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Item 2. Management’s Discussion and Analysis

2025-05-08 compared with 2024-11-08 · 457 added, 854 removed, 755 unchanged (63% of the section changed)

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Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits;

and significant operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

We remain focused on execution of our operating plans, while continuing to prioritize productivity and cost control, and advancing initiatives for long-term organic growth.

We continue to make progress on our leach innovation initiatives, with incremental copper production from these initiatives totaling 164 million pounds for the first nine months of 2024, compared with 97 million pounds for the first nine months of 2023.

We believe positive market fundamentals justify a favorable long-term outlook for copper, supported by copper’s increasingly important role in the global economy and limited available supplies to meet growing demand.

In September 2024, we purchased 5.3 million shares of Cerro Verde common stock for $210 million, increasing our ownership interest in Cerro Verde to 55.08% from 53.56%.

On October 14, 2024, a fire occurred during commissioning of PT Freeport Indonesia’s (PT-FI) 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.

While mining operations in Central Papua and the completion and ramp-up of the precious metals refinery (PMR) project have not been impacted, smelter start-up operations have been temporarily suspended pending remediation activities.

PT-FI is working with the Indonesia government to allow continued exports of copper concentrates until full ramp-up of the new smelter and PMR (collectively, PT-FI’s new downstream processing facilities) is achieved, including seeking an increase to the permitted quota for 2024.

Refer to “Operations – Indonesia” for additional discussion of the incident.

Net income attributable to common stockholders totaled $526 million in third-quarter 2024 and $1.6 billion for the first nine months of 2024, compared with $454 million in third-quarter 2023 and $1.5 billion for the first nine months of 2023.

The increases in the 2024 periods, compared to the 2023 periods, primarily reflect higher average realized copper and gold prices, higher gold sales volumes, and lower environmental obligations and shutdown costs, partly offset by higher operating costs, income tax expense and income attributable to noncontrolling interests.

Additionally, the first nine months of 2023 included interest expense recognized for Cerro Verde’s settlement of interest on a historical profit sharing liability and contested tax rulings issued by the Peruvian Supreme Court (refer to Note 4).

and significant operations in the U.S.

and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

We remain focused on providing metals essential for the economy and everyday life, while being vigilant in our efforts to reduce costs, improve efficiencies and carefully manage operating, administrative and capital spending in this uncertain macroeconomic environment.

We believe we are well positioned for the future with large-scale production of copper, gold and molybdenum, with a highly qualified and experienced team with a proven track record, a portfolio of attractive organic growth opportunities and a strong balance sheet and financial position.

We are monitoring developments on U.S.

trade policy for potential impacts on our business, cost structure and supply chains, and efforts are under way to evaluate alternative sourcing options to mitigate potential impacts.

We are also monitoring potential indirect impacts of U.S.

trade policy on economic growth and the potential for impacts on demand for copper.

While the near-term impacts are uncertain, we believe the fundamental drivers for increased future demand for copper continue to be favorable, supported by substantial requirements for energy infrastructure, electrification and new technologies.

We are accelerating initiatives across our U.S.

and South America operations by incorporating new applications, technologies and data analytics to our leaching processes.

We continue to apply operational enhancements on a larger scale and test new innovative technology applications.

We are targeting an annual run rate of 300 million pounds of copper by the end of 2025 from these initiatives and believe we have the potential for further significant increases in recoverable metal beyond the current target run rate.

In addition to technology-driven leaching initiatives, we are pursuing opportunities to leverage new technologies and analytics tools in automation and operating practices with a goal of improving operating efficiencies, and reducing costs and capital intensity of our current operations and future development projects.

Repairs to PT Freeport Indonesia’s (PTFI) new smelter in Eastern Java, Indonesia, following the October 2024 fire incident, are nearing completion.

Startup activities are expected to re-commence in second-quarter 2025 with full ramp-up expected to be achieved by year-end 2025.

In addition, PTFI continues to ramp-up production at its newly commissioned precious metals refinery (PMR) and the facility is expected to reach full capacity rates during 2025.

Following the full ramp-up of the new smelter and PMR (collectively, PTFI’s new downstream processing facilities), PTFI’s mining and smelting operations will be fully integrated.

Net income attributable to common stockholders totaled $352 million in first-quarter 2025, compared with $473 million in first-quarter 2024.

The decrease in first-quarter 2025 results, compared to first-quarter 2024, primarily reflects lower gold and copper sales volumes in Indonesia, partly offset by higher average realized prices for copper and gold.

Refer to “Consolidated Results” for further discussion.

At September 30, 2024, we had consolidated debt of $9.7 billion and consolidated cash and cash equivalents of $5.0 billion, $6.0 billion including $1.0 billion of current restricted cash associated with a portion of PT-FI's export proceeds required to be temporarily deposited in Indonesia banks.

Net debt totaled $0.5 billion, excluding $3.2 billion of debt for PT-FI’s new downstream processing facilities.

Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PT-FI's export proceeds to net debt.

At September 30, 2024, we had $3.0 billion of availability under our revolving credit facility, and PT-FI and Cerro Verde had $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.

Refer to Note 4 and “Capital Resources and Liquidity” for further discussion of our debt balances and transactions.

As further discussed in “Risk Factors” in Part I, Item 1A.

of our 2023 Form 10-K, our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors.

For the remainder of 2025, we expect our quarterly consolidated sales volumes of copper and gold to increase from first-quarter 2025 levels, reflecting increased copper and gold volumes from Indonesia.

At March 31, 2025, we had consolidated debt of $9.4 billion and consolidated cash and cash equivalents of $4.4 billion, $4.6 billion including $0.3 billion of current restricted cash associated with a portion of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation.

Net debt totaled $1.5 billion, excluding $3.2 billion of debt for PTFI’s new downstream processing facilities.

Refer to “Net Debt” for a reconciliation of consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PTFI's export proceeds to net debt.

At March 31, 2025, we had $3.0 billion of availability under our revolving credit facility, and PTFI and Cerro Verde had $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.

In first-quarter 2025, we acquired 1.4 million shares of our common stock for a total cost of $55 million ($39.10 average cost per share).

As of April 30, 2025, we acquired a total of 51 million shares ($38.50 average cost per share) and have $3.0 billion available under our share repurchase program.

Refer to Note 4 and “Capital Resources and Liquidity” for further discussion of our debt and share repurchases.

Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors.

World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control.

Refer to “Markets” below for further discussion.

Refer to “Markets” below and “Risk Factors” in Part I, Item 1A.

of our 2024 Form 10-K for further discussion.

Because we cannot control the prices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures.

The forward-looking statements in the below section and elsewhere in this quarterly report on Form 10-Q are based on current market conditions, are as of the filing date of this quarterly report on Form 10-Q, are based on several assumptions and are subject to significant risks and uncertainties.

Refer to “Cautionary Statement” below.

Consolidated Sales Volumes

Following are our projected consolidated sales volumes for the year 2025:

Copper (millions of recoverable pounds):

North America copper mines 1,240

Copper (billions of recoverable pounds):

copper mines 1.3

South America operations 1.1

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Molybdenum (millions of recoverable pounds)

Includes 50 million pounds produced by our North America copper mines and South America operations and 30 million pounds produced by our Molybdenum mines.

Consolidated sales volumes in fourth-quarter 2024 are expected to approximate 980 million pounds of copper, 340 thousand ounces of gold and 20 million pounds of molybdenum.

Consolidated copper and gold production volumes for the year 2024 are expected to exceed 2024 sales volumes, reflecting the deferral of approximately 85 million pounds of copper and 85 thousand ounces of gold associated with inventories held at PT-FI’s new downstream processing facilities that will be sold as refined metal in 2025.

Includes 53 million pounds produced by our U.S.

copper mines and South America operations and 35 million pounds produced by our Molybdenum mines.

For the remainder of 2025, we expect our quarterly consolidated sales volumes of copper and gold to increase from first-quarter 2025 levels reflecting increased copper and gold volumes from Indonesia.

Consolidated sales volumes in second-quarter 2025 are expected to approximate 1.0 billion pounds of copper, 500 thousand ounces of gold and 22 million pounds of molybdenum.

Projected sales volumes are dependent on operational performance;

continuation of copper concentrate exports during the restoration period of PT-FI’s new smelter;

the ramp-up of PTFI’s new downstream processing facilities;

weather-related conditions;

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Consolidated Unit Net Cash Costs

Consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average $1.58 per pound of copper for the year 2024 (including $1.72 per pound of copper in fourth-quarter 2024), based on achievement of current sales volume and cost estimates, and assuming average prices of $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024.

For the remainder of 2025, we expect our consolidated average unit net cash costs to decline from first-quarter 2025 levels reflecting increased copper and gold volumes from Indonesia.

Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”), consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average $1.50 per pound of copper for both the year 2025 and second-quarter 2025, based on achievement of current sales volume and cost estimates, and assuming average prices of $3,000 per

ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025.

Quarterly unit net cash costs vary with fluctuations in sales volumes, including the ratio of copper and gold sales within a period, and realized prices, primarily for gold and molybdenum.

The impact of price changes during fourth-quarter 2024 on consolidated unit net cash costs for the year 2024 would approximate $0.01 per pound of copper for each $100 per ounce change in the average price of gold and $0.01 per pound of copper for each $2 per pound change in the average price of molybdenum.

The impact of price changes on consolidated unit net cash costs for the remainder of 2025 would approximate $0.04 per pound of copper for each $100 per ounce change in the average price of gold and $0.02 per pound of copper for each $2 per pound change in the average price of molybdenum.

Consolidated Operating Cash Flows

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and other factors.

Our consolidated operating cash flows are estimated to approximate $6.8 billion for the year 2024, net of $0.4 billion of working capital and other uses, based on current sales volume and cost estimates, and assuming average prices of $4.25 per pound of copper, $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024.

Estimated consolidated operating cash flows for the year 2024 also reflect an estimated income tax provision of $2.7 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2024).

The impact of price changes in fourth-quarter 2024 on consolidated operating cash flows would approximate $90 million for each $0.10 per pound change in the average price of copper, $30 million for each $100 per ounce

change in the average price of gold and $15 million for each $2 per pound change in the average price of molybdenum.

Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”), consolidated operating cash flows are estimated to approximate $7.0 billion for the year 2025, including $0.2 billion of working capital and other sources, based on current sales volume and cost estimates, and assuming prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025.

Estimated consolidated operating cash flows for the year 2025 also reflect a projected income tax provision of $2.8 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2025).

The impact of price changes on consolidated operating cash flows for the remainder of 2025 would approximate $300 million for each $0.10 per pound change in the average price of copper, $140 million for each $100 per ounce change in the average price of gold and $100 million for each $2 per pound change in the average price of molybdenum.

As further discussed in "Markets," copper sales from our U.S.

copper mines are generally based on prevailing Commodity Exchange Inc (COMEX) settlement price, which as of April 30, 2025, was 9% higher than the London Metal Exchange (LME) copper settlement price.

We estimate the impact on operating cash flows of each $0.10 per pound premium in the COMEX settlement price, compared to the LME settlement price, for the remainder of 2025 would approximate $95 million ($135 million on an annualized basis).

Consolidated Capital Expenditures

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Major mining projects $ 2.8 a

PT-FI’s new downstream processing facilities 1.0 b

Primarily includes underground mine development, supporting mill and power capital costs and initial spending on a new gas-fired combined cycle facility in the Grasberg minerals district, and expansion projects in North America.

Excludes capitalized interest and $0.3 billion of estimated commissioning and owner’s costs.

Capital expenditures for PT-FI’s new downstream processing facilities are expected to be funded with PT-FI’s cash flows from operations and availability under PT-FI’s revolving credit facility.

We closely monitor market conditions and will adjust our operating plans, including capital expenditures, to protect our liquidity and preserve our asset values, as necessary.

PTFI’s new downstream processing facilities 0.6 b

Sustaining capital and other 1.6

Includes $1.1 billion for planned projects, primarily associated with underground mine development, supporting mill and power capital costs and a portion of spending on a new gas-fired combined cycle facility in the Grasberg minerals district, and expansion projects in the U.S., and $1.7 billion for discretionary growth projects, primarily in the Grasberg minerals district for the continued development of Kucing Liar and at the Bagdad mine for tailings infrastructure.

Excludes capitalized interest, owner’s costs and commissioning.

Capital expenditures for PTFI’s new downstream processing facilities are expected to be funded with PTFI’s cash flows from operations and availability under PTFI’s revolving credit facility.

We closely monitor market conditions and will adjust our operating plans, including capital expenditures, as necessary.

Prices for copper, gold and molybdenum are affected by numerous factors beyond our control and can fluctuate significantly (for further discussion refer to “Risk Factors” contained in Part I, Item 1A.

of our 2024 Form 10-K).

The following graphs present the London Metal Exchange (LME) copper settlement price, the London Bullion Market Association (London) PM gold price, and the Platts Metals Daily Molybdenum Dealer Oxide weekly average price since January 2014.

This graph presents LME copper settlement prices and the combined reported stocks of copper at the LME, Commodity Exchange Inc., and the Shanghai Futures Exchange from January 2014 through September 2024.

During third-quarter 2024, LME copper settlement prices ranged from a low of $3.91 per pound to a high of $4.47

per pound, averaged $4.18 per pound and settled at $4.43 per pound on September 30, 2024.

Strong copper prices during third-quarter 2024 primarily resulted from investor sentiment and ongoing demand in China.

The LME copper settlement price was $4.28 per pound on October 31, 2024.

We believe fundamentals for copper are favorable with limited available supplies and growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries and growing connectivity globally.

This graph presents London PM gold prices from January 2014 through September 2024.

During third-quarter 2024, London PM gold prices ranged from a low of $2,329 per ounce to a record high of $2,664 per ounce, averaged $2,474 per ounce and closed at $2,630 per ounce on September 30, 2024.

Economic uncertainty, geopolitical tensions and strong demand from central banks around the world during third-quarter 2024 continued to push gold prices to another quarterly record high.

The London PM gold price was $2,734 per ounce on October 31, 2024.

This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average price from January 2014 through September 2024.

During third-quarter 2024, the weekly average price of molybdenum ranged from a low of $20.83 per pound to a high of $23.06 per pound, averaged $21.77 per pound and was $21.59 per pound on September 30, 2024.

The following graphs present the LME and COMEX copper settlement prices, the London Bullion Market Association (London) PM gold prices, and the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices since January 2015.

This graph presents LME and COMEX copper settlement prices and the combined reported stocks of copper at the LME, COMEX, and the Shanghai Futures Exchange from January 2015 through March 2025.

Copper sales from our South America and Indonesia operations are generally based on quoted LME monthly average copper settlement prices.

During first-quarter 2025, LME copper settlement prices averaged $4.24 per pound (ranging from a low of $3.94 per pound to a high of $4.53 per pound) and was $4.39 per pound on March 31, 2025.

The LME copper settlement price was $4.17 per pound on April 30, 2025.

Copper sales from our U.S.

copper mines are generally based on prevailing COMEX monthly average copper settlement prices.

During first-quarter 2025 COMEX copper settlement prices averaged $4.57 per pound (ranging from a low of $3.99 per pound to a record high of $5.22 per pound) and was $5.02 per pound on March 31, 2025.

The COMEX copper settlement price was $4.56 per pound on April 30, 2025.

The recent spread between LME and COMEX copper prices, which widened during first-quarter 2025, is primarily driven by market expectations of a potential tariff on U.S.

copper imports.

We believe fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence developments and growing connectivity globally.

This graph presents London PM gold prices from January 2015 through March 2025.

During first-quarter 2025, London PM gold prices averaged $2,860 per ounce (ranging from a low of $2,633 per ounce to a high of $3,115 per ounce) and was $3,115 per ounce on March 31, 2025.

Economic uncertainty, geopolitical tensions and strong demand from central banks around the world continue to drive gold prices to record highs.

The London PM gold price was $3,302 per ounce on April 30, 2025.

This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices from January 2015 through March 2025.

During first-quarter 2025, the weekly average prices of molybdenum averaged $20.56 per pound (ranging from a low of $19.82 per pound to a high of $21.10 per pound) and was $20.01 per pound on

March 31, 2025.

Overall global demand for molybdenum is driven by energy, power generation, aerospace, defense and construction sectors.

We believe fundamentals for molybdenum are positive with favorable demand drivers and limited supply.

The Platts Metals Daily Molybdenum Dealer Oxide weekly average price was $21.89 per pound on October 31, 2024.

The Platts Metals Daily Molybdenum Dealer Oxide weekly average price was $19.71 per pound on April 30, 2025.

CONSOLIDATED RESULTS

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

SUMMARY FINANCIAL DATA

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$ 1,303 $ 1,634

$ 5,621 $ 4,503

Net income attributable to common stock b,c

Diluted net income per share of common stock $ 0.36 $ 0.31 $ 1.11 $ 1.01

$ 352 $ 473 d

Diluted net income per share of common stock b,c

$ 0.24 $ 0.32 d

Diluted weighted-average shares of common stock outstanding 1,444 1,444

Operating cash flows f

Operating cash flows e

$ 1,058 $ 1,896

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$ 1,172 $ 1,254

At September 30:

Cash and cash equivalents

$ 4,385 $ 5,208

Restricted cash and cash equivalents, current g

Restricted cash and cash equivalents, current f

$ 460 $ 1,034

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Refer to Note 8 for a summary of revenues and operating income by operating division.

Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(32) million ($(13) million to net income attributable to common stock) in third-quarter 2024, $4 million ($2 million to

net income attributable to common stock) in third-quarter 2023, $28 million ($9 million to net income attributable to common stock) for the first nine months of 2024 and $183 million ($62 million to net income attributable to common stock) for the first nine months of 2023.

Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $70 million ($24 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025 and $(7) million ($(2) million to net income attributable to common stock or less than $0.01 per share) in first-quarter 2024.

Refer to Note 5 for further discussion.

We defer recognizing profits on intercompany sales until final sales to third parties occur.

Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions) additions to operating income totaling $(42) million ($(13) million to net income attributable to common stock) in third-quarter 2024, $81 million ($37 million to net income attributable to common stock) in third-quarter 2023, $79 million ($23 million to net income attributable to common stock) for the first nine months of 2024 and $153 million ($64 million to net income attributable to common stock) for the first nine months of 2023.

Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to operating income totaling $114 million ($34 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025 and $(17) million ($(5) million to net income attributable to common stock or less than $0.01 per share) in first-quarter 2024.

Refer to “Operations – Smelting and Refining.”

Includes net charges totaling $30 million in third-quarter 2024 and $81 million for the first nine months of 2024, primarily associated with impairments for legacy oil and gas matters and nonrecurring labor-related charges at Cerro Verde, partly offset by a reduction in accruals for uncertain U.S.

tax positions.

The first nine months of 2024 also include charges associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, revisions to environmental obligation estimates and related litigation reserves, and inventory adjustments/write-offs, partly offset by international tax credits.

Includes net charges totaling $117 million in third-quarter 2023 and $368 million for the first nine months of 2023, primarily associated with revisions to environmental obligation estimates and related litigation reserves, and impairments for legacy oil and gas operations.

Net charges for the first nine months of 2023 also included charges for contested tax rulings issued by the Peruvian Supreme Court and an accrual for a potential administrative fine in Indonesia.

Working capital and other uses totaled $5 million in third-quarter 2024, $482 million in third-quarter 2023, $29 million for the first nine months of 2024 and $684 million for the first nine months of 2023.

Includes $1.0 billion at September 30, 2024, and $0.5 billion at September 30, 2023, associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with Indonesia regulations.

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Includes net credits of $181 million associated with the settlement of historical PTFI tax matters, which were offset by charges of $109 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, $56 million of revisions to environmental obligation estimates and $31 million of inventory adjustments.

Working capital and other uses totaled $297 million in first-quarter 2025 and $97 million in first-quarter 2024.

Includes $0.3 billion at March 31, 2025 (expected to be released by mid-2025), and $0.9 billion at March 31, 2024, associated with a portion of PTFI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation.

Three Months Ended March 31,

SUMMARY OPERATING DATA

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Average realized price per pound $ 4.44 $ 3.94

$ 4.26 $ 3.87

Site production and delivery costs per pound a

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Unit net cash costs per pound a

$ 1.73 $ 1.53 b

$ 2.07 $ 1.51

Gold (thousands of recoverable ounces)

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Sales, excluding purchases

558 399 1,487 1,164

Average realized price per ounce $ 3,072 $ 2,145

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For reconciliations of per pound unit net cash costs (credits) by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”

Includes $0.03 per pound of copper for both the third quarter and first nine months of 2024 for nonrecurring labor-related charges at Cerro Verde associated with new collective labor agreements.

Refer to “Operations – South America” for further discussion.

Consolidated revenues totaled $6.8 billion in third-quarter 2024, $5.8 billion in third-quarter 2023, $19.7 billion for the first nine months of 2024 and $17.0 billion for the first nine months of 2023.

Consolidated revenues totaled $5.7 billion in first-quarter 2025 and $6.3 billion in first-quarter 2024.

Revenues from our mining operations and processing facilities primarily include the sale of copper cathode, copper in concentrate, copper rod, gold in concentrate and anode slimes, and molybdenum.

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Following is a summary of changes in our consolidated revenues between periods (in millions):

Three Months Ended September 30 Nine Months Ended September 30

Three Months Ended March 31

Consolidated revenues - 2024 period $ 6,321

(Lower) higher sales volumes:

Copper (279) 404

Lower sales volumes:

Molybdenum (11)

Higher (lower) average realized prices:

Copper 518 1,199

Higher average realized prices:

Molybdenum 26

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Lower treatment charges 101

Higher royalties and export duties (47) (323)

Lower royalties and export duties 153

Other, including intercompany eliminations 145

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Sales Volumes.

Consolidated copper sales volumes decreased in third-quarter 2024, compared to third-quarter 2023, primarily as a result of the timing of shipments and lower ore grades and operating rates in North America.

Consolidated gold sales volumes increased in third-quarter 2024, compared to third-quarter 2023, primarily reflecting the timing of shipments in Indonesia.

Higher consolidated copper and gold sales volumes for the first nine months of 2024, compared to the 2023 period, primarily reflect higher mining and milling rates and copper ore grades at PT-FI, partly offset by lower operating rates in North America and South America.

Consolidated copper and gold sales volumes decreased in first-quarter 2025, compared to first-quarter 2024, primarily reflecting a planned major maintenance project in Indonesia.

Lower gold sales volumes in first-quarter 2025, compared to first-quarter 2024, were also impacted by lower ore grades and the timing of shipments.

Realized Prices.

Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum.

Average realized prices in third-quarter 2024, compared with third-quarter 2023, were 13% higher for copper, 35% higher for gold and 4% lower for molybdenum.

Average realized prices for the first nine months of 2024, compared with the first nine months of 2023, were 10% higher for copper, 22% higher for gold and 17% lower for molybdenum.

Average realized copper prices include net favorable (unfavorable) adjustments to current period provisionally priced copper sales totaling $61 million in third-quarter 2024, $(34) million in third-quarter 2023, $248 million for the first nine months of 2024 and $(152) million for the first nine months of 2023.

Average realized gold prices include net favorable (unfavorable) adjustments to current period provisionally priced gold sales totaling $74 million in third-quarter 2024, $(13) million in third-quarter 2023, $155 million for the first nine months of 2024 and $(8) million for the first nine months of 2023.

Our average realized prices in first-quarter 2025, compared with first-quarter 2024, were 13% higher for copper, 43% higher for gold and 6% higher for molybdenum.

During first-quarter 2025, our average U.S.

copper price realization, which is generally based on the COMEX settlement price, was approximately 6% higher than the average copper price realizations for our South America and Indonesia operations, which are based on the LME settlement price.

Average realized copper prices include net favorable adjustments to current period provisionally priced copper sales totaling $46 million in first-quarter 2025 and $73 million in first-quarter 2024.

As discussed in Note 5, certain sales contracts for copper and gold provide final pricing in a specified future month (generally one to four months from the shipment date).

We record revenues and invoice customers at the time of shipment based on then-current LME or London PM prices, which results in an embedded derivative on provisionally priced sales that are adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement.

We record revenues and invoice customers at the time of shipment based on then-current LME prices for copper or London PM prices for gold, which results in an embedded derivative on provisionally priced sales that are adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement.

To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing.

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Prior Period Provisionally Priced Copper Sales.

Net (unfavorable) favorable adjustments to prior periods’ provisionally priced copper sales ( i.e.

, provisionally priced sales at June 30, 2024 and 2023, and December 31, 2023 and 2022) recorded in consolidated revenues totaled $(32) million in third-quarter 2024, $4 million in third-quarter 2023, $28 million for the first nine months of 2024 and $183 million for the first nine months of 2023.

Net favorable (unfavorable) adjustments to prior periods’ provisionally priced copper sales ( i.e.

, provisionally priced sales at December 31, 2024 and 2023) recorded in consolidated revenues totaled $70 million in first-quarter 2025 and $(7) million in first-quarter 2024.

Refer to Notes 5 and 8 for a summary of total adjustments to prior period and current period provisionally priced sales.

At September 30, 2024, we had provisionally priced copper sales totaling 162 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $4.43 per pound, subject to final pricing over the next several months.

We estimate that each $0.05 change in the price realized from the September 30, 2024, recorded provisional price would have an approximate $15 million effect on 2024 revenues ($5 million to 2024 net income attributable to common stock).

The LME copper price settled at $4.28 per pound on October 31, 2024.

At March 31, 2025, we had provisionally priced copper sales totaling 204 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $4.40 per pound, subject to final pricing over the next several months.

We estimate that each $0.05 change in the price realized from the March 31, 2025, recorded provisional price would have an approximate $18 million effect on 2025 revenues ($7 million to 2025 net income attributable to common stock).

The LME copper price settled at $4.17 per pound on April 30, 2025.

Atlantic Copper Revenues.

Atlantic Copper revenues totaled $765 million in third-quarter 2024 and $2.3 billion for the first nine months of 2024, compared with $700 million in third-quarter 2023 and $2.2 billion for the first nine months of 2023.

Higher revenues in the 2024 periods, compared with the 2023 periods, primarily reflect higher copper prices and sales volumes.

Atlantic Copper revenues totaled $755 million in first-quarter 2025 and $673 million in first-quarter 2024.

Higher revenues in the first-quarter 2025, compared with first-quarter 2024, primarily reflect higher copper prices.

Purchased Copper.

We purchase copper cathode primarily for processing by our Rod & Refining operations.

The volumes of copper purchases vary depending on cathode production from our operations and totaled 36 million pounds in third-quarter 2024, 18 million pounds in third-quarter 2023, 142 million pounds for the first nine months of 2024 and 85 million pounds for the first nine months of 2023.

The volumes of copper purchases vary depending on cathode production from our operations and totaled 66 million pounds in first-quarter 2025 and 42 million pounds in first-quarter 2024.

Treatment Charges.

Revenues from our copper concentrate sales are recorded net of treatment charges ( i.e., fees paid to smelters that are generally negotiated annually), which will vary with the sales volumes and the price of copper.

The decrease in treatment charges in the 2024 periods, compared to the 2023 periods, primarily reflects lower copper concentrate sales volumes in South America.

Royalties and Export Duties.

Royalties and export duties are primarily associated with PT-FI sales.

Royalties will vary with the volume of metal sold and the prices of copper and gold.

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.

PT-FI incurred export duties totaling $129 million in third-quarter 2024, $147 million in third-quarter 2023, $360 million for the first nine months of 2024 and $165 million for the first nine months of 2023.

The decrease in treatment charges in first-quarter 2025, compared to first-quarter 2024, primarily reflects lower treatment charge rates and copper concentrate sales volumes in Indonesia and South America.

Export Duties and Royalties.

Export duties, which totaled $55 million in first-quarter 2025 and $156 million in first-quarter 2024, are assessed on PTFI’s copper concentrate sales at a rate of 7.5%.

Royalties are assessed on all PTFI copper and gold sales and vary with the sales volumes and metal prices.

Production and Delivery Costs

Consolidated production and delivery costs totaled $4.1 billion in third-quarter 2024, $3.6 billion in third-quarter 2023, $11.8 billion for the first nine months of 2024 and $10.3 billion for the first nine months of 2023.

The 2024 periods include nonrecurring labor-related charges at Cerro Verde associated with new collective labor agreements (CLA) totaling $34 million in third-quarter 2024 and $99 million for the first nine months of 2024.

Additionally, the first nine months of 2024 included charges totaling $99 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies (refer to Note 7 for further discussion).

Consolidated production and delivery costs totaled $3.8 billion in first-quarter 2025 and first-quarter 2024.

First-quarter 2025 included charges totaling $73 million associated with maintenance turnaround costs at the Miami smelter, and first-quarter 2024 included charges totaling $109 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies.

Site Production and Delivery Costs Per Pound.

Site production and delivery costs for our copper mining operations primarily include labor, energy and other commodity-based inputs, such as sulfuric acid, explosives, steel, reagents, liners and tires.

Consolidated site production and delivery costs (before net noncash and other costs) for our copper mines averaged $2.61 per pound of copper in third-quarter 2024, $2.27 per pound of copper in third-quarter 2023, $2.49 per pound of copper for the first nine months of 2024 and $2.40 per pound of copper for the first nine months of 2023.

Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash (Credits) Costs” for further discussion of unit net cash costs (credits) associated with our operating divisions and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.

Site production and delivery costs for our copper mining operations primarily include labor, energy and other commodity-based inputs, such as sulfuric acid, steel, reagents, liners, tires and explosives.

Consolidated site production and delivery costs (before net noncash and other costs) for our copper mines averaged $2.59 per pound of copper in first-quarter 2025 and $2.32 per pound of copper in first-quarter 2024.

Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash Costs (Credits)” for further discussion of unit net cash costs (credits) associated with our operating divisions and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.

Depreciation, Depletion and Amortization

Depreciation will vary under the unit-of-production (UOP) method as a result of changes in sales volumes and the related UOP rates at our mining operations.

Consolidated depreciation, depletion and amortization (DD&A) totaled $600 million in third-quarter 2024, $533 million in third-quarter 2023, $1.7 billion for the first nine months of 2024 and $1.5 billion for the first nine months of 2023.

We currently expect that DD&A will approximate $2.3 billion for the year 2024.

Following completion of commissioning activities for PT-FI’s new downstream processing facilities, DD&A will include amounts associated with capitalized costs for the project.

Consolidated depreciation, depletion and amortization (DD&A) totaling $466 million in first-quarter 2025 was lower than DD&A totaling $595 million in first-quarter 2024, primarily as a result of lower copper sales volumes.

We currently expect that DD&A will approximate $2.6 billion for the year 2025, which will include amounts associated with capitalized costs for PTFI's new downstream processing facilities.

Environmental Obligations and Shutdown Costs

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Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations.

Net revisions to long-term historical environmental obligations totaled $3 million in third-quarter 2024, $83 million in third-quarter 2023, $82 million for the first nine months of 2024 and $199 million for the first nine months of 2023.

Refer to Note 7.

Net adjustments resulting from revisions to long-term historical environmental obligations totaled $(7) million in first-quarter 2025 and $56 million in first-quarter 2024.

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 our 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 varies with the level of qualifying assets associated with our development projects and average interest rates on our borrowings.

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, resulted from increased construction and development projects in process, primarily related to 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 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 downstream processing facilities.

Refer to “Capital Resources and Liquidity – Investing Activities” for discussion of capital expenditures associated with our major development projects.

Other Income, Net

Other income, net, which totaled $97 million in third-quarter 2024, $71 million in third-quarter 2023, $295 million for the first nine months of 2024 and $183 million for the first nine months of 2023, primarily includes amounts associated with interest income, currency exchange gains and losses, and market-to-market impacts of trust assets used to satisfy financial assurance obligations for our New Mexico mining operations.

The first nine months of 2024 include a credit of $26 million associated with the reduction in the accrual to indemnify PT Mineral Industri Indonesia (MIND ID) from potential losses arising from historical tax disputes (refer to Note 3), and the first nine months of 2023 include a $69 million charge associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court.

Other income, net, which totaled $58 million in first-quarter 2025 and $129 million in first-quarter 2024, primarily includes amounts associated with interest income, currency exchange gains and losses, and mark-to-market impacts of trust assets used to satisfy financial assurance obligations for our New Mexico mining operations.

Lower other income, net, in first-quarter 2025, compared to first-quarter 2024, primarily reflects lower interest income.

First-quarter 2024 also included a credit of $26 million associated with the reduction in the accrual to indemnify PT Mineral Industri Indonesia (MIND ID) from potential losses arising from PTFI’s historical tax disputes.

Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision (in millions, except percentages):

Nine Months Ended September 30,

Three Months Ended March 31,

Income (Loss) a

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Tax Rate Income Tax (Provision) Benefit

$ (75) —% $ 2 $ (270) —% $ (1)

South America 495 39% (193) 267 39% (103)

Indonesia 795 36% (288) 1,627 36% (591)

Cerro Verde historical tax matters — N/A — (142) e

PT-FI historical tax matters 16 f

PTFI historical tax matters — N/A — 16 c

Eliminations and other 76 N/A (42)

Rate adjustment g

Rate adjustment d

— N/A 21 — N/A 1

Consolidated FCX $ 1,291 39% $ (500) $ 1,674 31% $ (512)

Represents income (loss) before income taxes, equity in affiliated companies' net earnings, and noncontrolling interests.

In addition to our North America copper mines, which had operating income of $587 million for the first nine months of 2024 and $925 million for the first nine months of 2023 (refer to Note 8), the U.S.

jurisdiction reflects non-operating sites and corporate-level expenses, which include interest expense associated with FCX’s senior notes and general and administrative expenses.

Represents income before income taxes, equity in affiliated companies' net earnings and noncontrolling interests.

In addition to our U.S.

copper and molybdenum mines, which had operating income of $317 million in first-quarter 2025 and $163 million in first-quarter 2024 (refer to Note 8), the U.S.

jurisdiction reflects non-operating sites and corporate-level expenses, which include interest expense associated with our senior notes and general and administrative expenses.

jurisdiction also includes net revisions to environmental obligation estimates and charges associated with oil and gas abandonment obligations and impairments.

Includes net credits associated with the closure of our 2017 and 2018 U.S federal income tax exams.

Refer to Note 3 for further discussion.

Includes a valuation allowance release on prior year unbenefited net operating losses.

Reflects net charges associated with contested tax rulings issued by the Peruvian Supreme Court.

Refer to Note 3 for further discussion of net credits associated with closure of PT-FI’s 2021 corporate income tax audit and resolution of a framework for Indonesia disputed tax matters.

Includes net credits associated with the closure of PTFI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters.

In accordance with applicable accounting rules, we adjust our interim provision for income taxes equal to our consolidated tax rate.

Assuming achievement of current sales volume and cost estimates and average prices of $4.25 per pound of copper, $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024, we estimate our consolidated effective tax rate for the year 2024 would approximate 36% (which reflects an estimated effective tax rate of 40% for fourth-quarter 2024).

Changes in projected sales volumes and average prices during fourth-quarter 2024 would incur tax impacts at estimated effective rates of 39% for Peru, 36% for Indonesia and 0% for the U.S., which excludes the benefits discussed in footnote c under the table above and any impacts from the U.S.

Inflation Reduction Act of 2022 (refer to Note 3).

Assuming achievement of current sales volume and cost estimates and prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025, we estimate our consolidated effective tax rate for the year 2025 would approximate 39%.

Changes in projected sales volumes and average prices during 2025 would incur tax impacts at estimated effective rates of 39% for Peru, 36% for Indonesia and 0% for the U.S.

Noncontrolling Interests

Net income attributable to noncontrolling interests, which is primarily associated with our noncontrolling shareholders at PT-FI, Cerro Verde and El Abra, totaled $0.7 billion in third-quarter 2024, $0.5 billion in third-quarter 2023, $2.1 billion for the first nine months of 2024 and $1.3 billion for the first nine months of 2023 (refer to Note 8 for net income attributable to noncontrolling interests for each of our business segments).

Beginning January 1, 2023, our economic and ownership interest in PT-FI is 48.76%, except for net income associated with the settlement of historical tax matters in first-quarter 2024 and approximately 190 thousand ounces of gold sales in first-quarter 2023, which were attributed based on the economics prior to January 1, 2023 ( i.e.

Net income attributable to noncontrolling interests, which is primarily associated with our noncontrolling shareholders at PTFI, Cerro Verde and El Abra, totaled $0.4 billion in first-quarter 2025 and $0.7 billion in first-quarter 2024 (refer to Note 8 for net income attributable to noncontrolling interests for each of our business segments).

Our economic and ownership interest in PTFI is 48.76%, except for net income associated with the settlement of historical tax matters in first-quarter 2024, 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 1 for further discussion.

Refer to Note 2 of our 2024 Form 10-K for further discussion.

In September 2024, we increased our ownership interest in Cerro Verde to 55.08% from 53.56%.

Refer to Note 1 for further discussion.

Based on achievement of current sales volume and cost estimates, and assuming average prices of $4.25 per pound of copper, $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024, we estimate that net income attributable to noncontrolling interests will approximate $2.7 billion for the year 2024.

The impact of price changes on net income attributable to noncontrolling interests for the year 2024 would approximate $0.1 billion for each $0.25 per pound change in the average price of copper in fourth-quarter 2024.

Based on achievement of current sales volume and cost estimates, and assuming prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025, we estimate that net income attributable to noncontrolling interests will approximate $2.5 billion for the year 2025.

The impact of price changes on net income attributable to noncontrolling interests for the year 2025 would approximate $0.2 billion for each $0.25 per pound change in the average price of copper for the remainder of 2025.

The actual amount will depend on many factors, including relative performance of each business segment, commodity prices, costs and other factors.

Responsible Production

We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry, and recently extended to other metals including molybdenum.

2024 Annual Report on Sustainability.

In April 2025, we published our 2024 Annual Report on Sustainability, marking our 24th year of reporting on our progress.

We are committed to building upon our achievements in sustainability and our position as a leading responsible copper producer.

The Copper Mark.

We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry and extended to other metals, including molybdenum.

To achieve the Copper Mark, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria.

Awarded sites must be revalidated every three years.

We have achieved, and are committed to maintaining, the Copper Mark and/or Molybdenum Mark, as applicable, at all of our sites globally.

Leaching Innovation Initiatives

We are continuing to advance a series of initiatives across our North America and South America operations to incorporate new applications, technologies and data analytics to our leaching processes.

In late 2023, we achieved our initial incremental annual run rate target of approximately 200 million pounds of copper.

Incremental copper production from these initiatives totaled 58 million pounds in third-quarter 2024 (compared with 46 million pounds in third-quarter 2023) and 164 million pounds for the first nine months of 2024 (compared with 97 million pounds for the first nine months of 2023).

We are pursuing opportunities to apply recent operational enhancements on a larger scale and we are testing new innovative technology applications that we believe have the potential for significant increases in recoverable metal beyond the current run rate.

We achieved, and are committed to maintaining, the Copper Mark and Molybdenum Mark, as applicable, at all of our operating sites globally.

Technology and Leaching Innovation Initiatives

We are accelerating initiatives across our U.S.

and South America operations by incorporating new applications, technologies and data analytics to our leaching processes.

Incremental copper production from these initiatives totaled 214 million pounds for the year 2024 and 46 million pounds in first-quarter 2025.

We continue to apply operational enhancements on a larger scale and test new innovative technology applications.

Continued success with these initiatives would contribute to favorable adjustments in recoverable copper in leach stockpiles and positively impact average unit net cash costs.

In addition to technology-driven leaching initiatives, we are pursuing opportunities to leverage new technologies and analytic tools in automation and operating practices with a goal of improving operating efficiencies, and reducing costs and capital intensity of our current operations and future development projects.

We believe these technology and leaching initiatives are particularly important to our U.S.

operations, which have lower ore grades.

Feasibility and Optimization Studies

We are engaged in various studies associated with potential future expansion projects primarily at our mining operations.

The costs for these studies are charged to production and delivery costs as incurred and totaled $45 million in third-quarter 2024, $42 million in third-quarter 2023, $117 million for the first nine months of 2024 and $137 million for the first nine months of 2023.

We estimate the costs of these studies will approximate $175 million for the year 2024, subject to market conditions and other factors.

North America

We manage seven copper operations in North America – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico.

The costs for these studies are charged to production and delivery costs as incurred and totaled $36 million in first-quarter 2025, compared with $34 million in first-quarter 2024.

We estimate the costs of these studies will approximate $250 million for the year 2025 (including approximately $55 million in second-quarter 2025), subject to market conditions and other factors.

Proposed U.S.

Tariffs and Section 232 Investigation on Copper

Proposed U.S.

We are monitoring developments on U.S.

trade policy for potential impacts on our business, cost structure and supply chains.

Based on our current supply chains and discussions with our suppliers, we estimate that the proposed tariffs announced to date, which continue to be assessed, could have the potential to increase the costs of goods we purchase in the U.S.

by approximately 5%, primarily reflecting the potential pass-through of tariffs incurred by suppliers.

Efforts are under way to evaluate alternative sourcing options to mitigate potential impacts.

We are also monitoring potential indirect impacts of U.S.

trade policy on economic growth and the potential for impacts on demand for copper.

While any near-term impact is uncertain, we believe the fundamental drivers for increased future demand for copper continue to be favorable, supported by substantial requirements for energy infrastructure, electrification and new technologies.

We continue to drive initiatives to improve our U.S.

cost structure through efficiency programs, cost reduction initiatives and our leach innovation projects.

Section 232 Investigation on Copper.

On February 25, 2025, the President issued an executive order, noting copper as a critical material essential to national security, economic strength and industrial resilience of the U.S.

The executive order instructed the U.S.

Secretary of Commerce to conduct an investigation under Section 232 of the Trade Expansion Act to determine the effects of copper imports on U.S.

national security.

Secretary of Commerce is expected to submit a report to the President before the end of November 2025, including recommendations on potential tariffs, export controls or incentives to increase domestic production and policy recommendations to strengthen the U.S.

copper supply chain, including permitting reforms.

We are the leading copper supplier in the U.S., providing approximately 70% of total U.S.

refined copper production through our integrated domestic mining and processing facilities.

We have several initiatives in progress to significantly expand our domestic production and support initiatives that would allow us to strengthen our U.S.

copper production through potential permitting reforms and other incentives to domestic copper producers.

Copper imports are currently exempted from U.S.

tariffs pending completion of the U.S.

government’s Section 232 investigation.

During first-quarter 2025, our U.S.

average copper price realization from our U.S.

mines, which is generally based on COMEX, was approximately 6% higher than our average copper price realizations for our South America and Indonesia operations, which are based on the LME.

United States

We manage seven copper operations in the U.S.

– Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico.

We also operate a copper smelter in Miami, Arizona.

In addition to copper, certain of these operations produce molybdenum concentrate, gold and silver.

All of the North America operations are wholly owned, except for Morenci.

All of our U.S.

operations are wholly owned, except for Morenci.

We record our 72% undivided joint venture interest in Morenci using the proportionate consolidation method.

The North America copper operations include open-pit mining, sulfide-ore concentrating, leaching and solution extraction/electrowinning (SX/EW) facilities.

A majority of the copper produced at our North America copper operations is cast into copper rod by our Rod & Refining segment.

The remainder of our North America copper production is sold as copper cathode or copper concentrate, a portion of which is shipped to Atlantic Copper (our wholly owned smelter and refinery in Spain).

Molybdenum concentrate, gold and silver are also produced by certain of our North America copper operations .

copper operations include open-pit mining, sulfide-ore concentrating, leaching and solution extraction/electrowinning (SX/EW) facilities.

A majority of the copper produced at our U.S.

copper operations is cast into copper rod by our Rod & Refining segment.

The remainder of our U.S.

copper production is sold as copper cathode or copper concentrate, a portion of which is shipped to Atlantic Copper (our wholly owned smelter and refinery in Spain).

Molybdenum concentrate, gold and silver are also produced by certain of our U.S.

copper operations .

Development Activities.

We have substantial reserves and future opportunities in the U.S., primarily associated with existing operations.

We have substantial reserves, resources and future opportunities for organic growth in the U.S.

associated with existing operations.

Several initiatives are under way to target anticipated future growth in U.S.

copper supply.

We have a potential expansion project to more than double the concentrator capacity of the Bagdad operation in northwest Arizona.

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Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and approximately three to four years to complete.

The decision of whether to proceed and timing of the potential expansion will take into account overall copper market conditions, availability of labor and other factors, including progress on conversion of the existing haul truck fleet to autonomous and expanding housing alternatives to support long-range plans.

In parallel, we are advancing activities for expanded tailings infrastructure projects required under long-range plans in order to advance the potential construction timeline.

We have commenced pre-feasibility studies in the Safford/Lone Star district to define a potential significant expansion opportunity.

To support these future expansion plans, we are completing a project to convert Bagdad’s haul truck fleet to fully autonomous, enhancing local infrastructure and expanding tailings facilities.

The decision on and timing of the potential expansion will take into account overall copper market conditions and other factors.

We are advancing pre-feasibility studies in the Safford/Lone Star district to define a potential significant expansion opportunity.

Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a further expansion project.

We are expecting to complete these studies in late 2025.

The decision of whether to proceed and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors.

We expect to complete these studies in 2026.

The decision on and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors.

Operating Data.

Following is summary consolidated operating data for the North America copper mines:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Following is summary consolidated operating data for our U.S.

copper mines:

Three Months Ended March 31,

Operating Data, Net of Joint Venture Interests

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Sales, excluding purchases 307 331

Average realized price per pound $ 4.32 $ 3.86 $ 4.29 $ 3.97

Average realized price per pound a

$ 4.60 $ 3.96

Molybdenum (millions of recoverable pounds)

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Copper production (millions of recoverable pounds) 154 153

Refer to “Consolidated Results” for our consolidated molybdenum sales, which include sales of molybdenum produced at the North America copper mines.

Our consolidated copper sales volumes from North America totaled 316 million pounds in third-quarter 2024, 372 million pounds in third-quarter 2023, 0.9 billion pounds for the first nine months of 2024 and 1.0 billion pounds for the first nine months of 2023.

Lower copper sales in the 2024 periods, compared to the 2023 periods, primarily reflect lower operating rates and ore grades.

Higher third-quarter 2023 sales volumes also reflect the impact of timing of shipments.

North America copper sales are estimated to approximate 1.24 billion pounds for the year 2024.

As discussed above, our average U.S.

copper price realization, which is generally based on COMEX settlement prices, was approximately 6% higher in first-quarter 2025 than the average copper price realizations for our South America and Indonesia operations, which are based on LME settlement prices.

Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at our U.S.

copper mines.

Our consolidated copper sales volumes from U.S.

mines of 307 million pounds in first-quarter 2025 were lower than first-quarter 2024 copper sales volumes of 331 million pounds, primarily reflecting lower leach production and the timing of shipments in first-quarter 2024.

Consolidated copper sales from our U.S.

mines are estimated to approximate 1.3 billion pounds for the year 2025.

Refer to “Outlook” for projected molybdenum sales volumes.

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We use this measure for the same purpose and for monitoring operating performance by our mining operations.

This information differs from measures of performance determined in accordance with U.S.

generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S.

This information differs from measures of performance determined in accordance with generally accepted accounting principles (GAAP) in the U.S.

and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S.

This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Gross Profit per Pound of Copper and Molybdenum

The following table summarizes unit net cash costs and gross profit per pound at our North America copper mines.

The following table summarizes unit net cash costs and gross profit per pound at our U.S.

copper mines for the three months ended March 31, 2025 and 2024.

Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Three Months Ended September 30,

By- Product Method Co-Product Method By- Product Method Co-Product Method

Copper Molyb-

Revenues, excluding adjustments $ 4.32 $ 4.32 $ 21.33 $ 3.86 $ 3.86 $ 22.01

Site production and delivery, before net noncash

and other costs shown below

3.64 3.25 16.83 3.01 2.71 17.35

By-product credits (0.53) — — (0.41) — —

Treatment charges 0.13 0.12 — 0.10 0.10 —

Unit net cash costs 3.24 3.37 16.83 2.70 2.81 17.35

DD&A 0.35 0.31 1.22 0.30 0.26 1.33

Noncash and other costs, net 0.16 b

0.15 0.40 0.14 b

Total unit costs 3.75 3.83 18.45 3.14 3.20 19.15

Revenue adjustments, primarily for pricing

on prior period open sales

Gross profit per pound $ 0.57 $ 0.49 $ 2.88 $ 0.72 $ 0.66 $ 2.86

Copper sales (millions of recoverable pounds) 317 317 372 372

Molybdenum sales (millions of recoverable pounds) a

Nine Months Ended September 30,

Three Months Ended March 31,

By- Product Method Co-Product Method By- Product Method Co-Product Method

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Molybdenum sales (millions of recoverable pounds) a

Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

Includes charges totaling $0.06 per pound of copper in third-quarter 2024, $0.05 per pound of copper for the first nine months of 2024, and $0.08 per pound of copper for both the third quarter and first nine months of 2023, for feasibility and optimization studies.

Our North America copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $3.24 per pound of copper in third-quarter 2024 and $3.13 per pound for the first nine months of 2024 were higher than average unit net cash costs of $2.70 per pound in third-quarter 2023 and $2.56 per pound for the first nine months of 2023, primarily reflecting lower copper volumes.

Because certain assets are depreciated on a straight-line basis, North America’s average unit depreciation rate may vary with asset additions and the level of copper production and sales.

Reflects sales of molybdenum produced by certain of our U.S.

copper mines to our molybdenum sales company at market-based pricing.

Includes charges totaling $0.05 per pound of copper in both first-quarter 2025 and 2024 for feasibility and optimization studies.

copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors.

Average unit net cash costs (net of by-product credits) for our U.S.

copper mines of $3.11 per pound of copper in first-quarter 2025 were higher than average unit net cash costs of $2.98 per pound in first-quarter 2024, primarily reflecting higher labor costs and lower copper volumes.

Because certain assets are depreciated on a straight-line basis, the average unit depreciation rate for our U.S.

copper mines may vary with asset additions and the level of copper production and sales.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods.

Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

Average unit net cash costs (net of by-product credits) for our North America copper mines are expected to approximate $3.14 per pound of copper for the year 2024, based on achievement of current sales volume and cost estimates, and assuming an average price of $20.00 per pound of molybdenum in fourth-quarter 2024.

North America’s average unit net cash costs for the year 2024 would change by approximately $0.01 per pound for each $2 per pound change in the average price of molybdenum in fourth-quarter 2024.

Excluding potential tariff impacts, which continue to be assessed, we expect our average unit net cash costs (net of by-product credits) for our U.S.

copper mines to trend lower during the remainder of 2025, compared to 2024 levels, reflecting the projected impact of efficiencies, improved volumes and cost reduction plans currently in progress.

Excluding potential tariff impacts, which continue to be assessed, average unit net cash costs (net of by-product credits) for our U.S.

copper mines are expected to approximate $3.02 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates, and assuming an average price of $20.00 per pound of molybdenum for the remainder of 2025.

copper mines’ average unit net cash costs for the year 2025 would change by approximately $0.04 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2025.

South America

We manage two copper operations in South America – Cerro Verde in Peru (in which we own a 55.08% interest) and El Abra in Chile (in which we own a 51% interest), which are consolidated in our financial statements.

In September 2024, we purchased 5.3 million shares of Cerro Verde common stock for $210 million, increasing our ownership interest in Cerro Verde to 55.08% from 53.56%.

South America operations includes open-pit mining, sulfide-ore concentrating, leaching and SX/EW facilities.

South America operations include open-pit mining, sulfide-ore concentrating, leaching and SX/EW facilities.

Production from our South America operations is sold as copper concentrate or cathode under long-term contracts.

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Development Activities.

At the El Abra operations in Chile, we have completed substantial drilling and evaluations to define a large sulfide resource that would support a potential major mill project similar to the large-scale concentrator at Cerro Verde.

We are preparing data for a potential submission of an environmental impact statement by year-end 2025, subject to ongoing stakeholder engagement and economic evaluations.

At the El Abra operations in Chile, we have completed substantial drilling and evaluations to define a large sulfide resource that could support a potential major mill project similar to the large-scale concentrator at Cerro Verde.

The estimated resource approximates 20 billion recoverable pounds of copper, which could result in the addition of 750 million pounds of copper production per year.

We plan to submit an environmental impact statement by year-end 2025, subject to ongoing stakeholder engagement and economic evaluations.

Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00 per pound.

The decision of whether to proceed and timing of the potential project will take into account overall copper market conditions, required permitting and other factors.

Labor Matters.

In October 2024, Cerro Verde completed a new four-year CLA with one of its two unions.

The agreement follows the successful completion of a new CLA with a second union in April 2024.

Cerro Verde now has multi-year agreements for its hourly workforce.

In connection with the new CLAs, Cerro Verde incurred nonrecurring charges of $34 million in third-quarter 2024 and $99 million for the first nine months of 2024.

The decision on and timing of the potential project will take into account overall copper market conditions, required permitting and other factors.

Operating Data.

Following is summary consolidated operating data for South America operations:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Copper (millions of recoverable pounds)

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Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.

Our consolidated copper sales from South America operations were not significantly different in the 2024 periods, compared to the 2023 periods.

Our consolidated copper sales volumes from South America operations of 275 million pounds in first-quarter 2025 were lower than 284 million pounds in first-quarter 2024, primarily reflecting lower ore grades.

Copper sales from South America operations are expected to approximate 1.1 billion pounds for the year 2025.

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Gross Profit per Pound of Copper

The following table summarizes unit net cash costs and gross profit per pound of copper at our South America operations.

The following table summarizes unit net cash costs and gross profit per pound of copper at our South America operations for the three months ended March 31, 2025 and 2024.

Unit net cash costs per pound of copper are reflected under the by-product and co-product methods as the South America operations also had sales of molybdenum and silver.

Three Months Ended September 30,

Method Co-Product

Method By-Product

Method Co-Product

Revenues, excluding adjustments $ 4.29 $ 4.29 $ 3.77 $ 3.77

Site production and delivery, before net noncash and other costs shown below 2.65 a

2.43 2.57 2.32

By-product credits (0.37) — (0.42) —

Treatment charges 0.15 0.15 0.19 0.19

Royalty on metals 0.01 0.01 0.01 0.01

Unit net cash costs 2.44 2.59 2.35 2.52

DD&A 0.37 0.34 0.36 0.32

Noncash and other costs, net 0.10 b

Total unit costs 2.91 3.02 2.78 2.91

Revenue adjustments, primarily for pricing on prior period open sales (0.06) (0.06) 0.01 0.01

Gross profit per pound $ 1.32 $ 1.21 $ 1.00 $ 0.87

Copper sales (millions of recoverable pounds) 293 293 307 307

Nine Months Ended September 30,

Three Months Ended March 31,

Method Co-Product

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Revenues, excluding adjustments $ 4.36 $ 4.36 $ 3.94 $ 3.94

Site production and delivery, before net noncash and other costs shown below 2.67 a

2.47 2.51 2.26

Site production and delivery, before net noncash and other costs shown below 2.76 2.50 2.61 2.47

By-product credits (0.44) — (0.20) —

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DD&A 0.40 0.36 0.39 0.36

Noncash and other costs, net 0.07 b

Noncash and other costs, net 0.05 a

Total unit costs 2.85 2.99 3.05 3.08

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Copper sales (millions of recoverable pounds) 275 275 284 284

Includes $0.12 per pound of copper in third-quarter 2024 and $0.11 per pound of copper for the first nine months of 2024 for nonrecurring labor-related charges at Cerro Verde associated with new CLAs.

Includes charges totaling $0.06 per pound of copper in third-quarter 2024, $0.05 per pound of copper for the first nine months of 2024, and $0.03 per pound of copper in both the third quarter and first nine months of 2023 for feasibility and optimization studies.

Includes charges totaling $0.05 per pound of copper in first-quarter 2025 and $0.04 per pound of copper in first-quarter 2024 for feasibility and optimization studies.

Our South America operations have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors.

Average unit net cash costs (net of by-product credits) for South America operations of $2.44 per pound of copper in third-quarter 2024 and $2.50 per pound for the first nine months of 2024 were higher than average unit net cash costs of $2.35 per pound in third-quarter 2023 and $2.28 per pound for the first nine months of 2023, primarily reflecting nonrecurring labor-related charges at Cerro Verde associated with new CLAs with its two unions and lower by-product credits.

Average unit net cash costs (net of by-product credits) for South America operations of $2.40 per pound of copper in first-quarter 2025 were lower than first-quarter 2024 average unit net cash costs of $2.60 per pound, primarily reflecting higher by-product credits and lower treatment charges, partly offset by lower copper volumes.

Revenues from Cerro Verde’s copper concentrate sales are recorded net of treatment charges, which will vary with Cerro Verde’s sales volumes and the price of copper.

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Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

Average unit net cash costs (net of by-product credits) for South America operations are expected to approximate $2.47 per pound of copper for the year 2024 (which includes $0.08 per pound of copper for nonrecurring labor-related charges at Cerro Verde associated with its new CLAs), based on achievement of current sales volume and cost estimates, and assuming an average price of $20.00 per pound of molybdenum in fourth-quarter 2024.

PT-FI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia.

PT-FI produces copper concentrate that contains significant quantities of gold and silver.

We have a 48.76% ownership interest in PT-FI and manage its operations.

PT-FI's results are consolidated in our financial statements.

Upon completion and full ramp-up of PT-FI’s new downstream processing facilities, PT-FI will be a fully integrated producer of refined copper and gold.

Other than copper concentrate delivered to PT Smelting and PT-FI’s new smelter for further processing into refined products, most of PT-FI’s copper concentrate is sold under long-term contracts.

Labor Matters.

In April 2024, PT-FI reached a new two-year CLA with its three employee unions at its Grasberg minerals district operations.

PT-FI did not recognize any significant nonrecurring costs associated with the new CLA.

Regulatory Matters and Mining Rights.

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.

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

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;

Average unit net cash costs (net of by-product credits) for our South America operations are expected to approximate $2.52 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates, and assuming an average price of $20.00 per pound of molybdenum for the remainder of 2025.

PTFI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia.

PTFI produces copper concentrate that contains significant quantities of gold and silver.

We have a 48.76% ownership interest in PTFI and manage its operations.

PTFI's results are consolidated in our financial statements.

Once the full ramp-up of PTFI’s new downstream processing facilities is achieved, PTFI will be a fully integrated producer of refined copper and gold.

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.

Effective March 1, 2025, the Indonesia government implemented a new regulation 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.

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, we are 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.

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 MIND ID on a purchase and sale agreement for the transfer in 2041 of an additional 10% interest in PTFI.

An extension would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly attractive Grasberg minerals district.

Operating and Development Activities.

Over a multi-year investment period, PT-FI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone and Big Gossan).

PT-FI is completing a mill recovery project with the installation of a new copper cleaner circuit, which is expected to begin commissioning in late 2024.

Long-term mine development activities are ongoing for PT-FI’s Kucing Liar deposit in the Grasberg minerals district.

Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PT-FI’s operating rights beyond 2041 would extend the life of the project.

Development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe, with capital investments estimated to average approximately $400 million per year over this period.

At full operating rates, annual production from Kucing Liar is expected to approximate 560 million pounds of copper and 520 thousand ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production.

Kucing Liar will benefit from substantial shared infrastructure and PT-FI’s experience and long-term success in block-cave mining.

Operating, Development and Exploration Activities.

Over a multi-year investment period, PTFI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone (DMLZ) and Big Gossan) and related expansion of the milling facilities.

In December 2024, PTFI completed construction of a new copper cleaner circuit, a mill recovery project to enhance recoveries and optimize concentrate production, with commissioning under way.

PTFI’s underground operations produce approximately 1.7 billion pounds of copper and 1.4 million ounces of gold per year and are among the lowest cost operations in the world.

PTFI is also conducting exploration in the Grasberg mineral district targeting the potential extension of significant mineralization below the DMLZ mine.

Long-term mine development activities are ongoing for PTFI’s Kucing Liar deposit in the Grasberg minerals district.

Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PTFI’s operating rights beyond 2041 would extend the life of the project.

Development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe.

Capital investments for Kucing Liar are estimated to total $4 billion over the next seven to eight years (averaging approximately $0.5 billion per annum).

Approximately $0.7 billion has been incurred through March 31, 2025.

At full operating rates, annual production from Kucing Liar is expected to approximate 560 million pounds of copper and 520 thousand ounces of gold, providing PTFI with sustained long-term, large-scale and low-cost production.

Kucing Liar will benefit from substantial shared infrastructure and PTFI’s experience and long-term success in block-cave mining.

Natural Gas Facilities .

PT-FI plans to transition its existing energy source from coal to natural gas, which would meaningfully reduce PT-FI’s Scope 1 greenhouse gas emissions at the Grasberg minerals district.

PT-FI’s planned investments in a new gas-fired combined cycle facility are expected to be incurred over the next four years, at a cost of approximately $1 billion, which represents an incremental cost of $0.4 billion compared to previously planned investments to refurbish the existing coal units.

Once complete, PT-FI’s dual-fuel power plant and the new gas-fired combined cycle facility will be fueled by natural gas, supplied by a floating liquefied natural gas storage and regassification unit.

Downstream Processing Facilities.

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 of PT-FI’s new downstream processing facilities is achieved, including seeking an increase to the permitted quota for 2024.

In December 2023, PT Smelting completed an expansion of its capacity by 30% to 1.3 million metric tons of copper concentrate per year.

The project was funded by 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 1, PT-FI continues to account for its investment in PT Smelting under the equity method.

PTFI plans to transition its existing energy source from coal to natural gas, which would meaningfully reduce PTFI’s greenhouse gas emissions at the Grasberg minerals district.

The majority of PTFI’s planned investments in a new gas-fired combined cycle facility are expected to be incurred over the next three years at a cost of approximately $1 billion.

Once complete, PTFI’s dual-fuel power plant and the new gas-fired

combined cycle facility will be fueled by natural gas supplied by a floating liquefied natural gas storage and regassification unit.

PTFI’s New Downstream Processing Facilities.

Repairs to PTFI’s new smelter in Eastern Java, Indonesia, following the October 2024 fire incident, are nearing completion.

Startup activities are expected to re-commence in second-quarter 2025 with full ramp-up expected to be achieved by year-end 2025.

PTFI continues to ramp-up production at its newly commissioned PMR and the facility is expected to reach full capacity rates during 2025.

The facility has capacity to refine all precious metals from PTFI’s new smelter as well as from PT Smelting, PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia.

Operating Data.

Following is summary consolidated operating data for Indonesia operations:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Copper (millions of recoverable pounds)

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Ore extracted and milled (metric tons per day):

Grasberg Block Cave underground mine 133,400 131,000 132,100 112,000

Deep Mill Level Zone underground mine 63,200 76,900 65,000 75,700

Big Gossan underground mine 8,500 8,100 8,400 7,800

Grasberg Block Cave 93,600 139,300

DMLZ 60,400 67,300

Big Gossan 6,600 9,000

Other adjustments 1,000 3,900

Total 161,600 219,500

207,400 193,000

Average ore grades:

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Gold 76.3 77.5

PT-FI’s consolidated copper sales volumes totaled 426 million pounds in third-quarter 2024, 430 million pounds in third-quarter 2023, 1.3 billion pounds for the first nine months of 2024 and 1.0 billion pounds for the first nine

months of 2023.

Higher sales volumes for the first nine months of 2024, compared to the 2023 period, primarily reflected higher ore grades and higher mining and milling rates.

PT-FI’s consolidated gold sales volumes of 554 thousand ounces in third-quarter 2024 were higher than third-quarter 2023 gold sales volumes of 395 thousand ounces, primarily reflecting timing of shipments, partly offset by lower production from lower ore grades.

PT-FI’s consolidated gold sales volumes of 1.5 million ounces for the first nine months of 2024 were higher than 1.2 million ounces for the first nine months of 2023, primarily reflecting higher mining and milling rates and timing of shipments.

Consolidated sales volumes from PT-FI are expected to approximate 1.65 billion pounds of copper and 1.8 million ounces of gold for the year 2024.

Consolidated copper and gold production volumes from PT-FI for the year 2024 are expected to exceed 2024 sales volumes, reflecting the deferral of approximately 85 million pounds of copper and 85 thousand ounces of gold associated with inventories held at PT-FI’s new downstream processing facilities expected to be sold as refined metal in 2025.

As expected, PTFI’s consolidated copper sales volumes of 290 million pounds and consolidated gold sales volumes of 125 thousand ounces in first-quarter 2025 were below first-quarter 2024 copper sales volumes of 493 million pounds and gold sales volumes of 564 thousand ounces, primarily reflecting a planned major maintenance project.

Lower gold sales volumes in first-quarter 2025, compared to first-quarter 2024 gold sales volumes, were also impacted by lower ore grades and the timing of shipments.

Consolidated sales volumes from PTFI are expected to approximate 1.6 billion pounds of copper and 1.6 million ounces of gold for the year 2025.

PTFI’s projected sales volumes in 2025 reflect reduced operating rates associated with planned major maintenance projects in its concentrating facilities.

Projected sales volumes are dependent on operational performance;

continuation of copper concentrate exports during the restoration period of PT-FI’s new smelter;

the ramp-up of PTFI’s new downstream processing facilities;

weather-related conditions;

and other factors detailed in the “Cautionary Statement” below.

Unit Net Cash (Credits) Costs.

We believe unit net cash (credits) costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations.

Unit Net Cash Costs (Credits).

We believe unit net cash costs (credits) per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations.

We use this measure for the same purpose and for monitoring operating performance by our mining operations.

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Gross Profit per Pound of Copper and per Ounce of Gold

The following table summarizes the unit net cash (credits) costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations.

Refer to “Product Revenues and Production Costs” for an explanation of “by-product” and “co-product” methods and a reconciliation of unit net cash credits per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Three Months Ended September 30,

The following table summarizes the unit net cash costs (credits) and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the three months ended March 31, 2025 and 2024.

Refer to “Product Revenues and Production Costs” for an explanation of “by-product” and “co-product” methods and a reconciliation of unit net cash costs (credits) per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Three Months Ended March 31,

By-Product Method Co-Product Method By-Product Method Co-Product Method

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Treatment charges 0.19 0.15 102 0.35 0.21 116

Export duties a

0.30 0.17 99 0.34 0.23 116

Export duties 0.19 0.14 102 0.32 0.19 104

Royalty on metals 0.23 0.17 144 0.23 0.15 81

Unit net cash (credits) costs (0.71) 1.54 915 0.44 1.53 773

Unit net cash costs (credits) 0.64 1.58 1,145 (0.12) 1.47 805

DD&A 0.64 0.49 343 0.68 0.41 224

Noncash and other costs, net 0.12 b

Noncash and other costs, net 0.34 a

0.25 179 0.05 b

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Gold sales (thousands of recoverable ounces) 125 564

Nine Months Ended September 30,

By-Product Method Co-Product Method By-Product Method Co-Product Method

Copper Gold Copper Gold

Revenues, excluding adjustments $ 4.24 $ 4.24 $ 2,362 $ 3.81 $ 3.81 $ 1,932

Site production and delivery, before net noncash and other costs shown below 1.64 0.98 542 1.71 1.07 542

Gold, silver and other by-product credits (2.90) — — (2.32) — —

Treatment charges 0.36 0.21 119 0.36 0.22 113

Export duties a

0.29 0.17 95 0.16 0.10 51

Royalty on metals 0.27 0.16 89 0.23 0.14 70

Unit net cash (credits) costs (0.34) 1.52 845 0.14 1.53 776

DD&A 0.73 0.44 243 0.69 0.43 216

Noncash and other costs, net 0.11 b,c

0.06 36 0.11 b,d

Total unit costs 0.50 2.02 1,124 0.94 2.03 1,028

Revenue adjustments, primarily for pricing on prior period open sales — — (3) 0.11 0.11 15

PT Smelting intercompany profit — — — 0.11 0.07 35

Gross profit per pound/ounce $ 3.74 $ 2.22 $ 1,235 $ 3.09 $ 1.96 $ 954

Copper sales (millions of recoverable pounds) 1,256 1,256 1,014 1,014

Gold sales (thousands of recoverable ounces) 1,474 1,153

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

Includes (i) charges totaling $0.09 per pound of copper in third-quarter 2024 and $0.06 per pound of copper for the first nine months of 2024 for operational readiness and start-up costs associated with PT-FI’s new downstream processing facilities and (ii) $0.01 per pound of copper in third-quarter 2024 and 2023 and $0.02 per pound of copper for the first nine months of 2024 and 2023 for feasibility and optimization studies.

Includes charges totaling $0.03 per pound of copper for the first nine months of 2024 for amounts capitalized in prior years associated with construction of PT-FI’s new downstream processing facilities.

Includes a charge totaling $0.05 per pound of copper for the first nine months of 2023 associated with a potential administrative fine.

PT-FI’s unit net cash credits (including gold, silver and other by-product credits) were $0.71 per pound of copper in third-quarter 2024 and $0.34 per pound of copper for the first nine months of 2024, and PT-FI’s unit net cash costs (net of gold, silver and other by-product credits) were $0.44 per pound of copper in third-quarter 2023 and $0.14 per pound of copper for the first nine months of 2023.

Unit net cash credits for the 2024 periods, compared to the 2023 periods, primarily reflect higher gold credits.

Additionally, PT-FI’s site production and delivery costs will vary with the volume of metals sold, including the ratio of copper and gold sales within a period.

Includes charges of $0.15 per pound of copper for operational readiness and startup costs associated with PTFI’s new downstream processing facilities, $0.08 per pound of copper related to the reversal of previously capitalized land lease costs at PTFI’s new downstream processing facilities, $0.08 per pound of copper for remediation costs related to the October 2024 fire incident at PTFI’s new smelter that were not offset by recovery under its construction insurance program and $0.02 per pound of copper for feasibility and optimization studies.

These charges were partly offset by a credit of $0.04 per pound of copper related to asset retirement obligation adjustments.

Includes charges of $0.03 per pound of copper for operational readiness and startup costs associated with PTFI’s new downstream processing facilities and $0.01 per pound of copper for feasibility and optimization studies.

These charges were partly offset by credits of $0.02 per pound of copper associated with adjustments to PTFI’s non-income tax provision.

A significant portion of PTFI’s costs are fixed and unit costs vary depending on volumes and other factors.

PTFI’s unit net cash costs (net of gold, silver and other by-product credits) of $0.64 per pound of copper in first-quarter 2025 were unfavorable compared to unit net cash credits (including gold, silver and other by-product credits) of $0.12 per pound of copper in first-quarter 2024, primarily reflecting the impact of lower copper and gold volumes.

Treatment charges vary with the volume of metals sold and the price of copper, and royalties vary with the volume of metals sold and the prices of copper and gold.

PT-FI’s royalties totaled $129 million in third-quarter 2024, $78 million in third-quarter 2023, $338 million for the first nine months of 2024 and $228 million for the first nine months of 2023.

Export duties totaled $129 million in third-quarter 2024, $147 million in third-quarter 2023, $360 million for the first nine months of 2024 and $165 million for the first nine months of 2023.

Refer to Note 7 for further discussion of PT-FI’s export duties.

Because certain assets are depreciated on a straight-line basis, PT-FI’s unit depreciation rate may vary with asset additions and the level of copper volumes and changes in copper and gold inventory.

PTFI’s royalties totaled $66 million in first-quarter 2025 and $118 million in first-quarter 2024.

Export duties are assessed on PTFI’s copper concentrate sales at a rate of 7.5% and totaled $55 million in first-quarter 2025 and $156 million in first-quarter 2024.

Because certain assets are depreciated on a straight-line basis, PTFI’s unit depreciation rate may vary with asset additions and the level of copper volumes and changes in copper and gold inventory.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods.

Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

PT Smelting’s intercompany profit for the first nine months of 2023 represents the change in the deferral of 39.5% of PT-FI’s profit on sales to PT Smelting before 2023.

Beginning in 2023, PT-FI’s commercial arrangement with PT Smelting changed to a tolling arrangement and there are no further sales from PT-FI to PT Smelting.

Refer to Note 1 for further discussion of PT-FI’s equity investment in PT Smelting.

Average unit net cash credits (including gold, silver and other by-product credits) for PT-FI are expected to approximate $0.23 per pound of copper for the year 2024, based on achievement of current sales volumes and cost estimates, and assuming an average price of $2,600 per ounce of gold in fourth-quarter 2024.

PT-FI’s average unit net cash credits for the year 2024 would change by approximately $0.03 per pound of copper for each $100 per ounce change in the average price of gold in fourth-quarter 2024.

PT-FI’s unit net cash credits for the year 2024 are dependent on operational performance;

continuation of copper concentrate exports during the restoration period of PT-FI’s new smelter;

For the remainder of 2025, PTFI’s copper and gold production and sales volumes are expected to increase, which is expected to result in a significant reduction to PTFI's average unit net cash costs (net of gold, silver and other by-product credits), compared to first-quarter 2025 levels.

Average unit net cash credits (including gold, silver and other by-product credits) for PTFI are expected to approximate $0.47 per pound of copper for the year 2025, based on achievement of current sales volumes and cost estimates, and assuming an average price of $3,000 per ounce of gold for the remainder of 2025.

PTFI’s average unit net cash credits for the year 2025 would change by approximately $0.09 per pound of copper for each $100 per ounce change in the average price of gold for the remainder of 2025.

PTFI’s projected production and sales volumes and unit net cash credits for the year 2025 are dependent on operational performance;

the ramp-up of PTFI’s new downstream processing facilities;

weather-related conditions;

timing of shipments;

and other factors.

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“Risk Factors” contained in Part I of our 2024 Form 10-K for further discussion of factors that could cause results to differ materially from projections.

Molybdenum Mines

We operate two wholly owned primary molybdenum operations in Colorado – the Climax open-pit mine and the Henderson underground mine.

The Climax and Henderson mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products.

The majority of the molybdenum concentrate produced at the Climax and Henderson mines, as well as from our North America copper mines and South America operations, is processed at our conversion facilities.

The majority of the molybdenum concentrate produced at the Climax and Henderson mines and at our U.S.

copper mines and South America operations, is processed at our conversion facilities.

Operating and Development Activities.

Production from the primary molybdenum operations totaled 6 million pounds of molybdenum in third-quarter 2024, 7 million pounds in third-quarter 2023, 21 million pounds for the first nine months of 2024 and 22 million pounds for the first nine months of 2023.

Refer to “Consolidated Results” for our consolidated molybdenum operating data, which includes sales of molybdenum produced at our primary molybdenum operations and from our North America copper mines and South America operations.

Production from the Molybdenum mines totaled 9 million pounds of molybdenum in first-quarter 2025 and 8 million pounds in first-quarter 2024.

Refer to “Consolidated Results” for our consolidated molybdenum operating data, which includes sales of molybdenum produced at our primary molybdenum operations and from our U.S.

copper mines and South America operations.

Refer to “Outlook” for projected consolidated molybdenum sales volumes and to “Markets” for a discussion of molybdenum prices.

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This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Average unit net cash costs for the primary molybdenum operations of $21.06 per pound of molybdenum in third-quarter 2024 and $18.59 per pound for the first nine months of 2024 were higher than average unit net cash costs of $18.07 per pound in third-quarter 2023 and $15.25 per pound for the first nine months of 2023, primarily reflecting higher costs for maintenance supplies and transitional contract labor and lower volumes.

Average unit net cash costs for the primary molybdenum operations are expected to approximate $17.55 per pound of molybdenum for the year 2024, based on achievement of current sales volumes and cost estimates.

Average unit net cash costs for our Molybdenum mines of $13.72 per pound of molybdenum in first-quarter 2025 were lower than average unit net cash costs of $15.80 per pound in first-quarter 2024, primarily reflecting higher volumes and lower contract labor costs.

Based on achievement of current sales volumes and cost estimates, average unit net cash costs for the Molybdenum mines are expected to increase to approximately $15.17 per pound of molybdenum for the year 2025, reflecting the impact of higher mine development costs.

Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

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Through our downstream integration, we are able to assure placement of a significant portion of our copper concentrate production.

We wholly own and operate the Miami smelter in Arizona, Atlantic Copper, and the El Paso refinery in Texas.

In June 2024, PT-FI substantially completed construction of its new smelter in Indonesia and commenced commissioning operations in third-quarter 2024.

On October 14, 2024, a fire occurred during commissioning and smelter start-up operations have been temporarily suspended pending remediation activities (for further discussion refer to “Operations – Indonesia – Downstream Processing Facilities”).

The PMR project was not impacted, and PT-FI expects to complete construction of the PMR by year-end 2024.

The new smelter will smelt and refine copper

concentrate from PT-FI and the PMR will process anode slimes from the new smelter and PT Smelting.

PT-FI also has a 66% (39.5% prior to June 30, 2024) ownership interest in PT Smelting, a copper smelter and refinery in Gresik, Indonesia (refer to Note 1).

Once its new downstream processing facilities are operational, PT-FI’s operations will be fully integrated and treatment charges reflecting the cost of smelting and refining operations will be recorded in production and delivery costs.

PTFI wholly owns and operates PTFI’s new downstream processing facilities in Eastern Java, Indonesia, and has a 66% ownership interest in PT Smelting (39.5% prior to June 30, 2024), which is operated by Mitsubishi Materials Corporation.

We wholly own and operate the Miami smelter in Arizona, the El Paso refinery in Texas, and Atlantic Copper smelter and refinery in Huelva, Spain.

PTFI’s new smelter will smelt and refine copper concentrate from PTFI and the PMR will process anode slimes from the new smelter and PT Smelting.

Once PTFI’s new downstream processing facilities are operational, PTFI’s operations will be fully integrated and treatment charges reflecting the cost of smelting and refining operations will be recorded in production and delivery costs.

PTFI recorded charges for operational readiness and startup costs associated with PTFI’s new downstream processing facilities totaling $44 million in first-quarter 2025 and $15 million in first-quarter 2024.

We estimate that operational readiness and startup costs associated with PTFI’s new downstream processing facilities will approximate $100 million for the year 2025.

The Miami smelter has been operating for over 100 years and has been upgraded numerous times during that period to implement new technologies, improve production and comply with air quality requirements.

We performed a major maintenance turnaround for the Miami smelter in first-quarter 2025 and incurred $73 million in maintenance charges and idle facility costs.

Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes.

During the first nine months of 2024, Atlantic Copper’s copper concentrate purchases included 27% from our copper mining operations and 73% from third parties.

In first-quarter 2025, Atlantic Copper’s copper concentrate purchases included 21% from our copper mining operations and 79% from third parties.

Atlantic Copper’s treatment charges, which consist of a base rate per pound of copper and per ounce of gold, are generally fixed and represent a cost to our mining operations and income to Atlantic Copper ( i.e.

, higher treatment charges benefit our Atlantic Copper operations).

Our North America copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery.

copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery.

We defer recognizing profits on sales from our mining operations to Atlantic Copper until final sales to third parties occur.

Our net deferred profits on our inventories at Atlantic Copper to be recognized in future periods’ operating income totaled $143 million ($44 million to net income attributable to common stock) at September 30, 2024.

Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to operating income totaling $114 million ($34 million to net income attributable to common stock) in first-quarter 2025 and $(17) million ($(5) million to net income attributable to common stock) in first-quarter 2024.

Our net deferred profits on our inventories at Atlantic Copper to be recognized in future periods’ operating income totaled $85 million ($33 million to net income attributable to common stock) at March 31, 2025.

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

In May 2024, the U.S.

Environmental Protection Agency (EPA) published a final rule updating the standards for hazardous air pollutant emissions from primary copper smelters.

We are evaluating this final rule to determine to what extent we would need to modify our processes and equipment and the costs involved, which could be significant.

We expect that this final rule will impact our Miami, Arizona smelter operations, which process a significant portion of the copper concentrate produced by our North America copper mines.

We have appealed the EPA’s final rule to the Court of Appeals for the D.C.

Circuit, and we have filed a petition for reconsideration to EPA, including updated information on cost and implementation of the final rule.

Refer to “Governmental Regulations – Environmental and Reclamation Matters” in Items 1 and 2.

“Business and Properties” contained in Part I of our 2023 Form 10-K for additional information on new and revised environmental regulatory requirements that may result in substantial increased costs for our business.

CAPITAL RESOURCES AND LIQUIDITY

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We expect to maintain a strong balance sheet and liquidity position as we focus on building long-term value in our business, executing our operating plans safely, responsibly and efficiently, and prudently managing costs and capital expenditures.

Based on current sales volume, cost and metal price estimates discussed in “Outlook,” our available cash and cash equivalents plus our projected consolidated operating cash flows of $6.8 billion for the year 2024 exceed our expected consolidated capital expenditures of $4.6 billion for the year 2024.

We have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next twelve months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable), near-term senior note maturities and any share or debt repurchases.

At September 30, 2024, we had $5.0 billion in consolidated cash and cash equivalents, and FCX, PT-FI and Cerro Verde have $3.0 billion, $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.

At September 30, 2024, we had $1.1 billion in current restricted cash and cash equivalents, including $1.0 billion associated with PT-FI's export proceeds temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the Indonesia government.

Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”) and based on current sales volume, cost and metal price estimates and planned capital expenditures discussed in “Outlook,” our available cash and cash equivalents plus our projected consolidated operating cash flows of $7.0 billion for the year 2025 exceed our expected consolidated capital expenditures of $5.0 billion.

Planned capital expenditures for major mining projects over the next few years are primarily associated with underground mine development in the Grasberg minerals district and potential expansion projects in the U.S.

At March 31, 2025, we had $4.4 billion in consolidated cash and cash equivalents ($4.6 billion including $0.3 billion of current restricted cash associated with a portion of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks), and FCX, PTFI and Cerro Verde have $3.0 billion, $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.

Financial Policy.

Our financial policy is aligned with our strategic objectives of maintaining a strong balance sheet, providing cash returns to shareholders and advancing opportunities for future growth.

The policy includes a base dividend and a performance-based payout framework, whereby up to 50% of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to us maintaining our net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding debt for PT-FI’s new downstream processing facilities).

Our Board of Directors (Board) reviews the structure of the performance-based payout framework at least annually.

At September 30, 2024, our net debt, excluding $3.2 billion of debt for PT-FI’s new downstream processing facilities, totaled $0.5 billion (which was net of $1.0 billion of current restricted cash associated with PT-FI’s export proceeds).

At March 31, 2025, our net debt, excluding $3.2 billion of debt for PTFI’s new downstream processing facilities, totaled $1.5 billion.

Refer to "Net Debt" for further discussion.

On September 25, 2024, our Board declared cash dividends totaling $0.15 per share on our 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 base and variable dividends on our common stock totaled $0.60 per share for 2024, comprised of a $0.30 per share base dividend and $0.30 per share variable dividend.

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

We acquired 1.2 million shares of our common stock in July 2024 for a total cost of $59 million ($50.48 average cost per share) bringing total purchases under our $5.0 billion share repurchase program to 49 million shares 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 the Board’s discretion.

On March 26, 2025, our Board declared cash dividends totaling $0.15 per share on our 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.

Based on current market conditions, the base and variable dividends on our common stock are anticipated to total $0.60 per share for 2025 (including the dividends paid on February 1, 2025, and May 1, 2025), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend.

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

Refer to Note 4 for further discussion.

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

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

Following is a summary of the U.S.

and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share and withholding taxes at September 30, 2024 (in billions):

and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share and withholding taxes at March 31, 2025 (in billions):

Cash at domestic companies $ 1.3

Cash at international operations 2.9 a

Cash at international operations 3.1

Total consolidated cash and cash equivalents 4.4

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Net cash available $ 2.8

Excludes $1.0 billion of current restricted cash associated with a portion 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.

Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayments, working capital or other cash needs.

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from cash balances and availability from our revolving credit facility.

We have not elected to permanently reinvest earnings from our foreign subsidiaries, and we have recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S.

We elected to not permanently reinvest earnings from our foreign subsidiaries, and we recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S.

From time to time, our foreign subsidiaries distribute earnings to the U.S.

through dividends that are subject to applicable withholding taxes and noncontrolling interests’ share.

At September 30, 2024, consolidated debt totaled $9.7 billion, with a weighted-average interest rate of 5.2%.

At March 31, 2025, consolidated debt totaled $9.4 billion, with a weighted-average interest rate of 5.2%.

Substantially all of our outstanding debt is fixed rate.

We have $0.7 billion in scheduled senior note maturities in November 2024, which we expect to redeem with cash on hand.

Our next senior note maturities are in 2027.

Our total debt has an average remaining duration of approximately 9 years.

Refer to Note 4 for further discussion.

Our total debt has an average remaining duration of approximately nine years.

Refer to Note 4 for further discussion of debt.

Operating Activities

We generated operating cash flows of $5.7 billion for the first nine months of 2024 and $4.0 billion for the first nine months of 2023.

Higher operating cash flows for the first nine months of 2024, compared with the first nine months of 2023, primarily reflects higher average realized copper and gold prices and higher gold sales volumes, as well as changes in accruals for international income taxes and other working capital changes related to PT-FI’s tolling arrangement with PT Smelting.

We generated operating cash flows of $1.1 billion (net of $0.3 billion of working capital and other uses) in first-quarter 2025 and $1.9 billion (net of $0.1 billion of working capital and other uses) in first-quarter 2024.

Lower operating cash flows in first-quarter 2025, compared with first-quarter 2024, primarily reflect lower copper and gold sales volumes impacted by a planned major maintenance project in Indonesia.

Lower gold sales volumes also reflect lower ore grades and the timing of shipments.

These lower volumes were partly offset by the impact of higher average realized copper and gold prices.

Refer to "Consolidated Results" and "Operations" for further discussion.

Investing Activities

Capital Expenditures.

Capital expenditures, including capitalized interest, totaled $3.6 billion for the first nine months of 2024 and $3.5 billion for the first nine months of 2023, including amounts for major mining projects ($1.3 billion for the first nine months of 2024 and $1.2 billion for the first nine months of 2023), primarily associated with underground development activities in the Grasberg minerals district, and for PT-FI’s new downstream processing facilities ($1.0 billion for the first nine months of 2024 and $1.3 billion for the first nine months of 2023).

Acquisition of additional ownership interest in Cerro Verde.

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

Loans to PT Smelting for Expansion.

PT-FI made loans to PT Smelting totaling $28 million for the first nine months of 2024 and $109 million for the first nine months of 2023 to fund PT Smelting’s expansion project.

Capital expenditures, including capitalized interest, totaled $1.2 billion in first-quarter 2025 and $1.3 billion in first-quarter 2024.

Capital expenditures include amounts for major mining projects ($0.6 billion in first-quarter 2025 and $0.4 billion in first quarter 2024), primarily associated with underground development activities in the Grasberg minerals district, and for PTFI’s new downstream processing facilities ($0.2 billion in first-quarter 2025 and $0.5 billion in first-quarter 2024.)

Financing Activities

Debt Transactions.

Net proceeds from debt totaled $249 million for the first nine months of 2024, primarily related to borrowings under the PT-FI revolving credit facility that were used to fund capital expenditures for PT-FI’s new downstream processing facilities.

Net repayments of debt totaled $1.2 billion for the first nine months of 2023, including the repayment of our 3.875% Senior Notes that matured in March 2023 totaling $996 million and open-market purchases of senior notes totaling $221 million.

Net proceeds from debt totaled $452 million in first-quarter 2025, primarily related to short-term lines of credit at Atlantic Copper.

Cash Dividends on Common Stock.

We paid cash dividends on our common stock totaling $0.6 billion during each of the first nine months of 2024 and 2023.

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

We paid cash dividends on our common stock totaling $0.2 billion in each of first-quarter 2025 and first-quarter 2024.

Refer to Note 4, Item 1A.

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Cash Dividends and Distributions Paid to Noncontrolling Interests.

Cash dividends and distributions paid to noncontrolling interests at our international operations totaled $1.3 billion (including $1.1 billion from PT-FI) for the first nine months of 2024 and $0.4 billion (including $0.2 billion from PT-FI) for the first nine months of 2023.

There were no cash dividends and distributions paid to noncontrolling interests at our international operations in first-quarter 2025.

Cash dividends and distributions paid to noncontrolling interests at PTFI totaled $0.1 billion in first-quarter 2024.

Cash dividends and distributions to noncontrolling interests vary based on the operating results and cash requirements of our consolidated subsidiaries.

Treasury Stock Purchases.

In July 2024, we acquired 1.2 million shares of our common stock for a total cost of $59 million.

In first-quarter 2025, we acquired 1.4 million shares of our common stock for a total cost of $55 million.

Refer to Note 4 for further discussion.

CONTRACTUAL OBLIGATIONS

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CONTINGENCIES

Environmental Obligations and AROs

Environmental Obligations and Asset Retirement Obligations (ARO)

Our current and historical operating activities are subject to various environmental laws and regulations.

We perform a comprehensive annual review of our environmental obligations and AROs and also review changes in facts and circumstances associated with these obligations at least quarterly.

As discussed in Note 7, we recorded net charges 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.

In addition, we recorded net ARO additions totaling $0.4 billion in the first nine months of 2024, including $0.3 billion at mining operations primarily associated with revised closure plans and cost estimates to reflect our commitment to the Global Industry Standard on Tailings Management and $0.1 billion at our oil and gas properties primarily associated with assumed abandonment obligations resulting from bankruptcies of other companies.

There have been no significant changes to our environmental liabilities and AROs since December 31, 2024.

Refer to Note 10 of our 2024 Form 10-K for further information about contingencies associated with environmental matters and AROs.

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We have not changed any of these policies from those previously disclosed in that report.

We believe that net debt provides investors with information related to the performance-based payout framework in our financial policy, which requires us to maintain our net debt at a level not to exceed the net debt target of $3 billion to $4 billion, excluding debt for PT-FI’s new downstream processing facilities.

We define net debt as consolidated debt less (i) consolidated cash and cash equivalents and (ii) current restricted cash associated with PT-FI's export proceeds.

We believe that net debt provides investors with information related to the performance-based payout framework in our financial policy, which requires us to maintain our net debt at a level not to exceed the net debt target of $3 billion to $4 billion (excluding project debt for PTFI’s new downstream processing facilities).

We define net debt as consolidated debt less (i) consolidated cash and cash equivalents and (ii) current restricted cash associated with a portion of PTFI's export proceeds.

This information differs from consolidated debt determined in accordance with U.S.

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Our net debt, which may not be comparable to similarly titled measures reported by other companies, follows (in millions):

As of September 30, 2024

As of March 31, 2025

Current portion of debt $ 495

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consolidated cash and cash equivalents 4,385

current restricted cash associated with PT-FI’s export proceeds 964 a

current restricted cash associated with PTFI’s export proceeds 252 a

FCX net debt 4,767

debt for PT-FI’s new downstream processing facilities 3,232 b

FCX net debt, excluding debt for PT-FI’s new downstream processing facilities $ 483

In accordance with a regulation issued by the Indonesia government, 30% of PT-FI’s export proceeds are being temporarily deposited into Indonesia banks for a period of 90 days before withdrawal and are presented as current restricted cash and cash equivalents in our consolidated balance sheet.

As the 90-day holding period is the only restriction on the cash, we have included such amount in the calculation of net debt.

Represents PT-FI’s senior notes and $250 million of borrowings under PT-FI’s revolving credit facility.

debt for PTFI’s new downstream processing facilities 3,233 b

FCX net debt, excluding debt for PTFI’s new downstream processing facilities $ 1,534

Represents a portion of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation.

As the 90-day holding period is the only restriction on the cash, we included such amount in the calculation of net debt.

Refer to Note 7 for further discussion.

Represents PTFI’s senior notes and $250 million of borrowings under PTFI’s revolving credit facility.

PRODUCT REVENUES AND PRODUCTION COSTS

We believe unit net cash costs (credits) per pound of copper and molybdenum are measures that provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations.

Mining Product Revenues and Unit Net Cash Costs (Credits)

We believe unit net cash costs (credits) per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations.

We use this measure for the same purpose and for monitoring operating performance by our mining operations.

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Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period sales.

Noncash and other costs, net which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as accretion of AROs, inventory write-offs and adjustments, stock-based compensation costs, long-lived asset impairments, idle facility costs, feasibility and optimization study costs, restructuring and/or unusual charges.

Noncash and other costs, net which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as ARO accretion and other adjustments, inventory write-offs and adjustments, stock-based compensation costs, long-lived asset impairments, idle facility costs, feasibility and optimization study costs, operational readiness and startup costs, restructuring and/or unusual charges.

As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method.

The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements.

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended September 30, 2024

United States Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2025

(In millions) By-Product Co-Product Method

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Eliminations and other 19 23 —

North America copper mines 1,591 1,303 109

copper mines 1,630 1,212 124

Other mining d

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As reported in our consolidated financial statements $ 5,728 $ 3,756 $ 466

Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

Reflects sales of molybdenum produced by certain of the U.S.

copper mines to our molybdenum sales company at market-based pricing.

Includes gold and silver product revenues and production costs.

Includes charges totaling $14 million ($0.05 per pound of copper) for feasibility and optimization studies.

Represents the combined total for our other segments as presented in Note 8.

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended September 30, 2023

Represents the combined total for our other mining operations as presented in Note 8.

United States Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2024

(In millions) By-Product Co-Product Method

Method Copper Molybdenum a

Revenues, excluding adjustments $ 1,435 $ 1,435 $ 164 $ 43 $ 1,642

Revenues $ 1,316 $ 1,316 $ 136 $ 39 $ 1,491

Site production and delivery, before net noncash

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Total costs 1,146 1,157 129 35 1,321

Other revenue adjustments, primarily for pricing

on prior period open sales 1 1 — — 1

Gross profit $ 170 $ 159 $ 7 $ 4 $ 170

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Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments $ 3.86 $ 3.86 $ 22.01

Revenues $ 3.96 $ 3.96 $ 18.49

Site production and delivery, before net noncash

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3.45 3.48 17.56

Other revenue adjustments, primarily for pricing

on prior period open sales — — —

Gross profit per pound $ 0.51 $ 0.48 $ 0.93

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Noncash and other costs, net — 45 —

Other revenue adjustments, primarily for pricing

on prior period open sales 1 — —

Eliminations and other 14 17 1

North America copper mines 1,657 1,279 110

Other mining d

5,764 3,865 405

Corporate, other & eliminations (1,597) (1,591) 18

As reported in our consolidated financial statements $ 5,824 $ 3,553 $ 533

Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

Includes gold and silver product revenues and production costs.

Includes charges totaling $28 million ($0.08 per pound of copper) for feasibility and optimization studies.

Represents the combined total for our other segments as presented in Note 8.

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30, 2024

(In millions) By-Product Co-Product Method

Method Copper Molybdenum a

Revenues, excluding adjustments $ 4,048 $ 4,048 $ 433 $ 127 $ 4,608

Site production and delivery, before net noncash

and other costs shown below 3,250 2,928 358 104 3,390

By-product credits (420) — — — —

Treatment charges 125 120 — 5 125

Net cash costs 2,955 3,048 358 109 3,515

DD&A 327 295 26 6 327

Noncash and other costs, net 133 c

Total costs 3,415 3,466 393 116 3,975

Other revenue adjustments, primarily for pricing

on prior period open sales — — — — —

Gross profit $ 633 $ 582 $ 40 $ 11 $ 633

Copper sales (millions of recoverable pounds) 943 943

Molybdenum sales (millions of recoverable pounds) a

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments $ 4.29 $ 4.29 $ 19.97

Site production and delivery, before net noncash

and other costs shown below 3.45 3.10 16.52

By-product credits (0.45) — —

Treatment charges 0.13 0.13 —

Unit net cash costs 3.13 3.23 16.52

DD&A 0.35 0.32 1.23

Noncash and other costs, net 0.14 c

Total unit costs 3.62 3.68 18.14

Other revenue adjustments, primarily for pricing

on prior period open sales — — —

Gross profit per pound $ 0.67 $ 0.61 $ 1.83

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 4,608 $ 3,390 $ 327

Treatment charges (4) 121 —

Noncash and other costs, net — 133 —

Eliminations and other 25 34 —

North America copper mines 4,629 3,678 327

Other mining d

19,565 12,298 1,330

Corporate, other & eliminations (4,459) (4,180) 47

As reported in our consolidated financial statements $ 19,735 $ 11,796 $ 1,704

Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

Includes gold and silver product revenues and production costs.

Includes charges totaling $48 million ($0.05 per pound of copper) for feasibility and optimization studies.

Represents the combined total for our other segments as presented in Note 8.

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30, 2023

(In millions) By-Product Co-Product Method

Method Copper Molybdenum a

Revenues, excluding adjustments $ 4,159

$ 4,159 $ 576 $ 129 $ 4,864

Site production and delivery, before net noncash

and other costs shown below 3,097 2,729 417 113 3,259

By-product credits (543) — — — —

Treatment charges 126 120 — 6 126

Net cash costs 2,680 2,849 417 119 3,385

DD&A 312 276 30 6 312

Noncash and other costs, net 180 c

Total costs 3,172 3,282 467 128 3,877

Other revenue adjustments, primarily for pricing

on prior period open sales 13 13 — — 13

Gross profit $ 1,000 $ 890 $ 109 $ 1 $ 1,000

Copper sales (millions of recoverable pounds) 1,048 1,048

Molybdenum sales (millions of recoverable pounds) a

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments $ 3.97

$ 3.97 $ 24.41

Site production and delivery, before net noncash

and other costs shown below 2.96 2.60 17.66

By-product credits (0.52) — —

Treatment charges 0.12 0.12 —

Unit net cash costs 2.56 2.72 17.66

DD&A 0.30 0.26 1.27

Noncash and other costs, net 0.17 c

Total unit costs 3.03 3.13 19.80

Other revenue adjustments, primarily for pricing

on prior period open sales 0.01 0.01 —

Gross profit per pound $ 0.95 $ 0.85 $ 4.61

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 4,864 $ 3,259 $ 312

Treatment charges (9) 117 —

Noncash and other costs, net — 180 —

Other revenue adjustments, primarily for pricing

on prior period open sales 13 — —

Eliminations and other 49 52 —

North America copper mines 4,917 3,608 312

copper mines 1,502 1,224 112

Other mining d

2 unchanged sentences

As reported in our consolidated financial statements $ 6,321 $ 3,844 $ 595

Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

Reflects sales of molybdenum produced by certain of the U.S.

copper mines to our molybdenum sales company at market-based pricing.

Includes gold and silver product revenues and production costs.

Includes charges totaling $81 million ($0.08 per pound of copper) for feasibility and optimization studies.

Represents the combined total for our other segments as presented in Note 8.

South America Operations Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended September 30, 2024

(In millions) By-Product Co-Product Method

Method Copper Other a

Revenues, excluding adjustments $ 1,257 $ 1,257 $ 122 $ 1,379

Site production and delivery, before net noncash

and other costs shown below 776 b

By-product credits (109) — — —

Treatment charges 45 45 — 45

Royalty on metals 2 2 — 2

Net cash costs 714 758 78 836

DD&A 109 99 10 109

Noncash and other costs, net 28 c

Total costs 851 885 88 973

Other revenue adjustments, primarily for pricing

on prior period open sales (18) (18) — (18)

Gross profit $ 388 $ 354 $ 34 $ 388

Copper sales (millions of recoverable pounds) 293 293

Gross profit per pound of copper:

Revenues, excluding adjustments $ 4.29 $ 4.29

Site production and delivery, before net noncash

and other costs shown below 2.65 b

By-product credits (0.37) —

Treatment charges 0.15 0.15

Royalty on metals 0.01 0.01

Unit net cash costs 2.44 2.59

DD&A 0.37 0.34

Noncash and other costs, net 0.10 c

Total unit costs 2.91 3.02

Other revenue adjustments, primarily for pricing

on prior period open sales (0.06) (0.06)

Gross profit per pound $ 1.32 $ 1.21

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 1,379 $ 789 $ 109

Treatment charges (45) — —

Royalty on metals (2) — —

Noncash and other costs, net — 28 —

Other revenue adjustments, primarily for pricing

on prior period open sales (18) — —

Eliminations and other 2 — 1

South America operations 1,316 817 110

Other mining d

7,041 4,677 476

Corporate, other & eliminations (1,567) (1,417) 14

As reported in our consolidated financial statements $ 6,790 $ 4,077 $ 600

Includes silver sales of 0.9 million ounces ($30.59 per ounce average realized price).

Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

Includes nonrecurring labor-related charges totaling $34 million ($0.12 per pound of copper) at Cerro Verde associated with the new CLAs with its two unions.

Includes charges totaling $15 million ($0.05 per pound of copper) for feasibility studies.

Represents the combined total for our other segments as presented in Note 8.

Represents the combined total for our other mining operations as presented in Note 8.

South America Operations Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended September 30, 2023

Three Months Ended March 31, 2025

(In millions) By-Product Co-Product Method

44 unchanged sentences

Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

Includes charges totaling $11 million ($0.03 per pound of copper) for feasibility studies.

Represents the combined total for our other segments as presented in Note 8.

South America Operations Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30, 2024

(In millions) By-Product Co-Product Method

Method Copper Other a

Revenues, excluding adjustments $ 3,737 $ 3,737 $ 342 $ 4,079

Site production and delivery, before net noncash

and other costs shown below 2,347 b

2,169 217 2,386

By-product credits (302) — — —

Treatment charges 144 144 — 144

Royalty on metals 6 5 1 6

Net cash costs 2,195 2,318 218 2,536

DD&A 331 303 28 331

Noncash and other costs, net 66 c

Total costs 2,592 2,685 248 2,933

Other revenue adjustments, primarily for pricing

on prior period open sales 33 33 (1) 32

Gross profit $ 1,178 $ 1,085 $ 93 $ 1,178

Copper sales (millions of recoverable pounds) 879 879

Gross profit per pound of copper:

Revenues, excluding adjustments $ 4.25 $ 4.25

Site production and delivery, before net noncash

and other costs shown below 2.67 b

By-product credits (0.34) —

Treatment charges 0.16 0.16

Royalty on metals 0.01 0.01

Unit net cash costs 2.50 2.64

DD&A 0.38 0.35

Noncash and other costs, net 0.07 c

Total unit costs 2.95 3.06

Other revenue adjustments, primarily for pricing

on prior period open sales 0.04 0.04

Gross profit per pound $ 1.34 $ 1.23

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 4,079 $ 2,386 $ 331

Treatment charges (144) — —

Royalty on metals (6) — —

Noncash and other costs, net — 66 —

Other revenue adjustments, primarily for pricing

on prior period open sales 32 — —

Eliminations and other 2 (2) 1

South America operations 3,963 2,450 332

Other mining d

20,231 13,526 1,325

Corporate, other & eliminations (4,459) (4,180) 47

As reported in our consolidated financial statements $ 19,735 $ 11,796 $ 1,704

Includes silver sales of 2.7 million ounces ($29.18 per ounce average realized price).

Also reflects sales of molybdenum produced by Cerro Verde to FCX’s molybdenum sales company at market-based pricing.

Includes nonrecurring labor-related charges totaling $99 million ($0.11 per pound of copper) at Cerro Verde associated with the new CLAs with its two unions.

Includes charges totaling $41 million ($0.05 per pound of copper) for feasibility studies.

Represents the combined total for our other segments as presented in Note 8.

Includes charges totaling $15 million ($0.05 per pound of copper) for feasibility and optimization studies.

Represents the combined total for our other mining operations as presented in Note 8.

South America Operations Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

(In millions) By-Product Co-Product Method

45 unchanged sentences

Includes charges totaling $11 million ($0.04 per pound of copper) for feasibility studies.

Represents the combined total for our other segments as presented in Note 8.

Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs

Three Months Ended September 30, 2024

(In millions) Co-Product Method

By-Product Method Copper Gold Silver & Other a

Revenues, excluding adjustments $ 1,826 $ 1,826 $ 1,421 $ 68 $ 3,315

Site production and delivery, before net noncash

and other costs shown below 774 426 332 16 774

Gold, silver and other by-product credits (1,493) — — — —

Treatment charges 157 87 67 3 157

Export duties 129 71 55 3 129

Royalty on metals 129 74 53 2 129

Net cash (credits) costs (304) 658 507 24 1,189

DD&A 340 187 146 7 340

Noncash and other costs, net 52 b

Total costs 88 874 675 32 1,581

Other revenue adjustments, primarily for pricing

on prior period open sales (14) (14) 4 — (10)

Gross profit $ 1,724 $ 938 $ 750 $ 36 $ 1,724

Copper sales (millions of recoverable pounds) 426 426

Gold sales (thousands of recoverable ounces) 554

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments $ 4.29 $ 4.29 $ 2,569

Site production and delivery, before net noncash

and other costs shown below 1.82 1.00 599

Gold, silver and other by-product credits (3.50) — —

Treatment charges 0.37 0.20 122

Export duties 0.30 0.17 99

Royalty on metals 0.30 0.17 95

Unit net cash (credits) costs (0.71) 1.54 915

DD&A 0.80 0.44 263

Noncash and other costs, net 0.12 b

Total unit costs 0.21 2.05 1,219

Other revenue adjustments, primarily for pricing

on prior period open sales (0.03) (0.03) 6

Gross profit per pound/ounce $ 4.05 $ 2.21 $ 1,356

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 3,315 $ 774 $ 340

Treatment charges (65) 92 c

Export duties (129) — —

Royalty on metals (129) — —

Noncash and other costs, net — 52 —

Other revenue adjustments, primarily for pricing

on prior period open sales (10) — —

Indonesia operations 2,982 918 340

Other mining d

5,375 4,576 246

Corporate, other & eliminations (1,567) (1,417) 14

As reported in our consolidated financial statements $ 6,790 $ 4,077 $ 600

Includes silver sales of 2.1 million ounces ($30.11 per ounce average realized price).

Includes charges totaling $39 million ($0.09 per pound of copper) for operational readiness and start-up costs associated with PT-FI’s new downstream processing facilities, and $5 million ($0.01 per pound of copper) for feasibility and optimization studies.

Represents tolling costs paid to PT Smelting.

Represents the combined total for our other segments as presented in Note 8.

Represents the combined total for our other mining operations as presented in Note 8.

Indonesia Operations Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended September 30, 2023

Three Months Ended March 31, 2025

(In millions) Co-Product Method

47 unchanged sentences

Includes silver sales of 0.4 million ounces ($34.05 per ounce average realized price).

Includes charges totaling $3 million ($0.01 per pound of copper) for feasibility and optimization studies.

Primarily represents tolling costs paid to PT Smelting.

Represents the combined total for our other segments as presented in Note 8.

Includes charges totaling $44 million ($0.15 per pound of copper) for operational readiness and startup costs associated with PTFI’s new downstream processing facilities, $24 million ($0.08 per pound of copper) related to the reversal of previously capitalized land lease costs at PTFI’s new downstream processing facilities, $23 million ($0.08 per pound of copper) of remediation costs for PTFI’s new smelter that were not offset by recovery under construction insurance programs and $6 million ($0.02 per pound of copper) for feasibility and optimization studies.

These charges were partly offset by a credit of $11 million ($0.04 per pound of copper) related to ARO adjustments.

Represents tolling costs paid to PT Smelting.

Represents the combined total for our other mining operations as presented in Note 8.

Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2024

(In millions) Co-Product Method

40 unchanged sentences

on prior period open sales (15) — —

Indonesia operations 8,075 2,451 923

Other mining d

16,119 13,525 734

Corporate, other & eliminations (4,459) (4,180) 47

As reported in our consolidated financial statements $ 19,735 $ 11,796 $ 1,704

Includes silver sales of 5.5 million ounces ($28.01 per ounce average realized price).

Includes charges totaling (i) $74 million ($0.06 per pound of copper) for operational readiness and start-up costs associated with PT-FI’s new downstream processing facilities, (ii) $34 million ($0.03 per pound of copper) related to amounts capitalized in prior years associated with the construction of PT-FI’s new downstream processing facilities, and (iii) $22 million ($0.02 per pound of copper) for feasibility and optimization studies.

Represents tolling costs paid to PT Smelting.

Represents the combined total for our other segments as presented in Note 8.

Indonesia Operations Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30, 2023

(In millions) Co-Product Method

By-Product Method Copper Gold Silver & Other a

Revenues, excluding adjustments $ 3,860 $ 3,860 $ 2,227 $ 106 $ 6,193

Site production and delivery, before net noncash

and other costs shown below 1,736

1,082 624 30 1,736

Gold, silver and other by-product credits (2,350) — — — —

Treatment charges 362 226 130 6 362

Export duties 165 103 59 3 165

Royalty on metals 228 144 81 3 228

Net cash costs 141 1,555 894 42 2,491

DD&A 694 433 249 12 694

Noncash and other costs, net 115 b

Total costs 950 2,059 1,185 56 3,300

Other revenue adjustments, primarily for pricing

on prior period open sales 114 114 18 (1) 131

PT Smelting intercompany profit 112 70 40 2 112

Gross profit $ 3,136 $ 1,985 $ 1,100 $ 51 $ 3,136

Copper sales (millions of recoverable pounds) 1,014 1,014

Gold sales (thousands of recoverable ounces) 1,153

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments $ 3.81 $ 3.81 $ 1,932

Site production and delivery, before net noncash

and other costs shown below 1.71 1.07 542

Gold, silver and other by-product credits (2.32) — —

Treatment charges 0.36 0.22 113

Export duties 0.16 0.10 51

Royalty on metals 0.23 0.14 70

Unit net cash costs 0.14 1.53 776

DD&A 0.69 0.43 216

Noncash and other costs, net 0.11 b

Total unit costs 0.94 2.03 1,028

Other revenue adjustments, primarily for pricing

on prior period open sales 0.11 0.11 15

PT Smelting intercompany profit 0.11 0.07 35

Gross profit per pound/ounce $ 3.09 $ 1.96 $ 954

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 6,193 $ 1,736 $ 694

Treatment charges (231) 131 c

Export duties (165) — —

Royalty on metals (228) — —

Noncash and other costs, net — 115 —

Other revenue adjustments, primarily for pricing

on prior period open sales 131 — —

PT Smelting intercompany profit — (112) —

Eliminations and other — 1 —

5 unchanged sentences

Includes silver sales of 2.1 million ounces ($23.90 per ounce average realized price).

Includes a charge of $55 million ($0.05 per pound of copper) associated with a potential administrative fine and $22 million ($0.02 per pound of copper) for feasibility and optimization studies.

Primarily represents tolling costs paid to PT Smelting.

Represents the combined total for our other segments as presented in Note 8.

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended September 30,

(In millions) 2024 2023

Revenues, excluding adjustments a

Site production and delivery, before net noncash

and other costs shown below 131 116

Treatment charges and other 6 6

Net cash costs 137 122

Noncash and other costs, net 9

Total costs 165 140

Gross (loss) profit $ (27) $ 13

Molybdenum sales (millions of recoverable pounds) a

Gross (loss) profit per pound of molybdenum:

Revenues, excluding adjustments a

$ 21.20 $ 22.58

Site production and delivery, before net noncash

and other costs shown below 20.15 17.20

Treatment charges and other 0.91 0.87

Unit net cash costs 21.06 18.07

DD&A 2.85 2.13

Noncash and other costs, net 1.46

Total unit costs 25.37 20.73

Gross (loss) profit per pound $ (4.17) $ 1.85

Reconciliation to Amounts Reported

Three Months Ended September 30, 2024 Revenues and Delivery DD&A

Totals presented above $ 138 $ 131 $ 19

Treatment charges and other (6) — —

Noncash and other costs, net — 9 —

Molybdenum mines 132 140 19

Other mining b

8,225 5,354 567

Corporate, other & eliminations c

(1,567) (1,417) 14

As reported in our consolidated financial statements $ 6,790 $ 4,077 $ 600

Three Months Ended September 30, 2023

Totals presented above $ 153 $ 116 $ 14

Treatment charges and other (6) — —

Noncash and other costs, net — 4 —

Molybdenum mines 147 120 14

Other mining b

7,274 5,024 501

Corporate, other & eliminations c

(1,597) (1,591) 18

As reported in our consolidated financial statements $ 5,824 $ 3,553 $ 533

Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing.

On a consolidated basis, realizations are based on the actual contract terms for sales to third parties;

as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

Represents the combined total for our other segments as presented in Note 8.

Includes amounts associated with our 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 charges totaling $15 million ($0.03 per pound of copper) for operational readiness and startup costs associated with PTFI’s new downstream processing facilities and $7 million ($0.01 per pound of copper) for feasibility and optimization studies.

These charges were partly offset by credits of $8 million ($0.02 per pound of copper) associated with adjustments to PTFI’s non-income tax provision.

Represents tolling costs paid to PT Smelting.

Represents the combined total for our other mining operations as presented in Note 8.

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30,

Three Months Ended March 31,

(In millions) 2025 2024

6 unchanged sentences

Total costs 157 142

Gross (loss) profit $ (29) $ 151

Gross profit $ 29 $ 10

Molybdenum sales (millions of recoverable pounds) a

Gross (loss) profit per pound of molybdenum:

Gross profit per pound of molybdenum:

Revenues, excluding adjustments a

7 unchanged sentences

Total unit costs 17.17 18.21

Gross (loss) profit per pound $ (1.38) $ 7.05

Gross profit per pound $ 3.15 $ 1.26

Reconciliation to Amounts Reported

Nine Months Ended September 30, 2024 Revenues and Delivery DD&A

Three Months Ended March 31, 2025 Revenues and Delivery DD&A

Totals presented above $ 186 $ 116 $ 26

4 unchanged sentences

6,963 4,934 429

Corporate, other & eliminations c

(4,459) (4,180) 47

Corporate, other & eliminations (1,412) (1,300) 11

As reported in our consolidated financial statements $ 5,728 $ 3,756 $ 466

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Totals presented above $ 152 $ 116 $ 16

4 unchanged sentences

7,635 4,995 563

Corporate, other & eliminations c

(4,799) (4,647) 50

Corporate, other & eliminations (1,459) (1,270) 16

As reported in our consolidated financial statements $ 6,321 $ 3,844 $ 595

2 unchanged sentences

as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

Represents the combined total for our other segments as presented in Note 8.

Represents the combined total for our other mining operations as presented in Note 8.

Also includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the U.S.

copper mines and South America operations.

CAUTIONARY STATEMENT

Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance, operations and projects.

Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to business outlook, strategy, goals or targets;

global market conditions;

Forward-looking statements are all statements other than statements of historical facts, such as plans, projections or expectations relating to business outlook, strategy, goals or targets, and the underlying assumptions and estimated impacts on our business and stakeholders related thereto;

global market conditions, including trade policies;

ore grades and milling rates;

3 unchanged sentences

operating plans, including mine sequencing;

PT-FI’s commissioning, remediation, including expected costs, insurance recovery and timing, and ramp up of its new smelter and completion and full production at the PMR;

potential extension of PT-FI’s IUPK beyond 2041;

export licenses, export duties and export volumes, including the ability to continue exports of copper concentrates in Indonesia until full ramp-up is achieved at PT-FI’s new downstream processing facilities, including the ability to increase the permitted export quota for 2024;

PTFI’s remediation, commissioning and full ramp-up of its new smelter and full production and ramp-up at the PMR;

potential extension of PTFI’s IUPK beyond 2041;

export licenses, export duties and export volumes, including PTFI’s ability to continue exports of copper concentrate until full ramp-up is achieved at its new smelter in Indonesia;

timing of shipments of inventoried production;

our commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks;

execution of our energy and climate strategies and the underlying assumptions and estimated impacts on our business and stakeholders related thereto;

achievement of 2030 climate targets and 2050 net zero aspiration;

our sustainability-related commitments and targets;

our overarching commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks;

achievement of our 2030 climate targets and our 2050 net zero aspiration;

improvements in operating procedures and technology innovations and applications;

13 unchanged sentences

Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities we produce, primarily copper and gold;

PT-FI’s ability to continue to export and sell or inventory copper concentrates and anode slimes through remediation or completion, as applicable, and full ramp-up of its new downstream processing facilities;

changes in export duties;

PTFI’s ability to export and sell or inventory copper concentrates through remediation and full ramp-up of its new smelter in Indonesia;

changes in export duties and tariff rates;

completion of remediation activities and achieving full ramp-up of the new smelter in Indonesia;

completion and full production at the PMR;

full production and ramp-up at the PMR;

production rates;

1 unchanged sentence

price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services;

changes in our cash requirements, financial position, financing or investment plans;

changes in general market, economic, geopolitical, regulatory or industry conditions;

changes in cash requirements, financial position, financing or investment plans;

changes in general market, economic, geopolitical, regulatory or industry conditions, including market volatility regarding trade policies and tariff uncertainty;

reductions in liquidity and access to capital;

7 unchanged sentences

potential impairment of long-lived mining assets;

satisfaction of requirements in accordance with PT-FI's IUPK to extend mining rights from 2031 through 2041;

process relating to the extension of PT-FI’s IUPK beyond 2041;

satisfaction of requirements in accordance with PTFI’s IUPK to extend mining rights from 2031 through 2041;

process relating to the extension of PTFI’s IUPK beyond 2041;

cybersecurity risks;

4 unchanged sentences

environmental risks, including availability of secure water supplies;

litigation results;

impacts, expenses or results from litigation or investigations;

tailings management;

our ability to comply with our responsible production commitments under specific frameworks;

and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” contained in Part I, Item 1A.

our ability to comply with our responsible production commitments under specific frameworks and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” contained in Part I, Item 1A.

of our 2024 Form 10-K.

which we cannot control, and production volumes and costs or technological solutions and innovations, some aspects of which we may not be able to control.

Further, we may make changes to our business plans that could affect our results.

We undertake no obligation to update any forward-looking statements, which speak only as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes.

Investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs or technological solutions and innovations, some aspects of which we may not be able to control.

Further, we may make changes to our business plans that could

affect our results.

We undertake no obligation to update any forward-looking statements, which are as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes.

This report on Form 10-Q also contains measures such as net debt and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S.

Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash (Credits) Costs” for further discussion of unit net cash costs (credits) associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs (credits) by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.

Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents, and current restricted cash associated with PT-FI’s export proceeds to net debt.

Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash Costs (Credits)” for further discussion of unit net cash costs (credits) associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs (credits) by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.

Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents, and current restricted cash associated with PTFI’s export proceeds to net debt.

For forward-looking unit net cash costs (credits) per pound of copper and molybdenum measures, we are unable to provide a reconciliation to the most comparable GAAP measure without unreasonable effort because estimating such GAAP measures and providing a meaningful reconciliation is extremely difficult and requires a level of precision that is unavailable for these future periods, and the information needed to reconcile these measures is dependent upon future events, many of which are outside of our control as described above.

1 unchanged sentence

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What changed 10-Q

Item 2. Management’s Discussion and Analysis