Grasberg Project and Financial Update slide image

Grasberg Project and Financial Update

2021e Outlook Sales Outlook Unit Net Cash Cost of Copper >>> Copper: 3.81 billion lbs >>> Site prod. & delivery > 2021e: $1.92/lb (1) >>> Gold: 1.3 million ozs >>> Molybdenum: 85 million lbs > 4Q21e: $1.91/lb >>>After by-product credits (2) > 2021e: $1.33/lb (1) > 4Q21e: $1.26/lb FREEPORT FOREMOST IN COPPER Operating Cash Flows (3) >>> $7.5 billion @ $4.50/lb copper for 4Q21e >>>Each 10¢/lb change in copper in 4Q21e = $100 million impact Capital Expenditures (4) >>> $2.3 billion ($2.0 billion excluding smelter) > $1.3 billion for major projects › $0.7 billion for other mining › $0.3 billion for Indonesia smelter projects (5) (1) Includes 2¢/lb associated with nonrecurring labor-related charges at Cerro Verde for agreements reached with -65% of its hourly employees. (2) Assumes average prices of $1,800/oz gold and $19/lb molybdenum in 4Q21e. (3) Assumes average prices of $1,800/oz gold and $19/lb molybdenum in 4Q21e; each $100/oz change in gold would have an approximate $25 mm impact and each $2/lb change in molybdenum would have an approximate $15 mm impact. (4) PT Inalum scheduled contributions in 2021e approximate $0.2 bn. (5) Smelter project is currently being funded through PT-FI's $1 bn unsecured bank credit facility. e = estimate. See Cautionary Statement. 30
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