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February 19, 2010 Dear Friend,
Attached is a very detailed
report on FCX's 2016-2021 underground mining transition tonnages
and grades in which we raised our price target to $142 from $135
after modeling the post-2015 to 2041 period more carefully.
Today a dear old friend, Skip
Carpenter, joined us from Morgan Stanley. His initial duties
will include but not be limited to Director of Marketing. We
have 8 outside salespeople currently, and expect they will
account for over 25% of our revenue in 2010. We want to
coordinate among our marketing channels, increase our level of
service to all of clients, overlook none (or at least fewer) and
provide regularity of at least monthly personal contact.
Skip will be phoning you in
the next days or weeks to introduce himself, provide you with
your password for our 7:45 am Monday/Thursday morning calls/tape
replays and get to know you better. We will also be working on
the one-on-one schedules for our March 24-25 conference in New
York. We added Northern Dynasty Minerals, with $450 billion in
situ copper, gold and moly in Alaska, and Silver Standard as
speakers for March.
Skip approached me one
evening working late at DLJ in 1992, where he found the
cosmetics industry less interesting than nonferrous metals. He
was my research associate for two years, and a senior analyst
for Beverages, Restaurants and Packaging at DLJ, Credit Suisse
and Thomas Weisel for 10 years. Leading stocks he followed
included Coke, Pepsi, the bottlers, Anheuser-Busch,
Owens-Illinois, Ball, Crown Cork, Starbucks, Yum Brands and a
couple others. Skip took his MBA at the University of Michigan
and majored in finance at Duke Univ.
We value Skip's decade of
experience as a sell-side analyst, and maturity understanding
our industry. He provides a depth of experience, and could step
in to help produce the research in the case of
turnover/unexpected illness or undertake special projects if we
had a surge of special requests. In 1992-94 Skip visited
Barrick's gold mines in Elko, NV, copper mines of Phelps Dodge
in AZ and NM, FCX analyst outings in New Orleans and a kept our
models for base metals companies for me. He offers a better
liaison with our clients than a traditional salesperson.
John C. Tumazos
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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