Freeport-McMoRan 2011 Annual Report Download - page 20

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FCX has signicant reserves, resources and future development opportunities within its
portfolio of assets. FCX’s estimated consolidated recoverable proven and probable reserves as
of December 31, 2011, include 119.7 billion pounds of copper, 33.9 million ounces of gold,
3.42 billion pounds of molybdenum and 0.86 billion pounds of cobalt. ese estimates of
recoverable proven and probable reserves were determined using long-term average prices
of $2.00 per pound for copper, $750 per ounce for gold, $10 per pound for molybdenum and
$10 per pound for cobalt.
FCX’s operating mines and other properties also contain mineralized material that it believes
could be brought into production should market conditions warrant. As of December 31, 2011,
FCX identied estimated mineralized material totaling 115 billion pounds of incremental
contained copper, which was assessed using a long-term average copper price of $2.20 per pound.
FCX continues to aggressively pursue opportunities to convert this mineralized material into
reserves, future production and cash ow.
Investment in
Attractive
Development
Projects
Cash Flows/
Returns
Mineral
Resources
Reserve
Additions
Production
Growth
VALUE CREATION FOCUS
RESERVES AND MINERALIZED MATERIAL
OUR EXPLORATION
PROGRAM HAS MADE
SIGNIFICANT ADDITIONS
TO OUR RESERVE
BASE. MUCH OF OUR
GLOBAL EXPLORATION
EFFORT FOCUSES ON
OUR OWN BACKYARD,
WHERE WE PROBE THE
BOUNDARIES OF OUR
EXISTING ORE BODIES.
Photo: Core samples, Tenke
Fungurume, Democratic
Republic of Congo
18 | FREEPORT-MMR COPPER & GOLD INC.