Exhibit 12.1
FREEPORT-McMoRan COPPER & GOLD INC.
Computation of Ratio of Earnings
to Fixed Charges:
| | | Years Ended December 31, | |
| | | 2005 | | 2004 | | 2003 | | 2002 | | 2001 | |
| | | (In Thousands) | |
| Income from continuing operations | | $ | 995,127 | | $ | 202,267 | | $ | 181,660 | | $ | 164,654 | | $ | 113,025 | |
| Add: | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | 915,068 | | | 330,680 | | | 338,053 | | | 245,518 | | | 202,979 | |
| Cumulative effect of accounting changes, net | | | - | | | - | | | 15,593 | | | 3,049 | | | - | |
| Equity in PT Smelting (earnings) losses | | | (9,302 | ) | | (2,045 | ) | | (5,609 | ) | | 4,181 | | | 5,137 | |
| Minority interests’ share of net income | | | 126,743 | | | 41,437 | | | 48,469 | | | 36,441 | | | 42,772 | |
| Interest expense, net | | | 131,639 | | | 148,103 | | | 197,017 | | | 171,209 | | | 173,595 | |
| Rental expense factor | | | 1,697 | | | 1,342 | | | 1,027 | | | - | | | - | |
| Earnings available for fixed charges | | $ | 2,160,972 | | $ | 721,784 | | $ | 776,210 | | $ | 625,052 | | $ | 537,508 | |
| | | | | | | | | | | | | | | | | |
| Interest expense, net | | $ | 131,639 | | $ | 148,103 | | $ | 197,017 | | $ | 171,209 | | $ | 173,595 | |
| Capitalized interest | | | 4,132 | | | 2,860 | | | 2,994 | | | 12,245 | | | 9,438 | |
| Rental expense factor (a) | | | 1,697 | | | 1,342 | | | 1,027 | | | - | | | - | |
| Fixed charges | | $ | 137,468 | | $ | 152,305 | | $ | 201,038 | | $ | 183,454 | | $ | 183,033 | |
| | | | | | | | | | | | | | | | | |
| Ratio of earnings to fixed charges (b) | | | 15.7x | | | 4.7x | | | 3.9x | | | 3.4x | | | 2.9x | |
| Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends: | | | | | | | | | | | | | | | | |
| | | Years Ended December 31, | |
| | | 2005 | | 2004 | | 2003 | | 2002 | | 2001 | |
| | | (In Thousands) | |
| Income from continuing operations | | $ | 995,127 | | $ | 202,267 | | $ | 181,660 | | $ | 164,654 | | $ | 113,025 | |
| Add: | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | 915,068 | | | 330,680 | | | 338,053 | | | 245,518 | | | 202,979 | |
| Cumulative effect of accounting changes, net | | | - | | | - | | | 15,593 | | | 3,049 | | | - | |
| Equity in PT Smelting (earnings) losses | | | (9,302 | ) | | (2,045 | ) | | (5,609 | ) | | 4,181 | | | 5,137 | |
| Minority interests’ share of net income | | | 126,743 | | | 41,437 | | | 48,469 | | | 36,441 | | | 42,772 | |
| Interest expense, net | | | 131,639 | | | 148,103 | | | 197,017 | | | 171,209 | | | 173,595 | |
| Rental expense factor | | | 1,697 | | | 1,342 | | | 1,027 | | | - | | | - | |
| Earnings available for fixed charges | | $ | 2,160,972 | | $ | 721,784 | | $ | 776,210 | | $ | 625,052 | | $ | 537,508 | |
| | | | | | | | | | | | | | | | | |
| Interest expense, net | | $ | 131,639 | | $ | 148,103 | | $ | 197,017 | | $ | 171,209 | | $ | 173,595 | |
| Capitalized interest | | | 4,132 | | | 2,860 | | | 2,994 | | | 12,245 | | | 9,438 | |
| Rental expense factor (a) | | | 1,697 | | | 1,342 | | | 1,027 | | | - | | | - | |
| Preferred dividends | | | 128,172 | | | 103,108 | | | 60,045 | | | 69,179 | | | 70,563 | |
| Fixed charges | | $ | 265,640 | | $ | 255,413 | | $ | 261,083 | | $ | 252,633 | | $ | 253,596 | |
| | | | | | | | | | | | | | | | | |
| Ratio of earnings to fixed charges (c) | | | 8.1x | | | 2.8x | | | 3.0x | | | 2.5x | | | 2.1x | |
| (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. |
