SouthShore

Freeport-McMoran: Dead Money Until Copper Prices Recover

First Davy, decent write up. Thanks. Will look for any comments from FCX investor relations that you post.

Regarding the preferreds: The convertible preferred mentioned above isn't as attractive as I thought at first glance. As long as FCX common moves down, then the payout from the FCXpM convertible preferreds is more like a return of capital with the preferred share price not rebounding. Upon conversion you won't have a dividend to look forward too, either. Thus, unless you can buy the convertible at a large discount to its conversion including cumulative dividends, then you are just buying the common. Probably better is the FCXGL preferreds that can't be redeemed unless the common shares trade above $69.14/sh. I would like to hear thoughts on this PK. They are cumulative and perpetual.

Also, if Copper returns to historic levels below $1/lb and stays there, can anyone be confident that FCX is viable long term? Again, the more models the better here. I put FCX under $10/sh as a guess if this happens.

Cheers,