What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-08 · 816 added, 317 removed, 1018 unchanged (53% of the section changed)

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

We are focused on restoring operations in the Grasberg Block Cave underground mine safely and sustainably, driving new technologies and efficiency programs to increase the profitability of our U.S.

and South America operations and pursuing our highly attractive portfolio of organic growth options to generate value for common stockholders.

We believe fundamentals for copper are favorable with growing demand supported by copper’s critical role in electrification initiatives, continued urbanization in developing countries, data centers and artificial intelligence (AI) growth and growing connectivity globally.

We continue to progress organic copper growth projects in the U.S.

and South America.

Across our U.S.

and South America operations, we are incorporating new applications, technologies and data analytics into our leaching processes.

We are targeting annual production of approximately 300 million pounds of copper from these initiatives in 2026 and believe there is potential for further significant increases in recoverable metal in future years.

Additionally, in March 2026, an environmental impact study was submitted to Chile regulatory authorities for a potential major expansion at our El Abra mine in Chile.

We achieved strong results in second-quarter 2026, supported by solid execution of our operating plans and favorable realized prices for copper, gold and molybdenum.

The strength and diversity of our portfolio of assets contributed to these results, as operating income from our U.S.

copper mines more than doubled in the first six months of 2026, compared to the first six months of 2025, primarily reflecting higher average realized copper and molybdenum prices.

This increase helped offset lower operating income from Indonesia during the continued phased ramp-up of the Grasberg Block Cave underground mine.

PT Freeport Indonesia (PTFI) has made steady progress with the phased ramp-up of the Grasberg Block Cave underground mine following the September 2025 external mud rush incident and we remain focused on a safe and sustainable ramp-up to full operating capacity.

Refer to “Operations – Indonesia” for further discussion of the Grasberg Block Cave ramp-up.

and South America operations, we are advancing testing of innovative technologies to target significant increases in incremental production from leaching initiatives.

We are targeting reaching an annual run rate of 300 million pounds of copper from these initiatives by the end of 2026 and believe there is potential for further significant increases in recoverable metal in future years.

We are finalizing cost estimates for an opportunity to more than double the concentrator capacity of the Bagdad operation in northwest Arizona and have advanced technical and economic studies in preparation for a potential investment decision during the second half of 2026.

Additionally, we are advancing our evaluation of a potential major expansion at our El Abra mine in Chile.

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

Our first-quarter 2026 operations and results were impacted by the September 2025 mud rush incident (Mud Rush Incident) at the Grasberg minerals district in Central Papua, Indonesia.

During first-quarter 2026, PT Freeport Indonesia (PTFI) progressed a series of activities to address the Mud Rush Incident and advance preparation for a safe and sustainable restoration of operations in the Grasberg Block Cave underground mine.

In March 2026, PTFI commenced a phased ramp-up of the Grasberg Block Cave underground mine, and the projected ramp-up schedule has been adjusted to incorporate modifications to material handling systems.

Refer to “Operations – Indonesia” for further discussion.

Net income attributable to common stockholders totaled $881 million in first-quarter 2026, compared with $352 million in first-quarter 2025, primarily reflecting higher average realized copper and gold prices and the recognition of a gain for the insurance settlement related to the Mud Rush Incident, partly offset by lower copper sales volumes from PTFI.

Refer to “Consolidated Results” for further discussion.

At March 31, 2026, we had consolidated debt of $9.4 billion and consolidated cash and cash equivalents of $3.7 billion.

Net debt totaled $2.4 billion, excluding $3.2 billion of debt for PTFI’s smelter and precious metals refinery (PMR) (collectively, PTFI’s downstream processing facilities).

In May 2026, we purchased 2.0 million shares of Cerro Verde common stock in the open market for $107 million, increasing our ownership interest in Cerro Verde from 55.08% to 55.66%.

Net income attributable to common stockholders totaled $984 million in second-quarter 2026, $772 million in second-quarter 2025, $1.9 billion for the first six months of 2026 and $1.1 billion for the first six months of 2025.

Higher net income attributable to common stock in the 2026 periods, compared to the 2025 periods, primarily reflects the impact of lower income taxes and noncontrolling interests in the 2026 periods associated with a higher contribution of operating income from our U.S.

copper mines.

The first six months of 2026 also include the recognition of a gain for the insurance settlement related to the September 2025 external mud rush incident.

Refer to “Consolidated Results” and “Business Divisions and Segments” for further discussion.

At June 30, 2026, we had consolidated debt of $9.4 billion and consolidated cash and cash equivalents of $4.1 billion.

Net debt totaled $2.1 billion, excluding $3.2 billion of debt for PTFI’s downstream processing facilities.

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

At March 31, 2026, 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 first-quarter 2026, we acquired 1.7 million shares of our common stock for a total cost of $93 million ($54.25 average cost per share).

At April 30, 2026, we have acquired a total of 53.7 million shares ($39.01 average cost per share) and have $2.9 billion available under our $5.0 billion share repurchase program.

At June 30, 2026, 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 2026, we acquired 3.4 million shares of our common stock for a total cost of $203 million ($59.30 average cost per share).

As of July 31, 2026, we have acquired a total of 55.4 million shares ($39.80 average cost per share) and have $2.8 billion available under our $5.0 billion share repurchase program.

Refer to Note 4 and “Capital Resources and Liquidity” for further discussion.

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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.

References to previous estimates refer to guidance provided in our 2025 Form 10-K.

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

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copper mines and Cerro Verde mine, and 33 million pounds produced by our primary molybdenum mines.

Projected consolidated sales volumes for second-quarter 2026 are expected to approximate 690 million pounds of copper, 140 thousand ounces of gold and 22 million pounds of molybdenum.

Projected sales volumes for the year 2026 are lower than previous estimates of 3.4 billion pounds of copper and 0.8 million ounces of gold, primarily reflecting a projected delay in achieving full ramp-up of the Grasberg Block Cave underground mine pending modifications to ore loading systems.

Refer to “Operations – Indonesia” for further discussion.

Projected consolidated sales volumes for third-quarter 2026 are expected to approximate 750 million pounds of copper, 160 thousand ounces of gold and 22 million pounds of molybdenum.

We expect an increase in second-half 2026 copper sales volumes, compared to first-half 2026, primarily as a result of the continued phased ramp-up of the Grasberg Block Cave underground mine and at our U.S.

copper mines associated with incremental production from leaching initiatives.

Consolidated copper and gold production volumes for the year 2026 are expected to exceed sales volumes, reflecting deferrals of approximately 100 million pounds of copper and 50 thousand ounces of gold associated with inventory held at PTFI’s smelting operations.

Projected sales volumes are dependent on operational performance;

the ramp-up of the Grasberg Block Cave underground mine at PTFI;

the phased ramp-up of the Grasberg Block Cave underground mine at PTFI;

weather-related conditions;

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Consolidated Unit Net Cash Costs

Based on achievement of current sales volume and cost estimates and assuming average prices of $4,500 per ounce of gold and $25.00 per pound of molybdenum for the remainder of 2026, consolidated unit net cash costs (net of by-product credits and excluding idle facility and restoration costs associated with the Mud Rush Incident at PTFI) for our copper mines are expected to average $1.95 per pound of copper for the year 2026 (including $2.24 per pound of copper in second-quarter 2026).

The impact of price changes on consolidated unit net cash costs for the remainder of 2026 would approximate $0.02 per pound of copper for each $100 per ounce change in the

average price of gold and $0.03 per pound of copper for each $2 per pound change in the average price of molybdenum.

Following the onset of military conflict in the Middle East in late February 2026, costs for certain petroleum-based energy products, sulfur and sulfuric acid, and other consumables have risen significantly.

Prices for diesel fuel and sulfuric acid have been highly volatile with significant regional dislocation.

Current unit net cash cost estimates for the year 2026 are higher than previous estimates, reflecting revised sales volumes at PTFI and higher costs for energy and other consumables, partly offset by higher by-product credits related to higher metal price assumptions.

Following the Mud Rush Incident and until PTFI’s operations return to normal capacity, a portion of PTFI's production and delivery costs will be recognized as idle facility costs, which are non-inventoriable.

Idle facility and restoration costs are expected to total $1.3 billion for the year 2026 (including $0.3 billion in second-quarter 2026).

Based on achievement of current sales volume and cost estimates and assuming average prices of $4,000 per ounce of gold and $30.00 per pound of molybdenum for the second half of 2026, consolidated unit net cash costs (net of by-product credits and excluding idle facility and restoration costs) for our copper mines are expected to average $1.90 per pound of copper for the year 2026 (including $2.00 per pound of copper in third-quarter 2026).

The impact of price changes on consolidated unit net cash costs for the second half of 2026 would approximate $0.02 per pound of copper for each $100 per ounce change in the average price of gold and $0.03 per pound of copper for each $2 per pound change in the average price of molybdenum.

During the phased ramp-up period of the Grasberg Block Cave underground mine and until PTFI’s operations return to normal capacity, a portion of PTFI's production and delivery costs will be recognized as idle facility costs, which are non-inventoriable.

Idle facility and restoration costs are expected to approximate $1.2 billion for the year 2026 (including $0.3 billion in third-quarter 2026).

Refer to “Operations – Indonesia” for further discussion.

Projected unit net cash costs for the year 2026 are dependent on operational performance;

the ramp-up of the Grasberg Block Cave underground mine at PTFI;

the phased ramp-up of the Grasberg Block Cave underground mine at PTFI;

impacts related to the conflict in the Middle East, including changes in energy costs and other consumables;

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other working capital changes;

and other factors, such as the ramp-up of the Grasberg Block Cave underground mine at PTFI and impacts related to the conflict in the Middle East, including changes in energy costs and other consumables.

Consolidated operating cash flows are expected to approximate $8.7 billion for the year 2026, including $0.2 billion of working capital and other sources, based on current sales volume and cost estimates, and assuming average prices of $6.00 per pound of copper, $4,500 per ounce of gold and $25.00 per pound of molybdenum for the remainder of 2026.

Estimated consolidated operating cash flows for the year 2026 also reflect a projected income tax provision of $2.6 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2026).

The impact of price changes on consolidated operating cash flows for the remainder of 2026 would approximate $220 million for each $0.10 per pound change in the average price of copper, $50 million for each $100 per ounce change in the average price of gold and $90 million for each $2 per pound change in the average price of molybdenum.

and other factors, such as the phased ramp-up of the Grasberg Block Cave underground mine at PTFI and impacts related to the conflict in the Middle East, including changes in energy costs and other consumables.

Consolidated operating cash flows are expected to approximate $8.3 billion for the year 2026, net of $0.3 billion of working capital and other uses, based on current sales volume and cost estimates, and assuming average prices of $6.00 per pound of copper, $4,000 per ounce of gold and $30.00 per pound of molybdenum for the second half of 2026.

Estimated consolidated operating cash flows for the year 2026 include a projected income tax provision of $2.6 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2026).

The impact of price changes on consolidated operating cash flows for the second half of 2026 would approximate $150 million for each $0.10 per pound change in the average price of copper, $40 million for each $100 per ounce change in the average price of gold and $45 million for each $2 per pound change in the average price of molybdenum.

Consolidated Capital Expenditures

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Sustaining capital and other 1.3

Includes $1.4 billion for planned projects, primarily associated with underground mine development and supporting mill and power capital costs in the Grasberg minerals district, 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.

Includes $1.4 billion for planned projects, primarily associated with underground mine development and supporting mill and power capital costs in the Grasberg minerals district and a leaching project at El Abra, and $1.6 billion for discretionary growth projects, primarily in the Grasberg minerals district for the continued development of Kucing Liar and at Bagdad for tailings infrastructure.

Expected capital expenditures for the year 2026 do not include project capital costs associated with the expansion project at Bagdad, which we are preparing for a potential investment decision during the second half of 2026.

Refer to “Operations – United States” for further discussion.

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.

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This graph presents London Metal Exchange (LME) and Commodity Exchange Inc.

(COMEX) copper settlement prices and the combined reported stocks of copper at the LME, COMEX and the Shanghai Futures Exchange from January 2016 through March 2026.

(COMEX) copper settlement prices and the combined reported stocks of copper at the LME, COMEX and the Shanghai Futures Exchange from January 2016 through June 2026.

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.

In January 2026, both LME and COMEX settlement copper prices closed at all-time highs of $6.28 per pound and $6.18 per pound, respectively.

Higher copper prices were influenced by increased speculative buying in several metals, supported by macro factors such as U.S.

dollar weakness and expectations for above-trend demand growth.

In March 2026, LME and COMEX settlement copper prices declined from these highs in response to conflict in the Middle East, which impacted trade flows and energy infrastructure, resulting in significantly higher oil prices, a stronger U.S.

dollar, renewed inflation concerns and revised economic forecasts.

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

During first-quarter 2026, LME copper settlement prices averaged $5.83 per pound (ranging from a low of $5.36 per pound to a high of $6.28 per pound) and closed at $5.52 per pound on March 31, 2026.

The LME copper settlement price was $5.90 per pound on April 30, 2026.

During second-quarter 2026, LME copper settlement prices averaged $6.05 per pound (ranging from a low of $5.51 per pound to a high of $6.39 per pound) and closed at $6.05 per pound on June 30, 2026.

The LME copper settlement price was $6.28 per pound on July 31, 2026, and on August 6, 2026, the LME copper settlement price closed at an all-time high of $6.56 per pound.

Copper sales from our U.S.

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

During first-quarter 2026, COMEX copper settlement prices averaged $5.79 per pound (ranging from a low of $5.34 per pound to a high of $6.18 per pound) and closed at $5.59 per pound on March 31, 2026.

The COMEX copper settlement price was $5.93 per pound on April 30, 2026.

This graph presents London Bullion Market Association (London) PM gold prices from January 2016 through March 2026.

The prospect of additional U.S.

interest rate reductions, geopolitical tensions, trade uncertainty and strong demand from central banks around the world continued to influence gold prices in first-quarter 2026.

In January 2026, the London PM gold price closed at an all-time high of $5,405 per ounce before declining as macro conditions tightened, driven by a stronger U.S.

dollar, higher treasury yields and rising energy costs stemming from the conflict in the Middle East.

During first-quarter 2026, London PM gold prices averaged $4,873 per ounce (ranging from a low of $4,353 per ounce to a high of $5,405 per ounce) and closed at $4,608 per ounce on March 31, 2026.

The London PM gold price closed at $4,611 per ounce on April 30, 2026.

This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices from January 2016 through March 2026.

During second-quarter 2026, COMEX copper settlement prices averaged $6.16 per pound (ranging from a low of $5.54 per pound to a high of $6.65 per pound) and closed at $6.19 per pound on June 30, 2026.

The COMEX copper settlement price was $6.44 per pound on July 31, 2026, and on August 5, 2026, the COMEX copper settlement price closed at an all-time high of $6.70 per pound.

The conflict in the Middle East continues to contribute to copper price volatility.

While direct impacts on copper demand have been limited, secondary effects, including higher energy prices and freight costs, are weighing on global manufacturing activity and delaying demand recovery, particularly in energy-importing regions.

We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in electrification initiatives, continued urbanization in developing countries, data center and AI growth and growing connectivity globally.

This graph presents London Bullion Market Association (London) PM gold prices from January 2016 through June 2026.

During second-quarter 2026, gold prices retreated from all-time highs reached at the beginning of 2026, as macroeconomic conditions tightened, driven by a stronger U.S.

dollar, higher U.S.

treasury yields and rising energy costs stemming from the conflict in the Middle East.

During second-quarter 2026, London PM gold prices averaged $4,506 per ounce (ranging from a low of $4,002 per ounce to a high of $4,871 per ounce) and closed at $4,026 per ounce on June 30, 2026.

The London PM gold price closed at $4,027 per ounce on July 31, 2026.

This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices from January 2016 through June 2026.

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

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

During first-quarter 2026, the weekly average prices for molybdenum averaged $25.50 per pound (ranging from a low of $22.42 per pound to a high of $28.11 per pound) and closed at $26.60 per pound on March 31, 2026.

The Platts Metals Daily Molybdenum Dealer Oxide weekly average price closed at $27.85 per pound on April 30, 2026.

During second-quarter 2026, the weekly average prices for molybdenum averaged $29.40 per pound (ranging from a low of $26.67 per pound to a high of $31.29 per pound) and closed at $31.29 per pound on June 30, 2026.

The Platts Metals Daily Molybdenum Dealer Oxide weekly average price closed at $32.61 per pound on July 31, 2026.

CONSOLIDATED RESULTS

Three Months Ended March 31,

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

2026 2025 2026 2025

SUMMARY FINANCIAL DATA

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

Operating cash flows e

Operating cash flows f

$ 2,048 $ 2,195 $ 3,543 $ 3,253

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Refer to “Business Divisions and Segments” for a summary of revenues and operating income by operating division.

Includes favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $34 million ($12 million to net income attributable to common stock or $0.01 per share) in first-quarter 2026 and $70 million ($24 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025.

Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $98 million ($35 million to net income attributable to common stock or $0.02 per share) in second-quarter 2026, $(35) million ($(10) million to net income attributable to common stock or $(0.01) per share) in second-quarter 2025, $58 million ($24 million to net income attributable to common stock or $0.02 per share) for the first six months of 2026 and $63 million ($21 million to net income attributable to common stock or $0.01 per share) for the first six months of 2025.

Refer to Note 5 for further discussion.

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

Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions to operating income totaling $70 million ($23 million to net income attributable to common stock or $0.02 per share) in first-quarter 2026 and $114 million ($34 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025.

Net income attributable to common stock includes after-tax net credits totaling $51 million ($0.04 per share), primarily associated with the Mud Rush Incident reflecting a gain from the insurance settlement, partly offset by idle facility and restoration costs (refer to “Operations – Indonesia” for discussion).

See below for further discussion of these net credits.

Cash provided by (used for) working capital totaled $0.1 billion in first-quarter 2026 and $(0.3) billion in first-quarter 2025.

Three Months Ended March 31,

Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions) additions to operating income totaling $(18) million ($(6) million to net income attributable to common stock or less than $0.01 per share) in second-quarter 2026, $34 million ($9 million to net income attributable to common stock or $0.01 per share) in second-quarter 2025, $52 million ($17

million to net income attributable to common stock or $0.01 per share) for the first six months of 2026 and $148 million ($44 million to net income attributable to common stock or $0.03 per share) for the first six months of 2025.

Net income attributable to common stock ( i.e.

, net of any taxes and noncontrolling interests) includes net charges totaling $96 million ($0.06 per share) in second-quarter 2026 and $45 million ($0.03 per share) for the first six months of 2026, primarily reflecting idle facility and restoration costs associated with PTFI’s September 2025 external mud rush incident.

Net charges for the first six months of 2026 were partially offset by a gain on the insurance settlement associated with the September 2025 external mud rush incident.

Net income attributable to common stock ( i.e.

, net of any taxes and noncontrolling interests) includes net charges totaling $18 million ($0.01 per share) in second-quarter 2025, primarily associated with adjustments to environmental obligations and related litigation reserves and oil and gas impairments, and $24 million ($0.02 per share) for the first six months of 2025, primarily associated with remediation costs related to the October 2024 fire incident at PTFI’s smelter, charges for the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities and oil and gas impairments.

Cash used for working capital, including tax payments, totaled $596 million in second-quarter 2026, $45 million in second-quarter 2025, $457 million for the first six months of 2026 and $342 million for the first six months of 2025.

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

2026 2025 2026 2025

SUMMARY OPERATING DATA

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Average realized price per pound $ 6.17 $ 4.54

$ 6.04 $ 4.48

Site production and delivery costs per pound a

$ 2.71 $ 3.28 b

Unit net cash costs per pound a

$ 1.13 $ 1.94 b

Gold (thousands of recoverable ounces)

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Sales, excluding purchases

123 522 244 650

Average realized price per ounce $ 4,520 $ 3,291 $ 4,704 $ 3,260

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

Excludes $0.62 per pound of idle facility and restoration costs associated with the Mud Rush Incident at PTFI.

Excludes $0.40 per pound in second-quarter 2026 and $0.50 per pound for the first six months of 2026 of idle facility and restoration costs associated with PTFI’s September 2025 external mud rush incident.

Refer to “Operations – Indonesia” for further discussion.

Consolidated revenues totaled $6.2 billion in first-quarter 2026 and $5.7 billion in first-quarter 2025.

Our revenues primarily include the sale of copper cathode, copper rod and copper concentrate, as well as gold and molybdenum in various forms.

Consolidated revenues totaled $7.0 billion in second-quarter 2026, $7.6 billion in second-quarter 2025 and $13.3 billion for both the first six months of 2026 and 2025.

Our revenues primarily include the sale of copper cathode, copper rod and copper concentrate, as well as gold and molybdenum products in various forms.

Refer to Note 8 for a summary of product revenues.

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

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

Consolidated revenues – 2025 period $ 7,582 $ 13,310

(Lower) higher sales volumes:

Copper (1,389) (2,337)

Gold (1,313) (1,323)

Molybdenum 69 154

Higher average realized prices:

Copper 1,157 2,132

Molybdenum 193 278

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Lower treatment charges 8 33

Lower royalties and export duties 70

Other, including intercompany eliminations 151

Lower export duties 146 202

Lower royalties 75 90

Silver and other, including intercompany eliminations 14 169

Consolidated revenues – 2026 period $ 7,029 $ 13,263

Sales Volumes.

Consolidated copper and gold sales volumes decreased in first-quarter 2026, compared to first-quarter 2025, primarily reflecting lower operating rates at PTFI following the Mud Rush Incident.

As a fully integrated producer of refined copper and gold in Indonesia, there may be variability in the timing between production and sales of refined copper and gold.

Consolidated copper and gold sales volumes decreased in the 2026 periods, compared to the 2025 periods, primarily reflecting lower operating rates at PTFI during the phased ramp-up of the Grasberg Block Cave underground mine.

Refer to “Operations” for further discussion of sales volumes at our mining operations.

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

Our average realized prices in first-quarter 2026, compared with first-quarter 2025, were 30% higher for copper, 59% higher for gold and 16% higher for molybdenum.

Average realized copper prices include net (unfavorable) favorable adjustments to current period provisionally priced copper sales totaling $(55) million in first-quarter 2026 and $46 million in first-quarter 2025.

Our average realized prices in second-quarter 2026, compared with second-quarter 2025, were 36% higher for copper, 37% higher for gold and 36% higher for molybdenum.

Average realized prices for the first six months of 2026, compared with the first six months of 2025, were 35% higher for copper, 44% higher for gold and 26% higher for molybdenum.

Average realized copper prices include net favorable adjustments to current period provisionally priced copper sales totaling $40 million in second-quarter 2026, $69 million in second-quarter 2025, $59 million for the first six months of 2026 and $87 million for the first six months of 2025.

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

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Prior Period Provisionally Priced Copper Sales.

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

, provisionally priced sales at December 31, 2025 and 2024) recorded in consolidated revenues totaled $34 million in first-quarter 2026 and $70 million in first-quarter 2025.

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

, provisionally priced sales at March 31, 2026 and 2025, and December 31,

2025 and 2024) recorded in consolidated revenues totaled $98 million in second-quarter 2026, $(35) million in second-quarter 2025, $58 million for the first six months of 2026 and $63 million for the first six months of 2025.

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

At March 31, 2026, we had provisionally priced copper sales totaling 136 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $5.58 per pound, subject to final LME copper settlement prices over the next several months.

We estimate that each $0.05 change in the price realized from the March 31, 2026, recorded provisional price would have an approximate $12 million effect on 2026 revenues ($4 million to 2026 net income attributable to common stock).

The LME copper settlement price closed at $5.90 per pound on April 30, 2026.

At June 30, 2026, we had provisionally priced copper sales totaling 202 million pounds (99 million pounds net of intercompany sales and noncontrolling interests) recorded at an average price of $6.07 per pound, subject to final LME copper settlement prices over the next several months.

We estimate that each $0.05 change in the price realized from the June 30, 2026, recorded provisional price would have an approximate $9 million effect on 2026 revenues ($3 million to 2026 net income attributable to common stock).

The LME copper settlement price closed at $6.28 per pound on July 31, 2026.

Atlantic Copper Revenues.

Atlantic Copper revenues totaled $969 million in first-quarter 2026, compared to $755 million in first-quarter 2025, primarily reflecting higher copper prices, partly offset by lower copper sales volumes.

Revenues at Atlantic Copper, our wholly owned smelter and refinery in Huelva, Spain, totaled $1.0 billion in second-quarter 2026, $0.8 billion in second-quarter 2025, $2.0 billion for the first six months of 2026 and $1.6 billion for the first six months of 2025.

Higher revenues in the 2026 periods, compared to the 2025 periods, primarily reflect higher metals prices, partly offset by lower copper and gold sales volumes.

Sales of Purchased Copper.

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Rod & Refining operations.

The volumes of copper purchases vary depending on cathode production from our operations and totaled 10 million pounds in first-quarter 2026 and 66 million pounds in first-quarter 2025.

The volumes of copper purchases vary depending on cathode production from our operations and totaled 37 million pounds in second-quarter 2026, 35 million pounds in second-quarter 2025, 47 million pounds for the first six months of 2026 and 101 million pounds for the first six months of 2025.

Revenues associated with the sale of purchased copper vary with the volume of copper purchases and changes in copper prices.

During first-quarter 2026, we were able to meet customer demand for copper rod primarily using copper cathode produced by our U.S.

and South America mining operations, resulting in a decrease in purchased copper volumes.

Treatment Charges.

Revenues from our copper concentrate sales are recorded net of treatment charges, which will vary with market conditions, sales volumes and the price of copper.

Treatment charges totaled $2 million in first-quarter 2026, compared to $28 million in first-quarter 2025, primarily reflecting lower treatment charge rates as a result of favorable market conditions and the lack of copper concentrate sales volumes in Indonesia now that PTFI is a fully integrated producer of refined copper and gold.

Export Duties and Royalties.

Treatment charges totaled $8 million in second-quarter 2026, $16 million in second-quarter 2025, $10 million for the first six months of 2026 and $43 million for the first six months of 2025.

The 2026 periods primarily reflect lower treatment charge rates as a result of favorable market conditions and the lack of copper concentrate sales volumes in Indonesia as PTFI is now a fully integrated producer of refined copper, gold and silver.

Export Duties.

Prior to the expiration of its export license in September 2025, PTFI was assessed export duties on copper concentrate sales at a rate of 7.5%.

PTFI incurred export duties totaling $55 million in first-quarter 2025.

Refer to Note 11 of the 2025 Form 10-K for further discussion.

PTFI incurred export duties totaling $146 million in second-quarter 2025 and $202 million for the first six months of 2025.

Refer to Note 11 of our 2025 Form 10-K for further discussion.

PTFI pays royalties on all copper and gold sales, the amount of which varies with sales volumes and metal prices.

Royalties totaled $53 million in first-quarter 2026 and $68 million in first-quarter 2025.

Royalties totaled $60 million in second-quarter 2026, $135 million in second-quarter 2025, $113 million for the first six months of 2026 and $203 million for the first six months of 2025.

Production and Delivery Costs

Consolidated production and delivery costs totaled $4.1 billion in first-quarter 2026 and $3.8 billion in first-quarter 2025.

First-quarter 2026 included $406 million of idle facility and restoration costs associated with the Mud Rush Incident, and first-quarter 2025 included charges totaling $73 million associated with a planned maintenance turnaround at the Miami smelter.

Consolidated production and delivery costs totaled $4.3 billion in both second-quarter 2026 and 2025, $8.4 billion for the first six months of 2026 and $8.0 billion for the first six months of 2025.

The 2026 periods, compared with the 2025 periods, primarily reflect higher costs of copper purchases at Atlantic Copper and higher costs for supplies, diesel fuel and other consumables at our mining operations, partly offset by the impact of reduced operating rates at PTFI following the September 2025 external mud rush incident.

The first six months of 2025 also included charges totaling $73 million associated with a planned maintenance turnaround at the Miami smelter.

Mining Unit 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 unit site production and delivery costs (before net noncash and other costs) for our copper mines averaged $3.29 per pound of copper in first-quarter 2026 and $2.59 per pound of copper in first-quarter 2025.

First-quarter 2026 consolidated unit site production and delivery costs exclude $0.62 per pound of copper for idle facility and restoration costs associated with the Mud Rush Incident.

Consolidated unit site production and delivery costs (before net noncash and other costs) for our copper mines averaged $3.28 per pound of copper in second-quarter 2026 and for the first six months of 2026, compared to $2.71 per pound of copper in second-quarter 2025 and $2.65 per pound of copper for the first six months of 2025.

Idle facility and restoration costs totaled $284 million ($0.40 per pound of copper) in second-quarter 2026 and $690 million ($0.50 per pound of copper) for the first six months of 2026, which were excluded from consolidated net cash costs.

Refer to “Operations” for further discussion of unit net cash costs associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated statements of income.

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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 $514 million in first-quarter 2026 (which included $93 million of non-inventoriable idle facility costs associated with the Mud Rush Incident) and $466 million in first-quarter 2025.

The increase in first-quarter 2026 DD&A, compared to first-quarter 2025, primarily reflects higher depreciation associated with placing assets into service at our U.S.

copper mines and at PTFI in 2025, partly offset by lower UOP depreciation as a result of lower operating rates at PTFI.

Based on current sales volume estimates, consolidated DD&A is estimated to approximate $2.3 billion for the year 2026, including $0.3 billion for idle facility costs associated with the Mud Rush Incident.

Consolidated depreciation, depletion and amortization (DD&A) totaled $523 million in second-quarter 2026, $668 million in second-quarter 2025, $1.0 billion for the first six months of 2026 and $1.1 billion for the first six months of 2025.

The decrease in DD&A in the 2026 periods, compared to the 2025 periods, primarily reflects lower UOP depreciation as a result of lower operating rates at PTFI, partly offset by higher depreciation associated with placing assets into service at our U.S.

copper mines and at PTFI in 2025.

Based on current sales volume estimates, consolidated DD&A is estimated to approximate $2.3 billion for the year 2026, including $0.3 billion recognized as idle facility costs associated with the September 2025 external mud rush incident.

Refer to Note 7 for further discussion of idle facility costs.

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.

Environmental obligations 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.

Net charges for environmental obligations and shutdown costs totaled $17 million in first-quarter 2026 and $10 million in first-quarter 2025.

PTFI Mud Rush Incident Insurance Settlement

In first-quarter 2026, PTFI recognized a gain of $0.7 billion for an insurance settlement associated with the Mud Rush Incident under its property and business interruption policies.

PTFI collected this settlement in April 2026.

Net charges for environmental obligations and shutdown costs totaled $13 million in second-quarter 2026, $27 million in second-quarter 2025, $30 million for the first six months of 2026 and $37 million for the first six months of 2025.

Gain on PTFI Mud Rush Incident Insurance Settlement

In first-quarter 2026, PTFI recognized a gain of $0.7 billion ($0.2 billion after taxes and noncontrolling interests) for an insurance settlement associated with the September 2025 external mud rush incident under its property and business interruption policies.

PTFI collected the proceeds from this settlement in April 2026.

Interest Expense, Net

Consolidated interest costs (before capitalization) totaled $174 million in both first-quarter 2026 and 2025.

Lower capitalized interest of $60 million in first-quarter 2026, compared to $104 million in first-quarter 2025, primarily reflects the impact of placing PTFI’s downstream processing facilities into service in 2025.

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

Consolidated interest expense, net totaled $95 million in second-quarter 2026, $82 million in second-quarter 2025, $209 million for the first six months of 2026 and $152 million for the first six months of 2025.

Higher interest expense, net for the 2026 periods, primarily reflects the placement of assets in service at our U.S.

copper mines and at PTFI in 2025, which reduced the amount of interest eligible for capitalization in 2026.

Refer to Note 4 for further discussion of consolidated interest costs (before capitalization) and capitalized interest.

Other Income, Net

Other income, net, which totaled $11 million in first-quarter 2026 and $58 million in first-quarter 2025, primarily includes amounts associated with interest income, currency exchange gains and losses, and mark-to-market impacts of trust assets used to satisfy financial assurance obligations for our New Mexico mining operations.

Lower other income, net, in first-quarter 2026, compared to first-quarter 2025, primarily reflects currency exchange losses, partly offset by a gain of $22 million recognized in first-quarter 2026 for interest to be collected by Cerro Verde associated with the closure of its 2020 income tax audit.

Other income, net, primarily includes amounts associated with interest income, currency exchange gains and losses, and mark-to-market impacts associated with investments and trust assets used to satisfy financial assurance obligations for our New Mexico mining operations.

Other income, net, which totaled $22 million in second-quarter 2026, $41 million in second-quarter 2025, $33 million for the first six months of 2026 and $99 million for the first six months of 2025, was lower in the 2026 periods reflecting mark-to-market impacts associated with equity investments.

Lower other income, net, in the first six months of 2026, also reflects net currency exchange losses, compared to net currency exchange gains for the first six months of 2025.

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

Three Months Ended March 31,

Tax Rate Income Tax Provision Income (Loss) a

Six Months Ended June 30,

Tax Rate Income Tax (Provision) Benefit Income (Loss) a

Tax Rate Income Tax (Provision) Benefit

$ 434 —% $ (5) $ (75) —% $ 2

$ 1,049 6% $ (58) c

South America 1,571 40% (624) 890 39% (344)

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Eliminations and other 9 N/A 3

Rate adjustment c

Rate adjustment d

— N/A (52) — N/A 29

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In addition to our U.S.

copper and molybdenum mines, which had operating income of $778 million in first-quarter 2026 and $317 million in first-quarter 2025 (refer to “Business Divisions and Segments”), the U.S.

copper and molybdenum mines, the U.S.

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

jurisdiction also includes net revisions to environmental obligation estimates and charges associated with legacy oil and gas properties.

Refer to “Business Divisions and Segments” for additional information.

income tax provision primarily relates to the U.S.

Corporate Alternative Minimum Tax (CAMT) provisions, which do not benefit from regular tax U.S.

net operating loss carryforwards.

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

Assuming achievement of current sales volume and cost estimates and average prices of $6.00 per pound of copper, $4,500 per ounce of gold and $25.00 per pound of molybdenum for the remainder of 2026, we estimate our consolidated effective tax rate for the year 2026 would approximate 30% (including approximately $100 million of U.S.

Corporate Alternative Minimum Taxes (CAMT)).

Changes in projected sales volumes and average prices during 2026 would incur tax impacts at estimated effective rates of 40% for Peru and 36% for Indonesia.

Given our U.S.

tax position (including potential CAMT), at higher copper prices, we would expect our consolidated effective tax rate to decline because of a higher share of earnings from our U.S.

Assuming achievement of current sales volume and cost estimates and prices of $6.00 per pound for copper, $4,000 per ounce for gold and $30.00 per pound for molybdenum for the second half of 2026, we estimate our consolidated effective tax rate for the year 2026 would approximate 30%, including estimated effective tax rates of 40% for Peru, 36% for Indonesia and 7% for the U.S.

(associated with CAMT provisions).

Changes in projected sales volumes, commodity prices, and the relative proportion of jurisdictional income during the second half of 2026 could impact our consolidated effective tax rate for the year 2026.

Noncontrolling Interests

Net income attributable to noncontrolling interests, which is primarily associated with PTFI, Cerro Verde and El Abra, totaled $0.5 billion in first-quarter 2026 and $0.4 billion in first-quarter 2025.

Net income attributable to noncontrolling interests, which is primarily associated with PTFI, Cerro Verde and El Abra, totaled $407 million in second-quarter 2026, $775 million in second-quarter 2025, $0.9 billion for the first six months of 2026 and $1.2 billion for the first six months of 2025.

Refer to "Business Divisions and Segments” below for net income attributable to noncontrolling interests for each of our business segments.

Based on achievement of current sales volume and cost estimates and assuming average prices of $6.00 per pound of copper, $4,500 per ounce of gold and $25.00 per pound of molybdenum for the remainder of 2026, we estimate that net income attributable to noncontrolling interests will approximate $2.0 billion for the year 2026.

In May 2026, we increased our ownership interest in Cerro Verde from 55.08% to 55.66%.

Based on achievement of current sales volume and cost estimates and assuming average prices of $6.00 per pound of copper, $4,000 per ounce of gold and $30.00 per pound of molybdenum for the second half of 2026, we estimate that net income attributable to noncontrolling interests will approximate $2.0 billion for the year 2026, which would represent approximately 24% of our consolidated income before income taxes.

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

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

In first-quarter 2026, Atlantic Copper purchased 75% of its concentrate from third parties and 25% from our South America operations.

Corporate, Other & Eliminations consist of our other mining operations, exploration activities, legacy oil and gas properties, corporate and elimination items.

For the first six months of 2026, Atlantic Copper purchased 82% of its concentrate from third parties and 18% from our South America operations.

Corporate, Other & Eliminations consist of our other mining operations, exploration activities, corporate and elimination items.

Other mining operations include the Miami smelter, molybdenum conversion facilities in the U.S.

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Unaffiliated customers $ 17 $ 11 $ 28 $ 1,159 $ 323 $ 1,482 $ 1,482 $ — $ 2,228 $ 1,024 $ 785 a

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Environmental obligations and shutdown costs — — — — — — — — — — 13 13

PTFI mud rush incident insurance settlement — — — — — — (699) — — — — (699)

Gain on sale of assets — — — — — — — — — (18) — (18)

Operating income (loss) 265 569 834 736 104 840 499 31 22 26 (249) 2,003

Interest expense, net (1) — (1) (6) — (6) (6) — — (10) (72) (95)

Other (expense) income, net (1) (1) (2) (4) 4 — (2) — — 1 14 11

Other income (expense), net — 1 1 15 1 16 (10) — (1) 6 10 22

Provision for income taxes — — — (298) (45) (343) (164) — — (4) (33) (544)

Equity in affiliated companies’ net earnings — — — — — — 5 — — — — 5

Net income attributable to noncontrolling interests — — — (182) (19) (201) (292) — — — (13) (506)

Net (income) loss attributable to noncontrolling interests — — — (214) (29) (243) (175) — — — 11 (407)

Net income attributable to common stockholders 984

Total assets at March 31, 2026 3,434 7,512 10,946 8,772 2,301 11,073 27,959 2,006 374 1,904 4,578 58,840

Total assets at June 30, 2026 3,551 7,736 11,287 9,013 2,441 11,454 27,949 1,998 390 2,054 4,595 59,727

Capital expenditures 50 202 252 82 89 171 516 20 14 67 64 1,104

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Unaffiliated customers $ 63 $ 64 $ 127 $ 836 $ 183 $ 1,019 $ 3,419

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Intersegment 559 1,028 1,587

193 49 242 (2) d

180 9 3 (2,019) —

Production and delivery 435 779 1,214 590 178 768 1,124 128 1,693 791

(1,436) 4,282

DD&A 46 72 118 94 19 113 389 26 1 7 14 668

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Provision for income taxes — — — (139) (12) (151) (677) — — (2) (20) (850)

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

Net income attributable to noncontrolling interests — — — (105) (4) (109) (648) — — — (18) (775)

Net income attributable to common stockholders 772

Total assets at June 30, 2025 3,337 7,253 10,590 8,385 2,091 10,476 27,781 2,027 432 1,508 3,678 56,492

Capital expenditures 70 203 273 78 14 92 740 27 26 45 58 1,261

Financial Information by Business Division and Segment (continued)

Atlantic Corporate,

Copper Mines South America Operations U.S.

Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX

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

Six Months Ended June 30, 2026

Unaffiliated customers $ 29 $ 19 $ 48 $ 2,377 $ 576 $ 2,953 $ 2,554 $ — $ 4,280 $ 1,990 $ 1,438 a

Intersegment 1,503 2,929 4,432 491 — 491 1 416 21 9 (5,370) —

Production and delivery 862 1,721 2,583 1,315 350 1,665 1,434 b

287 4,261 1,936 (3,781) 8,385

DD&A 124 176 300 168 42 210 422 c

46 3 14 42 1,037

Selling, general and administrative expenses 1 1 2 3 — 3 57 — — 19 216 297

Exploration and research expenses 18 17 35 8 3 11 — — — — 45 91

Environmental obligations and shutdown costs — — — — — — — — — — 30 30

Gain on PTFI mud rush incident insurance settlement — — — — — — (699) — — — — (699)

Gain on sale of assets — — — — — — — — — (18) — (18)

Operating income (loss) 527 1,033 1,560 1,374 181 1,555 1,341 83 37 48 (484) 4,140

Interest expense, net (2) — (2) (10) — (10) (21) — — (19) (157) (209)

Other (expense) income, net (1) — (1) 11 5 16 (12) — (1) 7 24 33

Provision for income taxes — — — (544) (80) (624) (466) — — (7) (100) (1,197)

Equity in affiliated companies’ net earnings — — — — — — 10 — — — 1 11

Net income attributable to noncontrolling interests — — — (396) (48) (444) (467) — — — (2) (913)

Net income attributable to common stockholders 1,865

Capital expenditures 94 402 496 156 129 285 972 49 28 123 124 2,077

Six Months Ended June 30, 2025

Unaffiliated customers $ 146 $ 172 $ 318 $ 1,753 $ 395 $ 2,148 $ 4,983 $ — $ 3,316 $ 1,567 $ 978 a

Intersegment 1,053 1,973 3,026

367 122 489 4 357 17 6 (3,899) —

Production and delivery 854 1,572 2,426 1,177 379 1,556 1,702 250 3,315 1,525 (2,736) e

DD&A 96 146 242 185 39 224 575 52 2 14 25 1,134

Selling, general and administrative expenses 1 1 2 3 1 4 62 — — 16 197 281

Exploration and research expenses 14 11 25 6 2 8 3 1 — — 48 85

Environmental obligations and shutdown costs (7) — (7) — — — — — — — 44 37

Operating income (loss) 241 415 656 749 96 845 2,645 54 16 18 (499) 3,735

Interest expense, net — (1) (1) (8) — (8) (25) — — (18) (100) (152)

Other (expense) income, net (2) 4 2 52 1 53 31 (1) (1) (19) 34 99

Provision for income taxes — — — (310) (34) (344) (965)

— — (12) (29) (1,350)

Equity in affiliated companies’ net earnings (losses) — — — — — — 9 — — — (1) 8

Net income attributable to noncontrolling interests — — — (231)

(21) (252) (923)

— — — (41) (1,216)

Net income attributable to common stockholders 1,124

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

Capital expenditures 129 399 528 152 25 177 1,444 46 43 88 107 2,433

Financial Information by Business Division and Segment (continued)

Includes revenues from our molybdenum sales company, which includes sales of molybdenum produced by the primary molybdenum mines and by certain of the U.S.

Includes revenues from our molybdenum sales company, which includes sales of molybdenum produced by our primary molybdenum mines and certain of the U.S.

copper mines and the Cerro Verde mine.

Includes $406 million of idle facility and restoration costs associated with the Mud Rush Incident.

Includes $93 million of idle facility costs associated with the Mud Rush Incident.

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

Includes idle facility and restoration costs associated with the September 2025 external mud rush incident totaling $284 million in second-quarter 2026 and $690 million for the first six months of 2026.

Refer to Note 7 for further discussion.

Includes idle facility costs associated with the September 2025 external mud rush incident totaling $79 million in second-quarter 2026 and $172 million for the first six months of 2026.

Refer to Note 7 for further discussion.

Represents a volume adjustment on concentrate shipped to Atlantic Copper in a prior period.

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

Leaching and Technology Innovation Initiatives

We are incorporating 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 54 million pounds in first-quarter 2026 and 214 million pounds for the year 2025.

We continue to apply operational enhancements on a larger scale and are advancing testing of innovative technology to increase production from these initiatives.

We are targeting annual production of approximately 300 million pounds of copper from these initiatives in 2026, with potential for further significant increases in recoverable metal in future years.

and South America operations to strengthen long-term cost competitiveness and unlock significant value.

Incremental copper production from these initiatives totaled 47 million pounds in second-quarter 2026 and 101 million pounds for the first six months of 2026.

We continue to apply operational enhancements on a larger scale and are advancing testing of innovative technologies to target significant increases in incremental production from leaching initiatives.

We are targeting reaching an annual run rate of 300 million pounds of copper from these initiatives by the end of 2026, with potential for further significant increases in recoverable metal in future years.

We are deploying large-scale testing of an internally developed additive product at our Morenci operations with encouraging early results.

In addition, we have identified other possible additives with strong potential and plan to apply heat to our stockpiles together with the new additives to further enhance recoveries.

In addition, we plan to field-test two additional additives which, together with the application of heat to our stockpiles, could further enhance recoveries.

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

In addition to our innovative 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.

We believe our innovative leaching and technology initiatives will strengthen our operational performance and enhance opportunities for profitable growth.

Responsible Production

2025 Annual Report on Sustainability.

In April 2026, we published our 2025 Annual Report on Sustainability, marking our 25th year of reporting on our progress.

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

The Copper Mark.

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Awarded sites must be revalidated every three years.

In June 2026, PTFI’s downstream processing facilities achieved their initial Copper Mark validation.

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

With the completion of PTFI’s downstream processing facilities, we are currently working toward their initial Copper Mark validation.

Feasibility and Optimization Studies

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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 $31 million in first-quarter 2026 and $36 million in first-quarter 2025.

We estimate the costs of these studies will approximate $220 million for the year 2026, subject to market conditions and other factors.

Our costs have not been significantly impacted by U.S.

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

Efforts continue to identify alternative sourcing options to mitigate potential future impacts of tariffs.

The costs for these studies are charged to production and delivery costs as incurred and totaled $33 million in second-quarter 2026, $52 million in second-quarter 2025, $64 million for the first six months of 2026 and $88 million for the first six months of 2025.

We estimate the costs of these studies will total $200 million for the year 2026, subject to market conditions and other factors.

Government action related to tariffs and other controls on imports and exports or trade agreements or policies of the U.S.

and other countries are difficult to predict and have and may in the future cause significant volatility in our

financial performance and in the trading prices of our common stock.

and other countries are difficult to predict and have and may in the future 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.

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imports of semi-finished copper products and copper-intensive derivative products.

government has indicated it will reassess by mid-2026 the potential for a refined copper tariff of 15% beginning in January 2027 and rising to 30% in 2028.

However, refined copper, including cathodes, concentrates and scrap, was exempted from the tariff, and the U.S.

government indicated it would reassess the potential for a refined copper tariff of 15% beginning in January 2027 and rising to 30% in 2028.

The evaluation remains open.

Additionally, the U.S.

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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, and most of which is sold domestically.

For the three months ended March 31, 2026, copper from our U.S.

refined copper production through our integrated domestic mining and processing facilities, most of which is sold domestically.

For the six months ended June 30, 2026, copper from our U.S.

mining operations was sold 75% as rod and 25% as cathode.

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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).

copper production is sold as copper cathode or copper concentrate.

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

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associated with existing operations.

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

Several initiatives are underway to target significant future growth in our U.S.

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

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

We completed technical and economic studies in late 2023 and are updating these studies in advance of a potential investment decision during the second half of 2026.

These studies indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year.

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

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

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

We completed technical and economic studies in late 2023 and have advanced these studies in preparation for a potential investment decision during the second half of 2026.

These studies indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year and increase molybdenum production by 10 to 12 million pounds per year.

Expanded operations would position Bagdad as the second largest copper mine in the U.S.

(behind our flagship Morenci mine) and among the lowest cost mines in our U.S.

portfolio, and Bagdad would benefit from improved efficiency and lower unit net cash costs through economies of scale.

Capital cost estimates for the Bagdad expansion are being finalized, taking into account current estimates, including for materials, equipment and labor.

Current estimates, which continue to be reviewed, indicate project capital costs of approximately $4.5 billion, approximately 30% above the prior $3.5 billion estimate prepared in 2023.

The revisions incorporate the impact of cost escalation, revisions in project scope and revised estimates associated with additional engineering.

Taking into account higher capital cost estimates and enhanced operational plans, the project economics continue to be supported at an incentive copper price of approximately $4.00 per pound and would require three to four years to complete, with no expected major permitting hurdles.

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

Conversion of Bagdad’s haul truck fleet to autonomous haulage was completed in 2025, making Bagdad the first major mine in the U.S.

to operate a fully autonomous haulage fleet.

We continue to optimize the performance of the new autonomous fleet at Bagdad and are advancing projects to expand tailings storage facilities and local infrastructure to enhance optionality in the future expansion opportunity.

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

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copper mines:

Three Months Ended March 31,

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

2026 2025 2026 2025

Operating Data, Net of Joint Venture Interests

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copper mines.

Our consolidated copper sales volumes from U.S.

copper mines of 327 million pounds in first-quarter 2026 were higher than first-quarter 2025 copper sales volumes of 307 million pounds, primarily reflecting timing of shipments.

Our consolidated copper sales volumes from the U.S.

copper mines totaled 312 million pounds in second-quarter 2026, 308 million pounds in second-quarter 2025, 639 million pounds for the first six months of 2026 and 615 million pounds for the first six months of 2025.

Consolidated copper sales from our U.S.

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

copper mines for the three months ended March 31, 2026 and 2025.

copper mines for the second quarters and first six months of 2026 and 2025.

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

Three Months Ended March 31,

Three Months Ended June 30,

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

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Molybdenum sales (millions of recoverable pounds) a

Six Months Ended June 30,

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

Copper Molyb-

Revenues, excluding adjustments $ 6.05 $ 6.05 $ 27.01 $ 4.71 $ 4.71 $ 20.00

Site production and delivery, before net noncash

and other costs shown below 3.59 3.11 18.17 3.46 3.07 16.09

By-product credits (0.80) — — (0.52) — —

Treatment charges 0.14 0.13 — 0.14 0.13 —

Unit net cash costs 2.93 3.24 18.17 3.08 3.20 16.09

DD&A 0.47 0.41 1.51 0.39 0.35 1.21

Noncash and other costs, net 0.15 b

0.13 0.45 0.14 b

Total unit costs 3.55 3.78 20.13 3.61 3.69 17.68

Other revenue adjustments, primarily for pricing

on prior period open sales 0.01 0.01 — 0.01 0.01 —

Gross profit per pound $ 2.51 $ 2.28 $ 6.88 $ 1.11 $ 1.03 $ 2.32

Copper sales (millions of recoverable pounds) 639 639 616 616

Molybdenum sales (millions of recoverable pounds) a

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

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

Includes charges totaling $0.05 per pound of copper in both first-quarter 2026 and 2025 for feasibility and optimization studies.

Includes charges for feasibility and optimization studies totaling $0.06 per pound of copper in second-quarter 2026, $0.09 per pound of copper in second-quarter 2025, $0.05 per pound of copper for the first six months of 2026 and $0.07 per pound of copper for the first six months of 2025.

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 $2.93 per pound of copper in first-quarter 2026 were lower than first-quarter 2025 average unit net cash costs of $3.11 per pound of copper, primarily reflecting higher by-product credits, partly offset by higher costs for sulfuric acid, diesel fuel and other consumables.

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

copper mines totaled $2.94 per pound of copper in second-quarter 2026, $3.04 per pound of copper in second-quarter 2025, $2.93 per pound of copper for the first six months of 2026 and $3.08 per pound of copper for the first six months of 2025.

Lower average unit net cash costs in the 2026 periods, compared to the 2025 periods, primarily reflects higher by-product credits, partly offset by higher costs for supplies, diesel fuel and other consumables.

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.

Based on achievement of current sales volume and cost estimates, and assuming an average price of $25.00 per pound of molybdenum for the remainder of 2026, average unit net cash costs (net of by-product credits) for our U.S.

Based on achievement of current sales volume and cost estimates, and assuming an average price of $30.00 per pound of molybdenum for the second half of 2026, average unit net cash costs (net of by-product credits) for our U.S.

copper mines are expected to approximate $2.96 per pound of copper for the year 2026.

Current cost estimates for 2026 reflect recent pricing impacts for energy and other consumables.

copper mines’ average unit net cash costs for the year 2026 would change by approximately $0.04 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2026.

copper mines’ average unit net cash costs for the year 2026 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 2026.

South America

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Development Activities.

At the El Abra operations in Chile, we have a significant opportunity to expand the operation to include a major mill facility similar to the large-scale concentrator at Cerro Verde.

At the El Abra operations in Chile, we have an attractive opportunity to expand the operation to include a major mill facility similar to the large-scale concentrator at Cerro Verde.

The project could result in the addition of over 700 million pounds of copper production per year.

In March 2026, El Abra submitted an environmental impact study to Chile regulatory authorities.

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.

Preliminary estimates, which remain under review, indicate that project capital costs would approximate $7.5 billion based on estimates prepared in 2024 and 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 required permitting, market conditions and other factors.

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Following is summary consolidated operating data for South America operations:

Three Months Ended March 31,

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

2026 2025 2026 2025

Copper (millions of recoverable pounds)

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

Our consolidated copper sales volumes from South America operations of 248 million pounds in first-quarter 2026 were lower than first-quarter 2025 copper sales volumes of 275 million pounds, primarily reflecting lower leach placements.

Our consolidated copper sales volumes from South America operations totaled 245 million pounds in second-quarter 2026, 265 million pounds in second-quarter 2025, 493 million pounds for the first six months of 2026, and 540 million pounds for the first six months of 2025.

Lower copper sales volumes in the 2026 periods, compared to the 2025 periods, primarily reflect lower leach production and the processing of lower grade stockpile ore as a result of mine sequencing.

Copper sales from South America operations are expected to approximate 1.0 billion pounds for the year 2026.

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Gross Profit per Pound of Copper

The following table summarizes unit net cash costs and gross profit per pound of copper at our South America operations for the three months ended March 31, 2026 and 2025.

The following table summarizes 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 2026 and 2025.

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

Three Months Ended March 31,

Three Months Ended June 30,

Method Co-Product

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Copper sales (millions of recoverable pounds) 245 245 265 265

Includes charges totaling $0.05 per pound of copper in both first-quarter 2026 and 2025 for feasibility and optimization studies.

Average unit net cash costs (net of by-product credits) for South America operations of $2.38 per pound of copper in first-quarter 2026 were lower than first-quarter 2025 average unit net cash costs of $2.40 per pound of copper, primarily reflecting higher by-product credits and lower treatment charges, mostly offset by lower copper volumes and the impact of currency exchange rates on labor costs.

Six Months Ended June 30,

Method Co-Product

Method By-Product

Method Co-Product

Revenues, excluding adjustments $ 6.03 $ 6.03 $ 4.39 $ 4.39

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

3.25 2.85 2.76 2.51

By-product credits (0.85) — (0.41) —

Treatment charges 0.02 0.02 0.07 0.07

Royalty on metals 0.01 0.01 0.01 0.01

Unit net cash costs 2.43 2.88 2.43 2.59

DD&A 0.42 0.38 0.42 0.38

Noncash and other costs, net 0.09 a

Total unit costs 2.94 3.34 2.91 3.03

Other revenue adjustments, primarily for pricing on prior period open sales

0.09 0.09 0.10 0.10

Gross profit per pound $ 3.18 $ 2.78 $ 1.58 $ 1.46

Copper sales (millions of recoverable pounds) 493 493 540 540

Includes charges for feasibility and optimization studies totaling $0.04 per pound of copper in the second quarter and for the first six months of 2026, $0.07 per pound of copper in second-quarter 2025 and $0.06 per pound of copper for the first six

months of 2025.

Also includes charges for inventory write-offs totaling $0.04 per pound of copper in second-quarter 2026 and $0.02 per pound of copper for the first six months of 2026.

Average unit net cash costs (net of by-product credits) for South America operations totaled $2.48 per pound of copper in second-quarter 2026, $2.46 per pound of copper in second-quarter 2025 and $2.43 per pound of copper for both the first six months of 2026 and 2025.

Average unit net cash costs in the 2026 periods, compared to the 2025 periods, reflect lower copper volumes and higher labor and energy costs, partially offset by higher by-product credits.

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

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

Based on achievement of current sales volume and cost estimates and assuming an average price of $25.00 per pound of molybdenum for the remainder of 2026, average unit net cash costs (net of by-product credits) for our South America operations are expected to approximate $2.60 per pound of copper for the year 2026.

Current cost estimates for 2026 reflect recent pricing impacts for energy and other consumables.

Our South America operations’ average unit net cash costs for the year 2026 would change by approximately $0.04 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2026.

Based on achievement of current sales volume and cost estimates and assuming an average price of $30.00 per pound of molybdenum for the second half of 2026, average unit net cash costs (net of by-product credits) for our South America operations are expected to approximate $2.56 per pound of copper for the year 2026.

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

In addition to copper, the Grasberg minerals district also produces gold and silver.

With the completion of its downstream processing facilities, PTFI is a fully integrated producer of refined copper and gold.

In addition to copper and gold, the Grasberg minerals district also produces silver.

With the completion of its downstream processing facilities, PTFI is a fully integrated producer of refined copper, gold and silver.

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

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

At normal operating rates, PTFI’s underground operations produce approximately 1.7 billion pounds of copper and 1.3 million ounces of gold per year and are among the lowest cost operations in the world.

First-quarter 2026 production of 95 million pounds of copper and 92 thousand ounces of gold primarily reflects the impact of the temporary suspension of operations at the Grasberg Block Cave underground mine following the Mud Rush Incident.

A phased restart and ramp-up of the Grasberg Block Cave underground mine is in progress.

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

PTFI has identified additional exploration targets to leverage its infrastructure in the Grasberg minerals district, including a potential extension below the DMLZ underground mine, which requires further drilling and evaluation.

Since 2022, PTFI has conducted long-term mine development activities at its Kucing Liar deposit in the Grasberg minerals district.

PTFI’s long-term mine plans include a ramp-up of Kucing Liar, commencing in the 2030 timeframe, to a design capacity of approximately 130,000 metric tons of ore per day.

Average annual Kucing Liar production at full rates would approximate 750 million pounds of copper and 735 thousand ounces of gold and would enable continuity of large-scale production in the Grasberg minerals district.

At June 30, 2026, PTFI had incurred approximately $1.4 billion for Kucing Liar development, and capital investments are estimated to approximate an additional $4 billion through 2033 (averaging approximately $0.5 billion per year).

Long-Term Mining Rights.

In February 2026, we and PTFI entered into a Memorandum of Understanding (MOU) with the Indonesia government for a life of resource extension of operating rights in the Grasberg minerals district beyond the current expiration 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.

Under the terms of the MOU, we would maintain our current ownership interest in PTFI of 48.76% through 2041 and hold approximately 37% beginning in 2042.

The existing governance and operating structure, and terms of the existing shareholder agreement, special mining business license (IUPK) and other agreements in effect will continue over the life of the resource.

We and PTFI are working with the Indonesia government to complete the license renewal process.

The extension of operating rights and other agreed terms are subject to, among other things, the Indonesia government’s issuance of an amended IUPK and entry into definitive agreements.

In June 2026, PTFI submitted its application for extension of its IUPK, and we and PTFI are working with the Indonesia government to complete the formal license process.

The extension of operating rights and other terms are subject to, among other things, the Indonesia government’s issuance of an amended IUPK and entry into definitive agreements.

Grasberg Block Cave Ramp-Up.

Following the Mud Rush Incident, PTFI has progressed a series of activities to address the incident and advance preparation for a safe and sustainable restoration of operations.

During first-quarter 2026, PTFI completed remediation and restoration activities required for the restart of Production Blocks 2 and 3 and commenced initial ramp-up activities at the end of March 2026.

PTFI also continued to advance activities for a planned future start-up of Production Block 1S and advance risk mitigation strategies associated with drainage and cave management technologies.

During initial ramp-up activities in Production Blocks 2 and 3, PTFI encountered changes in operating conditions at the Grasberg Block Cave underground mine following the period of inactivity between September 2025 and April 2026, resulting in a significant increase in the ratio of wet drawpoints compared to the number of drawpoints containing dry material.

While PTFI’s existing automated systems to extract ore at the drawpoints are sufficient to support a ramp-up to previously planned levels, modifications to the chute system used to load ore into the automated trains will be required to operate at full capacity.

As a result, near-term production from Production Blocks 2 and 3 is expected to be limited to approximately 60% of capacity until required modifications to ore loading systems are made.

Installation of specialized equipment to accommodate the higher percentage of wet ore has commenced and will be sequenced initially to prioritize areas that would benefit the most from the enhancements.

PTFI expects the current bottlenecks can be substantially addressed by mid-2027.

PTFI’s overall production rates, which were previously forecast to approximate 85% of capacity in the second half of 2026 and reach 100% of capacity by the end of 2027 are now expected to approximate 65% in the second half of 2026, 80% by mid-2027 and approach full capacity by the end of 2027.

Given the early stage of the initial ramp‑up, production forecasts are inherently more variable than they were prior to the incident.

As the ramp‑up progresses over the coming months, additional clarity is expected on a number of factors that could have a positive or negative impact on PTFI’s near‑term forecast.

As such, the revisions to PTFI’s production rates result in the deferral of production to future periods and do not reflect a change in the expected recovery of the Grasberg Block Cave resource.

PTFI is confident in the resource, its ability to conduct large‑scale mining safely and efficiently, and its long‑term plans to operate one of the world’s most successful and valuable copper and gold deposits.

In first-quarter 2026, PTFI recognized a gain of $0.7 billion for an insurance settlement associated with the Mud Rush Incident under its property and business interruption policies.

PTFI collected this settlement in April 2026.

Since 2022, PTFI has conducted long-term mine development activities at its Kucing Liar deposit in the Grasberg minerals district.

During 2025, PTFI completed studies to evaluate the potential to expand the footprint of the deposit which was previously designed to operate at a long-term rate of 90,000 metric tons of ore per day.

The studies identified a low-cost expansion opportunity to increase Kucing Liar’s design capacity to 130,000 metric tons of ore per day and increase Kucing Liar’s reserves by approximately 20%.

As a result, PTFI’s preliminary estimates of Kucing Liar reserves currently approximate 8 billion pounds of copper and 8 million ounces of gold to be recovered through 2041, and an extension of PTFI’s operating rights beyond 2041 would extend the life of the project.

Average annual Kucing Liar production at full rates would approximate 750 million pounds of copper and 735 thousand ounces of gold.

The economic studies took into account an approximate 10% increase in Kucing Liar capital ($0.5 billion), impact to operating rates at the Grasberg Block Cave underground mine and reduction of capital expenditures associated with PTFI’s mine operations in connection with the processing of higher pyrite ore.

At March 31, 2026, PTFI had incurred approximately $1.3 billion for Kucing Liar development, and capital investments are estimated to approximate an additional $4 billion through 2033 (averaging approximately $0.5 billion per year).

Initial production is expected to commence ramping up in the 2030 timeframe.

Following the September 2025 external mud rush incident, PTFI has progressed a series of activities to address the incident and remains focused on a safe and sustainable ramp-up to full operating capacity.

PTFI completed remediation and restoration activities required for the restart of Production Blocks 2 and 3 and commenced initial ramp-up activities at the end of March 2026.

During second-quarter 2026, PTFI made steady progress on its phased ramp-up and achieved its planned operating rates for the period.

Planned upgrades to the material handling system at the Grasberg Block Cave haulage level are advancing on schedule.

PTFI continues to advance activities for a planned future restart of Production Block 1S and risk mitigation strategies associated with drainage and cave management technologies.

PTFI’s overall production rates are expected to approximate 65% of capacity in the second half of 2026, 80% by mid-2027 and approach full capacity by the end of 2027.

Downstream Processing Facilities.

PTFI’s smelter and PT Smelting, PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia, smelt and refine copper concentrate from PTFI, and the PMR processes anode slimes from the smelter and PT Smelting.

PTFI’s smelter and PT Smelting, PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia, smelt and refine copper concentrate from PTFI, and the precious metals refinery (PMR) processes anode slimes from PTFI’s smelter and PT Smelting.

During 2024, construction of PTFI’s smelter in Eastern Java, Indonesia, was completed.

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As part of start-up activities, PTFI commenced gold production from the PMR in December 2024 and operated on a limited basis during 2025, primarily processing anode slimes from PT Smelting.

Following the Mud Rush Incident, smelting operations in Indonesia at both PTFI’s smelter and PT Smelting were adjusted as a result of limited copper concentrate availability.

In late December 2025, PT Smelting resumed operations and operated at reduced rates during first-quarter 2026.

Shipments to PTFI’s smelter are expected to recommence in the second half of 2026 at a reduced rate dependent on available copper concentrate from mining operations at the Grasberg Block Cave underground mine.

The PMR has operated on a limited basis since the Mud Rush Incident, primarily processing anode slimes from PT Smelting.

Following the September 2025 external mud rush incident, during the phased ramp-up period of the Grasberg Block Cave underground mine, smelting operations in Indonesia at both PTFI’s smelter and PT Smelting were adjusted as a result of limited copper concentrate availability.

In late December 2025, PT Smelting resumed operations and by the end of second-quarter 2026 was operating at capacity.

PTFI’s smelter is expected to restart operations in the second half of 2026 at reduced rates, dependent on available copper concentrate from PTFI’s mining operations.

The PMR continues to operate on a limited basis following the September 2025 external mud rush incident, primarily processing anode slimes from PT Smelting.

We expect higher variability between PTFI’s production and sales until its downstream processing facilities achieve normalized operating rates.

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

Following the Mud Rush Incident, PTFI’s planned investments for a new gas-fired combined cycle facility have been deferred with start-up and commissioning of the new facility scheduled in the second half of 2029.

Following the September 2025 external mud rush incident, PTFI’s planned investments for a new gas-fired combined cycle facility have been deferred with start-up and commissioning of the new facility scheduled in the second half of 2029.

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 regasification unit.

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Following is summary consolidated operating data for Indonesia operations:

Three Months Ended March 31,

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

2026 2025 2026 2025

Copper (millions of recoverable pounds)

Production 205 359 300 655

Sales 153 443 235 733

Average realized price per pound $ 6.12 $ 4.40 $ 6.04 $ 4.35

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DMLZ 69,900 61,400 68,400 60,900

Big Gossan 7,300 6,600

Grasberg Block Cave 53,000 114,500 28,800 104,100

Big Gossan 6,700 7,300 7,000 6,900

Adjustments 1,500 (700) 3,500 200

Total 131,100 182,500

107,700 172,100

Average ore grades:

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Gold 80.0 74.8 79.9 75.5

PTFI’s consolidated sales volumes of 82 million pounds of copper and 116 thousand ounces of gold in first-quarter 2026 were lower than first-quarter 2025 sales volumes of 290 million pounds of copper and 125 thousand ounces of gold, reflecting lower operating rates following the Mud Rush Incident.

As a fully integrated producer of refined copper and gold, there may be variability in the timing between production and sales of refined copper and gold.

PTFI’s consolidated sales volumes totaled 153 million pounds of copper and 118 thousand ounces of gold in second-quarter 2026, 443 million pounds of copper and 518 thousand ounces of gold in second-quarter 2025, 235 million pounds of copper and 234 thousand ounces of gold for the first six months of 2026 and 733 million pounds of copper and 643 thousand ounces of gold for the first six months of 2025.

Lower sales volumes in the 2026 periods, compared to the 2025 periods, reflect lower operating rates at PTFI during the phased ramp-up of the Grasberg Block Cave underground mine.

Historically, PTFI recognized concentrate sales upon loading of shipments;

however, PTFI’s future concentrate production will be processed by PT Smelting and its smelter, and refined sales will be recognized after processing and sale of the metal.

Accordingly, PTFI may experience higher variability between production volumes and sales volumes.

however, as a fully integrated producer of refined copper, gold and silver, PTFI’s concentrate is now processed by PT Smelting and its smelter, and refined sales are recognized after processing and sale of the metal.

Accordingly, there may be variability in the timing between production and sales volumes.

Consolidated sales volumes from PTFI are expected to approximate 0.7 billion pounds of copper and 650 thousand ounces of gold for the year 2026.

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Gross Profit per Pound of Copper and per Ounce of Gold

The following table summarizes the unit net cash (credits) costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the three months ended March 31, 2026 and 2025.

The following table summarizes the unit net cash (credits) costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the second quarters and first six months of 2026 and 2025.

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 March 31,

Three Months Ended June 30,

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

Copper Gold Copper Gold

Revenues $ 6.12 $ 6.12 $ 4,529 $ 4.40 $ 4.40 $ 3,290

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

2.30 1.41 1,040 2.17 1.14 854

By-product credits (3.96) — — (3.98) — —

Treatment charges 0.47 a

0.28 209 0.19 0.11 77

Export duties — — — 0.33 0.17 128

Royalty on metals 0.38 0.23 176 0.30 0.16 120

Unit net cash (credits) costs (0.81) 1.92 1,425 (0.99) 1.58 1,179

0.90 671 0.88 0.46 346

Noncash and other costs, net 1.96 c

1.19 880 0.18 d

Total unit costs 2.65 4.01 2,976 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 $ 3.47 $ 2.11 $ 1,553 $ 4.28 $ 2.22 $ 1,721

Copper sales (millions of recoverable pounds) 153 153 443 443

Gold sales (thousands of recoverable ounces) 118 518

Six Months Ended June 30,

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

Copper Gold Copper Gold

Revenues, excluding adjustments $ 6.04 $ 6.04 $ 4,709 $ 4.35 $ 4.35 $ 3,260

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Favorable offsets associated with incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities are included in revenues and by-product credits.

Includes $1.13 per pound of copper of idle facility costs associated with the Mud Rush Incident.

Includes $4.93 per pound of copper of idle facility and restoration costs associated with the Mud Rush Incident.

Includes charges totaling $0.15 per pound of copper for operational readiness and start-up costs associated with PTFI’s downstream processing facilities, $0.08 per pound of copper related to the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities and $0.08 per pound of copper for remediation costs related to the October 2024 fire incident at PTFI’s smelter.

Includes idle facility costs associated with the September 2025 external mud rush incident totaling $0.52 per pound of copper in second-quarter 2026 and $0.73 per pound of copper for the first six months of 2026.

Includes idle facility and restoration costs associated with the September 2025 external mud rush incident totaling $1.86 per pound of copper in second-quarter 2026 and $2.93 per pound of copper for the first six months of 2026.

Includes charges for (i) operational readiness and start-up 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 related to the October 2024 incident at PTFI’s smelter 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.

The first six months of 2025 also includes $0.03 per pound of copper related to the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities.

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

PTFI’s unit net cash credits (including by-product credits) of $3.53 per pound of copper in first-quarter 2026 were favorable compared to unit net cash costs (net of by-product credits) of $0.64 per pound of copper in first-quarter 2025, primarily reflecting higher by-product credits, partly offset by the impact of lower volumes.

Following the Mud Rush Incident and until PTFI’s operations return to normal capacity, a portion of PTFI’s production and delivery costs will be recognized as idle facility costs, which are non-inventoriable.

Idle facility and restoration costs, which were excluded from PTFI's unit net cash credits, totaled $406 million ($4.93 per pound of copper) in first-quarter 2026.

Treatment charges reflect downstream tolling fees and operating costs and 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.

The increase in treatment charges and royalties per pound of copper in first-quarter 2026 compared to first-quarter 2025, primarily reflects lower copper volumes resulting from lower operating rates following the Mud Rush Incident and higher copper and gold prices.

In addition, as a fully integrated producer of refined copper and gold, there may be variability in the rate of royalties per pound of copper as a result of the ratio of copper sales to gold and silver sales.

Additionally, during the phased ramp-up period of the Grasberg Block Cave underground mine and until PTFI’s operations return to normal capacity, a portion of PTFI's production and delivery costs will be recognized as idle facility costs, which are non-inventoriable.

Idle facility and restoration costs totaled $284 million ($1.86 per pound of copper) in second-quarter 2026 and $690 million ($2.93 per pound of copper) for the first six months of 2026, which were excluded from PTFI's unit net cash credits.

Excluding amounts recognized as idle facility costs, PTFI’s unit net cash credits (including by-product credits) totaled $0.81 per pound of copper in second-quarter 2026, $0.99 per pound of copper in second-quarter 2025, $1.76 per pound of copper for the first six months of 2026 and $0.34 per pound of copper for the first six months of 2025.

PTFI’s unit net cash credits (including by-product credits) for the 2026 periods primarily reflect lower copper volumes.

The increase in treatment charges and royalties per pound of copper in the 2026 periods, compared to the 2025 periods, primarily reflects higher copper and gold prices, as well as the impact of lower copper volumes.

In addition, as a fully integrated producer of refined copper, gold and silver in Indonesia, there may be variability in the rate of royalties per pound of copper as a result of the ratio of copper sales to gold and silver sales.

Prior to the expiration of PTFI’s export license on September 16, 2025, export duties were assessed on its copper concentrate sales at a rate of 7.5%.

Refer to Note 11 of FCX’s 2025 Form 10-K for further discussion.

Refer to Note 11 of our 2025 Form 10-K for further discussion.

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

PTFI’s DD&A per pound of copper in first-quarter 2026 included $1.13 per pound of copper for non-inventoriable idle facility costs associated with the Mud Rush Incident, and also reflects the impact of lower copper sales volumes and higher depreciation associated with placing its downstream processing facilities into service in 2025.

PTFI’s DD&A per pound of copper for the 2026 periods reflects the impact of lower copper sales volumes and higher depreciation associated with placing assets into service in 2025.

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.

Based on achievement of current sales volume and cost estimates and assuming an average price of $4,500 per ounce of gold for the remainder of 2026, average unit net cash credits (including by-product credits and excluding idle facility and restoration costs associated with the Mud Rush Incident) for PTFI are expected to approximate $1.30 per pound of copper for the year 2026.

Current cost estimates for 2026 also reflect recent pricing impacts for energy and other consumables.

PTFI’s average unit net cash credits for the year 2026 would change by approximately $0.08 per pound of copper for each $100 per ounce change in the average price of gold for the remainder of 2026.

Based on achievement of current sales volume and cost estimates and assuming an average price of $4,000 per ounce of gold for the second half of 2026, average unit net cash credits (including by-product credits and excluding idle facility and restoration costs) for PTFI are expected to approximate $1.22 per pound of copper for the year 2026.

PTFI’s average unit net cash credits for the year 2026 would change by approximately $0.06 per pound of copper for each $100 per ounce change in the average price of gold for the second half of 2026.

Molybdenum Mines

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Operating and Development Activities.

Production from the Molybdenum mines totaled 9 million pounds of molybdenum in both first-quarter 2026 and 2025.

Production from the Molybdenum mines totaled 8 million pounds of molybdenum in second-quarter 2026, 9 million pounds in second-quarter 2025, 17 million pounds for the first six months of 2026 and 18 million pounds for the first six months of 2025.

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

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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 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.

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

Average unit net cash costs for our Molybdenum mines of $15.69 per pound of molybdenum in first-quarter 2026 were higher than average unit net cash costs of $13.72 per pound in first-quarter 2025, primarily reflecting higher costs for labor, supplies and energy.

Average unit net cash costs for the Molybdenum mines are expected to approximate $17.80 per pound of molybdenum for the year 2026, based on achievement of current sales volume and cost estimates.

Average unit net cash costs for our Molybdenum mines totaled $19.20 per pound of molybdenum in second-quarter 2026, $14.20 per pound of molybdenum in second-quarter 2025, $17.31 per pound of molybdenum for the first six months of 2026 and $13.96 per pound of molybdenum for the first six months of 2025.

Higher unit net cash costs in the 2026 periods, compared with the 2025 periods, primarily reflect lower volumes and higher costs for supplies, energy and labor.

Average unit net cash costs for our Molybdenum mines are expected to approximate $17.91 per pound of molybdenum for the year 2026, based on achievement of current sales volume and cost estimates.

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

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PTFI’s downstream processing facilities in Eastern Java, Indonesia, are wholly owned and operated, and PTFI has a 66% ownership interest in PT Smelting, 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 wholly own and operate the Miami smelter and rod mill in Arizona, the El Paso refinery and rod mill in Texas, and our Atlantic Copper smelter and refinery in Spain.

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

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copper mines and processing facilities.

Rod production from these facilities approximated one billion pounds of copper for each of the last three years and is expected to approximate one billion pounds for the year 2026.

Rod production from these facilities approximated one billion pounds of copper for each of the last three years and is expected to approximate one billion pounds of copper for the year 2026.

Sulfuric acid production from our smelters in the U.S., Spain and Indonesia, together with our sulfur burner plant at the Safford mine, generally exceeds the requirements of our SX/EW leaching operations.

Accordingly, the recent volatility in the price of sulfuric acid is not expected to have a material impact on our consolidated results.

Accordingly, volatility in the price of sulfuric acid is not expected to have a material impact on our consolidated results.

Certain of our SX/EW leaching operations in the U.S.

and South America purchase sulfuric acid from third parties, and while sulfuric acid price fluctuations may impact costs for these mining operations, favorable offsets associated with sulfuric acid sales by our smelters are reflected in revenues.

PTFI is a fully integrated producer of refined copper and gold.

PTFI is a fully integrated producer of refined copper, gold and silver.

PTFI’s smelter and PT Smelting smelt and refine copper concentrate from PTFI’s mines in the Grasberg minerals district, and the PMR processes anode slimes from the smelter and PT Smelting.

PTFI’s treatment charges, which are recorded in production and delivery costs, reflect downstream tolling fees and operating costs and do not represent market treatment and refining rates.

Favorable offsets associated with incremental metals and sulfuric acid produced and sold by PT Smelting and PTFI’s downstream processing facilities are included in revenues.

Favorable offsets associated with incremental metals and sulfuric acid produced and sold by PT Smelting and PTFI’s downstream processing facilities are included in revenues and by-product credits.

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.

In first-quarter 2025, the Miami smelter performed a major maintenance turnaround and incurred maintenance charges and idle facility costs totaling $73 million.

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

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

In first-quarter 2026, Atlantic Copper purchased 75% of its concentrate from third parties and 25% from our South America operations.

For the first six months of 2026, Atlantic Copper purchased 82% of its concentrate from third parties and 18% from our South America operations.

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

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

Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions to operating income totaling $70 million ($23 million to net income attributable to common stock) in first-quarter 2026 and $114 million ($34 million to net income attributable to common stock) in first-quarter 2025.

Our net deferred profits on our inventories at Atlantic Copper to be recognized in future periods’ operating income totaled $68 million ($22 million to net income attributable to common stock) at March 31, 2026.

Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions)

additions to operating income totaling $(18) million ($(6) million to net income attributable to common stock) in second-quarter 2026, $34 million ($9 million to net income attributable to common stock) in second-quarter 2025, $52 million ($17 million to net income attributable to common stock) for the first six months of 2026 and $148 million ($44 million to net income attributable to common stock) for the first six months of 2025.

Our net deferred profits on our inventories at Atlantic Copper to be recognized in future periods’ operating income totaled $88 million ($29 million to net income attributable to common stock) at June 30, 2026.

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

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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 $8.3 billion for the year 2026 exceed our expected consolidated capital expenditures of $4.3 billion.

common stock dividends (base and variable) and any share or debt repurchases.

We expect to 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), senior note maturities 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 expansion projects in the U.S.

At March 31, 2026, we had $3.7 billion in consolidated cash and cash equivalents, and FCX, PTFI and Cerro Verde had $3.0 billion, $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.

At June 30, 2026, we had $4.1 billion in consolidated cash and cash equivalents, and we also 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.

Financial Policy.

Our financial policy is aligned with our strategic objectives of maintaining a solid balance sheet, providing cash returns to common stockholders 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 stockholder 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).

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 common stockholder 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.

At March 31, 2026, our net debt totaled $2.4 billion, which excludes $3.2 billion of debt for PTFI’s downstream processing facilities.

At June 30, 2026, our net debt totaled $2.1 billion, which excludes $3.2 billion of debt for PTFI’s downstream processing facilities.

Refer to "Net Debt" for further discussion.

Refer to Note 4 and “Financing Activities” below for further discussion of shares acquired in first-quarter 2026 under our current share repurchase program.

On March 25, 2026, our Board declared cash dividends totaling $0.15 per share on our common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which were paid on May 1, 2026, to common stockholders of record on April 15, 2026.

Refer to Note 4 and “Financing Activities” below for further discussion of shares acquired in the first six months of 2026 under our $5.0 billion share repurchase program.

On June 24, 2026, 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 3, 2026, to common stockholders of record on July 15, 2026.

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.

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Following is a summary of the U.S.

and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share and withholding taxes, at March 31, 2026 (in billions):

and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share and withholding taxes, at June 30, 2026 (in billions):

Cash at domestic companies $ 2.0

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

At March 31, 2026, consolidated debt totaled $9.4 billion, with a weighted-average interest rate of 5.2%.

At June 30, 2026, consolidated debt totaled $9.4 billion, with a weighted-average interest rate of 5.2%.

Substantially all of our outstanding debt is fixed rate and our total debt has an average remaining duration of approximately eight years.

There are no senior note maturities scheduled in 2026 and $1.3 billion scheduled in 2027.

At March 31, 2026, we had no borrowings and $5 million in letters of credit issued under our $3.0 billion revolving credit facility, PTFI had $250 million in borrowings outstanding under its $1.75 billion revolving credit facility and Cerro Verde had no borrowings under its $350 million revolving credit facility.

At March 31, 2026, Atlantic Copper had borrowings of $0.5 billion outstanding under short-term lines of credit used for working capital requirements.

We have $0.7 billion in scheduled senior note maturities in April 2027, and $0.6 billion in scheduled senior note maturities in the second half of 2027.

In May 2026, we and PTFI entered into a new $3.0 billion, five-year senior unsecured revolving credit facility that matures in May 2031, which replaced the prior revolving credit facility, and Cerro Verde entered into a new $350 million, five-year, senior unsecured revolving credit facility that matures in May 2031, which replaced its prior revolving credit facility.

The terms of the new facilities are substantially similar to the respective prior facilities.

At June 30, 2026, there were no borrowings and $5 million in letters of credit issued under our revolving credit facility, PTFI had $250 million in borrowings outstanding under its revolving credit facility and Cerro Verde had no borrowings under its revolving credit facility.

At June 30, 2026, Atlantic Copper had borrowings of $0.5 billion outstanding under short-term lines of credit used for working capital requirements.

Refer to Note 4 for further discussion of debt.

Operating Activities

We generated operating cash flows of $1.5 billion (including $0.1 billion from working capital and other sources) in first-quarter 2026 and $1.1 billion (net of $0.3 billion for working capital and other uses) in first-quarter 2025.

Operating cash flows in first-quarter 2026, compared with first-quarter 2025, reflect the impact of higher metal prices, offset by lower copper and gold sales volumes from PTFI as a result of the Mud Rush Incident.

For the first six months of 2026, we generated operating cash flows of $3.5 billion, net of $0.5 billion for working capital and other uses, and including $0.7 billion in pre-tax proceeds collected by PTFI for an insurance settlement associated with the September 2025 external mud rush incident.

For the first six months of 2025, we generated operating cash flows of $3.3 billion, net of $0.3 billion for working capital and other uses.

Investing Activities

Capital Expenditures.

Capital expenditures, including capitalized interest, totaled $1.0 billion in first-quarter 2026 and $1.2 billion in first-quarter 2025, and include amounts for major projects ($0.6 billion in both first-quarter 2026 and 2025), primarily associated with underground development activities and supporting mill and power capital costs in the Grasberg minerals district.

Capital expenditures, including capitalized interest, totaled $2.1 billion for the first six months of 2026 and $2.4 billion for the first six months of 2025, and include amounts for major projects ($1.3 billion for the first six months of 2026 and $1.2 billion for the first six months of 2025), primarily associated with underground development activities and supporting mill and power capital costs in the Grasberg minerals district.

Acquisition of additional ownership interest in Cerro Verde.

In May 2026, we purchased 2.0 million shares of Cerro Verde common stock in the open market for a total cost of $107 million, increasing our ownership interest in Cerro Verde from 55.08% to 55.66%.

Refer to Note 1 for further discussion.

Financing Activities

Debt Transactions.

Net proceeds from debt totaled $35 million in first-quarter 2026 and $452 million in first-quarter 2025, primarily related to borrowings by Atlantic Copper under short-term lines of credit used for working capital requirements.

Net proceeds from debt totaled $5 million for the first six months of 2026 and $292 million for the first six months of 2025, primarily related to borrowings by Atlantic Copper under short-term lines of credit used for working capital requirements.

Cash Dividends on Common Stock.

We paid cash dividends on our common stock totaling $0.2 billion in both first-quarter 2026 and 2025.

We paid cash dividends on our common stock totaling $0.4 billion during each of the first six months of 2026 and 2025.

Refer to Note 4, Item 1A.

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Cash Dividends and Distributions Paid to Noncontrolling Interests.

Cash dividends and distributions paid to noncontrolling interests at our international operations totaled $0.2 billion in first-quarter 2026.

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

Cash dividends and distributions paid to noncontrolling interests at our international operations totaled $0.4 billion for the first six months of 2026 related to Cerro Verde and $0.6 billion (including $0.5 billion from PTFI) for the first six months of 2025.

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

Treasury Stock Purchases.

We acquired 1.7 million shares of our common stock for a total cost of $93 million ($54.25 average cost per share) under our share repurchase program in first-quarter 2026, and 1.4 million shares of our common stock for a total cost of $55 million ($39.10 average cost per share) in first-quarter 2025.

In the first six months of 2026, we acquired 3.4 million shares of our common stock for a total cost of $203 million ($59.30 average cost per share) under our share repurchase program.

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

Refer to Note 4 for further discussion.

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Refer to our 2025 Form 10-K for a description of our critical accounting estimates that require us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.

There have been no changes from these previously disclosed policies.

There have been no changes from these previously disclosed estimates.

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).

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

At March 31, 2026

At June 30, 2026

Current portion of debt $ 1,220

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

(In millions) By-Product Co-Product Method

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Reconciliation to Amounts Reported

Revenues Production and Delivery DD&A

Totals presented above $ 2,276 $ 1,197 $ 135

Treatment charges — 47 —

Noncash and other costs, net — 45 —

Other revenue adjustments, primarily for pricing

on prior period open sales 6 — —

Eliminations and other (1) 3 —

copper mines 2,281 1,292 135

Other mining d

6,766 4,953 366

Corporate, other & eliminations e

(2,018) (1,925) 22

As reported in our consolidated financial statements $ 7,029 $ 4,320 $ 523

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

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

Includes gold sales of 5 thousand ounces ($4,285 per ounce average realized price), silver sales of 0.4 million ounces ($65.75 per ounce average realized price) and related production costs.

Includes charges totaling $18 million ($0.06 per pound of copper) for feasibility and optimization studies.

Represents the combined total for South America and Indonesia operations, Molybdenum mines, U.S.

Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

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

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

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

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 —

copper mines 1,714 1,214 118

Other mining d

7,377 4,504 536

Corporate, other & eliminations e

(1,509) (1,436) 14

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

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

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

Includes gold sales of 4 thousand ounces ($3,301 per ounce average realized price), silver sales of 0.5 million ounces ($35.94 per ounce average realized price) and related production costs.

Includes charges totaling $26 million ($0.09 per pound of copper) for feasibility and optimization studies.

Represents the combined total for South America and Indonesia operations, Molybdenum mines, U.S.

Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

Six Months Ended June 30, 2026

(In millions) By-Product Co-Product Method

Method Copper Molybdenum a

Revenues, excluding adjustments $ 3,866 $ 3,866 $ 463 $ 143 $ 4,472

Site production and delivery, before net noncash

and other costs shown below 2,300 1,990 311 92 2,393

By-product credits (514) — — — —

Treatment charges 89 83 — 6 89

Net cash costs 1,875 2,073 311 98 2,482

DD&A 300 257 26 17 300

Noncash and other costs, net 94 c

Total costs 2,269 2,415 345 116 2,876

Other revenue adjustments, primarily for pricing

on prior period open sales 6 6 — 1 7

Gross profit $ 1,603 $ 1,457 $ 118 $ 28 $ 1,603

Copper sales (millions of recoverable pounds) 639 639

Molybdenum sales (millions of recoverable pounds) a

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments $ 6.05 $ 6.05 $ 27.01

Site production and delivery, before net noncash

and other costs shown below 3.59 3.11 18.17

By-product credits (0.80) — —

Treatment charges 0.14 0.13 —

Unit net cash costs 2.93 3.24 18.17

DD&A 0.47 0.41 1.51

Noncash and other costs, net 0.15 c

Total unit costs 3.55 3.78 20.13

Other revenue adjustments, primarily for pricing

on prior period open sales 0.01 0.01 —

Gross profit per pound $ 2.51 $ 2.28 $ 6.88

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

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

Includes gold and silver product revenues and production costs.

Includes gold sales of 10 thousand ounces ($4,584 per ounce average realized price), silver sales of 0.8 million ounces ($69.40 per ounce average realized price) and related production costs .

Includes charges totaling $35 million ($0.05 per pound of copper) for feasibility and optimization studies.

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

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

(In millions) By-Product Co-Product Method

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

Includes gold and silver product revenues and production costs.

Includes gold sales of 7 thousand ounces ($3,249 per ounce average realized price), silver sales of 1.0 million ounces ($34.84 per ounce average realized price) and related production costs.

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

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

(In millions) By-Product Co-Product Method

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

Includes charges totaling $10 million ($0.04 per pound of copper) for inventory write-offs and $9 million ($0.04 per pound of copper) for feasibility and optimization studies.

Represents the combined total for U.S.

copper mines, Indonesia operations, Molybdenum mines, U.S.

Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

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

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

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

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 d

(1,509) (1,436) 14

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

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.

Includes charges totaling $18 million ($0.07 per pound of copper) for feasibility and optimization studies.

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

Three Months Ended March 31, 2025

Six Months Ended June 30, 2026

(In millions) By-Product Co-Product Method

45 unchanged sentences

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

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

Includes charges totaling $20 million ($0.04 per pound of copper) for feasibility and optimization studies and $10 million ($0.02 per pound of copper) for inventory write-offs.

Represents the combined total for U.S.

2 unchanged sentences

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

Six Months Ended June 30, 2025

(In millions) By-Product Co-Product Method

Method Copper Other a

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

Site production and delivery, before net noncash

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

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

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

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

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 d

(2,921) (2,736) 25

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

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.

Includes charges totaling $33 million ($0.06 per pound of copper) for feasibility and optimization studies.

Represents the combined total for U.S.

copper mines, Indonesia operations, Molybdenum mines, U.S.

Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

(In millions) Co-Product Method

By-Product Method Copper Gold Silver & Other a

Revenues $ 935 $ 935 $ 535 $ 70 $ 1,540

Site production and delivery, before net noncash

and other costs shown below 354 215 123 16 354

By-product credits (605) — — — —

Treatment charges 71 43 25 3 71

Royalty on metals 57 35 21 1 57

Net cash (credits) costs (123) 293 169 20 482

138 79 11 228

Noncash and other costs, net 300 c

182 104 14 300

Total costs 405 613 352 45 1,010

Gross profit $ 530 $ 322 $ 183 $ 25 $ 530

Copper sales (millions of recoverable pounds) 153 153

Gold sales (thousands of recoverable ounces) 118

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

Revenues $ 6.12 $ 6.12 $ 4,529

Site production and delivery, before net noncash

and other costs shown below 2.30 1.41 1,040

By-product credits (3.96) — —

Treatment charges 0.47 0.28 209

Royalty on metals 0.38 0.23 176

Unit net cash (credits) costs (0.81) 1.92 1,425

Noncash and other costs, net 1.96 c

Total unit costs 2.65 4.01 2,976

Gross profit per pound/ounce $ 3.47 $ 2.11 $ 1,553

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 1,540 $ 354 $ 228

Treatment charges — 71 d

Royalty on metals (57) — —

Noncash and other costs, net — 300 —

Eliminations and other — (1) —

Indonesia operations 1,483 724 228

Other mining e

7,564 5,521 273

Corporate, other & eliminations f

(2,018) (1,925) 22

As reported in our consolidated financial statements $ 7,029 $ 4,320 $ 523

Includes silver sales of 0.6 million ounces ($69.25 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.

Includes $79 million ($0.52 per pound of copper) of idle facility costs associated with the September 2025 external mud rush incident.

Includes $284 million ($1.86 per pound of copper) of idle facility and restoration costs associated with the September 2025 external mud rush incident.

Primarily represents tolling costs paid to PT Smelting, and excludes idle facility related tolling fees that are included in noncash and other costs, net (refer to note c above).

Represents the combined total for U.S.

copper mines, South America operations, Molybdenum mines, U.S.

Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

Three Months Ended June 30, 2025

(In millions) Co-Product Method

By-Product Method Copper Gold Silver & Other a

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

3 unchanged sentences

Treatment charges 88 46 41 1 88

Export duties 146 77 66 3 146

Royalty on metals 133 70 62 1 133

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

DD&A 389 205 179 5 389

Noncash and other costs, net 78 b

Total costs 29 944 826 24 1,794

Other revenue adjustments, primarily for pricing

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

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

Copper sales (millions of recoverable pounds) 443 443

Gold sales (thousands of recoverable ounces) 518

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

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

Site production and delivery, before net noncash

and other costs shown below 2.17 1.14 854

By-product credits (3.98) — —

Treatment charges 0.19 0.11 77

Export duties 0.33 0.17 128

Royalty on metals 0.30 0.16 120

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

DD&A 0.88 0.46 346

Noncash and other costs, net 0.18 b

Total unit costs 0.07 2.13 1,595

Other revenue adjustments, primarily for pricing

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

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

Reconciliation to Amounts Reported

Revenues and Delivery DD&A

Totals presented above $ 3,710 $ 960 $ 389

Treatment charges (2) 86 c

Export duties (146) — —

Royalty on metals (133) — —

Noncash and other costs, net — 78 —

Other revenue adjustments, primarily for pricing

on prior period open sales (13) — —

Indonesia operations 3,417 1,124 389

Other mining d

5,674 4,594 265

Corporate, other & eliminations e

(1,509) (1,436) 14

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

Includes silver sales of 1.1 million ounces ($34.47 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.

Includes charges totaling $58 million ($0.13 per pound of copper) for operational readiness and start-up costs associated with PTFI’s downstream processing facilities and $7 million ($0.02 per pound of copper) for remediation costs related to the October 2024 incident at PTFI’s smelter.

Primarily represents tolling costs paid to PT Smelting.

Represents the combined total for U.S.

copper mines, South America operations, Molybdenum mines, U.S.

Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

Six Months Ended June 30, 2026

(In millions) Co-Product Method

By-Product Method Copper Gold Silver & Other a

Revenues, excluding adjustments $ 1,420 $ 1,420 $ 1,100 $ 134 $ 2,654

Site production and delivery, before net noncash

and other costs shown below 593 317 246 30 593

By-product credits (1,236) — — — —

Treatment charges 121 65 50 6 121

Royalty on metals 108 60 45 3 108

Net cash (credits) costs (414) 442 341 39 822

226 175 21 422

Noncash and other costs, net 722 c

27 unchanged sentences

on prior period open sales 10 — —

Eliminations and other 1 — —

Indonesia operations 2,555 1,434 422

4 unchanged sentences

As reported in our consolidated financial statements $ 13,263 $ 8,385 $ 1,037

Includes silver sales of 0.5 million ounces ($84.38 per ounce average realized price).

Includes $93 million ($1.13 per pound of copper) of idle facility costs associated with the Mud Rush Incident.

Includes $406 million ($4.93 per pound of copper) of idle facility and restoration costs associated with the Mud Rush Incident.

Includes silver sales of 1.1 million ounces ($76.66 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.

Includes $172 million ($0.73 per pound of copper) of idle facility costs associated with the September 2025 external mud rush incident.

Includes $690 million ($2.93 per pound of copper) of idle facility and restoration costs associated with the September 2025 external mud rush incident.

Primarily represents tolling costs paid to PT Smelting, and excludes idle facility related tolling fees that are included in noncash and other costs, net (refer to note c above).

3 unchanged sentences

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”

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

Three Months Ended March 31, 2025

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

Six Months Ended June 30, 2025

(In millions) Co-Product Method

8 unchanged sentences

Royalty on metals 199 118 80 1 199

Net cash costs 187 458 143 8 609

Net cash (credits) costs (251) 1,151 761 25 1,937

DD&A 575 342 225 8 575

14 unchanged sentences

Royalty on metals 0.27 0.16 125

Unit net cash costs 0.64 1.58 1,145

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

DD&A 0.78 0.47 350

13 unchanged sentences

on prior period open sales 36 — —

Eliminations and other — 1 —

Indonesia operations 4,987 1,702 575

4 unchanged sentences

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

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

Includes charges totaling $44 million ($0.15 per pound of copper) for operational readiness and start-up costs associated with PTFI’s downstream processing facilities, $24 million ($0.08 per pound of copper) related to the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities and $23 million ($0.08 per pound of copper) for remediation costs related to the October 2024 incident at PTFI’s smelter.

Represents tolling costs paid to PT Smelting.

Includes silver sales of 1.5 million ounces ($33.78 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.

Includes charges totaling (i) $102 million ($0.14 per pound of copper) for operational readiness and start-up 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 incident at PTFI’s smelter and (iii) $24 million ($0.03 per pound of copper) related to the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities.

Primarily represents tolling costs paid to PT Smelting.

Represents the combined total for U.S.

3 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

(In millions) 2026 2025

4 unchanged sentences

Net cash costs 145 131

Noncash and other costs, net 7 6

Noncash and other costs, net 13 b

Total costs 180 163

9 unchanged sentences

DD&A 2.83 2.83

Noncash and other costs, net 1.76 b

Total unit costs 23.79 17.67

Gross profit per pound $ 4.03 $ 2.85

Reconciliation to Amounts Reported

Three Months Ended June 30, 2026 Revenues and Delivery DD&A

Totals presented above $ 211 $ 138 $ 22

Treatment charges and other (7) — —

Noncash and other costs, net — 13 —

Molybdenum mines 204 151 22

Other mining c

8,843 6,094 479

Corporate, other & eliminations d

(2,018) (1,925) 22

As reported in our consolidated financial statements $ 7,029 $ 4,320 $ 523

Three Months Ended June 30, 2025

Totals presented above $ 189 $ 122 $ 26

Treatment charges and other (9) — —

Noncash and other costs, net — 6 —

Molybdenum mines 180 128 26

Other mining c

8,911 5,590 628

Corporate, other & eliminations d

(1,509) (1,436) 14

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

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.

Includes charges totaling $7 million ($0.90 per pound of molybdenum) for inventory write-offs.

Represents the combined total for U.S.

copper mines, South America and Indonesia operations, U.S.

Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”

Represents Corporate, other & eliminations as presented in “Business Divisions and Segments,” which also includes amounts associated with our molybdenum sales company, including sales of molybdenum produced by the Molybdenum mines and by certain of the U.S.

copper mines and the Cerro Verde mine.

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

Six Months Ended June 30,

(In millions) 2026 2025

Revenues, excluding adjustments a

Site production and delivery, before net noncash

and other costs shown below 267 238

Treatment charges and other 16 18

Net cash costs 283 256

Noncash and other costs, net 20 b

Total costs 349 320

Gross profit $ 83 $ 55

Molybdenum sales (millions of recoverable pounds) a

Gross profit per pound of molybdenum:

Revenues, excluding adjustments a

$ 26.42 $ 20.43

Site production and delivery, before net noncash

and other costs shown below 16.33 12.95

Treatment charges and other 0.98 1.01

Unit net cash costs 17.31 13.96

DD&A 2.82 2.83

Noncash and other costs, net 1.22 b

Total unit costs 21.35 17.42

1 unchanged sentence

Reconciliation to Amounts Reported

Three Months Ended March 31, 2026 Revenues and Delivery DD&A

Six Months Ended June 30, 2026 Revenues and Delivery DD&A

Totals presented above $ 432 $ 267 $ 46

2 unchanged sentences

Molybdenum mines 416 287 46

Other mining b

Other mining c

16,779 11,879 949

Corporate, other & eliminations c

Corporate, other & eliminations d

(3,932) (3,781) 42

As reported in our consolidated financial statements $ 13,263 $ 8,385 $ 1,037

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Totals presented above $ 375 $ 238 $ 52

2 unchanged sentences

Molybdenum mines 357 250 52

Other mining b

Other mining c

15,874 10,524 1,057

Corporate, other & eliminations c

Corporate, other & eliminations d

(2,921) (2,736) 25

3 unchanged sentences

as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

Includes charges totaling $7 million ($0.42 per pound of molybdenum) for inventory write-offs.

Represents the combined total for U.S.

6 unchanged sentences

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;

restoration and remediation efforts, and phased restart and ramp-up of production and downstream processing following the Mud Rush Incident at PTFI’s Grasberg Block Cave underground mine and the anticipated impact on FCX’s business, production, sales, results of operations and operating plans;

restoration and remediation efforts, and phased ramp-up of production and downstream processing following the September 2025 external mud rush incident at PTFI’s Grasberg Block Cave underground mine and the anticipated impact on our business, production, sales, results of operations and operating plans;

global market conditions, including trade policies;

7 unchanged sentences

timing of shipments of inventoried production;

our sustainability-related commitments and targets;

our sustainability-related commitments, aspirations 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;

3 unchanged sentences

development and production activities, rates and costs;

future organic growth opportunities;

future organic growth opportunities and investment decisions;

the impact of copper, gold and molybdenum price changes;

12 unchanged sentences

timing of shipments and sales;

reduced customer demand or capacity;

changes in the terms of arrangements or contracts;

PTFI’s ability to repair mud rush incident-related damage, implement enhanced operating procedures, safely restart with a phased ramp-up and achieve full operating rates of production and downstream processing on the expected timeline and optimize production plans;

8 unchanged sentences

mine sequencing;

changes in mine plans or operational modifications, delays, deferrals or cancellations, including the ability to smelt and refine or inventory;

changes in mine plans or operational modifications, delays, deferrals or cancellations, including the ability to smelt and refine or inventory production;

results of technical, economic or feasibility studies;

2 unchanged sentences

satisfaction of requirements in accordance with PTFI’s IUPK to extend mining rights from 2031 through 2041;

delays in Indonesia government approvals or failure to obtain Indonesia government approval, including on the agreed upon terms of the MOU and relating to the amendment to the IUPK to extend PTFI’s operating rights beyond 2041;

delays in Indonesia government approvals or failure to obtain Indonesia government approval, including on the terms of the MOU and relating to the amendment to the IUPK to extend PTFI’s operating rights beyond 2041;

delays in consummating the terms of the MOU, including entering into any definitive agreements;

21 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis