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FREEPORT-McMoRan COPPER & GOLD INC. 2010 Annual Report
4
In 2011, we will focus on executing our plans for
future growth in response to the global market demand
for metals while continuing to emphasize safety,
aggressive cost management and social responsibility.
These commitments are central to our core values
and a primary driver of our corporate social
responsibility programs.
We express our appreciation to our entire organization
for their hard work and accomplishments during 2010.
The positive contributions by our global team have
positioned us for continued success. We also want to
express our gratitude to our Board of Directors, whose
wisdom and counsel have shaped our past success and
promising future. Together we will continue “Connecting
the World” for the 21st century.
Respectfully yours,
March 15, 2011
These market dynamics resulted in tight physical market
conditions, declining exchange inventories and higher
commodity prices. Our realized price for copper averaged
$3.59 per pound in 2010, 38 percent higher than in
2009. The copper price ended the year at an all-time
high of $4.42 per pound and reached new highs in
early 2011.
Most market experts expect copper prices to continue to
be favorable during 2011, driven by rising demand and
constrained supplies. As a leading producer of copper
with long-lived reserves and attractive development
projects, we are well positioned to benefit from these
favorable conditions. In our molybdenum business, we are
advancing efforts to maintain our position as the world’s
largest molybdenum producer. Our large-scale operations
and the robust markets for our products should enable
us to generate solid financial results as we go forward.
We have a highly focused financial strategy designed to
build value for shareholders. Our first priority for using
cash is to invest in economically attractive development
projects. We are actively pursuing large investments
in mine expansions at several of our operating sites
around the world to grow our production profile, improve
efficiencies, and generate increased cash flows and
profits. We will also continue to maintain a strong balance
sheet and liquidity position, which will enable us to
effectively manage inherent volatility in our business and
pursue large-scale development opportunities. We also
expect to continue our longstanding tradition of providing
attractive cash returns to shareholders as market
conditions warrant.
Our outstanding financial results during 2010 allowed
us to further strengthen our financial position, enhance
our liquidity position, advance our attractive development
projects and provide increased cash returns to
shareholders. We repaid $1.6 billion in debt in 2010, and
our Board of Directors increased our quarterly common
stock dividend over 200 percent during the year. We also
paid a supplemental common stock dividend of $1.00
per share (pre-split) in December 2010, and our positive
share price performance and outlook for our business
enabled our Board to authorize a two-for-one stock split,
which took effect on February 1, 2011.
James R. Moffett
Chairman of the Board
Richard C. Adkerson
President and
Chief Executive Officer