EX-12.1 7 exhibit12_1.htm EXHIBIT 12.1 exhibit 12.1

Exhibit 12.1

FREEPORT-McMoRan COPPER & GOLD INC.

Computation of Ratio of Earnings
to Fixed Charges:

   
Years Ended December 31,
  
   
2004
  
2003
  
2002
  
2001
  
2000
  
   
(In Thousands)
  
Income from continuing operations
  
$
202,267
  
$
181,660
  
$
164,654
  
$
113,025
  
$
76,987
  
Add:
                                
Provision for income taxes
    
330,680
    
338,053
    
245,518
    
202,979
    
159,573
  
Cumulative effect of accounting changes, net
    
-
    
15,593
    
3,049
    
-
    
-
  
Equity in PT Smelting (earnings) losses
    
(2,045
)
  
(5,609
)
  
4,181
    
5,137
    
13,593
  
Minority interests’ share of net income
    
41,437
    
48,469
    
36,441
    
42,772
    
36,680
  
Interest expense, net
    
148,103
    
197,017
    
171,209
    
173,595
    
205,346
  
Rental expense factor
    
1,342
    
1,027
    
-
    
-
    
-
  
Earnings available for fixed charges
  
$
721,784
  
$
776,210
  
$
625,052
  
$
537,508
  
$
492,179
  
                                 
Interest expense, net
  
$
148,103
  
$
197,017
  
$
171,209
  
$
173,595
  
$
205,346
  
Capitalized interest
    
2,860
    
2,994
    
12,245
    
9,438
    
7,216
  
Rental expense factor (a)
    
1,342
    
1,027
    
-
    
-
    
-
  
Fixed charges
  
$
152,305
  
$
201,038
  
$
183,454
  
$
183,033
  
$
212,562
  
                                 
Ratio of earnings to fixed charges (b)
    
4.7x
    
3.9x
    
3.4x
    
2.9x
    
2.3x
  

Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends:
                                
   
Years Ended December 31,
  
   
2004
  
2003
  
2002
  
2001
  
2000
  
   
(In Thousands)
  
Income from continuing operations
  
$
202,267
  
$
181,660
  
$
164,654
  
$
113,025
  
$
76,987
  
Add:
                                
Provision for income taxes
    
330,680
    
338,053
    
245,518
    
202,979
    
159,573
  
Cumulative effect of accounting changes, net
    
-
    
15,593
    
3,049
    
-
    
-
  
Equity in PT Smelting (earnings) losses
    
(2,045
)
  
(5,609
)
  
4,181
    
5,137
    
13,593
  
Minority interests’ share of net income
    
41,437
    
48,469
    
36,441
    
42,772
    
36,680
  
Interest expense, net
    
148,103
    
197,017
    
171,209
    
173,595
    
205,346
  
Rental expense factor
    
1,342
    
1,027
    
-
    
-
    
-
  
Earnings available for fixed charges
  
$
721,784
  
$
776,210
  
$
625,052
  
$
537,508
  
$
492,179
  
                                 
Interest expense, net
  
$
148,103
  
$
197,017
  
$
171,209
  
$
173,595
  
$
205,346
  
Capitalized interest
    
2,860
    
2,994
    
12,245
    
9,438
    
7,216
  
Rental expense factor (a)
    
1,342
    
1,027
    
-
    
-
    
-
  
Preferred dividends
    
103,108
    
60,045
    
69,179
    
70,563
    
72,717
  
Fixed charges
  
$
255,413
  
$
261,083
  
$
252,633
  
$
253,596
  
$
285,279
  
                                 
Ratio of earnings to fixed charges (c)
    
2.8x
    
3.0x
    
2.5x
    
2.1x
    
1.7x
  

(a)  
Portion of rent deemed representative of an interest factor.
(b)  
For purposes of this calculation, earnings consist of income from continuing operations before income taxes, minority interests and fixed charges. Fixed charges include interest and that portion of rent deemed representative of interest.
(c)  
For purposes of this calculation, we assume that our preferred stock dividend requirements were equal to the pre-tax earnings that would be required to cover those dividend requirements.