Grasberg Project and Financial Update
Adjusted EBITDA Reconciliation
FREEPORT
FOREMOST IN COPPER
($ in mm)
3Q21
Net income attributable to common stock
$1,399
12 mos ended
9/30/2021
$3,908
Interest expense, net
138
667
Income tax provision
Depreciation, depletion and amortization
Metals inventory adjustments
Net gain on sales of assets
Accretion and stock-based compensation
Other net charges
628
2,285
528
1,865
14
19
(60)
(549)
39
194
(1)
261
Loss on early extinguishment of debt
1
Other income, net
(36)
(53)
Net income attributable to noncontrolling interests
324
957
Equity in affiliated companies' net losses
9
5
(2)
FCX Adjusted EBITDA
$2,983
$9,560
(1) Primarily includes net charges totaling $132 mm for a talc-related litigation accrual, $74 mm associated with non-recurring labor-related charges at Cerro Verde and $43 mm primarily
associated with contested matters at PT-FI.
(2) Adjusted EBITDA is a non-GAAP financial measure that is frequently used by securities analysts, investors, lenders and others to evaluate companies' performance, including, among
other things, profitability before the effect of financing and similar decisions. Because securities analysts, investors, lenders and others use Adjusted EBITDA, management believes that
our presentation of Adjusted EBITDA affords them greater transparency in assessing our financial performance. Adjusted EBITDA should not be considered as a substitute for measures
of financial performance prepared in accordance with GAAP. Adjusted EBITDA may not necessarily be comparable to similarly titled measures reported by other companies, as different
companies calculate such measures differently.
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