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Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2009 Results.

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Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX): Net income attributable to common stock for third-quarter 2009 was $925 million, $2.07 per share, compared with $523 million, $1.31 per share, for third-quarter 2008. Net income attributable to common stock for the first nine months of 2009 was $1.6 billion, $3.70 per share, compared with $2.6 billion, $6.20 per share, for the first nine months of 2008. Consolidated sales from mines for third-quarter 2009 totaled 1.0 billion pounds of copper, 706 thousand ounces of gold and 16 million pounds of molybdenum, compared with 1.0 billion pounds of copper, 307 thousand ounces of gold and 19 million pounds of molybdenum for third-quarter 2008. Consolidated sales from mines for the year 2009 are expected to approximate 4.0 billion pounds of copper, 2.5 million ounces of gold and 56 million pounds of molybdenum, including 915 million pounds of copper, 425 thousand ounces of gold and 14 million pounds of molybdenum for fourth-quarter 2009. Consolidated unit net cash costs (net of by-product credits and excluding Tenke Fungurume) averaged $0.50 per pound for third-quarter 2009, compared with $1.29 per pound for third-quarter 2008. Assuming average prices of $1,000 per ounce for gold and $10 per pound for molybdenum for the fourth quarter of 2009, consolidated unit net cash costs are estimated to average approximately $0.60 per pound for the year 2009. Operating cash flows totaled $2.0 billion for third-quarter 2009 and $2.9 billion for the first nine months of 2009. Using estimated sales volumes and assuming average prices of $2.75 per pound for copper, $1,000 per ounce for gold and $10 per pound for molybdenum for the fourth quarter of 2009, operating cash flows for the year 2009 are estimated to exceed $4.0 billion, net of $0.3 billion in working capital requirements. Capital expenditures totaled $244 million for third-quarter 2009 and $1.1 billion for the first nine months of 2009. FCX currently expects capital expenditures to approximate $1.4 billion for the year 2009, including $0.6 billion for sustaining capital and $0.8 billion for major projects (see also Freeport-McMoRan Copper & Gold Inc.).

At September 30, 2009, total debt approximated $6.6 billion and consolidated cash approximated $2.3 billion. During the third quarter of 2009, FCX repaid $340 million of debt through the redemption of its 6 7/8% Senior Notes due 2014 and made open market purchases totaling $191 million for its 8.25% and 8.375% senior notes. Since September 30, 2009, FCX has made additional open-market debt purchases totaling $107 million. These transactions reduced total debt by $638 million and will result in annual interest cost savings approximating $48 million. Conversion of Preferred Stock. During the third quarter of 2009, FCX called for redemption its 5 1/2% Convertible Perpetual Preferred Stock. Holders of $831 million of FCX's preferred stock converted their shares of preferred stock into 17.9 million common shares. Annual preferred dividend savings approximate $46 million. Common Stock Dividend. FCX announced that its Board of Directors has reinstated an annual cash dividend on its common stock of $0.60 per share. The Board would declare a quarterly dividend of $0.15 per share, with the initial dividend expected to be paid on February 1, 2010.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter 2009 net income attributable to common stock of $925 million, $2.07 per share, compared with $523 million, $1.31 per share, for the third quarter of 2008. For the nine months ended September 30, 2009, FCX...

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