Freeport-McMoRan 2004 Annual Report Download - page 2

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Letter฀to฀Shareholders฀ ฀ ฀ ฀ 2
Operations฀Overview฀ ฀ ฀ ฀ 4
Economic,฀Social฀and฀Environmental฀Overview฀ 12
Board฀of฀Directors฀and฀Management฀ ฀ 16
Financial฀and฀Operating฀Information฀ ฀ 17
Stockholder฀Information฀ ฀ ฀ ฀ 81

Years฀Ended฀December฀31,฀ 2004฀ 2003฀ 2002฀ 2001฀ 2000
(In฀Thousands,฀Except฀Per฀Share฀Amounts)
Revenues฀ $2,371,866฀ $2,212,165฀ $1,910,462฀ $1,838,866฀ $1,868,610
Operating฀income฀ 703,576฀ 823,308฀ 640,137฀ 542,926฀ 492,293
Net฀income฀applicable฀to฀common฀stock฀ 156,776฀ ฀154,219฀ 127,050฀ 76,496฀ 39,500
Diluted฀net฀income฀per฀common฀share฀ 0.85฀ 0.97฀ 0.87฀ 0.53฀ 0.26
Dividends฀paid฀per฀common฀share฀ 1.10฀ 0.27฀ —฀ —฀ —
At฀December฀31:
Total฀assets฀ 5,086,995฀ 4,718,366฀ 4,192,193฀ 4,211,929฀ 3,950,741
Long-term฀debt,฀including฀current฀portion,฀ ฀
฀฀฀short-term฀borrowings฀and฀redeemable฀฀
฀฀฀preferred฀stock฀ 1,951,906฀ 2,228,330฀ 2,488,393฀ 2,801,104฀ 2,665,030
Cash฀and฀restricted฀cash฀and฀investments฀ 551,950฀ 498,616฀ 115,782฀ 149,475฀ 7,968
Stockholders’฀equity฀ 1,163,649฀ 775,984฀ 266,826฀ 104,444฀ 37,931
Freeport-McMoRan฀Copper฀&฀Gold฀Inc.฀(FCX)฀conducts฀its฀operations฀through฀its฀subsidiaries,฀PT฀Freeport฀
Indonesia,฀PT฀Puncakjaya฀Power,฀PT฀Irja฀Eastern฀Minerals฀and฀Atlantic฀Copper,฀S.A.฀PT฀Freeport฀Indonesia’s฀฀
operations฀in฀the฀Indonesian฀province฀of฀Papua฀include฀exploration฀and฀development,฀mining฀and฀milling฀of฀ore฀
containing฀copper,฀gold฀and฀silver,฀and฀the฀worldwide฀marketing฀of฀concentrates฀containing฀those฀metals.฀฀
PT฀Puncakjaya฀Power฀supplies฀power฀to฀PT฀Freeport฀Indonesia’s฀operations.฀PT฀Irja฀Eastern฀Minerals฀conducts฀฀
mineral฀exploration฀activities฀in฀Papua.฀Atlantic฀Copper,฀FCX’s฀wholly฀owned฀subsidiary฀in฀Huelva,฀Spain,฀and฀฀
PT฀Smelting,฀PT฀Freeport฀Indonesia’s฀25-percent-owned฀smelter฀facility฀in฀the฀Indonesian฀province฀of฀East฀Java,฀฀
are฀engaged฀in฀the฀smelting฀and฀refining฀of฀copper฀concentrates.
Our฀common฀stock฀trades฀on฀the฀New฀York฀Stock฀Exchange฀under฀the฀symbol฀“FCX.”

On the cover: ฀Massive฀copper฀sulphide฀ore฀from฀
the฀Grasberg฀mine’s฀high-grade฀central฀stockwork฀zone,฀
Section฀6฀South.฀The฀minerals฀present฀in฀the฀specimen฀
are:฀chalcopyrite฀(brassy฀yellow/orange),฀bornite฀฀
(dark฀blue/purple),฀covellite฀(violet/light฀blue),฀quartz฀
(clear/round฀patches),฀with฀fragments฀of฀the฀original฀
Grasberg฀monzodiorite฀rock฀(white฀patches).฀The฀gold฀in฀
the฀specimen฀occurs฀as฀particles฀too฀small฀to฀see฀within฀
the฀copper฀sulphide฀minerals.฀This฀sample฀was฀presented฀฀
to฀Richard฀C.฀Adkerson,฀President฀and฀Chief฀Executive฀
Officer฀of฀Freeport-McMoRan฀Copper฀&฀Gold฀Inc.฀by฀
Armando฀Mahler,฀Executive฀Vice฀President฀and฀General฀
Manager฀of฀PT฀Freeport฀Indonesia,฀on฀one฀of฀Mr.฀Adkerson’s฀
recent฀visits฀to฀the฀mining฀operations.฀
Background photo: ฀The฀south฀wall฀of฀the฀Grasberg฀
open-pit฀mine฀following฀resumption฀of฀mining฀in฀higher-grade฀
ore฀in฀2004.
INVESTOR฀INQUIRIES
The฀Investor฀Relations฀Department฀will฀be฀pleased฀to฀receive฀any฀inqui-
ries฀about฀the฀Company's฀securities,฀including฀its฀common฀stock฀and฀
depositary฀shares,฀or฀about฀any฀phase฀of฀the฀company's฀activities.฀A฀
link฀to฀our฀Annual฀Report฀on฀Form฀10-K฀filed฀with฀the฀Securities฀and฀
Exchange฀Commission,฀which฀includes฀certifications฀of฀our฀Chief฀Executive฀
Officer฀and฀Chief฀Financial฀Officer฀and฀the฀company’s฀Ethics฀and฀Business฀
Conduct฀Policy,฀is฀available฀on฀our฀web฀site.฀Additionally,฀copies฀will฀be฀
furnished,฀without฀charge,฀to฀any฀stockholder฀of฀the฀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
Questions฀about฀lost฀certificates,฀lost฀or฀missing฀dividend฀checks,฀or฀
notifications฀of฀change฀of฀address฀should฀be฀directed฀to฀the฀FCX฀transfer฀
agent,฀registrar฀and฀dividend฀disbursement฀agent:
Mellon฀Investor฀Services฀LLC
Overpeck฀Centre,฀85฀Challenger฀Road
Ridgefield฀Park,฀New฀Jersey฀07660
Telephone฀(800)฀953-2493
www.melloninvestor.com
NOTICE฀OF฀ANNUAL฀MEETING
The฀annual฀meeting฀of฀stockholders฀will฀be฀held฀on฀May฀5,฀2005.฀Notice฀
of฀the฀meeting,฀together฀with฀a฀proxy฀and฀a฀proxy฀statement,฀is฀being฀
sent฀to฀stockholders.฀A฀post-meeting฀report฀summarizing฀the฀proceedings฀
of฀the฀meeting฀will฀be฀available฀on฀our฀web฀site฀(www.fcx.com)฀within฀
10฀days฀following฀the฀meeting.฀A฀copy฀of฀the฀report฀will฀be฀mailed฀at฀no฀
charge฀to฀any฀stockholder฀requesting฀it.
FCX฀CLASS฀B฀COMMON฀SHARES฀ ฀
Our฀Class฀B฀common฀shares฀trade฀on฀the฀New฀York฀Stock฀Exchange฀(NYSE)฀
under฀the฀symbol฀“FCX.”฀The฀FCX฀share฀price฀is฀reported฀daily฀in฀the฀
financial฀press฀under฀“FMCG”฀in฀most฀listings฀of฀NYSE฀securities.฀At฀year-
end฀2004,฀the฀number฀of฀holders฀of฀record฀of฀our฀Class฀B฀common฀฀
shares฀was฀8,999.฀฀
NYSE฀composite฀tape฀Class฀B฀common฀share฀price฀ranges฀during฀2004฀and฀
2003฀were:
COMMON฀SHARE฀DIVIDENDS
Below฀is฀a฀summary฀of฀the฀common฀stock฀cash฀dividends฀declared฀and฀
paid฀for฀the฀quarterly฀periods฀of฀2004฀and฀2003,฀and฀the฀December฀2004฀
supplemental฀dividend:
In฀February฀2005,฀the฀Board฀of฀Directors฀authorized฀a฀supplemental฀฀
common฀stock฀dividend฀of฀$0.50฀per฀share฀to฀be฀paid฀on฀March฀31,฀2005,฀
to฀shareholders฀of฀record฀as฀of฀March฀15,฀2005.฀The฀supplemental฀divi-
dend฀to฀be฀paid฀in฀March฀represents฀an฀addition฀to฀FCX’s฀regular฀quarterly฀
common฀stock฀dividend฀of฀$0.25฀per฀share฀and฀the฀supplemental฀dividend฀
of฀$0.25฀per฀share฀paid฀in฀December฀2004.
TAX฀WITHHOLDING฀–฀NONRESIDENT฀ALIEN฀STOCKHOLDERS
Nonresident฀aliens฀who฀own฀stock฀in฀a฀U.S.฀corporation฀are฀generally฀sub-
ject฀to฀a฀federal฀withholding฀tax฀on฀100฀percent฀of฀the฀dividends฀paid฀on฀
that฀stock.฀฀However,฀when฀80฀percent฀or฀more฀of฀a฀corporation’s฀income฀
is฀generated฀outside฀the฀U.S.,฀the฀withholding฀percentage฀is฀not฀calcu-
lated฀on฀100฀percent฀of฀the฀dividend฀but฀rather฀on฀that฀portion฀of฀the฀
dividend฀attributable฀to฀income฀generated฀in฀the฀U.S.฀FCX฀has฀determined฀
that,฀for฀quarterly฀dividends฀and฀supplemental฀dividends฀paid฀in฀2004฀
to฀nonresident฀alien฀stockholders,฀none฀of฀the฀total฀dividend฀amount฀is฀
subject฀to฀federal฀withholding฀tax฀because฀none฀of฀our฀income฀is฀from฀
U.S.฀sources.
For฀quarterly฀dividends฀paid฀in฀2005,฀FCX฀estimates฀that฀none฀of฀the฀total฀
dividend฀amount฀is฀subject฀to฀federal฀withholding฀tax.
For฀additional฀information,฀please฀contact฀the฀Investor฀Relations฀
Department.
FCX฀BENEFICIAL฀OWNERS
As฀reflected฀in฀our฀2005฀proxy฀statement,฀the฀beneficial฀owners฀of฀
more฀than฀five฀percent฀of฀our฀outstanding฀Class฀B฀common฀stock฀as฀of฀
December฀31,฀2004,฀are฀Capital฀Research฀and฀Management฀Company฀฀
(12.1฀percent),฀FMR฀Corp.฀(10.8฀percent)฀and฀Pioneer฀Global฀Asset฀
Management฀S.p.A.฀(6.2฀percent).
฀ ฀Amount
฀ ฀per฀Share฀ Record฀Date฀ ฀Payment฀Date
First฀Quarter฀ ฀฀$0.20฀ Jan.฀15,฀2004฀ Feb.฀1,฀2004
Second฀Quarter฀ 0.20฀ Apr.฀15,฀2004฀ May฀1,฀2004
Third฀Quarter฀ 0.20฀ July฀15,฀2004฀ Aug.฀1,฀2004
Fourth฀Quarter฀ 0.25฀ Oct.฀15,฀2004฀ Nov.฀1,฀2004
Supplemental฀ 0.25฀ Dec.฀20,฀2004฀ Dec.฀29,฀2004

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NYSE฀ANNUAL฀CEO฀CERTIFICATION ฀
Our฀Chief฀Executive฀Officer฀(CEO),฀Richard฀C.฀Adkerson,฀submitted฀the฀
Annual฀CEO฀Certification฀to฀the฀NYSE฀as฀required฀under฀the฀NYSE฀Listed฀
Company฀rules.
฀ ฀Amount
฀ ฀per฀Share฀ Record฀Date฀ ฀฀Payment฀Date
First฀Quarter฀ ฀฀N/A฀ N/A฀ ฀฀N/A
Second฀Quarter฀ $0.09฀ Apr.฀15,฀2003฀ May฀1,฀2003
Third฀Quarter฀ ฀0.09฀ July฀15,฀2003฀ Aug.฀1,฀2003
Fourth฀Quarter฀ ฀0.09฀ Oct.฀15,฀2003฀ Nov.฀3,฀2003
฀2004฀ 2003
฀High฀ Low฀ High฀ Low
First฀Quarter฀ $44.90฀ $35.09฀ $19.30฀ $16.01
Second฀Quarter฀ ฀39.85฀ ฀27.76฀ ฀25.70฀ ฀16.72
Third฀Quarter฀ ฀42.13฀ ฀31.54฀ ฀34.57฀ ฀23.45
Fourth฀Quarter฀ ฀42.55฀ ฀33.98฀ ฀46.74฀ ฀32.73
฀ 2003
฀
฀2004
฀