EX-12.1 6 exhibit12_1.htm EXHIBIT 12.1 Exhibit 12.1
Exhibit 12.1

FREEPORT-McMoRan COPPER & GOLD INC.

Computation of Ratio of Earnings
to Fixed Charges:

   
Years Ended December 31,
  
   
2005
  
2004
  
2003
  
2002
  
2001
  
   
(In Thousands)
  
Income from continuing operations
  
$
995,127
  
$
202,267
  
$
181,660
  
$
164,654
  
$
113,025
  
Add:
                                
Provision for income taxes
    
915,068
    
330,680
    
338,053
    
245,518
    
202,979
  
Cumulative effect of accounting changes, net
    
-
    
-
    
15,593
    
3,049
    
-
  
Equity in PT Smelting (earnings) losses
    
(9,302
)
  
(2,045
)
  
(5,609
)
  
4,181
    
5,137
  
Minority interests’ share of net income
    
126,743
    
41,437
    
48,469
    
36,441
    
42,772
  
Interest expense, net
    
131,639
    
148,103
    
197,017
    
171,209
    
173,595
  
Rental expense factor
    
1,697
    
1,342
    
1,027
    
-
    
-
  
Earnings available for fixed charges
  
$
2,160,972
  
$
721,784
  
$
776,210
  
$
625,052
  
$
537,508
  
                                 
Interest expense, net
  
$
131,639
  
$
148,103
  
$
197,017
  
$
171,209
  
$
173,595
  
Capitalized interest
    
4,132
    
2,860
    
2,994
    
12,245
    
9,438
  
Rental expense factor (a)
    
1,697
    
1,342
    
1,027
    
-
    
-
  
Fixed charges
  
$
137,468
  
$
152,305
  
$
201,038
  
$
183,454
  
$
183,033
  
                                 
Ratio of earnings to fixed charges (b)
    
15.7x
    
4.7x
    
3.9x
    
3.4x
    
2.9x
  

Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends:
                                
   
Years Ended December 31,
  
   
2005
  
2004
  
2003
  
2002
  
2001
  
   
(In Thousands)
  
Income from continuing operations
  
$
995,127
  
$
202,267
  
$
181,660
  
$
164,654
  
$
113,025
  
Add:
                                
Provision for income taxes
    
915,068
    
330,680
    
338,053
    
245,518
    
202,979
  
Cumulative effect of accounting changes, net
    
-
    
-
    
15,593
    
3,049
    
-
  
Equity in PT Smelting (earnings) losses
    
(9,302
)
  
(2,045
)
  
(5,609
)
  
4,181
    
5,137
  
Minority interests’ share of net income
    
126,743
    
41,437
    
48,469
    
36,441
    
42,772
  
Interest expense, net
    
131,639
    
148,103
    
197,017
    
171,209
    
173,595
  
Rental expense factor
    
1,697
    
1,342
    
1,027
    
-
    
-
  
Earnings available for fixed charges
  
$
2,160,972
  
$
721,784
  
$
776,210
  
$
625,052
  
$
537,508
  
                                 
Interest expense, net
  
$
131,639
  
$
148,103
  
$
197,017
  
$
171,209
  
$
173,595
  
Capitalized interest
    
4,132
    
2,860
    
2,994
    
12,245
    
9,438
  
Rental expense factor (a)
    
1,697
    
1,342
    
1,027
    
-
    
-
  
Preferred dividends
    
128,172
    
103,108
    
60,045
    
69,179
    
70,563
  
Fixed charges
  
$
265,640
  
$
255,413
  
$
261,083
  
$
252,633
  
$
253,596
  
                                 
Ratio of earnings to fixed charges (c)
    
8.1x
    
2.8x
    
3.0x
    
2.5x
    
2.1x
  

(a)  
Portion of rent deemed representative of an interest factor.
(b)  
For purposes of this calculation, earnings consist of income from continuing operations before income taxes, minority interests and fixed charges. Fixed charges include interest and that portion of rent deemed representative of interest.
(c)  
For purposes of this calculation, we assume that our preferred stock dividend requirements were equal to the pre-tax earnings that would be required to cover those dividend requirements.