News Release Details

FCX Reports Fourth-Quarter and Twelve-Month 2006 Results

01/06/07

NEW ORLEANS--()--

HIGHLIGHTS

  • Fourth-quarter 2006 net income of $426 million, $1.99 per share, compared with net income of $463 million, $2.19 per share, for the fourth quarter of 2005. Net income of $1.4 billion, $6.63 per share, for 2006, compared with $935 million, $4.67 per share, for 2005.
  • Fourth-quarter 2006 sales for PT Freeport Indonesia (PT-FI), FCXs Indonesian mining unit, totaled 433 million pounds of copper and 508 thousand ounces of gold, compared with 468 million pounds of copper and 1.1 million ounces of gold in the fourth quarter of 2005.
  • PT-FIs share of 2006 sales totaled 1.2 billion pounds of copper and 1.7 million ounces of gold, compared with 1.5 billion pounds of copper and 2.8 million ounces of gold for 2005. PT-FIs share of 2007 sales is projected to total 1.1 billion pounds of copper and 1.8 million ounces of gold.
  • FCXs operating cash flows approximated $798 million for the fourth quarter of 2006 and $1.9 billion for 2006. Capital expenditures totaled $73 million for the fourth quarter of 2006 and $251 million for 2006.
  • Total cash as of December 31, 2006, was $907 million and debt totaled $680 million. Total debt was reduced by $576 million during 2006.
  • Common stock dividends during the fourth quarter of 2006 totaled $357 million ($1.8125 per share), including a supplemental $295 million ($1.50 per share) dividend paid on December 29, 2006.
  • During 2006, FCX completed financial transactions totaling $1.6 billion, including $576 million in debt reductions and $1.0 billion in cash to shareholders ($916 million, $4.75 per share, in common stock dividends and $100 million in common stock purchases).
  • PT-FIs share of estimated recoverable reserves as of December 31, 2006 totaled 38.7 billion pounds of copper and 41.1 million ounces of gold.
  • Announced agreement to acquire Phelps Dodge for cash and stock in a $25.9 billion transaction, which would create the worlds largest publicly traded copper company. Transaction expected to close in March 2007.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported fourth-quarter 2006 net income applicable to common stock of $426.4 million, $1.99 per share, compared with net income of $463.2 million, $2.19 per share, for the fourth quarter of 2005. For the year ended December 31, 2006, FCX reported net income of $1.4 billion, $6.63 per share, compared with $934.6 million, $4.67 per share, for the year ended December 31, 2005.

Net income for 2006 included net losses of $73.9 million ($0.33 per share) on debt reductions and net gains of $29.7 million ($0.13 per share) at Atlantic Copper, FCXs wholly owned Spanish smelting unit, from the disposition of land and certain royalty rights.

Net income for the fourth quarter of 2005 included net losses of $10.0 million ($0.05 per share) on debt reductions and a gain of $4.9 million ($0.02 per share) from the sale of land. Net income for 2005 included net losses of $42.9 million ($0.19 per share) on debt reductions.

SUMMARY FINANCIAL TABLE



Fourth Quarter   Twelve Months


2006    2005    2006      2005   
    (In Thousands, Except Per Share Amounts)
Revenues
$1,642,127 
$1,489,874 
$5,790,500(a) 

$4,179,118(a) 
Operating income
862,236 
929,693 
2,868,747 

2,177,286(a) 

Net income applicable to common stock(b),(c)


426,442 
463,180 
1,396,00(a),(d) 


934,627(a) 

Diluted net income per share of common stock(b),(c),(e)


$1.99 
$2.19 
$6.63(a),(d) 


$4.67(a) 










 
Diluted average common shares outstanding(e)   221,690    221,025    221,498      220,470   
 
a) Includes losses on the redemption of Silver-Denominated Preferred Stock totaling $13.3 million ($7.0 million to net income or $0.03 per share) in the 2006 twelve-month period, compared with $5.0 million ($2.6 million to net income or $0.01 per share) in the 2005 period. Also includes a loss on the redemption of Gold-Denominated Preferred Stock, Series II totaling $69.0 million ($36.6 million to net income or $0.17 per share) in the 2006 twelve-month period.
 
b) After preferred dividends.
 

c) Includes losses on the early extinguishment and conversion of debt totaling $13.8 million ($10.0 million to net income or $0.05 per share) in the 2005 fourth quarter, $32.0 million ($30.3 million to net income or $0.14 per share) in the 2006 twelve-month period and $52.2 million ($40.2 million to net income or $0.18 per share) in the 2005 twelve-month period.

 
d) Includes net gains from the disposition of land and certain royalty rights owned by Atlantic Copper totaling $29.7 million ($0.13 per share) in the 2006 twelve-month period.
 
e) Reflects assumed conversion of FCX's 7% Convertible Senior Notes and 5 1/2% Convertible Perpetual Preferred Stock. See Note f on page III.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, We are pleased with the continuation of strong performance from the Grasberg minerals district, which together with strong copper and gold prices resulted in record financial results in 2006. We look forward to completing the Phelps Dodge transaction in the first quarter, which will allow our shareholders to benefit from the combined companys portfolio of diverse operations, growth projects and long-lived reserves. We are positive about the outlook for our industry and the opportunities available from the combined companys assets.

PT-FI PRODUCTION AND SALES

PT-FIs share of fourth-quarter 2006 sales totaled 432.5 million pounds of copper and 507.5 thousand ounces of gold, exceeding previous estimates reported in October 2006 of 415 million pounds of copper and 470 thousand ounces of gold.



Fourth Quarter   Twelve Months
    2006    2005    2006      2005 
Copper (000s of recoverable pounds):








Production
435,200 
473,500 
1,201,200 

1,455,900 
Sales
432,500 
468,400 
1,201,400 

1,456,500 
Average realized price per pound
$2.88 
$2.02 
$3.13 

$1.85 
Gold (recoverable ounces):








Production
514,000 
1,116,600 
1,731,800 

2,789,400 
Sales
507,500 
1,103,500 
1,736,000 

2,790,200 
Average realized price per ounce   $627.71    $494.01    $566.51(a) 
  $456.27 
 

a) Amount was $606.36 before revenue reduction resulting from redemption of FCXs Gold-Denominated Preferred Stock, Series II.

In the fourth quarter of 2006, copper ore grades averaged 1.08 percent and recovery rates averaged 89.5 percent, compared with 1.31 percent and 91.1 percent for the fourth quarter of 2005. Gold ore grades averaged 0.95 grams per metric ton (g/t) and recovery rates averaged 84.2 percent in the fourth quarter of 2006, compared with 2.33 g/t and 84.0 percent for the fourth quarter of 2005. Average ore grades improved during the fourth quarter of 2006, compared to the first nine months of 2006. Copper and gold ore grades are projected to be higher in the first half of 2007 than in the second half because of mine sequencing, with approximately 63 percent of copper and approximately 81 percent of gold expected to be sold in the first half of the year. First-quarter 2007 sales are estimated to be the highest of the year, approximating 400 million pounds of copper and 850,000 ounces of gold.

Mill throughput, which varies depending on ore types being processed, averaged 246,500 metric tons of ore per day in the fourth quarter of 2006, compared with 236,900 metric tons of ore in the fourth quarter of 2005.

Production from PT-FIs Deep Ore Zone (DOZ) underground mine averaged 42,600 metric tons of ore per day in the fourth quarter of 2006, representing 17 percent of mill throughput. DOZ continues to perform above design capacity of 35,000 metric tons of ore per day. PT-FI is expanding the capacity of the DOZ underground operation to a sustained rate of 50,000 metric tons per day with the installation of a second crusher and additional ventilation, expected to be completed in mid-2007. PT-FI anticipates a further expansion of the DOZ mine to 80,000 metric tons per day. The DOZ mine is one of the worlds largest underground mines.

Realized copper prices improved by 43 percent to an average of $2.88 per pound in the fourth quarter of 2006 from $2.02 per pound in the fourth quarter of 2005. The spot copper price on the London Metal Exchange closed at $2.55 per pound on January 15, 2007. Realized gold prices improved by 27 percent to an average of $627.71 per ounce in the fourth quarter of 2006 from $494.01 per ounce in the fourth quarter of 2005. The London P.M. gold fixing price closed at $627.00 per ounce on January 15, 2007.

FCXs concentrate sales for the fourth quarter of 2006 included 346.4 million pounds of copper, priced at an average of $2.87 per pound, subject to final pricing over the next several months. Each $0.05 change in the price realized from the December 31 price would result in an approximate $9 million effect on FCXs 2007 net income. Fourth-quarter 2006 adjustments to concentrate sales recognized in prior quarters decreased revenues by $70.8 million ($37.6 million to net income or $0.17 per share) compared with an increase of $59.3 million ($31.4 million to net income or $0.14 per share) in the fourth quarter of 2005.

PT-FIs share of annual sales in 2007 is currently projected to approximate 1.1 billion pounds of copper and 1.8 million ounces of gold. Annual sales over the five-year period from 2007 to 2011 are expected to average approximately 1.2 billion pounds of copper and 1.8 million ounces of gold. At the Grasberg mine, the sequencing in mining areas with varying ore grades causes fluctuations in the timing of ore production, resulting in varying quarterly and annual sales of copper and gold. The achievement of PT-FIs sales estimates will be dependent, among other factors, on the achievement of targeted mining rates, the successful operation of PT-FI production facilities, the impact of weather conditions at the end of fiscal periods on concentrate loading activities and other factors.

PT-FIs mine plans are based on latest available data and studies, which take into account factors such as mining and milling rates, ore grades and recoveries, economic conditions and geological/geotechnical considerations. PT-FI updates these plans to incorporate new data and conditions, with the objective of operating safely, managing risks and maximizing economic values.

PT-FI recently completed an analysis of its longer-range mine plans to assess the optimal design of the Grasberg open pit and the timing of development of the Grasberg underground block cave ore body. The analysis incorporated the latest geological and geotechnical studies, costs and other economic factors in developing the optimal timing for transitioning from the open pit to underground. The revised long-range plan includes changes to the expected final Grasberg open-pit design which will result in a section of high grade ore previously expected to be mined in the open pit to be mined in the Grasberg underground block cave mine. Approximately 100 million metric tons of high grade ore in the southwest corner (located in the "8 South" pushback) of the open pit, with aggregate recoverable metal approximating 4 billion pounds of copper and 5 million ounces of gold, is expected to be mined through PT-FI's large scale block caving operations rather than from open-pit mining. The revised mine plan reflects a transition from the Grasberg open pit to the Grasberg underground block cave ore body in mid-2015.

The mine plan revisions alter the timing of metal production in the period of 2015 and beyond but do not have a significant effect on ultimate recoverable reserves. The success of PT-FI's underground operations and the significant progress to establish underground infrastructure provides confidence in developing the high-grade, large-scale underground ore bodies in the Grasberg minerals district. PT-FI will continue to assess opportunities to optimize the long-range mine plans and net present values of the Grasberg minerals district.

UNIT NET CASH COSTS



Fourth Quarter   Twelve Months
    2006    2005    2006    2005 
Per pound of copper:







Site production and delivery, after adjustments
$0.77 
$0.62 
$1.03 
$0.65 
Gold and silver credits
(0.77)
(1.19)
(0.93)
(0.89)
Treatment charges
0.33 
0.27 
0.40 
0.24 
Royalties
0.11 
0.10 
0.10 
0.07 

Unit net cash costs (credits)(a)

  $0.44    $(0.20)   $0.60    $0.07 
 

a) For a reconciliation of unit net cash costs (credits) per pound to production and delivery costs applicable to sales reported in FCXs consolidated financial statements refer to the attached presentation, Product Revenues and Production Costs.

PT-FIs unit net cash costs, including gold and silver credits, averaged $0.44 per pound of copper during the fourth quarter of 2006, compared with a credit of $0.20 per pound in the 2005 quarter. The higher unit net cash costs in the 2006 quarter compared with the 2005 quarter primarily reflect lower copper and gold volumes, and the factors resulting in an increase in the 2006 annual period include higher unit production costs (resulting from lower volumes, higher input costs and the impact of changes in accounting for stripping costs) and higher treatment charges and royalties attributable to increased copper prices. Unit site production and delivery costs will vary with fluctuations in production volumes because of the primarily fixed nature of PT-FIs cost structure.

On January 1, 2006, FCX adopted Emerging Issues Task Force Issue No. 04-6, Accounting for Stripping Costs Incurred during Production in the Mining Industry (EITF 04-6), which requires that stripping costs be included in costs of sales as incurred beginning in 2006. Upon adoption of EITF 04-6, FCX eliminated its deferred mining cost asset ($285.4 million) at December 31, 2005, net of taxes, minority interest share and inventory effects ($135.9 million), as a cumulative effect adjustment which reduced its retained earnings on January 1, 2006. Unit site production and delivery costs include the amortization of previously deferred mining costs of $0.01 per pound ($3.7 million) in the fourth quarter of 2005 and are net of deferred mining costs of $0.05 per pound ($64.9 million) in the 2005 twelve-month period.

Assuming 2007 average copper prices of $2.50 per pound and average gold prices of $600 per ounce and achievement of current 2007 sales estimates, PT-FI estimates that its annual 2007 unit net cash costs, including gold and silver credits, would approximate $0.63 per pound. Estimated unit net cash costs for 2007 are projected to be slightly higher than the 2006 average, primarily because of lower 2007 copper sales volumes partially offset by lower treatment charges and higher gold credits. Because the majority of PT-FIs costs are fixed, unit costs vary with the volumes sold and will therefore be lower during the first half of 2007 and higher during the second half compared to the projected annual average. Unit net cash costs for 2007 would change by approximately $0.04 per pound for each $25 per ounce change in the average price of gold.

SMELTER OPERATIONS

FCXs investment in smelters serves an important role in its concentrate marketing strategy. Through downstream integration, FCX assures placement of a significant portion of its concentrate production. Taking into account taxes and minority interests, an equivalent change in PT-FI and Atlantic Copper treatment charges essentially offset in FCX's operating results. Treatment charges consist of a base rate and, in certain contracts, price participation based on copper prices. Essentially all of PT-FI's concentrate is sold under long-term contracts.

Atlantic Copper treated 229,600 metric tons of concentrate and scrap in the fourth quarter of 2006, compared with 259,100 metric tons in the year-ago period. Atlantic Copper produced 133.4 million pounds of cathodes and sold 136.3 million pounds of cathodes during the fourth quarter of 2006, compared with cathode production of 137.6 million pounds and sales of 136.7 million pounds during the fourth quarter of 2005. Treatment charges received by Atlantic Copper averaged $0.37 per pound during the fourth quarter of 2006 and $0.27 per pound during the fourth quarter of 2005. The increase in treatment charges in the 2006 period reflects higher market rates and price participation under the terms of Atlantic Coppers concentrate purchase and sales agreements. Cathode cash unit costs averaged $0.21 per pound in the fourth quarter of 2006 and $0.17 per pound in the fourth quarter of 2005 (see attached presentation, Cathode Cash Unit Costs). Higher unit costs in the 2006 period primarily reflect the impact of lower anode volumes and exchange rate movements.

Atlantic Coppers operating income of $19.1 million for the fourth quarter of 2006 approximated operating income for the 2005 period. For the year 2006, Atlantic Copper generated $74.5 million in operating income, compared with $34.8 million in 2005. The positive results in 2006 primarily reflect higher treatment charges, partly offset by lower volumes. Each $0.01 change in treatment charge rates equates to approximately $6 million of Atlantic Copper annual operating income. Atlantic Copper is planning a 23-day maintenance turnaround beginning in the second quarter of 2007, which is expected to adversely affect costs and volumes resulting in an approximate $25 million impact on 2007 operating results.

PT Smelting, PT-FIs 25 percent-owned Indonesian smelting unit, treated 100,700 metric tons of concentrates in the fourth quarter of 2006, compared with 228,800 metric tons in the year-ago period. In October 2006, PT Smelting temporarily suspended smelter operations following an equipment failure at the oxygen plant supplying the smelter. PT Smelting resumed operations in mid-December 2006. During 2006, PT Smelting completed an expansion of its production capacity from 250,000 metric tons of copper metal per year to 275,000 metric tons of copper metal per year. PT Smelting produced 82.3 million pounds of cathodes for the fourth quarter of 2006, compared with cathode production of 145.4 million pounds during the fourth quarter of 2005. PT Smeltings cathode cash unit cost per pound totaled $0.23 per pound in the fourth quarter of 2006 and $0.17 per pound in the year-ago period (see attached presentation, Cathode Cash Unit Costs), primarily reflecting the impact of lower volumes in 2006. PT-FIs equity interest in PT Smeltings losses totaled $0.6 million, $0.5 million to net income or less than $0.01 per share, in the fourth quarter of 2006, compared to earnings of $2.8 million, $2.3 million to net income or $0.01 per share, in the 2005 quarter. For the year 2006, PT-FIs equity interest in PT Smeltings earnings totaled $6.5 million, $5.3 million to net income or $0.02 per share, and $9.3 million, $7.6 million to net income or $0.03 per share in 2005.

FCX defers recognition of profits on PT-FIs sales to Atlantic Copper and on 25 percent of PT-FIs sales to PT Smelting until the final sales to third parties occur. Changes in these net deferrals resulted in additions to FCXs net income totaling $4.1 million, $0.02 per share, in the fourth quarter of 2006 and $17.1 million, $0.08 per share, for the year 2006. FCXs net income for 2005 was reduced by $67.8 million, $0.31 per share, for changes in intercompany profits, in the fourth quarter and $77.8 million, $0.35 per share, for the year. At December 31, 2006, FCXs net deferred profits on PT-FI concentrate inventories at Atlantic Copper and PT Smelting to be recognized in future periods net income after taxes and minority interests sharing totaled $100.8 million. Based on copper prices of $2.50 per pound and gold prices of $600 per ounce for 2007 and current shipping schedules, FCX estimates that the net change in deferred profits on intercompany sales will result in a decrease to net income of approximately $60 million in the first quarter of 2007. The actual change in deferred intercompany profits may differ substantially from this estimate because of changes in the timing of shipments to affiliated smelters and metal prices.

RESERVE CHANGES, EXPLORATION and MINE DEVELOPMENT ACTIVITIES



Aggregate Reserves PT-FIs Share


Copper (billions of lbs)   Gold (millions of ozs)   Silver (millions of ozs) Copper (billions of lbs)   Gold (millions of ozs)   Silver (millions of ozs)
Reserves - December 31, 2005
56.6 
58.0 
180.8  40.3 
43.9 
127.0 
Net revisions
(0.5)
(1.8)
8.0  (0.4)
(1.1)
4.8 
Production   (1.3)   (1.8)  

(4.3)

(1.2)   (1.7)   (3.8)
Reserves - December 31, 2006   54.8    54.4    184.5  38.7    41.1    128.0 

During 2006, PT-FI added 41.8 million metric tons of ore averaging 0.67 percent copper and 0.70 g/t gold associated with positive drilling results at the Mill Level Zone and Deep Mill Level Zone deposits, a 387-million-metric-ton complex with average grades of 1.02 percent copper and 0.81 g/t gold. PT-FIs reserve estimates also reflect revisions resulting from changes to its long-range mine plans. Year-end 2006 aggregate proven and probable recoverable reserves, net of 2006 production, were 2.8 billion metric tons of ore averaging 1.04 percent copper, 0.90 g/t gold and 4.16 g/t silver. Estimated recoverable reserves were assessed using a copper price of $1.00 per pound and a gold price of $400 per ounce.

Pursuant to joint venture arrangements between PT-FI and Rio Tinto, Rio Tinto has a 40 percent interest in production from reserves above those reported at December 31, 1994. Net of Rio Tintos share, PT-FIs share of proven and probable recoverable reserves as of December 31, 2006, was 38.7 billion pounds of copper, 41.1 million ounces of gold and 128.0 million ounces of silver. FCX has a 90.6 percent equity interest in PT-FIs share of proven and probable reserves.

PT-FIs exploration efforts in 2007 will continue to test extensions of the Deep Grasberg and Kucing Liar mine complex. Engineering studies are under way to incorporate positive drilling results from 2006 activities at Deep Grasberg and Kucing Liar. PT-FI also expects to test the open-pit potential of the Wanagon gold prospect and the Ertsberg open-pit resource, and will begin testing for extensions of the Deep MLZ deposit and other targets in the gap between the Ertsberg and Grasberg mineral systems from the new Common Infrastructure tunnels located at the 2,500 meter level. During 2007, FCX plans to resume exploration activities, which had been suspended in recent years, in certain prospective areas outside Block A. FCXs exploration expenditures are expected to approximate $25 million in 2007.

In 2004, PT-FI commenced its Common Infrastructure project, which will provide access to its large undeveloped underground ore bodies located in the Grasberg minerals district through a tunnel system located approximately 400 meters deeper than its existing underground tunnel system. In addition to providing access to its underground ore bodies, the tunnel system will enable PT-FI to conduct future exploration in prospective areas associated with its currently identified ore bodies. The tunnel system has reached the Big Gossan terminal and PT-FI is proceeding with development of the lower Big Gossan infrastructure. PT-FI has also advanced development of the Deep Grasberg spur and has completed 67 percent of the tunneling required to reach the Grasberg underground ore body. PT-FI expects the Deep Grasberg spur to reach the Grasberg underground ore body in the second half of 2007 and will begin multi-year mine development activities.

The Big Gossan underground mine is a high-grade deposit located near the existing milling complex. Remaining capital expenditures for the $260 million Big Gossan project to be incurred over the next few years total approximately $185 million, $175 million net to PT-FI, with a ramp-up to full production of 7,000 metric tons per day by 2010 (average annual aggregate incremental production approximating 135 million pounds of copper and 65,000 ounces of gold, with PT-FI receiving 60 percent of these amounts).

As discussed above, PT-FI is expanding the DOZ underground mine to 50,000 metric tons of ore per day from the current capacity of 35,000 metric tons per day. The 50,000 metric tons per day expansion is on track for completion in mid-2007. PT-FI anticipates expanding this mine further to 80,000 metric tons of ore per day. The success of the development of the DOZ mine, one of the worlds largest underground operations, provides confidence in the future development of PT-FIs large scale undeveloped ore bodies.

CASH FLOWS, DEBT REDUCTION and FINANCIAL TRANSACTIONS

FCX generated operating cash flows totaling $798.0 million during the fourth quarter of 2006 and $1.87 billion for 2006. Capital expenditures totaled $72.5 million for the fourth quarter of 2006 and $250.5 million for 2006. FCXs capital expenditures for 2007 are currently estimated to approximate $400 million.

Using estimated sales volumes for 2007 and assuming average prices of $2.50 per pound of copper and $600 per ounce of gold for 2007, FCXs operating cash flows would exceed $1.3 billion in 2007. Each $0.10 per pound change in copper prices would affect 2007 cash flows by approximately $55 million and each $25 per ounce change in gold prices would affect 2007 cash flows by approximately $23 million.

As of December 31, 2006, total cash was $907.5 million and debt totaled $680.1 million. Total debt was reduced by $575.8 million in 2006, including $316.6 million from the conversions of FCXs 7% Convertible Senior Notes due 2011 into common stock and $167.4 million from the redemption of FCXs Gold-Denominated Preferred Stock, Series II.

Common stock dividends during the fourth quarter of 2006 totaled $357.0 million ($1.8125 per share), including a supplemental dividend of $1.50 per share paid on December 29, 2006. In 2006, FCX completed approximately $1.6 billion in financial transactions, including debt reductions totaling $575.8 million, common stock dividends totaling $915.8 million ($4.75 per share, including $3.50 per share in supplemental dividends) and $99.8 million in common stock purchases. Since December 2004, FCX has paid eight supplemental dividends totaling $994.8 million ($5.25 per share).

FCX has purchased a total of 7.8 million shares for $279.5 million (average of $36.05 per share) under its Board authorized 20-million share open market purchase program. As of January 15, 2007, 12.2 million shares remain available for purchase under the program. As of December 31, 2006, FCX had 197.0 million common shares outstanding.

PENDING ACQUISITION of PHELPS DODGE

On November 19, 2006, FCX and Phelps Dodge Corporation (NYSE:PD) announced that they had signed a definitive merger agreement whereby FCX will acquire Phelps Dodge for approximately $25.9 billion in cash and stock, based on FCXs closing stock price on November 17, 2006, creating the worlds largest publicly traded copper company. The combined company will be a new industry leader with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum.

Completion of the transaction is subject to a number of conditions, including receipt of FCX and Phelps Dodge shareholder approval and regulatory approvals. U.S. authorities granted early termination of the waiting period under the Hart Scott Rodino Act in late December and we are working to obtain regulatory approval from the European Commission. Shareholder meetings to approve the transaction will be scheduled upon the effectiveness of the registration statement filed with the Securities and Exchange Commission on December 11, 2006. The transaction is expected to close in March 2007.

FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. Additional information on FCX is available on our web site, www.fcx.com.

Cautionary Statement and Regulation G Disclosure: This press release contains forward-looking statements in which we discuss factors we believe may affect our performance in the future. Forward-looking statements are all statements other than historical facts, such as statements regarding projected ore grades and milling rates, projected sales volumes, projected unit net cash costs, projected treatment charge rates, projected operating cash flows, projected capital expenditures, the impact of copper and gold price changes, the impact of changes in deferred intercompany profits on earnings and the merger with Phelps Dodge. Accuracy of the projections depends on assumptions about events that change over time and is thus susceptible to periodic change based on actual experience and new developments. The declaration and payment of dividends is at the discretion of the companys Board of Directors and will depend on the companys cash flows and financial position, copper and gold prices and general economic and market conditions. FCX cautions readers that it assumes no obligation to update or publicly release any revisions to the projections in this press release and, except to the extent required by applicable law, does not intend to update or otherwise revise the projections more frequently than quarterly. Additionally, important factors that might cause future results to differ from these projections include mine sequencing, production rates, industry risks, commodity prices, Indonesian political risks, weather-related risks, currency translation risks and other factors described in FCX's Annual Report on Form 10-K for the year ended December 31, 2005, and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC).

This press release also contains certain financial measures such as unit net cash costs (credits) per pound of copper and cathode cash unit cost per pound of copper. As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCXs consolidated financial statements are provided in the attachments to this press release.

A copy of this press release is available on our web site, www.fcx.com. A conference call with securities analysts about fourth-quarter 2006 results is scheduled for today at 10:00 a.m. EDT. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the webcast live and view the slides by accessing www.fcx.com. A replay of the webcast will be available through Friday, February 9, 2007.

Important Information for Investors and Stockholders: FCX and Phelps Dodge filed a joint proxy statement/prospectus with the SEC in connection with the proposed merger on December 11, 2006. FCX and Phelps Dodge urge investors and stockholders to read the joint proxy statement/prospectus and any other relevant documents filed by either party with the SEC because they contain important information.

Investors and stockholders may obtain the joint proxy statement/prospectus and other documents filed with the SEC free of charge at the website maintained by the SEC at www.sec.gov. In addition, documents filed with the SEC by FCX will be available free of charge on the investor relations portion of the FCX web site at www.fcx.com. Documents filed with the SEC by Phelps Dodge will be available free of charge on the investor relations portion of the Phelps Dodge web site at www.phelpsdodge.com.

FCX and certain of its directors and executive officers are participants in the solicitation of proxies from the stockholders of FCX in connection with the merger. Information concerning the interests of FCXs directors and executive officers in FCX is set forth in the proxy statement for FCXs 2006 annual meeting of stockholders, which was filed with the SEC on March 22, 2006. Phelps Dodge and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the merger. Information concerning the interests of Phelps Dodges directors and executive officers in Phelps Dodge is set forth in the proxy statement for Phelps Dodges 2006 annual meeting of shareholders, which was filed with the SEC on April 13, 2006.

Other information regarding the direct and indirect interests, by security holdings or otherwise, of the participants is described in the definitive joint proxy statement/prospectus relating to the merger. Investors and stockholders can obtain more detailed information regarding the direct and indirect interests of FCXs and Phelps Dodges directors and executive officers in the merger by reading the definitive joint proxy statement/prospectus.

 

FREEPORT-McMoRan COPPER & GOLD INC.

SELECTED OPERATING DATA

 


Fourth Quarter
Twelve Months


2006 
2005 
2006 

2005 
PT Freeport Indonesia, Net of Rio Tintos Interest









Copper (recoverable)









Production (000s of pounds)
435,200 
473,500 
1,201,200 

1,455,900 
Production (metric tons)
197,400 
214,800 
544,900 

660,400 
Sales (000s of pounds)
432,500 
468,400 
1,201,400 

1,456,500 
Sales (metric tons)
196,100 
212,500 
544,900 

660,700 
Average realized price per pound
$2.88 
$2.02 
$3.13 

$1.85 
Gold (recoverable ounces)









Production
514,000 
1,116,600 
1,731,800 

2,789,400 
Sales
507,500 
1,103,500 
1,736,000 

2,790,200 
Average realized price per ounce
$627.71 
$494.01 
$566.51a 

$456.27 
Silver (recoverable ounces)









Production
1,191,500 
1,361,600 
3,797,900 

4,742,400 
Sales
1,167,800 
1,341,100 
3,806,200 

4,734,600 
Average realized price per ounce
$12.93 
$7.97 
$8.59b 

$6.36b 
 
PT Freeport Indonesia, 100% Aggregate









Ore milled (metric tons per day)
246,500 
236,900 
229,400 

216,200 
Average ore grade









Copper (percent)
1.08 
1.31 
0.85 

1.13 
Gold (grams per metric ton)
0.95 
2.33 
0.85 

1.65 
Gold (ounce per metric ton)
0.031 
0.075 
0.027 

0.053 
Silver (grams per metric ton)
3.87 
5.36 
3.84 

4.88 
Silver (ounce per metric ton)
0.124 
0.172 
0.123 

0.157 
Recovery rates (percent)









Copper
89.5 
91.1 
86.1 

89.2 
Gold
84.2 
84.0 
80.9 

83.1 
Silver
66.5 
62.7 
52.3 

58.2 
Copper (recoverable)









Production (000s of pounds)
468,800 
554,700 
1,299,500 

1,688,900 
Production (metric tons)
212,600 
251,600 
589,400 

766,100 
Sales (000s of pounds)
465,900 
548,900 
1,300,000 

1,689,400 
Sales (metric tons)
211,400 
249,000 
589,700 

766,300 
Gold (recoverable ounces)









Production
571,300 
1,357,600 
1,824,100 

3,439,600 
Sales
564,200 
1,341,600 
1,831,100 

3,437,800 
Silver (recoverable ounces)









Production
1,601,800 
1,914,000 
4,313,100 

5,791,400 
Sales
1,592,100 
1,897,100 
4,314,800 

5,795,200 
 
a. Amount was $606.36 before a loss resulting from redemption of FCX's Gold-Denominated Preferred Stock, Series II.
 
b. Amounts were $11.92 for the 2006 twelve-month period and $7.38 for the 2005 twelve-month period before losses resulting from redemption of FCX's Silver-Denominated Preferred Stock.
 

FREEPORT-McMoRan COPPER & GOLD INC.

SELECTED OPERATING DATA

 


Fourth Quarter
Twelve Months


2006 
2005 
2006 
2005 
Atlantic Copper







Concentrate and scrap treated (metric tons)
229,600 
259,100 
953,700 
975,400 
Anodes







Production (000s of pounds)
137,100 
157,500 
581,300 
626,600 
Production (metric tons)
62,200 
71,400 
263,700 
284,200 
Sales (000s of pounds)
2,100 
21,000 
59,800 
85,100 
Sales (metric tons)
900 
9,500 
27,100 
38,600 
Cathodes







Production (000s of pounds)
133,400 
137,600 
518,900 
545,300 
Production (metric tons)
60,500 
62,400 
235,400 
247,300 
Sales (000s of pounds)
136,300 
136,700 
529,200 
548,600 
Sales (metric tons)
61,800 
62,000 
240,000 
248,800 
Gold sales in anodes and slimes (ounces)
97,300 
120,200 
666,500 
542,800 
Cathode cash unit cost per pounda
$0.21 
$0.17 
$0.20 
$0.17 
 
PT Smelting, 25%-owned by PT Freeport Indonesia







Concentrate treated (metric tons)
100,700 
228,800 
737,500 
908,900 
Anodes







Production (000s of pounds)
61,100 
154,800 
443,500 
606,300 
Production (metric tons)
27,700 
70,200 
201,200 
275,000 
Cathodes







Production (000s of pounds)
82,300 
145,400 
479,700 
579,700 
Production (metric tons)
37,300 
65,900 
217,600 
262,900 
Sales (000s of pounds)
89,400 
147,000 
483,700 
580,900 
Sales (metric tons)
40,500 
66,700 
219,400 
263,500 
Cathode cash unit cost per poundb
$0.23 
$0.17 
$0.20 
$0.13 
 

a. For a reconciliation of cathode cash unit cost per pound to production costs applicable to sales reported in FCX's consolidated financial statements refer to the attached presentation, "Cathode Cash Unit Costs."

 

b. For a reconciliation of cathode cash unit cost per pound to equity in PT Smelting's earnings (losses) reported in FCX's consolidated financial statements refer to the attached presentation, "Cathode Cash Unit Costs."



Three Months Ended

Years Ended


December 31,

December 31,


2006 
2005 

2006 

2005 


(In Thousands, Except Per Share Amounts)
Revenuesa
$1,642,127 
$1,489,874 

$5,790,500 

$4,179,118 
Cost of sales:










Production and deliveryb
649,950 

447,672


2,524,857 

1,637,632

Depreciation and amortization
80,139 
78,781c 

227,571 

251,512c 
Total cost of sales
730,089 
526,453 

2,752,428 

1,889,144 
Exploration expensesb
3,560 
2,382 

12,255 

8,803 
General and administrative expensesb, d
46,242 
31,346 

157,070 

103,885 
Total costs and expenses
779,891 
560,181 

2,921,753 

2,001,832 
Operating income
862,236 
929,693 

2,868,747 

2,177,286 
Equity in PT Smelting earnings (losses)
(583)
2,829 

6,490 

9,302 
Interest expense, net
(13,336)
(25,469)

(75,587)e

(131,639)

Gains (losses) on early extinguishment and conversion of debt


77 
(13,831)

(32,049)

(52,210)
Gains on sales of assets
946 
6,631 

30,635


6,631 
Other income, net
10,420 
7,868 

27,635 

27,568 
Income before income taxes and minority interests
859,760 
907,721 

2,825,871 

2,036,938 
Provision for income taxes
(365,365)
(375,644)

(1,201,175)

(915,068)

Minority interests in net income of consolidated subsidiaries


(52,828)
(53,772)

(168,187)

(126,743)
Net income
441,567 
478,305 

1,456,509 

995,127 
Preferred dividends
(15,125)
(15,125)

(60,500)

(60,500)
Net income applicable to common stock
$426,442 
$463,180 

$1,396,009 

$934,627 











 
Net income per share of common stock:










Basic
$2.17 
$2.50 

$7.32 

$5.18 
Dilutedf
$1.99 
$2.19 

$6.63 

$4.67 
Average common shares outstanding:










Basic
196,945 
185,542 

190,730 

180,270 
Dilutedf
221,690 
221,025 

221,498 

220,470 
Dividends paid per share of common stock
$1.8125 
$0.75 

$4.75 

$2.50 


Fourth Quarter

Years Ended

December 31,



2006 
2005 
2006 
2005 
Production and delivery costs
$7.3 
$2.9 
$25.1 
$7.3 
Exploration expenses
0.3 

1.3 
General and administrative expenses
9.2 
5.7 
30.3 
16.2 
Total stock-based compensation costs
$16.8 
$8.6 
$56.7 
$23.5 
c. Includes $3.7 million for the 2005 quarter for amortization of deferred mining costs. Amount is net of deferred mining costs of $64.9 million for the year ended December 31, 2005. On January 1, 2006, FCX adopted new accounting rules, described in Note a on page IV, which require that stripping costs incurred during production be charged to cost of sales as incurred.
 
d. Includes Rio Tinto's share of joint venture reimbursements for employee stock option exercises which decreased general and administrative expenses by $0.5 million for the 2006 quarter, $3.3 million for the 2005 quarter, $6.5 million for the year ended December 31, 2006, and $9.2 million for the year ended December 31, 2005.
 
e. Includes gains from the disposition of certain nonoperating assets owned by Atlantic Copper.
 
f. Reflects assumed conversion of FCX's 7% Convertible Senior Notes and 5 1/2% Convertible Perpetual Preferred Stock, resulting in the exclusion of net interest expense and dividends and the inclusion of shares as shown below (in millions):


Fourth Quarter

Years Ended

December 31,



2006 
2005 
2006 
2005 
Interest expense, net
$0.1 
$5.4 
$12.7 
$35.1 
Preferred dividends
$15.1 
$15.1 
$60.5 
$60.5 
Shares
23.0 
33.0 
29.2 
38.0 
 

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

 


December 31,

December 31,


2006 

2005 


(In Thousands)
ASSETS





Current assets:





Cash and cash equivalents
$907,464 

$763,599 
Accounts receivable
485,769 

687,969 
Inventories
724,248 

565,019 
Prepaid expenses and other
33,556 

5,795 
Total current assets
2,151,037 

2,022,382 
Property, plant, equipment and development costs, net
3,098,502 

3,088,931 
Deferred mining costs

-a


285,355a 

Other assets
105,910 

119,999 
Investment in PT Smelting
34,353 

33,539 
Total assets
$5,389,802 

$5,550,206 






 
LIABILITIES AND STOCKHOLDERS EQUITY





Current liabilities:





Accounts payable and accrued liabilities
$520,212 

$491,385 
Accrued income taxes
164,387 

327,041 
Unearned customer receipts
125,763 

57,184 
Rio Tinto share of joint venture cash flows
69,289 

125,809 
Accrued royalties payable
51,382 

61,818 
Accrued interest payable
22,300 

32,034 
Current portion of long-term debt and short-term borrowings
19,116 

253,350 
Total current liabilities
972,449 

1,348,621 
Long-term debt, less current portion:





Senior notes
612,900 

624,365 
Equipment and other loans
41,021 

54,529 
Convertible senior notes
7,071 

323,667 
Atlantic Copper debt


37 
Total long-term debt, less current portion
660,999 

1,002,598 
Accrued postretirement benefits and other liabilities

297,915


230,616 
Deferred income taxes
800,310 

902,386 
Minority interests
213,028 

222,991 
Stockholders equity:





Convertible perpetual preferred stock
1,099,985 

1,100,000 
Class B common stock
30,992 

29,696 
Capital in excess of par value of common stock
2,668,109 

2,212,246 
Retained earnings

1,414,817a 


1,086,191 
Accumulated other comprehensive (loss) income

(19,854)b


10,749 
Common stock held in treasury
(2,748,948)

(2,595,888)
Total stockholders equity
2,445,101 

1,842,994 
Total liabilities and stockholders equity
$5,389,802 

$5,550,206 
 
a. On January 1, 2006, FCX adopted Emerging Issues Task Force Issue No. 04-6, "Accounting for Stripping Costs Incurred during Production in the Mining Industry" (EITF 04-6), which requires that stripping costs incurred during production be considered costs of the extracted minerals and included as a component of inventory to be recognized in cost of sales in the same period as the revenue from the sale of inventory. Upon adoption of EITF 04-6, FCX recorded its deferred mining costs asset ($285.4 million) at December 31, 2005, net of taxes, minority interest share and inventory effects ($135.9 million), as a cumulative effect adjustment to reduce its retained earnings on January 1, 2006. In addition, stripping costs incurred in 2006 and later periods are now charged to cost of sales as incurred. Adoption of the new guidance has no impact on FCX's cash flows.
 
b. Effective December 31, 2006, FCX adopted SFAS 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans," which requires companies to recognize the funded status of its benefit plans in its statement of financial position. The most significant impacts of adopting SFAS 158 were to increase accrued postretirement benefits and accumulated other comprehensive losses by approximately $25 million.
 

FREEPORT-McMoRan COPPER & GOLD INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 


Years Ended December 31,


2006 

2005 


(In Thousands)
Cash flow from operating activities:





Net income
$1,456,509 

$995,127 

Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization
227,571 

251,512 
Minority interests' share of net income
168,187 

126,743 
Deferred income taxes
15,743 

(32,347)
Stock-based compensation
55,443 

21,168 
Long-term compensation and postretirement benefits
29,103 

7,819 
Losses on early extinguishment and conversion of debt
32,049 

52,210 
Gains on sales of assets
(30,635)

(6,631)
Equity in PT Smelting earnings
(6,490)

(9,302)
Increase in deferred mining costs

a


(64,940)a

Elimination of profit on PT Freeport Indonesia sales to PT Smelting
2,962 

23,565 
Provision for inventory obsolescence
6,000 

6,000 
Other
23,890 

2,773 
(Increases) decreases in working capital:





Accounts receivable
196,523 

(252,934)
Inventories
(146,188)

(108,225)
Prepaid expenses and other
(27,025)

(45)
Accounts payable and accrued liabilities
71,034 

216,331 
Rio Tinto share of joint venture cash flows
(56,365)

66,133 
Accrued income taxes
(151,887)

257,588 
(Increase) decrease in working capital
(113,908)

178,848 
Net cash provided by operating activities
1,866,424 

1,552,545 






 
Cash flow from investing activities:





PT Freeport Indonesia capital expenditures
(233,730)

(129,190)
Atlantic Copper and other capital expenditures
(16,810)

(13,796)
Sales of assets
33,563 

6,631 
Investment in PT Smelting
(1,945)


Phelps Dodge acquisition costs
(4,576)


Proceeds from insurance settlement


2,016 
Net cash used in investing activities
(223,498)

(134,339)






 
Cash flow from financing activities:





Proceeds from debt
102,862 

66,058 
Repayments of debt and redemption of preferred stock
(394,054)

(559,286)
Cash dividends paid:





Common stock
(915,775)

(452,510)
Preferred stock
(60,500)

(60,501)
Minority interests

(161,152)b


(124,636)b

Purchases of FCX common shares
(99,783)

(80,227)
Net proceeds from exercised stock options
15,280 

5,081 
Excess tax benefit from exercised stock options

20,819c 



Other
(6,758)

(36)
Net cash used in financing activities
(1,499,061)

(1,206,057)
Net increase in cash and cash equivalents
143,865 

212,149 
Cash and cash equivalents at beginning of year
763,599 

551,450 
Cash and cash equivalents at end of year
$907,464 

$763,599 
 
a. See Note a on page IV. Stripping costs are no longer deferred and are included in net income.
 
b. Represents minority ownership interests' share of PT Freeport Indonesia and PT Puncakjaya Power dividends.
 
c. Prior to adoption of SFAS 123R, these amounts would have been classified as operating cash flows.

FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

PT FREEPORT INDONESIA PRODUCT REVENUES AND UNIT NET CASH COSTS

Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash generating capacity of PT Freeport Indonesias mining operations expressed on a basis relating to its primary metal product, copper. PT Freeport Indonesia 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 generally accepted accounting principles and should not be considered in isolation or as a substitute for measures of performance determined in accordance with generally accepted accounting principles. This measure is presented by other copper and gold mining companies, although PT Freeport Indonesias measures may not be comparable to similarly titled measures reported by other companies.

PT Freeport Indonesia presents gross profit per pound of copper using both a by-product method and a co-product method. PT Freeport Indonesia uses the by-product method in its presentation of gross profit per pound of copper because (1) the majority of its revenues are copper revenues, (2) it produces and sells one product, concentrates, which contains copper, gold and silver, (3) it is not possible to specifically assign PT Freeport Indonesias costs to revenues from the copper, gold and silver it produces in concentrates, (4) it is the method used to compare mining operations in certain industry publications and (5) it is the method used by PT Freeport Indonesias management and Board of Directors to monitor its operations. In the co-product method presentation below, costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change.

In both the by-product and the co-product method calculations below, PT Freeport Indonesia shows adjustments to copper revenues for prior period open sales as separate line items. Because the copper pricing adjustments do not result from current period sales, PT Freeport Indonesia has reflected these separately from revenues on current period sales. Noncash and nonrecurring costs consist of items such as stock-based compensation costs starting January 1, 2006, write-offs of equipment or unusual charges. They are removed from site production and delivery costs in the calculation of unit net cash costs. As discussed above, gold and silver revenues, excluding any impacts from redemption of the gold- and silver-denominated preferred stocks, are reflected as credits against site production and delivery costs in the by-product method. Presentations under both methods are shown below together with a reconciliation to amounts reported in FCXs consolidated financial statements.

 

FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

 
Three Months Ended December 31, 2006















By-Product

Co-Product Method
(In Thousands)
Method

Copper

Gold

Silver

Total
Revenues, after adjustments shown below
$1,241,445 

$1,241,445 

$319,115 

$15,647 

$1,576,207 














 

Site production and delivery, before net noncash and nonrecurring costs shown below


334,166 

263,194 

67,655 

3,317 

334,166 
Gold and silver credits
(334,762)

 








Treatment charges

145,098a 


114,281b 

29,376b 

1,441b 

145,098b 
Royalty on metals
46,144 

36,344 

9,342 

458 

46,144 
Unit net cash costs
190,646 

413,819 

106,373 

5,216 

525,408 
Depreciation and amortization
66,115 

52,073 

13,386 

656 

66,115 
Noncash and nonrecurring costs, net
13,644 

10,747 

2,762 

135 

13,644 
Total unit costs
270,405 

476,639 

122,521 

6,007 

605,167 

Revenue adjustments, primarily for pricing on prior period open sales


(84,496)

(84,496)

 






(84,496)
PT Smelting intercompany profit recognized
4,406 

3,470 

892 

44 

4,406 
Gross profit
$890,950 

$683,780 

$197,486 

$9,684 

$890,950 














 














 
Pounds of copper sold (000s)
432,500 

432,500 








Ounces of gold sold






507,500 





Ounces of silver sold









1,167,800 
















 
Gross profit per pound of copper/per ounce of gold and silver:













Revenues, after adjustments shown below
$2.88 

$2.88 

$627.71 

$12.93 
















 

Site production and delivery, before net noncash and nonrecurring costs shown below


0.77 

0.61 

133.31 

2.84 


Gold and silver credits
(0.77)








Treatment charges

0.33a 


0.27b

57.88b 

1.23b 


Royalty on metals
0.11 

0.08 

18.41 

0.39 


Unit net cash costs
0.44 

0.96 

209.60 

4.46 


Depreciation and amortization
0.15 

0.12 

26.38 

0.56 


Noncash and nonrecurring costs, net
0.04 

0.02 

5.44 

0.12 


Total unit costs
0.63 

1.10 

241.42 

5.14 


Revenue adjustments, primarily for pricing on prior period open sales


(0.21)

(0.21)

 


1.09 

0.46 


PT Smelting intercompany profit recognized
0.02 

0.01 

1.76 

0.04 


Gross profit per pound/ounce
$2.06 

$1.58 

$389.14 

$8.29 
















 
Reconciliation to Amounts Reported













(In Thousands)
Revenues

Production and Delivery

Depreciation and

Amortization







Totals presented above
$1,576,207 

$334,166 

$66,115 





Net noncash and nonrecurring costs per above
N/A 

13,644 

N/A 





Less: Treatment charges per above
(145,098)

N/A 

N/A 





Royalty per above
(46,144)

N/A 

N/A 





Revenue adjustments, primarily for pricing on prior period open sales per above


(84,496)

N/A 

N/A 





Mining and exploration segment
1,300,469 

347,810 

66,115 





Smelting and refining segment
519,496 

485,315 

10,410 





Eliminations and other
(177,838)

(183,175)

 


3,614 





As reported in FCXs consolidated financial statements


$1,642,127 

$649,950 

$80,139 





 
a. Includes reductions of $4.4 million or $0.01 per pound for adjustments to prior quarters' concentrate sales subject to final pricing to reflect the impact on treatment charges resulting from the decrease in copper prices since September 30, 2006.
 
b. Includes reductions of $3.5 million or $0.01 per pound for copper, $0.9 million or $1.77 per ounce for gold and less than $0.1 million or $0.04 per ounce for silver for adjustments to prior quarters' concentrate sales subject to final pricing to reflect the impact on treatment charges resulting from the decrease in copper prices since September 30, 2006.
 

FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

 
Three Months Ended December 31, 2005















By-Product

Co-Product Method
(In Thousands)
Method

Copper

Gold

Silver

Total
Revenues, after adjustments shown below
$966,416 

$966,416 

$544,478 

$11,257 

$1,522,151 














 

Site production and delivery, before net noncash and nonrecurring credits shown below


290,511a 


184,446b 


103,917b 


2,148b 


290,511b 
Gold and silver credits
(555,735)







Treatment charges
124,872 

79,281 

44,668 

923 

124,872 
Royalty on metals
46,859 

29,751 

16,761 

347 

46,859 
Unit net cash (credits) costs
(93,493)

293,478 

165,346 

3,418 

462,242 
Depreciation and amortization
67,428 

42,810 

24,119 

499 

67,428 
Noncash and nonrecurring credits, net
(706)

(448)

(253)

(5)

(706)
Total unit (credits) costs
(26,771)

335,840 

189,212 

3,912 

528,964 

Revenue adjustments, primarily for pricing on prior period open sales


80,588 

80,588 





80,588 
PT Smelting intercompany profit elimination
(20,445)

(12,981)

(7,313)

(151)

(20,445)
Gross profit
$1,053,330 

$698,183 

$347,953 

$7,194 

$1,053,330 














 














 
Pounds of copper sold (000s)
468,400 

468,400 








Ounces of gold sold






1,103,500 





Ounces of silver sold









1,341,100 
















 
Gross profit per pound of copper/per ounce of gold and silver:













Revenues, after adjustments shown below
$2.02 

$2.02 

$494.01 

$7.97 
















 

Site production and delivery, before net noncash and nonrecurring credits shown below


0.62a 


0.39b 


94.17b 


1.60b 



Gold and silver credits
(1.19)








Treatment charges
0.27 

0.17 

40.48 

0.69 


Royalty on metals
0.10 

0.07 

15.19 

0.26 


Unit net cash (credits) costs
(0.20)

0.63 

149.84 

2.55 


Depreciation and amortization
0.14 

0.09 

21.86 

0.37 


Noncash and nonrecurring credits, net




(0.23)




Total unit (credits) costs
(0.06)

0.72 

171.47 

2.92 


Revenue adjustments, primarily for pricing on prior period open sales


0.21 

0.21 

(0.59)

0.42 


PT Smelting intercompany profit elimination
(0.04)

(0.02)

(6.63)

(0.11)


Gross profit per pound/ounce
$2.25 

$1.49 

$315.32 

$5.36 
















 
Reconciliation to Amounts Reported













(In Thousands)
Revenues

Production

and

Delivery



Depreciation

and

Amortization







Totals presented above
$1,522,151 

$290,511 

$67,428 





Net noncash and nonrecurring credits per above
N/A 

(706)

N/A 





Less: Treatment charges per above
(124,872)

N/A 

N/A 





Royalty per above
(46,859)

N/A 

N/A 





Revenue adjustments, primarily for pricing on prior period open sales per above


80,588 

N/A 

N/A 





Mining and exploration segment
1,431,008 

289,805 

67,428 





Smelting and refining segment
380,783 

351,607 

7,350 





Eliminations and other
(321,917)

(193,740)

4,003 





As reported in FCXs consolidated financial statements


$1,489,874 

$447,672 

$78,781 





 
a. Includes amortization of deferred mining costs totaling $3.7 million or $0.01 per pound. Following adoption of EITF 04-6 on January 1, 2006, stripping costs are no longer deferred. See Note a on page IV.
 
b. Includes amortization of deferred mining costs totaling $2.3 million or less than $0.01 per pound for copper, $1.3 million or $1.19 per ounce for gold and less than $50,000 or $0.02 per ounce for silver. See Note a above and Note a on page IV.
 

FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

 
Year Ended December 31, 2006















By-Product

Co-Product Method
(In Thousands)
Method

Copper

Gold

Silver

Total
Revenues, after adjustments shown below
$3,763,964 

$3,763,964 

$1,072,452 

$46,762 

$4,883,178 














 

Site production and delivery, before net noncash and nonrecurring costs shown below


1,235,004 

951,943 

271,234 

11,827 

1,235,004 
Gold and silver credits
(1,119,214)







Treatment charges

477,523a 


368,076b 


104,874b 


4,573b 


477,523b 
Royalty on metals
125,995 

97,117 

27,671 

1,207 

125,995 
Unit net cash costs
719,308 

1,417,136 

403,779 

17,607 

1,838,522 
Depreciation and amortization
183,752 

141,636 

40,356 

1,760 

183,752 
Noncash and nonrecurring costs, net
44,269 

34,123 

9,722 

424 

44,269 
Total unit costs
947,329 

1,592,895 

453,857 

19,791 

2,066,543 

Revenue adjustments, primarily for pricing on prior period open sales and gold/silver hedging


115,124c 


197,341 

(68,962)

(13,255)

115,124 
PT Smelting intercompany profit elimination
(2,962)

(2,283)

(651)

(28)

(2,962)
Gross profit
$2,928,797 

$2,366,127 

$548,982 

$13,688 

$2,928,797 














 














 
Pounds of copper sold (000s)
1,201,400 

1,201,400 








Ounces of gold sold






1,736,000 





Ounces of silver sold









3,806,200 
















 
Gross profit per pound of copper/per ounce of gold and silver:













Revenues, after adjustments shown below
$3.13 

$3.13 

$566.51 

d


$8.59 

e

















 

Site production and delivery, before net noncash and nonrecurring costs shown below


1.03 

0.79 

156.24 

3.11 


Gold and silver credits
(0.93)








Treatment charges

0.40a 


0.31b 


60.41b 


1.20b 



Royalty on metals
0.10 

0.08 

15.94 

0.32 


Unit net cash costs
0.60 

1.18 

232.59 

4.63 


Depreciation and amortization
0.15 

0.12 

23.25 

0.46 


Noncash and nonrecurring costs, net
0.04 

0.03 

5.60 

0.11 


Total unit costs
0.79 

1.33 

261.44 

5.20 


Revenue adjustments, primarily for pricing on prior period open sales


0.10c 


0.17 

11.53 

0.22 


PT Smelting intercompany profit elimination




(0.37)

(0.01)


Gross profit per pound/ounce
$2.44 

$1.97 

$316.23 

$3.60 
















 
Reconciliation to Amounts Reported













(In Thousands)
Revenues

Production

and

Delivery



Depreciation

and

Amortization







Totals presented above
$4,883,178 

$1,235,004 

$183,752 





Net noncash and nonrecurring costs per above
N/A 

44,269 

N/A 





Less: Treatment charges per above
(477,523)

N/A 

N/A 





Royalty per above
(125,995)

N/A 

N/A 





Revenue adjustments, primarily for pricing on prior period open sales and hedging per above


115,124 

N/A 

N/A 





Mining and exploration segment
4,394,784 

1,279,273 

183,752 





Smelting and refining segment
2,241,823 

2,118,484 

33,297 





Eliminations and other
(846,107)

(872,900)

10,522 





As reported in FCXs consolidated financial statements


$5,790,500 

$2,524,857 

$227,571 





 
a. Includes $12.4 million or $0.01 per pound for adjustments to 2005 concentrate sales subject to final pricing to reflect the impact on treatment charges resulting from the increase in copper prices since December 31, 2005.
 
b. Includes $9.6 million or $0.01 per pound for copper, $2.7 million or $1.57 per ounce for gold and $0.1 million or $0.03 per ounce for silver for adjustments to 2005 concentrate sales subject to final pricing to reflect the impact on treatment charges resulting from the increase in copper prices since December 31, 2005.
 
c. Includes a $69.0 million or $0.06 per pound loss on the redemption of FCX's Gold-Denominated Preferred Stock, Series II and a $13.3 million or $0.01 per pound loss on the redemption of FCX's Silver-Denominated Preferred Stock.
 
d. Amount was $606.36 before a loss resulting from redemption of FCX's Gold-Denominated Preferred Stock, Series II.
 
e. Amount was $11.92 before a loss resulting from redemption of FCX's Silver-Denominated Preferred Stock.
 

FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

 
Year Ended December 31, 2005















By-Product

Co-Product Method
(In Thousands)
Method

Copper

Gold

Silver

Total
Revenues, after adjustments shown below
$2,707,049 

$2,707,049 

$1,269,893 

$35,165 

$4,012,107 














 

Site production and delivery, before net noncash and nonrecurring costs shown below


949,469a 


640,626b 


300,521b 


8,322b 


949,469 
Gold and silver credits
(1,305,058)







Treatment charges
350,422 

236,437 

110,914 

3,071 

350,422 
Royalty on metals
103,726 

69,986 

32,831 

909 

103,726 
Unit net cash costs
98,559 

947,049 

444,266 

12,302 

1,403,617 
Depreciation and amortization
209,713 

141,498 

66,377 

1,838 

209,713 
Noncash and nonrecurring costs, net
4,570 

3,083 

1,447 

40 

4,570 
Total unit costs
312,842 

1,091,630 

512,090 

14,180 

1,617,900 

Revenue adjustments, primarily for pricing on prior period open sales and silver hedging


10,023c 


14,975 



(4,952)

10,023 
PT Smelting intercompany profit elimination
(23,565)

(15,899)

(7,459)

(207)

(23,565)
Gross profit
$2,380,665 

$1,614,495 

$750,344 

$15,826 

$2,380,665 














 














 
Pounds of copper sold (000s)
1,456,500 

1,456,500 








Ounces of gold sold






2,790,200 





Ounces of silver sold









4,734,600 
















 
Gross profit per pound of copper/per ounce of gold and silver:













Revenues, after adjustments shown below
$1.85 

$1.85 

$456.27 

$6.36d 

















 

Site production and delivery, before net noncash and nonrecurring costs shown below


0.65a 


0.44b 


107.71b 


1.76b 



Gold and silver credits
(0.89)








Treatment charges
0.24 

0.16 

39.75 

0.65 


Royalty on metals
0.07 

0.05 

11.77 

0.19 


Unit net cash costs
0.07 

0.65 

159.23 

2.60 


Depreciation and amortization
0.14 

0.10 

23.79 

0.39 


Noncash and nonrecurring costs, net




0.52 

0.01 


Total unit costs
0.21 

0.75 

183.54 

3.00 


Revenue adjustments, primarily for pricing on prior period open sales


0.01c 


0.02 

(1.14)

0.02 


PT Smelting intercompany profit elimination
(0.01)

(0.01)

(2.67)

(0.04)


Gross profit per pound/ounce
$1.64 

$1.11 

$268.92 

$3.34 
















 
Reconciliation to Amounts Reported













(In Thousands)
Revenues

Production

and

Delivery



Depreciation

and

Amortization







Totals presented above
$4,012,107 

$949,469 

$209,713 





Net noncash and nonrecurring costs per above
N/A 

4,570 

N/A 





Less: Treatment charges per above
(350,422)

N/A 

N/A 





Royalty per above
(103,726)

N/A 

N/A 





Revenue adjustments, primarily for pricing on prior period open sales and hedging per above


10,023 

N/A 

N/A 





Mining and exploration segment
3,567,982 

954,039 

209,713 





Smelting and refining segment
1,363,208 

1,288,610 

28,995 





Eliminations and other
(752,072)

(605,017)

12,804 





As reported in FCXs consolidated financial statements


$4,179,118 

$1,637,632 

$251,512 





 
a. Net of deferred mining costs totaling $64.9 million or $0.05 per pound. Following adoption of EITF Issue No. 04-6 on January 1, 2006, stripping costs are no longer deferred. See Note a on page IV.
 
b. Net of deferred mining costs totaling $43.8 million or $0.03 per pound for copper, $20.6 million or $7.37 per ounce for gold and $0.6 million or $0.12 per ounce for silver. See Note a above and Note a on page IV.
 
c. Includes a $5.0 million or less than $0.01 per pound loss on the redemption of FCX's Silver-Denominated Preferred Stock.
 
d. Amount was $7.38 before a loss resulting from redemption of FCX's Silver-Denominated Preferred Stock.

FREEPORT-McMoRan COPPER & GOLD INC.

CATHODE CASH UNIT COSTS

Cathode cash unit cost per pound of copper is a measure intended to provide investors with information about the costs incurred to produce cathodes at FCXs smelting operations in Spain and Indonesia. FCX uses this measure for the same purpose and for monitoring operating performance at its smelting operations. This information differs from measures of performance determined in accordance with generally accepted accounting principles and should not be considered in isolation or as a substitute for measures of performance determined in accordance with generally accepted accounting principles. Other smelting companies present this measure, although Atlantic Coppers and PT Smeltings measures may not be comparable to similarly titled measures reported by other companies.

ATLANTIC COPPER CATHODE CASH UNIT COST PER POUND OF COPPER

The reconciliation below presents reported production costs for FCXs smelting and refining segment (Atlantic Copper) and subtracts or adds components of those costs that do not directly relate to the process of converting copper concentrates to cathodes. The adjusted production costs amounts are used to calculate Atlantic Coppers cathode cash unit cost per pound of copper (in thousands, except per pound amounts):



Three Months Ended
Years Ended


December 31,
December 31,


2006 
2005 
2006 
2005 

Smelting and refining segment production costs reported in FCXs consolidated financial statements


$485,315 
$351,607 
$2,118,484 
$1,288,610 
Less:







Raw material purchase costs
(385,374)
(263,159)
(1,586,656)
(907,130)
Production costs of anodes sold
(447)
(3,219)
(11,223)
(13,226)
Other
1,016 
1,301 
10,282 
(958)
Credits:







Gold and silver revenues
(65,660)
(57,136)
(399,739)
(245,772)
Acid and other by-product revenues
(6,736)
(6,038)
(27,257)
(28,446)

Production costs used in calculating cathode cash unit cost per pound


$28,114 
$23,356 
$103,891 
$93,078 








 
Pounds of cathode produced
133,400 
137,600 
518,900 
545,300 








 
Cathode cash unit cost per pound
$0.21 
$0.17 
$0.20 
$0.17 

PT SMELTING CATHODE CASH UNIT COST PER POUND OF COPPER

The calculation below presents PT Smeltings reported operating costs and subtracts or adds components of those costs that do not directly relate to the process of converting copper concentrates to cathodes. PT Smeltings operating costs are then reconciled to PT Freeport Indonesias equity in PT Smelting earnings reported in FCXs consolidated financial statements (in thousands, except per pound amounts):



Three Months Ended
Years Ended


December 31,
December 31,


2006 
2005 
2006 
2005 
Operating costs PT Smelting (100%)
$15,801 
$27,776 
$99,200 
$85,546 

Add:  Gold and silver refining charges


697 
1,046 
3,965 
4,233 
Less: Acid and other by-product revenues
(1,717)
(3,407)
(12,722)
(14,524)

 Other


3,826 
(983)
6,052 
(1,944)

Production costs used in calculating cathode cash unit cost per pound


$18,607 
$24,432 
$96,495 
$73,311 








 
Pounds of cathode produced
82,300 
145,400 
479,700 
579,700 








 
Cathode cash unit cost per pound
$0.23 
$0.17 
$0.20 
$0.13 








 
Reconciliation to Amounts Reported







Operating costs per above
$(15,801)
$(27,776)
$(99,200)
$(85,546)
Other costs
(396,420)
(354,869)
(1,916,975)
(1,278,356)
Revenue and other income
410,129 
394,202 
2,043,096 
1,402,071 
PT Smelting net income (loss)
(2,092)
11,557 
26,921 
38,169 








 
PT Freeport Indonesias 25% equity interest
(523)
2,889 
6,730 
9,542 
Amortization of excess investment cost
(60)
(60)
(240)
(240)

Equity in PT Smelting earnings (losses) reported in FCXs consolidated financial statements


$(583)
$2,829 
$6,490 
$9,302 

FREEPORT-McMoRan COPPER & GOLD INC.

PROVISION FOR INCOME TAXES

 

PROVISION FOR INCOME TAXES

PT Freeport Indonesia's Contract of Work provides for a 35 percent corporate income tax rate. PT Indocopper Investama (100 percent owned by FCX) pays a 30 percent corporate income tax on dividends it receives from its 9.36 percent ownership in PT Freeport Indonesia. In addition, the tax treaty between Indonesia and the United States (U.S.) provides for a withholding tax rate of 10 percent on dividends and interest that PT Freeport Indonesia and PT Indocopper Investama pay to their parent company, FCX. FCX currently records no income taxes at Atlantic Copper, which is subject to taxation in Spain, because it has not generated significant taxable income in recent years and has substantial tax loss carryforwards for which FCX has provided no net financial statement benefit. FCX receives no consolidated tax benefit from these losses because they cannot be used to offset PT Freeport Indonesia's profits in Indonesia, but can be utilized to offset Atlantic Copper's future profits.

 

Parent company costs consist primarily of interest, depreciation and amortization, and general and administrative expenses. FCX receives minimal, if any, tax benefit from these costs, including interest expense, primarily because the parent company normally generates no taxable income from U.S. sources. As a result, FCX's provision for income taxes as a percentage of its consolidated income before income taxes and minority interests will vary as PT Freeport Indonesia's income changes, absent changes in Atlantic Copper and parent company costs. Summaries of the approximate significant components of the calculation of FCX's consolidated provision for income taxes are shown below (in thousands, except percentages).

 


Three Months Ended
Years Ended


December 31,
December 31,


2006 
2005 
2006 
2005 
Mining and exploration segment operating incomea
$847,999 
$1,044,436 
$2,797,963 
$2,312,771 
Mining and exploration segment interest expense, net
(2,674)
(5,420)
(19,833)
(22,386)
Intercompany operating profit recognized (deferred)
7,703 
(127,862)
32,426 
(144,986)
Income before taxes
853,028 
911,154 
2,810,556 
2,145,399 
Indonesian corporate income tax rate
35%
35%
35%
35%
Corporate income taxes
298,560 
318,904 
983,695 
750,890 








 
Approximate PT Freeport Indonesia net income
554,468 
592,250 
1,826,861 
1,394,509 
Withholding tax on FCXs equity share
9.064%
9.064%
9.064%
9.064%
Withholding taxes
50,257 
53,682 
165,587 
126,398 








 
PT Indocopper Investama corporate income tax
14,058 
5,623 
47,797 
36,544 
Other, net
2,490 
(2,565)
4,096 
1,236 
FCX consolidated provision for income taxes
$365,365 
$375,644 
$1,201,175 
$915,068 








 
FCX consolidated effective tax rate
42%
41%
43%
45%
 

a. Excludes charges for the in-the-money value of FCX stock option exercises, which are eliminated in consolidation, totaling $0.8 million for the 2006 quarter, $30.3 million for the 2005 quarter, $88.3 million for the year ended December 31, 2006, and $64.5 million for the year ended December 31, 2005.

 

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS

 

BUSINESS SEGMENTS

FCX has two operating segments: "mining and exploration" and "smelting and refining." The mining and exploration segment consists of FCX's Indonesian activities including PT Freeport Indonesia's copper and gold mining operations, PT Puncakjaya Power's power-generating operations (after eliminations with PT Freeport Indonesia) and FCX's Indonesian exploration activities. The smelting and refining segment includes Atlantic Copper's operations in Spain and PT Freeport Indonesia's equity investment in PT Smelting in Gresik, Indonesia. The segment data presented below were prepared on the same basis as FCX's consolidated financial statements.

 


Mining

and Exploration



Smelting

and Refining



Eliminations and Other

FCX Total


(In Thousands)
Three months ended December 31, 2006:










Revenues
$1,300,469a 

$519,496 

$(177,838)

 


$1,642,127 
Production and delivery
347,810 

485,315 

(183,175)b


649,950 
Depreciation and amortization
66,115 

10,410 

3,614 

80,139 
Exploration expenses
3,158 



402 

3,560 
General and administrative expenses
36,138c 

4,649 

5,455c 

46,242 
Operating income
$847,248 

$19,122 

$(4,134)

 


$862,236 
Equity in PT Smelting losses
$- 

$(583)

 


$- 

$

(583) 

Interest expense, net
$2,674 

$7,344 

$3,318 

$13,336 
Provision for income taxes
$297,462 

$- 

$67,903 

$365,365 
Capital expenditures
$70,055 

$3,868 

$(1,395)

 


$72,528 
Total assets
$4,118,018d 

$915,124e 

$356,660 

$5,389,802 











 
Three months ended December 31, 2005:










Revenues
$1,431,008a 

$380,783 

$(321,917)

 


$1,489,874 
Production and delivery
289,805 

351,607 

(193,740)b


447,672 
Depreciation and amortization
67,428 

7,350 

4,003 

78,781 
Exploration expenses
2,355 



27 

2,382 
General and administrative expenses
57,333c 

2,651 

(28,638)c


31,346 
Operating income
$1,014,087 

$19,175 

$(103,569)

 


$929,693 
Equity in PT Smelting earnings
$- 

$2,829 

$- 

$2,829 
Interest expense, net
$5,420 

$4,630 

$15,419 

$25,469 
Provision for income taxes
$351,077 

$- 

$24,567 

$375,644 
Capital expenditures
$43,596 

$2,924 

$859 

$47,379 
Total assets
$4,623,829d 

$933,059b  e

$(6,682)

 


$5,550,206 











 
Year ended December 31, 2006:










Revenues
$4,394,784a 

$2,241,823 

$(846,107)

 


$5,790,500 
Production and delivery
1,279,273 

2,118,484 

(872,900)b


2,524,857 
Depreciation and amortization
183,752 

33,297 

10,522 

227,571 
Exploration expenses
11,637 



618 

12,255 
General and administrative expenses
210,423c 

15,551 

(68,904)c


157,070 
Operating income
$2,709,699 

$74,491 

$84,557 

$2,868,747 
Equity in PT Smelting earnings
$- 

$6,490 

$- 

$6,490 
Interest expense, net
$19,833 

$24,467 

$31,287 

$75,587 
Provision for income taxes
$950,911 

$- 

$250,264 

$1,201,175 
Capital expenditures
$237,745 

$16,810 

$(4,015)

 


$250,540 
 

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS

 


Mining

and

Exploration



Smelting

and Refining



Eliminations

and Other



FCX Total


(In Thousands)
Year ended December 31, 2005:










Revenues
$3,567,982a 

$1,363,208 

$(752,072)

$4,179,118 
Production and delivery
954,039 

1,288,610 

(605,017)b


1,637,632 
Depreciation and amortization
209,713 

28,995 

12,804 

251,512 
Exploration expenses
8,618 



185 

8,803 
General and administrative expenses
147,334c 

10,824 

(54,273)c


103,885 
Operating income
$2,248,278 

$34,779 

$(105,771)

$2,177,286 
Equity in PT Smelting earnings
$- 

$9,302 

$- 

$9,302 
Interest expense, net
$22,386 

$16,962 

$92,291 

$131,639 
Provision for income taxes
$781,013 

$- 

$134,055 

$915,068 
Capital expenditures
$129,551 

$10,231 

$3,204 

$142,986 
 
a. Includes PT Freeport Indonesia's sales to PT Smelting totaling $136.7 million for the 2006 quarter, $365.4 million for the 2005 quarter, $1,202.2 million for the year ended December 31, 2006, and $1,008.5 million for the year ended December 31, 2005.
 
b. Includes deferrals (recognition) of intercompany profits on 25 percent of PT Freeport Indonesia's sales to PT Smelting, for which the final sale to third parties has not occurred, totaling $(4.4) million for the 2006 quarter, $20.4 million for the 2005 quarter, $3.0 million for the year ended December 31, 2006, and $23.6 million for the year ended December 31, 2005.
 
c. Includes charges to the mining and exploration segment for the in-the-money value of FCX stock option exercises which are eliminated in consolidation totaling $0.8 million for the 2006 quarter, $30.3 million for the 2005 quarter, $88.3 million for the year ended December 31, 2006, and $64.5 million for the year ended December 31, 2005.
 
d. Includes PT Freeport Indonesia's trade receivables with PT Smelting totaling $142.9 million at December 31, 2006, and $162.0 million at December 31, 2005.
 
e. Includes PT Freeport Indonesia's equity investment in PT Smelting totaling $34.4 million at December 31, 2006, and $33.5 million at December 31, 2005.

Contacts

Freeport-McMoRan Copper & Gold Inc.
Financial Contacts:
Kathleen L. Quirk, 504-582-4195
or
David P. Joint, 504-582-4203
or
Media Contact:
William L. Collier, 504-582-1750


Categories: Press Releases