EX-12.1 3 exhibit12_1.htm EXHIBIT 12.1 Exhibit 12.1
MMR
COMPUTATION OF RATIO OF EARNING TO FIXED CHARGES
(in Thousands)

Computation of Ratio of Earnings
    
to Fixed Charges:
    
 
Years Ended December 31,
  
 
2005
 
2004
  
2003
  
2002
  
2001
  
Income (Loss) from Continuing Operations (a)
(31,470
)
(52,032
)
(41,847
)
18,544
 
(104,801
)
ADD:
                    
Provision for Income Taxes
-
 
-
 
1
 
7
 
8
 
Interest Expense
15,282
 
10,252
 
4,599
 
704
 
357
 
Rental Expense Factor (b)
60
 
66
 
74
 
-
 
-
 
Earnings Available For Fixed Charges
(16,128
)
(41,714
)
(37,173
)
19,255
 
(104,436
)
                     
Interest Expense
15,282
 
10,252
 
4,599
 
704
 
357
 
Capitalized Interest
2,121
 
892
 
-
  
250
 
1,450
 
Rental Expense Factor
60
 
66
 
74
 
-
 
-
 
Fixed Charges
17,463
 
11,210
 
4,673
 
954
 
1,807
 
                     
Ratio of Earnings to Fixed Charges
-
(c)
-
(c)
-
(c)
20.18
 
-
 
                     
Computation of Ratio of Earnings:
                    
to Fixed Charges and Preferred Dividends:
                    
 
Years Ended December 31,
  
 
2005
  
2004
  
2003
  
2002
  
2001
  
Income (Loss) from Continuing Operations (a)
(31,470
)
(52,032
)
(41,847
)
18,544
 
(104,801
)
ADD:
                    
Provision for Income Taxes
-
 
-
 
1
 
7
 
8
 
Interest Expense
15,282
 
10,252
 
4,599
 
704
 
357
 
Rental Expense Factor (b)
60
 
66
 
74
 
-
 
-
 
Earnings Available For Fixed Charges
(16,128
) 
(41,714
) 
(37,173
)
19,255
 
(104,436
)
                     
Interest Expense
15,282
 
10,252
 
4,599
 
704
 
357
 
Capitalized Interest
2,121
 
892
 
-
 
250
 
1,450
 
Preferred dividends (d)
1,503
 
1,531
 
1,631
 
924
 
-
 
Rental Expense Factor
60
 
66
 
74
 
-
 
-
 
Fixed Charges
18,966
 
12,741
 
6,304
 
1,878
 
1,807
 
                     
Ratio of earnings to fixed charges
-
(e)
-
(e)
-
(e)
10.25
 
-
(e)
                     
                     
(a)  
Income (loss) represents McMoRan's continuing oil and gas operations.
(b)  
McMoRan's rental expense has historically related solely to its discontinued sulphur operations.
(c)  
McMoRan sustained a net loss from continuing operations of $31.5 million in 2005, $52.0 million in 2004, $41.8 million in 2003 and $1.8 million in 2001. These losses were inadequate to cover McMoRan fixed charges of $17.5 million in 2005, $11.2 million in 2004, $4.7 million in 2003 and $1.8 million in 2001.
(d)  
Preferred dividends associated with McMoRan's 5% mandatorily reedeemable convertible preferred stock.
(e)  
McMoRan sustained a net loss from continuing operations of $31.5 million in 2005, $52.0 million in 2004, $41.8 million in 2003 and $1.8 million in 2001. These losses were inadequate to cover McMoRan fixed charges of $19.0 million in 2005, $12.7 million in 2004, $6.3 million in 2003 and $1.8 million in 2001.