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Freeport-McMoRan Copper & Gold Inc.

Reports Second-Quarter and Six-Month2012 Results

▪ Net income attributable to common stock for second-quarter2012 was $710 million, $0.74 per share, compared with net income of $1.4 billion, $1.43 per share, for second-quarter2011. Net income attributable to common stock for the first six months of2012 was $1.5 billion, $1.55 per share, compared with $2.9 billion, $3.00 per share, for the first six months of2011.

▪ Consolidated sales from mines for second-quarter2012 totaled 927 million pounds of copper, 266 thousand ounces of gold and 20 million pounds of molybdenum, compared with 1.0 billion pounds of copper, 356 thousand ounces of gold and 21 million pounds of molybdenum for second-quarter2011.

▪ Consolidated sales from mines for the year 2012 are expected to approximate 3.6 billion pounds of copper, 1.1 million ounces of gold and 81 million pounds of molybdenum, including 885 million pounds of copper, 225 thousand ounces of gold and 20 million pounds of molybdenum for third-quarter2012.

▪ Consolidated unit net cash costs (net of by-product credits) averaged $1.49 per pound of copper for second-quarter2012, compared with $0.93 per pound for second-quarter2011. Based on current 2012 sales volume and cost estimates and assuming average prices of $1,600 per ounce for gold and $13 per pound for molybdenum for the second half of2012, consolidated unit net cash costs (net of by-product credits) are estimated to average $1.47 per pound of copper for the year 2012.

▪ Operating cash flows totaled $1.2 billionfor second-quarter2012 and $2.0 billion (net of $774 million in working capital uses and other tax payments) for the first six months of2012, compared with $1.7 billion for second-quarter2011 and $4.0 billion (net of $382 million in working capital uses and other tax payments) for the first six months of2011. Based on current 2012 sales volume and cost estimates and assuming average prices of $3.50 per pound for copper, $1,600 per ounce for gold and $13 per pound for molybdenum for the second half of2012, operating cash flows are estimated to approximate $4.0 billion for the year 2012 (net of an estimated $1.2 billion in working capital uses and other tax payments).

▪ Capital expenditures totaled $840 million for second-quarter2012 and $1.5 billion for the first six months of2012, compared with $527 million for second-quarter2011 and $1.0 billion for the first six months of2011. Capital expenditures are expected to approximate $4.0 billion for the year 2012, including $2.5 billion for major projects and $1.5 billion for sustaining capital.

▪ During second-quarter 2012, the Climax molybdenum mine began commercial production. Production from the Climax mine is expected to ramp up to a rate of 20 million pounds of molybdenum per year during 2013.

▪ At June 30, 2012, consolidated cash approximated $4.5 billionand total debt approximated $3.5 billion.

▪ In May 2012, FCX paid a quarterly common stock dividend of $0.3125 per share, following the February 2012 authorization by the Board of Directors to increase the annual dividend rate to $1.25 per share.

Freeport-McMoRan Copper & Gold1

PHOENIX, AZ, July 19, 2012 - Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported second-quarter2012 net income attributable to common stock of $710 million, $0.74 per share, compared with $1.4 billion, $1.43 per share, for second-quarter2011. Second-quarter 2012 net income included charges for environmental obligations and related litigation reserves totaling $53 million ($0.06 per share), compared with $40 million ($0.04 per share) in second-quarter 2011. For the first six months of2012, FCX reported net income attributable to common stock of $1.5 billion, $1.55 per share, compared with $2.9 billion, $3.00 per share, for the first six months of2011.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, "Our second-quarter results reflect our global team's focus on achieving strong operating results in a safe and efficient fashion, and the pursuit of opportunities to grow our production and large resource base.  We are on track to increase our annual copper production by more than 25 percent over the next three years through financially attractive brownfield investments. We are positive about the long-term fundamentals of the metals we produce, our geographically diverse portfolio of large-scale operations with long-lived reserves and mineral resources, and the strong track record of our team to execute our plans."

SUMMARY FINANCIAL AND OPERATING DATA

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Financial Data (in millions, except per share amounts)
Revenuesa	$	4,475		$	5,814		$	9,080		$	11,523
Operating incomeb	$	1,311	c	$	2,757	c	$	3,045	c	$	5,693	c
Net income attributable to common stock	$	710	c	$	1,368	c, d	$	1,474	c, d	$	2,867	c, d
Diluted net income per share of common stock	$	0.74	c	$	1.43	c, d	$	1.55	c, d	$	3.00	c, d
Diluted weighted-average common shares outstanding	953			956			954			956
Operating cash flows	$	1,182	e	$	1,680	e	$	1,983	e	$	4,039	e
Capital expenditures	$	840		$	527		$	1,547		$	1,032
Mining Operating Data
Copper (millions of recoverable pounds)
Production	887			967			1,720			1,917
Sales, excluding purchases	927			1,002			1,754			1,928
Average realized price per pound	$	3.53		$	4.22		$	3.61		$	4.24
Site production and delivery costs per poundf	$	2.01		$	1.63		$	1.98		$	1.62
Unit net cash costs per poundf	$	1.49		$	0.93		$	1.38		$	0.87
Gold (thousands of recoverable ounces)
Production	251			351			503			817
Sales, excluding purchases	266			356			554			836
Average realized price per ounce	$	1,588		$	1,509		$	1,639		$	1,466
Molybdenum (millions of recoverable pounds)
Production	20			22			41			42
Sales, excluding purchases	20			21			41			41
Average realized price per pound	$	15.44		$	18.16		$	15.39		$	18.13

a. Includes the impact of adjustments to provisionally priced sales recognized in prior periods (refer to the "Consolidated Statements of Income" on page IV for further discussion).

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 charges for adjustments to environmental obligations and related litigation reserves totaling $66 million ($53 million to net income or $0.06 per share) for the second quarter and first six months of 2012 and $49 million ($40 million to net income or $0.04 per share) for the second quarter and first six months of 2011.

d. Includes losses on early extinguishment of debt totaling $54 million ($0.06 per share) in second-quarter 2011, $149 million ($0.16 per share) for the first six months of2012 and $60 million ($0.06 per share) for the first six months of 2011.

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e. Includes working capital uses and other tax payments of $54 million for second-quarter2012, $496 million for second-quarter2011, $774 million for the first six months of2012 and $382 million for the first six months of2011.

f. 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."

OPERATIONS

Consolidated.Second-quarter2012 consolidated sales of 927 million pounds of copper and 266 thousand ounces of gold were higher than the April 2012 estimates of 895 million pounds of copper and 235 thousand ounces of gold primarily reflecting higher copper sales volumes in North America and higher gold sales volumes in Indonesia, principally timing related. Second-quarter2012 consolidated sales were lower than second-quarter 2011 sales of 1.0 billion pounds of copper and 356 thousand ounces of gold primarily reflecting lower ore grades and production rates in Indonesia. Lower copper sales volumes also reflected lower ore grades in South America, partly offset by increased production in North America and Africa.

Operations and productivity at PT Freeport Indonesia have continued to improve following the first-quarter 2012 work interruptions in connection with efforts to resume normal operations. PT Freeport Indonesia's milling rates averaged 179,500 metric tons of ore per day in second-quarter2012, compared with the first-quarter 2012 average of 114,800 metric tons of ore per day. Mining operations in the Grasberg open pit are approaching normal levels and underground mining operations at the Deep Ore Zone (DOZ) underground mine continue to be ramped up following the 2011 work stoppages. Mining rates at the DOZ underground mine averaged 45,400 metric tons per day in second-quarter 2012 and are expected to reach 80,000 metric tons per day in fourth-quarter 2012.

Second-quarter2012 consolidated molybdenum sales of 20 million pounds approximated the April 2012 estimate of 20 million pounds and second-quarter2011 sales of 21 million pounds.

Consolidated sales from mines for the year 2012 are expected to approximate 3.6 billion pounds of copper, 1.1 million ounces of gold and 81 million pounds of molybdenum, including 885 million pounds of copper, 225 thousand ounces of gold and 20 million pounds of molybdenum in third-quarter2012. FCX's revised 2012 estimates are lower than previous estimates reported in April by approximately 85 million pounds of copper and 60 thousand ounces of gold primarily because of mine sequencing changes and slower underground ramp-up at PT Freeport Indonesia and revisions to El Abra production.

As anticipated, consolidated average unit net cash costs (net of by-product credits) of $1.49 per pound of copper in second-quarter2012 were higher than unit net cash costs of $0.93 per pound in second-quarter2011 primarily because of lower volumes in Indonesia, higher mining rates in North America and lower by-product credits.

Quarterly unit net cash costs will vary with fluctuations in sales volumes and average realized prices for gold and molybdenum. Assuming average prices of $1,600 per ounce of gold and $13 per pound of molybdenum for the second half of2012 and achievement of current 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 $1.47 per pound of copper for the year 2012. Projected unit net cash costs for 2012 are slightly higher than previous estimates reported in April primarily because of lower by-product credits. The impact of price changes for the second half of2012 on consolidated unit net cash costs would approximate $0.01 per pound for each $50 per ounce change in the average price of gold and $0.01 per pound for each $2 per pound change in the average price of molybdenum. Assuming consistent commodity price assumptions, unit net cash costs for 2013 are expected to be lower than 2012 because of projected increased copper and gold volumes at Grasberg.

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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, certain of FCX's North America copper mines (Sierrita, Bagdad, Morenci and Chino) also produce molybdenum concentrates.

Operating and Development Activities. FCX has completed projects to increase production at its North America copper mines, including restarting milling operations and increasing mining rates at Morenci and Chino, and restarting the Miami mine. Ramp up activities at Chino are continuing, with annual production of approximately 250 million pounds of copper targeted in 2014. FCX continues to evaluate a number of opportunities to invest in additional production capacity at several of its North America copper mines. Exploration results in recent years indicate the potential for significant additional sulfide development in North America.

At Morenci, FCX completed a feasibility study to expand mining and milling capacity to process additional sulfide ores identified through exploratory drilling. The approximate $1.4 billion project would target incremental annual production of approximately 225 million pounds of copper in 2014 through an increase in 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 mining rates from the current level of 700,000 short tons per day to 900,000 short tons per day. FCX has commenced initial construction and engineering, and procurement activities are in progress.

Operating Data. Following is summary consolidated operating data for the North America copper mines for the second quarters and first six months of2012 and 2011:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Copper (millions of recoverable pounds)
Production	331			313			668			595
Sales, excluding purchases	361			331			699			607
Average realized price per pound	$	3.57		$	4.19		$	3.68		$	4.28
Molybdenum (millions of recoverable pounds)
Productiona	9			10			19			17
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	1.88		$	1.78		$	1.84		$	1.76
By-product credits, primarily molybdenumb	(0.36		)	(0.52		)	(0.39		)	(0.50		)
Treatment charges	0.10			0.10			0.12			0.10
Unit net cash costsc	$	1.62		$	1.36		$	1.57		$	1.36

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. Molybdenum credits reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.

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 copper sales volumes from North America of 361 million pounds in second-quarter2012 were higher than second-quarter2011 sales of 331 million pounds primarily reflecting increased production at Chino and Safford.

FCX expects sales from the North America copper mines to approximate 1.3 billion pounds of copper for the year 2012, compared with 1.2 billion pounds of copper in 2011.

As anticipated, average unit net cash costs (net of by-product credits) for the North America copper mines of $1.62 per pound of copper in second-quarter2012 were higher than unit net cash costs of $1.36 per pound in second-quarter2011 reflecting increased mining rates and lower molybdenum credits, partly offset by higher volumes.

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FCX estimates that average unit net cash costs (net of by-product credits) for the North America copper mines would approximate $1.65 per pound of copper for the year 2012, based on current sales volume and cost estimates and assuming an average molybdenum price of $13 per pound for the second half of2012. North America's average unit net cash costs for 2012 would change by approximately $0.02 per pound for each $2 per pound change in the average price of molybdenum for the second half of2012.

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 an 80 percent interest in both 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 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.

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. 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 and 15 million pounds of molybdenum beginning in 2016. An environmental impact assessment was filed in fourth-quarter 2011. Permitting is being advanced and engineering and procurement of long-lead items are in progress.

Operating Data. Following is summary consolidated operating data for the South America mining operations for the second quarters and first six months of2012 and 2011:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Copper (millions of recoverable pounds)
Production	304			327			597			644
Sales	301			331			587			643
Average realized price per pound	$	3.51		$	4.24		$	3.56		$	4.24
Gold (thousands of recoverable ounces)
Production	18			24			37			48
Sales	16			25			35			49
Average realized price per ounce	$	1,596		$	1,515		$	1,630		$	1,467
Molybdenum (millions of recoverable pounds)
Productiona	2			3			4			6
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	1.56		$	1.26		$	1.55		$	1.28
By-product credits	(0.23		)	(0.37		)	(0.26		)	(0.37		)
Treatment charges	0.16			0.19			0.16			0.19
Unit net cash costsb	$	1.49		$	1.08		$	1.45		$	1.10

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."

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Copper sales from South America mining of 301 million pounds in second-quarter2012 were lower than second-quarter2011 sales of 331 million pounds primarily reflecting anticipated lower ore grades at Cerro Verde and Candelaria, partly offset by increased production at El Abra.

FCX expects South America's sales to approximate of 1.2 billion pounds of copper and 100 thousand ounces of gold for the year 2012, compared with 2011 sales of 1.3 billion pounds of copper and 101 thousand ounces of gold. Copper sales estimates for South America are approximately 35 million pounds lower than previous estimates reported in April because of revisions to El Abra production.

As anticipated, average unit net cash costs (net of by-product credits) for South America of $1.49 per pound of copper in second-quarter2012 were higher than unit net cash costs of $1.08 per pound in second-quarter2011, primarily reflecting lower copper sales volumes, lower by-product credits and increased mining costs.     

FCX estimates that average unit net cash costs (net of by-product credits) for South America mining would approximate $1.48 per pound of copper for the year 2012, based on current sales volume and cost estimates and assuming average prices of $1,600 per ounce of gold and $13 per pound of molybdenum for the second half of2012.

Indonesia Mining. Through its 90.64 percent owned and wholly consolidated subsidiary PT Freeport Indonesia, FCX operates the world's largest copper and gold mine in terms of reserves at its Grasberg operations in Papua, Indonesia. PT Freeport Indonesia produces copper concentrates, which contain significant quantities of gold and also silver.

Operating and Development Activities. FCX has several projects in progress 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 over several years to approximately 240,000 metric tons of ore per day following the currently anticipated transition from the Grasberg open pit in 2016. Over the next five years, estimated aggregate capital spending on these projects is expected to average $700 million per year ($550 million per year net to PT Freeport Indonesia). Considering the long-term nature and large size of these projects, actual costs could differ materially from these estimates.

The high-grade Big Gossan underground mine, which began producing in fourth-quarter 2010, is expected to reach full rates of 7,000 metric tons of ore per day in 2013. Substantial progress has been made in developing infrastructure and underground workings that will enable access to the underground ore bodies. Development of both the Grasberg Block Cave and Deep Mill Level Zone spurs is advancing, and the tunneling required to reach these underground ore bodies is complete.

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Operating Data.Following is summary consolidated operating data for the Indonesia mining operations for the second quarters and first six months of2012 and 2011:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Copper (millions of recoverable pounds)
Production	173			261			296			545
Sales	183			265			317			543
Average realized price per pound	$	3.49		$	4.26		$	3.56		$	4.23
Gold (thousands of recoverable ounces)
Production	230			325			459			766
Sales	247			330			513			784
Average realized price per ounce	$	1,587		$	1,509		$	1,639		$	1,466
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	3.23		$	1.93		$	3.35		$	1.88
Gold and silver credits	(2.20		)	(2.06		)	(2.75		)	(2.20		)
Treatment charges	0.21			0.18			0.20			0.18
Royalty on metals	0.13			0.17			0.13			0.16
Unit net cash costsa	$	1.37		$	0.22		$	0.93		$	0.02

a. 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."

Indonesia's second-quarter2012 copper sales of 183 million pounds and gold sales of 247 thousand ounces were significantly lower than second-quarter2011 copper sales of 265 million pounds and gold sales of 330 thousand ounces, primarily reflecting anticipated lower ore grades and production rates.

Operations and productivity at PT Freeport Indonesia have continued to improve following the first-quarter 2012 work interruptions in connection with efforts to resume normal operations. PT Freeport Indonesia's milling rates averaged 179,500 metric tons of ore per day in second-quarter2012, compared with the first-quarter 2012 average of 114,800 metric tons of ore per day. Mining operations in the Grasberg open pit are approaching normal levels and underground mining operations at the DOZ underground mine continue to be ramped up following the 2011 work stoppages. Mining rates at the DOZ underground mine averaged 45,400 metric tons per day in second-quarter 2012 and are expected to reach 80,000 metric tons per day in fourth-quarter 2012.

At the Grasberg mine, the sequencing of mining areas with varying ore grades also causes fluctuations in the timing of ore production resulting in varying quarterly and annual sales of copper and gold. FCX expects sales from Indonesia to approximate 750 million pounds of copper and 960 thousand ounces of gold for the year 2012, compared with 846 million pounds of copper and 1.3 million ounces of gold for the year 2011. PT Freeport Indonesia's revised sales estimates for 2012 are lower than previous estimates reported in April by approximately 50 million pounds of copper and 60 thousand ounces of gold because of a deferral of access to high-grade material in the open pit to future periods and a slower than expected ramp-up of the DOZ underground mine. FCX expects sales from Indonesia to increase in 2013 as PT Freeport Indonesia gains access to higher ore grades.

Indonesia's unit net cash costs (including gold and silver credits) of $1.37 per pound of copper in second-quarter2012 were higher than unit net cash costs of $0.22 per pound in second-quarter2011 primarily reflecting lower sales volumes.

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. FCX estimates Indonesia's average unit net cash costs (net of gold and silver credits) would approximate $1.24 per pound of copper for the year 2012, based on current sales volume and cost estimates and assuming an average gold price of $1,600 per ounce for the second half of2012. Projected unit net cash costs for 2012 are higher than

Freeport-McMoRan Copper & Gold7

previous estimates reported in April primarily because of lower copper sales volumes and lower by-product credits. Indonesia's unit net cash costs for 2012 would change by approximately $0.04 per pound for each $50 per ounce change in the average price of gold for the second half of2012. FCX expects Indonesia's unit net cash costs to decline significantly in future years, compared to the year 2012, because of higher projected copper and gold volumes.

Africa Mining. Through its 56 percent owned and wholly consolidated subsidiary Tenke Fungurume Mining S.A.R.L (TFM), FCX operates the Tenke Fungurume (Tenke) mine in the Katanga province of the Democratic Republic of Congo (DRC). In addition to copper, the Tenke mine produces cobalt hydroxide.

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, continue to perform above capacity, with throughput averaging 12,900 metric tons of ore per day in second-quarter2012 and 12,500 metric tons of ore per day for the first six months of2012. Higher mining rates have increased copper production from the initial project capacity of 250 million pounds per year to approximately 290 million pounds per year.

FCX is constructing a second phase of the project, which would include optimizing the current plant and increasing capacity. FCX plans to expand the mill rate to 14,000 metric tons of ore per day and is constructing related processing facilities that would target the addition of approximately 150 million pounds of copper per year in 2013. The approximate $850 million project includes mill upgrades, additional mining equipment, a new tankhouse and a sulphuric acid plant expansion. Construction activities are progressing well and are expected to be completed by year-end 2012.

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. Future expansions are subject to a number of factors, including economic and market conditions, and the business and investment climate in the DRC.

Operating Data.Following is summary consolidated operating data for the Africa mining operations for the second quarters and first six months of2012 and 2011:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Copper (millions of recoverable pounds)
Production	79			66			159			133
Sales	82			75			151			135
Average realized price per pounda	$	3.45		$	4.08		$	3.54		$	4.11
Cobalt (millions of contained pounds)
Production	6			6			12			12
Sales	6			7			11			13
Average realized price per pound	$	8.24		$	11.16		$	8.40		$	11.02
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	1.48		$	1.62		$	1.49		$	1.57
Cobalt creditsb	(0.33		)	(0.77		)	(0.34		)	(0.76		)
Royalty on metals	0.07			0.09			0.08			0.10
Unit net cash costsc	$	1.22		$	0.94		$	1.23		$	0.91

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."

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Copper sales from Africa of 82 million pounds in second-quarter2012 were higher than second-quarter2011 copper sales of 75 million pounds primarily reflecting higher mining and milling rates.

FCX expects Africa's sales to approximate 310 million pounds of copper and 25 million pounds of cobalt for the year 2012, compared with 283 million pounds of copper and 25 million pounds of cobalt for the year 2011.    

Africa's unit net cash costs (net of cobalt credits) of $1.22 per pound of copper in second-quarter2012 were higher than unit net cash costs of $0.94 per pound in second-quarter2011 primarily reflecting lower cobalt credits, partly offset by higher copper volumes.

FCX estimates Africa's average unit net cash costs would approximate $1.16 per pound of copper for the year 2012, based on current sales volume and cost estimates and assuming an average cobalt price of $12 per pound for the second half of2012. Africa's unit net cash costs for 2012 would change by approximately $0.06 per pound for each $2 per pound change in the average price of cobalt for the second half of2012.

Molybdenum. FCX is the world's largest producer of molybdenum. FCX conducts molybdenum mining operations at its wholly owned Henderson underground mine and Climax open-pit mine in Colorado, and also sells molybdenum produced from its North and South America copper mines.

Development Activities.Construction activities at the Climax molybdenum mine, which included the installation of a 25,400 metric ton per day mill facility, mining equipment and environmental management systems, is substantially complete. During second-quarter 2012, the operation began commercial production. Production from Climax is expected to ramp up to a rate of 20 million pounds of molybdenum per year during 2013 and, depending on market conditions, may be increased to 30 million pounds of molybdenum per year. FCX intends to operate the Climax and Henderson mines in a flexible manner to meet market requirements. FCX believes that Climax is one of the most attractive primary molybdenum mines in the world, with large-scale production capacity, attractive cash costs and future growth options.

Operating Data. Following is summary consolidated operating data for the Molybdenum operations for the second quarters and first six months of2012 and 2011:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Molybdenum (millions of recoverable pounds)
Productiona	9		9		18		19
Sales, excluding purchasesb	20		21		41		41
Average realized price per pound	$	15.44	$	18.16	$	15.39	$	18.13
Henderson's unit net cash cost per pound
of molybdenumc	$	6.83	$	6.21	$	6.85	$	6.17

a. Reflects production at the Henderson molybdenum mine. The 2012 periods also include production of 1 million pounds from the Climax molybdenum mine beginning in May 2012.

b. Includes sales of molybdenum produced at the North and South America copper mines.

c. Reflects unit net cash costs for the Henderson molybdenum mine, excluding net noncash and other costs. 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 20 million pounds in second-quarter2012 were slightly lower than second-quarter2011 sales of 21 million pounds. For the year 2012, FCX expects molybdenum sales to approximate 81 million pounds (including production of approximately 42 million pounds from the North and South America copper mines), compared with 79 million pounds in 2011 (including production of 45 million pounds from the North and South America copper mines).

Unit net cash costs at the Henderson mine of $6.83 per pound of molybdenum in second-quarter2012 were higher than unit net cash costs of $6.21 per pound in second-quarter2011 primarily reflecting lower volumes.

Freeport-McMoRan Copper & Gold9

Based on current sales volume and cost estimates, FCX expects average unit net cash costs for the Henderson mine to approximate $7.00 per pound of molybdenum for the year 2012.

EXPLORATION ACTIVITIES

FCX is actively 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. 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 2012 is expected to approximate $275 million, compared to $221 million in 2011. 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 six months of2012, 43 percent of FCX's mined copper was sold in concentrate, 29 percent as rod from North America operations and 28 percent as cathode. Under the long-established structure of sales agreements prevalent in the industry, copper contained in concentrates and cathodes is 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 monthly average spot copper prices on the London Metal Exchange (LME). 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 $3.57 per pound during second-quarter2012, compared to FCX's average realized price of $3.53 per pound.     

At March 31, 2012, FCX had provisionally priced copper sales at its copper mining operations, primarily South America and Indonesia, totaling 214 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $3.83 per pound. Lower prices during second-quarter2012 resulted in adjustments to these provisionally priced copper sales and unfavorably impacted second-quarter2012 consolidated revenues by $75 million ($31 million to net income attributable to common stock or $0.03 per share), compared with adjustments to the March 31, 2011, provisionally priced copper sales that unfavorably impacted second-quarter2011 consolidated revenues by $47 million ($23 million to net income attributable to common stock or $0.02 per share). Adjustments to the December 31, 2011, provisionally priced copper sales favorably impacted consolidated revenues by $101 million ($43 million to net income attributable to common stock or $0.05 per share) for the first six months of2012, compared with adjustments to the December 31, 2010, provisionally priced copper sales that unfavorably impacted consolidated revenues by $12 million ($5 million to net income attributable to common stock or $0.01 per share) for the first six months of of 2011.

At June 30, 2012, FCX had provisionally priced copper sales at its copper mining operations, primarily South America and Indonesia, totaling 329 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of $3.49 per pound, subject to final pricing over the next several months. FCX estimates that each $0.05 change in the price realized from the June 30, 2012, provisional price recorded would have an approximate $22 million effect on its 2012 consolidated revenues ($11 million to net income attributable to common stock). The LME spot copper price closed at $3.45 per pound on July 18, 2012.

FCX defers recognizing profits on its sales from its Indonesia, South America, North America and Africa mining operations to Atlantic Copper and on 25 percent of Indonesia's mining sales to PT Smelting (PT Freeport Indonesia's 25 percent-owned Indonesian smelting unit) until final sales to third parties occur. FCX's net deferred profits on its Indonesia, South America and North America concentrate inventories at Atlantic Copper and PT Smelting to be recognized in future periods' net income attributable to common stock totaled $52 million at June 30, 2012. Refer to the "Consolidated Statements of Income" on page IV for a summary of net impacts from changes in these deferrals. 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. As PT Freeport Indonesia's sales volumes increase in the second half of 2012, FCX expects to defer a significant amount of PT Freeport Indonesia's profit on intercompany sales until final sales to third parties occur.

Freeport-McMoRan Copper & Gold10

CASH FLOWS

FCX generated operating cash flows of $1.2 billion for second-quarter2012 and $2.0 billion for the first six months of2012. These amounts were net of working capital uses and other tax payments of $54 million for the second quarter and $774 million for the six-month period.

Based on current sales volume and cost estimates and assuming average prices of $3.50 per pound of copper, $1,600 per ounce of gold and $13 per pound of molybdenum for the second half of2012, FCX's consolidated operating cash flows are estimated to approximate $4.0 billion for the year 2012 (net of an estimated $1.2 billion in working capital uses and other tax payments). The impact of price changes for the second half of2012 on operating cash flows would approximate $80 million for each $0.05 per pound change in the average price of copper, $25 million for each $50 per ounce change in the average price of gold and $40 million for each $2 per pound change in the average price of molybdenum.

Capital expenditures, including capitalized interest, totaled $840 million for second-quarter2012 and $1.5 billion for the first six months of2012. FCX's capital expenditures are currently estimated to approximate $4.0 billion for the year 2012 (including $2.5 billion for major projects and $1.5 billion for sustaining capital). Major projects for 2012 primarily include underground development activities at Grasberg and the expansion projects at Tenke, Cerro Verde and Morenci. 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 June 30, 2012, FCX had consolidated cash of $4.5 billion. Net of noncontrolling interests' share, taxes and other costs, cash available to the parent company totaled $3.4 billion as shown below (in billions):

	June 30,
	2012
Cash at domestic companiesa	$	1.9
Cash at international operations	2.6
Total consolidated cash and cash equivalents	4.5
Less: Noncontrolling interests' share	(0.9		)
Cash, net of noncontrolling interests' share	3.6
Less: Withholding taxes and other	(0.2		)
Net cash available	$	3.4

a. Includes cash at FCX's parent company and North America operations.

At June 30, 2012, 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 June 30, 2012.

In first-quarter 2012, FCX sold $3.0 billion of senior notes in three tranches with a weighted average interest rate of approximately three percent. FCX used the proceeds from this offering (plus cash on hand), to redeem the remaining $3.0 billion of its 8.375% Senior Notes. Annual interest cost savings associated with this refinancing approximates $160 million. Annual interest cost savings associated with this transaction and debt repayments since January 1, 2009, approximate $420 million per year, based on current interest rates.     

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. FCX's current annual dividend rate is $1.25 per share ($0.3125 per share quarterly). FCX paid common stock dividends of $535 million for the first six months of 2012. 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.

Freeport-McMoRan Copper & Gold11

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's second-quarter2012 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, August 17, 2012.

-----------------------------------------------------------------------------------------------------------

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.    

FCX's portfolio of assets includes the Grasberg minerals district in Indonesia, the world’s largest copper and gold mine in terms of recoverable reserves; significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde and El Abra operations in South America; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. 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, 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 outcome of ongoing discussions with the Indonesian government, 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, 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, 2011, filed with the U.S. Securities and Exchange Commission (SEC) as updated by FCX's subsequent filings with the SEC.

Investors are cautioned that many of the assumptions on which FCX's forward-looking statements are based are likely to change after its forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may or may not be able to control. Further, FCX may make changes to its business plans that could or will affect its results. FCX cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in assumptions, changes in business plans, actual experience or other changes, and FCX undertakes no obligation to update any forward-looking statements.

This press release also contains certain financial measures such as unit net cash 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 & Gold12

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
	Three Months Ended June 30,
	Production		Sales
COPPER (millions of recoverable pounds)	2012	2011	2012		2011
(FCX's net interest in %)
North America
Morenci (85%)a	129	135	141		142
Bagdad (100%)	48	48	52		54
Safford (100%)	46	37	50		38
Sierrita (100%)	39	45	45		46
Miami (100%)	17	15	19		15
Tyrone (100%)	20	18	21		22
Chino (100%)	31	14	32		13
Other (100%)	1	1	1		1
Total North America	331	313	361		331
South America
Cerro Verde (53.56%)	151	170	149		173
El Abra (51%)	82	66	87		60
Candelaria/Ojos del Salado (80%)	71	91	65		98
Total South America	304	327	301		331
Indonesia
Grasberg (90.64%)b	173	261	183		265
Africa
Tenke Fungurume (56%)c	79	66	82		75
Consolidated	887	967	927		1,002
Less noncontrolling interests	175	181	178		186
Net	712	786	749		816
Consolidated sales from mines			927		1,002
Purchased copper			25		57
Total copper sales, including purchases			952		1,059
Average realized price per pound			$	3.53	$	4.22
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	3	2	3		1
South America (80%)	18	24	16		25
Indonesia (90.64%)b	230	325	247		330
Consolidated	251	351	266		356
Less noncontrolling interests	25	35	27		36
Net	226	316	239		320
Consolidated sales from mines			266		356
Purchased gold			1		—
Total gold sales, including purchases			267		356
Average realized price per ounce			$	1,588	$	1,509
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	8	9	N/A		N/A
Climax (100%)d	1	—	N/A		N/A
North America (100%)a	9	10	N/A		N/A
Cerro Verde (53.56%)	2	3	N/A		N/A
Consolidated	20	22	20		21
Less noncontrolling interests	1	2	1		1
Net	19	20	19		20
Consolidated sales from mines			20		21
Purchased molybdenum			—		—
Total molybdenum sales, including purchases			20		21
Average realized price per pound			$	15.44	$	18.16
COBALT (millions of contained pounds)
(FCX's net interest in %)
Consolidated - Tenke Fungurume (56%)c	6	6	6		7
Less noncontrolling interests	2	2	3		3
Net	4	4	3		4
Average realized price per pound			$	8.24	$	11.16
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.
c. Effective March 26, 2012, FCX's interest in Tenke Fungurume was reduced from 57.75 percent to 56 percent (prospectively).
d. Results represent Climax's mining operations since the start of commercial production in May 2012.

I

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
	Six Months Ended June 30,
	Production		Sales
COPPER (millions of recoverable pounds)	2012	2011	2012		2011
(FCX's net interest in %)
North America
Morenci (85%)a	259	257	273		260
Bagdad (100%)	96	97	101		104
Safford (100%)	92	65	95		68
Sierrita (100%)	82	85	89		85
Miami (100%)	37	29	39		25
Tyrone (100%)	40	37	41		41
Chino (100%)	60	23	59		22
Other (100%)	2	2	2		2
Total North America	668	595	699		607
South America
Cerro Verde (53.56%)	290	345	285		342
El Abra (51%)	164	114	166		110
Candelaria/Ojos del Salado (80%)	143	185	136		191
Total South America	597	644	587		643
Indonesia
Grasberg (90.64%)b	296	545	317		543
Africa
Tenke Fungurume (56%)c	159	133	151		135
Consolidated	1,720	1,917	1,754		1,928
Less noncontrolling interests	340	360	336		359
Net	1,380	1,557	1,418		1,569
Consolidated sales from mines			1,754		1,928
Purchased copper			52		134
Total copper sales, including purchases			1,806		2,062
Average realized price per pound			$	3.61	$	4.24
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	7	3	6		3
South America (80%)	37	48	35		49
Indonesia (90.64%)b	459	766	513		784
Consolidated	503	817	554		836
Less noncontrolling interests	50	81	55		83
Net	453	736	499		753
Consolidated sales from mines			554		836
Purchased gold			1		—
Total gold sales, including purchases			555		836
Average realized price per ounce			$	1,639	$	1,466
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	17	19	N/A		N/A
Climax (100%)d	1	—	N/A		N/A
North America (100%)a	19	17	N/A		N/A
Cerro Verde (53.56%)	4	6	N/A		N/A
Consolidated	41	42	41		41
Less noncontrolling interests	2	3	2		2
Net	39	39	39		39
Consolidated sales from mines			41		41
Purchased molybdenum			—		—
Total molybdenum sales, including purchases			41		41
Average realized price per pound			$	15.39	$	18.13
COBALT (millions of contained pounds)
(FCX's net interest in %)
Consolidated - Tenke Fungurume (56%)c	12	12	11		13
Less noncontrolling interests	5	5	5		6
Net	7	7	6		7
Average realized price per pound			$	8.40	$	11.02
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.
c. Effective March 26, 2012, FCX's interest in Tenke Fungurume was reduced from 57.75 percent to 56 percent (prospectively).
d. Results represent Climax's mining operations since the start of commercial production in May 2012.

II

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2012	2011	2012	2011
100% North America Copper Mines
Solution Extraction/Electrowinning (SX/EW) Operations
Leach ore placed in stockpiles (metric tons per day)	948,600	847,500	990,800	829,700
Average copper ore grade (percent)	0.21	0.24	0.22	0.24
Copper production (millions of recoverable pounds)	210	201	428	383
Mill Operations
Ore milled (metric tons per day)	228,300	221,100	232,200	217,300
Average ore grades (percent):
Copper	0.37	0.38	0.37	0.37
Molybdenum	0.03	0.03	0.03	0.03
Copper recovery rate (percent)	85.3	84.3	82.6	83.2
Production (millions of recoverable pounds):
Copper	144	136	286	258
Molybdenum	9	10	19	17
100% South America Mining
SX/EW Operations
Leach ore placed in stockpiles (metric tons per day)	242,700	241,200	219,500	251,600
Average copper ore grade (percent)	0.54	0.47	0.55	0.43
Copper production (millions of recoverable pounds)	113	113	231	203
Mill Operations
Ore milled (metric tons per day)	192,600	197,600	189,300	194,700
Average ore grades:
Copper (percent)	0.58	0.62	0.57	0.65
Gold (grams per metric ton)	0.08	0.11	0.09	0.11
Molybdenum (percent)	0.02	0.02	0.02	0.02
Copper recovery rate (percent)	88.6	89.3	88.9	90.4
Production (recoverable):
Copper (millions of pounds)	191	214	366	441
Gold (thousands of ounces)	18	24	37	48
Molybdenum (millions of pounds)	2	3	4	6
100% Indonesia Mining
Ore milled (metric tons per day)	179,500	220,000	147,100	221,100
Average ore grades:
Copper (percent)	0.57	0.77	0.59	0.77
Gold (grams per metric ton)	0.58	0.79	0.68	0.84
Recovery rates (percent):
Copper	88.9	87.8	89.2	87.5
Gold	76.2	79.5	79.0	80.8
Production (recoverable):
Copper (millions of pounds)	173	282	296	566
Gold (thousands of ounces)	230	394	459	853
100% Africa Mining
Ore milled (metric tons per day)	12,900	9,700	12,500	10,200
Average ore grades (percent):
Copper	3.45	3.67	3.53	3.54
Cobalt	0.36	0.41	0.37	0.40
Copper recovery rate (percent)	90.6	92.9	90.9	92.3
Production (millions of pounds):
Copper (recoverable)	79	66	159	133
Cobalt (contained)	6	6	12	12
100% Henderson Molybdenum Mine
Ore milled (metric tons per day)	22,000	22,000	20,900	22,700
Average molybdenum ore grade (percent)	0.22	0.24	0.24	0.24
Molybdenum production (millions of recoverable pounds)	8	9	17	19

III

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2012				2011				2012				2011
	(In Millions, Except Per Share Amounts)
Revenues	$	4,475		a	$	5,814		a	$	9,080		a	$	11,523		a
Cost of sales:
Production and delivery	2,622				2,557				5,050				4,934
Depreciation, depletion and amortization	291				267				558				499
Total cost of sales	2,913				2,824				5,608				5,433
Selling, general and administrative expenses	97				107				201				221
Exploration and research expenses	73				66				135				116
Environmental obligations and shutdown costs	81			b	60			b	91			b	60			b
Total costs and expenses	3,164				3,057				6,035				5,830
Operating income	1,311			c	2,757			c	3,045			c	5,693			c
Interest expense, net	(43		)	d	(74		)	d	(106		)	d	(172		)	d
Losses on early extinguishment of debt	—				(61		)		(168		)		(68		)
Other income, net	51				2				38				12
Income before income taxes and equity in
affiliated companies' net (losses) earnings	1,319				2,624				2,809				5,465
Provision for income taxes	(422		)		(906		)		(913		)		(1,890		)
Equity in affiliated companies' net (losses) earnings	(3		)		8				(1		)		12
Net income	894				1,726				1,895				3,587
Net income attributable to noncontrolling interests	(184		)		(358		)		(421		)		(720		)
Net income attributable to FCX common stockholders	$	710		a,b,c	$	1,368		a,b,c	$	1,474		a,b,c	$	2,867		a,b,c
Net income per share attributable to FCX
common stockholders:
Basic	$	0.75			$	1.44			$	1.55			$	3.03
Diluted	$	0.74			$	1.43			$	1.55			$	3.00
Weighted-average common shares outstanding:
Basic	949				947				949				947
Diluted	953				956				954				956
Dividends declared per share of common stock	$	0.3125			$	0.75			$	0.625			$	1.00

a. Includes (unfavorable) favorable adjustments to provisionally priced copper sales recognized in the prior periods totaling $(75) million ($(31) million to net income attributable to common stockholders) in second-quarter2012, $(47) million ($(23) million to net income attributable to common stockholders) in second-quarter2011, $101 million ($43 million to net income attributable to common stockholders) for the first six months of2012 and $(12) million ($(5) million to net income attributable to common stockholders) for the first six months of2011.

b. Includes charges for adjustments to environmental obligations and related litigation reserves totaling $66 million ($53 million to net income) for the second quarter and first six months of 2012 and $49 million ($40 million to net income) for the second quarter and first six months of 2011.

c. 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 additions (reductions) of $14 million ($17 million to net income attributable to common stockholders) in second-quarter2012, $13 million ($17 million to net income attributable to common stockholders) in second-quarter2011, $(64) million ($(35) million to net income attributable to common stockholders) for the first six months of2012 and $36 million ($18 million to net income attributable to common stockholders) for the first six months of2011.

d. Consolidated interest expense, excluding capitalized interest, totaled $55 million in second-quarter2012, $97 million in second-quarter2011, $154 million for the first six months of2012 and $220 million for the first six months of2011. Lower interest expense primarily reflects the impact of the first-quarter 2012 refinancing transaction and other debt repayments during 2011.

IV

FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
	June 30,			December 31,
	2012			2011
	(In Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4,508		$	4,822
Trade accounts receivable	1,052			892
Other accounts receivable	263			250
Inventories:
Mill and leach stockpiles	1,466			1,289
Materials and supplies, net	1,377			1,354
Product	1,182			1,226
Other current assets	328			214
Total current assets	10,176			10,047
Property, plant, equipment and development costs, net	19,613			18,449
Long-term mill and leach stockpiles	1,848			1,686
Long-term receivables	860			675
Intangible assets, net	324			325
Other assets	868			888
Total assets	$	33,689		$	32,070
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,364		$	2,297
Dividends payable	299			240
Current portion of reclamation and environmental obligations	227			236
Accrued income taxes	48			163
Current portion of debt	4			4
Total current liabilities	2,942			2,940
Deferred income taxes	3,550			3,255
Long-term debt, less current portion	3,519			3,533
Reclamation and environmental obligations, less current portion	2,235			2,138
Other liabilities	1,553			1,651
Total liabilities	13,799			13,517
Equity:
FCX stockholders' equity:
Common stock	107			107
Capital in excess of par value	19,068			19,007
Retained earnings	1,426			546
Accumulated other comprehensive loss	(448		)	(465		)
Common stock held in treasury	(3,575		)	(3,553		)
Total FCX stockholders' equity	16,578			15,642
Noncontrolling interests	3,312			2,911
Total equity	19,890			18,553
Total liabilities and equity	$	33,689		$	32,070

V

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six Months Ended
	June 30,
	2012			2011
	(In Millions)
Cash flow from operating activities:
Net income	$	1,895		$	3,587
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	558			499
Stock-based compensation	54			69
Pension plans contributions	(75		)	—
Charges for reclamation and environmental obligations, including accretion	112			79
Payments of reclamation and environmental obligations	(98		)	(88		)
Losses on early extinguishment of debt	168			68
Deferred income taxes	288			337
Increase in long-term mill and leach stockpiles	(162		)	(98		)
Other, net	17			(32		)
(Increases) decreases in working capital and other tax payments:
Accounts receivable	(182		)	577
Inventories	(160		)	(346		)
Other current assets	(11		)	—
Accounts payable and accrued liabilities	(117		)	(184		)
Accrued income taxes and other tax payments	(304		)	(429		)
Net cash provided by operating activities	1,983			4,039
Cash flow from investing activities:
Capital expenditures:
North America copper mines	(297		)	(204		)
South America	(392		)	(257		)
Indonesia	(387		)	(301		)
Africa	(297		)	(40		)
Molybdenum	(153		)	(162		)
Other	(21		)	(68		)
Other, net	(4		)	19
Net cash used in investing activities	(1,551		)	(1,013		)
Cash flow from financing activities:
Proceeds from debt	3,016			23
Repayments of debt	(3,171		)	(1,288		)
Cash dividends paid:
Common stock	(535		)	(949		)
Noncontrolling interests	(38		)	(195		)
Contributions from noncontrolling interests	—			13
Net payments for stock-based awards	(3		)	(3		)
Excess tax benefit from stock-based awards	7			22
Other, net	(22		)	(9		)
Net cash used in financing activities	(746		)	(2,386		)
Net (decrease) increase in cash and cash equivalents	(314		)	640
Cash and cash equivalents at beginning of year	4,822			3,738
Cash and cash equivalents at end of period	$	4,508		$	4,378

VI

.FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

PRODUCT REVENUES AND UNIT NET CASH COSTS

Unit net cash costs per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of FCX's mining operations expressed on a basis relating to the primary metal product for the respective operations. FCX uses this measure for the same purpose and for monitoring operating performance by its mining operations. This information differs from measures of performance determined in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although FCX's measures may not be comparable to similarly titled measures reported by other companies.

FCX presents gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. FCX uses the by-product method in its presentation of gross profit per pound of copper because (i) the majority of its revenues are copper revenues, (ii) it mines ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of FCX's costs to revenues from the copper, gold, molybdenum and other metals it produces, (iv) it is the method used to compare mining operations in certain industry publications and (v) it is the method used by FCX's management and Board of Directors to monitor operations. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent FCX's metals sales volumes and realized prices change.

FCX shows revenue adjustments for prior period open sales as separate line items. Because these adjustments do not result from current period sales, FCX has reflected these separately from revenues on current period sales. Noncash and other costs consist of items such as stock-based compensation costs, write-offs of equipment and/or unusual charges. They are removed from site production and delivery costs in the calculation of unit net cash costs. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. Following are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in FCX's consolidated financial statements.

VII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,286		$	1,286		$	121	$	21	$	1,428
Site production and delivery, before net noncash
and other costs shown below	676			614			62		12		688
By-product creditsa	(130		)	—			—		—		—
Treatment charges	38			37			—		1		38
Net cash costs	584			651			62		13		726
Depreciation, depletion and amortization	90			84			5		1		90
Noncash and other costs, net	38			37			1		—		38
Total costs	712			772			68		14		854
Revenue adjustments, primarily for pricing
on prior period open sales	(8		)	(8		)	—		—		(8		)
Gross profit	$	566		$	506		$	53	$	7	$	566
Copper sales (millions of recoverable pounds)	360			360
Molybdenum sales (millions of recoverable pounds)c							9
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	3.57		$	3.57		$	13.53
Site production and delivery, before net noncash
and other costs shown below	1.88			1.71			7.00
By-product creditsa	(0.36		)	—			—
Treatment charges	0.10			0.10			—
Unit net cash costs	1.62			1.81			7.00
Depreciation, depletion and amortization	0.25			0.23			0.57
Noncash and other costs, net	0.11			0.10			0.07
Total unit costs	1.98			2.14			7.64
Revenue adjustments, primarily for pricing
on prior period open sales	(0.02		)	(0.02		)	—
Gross profit per pound	$	1.57		$	1.41		$	5.89
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,428		$	688		$	90
Treatment charges	N/A			38			N/A
Net noncash and other costs	N/A			38			N/A
Revenue adjustments	(8		)	N/A			N/A
Eliminations and other	7			18			4
North America copper mines	1,427			782			94
South America mining	1,016			490			72
Indonesia mining	956			594			53
Africa mining	322			152			40
Molybdenum	334			277			14
Rod & Refining	1,290			1,281			3
Atlantic Copper Smelting & Refining	695			669			10
Corporate, other & eliminations	(1,565		)	(1,623		)	5
As reported in FCX's consolidated financial statements	$	4,475		$	2,622		$	291
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

VIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,384		$	1,384		$	160	$	23	$	1,567
Site production and delivery, before net noncash
and other costs shown below	587			528			62		10		600
By-product creditsa	(170		)	—			—		—		—
Treatment charges	32			31			—		1		32
Net cash costs	449			559			62		11		632
Depreciation, depletion and amortization	67			62			4		1		67
Noncash and other costs, net	33			33			—		—		33
Total costs	549			654			66		12		732
Revenue adjustments, primarily for pricing
on prior period open sales	(5		)	(5		)	—		—		(5		)
Gross profit	$	830		$	725		$	94	$	11	$	830
Copper sales (millions of recoverable pounds)	330			330
Molybdenum sales (millions of recoverable pounds)c							10
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	4.19		$	4.19		$	16.97
Site production and delivery, before net noncash
and other costs shown below	1.78			1.60			6.61
By-product creditsa	(0.52		)	—			—
Treatment charges	0.10			0.09			—
Unit net cash costs	1.36			1.69			6.61
Depreciation, depletion and amortization	0.20			0.19			0.39
Noncash and other costs, net	0.10			0.09			0.05
Total unit costs	1.66			1.97			7.05
Revenue adjustments, primarily for pricing
on prior period open sales	(0.02		)	(0.02		)	—
Gross profit per pound	$	2.51		$	2.20		$	9.92
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,567		$	600		$	67
Treatment charges	N/A			32			N/A
Net noncash and other costs	N/A			33			N/A
Revenue adjustments	(5		)	N/A			N/A
Eliminations and other	(3		)	6			4
North America copper mines	1,559			671			71
South America mining	1,448			441			66
Indonesia mining	1,564			518			60
Africa mining	378			156			38
Molybdenum	413			286			16
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,628		)	(1,621		)	5
As reported in FCX's consolidated financial statements	$	5,814		$	2,557		$	267
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

IX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	2,566		$	2,566		$	257	$	42	$	2,865
Site production and delivery, before net noncash
and other costs shown below	1,283			1,198			91		24		1,313
By-product creditsa	(269		)	—			—		—		—
Treatment charges	79			76			—		3		79
Net cash costs	1,093			1,274			91		27		1,392
Depreciation, depletion and amortization	179			169			7		3		179
Noncash and other costs, net	59			58			1		—		59
Total costs	1,331			1,501			99		30		1,630
Revenue adjustments	7			7			—		—		7
Gross profit	$	1,242		$	1,072		$	158	$	12	$	1,242
Copper sales (millions of recoverable pounds)	697			697
Molybdenum sales (millions of recoverable pounds)c							19
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	3.68		$	3.68		$	13.83
Site production and delivery, before net noncash
and other costs shown below	1.84			1.72			4.92
By-product creditsa	(0.39		)	—			—
Treatment charges	0.12			0.11			—
Unit net cash costs	1.57			1.83			4.92
Depreciation, depletion and amortization	0.26			0.24			0.37
Noncash and other costs, net	0.08			0.08			0.04
Total unit costs	1.91			2.15			5.33
Revenue adjustments	0.01			0.01			—
Gross profit per pound	$	1.78		$	1.54		$	8.50
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	2,865		$	1,313		$	179
Treatment charges	N/A			79			N/A
Net noncash and other costs	N/A			59			N/A
Revenue adjustments	7			N/A			N/A
Eliminations and other	11			38			8
North America copper mines	2,883			1,489			187
South America mining	2,270			953			134
Indonesia mining	1,906			1,089			99
Africa mining	627			284			72
Molybdenum	674			539			29
Rod & Refining	2,594			2,578			5
Atlantic Copper Smelting & Refining	1,407			1,364			20
Corporate, other & eliminations	(3,281		)	(3,246		)	12
As reported in FCX's consolidated financial statements	$	9,080		$	5,050		$	558
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

X

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	2,593		$	2,593		$	284	$	44	$	2,921
Site production and delivery, before net noncash
and other costs shown below	1,067			959			114		18		1,091
By-product creditsa	(304		)	—			—		—		—
Treatment charges	62			60			—		2		62
Net cash costs	825			1,019			114		20		1,153
Depreciation, depletion and amortization	122			114			7		1		122
Noncash and other costs, net	86			84			2		—		86
Total costs	1,033			1,217			123		21		1,361
Revenue adjustments	(2		)	(2		)	—		—		(2		)
Gross profit	$	1,558		$	1,374		$	161	$	23	$	1,558
Copper sales (millions of recoverable pounds)	605			605
Molybdenum sales (millions of recoverable pounds)c							17
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	4.28		$	4.28		$	16.92
Site production and delivery, before net noncash
and other costs shown below	1.76			1.58			6.81
By-product creditsa	(0.50		)	—			—
Treatment charges	0.10			0.10			—
Unit net cash costs	1.36			1.68			6.81
Depreciation, depletion and amortization	0.20			0.19			0.41
Noncash and other costs, net	0.15			0.14			0.08
Total unit costs	1.71			2.01			7.30
Revenue adjustments	—			—			—
Gross profit per pound	$	2.57		$	2.27		$	9.62
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	2,921		$	1,091		$	122
Treatment charges	N/A			62			N/A
Net noncash and other costs	N/A			86			N/A
Revenue adjustments	(2		)	N/A			N/A
Eliminations and other	1			20			7
North America copper mines	2,920			1,259			129
South America mining	2,850			852			123
Indonesia mining	3,294			1,044			117
Africa mining	687			280			66
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,344		)	(3,377		)	11
As reported in FCX's consolidated financial statements	$	11,523		$	4,934		$	499
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

XI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other			Total
Revenues, excluding adjustments	$	1,057		$	1,057		$	75	a	$	1,132
Site production and delivery, before net noncash
and other costs shown below	469			438			37			475
By-product credits	(69		)	—			—			—
Treatment charges	47			47			—			47
Net cash costs	447			485			37			522
Depreciation, depletion and amortization	71			68			3			71
Noncash and other costs, net	22			14			8			22
Total costs	540			567			48			615
Revenue adjustments, primarily for pricing
on prior period open sales	(68		)	(68		)	—			(68		)
Gross profit	$	449		$	422		$	27		$	449
Copper sales (millions of recoverable pounds)	301			301
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.51		$	3.51
Site production and delivery, before net noncash
and other costs shown below	1.56			1.45
By-product credits	(0.23		)	—
Treatment charges	0.16			0.16
Unit net cash costs	1.49			1.61
Depreciation, depletion and amortization	0.24			0.23
Noncash and other costs, net	0.07			0.05
Total unit costs	1.80			1.89
Revenue adjustments, primarily for pricing
on prior period open sales	(0.22		)	(0.22		)
Gross profit per pound	$	1.49		$	1.40
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,132		$	475		$	71
Treatment charges	(47		)	N/A			N/A
Net noncash and other costs	N/A			22			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(68		)	N/A			N/A
Eliminations and other	(1		)	(7		)	1
South America mining	1,016			490			72
North America copper mines	1,427			782			94
Indonesia mining	956			594			53
Africa mining	322			152			40
Molybdenum	334			277			14
Rod & Refining	1,290			1,281			3
Atlantic Copper Smelting & Refining	695			669			10
Corporate, other & eliminations	(1,565		)	(1,623		)	5
As reported in FCX's consolidated financial statements	$	4,475		$	2,622		$	291

a. Includes gold sales of 16 thousand ounces ($1,596 per ounce average realized price), silver sales of 712 thousand ounces ($28.36 per ounce average realized price) and molybdenum sales of 2 million pounds ($11.55 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other			Total
Revenues, excluding adjustments	$	1,404		$	1,404		$	129	a	$	1,533
Site production and delivery, before net noncash
and other costs shown below	417			382			41			423
By-product credits	(123		)	—			—			—
Treatment charges	62			62			—			62
Net cash costs	356			444			41			485
Depreciation, depletion and amortization	65			61			4			65
Noncash and other costs, net	22			21			1			22
Total costs	443			526			46			572
Revenue adjustments, primarily for pricing
on prior period open sales	(24		)	(24		)	—			(24		)
Gross profit	$	937		$	854		$	83		$	937
Copper sales (millions of recoverable pounds)	331			331
Gross profit per pound of copper:
Revenues, excluding adjustments	$	4.24		$	4.24
Site production and delivery, before net noncash
and other costs shown below	1.26			1.15
By-product credits	(0.37		)	—
Treatment charges	0.19			0.19
Unit net cash costs	1.08			1.34
Depreciation, depletion and amortization	0.19			0.19
Noncash and other costs, net	0.07			0.06
Total unit costs	1.34			1.59
Revenue adjustments, primarily for pricing
on prior period open sales	(0.07		)	(0.07		)
Gross profit per pound	$	2.83		$	2.58
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,533		$	423		$	65
Treatment charges	(62		)	N/A			N/A
Net noncash and other costs	N/A			22			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(24		)	N/A			N/A
Eliminations and other	1			(4		)	1
South America mining	1,448			441			66
North America copper mines	1,559			671			71
Indonesia mining	1,564			518			60
Africa mining	378			156			38
Molybdenum	413			286			16
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,628		)	(1,621		)	5
As reported in FCX's consolidated financial statements	$	5,814		$	2,557		$	267

a. Includes gold sales of 25 thousand ounces ($1,515 per ounce average realized price), silver sales of 766 thousand ounces ($41.03 per ounce average realized price) and molybdenum sales of 3 million pounds ($14.29 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other			Total
Revenues, excluding adjustments	$	2,094		$	2,094		$	164	a	$	2,258
Site production and delivery, before net noncash
and other costs shown below	908			842			77			919
By-product credits	(153		)	—			—			—
Treatment charges	95			95			—			95
Net cash costs	850			937			77			1,014
Depreciation, depletion and amortization	134			127			7			134
Noncash and other costs, net	42			27			15			42
Total costs	1,026			1,091			99			1,190
Revenue adjustments, primarily for pricing
on prior period open sales	104			104			—			104
Gross profit	$	1,172		$	1,107		$	65		$	1,172
Copper sales (millions of recoverable pounds)	587			587
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.56		$	3.56
Site production and delivery, before net noncash
and other costs shown below	1.55			1.43
By-product credits	(0.26		)	—
Treatment charges	0.16			0.16
Unit net cash costs	1.45			1.59
Depreciation, depletion and amortization	0.22			0.22
Noncash and other costs, net	0.07			0.05
Total unit costs	1.74			1.86
Revenue adjustments, primarily for pricing
on prior period open sales	0.18			0.18
Gross profit per pound	$	2.00		$	1.88
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	2,258		$	919		$	134
Treatment charges	(95		)	N/A			N/A
Net noncash and other costs	N/A			42			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	104			N/A			N/A
Eliminations and other	3			(8		)	—
South America mining	2,270			953			134
North America copper mines	2,883			1,489			187
Indonesia mining	1,906			1,089			99
Africa mining	627			284			72
Molybdenum	674			539			29
Rod & Refining	2,594			2,578			5
Atlantic Copper Smelting & Refining	1,407			1,364			20
Corporate, other & eliminations	(3,281		)	(3,246		)	12
As reported in FCX's consolidated financial statements	$	9,080		$	5,050		$	558

a. Includes gold sales of 35 thousand ounces ($1,630 per ounce average realized price), silver sales of 1.4 million ounces ($29.33 per ounce average realized price) and molybdenum sales of 4 million pounds ($11.95 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XIV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other			Total
Revenues, excluding adjustments	$	2,725		$	2,725		$	248	a	$	2,973
Site production and delivery, before net noncash
and other costs shown below	823			757			78			835
By-product credits	(236		)	—			—			—
Treatment charges	121			121			—			121
Net cash costs	708			878			78			956
Depreciation, depletion and amortization	122			115			7			122
Noncash and other costs, net	41			37			4			41
Total costs	871			1,030			89			1,119
Revenue adjustments, primarily for pricing
on prior period open sales	12			(8		)	20			12
Gross profit	$	1,866		$	1,687		$	179		$	1,866
Copper sales (millions of recoverable pounds)	643			643
Gross profit per pound of copper:
Revenues, excluding adjustments	$	4.24		$	4.24
Site production and delivery, before net noncash
and other costs shown below	1.28			1.18
By-product credits	(0.37		)	—
Treatment charges	0.19			0.19
Unit net cash costs	1.10			1.37
Depreciation, depletion and amortization	0.19			0.18
Noncash and other costs, net	0.07			0.06
Total unit costs	1.36			1.61
Revenue adjustments, primarily for pricing
on prior period open sales	0.02			(0.01		)
Gross profit per pound	$	2.90		$	2.62
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	2,973		$	835		$	122
Treatment charges	(121		)	N/A			N/A
Net noncash and other costs	N/A			41			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	12			N/A			N/A
Eliminations and other	(14		)	(24		)	1
South America mining	2,850			852			123
North America copper mines	2,920			1,259			129
Indonesia mining	3,294			1,044			117
Africa mining	687			280			66
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,344		)	(3,377		)	11
As reported in FCX's consolidated financial statements	$	11,523		$	4,934		$	499

a. Includes gold sales of 49 thousand ounces ($1,467 per ounce average realized price), silver sales of 1.5 million ounces ($37.55 per ounce average realized price) and molybdenum sales of 6 million pounds ($15.01 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold			Silver			Total
Revenues, excluding adjustments	$	637		$	637		$	391		$	13	a	$	1,041
Site production and delivery, before net noncash
and other costs shown below	589			361			221			7			589
Gold and silver credits	(402		)	—			—			—			—
Treatment charges	38			23			14			1			38
Royalty on metals	25			15			10			—			25
Net cash costs	250			399			245			8			652
Depreciation and amortization	53			32			20			1			53
Noncash and other costs, net	5			3			2			—			5
Total costs	308			434			267			9			710
Revenue adjustments, primarily for pricing on
prior period open sales	(20		)	(20		)	(2		)	—			(22		)
Gross profit	$	309		$	183		$	122		$	4		$	309
Copper sales (millions of recoverable pounds)	183			183
Gold sales (thousands of recoverable ounces)							247
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.49		$	3.49		$	1,587
Site production and delivery, before net noncash
and other costs shown below	3.23			1.97			898
Gold and silver credits	(2.20		)	—			—
Treatment charges	0.21			0.13			58
Royalty on metals	0.13			0.08			37
Unit net cash costs	1.37			2.18			993
Depreciation and amortization	0.29			0.18			80
Noncash and other costs, net	0.03			0.02			8
Total unit costs	1.69			2.38			1,081
Revenue adjustments, primarily for pricing on
prior period open sales	(0.11		)	(0.11		)	(9		)
Gross profit per pound/ounce	$	1.69		$	1.00		$	497
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,041		$	589		$	53
Treatment charges	(38		)	N/A			N/A
Royalty on metals	(25		)	N/A			N/A
Net noncash and other costs	N/A			5			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	(22		)	N/A			N/A
Indonesia mining	956			594			53
North America copper mines	1,427			782			94
South America mining	1,016			490			72
Africa mining	322			152			40
Molybdenum	334			277			14
Rod & Refining	1,290			1,281			3
Atlantic Copper Smelting & Refining	695			669			10
Corporate, other & eliminations	(1,565		)	(1,623		)	5
As reported in FCX's consolidated financial statements	$	4,475		$	2,622		$	291

a. Includes silver sales of 476 thousand ounces ($27.23 per ounce average realized price).

XVI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold		Silver			Total
Revenues, excluding adjustments	$	1,131		$	1,131		$	498	$	30	a	$	1,659
Site production and delivery, before net noncash
and other costs shown below	511			348			154		9			511
Gold and silver credits	(545		)	—			—		—			—
Treatment charges	48			33			14		1			48
Royalty on metals	44			30			13		1			44
Net cash costs	58			411			181		11			603
Depreciation and amortization	60			41			18		1			60
Noncash and other costs, net	7			5			2		—			7
Total costs	125			457			201		12			670
Revenue adjustments, primarily for pricing on
prior period open sales	(20		)	(20		)	16		1			(3		)
Gross profit	$	986		$	654		$	313	$	19		$	986
Copper sales (millions of recoverable pounds)	265			265
Gold sales (thousands of recoverable ounces)							330
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	4.26		$	4.26		$	1,509
Site production and delivery, before net noncash
and other costs shown below	1.93			1.31			465
Gold and silver credits	(2.06		)	—			—
Treatment charges	0.18			0.13			44
Royalty on metals	0.17			0.11			40
Unit net cash costs	0.22			1.55			549
Depreciation and amortization	0.23			0.15			55
Noncash and other costs, net	0.02			0.02			6
Total unit costs	0.47			1.72			610
Revenue adjustments, primarily for pricing on
prior period open sales	(0.07		)	(0.07		)	48
Gross profit per pound/ounce	$	3.72		$	2.47		$	947
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,659		$	511		$	60
Treatment charges	(48		)	N/A			N/A
Royalty on metals	(44		)	N/A			N/A
Net noncash and other costs	N/A			7			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	(3		)	N/A			N/A
Indonesia mining	1,564			518			60
North America copper mines	1,559			671			71
South America mining	1,448			441			66
Africa mining	378			156			38
Molybdenum	413			286			16
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,628		)	(1,621		)	5
As reported in FCX's consolidated financial statements	$	5,814		$	2,557		$	267

a. Includes silver sales of 832 thousand ounces ($36.16 per ounce average realized price).

XVII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold		Silver			Total
Revenues, excluding adjustments	$	1,128		$	1,128		$	841	$	27	a	$	1,996
Site production and delivery, before net noncash
and other costs shown below	1,059			598			446		15			1,059
Gold and silver credits	(871		)	—			—		—			—
Treatment charges	63			36			26		1			63
Royalty on metals	43			24			18		1			43
Net cash costs	294			658			490		17			1,165
Depreciation and amortization	99			56			42		1			99
Noncash and other costs, net	30			17			13		—			30
Total costs	423			731			545		18			1,294
Revenue adjustments, primarily for pricing on
prior period open sales	13			13			3		—			16
Gross profit	$	718		$	410		$	299	$	9		$	718
Copper sales (millions of recoverable pounds)	317			317
Gold sales (thousands of recoverable ounces)							513
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.56		$	3.56		$	1,639
Site production and delivery, before net noncash
and other costs shown below	3.35			1.89			869
Gold and silver credits	(2.75		)	—			—
Treatment charges	0.20			0.11			52
Royalty on metals	0.13			0.08			35
Unit net cash costs	0.93			2.08			956
Depreciation and amortization	0.31			0.18			81
Noncash and other costs, net	0.09			0.05			25
Total unit costs	1.33			2.31			1,062
Revenue adjustments, primarily for pricing on
prior period open sales	0.04			0.04			5
Gross profit per pound/ounce	$	2.27		$	1.29		$	582
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,996		$	1,059		$	99
Treatment charges	(63		)	N/A			N/A
Royalty on metals	(43		)	N/A			N/A
Net noncash and other costs	N/A			30			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	16			N/A			N/A
Indonesia mining	1,906			1,089			99
North America copper mines	2,883			1,489			187
South America mining	2,270			953			134
Africa mining	627			284			72
Molybdenum	674			539			29
Rod & Refining	2,594			2,578			5
Atlantic Copper Smelting & Refining	1,407			1,364			20
Corporate, other & eliminations	(3,281		)	(3,246		)	12
As reported in FCX's consolidated financial statements	$	9,080		$	5,050		$	558

a. Includes silver sales of 925 thousand ounces ($29.84 per ounce average realized price).

XVIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold			Silver				Total
Revenues, excluding adjustments	$	2,297		$	2,297		$	1,150		$	63		a	$	3,510
Site production and delivery, before net noncash
and other costs shown below	1,022			669			335			18				1,022
Gold and silver credits	(1,195		)	—			—			—				—
Treatment charges	98			64			32			2				98
Royalty on metals	89			58			29			2				89
Net cash costs	14			791			396			22				1,209
Depreciation and amortization	117			77			38			2				117
Noncash and other costs, net	22			15			7			—				22
Total costs	153			883			441			24				1,348
Revenue adjustments, primarily for pricing on
prior period open sales	(11		)	(11		)	(17		)	(1		)		(29		)
Gross profit	$	2,133		$	1,403		$	692		$	38			$	2,133
Copper sales (millions of recoverable pounds)	543			543
Gold sales (thousands of recoverable ounces)							784
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	4.23		$	4.23		$	1,466
Site production and delivery, before net noncash
and other costs shown below	1.88			1.23			427
Gold and silver credits	(2.20		)	—			—
Treatment charges	0.18			0.12			41
Royalty on metals	0.16			0.11			37
Unit net cash costs	0.02			1.46			505
Depreciation and amortization	0.22			0.14			49
Noncash and other costs, net	0.04			0.02			9
Total unit costs	0.28			1.62			563
Revenue adjustments, primarily for pricing on
prior period open sales	(0.02		)	(0.02		)	(22		)
Gross profit per pound/ounce	$	3.93		$	2.59		$	881
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	3,510		$	1,022		$	117
Treatment charges	(98		)	N/A			N/A
Royalty on metals	(89		)	N/A			N/A
Net noncash and other costs	N/A			22			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	(29		)	N/A			N/A
Indonesia mining	3,294			1,044			117
North America copper mines	2,920			1,259			129
South America mining	2,850			852			123
Africa mining	687			280			66
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,344		)	(3,377		)	11
As reported in FCX's consolidated financial statements	$	11,523		$	4,934		$	499

a. Includes silver sales of 1.7 million ounces ($36.65 per ounce average realized price).

XIX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt		Total
Revenues, excluding adjustmentsa	$	284		$	284		$	49	$	333
Site production and delivery, before net noncash
and other costs shown below	121			114			30		144
Cobalt creditsb	(27		)	—			—		—
Royalty on metals	6			5			1		6
Net cash costs	100			119			31		150
Depreciation, depletion and amortization	40			35			5		40
Noncash and other costs, net	8			7			1		8
Total costs	148			161			37		198
Revenue adjustments, primarily for pricing
on prior period open sales	(6		)	(6		)	1		(5		)
Gross profit	$	130		$	117		$	13	$	130
Copper sales (millions of recoverable pounds)	82			82
Cobalt sales (millions of contained pounds)							6
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	3.45		$	3.45		$	8.24
Site production and delivery, before net noncash
and other costs shown below	1.48			1.39			5.09
Cobalt creditsb	(0.33		)	—			—
Royalty on metals	0.07			0.06			0.13
Unit net cash costs	1.22			1.45			5.22
Depreciation, depletion and amortization	0.49			0.43			0.75
Noncash and other costs, net	0.09			0.08			0.14
Total unit costs	1.80			1.96			6.11
Revenue adjustments, primarily for pricing
on prior period open sales	(0.07		)	(0.07		)	0.12
Gross profit per pound	$	1.58		$	1.42		$	2.25
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	333		$	144		$	40
Royalty on metals	(6		)	N/A			N/A
Net noncash and other costs	N/A			8			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(5		)	N/A			N/A
Africa mining	322			152			40
North America copper mines	1,427			782			94
South America mining	1,016			490			72
Indonesia mining	956			594			53
Molybdenum	334			277			14
Rod & Refining	1,290			1,281			3
Atlantic Copper Smelting & Refining	695			669			10
Corporate, other & eliminations	(1,565		)	(1,623		)	5
As reported in FCX's consolidated financial statements	$	4,475		$	2,622		$	291
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt			Total
Revenues, excluding adjustmentsa	$	307		$	307		$	83		$	390
Site production and delivery, before net noncash
and other costs shown below	122			103			43			146
Cobalt creditsb	(58		)	—			—			—
Royalty on metals	7			6			1			7
Net cash costs	71			109			44			153
Depreciation, depletion and amortization	38			32			6			38
Noncash and other costs, net	10			9			1			10
Total costs	119			150			51			201
Revenue adjustments, primarily for pricing
on prior period open sales	(4		)	(4		)	(1		)	(5		)
Gross profit	$	184		$	153		$	31		$	184
Copper sales (millions of recoverable pounds)	75			75
Cobalt sales (millions of contained pounds)							7
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	4.08		$	4.08		$	11.16
Site production and delivery, before net noncash
and other costs shown below	1.62			1.37			5.69
Cobalt creditsb	(0.77		)	—			—
Royalty on metals	0.09			0.08			0.19
Unit net cash costs	0.94			1.45			5.88
Depreciation, depletion and amortization	0.50			0.42			0.81
Noncash and other costs, net	0.16			0.13			0.24
Total unit costs	1.60			2.00			6.93
Revenue adjustments, primarily for pricing
on prior period open sales	(0.04		)	(0.04		)	(0.13		)
Gross profit per pound	$	2.44		$	2.04		$	4.10
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	390		$	146		$	38
Royalty on metals	(7		)	N/A			N/A
Net noncash and other costs	N/A			10			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(5		)	N/A			N/A
Africa mining	378			156			38
North America copper mines	1,559			671			71
South America mining	1,448			441			66
Indonesia mining	1,564			518			60
Molybdenum	413			286			16
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,628		)	(1,621		)	5
As reported in FCX's consolidated financial statements	$	5,814		$	2,557		$	267
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XXI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2012
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt		Total
Revenues, excluding adjustmentsa	$	536		$	536		$	92	$	628
Site production and delivery, before net noncash
and other costs shown below	224			213			56		269
Cobalt creditsb	(50		)	—			—		—
Royalty on metals	12			11			1		12
Net cash costs	186			224			57		281
Depreciation, depletion and amortization	72			64			8		72
Noncash and other costs, net	15			13			2		15
Total costs	273			301			67		368
Revenue adjustments, primarily for pricing
on prior period open sales	8			8			3		11
Gross profit	$	271		$	243		$	28	$	271
Copper sales (millions of recoverable pounds)	151			151
Cobalt sales (millions of contained pounds)							11
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	3.54		$	3.54		$	8.40
Site production and delivery, before net noncash
and other costs shown below	1.49			1.41			5.11
Cobalt creditsb	(0.34		)	—			—
Royalty on metals	0.08			0.07			0.13
Unit net cash costs	1.23			1.48			5.24
Depreciation, depletion and amortization	0.48			0.42			0.71
Noncash and other costs, net	0.10			0.09			0.14
Total unit costs	1.81			1.99			6.09
Revenue adjustments, primarily for pricing
on prior period open sales	0.06			0.06			0.22
Gross profit per pound	$	1.79		$	1.61		$	2.53
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	628		$	269		$	72
Royalty on metals	(12		)	N/A			N/A
Net noncash and other costs	N/A			15			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	11			N/A			N/A
Africa mining	627			284			72
North America copper mines	2,883			1,489			187
South America mining	2,270			953			134
Indonesia mining	1,906			1,089			99
Molybdenum	674			539			29
Rod & Refining	2,594			2,578			5
Atlantic Copper Smelting & Refining	1,407			1,364			20
Corporate, other & eliminations	(3,281		)	(3,246		)	12
As reported in FCX's consolidated financial statements	$	9,080		$	5,050		$	558
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XXII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt		Total
Revenues, excluding adjustmentsa	$	553		$	553		$	146	$	699
Site production and delivery, before net noncash
and other costs shown below	212			183			74		257
Cobalt creditsb	(103		)	—			—		—
Royalty on metals	13			10			3		13
Net cash costs	122			193			77		270
Depreciation, depletion and amortization	66			56			10		66
Noncash and other costs, net	23			19			4		23
Total costs	211			268			91		359
Revenue adjustments, primarily for pricing
on prior period open sales	(1		)	(1		)	2		1
Gross profit	$	341		$	284		$	57	$	341
Copper sales (millions of recoverable pounds)	135			135
Cobalt sales (millions of contained pounds)							13
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	4.11		$	4.11		$	11.02
Site production and delivery, before net noncash
and other costs shown below	1.57			1.36			5.59
Cobalt creditsb	(0.76		)	—			—
Royalty on metals	0.10			0.08			0.18
Unit net cash costs	0.91			1.44			5.77
Depreciation, depletion and amortization	0.49			0.41			0.80
Noncash and other costs, net	0.17			0.15			0.28
Total unit costs	1.57			2.00			6.85
Revenue adjustments, primarily for pricing
on prior period open sales	(0.01		)	(0.01		)	0.16
Gross profit per pound	$	2.53		$	2.10		$	4.33
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	699		$	257		$	66
Royalty on metals	(13		)	N/A			N/A
Net noncash and other costs	N/A			23			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	1			N/A			N/A
Africa mining	687			280			66
North America copper mines	2,920			1,259			129
South America mining	2,850			852			123
Indonesia mining	3,294			1,044			117
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,344		)	(3,377		)	11
As reported in FCX's consolidated financial statements	$	11,523		$	4,934		$	499
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XXIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Henderson Molybdenum Mine Product Revenues and Production Costs and Unit Net Cash Costs
	Three Months Ended June 30,
(In Millions)	2012			2011
Revenues, excluding adjustments	$	130		$	164
Site production and delivery, before net noncash
and other costs shown below	51			50
Treatment charges and other	8			8
Net cash costs	59			58
Depreciation, depletion and amortization	8			8
Noncash and other costs, net	2			1
Total costs	69			67
Gross profita	$	61		$	97
Molybdenum sales (millions of recoverable pounds)	8			9
Gross profit per pound of molybdenum:
Revenues, excluding adjustments	$	15.11		$	17.35
Site production and delivery, before net noncash
and other costs shown below	5.95			5.33
Treatment charges and other	0.88			0.88
Unit net cash costs	6.83			6.21
Depreciation, depletion and amortization	0.95			0.89
Noncash and other costs, net	0.25			0.03
Total unit costs	8.03			7.13
Gross profit per pound	$	7.08		$	10.22
Reconciliation to Amounts Reported
(In Millions)							Depreciation,
				Production			Depletion and
Three Months Ended June 30, 2012	Revenues			and Delivery			Amortization
Totals presented above	$	130		$	51		$	8
Treatment charges and other	(8		)	N/A			N/A
Net noncash and other costs	N/A			2			N/A
Henderson mine	122			53			8
Other molybdenum operations and eliminationsb	212			224			6
Molybdenum	334			277			14
North America copper mines	1,427			782			94
South America mining	1,016			490			72
Indonesia mining	956			594			53
Africa mining	322			152			40
Rod & Refining	1,290			1,281			3
Atlantic Copper Smelting & Refining	695			669			10
Corporate, other & eliminations	(1,565		)	(1,623		)	5
As reported in FCX's consolidated financial statements	$	4,475		$	2,622		$	291
Three Months Ended June 30, 2011
Totals presented above	$	164		$	50		$	8
Treatment charges and other	(8		)	N/A			N/A
Net noncash and other costs	N/A			1			N/A
Henderson mine	156			51			8
Other molybdenum operations and eliminationsb	257			235			8
Molybdenum	413			286			16
North America copper mines	1,559			671			71
South America mining	1,448			441			66
Indonesia mining	1,564			518			60
Africa mining	378			156			38
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,628		)	(1,621		)	5
As reported in FCX's consolidated financial statements	$	5,814		$	2,557		$	267
a. Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum division includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
b. Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced at the North and South America copper mines. Also includes the results of the Climax molybdenum mine, which commenced commercial production in May 2012.

XXIV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Henderson Molybdenum Mine Product Revenues and Production Costs and Unit Net Cash Costs
	Six Months Ended June 30,
(In Millions)	2012			2011
Revenues, excluding adjustments	$	264		$	336
Site production and delivery, before net noncash
and other costs shown below	105			102
Treatment charges and other	15			17
Net cash costs	120			119
Depreciation, depletion and amortization	16			17
Noncash and other costs, net	1			1
Total costs	137			137
Gross profita	$	127		$	199
Molybdenum sales (millions of recoverable pounds)	17			19
Gross profit per pound of molybdenum:
Revenues, excluding adjustments	$	15.07		$	17.36
Site production and delivery, before net noncash
and other costs shown below	5.98			5.29
Treatment charges and other	0.87			0.88
Unit net cash costs	6.85			6.17
Depreciation, depletion and amortization	0.93			0.88
Noncash and other costs, net	0.06			0.04
Total unit costs	7.84			7.09
Gross profit per pound	$	7.23		$	10.27
Reconciliation to Amounts Reported
(In Millions)							Depreciation,
				Production			Depletion and
Six Months Ended June 30, 2012	Revenues			and Delivery			Amortization
Totals presented above	$	264		$	105		$	16
Treatment charges and other	(15		)	N/A			N/A
Net noncash and other costs	N/A			1			N/A
Henderson mine	249			106			16
Other molybdenum operations and eliminationsb	425			433			13
Molybdenum	674			539			29
North America copper mines	2,883			1,489			187
South America mining	2,270			953			134
Indonesia mining	1,906			1,089			99
Africa mining	627			284			72
Rod & Refining	2,594			2,578			5
Atlantic Copper Smelting & Refining	1,407			1,364			20
Corporate, other & eliminations	(3,281		)	(3,246		)	12
As reported in FCX's consolidated financial statements	$	9,080		$	5,050		$	558
Six Months Ended June 30, 2011
Totals presented above	$	336		$	102		$	17
Treatment charges and other	(17		)	N/A			N/A
Net noncash and other costs	N/A			1			N/A
Henderson mine	319			103			17
Other molybdenum operations and eliminationsb	468			423			13
Molybdenum	787			526			30
North America copper mines	2,920			1,259			129
South America mining	2,850			852			123
Indonesia mining	3,294			1,044			117
Africa mining	687			280			66
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,344		)	(3,377		)	11
As reported in FCX's consolidated financial statements	$	11,523		$	4,934		$	499
a. Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum division includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
b. Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced at the North and South America copper mines. Also includes the results of the Climax molybdenum mine, which commenced commercial production in May 2012.

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FREEPORT-McMoRan COPPER & GOLD INC.

PROVISION FOR INCOME TAXES

Following are summaries of the approximate amounts in the calculation of FCX's consolidated provision for income taxes for the second quarters and first six months of2012 and 2011 (in millions, except percentages):

	Three Months Ended June 30,
	2012							2011
					Income Tax						Income Tax
			Effective		(Provision)					Effective	(Provision)
	Incomea		Tax Rate		Benefit			Incomea		Tax Rate	Benefit
U.S.	$	454	24%		$	(110	)	$	595	20%	$	(120	)
South America	445		34%		(151		)	913		35%	(321		)
Indonesia	292		43%		(126		)	944		43%	(405		)
Africa	79		28%		(22		)	136		29%	(40		)
Eliminations and other	49		N/A		(8		)	36		N/A	(28		)
Annualized rate adjustmentb	N/A		N/A		(5		)	N/A		N/A	8
Consolidated FCX	$	1,319	32%	c	$	(422	)	$	2,624	34%	$	(906	)
	Six Months Ended June 30,
	2012							2011
					Income Tax						Income Tax
			Effective		(Provision)					Effective	(Provision)
	Incomea		Tax Rate		Benefit			Incomea		Tax Rate	Benefit
U.S.	$	793	24%		$	(193	)	$	1,242	21%	$	(258	)
South America	1,136		34%		(391		)	1,827		34%	(627		)
Indonesia	643		43%		(276		)	2,105		43%	(901		)
Africa	168		31%		(51		)	240		33%	(80		)
Eliminations and other	69		N/A		1			51		N/A	(39		)
Annualized rate adjustmentb	N/A		N/A		(3		)	N/A		N/A	15
Consolidated FCX	$	2,809	33%	c	$	(913	)	$	5,465	35%	$	(1,890	)

a. Represents income by geographic location before income taxes and equity in affiliated companies' net (losses) earnings.

b. In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its estimated annualized tax rate.

c. FCX's consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which it operates. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to FCX's consolidated effective income tax rate. Assuming average prices of $3.50 per pound for copper, $1,600 per ounce for gold and $13 per pound for molybdenum for the second half of2012 and achievement of current sales volume and cost estimates, FCX estimates its annual consolidated effective tax rate will approximate 33 percent.

XXVI

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS

FCX has organized its operations into five primary divisions - North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum operations. Notwithstanding this structure, FCX internally reports information on a mine-by-mine basis. Therefore, FCX concluded that its operating segments include individual mines or operations. Operating segments that meet certain thresholds are reportable segments, which are separately disclosed in the following table.

Intersegment Sales. Intersegment sales between FCX's operations are based on similar arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

Allocations. FCX allocates certain operating costs, expenses and capital expenditures to the operating divisions and individual segments. However, not all costs and expenses applicable to a mine or operation are allocated. All U.S. federal and state income taxes are recorded and managed at the corporate level, whereas foreign income taxes are recorded and managed at the applicable country. In addition, most exploration and research activities are managed at the corporate level, and those costs along with some selling, general and administrative costs are not allocated to the operating divisions or segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

XXVII

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS (continued)

(In Millions)	North America Copper Mines							South America							Indonesia			Africa
																								Atlantic
																								Copper			Corporate,
			Other					Cerro		Other										Molyb-		Rod &		Smelting			Other &			FCX
	Morenci		Mines			Total		Verde		Mines			Total		Grasberg			Tenke		denum		Refining		& Refining			Eliminations			Total
Three Months Ended June 30, 2012
Revenues:
Unaffiliated customers	$	105	$	(5	)	$	100	$	332	$	546		$	878	$	875	a	$	317	$	334	$	1,283	$	686		$	2		$	4,475
Intersegment	405		922			1,327		151		(13		)	138		81			5		—		7		9			(1,567		)	—
Production and delivery	279		503			782		185		305			490		594			152		277		1,281		669			(1,623		)	2,622
Depreciation, depletion and amortization	33		61			94		33		39			72		53			40		14		3		10			5			291
Selling, general and administrative expenses	1		—			1		—		1			1		27			1		3		—		5			59			97
Exploration and research expenses	—		—			—		—		—			—		—			—		1		—		—			72			73
Environmental obligations and shutdown costs	—		42			42		—		—			—		—			—		—		—		—			39			81
Operating income (loss)	197		311			508		265		188			453		282			129		39		6		11			(117		)	1,311
Interest expense, net	—		1			1		—		—			—		3			—		—		—		3			36			43
Provision for income taxes	—		—			—		96		55			151		126			22		—		—		—			123			422
Total assets at June 30, 2012	2,135		5,356			7,491		5,472		4,081			9,553		5,883			4,318		2,561		327		990			2,566			33,689
Capital expenditures	52		102			154		116		124			240		205			170		58		—		4			9			840
Three Months Ended June 30, 2011
Revenues:
Unaffiliated customers	$	157	$	94		$	251	$	598	$	638		$	1,236	$	1,465	a	$	375	$	413	$	1,421	$	651		$	2		$	5,814
Intersegment	438		870			1,308		138		74			212		99			3		—		6		2			(1,630		)	—
Production and delivery	257		414			671		198		243			441		518			156		286		1,421		685			(1,621		)	2,557
Depreciation, depletion and amortization	30		41			71		36		30			66		60			38		16		2		9			5			267
Selling, general and administrative expenses	1		—			1		1		—			1		28			3		4		—		5			65			107
Exploration and research expenses	1		—			1		—		—			—		—			—		1		—		—			64			66
Environmental obligations and shutdown costs	3		—			3		—		—			—		—			—		—		1		—			56			60
Operating income (loss)	303		509			812		501		439			940		958			181		106		3		(46		)	(197		)	2,757
Interest expense, net	1		2			3		1		—			1		1			1		—		—		4			64			74
Provision for income taxes	—		—			—		159		162			321		405			40		—		—		—			140			906
Total assets at June 30, 2011	1,970		4,797			6,767		4,732		3,558			8,290		5,876			3,744		2,193		359		1,316			2,034			30,579
Capital expenditures	19		66			85		32		85			117		176			29		91		2		16			11			527

a. Includes PT Freeport Indonesia's sales to PT Smelting totaling $368 million in second-quarter2012 and $653 million in second-quarter2011.

XXVIII

FREEPORT-McMoRan COPPER & GOLD INC.
BUSINESS SEGMENTS (continued)
(In Millions)	North America Copper Mines						South America						Indonesia			Africa
																						Atlantic
																						Copper			Corporate,
			Other				Cerro		Other									Molyb-		Rod &		Smelting			Other &			FCX
	Morenci		Mines		Total		Verde		Mines		Total		Grasberg			Tenke		denum		Refining		& Refining			Eliminations			Total
Six Months Ended June 30, 2012
Revenues:
Unaffiliated customers	$	118	$	12	$	130	$	781	$	1,072	$	1,853	$	1,828	a	$	620	$	674	$	2,581	$	1,390		$	4		$	9,080
Intersegment	918		1,835		2,753		278		139		417		78			7		—		13		17			(3,285		)	—
Production and delivery	535		954		1,489		378		575		953		1,089			284		539		2,578		1,364			(3,246		)	5,050
Depreciation, depletion and amortization	64		123		187		63		71		134		99			72		29		5		20			12			558
Selling, general and administrative expenses	1		1		2		1		2		3		60			3		6		—		10			117			201
Exploration and research expenses	—		—		—		—		—		—		—			—		2		—		—			133			135
Environmental obligations and shutdown costs	—		42		42		—		—		—		—			—		—		—		—			49			91
Operating income (loss)	436		727		1,163		617		563		1,180		658			268		98		11		13			(346		)	3,045
Interest expense, net	—		2		2		5		—		5		3			—		—		—		6			90			106
Provision for income taxes	—		—		—		219		172		391		276			51		—		—		—			195			913
Capital expenditures	96		201		297		185		207		392		387			297		153		3		7			11			1,547
Six Months Ended June 30, 2011
Revenues:
Unaffiliated customers	$	293	$	110	$	403	$	1,266	$	1,233	$	2,499	$	2,837	a	$	684	$	787	$	2,902	$	1,407		$	4		$	11,523
Intersegment	824		1,693		2,517		198		153		351		457			3		—		12		8			(3,348		)	—
Production and delivery	467		792		1,259		373		479		852		1,044			280		526		2,902		1,448			(3,377		)	4,934
Depreciation, depletion and amortization	58		71		129		70		53		123		117			66		30		4		19			11			499
Selling, general and administrative expenses	1		1		2		2		1		3		71			5		8		—		13			119			221
Exploration and research expenses	1		—		1		—		—		—		—			—		2		—		—			113			116
Environmental obligations and shutdown costs	3		—		3		—		—		—		—			—		—		1		—			56			60
Operating income (loss)	587		939		1,526		1,019		853		1,872		2,062			336		221		7		(65		)	(266		)	5,693
Interest expense, net	2		3		5		1		—		1		2			3		—		—		8			153			172
Provision for income taxes	—		—		—		322		305		627		901			80		—		—		—			282			1,890
Capital expenditures	48		156		204		56		201		257		301			40		162		5		24			39			1,032

a. Includes PT Freeport Indonesia's sales to PT Smelting totaling $957 million for the first six months of2012 and $1.3 billion for the first six months of2011.

XXIX