Freeport-McMoRan Copper & Gold Inc. Reports Second-Quarter and Six-Month 2008 Results

PHOENIX--(Business Wire)--
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX):

HIGHLIGHTS

-- Net income applicable to common stock for second-quarter 2008
totaled $947 million, $2.25 per share, compared with $1.1
billion, $2.62 per share, for second-quarter 2007. Net income
applicable to common stock for the first six months of 2008
totaled $2.1 billion, $4.89 per share, compared with $1.6
billion, $4.80 per share, for the first six months of 2007.

-- Consolidated sales from mines for second-quarter 2008 totaled
942 million pounds of copper, 265 thousand ounces of gold and
20 million pounds of molybdenum, compared with 1.0 billion
pounds of copper, 913 thousand ounces of gold and 15 million
pounds of molybdenum for second-quarter 2007. As expected,
copper and gold sales volumes were lower than the year-ago
quarter because of mine sequencing at the Grasberg mine in
Papua, Indonesia.

-- Consolidated sales from mines are expected to approximate 4.1
billion pounds of copper, 1.4 million ounces of gold and 75
million pounds of molybdenum for the year 2008, including 1.0
billion pounds of copper, 315 thousand ounces of gold and 18
million pounds of molybdenum for third-quarter 2008.
Second-half 2008 copper and gold sales are expected to
approximate 2.2 billion pounds and 890 thousand ounces,
approximately 400 million pounds and 350 thousand ounces
higher than the first half of 2008.

-- Operating cash flows totaled $1.0 billion, net of working
capital uses of $765 million, for second-quarter 2008 and $1.6
billion, net of working capital uses of $2.1 billion, for the
first six months of 2008. Assuming average prices of $3.75 per
pound for copper, $900 per ounce for gold and $30 per pound
for molybdenum for the remainder of 2008, operating cash flows
in 2008 would approximate $6.0 billion, including
approximately $4.4 billion for the second half of 2008. Each
$0.20 per pound change in copper prices in the balance of the
year would impact 2008 operating cash flows by approximately
$300 million.

-- Capital expenditures totaled $655 million for second-quarter
2008 and $1.2 billion for the first six months of 2008.
Projected 2008 capital expenditures approximate $3.0 billion,
including investments in development projects in the Americas
and Indonesia, the Tenke Fungurume greenfield project in
Africa and the project to restart the Climax molybdenum mine
in Colorado.

-- Total debt approximated $7.4 billion and consolidated cash was
$1.6 billion at June 30, 2008.

-- FCX's Board of Directors authorized an increase in the common
stock dividend from an annual rate of $1.75 per share to $2.00
per share and expanded the open market share purchase program
to 30 million shares from the prior authorization of 20
million shares.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported
second-quarter 2008 net income applicable to common stock of $947
million, $2.25 per share, compared with $1.1 billion, $2.62 per share,
for the second quarter of 2007. For the six months ended June 30,
2008, FCX reported net income of $2.1 billion, $4.89 per share,
compared with $1.6 billion, $4.80 per share, in the 2007 period. The
results for the 2007 six-month period include the operations of Phelps
Dodge beginning March 20, 2007.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson,
President and Chief Executive Officer, said, "We are progressing our
efforts to develop our large mineral positions in the Americas, Africa
and Indonesia to their full potential. The results of our efforts are
encouraging and we expect success in expanding our reserves and adding
to our growth pipeline. We continue to focus on maximizing current
production volumes which is enabling us to generate significant cash
flows to invest in attractive organic growth projects and provide cash
returns to shareholders. Today's Board actions to increase our common
stock dividend and expand our share purchase program reflect our
financial strength and a positive outlook for our business and
markets."

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SUMMARY FINANCIAL AND OPERATING DATA

Second Quarter
---------------------
2008 2007
------ ------
Financial Data (in millions, except per
share amounts)
Revenues $5,441(b) $5,443(b, c)
Operating income $2,053(d) $2,354(c)
Income from continuing operations
applicable to common stock(e) $ 947(d, f, g)$1,076(c, f, g)
Net income applicable to common
stock(e) $ 947(d, f, g)$1,104(c, f, g)
Diluted net income per share of common
stock(h):
Continuing operations $ 2.25(d, f, g)$ 2.56(c, f, g)
Discontinued operations - 0.06
------ ------
Diluted net income per share of common
stock $ 2.25(d, f, g)$ 2.62(c, f, g)
Diluted average common shares
outstanding(h, i) 450 446
Operating cash flows $1,009(j) $2,081(j)
Capital expenditures $ 655 $ 530

Operating Data - Sales from Mines
Copper (millions of recoverable pounds)
FCX's consolidated share 942 1,010
Average realized price per pound $ 3.85 $ 3.34(c)

Gold (thousands of recoverable ounces)
FCX's consolidated share 265 913
Average realized price per ounce $ 912 $ 659

Molybdenum (millions of recoverable
pounds)
FCX's consolidated share 20 15
Average realized price per pound $31.59 $24.83

Six Months
-----------------------
2008 2007(a)
------- -------
Financial Data (in millions, except
per share amounts)
Revenues $11,113(b) $7,689(b, c)
Operating income $ 4,449(d) $3,526(c)
Income from continuing operations
applicable to common stock(e) $ 2,069(d, f, g) $1,548(c, f, g)
Net income applicable to common
stock(e) $ 2,069(d, f, g) $1,580(c, f, g)
Diluted net income per share of
common stock(h):
Continuing operations $ 4.89(d, f, g) $ 4.71(c, f, g)
Discontinued operations - 0.09
------- -------
Diluted net income per share of
common stock $ 4.89(d, f, g) $ 4.80(c, f, g)
Diluted average common shares
outstanding(h, i) 449 346
Operating cash flows $ 1,624(j) $2,750(j)
Capital expenditures $ 1,163 $ 672

Operating Data - Sales from Mines
Copper (millions of recoverable
pounds)
FCX's consolidated share 1,853 1,530
Average realized price per pound $ 3.77 $ 3.32(c)

Gold (thousands of recoverable
ounces)
FCX's consolidated share 545 1,869
Average realized price per ounce $ 917 $ 660

Molybdenum (millions of recoverable
pounds)
FCX's consolidated share 40 17
Average realized price per pound $ 31.63 $24.68

Note: Disclosures of after-tax amounts throughout this release are
calculated by reference to the applicable tax rate.

a.Includes Phelps Dodge results beginning March 20, 2007.
b.Includes impacts of adjustments to provisionally priced concentrate
and cathode sales recognized in prior periods (see discussion
beginning on page 4).
c.Includes charges for noncash mark-to-market accounting adjustments
on the 2007 copper price protection program totaling $130 million
($80 million to net income or $0.18 per share) and a reduction in
average realized copper prices of $0.13 per pound in second-quarter
2007 and $168 million ($103 million to net income or $0.30 per
share) and a reduction in average realized copper prices of $0.11
per pound in the first six months of 2007. FCX paid $598 million
upon settlement of these contracts in January 2008. FCX does not
currently intend to enter into similar hedging programs in the
future.
d.Includes estimated costs totaling approximately $25 million ($8
million to net income or $0.02 per share) in the 2008 periods for
local infrastructure projects in South America.
e.After preferred dividends.
f.Includes the impact of purchase accounting fair value adjustments
associated with the acquisition of Phelps Dodge totaling $262
million ($163 million to net income or $0.36 per share) for second-
quarter 2008, $456 million ($284 million to net income or $0.64 per
share) for second-quarter 2007, $556 million ($347 million to net
income or $0.77 per share) for the first six months of 2008 and
$579 million ($363 million to net income or $1.05 per share) for
the first six months of 2007. The 2008 periods include net
purchase accounting fair value adjustments related to non-operating
income and expenses totaling $22 million ($13 million to net income
or $0.03 per share) for second-quarter 2008 and $37 million ($22
million to net income or $0.05 per share) for the first six months
of 2008. For additional information regarding the impacts of these
adjustments to production and delivery costs and depreciation,
depletion and amortization refer to the supplemental schedule,
"Business Segments," beginning on page XXIV, which is available on
FCX's web site, "www.fcx.com."
g.Includes net losses on early extinguishment of debt totaling $47
million ($35 million to net income or $0.08 per share) for second-
quarter 2007, $6 million ($5 million to net income or $0.01 per
share) for the first six months of 2008 and $135 million ($110
million to net income or $0.32 per share) for the first six months
of 2007. Also includes gains in the 2008 periods totaling $13
million ($8 million to net income or $0.02 per share) on the sale
of other assets and gains in the 2007 periods totaling $38 million
($23 million to net income or $0.05 per share in second-quarter
2007 and $0.07 per share in the first six months of 2007) on the
sale of marketable equity securities.
h.Reflects assumed conversion of FCX's 6 3/4% Mandatory Convertible
Preferred Stock, which was issued on March 28, 2007, and 5 1/2%
Convertible Perpetual Preferred Stock. See Note h on page IV.
i.On March 19, 2007, FCX issued 136.9 million common shares to acquire
Phelps Dodge. On March 28, 2007, FCX sold 47.15 million common
shares. Common shares outstanding on June 30, 2008, totaled 384
million. Assuming conversion of the instruments discussed in Note
h above and including dilutive stock options and restricted stock
units, total common shares outstanding would approximate 450
million at June 30, 2008.
j.Includes working capital (uses) sources of $(765) million in second-
quarter 2008, $113 million in second-quarter 2007, $(2.1) billion
in the first six months of 2008 and $(89) million in the first six
months of 2007.
*T

OPERATIONS

Consolidated copper sales of 942 million pounds in the second
quarter of 2008 were slightly above previous estimates of 930 million
pounds reported on April 23, 2008, because of the timing of shipments.
Second-quarter 2008 production volumes were slightly lower than
forecast, principally in North America. Second-quarter 2008
consolidated copper sales were seven percent lower than the year-ago
period when FCX was mining in a higher grade section of Grasberg,
partly offset by higher production in North and South America.

Consolidated gold sales of 265 thousand ounces in second-quarter
2008 were higher than previous estimates of 225 thousand ounces
because of mine sequencing at the Grasberg mine in Indonesia. As
expected, consolidated gold sales in the second quarter of 2008 were
significantly lower than the year ago period because of mining in a
lower ore grade section of the Grasberg open pit. Consolidated
molybdenum sales of 20 million pounds in the second quarter of 2008
approximated previous estimates of 18 million pounds.

For the year 2008, FCX projects sales to approximate 4.1 billion
pounds of copper, 1.4 million ounces of gold and 75 million pounds of
molybdenum. Copper sales are expected to be approximately 100 million
pounds lower than previous estimates primarily because of delays in
achieving full production at the new Safford mine and lower than
expected production at Morenci. Efforts are under way to offset these
shortfalls.

Consolidated unit net cash costs were $1.25 per pound in the
second quarter of 2008. Cash costs have increased significantly in the
last twelve months and additional cost escalation was experienced in
the second quarter, principally for energy. The increase in
second-quarter 2008 unit net cash costs compared with the year ago
period also reflects lower volumes at Grasberg. The effect of
increased input costs is expected to result in higher costs in 2008
than previous estimates. Assuming average prices of $3.75 per pound
for copper, $900 per ounce for gold and $30 per pound for molybdenum
for the remainder of 2008, unit net cash costs for the year 2008 would
average approximately $1.10 per pound, compared with FCX's April 23,
2008, estimate of $1.00 per pound. Because of higher volumes in the
second half of 2008, principally from Grasberg, second-half unit net
cash costs are expected to be lower than the first-half average. Unit
net cash costs are expected to average approximately $1.06 per pound
in the second half of 2008, including approximately $1.24 per pound in
third-quarter 2008 and approximately $0.92 per pound in fourth-quarter
2008.

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Second
Quarter Six Months
------------- --------------
2008 2007 2008 2007(a)
------ ------ ------ -------
Consolidated Operating Data
Copper (millions of recoverable
pounds)
Production 941 971 1,821 2,047
Sales(b) 942 1,010 1,853 2,035
Average realized price per pound $ 3.85 $ 3.34(c)$ 3.77 $ 3.19(c)
Unit net cash costs(d) $ 1.25 $ 0.53 $ 1.16 $ 0.47
Gold (thousands of recoverable
ounces)
Production 250 825 525 1,927
Sales(b) 265 913 545 1,890
Average realized price per ounce $ 912 $ 659 $ 917 $ 657
Molybdenum (millions of recoverable
pounds)
Production 18 18 36 35
Sales(b) 20 15 40 34
Average realized price per pound $31.59 $24.83 $31.63 $23.83

a.Amounts are pro forma to reflect the inclusion of Phelps Dodge
results prior to the March 19, 2007 acquisition.
b.Excludes sales of purchased metal.
c.Includes reduction of $0.13 per pound for second-quarter 2007 and
$0.09 per pound for the first six months of 2007 for mark-to-market
accounting adjustments on the 2007 copper price protection program.
d.Reflects weighted average unit net cash costs, net of by-product
credits, for all mines. For reconciliations of actual and pro forma
unit net cash costs per pound by geographic region to production
and delivery costs applicable to actual or pro forma sales reported
in FCX's consolidated financial statements or pro forma
consolidated financial results, refer to the supplemental schedule,
"Product Revenues and Production Costs," beginning on page VIII,
which is available on FCX's web site, "www.fcx.com."
*T

For the first six months of 2008, approximately 50 percent of
FCX's copper was sold in concentrate, 30 percent as rod (principally
from North American operations) and 20 percent as cathodes. Under the
long-established structure of sales agreements prevalent in the
industry, substantially all of FCX's concentrate sales contracts and
most of its cathode sales contracts are provisionally priced at the
time of shipment. The provisional prices are finalized in a specified
future period (generally one to four months from the shipment date)
based on quoted LME or COMEX prices. The sales subject to final
pricing are generally settled in a subsequent month or quarter.
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 realized price for copper for the period.

LME copper prices averaged $3.83 per pound during the second
quarter of 2008, compared with FCX's recorded prices of $3.85 per
pound. The applicable forward copper price at the end of the quarter
was $3.88 per pound. Approximately half of FCX's consolidated copper
sales during the second quarter were provisionally priced at the time
of shipment and are subject to final pricing later in 2008.

At June 30, 2008, FCX had copper sales of 369 million pounds of
copper (net of minority interests) priced at an average of $3.88 per
pound, subject to final pricing over the next several months. Each
$0.05 change in the price realized from the June 30, 2008, price would
result in an approximate $11 million effect on FCX's 2008 net income.
The LME closing spot price for copper on July 21, 2008, was $3.79 per
pound.

At March 31, 2008, 362 million pounds of copper (net of minority
interests) were provisionally priced at $3.82 per pound. Adjustments
to these prior period copper sales increased consolidated revenues by
$5 million ($3 million to net income or $0.01 per share), compared
with an increase of $188 million ($95 million to net income or $0.21
per share) in second-quarter 2007. Additionally, adjustments to prior
year copper sales in the first six months of 2008 resulted in an
increase in consolidated revenues of $267 million ($126 million to net
income or $0.28 per share), compared with an increase of $90 million
($43 million to net income or $0.12 per share) in the first six months
of 2007.

North American Mining. FCX operates seven open-pit copper mining
complexes in North America (Morenci, Bagdad, Sierrita, Safford and
Miami in Arizona and Chino and Tyrone in New Mexico) and conducts
molybdenum mining operations at the Henderson underground mine in
Colorado. By-product molybdenum is primarily produced at Sierrita and
Bagdad. FCX is the world's largest producer of molybdenum. FCX is
engaged in a project to restart the Climax open-pit molybdenum mine in
Colorado. All of these mining operations are wholly owned, except for
Morenci. FCX records its 85 percent joint venture interest in Morenci
using the proportionate consolidation method. The North American
copper mining operations are operated in an integrated fashion and
have long-lived reserves with significant additional development
potential.

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Second
Consolidated Quarter Six Months
------------- --------------
North American Mining Operations 2008 2007 2008 2007(a)
---------------------------------- ------ ------ ------ -------

Copper (millions of recoverable
pounds)
Production 350 335 677 636
Sales(b) 347 333 686 640
Average realized price per pound $3.82 $3.05(c) $3.66 $2.79(c)

Molybdenum (millions of
recoverable pounds)
Production 18 18 35 35
Sales(d) 20 15 40 34
Average realized price per pound $31.59 $24.83 $31.63 $23.83

a.Amounts are pro forma to reflect the inclusion of Phelps Dodge
results prior to the March 19, 2007 acquisition.
b.Excludes sales of purchased metal.
c.Amount was $3.44 per pound for second-quarter 2007 and $3.08 per
pound for the first six months of 2007 before charges for mark-to-
market accounting adjustments on the 2007 copper price protection
program.
d.Excludes sales of purchased metal and includes sales of molybdenum
produced at Cerro Verde.
*T

Consolidated copper sales in North America totaled 347 million
pounds in the second quarter of 2008, slightly above the
second-quarter 2007 sales resulting from the commencement of
production at the recently commissioned Safford mine and higher
production at Sierrita, partly offset by lower Morenci production.

In the second quarter of 2008, consolidated molybdenum sales from
the Henderson and by-product mines totaled 20 million pounds, five
million pounds higher than second-quarter 2007 primarily because of
improved market conditions.

Approximately 85 percent of FCX's expected 2008 molybdenum
production is committed for sale throughout the world pursuant to
annual or quarterly agreements based primarily on prevailing market
prices one month prior to the time of sale. For 2009, 90 percent of
sales is expected to be priced at approximate prevailing market
prices. The Metals Week Dealer Oxide closing price for molybdenum on
July 21, 2008, was $33.75 per pound.

For the year 2008, FCX expects sales from North American
operations to approximate 1.4 billion pounds of copper and 75 million
pounds of molybdenum, compared with 1.3 billion pounds of copper and
69 million pounds of molybdenum for pro forma year 2007.

Unit Net Cash Costs for North American Copper Mines. The following
table summarizes unit net cash costs at the North American copper
mines.

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Second
Quarter Six Months
------------- --------------
2008 2007 2008 2007(a)
------ ------ ------ -------
Per pound of copper:
Site production and delivery, after
adjustments $ 1.84 $ 1.46 $ 1.74 $ 1.39
By-product credits, primarily
molybdenum (0.70) (0.74) (0.74) (0.64)
Treatment charges 0.10 0.09 0.10 0.08
------ ------ ------ -------
Unit net cash costs(b) $ 1.24 $ 0.81 $ 1.10 $ 0.83
====== ====== ====== =======

a.Amounts are pro forma to reflect the inclusion of Phelps Dodge
results prior to the March 19, 2007 acquisition.
b.For a reconciliation of actual and pro forma unit net cash costs per
pound to production and delivery costs applicable to actual or pro
forma sales reported in FCX's consolidated financial statements or
pro forma consolidated financial results, refer to the supplemental
schedule, "Product Revenues and Production Costs," beginning on
page VIII, which is available on FCX's web site, "www.fcx.com."
*T

North America unit net cash costs were higher in the 2008 periods
as compared with the 2007 periods primarily because of increases in
energy, labor, sulfuric acid and other input costs, and increases in
mining rates and lower grades at Morenci, combined with higher unit
costs at Safford as the mine ramps up to full production rates.

Assuming an average copper price of $3.75 per pound and an average
molybdenum price of $30 per pound for the remainder of 2008 and
achievement of current 2008 sales estimates, FCX estimates that its
2008 average unit net cash costs, including molybdenum credits, for
its North American copper mines would approximate $1.29 per pound of
copper. Unit net cash costs for 2008 would change by approximately
$0.02 per pound for each $2 per pound change in the average price of
molybdenum for the remainder of 2008.

Unit Net Cash Costs for Henderson Molybdenum Mine. Second-quarter
2008 unit net cash costs of $4.96 per pound of molybdenum at the
Henderson molybdenum mine were higher, compared with unit net cash
costs of $4.38 per pound for second-quarter 2007, primarily because of
higher input costs, including labor, maintenance, supplies and energy.
Assuming achievement of current 2008 sales estimates, FCX estimates
2008 average unit net cash costs for its Henderson mine at
approximately $5.00 per pound of molybdenum.

South American Mining. FCX operates four copper mines in South
America - Cerro Verde in Peru and Candelaria, Ojos del Salado and El
Abra in Chile. These operations are consolidated in FCX's financial
statements, with outside ownership reported as minority interests.

FCX owns a 53.56 percent interest in Cerro Verde, an open-pit mine
producing both electrowon copper cathodes and copper and molybdenum
concentrates. FCX owns 80 percent of the Candelaria and Ojos del
Salado mining complexes, which include the Candelaria open-pit and
underground mines and the Ojos del Salado underground mines. These
mines use common processing facilities to produce copper concentrates.
FCX owns a 51 percent interest in El Abra, an open-pit mine producing
electrowon copper cathodes.

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Second
Consolidated Quarter Six Months
----------- -------------
South American Mining Operations 2008 2007 2008 2007(a)
------------------------------------------ ----- ----- ----- -------

Copper (millions of recoverable pounds)
Production 369 338 722 645
Sales 366 343 731 644
Average realized price per pound $3.86 $3.54 $3.84 $3.33

Gold (thousands of recoverable ounces)
Production 25 28 51 52
Sales 26 28 53 53
Average realized price per ounce $ 910 $ 674 $ 914 $ 609

a.Amounts are pro forma to reflect the inclusion of Phelps Dodge
results prior to the March 19, 2007 acquisition.
*T

South American copper sales in the second quarter of 2008 were
higher than in second-quarter 2007 primarily reflecting higher
production from Cerro Verde's new concentrator.

Unit Net Cash Costs. The following table summarizes unit net cash
costs at the South American copper mines.

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Second
Quarter Six Months
------------- --------------
2008 2007 2008 2007(a)
------ ------ ------ -------
Per pound of copper:
Site production and delivery, after
adjustments $ 1.15 $ 0.82 $ 1.12 $ 0.83
By-product credits, primarily gold and
molybdenum (0.12) (0.07) (0.13) (0.07)
Treatment charges 0.19 0.21 0.19 0.19
------ ------ ------ -------
Unit net cash costs(b) $ 1.22 $ 0.96 $ 1.18 $ 0.95
====== ====== ====== =======

a.Amounts are pro forma to reflect the inclusion of Phelps Dodge
results prior to the March 19, 2007 acquisition.
b.For a reconciliation of actual and pro forma unit net cash costs per
pound to production and delivery costs applicable to actual or pro
forma sales reported in FCX's consolidated financial statements or
pro forma consolidated financial results, refer to the supplemental
schedule, "Product Revenues and Production Costs," beginning on
page VIII, which is available on FCX's web site, "www.fcx.com."
*T

South America unit net cash costs were higher in the 2008 periods
compared with the 2007 periods primarily because of higher energy
costs, higher mining rates at Candelaria and higher milling costs at
Cerro Verde and Candelaria. These increases were partly offset by
increased production from the recently expanded mill at Cerro Verde
and favorable by-product credits. The 2008 periods' unit net cash
costs also increased because of higher local contributions at Cerro
Verde.

For the year 2008, FCX expects South American sales of 1.5 billion
pounds of copper and 100 thousand ounces of gold, compared with 1.4
billion pounds of copper and 114 thousand ounces of gold for the pro
forma year 2007. In addition, FCX expects to produce three million
pounds of molybdenum at Cerro Verde for the year 2008, compared with
one million pounds for the pro forma year 2007. Estimated 2008
molybdenum production is lower than previous estimates because of
downtime at the Cerro Verde molybdenum plant as start-up issues
continue to be addressed.

Assuming achievement of current 2008 sales estimates, FCX
estimates that its 2008 average unit net cash costs, including gold
and molybdenum credits, for its South American mines would approximate
$1.18 per pound of copper.

Indonesian Mining. Through its 90.64 percent owned subsidiary PT
Freeport Indonesia (PT-FI), FCX operates the world's largest copper
and gold mine in terms of reserves at its Grasberg operations in
Papua, Indonesia.

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Second
Consolidated Quarter Six Months
----------- ------------
Indonesian Mining Operations 2008 2007 2008 2007
--------------------------------------------- ----- ----- ----- ------

Copper (millions of recoverable pounds)
Production 222 298 422 766
Sales 229 334 436 751
Average realized price per pound $3.88 $3.43 $3.84 $ 3.40

Gold (thousands of recoverable ounces)
Production 221 795 467 1,869
Sales 235 880 486 1,827
Average realized price per ounce $ 912 $ 658 $ 917 $ 659
*T

Indonesia copper and gold sales in the second quarter of 2008 were
significantly lower than in the second quarter of 2007 as a result of
the expected mining in a lower ore grade section of the Grasberg open
pit. 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.
PT-FI expects to mine in a higher-grade section of the Grasberg open
pit in the second half of 2008 compared to the first half of 2008.
Approximately 63 percent of 2008 copper sales and 63 percent of 2008
gold sales are estimated in the second half, with the fourth quarter
expected to be the highest of the year.

FCX expects Indonesia sales of 1.2 billion pounds of copper and
1.3 million ounces of gold for the year 2008, compared with 1.1
billion pounds of copper and 2.2 million ounces of gold for the year
2007.

Unit Net Cash Costs (Credits). The following table summarizes
PT-FI's unit net cash costs (credits).

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Second
Quarter Six Months
------------- -------------
2008 2007 2008 2007
------ ------ ------ ------
Per pound of copper:
Site production and delivery, after
adjustments $ 1.90 $ 1.14 $ 1.88 $ 0.92
Gold and silver credits (0.99) (1.79) (1.11) (1.65)
Treatment charges 0.28 0.33 0.31 0.35
Royalties 0.13 0.14 0.13 0.13
------ ------ ------ ------
Unit net cash costs (credits)(a) $ 1.32 $(0.18)$ 1.21 $(0.25)
====== ====== ====== ======

a.For a reconciliation of unit net cash costs (credits) 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 VIII, which is available on FCX's web site, "www.fcx.com."
*T

PT-FI's unit net cash costs, including gold and silver credits,
averaged $1.32 per pound for second-quarter 2008, compared with a net
credit of $0.18 per pound for second-quarter 2007. The higher unit net
cash costs in 2008 reflected the significantly lower copper and gold
volumes and higher input costs, partly offset by higher gold prices
during second-quarter 2008. Unit site production and delivery costs
will vary with fluctuations in production volumes because of the
primarily fixed nature of PT-FI's cost structure. Because the majority
of PT-FI's costs are fixed, unit costs vary with the volumes sold and
the price of gold.

Assuming average copper prices of $3.75 per pound and average gold
prices of $900 per ounce for the remainder of 2008 and achievement of
current 2008 sales estimates, PT-FI estimates that its 2008 unit net
cash costs, including gold and silver credits, would approximate $0.80
per pound. Unit net cash costs for 2008 would change by approximately
$0.02 per pound for each $25 per ounce change in the average price of
gold for the remainder of 2008.

OTHER ITEMS

Atlantic Copper, FCX's wholly owned Spanish smelting unit,
reported operating income of $11 million in the second quarter of
2008, compared with an operating loss of $4 million in the 2007
period. The second quarter of 2007 included a $23 million impact from
its 23-day maintenance turnaround completed in June 2007.

FCX defers recognizing profits on PT-FI's and its South American
mines sales to Atlantic Copper and on 25 percent of PT-FI's sales to
PT Smelting, PT-FI's 25 percent-owned Indonesian smelting unit, until
final sales to third parties occur. Changes in these net deferrals
resulted in a reduction to FCX's net income totaling $6 million, $0.01
per share, in the second quarter of 2008, and an addition to FCX's net
income totaling less than $1 million, less than $0.01 per share, in
the first six months of 2008. For the 2007 periods, changes in these
net deferrals resulted in an addition to FCX's net income totaling $7
million, $0.02 per share, in the second quarter and a reduction to net
income of $103 million, $0.30 per share, in the first six months. At
June 30, 2008, FCX's net deferred profits on PT-FI's and its South
American mines concentrate inventories at Atlantic Copper and PT
Smelting to be recognized in future periods' net income after taxes
and minority interest sharing totaled $93 million.

DEVELOPMENT and EXPLORATION ACTIVITIES

Development Activities. FCX has significant development activities
under way to expand its production volumes, extend its mine lives and
develop large-scale underground ore bodies. Recently completed or
current major projects include a major new mining complex at Safford,
Arizona; a project to restart open-pit mining at Climax; a sulfide
leach project to extend the mine life at El Abra; the development of
the large-scale, high-grade underground ore bodies in the Grasberg
district and development of the highly prospective Tenke Fungurume
project in the Democratic Republic of Congo (DRC).

In addition to the projects currently under way, FCX is reviewing
its properties to evaluate the potential for expansion opportunities
associated with existing ore bodies. FCX has initiated plans for
incremental expansions at the Morenci, Sierrita and Bagdad mines in
Arizona and the Cerro Verde mine in Peru. Based on scoping level
estimates, these projects would provide incremental production ramping
up to over 200 million pounds of copper per year and 7 million pounds
of molybdenum per year by 2011 with preliminary capital costs
estimated to approximate $400 million. Detailed engineering for these
projects is under way, which is expected to result in revised capital
estimates and potential project scope changes. In addition, FCX
restarted limited mining activities at the Miami copper mine in
Arizona as it continues to conduct reclamation activities associated
with historical mining operations. During the approximate five-year
mine life, FCX expects to ramp up to full rates of production of
approximately 100 million pounds of copper per year by 2010. Capital
investment for this project is expected to approximate $100 million,
primarily for mining equipment.

FCX has also expanded its exploration activities and plans to
incorporate this data into its future development plans.

North America. Construction of a major new copper mine in Safford,
Arizona, is complete and copper production is being ramped up to
design capacity of 240 million pounds of copper per year. Copper
production at Safford totaled 22 million pounds in first-quarter 2008
and 24 million pounds in second-quarter 2008. A number of start-up
issues are being addressed, principally associated with achieving
design capacity of the ore stacking circuit and leach recovery
optimization. The mine will continue to ramp up during the second half
of 2008. The Safford copper mine produces ore from two open-pit mines
and includes a solution extraction/electrowinning facility.
Construction commenced in August 2006 and was completed in advance of
initial expectations. The total capital investment for this project
approximated $675 million. FCX will continue to pursue significant
additional exploration and development potential in this district,
including the Lone Star project, a potentially large mineral resource
that is currently being evaluated with a drilling program.

In December 2007, FCX announced plans to proceed with the restart
of the Climax molybdenum mine near Leadville, Colorado. Climax is
believed to be the largest, highest grade and lowest cost undeveloped
molybdenum ore body in the world. Major permits were secured in early
2008. Engineering is in an advanced stage and construction activities
commenced in the second quarter of 2008. Long lead items have been
ordered and are on schedule for delivery. The initial $500 million
project involves open-pit mining and the construction of new milling
facilities. After start-up and commissioning in 2010, production is
expected to approximate 30 million pounds of molybdenum per year. The
project is designed to enable the consideration of further large-scale
expansion of the Climax mine. FCX is currently evaluating a second
phase of the Climax project to expand production rates should market
conditions warrant additional production.

South America. FCX is advancing the development of a large sulfide
deposit at El Abra that will extend the mine life by over ten years.
Copper production from the sulfides is targeted to begin in 2010 and
is expected to average approximately 325 million pounds of copper per
year beginning in 2012, replacing depleting oxide production. Certain
of the existing facilities at El Abra will be used to process the
additional sulfide reserves. In March 2008, FCX received approval of
its environmental impact study associated with this project. Total
initial capital for the project is estimated to approximate $450
million, the majority of which will be spent between 2008 and 2011.

Indonesia. PT-FI has several projects in progress throughout the
Grasberg district, including developing its large-scale underground
ore bodies located beneath and adjacent to the Grasberg open pit. The
expansion of the currently producing Deep Ore Zone (DOZ) mine to
50,000 metric tons of ore per day is complete with second-quarter
rates averaging 66,000 metric tons per day. A further expansion of the
DOZ mine to 80,000 metric tons per day is under way with completion
targeted by 2010. Other projects include the development of the
high-grade Big Gossan mine, expected to ramp up to full production of
7,000 metric tons per day in 2011, and the continued development of
the Common Infrastructure project, which will provide access to the
Grasberg underground ore body, the Kucing Liar ore body and future
development of the mineralized areas below the DOZ mine.

Africa. FCX holds an effective 57.75 percent interest in the Tenke
Fungurume copper and cobalt mining concessions in the Katanga province
of the DRC. FCX is the operator of the project. The initial project at
Tenke Fungurume is based on mining and processing ore reserves
approximating 100 million metric tons with average ore grades of 2.3
percent copper and 0.3 percent cobalt. FCX is currently engaged in
drilling activities, exploration and metallurgical testing to evaluate
the potential of this highly prospective district and expects the ore
reserves to increase significantly over time.

Approximately $700 million in aggregate project costs have been
incurred to date. Construction activities are being advanced with
current activities focused on concrete placement, steel tank erection,
structural steel and infrastructure development including shops,
warehouses and extensive social and regional infrastructure programs.
All long lead time equipment has been ordered and initial production
is targeted during the second half of 2009. Annual production in the
initial years of the project is expected to approximate 250 million
pounds of copper and 18 million pounds of cobalt. FCX expects the
results of drilling activities will enable significant future
expansion of initial production rates.

FCX is responsible for funding 70 percent of the project
development costs and is also responsible for financing its partner's
share of certain project overruns. A capital cost review prepared in
April 2008 indicates estimated capital costs of approximately $1.75
billion (approximately $1.9 billion including loans to a third-party
government agency for power development). These estimates include
substantial amounts for infrastructure to support a larger scale
operation than the initial phase of the project, including the
provision of expanded electrical power-generating capacity and
improved power reliability for the region. This regional power
infrastructure investment is estimated to approximate $175 million,
the majority of which is expected to be funded through a loan to the
DRC State power authority.

FCX is continuing to develop plans to enhance the economic returns
of the project, including expansions of this high potential resource.
The capital cost estimates and timing of start-up will continue to be
reviewed and updated as the project development progresses.

Exploration Activities. FCX is conducting exploration activities
near its existing mines with a focus on opportunities to expand
reserves that will support additional future production capacity in
the large mineral districts where we currently operate.

Drilling activities have been significantly expanded over the last
twelve months. These efforts involve drilling adjacent to existing ore
bodies. The number of drill rigs has been expanded from 26 in March
2007 to 80 currently. Exploration expenses in 2008 are expected to
approximate $240 million.

Results to date have been positive, providing opportunities for
significant potential reserve additions at Morenci, Bagdad and
Sierrita in North America; Cerro Verde in South America and in the
high potential Tenke district. Drilling continues at the Lone Star
deposit in the Safford district.

In addition, FCX continues to pursue exploration in Indonesia.
FCX's 2008 exploration efforts in Indonesia include testing extensions
of the Deep Grasberg and Kucing Liar mine complex, evaluating the
resource below the old Ertsberg pit for potential resumption of open
pit mining and evaluating targets in the area between the Ertsberg
East and Grasberg mineral systems from the new Common Infrastructure
tunnels. FCX has resumed exploration activities in certain prospective
areas in Papua, outside Block A (the Grasberg contract area).

FCX will continue to incorporate the results of drilling
activities into its mine plans to evaluate potential reserve additions
and future expansion opportunities. Feasibility studies will
incorporate various considerations, including recent cost escalation,
water and power issues and environmental and regulatory factors.

CASH and DEBT

At June 30, 2008, FCX had consolidated cash of $1.6 billion and
net cash available to the parent company of $0.9 billion as shown
below (in billions):

-0-
*T
June 30,
2008
----------
Cash at parent company $ 0.1(a)
Cash from international operations 1.5
----------
Total consolidated cash 1.6
Less minority interests' share (0.5)
----------
Cash, net of minority interests' share 1.1
Withholding and other taxes if distributed (0.2)(b)
----------
Net cash available to parent company $ 0.9
==========

a.Includes cash at FCX's North America mining operations.
b.Cash at FCX's international operations is subject to foreign
withholding taxes of up to 22 percent upon repatriation into the
U.S.
*T

At June 30, 2008, FCX had $7.4 billion in debt. The following
table summarizes FCX's debt transactions since December 31, 2007 (in
billions):

-0-
*T
Total debt at December 31, 2007 $ 7.2
Net borrowings under revolving credit facility 0.3
Other borrowings, net 0.1
-----
Total debt at March 31, 2008 7.6
Net repayments under revolving credit facility (0.2)
-----
Total debt at June 30, 2008 $ 7.4
=====
*T

OUTLOOK

FCX's actual consolidated sales volumes for the first half of 2008
and projected consolidated sales volumes for the year 2008 are shown
below:

-0-
*T
2008
-------------------------
First- Full-
Half Year
Consolidated Sales from Mines Actual Estimate
-------------------------------------- ------------ ----------
Copper (recoverable pounds): (millions) (billions)
North America 686 1.4
South America 731 1.5
Indonesia 436 1.2
------------ ----------
Total 1,853 4.1

Gold (recoverable ounces): (thousands) (millions)
Indonesia 486 1.3
Other 59 0.1
------------ ----------
Total 545 1.4

Molybdenum (recoverable pounds): (millions) (millions)
North America 40(a) 75(a)

a. Includes sales of molybdenum produced at Cerro Verde.
*T

Because of mine sequencing at Grasberg and the ramp up of
production at Safford, second-half 2008 production is expected to be
higher than the first half. Approximately 55 percent of consolidated
copper sales and 62 percent of consolidated gold sales are expected in
the second half of the year. The achievement of FCX's sales estimates
will be dependent on the achievement of targeted mining rates and
expansion plans, the successful operation of production facilities,
the impact of weather conditions and other factors.

Using estimated sales volumes for 2008 and assuming average prices
of $3.75 per pound of copper, $900 per ounce of gold and $30 per pound
of molybdenum for the remainder of 2008, FCX's consolidated operating
cash flows would approximate $6.0 billion in 2008, including
approximately $4.4 billion projected for the second half of 2008. Each
$0.20 per pound change in copper prices in the balance of the year
would have an approximately $300 million impact on 2008 operating cash
flows. Using flat pricing assumptions for the remainder of the year,
second-half 2008 operating cash flows would be significantly higher
than the first half. FCX's capital expenditures for 2008 are currently
estimated to approximate $3.0 billion. With a continuation of
favorable market conditions, FCX expects to generate cash flows during
2008 significantly greater than its capital expenditures, minority
interests distributions, dividends and other cash requirements.

FINANCIAL POLICY

FCX has a long-standing tradition of seeking to build shareholder
values through pursuing development projects with high rates of return
and returning cash to shareholders through common stock dividends and
share purchases.

FCX separately announced today that its Board of Directors
authorized an increase in its annual common dividend to $2.00 per
share from its current level of $1.75 per share, effective with the
November 2008 quarterly dividend. The new common dividend results in
an increase in common dividends to approximately $770 million per year
from the current total approximating $670 million. Preferred dividends
total approximately $255 million per year.

FCX also announced today that its Board of Directors approved an
increase in its open market share purchase program to 30 million
shares from the prior authorization of 20 million shares. The timing
of future purchases is dependent upon many factors including the
company's operating results, its cash flow and financial position, its
future expansion plans, copper prices, the market price of the common
shares and general economic and market conditions.

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.

The company's portfolio of assets includes the Grasberg mining
complex, the world's largest copper and gold mine in terms of
recoverable reserves, significant mining operations in the Americas,
including the large scale Morenci and Safford minerals districts in
North America and the Cerro Verde and El Abra operations in South
America, and the potential world-class Tenke Fungurume development
project in the Democratic Republic of Congo. Additional information
about FCX is available on FCX's web site at 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 operating cash flows, projected capital expenditures, the
impact of copper, gold and molybdenum price changes, the impact of
changes in deferred intercompany profits on earnings and timing of
dividend payments and open market purchases of FCX common stock. The
declaration and payment of dividends is at the discretion of FCX's
Board of Directors and will depend on FCX's financial results, cash
requirements, future prospects and other factors deemed relevant by
the Board. Accuracy of the forward-looking statements depends on
assumptions about events that change over time and is thus susceptible
to periodic change based on actual experience and new developments.
FCX cautions readers that it assumes no obligation to update or
publicly release any revisions to the forward-looking statements in
this press release and, except to the extent required by applicable
law, does not intend to update or otherwise revise the forward-looking
statements 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, political risks, weather-related risks, labor
relations, currency translation risks and other factors described in
FCX's Annual Report on Form 10-K for the year ended December 31, 2007,
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 per pound of
molybdenum. As required by SEC Regulation G, reconciliations of these
measures to amounts reported in FCX's consolidated financial
statements or pro forma consolidated financial results are in the
supplemental schedule, "Product Revenues and Production Costs,"
beginning on page VIII, which is available on FCX's web site,
"www.fcx.com."

A copy of this press release is available on FCX's web site,
"www.fcx.com." A conference call with securities analysts about
second-quarter 2008 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, August 15, 2008.

-0-
*T
FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA

Three Months Ended June 30,
---------------------------------
COPPER Production Sales
---------------------------------- ------------- -------------------
(millions of recoverable pounds) 2008 2007 2008 2007
------ ------ --------- ---------
MINED COPPER (FCX's net interest
in %)
North America
----------------------------------
Morenci (85%) 155(a) 183(a) 158(a) 180(a)
Bagdad (100%) 54 51 54 47
Sierrita (100%) 49 35 46 36
Chino (100%) 47 44 48 45
Tyrone (100%) 16 11 15 13
Miami (100%) 4 6 5 5
Tohono (100%) 1 1 - 1
Safford (100%) 24 - 20 -
Other (100%) - 4 1 6
--- --- ------ ------
Total North America 350 335 347 333
--- --- ------ ------

South America
----------------------------------
Cerro Verde (53.56%) 179 142 181 132
Candelaria/Ojos del Salado
(80%) 97 108 101 108
El Abra (51%) 93 88 84 103
--- --- ------ ------
Total South America 369 338 366 343
--- --- ------ ------

Indonesia
----------------------------------
Grasberg (90.64%) 222(b) 298(b) 229(b) 334(b)
--- --- ------ ------
Consolidated 941 971 942 1,010
--- --- ------ ------

Less minority participants'
share 169 159 167 164
--- --- ------ ------
Net 772 812 775 846
=== === ====== ======

Consolidated sales from mines 942 1,010
Purchased copper 130 180
------ ------
Total consolidated sales 1,072 1,190
====== ======

Average realized price per pound $ 3.85 $ 3.34(c)

GOLD
----------------------------------
(thousands of recoverable ounces)
MINED GOLD (FCX's net interest in
%)
North America (100%) 4 2 4 5
South America (80%) 25 28 26 28
Indonesia (90.64%) 221(b) 795(b) 235(b) 880(b)
--- --- ------ ------
Consolidated 250 825 265 913
--- --- ------ ------

Less minority participants'
share 26 80 27 88
--- --- ------ ------
Net 224 745 238 825
=== === ====== ======

Consolidated sales from mines 265 913
Purchased gold 1 -
------ ------
Total consolidated sales 266 913
====== ======

Average realized price per ounce $ 912 $ 659

MOLYBDENUM
----------------------------------
(millions of recoverable pounds)
MINED MOLYBDENUM (FCX's net
interest in %)
Henderson (100%) 11 10 N/A N/A
By-product - North America
(100%) 7(a) 8(a) N/A N/A
By-product - Cerro Verde
(53.56%) -(d) - N/A N/A
--- --- ------ ------
Consolidated 18 18 20 15
=== === ------ ------

Purchased molybdenum 2 3
------ ------
Total consolidated sales 22 18
====== ======

Average realized price per pound $31.59 $24.83

a.Amounts are net of Morenci's joint venture partner's 15 percent
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.Includes reduction of $0.13 per pound for mark-to-market accounting
adjustment on copper price protection program.
d.Amount rounds to less than 1 million.
*T

-0-
*T
FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
(continued)

Six Months Ended June 30,
-------------------------------------
COPPER Production Sales
------------------------------ ----------------- -------------------
(millions of recoverable
pounds) 2008 2007(a) 2008 2007(a)
-------- -------- --------- ---------
MINED COPPER (FCX's net
interest in %)
North America
------------------------------
Morenci (85%) 301(b) 341(b) 318(b) 332(b)
Bagdad (100%) 106 93 107 93
Sierrita (100%) 90 72 87 77
Chino (100%) 91 85 97 86
Tyrone (100%) 31 24 30 25
Miami (100%) 9 9 10 13
Tohono (100%) 1 2 1 2
Safford (100%) 46 - 33 -
Other (100%) 2 10 3 12
----- ----- ------ ------
Total North America 677 636(c) 686 640(c)
----- ----- ------ ------

South America
------------------------------
Cerro Verde (53.56%) 345 254 349 245
Candelaria/Ojos del Salado
(80%) 197 208 204 212
El Abra (51%) 180 183 178 187
----- ----- ------ ------
Total South America 722 645(c) 731 644(c)
----- ----- ------ ------

Indonesia
------------------------------
Grasberg (90.64%) 422(d) 766(d) 436(d) 751(d)
----- ----- ------ ------
Consolidated 1,821 2,047 1,853 2,035
----- ----- ------ ------

Less minority participants'
share 327 321 331 318
----- ----- ------ ------
Net 1,494 1,726 1,522 1,717
===== ===== ====== ======

Consolidated sales from
mines 1,853 2,035
Purchased copper 301 357
------ ------
Total consolidated sales 2,154 2,392
====== ======

Average realized price per
pound $ 3.77 $ 3.19(e)

GOLD
------------------------------
(thousands of recoverable
ounces)
MINED GOLD (FCX's net interest
in %)
North America (100%) 7 6 6 10
South America (80%) 51 52(f) 53 53(f)
Indonesia (90.64%) 467(d) 1,869(d) 486(d) 1,827(d)
----- ----- ------ ------
Consolidated 525 1,927 545 1,890
----- ----- ------ ------

Less minority participants'
share 54 185 56 182
----- ----- ------ ------
Net 471 1,742 489 1,708
===== ===== ====== ======

Consolidated sales from
mines 545 1,890
Purchased gold 1 4
------ ------
Total consolidated sales 546 1,894
====== ======

Average realized price per
ounce $ 917 $ 657

MOLYBDENUM
------------------------------
(millions of recoverable
pounds)
MINED MOLYBDENUM (FCX's net
interest in %)
Henderson (100%) 20 20 N/A N/A
By-product - North America
(100%) 15(b) 15(b) N/A N/A
By-product - Cerro Verde
(53.56%) 1 - N/A N/A
----- ----- ------ ------
Consolidated 36 35(g) 40 34(g)
===== ===== ------ ------

Purchased molybdenum 4 5
------ ------
Total consolidated sales 44 39
====== ======

Average realized price per
pound $31.63 $23.83

a.The six-month 2007 data includes Phelps Dodge's pre-acquisition
results for comparative purposes only.
b.Amounts are net of Morenci's joint venture partner's 15 percent
interest.
c.Includes North American copper production of 258 million pounds and
sales of 283 million pounds and South American copper production of
259 million pounds and sales of 222 million pounds for Phelps
Dodge's pre-acquisition results.
d.Amounts are net of Grasberg's joint venture partner's interest,
which varies in accordance with the terms of the joint venture
agreement.
e.Includes reduction of $0.09 per pound for mark-to-market accounting
adjustment on Phelps Dodge's 2007 copper price protection program.
f.Includes gold production of 21 thousand ounces and sales of 18
thousand ounces for Phelps Dodge's pre-acquisition results.
g.Includes molybdenum production of 14 million pounds and sales of 17
million pounds for Phelps Dodge's pre-acquisition results.
*T

-0-
*T
FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
(continued)

Three Months Ended Six Months Ended
June 30, June 30,
------------------- ------------------
2008 2007 2008 2007( a)
--------- ------- --------- --------

100% North American Mining
Operating Data, Including
Joint Venture Interest

Solution
Extraction/Electrowinning
(SX/EW) Operations
-----------------------------
Leach ore placed in
stockpiles (metric tons per
day) 1,099,500 743,100 1,117,200 710,400
Average copper ore grade
(percent) 0.23 0.25 0.21 0.27
Copper production (millions
of recoverable pounds) 215 248 432 476

Mill Operations
-----------------------------
Ore milled (metric tons per
day) 257,600 227,300 250,800 218,200
Average ore grades
(percent):
Copper 0.40 0.34 0.39 0.32
Molybdenum 0.02 0.03 0.02 0.02
Copper recovery rate
(percent) 84.6 84.4 82.9 84.6
Production (millions of
recoverable pounds):
Copper 163 119 299 220
Molybdenum (by-product) 7 8 15 15

Molybdenum Operations
(Henderson)
-----------------------------
Ore milled (metric tons per
day) 26,800 25,400 25,900 25,000
Average molybdenum ore grade
(percent) 0.23 0.22 0.22 0.22
Molybdenum production
(millions of recoverable
pounds) 11 10 20 20

100% South American Mining
Operating Data

SX/EW Operations
-----------------------------
Leach ore placed in
stockpiles (metric tons per
day) 291,500 305,200 282,800 290,700
Average copper ore grade
(percent) 0.42 0.42 0.41 0.40
Copper production (millions
of recoverable pounds) 144 142 279 291

Mill Operations
-----------------------------
Ore milled (metric tons per
day) 177,200 168,000 173,900 154,700
Average ore grades
(percent):
Copper 0.72 0.72 0.73 0.70
Molybdenum 0.02 - 0.02 -
Copper recovery rate
(percent) 89.7 84.1 90.2 85.3
Production (millions of
recoverable pounds):
Copper 225 196 443 354
Molybdenum -(b) - 1 -

100% Indonesian Mining
Operating Data, Including
Joint Venture Interest

Ore milled (metric tons per
day) 183,300 215,000 181,600 221,700

Average ore grades:
Copper (percent) 0.75 0.82 0.72 1.02
Gold (grams per metric ton) 0.54 1.63 0.57 1.82

Recovery rates (percent):
Copper 89.8 91.8 89.7 91.3
Gold 78.9 88.6 79.0 88.1

Production (recoverable):
Copper (millions of pounds) 237 310 451 790
Gold (thousands of ounces) 221 889 467 2,035

a.Includes Phelps Dodge pre-acquisition results for comparative
purposes only.
b.Amount rounds to less than 1 million.
*T

-0-
*T
FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
------------------- ------------------
2008 2007 2008 2007(a)
-------- ------- ------- -------
(In Millions, Except Per Share Amounts)
Revenues $ 5,441(b) $ 5,443(b)$11,113(b) $ 7,689(b)
Cost of sales:
Production and delivery 2,720(c) 2,540(c) 5,442(c) 3,443(c)
Depreciation, depletion
and amortization 462(c) 374(c) 880(c) 490(c)
-------- ------- ------- -------
Total cost of sales 3,182 2,914 6,322 3,933
Selling, general and
administrative expenses 126 135 210(d) 183
Exploration and research
expenses 80 40 132 47
-------- ------- ------- -------
Total costs and
expenses 3,388 3,089 6,664 4,163
-------- ------- ------- -------
Operating income 2,053 2,354 4,449 3,526
Interest expense, net (140)(e) (179) (305)(e) (231)
Losses on early
extinguishment of debt - (47) (6) (135)
Gains on sales of assets 13(f) 38(f) 13(f) 38(f)
Other income, net 9 38 11 62
Equity in affiliated
companies' net earnings 7 7 14 12
-------- ------- ------- -------
Income from continuing
operations before income
taxes and minority
interests 1,942 2,211 4,176 3,272
Provision for income
taxes (658) (764) (1,387) (1,222)
Minority interests in net
income of consolidated
subsidiaries (274) (307) (593) (421)
-------- ------- ------- -------
Income from continuing
operations 1,010 1,140 2,196 1,629
Income from discontinued
operations, net of taxes - 28(g) - 32(g)
-------- ------- ------- -------
Net income 1,010 1,168 2,196 1,661
Preferred dividends (63) (64) (127) (81)
-------- ------- ------- -------
Net income applicable to
common stock $ 947 $ 1,104 $ 2,069 $ 1,580
======== ======= ======= =======

Basic net income per
share of common stock:
Continuing operations $ 2.47 $ 2.83 $ 5.40 $ 5.16
Discontinued operations - 0.07(g) - 0.11(g)
-------- ------- ------- -------
Basic net income per
share of common stock $ 2.47 $ 2.90 $ 5.40 $ 5.27
======== ======= ======= =======

Diluted net income per
share of common stock:
Continuing operations $ 2.25 $ 2.56 $ 4.89 $ 4.71
Discontinued operations - 0.06(g) - 0.09(g)
-------- ------- ------- -------
Diluted net income per
share of common stock $ 2.25(h) $ 2.62(h)$ 4.89(h) $ 4.80(h)
======== ======= ======= =======

Average common shares
outstanding:
Basic 384(i) 381(i) 383(i) 300(i)
======== ======= ======= =======
Diluted 450(h) 446(h) 449(h) 346(h)
======== ======= ======= =======

Dividends declared per
share of common stock $0.4375 $0.3125 $ 0.875 $ 0.625
======== ======= ======= =======

a.Includes Phelps Dodge results beginning March 20, 2007.
b.Includes positive adjustments to prior period copper sales totaling
$5 million in second-quarter 2008, $188 million in second-quarter
2007, $267 million in the 2008 six-month period and $90 million in
the 2007 six-month period. In addition, charges for mark-to-market
accounting adjustments on the 2007 copper price protection program
totaled $130 million in second-quarter 2007 and $168 million in the
2007 six-month period.
c.Includes impact of purchase accounting adjustments related to the
Phelps Dodge acquisition, which increased production costs by $12
million in second-quarter 2008, $269 million in second-quarter
2007, $84 million in the 2008 six-month period and $365 million in
the 2007 six-month period, and increased depreciation, depletion
and amortization by $230 million in second-quarter 2008, $186
million in second-quarter 2007, $437 million in the 2008 six-month
period and $214 million in the 2007 six-month period.
d.Includes reductions totaling approximately $40 million to adjust
2007 incentive compensation to actual cash and stock-based
compensation awards approved by the Corporate Personnel Committee
of FCX's Board of Directors in January 2008.
e.Includes net interest expense of $22 million in second-quarter 2008
and $41 million in the 2008 six-month period primarily associated
with accretion on the fair values (discounted cash flow basis) of
environmental liabilities assumed in the acquisition of Phelps
Dodge.
f.Primarily represents gains on sales of other assets for the 2008
periods and gains on sales of marketable equity securities for the
2007 periods.
g.Relates to the operations of Phelps Dodge International Corporation
(PDIC), which FCX sold on October 31, 2007.
h.Reflects assumed conversion of FCX's 5 1/2% Convertible Perpetual
Preferred Stock, resulting in the exclusion of dividends totaling
$15 million in each of the quarters and $30 million in each of the
six-month periods. Also includes assumed conversion of FCX's 6 3/4%
Mandatory Convertible Preferred Stock, of which FCX sold 28.75
million shares on March 28, 2007, reflecting exclusion of dividends
totaling $48 million in second-quarter 2008, $49 million in second-
quarter 2007, $97 million in the 2008 six-month period and $51
million in the 2007 six-month period. The assumed conversions
result in the inclusion of 62 million common shares in second-
quarter 2008, in second-quarter 2007 and in the 2008 six-month
period and 44 million common shares in the 2007 six-month period.
i.On March 19, 2007, FCX issued 136.9 million shares to acquire Phelps
Dodge; and on March 28, 2007, FCX sold 47.15 million common shares
in a public offering.
*T

-0-
*T
FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

June 30, December 31,
2008 2007
-------- ------------
(In Millions)
ASSETS
Current assets:
Cash and cash equivalents $ 1,648 $ 1,626
Trade accounts receivable 1,964 1,099
Other accounts receivable 247 196
Product inventories and materials and
supplies, net 2,365 2,178
Mill and leach stockpiles 866 707
Prepaid expenses and other current assets 81 97
-------- ------------
Total current assets 7,171 5,903
Property, plant, equipment and development
costs, net 26,129 25,715
Goodwill 6,048 6,105
Long-term mill and leach stockpiles 1,215 1,106
Trust assets 598 606
Intangible assets, net 448 472
Other assets and deferred charges 739 754
-------- ------------
Total assets $42,348 $40,661
======== ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 2,405 $ 2,345
Accrued income taxes 288 420
Current portion of reclamation and
environmental liabilities 247 263
Dividends payable 213 212
Current portion of long-term debt and short-
term borrowings 31 31
Copper price protection program - 598
-------- ------------
Total current liabilities 3,184 3,869
Long-term debt, less current portion:
Senior notes 6,886 6,928
Project financing, equipment loans and other 357 252
Revolving credit facility 90 -
-------- ------------
Total long-term debt, less current portion 7,333 7,180
Deferred income taxes 6,986 7,300
Reclamation and environmental liabilities, less
current portion 1,937 1,733
Other liabilities 1,120 1,106
-------- ------------
Total liabilities 20,560 21,188
Minority interests in consolidated subsidiaries 1,616 1,239
Stockholders' equity:
5 1/2% Convertible Perpetual Preferred Stock 1,100 1,100
6 3/4% Mandatory Convertible Preferred Stock 2,875 2,875
Common stock 50 50
Capital in excess of par value 13,675 13,407
Retained earnings 5,332 3,601
Accumulated other comprehensive income 42 42
Common stock held in treasury (2,902) (2,841)
-------- ------------
Total stockholders' equity 20,172 18,234
-------- ------------
Total liabilities and stockholders' equity $42,348 $40,661
======== ============
*T

-0-
*T
FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended
June 30,
-----------------
2008 2007
------- --------
(In Millions)

Cash flow from operating activities:
Net income $ 2,196 $ 1,661
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization 880 495
Minority interests in net income of consolidated
subsidiaries 593 427
Stock-based compensation 92 80
Accretion of reclamation and environmental
liabilities 75 12
Unrealized losses on copper price protection
program - 168
Losses on early extinguishment of debt 6 135
Deferred income taxes (114) (102)
Increase in long-term mill and leach stockpiles (110) (101)
Increase in other long-term liabilities 71 68
Other, net 41 (4)
(Increases) decreases in working capital,
excluding amounts
acquired from Phelps Dodge:
Accounts receivable (921) (557)
Inventories (371) 298
Prepaid expenses and other 9 16
Accounts payable and accrued liabilities (525) 210
Accrued income taxes (212) (20)
Settlement of reclamation and environmental
liabilities (86) (36)
------- --------
Net cash provided by operating activities 1,624 2,750
------- --------

Cash flow from investing activities:
Phelps Dodge capital expenditures (927) (476)
PT Freeport Indonesia capital expenditures (224) (175)
Other capital expenditures (12) (21)
Acquisition of Phelps Dodge, net of cash acquired (1) (13,906)
Proceeds from the sales of assets and other, net 56 90
------- --------
Net cash used in investing activities (1,108) (14,488)
------- --------

Cash flow from financing activities:
Proceeds from term loans under bank credit
facility - 10,000
Repayments of term loans under bank credit
facility - (7,550)
Net proceeds from sales of senior notes - 5,880
Net proceeds from sale of common stock - 2,816
Net proceeds from sale of 6 3/4% Mandatory
Convertible Preferred Stock - 2,803
Proceeds from revolving credit facility and other
debt 524 227
Repayments of revolving credit facility and other
debt (384) (481)
Cash dividends paid:
Common stock (337) (182)
Preferred stock (127) (30)
Minority interests (280) (314)
Net proceeds from (payments for) exercised stock
options 22 (24)
Excess tax benefit from exercised stock options 25 7
Bank credit facilities fees and other, net 63 (243)
------- --------
Net cash (used in) provided by financing
activities (494) 12,909
------- --------

Net increase in cash and cash equivalents 22 1,171
Cash and cash equivalents at beginning of year 1,626 907
------- --------
Cash and cash equivalents at end of period $ 1,648 $ 2,078
======= ========
*T

Freeport-McMoRan Copper & Gold Inc.
Financial Contacts:
Kathleen L. Quirk, 602-366-8016
or
David P. Joint, 504-582-4203
or
Media Contact:
William L. Collier, 504-582-1750

Copyright Business Wire 2008