Freeport-McMoRan 2005 Annual Report Download - page 25

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.”
FREEPORT-McMoRan COPPER & GOLD INC.
Background photo: The Grasberg open-pit mine and surrounding minerals complex in Papua, Indonesia
contain the world’s largest reserves of copper and gold. Availability of high-grade ore in Grasberg
enabled us to achieve exceptional operating performance in 2005.
TABLE OF CONTENTS
฀ 3฀฀฀฀Letter฀to฀Shareholders฀
฀ 8฀ Operations฀Overview
฀16฀ Economic,฀Social฀&฀Environmental฀Overview
฀22฀ Board฀of฀Directors฀&฀Management฀
฀23฀ ฀Financial฀&฀Operating฀Information
฀91฀ Stockholder฀Information
INVESTOR INQUIRIES
The฀Investor฀Relations฀Department฀will฀be฀pleased฀to฀receive฀any฀
inquiries฀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฀(CEO)฀and฀Chief฀Financial฀Officer฀
(CFO)฀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
480฀Washington฀Boulevard
Jersey฀City,฀New฀Jersey฀07310
Telephone฀(800)฀953-2493
www.melloninvestor.com
NOTICE OF ANNUAL MEETING
The฀annual฀meeting฀of฀stockholders฀will฀be฀held฀on฀May฀4,฀2006.฀
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฀2005,฀the฀number฀of฀holders฀of฀record฀of฀our฀
Class฀B฀common฀shares฀was฀8,649.฀
฀ NYSE฀composite฀tape฀Class฀B฀common฀share฀price฀ranges฀during฀
2005฀and฀2004฀were:
CERTIFICATIONS
Our฀CEO,฀Richard฀C.฀Adkerson,฀submitted฀the฀Annual฀CEO฀
Certification฀to฀the฀NYSE฀as฀required฀under฀the฀NYSE฀Listed฀
Companies฀Rules.฀We฀have฀filed฀the฀certifications฀of฀our฀CEO฀and฀
our฀CFO฀required฀under฀Section฀302฀of฀the฀Sarbanes-Oxley฀Act฀of฀
2002฀as฀exhibits฀to฀our฀Form฀10-K.
COMMON SHARE DIVIDENDS
Below฀is฀a฀summary฀of฀the฀common฀stock฀cash฀dividends฀declared฀
and฀paid฀for฀the฀quarterly฀periods฀of฀2005฀and฀2004,฀and฀the฀2005฀
and฀2004฀supplemental฀dividends:
In฀November฀2005,฀the฀Board฀of฀Directors฀authorized฀an฀increase฀in฀the฀
annual฀common฀stock฀dividend฀to฀$1.25฀per฀share฀payable฀quarterly฀
($0.3125฀per฀share)฀beginning฀with฀the฀February฀2006฀payment.
฀ In฀January฀2006,฀the฀Board฀of฀Directors฀authorized฀a฀supplemental฀
common฀stock฀dividend฀of฀$0.50฀per฀share฀to฀be฀paid฀on฀March฀31,฀
2006,฀to฀shareholders฀of฀record฀as฀of฀March฀15,฀2006.
TAX WITHHOLDING – NONRESIDENT ALIEN STOCKHOLDERS
Nonresident฀aliens฀who฀own฀stock฀in฀a฀United฀States฀(U.S.)฀
corporation฀are฀generally฀subject฀to฀a฀federal฀withholding฀tax฀on฀
100฀percent฀of฀the฀dividends฀paid฀on฀preferred฀and/or฀common฀
stock.฀However,฀when฀80฀percent฀or฀more฀of฀a฀corporation’s฀income฀
is฀generated฀outside฀the฀U.S.,฀the฀withholding฀percentage฀is฀not฀
calculated฀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฀2005฀to฀nonresident฀alien฀
shareholders,฀none฀(0.00฀percent)฀of฀the฀dividend฀amount฀was฀
subject฀to฀federal฀withholding฀tax฀because฀none฀of฀our฀income฀was฀
from฀U.S.฀sources.
฀ For฀quarterly฀dividends฀paid฀in฀2006,฀FCX฀estimates฀that฀
0.94฀percent฀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฀2006฀proxy฀statement,฀the฀beneficial฀owners฀฀
of฀more฀than฀five฀percent฀of฀our฀outstanding฀Class฀B฀common฀stock฀
as฀of฀December฀31,฀2005,฀are฀Capital฀Research฀and฀Management฀
Company฀(10.8฀percent)฀and฀Merrill฀Lynch฀Investment฀Managers฀฀
(5.4฀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
2004
฀ ฀Amount
฀ ฀per฀Share฀ Record฀Date฀ ฀Payment฀Date
First฀Quarter฀ ฀$0.25฀ Jan.฀14,฀2005฀ Feb.฀1,฀2005
Supplemental฀ 0.50฀ Mar.฀15,฀2005฀ Mar.฀31,฀2005
Second฀Quarter฀ 0.25฀ Apr.฀15,฀2005฀ May฀1,฀2005
Third฀Quarter฀ 0.25฀ July฀15,฀2005฀ Aug.฀1,฀2005
Supplemental฀ 0.50฀ Sept.฀15,฀2005฀ Sept.฀30,฀2005
Fourth฀Quarter฀ 0.25฀ Oct.฀14,฀2005฀ Nov.฀1,฀2005
Supplemental฀ 0.50฀ Dec.฀15,฀2005฀ Dec.฀30,฀2005
2005
฀ 2005฀ 2004
฀High฀ Low฀ High฀ Low
First฀Quarter฀ $43.90฀ $35.12฀ $44.90฀ $35.09
Second฀Quarter฀ ฀40.31฀ ฀31.52฀ ฀฀39.85฀ ฀27.76
Third฀Quarter฀ ฀49.48฀ ฀37.12฀ ฀฀42.13฀ ฀31.54
Fourth฀Quarter฀ ฀56.35฀ ฀43.41฀ ฀฀42.55฀ ฀33.98
Stockholder Information
91 | FREEPORT-McMoRan COPPER & GOLD INC. 2005 ANNUAL REPORT STOCKHOLDER INFORMATION