Freeport-mcmoran Copper & Gold Inc. Reports
Second-quarter and Six-month 2002 Results
NEW ORLEANS----July 18, 2002--Freeport-McMoRan Copper & Gold Inc. (NYSE:
FCX - News):
HIGHLIGHTS
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Second-quarter 2002 earnings of $0.04 net income per share, including a $0.06
per share non-cash charge for euro currency translation adjustments; prior year
earnings were $0.25 per share
Second-quarter 2002 sales: 350.4 million pounds of copper; 393,700 ounces of
gold vs. second-quarter 2001 sales: 389.8 million pounds of copper; 813,600
ounces of gold
Estimated third-quarter 2002 sales: 420 million pounds of copper, approximately
20 percent increase from second quarter; 800,000 ounces of gold, over 200
percent increase from second quarter
Estimated sales for 2002 are 1.5 billion pounds of copper and 2.2 million ounces
of gold
Operating cash flow: $132.1 million for second quarter; $152.8 million for first
six months; expect approximately $500 million for year 2002 at current copper
and gold prices
Net debt reductions: $80.4 million for second quarter; $60.4 million for first six
months; expect over $225 million for year 2002 at current copper and gold prices
Standard & Poor's raised FCX's corporate credit rating to "B" from "CCC+"
Combined Class A and Class B common shares into one class
-0-
Summary Financial Table
Second Quarter
Six Months
-------------------------------------------2002
2001
2002
2001
-------------------------------------------(In thousands, except per share amounts)
Revenues
$407,999
Operating income
122,410
Net income applicable to
common stock before
cumulative effect
adjustment (a)
5,576
Net income applicable to
common stock
5,576
Diluted net income per
share:
Before cumulative
$538,259
175,675
$800,679
209,953
$985,346
342,559
36,292
4,471
74,331
36,292
1,422
74,331
effect adjustment
Applicable to common
stock
Diluted average shares
outstanding
.04
.25
.03
.51
.04
.25
.01
.51
147,370
145,232
146,410
144,977
(a). Relates to FCX's change in its methodology used in the
determination of depreciation associated with its mining and milling
assets, effective January 1, 2002.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX - News) reported second-quarter
2002 net income applicable to common stock of $5.6 million, $0.04 per share, compared
with second-quarter 2001 net income of $36.3 million, $0.25 per share. For the six
months ended June 30, 2002, FCX reported net income applicable to common stock of
$1.4 million, $0.01 per share, including the cumulative effect of an accounting change of
$3.0 million, $0.02 per share, compared with net income of $74.3 million, $0.51 per
share, a year ago. FCX's 2002 results reflect its 90.6 percent ownership interest in its
Indonesian mining unit, PT Freeport Indonesia (PT-FI), compared with its 85.9 percent
ownership interest reflected in its 2001 results.
Mr. James R. Moffett, Chairman and CEO of FCX, said, "During the second quarter, our
Grasberg mine operations transitioned from the lower grade material which had been
mined in recent months to higher grade ore, which we expect to mine for the next several
quarters. As we previously reported, the sequencing in mining resulted in a delay in
accessing the anticipated higher-grade ore, and extremely heavy rainfall in late June
hindered production and delayed concentrate shipments. Our low-cost operations
generated over $132 million of operating cash flow in the second quarter of 2002. Ore
grades and sales volumes are expected to be much higher for the second half of 2002 and
we expect the second half gold sales to be twice the first half levels, which will
significantly enhance our second half results. At current copper and gold prices of $0.73
per pound and $316 per ounce, respectively, for the second half of the year, our operating
cash flow is expected to approximate $500 million for the year, which would allow FCX
to reduce its net debt by over $225 million."
PRODUCTION AND SALES. Weather delayed the loading of vessels at the port and
concentrate inventory included approximately 55,000 ounces of gold and 30 million
pounds of copper, net to PT-FI's interest, at June 30, 2002. PT-FI recorded sales of 350.4
million pounds of copper and 393,700 ounces of gold during the second quarter of 2002,
compared with 389.8 million pounds of copper and 813,600 ounces of gold during the
second quarter of 2001. Gold sales were lower because of the mining of lower grade ore,
as anticipated. Because of the nature of the Grasberg ore body, there are periods when the
sequencing of mining results in production from ore that is economical, but lower than
average in grade. In June, PT-FI returned to higher-grade ore and sales are expected to
increase over the remainder of 2002. PT-FI estimates third quarter copper sales will
approximate 420 million pounds and gold sales will approximate 800,000 ounces. PT-FI
expects its total sales for 2002 to approximate 1.5 billion pounds of copper and 2.2
million ounces of gold.
At June 30, 2002, FCX's concentrate sales included 130.0 million pounds of copper that
were priced at an average of $0.76 per pound and remain subject to final pricing over the
next several months. Each $0.01 change in the price realized from the June 30 price
would result in an approximate $0.7 million, $0.005 per share, effect on FCX's 2002 net
income.
Second-quarter 2002 adjustments to concentrate sales recognized in prior quarters
decreased revenues by $5.9 million ($3.0 million to net income, $0.02 per share) because
of metal volume adjustments based on final assays and final pricing of concentrates sold
in prior quarters, compared to an increase in the second quarter of 2001 totaling $0.7
million ($0.4 million to net income, $0.003 per share).
CASH PRODUCTION COSTS. Average unit net cash production costs, including gold
and silver credits, were $0.18 per pound of copper during the second quarter of 2002
compared to $0.00 per pound for the second quarter of 2001. Lower unit production and
delivery costs ($0.35 in second-quarter 2002 versus $0.37 in second-quarter 2001) were
more than offset by lower gold credits per pound of copper ($0.35 in second-quarter 2002
versus $0.57 in second-quarter 2001), primarily the result of lower gold grade. Quarterly
unit cash costs per pound of copper will fluctuate as a large portion of our production
costs do not vary significantly with the grade of the ore produced. During quarterly
periods when production is from ore that is relatively low in grade, but still economical,
our unit cash costs may be higher. As ore grade and resulting production and sales
increase during the remainder of 2002, we expect our unit net cash production costs to
decline significantly and average approximately $0.10 per pound of copper for the year,
assuming current gold prices of $316 per ounce and gold sales of 2.2 million ounces.
SMELTER OPERATIONS. FCX's investment in smelters serves an important role in its
concentrate marketing strategy. Approximately one-half of PT-FI's concentrate
production is sold to its affiliated smelters, Atlantic Copper and PT Smelting, and the
remainder is sold to other customers. Through downstream integration, FCX is able to
achieve operating hedges for changes in treatment charges for smelting and refining PTFI's copper concentrates. While the current low smelter treatment and refining charges
adversely affect the operating results of FCX's smelter operations, they benefit the
operating results of the mining operations of PT-FI. Taking into account taxes and
minority ownership interests, an equivalent change in smelting and refining charge rates
would essentially offset in FCX's consolidated operating results.
Atlantic Copper, FCX's wholly owned Spanish smelting unit, treated 242,500 metric tons
of concentrate in the second quarter of 2002 compared with 195,300 metric tons treated
in the year-ago quarter, when a scheduled 27-day major maintenance turnaround occurred
in April 2001. The impact of the turnaround on second-quarter 2001 was approximately
$15 million ($0.10 per share), including the effect of lower sales. Anodes production of
152.1 million pounds was 13 percent higher than the 134.3 million pounds in secondquarter 2001 and cathode production of 140.3 million pounds was 35 percent higher than
the 103.9 million pounds of cathode production in the second quarter of 2001. Unit
cathode cash production costs improved to $0.12 per pound in the 2002 second quarter
compared to $0.18 per pound in the 2001 second quarter. Atlantic Copper reported
operating income of $2.6 million for the second quarter of 2002, compared with an
operating loss of $13.5 million in the 2001 period.
FCX's net income for the second quarter of 2002 was adversely affected by the
weakening of the U.S. dollar in relation to the euro. The euro has strengthened from
US$0.87 per euro at March 31, 2002 to nearly US$1.00 per euro at June 30, 2002.
Atlantic Copper had net euro-denominated liabilities, primarily its retiree pension
obligation, approximating 70 million euros that, when translated into U.S. dollars using
current exchange rates, resulted in a translation loss. FCX recognized a $9.3 million,
$0.06 per share, non-cash charge in the second quarter of 2002, compared with a $1.2
million, $0.01 per share, non-cash gain in the second quarter of 2001. These amounts are
reflected as "Other income (expense), net" in the income statements. While exchange rate
effects of Atlantic Copper's pension obligation are required to be reported in current net
income, the exchange rate effects of Atlantic Copper's operating cost euro hedges are
reported as a component of shareholders' equity, not net income, until realized. These
hedges cover approximately 60 percent of Atlantic Copper's projected euro-denominated
operating costs through 2003 and resulted in a $12.1 million, $0.08 per share, positive
adjustment to stockholders' equity in the second quarter of 2002.
Profits on intercompany sales from PT-FI to Atlantic Copper that remain in Atlantic
Copper's inventories are deferred and recognized as income when the related copper
concentrate is processed and sold. The impact of deferred intercompany sales to Atlantic
Copper resulted in reductions to FCX's net income totaling $3.3 million, $0.02 per share,
in the second quarter of 2002, compared with $0.2 million, $0.001 per share, in the
second quarter of 2001.
PT Smelting, PT-FI's 25 percent-owned Indonesian smelting unit, treated 130,600 metric
tons of concentrate in the second quarter of 2002, 27 percent less than the 179,700 metric
tons treated in the 2001 quarter. The lower level of concentrate treated in 2002 and the
resulting decline in anode and cathode production resulted from a scheduled maintenance
turnaround. PT Smelting's copper cathode cash production costs per pound totaled $0.25
in the 2002 second quarter compared with $0.12 in the 2001 second quarter, reflecting the
impact of the 28-day maintenance turnaround in May 2002. FCX's second-quarter 2002
results included the recognition of $0.5 million of previously deferred income associated
with PT-FI's sales to PT Smelting, compared with $1.0 million in the second quarter of
2001. PT-FI's equity interest in PT Smelting's net losses totaled $2.5 million, $0.02 per
share, for the second quarter of 2002 and $1.4 million, $0.01 per share, in the 2001
quarter.
CASH FLOW AND DEBT REPAYMENTS. FCX generated operating cash flows of
$132.1 million during the second quarter of 2002. FCX's net debt was reduced by $80.4
million and $49.6 million was used for capital expenditures. For the six months ended
June 30, 2002, FCX generated $152.8 million of operating cash flow, and net debt was
reduced by $60.4 million. Net debt, including mandatorily redeemable preferred stock
and net of investments totaled $2,599 million at June 30, 2002, compared with $2,659
million at December 31, 2001. At current copper and gold prices of $0.73 per pound and
$316 per ounce, respectively, for the second half of the year, our operating cash flow is
expected to approximate $500 million for the year, which would allow FCX to reduce its
net debt by over $225 million.
IMPROVED STANDARD & POOR'S CREDIT RATINGS. On May 2, 2002, Standard
& Poor's raised its corporate credit rating on FCX following its reassessment of the
company's exposure to risks, including S&P's assessment of the Indonesian political
climate. The rating was raised to "B" from "CCC+," making FCX's rating higher than
S&P's Indonesian sovereign debt rating. Additionally, on June 3, 2002, Standard & Poor's
assigned its "B" rating to FCX's bank credit facility allowing for a 50-basis-point
reduction in FCX's bank borrowing costs. FCX's bank borrowing rate currently
approximates 5.3 percent.
COMBINATION OF CLASS A AND CLASS B COMMON STOCK INTO ONE
CLASS. As previously announced on May 2, 2002, at FCX's annual shareholder meeting
the shareholders approved the combination of Class A shares and Class B shares into one
class. The transaction simplified FCX's capital structure and has enhanced trading
liquidity in the shares.
APPOINTMENT OF INDEPENDENT PUBLIC ACCOUNTANTS. As previously
reported, FCX's Board of Directors, upon the recommendation of its Audit Committee,
approved the appointment of Ernst & Young LLP as its independent public accountants
to audit the company's 2002 financial statements. Ernst & Young replaced Arthur
Andersen LLP, which served as the company's independent auditors since 1988. Arthur
Andersen advised FCX that it would no longer audit companies registered with the
Securities and Exchange Commission subsequent to August 31, 2002. There were no
disagreements between FCX and Arthur Andersen on any matters of accounting
principles or practices, financial statement disclosures, or auditing scope or procedures.
The Board, upon the recommendation of the Audit Committee, also reappointed the firm
of PricewaterhouseCoopers LLP to continue to perform the company's internal audit
function. PricewaterhouseCoopers has served as the company's internal auditors since
1993.
FCX explores for, develops, mines and processes ore containing copper, gold and silver
in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia.
Cautionary Statement. This press release contains forward-looking statements in which
we discuss factors we believe may affect our performance in the future. Forward-looking
statements are all statements other than historical facts, such as statements regarding
anticipated production, ore grades and sales volumes, projected unit production costs,
estimated operating cash flows, projected debt reductions and the impact of copper and
gold price changes. Additionally, important factors that might cause future results to
differ from these projections include industry risks, commodity prices, Indonesian
political risks, weather related and currency translation risks and other factors described
in FCX's Annual Report on Form 10-K for the year ended December 31, 2001 filed with
the Securities and Exchange Commission.
A copy of this press release is available on our web site at "www.fcx.com." A conference
call with securities analysts about second-quarter 2002 results is scheduled for today at
10:00 a.m. EDT. The conference call will be broadcast on the Internet. Interested parties
may listen to the conference call live by accessing the call on "www.fcx.com." A replay
of the call will be available through Friday, August 2, 2002.
FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
(Page 1 of 2)
Second Quarter
---------------------
Six Months
------------------
2002
--------
2001
--------
PT Freeport Indonesia, Net of Rio Tinto's Interest
Copper
Production (000s of
recoverable pounds)
374,500
359,100
736,200
Production (metric tons)
169,900
162,900
333,900
Sales (000s of
recoverable pounds)
350,400
389,800
723,200
Sales (metric tons)
158,900
176,800
328,000
Average realized price
per pound
$.75
$.72
$.74
Gold
Production (recoverable
ounces)
444,200
751,500
1,482,400
Sales (recoverable
ounces)
393,700
813,600
1,458,300
Average realized price
per ounce
$308.76
$267.04
$265.11
Silver
Production (recoverable
ounces)
1,029,900
987,800
2,137,000
Sales (recoverable
ounces)
951,600 1,088,800
2,106,500
Average realized price
per ounce
$4.55
$4.26
$4.31
2002
--------
671,200
304,500
646,500
293,200
$.74
780,000
730,300
$300.17
1,802,400
1,727,800
$4.48
2001
-------
PT Freeport Indonesia Gross Profit per Pound of Copper (cents):
Average realized price
74.6
72.2
73.6
73.8
---------------------------Production costs:
Site production and
delivery
34.9(a)
36.6(a)
38.8(a)
35.8(a)
Gold and silver credits
(35.2)
(57.1)
(35.2)
(54.6)
Treatment charges
17.5
18.3
18.4
18.2
Royalty on metals
1.2
2.0
1.1
2.0
---------------------------Cash production costs
18.4
(0.2)
23.1
1.4
Depreciation and
amortization
14.9
18.0
14.8
18.0
---------------------------Total production costs
33.3
17.8
37.9
19.4
---------------------------Adjustments, primarily for
copper pricing on prior
period open sales
0.1
(1.0)
1.9
(0.2)
---------------------------Gross profit per pound of
copper
41.4
53.4
37.6
54.2
========
========
========
========
a.
Net of deferred mining costs totaling $7.7 million or 2.2 cents
per pound in the second quarter of 2002, $9.7 million or 2.5 cents
per pound in the second quarter of 2001, $12.4 million or 1.9
cents per pound in the first six months of 2002 and $18.0 million
or 2.5 cents per pound in the first six months of 2001.
FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
(Page 2 of 2)
Second Quarter
-------------------
Six Months
------------------
2002
2001
2002
2001
--------------PT Freeport Indonesia, 100% Operating Statistics
Ore milled (metric tons per
day)
239,600
240,000
234,800
Average ore grade
Copper (percent)
1.14
1.04
1.08
Gold (grams per metric
ton)
.98
1.57
1.62
Gold (ounce per metric
ton)
.032
.050
.052
Silver (grams per metric
ton)
3.63
3.33
3.39
Silver (ounce per metric
ton)
.117
.107
.109
Recovery rates (percent)
Copper
87.1
86.6
87.9
Gold
86.3
89.3
88.6
Silver
57.0
59.9
61.2
Copper
Production (000s of
recoverable pounds)
457,600
412,400
847,300
Production (metric tons)
207,600
187,100
384,300
Sales (000s of
recoverable pounds)
428,300
447,700
832,600
Sales (metric tons)
194,300
203,100
377,700
Gold (recoverable ounces)
Production
581,000
982,500
1,928,500
Sales
516,200 1,061,800
1,894,800
Silver (recoverable ounces)
Production
1,178,100 1,136,600
2,344,200
Sales
1,089,700 1,238,400
2,316,100
Atlantic Copper
Concentrate treated (metric
tons)
242,500
195,300
400,800
Anodes
Production (000s of
pounds)
152,100
134,300
278,300
--------
241,900
1.02
.85
.027
3.19
.103
86.4
86.0
57.0
814,700
369,500
784,700
355,900
1,000,000
936,100
2,039,300
1,952,600
500,800
322,200
-------
Production (metric tons)
126,200
Sales (000s of pounds)
29,700
Sales (metric tons)
13,500
Cathodes
Production
(000s of pounds)
238,000
Production (metric tons)
108,000
Sales, including wire
rod and wire
(000s of pounds)
264,700
Sales, including wire
rod and wire
(metric tons)
120,100
Gold sales in anodes and
slimes (ounces)
289,200
Cathode cash production cost
per pound before hedging
$.16
69,000
60,900
146,100
15,500
29,700
47,000
7,000
13,500
21,400
140,300
103,900
276,500
63,600
47,100
125,400
140,400
129,100
276,200
63,700
58,600
125,300
159,800
181,000
411,400
$.12
$.18
$.11
PT Smelting, 25%-owned by PT Freeport Indonesia
Concentrate treated
(metric tons)
130,600
179,700
341,400
Anodes
Production
(000s of pounds)
83,400
120,600
234,800
Production (metric tons)
37,800
54,700
106,500
Sales (000s of pounds)
2,300
2,400
7,200
Sales (metric tons)
1,000
1,100
3,300
Cathodes
Production
(000s of pounds)
92,400
114,900
227,400
Production (metric tons)
41,900
52,100
103,100
Sales (000s of pounds)
91,700
118,200
228,000
Sales (metric tons)
41,600
53,600
103,400
Cathode cash production cost
per pound
$.25
$.12
$.12
FREEPORT-McMoRan COPPER & GOLD INC.
308,300
195,700
88,800
4,900
2,200
210,200
95,300
203,700
92,400
$.18
STATEMENTS OF NET INCOME (Unaudited)
---------
--------
Three Months Ended
Six Months Ended
June 30,
June 30,
--------------------------------------2002
2001
2002
2001
---------------------------------------------------(In Thousands, Except Per Share Amounts)
Revenues
$985,346(a)
Cost of sales:
Production and delivery
Depreciation and
amortization
Total cost of sales
Exploration expenses
General and
administrative expenses
Total costs and
expenses
Operating income
Equity in PT Smelting
losses
Interest expense, net
Other income (expense),
net
3,120(b)
Income before income
taxes and minority
interests
Provision for income
taxes
Minority interests in net
income of consolidated
subsidiaries
Net income before
cumulative effect of
accounting change
Cumulative effect of
accounting change, net
Net income
Preferred dividends
Net income applicable to
common stock
$
$407,999(a) $538,259(a) $800,679(a)
206,124
265,703
441,041
461,317
62,305
-------268,429
800
78,319
-------344,022
2,420
115,359
-------556,400
1,554
146,448
-------607,765
4,471
16,360
--------
16,142
--------
32,772
--------
30,551
--------
285,589
-------122,410
362,584
-------175,675
590,726
-------209,953
642,787
-------342,559
(2,537)
(43,492)
(9,331)(b)
(1,393)
(41,393)
(57)(b)
(3,359)
(87,774)
(2,697)
(89,830)
(9,295)(b)
--------
--------
--------
--------
67,050
132,832
109,525
253,152
(46,040)
(72,408)
(74,854)
133,023)
(5,975)
--------
(15,007)
--------
(11,529)
--------
(27,608)
--------
15,035
45,417
23,142
92,521
--------15,035
(9,459)
--------
--------45,417
(9,125)
--------
(3,049)
-------20,093
(18,671)
--------
--------92,521
(18,190)
--------
5,576
========
$ 36,292
========
$ 1,422
========
$ 74,331
========
Net income per share of common stock
Basic:
Before accounting
change
$0.04
Cumulative effect of
accounting change
--------Net income per share
of common stock
$0.04
========
Diluted:
Before accounting
change
$0.04
Cumulative effect of
accounting change
--------Net income per share
of common stock
$0.04
========
Average common shares
outstanding:
Basic
Diluted
a.
b.
144,698
========
147,370
========
$0.25
$0.03
$0.52
---------
(0.02)
--------
---------
$0.25
========
$0.01
========
$0.52
========
$0.25
$0.03
$0.51
---------
(0.02)
--------
---------
$0.25
========
$0.01
========
$0.51
========
143,954
========
145,232
========
144,403
========
146,410
========
143,930
========
144,977
========
Includes adjustments to prior period concentrate sales totaling
$(5.9) million in the 2002 quarter, $0.7 million in the 2001
quarter, $5.4 million in the 2002 six-month period and $(2.7)
million in the 2001 six-month period.
Includes net benefits/(charges) totaling $(9.3) million in the
2002 quarter, $1.2 million in the 2001 quarter, $(8.7) million in
the 2002 six-month period and $4.3 million in the 2001 six-month
period associated with the impact of movements in the US$/euro
exchange rate on Atlantic Copper's non-operating euro-denominated
liabilities.
FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED BALANCE SHEETS (Unaudited)
June 30,
December 31,
2002
2001
--------------------(In Thousands)
ASSETS
Current Assets:
Cash and cash equivalents
Restricted investments
Accounts receivable
Inventories
Prepaid expenses and other
Total current assets
Property, plant, equipment and
development costs, net
$
8,663
49,809
146,638
388,128
5,993
---------599,231
3,356,677
$
7,587
49,809
118,611
369,188
3,075
---------548,270
3,409,687
Restricted investments
Deferred mining costs
Investment in PT Smelting
Other assets
Total assets
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities
Current portion of long-term debt
and short-term borrowings
Unearned customer receipts
Rio Tinto share of joint venture
cash flows
Accrued interest payable
Accrued income taxes
Total current liabilities
Long-term debt, less current portion:
FCX and PT Freeport Indonesia
credit facilities
Convertible senior notes
Senior notes
Infrastructure asset financings
Atlantic Copper debt
Equipment and other loans
Accrued postretirement benefits and
other liabilities
Deferred income taxes
Minority interests
Redeemable preferred stock
Stockholders' equity
Total liabilities and stockholders'
equity
70,268
60,010
54,926
51,216
---------$4,192,328
==========
92,079
47,590
57,194
57,109
---------$4,211,929
==========
$
$
268,891
307,526
139,697
56,426
205,420
33,422
67,423
31,527
7,965
---------571,929
33,646
31,394
17,019
---------628,427
505,000
603,750
450,000
333,933
179,814
44,157
475,371
603,750
450,000
355,970
198,089
50,000
114,785
680,776
105,162
462,504
140,518
----------
119,404
671,015
92,955
462,504
104,444
----------
$4,192,328
==========
$4,211,929
==========
FREEPORT-McMoRan COPPER & GOLD INC.
STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30,
-------------------------2002
2001
------------------(In Thousands)
Cash flow from operating activities:
Net income
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization
Cumulative effect of accounting
$
20,093
115,359
$
92,521
146,448
change
Deferred income taxes
Equity in PT Smelting losses
Minority interests' share of net
income
Change in deferred mining costs
Currency translation adjustments
Amortization of deferred financing
costs
Other
(Increases) decreases in working
capital:
Accounts receivable
Inventories
Prepaid expenses and other
Accounts payable and accrued
liabilities
Rio Tinto share of joint venture
cash flows
Accrued income taxes
Increase in working capital
Net cash provided by operating
activities
Cash flow from investing activities:
PT Freeport Indonesia capital
expenditures
Atlantic Copper capital expenditures
Sale of restricted investments
Other
Net cash used in investing activities
Cash flow from financing activities:
Proceeds from debt
Repayments of debt
Cash dividends paid:
Preferred stock
Minority interests
Purchases of FCX common shares
Loans to Nusamba
Proceeds from exercised stock options
Other
Net cash used in financing activities
Net increase in cash and cash
equivalents
Cash and cash equivalents at
beginning of year
Cash and cash equivalents at end of
3,049
25,368
3,359
-42,086
2,820
11,529
(12,420)
8,726
27,608
(18,045)
(4,346)
6,005
6,123
1,633
5,998
(21,076)
(18,278)
(2,894)
(28,255)
15,371
6,861
(13,145)
12,214
31,087
(10,050)
--------(34,356)
---------
(35,796)
23,706
--------(5,899)
---------
152,835
---------
290,824
---------
(80,215)
(1,254)
(73,339)
(7,329)
23,678
(156)
--------(57,947)
---------
-4,572
--------(76,096)
---------
314,631
(396,981)
103,758
(280,150)
(18,350)
---7,549
(661)
--------(93,812)
---------
(18,265)
(4,181)
(3,436)
(5,548)
572
(500)
--------(207,750)
---------
1,076
6,978
7,587
---------
7,968
---------
period
$
8,663
=========
Contact:
Freeport-McMoRan Copper & Gold Inc., New Orleans
Financial Contact: Chris D. Sammons, 504/582-4474
or
Media Contact: William L. Collier, 504/582-1750
$ 14,946
=========