Climax Mine. Climax Molybdenum. Molybdenum supply demand. China trade patterns

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2 Agenda Climax Molybdenum Climax Mine Molybdenum supply demand China trade patterns

3 Company Overview Subsidiary of Freeport-McMoRan Inc. (FCX) Premier U.S.-based natural resource company 2013 copper production: 4.1 billion pounds Completed acquisition of a large-scale cobalt refinery in Kokkola, Finland from OM Group, Inc. in 1Q 2013 through joint venture owned 56% by FCX Renamed Freeport Cobalt Completed 3-way combination with Plains Exploration & Production and McMoRan Exploration in Q Diversified producer of molybdenum products Mine to Market World s leading molybdenum producer with world class ore bodies 2013 molybdenum sales: 93 million pounds Mo Recoverable Proven and Probable Reserves ~ 3.3 billion pounds Mo World s leading molybdenum-based chemical producer Long-term vision and commitment to the industry

4 Climax Global Operations Henderson Mine, CO Stowmarket, UK Processing Plant Sales Office Climax Mine, CO Restarted 2012 Phoenix, AZ Global HQ Bagdad Mine, AZ & Processing Plant Sahuarita, AZ Climax Technology Center Ft. Madison, IA Processing Plant Chino Mine, NM Morenci Mine, AZ Sierrita Mine, AZ & Processing Plant Rotterdam, The Netherlands Processing Plant Tokyo, Japan Office Shanghai, China Office Cerro Verde Mine, Peru Headquarters Primary Mine By-Product Mine Processing Plant Office Technology Center

5 Primary Mines Henderson Operational since 1976 World s largest primary moly producer Production can range between 30 and 40 million pounds per year To-date more than 1 billion lbs. of moly produced ISO 9001, ISO 14001, and OHSAS certified

6 Primary Mines Climax Large reserves, high grade, low cost Brownfield restart project: Open pit, new milling facilities 2013 production reached 19 mm lbs Potential to produce 30 mm lbs/yr depending on market conditions

7 By-Product Molybdenum Mines Sierrita, AZ Bagdad, AZ Cerro Verde, Peru By-Product Mines Production : 32 million pounds : 45 million pounds : 44 million pounds : 45 million pounds By-product molybdenum is produced primarily at Sierrita, Bagdad, Cerro Verde

8 FCX Molybdenum Reserves Recoverable reserves Y/E 2013 (billion lbs. Mo) Primary: Henderson 0.33 Climax By-product: Sierrita 1.08 Cerro Verde 0.69 Bagdad 0.39 Others Molybdenum - A Core Business Primary Mo Reserves N. America 29% By-Product Reserves N. America 50% By-Product Reserves S. America 21% Total reserves 3.26* *Values round to 3.26; ref. FCX K

9 Climax Molybdenum Processing Plants Fort Madison, Iowa Rotterdam, The Netherlands Stowmarket, UK Fort Madison, Iowa World s largest high quality producer of molybdenum based chemicals including Molysulfide ISO 9001:2008, ISO 14001, and OHSAS certified Expanded in 1995 & 2005 Has processed more than 1 billion pounds Mo Rotterdam, The Netherlands Produces tech oxide, high quality ammonium dimolybdate and pure molybdic oxide ISO 9001:2008. ISO 14001, OHSAS certified Expanded in 1999, 2006, 2007, 2012, 2014 Stowmarket, UK One of the world s largest ferromolybdenum producers ISO 9001:2008, ISO 14001, and OHSAS certified Expanded in 2004, 2007

10 Agenda Climax Molybdenum Climax Mine Molybdenum supply demand China trade patterns

11 Molybdenum End-Uses IMOA Estimates approximately 537 mm lbs of demand in 2013 Source: IMOA

12 Recent Moly Price Trends $18 $17 $16 $15 $14 $13 $12 $11 $10 $9 MW v. RN Oxide Comparison MW Average Summer decline RN Average MW 9/27/2013 $9.18 Demand was soft heading into summer 2013 and prices eased Prices reached the low- $9 per pound range at the end of September In earlier 2014, prices averaged between $9 and $10, although reports of limited supply and better demand pushed prices near $15 only to move lower recently to the $12 per pound range MW is weekly avg. RN is twice weekly.

13 Demand Comparison Update YTDQ v. YTDQ Global Crude Steel Production 3% World Stainless Steel Production 11% NAFTA Vehicle Production 4% YTD 6/2014 v. YTD 6/2013 YTD 6/2014 v. YTD 6/2013 YTD 6/2014 v. YTD 6/2013 Brent Oil Price 3% Baker Hughes Rig Count 4% Molybdenum Price 10% YTD 6/2014 v. YTD 6/2013 YTD 6/2014 v. YTD 6/2013 YTD 7/2014 v. YTD 7/2013

14 Global PMI* Indices PMI Index Reading /1/2012 3/1/2012 5/1/2012 7/1/2012 Global PMI Indices Weather related weakness 9/1/ /1/2012 1/1/2013 3/1/2013 5/1/2013 7/1/2013 9/1/ /1/2013 1/1/2014 3/1/2014 US EU China China (HSBC) 5/1/2014 7/1/2014 A PMI above 50 indicates expansion of the manufacturing sector. The US peaked in August at 59, an improving trend since January. The EU peaked in January at 54. Both China and the EU have recently weakened. *PMI = Purchasing Managers Index

15 World Oil & Gas Drilling The recent trends remains positive, and as mentioned previously, global rigs counts are up 4% year to date. Most of the recent drilling activity in the oil and gas industry has centered in North America and specifically the US. This is a closely watched indicator because much of moly demand is centered on the oil and gas industry, from engineering and stainless steels used in refineries to the use of moly in the production of chemicals, such as catalysts. Based on analysis, some 20% of global moly consumption centers around the oil and gas industry.

16 Crude Steel Production Key Regions The bright spot YTD is the EU; production is up 3% through June; UK (+6%) Germany (+4%) France (+3) Spain (+2%) YTD China s Production is ~+2.4% through June. Global production less China is +2.5% YTD

17 Crude Steel Production ex China Improving Crude Steel Production ex China +2.5% YTD June 2014 YTD June % YTD June , , , , , , , , ,000 Asia ex China European Union North America CIS (6) South America Other Europe Middle East Africa Oceania

18 Global Auto Trends June 2014 YoY YTD June 2014 NAFTA 7% 4% EU 7% 5% China 11% 11% Global auto trends remain a positive indicator US auto makers reported some of the strongest sales numbers in June, a leading indicator that should point to furfure production growth

19 Molybdenum Demand Regional Growth Million Pounds Mo. Contained Source of growth rates: IMOA;

20 Estimated Molybdenum Supply By Region Million lbs. Mo. Contained Source: IMOA

21 World s Largest Molybdenum Producer *Contains estimates Sources: Climax estimates; IMOA, company and analyst reports

22 Agenda Climax Molybdenum Climax Mine Molybdenum supply demand China trade patterns

23 China Imports/Exports 12,000,000 10,000,000 YTD July 2014 Exports exceeded Imports by ~8 mm lbs Trailing 12 months July mm lbs exports v mm lbs imports $20 $18 8,000,000 Chinese Imports Increase When the Western Oxide Price is Below China Local Price $16 Pounds Mo 6,000,000 4,000,000 $14 $12 $10 $/Lb Mo 2,000,000 $8 - $6 Total Exports Total Imports China Local Oxide Price MW Mean

24 Thank You!!