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Press release from Business Wire

Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2011 Results

Wednesday, October 19, 2011

Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2011 Results08:00 EDT Wednesday, October 19, 2011 PHOENIX (Business Wire) -- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX): ▪ Net income attributable to common stock for third-quarter 2011 was $1.1 billion, $1.10 per share, compared with net income of $1.2 billion, $1.24 per share, for third-quarter 2010. Net income attributable to common stock for the first nine months of 2011 was $3.9 billion, $4.10 per share, compared with $2.7 billion, $2.94 per share, for the first nine months of 2010. ▪ Consolidated sales from mines for third-quarter 2011 totaled 947 million pounds of copper, 409 thousand ounces of gold and 19 million pounds of molybdenum, compared with 1.1 billion pounds of copper, 497 thousand ounces of gold and 17 million pounds of molybdenum for third-quarter 2010. ▪ Consolidated sales from mines for the year 2011 are expected to approximate 3.8 billion pounds of copper, 1.6 million ounces of gold and 78 million pounds of molybdenum, including 915 million pounds of copper, 305 thousand ounces of gold and 18 million pounds of molybdenum for fourth-quarter 2011. ▪ Consolidated unit net cash costs (net of by-product credits) averaged $0.80 per pound of copper for third-quarter 2011, compared with $0.82 per pound for third-quarter 2010. Based on current 2011 sales volume and cost estimates and assuming average prices of $1,600 per ounce for gold and $14 per pound for molybdenum for fourth-quarter 2011, consolidated unit net cash costs (net of by-product credits) are estimated to average $0.95 per pound of copper for the year 2011. ▪ Operating cash flows totaled $1.8 billion for third-quarter 2011 and $5.9 billion for the first nine months of 2011, compared with $1.3 billion for third-quarter 2010 and $4.2 billion for the first nine months of 2010. Based on current 2011 sales volume and cost estimates and assuming average prices of $3.25 per pound for copper, $1,600 per ounce for gold and $14 per pound for molybdenum for fourth-quarter 2011, operating cash flows are estimated to approximate $7 billion for the year 2011. ▪ Capital expenditures totaled $717 million for third-quarter 2011 and $1.7 billion for the first nine months of 2011, compared with $350 million for third-quarter 2010 and $877 million for the first nine months of 2010. Capital expenditures are expected to approximate $2.6 billion for the year 2011, including $1.4 billion for major projects and $1.2 billion for sustaining capital. ▪ At September 30, 2011, total debt approximated $3.5 billion and consolidated cash approximated $5.1 billion. During the first nine months of 2011, FCX repaid $1.2 billion in debt and paid common stock dividends totaling $1.2 billion. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter 2011 net income attributable to common stock of $1.1 billion, $1.10 per share, compared with $1.2 billion, $1.24 per share, for third-quarter 2010. For the first nine months of 2011, FCX reported net income attributable to common stock of $3.9 billion, $4.10 per share, compared with $2.7 billion, $2.94 per share, for the first nine months of 2010. James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, "Our third-quarter 2011 results reflect strong operating performance and favorable markets for our products.While the near-term economic outlook is uncertain and has resulted in a decline in copper prices over the last several weeks, the fundamentals of our business are strong and we have a positive view of the long-term market fundamentals.As we address union labor issues at our mines, our strategy continues to focus on effective execution of our operating plans, aggressive cost management and investing in projects with attractive rates of return to enhance our global portfolio of large-scale, long-lived and high-quality assets."         SUMMARY FINANCIAL AND OPERATING DATAThree Months EndedNine Months EndedSeptember 30,September 30,   2011     20102011     2010Financial Data (in millions, except per share amounts) Revenuesa $ 5,195 $ 5,152 $ 16,718 $ 13,379 Operating incomeb $ 2,150 $ 2,499 $ 7,843 $ 5,971 Net income attributable to common stock $ 1,053 c $ 1,178 $ 3,920 c,d $ 2,724 d Diluted net income per share of common stock $ 1.10 c $ 1.24 e $ 4.10 c,d $ 2.94 d,e Diluted weighted-average common shares outstanding 955 947 e 955 947 e Operating cash flows $ 1,835 f $ 1,336 f $ 5,874 f $ 4,218 f Capital expenditures $ 717 $ 350 $ 1,749 $ 877   Mining Operating DataCopper (millions of recoverable pounds) Production 951 1,042 2,868 2,901 Sales, excluding purchases 947 1,081 2,875 2,955 Average realized price per pound $ 3.60 $ 3.50 $ 3.94 $ 3.33 Site production and delivery costs per poundg $ 1.71 $ 1.38 $ 1.65 $ 1.38 Unit net cash costs per poundg $ 0.80 $ 0.82 $ 0.84 $ 0.87 Gold (thousands of recoverable ounces) Production 385 492 1,202 1,257 Sales, excluding purchases 409 497 1,245 1,273 Average realized price per ounce $ 1,693 $ 1,266 $ 1,565 $ 1,204 Molybdenum (millions of recoverable pounds) Production 23 19 65 53 Sales, excluding purchases 19 17 60 50 Average realized price per pound $ 16.34 $ 16.06 $ 17.57 $ 16.43   a.   Includes the impact of adjustments to provisionally priced concentrate and cathode sales recognized in prior periods (refer to discussion on page 10). b. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Refer to the "Consolidated Statements of Income" on page IV for a summary of net impacts from changes in these deferrals. c. Includes additional taxes of $50 million, net of noncontrolling interests, ($0.05 per share for the third quarter and first nine months of 2011) associated with Peru's new mining tax and royalty regime. For further discussion refer to the supplemental schedule, "Provision for Income Taxes," on page XXVI, which is available on FCX's website, "www.fcx.com." d. Includes net losses on early extinguishment of debt totaling $60 million ($0.06 per share) for the first nine months of 2011 and $67 million ($0.07 per share) for the first nine months of 2010. e. Amounts have been adjusted to reflect the February 1, 2011, two-for-one stock split. f. Includes working capital sources (uses) of $256 million for third-quarter 2011, $(636) million for third-quarter 2010, $(126) million for the first nine months of 2011 and $(529) million for the first nine months of 2010. g. Reflects per pound weighted-average site production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”   OPERATIONSConsolidated. Third-quarter 2011 consolidated copper sales of 947 million pounds were slightly higher than the July 2011 estimate of 940 million pounds primarily because of timing of shipments in North America. As anticipated, third-quarter 2011 copper sales were lower than third-quarter 2010 sales primarily because of lower sales in Indonesia and South America, partly offset by higher North America sales. Third-quarter 2011 consolidated gold sales of 409 thousand ounces were slightly below the July 2011 estimate of 415 thousand ounces and lower than third-quarter 2010 sales of 497 thousand ounces, primarily reflecting lower Grasberg production. Third-quarter 2011 consolidated molybdenum sales of 19 million pounds were higher than the July 2011 estimate of 18 million pounds and third-quarter 2010 sales of 17 million pounds. During third-quarter 2011, production and sales of copper and gold were adversely affected by labor disruptions at PT Freeport Indonesia (PT-FI). The estimated impact on third-quarter 2011 production, including the eight-day strike in July 2011 and the ongoing strike that commenced on September 15, 2011, totaled approximately 70 million pounds of copper and 100 thousand ounces of gold. Without the impacts of the strike, third-quarter 2011 sales from Grasberg would have exceeded forecasted production and sales because of access to higher grade ore previously scheduled to be mined in future periods. PT-FI has developed revised operating plans to produce and ship concentrates at modified levels with a reduced workforce and sold concentrate from inventory during third-quarter 2011, which partly mitigated the lower production levels. The union has notified PT-FI that it intends to extend the strike to November 15, 2011. PT-FI continues to seek to end the strike, which has no legal basis, and to conclude negotiations, on a fair and reasonable basis, of the bi-annual renewal of its collective labor agreement. PT-FI's compensation practices are highly competitive in Indonesia, and PT-FI has agreed to accept the recommendations of the government-appointed mediator for a generous increase in wages and other benefits. Consolidated sales from mines for the year 2011 are expected to approximate 3.8 billion pounds of copper, 1.6 million ounces of gold and 78 million pounds of molybdenum, including 915 million pounds of copper, 305 thousand ounces of gold and 18 million pounds of molybdenum in fourth-quarter 2011. Fourth-quarter 2011 sales estimates reflect reduced operations at PT-FI resulting from the current strike conditions. The impact for the year 2011, which is subject to change based on operating rates, mine plans, the extent to which PT-FI can operate using a reduced workforce, and the timing of the resumption of normal operations, is estimated to approximate 100 million pounds of copper and 100 thousand ounces of gold. Consolidated average unit net cash costs (net of by-product credits) of $0.80 per pound of copper in third-quarter 2011 were lower than unit net cash costs of $0.82 per pound in third-quarter 2010 as higher gold, molybdenum and silver credits more than offset higher site production and delivery costs. Higher site production and delivery costs primarily reflected lower copper sales volumes in Indonesia and South America and increased mining and milling activities in North America. Assuming average prices of $1,600 per ounce of gold and $14 per pound of molybdenum for fourth-quarter 2011 and achievement of current 2011 sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for FCX's copper mining operations are expected to average approximately $0.95 per pound of copper for the year 2011. Quarterly unit net cash costs vary with fluctuations in sales volumes and average realized prices for gold and molybdenum. Fourth-quarter 2011 unit net cash costs are expected to be higher than the average for the year primarily reflecting lower volumes in Indonesia. The impact of price changes on consolidated unit net cash costs would approximate $0.006 per pound for each $50 per ounce change in the average price of gold during fourth-quarter 2011 and $0.004 per pound for each $2 per pound change in the average price of molybdenum during fourth-quarter 2011. North America Copper Mines. FCX operates seven open-pit copper mines in North America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Tyrone and Chino in New Mexico. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 85 percent joint venture interest in Morenci using the proportionate consolidation method. In addition to copper, the Morenci, Bagdad and Sierrita mines also produce molybdenum concentrates. Operating and Development Activities. During 2010, FCX initiated plans to increase production at its North America copper mines, which had been curtailed in late 2008 because of weak market conditions. The projects included restarting milling operations and increasing mining rates at Morenci and Chino, and restarting the Miami mine. The project at Morenci is complete with an incremental impact of 125 million pounds of copper per year, and the ramp up of activities at Miami and Chino are continuing. Production at Miami currently approximates 60 million pounds of copper per year. Production at Chino, which is expected to produce approximately 70 million pounds of copper in 2011, is expected to increase to approximately 200 million pounds of copper per year by 2014. FCX also has a number of opportunities to invest in additional production capacity at several of its North America copper mines. Positive exploration results in recent years indicate the potential for additional sulfide development in North America. At Morenci, FCX is advancing a feasibility study to expand mining and milling capacity to process additional sulfide ores identified through positive exploratory drilling. This project, which would require significant investment, would increase milling rates from the current level of 50,000 metric tons of ore per day to approximately 115,000 metric tons of ore per day and target incremental annual copper production of approximately 225 million pounds within a three year timeframe. Completion of the feasibility study is expected in early 2012. Operating Data. Following is summary consolidated operating data for the North America copper mines for the third quarters and first nine months of 2011 and 2010:         Three Months EndedNine Months EndedSeptember 30,September 30,   2011     20102011     2010Copper (millions of recoverable pounds) Production 322 259 917 786 Sales, excluding purchases 307 267 914 847 Average realized price per pound $ 4.05 $ 3.32 $ 4.19 $ 3.28   Molybdenum (millions of recoverable pounds) Productiona 10 7 27 18   Unit net cash costs per pound of copper: Site production and delivery, excluding adjustments $ 1.86 $ 1.62 $ 1.80 $ 1.46 By-product credits, primarily molybdenum (0.55 ) (0.36 ) (0.52 ) (0.33 ) Treatment charges 0.11   0.10   0.10   0.09   Unit net cash costsb $ 1.42   $ 1.36   $ 1.38   $ 1.22     a.   Reflects molybdenum production from certain of the North America copper mines. Sales of molybdenum are reflected in the Molybdenum division (refer to page 9). b. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”   Consolidated copper sales volumes from North America of 307 million pounds in third-quarter 2011 were higher than third-quarter 2010 sales of 267 million pounds primarily reflecting increased production at the Morenci, Miami and Chino mines. FCX expects sales from the North America copper mines to approximate 1.2 billion pounds of copper for the year 2011, compared with 1.1 billion pounds of copper in 2010. As anticipated, average unit net cash costs (net of by-product credits) for the North America copper mines of $1.42 per pound of copper in third-quarter 2011 were higher than unit net cash costs of $1.36 per pound in third-quarter 2010, primarily reflecting increased mining and milling activities and higher input costs. Higher molybdenum credits partly offset the increase in site production and delivery costs. FCX estimates that average unit net cash costs (net of by-product credits) for the North America copper mines would approximate $1.42 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming an average molybdenum price of $14 per pound for fourth-quarter 2011. North America's average unit net cash costs for 2011 would change by approximately $0.01 per pound for each $2 per pound change in the average price of molybdenum during fourth-quarter 2011. South America Mining. FCX operates four copper mines in South America - Cerro Verde in Peru and El Abra, Candelaria and Ojos del Salado in Chile. FCX owns a 53.56 percent interest in Cerro Verde, a 51 percent interest in El Abra, and 80 percent of the Candelaria and Ojos del Salado mining complexes. All operations in South America are consolidated in FCX's financial statements. South America mining includes open-pit and underground mining. In addition to copper, the Cerro Verde mine produces molybdenum concentrates, and the Candelaria and Ojos del Salado mines produce gold and silver. Operating and Development Activities. During 2011, FCX commenced production from El Abra's newly commissioned stacking and leaching facilities to transition from oxide to sulfide ores. Production from the sulfide ore is expected to approximate 300 million pounds of copper per year, replacing the currently depleting oxide copper production. The aggregate capital investment for this project is expected to total $725 million through 2015, including $580 million for the initial phase of the project expected to be completed by the end of 2011. FCX is also engaged in pre-feasibility studies for a potential large-scale milling operation at El Abra to process additional sulfide material and to achieve higher recoveries. Positive exploration results at El Abra indicate the potential for a significant sulfide resource. Exploration activities are continuing. At Cerro Verde, plans for a large-scale concentrator expansion continue to be advanced. The approximate $4 billion project would expand the concentrator facilities from 120,000 metric tons of ore per day to 360,000 metric tons of ore per day and provide incremental annual production of approximately 600 million pounds of copper beginning in 2016. FCX expects to file an environmental impact assessment in fourth-quarter 2011. Operating Data. Following is summary consolidated operating data for the South America mining operations for the third quarters and first nine months of 2011 and 2010:         Three MonthsNine MonthsSeptember 30,September 30,   2011     20102011     2010Copper (millions of recoverable pounds) Production 325 356 969 1,007 Sales 322 377 965 995 Average realized price per pound $ 3.45 $ 3.55 $ 3.82 $ 3.36   Gold (thousands of recoverable ounces) Production 25 29 73 68 Sales 23 30 72 69 Average realized price per ounce $ 1,664 $ 1,265 $ 1,556 $ 1,211   Molybdenum (millions of recoverable pounds) Productiona 2 2 8 5   Unit net cash costs per pound of copper: Site production and delivery, excluding adjustments $ 1.38 $ 1.16 $ 1.31 $ 1.19 By-product credits (0.36 ) (0.21 ) (0.36 ) (0.19 ) Treatment charges 0.13   0.18   0.17   0.15   Unit net cash costsb $ 1.15   $ 1.13   $ 1.12   $ 1.15   a.   Reflects molybdenum production from Cerro Verde. Sales of molybdenum are reflected in the Molybdenum division (refer to page 9). b. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”   Copper sales from South America mining of 322 million pounds in third-quarter 2011 were lower than third-quarter 2010 sales of 377 million pounds primarily reflecting lower production at Candelaria and the timing of shipments. During third-quarter 2011, Cerro Verde's union workforce commenced a series of strike actions. The most recent strike commenced on September 29, 2011. Cerro Verde is working in good faith to complete negotiations with the workers' union for a new labor agreement. Production of copper and molybdenum has not been materially affected. FCX expects South America's sales to approximate of 1.3 billion pounds of copper and 100 thousand ounces of gold for the year 2011, similar to 2010 sales of 1.3 billion pounds of copper and 93 thousand ounces of gold. Average unit net cash costs (net of by-product credits) for South America of $1.15 per pound of copper in third-quarter 2011 were higher than unit net cash costs of $1.13 per pound in third-quarter 2010. Higher site production and delivery costs primarily reflected lower copper sales volumes, partly offset by higher gold, molybdenum and silver credits. FCX estimates that average unit net cash costs (net of by-product credits) for South America mining would approximate $1.17 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming average prices of $1,600 per ounce of gold and $14 per pound of molybdenum during fourth-quarter 2011. Indonesia Mining. Through its 90.64 percent owned and wholly consolidated subsidiary PT-FI, FCX operates the world's largest copper and gold mine in terms of reserves at its Grasberg operations in Papua, Indonesia. Operating and Development Activities. FCX has several projects in process in the Grasberg minerals district, primarily related to the development of the large-scale, high-grade underground ore bodies located beneath and nearby the Grasberg open pit. In aggregate, these underground ore bodies are expected to ramp up to approximately 240,000 metric tons of ore per day following the currently anticipated transition from the Grasberg open pit in 2016. The Deep Ore Zone (DOZ) mine, one of the world's largest underground mines, has been expanded to a capacity of 80,000 metric tons of ore per day and a feasibility study for the Deep Mill Level Zone (DMLZ) has been completed. The high-grade Big Gossan mine, which began producing in fourth-quarter 2010, is expected to reach full rates of 7,000 metric tons of ore per day by the end of 2012. Substantial progress has been made in developing infrastructure and underground workings that will enable access to the underground ore bodies. Development of the terminal infrastructure and mine access for the Grasberg Block Cave and DMLZ ore bodies is in progress. Over the next five years, estimated aggregate capital spending is expected to average approximately $635 million ($500 million net to PT-FI) per year on underground development activities. Operating Data. Following is summary consolidated operating data for the Indonesia mining operations for the third quarters and first nine months of 2011 and 2010:     Three Months Ended     Nine Months EndedSeptember 30,September 30,   2011     20102011     2010Copper (millions of recoverable pounds) Production 233 358 778 913 Sales 253 364 796 919 Average realized price per pound $ 3.29 $ 3.60 $ 3.82 $ 3.36   Gold (thousands of recoverable ounces) Production 357 462 1,123 1,185 Sales 384 466 1,168 1,200 Average realized price per ounce $ 1,695 $ 1,266 $ 1,565 $ 1,204   Unit net cash costs per pound of copper: Site production and delivery, excluding adjustments $ 1.98 $ 1.43 $ 1.91 $ 1.52 Gold and silver credits (2.80 ) (1.67 ) (2.39 ) (1.63 ) Treatment charges 0.18 0.22 0.18 0.23 Royalty on metals 0.16   0.12   0.16   0.12   Unit net cash (credits) costsa $ (0.48 ) $ 0.10   $ (0.14 ) $ 0.24   a.   For a reconciliation of unit net cash (credits) costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”   At the Grasberg mine, the sequencing of mining areas with varying ore grades causes fluctuations in the timing of ore production resulting in varying quarterly and annual sales of copper and gold. Indonesia's third-quarter 2011 copper sales of 253 million pounds and gold sales of 384 thousand ounces were lower than third-quarter 2010 copper sales of 364 million pounds and gold sales of 466 thousand ounces primarily because of planned sequencing of mining in a lower ore-grade section of the Grasberg open pit and the impact of labor disruptions during the quarter. The estimated impact from labor disruptions on third-quarter 2011 production, including the eight-day strike in July 2011 and the ongoing strike that commenced on September 15, 2011, totaled approximately 70 million pounds of copper and 100 thousand ounces of gold. PT-FI has developed revised operating plans to produce and ship concentrates at modified levels with a reduced workforce and also sold concentrate from inventory during third-quarter 2011, which partly mitigated the lower production levels. FCX expects sales from Indonesia to approximate 1.0 billion pounds of copper and 1.45 million ounces of gold for the year 2011, compared with 1.2 billion pounds of copper and 1.8 million ounces of gold for the year 2010. Indonesia's fourth-quarter 2011 sales estimates of 185 million pounds of copper and 280 thousand ounces of gold reflect the impact of labor disruptions and expected mining in a lower ore-grade section of the Grasberg open pit. The impact of labor disruptions for the year 2011, which is subject to change based on operating rates, mine plans, the extent to which we can operate using a reduced workforce, and the timing of resumption of normal operations, is estimated to approximate 100 million pounds of copper and 100 thousand ounces of gold. Because of the fixed nature of a large portion of Indonesia's costs, unit costs vary from quarter to quarter depending on volumes of copper and gold sold, as well as average realized gold prices during the period. Unit net cash costs (including gold and silver credits) for Indonesia averaged a net credit of $0.48 per pound of copper in third-quarter 2011, compared to a net cost of $0.10 per pound in third-quarter 2010. The favorable variance was primarily associated with higher gold and silver credits that more than offset increases in site production and delivery costs primarily from lower copper volumes. FCX estimates Indonesia's average unit net cash costs (net of gold and silver credits) would approximate $0.03 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming an average gold price of $1,600 per ounce during fourth-quarter 2011. Indonesia's unit net cash costs for 2011 would change by approximately $0.025 per pound for each $50 per ounce change in the average price of gold during fourth-quarter 2011. Fourth-quarter 2011 unit net cash costs are expected to be higher than the average for the year primarily because of lower volumes. Africa Mining. FCX currently holds an effective 57.75 percent interest in the Tenke Fungurume (Tenke) copper and cobalt mining concessions in the Katanga province of the Democratic Republic of Congo (DRC). In addition to copper, the Tenke mine produces cobalt hydroxide. Tenke's operations are consolidated in FCX's financial statements. FCX's interest in Tenke will be reduced to 56 percent after receiving the required government approval of the modifications to Tenke Fungurume Mining's bylaws that reflect the agreement with the DRC government. Operating and Development Activities. The milling facilities at Tenke, which were designed to produce at a rate of 8,000 metric tons of ore per day, have performed above capacity, with throughput averaging 12,000 metric tons of ore per day in third-quarter 2011 and 10,800 metric tons of ore per day for the first nine months of 2011. Mining rates have been increased to enable additional copper production from the initial project capacity of 250 million pounds per year to approximately 290 million pounds per year. FCX is undertaking a second phase of the project, which would include optimizing the current plant and increasing capacity. As part of the second phase, FCX plans to expand the mill rate to 14,000 metric tons of ore per day and to construct related processing facilities that would target the addition of approximately 150 million pounds of copper per year. The approximate $850 million project, which includes mill upgrades, additional mining equipment, a new tankhouse and sulphuric acid plant expansion, is targeted for completion in 2013. FCX continues to engage in drilling activities, exploration analyses and metallurgical testing to evaluate the potential of the highly prospective minerals district at Tenke. These analyses are being incorporated in future plans to evaluate opportunities for expansion. Operating Data. Following is summary consolidated operating data for the Africa mining operations for the third quarters and first nine months of 2011 and 2010:     Three Months Ended     Nine Months EndedSeptember 30,September 30,   2011     20102011     2010Copper (millions of recoverable pounds) Production 71 69 204 195 Sales 65 73 200 194 Average realized price per pounda $ 3.46 $ 3.36 $ 3.89 $ 3.22   Cobalt (millions of contained pounds) Production 6 5 18 14 Sales 6 6 19 13 Average realized price per pound $ 10.05 $ 11.93 $ 10.71 $ 11.51   Unit net cash costs per pound of copper: Site production and delivery, excluding adjustments $ 1.55 $ 1.44 $ 1.57 $ 1.37 Cobalt creditsb (0.51 ) (0.65 ) (0.68 ) (0.54 ) Royalty on metals 0.08   0.07   0.09   0.07   Unit net cash costsc $ 1.12   $ 0.86   $ 0.98   $ 0.90   a.   Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts. b. Net of cobalt downstream processing and freight costs. c. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”   Copper sales from Africa of 65 million pounds in third-quarter 2011 were lower than third-quarter 2010 copper sales of 73 million pounds primarily reflecting the timing of shipments. FCX expects Africa's sales to approximate 275 million pounds of copper and 25 million pounds of cobalt for the year 2011, compared with 262 million pounds of copper and 20 million pounds of cobalt for the year 2010. Unit net cash costs (net of cobalt credits) for Africa of $1.12 per pound of copper were higher than unit net cash costs of $0.86 per pound in third-quarter 2010, primarily reflecting lower cobalt credits and higher site production and delivery costs from increased mining and milling activity and higher input costs. FCX estimates Africa's average unit net cash costs would approximate $1.03 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming an average cobalt price of $14 per pound for fourth-quarter 2011. Africa's unit net cash costs for 2011 would change by approximately $0.03 per pound for each $2 per pound change in the average price of cobalt during fourth-quarter 2011. Molybdenum. FCX is the world's largest producer of molybdenum. FCX conducts molybdenum mining operations at its wholly owned Henderson underground mine in Colorado, is developing the Climax molybdenum mine and sells molybdenum produced from its North and South America copper mines. Development Activities. Construction activities at the Climax molybdenum mine are approximately 80 percent complete. FCX plans to commence production during 2012. Production from the Climax molybdenum mine is expected to ramp up to a rate of 20 million pounds per year during 2013 and, depending on market conditions, may be increased to 30 million pounds per year. FCX intends to operate the Climax and Henderson molybdenum mines in a flexible manner to meet market requirements. FCX believes that Climax is one of the most attractive primary molybdenum development projects in the world, with large-scale production capacity, attractive cash costs and future growth options. Estimated remaining costs for the initial phase of the project approximate $135 million. Operating Data. Following is summary consolidated operating data for the Molybdenum operations for the third quarters and first nine months of 2011 and 2010:     Three Months Ended     Nine Months EndedSeptember 30,September 30,   2011     20102011     2010Molybdenum (millions of recoverable pounds) Productiona 11 10 30 30 Sales, excluding purchasesb 19 17 60 50 Average realized price per pound $ 16.34 $ 16.06 $ 17.57 $ 16.43   Unit net cash cost per pound of molybdenumc $ 6.24 $ 5.94 $ 6.19 $ 5.75 a.   Reflects production at the Henderson molybdenum mine. b. Includes sales of molybdenum produced at the North and South America copper mines. c. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”   Consolidated molybdenum sales of 19 million pounds in third-quarter 2011 were higher than third-quarter 2010 sales of 17 million pounds. For the year 2011, FCX expects molybdenum sales to approximate 78 million pounds (including production of approximately 45 million pounds from the North and South America copper mines), compared with 67 million pounds in 2010 (including production of 32 million pounds from the North and South America copper mines). Unit net cash costs at the Henderson mine of $6.24 per pound of molybdenum in third-quarter 2011 were higher than unit net cash costs of $5.94 per pound in third-quarter 2010, primarily reflecting higher input costs, including labor and materials. Based on current sales volume and cost estimates, FCX expects average unit net cash costs for the Henderson mine to approximate $6.50 per pound of molybdenum for the year 2011. EXPLORATION ACTIVITIES FCX is conducting exploration activities near its existing mines with a focus on opportunities to expand reserves that will support the development of additional future production capacity in the large minerals districts where it currently operates. Favorable exploration results indicate opportunities for significant future potential reserve additions in North and South America and in the Tenke Fungurume minerals district. The drilling data in North America continue to indicate the potential for expanded sulfide production. Exploration spending for the year 2011 is expected to approximate $250 million, compared with $113 million in 2010. Exploration activities will continue to focus primarily on the potential for future reserve additions in FCX's existing minerals districts. PROVISIONAL PRICING AND OTHER For the first nine months of 2011, 55 percent of FCX's mined copper was sold in concentrate, 22 percent as rod from North America operations and 23 percent as cathode. Under the long-established structure of sales agreements prevalent in the industry, substantially all of FCX's copper concentrate and cathode sales are provisionally priced at the time of shipment. The provisional prices are finalized in a contractually specified future month (generally one to four months from the shipment date) primarily based on quoted London Metal Exchange (LME) monthly average spot prices. Because a significant portion of FCX's concentrate and cathode sales in any quarterly period usually remain subject to final pricing, the quarter-end forward price is a major determinant of recorded revenues and the average recorded copper price for the period. LME spot copper prices averaged $4.07 per pound during third-quarter 2011, compared to FCX's recorded average price of $3.60 per pound. At June 30, 2011, FCX had provisionally priced copper sales at its copper mining operations, primarily South America and Indonesia, totaling 435 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average of $4.27 per pound. Lower prices during third-quarter 2011 resulted in adjustments to these provisionally priced copper sales and unfavorably impacted third-quarter 2011 consolidated revenues by $213 million ($100 million to net income attributable to common stock or $0.11 per share), compared with adjustments to the June 30, 2010, provisionally priced copper sales that favorably impacted third-quarter 2010 consolidated revenues by $191 million ($85 million to net income attributable to common stock or $0.09 per share). Adjustments to the December 31, 2010, provisionally priced copper sales unfavorably impacted consolidated revenues by $12 million ($5 million to net income attributable to common stock or $0.01 per share) for the first nine months of 2011, compared with adjustments to the December 31, 2009, provisionally priced copper sales that unfavorably impacted consolidated revenues by $23 million ($9 million to net income attributable to common stock or $0.01 per share) for the first nine months of 2010. At September 30, 2011, FCX had provisionally priced copper sales at its copper mining operations, primarily South America and Indonesia, totaling 406 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of $3.18 per pound, subject to final pricing over the next several months. FCX estimates that each $0.05 change in the price realized from the September 30, 2011, provisional price recorded would have an approximate $13 million effect on its 2011 net income attributable to common stock. The LME spot copper price on October 18, 2011, was $3.30 per pound. FCX defers recognizing profits on its sales from its Indonesia and South America mining operations to Atlantic Copper and on 25 percent of Indonesia's mining sales to PT Smelting (PT-FI's 25 percent-owned Indonesian smelting unit) until final sales to third parties occur. FCX's net deferred profits on its Indonesia and South America concentrate inventories at Atlantic Copper and PT Smelting to be recognized in future periods' net income attributable to common stock totaled $101 million at September 30, 2011. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in FCX's net deferred profits and quarterly earnings. CASH FLOWS FCX generated operating cash flows of $1.8 billion for third-quarter 2011 and $5.9 billion for the first nine months of 2011. These amounts are net of working capital sources (uses) of $256 million for the third quarter and $(126) million for the nine-month period. Based on current 2011 sales volume and cost estimates and assuming average prices of $3.25 per pound of copper, $1,600 per ounce of gold and $14 per pound of molybdenum for fourth-quarter 2011, FCX's consolidated operating cash flows are estimated to approximate $7 billion for the year 2011. The impact of price changes during fourth-quarter 2011 on operating cash flows would approximate $75 million for each $0.10 per pound change in the average price of copper, $10 million for each $50 per ounce change in the average price of gold and $10 million for each $2 per pound change in the average price of molybdenum. Capital expenditures, including capitalized interest, totaled $717 million for third-quarter 2011 and $1.7 billion for the first nine months of 2011. FCX's capital expenditures are currently estimated to approximate $2.6 billion for the year 2011, including $1.4 billion for major projects and $1.2 billion for sustaining capital. Major projects for 2011 primarily include underground development activities at Grasberg, construction activities at the Climax molybdenum mine and completion of the initial phase of the sulfide ore project at El Abra. FCX is also considering additional investments at several of its sites. Capital spending plans will continue to be reviewed and adjusted in response to changes in market conditions and other factors. CASH AND DEBT At September 30, 2011, FCX had consolidated cash of $5.1 billion. Net of noncontrolling interests' share, taxes and other costs, cash available to the parent company totaled $4.2 billion as shown below (in billions):   September 30,2011 Cash at domestic companiesa $ 2.5 Cash at international operations 2.6   Total consolidated cash and cash equivalents 5.1 Less: Noncontrolling interests' share (0.8 ) Cash, net of noncontrolling interests' share 4.3 Less: Withholding taxes and other (0.1 ) Net cash available$4.2     a.     Includes cash at FCX's parent company and North America operations At September 30, 2011, FCX had $3.5 billion in debt. FCX had no borrowings and $44 million of letters of credit issued under its revolving credit facility resulting in total availability of approximately $1.5 billion at September 30, 2011. Since January 1, 2009, FCX has repaid $3.8 billion in debt resulting in estimated annual interest savings of approximately $260 million based on current interest rates. FCX does not have significant debt maturities in the near term (a total of $4 million through 2016); however, FCX may consider opportunities to prepay debt in advance of scheduled maturities. FCX has $3.0 billion in debt that is redeemable in whole or in part, at its option, at make-whole redemption prices prior to April 2012, and afterwards at stated redemption prices. FINANCIAL POLICY FCX has a long-standing tradition of seeking to build shareholder value through investing in projects with attractive rates of return and returning cash to shareholders through common stock dividends and share purchases. In addition to FCX's current annual common stock dividend of $1.00 per share ($0.25 per share quarterly), on June 1, 2011, FCX paid a supplemental common stock dividend of $0.50 per share. For the first nine months of 2011, FCX has paid common stock dividends of $1.2 billion, which includes $474 million for the supplemental dividend paid on June 1, 2011. FCX intends to continue to maintain a strong financial position, invest aggressively in attractive growth projects and provide cash returns to shareholders. The Board will continue to review FCX's financial policy on an ongoing basis. WEBCAST INFORMATION A conference call with securities analysts to discuss FCX's third-quarter 2011 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing “www.fcx.com.” A replay of the webcast will be available through Friday, November 18, 2011. FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the world's largest producer of molybdenum. The company's portfolio of assets includes the Grasberg minerals district, the world's largest copper and gold mine in terms of recoverable reserves; significant mining operations in the Americas, including the large-scale Morenci and Safford minerals districts in North America and the Cerro Verde and El Abra operations in South America; and the Tenke Fungurume minerals district in the DRC. Additional information about FCX is available on FCX's website at “www.fcx.com.” Cautionary Statement and Regulation G Disclosure:This press release contains forward-looking statements in which FCX discusses its potential future performance.Forward-looking statements are all statements other than statements of historical facts, such as those statements regarding projected ore grades and milling rates, projected production and sales volumes, projected unit net cash costs, projected operating cash flows, projected capital expenditures, exploration efforts and results, mine production and development plans, the impact of deferred intercompany profits on earnings, liquidity, other financial commitments and tax rates, the impact of copper, gold, molybdenum and cobalt price changes, potential prepayments of debt, future dividend payments and potential share purchases.The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,” “will,” “should,” “to be,” and any similar expressions are intended to identify those assertions as forward-looking statements.The declaration of dividends is at the discretion of FCX's Board of Directors (the Board) and will depend on FCX's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.FCX cautions readers that forward-looking statements are not guarantees of future performance and its actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements.Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include commodity prices, mine sequencing, production rates, industry risks, regulatory changes, political risks, the potential effects of violence in Indonesia, the resolution of administrative disputes in the Democratic Republic of Congo, weather- and climate-related risks, labor relations, including the resolution of labor negotiations and strikes in Indonesia and Peru, environmental risks, litigation results, currency translation risks and other factors described in more detail under the heading “Risk Factors” in FCX's Annual Report on Form 10-K for the year ended December 31, 2010, filed with the U.S. Securities and Exchange Commission (SEC) as updated by our subsequent filings with the SEC.Investors are cautioned that many of the assumptions on which our forward-looking statements are based are likely to change after our forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs, some aspects of which we may or may not be able to control. Further, we may make changes to our business plans that could or will affect our results. We caution investors that we do not intend to update our forward-looking statements notwithstanding any changes in our assumptions, changes in our business plans, our actual experience or other changes, and we undertake no obligation to update any forward-looking statements more frequently than quarterly.This press release also contains certain financial measures such as unit net cash (credits) costs per pound of copper and per pound of molybdenum.As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX's consolidated financial statements are in the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”   FREEPORT-McMoRan COPPER & GOLD INC.SELECTED OPERATING DATA           Three Months Ended September 30, Production Sales COPPER (millions of recoverable pounds) 2011 2010 2011 2010 (FCX's net interest in %)North America Morenci (85%) 134 a 109   a 129 a 111 a Bagdad (100%) 48 47 48 49 Safford (100%) 36 29 34 33 Sierrita (100%) 46 39 44 39 Miami (100%) 17 4 15 4 Tyrone (100%) 19 21 19 21 Chino (100%) 22 9 18 9 Other (100%) —   1   —   1   Total North America 322   259   307   267     South America Cerro Verde (53.56%) 157 165 161 179 El Abra (51%) 72 76 73 77 Candelaria/Ojos del Salado (80%) 96   115   88   121   Total South America 325   356   322   377     Indonesia Grasberg (90.64%)b 233   358   253   364     Africa Tenke Fungurume (57.75%) 71   69   65   73     Consolidated951   1,042   947   1,081   Less noncontrolling interests 180   199   179   210   Net771   843   768   871     Consolidated sales from mines 947 1,081 Purchased copper 51   78   Total copper sales, including purchases998   1,159     Average realized price per pound $ 3.60 $ 3.50   GOLD(thousands of recoverable ounces) (FCX's net interest in %) North America (100%) 3 1 2 1 South America (80%) 25 29 23 30 Indonesia (90.64%)b 357   462   384   466   Consolidated385   492   409   497   Less noncontrolling interests 38   49   41   49   Net347   443   368   448     Consolidated sales from mines 409 497 Purchased gold 1   1   Total gold sales, including purchases 410   498     Average realized price per ounce $ 1,693 $ 1,266   MOLYBDENUM (millions of recoverable pounds) (FCX's net interest in %) Henderson (100%) 11 10 N/A N/A North America (100%) 10 a 7 N/A N/A Cerro Verde (53.56%) 2   2   N/A N/A Consolidated23   19   19   17   Less noncontrolling interests 1   1   1   1   Net22   18   18   16     Consolidated sales from mines 19 17 Purchased molybdenum —   —   Total molybdenum sales, including purchases19   17     Average realized price per pound $ 16.34 $ 16.06   COBALT (millions of contained pounds) (FCX's net interest in %)Consolidated - Tenke Fungurume (57.75%) 6   5   6   6   Less noncontrolling interests 3   2   2   2   Net3   3   4   4     Average realized price per pound $ 10.05 $ 11.93   a. Amounts are net of Morenci's 15 percent joint venture partner's interest.b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.   FREEPORT-McMoRan COPPER & GOLD INC.SELECTED OPERATING DATA (continued)           Nine Months Ended September 30, Production Sales COPPER (millions of recoverable pounds) 2011 2010 2011 2010 (FCX's net interest in %)North America Morenci (85%) 391 a 321 a 389 a 336 a Bagdad (100%) 145 148 152 161 Safford (100%) 101 108 102 125 Sierrita (100%) 131 111 129 120 Miami (100%) 46 10 40 11 Tyrone (100%) 56 61 60 65 Chino (100%) 45 25 40 27 Other (100%) 2   2   2   2   Total North America 917   786   914   847     South America Cerro Verde (53.56%) 502 496 503 485 El Abra (51%) 186 244 183 238 Candelaria/Ojos del Salado (80%) 281   267   279   272   Total South America 969   1,007   965   995     Indonesia Grasberg (90.64%)b 778   913   796   919     Africa Tenke Fungurume (57.75%) 204   195   200   194     Consolidated2,868   2,901   2,875   2,955   Less noncontrolling interests 540   571   538   564   Net2,328   2,330   2,337   2,391     Consolidated sales from mines 2,875 2,955 Purchased copper 185   143   Total copper sales, including purchases3,060   3,098     Average realized price per pound $ 3.94 $ 3.33   GOLD (thousands of recoverable ounces) (FCX's net interest in %) North America (100%) 6 4 5 4 South America (80%) 73 68 72 69 Indonesia (90.64%)b 1,123   1,185   1,168   1,200   Consolidated1,202   1,257   1,245   1,273   Less noncontrolling interests 119   124   124   126   Net1,083   1,133   1,121   1,147     Consolidated sales from mines 1,245 1,273 Purchased gold 1   1   Total gold sales, including purchases 1,246   1,274     Average realized price per ounce $ 1,565 $ 1,204   MOLYBDENUM (millions of recoverable pounds) (FCX's net interest in %) Henderson (100%) 30 30 N/A N/A North America (100%) 27 a 18 N/A N/A Cerro Verde (53.56%) 8   5   N/A N/A Consolidated65   53   60   50   Less noncontrolling interests 4   2   3   2   Net61   51   57   48     Consolidated sales from mines 60 50 Purchased molybdenum —   2   Total molybdenum sales, including purchases60   52     Average realized price per pound $ 17.57 $ 16.43   COBALT (millions of contained pounds) (FCX's net interest in %)Consolidated - Tenke Fungurume (57.75%) 18   14   19   13   Less noncontrolling interests 8   6   8   5   Net10   8   11   8     Average realized price per pound $ 10.71 $ 11.51   a. Amounts are net of Morenci's 15 percent joint venture partner's interest.b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.   FREEPORT-McMoRan COPPER & GOLD INC.SELECTED OPERATING DATA (continued)                 Three Months Ended Nine Months Ended September 30, September 30, 2011 2010 2011 2010 100% North America Copper MinesSolution Extraction/Electrowinning (SX/EW) Operations Leach ore placed in stockpiles (metric tons per day) 872,200 653,400 841,700 634,000 Average copper ore grade (percent) 0.25 0.22 0.25 0.24 Copper production (millions of recoverable pounds) 199 179 582 563   Mill Operations Ore milled (metric tons per day) 225,800 190,500 220,100 183,000 Average ore grades (percent): Copper 0.38 0.32 0.37 0.31 Molybdenum 0.03 0.03 0.03 0.02 Copper recovery rate (percent) 84.5 82.6 83.5 83.0 Production (millions of recoverable pounds): Copper 146 100 404 280 Molybdenum 10 7 27 18   100% South America MiningSX/EW Operations Leach ore placed in stockpiles (metric tons per day) 244,100 281,000 249,500 261,500 Average copper ore grade (percent) 0.54 0.39 0.48 0.42 Copper production (millions of recoverable pounds) 111 122 314 385   Mill Operations Ore milled (metric tons per day) 185,700 193,800 192,300 187,100 Average ore grades: Copper (percent) 0.66 0.69 0.66 0.64 Gold (grams per metric ton) 0.12 0.11 0.12 0.10 Molybdenum (percent) 0.02 0.02 0.02 0.02 Copper recovery rate (percent) 89.1 90.7 90.0 90.0 Production (recoverable): Copper (millions of pounds) 214 234 655 622 Gold (thousands of ounces) 25 29 73 68 Molybdenum (millions of pounds) 2 2 8 5   100% Indonesia Mining Ore milled (metric tons per day) 152,200 228,900 197,900 228,800 Average ore grades: Copper (percent) 0.90 0.92 0.80 0.84 Gold (grams per metric ton) 1.14 0.92 0.92 0.81 Recovery rates (percent): Copper 89.8 89.1 88.2 88.8 Gold 82.4 83.6 81.3 80.6 Production (recoverable): Copper (millions of pounds) 237 362 803 975 Gold (thousands of ounces) 408 513 1,261 1,298   100% Africa Mining Ore milled (metric tons per day) 12,000 11,800 10,800 10,100 Average ore grades (percent): Copper 3.21 3.20 3.42 3.55 Cobalt 0.41 0.39 0.40 0.40 Copper recovery rate (percent) 91.4 90.5 92.0 91.0 Production (millions of pounds): Copper (recoverable) 71 69 204 195 Cobalt (contained) 6 5 18 14   100% Henderson Molybdenum Mine Ore milled (metric tons per day) 24,500 23,000 23,300 23,000 Average molybdenum ore grade (percent) 0.24 0.25 0.24 0.25 Molybdenum production (millions of recoverable pounds) 11 10 30 30     FREEPORT-McMoRan COPPER & GOLD INC.CONSOLIDATED STATEMENTS OF INCOME (Unaudited)                 Three Months Ended Nine Months Ended September 30, September 30, 2011 2010 2011 2010 (In Millions, Except Per Share Amounts) Revenues $ 5,195 a $ 5,152 a $ 16,718 a $ 13,379 a Cost of sales: Production and delivery 2,570 2,266 7,504 6,234 Depreciation, depletion and amortization 257   268   756   788   Total cost of sales 2,827 2,534 8,260 7,022 Selling, general and administrative expenses 102 81 323 277 Exploration and research expenses 78 35 194 104 Environmental obligations and shutdown costs 38   3   98   5   Total costs and expenses 3,045   2,653   8,875   7,408   Operating income 2,150 b 2,499 b 7,843 b 5,971 b Interest expense, net (78 ) c (103 ) c (250 ) c (370 ) c Losses on early extinguishment of debt — — (68 ) (77 ) Other income (expense), net 28   (19 ) 40   2   Income before income taxes and equity in affiliated companies' net earnings 2,100 2,377 7,565 5,526 Provision for income taxes (808 ) (845 ) (2,698 ) (1,956 ) Equity in affiliated companies' net earnings 2   1   14   10   Net income 1,294 1,533 4,881 3,580 Net income attributable to noncontrolling interests (241 ) (355 ) (961 ) (793 ) Preferred dividends —   d —   d —   d (63 ) Net income attributable to FCX common stockholders $ 1,053   a,b $ 1,178   a,b $ 3,920   a,b $ 2,724   a,b   Net income per share attributable to FCX common stockholders: Basic $ 1.11   $ 1.25   e $ 4.14   $ 3.01   e Diluted $ 1.10   $ 1.24   e $ 4.10   $ 2.94   e   Weighted-average common shares outstanding: Basic 948   941   e 947   906   e Diluted 955   947   e 955   947   e   Dividends declared per share of common stock $ 0.25   $ 0.15   e $ 1.25   $ 0.375   e   a.     Includes favorable (unfavorable) adjustments to provisionally priced copper sales recognized in prior periods totaling $(213) million ($(100) million to net income attributable to common stockholders) in third-quarter 2011, $191 million ($85 million to net income attributable to common stockholders) in third-quarter 2010, $(12) million ($(5) million to net income attributable to common stockholders) for the first nine months of 2011 and $(23) million ($(9) million to net income attributable to common stockholders) for the first nine months of 2010.   b. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net increases (reductions) of $167 million ($84 million to net income attributable to common stockholders) in third-quarter 2011, $(57) million ($(38) million to net income attributable to common stockholders) in third-quarter 2010, $168 million ($82 million to net income attributable to common stockholders) for the first nine months of 2011 and $(122) million ($(66) million to net income attributable to common stockholders) for the first nine months of 2010.   c. Consolidated interest expense, excluding capitalized interest, totaled $105 million in third-quarter 2011, $126 million in third-quarter 2010, $325 million for the first nine months of 2011 and $409 million for the first nine months of 2010. Lower interest expense in the 2011 periods primarily reflects the impact of debt repayments during 2010 and the first nine months of 2011.   d. During 2010, FCX's 6 3/4% Mandatorily Convertible Preferred Stock automatically converted into shares of FCX common stock; as a result, FCX no longer has requirements to pay preferred dividends.   e. Amounts have been adjusted to reflect the February 1, 2011, two-for-one stock split.     FREEPORT-McMoRan COPPER & GOLD INC.CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)           September 30, December 31, 2011 2010 (In Millions) ASSETS Current assets: Cash and cash equivalents $ 5,128 $ 3,738 Trade accounts receivable 1,139 2,132 Other accounts receivable 307 293 Inventories: Product 1,231 1,409 Materials and supplies, net 1,323 1,169 Mill and leach stockpiles 1,167 856 Other current assets 413   254   Total current assets 10,708 9,851 Property, plant, equipment and development costs, net 17,966 16,785 Long-term mill and leach stockpiles 1,599 1,425 Intangible assets, net 321 328 Other assets 1,114   997   Total assets $ 31,708   $ 29,386     LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 2,580 $ 2,441 Dividends payable 240 240 Current portion of reclamation and environmental obligations 201 207 Accrued income taxes 110 648 Rio Tinto's share of joint venture cash flows 46 132 Current portion of debt 4   95   Total current liabilities 3,181 3,763 Long-term debt, less current portion 3,531 4,660 Deferred income taxes 3,365 2,873 Reclamation and environmental obligations, less current portion 2,139 2,071 Other liabilities 1,441   1,459   Total liabilities 13,657 14,826 Equity: FCX stockholders' equity: Common stock 107 107 Capital in excess of par value 18,974 18,751 Retained earnings (deficit) 144 (2,590 ) Accumulated other comprehensive loss (314 ) (323 ) Common stock held in treasury (3,554 ) (3,441 ) Total FCX stockholders' equity 15,357 12,504 Noncontrolling interests 2,694   2,056   Total equity 18,051   14,560   Total liabilities and equity $ 31,708   $ 29,386       FREEPORT-McMoRan COPPER & GOLD INC.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)     Nine Months Ended September 30, 2011       2010 (In Millions) Cash flow from operating activities: Net income $ 4,881 $ 3,580 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 756 788 Stock-based compensation 92 93 Charges for reclamation and environmental obligations, including accretion 144 117 Payments of reclamation and environmental obligations (131 ) (139 ) Losses on early extinguishment of debt 68 77 Deferred income taxes 419 252 Increase in long-term mill and leach stockpiles (174 ) (73 ) Changes in other assets and liabilities (34 ) 16 Other, net (21 ) 36 (Increases) decreases in working capital: Accounts receivable 1,034 (391 ) Inventories (266 ) (189 ) Other current assets (152 ) (13 ) Accounts payable and accrued liabilities (101 ) 156 Accrued income and other taxes (641 ) (92 ) Net cash provided by operating activities 5,874   4,218     Cash flow from investing activities: Capital expenditures: North America copper mines (342 ) (140 ) South America (431 ) (283 ) Indonesia (463 ) (311 ) Africa (89 ) (59 ) Molybdenum (317 ) (34 ) Other (107 ) (50 ) Other, net 24   20   Net cash used in investing activities (1,725 ) (857 )   Cash flow from financing activities: Proceeds from debt 37 52 Repayments of debt (1,303 ) (1,678 ) Cash dividends and distributions paid: Common stock (1,186 ) (272 ) Preferred stock — (95 ) Noncontrolling interests (350 ) (330 ) Contributions from noncontrolling interests 27 24 Net proceeds from (payments for) stock-based awards 2 (3 ) Excess tax benefit from stock-based awards 23 5 Other, net (9 ) —   Net cash used in financing activities (2,759 ) (2,297 )   Net increase in cash and cash equivalents 1,390 1,064 Cash and cash equivalents at beginning of year 3,738   2,656   Cash and cash equivalents at end of period $ 5,128   $ 3,720     Freeport-McMoRan Copper & Gold Inc.Financial Contacts:Kathleen L. Quirk, 602- 366-8016orDavid P. Joint, 504-582-4203orMedia Contact:Eric E. Kinneberg, 602-366-7994