What changed in this filing

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Item 1. Financial Statements

2023-11-03 compared with 2023-08-03 · 189 added, 152 removed, 637 unchanged (35% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS (Unaudited)

September 30,

2023 December 31,

2 unchanged sentences

Cash and cash equivalents $ 5,745 $ 8,146

Restricted cash and cash equivalents 697 111

Trade accounts receivable 792 1,336

Income and other tax receivables 488 459

Product 2,415 1,833

Materials and supplies, net 2,131 1,964

Mill and leach stockpiles 1,403 1,383

Product 2,214 1,833

Other current assets 406 381

30 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

31 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

5 unchanged sentences

Amortization of unrecognized amounts included in net periodic benefit costs 1 1 3 5

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

Foreign exchange losses ( 1 ) — — ( 1 )

Other comprehensive income — 1 3 3

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended

Nine Months Ended

September 30,

(In Millions)

2 unchanged sentences

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

DD&A 1,479 1,504

Metals inventory adjustments 7 43

7 unchanged sentences

Deferred income taxes 130 83

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

Deferred profit recognized on PT Freeport Indonesia’s (PT-FI) sales to PT Smelting ( 112 ) ( 34 )

Other, net 109 ( 52 )

36 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

THREE MONTHS ENDED JUNE 30

THREE MONTHS ENDED SEPTEMBER 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

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

Exercised and issued stock-based awards — — 7 — — — — 7 — 7

4 unchanged sentences

— — — — — — — — 510 510

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

Other comprehensive income (loss) — — — — 1 — — 1 ( 1 ) —

Balance at September 30, 2023 1,618 $ 162 $ 24,833 $ ( 2,447 ) $ ( 317 ) 184 $ ( 5,772 ) $ 16,459 $ 10,218 $ 26,677

Stockholders’ Equity

9 unchanged sentences

(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

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

Stock-based compensation, including the tender of shares — — 12 — — — — 12 — 12

5 unchanged sentences

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

Balance at September 30, 2022 1,612 $ 161 $ 25,483 $ ( 4,604 ) $ ( 385 ) 183 $ ( 5,701 ) $ 14,954 $ 9,227 $ 24,181

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (continued)

SIX MONTHS ENDED JUNE 30

NINE MONTHS ENDED SEPTEMBER 30

Stockholders’ Equity

19 unchanged sentences

Other comprehensive income — — — — 3 — — 3 — 3

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

Balance at September 30, 2023 1,618 $ 162 $ 24,833 $ ( 2,447 ) $ ( 317 ) 184 $ ( 5,772 ) $ 16,459 $ 10,218 $ 26,677

Stockholders’ Equity

19 unchanged sentences

Other comprehensive income — — — — 3 — — 3 — 3

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

Balance at September 30, 2022 1,612 $ 161 $ 25,483 $ ( 4,604 ) $ ( 385 ) 183 $ ( 5,701 ) $ 14,954 $ 9,227 $ 24,181

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 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 %.

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

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.

Subsequent Events.

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.

FCX evaluated events after September 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

12 unchanged sentences

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

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.

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

third quarter and first nine months of 2023, and 3 million shares and 1 million shares excluded for the third quarter and first nine months of 2022, respectively.

INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

The components of inventories follow (in millions):

September 30,

2023 December 31, 2022

Current inventories:

Total materials and supplies, net a

Raw materials (primarily copper concentrate) $ 467 $ 443

Work-in-process 219 221

Finished goods a

Total product $ 2,415 $ 1,833

Total materials and supplies, net b

$ 2,131 $ 1,964

2 unchanged sentences

Total current mill and leach stockpiles $ 1,403 $ 1,383

Raw materials (primarily copper concentrate) $ 382 $ 443

Work-in-process 189 221

Finished goods b

Total product $ 2,214 $ 1,833

Long-term inventories:

3 unchanged sentences

$ 1,327 $ 1,252

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.

The increase in finished goods inventory at September 30, 2023, was primarily 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, and also included approximately 75 thousand ounces of gold available for sale pending approval of PT-FI’s export license for anode slimes.

See Note 8 for further discussion.

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

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):

Six Months Ended

Nine Months Ended

September 30,

operations $ 3

International operations ( 1,041 ) ( 1,390 )

International operations ( 1,549 ) ( 1,705 ) a

Total $ ( 1,546 ) $ ( 1,710 )

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.

Includes a credit of $ 31 million, primarily associated with completion of Cerro Verde’s 2016 tax audit.

FCX’s consolidated effective income tax rate was 36 % for the first nine months of 2023 and 33 % for the first nine months of 2022.

A higher 2023 effective income tax rate primarily reflects the impact of pre-tax, nondeductible charges totaling $ 142 million for the first nine months of 2023 associated with contested tax rulings issued 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.

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

The provisions of the U.S.

1 unchanged sentence

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 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.

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 financial results for the first nine months of 2023.

There has been limited guidance released by the U.S.

Department of the Treasury (the Treasury) on how the CAMT provisions of the Act should be applied or otherwise administered, and uncertainty remains regarding their application.

In October 2023, the Treasury stated publicly that it expects to issue proposed rules regarding the application of the CAMT by the end of 2023.

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

net operating losses.

1 unchanged sentence

The components of debt follow (in millions):

September 30,

2023 December 31, 2022

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

At September 30, 2023, FCX had $ 7 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.

At September 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):

Beginning in 2022 and through November 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 $ 102 million aggregate principal amount in third-quarter 2023 and $ 233 million in the first nine months of 2023.

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

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

7 unchanged sentences

Interest Expense, Net.

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.

Consolidated interest costs (before capitalization) totaled $ 165 million in third-quarter 2023, $ 182 million in third-quarter 2022, $ 606 million for the first nine months of 2023 and $ 524 million for the first nine months of 2022.

Consolidated interest costs (before capitalization) for the first nine months of 2023, includes

interest charges totaling $ 74 million associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court.

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $ 69 million in third-quarter 2023, $ 42 million in third-quarter 2022, $ 188 million for the first nine months of 2023 and $ 101 million for the first nine 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).

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.

Beginning in mid-2021 and through July 11, 2022, FCX 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).

FCX has $ 3.2 billion available for repurchases under the program.

On September 20, 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 November 1, 2023, to common stockholders of record as of October 13, 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.

7 unchanged sentences

Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions.

A discussion of FCX’s other derivative contracts and programs follows.

A discussion of FCX’s derivative contracts and programs follows.

Derivatives Designated as Hedging Instruments - Fair Value Hedges.

6 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 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,

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

At September 30, 2023, FCX held copper futures and swap contracts that qualified for hedge accounting for 85 million pounds at an average contract price of $ 3.85 per pound, with maturities through May 2025.

Summary of Gains (Losses).

A summary of the realized and unrealized 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 Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

Copper futures and swap contracts:

Unrealized (losses) gains:

Unrealized gains (losses):

Derivative financial instruments $ 2 $ 17 $ ( 9 ) $ ( 61 )

Hedged item – firm sales commitments ( 2 ) ( 17 ) 9 61

Realized (losses) gains:

Realized losses:

Matured derivative financial instruments ( 4 ) ( 50 ) ( 1 ) ( 48 )

10 unchanged sentences

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 June 30, 2023, follows:

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

Open Positions Average Price

2 unchanged sentences

Embedded derivatives in provisional sales contracts:

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

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

Copper (millions of pounds) 553 $ 3.78 $ 3.75 February 2024

Gold (thousands of ounces) 209 1,925 1,884 December 2023

Embedded derivatives in provisional purchase contracts:

Copper (millions of pounds) 152 3.89 3.77 October 2023

Copper (millions of pounds) 165 3.80 3.75 January 2024

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 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.

At September 30, 2023, Atlantic Copper held net copper forward purchase contracts for 19 million pounds at an average contract price of $ 3.77 per pound, with maturities through November 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,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

8 unchanged sentences

A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):

September 30,

2023 December 31, 2022

11 unchanged sentences

Embedded derivatives in provisional sales/purchase contracts 35 39

Copper forward contracts 1 —

Total derivative liabilities $ 44 $ 42

3 unchanged sentences

Assets Liabilities

2023 December 31, 2022 June 30,

September 30,

2023 December 31, 2022 September 30,

2023 December 31, 2022

Gross amounts recognized:

Commodity contracts:

Embedded derivatives in provisional

1 unchanged sentence

Copper derivatives — 4 9 3

37 170 110 42

Less gross amounts of offset:

Commodity contracts:

Embedded derivatives in provisional

1 unchanged sentence

Net amounts presented in balance sheet:

Commodity contracts:

Embedded derivatives in provisional

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

As of September 30, 2023, the maximum amount of credit exposure associated with derivative transactions was $ 16 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 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).

In addition, as of September 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.

The following table provides a reconciliation of total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows (in millions):

September 30,

2023 December 31, 2022

Balance sheet components:

Cash and cash equivalents a,b

Cash and cash equivalents a

$ 5,745 $ 8,146

Restricted cash and cash equivalents included in:

Other current assets 119 111

Other assets 134 133

Restricted cash and cash equivalents, current 697 b

Restricted cash and cash equivalents, long-term - included in other assets 97 133

Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows $ 6,539 $ 8,390

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.

Includes time deposits of $ 0.3 billion at September 30, 2023, and $ 0.5 billion at December 31, 2022, and cash designated for smelter development projects totaling $ 0.6 billion at September 30, 2023, and $ 1.8 billion at December 31, 2022.

Includes $ 0.5 billion associated with PT-FI’s export proceeds.

See Note 8 for further discussion.

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 second-quarter 2023.

FCX did not have any significant transfers in or out of Level 3 during third-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 June 30, 2023

At September 30, 2023

Carrying Fair Value

9 unchanged sentences

Corporate bonds 30 30 — — 30 —

Asset-backed securities 19 19 — — 19 —

Money market funds 19 19 — 19 — —

Asset-backed securities 15 15 — — 15 —

Collateralized mortgage-backed securities 1 1 — — 1 —

6 unchanged sentences

Copper futures and swap contracts 8 8 — 6 2 —

Copper forward contracts 1 1 — 1 — —

Total 44 44 — 7 37 —

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 $ 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.

Excludes amounts included in restricted cash and cash equivalents and other assets (which approximated fair value), primarily amounts associated with (i) PT-FI’s export proceeds ($ 0.5 billion at September 30, 2023), (ii) an assurance bond to support PT-FI’s commitment for additional smelter development in Indonesia ($ 135 million at September 30, 2023, and $ 133 million at December 31, 2022) and (iii) PT-FI’s mine closure and reclamation guarantees ($ 111 million at September 30, 2023, and $ 103 million at December 31, 2022).

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

16 unchanged sentences

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 2018.

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 contingent consideration included in (i) other current assets totaled $ 17 million at September 30, 2023, and $ 20 million at December 31, 2022, and (ii) other assets totaled $ 38 million at September 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.

3 unchanged sentences

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 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):

There have been no changes in the techniques used at September 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 nine 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 June 30, 2023 $ 51

Fair value at September 30, 2023 $ 47

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.

FCX recorded adjustments to environmental obligations totaling $ 83 million in third-quarter 2023 and $ 199 million for the first nine months of 2023, primarily related to Pinal Creek in Arizona for a refined engineering evaluation and Newtown Creek in New York based on a focused feasibility study for an early action in the East Branch tributary.

Refer to Note 12 of FCX’s 2022 Form 10-K for further discussion of FCX’s environmental obligations.

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

United States Metals Refining Company, Freeport-McMoRan

Copper & Gold Inc.

and Amax Realty Development, Inc.

1 unchanged sentence

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.

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

Louisiana Parishes Coastal Erosion Cases.

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FCX is evaluating and exploring options to resolve this dispute and will vigorously defend this matter.

Asbestos and Talc Claims.

As previously discussed in Note 12 of FCX’s 2022 Form 10-K, in 2021 Imerys Talc America (Imerys), an affiliate of Imerys S.A., filed the form of a settlement and release agreement to be entered into by Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, FCX, Imerys and the other debtors, tort claimants’ committee and future claims representative in the Imerys bankruptcy.

The bankruptcy court continues to temporarily stay approximately 950 talc-related lawsuits against CAMC, Cyprus Mines, FCX and Imerys but there can be no assurance that the bankruptcy court will continue to impose the interim stay.

In accordance with the global settlement agreement, among other things, (1) CAMC agreed to contribute a total of $ 130 million in cash to a settlement trust in seven annual installments, which will be guaranteed by FCX, and (2) CAMC and Cyprus Mines and their affiliates will contribute to the settlement trust all rights that they have to the proceeds of certain legacy insurance policies as well as indemnity rights they have against Johnson & Johnson.

Mediation to resolve open issues in the Imerys and Cyprus Mines bankruptcy cases is ongoing, including the adequacy of the settlement and agreed contribution from CAMC, with a deadline for the parties to complete mediation by December 31, 2023, set by the bankruptcy court.

There can be no assurance that the global settlement will be successfully implemented.

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.

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

Export License.

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

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

Through June 10, 2023, PT-FI exported anode slimes under PT Smelting’s export license.

A change in regulations during second-quarter 2023 requires PT-FI to follow a new administrative process for the export of anode slimes.

The administrative process is advancing, and PT-FI expects to receive approval to resume exports of anode slimes during fourth-quarter 2023.

PT-FI will continue to work with the Indonesia government to obtain approvals to continue exports of copper concentrates and anode slimes beyond May 2024 and until the Indonesia smelter projects are fully commissioned and reach 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 %.

Under PT-FI’s special mining license (IUPK), which was granted by the Indonesia government in 2018, export duties are determined based on regulations that were in effect in 2018 and 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.

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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.

During third-quarter 2023, PT-FI incurred $ 147 million in export duties under the revised regulation.

PT-FI does not believe any export duties should be assessed under the revised regulation and continues to discuss the applicability of the revised regulation with the Indonesia government because of inconsistencies with its IUPK.

Additionally, PT-FI is required by the Indonesia government to provide bank guarantees for unpaid export duties, which have been presented as current restricted cash and cash equivalents at September 30, 2023.

Smelter Development Progress .

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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.

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.

Smelter Assurance.

PT-FI has an assurance bond to support its commitment for additional smelter development in Indonesia, totaling $ 135 million at September 30, 2023, for which the terms have been fulfilled (refer to Note 7).

In August 2023, PT-FI submitted a request to MEMR for release of the assurance bond and is awaiting a response.

The decree issued by MEMR in May 2023 also requires assurance in the form of an escrow account that will be released if smelter development progress reaches 90 % of the construction plan by June 10, 2024.

During third-quarter 2023, PT-FI deposited $ 10 million in a joint account with the Indonesia government while it continues to discuss the applicability of the May 2023 decree with the Indonesia government.

If the May 2023 decree is determined to be applicable, PT-FI may be required to make an additional refundable deposit of approximately $ 370 million.

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.

In accordance with a regulation issued by the Indonesia government that became effective August 1, 2023, 30 % of PT-FI’s gross export proceeds are being temporarily deposited into Indonesia banks for a period of 90 days before withdrawal.

At September 30, 2023, FCX had $ 0.5 billion in current restricted cash and cash equivalents deposited in Indonesia banks in accordance with this regulation.

BUSINESS SEGMENTS

FCX has organized its mining operations into four primary divisions - North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments.

Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci and Cerro Verde copper mines, the Grasberg minerals district (Indonesia Mining), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

Separately disclosed in the following tables are FCX’s reportable segments, which include the

Morenci and Cerro Verde copper mines, the Grasberg minerals district (Indonesia Mining), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale.

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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 copper concentrate sales agreement to a tolling arrangement.

Beginning January 1, 2023, PT-FI's commercial arrangement with PT Smelting changed 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).

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Product Revenues.

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,

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

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

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PT-FI export duties e

4 ( 84 ) ( 14 ) ( 182 ) f

( 133 ) ( 81 ) ( 147 ) ( 263 )

Revenues from contracts with customers 5,864 5,309 16,907 17,841

Embedded derivatives g

Embedded derivatives f

( 40 ) ( 306 ) 43 ( 819 )

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Primarily includes revenues associated with silver.

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.

Treatment charges for the third quarter and first nine 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.

Refer to Note 8 for further discussion of PT-FI export duties.

Includes a charge of $ 18 million associated with an adjustment to prior-period export duties.

Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.

Financial Information by Business Segment

(In Millions)

Atlantic Corporate,

(in Millions) Atlantic Corporate,

North America Copper Mines South America Mining Copper Other

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

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Unaffiliated customers $ 17 $ 22 $ 39 $ 822 $ 203 $ 1,025 $ 2,030 $ — $ 1,566 $ 692 $ 472 a

Intersegment 624 994 1,618 219 — 219 65 147 12 8 ( 2,069 ) —

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

Production and delivery 476 799 1,275 648 178 826 667

120 1,566 680 ( 1,586 ) 3,548

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Operating income (loss) 114 148 262 295 8 303 1,125 13 10 7 ( 228 ) 1,492

Interest expense, net — — — 55 c

Interest expense, net — 1 1 ( 10 ) b

— ( 10 ) 10 — — 8 87 96

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

Net gain on early extinguishment of debt — — — — — — — — — — 5 5

Other (expense) income, net ( 2 ) ( 9 ) ( 11 ) ( 9 ) 13 4 30 — — 5 43 71

Provision for (benefit from) income taxes — — — 119 12 131 419 — — — ( 42 ) 508

Equity in affiliated companies' net (losses) earnings — — — — — — ( 2 ) — — — 2 —

Net income attributable to noncontrolling interests — — — 84 14 98 392 c

Total assets at September 30, 2023 3,171 5,799 8,970 8,227 1,893 10,120 21,020 1,747 288 1,176 8,327 51,648

Capital expenditures 53 114 167 61 15 76 441 21 2 20 451 d

Three Months Ended September 30, 2022

Unaffiliated customers $ 18 $ 74 $ 92 $ 666 $ 215 $ 881 $ 1,726 e

$ — $ 1,436 $ 604 $ 264 a

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83 — 83 72 127 7 5 ( 1,650 ) —

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

Production and delivery 408 736 1,144 579 221 800 663 94 1,450 604

( 1,389 ) 3,366

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— 1 1 — — — — — — — 5 6

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

Operating income (loss) 115 84 199 82 ( 40 ) 42 844 15 ( 8 ) ( 9 ) ( 121 ) 962

Interest expense, net — 1 1 5 — 5 15 — — 4 115 140

Net gain on early extinguishment of debt — — — — — — — — — — 20 20

Other (expense) income, net — ( 8 ) ( 8 ) ( 21 ) 5 ( 16 ) 19 ( 1 ) — 11 20 25

Provision for (benefit from) income taxes — — — 3 ( 18 ) ( 15 ) 343 — — — ( 13 ) 315

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

Equity in affiliated companies' net earnings — — — — — — 7 — — — 1 8

Net income attributable to noncontrolling interests — — — 29 11 40 105 c

Total assets at September 30, 2022 2,996 5,456 8,452 8,390 1,826 10,216 20,496 1,701 216 1,082 7,764 49,927

Capital expenditures 71 83 154 41 38 79 389 7 2 17 188 d

Financial Information by Business Segment (continued)

(In Millions)

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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

Nine Months Ended September 30, 2023

Unaffiliated customers $ 75 $ 133 $ 208 $ 2,563 $ 627 $ 3,190 $ 5,268 e

$ — $ 4,552 $ 2,185 $ 1,547 a

Intersegment 1,787 2,922 4,709 638 — 638 432 520 28 19 ( 6,346 ) —

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

Production and delivery 1,279 2,324 3,603 1,877 539 2,416 1,860 f

321 4,558 2,139 ( 4,637 ) 10,260

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Operating income (loss) 445 521 966 1,014 40 1,054 3,056 151 18 23 ( 765 ) 4,503

Interest expense, net — — — 84 c

Interest expense, net — 1 1 74 b

— 74 32 — — 22 289 418

Net gain on early extinguishment of debt — — — — — — — — — — 10 10

Other (expense) income, net ( 4 ) ( 8 ) ( 12 ) ( 36 ) 11 ( 25 ) 92 ( 1 ) ( 1 ) — 130 183

Provision for (benefit from) income taxes — — — 419 19 438 1,159 — — — ( 51 ) 1,546

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

Equity in affiliated companies' net earnings — — — — — — 9 — — — 3 12

Net income (loss) attributable to noncontrolling interests — — — 242 34 276 1,031 c

— — — ( 23 ) 1,284

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

Capital expenditures 176 369 545 179 80 259 1,274 43 9 43 1,289 d

Nine Months Ended September 30, 2022

Unaffiliated customers $ 125 $ 159 $ 284 $ 2,474 $ 555 $ 3,029 $ 5,972 e

$ — $ 4,932 $ 1,755 $ 1,050 a

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325 — 325 208 399 24 5 ( 5,931 ) —

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

Production and delivery 1,168 2,111 3,279 1,702 510 2,212 1,853 f

249 4,969 1,789 g

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Interest expense, net — 1 1 12 — 12 30 — — 8 372 423

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

Net (loss) gain on early extinguishment of debt — — — — — — ( 10 ) — — — 38 28

Other (expense) income, net ( 1 ) ( 32 ) ( 33 ) ( 11 ) 12 1 27 ( 1 ) ( 1 ) 29 45 67

Provision for (benefit from) income taxes — — — 298 ( 11 ) 287 1,363 — — — 60 1,710

Equity in affiliated companies' net earnings — — — — — — 27 — — — 6 33

Net income attributable to noncontrolling interests — — — 247 25 272 436 c

Capital expenditures 207 223 430 109 94 203 1,148 16 6 60 559 d

Financial Information by Business Segment (continued)

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 %.

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.

The third quarter and first nine months of 2023 include a $ 13 million credit for the settlement of interest on Cerro Verde's historical profit sharing liability.

The first nine months of 2023 also includes $ 74 million of interest charges associated with contested tax rulings issued by the Peruvian Supreme Court.

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

Refer to Note 1 for further discussion of first-quarter 2023 gold sales volumes that were attributed approximately 81 % to FCX in accordance with the PT-FI shareholders agreement.

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.

Includes PT-FI sales to PT Smelting totaling $ 572 million in third-quarter 2022, $ 27 million for the first nine months of 2023 (reflecting adjustments to prior period provisionally priced concentrate sales) and $ 2.3 billion for the first nine months of 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.

Includes charges for administrative fines of $ 55 million for the first nine months of 2023 and $ 41 million for the first nine months of 2022.

Refer to Note 8 for further discussion.

Includes maintenance charges and idle facility costs associated with major maintenance turnarounds totaling $ 41 million at Atlantic Copper for the first nine 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 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”).

(the Company) as of September 30, 2023, the related consolidated statements of income, comprehensive income, and equity for the three- and nine-month periods ended September 30, 2023 and 2022, the related consolidated statements of cash flows for the nine-month periods ended September 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

November 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