What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-08 · 767 added, 339 removed, 873 unchanged (56% of the section changed)

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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 committed to producing metals safely, efficiently and responsibly, while striving to improve efficiencies and leverage new technologies to drive better performance and grow production more quickly with lower capital intensity.

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

We achieved a major milestone during the second quarter with the startup of PT Freeport Indonesia’s (PTFI) new large-scale copper smelter in Eastern Java, Indonesia, slightly ahead of schedule following the October 2024 fire incident.

Start-up activities are ongoing and production of the first copper anode and cathode was achieved in late July 2025.

Once the full ramp-up of the new smelter and precious metals refinery (PMR) (collectively, PTFI’s downstream processing facilities) is achieved, PTFI will be a fully integrated producer of refined copper and gold.

We continue to incorporate new applications, technologies and data analytics into our leaching processes, and are applying operational enhancements on a larger scale and testing innovations.

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.

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

We are continuing to monitor developments on U.S.

trade policy, including tariffs, and its impacts on our business, cost structure and supply chains, and efforts continue to be under way to evaluate alternative sourcing options to mitigate potential impacts.

Refer to “Operations” for further discussion.

Net income attributable to common stockholders totaled $772 million in second-quarter 2025, $616 million in second-quarter 2024 and $1.1 billion for each of the first six months of 2025 and 2024.

Refer to “Consolidated Results” for further discussion.

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.

Additionally, as discussed in “Markets,” the 2025 periods have benefited from more favorable pricing for our U.S.

copper sales and global gold sales.

Following the President’s proclamation on July 30, 2025, imposing a 50% tariff on U.S.

imports of semi-finished copper products and copper-intensive derivative products effective August 1, 2025, copper prices on the Commodity Exchange Inc.

(COMEX) declined and are now similar to London Metal Exchange (LME) copper prices, consistent with long-term historical trends.

At June 30, 2025, we had consolidated debt of $9.3 billion and consolidated cash and cash equivalents of $4.5 billion.

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

Refer to “Net Debt” for a reconciliation of consolidated debt and consolidated cash and cash equivalents to net debt.

At June 30, 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.

During the first six months of 2025, we acquired 2.9 million shares of our common stock for a total cost of $107 million ($36.41 average cost per share).

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

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

Copper (billions of recoverable pounds):

Copper (millions of recoverable pounds):

copper mines 1,331

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Includes 46 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.

copper mines and Cerro Verde mine and 36 million pounds produced by our primary molybdenum mines.

Consolidated sales volumes in third-quarter 2025 are expected to approximate 1.0 billion pounds of copper, 350 thousand ounces of gold and 18 million pounds of molybdenum.

Projected sales volumes are dependent on operational performance;

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

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

weather-related conditions;

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Consolidated Unit Net Cash Costs

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.

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 $1.55 per pound of copper for the year 2025 (including $1.59 per pound of copper in third-quarter 2025), based on achievement of current sales volume and cost estimates, and assuming average prices of $3,300 per ounce of gold and $22.00 per pound of molybdenum for the second half 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 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.

The impact of price changes on consolidated unit net cash costs for the second half of 2025 would approximate $0.02 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.

Consolidated Operating Cash Flows

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and other factors.

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.

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 based on current sales volume and cost estimates, and assuming prices of $4.40 per pound of copper, $3,300 per ounce of gold and $22.00 per pound of molybdenum for the second half 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).

The impact of price changes on consolidated operating cash flows for the second half of 2025 are estimated to approximate $210 million for each $0.10 per pound change in the average price of copper, $70 million for each $100 per ounce change in the average price of gold and $55 million for each $2 per pound change in the average price of molybdenum.

Consolidated Capital Expenditures

Following is a summary of expected capital expenditures for the year 2025 (in billions):

Major mining projects $ 2.8 a

PTFI’s new downstream processing facilities 0.6 b

Major projects $ 2.7 a

PTFI’s 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.

expansion projects, and $1.6 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.

Capital expenditures for PTFI’s downstream processing facilities are expected to be funded with PTFI’s cash flows from operations.

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

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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.

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 June 2025.

LME and COMEX copper prices are market-driven and subject to change based on current and future tariff rates, additional changes in trade policies, domestic inventory levels, supply and demand, and other factors.

Copper priced on the LME and COMEX exchanges have historically traded in a narrow range with no material differential.

Following U.S.

trade policy announcements earlier in 2025, including proposed tariff announcements, the two benchmark prices began to differ and the spread significantly widened during July 2025.

On July 30, 2025, the President imposed a 50% tariff on certain categories of copper imports, effective August 1, 2025, following the Section 232 investigation on copper (refer to “Operations” for further discussion).

The President’s proclamation provides that the 50% tariff applies to imports of semi-finished copper products and copper-intensive derivative products.

With respect to copper import materials, the President will determine by June 30, 2026, whether a tariff on refined copper, such as copper cathodes, of 15% starting in January 2027 and 30% starting in January 2028 is warranted.

Following the proclamation, COMEX copper prices declined and are now similar to LME copper prices, consistent with long-term historical trends.

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.

During second-quarter 2025, LME copper settlement prices averaged $4.32 per pound (ranging from a low of $3.87 per pound to a high of $4.59 per pound) and closed at $4.55 per pound on June 30, 2025.

During July 2025, LME copper settlement prices averaged $4.44 per pound and closed at $4.36 per pound on July 31, 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.

During second-quarter 2025 COMEX copper settlement prices averaged $4.72 per pound

(ranging from a low of $4.13 per pound to a high of $5.07 per pound) and closed at $5.03 per pound on June 30, 2025.

During July 2025, COMEX copper settlement prices averaged $5.45 per pound and closed at $4.33 per pound on July 31, 2025.

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.

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

During second-quarter 2025, London PM gold prices averaged $3,280 per ounce (ranging from a low of $3,015 per ounce to an all-time high of $3,435 per ounce) and closed at $3,287 per ounce on June 30, 2025.

The prospect of interest rate reductions, geopolitical tensions and strong demand from central banks around the world continue to drive gold prices to record highs.

The London PM gold price closed at $3,299 per ounce on July 31, 2025.

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

During second-quarter 2025, the weekly average prices for molybdenum averaged $20.66 per pound (ranging from a low of $19.71 per pound to a high of $21.93 per pound) and closed at $21.83 per pound on June 30, 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 $19.71 per pound on April 30, 2025.

The Platts Metals Daily Molybdenum Dealer Oxide weekly average price closed at $23.25 per pound on July 31, 2025.

CONSOLIDATED RESULTS

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

SUMMARY FINANCIAL DATA

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$ 2,432 $ 2,049

$ 3,735 $ 3,683

Net income attributable to common stock b,c

$ 352 $ 473 d

Diluted net income per share of common stock b,c

$ 0.24 $ 0.32 d

$ 0.53 $ 0.42 $ 0.77 $ 0.75

Diluted weighted-average shares of common stock outstanding 1,443 1,445 1,444 1,445

Operating cash flows e

Operating cash flows f

$ 2,195 $ 1,956 $ 3,253 $ 3,852

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$ 4,490 $ 5,273 $ 4,490 $ 5,273

Restricted cash and cash equivalents, current f

$ 460 $ 1,034

Total debt, including current portion

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

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.

Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(35) million ($(10) million to net income attributable to common stock or $(0.01) per share) in second-quarter 2025, $166 million ($56 million to net income attributable to common stock or $0.04 per share) in second-quarter 2024, $63 million ($21 million to net income attributable to common stock or $0.01 per share) for the first six months of 2025 and $28 million

($9 million to net income attributable to common stock or $0.01 per share) for the first six months of 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 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.

Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions to operating income totaling $34 million ($9 million to net income attributable to common stock or $0.01 per share) in second-quarter 2025, $137 million ($41 million to net income attributable to common stock or $0.03 per share) in second-quarter 2024, $148 million ($44 million to net income attributable to common stock or $0.03 per share) for the first six months of 2025 and $120 million ($36 million to net income attributable to common stock or $0.02 per share) for the first six months of 2024.

Refer to “Operations – Smelting and Refining .”

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,

Includes net charges totaling $18 million in second-quarter 2025 and $24 million for the first six months of 2025, primarily associated with charges at PTFI for asset impairment and remediation costs related to the October 2024 fire incident at its new smelter that were not offset by recovery under its construction insurance program, oil and gas impairments and adjustments to environmental obligations and litigation reserves.

The first six months of 2025 also include charges for previously capitalized costs associated with construction of PTFI’s downstream processing facilities, partly offset by an adjustment to PTFI’s asset retirement obligations.

Includes net charges totaling $51 million in second-quarter 2024 and $52 million for the first six months of 2024, primarily associated with adjustments to environmental obligations and litigation reserves, nonrecurring labor-related charges at Cerro Verde associated with a new collective labor agreement (CLA), charges for previously capitalized costs associated with construction of PTFI’s downstream processing facilities and metals inventory adjustments and write-offs.

The first six months of 2024 also included charges associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, offset by international tax credits.

Working capital and other (uses) sources totaled $(45) million in second-quarter 2025, $73 million in second-quarter 2024, $(342) million for the first six months of 2025 and $(24) million for the first six months of 2024.

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

SUMMARY OPERATING DATA

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Average realized price per pound $ 4.54 $ 4.48

$ 4.48 $ 4.25

Site production and delivery costs per pound a

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Sales, excluding purchases

522 361 650 929

Average realized price per ounce $ 3,291 $ 2,299 $ 3,260 $ 2,236

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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.”

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.

Consolidated revenues totaled $7.6 billion in second-quarter 2025, $6.6 billion in second-quarter 2024, $13.3 billion for the first six months of 2025 and $12.9 billion for the first six months of 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, gold bars and molybdenum.

Refer to Note 8 for a summary of product revenues.

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

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

Consolidated revenues – 2024 period $ 6,624 $ 12,945

Lower sales volumes:

Higher (lower) sales volumes:

Copper 379 (642)

Gold 373 (624)

Molybdenum 24 12

Higher average realized prices:

Higher (lower) average realized prices:

Copper 61 434

Molybdenum (14) 13

Adjustments for prior period provisionally priced copper sales (201) 35

Higher Atlantic Copper revenues 82

Higher revenues from purchased copper 152

(Lower) higher Atlantic Copper revenues (82) —

(Lower) higher revenues from purchased copper (89) 63

Lower treatment charges 74 176

Lower royalties and export duties 153

(Higher) lower royalties and export duties (113) 39

Other, including intercompany eliminations 29 194

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Sales Volumes.

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.

Consolidated copper and gold sales volumes increased in second-quarter 2025, compared to second-quarter 2024, primarily reflecting the timing of shipments and refined gold sales, partly offset by lower ore grades in Indonesia.

The decrease in consolidated copper and gold sales volumes for the first six months of 2025, compared to the first six months of 2024, primarily reflects lower ore grades in Indonesia and South America, as well as lower operating rates in Indonesia associated with planned major mill maintenance projects.

Realized Prices.

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

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.

Our average realized prices in second-quarter 2025, compared with second-quarter 2024, were 1% higher for copper, 43% higher for gold and 3% lower for molybdenum.

Average realized prices for the first six months of 2025, compared with the first six months of 2024, were 5% higher for copper, 46% higher for gold and 1% higher for molybdenum.

During the second quarter and first six months of 2025, our average U.S.

copper price realization, which is generally based on COMEX settlement prices, was approximately 7% to 9% higher than the average copper price realizations for our South America and Indonesia operations, which are generally based on LME settlement prices.

Refer to “Markets” for further discussion of COMEX and LME copper prices.

Average realized copper prices include net favorable adjustments to current period provisionally priced copper sales totaling $69 million in second-quarter 2025, $15 million in second-quarter 2024, $87 million for the first six months of 2025 and $219 million for the first six months of 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).

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Prior Period Provisionally Priced Copper Sales.

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.

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

, provisionally priced sales at March 31, 2025 and 2024, and December 31, 2024 and 2023) recorded in consolidated revenues totaled $(35) million in second-quarter 2025, $166 million in second-quarter 2024, $63 million for the first six months of 2025 and $28 million for the first six months of 2024.

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

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.

At June 30, 2025, we had provisionally priced copper sales totaling 245 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $4.49 per pound, subject to final pricing over the next several months.

We estimate that each $0.05 change in the price realized from the June 30, 2025, recorded provisional price would have an approximate $22 million effect on 2025 revenues ($8 million to 2025 net income attributable to common stock).

The LME copper settlement price closed at $4.36 per pound on July 31, 2025.

Atlantic Copper Revenues.

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.

Atlantic Copper revenues totaled $818 million in second-quarter 2025, $900 million in second-quarter 2024 and $1.6 billion for each of the first six months of 2025 and 2024.

Lower revenues in second-quarter 2025, compared with second-quarter 2024, primarily reflect lower sales volumes.

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 66 million pounds in first-quarter 2025 and 42 million pounds in first-quarter 2024.

We purchase copper cathode primarily for processing by our U.S.

Rod & Refining operations.

The volumes of copper purchases vary depending on cathode production from our operations and totaled 35 million pounds in second-quarter 2025, 64 million pounds in second-quarter 2024, 101 million pounds for the first six months of 2025 and 106 million pounds for the first six months of 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 first-quarter 2025, compared to first-quarter 2024, primarily reflects lower treatment charge rates and copper concentrate sales volumes in Indonesia and South America.

The decrease in treatment charges in the 2025 periods, compared to the 2024 periods, 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.

PTFI is assessed export duties on copper concentrate sales at a rate of 7.5% and royalties on all copper and gold sales, the amount of which varies with sales volumes and metal prices (refer to Note 8).

Production and Delivery Costs

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.

Consolidated production and delivery costs totaled $4.3 billion in second-quarter 2025, $3.9 billion in second-quarter 2024, $8.0 billion for the first six months of 2025 and $7.7 billion for the first six months of 2024.

Higher production and delivery costs in the 2025 periods, compared to the 2024 periods, primarily reflect recognition of deferred costs in Indonesia associated with higher refined gold sales.

The first six months of 2025 also included charges totaling $73 million associated with maintenance turnaround costs at the Miami smelter and the first six months of 2024 included oil and gas charges totaling $105 million, primarily associated with assumed oil and gas abandonment obligations (and related adjustments) resulting from bankruptcies of other companies and $65 million for non-recurring labor-related charges at Cerro Verde associated with the new CLA.

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, 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.

Consolidated site production and delivery costs (before net noncash and other costs) for our copper mines averaged $2.71 per pound of copper in second-quarter 2025, $2.56 per pound of copper in second-quarter 2024, $2.65 per pound of copper for the first six months of 2025 and $2.43 per pound of copper for the first six months of 2024.

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.

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) 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.

Consolidated depreciation, depletion and amortization (DD&A) totaled $668 million in second-quarter 2025, $509 million in second-quarter 2024 and $1.1 billion for each of the first six months of 2025 and 2024.

Consolidated DD&A was higher in second-quarter 2025 than second-quarter 2024 primarily as a result of higher sales volumes.

We currently expect DD&A to approximate $2.4 billion for the year 2025, which will include depreciation associated with capitalized costs for PTFI’s 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 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 $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.

Consolidated interest costs (before capitalization) totaled $181 million in both second-quarter 2025 and 2024, $355 million for the first six months of 2025 and $356 million for the first six months of 2024.

Capitalized interest, which primarily related to our mining operations’ capital projects, including construction and development of PTFI’s downstream processing facilities, totaled $99 million in second-quarter 2025, $93 million in second-quarter 2024, $203 million for the first six months of 2025 and $179 million for the first six months of 2024.

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 $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.

Other income, net, which totaled $41 million in second-quarter 2025, $69 million in second-quarter 2024, $99 million for the first six months of 2025 and $198 million for the first six months of 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 the 2025 periods, compared to the 2024 periods, primarily reflects lower interest income.

The first six months of 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 (refer to Note 3).

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

Three Months Ended March 31,

Six Months Ended June 30,

Income (Loss) a

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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.

copper and molybdenum mines, which had operating income of $710 million for the first six months of 2025 and $415 million for the first six months of 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 PTFI’s 2021 corporate income tax audit and resolution of the 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 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 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%.

Assuming achievement of current sales volume and cost estimates and prices of $4.40 per pound of copper, $3,300 per ounce of gold and $22.00 per pound of molybdenum for the second half of 2025, we estimate our consolidated effective tax rate would approximate 37% for the year 2025 (approximately 38% for the second half of 2025).

Changes in projected sales volumes and average prices during 2025 would incur tax impacts at estimated effective rates of 38% for Peru, 36% for Indonesia and 0% for the U.S.

We are also analyzing the One Big Beautiful Bill Act, but do not expect it to have a material impact on our 2025 financial results (refer to Note 3).

Noncontrolling Interests

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.

Net income attributable to noncontrolling interests, which is primarily associated with our noncontrolling shareholders at PTFI, Cerro Verde and El Abra, totaled $0.8 billion in second-quarter 2025, $0.7 billion in second-quarter 2024, $1.2 billion for the first six months of 2025 and $1.4 billion for the first six months of 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, which is attributed based on the economics prior to January 1, 2023 ( i.e.

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

Refer to Note 2 of 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%.

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.

Based on achievement of current sales volume and cost estimates, and assuming prices of $4.40 per pound of copper, $3,300 per ounce of gold and $22.00 per pound of molybdenum for the second half 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 $0.1 billion for each $0.25 per pound change in the average LME copper settlement price for the second half of 2025 (net income attributable to noncontrolling interests is not impacted by changes in the COMEX copper price).

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

Responsible Production

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.

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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.

Leaching and Technology Innovation Initiatives

We are continuing to incorporate new applications, technologies and data analytics into our leaching processes across our U.S.

and South America operations.

Incremental copper production from these initiatives totaled 52 million pounds in second-quarter 2025 and 98 million pounds for the first six months of 2025.

We continue to apply operational enhancements on a larger scale and test innovations.

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

During second-quarter 2025, we commenced large-scale testing at our Morenci operations of an internally developed additive product with the potential to enhance copper recovery.

In addition to this testing, we have identified other possible additives with strong potential.

Continued success with these initiatives would be expected to contribute to favorable adjustments in recoverable copper in leach stockpiles and favorably 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.

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

operations, which have lower ore grades.

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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 $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.

We are also undertaking optimization projects at our current mining operations to enhance efficiencies and reduce costs.

The costs for these studies are charged to production and delivery costs as incurred and totaled $52 million in second-quarter 2025, $38 million in second-quarter 2024, $88 million for the first six months of 2025 and $72 million for the first six months of 2024.

We estimate the costs of these studies will approximate $235 million for the year 2025, subject to market conditions and other factors.

Section 232 Copper Tariffs

In February 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., and 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.

On July 8, 2025, the President announced plans to impose a 50% tariff on U.S.

copper imports, and on July 30, 2025, the President signed a proclamation imposing a 50% tariff on U.S.

imports of semi-finished copper products and copper-intensive derivative products effective August 1, 2025.

The proclamation directs the U.S.

Secretary of Commerce to impose requirements that 25% of copper cathode and concentrate produced in the U.S.

be sold domestically in 2027, potentially increasing to 30% in 2028 and 40% in 2029.

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.

For the six months ended June 30, 2025, copper from our U.S.

mining operations was sold 63% as rod, 26% as cathode and 11% in concentrate.

We are well positioned in the U.S.

with sizeable resources and opportunities to leverage existing infrastructure through brownfield expansions.

For the year 2025, copper sales from our U.S.

mining operations are expected to approximate 1.3 billion pounds, which are primarily sold domestically.

Copper produced from our South America and Indonesia mining operations is primarily sold internationally.

Our second-quarter 2025 costs were not significantly impacted by U.S.

tariffs, and we are continuing to monitor impacts on our business, cost structure and supply chains associated with tariffs on U.S.

Based on our current supply chains and discussions with our suppliers, we estimate that the tariffs in effect and announced to date 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 continue to evaluate alternative sourcing options to mitigate potential impacts.

Governmental action related to tariffs and other controls on imports and exports or trade agreements or policies are difficult to predict and may continue to cause significant volatility in our financial performance and in the trading prices of our common stock.

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

of our 2024 Form 10-K for further discussion.

United States

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– 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.

We also operate a copper smelter and rod mill in Miami, Arizona, and copper refinery and rod mill in El Paso, Texas.

All of our U.S.

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

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

copper operations is cast into copper rod by our U.S.

Rod & Refining segment.

The remainder of our U.S.

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associated with existing operations.

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

copper supply.

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

copper operations, including the leaching and technology innovation initiatives discussed above.

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

Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation.

In late 2023, we completed technical and economic studies, which indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year at estimated incremental project capital costs of approximately $3.5 billion.

We completed technical and economic studies in late 2023 and continue to monitor capital cost trends and opportunities for value engineering.

These studies indicate the opportunity to construct new concentrating facilities to increase

copper production by 200 to 250 million pounds per year.

Estimated incremental project capital costs, which continue to be reviewed, approximate $3.5 billion.

Expanded operations would provide improved efficiency and reduce unit net cash costs through economies of scale.

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.

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.

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

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

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

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

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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.

The decision to proceed with 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.

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copper mines:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Operating Data, Net of Joint Venture Interests

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Copper production (millions of recoverable pounds) 183 138 337 291

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.

During the second quarter and first six months of 2025, our average U.S.

Refer to “Markets.”

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

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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.

mines of 308 million pounds in second-quarter 2025 were higher than second-quarter 2024 copper sales volumes of 292 million pounds, primarily reflecting higher milling rates and ore grades.

Our consolidated copper sales volumes from U.S.

mines of 615 million pounds for the first six months of 2025 were lower than copper sales volumes of 623 million pounds for the first six months of 2024, primarily reflecting timing of shipments.

Consolidated copper sales from our U.S.

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

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

Refer to “Outlook” for projected molybdenum sales volumes.

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Gross Profit per Pound of Copper and Molybdenum

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.

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

copper mines for the second quarters and first six months of 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 March 31,

Three Months Ended June 30,

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

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Molybdenum sales (millions of recoverable pounds) a

Six Months Ended June 30,

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

Copper Molyb-

Revenues, excluding adjustments $ 4.71 $ 4.71 $ 20.00 $ 4.28 $ 4.28 $ 19.18

Site production and delivery, before net noncash

and other costs shown below

3.46 3.07 16.09 3.35 3.03 16.35

By-product credits (0.52) — — (0.40) — —

Treatment charges 0.14 0.13 — 0.13 0.13 —

Unit net cash costs 3.08 3.20 16.09 3.08 3.16 16.35

DD&A 0.39 0.35 1.21 0.35 0.32 1.22

Noncash and other costs, net 0.14 b

0.14 0.38 0.13 b

Total unit costs 3.61 3.69 17.68 3.56 3.60 17.96

Revenue adjustments, primarily for pricing

on prior period open sales

0.01 0.01 — — — —

Gross profit per pound $ 1.11 $ 1.03 $ 2.32 $ 0.72 $ 0.68 $ 1.22

Copper sales (millions of recoverable pounds) 616 616 626 626

Molybdenum sales (millions of recoverable pounds) a

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.

Includes charges for feasibility and optimization studies totaling $0.09 per pound of copper in second-quarter 2025, $0.05 per pound of copper in second-quarter 2024, $0.07 per pound of copper for the first six months of 2025 and $0.05 per pound of copper for the first six months of 2024.

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.

copper mines of $3.04 per pound of copper in second-quarter 2025 were lower than second-quarter 2024 average unit net cash costs of $3.19 per pound of copper, primarily reflecting higher molybdenum by-product credits and higher copper volumes.

Average unit net cash costs for each of the first six months of 2025 and 2024 were $3.08 per pound of copper, with higher molybdenum by-product credits being offset by higher labor and freight costs in the 2025 period compared with the 2024 period.

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

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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.

copper mines to trend lower during the second half of 2025 and in 2026, 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.

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 $22.00 per pound of molybdenum for the second half of 2025.

copper mines’ average unit net cash costs for the year 2025 would change by approximately $0.03 per pound for each $2 per pound change in the average price of molybdenum for the second half 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.

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

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

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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.

We have advanced stakeholder engagement and preparation of our permitting application and plan to submit an environmental impact statement in early 2026.

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

The decision to proceed with 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Copper (millions of recoverable pounds)

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Copper production (millions of recoverable pounds) 199 223 393 432

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

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.

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

Our consolidated copper sales volumes from South America operations totaled 265 million pounds in second-quarter 2025, 302 million pounds in second-quarter 2024, 540 million pounds for the first six months of 2025 and 586 million pounds for the first six months of 2024.

Lower copper sales volumes in the 2025 periods, compared to the 2024 periods, reflect anticipated lower ore grades and milling rates.

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

The following tables summarize unit net cash costs and gross profit per pound of copper at our South America operations for the second quarters and first six months of 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 March 31,

Three Months Ended June 30,

Method Co-Product

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Revenues, excluding adjustments $ 4.47 $ 4.47 $ 4.39 $ 4.39

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

Site production and delivery, before net noncash and other costs shown below 2.76 2.53 2.74 a

By-product credits (0.37) — (0.45) —

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DD&A 0.42 0.39 0.38 0.34

Noncash and other costs, net 0.05 a

Noncash and other costs, net 0.08 b

Total unit costs 2.96 3.07 2.90 3.06

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Copper sales (millions of recoverable pounds) 265 265 302 302

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.

Six Months Ended June 30,

Method Co-Product

Method By-Product

Method Co-Product

Revenues, excluding adjustments $ 4.39 $ 4.39 $ 4.27 $ 4.27

Site production and delivery, before net noncash and other costs shown below 2.76 2.51 2.68 a

By-product credits (0.41) — (0.33) —

Treatment charges 0.07 0.07 0.17 0.17

Royalty on metals 0.01 0.01 0.01 0.01

Unit net cash costs 2.43 2.59 2.53 2.66

DD&A 0.42 0.38 0.38 0.35

Noncash and other costs, net 0.06 b

Total unit costs 2.91 3.03 2.97 3.07

Revenue adjustments, primarily for pricing on prior period open sales 0.10 0.10 0.05 0.05

Gross profit per pound $ 1.58 $ 1.46 $ 1.35 $ 1.25

Copper sales (millions of recoverable pounds) 540 540 586 586

Includes $0.22 per pound of copper in second-quarter 2024 and $0.11 per pound of copper for the first six months of 2024 for nonrecurring labor-related charges at Cerro Verde associated with a new CLA.

Includes charges for feasibility and optimization studies totaling $0.07 per pound of copper in second-quarter 2025, $0.06 per pound of copper for the first six months of 2025 and $0.04 per pound of copper in the second quarter and first six months of 2024.

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 $2.40 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.

Average unit net cash costs (net of by-product credits) for South America operations were $2.46 per pound of copper in both second-quarter 2025 and second-quarter 2024, with lower treatment charges being offset by lower copper and molybdenum volumes.

Average unit net cash costs of $2.43 per pound of copper for the first six months of 2025 were lower than average unit net cash costs of $2.53 per pound of copper for the first six months of 2024, primarily reflecting lower treatment charges and higher by-product credits, partly offset by lower copper volumes.

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

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

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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 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.

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 $22.00 per pound of molybdenum for the second half of 2025.

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

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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.

Once the full ramp-up of PTFI’s downstream processing facilities is achieved, which is expected by year-end 2025, PTFI will be a fully integrated producer of refined copper and gold.

PTFI’s Downstream Processing Facilities.

During second-quarter 2025, PTFI commenced start-up of its new smelter in Eastern Java, Indonesia, slightly ahead of schedule following the October 2024 fire incident.

Start-up activities are ongoing and production of the first copper anode and cathode was achieved in late July 2025.

During second-quarter 2025, the PMR, which commenced operations in December 2024, continued to process anode slimes from PT Smelting, PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia.

PTFI’s current copper concentrate export license, for 1.4 million metric tons of copper concentrate, expires on September 16, 2025.

Following expiration, PTFI currently expects all of its copper concentrate to be processed by its new smelter and PT Smelting.

Long-term Mining Rights.

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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.

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

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.

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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.

PTFI is also conducting exploration in the Grasberg minerals 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.

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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.

As of June 30, 2025, PTFI has incurred approximately $0.8 billion for Kucing Liar, and capital investments are estimated to total $4 billion over the next seven to eight years (averaging approximately $0.5 billion per year).

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.

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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.

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 total 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.

Operating Data.

Following is summary consolidated operating data for Indonesia operations:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Copper (millions of recoverable pounds)

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Total 182,500 196,900

172,100 208,200

Average ore grades:

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Gold 74.8 77.0 75.5 77.3

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.

As PTFI transitions to being a fully integrated producer in Indonesia, it may experience more variation in timing between production and sales.

Historically, concentrate sales were recognized upon loading of shipments, but refined sales will be recognized after processing and sale of the metal.

PTFI’s consolidated production volumes totaled 359 million pounds of copper and 311 thousand ounces of gold in second-quarter 2025, 441 million pounds of copper and 437 thousand ounces of gold in second-quarter 2024, 655 million pounds of copper and 595 thousand ounces of gold for the first six months of 2025 and 932 million pounds of copper and 982 thousand ounces of gold for the first six months of 2024.

Lower production volumes for the 2025 periods primarily reflect lower ore grades and operating rates.

During second-quarter 2025, PTFI commenced planned maintenance on one of its mill circuits, which is expected to be completed in third-quarter 2025.

PTFI’s consolidated sales volumes of 443 million pounds of copper and 518 thousand ounces of gold in second-quarter 2025 were higher than 337 million pounds of copper and 356 thousand ounces of gold in second-quarter 2024, primarily reflecting timing of shipments.

PTFI’s consolidated sales volumes of 733 million pounds of copper

and 643 thousand ounces of gold for the first six months of 2025 were lower than 830 million pounds of copper and 920 thousand ounces of gold for the first six months of 2024, primarily reflecting lower ore grades and operating rates associated with a planned major maintenance project.

PTFI’s current sales estimate incorporates updated Grasberg Block Cave ore grade modeling designed to predict the timing of ore grade distribution through the drawpoints, which resulted in revised production estimates, but do not materially impact PTFI’s long-range plans.

Consolidated sales volumes from PTFI are expected to approximate 1.54 billion pounds of copper and 1.3 million ounces of gold for the year 2025, which incorporates the updated ore grade modeling (primarily timing of gold) and smelter in-process inventory adjustments.

Projected sales volumes are dependent on operational performance;

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

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

weather-related conditions;

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

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.

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.

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 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,

The following tables summarize the unit net cash (credits) costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the second quarters and first six months of 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 (credits) costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Three Months Ended June 30,

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

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Site production and delivery, before net noncash and other costs shown below 2.17 1.14 854 1.59 1.01 523

Gold, silver and other by-product credits (1.46) — — (2.55) — —

By-product credits (3.98) — — (2.66) — —

Treatment charges 0.19 0.11 77 0.36 0.23 119

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Royalty on metals 0.30 0.16 120 0.27 0.17 90

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

Unit net cash (credits) costs (0.99) 1.58 1,179 (0.21) 1.55 806

DD&A 0.88 0.46 346 0.74 0.47 242

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Gold sales (thousands of recoverable ounces) 518 356

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.

Six Months Ended June 30,

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

Copper Gold Copper Gold

Revenues, excluding adjustments $ 4.35 $ 4.35 $ 3,260 $ 4.23 $ 4.23 $ 2,236

Site production and delivery, before net noncash and other costs shown below 1.90 1.13 848 1.55 0.96 508

By-product credits (2.98) — — (2.59) — —

Treatment charges 0.19 0.12 87 0.36 0.22 116

Export duties 0.28 0.16 123 0.28 0.17 91

Royalty on metals 0.27 0.16 125 0.25 0.16 85

Unit net cash (credits) costs (0.34) 1.57 1,183 (0.15) 1.51 800

DD&A 0.78 0.47 350 0.70 0.43 230

Noncash and other costs, net 0.24 a

0.14 107 0.10 b

Total unit costs 0.68 2.18 1,640 0.65 2.01 1,064

Revenue adjustments, primarily for pricing on prior period open sales 0.03 0.03 31 0.01 0.01 (7)

Gross profit per pound/ounce $ 3.70 $ 2.20 $ 1,651 $ 3.59 $ 2.23 $ 1,165

Copper sales (millions of recoverable pounds) 733 733 830 830

Gold sales (thousands of recoverable ounces) 643 920

Includes charges for (i) operational readiness and startup costs associated with PTFI’s downstream processing facilities totaling $0.13 per pound of copper in second-quarter 2025 and $0.14 per pound of copper for the first six months of 2025 and (ii) remediation costs for PTFI’s new smelter that were not offset by recovery under a construction insurance program totaling $0.02 per pound of copper in second-quarter 2025 and $0.04 per pound of copper for the first six months of 2025.

Includes charges for (i) the reversal of previously capitalized land lease costs at PTFI’s downstream processing facilities totaling $0.10 per pound of copper in second-quarter 2024 and $0.04 per pound of copper for the first six months of 2024 and (ii) operational readiness and startup costs associated with PTFI’s downstream processing facilities totaling $0.06 per pound of copper in second-quarter 2024 and $0.04 per pound of copper for the first six months of 2024.

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

PTFI’s unit net cash credits (including by-product credits) were $0.99 per pound of copper in second-quarter 2025, $0.21 per pound of copper in second-quarter 2024, $0.34 per pound of copper for the first six months of 2025 and $0.15 per pound of copper for the first six months of 2024.

Favorable unit net cash credits in the 2025 periods, compared with the 2024 periods, primarily reflect higher gold credits and lower treatment charges, partly offset by higher production and delivery costs attributable to lower ore grades and operating rates, and the recognition of deferred costs associated with higher refined gold sales.

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.

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.

Export duties are assessed on PTFI’s copper concentrate sales at a rate of 7.5%.

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

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.

Average unit net cash credits (including by-product credits) for PTFI are expected to approximate $0.39 per pound of copper for the year 2025, based on achievement of current sales volumes and cost estimates, and assuming an average price of $3,300 per ounce of gold for the second half of 2025.

PTFI’s average unit net cash credits for the year 2025 would change by approximately $0.05 per pound of copper for each $100 per ounce change in the average price of gold for the second half 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;

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

weather-related conditions;

and other factors.

other factors.

Refer to “Cautionary Statement” below, and Item 1A.

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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.

copper mines and Cerro Verde mine, is processed at our conversion facilities.

Operating and Development Activities.

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.

Production from the Molybdenum mines totaled 9 million pounds of molybdenum in second-quarter 2025, 7 million pounds in second-quarter 2024, 18 million pounds for the first six months of 2025 and 15 million pounds for the first six months of 2024.

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

copper mines and Cerro Verde mine.

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 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.

Average unit net cash costs for our Molybdenum mines were $14.20 per pound of molybdenum in second-quarter 2025, $19.41 per pound of molybdenum in second-quarter 2024, $13.96 per pound of molybdenum for the first six months of 2025 and $17.50 per pound of molybdenum for the first six months of 2024.

Lower unit net cash costs in the 2025 periods, compared with the 2024 periods, primarily reflect 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 average approximately $15.50 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.

Smelting and Refining

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

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.

Downstream Processing Facilities

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

PTFI’s downstream processing facilities in Eastern Java, Indonesia, are wholly owned and operated, and PTFI 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 and rod mill in Arizona, the El Paso refinery and rod mill in Texas, and the Atlantic Copper smelter and refinery in Huelva, Spain.

We manufacture continuous cast copper rod at our U.S.

rod facilities primarily using copper produced at our U.S.

copper mines and processing facilities.

Rod production from these facilities approximated 1 billion pounds for each of the last three years, and is expected to approximate 1 billion pounds for the year 2025.

PTFI smelts and refines copper concentrate from its mining operations and operates a PMR to process anode slimes from its new smelter and PT Smelting.

Once the full ramp-up of PTFI’s downstream processing facilities is achieved, PTFI will be a fully integrated producer of refined copper and gold, 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 downstream processing facilities totaling $58 million in second-quarter 2025, $20 million in second-quarter 2024, $102 million for the first six months of 2025 and $35 million for the first six months of 2024.

We estimate that operational readiness and startup costs associated with PTFI’s downstream processing facilities will approximate $140 million for the year 2025.

Our Miami smelter in Arizona 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.

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

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

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

During the first six months of 2025, Atlantic Copper’s copper concentrate purchases included 22% from our copper mining operations and 78% 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.

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

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.

Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions to operating income totaling $34 million ($9 million to net income attributable to common stock) in second-quarter 2025, $137 million ($41 million to net income attributable to common stock) in second-quarter 2024, $148 million ($44 million to net income attributable to common stock) for the first six months of 2025 and $120 million ($36 million to net income attributable to common stock) for the first six months of 2024.

Our net deferred profits on our inventories at Atlantic Copper to be recognized in future periods’ operating income totaled $58 million ($30 million to net income attributable to common stock) at June 30, 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.

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We believe the actions we have taken in recent years to build a solid balance sheet, successfully expand low-cost operations and maintain flexible organic growth options while maintaining sufficient liquidity, will allow us to continue to execute our business plans in a prudent manner during periods of economic uncertainty while preserving substantial future asset values.

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

We closely monitor market conditions and adjust our operating plans to protect liquidity and preserve our asset values, when necessary.

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.

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 $4.9 billion.

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) and any share or debt repurchases.

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.

We have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next 12 months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable) and any share or debt repurchases.

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

expansion projects.

At June 30, 2025, we had $4.5 billion in consolidated cash and cash equivalents, 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 PTFI’s new downstream processing facilities).

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

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

At June 30, 2025, our net debt, excluding $3.2 billion of debt for PTFI’s downstream processing facilities, totaled $1.5 billion.

Refer to "Net Debt" for further discussion.

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.

On June 25, 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 August 1, 2025, to common shareholders of record as of July 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, May 1, 2025, and August 1, 2025), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend.

As of July 31, 2025, we have acquired a total of 52 million shares ($38.51 average cost per share) and have $3.0 billion available under our current share repurchase program.

We had 1.4 billion shares of common stock outstanding at July 31, 2025.

Refer to Note 4 for further discussion.

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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 March 31, 2025 (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 June 30, 2025 (in billions):

Cash at domestic companies $ 1.3

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

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.

Our next senior note maturities are in 2027.

At June 30, 2025, consolidated debt totaled $9.3 billion, with a weighted-average interest rate of 5.2%.

Substantially all of our outstanding debt is fixed rate and our next senior note maturities are in 2027.

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

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Operating Activities

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.

We generated operating cash flows of $3.3 billion for the first six months of 2025 and $3.9 billion for the first six months of 2024.

Operating cash flows in the first six months of 2025, compared with the first six months of 2024, primarily reflect lower copper and gold sales volumes, partly offset by higher copper and gold prices.

Additionally, operating cash flows for the first six months of 2025 were impacted by an increase in accounts receivable associated with the timing of collections and higher tax payments in Indonesia.

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

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Capital Expenditures.

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.)

Capital expenditures, including capitalized interest, totaled $2.4 billion during each of the first six months 2025 and 2024 and include amounts for major projects ($1.2 billion for the first six months of 2025 and $0.9 billion for the first six months of 2024), primarily associated with underground development activities in the

Grasberg minerals district, and for PTFI’s downstream processing facilities ($0.5 billion for the first six months of 2025 and $0.7 billion for the first six months of 2024).

Financing Activities

Debt Transactions.

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

Net proceeds from debt totaled $292 million for the first six months of 2025, primarily related to borrowings by Atlantic Copper under short-term lines of credit used for working capital requirements.

Cash Dividends on Common Stock.

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

We paid cash dividends on our common stock totaling $0.4 billion during each of the first six months of 2025 and 2024.

Refer to Note 4, Item 1A.

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Cash Dividends and Distributions Paid to Noncontrolling Interests.

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 paid to noncontrolling interests at our international operations totaled $0.6 billion (including $0.5 billion from PTFI) for the first six months of 2025 and $0.7 billion (including $0.6 billion from PTFI ) for the first six months of 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 first-quarter 2025, we acquired 1.4 million shares of our common stock for a total cost of $55 million.

In the first six months of 2025, we acquired 2.9 million shares of our common stock for a total cost of $107 million ($36.41 average cost per share).

Refer to Note 4 for further discussion.

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CONTINGENCIES

Environmental Obligations and Asset Retirement Obligations (ARO)

Environmental Obligations and Asset Retirement Obligations (AROs)

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.

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.

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

Refer to Note 10 of our 2024 Form 10-K, as updated by Note 7, for further discussion of FCX’s contingencies associated with environmental matters and AROs.

Litigation and Other Contingencies

There have been no significant updates to our contingencies associated with legal proceedings, environmental and other matters since December 31, 2024, other than as disclosed in Note 7.

There have been no significant updates to our contingencies associated with legal proceedings and other matters since December 31, 2024, other than as disclosed in Note 7.

Refer to Note 10 and “Legal Proceedings” contained in Part I, Item 3.

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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 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.

We define net debt as consolidated debt less consolidated cash and cash equivalents.

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 March 31, 2025

As of June 30, 2025

Current portion of debt $ 338

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consolidated cash and cash equivalents 4,490

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

FCX net debt 4,761

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.

debt for PTFI’s downstream processing facilities 3,234 a

FCX net debt, excluding debt for PTFI’s downstream processing facilities $ 1,527

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

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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.

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

Three Months Ended March 31, 2025

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

Three Months Ended June 30, 2025

(In millions) By-Product Co-Product Method

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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

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

Three Months Ended June 30, 2024

(In millions) By-Product Co-Product Method

Method Copper Molybdenum a

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

Revenues, excluding adjustments $ 1,357 $ 1,357 $ 130 $ 42 $ 1,529

Site production and delivery, before net noncash

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Total costs 1,079 1,093 120 38 1,251

Other revenue adjustments, primarily for pricing

on prior period open sales 3 3 — — 3

Gross profit $ 281 $ 267 $ 10 $ 4 $ 281

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Gross profit per pound of copper/molybdenum:

Revenues $ 3.96 $ 3.96 $ 18.49

Revenues, excluding adjustments $ 4.63 $ 4.63 $ 19.97

Site production and delivery, before net noncash

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3.68 3.73 18.41

Other revenue adjustments, primarily for pricing

on prior period open sales 0.01 0.01 —

Gross profit per pound $ 0.96 $ 0.91 $ 1.56

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Noncash and other costs, net — 37 —

Other revenue adjustments, primarily for pricing

on prior period open sales 3 — —

Eliminations and other 4 6 —

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Includes gold and silver product revenues and production costs.

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

Includes charges totaling $14 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.

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

Six Months Ended June 30, 2025

(In millions) By-Product Co-Product Method

Method Copper Molybdenum a

Revenues, excluding adjustments $ 2,902 $ 2,902 $ 326 $ 91 $ 3,319

Site production and delivery, before net noncash

and other costs shown below 2,133 1,894 262 73 2,229

By-product credits (322) — — — —

Treatment charges 85 81 — 4 85

Net cash costs 1,896 1,975 262 77 2,314

DD&A 242 217 20 5 242

Noncash and other costs, net 89 c

Total costs 2,227 2,274 288 83 2,645

Other revenue adjustments, primarily for pricing

on prior period open sales 4 4 — 1 5

Gross profit $ 679 $ 632 $ 38 $ 9 $ 679

Copper sales (millions of recoverable pounds) 616 616

Molybdenum sales (millions of recoverable pounds) a

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments $ 4.71 $ 4.71 $ 20.00

Site production and delivery, before net noncash

and other costs shown below 3.46 3.07 16.09

By-product credits (0.52) — —

Treatment charges 0.14 0.13 —

Unit net cash costs 3.08 3.20 16.09

DD&A 0.39 0.35 1.21

Noncash and other costs, net 0.14 c

Total unit costs 3.61 3.69 17.68

Other revenue adjustments, primarily for pricing

on prior period open sales 0.01 0.01 —

Gross profit per pound $ 1.11 $ 1.03 $ 2.32

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 3,319 $ 2,229 $ 242

Treatment charges (8) 77 —

Noncash and other costs, net — 89 —

Other revenue adjustments, primarily for pricing

on prior period open sales 5 — —

Eliminations and other 28 31 —

copper mines 3,344 2,426 242

Other mining d

12,887 8,348 867

Corporate, other & eliminations (2,921) (2,736) 25

As reported in our consolidated financial statements $ 13,310 $ 8,038 $ 1,134

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 $40 million ($0.07 per pound of copper) for feasibility and optimization studies.

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

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

Six Months Ended June 30, 2024

(In millions) By-Product Co-Product Method

Method Copper Molybdenum a

Revenues $ 2,676

$ 2,676 $ 265 $ 81 $ 3,022

Site production and delivery, before net noncash

and other costs shown below 2,096 1,898 226 65 2,189

By-product credits (253) — — — —

Treatment charges 83 80 — 3 83

Net cash costs 1,926 1,978 226 68 2,272

DD&A 217 197 17 3 217

Noncash and other costs, net 82 c

Total costs 2,225 2,251 248 72 2,571

Gross profit $ 451 $ 425 $ 17 $ 9 $ 451

Copper sales (millions of recoverable pounds) 626 626

Molybdenum sales (millions of recoverable pounds) a

Gross profit per pound of copper/molybdenum:

Revenues $ 4.28

$ 4.28 $ 19.18

Site production and delivery, before net noncash

and other costs shown below 3.35 3.03 16.35

By-product credits (0.40) — —

Treatment charges 0.13 0.13 —

Unit net cash costs 3.08 3.16 16.35

DD&A 0.35 0.32 1.22

Noncash and other costs, net 0.13 c

Total unit costs 3.56 3.60 17.96

Gross profit per pound $ 0.72 $ 0.68 $ 1.22

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 3,022 $ 2,189 $ 217

Treatment charges (2) 81 —

Noncash and other costs, net — 82 —

Eliminations and other 18 23 1

copper mines 3,038 2,375 218

Other mining d

12,799 8,107 853

Corporate, other & eliminations (2,892) (2,763) 33

As reported in our consolidated financial statements $ 12,945 $ 7,719 $ 1,104

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 $30 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.

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

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

(In millions) By-Product Co-Product Method

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

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

(In millions) By-Product Co-Product Method

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Site production and delivery, before net noncash

and other costs shown below 828 b

By-product credits (136) — — —

Treatment charges 48 48 — 48

Royalty on metals 3 2 1 3

Net cash costs 743 804 89 893

DD&A 114 102 12 114

Noncash and other costs, net 19 c

Total costs 876 925 101 1,026

Other revenue adjustments, primarily for pricing

on prior period open sales 87 87 3 90

Gross profit $ 537 $ 488 $ 49 $ 537

Copper sales (millions of recoverable pounds) 302 302

Gross profit per pound of copper:

Revenues, excluding adjustments $ 4.39 $ 4.39

Site production and delivery, before net noncash

and other costs shown below 2.74 b

By-product credits (0.45) —

Treatment charges 0.16 0.16

Royalty on metals 0.01 0.01

Unit net cash costs 2.46 2.66

DD&A 0.38 0.34

Noncash and other costs, net 0.06 c

Total unit costs 2.90 3.06

Other revenue adjustments, primarily for pricing

on prior period open sales 0.29 0.29

Gross profit per pound $ 1.78 $ 1.62

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 1,473 $ 842 $ 114

Treatment charges (48) — —

Royalty on metals (3) — —

Noncash and other costs, net — 19 —

Other revenue adjustments, primarily for pricing

on prior period open sales 90 — —

Eliminations and other (1) (1) —

South America operations 1,511 860 114

Other mining d

6,546 4,508 378

Corporate, other & eliminations (1,433) (1,493) 17

As reported in our consolidated financial statements $ 6,624 $ 3,875 $ 509

Includes silver sales of 0.9 million ounces ($29.63 per ounce average realized price).

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

Includes $65 million ($0.22 per pound of copper) of nonrecurring labor-related charges at Cerro Verde associated with a new CLA.

Includes charges totaling $12 million ($0.04 per pound of copper) for feasibility 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

Six Months Ended June 30, 2025

(In millions) By-Product Co-Product Method

Method Copper Other a

Revenues, excluding adjustments $ 2,371 $ 2,371 $ 250 $ 2,621

Site production and delivery, before net noncash

and other costs shown below 1,491 1,360 163 1,523

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

Includes charges totaling $33 million ($0.06 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

Six Months Ended June 30, 2024

(In millions) By-Product Co-Product Method

Method Copper Other a

Revenues, excluding adjustments $ 2,499 $ 2,499 $ 219 $ 2,718

Site production and delivery, before net noncash

and other costs shown below 1,571 b

1,456 142 1,598

By-product credits (192) — — —

Treatment charges 99 99 — 99

Royalty on metals 4 4 — 4

Net cash costs 1,482 1,559 142 1,701

DD&A 222 204 18 222

Noncash and other costs, net 37 c

Total costs 1,741 1,799 161 1,960

Other revenue adjustments, primarily for pricing

on prior period open sales 32 32 — 32

Gross profit $ 790 $ 732 $ 58 $ 790

Copper sales (millions of recoverable pounds) 586 586

Gross profit per pound of copper:

Revenues, excluding adjustments $ 4.27 $ 4.27

Site production and delivery, before net noncash

and other costs shown below 2.68 b

By-product credits (0.33) —

Treatment charges 0.17 0.17

Royalty on metals 0.01 0.01

Unit net cash costs 2.53 2.66

DD&A 0.38 0.35

Noncash and other costs, net 0.06 c

Total unit costs 2.97 3.07

Other revenue adjustments, primarily for pricing

on prior period open sales 0.05 0.05

Gross profit per pound $ 1.35 $ 1.25

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 2,718 $ 1,598 $ 222

Treatment charges (99) — —

Royalty on metals (4) — —

Noncash and other costs, net — 37 —

Other revenue adjustments, primarily for pricing

on prior period open sales 32 — —

Eliminations and other — (2) —

South America operations 2,647 1,633 222

Other mining d

13,190 8,849 849

Corporate, other & eliminations (2,892) (2,763) 33

As reported in our consolidated financial statements $ 12,945 $ 7,719 $ 1,104

Includes silver sales of 1.8 million ounces ($28.49 per ounce average realized price).

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

Includes $65 million ($0.11 per pound of copper) of nonrecurring labor-related charges at Cerro Verde associated with a new CLA.

Includes charges totaling $23 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 June 30, 2025

(In millions) Co-Product Method

By-Product Method Copper Gold Silver & Other a

Revenues, excluding adjustments $ 1,953 $ 1,953 $ 1,708 $ 49 $ 3,710

Site production and delivery, before net noncash

and other costs shown below 960 505 442 13 960

By-product credits (1,765) — — — —

Treatment charges 88 46 41 1 88

Export duties 146 77 66 3 146

Royalty on metals 133 70 62 1 133

Net cash (credits) costs (438) 698 611 18 1,327

DD&A 389 205 179 5 389

Noncash and other costs, net 78 b

Total costs 29 944 826 24 1,794

Other revenue adjustments, primarily for pricing

on prior period open sales (21) (21) 9 (1) (13)

Gross profit $ 1,903 $ 988 $ 891 $ 24 $ 1,903

Copper sales (millions of recoverable pounds) 443 443

Gold sales (thousands of recoverable ounces) 518

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

Revenues, excluding adjustments $ 4.40 $ 4.40 $ 3,290

Site production and delivery, before net noncash

and other costs shown below 2.17 1.14 854

By-product credits (3.98) — —

Treatment charges 0.19 0.11 77

Export duties 0.33 0.17 128

Royalty on metals 0.30 0.16 120

Unit net cash (credits) costs (0.99) 1.58 1,179

DD&A 0.88 0.46 346

Noncash and other costs, net 0.18 b

Total unit costs 0.07 2.13 1,595

Other revenue adjustments, primarily for pricing

on prior period open sales (0.05) (0.05) 26

Gross profit per pound/ounce $ 4.28 $ 2.22 $ 1,721

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 3,710 $ 960 $ 389

Treatment charges (2) 86 c

Export duties (146) — —

Royalty on metals (133) — —

Noncash and other costs, net — 78 —

Other revenue adjustments, primarily for pricing

on prior period open sales (13) — —

Indonesia operations 3,417 1,124 389

Other mining d

5,674 4,594 265

Corporate, other & eliminations (1,509) (1,436) 14

As reported in our consolidated financial statements $ 7,582 $ 4,282 $ 668

Includes silver sales of 1.1 million ounces ($34.47 per ounce average realized price).

Includes charges totaling $58 million ($0.13 per pound of copper) for operational readiness and startup costs associated with PTFI’s downstream processing facilities, $8 million ($0.02 per pound of copper) for an impairment charge, $7 million ($0.02 per pound of copper) for remediation costs related to the October 2024 fire incident at the smelter that were not offset by recovery under PTFI’s construction insurance program, and $4 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 mining operations as presented in Note 8.

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

Three Months Ended March 31, 2025

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

Three Months Ended June 30, 2024

(In millions) Co-Product Method

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and other costs shown below 536 340 186 10 536

Gold, silver and other by-product credits (422) — — — —

By-product credits (895) — — — —

Treatment charges 123 78 43 2 123

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Royalty on metals 90 57 32 1 90

Net cash costs 187 458 143 8 609

Net cash (credits) costs (71) 523 287 14 824

DD&A 248 158 86 4 248

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and other costs shown below 1.59 1.01 523

Gold, silver and other by-product credits (1.46) — —

By-product credits (2.66) — —

Treatment charges 0.36 0.23 119

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Royalty on metals 0.27 0.17 90

Unit net cash costs 0.64 1.58 1,145

Unit net cash (credits) costs (0.21) 1.55 806

DD&A 0.74 0.47 242

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on prior period open sales 128 — —

Eliminations and other — 1 —

Other — (1) —

Indonesia operations 2,268 672 248

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Includes silver sales of 1.3 million ounces ($28.70 per ounce average realized price).

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.

Includes charges totaling $34 million ($0.10 per pound of copper) related to the reversal of previously capitalized land lease costs at PTFI’s downstream processing facilities and $20 million ($0.06 per pound of copper) for operational readiness and startup costs associated with PTFI’s downstream processing facilities.

Represents tolling costs paid to PT Smelting.

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

Three Months Ended March 31, 2024

Six Months Ended June 30, 2025

(In millions) Co-Product Method

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and other costs shown below 1,392 828 546 18 1,392

Gold, silver and other by-product credits (1,257) — — — —

By-product credits (2,188) — — — —

Treatment charges 144 86 56 2 144

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and other costs shown below 1.90 1.13 848

Gold, silver and other by-product credits (2.55) — —

By-product credits (2.98) — —

Treatment charges 0.19 0.12 87

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on prior period open sales 36 — —

Eliminations and other — 1 —

Indonesia operations 4,987 1,702 575

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Includes silver sales of 1.5 million ounces ($33.78 per ounce average realized price).

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.

Includes charges totaling (i) $102 million ($0.14 per pound of copper) for operational readiness and startup costs associated with PTFI’s downstream processing facilities, (ii) $30 million ($0.04 per pound of copper) for remediation costs related to the October 2024 fire incident at the smelter that were not offset by recovery under PTFI’s construction insurance program, (iii) $24 million ($0.03 per pound of copper) related to the reversal of previously capitalized land lease costs at PTFI’s downstream processing facilities, (iv) $9 million ($0.01 per pound of copper) for feasibility and optimization studies and (v) $8 million ($0.01 per pound of copper) for an impairment charge.

These charges were partly offset by a credit of $11 million ($0.01 per pound of copper) related to ARO adjustments.

Primarily 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 (Credits) Costs

Six Months Ended June 30, 2024

(In millions) Co-Product Method

By-Product Method Copper Gold Silver & Other a

Revenues, excluding adjustments $ 3,512 $ 3,512 $ 2,056 $ 102 $ 5,670

Site production and delivery, before net noncash

and other costs shown below 1,289

799 467 23 1,289

By-product credits (2,152) — — — —

Treatment charges 295 183 107 5 295

Export duties 231 143 84 4 231

Royalty on metals 209 128 78 3 209

Net cash (credits) costs (128) 1,253 736 35 2,024

DD&A 583 361 212 10 583

Noncash and other costs, net 87 b

Total costs 542 1,668 979 47 2,694

Other revenue adjustments, primarily for pricing

on prior period open sales 7 7 (5) (1) 1

Gross profit $ 2,977 $ 1,851 $ 1,072 $ 54 $ 2,977

Copper sales (millions of recoverable pounds) 830 830

Gold sales (thousands of recoverable ounces) 920

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

Revenues, excluding adjustments $ 4.23 $ 4.23 $ 2,236

Site production and delivery, before net noncash

and other costs shown below 1.55 0.96 508

By-product credits (2.59) — —

Treatment charges 0.36 0.22 116

Export duties 0.28 0.17 91

Royalty on metals 0.25 0.16 85

Unit net cash (credits) costs (0.15) 1.51 800

DD&A 0.70 0.43 230

Noncash and other costs, net 0.10 b

Total unit costs 0.65 2.01 1,064

Other revenue adjustments, primarily for pricing

on prior period open sales 0.01 0.01 (7)

Gross profit per pound/ounce $ 3.59 $ 2.23 $ 1,165

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 5,670 $ 1,289 $ 583

Treatment charges (138) 157 c

Export duties (231) — —

Royalty on metals (209) — —

Noncash and other costs, net — 87 —

Other revenue adjustments, primarily for pricing

on prior period open sales 1 — —

Indonesia operations 5,093 1,533 583

Other mining d

10,744 8,949 488

Corporate, other & eliminations (2,892) (2,763) 33

As reported in our consolidated financial statements $ 12,945 $ 7,719 $ 1,104

Includes silver sales of 3.4 million ounces ($26.76 per ounce average realized price).

Includes charges totaling $34 million ($0.04 per pound of copper) related to the reversal of previously capitalized land lease costs at PTFI’s downstream processing facilities and $35 million ($0.04 per pound of copper) for operational readiness and startup costs associated with PTFI’s downstream processing facilities.

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 June 30,

(In millions) 2025 2024

Revenues, excluding adjustments a

Site production and delivery, before net noncash

and other costs shown below 122 129

Treatment charges and other 9 6

Net cash costs 131 135

Noncash and other costs, net 6

Total costs 163 156

Gross profit (loss) $ 26 $ (12)

Molybdenum sales (millions of recoverable pounds) a

Gross profit (loss) per pound of molybdenum:

Revenues, excluding adjustments a

$ 20.52 $ 20.71

Site production and delivery, before net noncash

and other costs shown below 13.20 18.53

Treatment charges and other 1.00 0.88

Unit net cash costs 14.20 19.41

DD&A 2.83 2.30

Noncash and other costs, net 0.64

Total unit costs 17.67 22.42

Gross profit (loss) per pound $ 2.85 $ (1.71)

Reconciliation to Amounts Reported

Three Months Ended June 30, 2025 Revenues and Delivery DD&A

Totals presented above $ 189 $ 122 $ 26

Treatment charges and other (9) — —

Noncash and other costs, net — 6 —

Molybdenum mines 180 128 26

Other mining b

8,911 5,590 628

Corporate, other & eliminations (1,509) (1,436) 14

As reported in our consolidated financial statements $ 7,582 $ 4,282 $ 668

Three Months Ended June 30, 2024

Totals presented above $ 144 $ 129 $ 16

Treatment charges and other (6) — —

Noncash and other costs, net — 5 —

Molybdenum mines 138 134 16

Other mining b

7,919 5,234 476

Corporate, other & eliminations (1,433) (1,493) 17

As reported in our consolidated financial statements $ 6,624 $ 3,875 $ 509

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 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 the Cerro Verde mine.

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31,

Six Months Ended June 30,

(In millions) 2025 2024

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Total costs 320 298

Gross profit $ 29 $ 10

Gross profit (loss) $ 55 $ (2)

Molybdenum sales (millions of recoverable pounds) a

Gross profit per pound of molybdenum:

Gross profit (loss) per pound of molybdenum:

Revenues, excluding adjustments a

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Total unit costs 17.42 20.20

Gross profit per pound $ 3.15 $ 1.26

Gross profit (loss) per pound $ 3.01 $ (0.15)

Reconciliation to Amounts Reported

Three Months Ended March 31, 2025 Revenues and Delivery DD&A

Six Months Ended June 30, 2025 Revenues and Delivery DD&A

Totals presented above $ 375 $ 238 $ 52

6 unchanged sentences

As reported in our consolidated financial statements $ 13,310 $ 8,038 $ 1,134

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Totals presented above $ 296 $ 245 $ 32

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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.

copper mines and the Cerro Verde mine.

CAUTIONARY STATEMENT

7 unchanged sentences

operating plans, including mine sequencing;

PTFI’s remediation, commissioning and full ramp-up of its new smelter and full production and ramp-up at the PMR;

the full production and ramp-up of PTFI’s downstream processing facilities;

potential extension of PTFI’s IUPK beyond 2041;

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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;

PTFI’s ability to export and sell or inventory copper concentrates through remediation and full ramp-up of its new smelter in Indonesia;

PTFI’s ability to export and sell or inventory copper concentrate through the 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;

full production and ramp-up at the PMR;

achieving full production and ramp-up of PTFI’s downstream processing facilities;

production rates;

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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.

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 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.

Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.

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, and consolidated cash and cash equivalents 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 U.S.

GAAP measure without unreasonable effort because estimating such U.S.

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.

Forward-looking non-U.S.

GAAP measures are estimated consistent with the relevant definitions and assumptions.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis