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Item 1. Financial Statements

2024-11-08 compared with 2024-08-07 · 162 added, 133 removed, 623 unchanged (32% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS (Unaudited)

September 30,

2024 December 31,

4 unchanged sentences

Trade accounts receivable 979 1,209

Income and other tax receivables 428 455

Value added and other tax receivables 570 455

Product 2,709 2,472

33 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,

2024 2023 2024 2023

8 unchanged sentences

Environmental obligations and shutdown costs

20 98 115 239

Total costs and expenses 4,852 4,332 14,114 12,447

19 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,

2024 2023 2024 2023

4 unchanged sentences

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

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

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

Other comprehensive income 1 — 1 3

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended

Nine Months Ended

September 30,

(In Millions)

3 unchanged sentences

Depreciation, depletion and amortization 1,704 1,479

Stock-based compensation 77 72

Net charges for environmental and asset retirement obligations, including accretion 382 383

Payments for environmental and asset retirement obligations ( 157 ) ( 181 )

Stock-based compensation 94 89

Net charges for defined pension and postretirement plans 29 44

21 unchanged sentences

Other ( 263 ) ( 148 )

Acquisition of additional ownership interest in Cerro Verde ( 210 ) —

Loans to PT Smelting for expansion ( 28 ) ( 109 )

7 unchanged sentences

Noncontrolling interests ( 1,269 ) ( 407 )

Treasury stock purchases ( 59 ) —

Contributions from noncontrolling interests — 50

9 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, 2024 1,622 $ 162 $ 24,488 $ ( 1,586 ) $ ( 274 ) 186 $ ( 5,817 ) $ 16,973 $ 11,132 $ 28,105

Balance at June 30, 2024 1,624 $ 162 $ 24,321 $ ( 970 ) $ ( 274 ) 186 $ ( 5,835 ) $ 17,404 $ 11,282 $ 28,686

Exercised and issued stock-based awards — — 1 — — — — 1 — 1

Stock-based compensation, including the tender of shares — — 13 — — — — 13 1 14

Treasury stock purchases — — — — — 1 ( 59 ) ( 59 ) — ( 59 )

Acquisition of additional ownership interest in Cerro Verde — — ( 125 ) — — — — ( 125 ) ( 90 ) ( 215 )

Dividends — — ( 216 ) — — — — ( 216 ) ( 584 ) ( 800 )

Change in consolidated subsidiary ownership interests — — 3 — — — — 3 ( 1 ) 2

Net income attributable to common stockholders — — — 526 — — — 526 — 526

1 unchanged sentence

— — — — — — — — 710 710

Balance at June 30, 2024 1,624 $ 162 $ 24,321 $ ( 970 ) $ ( 274 ) 186 $ ( 5,835 ) $ 17,404 $ 11,282 $ 28,686

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

Balance at September 30, 2024 1,624 $ 162 $ 23,997 $ ( 444 ) $ ( 273 ) 187 $ ( 5,894 ) $ 17,548 $ 11,318 $ 28,866

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

3 unchanged sentences

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

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (continued)

SIX MONTHS ENDED JUNE 30

NINE MONTHS ENDED SEPTEMBER 30

Stockholders’ Equity

12 unchanged sentences

Stock-based compensation, including the tender of shares — — 77 — — 1 ( 62 ) 15 ( 2 ) 13

Treasury stock purchases — — — — — 1 ( 59 ) ( 59 ) — ( 59 )

Acquisition of additional ownership interest in Cerro Verde — — ( 125 ) — — — — ( 125 ) ( 90 ) ( 215 )

Dividends — — ( 649 ) — — — — ( 649 ) ( 1,269 ) ( 1,918 )

Change in consolidated subsidiary ownership interests — — 3 — — — — 3 ( 1 ) 2

Net income attributable to common stockholders — — — 1,615 — — — 1,615 — 1,615

1 unchanged sentence

— — — — — — — — 2,063 2,063

Balance at June 30, 2024 1,624 $ 162 $ 24,321 $ ( 970 ) $ ( 274 ) 186 $ ( 5,835 ) $ 17,404 $ 11,282 $ 28,686

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

Balance at September 30, 2024 1,624 $ 162 $ 23,997 $ ( 444 ) $ ( 273 ) 187 $ ( 5,894 ) $ 17,548 $ 11,318 $ 28,866

Stockholders’ Equity

18 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

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, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Operating results for the nine-month period ended September 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Dollar amounts in tables are stated in millions, except per share amounts.

In September 2024, FCX purchased 5.3 million shares of Cerro Verde common stock for a total cost of $ 210 million, increasing FCX’s ownership interest in Cerro Verde to 55.08 % from 53.56 %.

As a result of the transaction, the carrying value of Cerro Verde’s noncontrolling interest was reduced by $ 90 million, with $ 125 million recorded to capital in excess to par value, including a $ 5 million deferred tax impact.

In December 2023, PT Smelting completed an expansion of its facilities.

2 unchanged sentences

Since mutual consent of both PT Smelting shareholders is required to make the decisions that most significantly impact the economic performance of PT Smelting, PT-FI is not the primary beneficiary.

Accordingly, PT-FI will continue to account for its investment in PT Smelting under the equity method.

Accordingly, PT-FI is continuing to account for its investment in PT Smelting under the equity method.

Attribution of PT Freeport Indonesia’s Net Income or Loss.

As discussed in Note 3 of FCX’s 2023 Form 10-K, beginning January 1, 2023, the attribution of PT-FI’s net income or loss is based on equity ownership percentages ( 48.76 % for FCX, 26.24 % for PT Mineral Industri Indonesia (MIND ID) and 25.00 % for PT Indonesia Papua Metal Dan Mineral) with certain exceptions, as contemplated by the economics replacement agreement in the PT-FI shareholders agreement.

As further discussed in Note 3, in first-quarter 2024, PT-FI recorded net credits of $ 215 million associated with the closure of its 2021 corporate income tax audit and resolution of the framework for disputed tax matters.

PT-FI’s net income and cash dividends associated with the settlement of this historical tax matter that originated before December 31, 2022, were attributed approximately 81 % to FCX.

1 unchanged sentence

Subsequent Events.

FCX evaluated events after June 30, 2024, 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, 2024, 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:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

13 unchanged sentences

There were no shares of common stock associated with outstanding stock options excluded in any of the periods shown above.

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

Six Months Ended

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

Nine Months Ended

September 30,

International ( 2,033 ) ( 1,549 )

Total $ ( 2,003 ) $ ( 1,546 )

FCX’s consolidated effective income tax rate is a function of the various rates in the jurisdictions where it operates and was 34 % for the first six months of 2024, including a net benefit of $ 182 million related to closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters (see below for further discussion), and was 37 % for the first six months of 2023.

The 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 issued by the Peruvian Supreme Court.

At current copper prices, FCX expects its U.S.

FCX’s consolidated effective income tax rate is a function of the various rates in the jurisdictions where it operates and was 35 % for the first nine months of 2024, and 36 % for the first nine months of 2023.

The 2024 effective income tax rate reflects net benefits of (i) $ 182 million related to closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters (see below for further discussion) and (ii) $ 36 million associated with the closure of FCX’s 2017 and 2018 U.S.

federal income tax exams.

The 2023 effective income tax rate 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.

FCX expects its U.S.

jurisdiction to generate net losses for the year 2024 that will not result in a realized tax benefit;

1 unchanged sentence

PT-FI Historical Tax Matters.

During the first six months of 2024, in conjunction with closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for disputed tax matters, PT-FI recorded net credits of $ 215 million, including $ 199 million to provision for income taxes, $ 8 million to production and delivery and $ 8 million to interest expense, net.

In conjunction with closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters in first-quarter 2024, PT-FI recorded net credits of $ 215 million, including $ 199 million to provision for income taxes, $ 8 million to production and delivery and $ 8 million to interest expense, net.

In addition, FCX recognized a charge of $ 17 million to provision for income taxes related to withholding taxes and a credit of $ 26 million in other income, net associated with the reduction in the related accrual to indemnify MIND ID from potential losses arising from historical tax disputes.

Resolution of the framework for disputed tax matters also resulted in a decrease of unrecognized tax benefits of $ 276 million and a decrease of $ 43 million in related interest and penalties, as well as a decrease in contingencies related to Indonesia tax matters of $ 179 million, including a $ 35 million decrease associated with penalties and interest.

Resolution of the framework for Indonesia disputed tax matters also resulted in a decrease of unrecognized tax benefits of $ 276 million and a decrease of $ 43 million in related interest and penalties, as well as a decrease in contingencies related to Indonesia tax matters of $ 179 million, including a $ 35 million decrease associated with penalties and interest.

Refer to Notes 11 and 12 of FCX’s 2023 Form 10-K for further discussion.

Uncertain Tax Positions.

As further discussed in Note 7, in May 2024, an arbitration tribunal rejected FCX and Cerro Verde’s claims relating to the assessment of mining royalties on ore processed by the Cerro Verde concentrator for the period from December 2006 to December 2013.

As further discussed in Note 7, in May 2024, an arbitration tribunal rejected FCX’s and Cerro Verde’s claims relating to the assessment of mining royalties on ore processed by the Cerro Verde concentrator for the period from December 2006 to December 2013.

Cerro Verde had previously paid the full amount of these disputed tax assessments, including the related interest and penalties, and a full reserve had been applied against these amounts;

4 unchanged sentences

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.

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 six months of 2024 or for the year 2023.

Although the Internal Revenue Service (IRS) and U.S.

Department of the Treasury (Treasury) published guidance in 2023 that provided some additional clarity on these rules, regulations are yet to be published and uncertainty remains regarding the application of the CAMT to FCX.

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

net operating losses.

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 annual AFSI exceeding $ 1.0 billion over a three-year period.

In September 2024, the Internal Revenue Service (IRS) issued proposed regulations that provide guidance on the application of CAMT, which is not final and subject to change.

Based on the proposed guidance released by the IRS, FCX has determined that the provisions of the Act would not impact its financial results for the first nine months of 2024 or for the year 2023.

Pillar Two of the Global Anti-Base Erosion Rules.

1 unchanged sentence

Recommendations from the OECD regarding a global minimum income tax and other changes are being considered and/or implemented in jurisdictions where FCX operates.

At current metals market prices, FCX believes enactment of the recommended framework in jurisdictions where it operates will result in minimal impacts to its financial results in the near term.

At current metals market prices, FCX does not expect enactment of the recommended framework in jurisdictions where it operates to materially impact its financial results.

DEBT AND EQUITY

The components of debt follow:

September 30,

2024 December 31, 2023

PT-FI revolving credit facility $ 250 $ —

Senior notes and debentures:

8 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 letters of credit issuance limited to $ 1.5 billion and PT-FI’s capacity limited to $ 500 million.

At June 30, 2024, FCX had $ 7 million in letters of credit issued under its revolving credit facility.

PT-FI has a $ 1.75 billion, unsecured revolving credit facility that matures in November 2028 and Cerro Verde has a $ 350 million, unsecured revolving credit facility that matures in May 2027.

At June 30, 2024, FCX, PT-FI and Cerro Verde had no borrowings outstanding under their respective revolving credit facilities and were in compliance with their respective covenants.

On July 31, 2024, PT-FI borrowed $ 250 million under its revolving credit facility to fund capital expenditures for PT-FI’s new smelter and precious metals refinery (PMR) (collectively, the new downstream processing facilities).

At September 30, 2024, there were no borrowings and $ 7 million in letters of credit issued under FCX’s revolving credit facility.

At September 30, 2024, PT-FI had $ 250 million in borrowings outstanding under its $ 1.75 billion unsecured revolving credit facility that matures in November 2028, and Cerro Verde had no borrowings outstanding under its $ 350 million unsecured revolving credit facility that matures in May 2027.

At September 30, 2024, FCX, PT-FI and Cerro Verde were in compliance with their respective credit facility’s covenants.

Interest Expense, Net.

Consolidated interest costs (before capitalization) totaled $ 181 million in second-quarter 2024, $ 234 million in second-quarter 2023, $ 356 million for the first six months of 2024 and $ 441 million for the first six months of 2023.

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

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $ 93 million in second-quarter 2024, $ 62 million in second-quarter 2023, $ 179 million for the first six months of 2024 and $ 119 million for the first six months of 2023.

The increase in capitalized interest costs in the 2024 periods compared to the 2023 periods, primarily resulted from increased construction and development costs for projects in process, primarily at PT-FI’s new downstream processing facilities.

Consolidated interest costs (before capitalization) totaled $ 173 million in third-quarter 2024, $ 165 million in third-quarter 2023, $ 529 million for the first nine months of 2024 and $ 606 million for the first nine months of 2023.

Consolidated interest costs (before capitalization) include a credit of $ 11 million in the 2024 periods associated with the closure of FCX’s 2017 and 2018 U.S.

federal income tax exams and a credit of $ 13 million in the 2023 periods for the settlement of interest on Cerro Verde’s historical profit sharing liability.

Additionally, the first nine months of 2023 included $ 74 million of interest charges associated with contested tax rulings issued by the Peruvian Supreme Court.

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $ 101 million in third-quarter 2024, $ 69 million in third-quarter 2023, $ 280 million for the first nine months of 2024 and $ 188 million for the first nine months of 2023.

The increase in capitalized interest costs in the 2024 periods compared to the 2023 periods, primarily resulted from increased construction and development costs for projects in progress, primarily at PT-FI’s new smelter and precious metals refinery (PMR) (collectively PT-FI’s new downstream processing facilities).

Share Repurchase Program and Dividends.

In July 2024, FCX acquired 1.2 million shares of its common stock for a total cost of $ 59 million ($ 50.48 average cost per share) bringing total purchases under its $ 5.0 billion share repurchase program to 49.0 million shares of common stock for a cost of $ 1.9 billion ($ 38.64 average cost per share).

The timing and amount of share repurchases is at the discretion of management and will depend on a variety of factors.

The timing and amount of share repurchases are at the discretion of management and will depend on a variety of factors.

The share repurchase program may be modified, increased, suspended or terminated at any time at FCX’s Board of Directors’ (Board) discretion.

On June 26, 2024, FCX’s 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 were paid on August 1, 2024, to common stockholders of record as of July 15, 2024.

On September 25, 2024, FCX’s 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 were paid on November 1, 2024, to common stockholders of record as of October 15, 2024.

The declaration and payment of dividends (base or variable) are at the discretion of FCX’s Board, and will depend on FCX’s financial results, cash requirements, global economic conditions and other factors deemed relevant by FCX’s Board.

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 six-month periods ended June 30, 2024 and 2023.

At June 30, 2024, FCX held copper futures and swap contracts that qualified for hedge accounting for 95 million pounds at an average contract price of $ 4.26 per pound, with maturities through March 2026.

FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the nine-month periods ended September 30, 2024 and 2023.

At September 30, 2024, FCX held copper futures and swap contracts that qualified for hedge accounting for 101 million pounds at an average contract price of $ 4.30 per pound, with maturities through September 2026.

Summary of Gains (Losses).

A summary of 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:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

3 unchanged sentences

Hedged item – firm sales commitments ( 12 ) ( 2 ) ( 22 ) 9

Realized gains (losses):

Realized (losses) gains:

Matured derivative financial instruments — ( 4 ) 29 ( 1 )

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, 2024, follows:

A summary of FCX’s embedded derivatives at September 30, 2024, follows:

Open Positions Average Price

2 unchanged sentences

Embedded derivatives in provisional sales contracts:

Copper (millions of pounds) 371 $ 4.26 $ 4.33 November 2024

Gold (thousands of ounces) 93 2,333 2,344 September 2024

Copper (millions of pounds) 327 $ 4.23 $ 4.43 February 2025

Gold (thousands of ounces) 218 2,492 2,654 December 2024

Embedded derivatives in provisional purchase contracts:

Copper (millions of pounds) 115 4.39 4.33 September 2024

Copper (millions of pounds) 26 4.29 4.42 December 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, 2024, Atlantic Copper held net copper forward sales contracts for 44 million pounds at an average contract price of $ 4.38 per pound, with maturities through August 2024.

At September 30, 2024, Atlantic Copper held net copper forward sales contracts for 112 million pounds at an average contract price of $ 4.22 per pound, with maturities through December 2024.

Summary of Gains (Losses).

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

8 unchanged sentences

A summary of the fair values of unsettled commodity derivative financial instruments follows:

September 30,

2024 December 31, 2023

4 unchanged sentences

Embedded derivatives in provisional sales/purchase contracts 108 76

Copper forward contracts 5 —

Total derivative assets $ 135 $ 80

Commodity Derivative Liabilities:

Derivatives designated as hedging instruments :

Copper futures and swap contracts $ 4 $ —

Derivatives not designated as hedging instruments :

6 unchanged sentences

Assets Liabilities

2024 December 31, 2023 June 30,

September 30,

2024 December 31, 2023 September 30,

2024 December 31, 2023

18 unchanged sentences

Accounts payable and accrued liabilities 5 — 27 22

Other liabilities — — 2 —

$ 132 $ 80 $ 31 $ 24

1 unchanged sentence

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, 2024, the maximum amount of credit exposure associated with derivative transactions was $ 100 million.

As of September 30, 2024, the maximum amount of credit exposure associated with derivative transactions was $ 135 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 6 for the fair values of investment securities, legally restricted funds and debt).

In addition, as of June 30, 2024, FCX had contingent consideration assets related to the sales of certain oil and gas properties (refer to Note 6 for the related fair values).

Cash and Cash Equivalents and Restricted Cash and Cash Equivalents.

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

September 30,

2024 December 31, 2023

5 unchanged sentences

Total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows $ 6,216 $ 6,063

Includes (i) time deposits of $ 0.1 billion at June 30, 2024, and $ 0.3 billion at December 31, 2023, and (ii) cash designated for PT-FI’s new downstream processing facilities totaling $ 0.2 billion at December 31, 2023.

Includes (i) $ 0.9 billion at June 30, 2024, and $ 1.1 billion at December 31, 2023, associated with 30 % of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the

Indonesia government and (ii) $ 0.1 billion at each of June 30, 2024, and December 31, 2023, in assurance bonds to support PT-FI’s commitment for its new downstream processing facilities.

Includes (i) time deposits of $ 0.1 billion at September 30, 2024, and $ 0.3 billion at December 31, 2023, and (ii) cash designated for PT-FI’s new downstream processing facilities totaling $ 0.2 billion at December 31, 2023.

Includes (i) $ 1.0 billion at September 30, 2024, and $ 1.1 billion at December 31, 2023, associated with 30 % of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the Indonesia government and (ii) $ 0.1 billion at each of September 30, 2024, and December 31, 2023, in assurance bonds to support PT-FI’s commitment for its new downstream processing facilities.

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 2024.

FCX did not have any significant transfers in or out of Level 3 during third-quarter 2024.

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 and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued income taxes and dividends payable (refer to Note 5), follows:

At June 30, 2024

At September 30, 2024

Carrying Fair Value

15 unchanged sentences

Copper futures and swap contracts 27 27 — 16 11 —

Copper forward contracts 5 5 — 2 3 —

Total 135 135 — 16 119 —

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

47 39 — — — 39

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

Embedded derivatives in provisional sales/purchase contracts in a gross liability position 11 11 — — 11 —

Copper futures and swap contracts 4 4 — 2 2 —

Copper forward contracts 23 23 — 14 9 —

Total 34 34 — 14 20 —

Long-term debt, including current portion d

Long-term debt, including current portion e

9,679 9,877 — — 9,877 —

18 unchanged sentences

Total 80 80 — 3 77 —

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

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

50 42 — — — 42

2 unchanged sentences

Total 24 24 — 1 23 —

Long-term debt, including current portion d

Long-term debt, including current portion e

9,422 9,364 — — 9,364 —

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

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 ($ 0.9 billion at June 30, 2024, and $ 1.1 billion at December 31, 2023), (ii) assurance bonds to support PT-FI’s commitment for new downstream processing facilities ($ 0.1 billion at each of June 30, 2024, and December 31, 2023) and (iii) PT-FI’s mine closure and reclamation guarantees ($ 0.1 billion at each of June 30, 2024, and December 31, 2023).

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 ($ 1.0 billion at September 30, 2024, and $ 1.1 billion at December 31, 2023), (ii) assurance bonds to support PT-FI’s commitment for new downstream processing facilities ($ 0.1 billion at each of September 30, 2024, and December 31, 2023) and (iii) PT-FI’s mine closure and reclamation guarantees ($ 0.1 billion at each of September 30, 2024, and December 31, 2023).

Refer to Note 5 for further discussion and balance sheet classifications.

FCX has an overriding royalty interest payable associated with the contingent consideration for the sale of Deepwater GOM oil and gas properties which totaled $ 1 million at September 30, 2024, and $ 12 million at December 31, 2023.

Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.

16 unchanged sentences

Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

In third-quarter 2024, FCX determined that only $ 4 million of the remaining balance was collectible and recorded a net impairment of $ 32 million (consisting of a $ 42 million impairment to the contingent consideration receivable and an offsetting reduction of $ 10 million to the related overriding royalty interest payable).

Long-term debt, including current portion, is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

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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 June 30, 2024, as compared with those techniques used at December 31, 2023.

There have been no changes in the techniques used at September 30, 2024, as compared with those techniques used at December 31, 2023.

CONTINGENCIES AND COMMITMENTS

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Refer to Note 12 of FCX’s 2023 Form 10-K for further discussion of FCX’s environmental obligations.

FCX recorded net charges for adjustments to environmental obligations totaling $ 79 million for the first six months of 2024, primarily associated with changes in cost estimates for former processing facilities and historical smelter sites.

FCX recorded net charges for adjustments to environmental obligations totaling $ 82 million for the first nine months of 2024, primarily associated with changes in cost estimates for former processing facilities and historical smelter sites.

Asset Retirement Obligations

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Mining Operations.

FCX recorded net ARO additions at mining operations totaling $ 261 million for the first six months of 2024, primarily associated with revised closure plans and cost estimates to reflect FCX’s commitment to the Global Industry Standard on Tailings Management (Tailings Standard).

FCX recorded net ARO additions at mining operations totaling $ 275 million for the first nine months of 2024, primarily associated with revised closure plans and cost estimates to reflect FCX’s commitment to the Global Industry Standard on Tailings Management (Tailings Standard).

FCX may record additional ARO adjustments as it continues to update estimates to conform with the Tailings Standard.

Oil and Gas Properties.

Freeport-McMoRan Oil & Gas (FM O&G) recorded net ARO additions totaling $ 105 million for the first six months of 2024 primarily for assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, including $ 98 million that was charged to production and delivery costs.

Freeport-McMoRan Oil & Gas (FM O&G) recorded net ARO additions totaling $ 115 million for the first nine months of 2024, of which $ 99 million was associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies that was charged to production and delivery costs.

FM O&G, as a predecessor-in-interest in oil and natural gas leases, is in the chain of title with unrelated third parties either directly or by virtue of divestiture of certain oil and natural gas assets previously owned and assigned by its subsidiaries.

Certain counterparties in these divestiture transactions or third parties in existing leases have filed for bankruptcy protection or undergone associated reorganizations and have not performed the required abandonment obligations.

Certain counterparties in these divestiture transactions or third parties in existing leases have filed for

bankruptcy protection or undergone associated reorganizations and have not performed the required abandonment obligations.

Accordingly, regulations or federal laws require that other working interest owners, including FM O&G, assume such obligations.

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Export Licenses.

On May 31, 2024, export licenses expired for several exporters, including PT-FI.

In second-quarter 2024, the Indonesia government issued various regulations to allow, under certain conditions, continued exports of copper concentrates and anode slimes through December 2024.

On July 2, 2024, PT-FI was granted copper concentrate and anode slimes export licenses, which are valid through December 2024 when the full ramp-up of PT-FI’s new smelter is expected.

PT-FI will continue to pay export duties on copper concentrates during the smelter ramp-up period pursuant to the Indonesia regulations.

The applicable rate prescribed by regulations is 7.5 % of the export value.

Special Mining License (IUPK).

As further discussed in FCX’s 2023 Form 10-K, PT-FI’s IUPK enables it to conduct operations in the Grasberg minerals district through 2041.

On May 30, 2024, the Indonesia government issued a regulation applicable to the country’s mineral and coal industries which outlines requirements for the granting of IUPK extensions.

The regulation provides that IUPK holders may be granted a life-of-mine extension provided certain conditions are met, including ownership of integrated downstream processing facilities that have entered the operational stage;

On July 2, 2024, PT-FI was granted copper concentrate and anode slimes export licenses, which are valid through December 2024.

Pursuant to the Indonesia regulations, PT-FI is continuing to pay a 7.5 % export duty on copper concentrates.

See below for further discussion of the recent fire event at PT-FI's new smelter facility.

Special Mining Business License (IUPK).

Pursuant to regulations issued during 2024, PT-FI is eligible to apply for an extension of its mining rights beyond 2041, provided certain conditions are met, including ownership of integrated downstream facilities that have entered the operational stage;

domestic ownership of at least 51 % and agreement with a state-owned enterprise for an additional 10 % ownership;

and commitments for additional exploration and increases in refining capacity, each as approved by the Ministry of Energy and Minerals.

Application for extension may be submitted at any time up to one year prior to the current IUPK expiration.

PT-FI expects to apply for an extension under this new regulation during 2024.

Application for extension may be submitted at any time up to one year prior to the expiration of its current IUPK.

PT-FI is currently preparing its application submittal.

In connection with PT-FI’s application for extension, FCX is working to reach terms with MIND ID on a purchase and sale agreement for the transfer in 2041 of an additional 10 % interest in PT-FI.

PT-FI’s New Downstream Processing Facilities Fire Incident

On October 14, 2024, a fire occurred during commissioning of PT-FI’s new smelter in Gresik, Indonesia, following an equipment malfunction in the smelter furnace.

The fire resulted in damage to a gas cleaning facility (electrostatic precipitator plant) and infrastructure for the production of sulfuric acid.

There were no injuries.

Smelter start-up operations have been temporarily suspended pending remediation activities.

Mining operations in Central Papua and the completion and ramp-up of the PMR project have not been impacted.

PT-FI has substantially completed initial damage assessments and currently estimates repair costs to approximate $ 100 million, which are expected to be offset through recovery under construction insurance programs.

Remediation plans are in progress, including the procurement of long-lead items.

Based on current delivery timelines, which continue to be evaluated, PT-FI currently expects to recommence start-up operations by mid-2025.

Efforts are under way to expedite equipment orders to potentially improve the schedule.

PT-FI is working with the Indonesia government to allow continued exports of copper concentrates until full ramp-up is achieved, including seeking an increase to the permitted quota for 2024.

Cerro Verde Royalty Dispute.

As disclosed in Note 12 of FCX’s 2023 Form 10-K, in 2020, FCX filed on its own behalf and on behalf of Cerro Verde, international arbitration proceedings against the Peruvian government under the United States-Peru Trade Promotion Agreement relating to the assessment of mining royalties on ore processed by the Cerro Verde concentrator for the period from December 2006 to December 2013.

by the Cerro Verde concentrator for the period from December 2006 to December 2013.

In May 2024, the arbitration tribunal rejected FCX and Cerro Verde's claims on the merits.

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For comparative purposes, the 2023 tables have been adjusted to conform with the current year presentation, primarily for the combination of the Grasberg minerals district and PT-FI’s new downstream processing facilities.

PT-FI substantially completed construction of the new smelter in June 2024 and has commenced commissioning operations.

PT FI’s new downstream processing facilities will exclusively receive concentrate from the Grasberg minerals district, which reflects PT-FI’s integrated and dependent operations within Indonesia ( i.e.

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Product Revenues.

FCX’s revenues attributable to the products it sold for the second quarter and first six months of 2024 and 2023 follow:

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 2024 and 2023 follow:

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

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

Export duties of 2.5 % were eliminated effective March 29, 2023, upon verification that construction progress of the new smelter exceeded 50 % and reinstated at a rate of 7.5 % in July 2023 under a revised regulation.

As discussed in Note 7, PT-FI will continue to pay export duties of 7.5 % on copper concentrates during the smelter ramp-up period pursuant to Indonesia regulations.

Includes credits associated with adjustments to prior-period export duties.

Export duties of 2.5 % were eliminated effective March 29, 2023, upon verification that construction progress of the new smelter exceeded 50 % and were reinstated at a rate of 7.5 % in July 2023 under a revised regulation.

As discussed in Note 7, PT-FI is continuing to pay export duties of 7.5 % on copper concentrates.

Includes credits totaling $ 18 million associated with adjustments to prior-period export duties.

Refer to Note 5 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.

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

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Unaffiliated customers $ 40 $ 12 $ 52 $ 886 $ 237 $ 1,123 $ 2,856 $ — $ 1,560 $ 759 $ 440 a

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140 1,562 754 ( 1,417 ) 4,077

DD&A 45 61 106 97 17 114 248 16 1 7 17 509

Depreciation, depletion and amortization (DD&A) 47 62 109 92 18 110 340 19 2 6 14 600

Selling, general and administrative expenses

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Operating income (loss) 50 120 170 352 33 385 1,690 ( 27 ) 7 ( 1 ) ( 286 ) 1,938

Interest expense, net — 1 1 5 — 5 6 — — 8 68 88

Other income, net — 1 1 5 — 5 30 — — 2 31 69

Provision for income taxes — — — 191 23 214 490 — — 1 49 754

Interest expense, net — — — 6 — 6 10 — — 10 46 c

Other (expense) income, net ( 1 ) 10 9 22 ( 2 ) 20 42 — ( 1 ) ( 7 ) 34 97

Provision for (benefit from) income taxes — — — 148 10 158 625 — — 1 ( 47 ) 737

Equity in affiliated companies’ net earnings — — — — — — 6 — — — 4 10

Net income attributable to noncontrolling interests — — — 142 22 164 463 c

Total assets at June 30, 2024 3,182 6,508 9,690 8,368 1,988 10,356 26,501 1,915 273 1,410 4,490 54,635

Net income (loss) attributable to noncontrolling interests — — — 114 d

— — — ( 17 ) 710

Total assets at September 30, 2024 3,172 6,647 9,819 8,276 2,013 10,289 27,474 1,955 294 1,491 4,078 55,400

Capital expenditures 48 215 263 82 18 100 713 25 7 28 63 1,199

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Unaffiliated customers $ 17 $ 22 $ 39 $ 822 $ 203 $ 1,025 $ 2,030

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219 — 219 65 147 12 8 ( 2,069 ) —

Production and delivery 423 744 1,167 609 174 783 861 d

105 1,465 725

Production and delivery 480 799 1,279 649 178 827 672 120 1,566 680

( 1,591 ) 3,553

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Operating income (loss) 112 145 257 293 8 301 1,120 13 10 7 ( 216 ) 1,492

Interest expense, net — — — 55 e

Interest expense, net — 1 1 ( 10 ) f

— ( 10 ) 9 — — 8 88 96

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

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

Equity in affiliated companies’ net earnings — — — — — — — — — — 2 2

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

Total assets at June 30, 2023 3,167 5,754 8,921 8,444 1,890 10,334 23,446 1,717 280 1,127 5,082 50,907

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 d

Total assets at September 30, 2023 3,171 5,799 8,970 8,227 1,893 10,120 24,438 1,747 288 1,176 4,909 51,648

Capital expenditures 53 114 167 61 15 76 854 21 2 20 38 1,178

Financial Information by Business Segment (continued)

(In Millions)

Atlantic Corporate,

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

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Unaffiliated customers $ 90 $ 62 $ 152 $ 2,787 $ 699 $ 3,486 $ 7,689 $ — $ 4,742 $ 2,330 $ 1,336 a

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Operating income (loss) 227 360 587 1,056 108 1,164 4,600 ( 29 ) 29 34 ( 764 ) 5,621

Interest expense, net — 1 1 10 — 10 7 — — 18 141 177

Interest expense, net — 1 1 16 — 16 17 — — 28 187 c

Other (expense) income, net ( 1 ) 9 8 38 11 49 110 — ( 1 ) 1 128 295

Provision for (benefit from) income taxes — — — 282 35 317 899 f

Provision for (benefit from) income taxes — — — 430 45 475 1,524 g

— — ( 11 ) 15 2,003

Equity in affiliated companies’ net earnings — — — — — — 7 — — — 7 14

Net income attributable to noncontrolling interests — — — 218 36 254 1,063 c

Net income attributable to noncontrolling interests — — — 332 d

48 380 1,664 e

— — — 19 2,063

Capital expenditures 139 604 743 209 63 272 2,203 88 23 88 152 3,569

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Unaffiliated customers $ 75 $ 133 $ 208 $ 2,563 $ 627 $ 3,190 $ 5,268 $ — $ 4,552 $ 2,185 $ 1,547 a

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638 — 638 432 520 28 19 ( 6,346 ) —

Production and delivery 804 1,525 2,329 1,229 361 1,590 1,199 d

Production and delivery 1,284 2,324 3,608 1,878 539 2,417 1,871 h

321 4,558 2,139 ( 4,647 ) 10,267

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Operating income (loss) 437 488 925 1,008 38 1,046 3,045 151 18 23 ( 705 ) 4,503

Interest expense, net — — — 84 e

Interest expense, net — 1 1 74 f

— 74 28 — — 22 293 418

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

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

Net income (loss) attributable to noncontrolling interests — — — 242 d

34 276 1,031 e

— — — ( 23 ) 1,284

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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 copper mines and South America operations.

Includes non-recurring costs totaling $ 65 million associated with labor-related charges at Cerro Verde.

Includes nonrecurring labor-related charges totaling $ 34 million in third-quarter 2024 and $ 99 million for the first nine months of 2024 associated with Cerro Verde’s new collective labor agreements with its two unions.

The third quarter and first nine months of 2024 include an $ 11 million credit associated with the closure of FCX’s 2017 and 2018 U.S.

federal income tax exams.

Beginning in September 2024, FCX's interest in Cerro Verde is 55.08 %, and prior to September 2024 was 53.56 %.

Refer to Note 1 for further discussion of the attribution of PT-FI’s net income or loss.

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.

Includes a net benefit to income taxes totaling $ 182 million associated with the closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters.

Includes a $ 55 million charge for a potential administrative fine.

Refer to Note 12 of FCX’s 2023 Form 10-K for further discussion.

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

Includes a net benefit to income taxes totaling $ 182 million associated with the closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for disputed tax matters.

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, 2024, the related consolidated statements of income, comprehensive income, and equity for the three- and six-month periods ended June 30, 2024 and 2023, the related consolidated statements of cash flows for the six-month periods ended June 30, 2024 and 2023, and the related notes (collectively referred to as the “consolidated interim financial statements”).

(the Company) as of September 30, 2024, the related consolidated statements of income, comprehensive income, and equity for the three- and nine-month periods ended September 30, 2024 and 2023, the related consolidated statements of cash flows for the nine-month periods ended September 30, 2024 and 2023, 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 7, 2024

November 8, 2024

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