Deutsche bank credit final sep16

September 28, 2016

Kathleen L. Quirk

Executive Vice President & CFO

Deutsche Bank 24th Annual

Leveraged Finance Conference

2

Cautionary Statement

Regarding Forward-Looking Statements

This presentation 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 projections or expectations relating to ore grades and milling rates, production and sales volumes, unit net cash costs, cash production costs per barrel of oil equivalents (BOE), operating cash flows, capital expenditures, debt reduction initiatives, including FCX’s ability to complete pending asset sales and to sell additional assets, exploration efforts and results, development and production activities and costs, liquidity, tax rates, the impact of copper, gold, molybdenum, cobalt, crude oil and natural gas price changes, the impact of deferred intercompany profits on earnings, reserve estimates, future dividend payments, and share purchases and sales. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be,” ”potential" and any similar expressions are intended to identify those assertions as forward-looking statements. Under its Term Loan and Revolving Credit Facility, as amended, FCX is not permitted to pay dividends on common stock on or prior to March 31, 2017. The declaration of dividends is at the discretion of the Board, subject to restrictions under FCX’s credit agreements, 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 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 supply of and demand for, and prices of, copper, gold, molybdenum, cobalt, crude oil and natural gas, mine sequencing, production rates, drilling results, potential effects of cost and capital expenditure reductions and production curtailments on financial results and cash flow, the outcome of FCX’s debt reduction initiatives, FCX’s ability to secure regulatory approvals, satisfy closing conditions and consummate pending asset sales, potential additional oil and gas property impairment charges, potential inventory adjustments, potential impairment of long-lived mining assets, the outcome of ongoing discussions with the Indonesian government regarding PT Freeport Indonesia’s (PT-FI) Contract of Work, PT-FI’s ability to obtain renewal of its export license after August 8, 2016, the potential effects of violence in Indonesia generally and in the province of Papua, the resolution of administrative disputes in the Democratic Republic of Congo, industry risks, regulatory changes, political risks, labor relations, weather- and climate-related risks, environmental risks, litigation results 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 December 31, 2015, 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 upon which FCX's forward-looking statements are based are likely to change after the 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 not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes, and FCX undertakes no obligation to update any forward-looking statements.

This presentation also includes forward-looking statements regarding mineralized material and potential resources not included in proven and probable mineral reserves. The mineralized material and potential resources described in this presentation will not qualify as reserves until comprehensive engineering studies establish their economic feasibility. Accordingly, no assurance can be given that the estimated mineralized material and potential resources not included in reserves will become proven and probable reserves.

This presentation also contains certain financial measures such as unit net cash costs per pound of copper and molybdenum, oil and gas realized revenues, cash production costs, cash operating margin and Adjusted EBITDA, which are not recognized under generally accepted accounting principles in the U.S. As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX's consolidated financial statements are in the supplemental schedules of FCX’s 2Q 2016 press release, which are available on FCX’s website, “fcx.com.”

3

World-Class Copper PortfolioA Store of Long-term Value in High Quality Asset Base

NOTE: North America amounts include Cu operations: Morenci (72%), Sierrita, Bagdad, Tyrone, Safford, Miami and Chino; Primary Mo: Henderson and Climax; South America amounts include Cu operations: Cerro Verde and El Abra. Sales amounts based on 2016e. Implied life for Americas equals reserves plus mineralized material divided by 2016e sales; Implied life for Indonesia through 2041 CoW. Unit Cost estimates assume average prices of $2.25/lb for copper, $1,300/oz for gold, $6.00/lb for molybdenum and $11/lb for cobalt for the remainder of 2016. e = estimate. See Cautionary Statement.

Cu Reserves: 32 bn lbs

Mo Reserves: 2.4 bn lbs

Mineralized Mat.: 46 bn lbs

Implied Life: 37 yrs

Copper Sales: 1.83 bn lbs

Molybdenum Sales: 76 mm lbs

2016e Unit Cost: $1.42/lb


Au Reserves: 27 mm ozs




Gold Sales: 1.7 mm ozs



Mo Reserves: 0.7 bn lbs





World’s Leading Copper Producers

4

0

500

1,000

1,500

2,000

FCX Codelco Glencore BHP SouthernCopper

KGHM Rio Tinto FirstQuantum

Antofagasta AngloAmerican

(000 t)

Top 10 Copper Producers (2016)

Source: Wood Mackenzie September 26, 2016. Rankings based on net equity ownership.

5

2016e Copper Production

World Class Copper Discoveries Are Extremely Rare

Recoverable Copper Reserves

Million metric tons Thousand metric tons

Source: Wood Mackenzie 3Q16 e=estimate

0 200 400 600 800 1000 1200

Escondida - 1981

Grasberg Complex - 1988

Cerro Verde - 1860s

Morenci - 1870s

Collahuasi - 1880

Buenavista - 1926

El Teniente - 1910

Antamina - 1873

Chuquicamata - 1910

Los Pelambres - 1996

0 5 10 15 20 25 30 35

Escondida - 1981

Collahuasi - 1880

Grasberg Complex - 1988

Buenavista - 1899

Andina - 1865

KGHM Polish Copper - 1957

Toquepala - 1800s

Cerro Verde - 1860s

El Teniente - 1910

Oyu Tolgoi - 2001

1981

1880

1988

1899

1865

1957

1860s

1910

2001

1981

1988

1860s

1880

1910

1926

1910

1800s

1873

1996

1870s

Copper Markets – Supply Constraints Support Positive Long-Term Outlook

6Source: WoodMackenzie 2Q 2016 long-term outlook.

~4 mm Tonnes (19%) Decline

in Base Mine Supply Over Next

10 Years

Currently Top 10 Mines in

World Produce ~5.5 mm

Tonnes per Annum

Incentive Price for New Supply

is $3.30/lb

New Mines Can Take 7-10+

Years to Build

kt

4,000

10,000

16,000

22,000

Existing Supply Before Disruption Allowance

7

High Quality Copper ResourcesLong-Lived Mining Districts

1988 2015

7

56+

Note: Aggregate resources & production* Estimate of consolidated contained copper mineralized material using a long-term copper price of $2.20/lb. Mineralized Material is not included in reserves and will not qualify as

reserves until comprehensive engineering studies establish their economic feasibility. Accordingly, no assurance can be given that the estimated mineralized materialwill become proven and probable reserves. See Cautionary Statement.

** Our estimates of potential are based on geologically reasonable interpolation and extrapolation of more limited information than is used for Mineralized Material (measured and indicated)and requires higher Cu prices. Significant additional drilling is required and no assurance can be given that the potential quantities of metal will be produced.

Reserves(recoverable)

1989-2015Production(recoverable)

Min. Mat’l*(contained)

Potentialbeyond MM**

(contained)

1993 2015

9

~62

1994-2015

1987 2015

3

107

1988-2015

MorenciDiscovered: 1870s

Cerro VerdeDiscovered: 1860s Discovered: 1988

Grasberg

copper in billion lbs

• Bagdad

• Chino

• El Abra

• Lone Star/Safford

• Morenci

• Sierrita

Large Development Project Inventory

8

N

+0.3% Cu

Reserve Pit

1 km

% Copper>=0.00%

>=0.10%>=0.20%>=0.30%>=0.40%>=0.60%>=0.80%>=1.00%

N

+0.3%Cu Shell

Reserve Pit

1 km

% Copper>=0.00%

>=0.20%

>=0.30%

>=0.40%

>=0.50%

>=0.60%

Copper Sulfide Opportunities

Future development subject to market conditions

9

Effective Cost & Capital Management

$1.43

$1.85

$/lb

Declining Site Production & Delivery Unit Costs for Copper

$441

$855

2Q15 2Q16

$ in mms

Declining Mining CAPEX

-23% Decline-48% Decline

2Q15 2Q16

Net Unit Cash Costs

(after by-product)

$1.50

$1.33

10

Strong Free Cash Flow in Mining Businesswith Significant Leverage to Recovery

NOTE: EBITDA equals operating income plus depreciation, depletion and amortization costs. Assumes average prices of $1,300/oz gold, $6.00/lb molybdenum for 2016; each $100/oz change in gold would have an approximate $125 mm impact, each $2/lb change in molybdenum would have an approximate $45 mm impact.

(1) Includes $0.7 bn for major projects.(2) Assumed noted copper price for 2H16e.e = estimate. See Cautionary Statement.

2015

EBITDA CAPEX

2016e EBITDA

$4.5

$3.3 $3.3

($ in billions)

CAPEX

$5.3

Each 10¢ Change in Copper: $325 mm Impact on 2016e EBITDA

Other$0.9

MajorProjects

$2.4

CAPEX

$0.4

$1.3

$1.7

$6.1

@ $2.00Copper

@ $2.25Copper

@ $2.50Copper

Avg. Cu:$2.42

EBITDA CAPEX

Avg. Cu:$2.16

$1.6$0.9

1H162016e

(1)

(2) (2) (2)

(2)

11

2016 Announced Transactions

Closed in 1H16

$1.0

$0.3

2H16e

$2.65

$2.0

$0.1

$1.3

$4.75

*

DW GOM

Tenke

13% Morenci

* Before redemption of non-controlling preferred interests for $582 mme = estimate. See Cautionary Statement

Other

Other

($ in billions)

Clear Path to Achieve Debt Reduction Objectives

* Preferred shareholders in FM O&G’s consolidated subsidiary, Plains Offshore Operations Inc., are entitled to receive $582 mm

** Payments would be received over time as Anadarko realizes future cash flows in connection with FM O&G’s recently completed third-party production handling agreement for the Marlin platform. 12

Announced Purchase & Sale

Agreement on September 12, 2016

Anadarko to Acquire FM O&G’s

Interest in Deepwater GOM

$2 Billion Cash to FCX*

− Plus Contingent Payments of Up to $150 mm**

− Anadarko to Assume Abandonment Obligations ($0.5 Bn Book Value at 6/30/16)

Effective August 1, 2016

Expected to Close in 4Q16

Use of Proceeds: Repay Debt

Sale of Deepwater GOM Interests

Stats for 12-month Period Ended 6/30/16

73 MBOE of Daily Sales Volumes

$1 Bn in Revenue

$0.3 Bn in Cash Production Costs Before G&A

$1.6 Bn in CAPEX

Walker Ridge

Atwater Valley

Viosca Knoll

Facilities

Development

Discovery

FM O&G Leases

Alaminos Canyon

Garden Banks

Louisiana

Hoover

Marlin

East Breaks

Green Canyon

Keathley Canyon

Power Nap

Mississippi

Canyon

Holstein Deep

Holstein

Heidelberg

Horn Mountain King

Vito

HornMountain

Lucius

KO/QV

Dorado

Simplifies FCX’s Business and Reduces Its Capital Intensity

$0

$2

$4

$6

$8

$10

2016 2017 2018 2019 2020 2021 2022 2023 Thereafter

FCX Debt Maturities as of 6/30/16Pro Forma for Asset Sale Transactions*

$0

$2.5

$1.3

(US$ billions)

$0.9

$3.9

FCX

4.55%,

5.40%,

& 5.45%

Sr. Notes

and

FMC

Sr. Notes

$1.5$1.9

$2.4

CV Non-Recourse FM O&G6.125% Sr. Notes

FM O&G6.625%Sr. Notes

FM O&G 6.5%Sr. Notes

FM O&G6.75%

Sr. Notes

* For purposes of this schedule, maturities of uncommitted lines of credit and other short term lines are included in FCX's revolver balance, which matures in 2019.** Reflects ~$100 mm in debt-for-equity transactions that settled in July 2016.Note: 2016-2020 term loan maturities have been reduced by $12 mm in 2016, $63 mm in 2017, $689 mm in 2018, $313 mm in 2019 and $957 mm in 2020 to

reflect application of 50% of the net proceeds from the Tenke and Deepwater GOM transactions.

* *

Term Loan Term Loan

Uncommitted & CV Non-Recourse

13

FM O&G6.875%Sr. Notes

$2.8

FCX 3.875% Sr. Notes

FCX 3.55%

Sr. NotesFCX 4% Sr. Notes

FCX 3.1%

Sr. Notes

FCX 2.375%Sr. Notes

FCX2.15% & 2.30%

Sr. Notes

CV Non-Recourse

PF Total Debt & Cash at 6/30/16

FCX Revolver & Term Loan $ 2.4 $ 0.4

FCX & FMC Sr. Notes 12.0 11.9**

FM O&G Senior Notes 2.5 2.5

Other 2.4 2.4

Total Debt $19.3 $17.2

Consolidated Cash $ 0.4 $ 2.4

Excludes Potential ATM Proceeds

Pro Forma forTenke/DW GOM

Actual Transactions

(US$ billions)

Cost, Capital & Production

Performance

Securing Long-term Rights in

Indonesia

Debt ReductionBuilding Long-Term Value in

Mining Business

Safety & Environmental Management

14

Focused on Execution

Strong Track Record

Deutsche bank credit final sep16

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