pound in
third-quarter 2011), lower by-product credits and higher mining costs.

Quarterly unit net cash costs will vary with fluctuations in sales volumes and
average realized prices for gold and molybdenum. Assuming average prices of
$1,700 per ounce of gold and $11 per pound of molybdenum for fourth-quarter
2012 and achievement of current sales volume and cost estimates, consolidated
unit net cash costs (net of by-product credits) for FCX's copper mining
operations are expected to average approximately $1.50 per pound of copper for
the year 2012. The impact of price changes for fourth-quarter 2012 on
consolidated unit net cash costs would approximate $0.004 per pound for each
$50 per ounce change in the average price of gold and $0.004 per pound for
each $2 per pound change in the average price of molybdenum. Assuming
consistent commodity price assumptions, unit net cash costs for 2013 are
expected to be lower than 2012 because of projected increased copper and gold
volumes at Grasberg.

North America Copper Mines. FCX operates seven open-pit copper mines in North
America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Tyrone
and Chino in New Mexico. All of the North America mining operations are wholly
owned, except for Morenci. FCX records its 85 percent joint venture interest
in Morenci using the proportionate consolidation method. In addition to
copper, certain of FCX's North America copper mines (Sierrita, Bagdad, Morenci
and Chino) also produce molybdenum concentrates.

Operating and Development Activities. FCX has completed projects to increase
production at its North America copper mines, including restarting certain
mining and milling operations and increasing mining rates at Morenci and
Chino. Ramp up activities at Chino are continuing, with annual production of
approximately 250 million pounds of copper targeted in 2014. FCX continues to
evaluate a number of opportunities to invest in additional production capacity
at several of its North America copper mines. Exploration results in recent
years indicate the potential for significant additional sulfide development in
North America.

At Morenci, FCX is engaged in a project to expand mining and milling capacity
to process additional sulfide ores identified through exploratory drilling.
The approximate $1.4 billion project is targeting incremental annual
production of approximately 225 million pounds of copper in 2014 through an
increase in milling rates from the current level of 50,000 metric tons of ore
per day to approximately 115,000 metric tons of ore per day and mining rates
from the current level of 700,000 short tons per day to 900,000 short tons per
day. FCX has received material permits and has commenced engineering and
initial construction, and procurement activities are in progress.

Operating Data. Following is summary consolidated operating data for the North
America copper mines for the third quarters and first nine months of 2012 and
2011:

                          Three Months Ended        Nine Months Ended
                           September 30,               September 30,
                          2012        2011          2012        2011
Copper (millions of
recoverable pounds)
Production                   337           322           1,005         917
Sales, excluding             331           307           1,030         914
purchases
Average realized price     $ 3.58        $ 4.05        $ 3.66        $ 4.19
per pound
                                                                             
Molybdenum (millions of
recoverable pounds)
Production^a                 8             10            27            27
                                                                             
Unit net cash costs per
pound of copper:
Site production and
delivery, excluding        $ 1.97        $ 1.86        $ 1.88        $ 1.80
adjustments
By-product credits,          (0.32 )       (0.55 )       (0.37 )       (0.52 )
primarily molybdenum^b
Treatment charges           0.12        0.11        0.12        0.10  
Unit net cash costs^c      $ 1.77       $ 1.42       $ 1.63       $ 1.38  
                                                                             

^a. Reflects molybdenum production from certain of the North America copper
mines. Sales of molybdenum are reflected in the Molybdenum division (refer to
page 9).

^b. Molybdenum credits reflect volumes produced at market-based pricing and
also include tolling revenues at Sierrita.

^c. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, "Product Revenues and
Production Costs," beginning on page VII, which is available on FCX's website,
"^www.fcx.com^."

Consolidated copper sales volumes from North America of 331 million pounds in
third-quarter 2012 were higher than third-quarter 2011 sales of 307 million
pounds primarily reflecting increased production at the Chino mine.

FCX expects sales from the North America copper mines to approximate 1.3
billion pounds of copper for the year 2012, compared with 1.2 billion pounds
of copper in 2011.

Average unit net cash costs (net of by-product credits) for the North America
copper mines of $1.77 per pound of copper in third-quarter 2012 were higher
than unit net cash costs of $1.42 per pound in third-quarter 2011 reflecting
lower molybdenum credits and increased mining rates, partly offset by higher
copper volumes.

FCX estimates that average unit net cash costs (net of by-product credits) for
the North America copper mines would approximate $1.67 per pound of copper for
the year 2012, based on current sales volume and cost estimates and assuming
an average molybdenum price of $11 per pound for fourth-quarter 2012. North
America's average unit net cash costs for 2012 would change by approximately
$0.01 per pound for each $2 per pound change in the average price of
molybdenum for fourth-quarter 2012.

South America Mining. FCX operates four copper mines in South America - Cerro
Verde in Peru and El Abra, Candelaria and Ojos del Salado in Chile. FCX owns a
53.56 percent interest in Cerro Verde, a 51 percent interest in El Abra, and
an 80 percent interest in both the Candelaria and Ojos del Salado mining
complexes. All operations in South America are consolidated in FCX's financial
statements. South America mining includes open-pit and underground mining. In
addition to copper, the Cerro Verde mine produces molybdenum concentrates, and
the Candelaria and Ojos del Salado mines produce gold and silver.

Operating and Development Activities. During 2011, FCX commenced production
from El Abra's sulfide ores. Production from the sulfide ore is expected to
approximate 300 million pounds of copper per year, replacing the currently
depleting oxide copper production.

At Cerro Verde, FCX is engaged in a large-scale concentrator expansion. The
approximate $4.4 billion project would expand the concentrator facilities from
120,000 metric tons of ore per day to 360,000 metric tons of ore per day and
provide incremental annual production of approximately 600 million pounds of
copper and 15 million pounds of molybdenum beginning in 2016. An environmental
impact assessment was filed in fourth-quarter 2011. Permitting is in an
advanced stage and engineering and procurement of long-lead items is in
progress. FCX expects to commence construction in 2013.

FCX is also engaged in pre-feasibility studies for a potential large-scale
milling operation at El Abra to process additional sulfide material and to
achieve higher recoveries. Exploration results at El Abra indicate the
potential for a significant sulfide resource.

Operating Data. Following is summary consolidated operating data for the South
America mining operations for the third quarters and first nine months of 2012
and 2011:

                          Three Months Ended        Nine Months Ended
                           September 30,               September 30,
                          2012        2011          2012        2011
Copper (millions of
recoverable pounds)
Production                   311           325           908           969
Sales                        308           322           895           965
Average realized price     $ 3.68        $ 3.45        $ 3.63        $ 3.82
per pound
                                                                             
Gold (thousands of
recoverable ounces)
Production                   20            25            57            73
Sales                        21            23            56            72
Average realized price     $ 1,736       $ 1,664       $ 1,678       $ 1,556
per ounce
                                                                             
Molybdenum (millions of
recoverable pounds)
Production^a                 2             2             6             8
                                                                             
Unit net cash costs per
pound of copper:
Site production and
delivery, excluding        $ 1.63        $ 1.38        $ 1.58        $ 1.31
adjustments
By-product credits           (0.25 )       (0.36 )       (0.26 )       (0.36 )
Treatment charges           0.17        0.13        0.16        0.17  
Unit net cash costs^b      $ 1.55       $ 1.15       $ 1.48       $ 1.12  
                                                                             

^a. Reflects molybdenum production from Cerro Verde. Sales of molybdenum are
reflected in the Molybdenum division (refer to page 9).

^b. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, "Product Revenues and
Production Costs," beginning on page VII, which is available on FCX's website,
"^www.fcx.com^."

Copper sales from South America mining of 308 million pounds in third-quarter
2012 were lower than third-quarter 2011 sales of 322 million pounds, primarily
reflecting lower ore grades at Candelaria and timing of shipments.

FCX expects South America's sales to approximate 1.2 billion pounds of copper
and 95 thousand ounces of gold for the year 2012, compared with 2011 sales of
1.3 billion pounds of copper and 101 thousand ounces of gold.

Average unit net cash costs (net of by-product credits) for South America of
$1.55 per pound of copper in third-quarter 2012 were higher than unit net cash
costs of $1.15 per pound in third-quarter 2011, primarily reflecting higher
mining and input costs, including energy, lower by-product credits and the
timing of profit sharing.

FCX estimates that average unit net cash costs (net of by-product credits) for
South America mining would approximate $1.50 per pound of copper for the year
2012, based on current sales volume and cost estimates and assuming average
prices of $1,700 per ounce of gold and $11 per pound of molybdenum for
fourth-quarter 2012.

Indonesia Mining. Through its 90.64 percent owned and wholly consolidated
subsidiary PT Freeport Indonesia, FCX operates the world's largest copper and
gold mine in terms of reserves at its Grasberg operations in Papua, Indonesia.
PT Freeport Indonesia produces copper concentrates, which contain significant
quantities of gold and also silver.

Operating and Development Activities. FCX has several projects in progress in
the Grasberg minerals district, primarily related to the development of the
large-scale, high-grade underground ore bodies located beneath and nearby the
Grasberg open pit. In aggregate, these underground ore bodies are expected to
ramp up over several years to approximately 240,000 metric tons of ore per day
following the currently anticipated transition from the Grasberg open pit in
2016. Substantial progress is being achieved to establish underground mine
development and infrastructure required for large-scale underground
operations. Development of both the Grasberg Block Cave and Deep Mill Level
Zone is advancing. Access to these underground ore bodies is complete. Over
the next five years, estimated aggregate capital spending on these projects is
currently expected to average $700 million per year ($550 million per year net
to PT Freeport Indonesia).

The high-grade Big Gossan underground mine, which began producing in
fourth-quarter 2010, averaged 1,900 metric tons of ore per day in
third-quarter 2012. Full rates of 7,000 metric tons of ore per day are
expected in 2014.

Operating Data. Following is summary consolidated operating data for the
Indonesia mining operations for the third quarters and first nine months of
2012 and 2011:

                          Three Months Ended        Nine Months Ended
                           September 30,               September 30,
                          2012        2011          2012        2011
Copper (millions of
recoverable pounds)
Production                   199           233           495           778
Sales                        195           253           512           796
Average realized price     $ 3.72        $ 3.29        $ 3.64        $ 3.82
per pound
                                                                             
Gold (thousands of
recoverable ounces)
Production                   182           357           641           1,123
Sales                        178           384           691           1,168
Average realized price     $ 1,728       $ 1,695       $ 1,665       $ 1,565
per ounce
                                                                             
Unit net cash costs per
pound of copper:
Site production and
delivery, excluding        $ 2.96        $ 1.98        $ 3.20        $ 1.91
adjustments
Gold and silver credits      (1.66 )       (2.80 )       (2.34 )       (2.39 )
Treatment charges            0.22          0.18          0.21          0.18
Royalty on metals           0.13        0.16        0.13        0.16  
Unit net cash costs        $ 1.65       $ (0.48 )     $ 1.20       $ (0.14 )
(credits)^a
                                                                             

^a. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, "Product Revenues and
Production Costs," beginning on page VII, which is available on FCX's website,
"^www.fcx.com^."

Indonesia's third-quarter 2012 copper sales of 195 million pounds and gold
sales of 178 thousand ounces were lower than third-quarter 2011 copper sales
of 253 million pounds and gold sales of 384 thousand ounces, primarily
reflecting anticipated lower ore grades. Third-quarter 2012 sales volumes for
copper were similar to the July estimates, but gold volumes were approximately
10 percent below the July estimates because of changes to mine plans that
delayed access to higher grade material, and a slower than expected ramp-up at
the DOZ underground mine. The DOZ mine averaged 48,300 metric tons of ore per
day in third-quarter 2012 and is expected to ramp up to 80,000 metric tons of
ore per day in 2013. The slower than anticipated ramp-up reflects more
extensive repairs required following the 2011 suspension of operations.

At the Grasberg mine, the sequencing of mining areas with varying ore grades
also causes fluctuations in the timing of ore production resulting in varying
quarterly and annual sales of copper and gold. FCX expects sales from
Indonesia to approximate 0.7 billion pounds of copper and 0.9 million ounces
of gold for the year 2012, compared with 846 million pounds of copper and 1.3
million ounces of gold for the year 2011. Indonesia's current sales estimates
for 2012 are approximately 40 million pounds of copper and 45,000 ounces of
gold lower than the July estimates because of mine plan changes in the
Grasberg open pit, which delayed access to higher grade material, and a slower
ramp-up of the DOZ mine. FCX expects sales from Indonesia to increase in the
second half of 2013 as PT Freeport Indonesia gains access to higher ore
grades.

Indonesia's unit net cash costs (including gold and silver credits) of $1.65
per pound of copper in third-quarter 2012 were significantly higher than unit
net cash credits of $0.48 per pound in third-quarter 2011 primarily reflecting
lower sales volumes.

Because of the fixed nature of a large portion of Indonesia's costs, unit
costs vary from quarter to quarter depending on volumes of copper and gold
sold, as well as average realized gold prices during the period. FCX estimates
Indonesia's average unit net cash costs (net of gold and silver credits) would
approximate $1.34 per pound of copper for the year 2012, based on current
sales volume and cost estimates and assuming an average gold price of $1,700
per ounce for fourth-quarter 2012. Indonesia's unit net cash costs for 2012
would change by approximately $0.02 per pound for each $50 per ounce change in
the average price of gold for fourth-quarter 2012. Assuming consistent
commodity price assumptions, Indonesia's unit net cash costs for future
periods are expected to be lower than 2012, as PT Freeport Indonesia accesses
higher grade ore beginning in the second half of 2013.

Africa Mining. Through its 56 percent owned and wholly consolidated subsidiary
Tenke Fungurume Mining S.A.R.L (TFM), FCX operates the Tenke Fungurume (Tenke)
mine in the Katanga province of the Democratic Republic of Congo (DRC). In
addition to copper, the Tenke mine produces cobalt hydroxide.

Operating and Development Activities. FCX is nearing completion of a second
phase of the project, which includes optimizing the current plant and
increasing capacity. FCX is expanding the mill rate to 14,000 metric tons of
ore per day and is completing construction of the related processing
facilities that target the addition of approximately 150 million pounds of
copper per year in 2013. The approximate $850 million project includes mill
upgrades, additional mining equipment, a new tankhouse and a sulphuric acid
plant expansion. Construction activities are progressing well and are expected
to be substantially complete by year-end 2012. The addition of a second
sulphuric acid plant is expected to be completed in 2015.

During third-quarter 2012, Tenke achieved record mining, milling and copper
production rates. Improved performance and the second phase expansion are
expected to enable copper production to exceed 400 million pounds for the year
2013, compared with initial design capacity of 250 million pounds per year.

FCX continues to engage in drilling activities, exploration analyses and
metallurgical testing to evaluate the potential of the highly prospective
minerals district at Tenke. These analyses are being incorporated in future
plans to evaluate opportunities for expansion. Future expansions are subject
to a number of factors, including economic and market conditions, and the
business and investment climate in the DRC.

Operating Data. Following is summary consolidated operating data for the
Africa mining operations for the third quarters and first nine months of 2012
and 2011:

                          Three Months Ended        Nine Months Ended
                           September 30,               September 30,
                          2012        2011          2012        2011
Copper (millions of
recoverable pounds)
Production                   91            71            250           204
Sales                        88            65            239           200
Average realized price     $ 3.55        $ 3.46        $ 3.54        $ 3.89
per pound^a
                                                                             
Cobalt (millions of
contained pounds)
Production                   8             6             20            18
Sales                        8             6             19            19
Average realized price     $ 8.24        $ 10.05       $ 8.36        $ 10.71
per pound
                                                                             
Unit net cash costs per
pound of copper:
Site production and
delivery, excluding        $ 1.63        $ 1.55        $ 1.54        $ 1.57
adjustments
Cobalt credits^b             (0.48 )       (0.51 )       (0.39 )       (0.68 )
Royalty on metals           0.08        0.08        0.08        0.09  
Unit net cash costs^c      $ 1.23       $ 1.12       $ 1.23       $ 0.98  
                                                                             

^a. Includes point-of-sale transportation costs as negotiated in customer
contracts.

^b. Net of cobalt downstream processing and freight costs.

^c. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, "Product Revenues and
Production Costs," beginning on page VII, which is available on FCX's website,
"^www.fcx.com^."

Copper sales from Africa of 88 million pounds in third-quarter 2012 were
higher than third-quarter 2011 copper sales of 65 million pounds primarily
reflecting higher mining and milling rates principally related to the ramp-up
of the second phase expansion.

FCX expects Africa's sales to approximate 330 million pounds of copper and 25
million pounds of cobalt for the year 2012, compared with 283 million pounds
of copper and 25 million pounds of cobalt for the year 2011.

Africa's unit net cash costs (net of cobalt credits) of $1.23 per pound of
copper in third-quarter 2012 were higher than unit net cash costs of $1.12 per
pound in third-quarter 2011, primarily reflecting higher mining and input
costs, including sulphuric acid and energy.

FCX estimates Africa's average unit net cash costs would approximate $1.25 per
pound of copper for the year 2012, based on current sales volume and cost
estimates and assuming an average cobalt price of $12 per pound for
fourth-quarter 2012. Africa's unit net cash costs for 2012 would change by
approximately $0.025 per pound for each $2 per pound change in the average
price of cobalt for fourth-quarter 2012.

Molybdenum. FCX is the world's largest producer of molybdenum. FCX conducts
molybdenum mining operations at its wholly owned Henderson underground mine
and Climax open-pit mine in Colorado, and also sells molybdenum produced from
its North and South America copper mines.

Operating and Development Activities. The newly commissioned Climax molybdenum
mine, which includes a new 25,000 metric ton per day mill facility, began
commercial production in May 2012. Depending on market conditions, production
from Climax may ramp up to a rate of 20 million pounds of molybdenum per year
during 2013, with potential to produce 30 million pounds of molybdenum per
year. FCX intends to operate the Climax and Henderson mines in a flexible
manner to meet market requirements. FCX believes that Climax is one of the
most attractive primary molybdenum mines in the world, with large-scale
production capacity, attractive cash costs and future growth options.

Operating Data. Following is summary consolidated operating data for the
Molybdenum operations for the third quarters and first nine months of 2012 and
2011:

                             Three Months Ended       Nine Months Ended
                              September 30,              September 30,
                             2012         2011         2012         2011
Molybdenum (millions of
recoverable pounds)
Production                      10       ^a   11           28       ^a   30
Sales, excluding                21            19           62            60
purchases^b
Average realized price per    $ 13.62       $ 16.34      $ 14.79       $ 17.57
pound
                                                                       
Henderson's unit net cash
cost per pound of             $ 7.11        $ 6.24       $ 6.94        $ 6.19
molybdenum^c
                                                                         

^a. Molybdenum production from the Climax mine totaled 1 million pounds in
third-quarter 2012 and 2 million pounds for the first nine months of 2012,
reflecting production since the start of commercial operations in May 2012
(the 2011 periods reflect only production from the Henderson molybdenum mine).

^b. Includes sales of molybdenum produced at the North and South America
copper mines.

^c. Reflects unit net cash costs for the Henderson molybdenum mine, excluding
net noncash and other costs. For a reconciliation of unit net cash costs per
pound to production and delivery costs applicable to sales reported in FCX's
consolidated financial statements, refer to the supplemental schedule,
"Product Revenues and Production Costs," beginning on page VII, which is
available on FCX's website, "^www.fcx.com^."

Consolidated molybdenum sales of 21 million pounds in third-quarter 2012 were
higher than third-quarter 2011 sales of 19 million pounds. For the year 2012,
FCX expects molybdenum sales to approximate 82 million pounds (including
production of approximately 43 million pounds from the North and South America
copper mines), compared with 79 million pounds in 2011 (including production
of 45 million pounds from the North and South America copper mines).

Unit net cash costs at the Henderson mine of $7.11 per pound of molybdenum in
third-quarter 2012 were higher than unit net cash costs of $6.24 per pound in
third-quarter 2011 primarily reflecting lower volumes.

Based on current sales volume and cost estimates, FCX expects average unit net
cash costs for the Henderson mine to approximate $7.00 per pound of molybdenum
for the year 2012.

EXPLORATION ACTIVITIES

FCX is actively conducting exploration activities near its existing mines with
a focus on opportunities to expand reserves that will support the development
of additional future production capacity in the large minerals districts where
it currently operates. Exploration results indicate opportunities for
significant future potential reserve additions in North and South America and
in the Tenke Fungurume minerals district. The drilling data in North America
continue to indicate the potential for expanded sulfide production.

Exploration spending for the year 2012 is expected to approximate $255
million, compared to $221 million in 2011. Exploration activities will
continue to focus primarily on the potential for future reserve additions in
FCX's existing minerals districts.

PROVISIONAL PRICING AND OTHER

For the first nine months of 2012, 45 percent of FCX's mined copper was sold
in concentrate, 28 percent as cathode and 27 percent as rod from North America
operations. Under the long-established structure of sales agreements prevalent
in the industry, copper contained in concentrates and cathodes is
provisionally priced at the time of shipment. The provisional prices are
finalized in a contractually specified future month (generally one to four
months from the shipment date) primarily based on quoted monthly average spot
copper prices on the London Metal Exchange (LME). Because a significant
portion of FCX's concentrate and cathode sales in any quarterly period usually
remain subject to final pricing, the quarter-end forward price is a major
determinant of recorded revenues and the average recorded copper price for the
period. LME spot copper prices averaged $3.50 per pound during third-quarter
2012, compared to FCX's average realized price of $3.64 per pound.

At June30, 2012, FCX had provisionally priced copper sales at its copper
mining operations, primarily South America and Indonesia, totaling 329 million
pounds (net of intercompany sales and noncontrolling interests) recorded at an
average price of $3.49 per pound. Adjustments to these provisionally priced
copper sales favorably impacted third-quarter 2012 consolidated revenues by
$24 million ($12 million to net income attributable to common stock or $0.01
per share), compared with adjustments to the June30, 2011, provisionally
priced copper sales that unfavorably impacted third-quarter 2011 consolidated
revenues by $213 million ($100 million to net income attributable to common
stock or $0.11 per share). Adjustments to the December 31, 2011, provisionally
priced copper sales favorably impacted consolidated revenues by $101 million
($43 million to net income attributable to common stock or $0.05 per share)
for the first nine months of 2012, compared with adjustments to the December
31, 2010, provisionally priced copper sales that unfavorably impacted
consolidated revenues by $12 million ($5 million to net income attributable to
common stock or $0.01 per share) for the first nine months of 2011.

At September30, 2012, FCX had provisionally priced copper sales at its copper
mining operations, primarily South America and Indonesia, totaling 325 million
pounds of copper (net of intercompany sales and noncontrolling interests)
recorded at an average of $3.72 per pound, subject to final pricing over the
next several months. FCX estimates that each $0.05 change in the price
realized from the September30, 2012, provisional price recorded would have an
approximate $23 million effect on its 2012 consolidated revenues ($11 million
to net income attributable to common stock). The LME spot copper price closed
at $3.68 per pound on October19, 2012.

FCX defers recognizing profits on sales from its mining operations to Atlantic
Copper and on 25 percent of Indonesia mining's sales to PT Smelting (PT
Freeport Indonesia's 25 percent-owned Indonesian smelting unit) until final
sales to third parties occur. FCX's net deferred profits on its inventories at
Atlantic Copper and PT Smelting to be recognized in future periods' net income
attributable to common stock totaled $105 million at September30, 2012. Refer
to the "Consolidated Statements of Income" on page IV for a summary of net
impacts from changes in these deferrals. Quarterly variations in ore grades,
the timing of intercompany shipments and changes in product prices will result
in variability in FCX's net deferred profits and quarterly earnings.

CASH FLOWS

FCX generated operating cash flows of $526 million for third-quarter 2012 and
$2.5 billion for the first nine months of 2012. These amounts were net of
working capital uses and other tax payments of $765 million for the third
quarter and $1.5 billion for the nine-month period.

Based on current sales volume and cost estimates and assuming average prices
of $3.70 per pound of copper, $1,700 per ounce of gold and $11 per pound of
molybdenum for fourth-quarter 2012, FCX's consolidated operating cash flows
are estimated to approximate $4.0 billion for the year 2012 (net of an
estimated $1.4 billion in working capital uses and other tax payments). The
impact of price changes for fourth-quarter 2012 on operating cash flows would
approximate $80 million for each $0.10 per pound change in the average price
of copper, $20 million for each $100 per ounce change in the average price of
gold and $10 million for each $2 per pound change in the average price of
molybdenum.

Capital expenditures, including capitalized interest, totaled $971 million for
third-quarter 2012 and $2.5 billion for the first nine months of 2012. FCX's
capital expenditures are currently estimated to approximate $3.6 billion for
the year 2012 (including $2.2 billion for major projects and $1.4 billion for
sustaining capital). Major projects for 2012 primarily include underground
development activities at Grasberg and the expansion projects at Tenke, Cerro
Verde and Morenci. FCX is also considering additional investments at several
of its sites. Capital spending plans will continue to be reviewed and adjusted
in response to changes in market conditions and other factors.

CASH AND DEBT

At September30, 2012, FCX had consolidated cash of $3.7 billion. Net of
noncontrolling interests' share, taxes and other costs, cash available to the
parent company totaled $2.7 billion as shown below (in billions):

                                              September 30,
                                               2012
Cash at domestic companies^a                   $   1.2
Cash at international operations               2.5       
Total consolidated cash and cash equivalents   3.7
Less: Noncontrolling interests' share          (0.8      )
Cash, net of noncontrolling interests' share   2.9
Less: Withholding taxes and other              (0.2      )
Net cash available                             $   2.7   
                                                         

^a. Includes cash at FCX's parent company and North America operations.

At September30, 2012, FCX had $3.5 billion in debt. FCX had no borrowings and
$44 million of letters of credit issued under its revolving credit facility,
resulting in total availability of approximately $1.5 billion at September30,
2012.

Annual interest cost savings associated with debt repayments since January 1,
2009, including the first-quarter 2012 refinancing, approximates $415 million
per year (based on current interest rates).

FINANCIAL POLICY

FCX has a long-standing tradition of seeking to build shareholder value
through investing in projects with attractive rates of return and returning
cash to shareholders through common stock dividends and share purchases. FCX
paid common stock dividends of $832 million during the first nine months of
2012. FCX's current annual dividend rate for its common stock is $1.25 per
share. On September 26, 2012, FCX's Board of Directors (the Board) declared a
regular quarterly dividend of $0.3125 per share, which will be paid on
November 1, 2012. FCX intends to continue to maintain a strong financial
position, invest aggressively in attractive growth projects and provide cash
returns to shareholders. The Board will continue to review FCX's financial
policy on an ongoing basis.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's third-quarter 2012
results is scheduled for today at 10:00 a.m. Eastern Time. The conference call
will be broadcast on the Internet along with slides. Interested parties may
listen to the conference call live and view the slides by accessing
"www.fcx.com." A replay of the webcast will be available through Friday,
November16, 2012.

FCX is a leading international mining company with headquarters in Phoenix,
Arizona. FCX operates large, long-lived, geographically diverse assets with
significant proven and probable reserves of copper, gold and molybdenum. FCX
has a dynamic portfolio of operating, expansion and growth projects in the
copper industry and is the world's largest producer of molybdenum.

FCX's portfolio of assets includes the Grasberg minerals district in
Indonesia, the world’s largest copper and gold mine in terms of recoverable
reserves; significant mining operations in the Americas, including the
large-scale Morenci minerals district in North America and the Cerro Verde and
El Abra operations in South America; and the Tenke Fungurume minerals district
in the DRC. Additional information about FCX is available on FCX's website at
"www.fcx.com."

Cautionary Statement and Regulation G Disclosure: This press release contains
forward-looking statements in which FCX discusses its potential future
performance. Forward-looking statements are all statements other than
statements of historical facts, such as those statements regarding projected
ore grades and milling rates, projected production and sales volumes,
projected unit net cash costs, projected operating cash flows, projected
capital expenditures, exploration efforts and results, mine production and
development plans, the impact of deferred intercompany profits on earnings,
liquidity, other financial commitments and tax rates, the impact of copper,
gold, molybdenum and cobalt price changes, future dividend payments and
potential share purchases. The words "anticipates," "may," "can," "plans,"
"believes," "estimates," "expects," "projects," "intends," "likely," "will,"
"should," "to be," and any similar expressions are intended to identify those
assertions as forward-looking statements. The declaration of dividends is at
the discretion of FCX's Board of Directors (the Board) and will depend on
FCX's financial results, cash requirements, future prospects, and other
factors deemed relevant by the Board.

FCX cautions readers that forward-looking statements are not guarantees of
future performance and its actual results may differ materially from those
anticipated, projected or assumed in the forward-looking statements. Important
factors that can cause FCX's actual results to differ materially from those
anticipated in the forward-looking statements include commodity prices, mine
sequencing, production rates, industry risks, regulatory changes, political
risks, the outcome of ongoing discussions with the Indonesian government, the
potential effects of violence in Indonesia, the resolution of administrative
disputes in the Democratic Republic of Congo, weather- and climate-related
risks, labor relations, environmental risks, litigation results, currency
translation risks and other factors described in more detail under the heading
"Risk Factors" in FCX's Annual Report on Form 10-K for the year ended
December31, 2011, filed with the U.S. Securities and Exchange Commission
(SEC) as updated by FCX's subsequent filings with the SEC.

Investors are cautioned that many of the assumptions on which FCX's
forward-looking statements are based are likely to change after its
forward-looking statements are made, including for example commodity prices,
which FCX cannot control, and production volumes and costs, some aspects of
which FCX may or may not be able to control. Further, FCX may make changes to
its business plans that could or will affect its results. FCX cautions
investors that it does not intend to update forward-looking statements more
frequently than quarterly notwithstanding any changes in assumptions, changes
in business plans, actual experience or other changes, and FCX undertakes no
obligation to update any forward-looking statements.

This press release also contains certain financial measures such as unit net
cash costs per pound of copper and per pound of molybdenum. As required by SEC
Regulation G, reconciliations of these measures to amounts reported in FCX's
consolidated financial statements are in the supplemental schedule, "Product
Revenues and Production Costs," beginning on page VII, which is available on
FCX's website, "www.fcx.com."

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
                                                               
                     Three Months Ended September 30,
                     Production                      Sales
COPPER (millions
of recoverable       2012            2011            2012              2011
pounds)
(FCX's net
interest in %)
North America
Morenci (85%)^a      136             134             132               129
Bagdad (100%)        51              48              49                48
Safford (100%)       37              36              40                34
Sierrita (100%)      38              46              38                44
Miami (100%)         14              17              15                15
Tyrone (100%)        21              19              21                19
Chino (100%)         39              22              35                18
Other (100%)         1              —              1                —
Total North          337            322            331              307
America
                                                                       
South America
Cerro Verde          153             157             155               161
(53.56%)
El Abra (51%)        85              72              74                73
Candelaria/Ojos      73             96             79               88
del Salado (80%)
Total South          311            325            308              322
America
                                                                       
Indonesia
Grasberg             199            233            195              253
(90.64%)^b
                                                                       
Africa
Tenke Fungurume      91             71             88               65
(56%)^c
                                                                       
Consolidated         938            951            922              947
Less
noncontrolling       186            180            181              179
interests
Net                  752            771            741              768
                                                                       
Consolidated                                         922               947
sales from mines
Purchased copper                                     45               51
Total copper
sales, including                                     967              998
purchases
                                                                       
Average realized                                     $  3.64           $ 3.60
price per pound
                                                                       
GOLD (thousands
of recoverable
ounces)
(FCX's net
interest in %)
North America        2               3               3                 2
(100%)
South America        20              25              21                23
(80%)
Indonesia            182            357            178              384
(90.64%)^b
Consolidated         204            385            202              409
Less
noncontrolling       21             38             21               41
interests
Net                  183            347            181              368
                                                                       
Consolidated                                         202               409
sales from mines
Purchased gold                                       1                1
Total gold sales,
including                                            203              410
purchases
                                                                       
Average realized                                     $  1,728          $ 1,693
price per ounce
                                                                       
MOLYBDENUM
(millions of
recoverable
pounds)
(FCX's net
interest in %)
Henderson (100%)     9               11              N/A               N/A
Climax (100%)        1               —               N/A               N/A
North America        8               10              N/A               N/A
(100%)^a
Cerro Verde          2              2              N/A              N/A
(53.56%)
Consolidated         20             23             21               19
Less
noncontrolling       1              1              1                1
interests
Net                  19             22             20               18
                                                                       
Consolidated                                         21                19
sales from mines
Purchased                                            —                —
molybdenum
Total molybdenum
sales, including                                     21               19
purchases
                                                                       
Average realized                                     $  13.62          $ 16.34
price per pound
                                                                       
COBALT (millions
of contained
pounds)
(FCX's net
interest in %)
Consolidated -
Tenke Fungurume      8              6              8                6
(56%)^c
Less
noncontrolling       4              3              3                2
interests
Net                  4              3              5                4
                                                                       
Average realized                                     $  8.24           $ 10.05
price per pound
                                                                       
^a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
^b. Amounts are net of Grasberg's joint venture partner's interest, which
varies in accordance with the terms of the joint venture agreement.
^c. Effective March 26, 2012, FCX's interest in Tenke Fungurume was
prospectively reduced from 57.75 percent to 56 percent.
                                                                       
FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
                                                                       
                     Nine Months Ended September 30,
                     Production                      Sales
COPPER (millions
of recoverable       2012            2011            2012              2011
pounds)
(FCX's net
interest in %)
North America
Morenci (85%)^a      395             391             405               389
Bagdad (100%)        147             145             150               152
Safford (100%)       129             101             135               102
Sierrita (100%)      120             131             127               129
Miami (100%)         51              46              54                40
Tyrone (100%)        61              56              62                60
Chino (100%)         99              45              94                40
Other (100%)         3              2              3                2
Total North          1,005          917            1,030            914
America
                                                                       
South America
Cerro Verde          443             502             440               503
(53.56%)
El Abra (51%)        249             186             240               183
Candelaria/Ojos      216            281            215              279
del Salado (80%)
Total South          908            969            895              965
America
                                                                       
Indonesia
Grasberg             495            778            512              796
(90.64%)^b
                                                                       
Africa
Tenke Fungurume      250            204            239              200
(56%)^c
                                                                       
Consolidated         2,658          2,868          2,676            2,875
Less
noncontrolling       526            540            517              538
interests
Net                  2,132          2,328          2,159            2,337
                                                                       
Consolidated                                         2,676             2,875
sales from mines
Purchased copper                                     97               185
Total copper
sales, including                                     2,773            3,060
purchases
                                                                       
Average realized                                     $  3.63           $ 3.94
price per pound
                                                                       
GOLD (thousands
of recoverable
ounces)
(FCX's net
interest in %)
North America        9               6               9                 5
(100%)
South America        57              73              56                72
(80%)
Indonesia            641            1,123          691              1,168
(90.64%)^b
Consolidated         707            1,202          756              1,245
Less
noncontrolling       71             119            76               124
interests
Net                  636            1,083          680              1,121
                                                                       
Consolidated                                         756               1,245
sales from mines
Purchased gold                                       2                1
Total gold sales,
including                                            758              1,246
purchases
                                                                       
Average realized                                     $  1,666          $ 1,565
price per ounce
                                                                       
MOLYBDENUM
(millions of
recoverable
pounds)
(FCX's net
interest in %)
Henderson (100%)     26              30              N/A               N/A
Climax (100%)^d      2               —               N/A               N/A
North America        27              27              N/A               N/A
(100%)^a
Cerro Verde          6              8              N/A              N/A
(53.56%)
Consolidated         61             65             62               60
Less
noncontrolling       3              4              3                3
interests
Net                  58             61             59               57
                                                                       
Consolidated                                         62                60
sales from mines
Purchased                                            —                —
molybdenum
Total molybdenum
sales, including                                     62               60
purchases
                                                                       
Average realized                                     $  14.79          $ 17.57
price per pound
                                                                       
COBALT (millions
of contained
pounds)
(FCX's net
interest in %)
Consolidated -
Tenke Fungurume      20             18             19               19
(56%)^c
Less
noncontrolling       9              8              8                8
interests
Net                  11             10             11               11
                                                                       
Average realized                                     $  8.36           $ 10.71
price per pound
                                                                       
^a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
^b. Amounts are net of Grasberg's joint venture partner's interest, which
varies in accordance with the terms of the joint venture agreement.
^c. Effective March 26, 2012, FCX's interest in Tenke Fungurume was
prospectively reduced from 57.75 percent to 56 percent.
^d. Includes results from the Climax molybdenum mine since the start of
commercial operations in May 2012.
                                                                       

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
                                                               
                                Three Months Ended        Nine Months Ended
                                September 30,             September 30,
                                2012         2011         2012         2011
100% North America Copper
Mines
Solution
Extraction/Electrowinning
(SX/EW) Operations
Leach ore placed in
stockpiles (metric tons per     922,100      872,200      967,700      841,700
day)
Average copper ore grade        0.22         0.25         0.22         0.25
(percent)
Copper production (millions     211          199          639          582
of recoverable pounds)
                                                                       
Mill Operations
Ore milled (metric tons per     242,700      225,800      235,700      220,100
day)
Average ore grades (percent):
Copper                          0.37         0.38         0.37         0.37
Molybdenum                      0.03         0.03         0.03         0.03
Copper recovery rate            85.4         84.5         83.5         83.5
(percent)
Production (millions of
recoverable pounds):
Copper                          150          146          436          404
Molybdenum                      8            10           27           27
                                                                       
100% South America Mining
SX/EW Operations
Leach ore placed in
stockpiles (metric tons per     248,100      244,100      229,100      249,500
day)
Average copper ore grade        0.55         0.54         0.55         0.48
(percent)
Copper production (millions     115          111          346          314
of recoverable pounds)
                                                                       
Mill Operations
Ore milled (metric tons per     191,400      185,700      190,000      192,300
day)
Average ore grades:
Copper (percent)                0.59         0.66         0.58         0.66
Gold (grams per metric ton)     0.09         0.12         0.09         0.12
Molybdenum (percent)            0.02         0.02         0.02         0.02
Copper recovery rate            90.7         89.1         89.5         90.0
(percent)
Production (recoverable):
Copper (millions of pounds)     196          214          562          655
Gold (thousands of ounces)      20           25           57           73
Molybdenum (millions of         2            2            6            8
pounds)
                                                                       
100% Indonesia Mining
Ore milled (metric tons per     186,700      152,200      160,400      197,900
day)
Average ore grades:
Copper (percent)                0.63         0.90         0.61         0.80
Gold (grams per metric ton)     0.46         1.14         0.60         0.92
Recovery rates (percent):
Copper                          87.7         89.8         88.6         88.2
Gold                            71.4         82.4         76.7         81.3
Production (recoverable):
Copper (millions of pounds)     199          237          495          803
Gold (thousands of ounces)      182          408          641          1,261
                                                                       
100% Africa Mining
Ore milled (metric tons per     13,600       12,000       12,900       10,800
day)
Average ore grades (percent):
Copper                          3.60         3.21         3.56         3.42
Cobalt                          0.38         0.41         0.37         0.40
Copper recovery rate            92.9         91.4         91.6         92.0
(percent)
Production (millions of
pounds):
Copper (recoverable)            91           71           250          204
Cobalt (contained)              8            6            20           18
                                                                       
100% Henderson Molybdenum
Mine
Ore milled (metric tons per     21,400       24,500       21,100       23,300
day)
Average molybdenum ore grade    0.23         0.24         0.23         0.24
(percent)
Molybdenum production
(millions of recoverable        9            11           26           30
pounds)
                                                                       

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                                                            
                        Three Months Ended           Nine Months Ended
                        September 30,                September 30,
                        2012           2011          2012           2011
                        (In Millions, Except Per Share Amounts)
Revenues^a              $ 4,417        $ 5,195       $ 13,497       $ 16,718
Cost of sales:
Production and            2,592          2,570         7,642          7,504
delivery
Depreciation,
depletion and            298          257         856          756    
amortization
Total cost of sales       2,890          2,827         8,498          8,260
Selling, general and
administrative            110            102           311            323
expenses
Exploration and           79             78            214            194
research expenses
Environmental
obligations and          (73    )      38          18           98     
shutdown costs^b
Total costs and          3,006        3,045       9,041        8,875  
expenses
Operating income          1,411          2,150         4,456          7,843
Interest expense,         (42    )       (78   )       (148   )       (250   )
net^c
Losses on early
extinguishment of         —              —             (168   )       (68    )
debt
Other (expense)          (15    )      28          23           40     
income, net
Income before income
taxes and equity in       1,354          2,100         4,163          7,565
affiliated companies'
net earnings
Provision for income      (215   )       (808  )       (1,128 )       (2,698 )
taxes^d
Equity in affiliated
companies' net           1            2           —            14     
earnings
Net income                1,140          1,294         3,035          4,881
Net income
attributable to          (316   )      (241  )      (737   )      (961   )
noncontrolling
interests^d
Net income
attributable to FCX     $ 824         $ 1,053      $ 2,298       $ 3,920  
common
stockholders^a,b,d,e
                                                                             
Net income per share
attributable to FCX
common stockholders:
Basic                   $ 0.87        $ 1.11       $ 2.42        $ 4.14   
Diluted                 $ 0.86        $ 1.10       $ 2.41        $ 4.10   
                                                                             
Weighted-average
common shares
outstanding:
Basic                    949          948         949          947    
Diluted                  953          955         953          955    
                                                                             
Dividends declared
per share of common     $ 0.3125      $ 0.25       $ 0.9375      $ 1.25   
stock
                                                                             

^a. Includes favorable (unfavorable) adjustments to provisionally priced
copper sales recognized in the prior periods totaling $24 million ($12 million
to net income attributable to common stockholders) in third-quarter 2012,
$(213) million ($(100) million to net income attributable to common
stockholders) in third-quarter 2011, $101 million ($43 million to net income
attributable to common stockholders) for the first nine months of 2012 and
$(12) million ($(5) million to net income attributable to common stockholders)
for the first nine months of 2011.

^b. Includes net (credits) charges for adjustments to environmental
obligations and related litigation reserves totaling $(85) million ($(68)
million to net income attributable to common stockholders) for third quarter
2012, $29 million ($23 million to net income attributable to common
stockholders) for third-quarter 2011, $(19) million ($(16) million to net
income attributable to common stockholders) for the first nine months of 2012
and $78 million ($63 million to net income attributable to common
stockholders) for the first nine months of 2011.

^c. Consolidated interest expense, excluding capitalized interest, totaled $56
million in third-quarter 2012, $105 million in third-quarter 2011, $210
million for the first nine months of 2012 and $325 million for the first nine
months of 2011. Lower interest expense primarily reflects the impact of the
first-quarter 2012 refinancing transaction.

^d. The 2012 periods include a net tax credit of $208 million ($108 million
attributable to noncontrolling interests and $100 million to net income
attributable to common stockholders) associated with adjustments to Cerro
Verde's deferred income taxes. The 2011 periods include a tax charge of $57
million ($7 million attributable to noncontrolling interests and $50 million
to net income attributable to common stockholders) for additional taxes
associated with Cerro Verde's election to pay a special mining burden during
the remaining term of its current stability agreement. For further discussion
refer to the supplemental schedule, "Provision for Income Taxes," on page
XXVI, which is available on FCX's website, "^www.fcx.com^."

^e. FCX defers recognizing profits on intercompany sales until final sales to
third parties occur. Changes in these deferrals attributable to variability in
intercompany volumes resulted in net (reductions) additions to net income
attributable to common stockholders of $(34) million, $(0.04) per share, in
third-quarter 2012, $99 million, $0.10 per share, in third-quarter 2011, $(69)
million, $(0.07) per share, for the first nine months of 2012 and $116
million, $0.12 per share, for the first nine months of 2011.

FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
                                                             
                                              September 30,       December 31,
                                              2012                2011
                                              (In Millions)
ASSETS
Current assets:
Cash and cash equivalents                     $  3,727            $  4,822
Trade accounts receivable                        1,424               892
Other accounts receivable                        242                 250
Inventories:
Mill and leach stockpiles                        1,595               1,289
Materials and supplies, net                      1,465               1,354
Product                                          1,374               1,226
Other current assets                            353               214     
Total current assets                             10,180              10,047
Property, plant, equipment and development       20,294              18,449
costs, net
Long-term mill and leach stockpiles              1,871               1,686
Long-term receivables                            1,004               675
Intangible assets, net                           321                 325
Other assets                                    847               888     
Total assets                                  $  34,517          $  32,070  
                                                                             
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities      $  2,531            $  2,297
Dividends payable                                299                 240
Current portion of reclamation and               259                 236
environmental obligations
Accrued income taxes                             59                  163
Current portion of debt                         2                 4       
Total current liabilities                        3,150               2,940
Deferred income taxes                            3,378               3,255
Reclamation and environmental obligations,       2,194               2,138
less current portion
Long-term debt, less current portion             3,521               3,533
Other liabilities                               1,531             1,651   
Total liabilities                                13,774              13,517
Equity:
FCX stockholders' equity:
Common stock                                     107                 107
Capital in excess of par value                   19,094              19,007
Retained earnings                                1,953               546
Accumulated other comprehensive loss             (439    )           (465    )
Common stock held in treasury                   (3,576  )          (3,553  )
Total FCX stockholders' equity                   17,139              15,642
Noncontrolling interests                        3,604             2,911   
Total equity                                    20,743            18,553  
Total liabilities and equity                  $  34,517          $  32,070  
                                                                             

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                                                
                                                     Nine Months Ended
                                                     September 30,
                                                     2012           2011
                                                     (In Millions)
Cash flow from operating activities:
Net income                                           $ 3,035        $ 4,881
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization               856            756
Stock-based compensation                               77             92
Pension plan contributions                             (114   )       (29    )
Net charges for reclamation and environmental          64             144
obligations, including accretion
Payments of reclamation and environmental              (148   )       (131   )
obligations
Losses on early extinguishment of debt                 168            68
Deferred income taxes                                  223            419
Increase in long-term mill and leach stockpiles        (184   )       (174   )
Other, net                                             71             (26    )
(Increases) decreases in working capital and other
tax payments:
Accounts receivable                                    (603   )       1,034
Inventories                                            (581   )       (266   )
Other current assets                                   (33    )       (152   )
Accounts payable and accrued liabilities               78             (101   )
Accrued income taxes and other tax payments           (400   )      (641   )
Net cash provided by operating activities             2,509        5,874  
                                                                             
Cash flow from investing activities:
Capital expenditures:
North America copper mines                             (569   )       (342   )
South America                                          (659   )       (431   )
Indonesia                                              (624   )       (463   )
Africa                                                 (428   )       (89    )
Molybdenum                                             (197   )       (317   )
Other                                                  (41    )       (107   )
Other, net                                            (19    )      24     
Net cash used in investing activities                 (2,537 )      (1,725 )
                                                                             
Cash flow from financing activities:
Proceeds from debt                                     3,023          37
Repayments of debt                                     (3,179 )       (1,303 )
Cash dividends paid:
Common stock                                           (832   )       (1,186 )
Noncontrolling interests                               (76    )       (350   )
Contributions from noncontrolling interests            15             27
Net (payments for) proceeds from stock-based           (3     )       2
awards
Excess tax benefit from stock-based awards             7              23
Other, net                                            (22    )      (9     )
Net cash used in financing activities                 (1,067 )      (2,759 )
                                                                             
Net (decrease) increase in cash and cash               (1,095 )       1,390
equivalents
Cash and cash equivalents at beginning of year        4,822        3,738  
Cash and cash equivalents at end of period           $ 3,727       $ 5,128  

Contact:

Freeport-McMoRan Copper & Gold Inc.
Financial Contacts:
Kathleen L. Quirk, 602-366-8016
or
David P. Joint, 504-582-4203
or
Media Contact:
Eric E. Kinneberg, 602-366-7994
 
Press spacebar to pause and continue. Press esc to stop.