FREEPORT-MCMORAN INC 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. In Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), “we,” “us” and “our” refer to Freeport-McMoRan Inc. (FCX) and its consolidated subsidiaries. You should read this discussion in conjunction with our consolidated financial statements, the related MD&A and the discussion of our Business and Properties in our annual report on Form 10-K for the year ended December 31, 2024 (2024 Form 10-K), filed with the United States (U.S.) Securities and Exchange Commission (SEC). The results of operations reported and summarized below include forward-looking statements that are not guarantees of future performance and are not necessarily indicative of future operating results (refer to “Cautionary Statement” for further discussion). References to “Notes” are Notes included in our Notes to Consolidated Financial Statements (Unaudited). Throughout MD&A, all references to income or losses per share are on a diluted basis. Any references to our website are for information only and the contents of our website or information connected thereto are not incorporated in, or otherwise to be regarded as part of, this Form 10-Q. OVERVIEW We are a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, we operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the U.S. and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. 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. 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. 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. 23 Table of Contents 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. OUTLOOK Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets” below and “Risk Factors” in Part I, Item 1A. of our 2024 Form 10-K for further discussion. Because we cannot control the prices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures. The forward-looking statements in the below section and elsewhere in this quarterly report on Form 10-Q are based on current market conditions, are as of the filing date of this quarterly report on Form 10-Q, are based on several assumptions and are subject to significant risks and uncertainties. Refer to “Cautionary Statement” below. Consolidated Sales Volumes Following are our projected consolidated sales volumes for the year 2025: Copper (millions of recoverable pounds): U.S. copper mines 1,331 South America operations 1,075 Indonesia operations 1,542 Total 3,948 Gold (millions of recoverable ounces) 1.3 Molybdenum (millions of recoverable pounds) 82 a a. Includes 46 million pounds produced by our U.S. 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 downstream processing facilities; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below. For other important factors that could cause results to differ materially from projections, refer to “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K. Consolidated Unit Net Cash Costs 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 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. 24 Table of Contents Consolidated Operating Cash Flows Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; 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 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 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 projects $ 2.7 a PTFI’s downstream processing facilities 0.6 b Sustaining capital and other 1.6 Total $ 4.9 a. 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 potential U.S. 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. b. Excludes capitalized interest, owner’s costs and commissioning. 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. 25 Table of Contents MARKETS Prices for copper, gold and molybdenum are affected by numerous factors beyond our control and can fluctuate significantly (for further discussion refer to “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K). The following graphs present the 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 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 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 second-quarter 2025 COMEX copper settlement prices averaged $4.72 per pound 26 Table of Contents (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 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. 27 Table of Contents 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 closed at $23.25 per pound on July 31, 2025. CONSOLIDATED RESULTS Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 SUMMARY FINANCIAL DATA (in millions, except per share amounts) Revenues a,b $ 7,582 $ 6,624 $ 13,310 $ 12,945 Operating income a,c $ 2,432 $ 2,049 $ 3,735 $ 3,683 Net income attributable to common stock b,c $ 772 d $ 616 e $ 1,124 d $ 1,089 e Diluted net income per share of common stock b,c $ 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 f $ 2,195 $ 1,956 $ 3,253 $ 3,852 Capital expenditures $ 1,261 $ 1,116 $ 2,433 $ 2,370 At June 30: Cash and cash equivalents $ 4,490 $ 5,273 $ 4,490 $ 5,273 Total debt, including current portion $ 9,251 $ 9,426 $ 9,251 $ 9,426 a. Refer to Note 8 for a summary of revenues and operating income by operating division. b. 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 28 Table of Contents ($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. c. 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 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 .” d. 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. e. 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. f. 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 Copper (millions of recoverable pounds) Production 963 1,037 1,831 2,122 Sales, excluding purchases 1,016 931 1,888 2,039 Average realized price per pound $ 4.54 $ 4.48 $ 4.48 $ 4.25 Site production and delivery costs per pound a $ 2.71 $ 2.56 $ 2.65 $ 2.43 Unit net cash costs per pound a $ 1.13 $ 1.73 $ 1.56 $ 1.61 Gold (thousands of recoverable ounces) Production 317 443 604 992 Sales, excluding purchases 522 361 650 929 Average realized price per ounce $ 3,291 $ 2,299 $ 3,260 $ 2,236 Molybdenum (millions of recoverable pounds) Production 22 20 45 38 Sales, excluding purchases 22 21 42 41 Average realized price per pound $ 21.10 $ 21.72 $ 21.37 $ 21.06 a. Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. 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.” Revenues 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. 29 Table of Contents Following is a summary of changes in our consolidated revenues between periods (in millions): Three Months Ended June 30 Six Months Ended June 30 Consolidated revenues – 2024 period $ 6,624 $ 12,945 Higher (lower) sales volumes: Copper 379 (642) Gold 373 (624) Molybdenum 24 12 Higher (lower) average realized prices: Copper 61 434 Gold 517 665 Molybdenum (14) 13 Adjustments for prior period provisionally priced copper sales (201) 35 (Lower) higher Atlantic Copper revenues (82) — (Lower) higher revenues from purchased copper (89) 63 Lower treatment charges 74 176 (Higher) lower royalties and export duties (113) 39 Other, including intercompany eliminations 29 194 Consolidated revenues – 2025 period $ 7,582 $ 13,310 Sales Volumes. 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 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). We record revenues and invoice customers at the time of shipment based on then-current LME prices for copper or London PM prices for gold, which results in an embedded derivative on provisionally priced sales that are adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper and gold prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper and gold prices, the opposite occurs. Prior Period Provisionally Priced Copper Sales. 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. 30 Table of Contents 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 $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 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 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. 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 $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 $2.71 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) 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 Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates. Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations. 31 Table of Contents Interest Expense, Net 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 $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). Income Taxes Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision (in millions, except percentages): Six Months Ended June 30, 2025 2024 Income (Loss) a Effective Tax Rate Income Tax (Provision) Benefit Income (Loss) a Effective Tax Rate Income Tax (Provision) Benefit U.S. b $ (2) —% $ 2 $ (271) —% $ (4) South America 890 39% (344) 800 40% (317) Indonesia 2,667 36% (967) 2,977 36% (1,081) PTFI historical tax matters 5 N/A 2 16 c N/A 182 c Eliminations and other 122 N/A (72) 182 N/A (49) Rate adjustment d — N/A 29 — N/A 3 Consolidated FCX $ 3,682 37% $ (1,350) $ 3,704 34% $ (1,266) a. Represents income before income taxes, equity in affiliated companies' net earnings and noncontrolling interests. b. In addition to our 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. The U.S. jurisdiction also includes net revisions to environmental obligation estimates and charges associated with oil and gas abandonment obligations and impairments. c. Includes net credits associated with the closure of PTFI’s 2021 corporate income tax audit and resolution of the framework for disputed tax matters. d. 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 $4.40 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). 32 Table of Contents Noncontrolling Interests Net income attributable to noncontrolling interests, which is primarily associated with our noncontrolling shareholders at PTFI, Cerro Verde and El Abra, totaled $0.8 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). 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 $4.40 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. OPERATIONS Responsible Production The Copper Mark. We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry and extended to other metals, including molybdenum. To achieve the Copper Mark, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria. Awarded sites must be revalidated every three years. We achieved, and are committed to maintaining, the Copper Mark and Molybdenum Mark, as applicable, at all of our operating sites globally. 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. 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. 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 leaching and technology initiatives are particularly important to our U.S. operations, which have lower ore grades. Feasibility and Optimization Studies We are engaged in various studies associated with potential future expansion projects primarily at our mining operations. 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. 33 Table of Contents 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. 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. 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. 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. 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. U.S. Tariffs 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. imports. 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 We manage seven copper operations in the U.S. – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. We also operate a copper smelter and rod mill in Miami, Arizona, and copper refinery and rod mill in El Paso, Texas. All of our U.S. operations are wholly owned, except for Morenci. We record our 72% undivided joint venture interest in Morenci using the proportionate consolidation method. Our U.S. copper operations include open-pit mining, sulfide-ore concentrating, leaching and solution extraction/electrowinning (SX/EW) facilities. A majority of the copper produced at our U.S. copper operations is cast into copper rod by our U.S. Rod & Refining segment. The remainder of our U.S. copper production is sold as copper cathode or copper concentrate, a portion of which is shipped to Atlantic Copper (our wholly owned smelter and refinery in Spain). Molybdenum concentrate, gold and silver are also produced by certain of our U.S. copper operations . Development Activities. We have substantial reserves, resources and future opportunities for organic growth in the U.S. associated with existing operations. 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. 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 34 Table of Contents 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 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. Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a further expansion project. We expect to complete these studies in 2026. 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. Following is summary consolidated operating data for our U.S. copper mines: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating Data, Net of Joint Venture Interests Copper (millions of recoverable pounds) Production 336 298 637 612 Sales, excluding purchases 308 292 615 623 Average realized price per pound a $ 4.81 $ 4.63 $ 4.71 $ 4.28 Molybdenum (millions of recoverable pounds) Production b 9 7 17 14 100% Operating Data Leach operations Leach ore placed in stockpiles (metric tons per day) 621,200 650,300 602,600 633,800 Average copper ore grade (%) 0.21 0.20 0.21 0.20 Copper production (millions of recoverable pounds) 203 209 394 420 Mill operations Ore milled (metric tons per day) 335,500 290,200 328,700 298,900 Average ore grade (%): Copper 0.32 0.29 0.31 0.30 Molybdenum 0.02 0.02 0.02 0.02 Copper recovery rate (%) 85.4 84.1 84.8 82.4 Copper production (millions of recoverable pounds) 183 138 337 291 a. 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.” b. Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at our U.S. copper mines. Our consolidated copper sales volumes from U.S. mines of 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 expected to approximate 1.3 billion pounds for the year 2025. Refer to “Outlook” for projected molybdenum sales volumes. 35 Table of Contents Unit Net Cash Costs. We believe unit net cash 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. This information differs from measures of performance determined in accordance with generally accepted accounting principles (GAAP) in the U.S. and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. Gross Profit per Pound of Copper and Molybdenum The following 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 June 30, 2025 2024 By- Product Method Co-Product Method By- Product Method Co-Product Method Copper Molyb- denum a Copper Molyb- denum a Revenues, excluding adjustments $ 4.81 $ 4.81 $ 19.87 $ 4.63 $ 4.63 $ 19.97 Site production and delivery, before net noncash and other costs shown below 3.44 3.05 15.24 3.48 3.15 16.87 By-product credits (0.55) — — (0.43) — — Treatment charges 0.15 0.15 — 0.14 0.13 — Unit net cash costs 3.04 3.20 15.24 3.19 3.28 16.87 DD&A 0.38 0.34 1.16 0.36 0.33 1.21 Noncash and other costs, net 0.16 b 0.15 0.45 0.13 b 0.12 0.33 Total unit costs 3.58 3.69 16.85 3.68 3.73 18.41 Revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 — 0.01 0.01 — Gross profit per pound $ 1.24 $ 1.13 $ 3.02 $ 0.96 $ 0.91 $ 1.56 Copper sales (millions of recoverable pounds) 309 309 293 293 Molybdenum sales (millions of recoverable pounds) a 9 7 Six Months Ended June 30, 2025 2024 By- Product Method Co-Product Method By- Product Method Co-Product Method Copper Molyb- denum a Copper Molyb- denum a 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 0.12 0.39 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 17 14 a. Reflects sales of molybdenum produced by certain of our U.S. copper mines to our molybdenum sales company at market-based pricing. 36 Table of Contents b. 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. Our U.S. 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 $3.04 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. copper mines may vary with asset additions and the level of copper production and sales. Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales. 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 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 $22.00 per pound of molybdenum for the second half of 2025. Our U.S. 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 (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. Production from our South America operations is sold as copper concentrate or cathode under long-term contracts. Our South America operations also sell a portion of their copper concentrate production to Atlantic Copper. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver. Development Activities. At the El Abra operations in Chile, we have completed substantial drilling and evaluations to define a large sulfide resource that could support a potential major mill project similar to the large-scale concentrator at Cerro Verde. The estimated resource approximates 20 billion recoverable pounds of copper, which could result in the addition of 750 million pounds of copper production per year. We 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 to proceed with and timing of the potential project will take into account overall copper market conditions, required permitting and other factors. 37 Table of Contents Operating Data. Following is summary consolidated operating data for South America operations: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Copper (millions of recoverable pounds) Production 268 298 539 578 Sales 265 302 540 586 Average realized price per pound $ 4.47 $ 4.39 $ 4.39 $ 4.27 Molybdenum (millions of recoverable pounds) Production a 4 6 10 9 Leach operations Leach ore placed in stockpiles (metric tons per day) 182,800 176,100 175,600 173,300 Average copper ore grade (%) 0.35 0.39 0.37 0.40 Copper production (millions of recoverable pounds) 69 75 146 146 Mill operations Ore milled (metric tons per day) 404,800 426,100 408,100 411,700 Average ore grade (%): Copper 0.31 0.33 0.30 0.33 Molybdenum 0.01 0.01 0.01 0.01 Copper recovery rate (%) 83.9 83.8 83.8 83.6 Copper production (millions of recoverable pounds) 199 223 393 432 a. 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. Refer to “Outlook” for projected molybdenum sales volumes. Unit Net Cash Costs. We believe unit net cash 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. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 38 Table of Contents Gross Profit per Pound of Copper 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. 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 June 30, 2025 2024 By-Product Method Co-Product Method By-Product Method Co-Product Method 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 2.53 2.74 a 2.49 By-product credits (0.37) — (0.45) — Treatment charges 0.06 0.06 0.16 0.16 Royalty on metals 0.01 0.01 0.01 0.01 Unit net cash costs 2.46 2.60 2.46 2.66 DD&A 0.42 0.39 0.38 0.34 Noncash and other costs, net 0.08 b 0.08 0.06 b 0.06 Total unit costs 2.96 3.07 2.90 3.06 Revenue adjustments, primarily for pricing on prior period open sales (0.07) (0.07) 0.29 0.29 Gross profit per pound $ 1.44 $ 1.33 $ 1.78 $ 1.62 Copper sales (millions of recoverable pounds) 265 265 302 302 Six Months Ended June 30, 2025 2024 By-Product Method Co-Product Method By-Product Method Co-Product Method 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 2.48 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 0.06 0.06 b 0.06 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 a. 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. b. 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 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. 39 Table of Contents 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. Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales. Average unit net cash costs (net of by-product credits) for our 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. Indonesia PTFI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. PTFI produces copper concentrate that contains significant quantities of gold and silver. We have a 48.76% ownership interest in PTFI and manage its operations. PTFI's results are consolidated in our financial statements. Once the full ramp-up of PTFI’s 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. Pursuant to regulations issued during 2024, PTFI is eligible to apply for an extension of its mining rights beyond 2041, provided certain conditions are met, including ownership of integrated downstream facilities that have entered the operational stage; domestic ownership of at least 51% and agreement with a state-owned enterprise for an additional 10% ownership; and commitments for additional exploration and increases in refining capacity, each as approved by the Ministry of Energy and Mineral Resources. Application for extension may be submitted at any time up to one year prior to the expiration of PTFI’s special mining business license (IUPK). PTFI expects to apply for an extension during 2025, pending agreement with MIND ID on a purchase and sale agreement for the transfer 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. Operating, Development and Exploration Activities. Over a multi-year investment period, PTFI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone (DMLZ) and Big Gossan) and related expansion of the milling facilities. 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 minerals district targeting the potential extension of significant mineralization below the DMLZ mine. 40 Table of Contents Kucing Liar. Long-term mine development activities are ongoing for PTFI’s Kucing Liar deposit in the Grasberg minerals district. Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PTFI’s operating rights beyond 2041 would extend the life of the project. Development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe. 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. Kucing Liar will benefit from substantial shared infrastructure and PTFI’s experience and long-term success in block-cave mining. Natural Gas Facilities. 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 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 Copper (millions of recoverable pounds) Production 359 441 655 932 Sales 443 337 733 830 Average realized price per pound $ 4.40 $ 4.44 $ 4.35 $ 4.23 Gold (thousands of recoverable ounces) Production 311 437 595 982 Sales 518 356 643 920 Average realized price per ounce $ 3,290 $ 2,299 $ 3,260 $ 2,236 Ore extracted and milled (metric tons per day): Grasberg Block Cave 114,500 123,500 104,100 131,400 DMLZ 61,400 64,400 60,900 65,900 Big Gossan 7,300 7,500 6,900 8,300 Other adjustments (700) 1,500 200 2,600 Total 182,500 196,900 172,100 208,200 Average ore grades: Copper (%) 1.15 1.30 1.14 1.31 Gold (grams per metric ton) 0.77 0.99 0.80 1.06 Recovery rates (%): Copper 88.1 88.8 88.0 89.1 Gold 74.8 77.0 75.5 77.3 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 41 Table of Contents 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 downstream processing facilities; weather-related conditions; and other factors detailed in the “Cautionary Statement” below. Unit Net Cash (Credits) Costs. We believe unit net cash (credits) costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. Gross Profit per Pound of Copper and per Ounce of Gold 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, 2025 2024 By-Product Method Co-Product Method By-Product Method Co-Product Method Copper Gold Copper Gold Revenues, excluding adjustments $ 4.40 $ 4.40 $ 3,290 $ 4.44 $ 4.44 $ 2,299 Site production and delivery, before net noncash and other costs shown below 2.17 1.14 854 1.59 1.01 523 By-product credits (3.98) — — (2.66) — — Treatment charges 0.19 0.11 77 0.36 0.23 119 Export duties 0.33 0.17 128 0.23 0.14 74 Royalty on metals 0.30 0.16 120 0.27 0.17 90 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 Noncash and other costs, net 0.18 a 0.09 70 0.19 b 0.12 62 Total unit costs 0.07 2.13 1,595 0.72 2.14 1,110 Revenue adjustments, primarily for pricing on prior period open sales (0.05) (0.05) 26 0.28 0.28 86 Gross profit per pound/ounce $ 4.28 $ 2.22 $ 1,721 $ 4.00 $ 2.58 $ 1,275 Copper sales (millions of recoverable pounds) 443 443 337 337 Gold sales (thousands of recoverable ounces) 518 356 42 Table of Contents Six Months Ended June 30, 2025 2024 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 0.07 34 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 a. 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. b. 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. 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. 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 downstream processing facilities; weather-related conditions; and 43 Table of Contents other factors. Refer to “Cautionary Statement” below, and Item 1A. “Risk Factors” contained in Part I of our 2024 Form 10-K for further discussion of factors that could cause results to differ materially from projections. Molybdenum Mines We operate two wholly owned primary molybdenum operations in Colorado – the Climax open-pit mine and the Henderson underground mine. The Climax and Henderson mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the Climax and Henderson mines and at our U.S. 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 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. Unit Net Cash Costs Per Pound of Molybdenum. We believe unit net cash costs per pound of molybdenum 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. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. 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 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. 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. We 44 Table of Contents 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. 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. , higher treatment charges benefit our Atlantic Copper operations). Our U.S. copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery. We defer recognizing profits on sales from our mining operations to Atlantic Copper until final sales to third parties occur. 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. CAPITAL RESOURCES AND LIQUIDITY Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. We remain focused on managing costs efficiently and continue to advance several important value-enhancing initiatives. 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 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 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 downstream processing facilities). Our Board of Directors (Board) reviews the structure of the performance-based payout framework at least annually. 45 Table of Contents 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 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. The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of our Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable. Our share repurchase program may be modified, increased, suspended or terminated at any time at our Board’s discretion. Cash 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 June 30, 2025 (in billions): Cash at domestic companies $ 1.3 Cash at international operations 3.2 Total consolidated cash and cash equivalents 4.5 Noncontrolling interests’ share (1.5) Cash, net of noncontrolling interests’ share 3.0 Withholding taxes (0.2) Net cash available $ 2.8 Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayments, working capital or other cash needs. Management believes that sufficient liquidity is available in the U.S. from cash balances and availability from our revolving credit facility. We elected to not permanently reinvest earnings from our foreign subsidiaries, and we recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S. From time to time, our foreign subsidiaries distribute earnings to the U.S. through dividends that are subject to applicable withholding taxes and noncontrolling interests’ share. Debt 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. Refer to Note 4 for further discussion of debt. Operating Activities 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. Investing Activities Capital Expenditures. 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 46 Table of Contents 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 $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 $0.4 billion during each of the first six months of 2025 and 2024. Refer to Note 4, Item 1A. “Risk Factors” contained in Part I of our 2024 Form 10-K, “Cautionary Statement” below and the discussion of our financial policy above. Cash Dividends and Distributions Paid to Noncontrolling Interests. 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 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. CONTRACTUAL OBLIGATIONS There have been no material changes in our contractual obligations since December 31, 2024. Refer to Note 11 and Part II, Items 7. and 7A. in our 2024 Form 10-K for information regarding our contractual obligations. CONTINGENCIES 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 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 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. of our 2024 Form 10-K, as updated by Note 7, for further information regarding litigation and other contingencies. NEW ACCOUNTING STANDARDS There were no significant updates to previously reported accounting standards included in Note 1 of our 2024 Form 10-K. CRITICAL ACCOUNTING ESTIMATES MD&A is based on our consolidated financial statements, which have been prepared in conformity with U.S. GAAP. The preparation of these statements requires that we make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. We base these estimates on historical experience and on assumptions that we consider reasonable under the circumstances; however, reported results could differ from those based on the current estimates under different assumptions or conditions. For a description of our critical accounting estimates that require us to make the most difficult, subjective or complex judgments, refer to our 2024 Form 10-K. We have not changed any of these policies from those previously disclosed in that report. 47 Table of Contents NET DEBT 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 downstream processing facilities). 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. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. Our net debt, which may not be comparable to similarly titled measures reported by other companies, follows (in millions): As of June 30, 2025 Current portion of debt $ 338 Long-term debt, less current portion 8,913 Consolidated debt 9,251 Less: consolidated cash and cash equivalents 4,490 FCX net debt 4,761 Less: debt for PTFI’s downstream processing facilities 3,234 a FCX net debt, excluding debt for PTFI’s downstream processing facilities $ 1,527 a. Represents PTFI’s senior notes and $250 million of borrowings under PTFI’s revolving credit facility. 48 Table of Contents PRODUCT REVENUES AND PRODUCTION COSTS Mining Product Revenues and Unit Net Cash Costs (Credits) We believe unit net cash costs (credits) per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although our measures may not be comparable to similarly titled measures reported by other companies. We present gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. We use the by-product method in our presentation of gross profit per pound of copper because (i) the majority of our revenues are copper revenues, (ii) we mine ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of our costs to revenues from the copper, gold, molybdenum and other metals we produce and (iv) it is the method used by our management and Board to monitor our mining operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change. We show revenue adjustments for prior period open sales as a separate line item. Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period sales. Noncash and other costs, net which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as ARO accretion and other adjustments, inventory write-offs and adjustments, stock-based compensation costs, long-lived asset impairments, idle facility costs, feasibility and optimization study costs, operational readiness and startup costs, restructuring and/or unusual charges. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements. 49 Table of Contents U.S. Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs Three Months Ended June 30, 2025 (In millions) By-Product Co-Product Method Method Copper Molybdenum a Other b Total Revenues, excluding adjustments $ 1,485 $ 1,485 $ 171 $ 51 $ 1,707 Site production and delivery, before net noncash and other costs shown below 1,063 942 131 40 1,113 By-product credits (171) — — — — Treatment charges 47 45 — 2 47 Net cash costs 939 987 131 42 1,160 DD&A 118 105 10 3 118 Noncash and other costs, net 50 c 46 4 — 50 Total costs 1,107 1,138 145 45 1,328 Other revenue adjustments, primarily for pricing on prior period open sales 2 2 — (1) 1 Gross profit $ 380 $ 349 $ 26 $ 5 $ 380 Copper sales (millions of recoverable pounds) 309 309 Molybdenum sales (millions of recoverable pounds) a 9 Gross profit per pound of copper/molybdenum: Revenues, excluding adjustments $ 4.81 $ 4.81 $ 19.87 Site production and delivery, before net noncash and other costs shown below 3.44 3.05 15.24 By-product credits (0.55) — — Treatment charges 0.15 0.15 — Unit net cash costs 3.04 3.20 15.24 DD&A 0.38 0.34 1.16 Noncash and other costs, net 0.16 c 0.15 0.45 Total unit costs 3.58 3.69 16.85 Other revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 — Gross profit per pound $ 1.24 $ 1.13 $ 3.02 Reconciliation to Amounts Reported Revenues Production and Delivery DD&A Totals presented above $ 1,707 $ 1,113 $ 118 Treatment charges (3) 44 — Noncash and other costs, net — 50 — Other revenue adjustments, primarily for pricing on prior period open sales 1 — — Eliminations and other 9 7 — U.S. copper mines 1,714 1,214 118 Other mining d 7,377 4,504 536 Corporate, other & eliminations (1,509) (1,436) 14 As reported in our consolidated financial statements $ 7,582 $ 4,282 $ 668 a. Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $26 million ($0.09 per pound of copper) for feasibility and optimization studies. d. Represents the combined total for our other mining operations as presented in Note 8. 50 Table of Contents U.S. 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 Other b Total Revenues, excluding adjustments $ 1,357 $ 1,357 $ 130 $ 42 $ 1,529 Site production and delivery, before net noncash and other costs shown below 1,022 925 110 33 1,068 By-product credits (126) — — — — Treatment charges 40 38 — 2 40 Net cash costs 936 963 110 35 1,108 DD&A 106 96 8 2 106 Noncash and other costs, net 37 c 34 2 1 37 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 Copper sales (millions of recoverable pounds) 293 293 Molybdenum sales (millions of recoverable pounds) a 7 Gross profit per pound of copper/molybdenum: Revenues, excluding adjustments $ 4.63 $ 4.63 $ 19.97 Site production and delivery, before net noncash and other costs shown below 3.48 3.15 16.87 By-product credits (0.43) — — Treatment charges 0.14 0.13 — Unit net cash costs 3.19 3.28 16.87 DD&A 0.36 0.33 1.21 Noncash and other costs, net 0.13 c 0.12 0.33 Total unit costs 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 Reconciliation to Amounts Reported Revenues Production and Delivery DD&A Totals presented above $ 1,529 $ 1,068 $ 106 Treatment charges — 40 — Noncash and other costs, net — 37 — Other revenue adjustments, primarily for pricing on prior period open sales 3 — — Eliminations and other 4 6 — U.S. copper mines 1,536 1,151 106 Other mining d 6,521 4,217 386 Corporate, other & eliminations (1,433) (1,493) 17 As reported in our consolidated financial statements $ 6,624 $ 3,875 $ 509 a. Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $14 million ($0.05 per pound of copper) for feasibility and optimization studies. d. Represents the combined total for our other mining operations as presented in Note 8. 51 Table of Contents U.S. 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 Other b Total 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 82 6 1 89 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 17 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 0.14 0.38 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 Production 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 — U.S. 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 a. Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $40 million ($0.07 per pound of copper) for feasibility and optimization studies. d. Represents the combined total for our other segments as presented in Note 8. 52 Table of Contents U.S. 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 Other b Total 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 76 5 1 82 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 14 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 0.12 0.39 Total unit costs 3.56 3.60 17.96 Gross profit per pound $ 0.72 $ 0.68 $ 1.22 Reconciliation to Amounts Reported Production 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 U.S. 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 a. Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $30 million ($0.05 per pound of copper) for feasibility and optimization studies. d. Represents the combined total for our other segments as presented in Note 8. 53 Table of Contents South America Operations Product Revenues, Production Costs and Unit Net Cash Costs Three Months Ended June 30, 2025 (In millions) By-Product Co-Product Method Method Copper Other a Total Revenues, excluding adjustments $ 1,184 $ 1,184 $ 115 $ 1,299 Site production and delivery, before net noncash and other costs shown below 732 672 76 748 By-product credits (98) — — — Treatment charges 16 16 — 16 Royalty on metals 2 2 — 2 Net cash costs 652 690 76 766 DD&A 113 103 10 113 Noncash and other costs, net 21 b 20 1 21 Total costs 786 813 87 900 Other revenue adjustments, primarily for pricing on prior period open sales (19) (19) (1) (20) Gross profit $ 379 $ 352 $ 27 $ 379 Copper sales (millions of recoverable pounds) 265 265 Gross profit per pound of copper: Revenues, excluding adjustments $ 4.47 $ 4.47 Site production and delivery, before net noncash and other costs shown below 2.76 2.53 By-product credits (0.37) — Treatment charges 0.06 0.06 Royalty on metals 0.01 0.01 Unit net cash costs 2.46 2.60 DD&A 0.42 0.39 Noncash and other costs, net 0.08 b 0.08 Total unit costs 2.96 3.07 Other revenue adjustments, primarily for pricing on prior period open sales (0.07) (0.07) Gross profit per pound $ 1.44 $ 1.33 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 1,299 $ 748 $ 113 Treatment charges (16) — — Royalty on metals (2) — — Noncash and other costs, net — 21 — Other revenue adjustments, primarily for pricing on prior period open sales (20) — — Eliminations and other — (1) — South America operations 1,261 768 113 Other mining c 7,830 4,950 541 Corporate, other & eliminations (1,509) (1,436) 14 As reported in our consolidated financial statements $ 7,582 $ 4,282 $ 668 a. Includes silver sales of 0.8 million ounces ($36.01 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing. b. Includes charges totaling $18 million ($0.07 per pound of copper) for feasibility and optimization studies. c. Represents the combined total for our other mining operations as presented in Note 8. 54 Table of Contents South America Operations Product Revenues, Production Costs and Unit Net Cash Costs Three Months Ended June 30, 2024 (In millions) By-Product Co-Product Method Method Copper Other a Total Revenues, excluding adjustments $ 1,326 $ 1,326 $ 147 $ 1,473 Site production and delivery, before net noncash and other costs shown below 828 b 754 88 842 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 19 — 19 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 2.49 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 0.06 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 Production 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 a. 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. b. Includes $65 million ($0.22 per pound of copper) of nonrecurring labor-related charges at Cerro Verde associated with a new CLA. c. Includes charges totaling $12 million ($0.04 per pound of copper) for feasibility studies. d. Represents the combined total for our other mining operations as presented in Note 8. 55 Table of Contents 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 Total 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 By-product credits (220) — — — Treatment charges 36 36 — 36 Royalty on metals 3 3 — 3 Net cash costs 1,310 1,399 163 1,562 DD&A 225 203 22 225 Noncash and other costs, net 35 b 34 1 35 Total costs 1,570 1,636 186 1,822 Other revenue adjustments, primarily for pricing on prior period open sales 54 54 2 56 Gross profit $ 855 $ 789 $ 66 $ 855 Copper sales (millions of recoverable pounds) 540 540 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 2.76 2.51 By-product credits (0.41) — Treatment charges 0.07 0.07 Royalty on metals 0.01 0.01 Unit net cash costs 2.43 2.59 DD&A 0.42 0.38 Noncash and other costs, net 0.06 b 0.06 Total unit costs 2.91 3.03 Other revenue adjustments, primarily for pricing on prior period open sales 0.10 0.10 Gross profit per pound $ 1.58 $ 1.46 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 2,621 $ 1,523 $ 225 Treatment charges (36) — — Royalty on metals (3) — — Noncash and other costs, net — 35 — Other revenue adjustments, primarily for pricing on prior period open sales 56 — — Eliminations and other (1) (2) (1) South America operations 2,637 1,556 224 Other mining c 13,594 9,218 885 Corporate, other & eliminations (2,921) (2,736) 25 As reported in our consolidated financial statements $ 13,310 $ 8,038 $ 1,134 a. Includes silver sales of 1.6 million ounces ($34.54 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing. b. Includes charges totaling $33 million ($0.06 per pound of copper) for feasibility and optimization studies. c. Represents the combined total for our other segments as presented in Note 8. 56 Table of Contents 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 Total 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 36 1 37 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 2.48 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 0.06 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 Production 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 a. 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. b. Includes $65 million ($0.11 per pound of copper) of nonrecurring labor-related charges at Cerro Verde associated with a new CLA. c. Includes charges totaling $23 million ($0.04 per pound of copper) for feasibility studies. d. Represents the combined total for our other segments as presented in Note 8. 57 Table of Contents 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 Total 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 41 36 1 78 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 0.09 70 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 Production 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) — — Other 1 — — 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 a. Includes silver sales of 1.1 million ounces ($34.47 per ounce average realized price). b. 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. c. Primarily represents tolling costs paid to PT Smelting. d. Represents the combined total for our other mining operations as presented in Note 8. 58 Table of Contents Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs Three Months Ended June 30, 2024 (In millions) Co-Product Method By-Product Method Copper Gold Silver & Other a Total Revenues, excluding adjustments $ 1,495 $ 1,495 $ 818 $ 42 $ 2,355 Site production and delivery, before net noncash and other costs shown below 536 340 186 10 536 By-product credits (895) — — — — Treatment charges 123 78 43 2 123 Export duties 75 48 26 1 75 Royalty on metals 90 57 32 1 90 Net cash (credits) costs (71) 523 287 14 824 DD&A 248 158 86 4 248 Noncash and other costs, net 64 b 40 22 2 64 Total costs 241 721 395 20 1,136 Other revenue adjustments, primarily for pricing on prior period open sales 93 93 31 4 128 Gross profit $ 1,347 $ 867 $ 454 $ 26 $ 1,347 Copper sales (millions of recoverable pounds) 337 337 Gold sales (thousands of recoverable ounces) 356 Gross profit per pound of copper/per ounce of gold: Revenues, excluding adjustments $ 4.44 $ 4.44 $ 2,299 Site production and delivery, before net noncash and other costs shown below 1.59 1.01 523 By-product credits (2.66) — — Treatment charges 0.36 0.23 119 Export duties 0.23 0.14 74 Royalty on metals 0.27 0.17 90 Unit net cash (credits) costs (0.21) 1.55 806 DD&A 0.74 0.47 242 Noncash and other costs, net 0.19 b 0.12 62 Total unit costs 0.72 2.14 1,110 Other revenue adjustments, primarily for pricing on prior period open sales 0.28 0.28 86 Gross profit per pound/ounce $ 4.00 $ 2.58 $ 1,275 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 2,355 $ 536 $ 248 Treatment charges (50) 73 c — Export duties (75) — — Royalty on metals (90) — — Noncash and other costs, net — 64 — Other revenue adjustments, primarily for pricing on prior period open sales 128 — — Other — (1) — Indonesia operations 2,268 672 248 Other mining d 5,789 4,696 244 Corporate, other & eliminations (1,433) (1,493) 17 As reported in our consolidated financial statements $ 6,624 $ 3,875 $ 509 a. Includes silver sales of 1.3 million ounces ($28.70 per ounce average realized price). b. 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. c. Represents tolling costs paid to PT Smelting. d. Represents the combined total for our other mining operations as presented in Note 8. 59 Table of Contents Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs Six Months Ended June 30, 2025 (In millions) Co-Product Method By-Product Method Copper Gold Silver & Other a Total Revenues, excluding adjustments $ 3,190 $ 3,190 $ 2,101 $ 70 $ 5,361 Site production and delivery, before net noncash and other costs shown below 1,392 828 546 18 1,392 By-product credits (2,188) — — — — Treatment charges 144 86 56 2 144 Export duties 202 119 79 4 202 Royalty on metals 199 118 80 1 199 Net cash (credits) costs (251) 1,151 761 25 1,937 DD&A 575 342 225 8 575 Noncash and other costs, net 175 b 104 69 2 175 Total costs 499 1,597 1,055 35 2,687 Other revenue adjustments, primarily for pricing on prior period open sales 19 19 16 1 36 Gross profit $ 2,710 $ 1,612 $ 1,062 $ 36 $ 2,710 Copper sales (millions of recoverable pounds) 733 733 Gold sales (thousands of recoverable ounces) 643 Gross profit per pound of copper/per ounce of gold: Revenues, excluding adjustments $ 4.35 $ 4.35 $ 3,260 Site production and delivery, before net noncash and other costs shown below 1.90 1.13 848 By-product credits (2.98) — — Treatment charges 0.19 0.12 87 Export duties 0.28 0.16 123 Royalty on metals 0.27 0.16 125 Unit net cash (credits) costs (0.34) 1.57 1,183 DD&A 0.78 0.47 350 Noncash and other costs, net 0.24 b 0.14 107 Total unit costs 0.68 2.18 1,640 Other revenue adjustments, primarily for pricing on prior period open sales 0.03 0.03 31 Gross profit per pound/ounce $ 3.70 $ 2.20 $ 1,651 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 5,361 $ 1,392 $ 575 Treatment charges (9) 135 c — Export duties (202) — — Royalty on metals (199) — — Noncash and other costs, net — 175 — Other revenue adjustments, primarily for pricing on prior period open sales 36 — — Indonesia operations 4,987 1,702 575 Other mining d 11,244 9,072 534 Corporate, other & eliminations (2,921) (2,736) 25 As reported in our consolidated financial statements $ 13,310 $ 8,038 $ 1,134 a. Includes silver sales of 1.5 million ounces ($33.78 per ounce average realized price). b. 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. c. Primarily represents tolling costs paid to PT Smelting. d. Represents the combined total for our other segments as presented in Note 8. 60 Table of Contents 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 Total 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 54 31 2 87 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 0.07 34 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 Production 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 a. Includes silver sales of 3.4 million ounces ($26.76 per ounce average realized price). b. 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. c. Represents tolling costs paid to PT Smelting. d. Represents the combined total for our other segments as presented in Note 8. 61 Table of Contents Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs Three Months Ended June 30, (In millions) 2025 2024 Revenues, excluding adjustments a $ 189 $ 144 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 DD&A 26 16 Noncash and other costs, net 6 5 Total costs 163 156 Gross profit (loss) $ 26 $ (12) Molybdenum sales (millions of recoverable pounds) a 9 7 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 0.71 Total unit costs 17.67 22.42 Gross profit (loss) per pound $ 2.85 $ (1.71) Reconciliation to Amounts Reported Production 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 a. 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. b. 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. 62 Table of Contents Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs Six Months Ended June 30, (In millions) 2025 2024 Revenues, excluding adjustments a $ 375 $ 296 Site production and delivery, before net noncash and other costs shown below 238 245 Treatment charges and other 18 13 Net cash costs 256 258 DD&A 52 32 Noncash and other costs, net 12 8 Total costs 320 298 Gross profit (loss) $ 55 $ (2) Molybdenum sales (millions of recoverable pounds) a 18 15 Gross profit (loss) per pound of molybdenum: Revenues, excluding adjustments a $ 20.43 $ 20.05 Site production and delivery, before net noncash and other costs shown below 12.95 16.63 Treatment charges and other 1.01 0.87 Unit net cash costs 13.96 17.50 DD&A 2.83 2.19 Noncash and other costs, net 0.63 0.51 Total unit costs 17.42 20.20 Gross profit (loss) per pound $ 3.01 $ (0.15) Reconciliation to Amounts Reported Production Six Months Ended June 30, 2025 Revenues and Delivery DD&A Totals presented above $ 375 $ 238 $ 52 Treatment charges and other (18) — — Noncash and other costs, net — 12 — Molybdenum mines 357 250 52 Other mining b 15,874 10,524 1,057 Corporate, other & eliminations (2,921) (2,736) 25 As reported in our consolidated financial statements $ 13,310 $ 8,038 $ 1,134 Six Months Ended June 30, 2024 Totals presented above $ 296 $ 245 $ 32 Treatment charges and other (13) — — Noncash and other costs, net — 8 — Molybdenum mines 283 253 32 Other mining b 15,554 10,229 1,039 Corporate, other & eliminations (2,892) (2,763) 33 As reported in our consolidated financial statements $ 12,945 $ 7,719 $ 1,104 a. 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. b. 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. 63 Table of Contents CAUTIONARY STATEMENT Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections or expectations relating to business outlook, strategy, goals or targets, and the underlying assumptions and estimated impacts on our business and stakeholders related thereto; global market conditions, including trade policies; ore grades and milling rates; production and sales volumes; unit net cash costs (credits) and operating costs; capital expenditures; operating plans, including mine sequencing; cash flows; liquidity; the full production and ramp-up of PTFI’s downstream processing facilities; potential extension of PTFI’s IUPK beyond 2041; export licenses, export duties and export volumes, including PTFI’s ability to continue exports of copper concentrate until full ramp-up is achieved at its new smelter in Indonesia; timing of shipments of inventoried production; our sustainability-related commitments and targets; our overarching commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; achievement of our 2030 climate targets and our 2050 net zero aspiration; improvements in operating procedures and technology innovations and applications; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; tax rates; the impact of copper, gold and molybdenum price changes; the impact of deferred intercompany profits on earnings; mineral reserve and mineral resource estimates; final resolution of settlements associated with ongoing legal and environmental proceedings; debt repurchases; and the ongoing implementation of our financial policy and future returns to shareholders, including dividend payments (base or variable) and share repurchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “could,” “to be,” “potential,” “assumptions,” “guidance,” “aspirations,” “future,” “commitments,” “pursues,” “initiatives,” “objectives,” “opportunities,” “strategy” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration and payment of dividends (base or variable), and timing and amount of any share repurchases are at the discretion of our Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, our financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable. Our share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion. We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. 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 concentrate through the full ramp-up of its new smelter in Indonesia; changes in export duties and tariff rates; achieving full production and ramp-up of PTFI’s downstream processing facilities; production rates; timing of shipments; price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; changes in cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions, including market volatility regarding trade policies and tariff uncertainty; reductions in liquidity and access to capital; changes in tax laws and regulations; political and social risks, including the potential effects of violence in Indonesia, civil unrest in Peru, and relations with local communities and Indigenous Peoples; operational risks inherent in mining, with higher inherent risks in underground mining; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations, including the ability to smelt and refine or inventory; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PTFI’s IUPK to extend mining rights from 2031 through 2041; process relating to the extension of PTFI’s IUPK beyond 2041; cybersecurity risks; any major public health crisis; labor relations, including labor-related work stoppages and increased costs; compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks, including availability of secure water supplies; impacts, expenses or results from litigation or investigations; tailings management; our ability to comply with our responsible production commitments under specific frameworks and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K. 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 64 Table of Contents 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. GAAP. 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.