Freeport-McMoRan 2009 Annual Report Download - page 6

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underpinned by limited new supply, the depletion of currently producing
mines, the important role of copper in the development of emerging
economies’ infrastructure and the fundamental requirements in the
world’s developed economies. We are in a strong position as one of
the world’s largest copper producers to benet from the very favorable
fundamentals of the copper marketplace.
We generated strong nancial results in 2009, which enabled us to
strengthen our nancial position and enhance our liquidity. We repaid
$1 billion in debt during the year, reducing our $17.6 billion of debt at
our 2007 acquisition of Phelps Dodge by a cumulative $11 billion.
As we progress, we are preparing for eventual improvement in
conditions in the world’s developed economies, which will be highly
favorable to the demand for our products. We have an attractive
portfolio of potential investment opportunities within our existing asset
base and are prepared to move forward as market conditions warrant.
With current copper prices above $3 per pound, gold prices above
$1,000 per ounce and molybdenum prices over $15 per pound, we
would generate signicant cash ows. We will continue to invest in
attractive growth projects and maintain our strong balance sheet.
Our environmental management and community development
programs are important to our success. We will continue to invest
in the communities where we operate and aggressively manage to
mitigate the environmental impacts of our operations.
The safety of our workforce is our highest priority. Our programs
are designed to achieve a safe environment for all our workers. Our
comprehensive Working Toward Sustainable Development report,
During 2009, copper was
one of the best performing
metals, with its price rising
over 150 percent, as strong
demand from China and
limited supply offset weak
conditions in the developed
economies of the United
States, Europe and Japan.
In 2009, we resumed construction activities
associated with the development of the
sulde ore deposit at El Abra (pictured
above) in Chile. This project will extend the
mine life by over 10 years.
4 FREEPORT-McMoRan COPPER & GOLD INC.
2009 Annual Report
Total Debt
$ in billions
10
20
15
5
Year End
2009
2007+
+ At time of the Phelps Dodge
acquisition (March 2007)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
LME Copper Price
$ per lb.
2.50
2.00
3.50
3.00
1.50
1.00
0.50
DEC
2009 FEB
2010
DEC
2008 APR
2009
Copper Price
SEP
2009
-- 2009 Average Price of Copper