UNITED
STATES
|
|||
SECURITIES
AND EXCHANGE COMMISSION
|
|||
Washington,
D.C. 20549
|
|||
FORM
10-Q
|
|||
(Mark
One)
|
|||
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
|
||
SECURITIES
EXCHANGE ACT OF 1934
|
|||
For
the quarterly period ended June 30, 2005
|
|||
OR
|
|||
[
]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
||
SECURITIES
EXCHANGE ACT OF 1934
|
|||
For
the transition period from
|
to
|
||
Commission
File Number: 1-9916
|
|||
Freeport-McMoRan
Copper & Gold Inc.
|
|||
(Exact
name of registrant as specified in its
charter)
|
Delaware
|
74-2480931
|
(State
or other jurisdiction of
incorporation
or organization)
|
(IRS
Employer Identification No.)
|
1615
Poydras Street
|
|
New
Orleans, Louisiana
|
70112
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(504)
582-4000
|
|
(Registrant's
telephone number, including area code)
|
|
Page
|
|
3
|
|
3
|
|
4
|
|
5
|
|
6
|
|
11
|
|
12
|
|
13
|
|
36
|
|
36
|
|
36
|
|
36
|
|
37
|
|
37
|
|
37
|
|
38
|
|
E-1
|
|
June
30,
|
December
31,
|
|||||||
2005
|
2004
|
|||||||
(In
Thousands)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
585,434
|
$
|
551,450
|
||||
Restricted
cash
|
500
|
500
|
||||||
Accounts
receivable
|
302,184
|
435,062
|
||||||
Inventories
|
435,248
|
466,712
|
||||||
Prepaid
expenses and other
|
9,975
|
6,223
|
||||||
Total
current assets
|
1,333,341
|
1,459,947
|
||||||
Property,
plant, equipment and development costs, net
|
3,146,065
|
3,199,292
|
||||||
Deferred
mining costs
|
273,225
|
220,415
|
||||||
Other
assets
|
152,697
|
159,539
|
||||||
Investment
in PT Smelting
|
52,936
|
47,802
|
||||||
Total
assets
|
$
|
4,958,264
|
$
|
5,086,995
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued liabilities
|
$
|
346,862
|
$
|
386,590
|
||||
Current
portion of long-term debt and short-term borrowings
|
193,706
|
78,214
|
||||||
Accrued
income taxes
|
110,165
|
92,346
|
||||||
Rio
Tinto share of joint venture cash flows
|
59,890
|
60,224
|
||||||
Unearned
customer receipts
|
52,981
|
33,021
|
||||||
Accrued
interest payable
|
46,981
|
47,167
|
||||||
Total
current liabilities
|
810,585
|
697,562
|
||||||
Long-term
debt, less current portion:
|
||||||||
Senior
notes
|
900,386
|
911,336
|
||||||
Convertible
senior notes
|
575,000
|
575,000
|
||||||
Equipment
and other loans
|
61,303
|
67,624
|
||||||
Atlantic
Copper debt
|
39,210
|
4,426
|
||||||
Redeemable
preferred stock
|
12,501
|
179,880
|
||||||
PT
Puncakjaya Power bank debt
|
-
|
135,426
|
||||||
Total
long-term debt, less current portion
|
1,588,400
|
1,873,692
|
||||||
Accrued
postretirement benefits and other liabilities
|
203,949
|
200,228
|
||||||
Deferred
income taxes
|
938,210
|
932,416
|
||||||
Minority
interests
|
196,134
|
219,448
|
||||||
Stockholders'
equity:
|
||||||||
Convertible
perpetual preferred stock
|
1,100,000
|
1,100,000
|
||||||
Class
B common stock
|
28,621
|
28,496
|
||||||
Capital
in excess of par value of common stock
|
1,886,486
|
1,852,816
|
||||||
Retained
earnings
|
730,528
|
604,680
|
||||||
Accumulated
other comprehensive income
|
9,588
|
11,342
|
||||||
Common
stock held in treasury
|
(2,534,237
|
)
|
(2,433,685
|
)
|
||||
Total
stockholders’ equity
|
1,220,986
|
1,163,649
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
4,958,264
|
$
|
5,086,995
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
June
30,
|
June
30,
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||
(In
Thousands, Except Per Share Amounts)
|
||||||||||||
Revenues
|
$
|
902,909
|
$
|
486,334
|
$
|
1,705,974
|
$
|
846,519
|
||||
Cost
of sales:
|
||||||||||||
Production
and delivery
|
390,586
|
371,679
|
755,592
|
647,291
|
||||||||
Depreciation
and amortization
|
54,159
|
42,590
|
111,085
|
68,000
|
||||||||
Total
cost of sales
|
444,745
|
414,269
|
866,677
|
715,291
|
||||||||
Exploration
expenses
|
2,342
|
2,787
|
4,262
|
5,014
|
||||||||
General
and administrative expenses
|
25,379
|
22,576
|
46,993
|
38,136
|
||||||||
Total
costs and expenses
|
472,466
|
439,632
|
917,932
|
758,441
|
||||||||
Operating
income
|
430,443
|
46,702
|
788,042
|
88,078
|
||||||||
Equity
in PT Smelting earnings (losses)
|
2,562
|
(2,548
|
)
|
5,158
|
(2,906
|
)
|
||||||
Interest
expense, net
|
(35,292
|
)
|
(39,339
|
)
|
(72,840
|
)
|
(72,729
|
)
|
||||
Gains
(losses) on early extinguishment and
|
||||||||||||
conversion
of debt
|
-
|
643
|
37
|
(14,000
|
)
|
|||||||
Other
income (expense), net
|
8,143
|
(368
|
)
|
16,095
|
3,174
|
|||||||
Income
before income taxes and minority
|
||||||||||||
interests
|
405,856
|
5,090
|
736,492
|
1,617
|
||||||||
Provision
for income taxes
|
(188,684
|
)
|
(38,210
|
)
|
(352,712
|
)
|
(56,551
|
)
|
||||
Minority
interests in net income of
|
||||||||||||
consolidated
subsidiaries
|
(26,800
|
)
|
(5,118
|
)
|
(47,888
|
)
|
(2,687
|
)
|
||||
Net
income (loss)
|
190,372
|
(38,238
|
)
|
335,892
|
(57,621
|
)
|
||||||
Preferred
dividends
|
(15,125
|
)
|
(15,073
|
)
|
(30,250
|
)
|
(15,241
|
)
|
||||
Net
income (loss) applicable to common stock
|
$
|
175,247
|
$
|
(53,311
|
)
|
$
|
305,642
|
$
|
(72,862
|
)
|
||
Net
income (loss) per share of common stock:
|
||||||||||||
Basic
|
$0.98
|
$(0.30
|
)
|
$1.71
|
$(0.39
|
)
|
||||||
Diluted
|
$0.91
|
$(0.30
|
)
|
$1.62
|
$(0.39
|
)
|
||||||
Average
common shares outstanding:
|
||||||||||||
Basic
|
178,324
|
175,202
|
178,822
|
186,570
|
||||||||
Diluted
|
219,990
|
175,202
|
220,516
|
186,570
|
||||||||
Dividends
paid per share of common stock
|
$0.25
|
$0.20
|
$1.00
|
$0.40
|
Six
Months Ended June 30,
|
||||||||
2005
|
2004
|
|||||||
(In
Thousands)
|
||||||||
Cash
flow from operating activities:
|
||||||||
Net
income (loss)
|
$
|
335,892
|
$
|
(57,621
|
)
|
|||
Adjustments
to reconcile net income (loss) to net cash provided by
|
||||||||
(used
in) operating activities:
|
||||||||
Depreciation
and amortization
|
111,085
|
68,000
|
||||||
(Gains)
losses on early extinguishment and conversion of debt
|
(37
|
)
|
14,000
|
|||||
Deferred
income taxes
|
5,327
|
69,564
|
||||||
Equity
in PT Smelting (earnings) losses
|
(5,158
|
)
|
2,906
|
|||||
Minority
interests' share of net income
|
47,888
|
2,687
|
||||||
Increase
in deferred mining costs
|
(52,810
|
)
|
(57,707
|
)
|
||||
Amortization
of deferred financing costs
|
4,010
|
4,460
|
||||||
Currency
translation gains
|
(6,252
|
)
|
(1,847
|
)
|
||||
Elimination
of profit on PT Freeport Indonesia sales to
|
||||||||
PT
Smelting
|
25
|
1,956
|
||||||
Provision
for inventory obsolescence
|
3,000
|
4,025
|
||||||
Other
|
14,937
|
5,986
|
||||||
(Increases)
decreases in working capital:
|
||||||||
Accounts
receivable
|
123,278
|
(47,949
|
)
|
|||||
Inventories
|
25,155
|
(33,007
|
)
|
|||||
Prepaid
expenses and other
|
(2,406
|
)
|
(63,766
|
)
|
||||
Accounts
payable and accrued liabilities
|
(8,100
|
)
|
(28,286
|
)
|
||||
Rio
Tinto share of joint venture cash flows
|
(334
|
)
|
(30,484
|
)
|
||||
Accrued
income taxes
|
25,011
|
(41,868
|
)
|
|||||
(Increase)
decrease in working capital
|
162,604
|
(245,360
|
)
|
|||||
Net
cash provided by (used in) operating activities
|
620,511
|
(188,951
|
)
|
|||||
Cash
flow from investing activities:
|
||||||||
PT
Freeport Indonesia capital expenditures
|
(53,428
|
)
|
(59,583
|
)
|
||||
Atlantic
Copper capital expenditures
|
(5,863
|
)
|
(15,257
|
)
|
||||
Proceeds
from insurance settlement
|
2,016
|
-
|
||||||
Investment
in PT Smelting and other
|
131
|
(1,219
|
)
|
|||||
Sale
of restricted investments
|
-
|
19,346
|
||||||
Decrease
in Atlantic Copper restricted cash
|
-
|
11,000
|
||||||
Net
cash used in investing activities
|
(57,144
|
)
|
(45,713
|
)
|
||||
Cash
flow from financing activities:
|
||||||||
Net
proceeds from sale of senior notes
|
-
|
344,354
|
||||||
Proceeds
from other debt
|
65,647
|
57,708
|
||||||
Repayments
of debt
|
(235,249
|
)
|
(337,184
|
)
|
||||
Redemption
of preferred stock
|
(215
|
)
|
(1,110
|
)
|
||||
Net
proceeds from sale of convertible perpetual preferred
stock
|
-
|
1,067,000
|
||||||
Purchase
of FCX common shares from Rio Tinto
|
-
|
(881,868
|
)
|
|||||
Purchases
of FCX common shares
|
(80,227
|
)
|
(99,477
|
)
|
||||
Cash
dividends paid:
|
||||||||
Common
stock
|
(179,658
|
)
|
(74,655
|
)
|
||||
Preferred
stock
|
(30,251
|
)
|
(5,219
|
)
|
||||
Minority
interests
|
(71,425
|
)
|
(929
|
)
|
||||
Net
proceeds from exercised stock options
|
2,016
|
4,030
|
||||||
Bank
credit facilities fees and other
|
(21
|
)
|
(1,886
|
)
|
||||
Net
cash (used in) provided by financing activities
|
(529,383
|
)
|
70,764
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
33,984
|
(163,900
|
)
|
|||||
Cash
and cash equivalents at beginning of year
|
551,450
|
463,652
|
||||||
Cash
and cash equivalents at end of period
|
$
|
585,434
|
$
|
299,752
|
1. |
NEW
ACCOUNTING STANDARDS
|
2. |
EARNINGS
PER SHARE
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
June
30,
|
June
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Net
income (loss) before preferred dividends
|
$
|
190,372
|
$
|
(38,238
|
)
|
$
|
335,892
|
$
|
(57,621
|
)
|
|||
Preferred
dividends
|
(15,125
|
)
|
(15,073
|
)
|
(30,250
|
)
|
(15,241
|
)
|
|||||
Net
income (loss) applicable to common stock
|
175,247
|
(53,311
|
)
|
305,642
|
(72,862
|
)
|
|||||||
Plus
income impact of assumed conversion of:
|
|||||||||||||
5½%
Convertible Perpetual Preferred Stock
|
15,125
|
-
|
30,250
|
-
|
|||||||||
7%
Convertible Senior Notes
|
10,287
|
-
|
20,609
|
-
|
|||||||||
Diluted
net income (loss) applicable to common stock
|
$
|
200,659
|
$
|
(53,311
|
)
|
$
|
356,501
|
$
|
(72,862
|
)
|
|||
Weighted
average common shares outstanding
|
178,324
|
175,202
|
178,822
|
186,570
|
|||||||||
Add:
Shares
issuable upon conversion of:
|
|||||||||||||
5½%
Convertible Perpetual Preferred Stock
|
21,152
|
-
|
21,034
|
-
|
|||||||||
7%
Convertible Senior Notes
|
18,625
|
-
|
18,625
|
-
|
|||||||||
Dilutive
stock options
|
1,408
|
-
|
1,555
|
-
|
|||||||||
Restricted
stock
|
481
|
-
|
480
|
-
|
|||||||||
Weighted
average common shares outstanding for
|
|||||||||||||
purposes
of calculating diluted net income (loss)
|
|||||||||||||
per
share
|
219,990
|
175,202
|
220,516
|
186,570
|
|||||||||
Diluted
net income (loss) per share of common stock
|
$
|
0.91
|
$
|
(0.30
|
)
|
$
|
1.62
|
$
|
(0.39
|
)
|
|||
Three
Months Ended
|
Six
Months Ended
|
|||||||
June
30,
|
June
30,
|
|||||||
2005
|
2004
|
2005
|
2004
|
|||||
Weighted
average outstanding options
|
5,463
|
2,346
|
2,732
|
-
|
||||
Weighted
average exercise price
|
$36.98
|
$36.13
|
$36.98
|
-
|
||||
Dividends
on 5½% Convertible Perpetual Preferred Stock
|
-
|
$15,125
|
-
|
$15,293
|
a
|
|||
Weighted
average shares issuable upon conversion
|
-
|
20,682
|
-
|
10,563
|
a
|
|||
Interest
on 7% Convertible Senior Notes
|
-
|
$10,357
|
b
|
-
|
$20,715
|
b
|
||
Weighted
average shares issuable upon conversion
|
-
|
18,625
|
-
|
18,625
|
||||
Interest
on 8¼% Convertible Senior Notes
|
N/A
|
$1,399
|
b
|
N/A
|
$3,363
|
b
|
||
Weighted
average shares issuable upon conversion
|
N/A
|
4,653
|
N/A
|
5,464
|
||||
a. |
FCX’s
5½% Convertible Perpetual Preferred Stock was issued on March 30,
2004.
|
b. |
Amounts
are net of the effective United States federal alternative minimum
tax
rate of two percent.
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
June
30,
|
June
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Net
income (loss) applicable to common stock, as reported
|
$
|
175,247
|
$
|
(53,311
|
)
|
$
|
305,642
|
$
|
(72,862
|
)
|
|||
Add:
Stock-based employee compensation expense
|
|||||||||||||
included
in reported net income (loss) for stock option
|
|||||||||||||
conversions,
stock appreciation rights (SARs) and
|
|||||||||||||
restricted
stock units, net of taxes and minority interests
|
1,898
|
(16
|
)
|
4,457
|
374
|
||||||||
Deduct:
Total stock-based employee compensation
|
|||||||||||||
expense
determined under fair value-based method for
|
|||||||||||||
all
awards, net of taxes and minority interests
|
(5,339
|
)
|
(1,041
|
)
|
(10,754
|
)
|
(2,583
|
)
|
|||||
Pro
forma net income (loss) applicable to common stock
|
$
|
171,806
|
$
|
(54,368
|
)
|
$
|
299,345
|
$
|
(75,071
|
)
|
|||
Earnings
(loss) per share:
|
|||||||||||||
Basic
- as reported
|
$
|
0.98
|
$
|
(0.30
|
)
|
$
|
1.71
|
$
|
(0.39
|
)
|
|||
Basic
- pro forma
|
$
|
0.96
|
$
|
(0.31
|
)
|
$
|
1.67
|
$
|
(0.40
|
)
|
|||
Diluted
- as reported
|
$
|
0.91
|
$
|
(0.30
|
)
|
$
|
1.62
|
$
|
(0.39
|
)
|
|||
Diluted
- pro forma
|
$
|
0.89
|
$
|
(0.31
|
)
|
$
|
1.56
|
$
|
(0.40
|
)
|
|||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
June
30,
|
June
30,
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||
Fair
value per stock option
|
$
|
12.90
|
$
|
13.73
|
$
|
13.97
|
$
|
15.00
|
||||
Risk-free
interest rate
|
3.7
|
%
|
4.3
|
%
|
3.9
|
%
|
3.7
|
%
|
||||
Expected
volatility rate
|
45
|
%
|
48
|
%
|
46
|
%
|
49
|
%
|
||||
Expected
life of options (in years)
|
6
|
6
|
6
|
6
|
||||||||
Assumed
annual dividend
|
$
|
1.00
|
$
|
0.80
|
$
|
1.00
|
$
|
0.80
|
3. |
BUSINESS
SEGMENTS
|
Mining
and
Exploration
|
Smelting
and Refining
|
Eliminations and
Other
|
FCX
Total
|
||||||||||
(In
Thousands)
|
|||||||||||||
Three
months ended June 30, 2005:
|
|||||||||||||
Revenues
|
$
|
678,386
|
a
|
$
|
331,897
|
$
|
(107,374
|
)
|
$
|
902,909
|
|||
Production
and delivery
|
223,355
|
321,909
|
(154,678
|
)b
|
390,586
|
||||||||
Depreciation
and amortization
|
44,217
|
7,141
|
2,801
|
54,159
|
|||||||||
Exploration
expenses
|
2,272
|
-
|
70
|
2,342
|
|||||||||
General
and administrative expenses
|
18,425
|
c
|
2,901
|
4,053
|
c
|
25,379
|
|||||||
Operating
income (loss)
|
$
|
390,117
|
$
|
(54
|
)
|
$
|
40,380
|
$
|
430,443
|
||||
Equity
in PT Smelting earnings
|
$
|
-
|
$
|
2,562
|
$
|
-
|
$
|
2,562
|
|||||
Interest
expense, net
|
$
|
5,897
|
$
|
4,387
|
$
|
25,008
|
$
|
35,292
|
|||||
Provision
for income taxes
|
$
|
138,007
|
$
|
-
|
$
|
50,677
|
$
|
188,684
|
|||||
Capital
expenditures
|
$
|
29,939
|
$
|
3,139
|
$
|
(33
|
)
|
$
|
33,045
|
||||
Total
assets
|
$
|
3,870,969
|
d
|
$
|
717,707
|
e
|
$
|
369,588
|
$
|
4,958,264
|
|||
Three
months ended June 30, 2004:
|
|||||||||||||
Revenues
|
$
|
330,841
|
a
|
$
|
171,736
|
$
|
(16,243
|
)
|
$
|
486,334
|
|||
Production
and delivery
|
175,243
|
201,542
|
(5,106
|
)b
|
371,679
|
||||||||
Depreciation
and amortization
|
33,417
|
7,028
|
2,145
|
42,590
|
|||||||||
Exploration
expenses
|
2,679
|
-
|
108
|
2,787
|
|||||||||
General
and administrative expenses
|
16,339
|
c
|
3,114
|
3,123
|
c
|
22,576
|
|||||||
Operating
income (loss)
|
$
|
103,163
|
$
|
(39,948
|
)
|
$
|
(16,513
|
)
|
$
|
46,702
|
|||
Equity
in PT Smelting losses
|
$
|
-
|
$
|
2,548
|
$
|
-
|
$
|
2,548
|
|||||
Interest
expense, net
|
$
|
5,494
|
$
|
2,919
|
$
|
30,926
|
$
|
39,339
|
|||||
Provision
for income taxes
|
$
|
37,522
|
$
|
-
|
$
|
688
|
$
|
38,210
|
|||||
Capital
expenditures
|
$
|
34,002
|
$
|
6,491
|
$
|
6
|
$
|
40,499
|
|||||
Total
assets
|
$
|
3,561,840
|
d
|
$
|
681,039
|
e
|
$
|
482,635
|
$
|
4,725,514
|
|||
Six
months ended June 30, 2005:
|
|||||||||||||
Revenues
|
$
|
1,365,784
|
a
|
$
|
604,013
|
$
|
(263,823
|
)
|
$
|
1,705,974
|
|||
Production
and delivery
|
417,233
|
585,486
|
(247,127
|
)
|
755,592
|
||||||||
Depreciation
and amortization
|
91,142
|
14,230
|
5,713
|
111,085
|
|||||||||
Exploration
expenses
|
4,164
|
-
|
98
|
4,262
|
|||||||||
General
and administrative expenses
|
51,607
|
c
|
5,905
|
(10,519
|
)c
|
46,993
|
|||||||
Operating
income (loss)
|
$
|
801,638
|
$
|
(1,608
|
)
|
$
|
(11,988
|
)
|
$
|
788,042
|
|||
Equity
in PT Smelting earnings
|
$
|
-
|
$
|
5,158
|
$
|
-
|
$
|
5,158
|
|||||
Interest
expense, net
|
$
|
11,624
|
$
|
8,192
|
$
|
53,024
|
$
|
72,840
|
|||||
Provision
for income taxes
|
$
|
283,326
|
$
|
-
|
$
|
69,386
|
$
|
352,712
|
|||||
Capital
expenditures
|
$
|
53,508
|
$
|
5,863
|
$
|
(80
|
)
|
$
|
59,291
|
||||
Six
months ended June 30, 2004:
|
|||||||||||||
Revenues
|
$
|
518,025
|
a
|
$
|
382,953
|
$
|
(54,459
|
)
|
$
|
846,519
|
|||
Production
and delivery
|
326,515
|
413,658
|
(92,882
|
)b
|
647,291
|
||||||||
Depreciation
and amortization
|
50,603
|
14,095
|
3,302
|
68,000
|
|||||||||
Exploration
expenses
|
4,868
|
-
|
146
|
5,014
|
|||||||||
General
and administrative expenses
|
93,351
|
c
|
6,096
|
(61,311
|
)c
|
38,136
|
|||||||
Operating
income (loss)
|
$
|
42,688
|
$
|
(50,896
|
)
|
$
|
96,286
|
$
|
88,078
|
||||
Equity
in PT Smelting losses
|
$
|
-
|
$
|
2,906
|
$
|
-
|
$
|
2,906
|
|||||
Interest
expense, net
|
$
|
11,213
|
$
|
6,771
|
$
|
54,745
|
$
|
72,729
|
|||||
Provision
for income taxes
|
$
|
17,943
|
$
|
-
|
$
|
38,608
|
$
|
56,551
|
|||||
Capital
expenditures
|
$
|
59,703
|
$
|
15,257
|
$
|
(120
|
)
|
$
|
74,840
|
a. |
Includes
PT Freeport Indonesia’s sales to PT Smelting totaling $194.9 million in
the 2005 quarter, $166.2 million in the 2004 quarter, $429.0 million
in
the 2005 six-month period and $293.2 million in the 2004 six-month
period.
|
b. |
Includes
deferral (recognition) of intercompany profits on 25 percent of PT
Freeport Indonesia’s sales to PT Smelting, for which the final sale to
third parties must occur for profit recognition, totaling $(2.6)
million
in the 2005 quarter, $10.3 million in the 2004 quarter and $2.0 million
in
the 2004 six-month period.
|
c. |
Includes
charges to the mining and exploration segment for FCX stock option
exercises which are eliminated in consolidation totaling $0.7 million
in
the 2005 quarter, $2.2 million in the 2004 quarter, $17.4 million
in the
2005 six-month period and $66.8 million in the 2004 six-month
period.
|
d. |
Includes
PT Freeport Indonesia’s trade receivables with PT Smelting totaling $71.9
million at June 30, 2005, and $71.8 million at June 30,
2004.
|
e. |
Includes
PT Freeport Indonesia’s equity investment in PT Smelting totaling $52.9
million at June 30, 2005, and $54.4 million at June 30,
2004.
|
4. |
INVENTORIES
|
June
30,
|
December
31,
|
|||||||
2005
|
2004
|
|||||||
PT
Freeport Indonesia:
|
Concentrates
- Average cost
|
$
|
9,501
|
$
|
11,830
|
|||
Atlantic
Copper:
|
Concentrates
- First in, first out (FIFO)
|
70,442
|
148,246
|
|||||
Work
in process - FIFO
|
120,337
|
86,710
|
||||||
Finished
goods - FIFO
|
1,051
|
6,479
|
||||||
Total
product inventories
|
201,331
|
253,265
|
||||||
Total
materials and supplies, net
|
233,917
|
213,447
|
||||||
Total
inventories
|
$
|
435,248
|
$
|
466,712
|
5. |
EMPLOYEE
BENEFITS
|
FCX
|
PT
Freeport Indonesia
|
Atlantic
Copper
|
||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
|||||||||||||
Service
cost
|
$
|
165
|
$
|
213
|
$
|
900
|
$
|
821
|
$
|
-
|
$
|
-
|
||||||
Interest
cost
|
596
|
610
|
940
|
824
|
1,239
|
1,248
|
||||||||||||
Expected
return on plan assets
|
(234
|
)
|
253
|
(353
|
)
|
(448
|
)
|
-
|
-
|
|||||||||
Amortization
of prior service cost
|
1,019
|
944
|
225
|
237
|
-
|
-
|
||||||||||||
Amortization
of net actuarial loss
|
-
|
-
|
178
|
70
|
231
|
219
|
||||||||||||
Net
periodic benefit cost
|
$
|
1,546
|
$
|
2,020
|
$
|
1,890
|
$
|
1,504
|
$
|
1,470
|
$
|
1,467
|
FCX
|
PT
Freeport Indonesia
|
Atlantic
Copper
|
||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
|||||||||||||
Service
cost
|
$
|
344
|
$
|
284
|
$
|
1,831
|
$
|
1,702
|
$
|
-
|
$
|
-
|
||||||
Interest
cost
|
1,114
|
993
|
1,912
|
1,707
|
2,528
|
2,543
|
||||||||||||
Expected
return on plan assets
|
(256
|
)
|
(69
|
)
|
(718
|
)
|
(928
|
)
|
-
|
-
|
||||||||
Amortization
of prior service cost
|
1,963
|
1,888
|
457
|
491
|
-
|
-
|
||||||||||||
Amortization
of net actuarial loss
|
-
|
-
|
362
|
146
|
472
|
449
|
||||||||||||
Net
periodic benefit cost
|
$
|
3,165
|
$
|
3,096
|
$
|
3,844
|
$
|
3,118
|
$
|
3,000
|
$
|
2,992
|
6. |
INTEREST
COST
|
7. |
COMPREHENSIVE
INCOME
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
June
30,
|
June
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Net
income (loss)
|
$
|
190,372
|
$
|
(38,238
|
)
|
$
|
335,892
|
$
|
(57,621
|
)
|
|||
Other
comprehensive income (loss):
|
|||||||||||||
Change
in unrealized derivatives’ fair value, net of taxes
|
|||||||||||||
of
$0.8 million for the three months ended
|
|||||||||||||
June
30, 2005, $1.0 million for the six months ended
|
|||||||||||||
June
30, 2005 and $0.1 million for the 2004 periods
|
(1,047
|
)
|
32
|
(1,345
|
)
|
(114
|
)
|
||||||
Reclass
to earnings, net of taxes of $0.1 million
|
|||||||||||||
for
the 2005 periods and none for the 2004 periods
|
(192
|
)
|
476
|
(95
|
)
|
982
|
|||||||
Total
comprehensive income (loss)
|
$
|
189,133
|
$
|
(37,730
|
)
|
$
|
334,452
|
$
|
(56,753
|
)
|
|||
8. |
RATIO
OF EARNINGS TO FIXED CHARGES
|
Second
Quarter
|
Six
Months
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||
Revenues
|
$
|
902.9
|
$
|
486.3
|
$
|
1,706.0
|
$
|
846.5
|
||||
Operating
income
|
430.4
|
46.7
|
788.0
|
88.1
|
||||||||
Net
income (loss) applicable to common stock
|
175.2
|
(53.3
|
)
|
305.6
|
(72.9
|
)
|
||||||
Diluted
net income (loss) per share of common stock
|
0.91
|
(0.30
|
)
|
1.62
|
(0.39
|
)
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
June
30,
|
June
30,
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||
Mining
and exploration segment operating incomea
|
$
|
390,780
|
$
|
105,399
|
$
|
819,087
|
$
|
109,531
|
||||
Mining
and exploration segment interest expense, net
|
(5,897
|
)
|
(5,494
|
)
|
(11,624
|
)
|
(11,213
|
)
|
||||
Intercompany
operating profit (deferred) recognized
|
48,350
|
(9,561
|
)
|
(15,220
|
)
|
38,619
|
||||||
Income
before taxes
|
433,233
|
90,344
|
792,243
|
136,937
|
||||||||
Indonesian
corporate income tax rate (35%) plus U.S.
|
||||||||||||
alternative
minimum tax rate (2%) for 2004
|
35
|
%
|
37
|
%
|
35
|
%
|
37
|
%
|
||||
Corporate
income taxes
|
151,632
|
33,427
|
277,285
|
50,667
|
||||||||
Approximate
PT Freeport Indonesia net income
|
281,601
|
56,917
|
514,958
|
86,270
|
||||||||
Withholding
tax on FCX’s equity share
|
9.064
|
%
|
9.064
|
%
|
9.064
|
%
|
9.064
|
%
|
||||
Withholding
taxes
|
25,524
|
5,159
|
46,676
|
7,820
|
||||||||
PT
Indocopper Investama corporate income tax
|
6,957
|
-
|
21,081
|
-
|
||||||||
Other,
net
|
4,571
|
(376
|
)
|
7,670
|
(1,936
|
)
|
||||||
FCX
consolidated provision for income taxes
|
$
|
188,684
|
$
|
38,210
|
$
|
352,712
|
$
|
56,551
|
||||
FCX
consolidated effective tax rate
|
46
|
%
|
b
|
48
|
%
|
b
|
||||||
a. |
Excludes
charges for FCX stock option exercises, which are eliminated in
consolidation, totaling $0.7 million for the 2005 quarter, $2.2 million
for the 2004 quarter, $17.4 million for the 2005 six-month period
and
$66.8 million for the 2004 six-month
period.
|
b. |
Rates
are not meaningful given the small amounts of consolidated income
before
taxes and minority interests for the 2004
periods.
|
Second
Quarter
|
Six
Months
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||
Mining
and explorationa
|
$
|
390.1
|
$
|
103.2
|
$
|
801.6
|
$
|
42.7
|
||||
Smelting
and refining
|
(0.1
|
)
|
(40.0
|
)
|
(1.6
|
)
|
(50.9
|
)
|
||||
Intercompany
eliminations and othera,
b
|
40.4
|
(16.5
|
)
|
(12.0
|
)
|
96.3
|
||||||
FCX
operating income
|
$
|
430.4
|
$
|
46.7
|
$
|
788.0
|
$
|
88.1
|
||||
a. |
Includes
charges to the mining and exploration segment for FCX stock option
exercises, which are eliminated in consolidation, totaling $0.7 million
in
the 2005 quarter, $2.2 million in the 2004 quarter, $17.4 million
for the
2005 six-month period and $66.8 million for the 2004 six-month
period.
|
b. |
We
defer recognizing profits on PT Freeport Indonesia’s sales to Atlantic
Copper and on 25 percent of PT Freeport Indonesia’s sales to PT Smelting
until their sales of final products to third parties. Changes in
the
amount of these deferred profits impacted operating income by $48.3
million in the second quarter of 2005, $(9.6) million in the second
quarter of 2004, $(15.2) million in the first six months of 2005
and $38.6
million in the first six months of 2004. Our consolidated earnings
can
fluctuate materially depending on the timing and prices of these
sales. At
June 30, 2005, our deferred profits to be recognized in future periods’
operating income totaled $96.1 million, $50.5 million to net income,
after
taxes and minority interest
sharing.
|
Second
Quarter
|
Six
Months
|
|||||||||
2005
|
2004
|
2005
|
2004
|
|||||||
PT
Freeport Indonesia Operating Data, Net of Rio Tinto’s
Interest
|
||||||||||
Copper
(recoverable)
|
||||||||||
Production
(000s of pounds)
|
302,300
|
209,300
|
637,900
|
316,400
|
||||||
Production
(metric tons)
|
137,100
|
94,900
|
289,300
|
143,500
|
||||||
Sales
(000s of pounds)
|
313,700
|
205,100
|
641,800
|
310,500
|
||||||
Sales
(metric tons)
|
142,300
|
93,000
|
291,100
|
140,800
|
||||||
Average
realized price per pound
|
$1.53
|
$1.22
|
$1.54
|
$1.24
|
||||||
Gold
(recoverable ounces)
|
||||||||||
Production
|
591,300
|
364,900
|
1,200,700
|
490,200
|
||||||
Sales
|
616,400
|
351,100
|
1,211,700
|
474,900
|
||||||
Average
realized price per ounce
|
$428.23
|
$389.97
|
$427.54
|
$393.80
|
||||||
PT
Freeport Indonesia, 100% Aggregate Operating Data
|
||||||||||
Ore
milled (metric tons per day)
|
211,800
|
164,200
|
205,600
|
158,000
|
||||||
Average
ore grade
|
||||||||||
Copper
(percent)
|
.98
|
.82
|
1.06
|
.67
|
||||||
Gold
(grams per metric ton)
|
1.43
|
.95
|
1.52
|
.69
|
||||||
Recovery
rates (percent)
|
||||||||||
Copper
|
87.4
|
88.2
|
88.5
|
86.6
|
||||||
Gold
|
83.8
|
84.6
|
83.3
|
81.5
|
||||||
Copper
(recoverable)
|
||||||||||
Production
(000s of pounds)
|
349,200
|
229,000
|
739,500
|
347,900
|
||||||
Production
(metric tons)
|
158,400
|
103,900
|
335,400
|
157,800
|
||||||
Sales
(000s of pounds)
|
362,500
|
224,100
|
743,900
|
340,900
|
||||||
Sales
(metric tons)
|
164,400
|
101,600
|
337,400
|
154,600
|
||||||
Gold
(recoverable ounces)
|
||||||||||
Production
|
727,400
|
383,600
|
1,491,300
|
514,900
|
||||||
Sales
|
758,600
|
369,600
|
1,501,800
|
499,700
|
Second
Quarter
|
Six
Months
|
|||||||
2005
|
2004
|
2005
|
2004
|
|||||
Grasberg
open pit
|
169,500
|
118,700
|
163,400
|
112,600
|
||||
Deep
Ore Zone underground mine
|
42,300
|
45,500
|
42,200
|
45,400
|
||||
Total
mill throughput
|
211,800
|
164,200
|
205,600
|
158,000
|
||||
Second
|
Six
|
|||||
Quarter
|
Months
|
|||||
PT
Freeport Indonesia revenues - prior year period
|
$
|
330.8
|
$
|
518.0
|
||
Sales
volumes:
|
||||||
Copper
|
132.5
|
409.5
|
||||
Gold
|
103.5
|
290.2
|
||||
Price
realizations:
|
||||||
Copper
|
98.5
|
196.4
|
||||
Gold
|
23.6
|
40.9
|
||||
Adjustments,
primarily for copper pricing on prior period open sales
|
22.7
|
(1.4
|
)
|
|||
Treatment
charges, royalties and other
|
(33.2
|
)
|
(87.8
|
)
|
||
PT
Freeport Indonesia revenues - current year period
|
$
|
678.4
|
$
|
1,365.8
|
||
Gross
profit per pound of copper (¢)/per
ounce of gold and silver ($):
|
||||||||||||
Three
Months Ended June 30, 2005
|
||||||||||||
Pounds
of copper sold (000s)
|
313,700
|
313,700
|
||||||||||
Ounces
of gold sold
|
616,400
|
|||||||||||
Ounces
of silver sold
|
1,057,700
|
|||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
153.4
|
¢
|
153.4
|
¢
|
$428.23
|
$7.04
|
||||||
Site
production and delivery, before net non-
|
||||||||||||
cash
and nonrecurring costs shown below
|
70.5
|
a
|
45.0
|
b
|
126.01
|
b
|
2.06
|
b
|
||||
Gold
and silver credits
|
(86.5
|
)
|
-
|
-
|
-
|
|||||||
Treatment
charges
|
21.6
|
13.8
|
38.68
|
0.63
|
||||||||
Royalty
on metals
|
5.7
|
3.6
|
10.11
|
0.17
|
||||||||
Unit
net cash costsc
|
11.3
|
62.4
|
174.80
|
2.86
|
||||||||
Depreciation
and amortization
|
14.1
|
9.0
|
25.20
|
0.41
|
||||||||
Noncash
and nonrecurring costs, net
|
0.7
|
0.5
|
1.30
|
0.02
|
||||||||
Total
unit costs
|
26.1
|
71.9
|
201.30
|
3.29
|
||||||||
Revenue
adjustments, primarily for pricing
|
||||||||||||
on
prior period open sales
|
3.7
|
3.6
|
0.12
|
(0.03
|
)
|
|||||||
PT
Smelting intercompany profit elimination
|
0.8
|
0.5
|
1.45
|
0.02
|
||||||||
Gross
profit per pound/ounce
|
131.8
|
¢
|
85.6
|
¢
|
$228.50
|
$3.74
|
||||||
Three
Months Ended June 30, 2004
|
||||||||||||
Pounds
of copper sold (000s)
|
205,100
|
205,100
|
||||||||||
Ounces
of gold sold
|
351,100
|
|||||||||||
Ounces
of silver sold
|
824,900
|
|||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
122.0
|
¢
|
122.0
|
¢
|
$389.97
|
$6.15
|
||||||
Site
production and delivery, before net non-
|
||||||||||||
cash
and nonrecurring costs shown below
|
84.0
|
d
|
53.8
|
e
|
170.37
|
e
|
2.64
|
e
|
||||
Gold
and silver credits
|
(68.8
|
)
|
-
|
-
|
-
|
|||||||
Treatment
charges
|
21.2
|
13.6
|
42.90
|
0.66
|
||||||||
Royalty
on metals
|
3.8
|
2.5
|
7.78
|
0.12
|
||||||||
Unit
net cash costsc
|
40.2
|
69.9
|
221.05
|
3.42
|
||||||||
Depreciation
and amortization
|
16.3
|
10.4
|
33.03
|
0.51
|
||||||||
Noncash
and nonrecurring costs, net
|
1.4
|
0.9
|
2.84
|
0.04
|
||||||||
Total
unit costs
|
57.9
|
81.2
|
256.92
|
3.97
|
||||||||
Revenue
adjustments, primarily for pricing
|
||||||||||||
on
prior period open sales
|
(4.5
|
)
|
(4.4
|
)
|
(2.29
|
)
|
(0.15
|
)
|
||||
PT
Smelting intercompany profit elimination
|
(5.0
|
)
|
(3.2
|
)
|
(10.15
|
)
|
(0.16
|
)
|
||||
Gross
profit per pound/ounce
|
54.6
|
¢
|
33.2
|
¢
|
$120.61
|
$1.87
|
||||||
a. |
Net
of deferred mining costs totaling $20.6 million or 6.6¢ per pound. Upon
adoption of Emerging Issues Task Force (EITF) Issue No. 04-6 (see
Note 1
of Notes to Consolidated Financial Statements), mining costs will
no
longer be deferred.
|
b. |
Net
of deferred mining costs totaling $13.2 million or 4.2¢ per pound for
copper, $7.2 million or $11.74 per ounce for gold and $0.2 million
or
$0.19 per ounce for silver. See
Note a above.
|
c. |
For
a reconciliation of unit net cash costs to production and delivery
costs
applicable to sales reported in FCX’s consolidated financial statements
refer to “Product Revenues and Production Costs”
below.
|
d. |
Net
of deferred mining costs totaling $31.5 million or 15.4¢ per
pound. See
Note a above.
|
e. |
Net
of deferred mining costs totaling $20.2 million or 9.8¢ per pound for
copper, $10.9 million or $31.14 per ounce for gold and $0.4 million
or
$0.48 per ounce for silver. See
Note a above.
|
Gross
profit per pound of copper (¢)/per
ounce of gold and silver ($):
|
||||||||||||
Six
Months Ended June 30, 2005
|
||||||||||||
Pounds
of copper sold (000s)
|
641,800
|
641,800
|
||||||||||
Ounces
of gold sold
|
1,211,700
|
|||||||||||
Ounces
of silver sold
|
2,328,000
|
|||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
154.2
|
¢
|
154.2
|
¢
|
$427.54
|
$7.02
|
||||||
Site
production and delivery, before net non-
|
||||||||||||
cash
and nonrecurring costs shown below
|
64.6
|
a
|
42.1
|
b
|
115.39
|
b
|
1.92
|
b
|
||||
Gold
and silver credits
|
(82.8
|
)
|
-
|
-
|
-
|
|||||||
Treatment
charges
|
21.7
|
14.2
|
38.80
|
0.65
|
||||||||
Royalty
on metals
|
5.7
|
3.7
|
10.17
|
0.17
|
||||||||
Unit
net cash costsc
|
9.2
|
60.0
|
164.36
|
2.74
|
||||||||
Depreciation
and amortization
|
14.2
|
9.3
|
25.38
|
0.42
|
||||||||
Noncash
and nonrecurring costs, net
|
0.4
|
0.3
|
0.78
|
0.01
|
||||||||
Total
unit costs
|
23.8
|
69.6
|
190.52
|
3.17
|
||||||||
Revenue
adjustments, primarily for pricing
|
||||||||||||
on
prior period open sales
|
3.2
|
3.3
|
(2.47
|
)
|
0.06
|
|||||||
PT
Smelting intercompany profit elimination
|
-
|
-
|
(0.01
|
)
|
-
|
|||||||
Gross
profit per pound/ounce
|
133.6
|
¢
|
87.9
|
¢
|
$234.54
|
$3.91
|
||||||
Six
Months Ended June 30, 2004
|
||||||||||||
Pounds
of copper sold (000s)
|
310,500
|
310,500
|
||||||||||
Ounces
of gold sold
|
474,900
|
|||||||||||
Ounces
of silver sold
|
1,378,200
|
|||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
Method
|
Copper
|
Gold
|
Silver
|
|||||||||
Revenues,
after adjustments shown below
|
123.6
|
¢
|
123.6
|
¢
|
$393.80
|
$6.14
|
||||||
Site
production and delivery, before net non-
|
||||||||||||
cash
and nonrecurring costs shown below
|
104.2
|
d
|
69.3
|
e
|
218.23
|
e
|
3.51
|
e
|
||||
Gold
and silver credits
|
(63.1
|
)
|
-
|
-
|
-
|
|||||||
Treatment
charges
|
21.7
|
14.4
|
45.46
|
0.73
|
||||||||
Royalty
on metals
|
4.1
|
2.7
|
8.58
|
0.14
|
||||||||
Unit
net cash costsc
|
66.9
|
86.4
|
272.27
|
4.38
|
||||||||
Depreciation
and amortization
|
16.3
|
10.8
|
34.13
|
0.55
|
||||||||
Noncash
and nonrecurring costs, net
|
1.0
|
0.6
|
2.00
|
0.03
|
||||||||
Total
unit costs
|
84.2
|
97.8
|
308.40
|
4.96
|
||||||||
Revenue
adjustments, primarily for pricing
|
||||||||||||
on
prior period open sales
|
6.0
|
5.8
|
0.62
|
0.20
|
||||||||
PT
Smelting intercompany profit elimination
|
(0.6
|
)
|
(0.4
|
)
|
(1.32
|
)
|
(0.02
|
)
|
||||
Gross
profit per pound/ounce
|
44.8
|
¢
|
31.2
|
¢
|
$84.70
|
$1.36
|
||||||
a. |
Net
of deferred mining costs totaling $52.8 million or 8.2¢ per
pound. Upon
adoption of EITF Issue No. 04-6 (see Note 1 of Notes to Consolidated
Financial Statements), mining costs will no longer be
deferred.
|
b. |
Net
of deferred mining costs totaling $34.4 million or 5.4¢ per pound for
copper, $17.8 million or $14.70 per ounce for gold and $0.6 million
or
$0.25 per ounce for silver. See
Note a above.
|
c. |
For
a reconciliation of unit net cash costs to production and delivery
costs
applicable to sales reported in FCX’s consolidated financial statements
refer to “Product Revenues and Production Costs”
below.
|
d. |
Net
of deferred mining costs totaling $57.7 million or 18.6¢ per
pound. See
Note a above.
|
e. |
Net
of deferred mining costs totaling $38.4 million or 12.4¢ per pound for
copper, $18.5 million or $38.92 per ounce for gold and $0.9 million
or
$0.63 per ounce for silver. See
Note a above.
|
Atlantic
Copper Operating Results
|
||||||||
(In
Millions)
|
Second
Quarter
|
Six
Months
|
||||||
2005
|
2004
|
2005
|
2004
|
|||||
Gross
profit (loss)
|
$2.8
|
$(36.8
|
)a
|
$4.3
|
$(44.8
|
)a
|
||
Add
depreciation and amortization expense
|
7.1
|
7.0
|
14.2
|
14.1
|
||||
Other
|
1.1
|
3.5
|
2.1
|
4.0
|
||||
Cash
margin (deficit)
|
$11.0
|
$(26.3
|
)a
|
$20.6
|
$(26.7
|
)a
|
||
Operating
loss (in millions)
|
$(0.1
|
)
|
$(39.9
|
)
|
$(1.6
|
)
|
$(50.9
|
)
|
Concentrate
and scrap treated (metric tons)
|
246,900
|
129,500
|
462,700
|
316,600
|
||||
Anodes
production (000s of pounds)
|
159,400
|
80,200
|
306,800
|
206,900
|
||||
Cathodes,
wire rod and wire sales (000s of pounds)
|
140,800
|
102,400
|
273,400
|
214,400
|
||||
Cathode
cash unit cost per poundb
|
$0.18
|
$0.57
|
$0.18
|
$0.36
|
||||
Gold
sales in anodes and slimes (ounces)
|
178,900
|
49,000
|
246,200
|
176,800
|
||||
a. |
Includes
costs related to Atlantic Copper’s 51-day major maintenance turnaround
totaling $23.5 million for the second quarter of 2004 and $27.5 million
for the first six months of 2004.
|
b. |
For
a reconciliation of cathode cash unit costs per pound to production
costs
applicable to sales reported in FCX’s consolidated financial statements
refer to “Product Revenues and Production Costs”
below.
|
Second
Quarter
|
Six
Months
|
|||||||
(In
Millions)
|
2005
|
2004
|
2005
|
2004
|
||||
PT
Freeport Indonesia sales to PT Smelting
|
$194.9
|
$166.2
|
$429.0
|
$293.2
|
||||
Equity
in PT Smelting earnings (losses)
|
2.6
|
(2.5
|
)
|
5.2
|
(2.9
|
)
|
||
PT
Freeport Indonesia operating profits recognized (deferred)
|
2.6
|
(10.3
|
)
|
-
|
(2.0
|
)
|
||
2005
|
2006
|
2007
|
2008
|
2009
|
Thereafter
|
||||||||||||
Redeemable
preferred stock
|
$
|
12.5
|
$
|
179.9
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||
Atlantic
Copper debt
|
4.0
|
-
|
39.2
|
-
|
-
|
-
|
|||||||||||
Equipment
loans and other
|
3.5
|
13.1
|
13.6
|
13.5
|
13.5
|
13.9
|
|||||||||||
7.50%
Senior Notes due 2006
|
-
|
59.9
|
-
|
-
|
-
|
-
|
|||||||||||
10⅛%
Senior Notes due 2010
|
-
|
-
|
-
|
-
|
-
|
500.0
|
|||||||||||
7%
Convertible Senior Notes due 2011a
|
-
|
-
|
-
|
-
|
-
|
575.0
|
|||||||||||
6⅞%
Senior Notes due 2014
|
-
|
-
|
-
|
-
|
-
|
340.3
|
|||||||||||
7.20%
Senior Notes due 2026
|
-
|
-
|
-
|
-
|
-
|
0.2
|
|||||||||||
Total
debt maturities
|
$
|
20.0
|
$
|
252.9
|
$
|
52.8
|
$
|
13.5
|
$
|
13.5
|
$
|
1,429.4
|
|||||
Pro
forma adjustmentb
|
5.0
|
25.2
|
-
|
-
|
-
|
-
|
|||||||||||
Pro
forma debt maturities
|
$
|
25.0
|
$
|
278.1
|
$
|
52.8
|
$
|
13.5
|
$
|
13.5
|
$
|
1,429.4
|
a. |
Conversion
price is $30.87 per share.
|
b. |
Represents
additional amounts due above the original issue amounts based on
the price
of silver and gold, totaling $5.0 million in 2005 and $4.4 million
in 2006
for our Silver-Denominated Preferred Stock and $20.8 million in February
2006 for our Gold-Denominated Preferred Stock, Series II. The adjustment
for 2005 is based on the calculated August 2005 redemption amount
and we
calculated the 2006 amount using the June 30, 2005, London gold fixing
price for one ounce of gold ($437.10) and the London silver fixing
price
for one ounce of silver ($7.10) in the London bullion market (which
determine the preferred stock redemption
amounts).
|
1. |
We
show adjustments to revenues for prior period open sales as separate
line
items. Because such copper pricing adjustments do not result from
current
period sales, we have reflected these separately from revenues on
current
period sales.
|
2. |
Noncash
and nonrecurring costs, which consist of items such as write-offs
of
equipment or unusual charges, have not been material. They are removed
from site production and delivery costs in the calculation of unit
net
cash costs.
|
3. |
Gold
and silver revenues are reflected as credits against site production
and
delivery costs in the by-product method.
|
Three
Months Ended June 30, 2005
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Thousands)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
480,076
|
$
|
480,076
|
$
|
264,040
|
$
|
7,406
|
$
|
751,522
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
221,071
|
a
|
141,221
|
b
|
77,671
|
b
|
2,179
|
b
|
221,071
|
||||||
Gold
and silver credits
|
(271,446
|
)
|
-
|
-
|
-
|
-
|
|||||||||
Treatment
charges
|
67,867
|
43,354
|
23,844
|
669
|
67,867
|
||||||||||
Royalty
on metals
|
17,741
|
11,333
|
6,233
|
175
|
17,741
|
||||||||||
Unit
net cash costs
|
35,233
|
195,908
|
107,748
|
3,023
|
306,679
|
||||||||||
Depreciation
and amortization
|
44,217
|
28,246
|
15,535
|
436
|
44,217
|
||||||||||
Noncash
and nonrecurring costs, net
|
2,284
|
1,459
|
802
|
23
|
2,284
|
||||||||||
Total
unit costs
|
81,734
|
225,613
|
124,085
|
3,482
|
353,180
|
||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales
|
12,472
|
12,472
|
-
|
-
|
12,472
|
||||||||||
PT
Smelting intercompany profit elimination
|
2,552
|
1,630
|
897
|
25
|
2,552
|
||||||||||
Gross
profit
|
$
|
413,366
|
$
|
268,565
|
$
|
140,852
|
$
|
3,949
|
$
|
413,366
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
Thousands)
|
Revenues
|
Production
and Delivery
|
Depreciation
and Amortization
|
||||||||||||
Totals
presented above
|
$
|
751,522
|
$
|
221,071
|
$
|
44,217
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
2,284
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(67,867
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty
per above
|
(17,741
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales per above
|
12,472
|
N/A
|
N/A
|
||||||||||||
Mining
and exploration segment
|
678,386
|
223,355
|
44,217
|
||||||||||||
Smelting
and refining segment
|
331,897
|
321,909
|
7,141
|
||||||||||||
Eliminations
and other
|
(107,374
|
)
|
(154,678
|
)
|
2,801
|
||||||||||
As
reported in FCX’s consolidated financial
|
|||||||||||||||
statements
|
$
|
902,909
|
$
|
390,586
|
$
|
54,159
|
a. |
Net
of deferred mining costs totaling $20.6 million or 6.6¢ per pound. Upon
adoption of EITF Issue No. 04-6, mining costs will no longer be deferred.
See Note 1 of Notes to Consolidated Financial
Statements.
|
b. |
Net
of deferred mining costs totaling $13.2 million or 4.2¢ per pound for
copper, $7.2 million or $11.74 per ounce for gold and $0.2 million
or
$0.19 per ounce for silver. See Note a
above.
|
Three
Months Ended June 30, 2004
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Thousands)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
251,178
|
$
|
251,178
|
$
|
136,115
|
$
|
4,951
|
$
|
392,244
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
172,371
|
a
|
110,380
|
b
|
59,815
|
b
|
2,176
|
b
|
172,371
|
||||||
Gold
and silver credits
|
(141,066
|
)
|
-
|
-
|
-
|
-
|
|||||||||
Treatment
charges
|
43,407
|
27,796
|
15,063
|
548
|
43,407
|
||||||||||
Royalty
on metals
|
7,875
|
5,043
|
2,733
|
99
|
7,875
|
||||||||||
Unit
net cash costs
|
82,587
|
143,219
|
77,611
|
2,823
|
223,653
|
||||||||||
Depreciation
and amortization
|
33,417
|
21,399
|
11,596
|
422
|
33,417
|
||||||||||
Noncash
and nonrecurring costs, net
|
2,872
|
1,839
|
997
|
36
|
2,872
|
||||||||||
Total
unit costs
|
118,876
|
166,457
|
90,204
|
3,281
|
259,942
|
||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales
|
(10,121
|
)
|
(10,121
|
)
|
-
|
-
|
(10,121
|
)
|
|||||||
PT
Smelting intercompany profit elimination
|
(10,273
|
)
|
(6,578
|
)
|
(3,565
|
)
|
(130
|
)
|
(10,273
|
)
|
|||||
Gross
profit
|
$
|
111,908
|
$
|
68,022
|
$
|
42,346
|
$
|
1,540
|
$
|
111,908
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
Thousands)
|
Revenues
|
Production
and Delivery
|
Depreciation
and Amortization
|
||||||||||||
Totals
presented above
|
$
|
392,244
|
$
|
172,371
|
$
|
33,417
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
2,872
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(43,407
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty
per above
|
(7,875
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales per above
|
(10,121
|
)
|
N/A
|
N/A
|
|||||||||||
Mining
and exploration segment
|
330,841
|
175,243
|
33,417
|
||||||||||||
Smelting
and refining segment
|
171,736
|
201,542
|
7,028
|
||||||||||||
Eliminations
and other
|
(16,243
|
)
|
(5,106
|
)
|
2,145
|
||||||||||
As
reported in FCX’s consolidated financial
|
|||||||||||||||
statements
|
$
|
486,334
|
$
|
371,679
|
$
|
42,590
|
a. |
Net
of deferred mining costs totaling $31.5 million or 15.4¢ per pound. Upon
adoption of EITF Issue No. 04-6, mining costs will no longer be deferred.
See Note 1 of Notes to Consolidated Financial
Statements.
|
b. |
Net
of deferred mining costs totaling $20.2 million or 9.8¢ per pound for
copper, $10.9 million or $31.14 per ounce for gold and $0.4 million
or
$0.48 per ounce for silver. See Note a
above.
|
Six
Months Ended June 30, 2005
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Thousands)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
995,096
|
$
|
995,096
|
$
|
515,038
|
$
|
16,506
|
$
|
1,526,640
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
414,425
|
a
|
270,131
|
b
|
139,813
|
b
|
4,481
|
b
|
414,425
|
||||||
Gold
and silver credits
|
(531,544
|
)
|
-
|
-
|
-
|
-
|
|||||||||
Treatment
charges
|
139,353
|
90,833
|
47,013
|
1,507
|
139,353
|
||||||||||
Royalty
on metals
|
36,519
|
23,804
|
12,320
|
395
|
36,519
|
||||||||||
Unit
net cash costs
|
58,753
|
384,768
|
199,146
|
6,383
|
590,297
|
||||||||||
Depreciation
and amortization
|
91,142
|
59,408
|
30,749
|
985
|
91,142
|
||||||||||
Noncash
and nonrecurring costs, net
|
2,808
|
1,831
|
947
|
30
|
2,808
|
||||||||||
Total
unit costs
|
152,703
|
446,007
|
230,842
|
7,398
|
684,247
|
||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales
|
15,016
|
15,016
|
-
|
-
|
15,016
|
||||||||||
PT
Smelting intercompany profit elimination
|
(25
|
)
|
(16
|
)
|
(9
|
)
|
-
|
(25
|
)
|
||||||
Gross
profit
|
$
|
857,384
|
$
|
564,089
|
$
|
284,187
|
$
|
9,108
|
$
|
857,384
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
Thousands)
|
Revenues
|
Production
and Delivery
|
Depreciation
and Amortization
|
||||||||||||
Totals
presented above
|
$
|
1,526,640
|
$
|
414,425
|
$
|
91,142
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
2,808
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(139,353
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty
per above
|
(36,519
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales per above
|
15,016
|
N/A
|
N/A
|
||||||||||||
Mining
and exploration segment
|
1,365,784
|
417,233
|
91,142
|
||||||||||||
Smelting
and refining segment
|
604,013
|
585,486
|
14,230
|
||||||||||||
Eliminations
and other
|
(263,823
|
)
|
(247,127
|
)
|
5,713
|
||||||||||
As
reported in FCX’s consolidated financial
|
|||||||||||||||
statements
|
$
|
1,705,974
|
$
|
755,592
|
$
|
111,085
|
a. |
Net
of deferred mining costs totaling $52.8 million or 8.2¢ per pound. Upon
adoption of EITF Issue No. 04-6, mining costs will no longer be deferred.
See Note 1 of Notes to Consolidated Financial
Statements.
|
b. |
Net
of deferred mining costs totaling $34.4 million or 5.4¢ per pound for
copper, $17.8 million or $14.70 per ounce for gold and $0.6 million
or
$0.25 per ounce for silver. See Note a
above.
|
Six
Months Ended June 30, 2004
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
Thousands)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
388,717
|
$
|
388,717
|
$
|
187,310
|
$
|
8,743
|
$
|
584,770
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
323,546
|
a
|
215,073
|
b
|
103,636
|
b
|
4,837
|
b
|
323,546
|
||||||
Gold
and silver credits
|
(196,053
|
)
|
-
|
-
|
-
|
-
|
|||||||||
Treatment
charges
|
67,393
|
44,798
|
21,587
|
1,008
|
67,393
|
||||||||||
Royalty
on metals
|
12,722
|
8,457
|
4,075
|
190
|
12,722
|
||||||||||
Unit
net cash costs
|
207,608
|
268,328
|
129,298
|
6,035
|
403,661
|
||||||||||
Depreciation
and amortization
|
50,603
|
33,637
|
16,209
|
757
|
50,603
|
||||||||||
Noncash
and nonrecurring costs, net
|
2,969
|
1,974
|
951
|
44
|
2,969
|
||||||||||
Total
unit costs
|
261,180
|
303,939
|
146,458
|
6,836
|
457,233
|
||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales
|
13,370
|
13,370
|
-
|
-
|
13,370
|
||||||||||
PT
Smelting intercompany profit elimination
|
(1,956
|
)
|
(1,300
|
)
|
(627
|
)
|
(29
|
)
|
(1,956
|
)
|
|||||
Gross
profit
|
$
|
138,951
|
$
|
96,848
|
$
|
40,225
|
$
|
1,878
|
$
|
138,951
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
Thousands)
|
Revenues
|
Production
and Delivery
|
Depreciation
and Amortization
|
||||||||||||
Totals
presented above
|
$
|
584,770
|
$
|
323,546
|
$
|
50,603
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
2,969
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(67,393
|
)
|
N/A
|
N/A
|
|||||||||||
Royalty
per above
|
(12,722
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on
|
|||||||||||||||
prior
period open sales per above
|
13,370
|
N/A
|
N/A
|
||||||||||||
Mining
and exploration segment
|
518,025
|
326,515
|
50,603
|
||||||||||||
Smelting
and refining segment
|
382,953
|
413,658
|
14,095
|
||||||||||||
Eliminations
and other
|
(54,459
|
)
|
(92,882
|
)
|
3,302
|
||||||||||
As
reported in FCX’s consolidated financial
|
|||||||||||||||
statements
|
$
|
846,519
|
$
|
647,291
|
$
|
68,000
|
a. |
Net
of deferred mining costs totaling $57.7 million or 18.6¢ per pound. Upon
adoption of EITF Issue No. 04-6, mining costs will no longer be deferred.
See Note 1 of Notes to Consolidated Financial
Statements.
|
b. |
Net
of deferred mining costs totaling $38.4 million or 12.4¢ per pound for
copper, $18.5 million or $38.92 per ounce for gold and $0.9 million
or
$0.63 per ounce for silver. See Note a
above.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
June
30,
|
June
30,
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||
Smelting
and refining segment production costs reported
|
||||||||||||
in
FCX’s consolidated financial statements
|
$
|
321,909
|
$
|
201,542
|
a
|
$
|
585,486
|
$
|
413,658
|
a
|
||
Less:
|
||||||||||||
Raw
material purchase costs
|
(209,199
|
)
|
(70,935
|
)
|
(406,470
|
)
|
(167,878
|
)
|
||||
Production
costs of wire rod and wire
|
-
|
b
|
(55,561
|
)
|
-
|
b
|
(84,291
|
)
|
||||
Production
costs of anodes sold
|
(2,368
|
)
|
(612
|
)
|
(5,766
|
)
|
(1,108
|
)
|
||||
Other
|
179
|
(8,099
|
)
|
(1,034
|
)
|
(3,359
|
)
|
|||||
Credits:
|
||||||||||||
Gold
and silver revenues
|
(78,473
|
)
|
(21,265
|
)
|
(110,421
|
)
|
(74,023
|
)
|
||||
Acid
and other by-product revenues
|
(7,291
|
)
|
(6,607
|
)
|
(14,591
|
)
|
(12,371
|
)
|
||||
Production
costs used in calculating cathode cash unit
|
||||||||||||
cost
per pound
|
$
|
24,757
|
$
|
38,463
|
$
|
47,204
|
$
|
70,628
|
||||
Pounds
of cathode produced
|
137,800
|
67,500
|
269,500
|
196,300
|
||||||||
Cathode
cash unit cost per pound
|
$
|
0.18
|
$
|
0.57
|
$
|
0.18
|
$
|
0.36
|
a. |
Includes
$23.5 million, $0.35 per pound, in the 2004 quarter and $27.5 million,
$0.14 per pound, in the 2004 six-month period for costs related to
Atlantic Copper’s major maintenance
turnaround.
|
b. |
Atlantic
Copper sold its wire rod and wire assets in December
2004.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
June
30,
|
June
30,
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||
Operating
costs - PT Smelting (100%)
|
$
|
17,623
|
$
|
18,821
|
$
|
36,074
|
$
|
33,760
|
||||
Add:
Gold and silver refining charges
|
1,119
|
552
|
2,075
|
1,712
|
||||||||
Less:
Acid and other by-product revenues
|
(3,641
|
)
|
(2,829
|
)
|
(7,502
|
)
|
(5,482
|
)
|
||||
Production
cost of anodes sold
|
-
|
-
|
(12
|
)
|
(12
|
)
|
||||||
Other
|
(400
|
)
|
2,315
|
(886
|
)
|
1,585
|
||||||
Production
costs used in calculating cathode cash unit
|
||||||||||||
cost
per pound
|
$
|
14,701
|
$
|
18,859
|
$
|
29,749
|
$
|
31,563
|
||||
Pounds
of cathode produced
|
146,100
|
86,900
|
289,600
|
183,900
|
||||||||
Cathode
cash unit cost per pound
|
$
|
0.10
|
$
|
0.22
|
$
|
0.10
|
$
|
0.17
|
||||
Three
Months Ended
|
Six
Months Ended
|
|||||||
June
30,
|
June
30,
|
|||||||
2005
|
2004
|
2005
|
2004
|
Reconciliation
to Amounts Reported
|
||||||||||||
Operating
costs per above
|
$
|
(17,623
|
)
|
$
|
(18,821
|
)
|
$
|
(36,074
|
)
|
$
|
(33,760
|
)
|
Other
costs
|
(312,792
|
)
|
(154,611
|
)
|
(590,943
|
)
|
(334,906
|
)
|
||||
Revenue
and other income
|
340,904
|
163,482
|
648,130
|
357,524
|
||||||||
PT
Smelting net income (loss)
|
10,489
|
(9,950
|
)
|
21,113
|
(11,142
|
)
|
||||||
PT
Freeport Indonesia’s 25% equity interest
|
2,622
|
(2,488
|
)
|
5,278
|
(2,786
|
)
|
||||||
Amortization
of excess investment cost
|
(60
|
)
|
(60
|
)
|
(120
|
)
|
(120
|
)
|
||||
Equity
in PT Smelting earnings (losses) reported in
|
||||||||||||
FCX’s
consolidated financial statements
|
$
|
2,562
|
$
|
(2,548
|
)
|
$
|
5,158
|
$
|
(2,906
|
)
|
Current
Programa
|
|||||||||
Period
|
Total
Shares
Purchased
|
Average
Price Paid Per Share
|
Shares
Purchased
|
Shares
Available for Purchase
|
|||||
April
1 to 30, 2005
|
1,349,200
|
$
|
34.57
|
1,349,200
|
15,266,200
|
||||
May
1 to 31, 2005
|
1,022,000
|
32.87
|
1,022,000
|
14,244,200
|
|||||
June
1 to 30, 2005
|
-
|
-
|
-
|
14,244,200
|
|||||
Total
|
2,371,200
|
33.83
|
2,371,200
|
||||||
a. |
In
October 2003, our Board of Directors approved a new open market share
purchase program for up to 20 million shares, which replaced our
previous
program. The program does not have an expiration
date.
|
Votes
Cast For
|
Authority
Withheld
|
|
1.
Election of Directors:
|
||
Robert
J. Allison, Jr.
|
152,377,020
|
10,156,619
|
Robert
A. Day
|
160,601,371
|
1,932,268
|
H.
Devon Graham, Jr.
|
155,461,400
|
7,072,239
|
Bobby
Lee Lackey
|
155,410,168
|
7,123,471
|
Gabrielle
K. McDonald
|
156,386,530
|
6,147,109
|
James
R. Moffett
|
159,491,805
|
3,041,834
|
B.
M. Rankin, Jr.
|
156,320,889
|
6,212,750
|
J.
Stapleton Roy
|
156,390,264
|
6,143,735
|
J.
Taylor Wharton
|
155,465,455
|
7,068,184
|
For
|
Against
|
Abstentions
|
Broker
Non-Votes
|
|
2.
Ratification of Ernst & Young LLP as
|
||||
independent
auditors
|
161,140,536
|
212,899
|
981,657
|
-
|
3.
Proposal to adopt 2005 Annual Incentive
|
||||
Plan
|
146,707,677
|
14,409,593
|
1,217,822
|
-
|
4.
Stockholder proposal regarding a
|
||||
majority
vote requirement to elect
|
||||
directors
|
70,173,503
|
63,573,342
|
1,415,383
|
27,172,864
|
5.
Stockholder proposal urging
|
||||
management
review its policies
|
||||
relating
to financial support of the
|
||||
Indonesian
Government security
|
||||
personnel
|
8,956,505
|
116,455,414
|
9,750,309
|
27,172,864
|
3.1
|
Amended
and Restated Certificate of Incorporation of Freeport-McMoRan Copper
&
Gold Inc. (FCX). Incorporated by reference to Exhibit 3.1 to the
Quarterly
Report on Form 10-Q of FCX for the quarter ended March 31, 2002 (the
FCX
2002 First Quarter Form 10-Q).
|
|
3.2
|
Certificate
of Amendment to Amended and Restated Certificate of Incorporation
of FCX.
Incorporated by reference to Exhibit 3.1 to the Quarterly Report
on Form
10-Q of FCX for the quarter ended March 31, 2003 (the FCX 2003 First
Quarter Form 10-Q).
|
|
3.3
|
Amended
By-Laws of FCX dated as of February 3, 2004. Incorporated by reference
to
Exhibit 3.3 to the Annual Report on Form 10-K of FCX for the fiscal
year
ended December 31, 2003 (the FCX 2003 Form 10-K).
|
|
4.1
|
Deposit
Agreement dated as of January 15, 1994, among FCX, Mellon, as Depositary,
and holders of depositary receipts (Gold-Denominated II Depositary
Receipts) evidencing certain Depositary Shares, each of which, in
turn,
represented 0.05 shares of Gold-Denominated Preferred Stock II.
Incorporated by reference to Exhibit 4.5 to the Quarterly Report
on Form
10-Q of FCX for the quarter ended June 30, 2002 (the FCX 2002 Second
Quarter Form 10-Q).
|
|
4.2
|
Form
of Gold-Denominated II Depositary Receipt. Incorporated by reference
to
Exhibit 4.6 to the FCX 2002 Second Quarter Form 10-Q.
|
|
4.3
|
Deposit
Agreement dated as of July 25, 1994, among FCX, Mellon, as Depositary,
and
holders of depositary receipts (Silver-Denominated Depositary Receipts)
evidencing certain Depositary Shares, each of which, in turn, initially
represented 0.025 shares of Silver-Denominated Preferred Stock.
Incorporated by reference to Exhibit 4.7 to the FCX 2002 Second Quarter
Form
10-Q.
|
|
4.4
|
Form
of Silver-Denominated Depositary Receipt. Incorporated by reference
to
Exhibit 4.8 to the FCX 2002 Second Quarter Form 10-Q.
|
|
4.5
|
Certificate
of Designations of 5½% Convertible Perpetual Preferred Stock of FCX.
Incorporated by reference to Exhibit 4.1 to the Current Report on
Form 8-K
of FCX dated March 30, 2004 and filed March 31, 2004.
|
|
4.6
|
Amended
and Restated Credit Agreement dated as of September 30, 2003, but
effective as of October 2, 2003, among FCX, PT Freeport Indonesia,
the
several financial institutions that are parties thereto, U.S. Bank
Trust
National Association, as PT Freeport Indonesia Trustee, J.P. Morgan
Securities Inc., as Arranger, and JPMorgan Chase Manhattan Bank as
Administrative Agent, Issuing Bank, Security Agent, JAA Security
Agent and
Documentation Agent. Incorporated by reference to Exhibit 4.7 to
the
Quarterly Report on Form 10-Q of FCX for the quarter ended September
30,
2003.
|
|
4.7
|
Senior
Indenture dated as of November 15, 1996, from FCX to The Chase Manhattan
Bank, as Trustee. Incorporated by reference to Exhibit 4.4 to the
Registration Statement on Form S-3 of FCX filed November 5, 2001
(the FCX
November 5, 2001 Form S-3).
|
4.8
|
First
Supplemental Indenture dated as of November 18, 1996, from FCX to
The
Chase Manhattan Bank, as Trustee, providing for the issuance of the
Senior
Notes and supplementing the Senior Indenture dated November 15, 1996,
from
FCX to such Trustee, providing for the issuance of the 7.50% Senior
Notes
due 2006 and the 7.20% Senior Notes due 2026. Incorporated by reference
to
Exhibit 4.5 to the FCX November 5, 2001 Form S-3.
|
|
4.9
|
Indenture
dated as of January 29, 2003, from FCX to The Bank of New York, as
Trustee, with respect to the 10⅛%
Senior Notes due 2010. Incorporated by reference to Exhibit 4.1 to
the
Current Report on Form 8-K of FCX dated February 6,
2003.
|
4.10
|
Indenture
dated as of February 11, 2003, from FCX to The Bank of New York,
as
Trustee, with respect to the 7% Convertible Senior Notes due 2011.
Incorporated by reference to Exhibit 4.1 to the Current Report
on Form 8-K
of FCX dated February 11, 2003 and filed February 25,
2003.
|
|
4.11
|
Indenture
dated as of February 3, 2004, from FCX to The Bank of New York,
as
Trustee, with respect to the 6⅞% Senior Notes due 2014. Incorporated by
reference to Exhibit 4.12 to the FCX 2003 Form 10-K.
|
|
4.12
|
Rights
Agreement dated as of May 3, 2000, between FCX and ChaseMellon
Shareholder
Services, L.L.C., as Rights Agent. Incorporated by reference to
Exhibit
4.26 to the Quarterly Report on Form 10-Q of FCX for the quarter
ended
March 31, 2000.
|
|
4.13
|
Amendment
No. 1 to Rights Agreement dated as of February 26, 2002, between
FCX and
Mellon Investor Services. Incorporated by reference to Exhibit
4.16 to the
FCX 2002 First Quarter Form 10-Q.
|
|
10.1
|
Contract
of Work dated December 30, 1991, between the Government of the
Republic of
Indonesia and PT Freeport Indonesia. Incorporated by reference
to Exhibit
10.1 to the FCX November 5, 2001 Form S-3.
|
|
10.2
|
Contract
of Work dated August 15, 1994, between the Government of the Republic
of
Indonesia and PT Irja Eastern Minerals Corporation. Incorporated
by
reference to Exhibit 10.2 to the FCX November 5, 2001 Form
S-3.
|
|
10.3
|
Participation
Agreement dated as of October 11, 1996, between PT Freeport Indonesia
and
P.T. RTZ-CRA Indonesia with respect to a certain contract of work.
Incorporated by reference to Exhibit 10.4 to the FCX November 5,
2001 Form
S-3.
|
|
10.4
|
Agreement
dated as of October 11, 1996, to Amend and Restate Trust Agreement
among
PT Freeport Indonesia, FCX, the RTZ Corporation PLC, P.T. RTZ-CRA
Indonesia, RTZ Indonesian Finance Limited and First Trust of New
York,
National Association, and The Chase Manhattan Bank, as Administrative
Agent, JAA Security Agent and Security Agent. Incorporated by reference
to
Exhibit 10.3 to the Current Report on Form 8-K of FCX dated November
13,
1996 and filed November 15, 1996.
|
|
10.5
|
Concentrate
Purchase and Sales Agreement dated effective December 11, 1996,
between PT
Freeport Indonesia and PT Smelting. Incorporated by reference to
Exhibit
10.3 to the FCX November 5, 2001 Form S-3.
|
|
10.6
|
Second
Amended and Restated Joint Venture and Shareholders’ Agreement dated as of
December 11, 1996, among Mitsubishi Materials Corporation, Nippon
Mining
and Metals Company, Limited and PT Freeport Indonesia. Incorporated
by
reference to Exhibit 10.5 to the FCX November 5, 2001 Form
S-3.
|
|
10.7
|
Settlement
Agreement dated December 17, 2004, between Underwriters Subscribing
to
Certain Policies Reinsuring the Original Policy, Freeport-McMoRan
Insurance Company Limited, FM Services Company (FMS) and FCX. Incorporated
by reference to Exhibit 10.7 to the Annual Report on Form 10-K
of FCX for
the fiscal year ended December 31, 2004 (the FCX 2004 Form
10-K).
|
|
Executive
Compensation Plans and Arrangements (Exhibits 10.8 through
10.55)
|
||
10.8
|
Annual
Incentive Plan of FCX as amended effective February 2, 1999. Incorporated
by reference to Exhibit 10.11 to the Annual Report on Form 10-K
of FCX for
the fiscal year ended December 31, 1998 (the FCX 1998 Form
10-K).
|
|
10.9
|
FCX
Performance Incentive Awards Program as amended effective February
2,
1999. Incorporated by reference to Exhibit 10.13 to the FCX 1998
Form
10-K.
|
|
10.10
|
FCX
President’s
Award Program. Incorporated by reference to Exhibit 10.7 to the
FCX
November 5, 2001 Form S-3.
|
10.11
|
FCX
Adjusted Stock Award Plan. Incorporated by reference to Exhibit
10.12 to
the FCX 2003 Form 10-K.
|
|
10.12
|
FCX
1995 Stock Option Plan. Incorporated by reference to Exhibit
10.13 to the
FCX 2003 Form 10-K.
|
|
10.17
|
FCX
1999 Long-Term Performance Incentive Plan. Incorporated by reference
to
Exhibit 10.19 to the Annual Report of FCX on Form 10-K for the
year ended
December 31, 1999 (the FCX 1999 Form 10-K).
|
|
10.18
|
FCX
Stock Appreciation Rights Plan dated May 2, 2000. Incorporated
by
reference to Exhibit 10.20 to the Quarterly Report on Form 10-Q
of FCX for
the quarter ended June 30, 2001 (the FCX 2001 Second Quarter
Form
10-Q).
|
|
10.25
|
FCX
Director Compensation. Incorporated by reference to Exhibit 10.25
to the
FCX 2004 Form 10-K.
|
|
10.26
|
FCX
Supplemental Executive Retirement Plan dated February 26, 2004.
Incorporated by reference to Exhibit 10.26 to the FCX 2004 Form
10-K.
|
|
10.27
|
Amendment
No. 1 to FCX Supplemental Executive Retirement Plan. Incorporated
by
reference to Exhibit 10.1 to the Current Report on Form 8-K of
FCX dated
May 3, 2005.
|
|
10.28
|
FCX
2005 Annual Incentive Plan. Incorporated by reference to Exhibit
10.1 to
the Current Report on Form 8-K of FCX dated May 5,
2005.
|
|
10.29
|
Amended
Financial Counseling and Tax Return Preparation and Certification
Program
of FCX. Incorporated by reference to Exhibit 10.18 to the FCX
2003 First
Quarter Form 10-Q.
|
|
10.30
|
FM
Services Company Performance Incentive Awards Program as amended
effective
February 2, 1999. Incorporated by reference to Exhibit 10.19
to the FCX
1998 Form 10-K.
|
|
10.31
|
Amended
FM Services Company Financial Counseling and Tax Return Preparation
and
Certification Program. Incorporated by reference to Exhibit 10.20
to the
FCX 2003 First Quarter Form 10-Q.
|
|
10.32
|
Consulting
Agreement dated as of December 22, 1988, with Kissinger Associates,
Inc.
(Kissinger Associates). Incorporated by reference to Exhibit
10.21 to the
Annual Report on Form 10-K of FCX for the fiscal year ended December
31,
1997 (the FCX 1997 Form 10-K).
|
|
10.33
|
Letter
Agreement dated May 1, 1989, with Kent Associates, Inc. (Kent
Associates,
predecessor in interest to Kissinger Associates). Incorporated
by
reference to Exhibit 10.22 to the FCX 1997 Form
10-K.
|
10.34
|
Letter
Agreement dated January 27, 1997, among Kissinger Associates,
Kent
Associates, FCX, Freeport-McMoRan Inc., and FMS. Incorporated
by reference
to Exhibit 10.26 to the Annual Report on Form 10-K of FCX for
the fiscal
year ended December 31, 2001 (the FCX 2001 Form 10-K).
|
|
10.35
|
Supplemental
Consulting Agreement with Kissinger Associates and Kent Associates,
effective as of January 1, 2005. Incorporated by reference
to Exhibit 10.2
to the Current Report on Form 8-K of FCX filed on December
30, 2004 (the
FCX December 30, 2004 Form 8-K).
|
|
10.36
|
Agreement
for Consulting Services between FTX and B. M. Rankin, Jr. effective
as of
January 1, 1990 (assigned to FMS as of January 1, 1996). Incorporated
by
reference to Exhibit 10.24 to the FCX 1997 Form 10-K.
|
|
10.37
|
Supplemental
Agreement between FMS and B. M. Rankin, Jr. dated December
15, 1997.
Incorporated by reference to Exhibit 10.25 to the FCX 1997
Form
10-K.
|
|
10.38
|
Supplemental
Letter Agreement between FMS and B. M. Rankin, Jr., effective
as of
January 1, 2005. Incorporated by reference to Exhibit 10.36
to the FCX
2004 Form 10-K.
|
|
10.39
|
Letter
Agreement effective as of January 7, 1997, between Senator
J. Bennett
Johnston, Jr. and FMS. Incorporated by reference to Exhibit
10.31 to the
FCX 2001 Form 10-K.
|
|
10.40
|
Supplemental
Letter Agreement dated July 14, 2003, between J. Bennett Johnston,
Jr. and
FMS. Incorporated by reference to Exhibit 10.28 to the Quarterly
Report on
Form 10-Q of FCX for the quarter ended June 30, 2003.
|
|
10.41
|
Supplemental
Consulting Agreement between FMS and J. Bennett Johnston, Jr.,
effective
as of January 1, 2005. Incorporated by reference to Exhibit
10.1 to the
FCX December 30, 2004 Form 8-K.
|
|
10.42
|
Supplemental
Letter Agreement between FMS and J. Bennett Johnston, Jr.,
dated January
18, 2005. Incorporated by reference to Exhibit 10.40 to the
FCX 2004 Form
10-K.
|
|
10.43
|
Letter
Agreement dated November 1, 1999, between FMS and Gabrielle
K. McDonald.
Incorporated by reference to Exhibit 10.33 to the FCX 1999
Form
10-K.
|
|
10.44
|
Supplemental
Letter Agreement, between FMS and Gabrielle K. McDonald, effective
as of
January 1, 2005. Incorporated by reference to Exhibit 10.3
to the FCX
December 30, 2004 Form 8-K.
|
|
10.45
|
Executive
Employment Agreement dated April 30, 2001, between FCX and
James R.
Moffett. Incorporated by reference to Exhibit 10.35 to the
FCX 2001 Second
Quarter Form 10-Q.
|
|
10.46
|
Executive
Employment Agreement dated April 30, 2001, between FCX and
Richard C.
Adkerson. Incorporated by reference to Exhibit 10.36 to the
FCX 2001
Second Quarter Form 10-Q.
|
|
10.47
|
Change
of Control Agreement dated April 30, 2001, between FCX and
James R.
Moffett. Incorporated by reference to Exhibit 10.37 to the
FCX 2001 Second
Quarter Form 10-Q.
|
|
10.48
|
Change
of Control Agreement dated April 30, 2001, between FCX and
Richard C.
Adkerson. Incorporated by reference to Exhibit 10.38 to the
FCX 2001
Second Quarter Form 10-Q.
|
|
10.49
|
First
Amendment to Executive Employment Agreement dated December
10, 2003,
between FCX and James R. Moffett. Incorporated by reference
to Exhibit
10.36 to the FCX 2003 Form 10-K.
|
|
10.50
|
First
Amendment to Executive Employment Agreement dated December
10, 2003,
between FCX and Richard C. Adkerson. Incorporated by reference
to Exhibit
10.37 to the FCX 2003 Form 10-K.
|
|
10.51
|
First
Amendment to Change of Control Agreement dated December 10,
2003, between
FCX and James R. Moffett. Incorporated by reference to Exhibit
10.38 to
the FCX 2003 Form 10-K.
|
|
10.52
|
First
Amendment to Change of Control Agreement dated December 10,
2003, between
FCX and Richard C. Adkerson. Incorporated by reference to Exhibit
10.39 to
the FCX 2003 Form 10-K.
|
10.53
|
Change
of Control Agreement dated February 3, 2004, between FCX and
Michael J.
Arnold. Incorporated by reference to Exhibit 10.40 to the FCX
2003 Form
10-K.
|
|
10.54
|
Change
of Control Agreement dated February 3, 2004, between FCX and
Mark J.
Johnson. Incorporated by reference to Exhibit 10.41 to the
FCX 2003 Form
10-K.
|
|
10.55
|
Change
of Control Agreement dated February 3, 2004, between FCX and
Kathleen L.
Quirk. Incorporated by reference to Exhibit 10.42 to the FCX
2003 Form
10-K.
|