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Item 1. Financial Statements

2023-08-03 compared with 2023-05-04 · 282 added, 121 removed, 507 unchanged (44% of the section changed)

21 unchanged sentences

Accrued income taxes 531 744

Current portion of environmental and asset retirement obligations 333 320

Current portion of environmental and asset retirement obligations (AROs) 361 320

Dividends payable 217 217

2 unchanged sentences

Long-term debt, less current portion 9,458 9,583

Environmental and asset retirement obligations, less current portion 4,493 4,463

Environmental and AROs, less current portion 4,566 4,463

Deferred income taxes 4,343 4,269

14 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

(In Millions, Except Per Share Amounts)

2 unchanged sentences

Production and delivery 3,548 3,003 6,712 6,153

Depreciation, depletion and amortization 399 489

Depreciation, depletion and amortization (DD&A) 547 507 946 996

Metals inventory adjustments 1 18 2 18

Total cost of sales 4,096 3,528 7,660 7,167

2 unchanged sentences

Environmental obligations and shutdown costs

Net gain on sales of assets — ( 2 ) — ( 2 )

Total costs and expenses 4,327 3,680 8,115 7,474

1 unchanged sentence

Interest expense, net ( 171 ) ( 156 ) ( 322 ) ( 283 )

Net gain on early extinguishment of debt 5 8 5 8

Other income, net 24 11 112 42

9 unchanged sentences

Weighted-average shares of common stock outstanding:

1,434 1,447 1,434 1,451

1,442 1,457 1,443 1,463

Dividends declared per share of common stock $ 0.15 $ 0.15 $ 0.30 $ 0.30

2 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

(In Millions)

4 unchanged sentences

Amortization of unrecognized amounts included in net periodic benefit costs 1 2 2 4

Foreign exchange gains 1 —

Foreign exchange (losses) gains — ( 1 ) 1 ( 1 )

Other comprehensive income 1 1 3 2

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended

Six Months Ended

(In Millions)

2 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization 399 489

Metals inventory adjustments 2 18

Net gain on sales of assets — ( 2 )

Stock-based compensation 72 62

Net charges for environmental and asset retirement obligations, including accretion 117 55

Payments for environmental and asset retirement obligations ( 60 ) ( 55 )

Net charges for environmental and AROs, including accretion 237 119

Payments for environmental and AROs ( 114 ) ( 120 )

Net charges for defined pension and postretirement plans 31 20

Pension plan contributions ( 6 ) ( 50 )

Net gain on early extinguishment of debt ( 5 ) ( 8 )

Deferred income taxes 74 63

Change in deferred profit on sales to PT Smelting ( 112 ) 53

Change in deferred profit on PT Freeport Indonesia’s (PT-FI) sales to PT Smelting ( 112 ) 27

Other, net 48 ( 44 )

14 unchanged sentences

Other ( 88 ) ( 74 )

Proceeds from sales of assets 11 96

Loans to PT Smelting for expansion ( 61 ) ( 34 )

19 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

THREE MONTHS ENDED MARCH 31

THREE MONTHS ENDED JUNE 30

Stockholders’ Equity

9 unchanged sentences

(In Millions)

Balance at March 31, 2023 1,618 $ 162 $ 25,227 $ ( 3,244 ) $ ( 319 ) 184 $ ( 5,769 ) $ 16,057 $ 9,591 $ 25,648

Exercised and issued stock-based awards — — 3 — — — — 3 — 3

Stock-based compensation, including the tender of shares — — 14 — — — — 14 — 14

Dividends — — ( 216 ) — — — — ( 216 ) ( 154 ) ( 370 )

Net income attributable to common stockholders — — — 343 — — — 343 — 343

Net income attributable to noncontrolling interests

— — — — — — — — 388 388

Other comprehensive income — — — — 1 — — 1 — 1

Balance at June 30, 2023 1,618 $ 162 $ 25,028 $ ( 2,901 ) $ ( 318 ) 184 $ ( 5,769 ) $ 16,202 $ 9,825 $ 26,027

Stockholders’ Equity

Common Stock Accum-ulated Deficit Accumu-

Other Compre-

Loss Common Stock

Held in Treasury Total

Stock-holders’ Equity

Shares At Par

Value Capital in

Par Value Number

Interests Total

(In Millions)

Balance at March 31, 2022 1,612 $ 161 $ 25,835 $ ( 5,848 ) $ ( 387 ) 160 $ ( 4,895 ) $ 14,866 $ 9,176 $ 24,042

Exercised and issued stock-based awards — — 5 — — — — 5 — 5

Stock-based compensation, including the tender of shares — — 15 — — — — 15 ( 1 ) 14

Treasury stock purchases — — — — — 17 ( 644 ) ( 644 ) — ( 644 )

Dividends — — ( 217 ) — — — — ( 217 ) ( 239 ) ( 456 )

Contributions from noncontrolling interests — — 23 — — — — 23 24 47

Net income attributable to common stockholders — — — 840 — — — 840 — 840

Net income attributable to noncontrolling interests — — — — — — — — 198 198

Other comprehensive income — — — — 1 — — 1 — 1

Balance at June 30, 2022 1,612 $ 161 $ 25,661 $ ( 5,008 ) $ ( 386 ) 177 $ ( 5,539 ) $ 14,889 $ 9,158 $ 24,047

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (continued)

SIX MONTHS ENDED JUNE 30

Stockholders’ Equity

Common Stock Accum-ulated Deficit Accumu-

Other Compre-

Loss Common Stock

Held in Treasury Total

Stock-holders’ Equity

Shares At Par

Value Capital in

Par Value Number

Interests Total

(In Millions)

Balance at December 31, 2022 1,613 $ 161 $ 25,322 $ ( 3,907 ) $ ( 320 ) 183 $ ( 5,701 ) $ 15,555 $ 9,316 $ 24,871

3 unchanged sentences

Contributions from noncontrolling interests

— — 24 — — — — 24 26 50

Net income attributable to common stockholders — — — 1,006 — — — 1,006 — 1,006

2 unchanged sentences

Other comprehensive income — — — — 2 — — 2 1 3

Balance at March 31, 2023 1,618 $ 162 $ 25,227 $ ( 3,244 ) $ ( 319 ) 184 $ ( 5,769 ) $ 16,057 $ 9,591 $ 25,648

Balance at June 30, 2023 1,618 $ 162 $ 25,028 $ ( 2,901 ) $ ( 318 ) 184 $ ( 5,769 ) $ 16,202 $ 9,825 $ 26,027

Stockholders’ Equity

17 unchanged sentences

Net income attributable to noncontrolling interests

— — — — — — — — 575 575

Other comprehensive income — — — — 2 — — 2 — 2

Balance at March 31, 2022 1,612 $ 161 $ 25,835 $ ( 5,848 ) $ ( 387 ) 160 $ ( 4,895 ) $ 14,866 $ 9,176 $ 24,042

Balance at June 30, 2022 1,612 $ 161 $ 25,661 $ ( 5,008 ) $ ( 386 ) 177 $ ( 5,539 ) $ 14,889 $ 9,158 $ 24,047

The accompanying notes are an integral part of these consolidated financial statements.

6 unchanged sentences

All such adjustments are, in the opinion of management, of a normal recurring nature.

Operating results for the three-month period ended March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

PT Freeport Indonesia (PT-FI).

Operating results for the six-month period ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

Beginning January 1, 2023, FCX’s economic ownership interest in PT-FI is 48.76 % and prior to January 1, 2023, FCX’s economic interest in PT-FI approximated 81 %.

1 unchanged sentence

Subsequent Events.

FCX evaluated events after March 31, 2023, and through the date the consolidated financial statements were issued and determined any events and transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.

FCX evaluated events after June 30, 2023, and through the date the consolidated financial statements were issued and determined any events and transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.

EARNINGS PER SHARE

3 unchanged sentences

Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share follow (in millions, except per share amounts):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Net income $ 731 $ 1,038 $ 1,780 $ 2,942

3 unchanged sentences

Basic weighted-average shares of common stock outstanding

1,434 1,447 1,434 1,451

Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) 8 10 9 12

Diluted weighted-average shares of common stock outstanding

Basic net income per share attributable to common stockholders $ 0.46 $ 1.05

Diluted net income per share attributable to common stockholders $ 0.46 $ 1.04

1,442 1,457 1,443 1,463

Net income per share attributable to common stockholders:

Basic $ 0.24 $ 0.58 $ 0.70 $ 1.63

Diluted $ 0.23 $ 0.57 $ 0.69 $ 1.61

Shares associated with outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income per share of common stock.

There were no shares of common stock associated with outstanding stock options excluded in first-quarter 2023 and 2 million shares associated with outstanding stock options excluded in first-quarter 2022.

There were no shares of common stock associated with outstanding stock options excluded in

second-quarter 2023, second-quarter 2022 and for the first six months of 2023, and 1 million shares excluded for the first six months of 2022.

INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

7 unchanged sentences

Total current mill and leach stockpiles $ 1,498 $ 1,383

Raw materials (primarily concentrate) $ 392 $ 443

Raw materials (primarily copper concentrate) $ 382 $ 443

Work-in-process 189 221

6 unchanged sentences

$ 1,241 $ 1,252

Materials and supplies inventory was net of obsolescence reserves totaling $ 28 million at March 31, 2023, and $ 39 million at December 31, 2022.

The increase in finished goods inventory at March 31, 2023, was associated with the change in PT-FI's commercial arrangement with PT Smelting (PT-FI’s 39.5% owned copper smelter and refinery in Gresik, Indonesia) from a concentrate sales agreement to a tolling arrangement beginning on January 1, 2023.

As a result of the arrangement, a portion of PT-FI’s first-quarter 2023 production was deferred in inventory and will be sold as refined metal in future periods.

Materials and supplies inventory was net of obsolescence reserves totaling $ 33 million at June 30, 2023, and $ 39 million at December 31, 2022.

The increase in finished goods inventory at June 30, 2023, was associated with the change in PT-FI's commercial arrangement with PT Smelting (PT-FI’s 39.5 % owned copper smelter and refinery in Gresik, Indonesia) from a copper concentrate sales agreement to a tolling arrangement beginning on January 1, 2023.

At June 30, 2023, approximately 85 million pounds of copper and 40 thousand ounces of gold from PT-FI’s production was deferred in inventory and will be sold as refined metal in future periods.

Estimated metals in stockpiles not expected to be recovered within the next 12 months.

Geographic sources of FCX’s benefit (provision) for income taxes follow (in millions):

Three Months Ended

Six Months Ended

operations $ 3

1 unchanged sentence

Total $ ( 1,038 ) $ ( 1,395 )

FCX’s consolidated effective income tax rate was 32 % for first-quarter 2023 and 30 % for first-quarter 2022.

Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate.

FCX’s consolidated effective income tax rate was 37 % for the first six months of 2023 and 32 % for the first six months of 2022.

The higher 2023 effective income tax rate reflects the impact of pre-tax, nondeductible charges totaling $ 142 million for the first six months of 2023 associated with contested tax rulings by the Peruvian Supreme Court.

In addition, variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate.

Because of its U.S.

tax position, FCX does not record a financial statement impact for income or losses generated in the U.S.

In August 2022, the U.S.

Inflation Reduction Act of 2022 (Act) was signed into law, which includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15 % on the adjusted financial statement income (AFSI) of corporations with average AFSI exceeding $ 1.0 billion over a three-year period.

The provisions of the Act became applicable to FCX on January 1, 2023.

The provisions of the U.S.

Inflation Reduction Act of 2022 (the Act) became applicable to FCX on January 1, 2023.

The Act includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15 % on the adjusted financial statement income (AFSI) of corporations with average AFSI exceeding $ 1.0 billion over a three-year period.

As limited guidance related to how the CAMT provisions of the Act should be applied or otherwise administered has been released by the U.S.

Department of the Treasury (Treasury), uncertainty remains regarding the application of the CAMT.

FCX has made interpretations of certain provisions of the Act, and based on these interpretations, determined that the provisions of the Act did not impact FCX’s first-quarter 2023 financial results.

However, future guidance released by the Treasury may differ from FCX’s interpretations, which could be material and could further limit FCX’s ability to realize future benefits from its U.S.

FCX has made interpretations of certain provisions of the Act, and based on these interpretations, determined that the provisions of the Act did not impact its financial results for the first six months of

However, future guidance released by the Treasury may differ from its interpretations, which could be material and may further limit FCX’s ability to realize future benefits from its U.S.

net operating losses.

12 unchanged sentences

Under the terms of the revolving credit facility, FCX may obtain loans and issue letters of credit in an aggregate amount of up to $ 3.0 billion with PT-FI’s capacity limited to $ 500 million, and letters of credit issuance limited to $ 1.5 billion.

At March 31, 2023, FCX had $ 8 million in letters of credit issued under its revolving credit facility.

PT-FI has a $ 1.3 billion unsecured revolving credit facility that matures in July 2026.

Cerro Verde has a $ 350 million unsecured revolving credit facility that matures in May 2027.

At March 31, 2023, FCX, PT-FI and Cerro Verde had no borrowings outstanding under their respective revolving credit facilities and were in compliance with their respective covenants.

At June 30, 2023, FCX had $ 8 million in letters of credit issued under its revolving credit facility.

PT-FI has a $ 1.3 billion unsecured revolving credit facility that matures in July 2026 and Cerro Verde has a $ 350 million unsecured revolving credit facility that matures in May 2027.

At June 30, 2023, FCX, PT-FI and Cerro Verde had no borrowings outstanding under their respective revolving credit facilities and were in compliance with their respective covenants.

Senior Notes.

In March 2023, FCX repaid in full the outstanding principal balance of its 3.875 % Senior Notes totaling $ 996 million at maturity.

Beginning in 2022 and through August 3, 2023, FCX has purchased $ 1.3 billion aggregate principal amount of its senior notes in open-market transactions for a total cost of $ 1.2 billion, including $ 131 million aggregate principal amount in the second quarter and first six months of 2023, and $ 103 million aggregate principal amount from July 1, 2023, through August 3, 2023.

A summary of the senior note purchases and related gains on debt extinguishments for the second quarter and first six months of 2023, follows (in millions):

Principal Amount Discounts/Deferred Issuance Costs Book Value Redemption Value Gain

5.00% Senior Notes due 2027 $ 12 $ — $ 12 $ 12 $ —

4.125% Senior Notes due 2028 22 — 22 21 1

4.375% Senior Notes due 2028 6 — 6 5 1

5.25% Senior Notes due 2029 31 — 31 31 —

4.25% Senior Notes due 2030 45 1 44 42 2

4.625% Senior Notes due 2030 15 — 15 14 1

$ 131 $ 1 $ 130 $ 125 $ 5

Interest Expense, Net.

Consolidated interest costs (before capitalization) totaled $ 207 million in first-quarter 2023 and $ 153 million in first-quarter 2022.

The increase in consolidated interest costs (before capitalization) is primarily related to interest associated with PT-FI’s $ 3.0 billion of senior notes that were issued in April 2022 and a charge of $ 25 million related to contested tax matters in Peru.

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $ 56 million in first-quarter 2023 and $ 26 million in first-quarter 2022.

The increase in capitalized interest costs resulted from increased construction and development projects in process, primarily at the Manyar smelter and precious metals refinery in Indonesia (collectively, the Indonesia smelter projects).

Consolidated interest costs (before capitalization) totaled $ 234 million in second-quarter 2023, $ 189 million in second-quarter 2022, $ 441 million for the first six months of 2023 and $ 342 million for the first six months of 2022.

Consolidated interest costs (before capitalization) in the 2023 periods includes, interest expense associated with Cerro Verde’s contested tax rulings by the Peruvian Supreme Court totaling $ 50 million in second-quarter 2023 and $ 74 million for the first six months of 2023.

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $ 62 million in second-quarter 2023, $ 33 million in second-quarter 2022, $ 119 million for the first six months of 2023 and $ 59 million for the first six months of 2022.

The increase in capitalized interest costs in the 2023 periods, compared to the 2022 periods, primarily resulted from increased construction and development projects in process, primarily at the Manyar smelter and precious metals refinery in Indonesia (collectively, the Indonesia smelter projects).

Share Repurchase Program and Dividends.

Since mid-2021, FCX has acquired 47.8 million shares of its common stock under the share repurchase program for a total cost of $ 1.8 billion ($ 38.35 average cost per share), including 12.3 million shares in first-quarter 2022 for a cost of $ 541 million.

No shares have been purchased since July 11, 2022.

As of May 4, 2023, FCX has $ 3.2 billion available for repurchases under the program.

On March 22, 2023, FCX declared quarterly cash dividends totaling $ 0.15 per share ($ 0.075 per share base dividend and $ 0.075 per share variable dividend) on its common stock, which were paid on May 1, 2023, to common stockholders of record as of April 14, 2023.

The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of FCX’s Board of Directors (Board) and management, respectively, and are subject to a number of factors, including maintaining FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by FCX’s Board or management, as applicable.

Since mid-2021, FCX has acquired 47.8 million shares of its common stock under the share repurchase program for a total cost of $ 1.8 billion ($ 38.35 average cost per share).

No shares have been purchased since July 11, 2022, and FCX has $ 3.2 billion available for repurchases under the program.

On June 21, 2023, FCX’s Board of Directors (Board) declared cash dividends totaling $ 0.15 per share on its common stock (including a $ 0.075 per share quarterly base cash dividend and a $ 0.075 per share quarterly variable, performance-based cash dividend), which was paid on August 1, 2023, to common stockholders of record as of July 14, 2023.

The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of FCX’s Board and management, respectively, and are subject to a number of factors, including not exceeding FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by FCX’s Board or management, as applicable.

FCX’s share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

15 unchanged sentences

Hedging gains or losses from these copper futures and swap contracts are recorded in revenues.

FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the three-month periods ended March 31, 2023 and 2022.

At March 31, 2023, FCX held copper futures and swap contracts that qualified for hedge accounting for 96 million pounds at an average contract price of $ 3.94 per pound, with maturities through December 2024.

A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including on the related hedged item follows (in millions):

Three Months Ended

FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the six-month periods ended June 30, 2023 and 2022.

At June 30, 2023, FCX held copper futures and swap contracts that qualified for hedge accounting for 88 million pounds at an average contract price of $ 3.88 per pound, with maturities through May 2025.

Summary of (Losses) Gains.

A summary of the realized and unrealized (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including on the related hedged item follows (in millions):

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Copper futures and swap contracts:

Unrealized gains (losses):

Unrealized (losses) gains:

Derivative financial instruments $ ( 25 ) $ ( 89 ) $ ( 11 ) $ ( 78 )

Hedged item – firm sales commitments 25 89 11 78

Realized gains:

Realized (losses) gains:

Matured derivative financial instruments ( 5 ) ( 12 ) 3 2

1 unchanged sentence

Embedded Derivatives.

Certain FCX concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association (London) gold price at the time of shipment as specified in the contract.

Certain FCX sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association (London) gold price at the time of shipment as specified in the contract.

FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement.

1 unchanged sentence

, a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract.

The host contract is the sale of the metals contained in the concentrate or cathode at the then-current LME or COMEX copper price, and the London gold price.

FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery.

The host contract is the sale of the metals contained in the concentrate, cathode or anode slimes at the then-current LME copper, COMEX copper or London gold prices.

FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate, cathode and anode slime sales agreements since these contracts do not allow for net settlement and always result in physical delivery.

The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME or COMEX copper forward prices and the adjusted London gold price, until the date of final pricing.

1 unchanged sentence

Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

A summary of FCX’s embedded derivatives at March 31, 2023, follows:

A summary of FCX’s embedded derivatives at June 30, 2023, follows:

Open Positions Average Price

2 unchanged sentences

Embedded derivatives in provisional sales contracts:

Copper (millions of pounds) 547 $ 3.92 $ 4.08 August 2023

Gold (thousands of ounces) 199 1,876 1,991 June 2023

Copper (millions of pounds) 587 $ 3.90 $ 3.78 November 2023

Gold (thousands of ounces) 165 1,980 1,919 September 2023

Embedded derivatives in provisional purchase contracts:

Copper (millions of pounds) 78 4.01 4.06 August 2023

Copper (millions of pounds) 152 3.89 3.77 October 2023

Copper Forward Contracts.

1 unchanged sentence

These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in production and delivery costs.

At March 31, 2023, Atlantic Copper held net copper forward sales contracts for 12 million pounds at an average contract price of $ 4.01 per pound, with maturities through May 2023.

Summary of Gains (Losses).

A summary of the realized and unrealized gains (losses) recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

Three Months Ended

At June 30, 2023, Atlantic Copper held net copper forward purchase contracts for 7 million pounds at an average contract price of $ 3.81 per pound, with maturities through August 2023.

Summary of (Losses) Gains.

A summary of the realized and unrealized (losses) gains recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Embedded derivatives in provisional sales contracts:

2 unchanged sentences

Copper forward contracts b

1 22 ( 1 ) 26

Amounts recorded in revenues.

15 unchanged sentences

Embedded derivatives in provisional sales/purchase contracts 100 39

Copper forward contracts 1 —

Total derivative liabilities $ 110 $ 42

3 unchanged sentences

Assets Liabilities

2023 December 31, 2022 March 31,

2023 December 31, 2022 June 30,

2023 December 31, 2022

23 unchanged sentences

To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties.

As of March 31, 2023, the maximum amount of credit exposure associated with derivative transactions was $ 134 million.

As of June 30, 2023, the maximum amount of credit exposure associated with derivative transactions was $ 37 million.

Other Financial Instruments.

1 unchanged sentence

The carrying value for these financial instruments classified as current assets or liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and debt).

In addition, as of March 31, 2023, FCX has contingent consideration assets related to the sales of certain oil and gas properties (refer to Note 7 for the related fair values).

In addition, as of June 30, 2023, FCX had contingent consideration assets related to the sales of certain oil and gas properties (refer to Note 7 for the related fair values).

Cash, Cash Equivalents and Restricted Cash and Cash Equivalents.

8 unchanged sentences

Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows $ 6,936 $ 8,390

Includes time deposits of $ 0.3 billion at March 31, 2023, and $ 0.5 billion at December 31, 2022.

Includes cash designated for smelter development projects totaling $ 1.5 billion at March 31, 2023, and $ 1.8 billion at December 31, 2022.

Includes time deposits of $ 0.3 billion at June 30, 2023, and $ 0.5 billion at December 31, 2022.

Includes cash designated for smelter development projects totaling $ 1.1 billion at June 30, 2023, and $ 1.8 billion at December 31, 2022.

FAIR VALUE MEASUREMENT

1 unchanged sentence

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

FCX did not have any significant transfers in or out of Level 3 during first-quarter 2023.

FCX did not have any significant transfers in or out of Level 3 during second-quarter 2023.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater Gulf of Mexico (GOM) oil and gas properties (which was recorded under the loss recovery approach) and debt.

A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash, cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued income taxes and dividends payable (refer to Note 6) follows (in millions):

At March 31, 2023

At June 30, 2023

Carrying Fair Value

9 unchanged sentences

Corporate bonds 31 31 — — 31 —

Money market funds 21 21 — 21 — —

Asset-backed securities 19 19 — — 19 —

Money market funds 17 17 — 17 — —

Collateralized mortgage-backed securities 2 2 — — 2 —

Total 205 205 63 17 125 —

Embedded derivatives in provisional sales/purchase contracts in a gross asset position 119 119 — — 119 —

Copper futures and swap contracts 15 15 — 14 1 —

Total 134 134 — 14 120 —

Embedded derivatives in provisional sales/purchase contracts in a gross asset position c

37 37 — — 37 —

Contingent consideration for the sale of the Deepwater GOM oil and gas properties a

1 unchanged sentence

Embedded derivatives in provisional sales/purchase contracts in a gross liability position 100 100 — — 100 —

Copper forward contracts 1 1 — — 1 —

Copper futures and swap contracts 10 10 — 8 2 —

Total 110 110 — 8 102 —

29 unchanged sentences

Current portion included in other current assets and long-term portion included in other assets.

Excludes time deposits (which approximated fair value) included in (i) other current assets of $ 118 million at both March 31, 2023, and December 31, 2022, and (ii) other assets of $ 133 million at both March 31, 2023, and December 31, 2022, primarily associated with an assurance bond to support PT-FI’s commitment for additional domestic smelter development in Indonesia and PT-FI’s closure and reclamation guarantees.

Excludes time deposits (which approximated fair value) included in (i) other current assets of $ 119 million at June 30, 2023, and $ 118 million at December 31, 2022, associated with PT-FI’s closure and reclamation guarantees and (ii) other assets of $ 134 million at June 30, 2023, and $ 133 million at December 31, 2022, primarily associated with an assurance bond to support PT-FI’s commitment for additional domestic smelter development in Indonesia.

Refer to Note 6 for further discussion and balance sheet classifications.

15 unchanged sentences

In December 2016, FCX’s sale of its Deepwater GOM oil and gas properties included up to $ 150 million in contingent consideration that was recorded at the total amount under the loss recovery approach.

The contingent consideration is being received over time as cash flows are realized from a third-party production handling agreement for an offshore platform, with the related payments commencing in third-quarter 2018.

The contingent consideration included in (i) other current assets totaled $ 17 million at March 31, 2023, and $ 20 million at December 31, 2022, and (ii) other assets totaled $ 46 million at March 31, 2023, and $ 47 million at December 31, 2022.

The contingent consideration included in (i) other current assets totaled $ 17 million at June 30, 2023, and $ 20 million at December 31, 2022, and (ii) other assets totaled $ 42 million at June 30, 2023, and $ 47 million at December 31, 2022.

The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates.

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Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

There have been no changes in the techniques used at March 31, 2023, as compared with those techniques used at December 31, 2022.

A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first three months of 2023 follows (in millions):

There have been no changes in the techniques used at June 30, 2023, as compared with those techniques used at December 31, 2022.

A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first six months of 2023 follows (in millions):

Fair value at January 1, 2023 $ 57

Net unrealized gain related to assets still held at the end of the period 1

Fair value at March 31, 2023 $ 54

Fair value at June 30, 2023 $ 51

CONTINGENCIES AND COMMITMENTS

Environmental

There were no significant updates to previously reported environmental matters included in Note 12 of FCX’s 2022 Form 10-K, other than the matter discussed below.

Historical Smelter Sites.

On January 30, 2017, a putative class action titled Juan Duarte, Betsy Duarte and N.D., Infant, by Parents and Natural Guardians Juan Duarte and Betsy Duarte, Leroy Nobles and Betty Nobles, on behalf of themselves and all others similarly situated v.

United States Metals Refining Company, Freeport-McMoRan Copper & Gold Inc.

and Amax Realty Development, Inc.

734-17, was filed in the Superior Court of New Jersey.

In July 2023, the Court approved an agreement between the parties pursuant to which all claims were settled for an amount not material to FCX.

There were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s 2022 Form 10-K, other than the matter discussed below.

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On March 16, 2023, a non-plaintiff coastal parish included in the settlement (Terrebonne), filed an amended petition titled Terrebonne Parish Consolidated Government vs.

Department of Natural Resources et al.

Louisiana Department of Natural Resources et al.

185576, in the 32nd Judicial District Court, Terrebonne Parish, State of Louisiana, adding the settling FCX affiliates to a lawsuit that challenges whether Terrebonne Parish is validly bound to the settlement agreement and seeks to have the court declare the settlement void.

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Other Matters

Indonesia Regulatory Matters

Over the past several years, the Indonesia government has enacted various laws and regulations to promote downstream processing of various minerals, including copper concentrates.

Export License.

On June 10, 2023, export licenses for several exporters, including PT-FI, expired.

During the second quarter and through July 2023, the Indonesia government issued various regulations to address exports of unrefined metals, including regulations by the Ministry of Energy and Mineral Resources (MEMR) to allow continued exports of copper concentrates through May 2024 for companies engaged in ongoing smelter development projects with construction progress greater than 50 %, and regulations by the Ministry of Trade on the permitted export of various products, including copper concentrates.

On July 24, 2023, PT-FI was granted an export license through May 2024 for 1.7 million metric tons of copper concentrate.

PT-FI will continue to work with the Indonesia government to obtain approvals to continue exports until the Manyar smelter is fully commissioned and has reached designed operating conditions.

Export Duties.

Under PT-FI’s special mining license (IUPK), export duties are determined based on regulations that were in effect in 2018, which provided that no duties are required after smelter construction progress reached 50 %.

In March 2023, the Indonesia government verified that construction progress on the Manyar smelter exceeded 50 % and PT-FI's export duties were eliminated effective March 29, 2023.

In July 2023, the Ministry of Finance issued a revised regulation on duties for various exported products, including copper concentrates.

The revised regulation assesses export duties for copper concentrates at 7.5 % in the second half of 2023 and 10 % in 2024 for companies with smelter progress of 70 % to 90 %.

For companies with smelter progress above 90 %, export duties would be 5 % in the second half of 2023 and 7.5 % in 2024.

PT-FI is continuing to discuss the applicability of the revised regulation with the Indonesia government and will contest, and seek recovery of, any assessments.

Smelter Development Progress .

As disclosed in Note 12 of FCX’s 2022 Form 10-K, in March 2022, PT-FI paid the Indonesia government an administrative fine totaling $ 57 million related to lack of smelter development in light of the COVID-19 pandemic (first-quarter 2022 included charges of $ 41 million associated with the administrative fine).

Based on PT-FI’s revised smelter construction schedule, PT-FI does not believe any additional fines should be applied and will dispute any attempts by the Indonesia government to levy additional fines, which could be significant.

PT-FI Export License.

Indonesia regulations require PT-FI and PT Smelting to renew their export licenses annually, subject to review by the Indonesia government every six months , depending on smelter construction progress.

In March 2023, PT-FI received an extension of its export license through June 10, 2023.

PT-FI's special mining license provides that exports may continue through 2023, subject to force majeure considerations.

PT-FI is working with the Indonesia government to obtain approval to continue exports as required for PT-FI’s operations until the Indonesia smelter projects are fully commissioned and reach designed operating conditions.

PT-FI Export Duties.

In late 2022, PT-FI’s export duty rate declined from 5 % to 2.5 % as a result of smelter development progress.

In March 2023, the Indonesia government verified that construction progress on the Manyar smelter exceeded 50 %, allowing PT-FI’s export duties to be eliminated effective March 29, 2023.

In 2018, PT-FI agreed to expand its domestic smelting and refining capacity to process all of its copper concentrates in Indonesia.

PT-FI is advancing the construction of the Indonesia smelter projects and expanding capacity at PT Smelting.

PT-FI estimates construction of the Manyar smelter to be complete in mid-2024 followed by commissioning of the facilities and a ramp-up schedule through year-end 2024.

As disclosed in Note 12 of FCX’s 2022 Form 10-K, in March 2022, PT-FI paid the Indonesia government an administrative fine totaling $ 57 million (which included charges of $ 41 million recorded in first-quarter 2022) related to smelter development delays in light of the COVID-19 pandemic.

In May 2023, MEMR issued a decree prescribing a revised formula for administrative fines for delays in construction of smelter and refining facilities, taking into account allowances for certain delays associated with the COVID-19 pandemic as verified by a third-party.

In mid-July 2023, PT-FI submitted its third-party verified calculation, which resulted in an accrual for a potential administrative fine of $ 55 million based on the formula prescribed by the decree related to the period from August 2020 through January 2022.

PT-FI continues to discuss the applicability of this

administrative fine with MEMR.

Based on PT-FI’s revised smelter construction schedule, which was accepted by the Indonesia government in connection with the renewal of PT-FI's export license in early 2022, PT-FI does not believe any additional fines should be assessed under the decree.

Smelter Bond.

The May 2023 decree by MEMR also requires an assurance bond to be held in escrow until project completion.

PT-FI has an existing assurance bond to support its commitment for additional smelter development in Indonesia, which totals $ 134 million at June 30, 2023 (refer to Note 7), and may be required to make an additional refundable deposit of approximately $ 250 million in connection with the May 2023 decree.

Export Proceeds .

The Indonesia government issued a regulation that became effective August 1, 2023, that requires 30 % of PT-FI’s gross export proceeds to be temporarily deposited into Indonesia banks for a period of 90 days before withdrawal.

PT-FI is reviewing implementing guidelines associated with this regulation.

BUSINESS SEGMENTS

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Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on sales from its mines to other segments, including Atlantic Copper Smelting & Refining and, through December 31, 2022, on 39.5 % of PT-FI’s sales to PT Smelting, until final sales to third parties occur.

FCX defers recognizing profits on sales from its mining operations to Atlantic Copper (and on 39.5 % of PT-FI’s sales to PT Smelting for the 2022 periods) until final sales to third parties occur.

Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.

Beginning January 1, 2023, PT-FI's commercial arrangement with PT Smelting converted from a concentrate sales agreement to a tolling arrangement.

Under this arrangement, PT-FI pays PT Smelting a tolling fee to smelt and refine its concentrate and PT-FI retains title to all products for sale to third parties ( i.e., there are no further sales from PT-FI to PT Smelting).

While the new tolling agreement with PT Smelting does not significantly change PT-FI’s economics, it impacted the timing of PT-FI’s first-quarter 2023 sales and working capital requirements, as a portion of PT-FI’s first-quarter 2023 production was deferred in inventory and will be sold as refined metal in future periods.

Beginning January 1, 2023, PT-FI's commercial arrangement with PT Smelting converted from a copper concentrate sales agreement to a tolling arrangement.

Under this arrangement, PT-FI pays PT Smelting a tolling fee to smelt and refine its copper concentrate and PT-FI retains title to all products for sale to third parties ( i.e., there are no further sales from PT-FI to PT Smelting).

While the new tolling agreement with PT Smelting does not significantly change PT-FI’s economics, it impacts the timing of PT-FI’s sales and working capital requirements.

FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments.

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Product Revenues.

FCX’s revenues attributable to the products it sold for the first quarters of 2023 and 2022 follow (in millions):

Three Months Ended

FCX’s revenues attributable to the products it sold for the second quarter and first six months of 2023 and 2022 follow (in millions):

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Concentrate $ 2,185 $ 2,694 $ 3,772 $ 5,385

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Purchased copper a

72 104 276 174

Gold 999 909 1,530 1,720

Molybdenum 491 377 1,083 755

170 165 303 353

Adjustments to revenues:

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Embedded derivatives g

( 190 ) ( 753 ) 83 ( 513 )

Total consolidated revenues $ 5,737 $ 5,416 $ 11,126 $ 12,019

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Primarily includes revenues associated with silver.

First-quarter 2023 treatment charges exclude tolling costs paid to PT Smelting, which are recorded as production costs in the consolidated statements of income.

Treatment charges for the second quarter and first six months of 2023 exclude tolling costs paid to PT Smelting, which are recorded as production costs in the consolidated statements of income.

Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.

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Morenci Other Total Verde Other Total Mining Mines Refining & Refining nations Total

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Unaffiliated customers $ 26 $ 14 $ 40 $ 783 $ 190 $ 973 $ 2,039 $ — $ 1,463 $ 744 $ 478 a

$ — $ 1,523 $ 749 $ 597 b

Intersegment 570 980 1,550 175 — 175 198 150 10 4 ( 2,087 ) —

Production and delivery 381 781 1,162 620 187 807 335 96 1,527 734 ( 1,496 ) 3,165

Depreciation, depletion and amortization

Production and delivery 422 744 1,166 609 174 783 858 b

105 1,465 725 ( 1,554 ) 3,548

DD&A 42 57 99 117 15 132 275 14 1 7 19 547

Metals inventory adjustments

1 — 1 — — — — — — — — 1

Selling, general and administrative expenses

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Operating income (loss) 130 191 321 230 1 231 1,074 31 7 9 ( 263 ) 1,410

Interest expense, net — — — 29 — 29 9 — — 6 107 151

Provision for (benefit from) income taxes — — — 187 7 194 330 — — — ( 25 ) 499

Net income attributable to noncontrolling interests — — — 140 18 158 271 c

Interest expense, net — — — 55 c

— 55 13 — — 8 95 171

Total assets at March 31, 2023 3,142 5,668 8,810 8,612 1,871 10,483 21,046 1,707 221 1,152 7,490 50,909

Capital expenditures 56 140 196 61 39 100 449 9 5 12 350 d

Three Months Ended March 31, 2022

Unaffiliated customers $ 90 $ 55 $ 145 $ 1,106 $ 160 $ 1,266 $ 2,326 a

$ — $ 1,743 $ 718 $ 405 b

Provision for income taxes — — — 113 — 113 410 — — — 16 539

Net income attributable to noncontrolling interests — — — 18 2 20 368 d

Total assets at June 30, 2023 3,167 5,754 8,921 8,444 1,890 10,334 20,460 1,717 280 1,127 8,068 50,907

Capital expenditures 67 115 182 57 26 83 384 13 2 11 488 e

Three Months Ended June 30, 2022

Unaffiliated customers $ 17 $ 30 $ 47 $ 702 $ 180 $ 882 $ 1,920 f

$ — $ 1,753 $ 433 $ 381 a

Intersegment 730 1,078 1,808

134 — 134 58 144 8 — ( 2,152 ) —

Production and delivery 363 655 1,018 558 112 670 626 75 1,754 722 ( 1,715 ) 3,150

Depreciation, depletion and amortization

Production and delivery 397 720 1,117 565 177 742 564 80 1,765 463 g

( 1,728 ) 3,003

DD&A 44 58 102 91 11 102 262 18 1 6 16 507

Metals inventory adjustments

— 7 7 9 2 11 — — — — — 18

Selling, general and administrative expenses

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( 13 ) — ( 13 ) — — — — — — — 42 29

Net gain on sales of assets — — — — — — — — — — ( 2 ) ( 2 )

Operating income (loss) 318 322 640 169 ( 10 ) 159 1,122 46 ( 5 ) ( 41 ) ( 185 ) 1,736

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Provision for (benefit from) income taxes — — — 68 ( 7 ) 61 434 — — — 76 571

Net income attributable to noncontrolling interests — — — 168 6 174 190 c

Total assets at March 31, 2022 2,773 5,284 8,057 8,678 1,925 10,603 19,338 1,702 299 1,045 7,788 48,832

Capital expenditures 73 57 130 33 23 56 379 1 2 11 144 d

Includes PT-FI sales to PT Smelting totaling $ 27 million in first-quarter 2023 (reflecting adjustments to prior period provisionally priced concentrate sales) and $ 917 million in first-quarter 2022.

Beginning January 1, 2023, there are no sales from PT-FI to PT Smelting (refer to above discussion of the tolling arrangement between PT-FI and PT Smelting).

Net income (loss) attributable to noncontrolling interests — — — 50 8 58 141 d

— — — ( 1 ) 198

Total assets at June 30, 2022 2,839 5,338 8,177 8,379 1,843 10,222 20,679 1,702 300 1,078 7,955 50,113

Capital expenditures 63 83 146 35 33 68 388 8 2 32 219 e

(In Millions)

Atlantic Corporate,

North America Copper Mines South America Mining Copper Other

Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX

Morenci Other Total Verde Other Total Mining Mines Refining & Refining nations Total

Six Months Ended June 30, 2023

Unaffiliated customers $ 58 $ 111 $ 169 $ 1,741 $ 424 $ 2,165 $ 3,238 f

$ — $ 2,986 $ 1,493 $ 1,075 a

Intersegment 1,163 1,928 3,091 419 — 419 367 373 16 11 ( 4,277 ) —

Production and delivery 803 1,525 2,328 1,229 361 1,590 1,193 b

201 2,992 1,459 ( 3,051 ) 6,712

DD&A 85 117 202 208 31 239 423 34 2 14 32 946

Metals inventory adjustments 1 — 1 — — — — — — — 1 2

Selling, general and administrative expenses 1 1 2 4 — 4 58 — — 15 162 241

Mining exploration and research expenses — 1 1 — — — — — — — 72 73

Environmental obligations and shutdown costs — 22 22 — — — — — — — 119 141

Operating income (loss) 331 373 704 719 32 751 1,931 138 8 16 ( 537 ) 3,011

Interest expense, net — — — 84 c

— 84 22 — — 14 202 322

Provision for (benefit from) income taxes — — — 300 7 307 740 — — — ( 9 ) 1,038

Net income (loss) attributable to noncontrolling interests — — — 158 20 178 639 d

— — — ( 43 ) 774

Capital expenditures 123 255 378 118 65 183 833 22 7 23 838 e

Six Months Ended June 30, 2022

Unaffiliated customers $ 107 $ 85 $ 192 $ 1,808 $ 340 $ 2,148 $ 4,246 f

$ — $ 3,496 $ 1,151 $ 786 a

Intersegment 1,441 2,173 3,614

242 — 242 136 272 17 — ( 4,281 ) —

Production and delivery 760 1,375 2,135 1,123 289 1,412 1,190 b

155 3,519 1,185 g

( 3,443 ) 6,153

DD&A 88 119 207 178 21 199 510 34 2 12 32 996

Metals inventory adjustments — 7 7 9 2 11 — — — — — 18

Selling, general and administrative expenses 1 1 2 4 — 4 57 — — 13 139 215

Mining exploration and research expenses — 1 1 — — — — — — — 48 49

Environmental obligations and shutdown costs ( 13 ) — ( 13 ) — — — — — — — 58 45

Net gain on sales of assets — — — — — — — — — — ( 2 ) ( 2 )

Operating income (loss) 712 755 1,467 736 28 764 2,625 83 ( 8 ) ( 59 ) ( 327 ) 4,545

Interest expense, net — — — 7 — 7 15 — — 4 257 283

Provision for income taxes — — — 295 7 302 1,020 — — — 73 1,395

Net income attributable to noncontrolling interests — — — 218 14 232 331 d

Capital expenditures 136 140 276 68 56 124 759 9 4 43 371 e

Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

Includes a $ 55 million charge for administrative fines in the second quarter and first six months of 2023 and $ 41 million for the first six months of 2022.

Refer to Note 8 for further discussion.

Includes interest expense associated with contested tax rulings by the Peruvian Supreme Court totaling $ 50 million in the second quarter and $ 74 million for the first six months of 2023.

Beginning January 1, 2023, FCX’s economic and equity ownership interest in PT-FI is 48.76 %.

Prior to January 1, 2023, FCX's economic interest in PT-FI approximated 81 %.

As discussed in Note 3 of FCX’s 2022 Form 10-K, in accordance with provisions pertaining to PT-FI’s shareholders agreement, FCX's first-quarter 2023 net income included a $ 35 million net benefit associated with PT-FI sales volumes that were attributed to FCX at its previous approximate 81 % economic ownership interest.

In addition, as discussed in Note 3 of FCX’s 2022 Form 10-K, in accordance with provisions pertaining to PT-FI’s shareholders agreement, FCX’s first-quarter 2023 net income included a $ 35 million net benefit associated with PT-FI sales volumes that were attributed to FCX at its previous approximate 81 % economic ownership interest.

Primarily includes capital expenditures for the Indonesia smelter projects.

Includes PT-FI sales to PT Smelting totaling $ 827 million in second-quarter 2022, $ 27 million for the first six months 2023 (reflecting adjustments to prior period provisionally priced copper concentrate sales) and $ 1.7 billion for the first six months 2022.

Beginning January 1, 2023, there are no sales from PT-FI to PT Smelting (refer to above discussion of the tolling arrangement between PT-FI and PT Smelting).

Includes maintenance charges and idle facility costs associated with major maintenance turnarounds totaling $ 40 million at Atlantic Copper in the second quarter and first six months of 2022.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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We have reviewed the accompanying consolidated balance sheet of Freeport-McMoRan Inc.

(the Company) as of March 31, 2023, the related consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2023 and 2022, and the related notes (collectively referred to as the “consolidated interim financial statements”).

(the Company) as of June 30, 2023, the related consolidated statements of income, comprehensive income, and equity for the three- and six-month periods ended June 30, 2023 and 2022, the related consolidated statements of cash flows for the six-month periods ended June 30, 2023 and 2022, and the related notes (collectively referred to as the “consolidated interim financial statements”).

Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S.

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Phoenix, Arizona

August 3, 2023

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements