FREEPORT MCMORAN COPPER & GOLD INC - 10-Q Quarterly Report



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
OR
[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from		to
Commission File Number: 1-9916


Freeport-McMoRan Copper & Gold Inc.
(Exact name of registrant as specified in its charter)

Delaware	74-2480931
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

1615 Poydras Street
New Orleans, Louisiana	70112
(Address of principal executive offices)	(Zip Code)


(504) 582-4000
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No __

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes X No __

On March 31, 2005, there were issued and outstanding 179,678,955 shares of the registrant’s Class B Common Stock, par value $0.10 per share.

FREEPORT-McMoRan COPPER & GOLD INC.

TABLE OF CONTENTS


	Page
Part I. Financial Information	3

Item 1. Financial Statements:

Condensed Consolidated Balance Sheets (Unaudited)	3

Consolidated Statements of Operations (Unaudited)	4

Consolidated Statements of Cash Flows (Unaudited)	5

Notes to Consolidated Financial Statements	6

Remarks	10

Review Report of Independent Registered Public Accounting Firm	11

Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations	12

Item 3. Quantitative and Qualitative Disclosures about Market Risk	31

Item 4. Controls and Procedures	31

Part II. Other Information	31

Item 1. Legal Proceedings	31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 6. Exhibits	32

Signature	32

Exhibit Index	E-1

FREEPORT-McMoRan COPPER & GOLD INC.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

FREEPORT-McMoRan COPPER & GOLD INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	March 31,		December 31,
	2005		2004
	(In Thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	310,542	$	551,450
Restricted cash		500		500
Accounts receivable		396,054		435,062
Inventories		446,602		466,712
Prepaid expenses and other		14,324		6,223
Total current assets		1,168,022		1,459,947
Property, plant, equipment and development costs, net		3,166,743		3,199,292
Deferred mining costs		252,634		220,415
Other assets		154,483		159,539
Investment in PT Smelting		47,821		47,802
Total assets	$	4,789,703	$	5,086,995

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	344,391	$	386,590
Current portion of long-term debt and short-term borrowings		192,377		78,214
Accrued income taxes		86,676		92,346
Rio Tinto share of joint venture cash flows		62,717		60,224
Unearned customer receipts		39,308		33,021
Accrued interest payable		19,462		47,167
Total current liabilities		744,931		697,562
Long-term debt, less current portion:
Senior notes		900,386		911,336
Convertible senior notes		575,000		575,000
Equipment and other loans		64,607		67,624
Atlantic Copper debt		24,046		4,426
Redeemable preferred stock		12,501		179,880
PT Puncakjaya Power bank debt		-		135,426
Total long-term debt, less current portion		1,576,540		1,873,692
Accrued postretirement benefits and other liabilities		200,488		200,228
Deferred income taxes		903,676		932,416
Minority interests		193,455		219,448
Stockholders’ equity		1,170,613		1,163,649
Total liabilities and stockholders' equity	$	4,789,703	$	5,086,995

The accompanying notes are an integral part of these financial statements.

FREEPORT-McMoRan COPPER & GOLD INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended March 31,
	2005			2004
	(In Thousands, Except Per Share Amounts)
Revenues	$	803,065		$	360,185
Cost of sales:
Production and delivery		365,006			275,612
Depreciation and amortization		56,926			25,410
Total cost of sales		421,932			301,022
Exploration expenses		1,920			2,227
General and administrative expenses		21,614			15,560
Total costs and expenses		445,466			318,809
Operating income		357,599			41,376
Equity in PT Smelting earnings (losses)		2,596			(358	)
Interest expense, net		(37,548	)		(33,390	)
Gains (losses) on early extinguishment and conversion of debt		37			(14,643	)
Other income, net		7,952			3,542
Income (loss) before income taxes and minority interests		330,636			(3,473	)
Provision for income taxes		(164,028	)		(18,341	)
Minority interests in net (income) loss of consolidated subsidiaries		(21,088	)		2,431
Net income (loss)		145,520			(19,383	)
Preferred dividends		(15,125	)		(168	)
Net income (loss) applicable to common stock	$	130,395		$	(19,551	)

Net income (loss) per share of common stock:
Basic		$0.73			$(0.10	)

Diluted		$0.70			$(0.10	)

Average common shares outstanding:
Basic		179,320			197,938

Diluted		200,126			197,938

Dividends paid per share of common stock		$0.75			$0.20

The accompanying notes are an integral part of these financial statements.

FREEPORT-McMoRan COPPER & GOLD INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended March 31,
	2005			2004
	(In Thousands)
Cash flow from operating activities:
Net income (loss)	$	145,520		$	(19,383	)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization		56,926			25,410
(Gains) losses on early extinguishment and conversion of debt		(37	)		14,643
Deferred income taxes		(12,020	)