Update on production activities of Moly at Freeport

Thursday, 05 Nov 2009

Freeport McMoRan Copper & Gold Inc of the USA released their settlement of accounts for the third quarter of 2009 and according to this report the quantities of molybdenum produced and sold by the Company in July to September quarter of 2009 were as per the table attached hereto.

Namely, Freeport produced 15 million pounds in total of molybdenum in molybdenum concentrate in July to September quarter of 2009, which consisted of at primary mine: 8 million pounds and at copper molybdenum complex mines: 7 million pounds and had a considerable decrease of 28.6% compared with that of 21 million pounds in the same quarter of 2008.

On the other hand, the quantity of molybdenum in concentrate sold by Freeport in July to September quarter of 2009, excluding that purchased from outside sources, was 16 million pounds, which decreased by 15.8% compared with that of 19 million pounds in the same quarter of 2008. In comparison with the sales in July to September quarter of 2008, when molybdenum prices had risen steeply, the quantity of molybdenum sold by Freeport in the same quarter of 2009 had a certain decline but, in view of the fact that molybdenum prices have rebounded from those in the first half of 2009, the sales of molybdenum in July to September quarter had exceeded that of 15 million pounds as forecasted on the 21st of July by the company.

For a reference, Freeport is scheduled to sell 14 million pounds of Mo in molybdenum concentrate in October to December quarter of 2009 and will have no change of the plan to sell 56 million pounds in the calendar year of 2009 as already announced in July of this year. Also, Freeport is anticipated to fall further molybdenum prices in October to December quarter of 2009 in comparison with those in the preceding quarter of July to September and the average price of molybdenum oxide to be realized in October to December quarter is estimated by Freeport at USD 10 per pound of Mo.



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