Freeport-McMoRan 2003 Annual Report Download

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THE
STRENGTH
OF OUR
METALS
FREEPORT-McMoRan COPPER & GOLD INC.
2003 ANNUAL REPORT

Table of contents

  • Page 1
    THE STRENGTH OF OUR METALS FREEPORT-McMoRan COPPER & GOLD INC. 2003 ANNUAL REPORT

  • Page 2
    ... smelting and refining of copper. Our common stock trades on the New York Stock Exchange (NYSE) under the symbol "FCX." THE GRASBERG OPEN-PIT COPPER AND GOLD MINE IN PAPUA, INDONESIA. SUMMARY FINANCIAL HIGHLIGHTS Years Ended December 31, (In Thousands, Except Per Share Amounts) 2003 $2,212,165 823...

  • Page 3
    ... IN PT FREEPORT INDONESIA'S DEEP ORE ZONE (DOZ) underground mine, part of the Grasberg minerals complex, develop skills for careers in one of the world's largest mining operations. COPPER AND GOLD - THE METALS FOR WHICH WE EXPLORE, MINE, MILL, SHIP AND REFINE - ARE PART OF OUR COMPANY'S NAME AND...

  • Page 4
    ...2003 was a record year for the company and our shareholders. We sold 1.3 billion pounds of copper and 2.5 million ounces of gold net to the interests of PT Freeport Indonesia, our Indonesian mining affiliate. We reported revenues of $2.2 billion, the highest total ever, and record-low average annual...

  • Page 5
    James R. Moffett, Chairman of the Board (left) and Richard C. Adkerson, President and Chief Executive Officer (right), at the PT Freeport Indonesia mining operations in Papua, Indonesia. and we continue to conduct exploration activities to supplement our reserves. In 2003, we added to our proven ...

  • Page 6
    ... PT Freeport Indonesia's Deep Ore Zone (DOZ) underground mine nearly doubled last year, with an average of 40,500 metric tons of ore per day during 2003 compared with 21,800 metric tons of ore per day for 2002. DOZ operations continue to 4 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 7
    ... on Metals Net Cash Production Costs (Credits) 48¢ (70) 18 2 (2)¢ Co-Product Method* Copper Gold Silver (¢/lb) ($/oz) ($/oz) 26¢ - 10 1 37¢ $113 - 42 5 $160 $1 - 1 - $2 *Note: Allocations for co-product method based on 2003 revenues. Operations Overview FREEPORT-McMoRan COPPER & GOLD INC. 5

  • Page 8
    ... PRODUCTION AT THE DOZ UNDERGROUND MINE nearly doubled in 2003, with an average of 40,500 metric tons of ore per day. PT Freeport Indonesia is completing studies to increase capacity of the DOZ mine to 50,000 metric tons of ore per day. 6 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 9
    ... of FCX's 8 /4 % Convertible Senior Notes into 1 annual common stock dividend to $0.80 per share and authorized a new 20-million-share, open-market purchase program. Operating cash flows for 2003 totaled $572.1 million. In each of the last five years, FCX has generated in excess of $500 million in...

  • Page 10
    ... in 2003 compared to 719,600 metric tons in the year-ago period. Copper cathode cash production costs totaled $0.10 per pound for 2003, a reduction from $0.14 in 2002, making PT Smelting one of the lowest-cost smelters in the world. 8 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 11
    ... COPPER, GOLD AND SILVER, included in the slurry shown at right, is shipped from PT Freeport Indonesia's operations to smelters around the world, including FCX's affiliate Atlantic Copper, and PT Freeport Indonesia's 25-percent-owned PT Smelting. Operations Overview FREEPORT-McMoRan COPPER & GOLD...

  • Page 12
    ... Poydras Street, New Orleans, LA 70112, (504) 582-4000; or access our web site, www.fcx.com. PT FREEPORT INDONESIA'S GEOLOGISTS and mine planning experts focus on expanding geologic reserves in our minerals-rich Contract of Work areas in Papua. 10 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual...

  • Page 13
    Operations Overview FREEPORT-McMoRan COPPER & GOLD INC. 11

  • Page 14
    ... jobs provided. Community partnerships (children's programs pictured above left), public health initiatives (Banti hospital pictured above right), education and economic development initiatives represent the company's commitment in action. 12 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 15
    ... our Social, Employment and Human Rights Policy to building and maintaining positive relationships with our Papuan neighbors by providing opportunities for social, educational and economic development, and by supporting comprehensive, modern medical care and public health programs. The policy also...

  • Page 16
    ...on our Board of Directors. • To measure the effectiveness of our programs and to find ways to improve them, we have engaged during 2004 the International Center for Corporate Accountability to audit the implementation of our Social, Employment and Human Rights Policy. ATLANTIC COPPER, S.A. In 2003...

  • Page 17
    ... Freeport Indonesia and our joint venture partner contributed $22 million to the fund in 2003 for health, education, community facilities and business development in the local indigenous community. For our full report, "Working Toward Sustainable Development, 2003 Economic, Environmental and Social...

  • Page 18
    ...programs relating to the Company's social, employment and human rights policies, (c) safety and environmental programs, and (d) charitable and philanthropic contributions. MANAGEMENT James R. Moffett Chairman of the Board David R. Potter Executive Vice President, Exploration Dean T. Falgoust Vice...

  • Page 19
    ...to, this committee, with and without management present, to discuss the results of their audit work. Richard C. Adkerson President and Chief Executive Officer Kathleen L. Quirk Senior Vice President, Chief Financial Officer and Treasurer 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 17

  • Page 20
    ...,300 639,100 289,900 80,600 36,600 567,900 257,600 562,300 255,100 605,700 .11 $ 949,400 647,100 293,500 84,300 38,200 556,600 252,500 558,500 253,300 792,700 .13 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 21
    ...'s Gold-Denominated Preferred Stock. e. For a reconciliation of cathode cash production costs per pound to production costs applicable to sales reported in FCX's consolidated financial statements refer to "Product Revenues and Production Costs" in "Management's Discussion and Analysis." 2003 Annual...

  • Page 22
    ...In management's discussion and analysis, "we," "us" and "our" refer to Freeport-McMoRan Copper & Gold Inc. (FCX) and its consolidated subsidiaries. References to "aggregate" amounts mean the total of our share and Rio Tinto's share as our joint venture partner. The results of operations reported and...

  • Page 23
    ...2,488 3,000 2,500 2,000 1,500 1,000 500 2,228 Consolidated operating cash flows in 2005 are expected to benefit from the projected increase in PT Freeport Indonesia metal sales. Copper and Gold Markets 149 2000 8 2001 2002 116 2003 Debt, mandatorily redeemable preferred stock and guaranteed...

  • Page 24
    ..." and "smelting and refining" segments. Effective January 1, 2002, we changed our method of computing depreciation for PT Freeport Indonesia's mining and milling life-of-mine assets. Prior to January 1, 2002, PT Freeport Indonesia 22 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 25
    ... billion pounds and PT Freeport Indonesia's estimated share totaled 39.7 billion pounds. These estimates involve assumptions regarding future copper and gold prices, the geology of our mines, the mining methods we use and the related costs we incur to develop and mine our reserves. Changes in these...

  • Page 26
    ... Obligations" (see "New Accounting Standards"). SFAS No. 143 requires that we record the fair value of our estimated asset retirement obligations in the period incurred, with the cumulative effect of adopting SFAS No. 143 as of January 1, 24 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 27
    ... to $80.3 million in 2003 from $68.3 million in 2002. The increase relates to charges for costs associated with stock appreciation rights caused by an increase in our stock price, higher compensation costs and other costs. Estimated 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 25

  • Page 28
    ... in 2002 because of higher costs at Atlantic Copper and the parent company. Summaries of the significant components of our calculation of the consolidated provision for income taxes are shown below (in thousands, except percentages). 26 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 29
    ... Copper Gold Adjustments, primarily for copper pricing on prior year open sales Treatment charges, royalties and other Revenues - current year $1,519.0 146.4 134.9 (160.1) 55.1 0.6 48.7 $1,744.6 $1,414.1 24.4 98.0 85.0 (94.7) 14.5 (22.3) $1,519.0 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD...

  • Page 30
    ... to 3.5 percent at a copper price of $1.10 or more per pound. The Contract of Work royalty rate for gold and silver sales is 1.0 percent. In connection with our fourth concentrator mill expansion completed in 1998, PT Freeport Indonesia agreed to pay the Government of Indonesia voluntary additional...

  • Page 31
    ... with 2001 Record annual copper sales volumes of 1,522.3 million pounds for 2002 were 9 percent higher than the 1,399.1 million pounds in 2001. Revenues for 2002 also benefited from higher price realizations of $0.71 per pound of copper ($0.69 for 2001) and FREEPORT-McMoRan COPPER & GOLD INC. 29

  • Page 32
    ... recoverable ounces of silver. Approximately 126 million metric tons of the additions relate to additions to the Mill Level Zone ore body, resulting from PT Freeport Indonesia's 2003 drilling program. Our aggregate exploration budget for FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 33
    ... PT Freeport Indonesia's share of reserve additions replaced approximately 123 percent of its 2003 copper production, 24 percent of 2003 gold production and 245 percent of 2003 silver production. Estimated recoverable reserves were assessed using a copper price of $0.85 per pound and a gold price of...

  • Page 34
    ... 2001 primarily for past service costs for an employee benefit plan. Atlantic Copper's operating results also include a $1.2 million charge in 2002 and a $3.0 million charge in 2001 on currency hedging contracts maturing during the year. 2003 2002 2001 PT Freeport Indonesia sales to PT Smelting...

  • Page 35
    ... $230 million before considering any potential insurance proceeds discussed below. PT Freeport Indonesia maintains property damage and business interruption insurance related to its operations. We have notified our insurers that we will 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 33

  • Page 36
    ... $4.5 million of our 7.20% Senior Notes and $66.5 million of our 7.50% Senior Notes. In August 2003, we redeemed 6.0 million shares of Gold-Denominated Preferred Stock for $210.5 million and partially redeemed our Silver-Denominated 34 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 37
    ... preferred stock is classified as debt effective July 1, 2003 (see "Disclosures about Market Risk"). b. Conversion price is $14.30 per share for the 8 1/4 % Convertible Senior Notes and $30.87 per share for the 7% Convertible Senior Notes. 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD...

  • Page 38
    ... our ultimate reclamation and closure activities based on applicable laws and regulations and our assessment of appropriate remedial activities in the circumstances after consultation with governmental authorities, affected local residents 36 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 39
    ...'s sale of copper anodes, cathodes, wire rod, wire and precious metals in slimes. Our consolidated revenues and net income vary significantly with fluctuations in the market prices of copper and gold and other factors. A change of $0.10 in the 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC...

  • Page 40
    ...'s foreign currency forward contracts matured in December 2002 and PT Freeport Indonesia has no outstanding foreign currency forward contracts as of December 31, 2003. We recorded net gains (losses) to production costs for PT Freeport 38 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 41
    ... 1, 2003, we adopted SFAS No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity." On July 1, 2003, we reclassified our mandatorily redeemable preferred stock totaling $450.0 million as debt and 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD...

  • Page 42
    ..., the impacts of the recent slippage and debris flow in the Grasberg open pit, potential insurance recoveries, capital expenditures, future environmental costs, debt repayments and refinancing, treatment charge rates, depreciation rates, 40 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 43
    ...N/A Mining and exploration segment 1,744,580 631,951 190,450 Smelting and refining segment 910,417 892,681 28,464 Eliminations and other (442,832) (453,306) 11,889 As reported in consolidated financial statements $2,212,165 $1,071,326 $ 230,803 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC...

  • Page 44
    ... segment 768,680 Eliminations and other (377,228) As reported in consolidated financial statements $1,910,462 $ 547,753 7,117 N/A N/A $ 218,716 N/A N/A N/A N/A 554,870 729,789 (346,197) 938,462 N/A 218,716 27,652 14,078 $ 260,446 42 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 45
    ... segment 758,282 Eliminations and other (333,530) As reported in consolidated financial statements $1,838,866 $ 542,699 3,159 N/A N/A $ 251,835 N/A N/A N/A N/A 545,858 738,618 (341,037) 943,439 N/A 251,835 27,262 4,792 $ 283,889 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 43

  • Page 46
    ... and refining segment production costs reported in consolidated financial statements Less: Raw material purchase costs Production costs of wire rod and wire Production costs of anodes sold Currency hedging Other Credits: Gold and silver revenues Acid and other by-product revenues $ 892,681 (384...

  • Page 47
    ... financial statements, effective January 1, 2002, the Company changed its method of computing depreciation for PT Freeport Indonesia's mining and milling life-of-mine assets. Ernst & Young LLP New Orleans, Louisiana, January 28, 2004 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC...

  • Page 48
    ... 31, 2003. TO THE STOCKHOLDERS AND BOARD OF DIRECTORS OF FREEPORT-McMoRan COPPER & GOLD INC.: We have audited the accompanying balance sheets of Freeport-McMoRan Copper & Gold Inc. (the Company), a Delaware Corporation, as of December 31, 2001 and 2000, and the related statements of income, cash...

  • Page 49
    ....53 - .53 .53 - .53 155,805 159,102 $ .27 $ 144,649 146,418 - $ 143,952 144,938 - Diluted Dividends paid per common share The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 47

  • Page 50
    ...160,128 $ 268,796 $ 128,320 $ 139,448 The accompanying Notes to Consolidated Financial Statements, which include information in Notes 1, 2, 5, 6, 10 and 11 regarding noncash transactions, are an integral part of these financial statements. 48 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 51
    ... payable Accrued income taxes Rio Tinto share of joint venture cash flows Unearned customer receipts Total current liabilities Long-term debt, less current portion Accrued postretirement benefits and other liabilities Deferred income taxes Minority interests Redeemable preferred stock Stockholders...

  • Page 52
    ...) - (1,332,319) (1,620) (35,633) (4,433) (38) $ (1,374,043) (1,338,410) (1,333,977) 775,984 $ 266,826 $ 104,444 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 50 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 53
    ...12.5 million to net income ($0.09 per share), and had increased estimates of future development costs related to its undeveloped ore bodies, which increased depreciation expense for 2001 by $39.8 million, $19.4 million to net income ($0.13 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 51

  • Page 54
    ... would have been $3.7 million ($0.02 per share) lower. Effective January 1, 2004, the estimated average ratio of overburden to ore over the life of the mine in PT Freeport Indonesia's deferred mining calculation is expected to be 2.2 to 1. 52 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 55
    ...: Net income applicable to common stock Basic net income per share of common stock Diluted net income per share of common stock $154,219 0.99 0.97 $169,307 1.09 1.06 $127,050 0.88 0.87 $129,635 0.90 0.89 $ 76,496 0.53 0.53 $104,847 0.73 0.72 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC...

  • Page 56
    ... LME price for a specified future period, generally three months after the month of arrival at the customer's facility. Final delivery to customers in Asia generally takes up to 25 days and to customers in Europe generally takes up to 57 days. FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 57
    ... of $417.25 per ounce. For 2003, 2002 and 2001, the maximum net price adjustment to revenues after initial recognition was 5 percent for copper revenues and 2 percent for gold revenues. PT Freeport Indonesia pays royalties under a Contract of Work (see Note 10). The copper royalty rate payable by PT...

  • Page 58
    ... 2002, FCX loaned Nusamba $68.9 million to cover such shortfalls and charged to expense $7.3 million of this amount because the loans exceeded Nusamba's initial cash investment. 56 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 59
    ... Indonesia will continue to receive 100 percent of the cash flow from specified annual amounts of copper, gold and silver through 2021 calculated by reference to its proven and probable reserves as of December 31, 1994, and 60 percent of all remaining cash flow. 2003 Annual Report FREEPORT-McMoRan...

  • Page 60
    ... copper reserves. Additionally, excess costs include $20.8 million related to FCX's acquisition of Atlantic Copper in 1993. These costs are amortized using the straight-line method based on the estimated life of Atlantic Copper's smelter assets. 58 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual...

  • Page 61
    ... 2003. This facility matures in March 2004. Atlantic Copper has $30.0 million outstanding as of December 31, 2003, under a deferral loan with the same security as the Atlantic Copper facility. Interest is variable and the loan matures January 2008. 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD...

  • Page 62
    ... and are callable beginning in August 2004. In April 2003, FCX concluded tender offers for its 7.20% Senior Notes due 2026 and its 7.50% Senior Notes due 2006. Of the total $450 million outstanding at December 31, 2002, notes with a face FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 63
    ...million common shares, including stock appreciation rights (SARs), at prices equivalent to the original FTX price at date of grant as adjusted for the proportionate market value of FCX shares at the time of the distribution. All options granted 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC...

  • Page 64
    ... of SFAS No. 123, "Accounting for Stock-Based Compensation," which requires compensation cost for all stock-based employee compensation plans to be recognized based on the use of a fair value method (in thousands, except per share amounts): FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 65
    ...Note 5) are excluded for all years presented because including the conversion of these instruments would have increased reported diluted net income per share. A recap of the excluded amounts follows (in thousands, except exercise prices): 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 63

  • Page 66
    ... Tax effect of cumulative effect adjustments Total provision for income taxes $218,017 9,383 227,400 110,653 338,053 6,306 $344,359 $186,418 7,624 194,042 51,476 245,518 (2,352) $243,166 $129,962 5,931 135,893 67,086 202,979 - $202,979 64 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 67
    ... unrecognized prior service cost being amortized over an approximate 11-year period. Atlantic Copper has a contractual obligation denominated in euros to supplement amounts paid to certain retired Spanish national employees. Amended Spanish FREEPORT-McMoRan COPPER & GOLD INC. 65 2003 Annual Report

  • Page 68
    ... Indonesia plan, 7.2 million euros for the Atlantic Copper plan and none for the FCX plan. b. As discussed above, FCX and FM Services Company elected to terminate their defined benefit pension plans and ceased accruing benefits on June 30, 2000. 66 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual...

  • Page 69
    ...cost trend rates would not have a significant impact on total service or interest cost. Information on the employee health care and life insurance benefits FCX and, since October 1, 2002, FM Services Company provide follows (in thousands): 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 67

  • Page 70
    ...Atlantic Copper adopted a defined contribution employee plan in 2001 and recorded charges totaling $0.4 million in 2003 and $0.3 million in 2002 for annual service costs and $7.0 million in 2001 for past service costs related to this plan. 68 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 71
    ...million. These changes are not expected to have a material impact on future net income. A rollforward of FCX's consolidated discounted asset retirement obligations follows (in thousands): 2003 $28,485 605 (1,222) 2,852 (4,333) 99 $26,486 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 69

  • Page 72
    ... 1967 Contract of Work, PT Freeport Indonesia fully expects that the government will approve the extensions as long as it continues to comply with the terms of the Contract of Work. Social and Economic Development Programs. FCX has a comprehensive social, employment and human rights policy to ensure...

  • Page 73
    ...Freeport Indonesia's concentrate sales contracts allow for final pricing in future periods. Under SFAS No. 133, these pricing terms cause a portion of the contracts to be considered embedded derivatives, which must be recorded at fair value. FREEPORT-McMoRan COPPER & GOLD INC. 71 2003 Annual Report

  • Page 74
    ... Atlantic Copper's operations in Spain and PT Freeport Indonesia's equity investment in PT Smelting in Gresik, Indonesia. The segment data presented below were prepared on the same basis as the consolidated FCX financial statements. 72 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 75
    ... $69.1 million in 2003 and $6.8 million in 2002. d. Includes PT Freeport Indonesia's equity investment in PT Smelting totaling $58.2 million at December 31, 2003, $44.6 million at December 31, 2002, and $57.2 million at December 31, 2001. 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 73

  • Page 76
    ...be recovered before the end of 2041 (the expiration of the two 10-year extensions). PT Freeport Indonesia's current mine plan has been developed and its operations are based on receiving the two 10-year extensions. As a result, PT Freeport 74 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 77
    ... of cash flow from its existing pre-expansion production facilities as specified by the contractual arrangements. PT Freeport Indonesia's estimated net share of recoverable reserves and FCX's equity interest in those reserves follow: 2003 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 75

  • Page 78
    ...with the adoption of SFAS No. 150 effective July 1, 2003 (see Note 1). d. Includes a $3.0 million charge ($0.02 per share) for the cumulative effect of an accounting change associated with a change in depreciation methodology (see Note 1). 76 FREEPORT-McMoRan COPPER & GOLD INC. 2003 Annual Report

  • Page 79
    ... company entitled to vote at its annual meeting, upon written request. The Investor Relations Department can be contacted as follows: Freeport-McMoRan Copper & Gold Inc. Investor Relations Department 1615 Poydras Street New Orleans, Louisiana 70112 Telephone (504) 582-4000 www.fcx.com TRANSFER AGENT...

  • Page 80
    FREEPORT-McMoRan COPPER & GOLD INC. 1615 POYDRAS STREET NEW ORLEANS, LOUISIANA 70112 WWW.FCX.COM