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Freeport-McMoRan Copper & Gold Inc. Reports First-Quarter 2013 Results

  Freeport-McMoRan Copper & Gold Inc. Reports First-Quarter 2013 Results

Business Wire

PHOENIX -- April 18, 2013

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

  *Net income attributable to common stock for first-quarter 2013 was $648
    million, $0.68 per share, compared with net income of $764 million, $0.80
    per share, for first-quarter 2012.
  *Consolidated sales from mines for first-quarter 2013 totaled 954 million
    pounds of copper, 214 thousand ounces of gold and 25 million pounds of
    molybdenum, compared with 827 million pounds of copper, 288 thousand
    ounces of gold and 21 million pounds of molybdenum for first-quarter 2012.
  *Consolidated sales from mines for the year 2013 are expected to
    approximate 4.3 billion pounds of copper, 1.4 million ounces of gold and
    92 million pounds of molybdenum, including 1.0 billion pounds of copper,
    295 thousand ounces of gold and 23 million pounds of molybdenum for
    second-quarter 2013.
  *Consolidated unit net cash costs (net of by-product credits) averaged
    $1.57 per pound of copper for first-quarter 2013, compared with $1.26 per
    pound for first-quarter 2012. Based on current 2013 sales volume and cost
    estimates and assuming average prices of $1,400 per ounce for gold and $11
    per pound for molybdenum for the remainder of 2013, consolidated unit net
    cash costs (net of by-product credits) are estimated to average
    approximately $1.45 per pound of copper for the year 2013.
  *Operating cash flows totaled $831 million  (net of $430 million in working
    capital uses and changes in other tax payments) for first-quarter 2013,
    compared with $801 million (net of $720 million in working capital uses
    and changes in other tax payments) for first-quarter 2012. Excluding
    results of pending acquisitions, based on current sales volume and cost
    estimates and assuming average prices of $3.25 per pound for copper,
    $1,400 per ounce for gold and $11 per pound for molybdenum for the
    remainder of 2013, operating cash flows are estimated to approximate $5.5
    billion (including $0.4 billion in net working capital sources and changes
    in other tax payments) for the year 2013.
  *Capital expenditures totaled $805 million for first-quarter 2013, compared
    with $707 million for first-quarter 2012. Other investing activities for
    first-quarter 2013 included $321 million (net of cash acquired) for
    payments by the Freeport Cobalt joint venture to fund the acquisition of a
    cobalt chemical refinery. Excluding amounts for pending acquisitions,
    capital expenditures are expected to approximate $4.4 billion for the year
    2013, including $2.6 billion for major projects and $1.8 billion for
    sustaining capital.
  *FCX completed $10.5 billion in debt financings associated with the pending
    acquisitions of Plains Exploration & Production Company (PXP) and McMoRan
    Exploration Co. (MMR) consisting of $4.0 billion in bank term loans (which
    will be funded at closing of the transactions) and $6.5 billion of senior
    notes. The weighted-average interest rate of these financings approximates
    3.1 percent. The acquisitions of PXP and MMR are expected to close in
    second-quarter 2013.
  *At March 31, 2013, consolidated cash totaled $9.6 billion and total debt
    totaled $10.1 billion.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported first-quarter 2013
net income attributable to common stock of $648 million, $0.68 per share,
compared with $764 million, $0.80 per share, for first-quarter 2012.
First-quarter 2013 net income attributable to common stock included charges
totaling $50 million, $0.05 per share, associated with debt extinguishment
costs for the termination of the acquisition bridge loan facilities and for
costs associated with pending acquisitions and the March 2013 cobalt chemical
refinery acquisition. First-quarter 2012 net income attributable to common
stock included a charge of $149 million, $0.16 per share, associated with debt
extinguishment costs for the redemption of FCX's 8.375% senior notes.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President
and Chief Executive Officer, said, "Our first-quarter results reflect our
focus on strong and safe production, aggressive cost management and advancing
financially attractive projects to grow our copper production, increase cash
flows and provide strong returns for shareholders. We also completed
attractive financing transactions during the quarter, providing low-cost debt
to fund the pending oil and gas acquisitions. We look forward to completing
the transactions in the second quarter and to executing our strategy of
developing long-term resources to generate long-term value for shareholders
through expanded investment opportunities."

SUMMARY FINANCIAL AND OPERATING DATA

                                                  Three Months Ended
                                                   March 31,
                                                  2013           2012
Financial Data (in millions, except per share
amounts)
Revenues^a                                         $ 4,583         $ 4,605
Operating income                                   $ 1,355  ^b     $ 1,734
Net income attributable to common stock^c          $ 648    ^b,d   $ 764    ^d
Diluted net income per share of common stock       $ 0.68   ^b,d   $ 0.80   ^d
Diluted weighted-average common shares             953             955
outstanding
Operating cash flows                               $ 831    ^e     $ 801    ^e
Capital expenditures                               $ 805           $ 707
                                                                            
Mining Operating Data
Copper (millions of recoverable pounds)
Production                                         980             833
Sales, excluding purchases                         954             827
Average realized price per pound                   $ 3.51          $ 3.82
Site production and delivery costs per pound^f     $ 1.94          $ 1.96
Unit net cash costs per pound^f                    $ 1.57          $ 1.26
Gold (thousands of recoverable ounces)
Production                                         235             252
Sales, excluding purchases                         214             288
Average realized price per ounce                   $ 1,606         $ 1,694
Molybdenum (millions of recoverable pounds)
Production                                         22              21
Sales, excluding purchases                         25              21
Average realized price per pound                   $ 12.75         $ 15.34
                                                                            

    Includes the impact of adjustments to provisionally priced concentrate and
^a. cathode sales recognized in prior periods. Refer to the "Consolidated
    Statements of Income" on page III for a summary of the impacts.
    Includes charges of $14 million ($10 million to net income attributable to
^b. common stock or $0.01 per share) for costs associated with the pending
    acquisitions of PXP and MMR and for the March 2013 cobalt chemical
    refinery acquisition.
    FCX defers recognizing profits on intercompany sales until final sales to
^c. third parties occur. Refer to the "Consolidated Statements of Income" on
    page III for a summary of net impacts from changes in these deferrals.
    Includes losses on early extinguishment of debt totaling $45 million ($40
    million to net income attributable to common stock or $0.04 per share) for
^d. first-quarter 2013 related to the termination of the acquisition bridge
    loan facilities and $168 million ($149 million to net income attributable
    to common stock or $0.16 per share) for first-quarter 2012 associated with
    the redemption of FCX's remaining 8.375% senior notes.
^e. Net of working capital uses and changes in other tax payments of $430
    million for first-quarter 2013 and $720 million for first-quarter 2012.
    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
^f. 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 VI, which is available on FCX's website,
    "www.fcx.com."

OPERATIONS

Consolidated. First-quarter 2013 consolidated copper sales of 954 million
pounds were higher than the January 2013 estimate of 940 million pounds
(primarily reflecting higher production and sales from Africa) and also higher
than first-quarter 2012 sales of 827 million pounds primarily because of
higher production from Indonesia and Africa.

First-quarter 2013 consolidated gold sales of 214 thousand ounces were lower
than the January 2013 estimate of 230 thousand ounces (primarily reflecting
timing of shipments) and lower than first-quarter 2012 sales of 288 thousand
ounces primarily because of anticipated lower ore grades in Indonesia.

First-quarter 2013 consolidated molybdenum sales of 25 million pounds were
higher than the January 2013 estimate of 23 million pounds and first-quarter
2012 sales of 21 million pounds primarily because of stronger sales in the
metallurgical and chemical sectors.

Consolidated sales from mines for the year 2013 are expected to approximate
4.3 billion pounds of copper, 1.4 million ounces of gold and 92 million pounds
of molybdenum, including 1.0 billion pounds of copper, 295 thousand ounces of
gold and 23 million pounds of molybdenum for second-quarter 2013.

As anticipated, consolidated average unit net cash costs (net of by-product
credits) of $1.57 per pound of copper in first-quarter 2013 were higher than
unit net cash costs of $1.26 per pound in first-quarter 2012 reflecting lower
by-product credits.

Assuming average prices of $1,400 per ounce of gold and $11 per pound of
molybdenum for the remainder of 2013 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 $1.45 per pound of copper for the year 2013. Projected unit net
cash costs for 2013 are higher than previous estimates primarily because of
lower gold credits. The impact of price changes for the remainder of 2013 on
consolidated unit net cash costs would approximate $0.015 per pound for each
$50 per ounce change in the average price of gold and $0.01 per pound for each
$2 per pound change in the average price of molybdenum. Quarterly unit net
cash costs vary with fluctuations in sales volumes and average realized prices
(primarily gold and molybdenum prices), and are expected to decline during the
second half of the year as FCX gains access to higher grade ore in Indonesia
(54 percent of 2013 consolidated copper sales volumes and 63 percent of
consolidated gold sales volumes are expected in the second half of 2013).

North America Copper Mines. FCX operates seven open-pit copper mines in North
America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino
and Tyrone 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, which are sold to
FCX's molybdenum sales company at market-based pricing.

Operating and Development Activities. FCX has increased production from its
North America copper mines in recent years and continues to evaluate a number
of opportunities to invest in additional production capacity at several of its
North America copper mines in response to positive exploration results in
recent years.

At Morenci, FCX is expanding 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 (an approximate 40 percent increase from
2012) through an increase in milling rates from 50,000 metric tons of ore per
day to approximately 115,000 metric tons of ore per day and mining rates from
700,000 short tons per day to 900,000 short tons per day. The targeted
increase in mining rates has been achieved, engineering activities are nearing
completion and construction activities for the new mill and related facilities
are in progress.

Operating Data. Following is summary consolidated operating data for the North
America copper mines for the first quarters of 2013 and 2012:

                                                     Three Months Ended
                                                      March 31,
                                                     2013      2012
Copper (millions of recoverable pounds)
Production                                            343        337
Sales, excluding purchases                            353        338
Average realized price per pound                      $ 3.60     $ 3.82
                                                                 
Molybdenum (millions of recoverable pounds)
Production^a                                          8          10
                                                                 
Unit net cash costs per pound of copper^b:
Site production and delivery, excluding adjustments   $ 1.99     $ 1.80
By-product credits, primarily molybdenum              (0.26  )   (0.41  )
Treatment charges                                     0.13      0.12   
Unit net cash costs                                   $ 1.86    $ 1.51 

    Refer to consolidated operating data on page 3 for FCX's consolidated
^a. molybdenum sales, which includes sales of molybdenum produced at the North
    America copper mines.
    For a reconciliation of unit net cash costs per pound to production and
    delivery costs applicable to sales reported in FCX's consolidated
^b. financial statements, refer to the supplemental schedule, "Product
    Revenues and Production Costs," beginning on page VI, which is available
    on FCX's website, "www.fcx.com."
    

Consolidated copper sales volumes from North America of 353 million pounds in
first-quarter 2013 were higher than first-quarter 2012 sales of 338 million
pounds primarily reflecting increased production at the Chino mine.

FCX expects sales from the North America copper mines to approximate 1.45
billion pounds of copper for the year 2013, compared with 1.35 billion pounds
in 2012, primarily reflecting higher production at Morenci and Chino.

Average unit net cash costs (net of by-product credits) for the North America
copper mines of $1.86 per pound of copper in first-quarter 2013 were higher
than unit net cash costs of $1.51 per pound in first-quarter 2012 primarily
reflecting higher mining rates and lower molybdenum credits.

FCX estimates that average unit net cash costs (net of by-product credits) for
the North America copper mines would approximate $1.89 per pound of copper for
the year 2013, based on current sales volume and cost estimates and assuming
an average molybdenum price of $11 per pound for the remainder of 2013. North
America's average projected unit net cash costs would change by approximately
$0.025 per pound for each $2 per pound change in the average price of
molybdenum for the remainder of 2013.

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 Candelaria and Ojos del Salado mines produce gold and
silver, and the Cerro Verde mine produces molybdenum concentrates that are
sold to FCX's molybdenum sales company at market-based pricing.

Operating and Development Activities. FCX has commenced initial construction
activities associated with a large-scale expansion at Cerro Verde. The
project, with an estimated cost of $4.4 billion, will 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.

FCX continues to engage in studies to evaluate 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 first quarters of 2013 and 2012:

                                                     Three Months Ended
                                                      March 31,
                                                     2013       2012
Copper (millions of recoverable pounds)
Production                                            298         293
Sales                                                 285         286
Average realized price per pound                      $ 3.48      $ 3.83
                                                                  
Gold (thousands of recoverable ounces)
Production                                            21          19
Sales                                                 21          19
Average realized price per ounce                      $ 1,617     $ 1,680
                                                                  
Molybdenum (millions of recoverable pounds)
Production^a                                          2           2
                                                                  
Unit net cash costs per pound of copper^b:
Site production and delivery, excluding adjustments   $ 1.62      $ 1.53
By-product credits                                    (0.29   )   (0.29   )
Treatment charges                                     0.18       0.16    
Unit net cash costs                                   $ 1.51     $ 1.40  

    Refer to consolidated operating data on page 3 for FCX's consolidated
^a. molybdenum sales, which includes sales of molybdenum produced at Cerro
    Verde.
    For a reconciliation of unit net cash costs per pound to production and
    delivery costs applicable to sales reported in FCX's consolidated
^b. financial statements, refer to the supplemental schedule, "Product
    Revenues and Production Costs," beginning on page VI, which is available
    on FCX's website, "www.fcx.com."
    

Consolidated copper sales volumes from South America of 285 million pounds in
first-quarter 2013 approximated first-quarter 2012 sales of 286 million pounds
as higher grade ore at Candelaria offset lower grade ore at Cerro Verde.

FCX expects South America's sales to approximate 1.34 billion pounds of copper
for the year 2013, compared with sales of 1.25 billion pounds of copper in
2012, primarily reflecting higher grade ore at Candelaria.

Average unit net cash costs (net of by-product credits) for South America of
$1.51 per pound of copper in first-quarter 2013 were higher than unit net cash
costs of $1.40 per pound in first-quarter 2012 primarily reflecting higher
costs for maintenance and repairs.

FCX estimates that average unit net cash costs (net of by-product credits) for
South America mining would approximate $1.44 per pound of copper for the year
2013, based on current sales volume and cost estimates and assuming average
prices of $1,400 per ounce of gold and $11 per pound of molybdenum for the
remainder of 2013.

Indonesia Mining. Through its 90.64 percent owned and wholly consolidated
subsidiary PT Freeport Indonesia, FCX's assets include one of the world's
largest copper and gold deposits at the Grasberg minerals district in Papua,
Indonesia. PT Freeport Indonesia produces copper concentrates, which contain
significant quantities of gold and silver.

Operating and Development Activities. FCX has several projects in progress in
the Grasberg minerals district, primarily related to the development of
large-scale, high-grade underground ore bodies. In aggregate, these
underground ore bodies are expected to ramp up over several years to produce
approximately 240,000 metric tons of ore per day following the currently
anticipated transition from the Grasberg open pit in 2017. Development of the
Grasberg Block Cave and Deep Mill Level Zone (DMLZ) is advancing according to
schedule, which would enable the DMLZ to commence production in 2015 and the
Grasberg Block Cave mine to commence production in 2017. Over the next five
years, estimated aggregate capital spending on these projects is currently
expected to average $735 million per year ($585 million per year net to PT
Freeport Indonesia).

Operating Data. Following is summary consolidated operating data for the
Indonesia mining operations for the first quarters of 2013 and 2012:

                                                     Three Months Ended
                                                      March 31,
                                                     2013       2012
Copper (millions of recoverable pounds)
Production                                            219         123
Sales                                                 198         134
Average realized price per pound                      $ 3.43      $ 3.81
                                                                  
Gold (thousands of recoverable ounces)
Production                                            212         229
Sales                                                 191         266
Average realized price per ounce                      $ 1,604     $ 1,695
                                                                  
Unit net cash costs per pound of copper^a:
Site production and delivery, excluding adjustments   $ 2.61      $ 3.51
Gold and silver credits                               (1.63   )   (3.51   )
Treatment charges                                     0.23        0.19
Royalty on metals                                     0.13       0.14    
Unit net cash costs                                   $ 1.34     $ 0.33  

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

Indonesia's first-quarter 2013 copper sales of 198 million pounds were higher
than first-quarter 2012 copper sales of 134 million pounds when labor-related
disruptions affected operations. Productivity measures have continued to
improve resulting in first-quarter 2013 daily mill throughput averaging
199,400 metric tons per day, including 59,000 metric tons per day from the
Deep Ore Zone (DOZ) underground mine.

As expected, Indonesia's first-quarter 2013 gold sales of 191 thousand ounces
were lower than first-quarter 2012 gold sales of 266 thousand ounces primarily
as a result of lower ore grades from mine sequencing.

At the Grasberg mine, the sequencing of mining areas with varying ore grades
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 1.1 billion pounds of copper and 1.25 million ounces
of gold for the year 2013, compared with 716 million pounds of copper and 915
thousand ounces of gold for the year 2012. FCX expects sales from Indonesia to
increase in the second half of 2013 as PT Freeport Indonesia gains access to
higher ore grades and achieves the targeted ramp up in production from the DOZ
underground mine to approximately 80,000 metric tons per day (57 percent of
Indonesia's projected copper sales and 63 percent of Indonesia's projected
gold sales are expected in the second half of 2013).

Indonesia's unit net cash costs (including gold and silver credits) of $1.34
per pound of copper in first-quarter 2013 were higher than unit net cash costs
of $0.33 per pound in first-quarter 2012 primarily reflecting lower gold
credits, partly offset by higher copper sales volumes.

FCX estimates Indonesia's average unit net cash costs (net of gold and silver
credits) would approximate $1.00 per pound of copper for the year 2013, based
on current sales volume and cost estimates and assuming an average gold price
of $1,400 per ounce for the remainder of 2013. Projected unit net cash costs
for 2013 are higher than previous estimates primarily because of lower gold
credits. Indonesia's projected unit net cash costs would change by
approximately $0.05 per pound for each $50 per ounce change in the average
price of gold for the remainder of 2013. Because of the fixed nature of a
large portion of Indonesia's costs, unit costs vary from quarter to quarter
depending on copper and gold sales volumes, as well as average realized gold
prices for the quarterly period. Indonesia's unit net cash costs are expected
to decline during the second half of the year as it gains access to higher
grade ore.

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. TFM has completed its second phase
expansion project, which included optimizing the current plant and increasing
mine, mill and processing capacity. The expanded mill is capable of throughput
of 14,000 metric tons of ore per day to enable increasing copper production by
150 million pounds to over 430 million pounds per year. Costs incurred to date
total approximately $615 million and included mill upgrades, additional mining
equipment and a new tankhouse. A second sulphuric acid plant, which was
included in the $850 million total estimated project capital cost, is expected
to be installed in 2015. The expanded mill facility is performing well, with
first-quarter 2013 average throughput rates of 14,600 metric tons per day.

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 first quarters of 2013 and 2012:

                                                     Three Months Ended
                                                      March 31,
                                                     2013      2012
Copper (millions of recoverable pounds)
Production                                            120        80
Sales                                                 118        69
Average realized price per pound^a                    $ 3.40     $ 3.74
                                                                 
Cobalt (millions of contained pounds)
Production                                            6          6
Sales                                                 6          5
Average realized price per pound                      $ 7.28     $ 8.46
                                                                 
Unit net cash costs per pound of copper^b:
Site production and delivery, excluding adjustments   $ 1.39     $ 1.50
Cobalt credits^c                                      (0.23  )   (0.33  )
Royalty on metals                                     0.07      0.08   
Unit net cash costs                                   $ 1.23    $ 1.25 

^a. Includes point-of-sale transportation costs as negotiated in customer
    contracts.
    For a reconciliation of unit net cash costs per pound to production and
    delivery costs applicable to sales reported in FCX's consolidated
^b. financial statements, refer to the supplemental schedule, "Product
    Revenues and Production Costs," beginning on page VI, which is available
    on FCX's website, "www.fcx.com."
^c. Net of cobalt downstream processing and freight costs.
    

Africa mining operations established new records in first-quarter 2013 for
mining, milling and copper sales. Copper sales from Africa of 118 million
pounds in first-quarter 2013 were higher than first-quarter 2012 copper sales
of 69 million pounds primarily reflecting higher mining and milling rates
principally related to the ramp up of the expansion project and higher ore
grades.

FCX expects Africa's sales to approximate 435 million pounds of copper and 28
million pounds of cobalt for the year 2013, compared with 336 million pounds
of copper and 25 million pounds of cobalt for the year 2012.

Africa's unit net cash costs (net of cobalt credits) of $1.23 per pound of
copper in first-quarter 2013 were slightly lower than unit net cash costs of
$1.25 per pound in first-quarter 2012, primarily reflecting the benefit of
higher sales volumes, partly offset by lower cobalt credits.

FCX estimates Africa's average unit net cash costs would approximate $1.18 per
pound of copper for the year 2013, based on current sales volume and cost
estimates and assuming an average cobalt price of $12 per pound for the
remainder of 2013. Africa's projected unit net cash costs would change by
approximately $0.065 per pound for each $2 per pound change in the average
price of cobalt for the remainder of 2013.

Freeport Cobalt. On March 29, 2013, through the newly formed and wholly
consolidated Freeport Cobalt joint venture, FCX acquired a large-scale cobalt
chemical refinery located in Kokkola, Finland, and the related sales and
marketing business. FCX is the operator of the joint venture with an effective
56 percent ownership interest. The remaining effective ownership interests are
held by FCX's partners in TFM, including 24 percent by Lundin Mining
Corporation and 20 percent by La Générale des Carrières et des Mines.

This acquisition enhances FCX's cobalt marketing position, product portfolio
and product development capabilities, and provides direct end-market access
for the cobalt hydroxide production from TFM.

Initial consideration paid was $355 million, including $34 million of acquired
cash. Under the terms of the agreement, there is the potential for additional
consideration of up to $110 million over a period of three years, contingent
upon the achievement of revenue-based performance targets. The acquisition was
funded 70 percent by FCX and 30 percent by Lundin, which amounts will be
repaid prior to any shareholder distributions.

Molybdenum Mines. FCX has two wholly owned molybdenum mines in North America –
the Henderson underground mine and the Climax open-pit mine, both in Colorado.
The Henderson and Climax mines produce high-purity, chemical-grade molybdenum
concentrates, which are typically further processed into value-added
molybdenum chemical products.

Operating Data. Following is summary consolidated operating data for the
molybdenum mines for the first quarters of 2013 and 2012:

                                                          Three Months Ended
                                                           March 31,
                                                          2013^a     2012^a
Molybdenum production (millions of recoverable pounds)^b   12          9
                                                                       
Unit net cash cost per pound of molybdenum^c               $  7.32     $ 6.88

    Reflects operating data for the Henderson and Climax mines for
^a. first-quarter 2013, and operating data only for the Henderson mine for
    first-quarter 2012.
    Refer to consolidated operating data on page 3 for FCX's consolidated
^b. molybdenum sales, which includes sales of molybdenum produced at the
    molybdenum mines, as well as from certain of the North and South America
    copper mines.
    For a reconciliation of unit net cash costs per pound to production and
    delivery costs applicable to sales reported in FCX's consolidated
^c. financial statements, refer to the supplemental schedule, "Product
    Revenues and Production Costs," beginning on page VI, which is available
    on FCX's website, "www.fcx.com."
    

The Climax molybdenum mine was commissioned in second-quarter 2012 and
includes a new 25,000 metric ton per day mill facility. Molybdenum production
from the Climax mine totaled 5 million pounds in first-quarter 2013 and is
targeted at 20 million pounds for the year 2013 (with potential to produce up
to approximately 30 million pounds per year, depending on market conditions).
FCX intends to operate the Climax and Henderson mines in a flexible manner to
meet market requirements.

Average unit net cash costs for FCX's molybdenum mines were $7.32 per pound of
molybdenum in first-quarter 2013, compared with $6.88 per pound in
first-quarter 2012, reflecting higher input costs at Henderson and the
addition of production from Climax.

Based on current sales volume and cost estimates, FCX expects unit net cash
costs for the molybdenum mines to average approximately $7.25 per pound of
molybdenum for the year 2013 (reflecting approximately $7.50 per pound for
Henderson and $6.90 per pound for Climax).

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 is expected to approximate $235 million for the year
2013, compared to $251 million in 2012. Exploration activities will continue
to focus primarily on the potential for future reserve additions in FCX's
existing minerals districts. Approximately one-third of the 2013 budget is
associated with global greenfield exploration projects.

CASH FLOWS

FCX generated operating cash flows of $831 million (net of $430 million in
working capital uses and changes in other tax payments) for first-quarter
2013. Excluding results from pending acquisitions, based on current sales
volume and cost estimates and assuming average prices of $3.25 per pound of
copper, $1,400 per ounce of gold and $11 per pound of molybdenum for the
remainder of 2013, FCX's consolidated operating cash flows are estimated to
approximate $5.5 billion (including $0.4 billion in net working capital
sources and changes in other tax payments) for the year 2013. The impact of
price changes during the remainder of 2013 on operating cash flows would
approximate $270 million for each $0.10 per pound change in the average price
of copper, $50 million for each $50 per ounce change in the average price of
gold and $80 million for each $2 per pound change in the average price of
molybdenum.

Capital expenditures totaled $805 million for first-quarter 2013. Excluding
amounts for pending acquisitions, capital expenditures are currently estimated
to approximate $4.4 billion for the year 2013 (including $2.6 billion for
major projects and $1.8 billion for sustaining capital). Major projects for
2013 primarily include the expansions at Cerro Verde and Morenci and
underground development activities at Grasberg. 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.

Other investing activities for first-quarter 2013 included $321 million (net
of cash acquired) for payments by the Freeport Cobalt joint venture to fund
the March 2013 acquisition of a cobalt chemical refinery.

CASH AND DEBT

Following is a summary of cash available to the parent company, net of
noncontrolling interests' share, taxes and other costs at March31, 2013 (in
billions):

                                             March 31,
                                             2013
Cash at domestic companies                   $  7.0    ^a
Cash at international operations             2.6     
Total consolidated cash and cash equivalents 9.6
Less: Noncontrolling interests' share        (0.9    )
Cash, net of noncontrolling interests' share 8.7
Less: Withholding taxes and other            (0.2    )
Net cash available                           $  8.5  

    Includes net proceeds from the March 2013 sale of $6.5 billion of senior
^a. notes that will be used to fund a portion of the pending acquisitions of
    PXP and MMR.
    

At March31, 2013, FCX had $10.1 billion in debt, including the March 2013
issuance of $6.5 billion of senior notes.

During first-quarter 2013, FCX sold $6.5 billion of senior notes in four
tranches and also entered into an agreement for a $4.0 billion bank term loan
(the Term Loan). No amounts are currently available to FCX under the Term
Loan, which will be funded at closing of the PXP and MMR acquisitions. The
weighted-average interest rate of these financings approximates 3.1 percent.
FCX expects to use the net proceeds from these financings to fund the pending
acquisitions of PXP and MMR, including for the payment of cash consideration
for the acquisitions and the repayment of certain indebtedness of PXP and MMR.
If the PXP acquisition is not completed, FCX will be required to redeem all
the outstanding 7-year, 10-year and 30-year notes (which total $5 billion) at
101 percent plus accrued and unpaid interest.

At March31, 2013, FCX had no borrowings and $43 million of letters of credit
issued under its revolving credit facility, resulting in availability of $1.5
billion. In February 2013, FCX entered into a new $3.0 billion senior
unsecured revolving credit facility, which will refinance and replace its
existing revolving credit facility upon completion of the pending acquisition
of PXP.

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 $297 million in first-quarter 2013. FCX's
current annual dividend rate for its common stock is $1.25 per share. On March
27, 2013, FCX's Board of Directors (the Board) declared a regular quarterly
dividend of $0.3125 per share, which will be paid on May 1, 2013. 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.

PENDING ACQUISITIONS OF PXP AND MMR

On December 5, 2012, FCX announced definitive agreements to acquire, in
separate transactions, PXP and MMR. PXP per-share consideration is equivalent
to 0.6531 shares of FCX common stock and $25 in cash. MMR per-share
consideration consists of $14.75 in cash and 1.15 units of a royalty trust,
which will hold a five percent overriding royalty interest in future
production of MMR's existing shallow water ultra-deep prospects. The combined
company would be a premier U.S.-based natural resource company with a growing
production profile and an industry leading global portfolio of mineral assets
and significant oil and gas resources. The addition of a high quality, North
America-focused oil and gas resource base is expected to provide strong
current cash flows and significant growth potential, enhanced geographic
diversification and complementary exposure to markets positioned for global
growth.

Completion of each transaction is subject to receipt of PXP and MMR
stockholder approval of their respective transaction. The PXP transaction is
not conditioned on the closing of the MMR transaction, and the MMR transaction
is not conditioned on the closing of the PXP transaction. The transactions are
expected to close in second-quarter 2013, subject to satisfaction of all
conditions to closing.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's first-quarter 2013
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,
May17, 2013.

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, one of the world's largest copper and gold deposits 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, reserve estimates, 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 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, risks associated with completion of the pending
acquisitions, 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, 2012, 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 FCX's 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 VI, which is also available
on FCX's website, "www.fcx.com."

ADDITIONAL INFORMATION ABOUT THE PENDING PXP AND MMR TRANSACTIONS AND WHERE TO
FIND IT

PXP Transaction. In connection with the pending transaction, FCX has filed
with the SEC a registration statement on Form S-4/A that includes a
preliminary proxy statement of PXP that also constitutes a prospectus of FCX.
FCX and PXP also plan to file other relevant documents with the SEC regarding
the pending transaction. INVESTORS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND
WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
You may obtain a free copy of the proxy statement/prospectus (if and when it
becomes available) and other relevant documents filed by FCX and PXP with the
SEC at the SEC's website at www.sec.gov. You may also obtain these documents
by contacting FCX's Investor Relations department at (602) 366-8400, or via
e-mail at IR@fmi.com; or by contacting PXP's Investor Relations department at
(713) 579-6291, or via email at investor@pxp.com.

FCX and PXP and their respective directors and executive officers and other
members of management and employees may be deemed to be participants in the
solicitation of proxies in respect of the pending transaction. Information
about FCX's directors and executive officers is available in FCX's proxy
statement dated April 27, 2012, for its 2012 Annual Meeting of Stockholders.
Information about PXP's directors and executive officers is available in PXP's
proxy statement dated April 13, 2012, for its 2012 Annual Meeting of
Stockholders. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the definitive proxy
statement/prospectus and other relevant materials to be filed with the SEC
regarding the merger when they become available. Investors should read the
definitive proxy statement/prospectus carefully when it becomes available. You
may obtain free copies of these documents from FCX or PXP using the sources
indicated above.

This document shall not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S. Securities Act
of 1933, as amended.

MMR Transaction. In connection with the pending transaction, FCX and the
royalty trust formed in connection with the transaction have filed with the
SEC a registration statement on Form S-4/A that includes a preliminary proxy
statement of MMR that also constitutes a prospectus of FCX and the royalty
trust. FCX, the royalty trust and MMR also plan to file other relevant
documents with the SEC regarding the pending transaction. INVESTORS ARE URGED
TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. You may obtain a free copy of the proxy statement/prospectus (if
and when it becomes available) and other relevant documents filed by FCX, the
royalty trust and MMR with the SEC at the SEC's website at www.sec.gov. You
may also obtain these documents by contacting FCX's Investor Relations
department at (602) 366-8400, or via e-mail at IR@fmi.com; or by contacting
MMR's Investor Relations department at (504) 582-4000, or via email at
IR@fmi.com.

FCX and MMR and their respective directors and executive officers and other
members of management and employees may be deemed to be participants in the
solicitation of proxies in respect of the pending transaction. Information
about FCX's directors and executive officers is available in FCX's proxy
statement dated April 27, 2012, for its 2012 Annual Meeting of Stockholders.
Information about MMR's directors and executive officers is available in MMR's
proxy statement dated April 27, 2012, for its 2012 Annual Meeting of
Stockholders. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the definitive proxy
statement/prospectus and other relevant materials to be filed with the SEC
regarding the merger when they become available. Investors should read the
definitive proxy statement/prospectus carefully when it becomes available. You
may obtain free copies of these documents from FCX or MMR using the sources
indicated above.

This document shall not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S. Securities Act
of 1933, as amended.

    FREEPORT-McMoRan COPPER & GOLD INC.
    SELECTED OPERATING DATA
                                                               
                              Three Months Ended March 31,
                              Production            Sales
    COPPER (millions of       2013        2012       2013            2012
    recoverable pounds)
    (FCX's net interest
    in %)
    North America
    Morenci (85%)^a           138         130        141             132
    Bagdad (100%)             49          48         51              49
    Safford (100%)            31          46         37              45
    Sierrita (100%)           44          43         43              44
    Miami (100%)              14          20         14              20
    Chino (100%)              43          29         43              27
    Tyrone (100%)             23          20         23              20
    Other (100%)              1          1         1              1
    Total North America       343        337       353            338
                                                                     
    South America
    Cerro Verde (53.56%)      122         139        119             136
    El Abra (51%)             90          82         79              79
    Candelaria/Ojos del       86         72        87             71
    Salado (80%)
    Total South America       298        293       285            286
                                                                     
    Indonesia
    Grasberg (90.64%)^b       219        123       198            134
                                                                     
    Africa
    Tenke Fungurume           120        80        118            69
    (56%)^c
                                                                     
    Consolidated              980        833       954            827
    Less noncontrolling       191        165       182            158
    interests
    Net                       789        668       772            669
                                                                     
    Consolidated sales                               954             827
    from mines
    Purchased copper                                 49             27
    Total copper sales,                              1,003          854
    including purchases
                                                                     
    Average realized                                 $  3.51         $  3.82
    price per pound
                                                                     
    GOLD (thousands of
    recoverable ounces)
    (FCX's net interest
    in %)
    North America (100%)      2           4          2               3
    South America (80%)       21          19         21              19
    Indonesia (90.64%)^b      212        229       191            266
    Consolidated              235        252       214            288
    Less noncontrolling       24         25        22             28
    interests
    Net                       211        227       192            260
                                                                     
    Consolidated sales                               214             288
    from mines
    Purchased gold                                   1              —
    Total gold sales,                                215            288
    including purchases
                                                                     
    Average realized                                 $  1,606        $  1,694
    price per ounce
                                                                     
    MOLYBDENUM (millions
    of recoverable
    pounds)
    (FCX's net interest
    in %)
    Henderson (100%)          7           9          N/A             N/A
    Climax (100%)             5           —          N/A             N/A
    North America copper      8           10         N/A             N/A
    mines (100%)^a
    Cerro Verde (53.56%)      2          2         N/A             N/A
    Consolidated              22         21        25             21
    Less noncontrolling       1          1         1              1
    interests
    Net                       21         20        24             20
                                                                     
    Consolidated sales                               25              21
    from mines
    Purchased molybdenum                             —              —
    Total molybdenum
    sales, including                                 25             21
    purchases
                                                                     
    Average realized                                 $  12.75        $  15.34
    price per pound
                                                                     
    COBALT (millions of
    contained pounds)
    (FCX's net interest
    in %)
    Consolidated - Tenke      6          6         6              5
    Fungurume (56%)^c
    Less noncontrolling       3          3         3              2
    interests
    Net                       3          3         3              3
                                                                     
    Average realized                                 $  7.28         $  8.46
    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)
                                                                  
                                                       Three Months Ended
                                                       March 31,
                                                       2013          2012
100% North America Copper Mines
Solution Extraction/Electrowinning (SX/EW)
Operations
Leach ore placed in stockpiles (metric tons per day)   1,000,100     1,032,900
Average copper ore grade (percent)                     0.22          0.23
Copper production (millions of recoverable pounds)     209           218
                                                                     
Mill Operations
Ore milled (metric tons per day)                       250,600       236,000
Average ore grades (percent):
Copper                                                 0.39          0.37
Molybdenum                                             0.03          0.03
Copper recovery rate (percent)                         84.3          80.0
Production (millions of recoverable pounds):
Copper                                                 158           142
Molybdenum                                             8             10
                                                                     
100% South America Mining
SX/EW Operations
Leach ore placed in stockpiles (metric tons per day)   262,800       196,300
Average copper ore grade (percent)                     0.50          0.55
Copper production (millions of recoverable pounds)     109           118
                                                                     
Mill Operations
Ore milled (metric tons per day)                       188,600       186,000
Average ore grades:
Copper (percent)                                       0.58          0.55
Gold (grams per metric ton)                            0.11          0.09
Molybdenum (percent)                                   0.02          0.02
Copper recovery rate (percent)                         90.8          89.2
Production (recoverable):
Copper (millions of pounds)                            189           175
Gold (thousands of ounces)                             21            19
Molybdenum (millions of pounds)                        2             2
                                                                     
100% Indonesia Mining
Ore milled (metric tons per day)^a
Grasberg open pit                                      137,400       80,500
DOZ underground mine                                   59,000        33,100
Big Gossan underground mine                            3,000        1,200
Total                                                  199,400      114,800
Average ore grades:
Copper (percent)                                       0.66          0.64
Gold (grams per metric ton)                            0.52          0.84
Recovery rates (percent):
Copper                                                 88.5          89.6
Gold                                                   71.8          82.1
Production (recoverable):
Copper (millions of pounds)                            219           123
Gold (thousands of ounces)                             212           229
                                                                     
100% Africa Mining
Ore milled (metric tons per day)                       14,600        12,200
Average ore grades (percent):
Copper                                                 4.44          3.61
Cobalt                                                 0.32          0.38
Copper recovery rate (percent)                         93.7          91.2
Production (millions of pounds):
Copper (recoverable)                                   120           80
Cobalt (contained)                                     6             6
                                                                     
100% Molybdenum Mines^b
Ore milled (metric tons per day)                       35,900        19,900
Average molybdenum ore grade (percent)                 0.20          0.25
Molybdenum production (millions of recoverable         12            9
pounds)

^a. Amounts represent the approximate average daily throughput processed at PT
    Freeport Indonesia's mill facilities from each producing mine.
    First-quarter 2013 reflects operating data for the Henderson and Climax
^b. mines; first-quarter 2012 reflects operating data only for the Henderson
    mine.
    

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                                     
                                       Three Months Ended
                                       March 31,
                                       2013                  2012
                                       (In Millions, Except Per Share Amounts)
Revenues                               $  4,583      ^a      $  4,605     ^a
Cost of sales:
Production and delivery                2,719                 2,428
Depreciation, depletion and            329                  267        
amortization
Total cost of sales                    3,048                 2,695
Selling, general and administrative    113           ^b      104
expenses
Exploration and research expenses      52                    62
Environmental obligations and          15                   10         
shutdown costs
Total costs and expenses               3,228                2,871      
Operating income                       1,355                 1,734
Interest expense, net                  (57        )  ^c      (63        ) ^c
Losses on early extinguishment of      (45        )          (168       )
debt
Other expense, net                     (3         )          (13        )
Income before income taxes and
equity in affiliated
companies' net earnings                1,250                 1,490
Provision for income taxes             (428       )          (491       )
Equity in affiliated companies' net    2                    2          
earnings
Net income                             824                   1,001
Net income attributable to             (176       )          (237       )
noncontrolling interests
Net income attributable to FCX         $  648       ^a,b,d  $  764      ^a,d
common stock
                                                                          
Net income per share attributable to
FCX common stock:
Basic                                  $  0.68              $  0.81    
Diluted                                $  0.68              $  0.80    
                                                                          
Weighted-average common shares
outstanding:
Basic                                  950                  949        
Diluted                                953                  955        
                                                                          
Dividends declared per share of        $  0.3125            $  0.3125  
common stock

    Includes (unfavorable) favorable adjustments to provisionally priced
    copper sales recognized in the prior periods totaling $(11) million ($(5)
    million to net income attributable to common stock) in first-quarter 2013
^a. and $109 million ($47 million to net income attributable to common stock)
    in first-quarter 2012. For further discussion of adjustments to
    provisionally priced sales refer to the supplemental schedule,
    "Provisional Pricing" on page XVI.
    Includes charges of $14 million ($10 million to net income attributable to
^b. common stock) for costs associated with the pending acquisitions of PXP
    and MMR and for the March 2013 cobalt chemical refinery acquisition.
    Consolidated interest expense, excluding capitalized interest, totaled $75
    million in first-quarter 2013 and $99 million in first-quarter 2012. Lower
^c. interest expense in first-quarter 2013 primarily reflected the impact of
    the February 2012 refinancing transaction, partly offset by $17 million of
    additional interest expense in first-quarter 2013 related to the March
    2013 sale of $6.5 billion of senior notes.
    FCX defers recognizing profits on intercompany sales until final sales to
    third parties occur. Changes in these deferrals attributable to
^d. variability in intercompany volumes resulted in net additions (reductions)
    to net income attributable to common stock of $25 million in first-quarter
    2013 and $(32) million in first-quarter 2012. For further discussion refer
    to the supplemental schedule, "Deferred Profits" on page XVII.
    

FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
                                                  
                                                    March 31,     December 31,
                                                    2013          2012
                                                    (In Millions)
ASSETS
Current assets:
Cash and cash equivalents                           $ 9,595    ^a $  3,705
Trade accounts receivable                           1,082         927
Other accounts receivable                           687           702
Inventories:
Mill and leach stockpiles                           1,698         1,672
Materials and supplies, net                         1,575         1,504
Product                                             1,536         1,400
Other current assets                                410          387        
Total current assets                                16,583        10,297
Property, plant, equipment and development costs,   21,689        20,999
net
Long-term mill and leach stockpiles                 2,081         1,955
Other assets                                        2,235        2,189      
Total assets                                        $ 42,588     $  35,440  
                                                                  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities            $ 2,892       $  3,007
Current portion of reclamation and environmental    254           241
obligations
Accrued income taxes                                125           93
Current portion of debt                             4            2          
Total current liabilities                           3,275         3,343
Long-term debt, less current portion                10,088     ^a 3,525
Deferred income taxes                               3,580         3,490
Reclamation and environmental obligations, less     2,130         2,127
current portion
Other liabilities                                   1,666        1,644      
Total liabilities                                   20,739        14,129
Equity:
FCX stockholders' equity:
Common stock                                        107           107
Capital in excess of par value                      19,163        19,119
Retained earnings                                   2,750         2,399
Accumulated other comprehensive loss                (500     )    (506       )
Common stock held in treasury                       (3,580   )    (3,576     )
Total FCX stockholders' equity                      17,940        17,543
Noncontrolling interests                            3,909        3,768      
Total equity                                        21,849       21,311     
Total liabilities and equity                        $ 42,588     $  35,440  

    Includes net proceeds from the March 2013 sale of $6.5 billion of senior
^a. notes that will be used to fund a portion of the pending acquisitions of
    PXP and MMR.
    

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                                       
                                                         Three Months Ended
                                                         March 31,
                                                         2013       2012
                                                         (In Millions)
Cash flow from operating activities:
Net income                                               $ 824       $ 1,001
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization                 329         267
Stock-based compensation                                 41          32
Pension plan contributions                               (22     )   (52     )
Net charges for reclamation and environmental            34          35
obligations, including accretion
Payments of reclamation and environmental obligations    (36     )   (45     )
Losses on early extinguishment of debt                   45          168
Deferred income taxes                                    136         168
Increase in long-term mill and leach stockpiles          (126    )   (61     )
Other, net                                               36          8
Decreases (increases) in working capital and other tax
payments:
Accounts receivable                                      (113    )   (482    )
Inventories                                              (67     )   (248    )
Other current assets                                     (48     )   40
Accounts payable and accrued liabilities                 (201    )   (64     )
Accrued income taxes and other tax payments              (1      )   34      
Net cash provided by operating activities                831        801     
                                                                     
Cash flow from investing activities:
Capital expenditures:
North America copper mines                               (258    )   (143    )
South America                                            (226    )   (152    )
Indonesia                                                (191    )   (182    )
Africa                                                   (57     )   (127    )
Molybdenum mines                                         (40     )   (93     )
Other                                                    (33     )   (10     )
Acquisition of cobalt chemical business, net of cash     (321    )   —
acquired
Other, net                                               14         (7      )
Net cash used in investing activities                    (1,112  )   (714    )
                                                                     
Cash flow from financing activities:
Proceeds from debt                                       6,615       3,004
Repayments of debt                                       (39     )   (3,159  )
Cash dividends paid:
Common stock                                             (297    )   (238    )
Noncontrolling interests                                 (35     )   (1      )
Excess tax benefit from stock-based awards               1           7
Other, net                                               (74     )   (26     )
Net cash provided by (used in) financing activities      6,171      (413    )
                                                                     
Net increase (decrease) in cash and cash equivalents     5,890       (326    )
Cash and cash equivalents at beginning of year           3,705      4,822   
Cash and cash equivalents at end of period               $ 9,595    $ 4,496 

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
 
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