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Item 1. Financial Statements

2025-05-08 compared with 2024-11-08 · 152 added, 346 removed, 439 unchanged (53% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS (Unaudited)

September 30,

2025 December 31,

30 unchanged sentences

Capital in excess of par value 23,627 23,797

Accumulated deficit ( 444 ) ( 2,059 )

Retained earnings (accumulated deficit)

Accumulated other comprehensive loss ( 313 ) ( 314 )

7 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

Three Months Ended

(In Millions, Except Per Share Amounts)

7 unchanged sentences

Environmental obligations and shutdown costs

20 98 115 239

Total costs and expenses 4,425 4,687

1 unchanged sentence

Interest expense, net ( 70 ) ( 89 )

Net gain on early extinguishment of debt — 5 — 10

Other income, net 58 129

9 unchanged sentences

Weighted-average shares of common stock outstanding:

1,438 1,435 1,438 1,434

1,444 1,443 1,445 1,443

Dividends declared per share of common stock $ 0.15 $ 0.15

2 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

Three Months Ended

(In Millions)

3 unchanged sentences

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

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

Foreign exchange losses — ( 1 )

Other comprehensive income 1 —

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended

September 30,

Three Months Ended

(In Millions)

8 unchanged sentences

Pension plan contributions ( 3 ) ( 18 )

Net gain on early extinguishment of debt — ( 10 )

Deferred income taxes 26 46

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

Charges for social investment programs at PT Freeport Indonesia 15 28

10 unchanged sentences

Capital expenditures:

North America copper mines ( 743 ) ( 545 )

United States copper mines ( 255 ) ( 237 )

South America operations ( 85 ) ( 82 )

Indonesia mining ( 1,198 ) ( 1,209 )

Indonesia downstream processing facilities ( 1,005 ) ( 1,258 )

Indonesia operations ( 704 ) ( 842 )

Molybdenum mines ( 19 ) ( 27 )

Other ( 109 ) ( 66 )

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

Loans to PT Smelting for expansion — ( 28 )

Proceeds from sales of assets and other, net 10 ( 13 )

Other, net ( 4 ) 5

Net cash used in investing activities ( 1,176 ) ( 1,277 )

2 unchanged sentences

Repayments of debt ( 636 ) ( 612 )

Finance lease payments ( 3 ) —

Cash dividends and distributions paid:

2 unchanged sentences

Treasury stock purchases ( 55 ) —

Contributions from noncontrolling interests — 50

Proceeds from exercised stock options 1 4

Payments for withholding of employee taxes related to stock-based awards ( 22 ) ( 27 )

Other, net ( 38 ) ( 2 )

Net cash used in financing activities ( 1,774 ) ( 2,226 )

Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents 153 ( 1,851 )

Net cash provided by (used in) financing activities 155 ( 342 )

Net increase in cash and cash equivalents and restricted cash and cash equivalents 37 277

Cash and cash equivalents and restricted cash and cash equivalents at beginning of year 4,911 6,063

3 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

THREE MONTHS ENDED SEPTEMBER 30

Stockholders’ Equity

Common Stock Accum-ulated Deficit Accumu-

Other Compre-

Loss Common Stock

Held in Treasury Total

Stock-holders’ Equity

Shares At Par

Value Capital in

Par Value Number

Interests Total

(In Millions)

Balance at 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

Net income attributable to noncontrolling interests

— — — — — — — — 710 710

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

Common Stock Accum-ulated Deficit Accumu-

Other Compre-

Loss Common Stock

Held in Treasury Total

Stock-holders’ Equity

Shares At Par

Value Capital in

Par Value Number

Interests Total

(In Millions)

Balance at 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

Stock-based compensation, including the tender of shares — — 14 — — — ( 3 ) 11 — 11

Dividends — — ( 216 ) — — — — ( 216 ) ( 116 ) ( 332 )

Net income attributable to common stockholders — — — 454 — — — 454 — 454

Net income attributable to noncontrolling interests — — — — — — — — 510 510

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)

NINE MONTHS ENDED SEPTEMBER 30

THREE MONTHS ENDED MARCH 31

Stockholders’ Equity

Common Stock Accum-ulated Deficit Accumu-

Common Stock (Accum-ulated Deficit) Retained Earnings Accum-

Other Compre-

11 unchanged sentences

Treasury stock purchases — — — — — 1 ( 55 ) ( 55 ) — ( 55 )

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

Dividends — — ( 216 ) — — — — ( 216 ) ( 112 ) ( 328 )

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

Net income attributable to common stockholders — — — 352 — — — 352 — 352

2 unchanged sentences

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

Balance at March 31, 2025 1,626 $ 163 $ 23,627 $ 182 $ ( 313 ) 189 $ ( 5,971 ) $ 17,688 $ 11,526 $ 29,214

Stockholders’ Equity

Common Stock Accum-ulated Deficit Accumu-

Common Stock Accum-ulated Deficit Accum-

Other Compre-

11 unchanged sentences

Dividends — — ( 217 ) — — — — ( 217 ) ( 173 ) ( 390 )

Contributions from noncontrolling interests — — 24 — — — — 24 26 50

Net income attributable to common stockholders — — — 473 — — — 473 — 473

Net income attributable to noncontrolling interests — — — — — — — — 689 689

— — — — — — — — 1,284 1,284

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

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

Balance at March 31, 2024 1,622 $ 162 $ 24,488 $ ( 1,586 ) $ ( 274 ) 186 $ ( 5,817 ) $ 16,973 $ 11,132 $ 28,105

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 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.

Operating results for the three-month period ended March 31, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

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.

The project was funded by PT Freeport Indonesia (PT-FI) with borrowings totaling $ 254 million that converted to equity effective June 30, 2024, increasing PT-FI’s ownership in PT Smelting to 66 % from 39.5 %.

As discussed in Note 3 of FCX’s 2023 Form 10-K, FCX has determined that PT Smelting, which is owned by PT-FI and Mitsubishi Materials Corporation, is a variable interest entity.

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 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 Indonesia 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.

As discussed in Note 3 of FCX’s 2023 Form 10-K, because PT-FI did not achieve the Gold Target during the Initial Period (as defined in the PT-FI shareholders agreement), PT-FI’s net income and cash dividends associated with the sale of approximately 190,000 ounces of gold during 2023 were attributed approximately 81 % to FCX.

Subsequent Events.

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.

FCX evaluated events after March 31, 2025, 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

FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method.

Basic net income per share of common stock was computed by dividing net income attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the period.

Basic net income per share of common stock was computed by dividing net income attributable to common stockholders (after deducting accumulated undistributed dividends and earnings allocated to participating securities) by the weighted-average shares of common stock outstanding during the period.

Diluted net income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be antidilutive.

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 Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

Three Months Ended

Net income $ 793 $ 1,162

3 unchanged sentences

Basic weighted-average shares of common stock outstanding

1,438 1,435 1,438 1,434

Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units 6 8

Diluted weighted-average shares of common stock outstanding

1,444 1,443 1,445 1,443

Net income per share attributable to common stockholders:

2 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 any of the periods shown above.

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

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

Nine Months Ended

September 30,

Three Months Ended

International ( 502 ) ( 511 )

Total $ ( 500 ) $ ( 512 )

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;

accordingly, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S.

PT-FI Historical Tax Matters.

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 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’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;

as such, the decision by the arbitration tribunal had no impact on FCX’s consolidated financial statements.

FCX has reduced its unrecognized tax benefits by $ 269 million and related interest and penalties by $ 319 million (refer to Note 11 of FCX’s 2023 Form 10-K for a summary of unrecognized tax benefits and related interest and penalties).

Inflation Reduction Act of 2022.

The provisions of the U.S.

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

The Act includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15 % on the adjusted financial statement income (AFSI) of corporations with average 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.

In December 2021, the Organisation for Economic Co-operation and Development (OECD) published a framework for Pillar Two of the Global Anti-Base Erosion Rules, which was designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a minimum level of income tax.

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 does not expect enactment of the recommended framework in jurisdictions where it operates to materially impact its financial results.

FCX’s consolidated effective income tax rate is a function of the various rates in the jurisdictions where it operates and was 39 % for first-quarter 2025 and 31 % for first-quarter 2024.

The first-quarter 2024 effective income tax rate reflects net benefits of $ 182 million related to closure of PT Freeport Indonesia’s (PTFI) 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters.

During first-quarter 2025, FCX’s U.S.

operations generated a net loss that will not result in a realized tax benefit, accordingly, applicable accounting rules require FCX to adjust its estimated effective tax rate to exclude the impact of U.S.

DEBT AND EQUITY

The components of debt follow:

September 30,

2025 December 31, 2024

PT-FI revolving credit facility $ 250 $ —

PTFI revolving credit facility $ 250 $ 250

Senior notes and debentures:

Issued by FCX 5,283 5,281

Issued by PT-FI 2,982 2,980

Issued by PTFI 2,983 2,983

Issued by Freeport Minerals Corporation 352 353

Atlantic Copper a

Total debt 9,404 8,948

1 unchanged sentence

Long-term debt $ 8,909 $ 8,907

Includes short-term lines of credit used for working capital requirements, with interest rates based on the Secured Overnight Financing Rate plus a spread.

Revolving Credit Facilities.

FCX and PT-FI have a $ 3.0 billion, unsecured revolving credit facility that matures in October 2027.

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 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.

FCX and PTFI have a $ 3.0 billion, unsecured revolving credit facility that matures in October 2027.

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 a $ 1.5 billion sublimit on the issuance of letters of credit and a $ 500 million limit on PTFI’s borrowing capacity.

At March 31, 2025, there were no borrowings and $ 5 million in letters of credit issued under FCX’s revolving credit facility.

At March 31, 2025, PTFI 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 March 31, 2025, FCX, PTFI and Cerro Verde were in compliance with each of their respective credit facility’s covenants.

Interest Expense, Net.

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).

Consolidated interest costs (before capitalization) totaled $ 174 million in first-quarter 2025 and $ 175 million in first-quarter 2024.

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $ 104 million in first-quarter 2025 and $ 86 million in first-quarter 2024.

The increase in capitalized interest costs in first-quarter 2025, compared to first-quarter 2024, primarily related to mine development projects in the U.S.

and PTFI’s new smelter and precious metals refinery (collectively, PTFI’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 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 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.

In first-quarter 2025, FCX acquired 1.4 million shares of its common stock for a total cost of $ 55 million ($ 39.10 average cost per share), and in April 2025, FCX acquired an additional 0.8 million shares of its common stock ($ 29.48 average cost per share).

As of April 30, 2025, FCX has acquired a total of 51 million shares ($ 38.50 average cost per share), has $ 3.0 billion available under its share repurchase program and has 1.4 billion shares of common stock outstanding.

On March 26, 2025, FCX’s Board of Director’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 May 1, 2025, to common shareholders of record as of April 15, 2025.

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

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

FINANCIAL INSTRUMENTS

8 unchanged sentences

Copper Futures and Swap Contracts.

Some of FCX’s U.S.

copper rod and cathode customers request a fixed market price instead of the Commodity Exchange Inc.

Some of FCX’s North America copper rod and cathode customers request a fixed market price instead of the Commodity Exchange Inc.

(COMEX) average copper price in the month of shipment.

2 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 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.

FCX did not have any significant gains or losses resulting from hedge ineffectiveness during first-quarter 2025 and 2024.

At March 31, 2025, FCX held copper futures and swap contracts that qualified for hedge accounting for 118 million pounds at an average contract price of $ 4.64 per pound, with maturities through December 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 Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

Three Months Ended

Copper futures and swap contracts:

2 unchanged sentences

Hedged item – firm sales commitments ( 81 ) ( 9 )

Realized (losses) gains:

Realized gains:

Matured derivative financial instruments 20 1

1 unchanged sentence

Embedded Derivatives.

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

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

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

FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX copper prices and the London gold price as specified in the contracts, which results in an embedded derivative ( i.e.

FCX records revenues and invoices customers at the time of shipment based on then-current LME copper settlement price and the London gold price as specified in the contracts, which results in an embedded derivative ( i.e.

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

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

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

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

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

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

Similarly, FCX purchases copper under contracts that provide for provisional pricing.

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 September 30, 2024, follows:

A summary of FCX’s embedded derivatives at March 31, 2025, follows:

Open Positions Average Price

2 unchanged sentences

Embedded derivatives in provisional sales contracts:

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

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

Copper (millions of pounds) 357 $ 4.30 $ 4.40 August 2025

Gold (thousands of ounces) 99 2,991 3,130 April 2025

Embedded derivatives in provisional purchase contracts:

Copper (millions of pounds) 26 4.29 4.42 December 2024

Copper (millions of pounds) 55 4.31 4.39 June 2025

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 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.

At March 31, 2025, Atlantic Copper held net copper forward sales contracts for 97 million pounds at an average contract price of $ 4.42 per pound, with maturities through June 2025.

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 Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

Three Months Ended

Embedded derivatives in provisional sales contracts:

2 unchanged sentences

Copper forward contracts b

( 19 ) ( 1 ) ( 45 ) ( 3 )

Amounts recorded in revenues.

2 unchanged sentences

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

September 30,

2025 December 31, 2024

4 unchanged sentences

Embedded derivatives in provisional sales/purchase contracts 55 10

Copper forward contracts 3 10

Total derivative assets $ 114 $ 20

Commodity Derivative Liabilities:

Derivatives designated as hedging instruments :

Copper futures and swap contracts $ 3 $ 28

Derivatives not designated as hedging instruments :

4 unchanged sentences

FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances.

A summary of these net unsettled commodity contracts in the balance sheet follows:

A summary of these unsettled commodity contracts that are offset in the balance sheets follows:

Assets Liabilities

September 30,

2024 December 31, 2023 September 30,

2025 December 31, 2024 March 31,

2025 December 31, 2024

17 unchanged sentences

Other current assets 57 10 — —

Other assets 2 — — —

Accounts payable and accrued liabilities 2 10 9 35

Other liabilities — — — 1

$ 110 $ 20 $ 11 $ 89

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 September 30, 2024, the maximum amount of credit exposure associated with derivative transactions was $ 135 million.

As of March 31, 2025, the maximum amount of credit exposure associated with derivative transactions was $ 114 million.

Other Financial Instruments.

3 unchanged sentences

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,

2025 December 31, 2024

Balance sheet components:

Cash and cash equivalents a

$ 5,000 $ 4,758

Restricted cash and cash equivalents, current b

Cash and cash equivalents $ 4,385 $ 3,923

Restricted cash and cash equivalents, current a

Restricted cash and cash equivalents, long-term - included in other assets 103 100

Total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows $ 4,948 $ 4,911

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.

Primarily includes (i) $ 0.3 billion at March 31, 2025, and $ 0.7 billion at December 31, 2024, of time deposits associated with 30 % of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks for 90 days in accordance with an Indonesia regulation, and (ii) $ 0.2 billion at March 31, 2025, designated for future talc-related litigation in accordance with a legal settlement.

Refer to Note 7 for further discussion of these matters.

FAIR VALUE MEASUREMENT

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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 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.

FCX did not have any significant transfers in or out of Level 3 during first-quarter 2025.

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

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 September 30, 2024

At March 31, 2025

Carrying Fair Value

15 unchanged sentences

Copper futures and swap contracts 56 56 — 37 19 —

Copper forward contracts 3 3 — 1 2 —

Total 114 114 — 38 76 —

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

Contingent consideration for the sale of oil and gas properties 2 2 — — — 2

Embedded derivatives in provisional sales/purchase contracts in a gross liability position 12 12 — — 12 —

Copper forward contracts 23 23 — 14 9 —

Copper futures and swap contracts 3 3 — — 3 —

Total 15 15 — — 15 —

Long-term debt, including current portion e

9,404 9,320 — — 9,320 —

16 unchanged sentences

Embedded derivatives in provisional sales/purchase contracts in a gross asset position 10 10 — — 10 —

Copper futures and swap contracts 4 4 — 3 1 —

Copper forward contracts 10 10 — 4 6 —

Total 20 20 — 4 16 —

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

50 42 — — — 42

Contingent consideration for the sale of oil and gas properties 3 3 — — — 3

Embedded derivatives in provisional sales/purchase contracts in a gross liability position 60 60 — — 60 —

Copper forward contracts 28 28 — 17 11 —

Copper forward contracts 1 1 — 1 — —

Total 89 89 — 18 71 —

Long-term debt, including current portion e

8,948 8,807 — — 8,807 —

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 ($ 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).

Excludes amounts included in restricted cash and cash equivalents and other assets (which approximated fair value), primarily amounts associated with (i) PTFI’s export proceeds ($ 0.3 billion at March 31, 2025, and $ 0.7 billion at December 31, 2024), and (ii) future talc-related litigation in accordance with a legal settlement ($ 0.2 billion at March 31, 2025).

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.

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Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME or COMEX copper forward prices and the adjusted London gold price at each reporting date based on the month of maturity (refer to Note 5 for further discussion);

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME copper forward price and the adjusted London gold price at each reporting date based on the month of maturity (refer to Note 5 for further discussion);

however, FCX’s contracts themselves are not traded on an exchange.

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Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

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

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.

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.

The techniques described above may produce a fair value that may not be indicative of net realizable value or reflective of future fair values.

Debt is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value that may not be indicative of NRV or reflective of future fair values.

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

There have been no changes in the techniques used at March 31, 2025, as compared with those techniques used at December 31, 2024.

CONTINGENCIES AND COMMITMENTS

Environmental

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 $ 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

Refer to Note 12 of FCX’s 2023 Form 10-K for further discussion of FCX’s asset retirement obligations (AROs).

Mining Operations.

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 $ 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.

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

There were no significant updates to previously reported legal proceedings included in Note 10 of FCX’s 2024 Form 10-K, other than the matter discussed below.

Louisiana Parishes Coastal Erosion Cases.

Certain FCX affiliates were named as defendants, along with numerous co-defendants, in 13 cases out of a total of 42 cases filed in Louisiana state courts by 6 south Louisiana parishes (Cameron, Jefferson, Plaquemines, St.

John the Baptist and Vermilion), alleging that certain oil and gas exploration and production operations and sulfur mining and production operations in coastal Louisiana contaminated and damaged coastal wetlands and caused significant land loss along the Louisiana coast.

The settlement agreement to resolve these cases was fully executed in fourth-quarter 2022 but there was a delay in finalizing it as a result of a lawsuit challenging the settlement brought in first-quarter 2023 by a non-plaintiff coastal parish included in the settlement (Terrebonne Parish) titled Terrebonne Parish Consolidated Government v.

Louisiana Department of Natural Resources et al.

185576, 32nd Judicial District Court, Terrebonne Parish, State of Louisiana.

During first-quarter 2024, Terrebonne Parish agreed to dismiss its lawsuit and FCX made the $ 15 million settlement payment in trust (which was accrued for in 2019) in accordance with the terms of the settlement agreement.

Asbestos and Talc Claims.

In January 2025, the claimants in both the Imerys Talc America (Imerys) and Cyprus Mines Corporation (Cyprus Mines), bankruptcy cases approved a global settlement, which remains subject to bankruptcy court approvals in both cases.

In accordance with the global settlement, Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX and Cyprus Mines’ parent company, agreed to contribute $ 195 million over seven years to a proposed claimant trust.

In addition, in 2024, Cyprus Mines and Imerys entered into a settlement agreement with Johnson & Johnson (J&J), which became effective in February 2025.

In accordance with the settlement agreement, (i) all indemnity claims against J&J were released, and Imerys and Cyprus Mines waived claims against insurers that could lead to the insurers asserting claims against J&J;

and (ii) J&J agreed to pay $ 505 million to Imerys and Cyprus Mines (shared 50/50 between the two parties).

In accordance with the settlement, Cyprus Mines received cash of $ 202 million in first-quarter 2025, with the remaining $ 51 million to be received by December 31, 2025.

At March 31, 2025, FCX had a total litigation reserve of $ 448 million associated with the global settlement, including $ 253 million associated with the J&J settlement.

Indonesia Regulatory Matters

Refer to Notes 10, 11 and 12 of FCX’s 2024 Form 10-K for further discussion of Indonesia regulatory matters.

Export Licenses.

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;

Concentrate Exports.

On March 17, 2025, the Indonesia government granted PTFI a copper concentrate export license through September 16, 2025, for 1.4 million metric tons of copper concentrate, and PTFI re-commenced exports of copper concentrate.

Pursuant to current regulations, PTFI is required to pay a 7.5 % export duty on copper concentrate exports during 2025.

Export Proceeds.

In accordance with a regulation issued by the Indonesia government in 2023, 30 % of PTFI’s gross export proceeds were required to be temporarily deposited into Indonesia banks for a period of 90 days before withdrawal.

At March 31, 2025, FCX had $ 0.3 billion in time deposits held in Indonesia banks associated with the regulation that are classified as current restricted cash and cash equivalents until the respective maturity dates.

Effective March 1, 2025, the Indonesia government implemented a new regulation for export proceeds that requires 100 % of export proceeds to be deposited in Indonesia banks for 12 months.

The regulation allows the use of funds for ongoing business requirements, including dividends to shareholders, payment of taxes and other obligations to the Indonesia government, payment for materials or capital expenditures that are not available domestically and repayment of loans.

Because PTFI has the ability to utilize its exports proceeds to fund business requirements, amounts deposited after March 1, 2025, are not considered restricted and are classified as cash and cash equivalents.

Smelter Assurance.

In March 2025, assurance bonds and funds required to be held in escrow to support commitment for smelter development, were released following approval from the Indonesia government that PTFI’s smelter development obligation had been met.

Administrative Fine.

In March 2025, PTFI paid $ 59 million for an administrative fine that was previously assessed by the Indonesia government for delays in smelter development.

The fine was fully accrued at year-end 2024.

Long-Term Mining Rights.

Pursuant to regulations issued during 2024, PTFI 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 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.

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

The decision by the arbitration tribunal had no impact on FCX’s consolidated financial statements.

Refer to Note 3 for discussion of the reduction in unrecognized tax benefits related to Cerro Verde tax matters.

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

Application for extension may be submitted at any time up to one year prior to the expiration of PTFI’s special mining business license (IUPK).

PTFI expects to apply for an extension during 2025, pending agreement with PT Mineral Industri Indonesia (MIND ID) on a purchase and sale agreement for the transfer in 2041 of an additional 10 % interest in PTFI.

BUSINESS SEGMENTS

FCX has organized its mining operations into four primary divisions – North America copper mines, South America operations, Indonesia operations 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 Indonesia operations (including the Grasberg minerals district and PT-FI’s new downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

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’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.

, Indonesia operations).

The PMR will receive anode slimes from the smelter and from PT Smelting.

FCX's Chief Executive Officer, identified as its chief operating decision maker under business segment accounting guidance, makes executive management decisions, including resource allocation and mine planning, for the Indonesia operations as a single business segment.

FCX has organized its mining operations into four primary divisions – U.S.

copper mines, South America operations, Indonesia operations 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 Indonesia operations (including the Grasberg minerals district and PTFI’s new downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

FCX's Chief Executive Officer is identified as its chief operating decision maker (CODM) under business segment reporting guidance.

Operating income (loss) is the financial measure of profit or loss used by the CODM to review segment results, and the significant segment expenses reviewed by the CODM are consistent with the operating expense line items presented in FCX’s consolidated statements of income.

The CODM uses operating income (loss) to assess segment performance against forecasted results and to allocate resources, including capital investment in mining operations and potential expansions.

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.

2 unchanged sentences

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.

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

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

However, not all costs and expenses applicable to an operation are allocated.

federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level.

In addition, some selling, general and administrative costs are not allocated to the operating divisions or individual segments.

Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

In addition, some selling, general and administrative costs are not allocated to the operating divisions or individual operating segments.

Product Revenues.

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

FCX’s revenues attributable to the products it sold for the first quarters of 2025 and 2024 follow:

Three Months Ended

Cathode $ 2,025 $ 1,959

2 unchanged sentences

Purchased copper a

154 71 620 347

Gold 475 1,168

4 unchanged sentences

( 68 ) ( 120 )

PTFI export duties c

( 55 ) ( 156 )

Treatment charges ( 28 ) ( 129 )

PT-FI export duties c

( 129 ) ( 133 ) ( 360 ) ( 147 ) d

Revenues from contracts with customers 5,574 6,211

Embedded derivatives e

110 ( 40 ) 446 43

Embedded derivatives d

Total consolidated revenues $ 5,728 $ 6,321

FCX purchases copper cathode primarily for processing by its Rod & Refining operations.

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 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.

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

Reflects an export duty of 7.5 % on copper concentrate exports.

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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Atlantic Corporate,

North America Copper Mines South America Operations Copper Other

United States Copper Mines South America Operations Copper Other

Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX

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

Three Months Ended September 30, 2024

Three Months Ended March 31, 2025

Unaffiliated customers $ 83 $ 108 $ 191 $ 917 $ 212 $ 1,129 $ 1,564 $ — $ 1,624 $ 752 $ 468 a

Intersegment 494 945 1,439 174 73 247 6 177 8 3 ( 1,880 ) —

Production and delivery 492 811 1,303 630 b

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

Production and delivery 419 793 1,212 587 201 788 578

122 1,622 734 ( 1,300 ) b

Depreciation, depletion and amortization (DD&A) 50 74 124 91 20 111 186 26 1 7 11 466

5 unchanged sentences

Operating income (loss) 109 179 288 409 62 471 777 29 9 5 ( 276 ) 1,303

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

Interest expense, net — — — 4 — 4 9 — — 11 46 70

Other (expense) income, net ( 1 ) 3 2 32 ( 1 ) 31 16 — — ( 5 ) 14 58

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

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

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

Provision for income taxes — — — 171 22 193 288 — — 10 9 500

Equity in affiliated companies’ net earnings (losses) — — — — — — 3 — — — ( 1 ) 2

Net income attributable to noncontrolling interests — — — 126 17 143 275 — — — 23 441

Net income attributable to common stockholders 352

Total assets at March 31, 2025 3,239 6,950 10,189 8,166 2,073 10,239 28,006 2,021 364 1,448 3,755 56,022

Capital expenditures 59 196 255 74 11 85 704 19 17 43 49 1,172

Three Months Ended September 30, 2023

Three Months Ended March 31, 2024

Unaffiliated customers $ 37 $ 40 $ 77 $ 826 $ 208 $ 1,034 $ 2,648

3 unchanged sentences

Production and delivery 459 765 1,224 603 170 773 861 119 1,487 650

( 1,591 ) 3,553

DD&A 48 64 112 92 16 108 335 16 1 7 16 595

5 unchanged sentences

Operating income (loss) 66 87 153 228 21 249 1,596 10 11 7 ( 392 ) 1,634

Interest expense, net — 1 1 ( 10 ) f

— ( 10 ) 9 — — 8 88 96

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 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)

Atlantic Corporate,

North America Copper Mines South America Operations Copper Other

Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX

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

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

Intersegment 1,680 2,797 4,477 477 — 477 386 415 32 8 ( 5,795 ) —

Production and delivery 1,389 2,289 3,678 1,912 b

538 2,450 2,451 393 4,741 2,263 ( 4,180 ) 11,796

DD&A 140 187 327 281 51 332 923 51 4 20 47 1,704

Selling, general and administrative expenses 1 2 3 6 — 6 93 — — 21 261 384

Exploration and research expenses 13 21 34 9 2 11 8 — — — 62 115

Environmental obligations and shutdown costs — — — — — — — — — — 115 115

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

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

Interest expense, net — — — 5 — 5 1 — — 10 73 89

Other (expense) income, net — ( 2 ) ( 2 ) 11 13 24 38 — — 6 63 129

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 — — — 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

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

Intersegment 1,787 2,922 4,709

638 — 638 432 520 28 19 ( 6,346 ) —

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

DD&A 132 180 312 302 48 350 694 48 4 21 50 1,479

Selling, general and administrative expenses 1 2 3 7 — 7 90 — — 21 238 359

Exploration and research expenses 8 35 43 6 2 8 — — — — 52 103

Environmental obligations and shutdown costs — 26 26 — — — — — — — 213 239

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

Interest expense, net — 1 1 74 f

Provision for (benefit from) income taxes — — — 91 12 103 409 d

— — ( 13 ) 13 512

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

Other (expense) income, net ( 4 ) ( 8 ) ( 12 ) ( 36 ) 11 ( 25 ) 90 ( 1 ) ( 1 ) — 132 183

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

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

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

Net income (loss) attributable to noncontrolling interests — — — 76 14 90 600 d

34 276 1,031 e

— — — ( 1 ) 689

Net income attributable to common stockholders 473

Total assets at March 31, 2024 3,148 6,315 9,463 8,075 1,960 10,035 27,162 1,885 257 1,354 4,042 54,198

Capital expenditures 44 193 237 60 22 82 842 27 5 23 38 1,254

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 copper mines and South America operations.

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.

Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of FCX’s U.S.

copper mines and South America operations.

Includes charges totaling $ 73 million associated with maintenance turnaround costs at the Miami smelter.

Includes charges totaling $ 109 million for assumed oil and gas abandonment obligations resulting from bankruptcies of other companies.

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

FCX's economic and ownership interest in PTFI is 48.76 % except for net income associated with the settlement of these historical tax matters, which was attributed based on the economics prior to January 1, 2023 ( i.e.

, approximately 81 % to FCX and 19 % to MIND ID).

Refer to Note 2 of FCX’s 2024 Form 10-K for further discussion .

4 unchanged sentences

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

(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”).

(the Company) as of March 31, 2025, the related consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2025 and 2024, 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.

13 unchanged sentences

Phoenix, Arizona

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