Freeport-McMoRan Inc. (FCX)

Business

From the FY2025 Form 10-K, accession 0000831259-26-000012.

Freeport-McMoRan mines, smelts, refines and sells copper, and produces gold and molybdenum alongside it. It is one of the world's largest publicly traded copper producers, ranked third worldwide in 2025 with roughly 5% of estimated global mined copper production on a net equity basis, per Wood Mackenzie's December 2025 estimates. Copper accounted for 75% of consolidated 2025 revenues, gold 15% and molybdenum 8%. The company is headquartered in Phoenix, Arizona and incorporated in Delaware.

Where the metal comes from. Three geographies:

• United States, seven copper operations (Morenci, Bagdad, Safford including Lone Star, Sierrita and Miami in Arizona; Chino and Tyrone in New Mexico) and two primary molybdenum mines (Henderson and Climax in Colorado). The company also runs a copper smelter and rod mill in Miami, Arizona and a copper refinery and rod mill in El Paso, Texas. Morenci is 72%-owned through an unincorporated joint venture with Sumitomo entities; the rest are wholly owned. Five further Arizona copper mines (Ajo, Bisbee, Tohono, Twin Buttes, Christmas) sit on care and maintenance.
• South America, Cerro Verde in Peru (55.08% owned at December 31, 2025) and El Abra in Chile (51% owned, with Codelco holding 49%). Cerro Verde also produces molybdenum concentrate and silver.
• Indonesia, the Grasberg minerals district in Central Papua, operated by PT Freeport Indonesia (PTFI), in which FCX holds a 48.76% share and which it manages and consolidates. The balance is held by Indonesian state-linked entities (MIND ID and PT Indonesia Papua Metal Dan Mineral). Grasberg is one of the world's largest copper and gold deposits and supplies substantially all of FCX's gold.

In 2025, the U.S. produced 39% of consolidated copper, South America 31% and Indonesia 30%; Indonesia produced 98% of consolidated gold and the U.S. 77% of molybdenum. Three mines, Morenci, Cerro Verde and Grasberg, together made 70% of consolidated copper output.

How the metal is sold. During 2025, 43% of mined copper was sold as concentrate, 33% as cathode and 24% as rod. U.S. mine output is largely refined at El Paso and cast into rod for wire and cable manufacturers, priced off COMEX monthly averages plus a premium; South America and Indonesia sales are priced off LME monthly averages, typically provisionally priced with final pricing one to four months after shipment. Gold from the Grasberg district was historically sold inside copper concentrate; with PTFI's smelter and precious metals refinery (PMR) completed in 2025, PTFI is a fully integrated producer of refined copper and gold and sells gold bars priced near the London PM gold price. Molybdenum is priced off Platts Metals Daily. Mitsubishi Materials Corporation, PTFI's joint venture partner in PT Smelting, was the only customer above 10% of consolidated revenues in the three years ended December 31, 2025 (in 2024).

Smelting and downstream. Atlantic Copper in Huelva, Spain is wholly owned (about 300,000 t/yr anode capacity, 286,000 t/yr refinery capacity) and bought 77% of its concentrate from third parties in 2025; it is building an e-material recycling project with roughly $560 million of initial capital, expected to begin operations in 2026. PT Smelting in Gresik, Indonesia is 66%-owned by PTFI (1.3 million t/yr concentrate capacity) and operates on a tolling arrangement. PTFI's own smelter, also in Gresik/Eastern Java, has roughly 1.7 million t/yr concentrate capacity; it produced its first copper cathode in July 2025 after a fire during October 2024 start-up forced repairs. The Miami smelter in Arizona processes U.S. concentrate and is the most significant source of sulfuric acid for U.S. leaching.

Reserves and growth. At December 31, 2025, estimated recoverable proven and probable reserves were 112.3 billion pounds of copper, 20.6 million ounces of gold and 3.5 billion pounds of molybdenum on a consolidated basis (78.6 / 10.4 / 3.1 on a net equity interest basis), determined using price assumptions of $3.25 per pound copper, $1,600 per ounce gold and $14.00 per pound molybdenum. The growth pipeline is:

• Grasberg underground, Grasberg Block Cave, DMLZ and Big Gossan are commissioned; at normal rates the underground complex produces about 1.7 billion pounds of copper and 1.3 million ounces of gold a year at among the lowest costs in the world.
• Kucing Liar, in development since 2022 in the Grasberg district. 2025 studies raised design capacity to 130,000 tonnes of ore per day and lifted preliminary reserves to roughly 8 billion pounds of copper and 8 million ounces of gold through 2041; production at full rates would approximate 750 million pounds of copper and 735 thousand ounces of gold a year. About $1.1 billion had been spent at year-end 2025, with roughly $4 billion more estimated through 2033 and initial production ramping in the 2030 timeframe.
• Bagdad, an opportunity to more than double concentrator capacity, adding 200–250 million pounds of copper per year against an over-80-year reserve life.
• El Abra, a large sulfide reserve supporting a potential mill project similar in scale to Cerro Verde's concentrator, which could add over 700 million pounds of copper per year.
• Leaching and technology, new applications, technologies and data analytics applied to leach stockpiles across the U.S. and South America reached an annual run rate of about 240 million pounds of copper in late 2025, with a 2026 target of 300 million pounds.

Capital expenditures totaled $4.5 billion in 2025, including $2.3 billion for major mining projects and $0.6 billion for PTFI's downstream facilities; exploration spending was $143 million.

Mining rights in Indonesia. PTFI's special mining business license (IUPK), granted in 2018 in place of its prior contract of work, runs through 2031 with rights to extend to 2041 subject to building domestic smelting and refining capacity and meeting fiscal obligations. Indonesian reserve estimates reflect only what can be recovered through 2041. FCX expects to hold approximately 49% of PTFI through 2041 and approximately 37% from 2042, following transfer of an additional interest to a state-owned enterprise.

Tariffs and the U.S. position. Effective August 1, 2025 a 50% Section 232 tariff applies to U.S. imports of semi-finished copper products and copper-intensive derivatives; refined copper, cathode, concentrate and scrap, was exempted, with the U.S. government indicating it would reassess by mid-2026 a possible refined copper tariff of 15% from January 2027 rising to 30% in 2028. Directives also contemplate requiring 25% of U.S.-produced cathode and concentrate to be sold domestically in 2027, rising to 30% in 2028 and 40% in 2029; because FCX's U.S. operations are integrated and mostly sell domestically, these are not expected to affect its business. FCX supplies roughly 70% of total U.S. refined copper production.

The September 2025 mud rush. On September 8, 2025, PTFI experienced an external mud rush in which approximately 800,000 metric tons of wet material entered the Grasberg Block Cave underground mine from the former Grasberg open pit, reaching multiple levels including a service level where seven team members were later found deceased. Mining was suspended; DMLZ and Big Gossan restarted in late October 2025; investigations and remedial plans were completed in the fourth quarter, with a phased restart of the Block Cave planned to begin in the second quarter of 2026. This incident is the dominant fact in FCX's 2025 results and its 2026 plan.

People and safety. Approximately 29,000 employees at December 31, 2025 (13,900 U.S., 7,300 South America, 6,600 Indonesia, 1,200 Europe and elsewhere), plus large contractor populations, about 27,700 in Indonesia alone. Roughly 28% of employees are covered by collective labor agreements; U.S. employees are not unionized. In 2025 there were three separate fatal incidents resulting in nine work-related fatalities, seven of them in the mud rush, against two in 2024; the total recordable incident rate was 0.55 per 200,000 hours in 2025 versus 0.53 in 2024. At year-end 2025 FCX operated 15 active tailings storage facilities (13 U.S., 2 Peru) and produced about 326 million metric tons of tailings globally.

Risk factors

From the FY2025 Form 10-K, accession 0000831259-26-000012.

Commodity prices. Results vary directly with copper, gold and molybdenum prices, which are cyclical and volatile and set on exchanges beyond the company's control. Sustained low prices could force revisions to operating plans, metals inventory adjustments and impairments of long-lived assets. Copper prices are particularly exposed to demand from China, the largest consumer of refined copper.

Indonesia concentration and the IUPK. Indonesia operations are material to the business. PTFI will not mine all Grasberg reserves before the IUPK's initial term expires in 2031, and Indonesian reserves are stated only through 2041. If PTFI fails to meet its defined fiscal and other obligations, the IUPK may not be extended, and reported reserves and the carrying value of Indonesian assets could be affected. Indonesian regulation of downstream processing, export licensing and export proceeds has changed repeatedly; a 2023 regulation required 30% of PTFI's gross export proceeds to be deposited in Indonesian banks, amended in March 2025 to 100% for 12 months. PTFI's export license expired September 16, 2025.

Mud rush remediation and restart. There is no assurance that mud removal, remediation and the phased restart and ramp-up of the Grasberg Block Cave will proceed as planned. The incident affected second-half 2025 results, and the company expects it to have a significant impact on 2026 operating and financial results. Material changes to operating plans could affect mineral reserves.

Operational risks. Underground mining carries higher risk than surface mining, seismicity, ground conditions, water and mud inflows, ventilation. Smelting and refining add their own exposure, as the October 2024 smelter fire showed. Tailings and waste-rock management is a catastrophic-consequence risk: 10 of the 15 active tailings facilities use an upstream design, and at least one impoundment sits where a failure could reach nearby communities or infrastructure. Indonesian tailings are managed through a riverine system in a permitted tailings management area; modeling indicates tailings may deposit outside approved lateral levees in adjacent mangroves.

Debt and financial commitments. Total consolidated debt was $9.4 billion at December 31, 2025, with $1.3 billion due in 2027. Senior unsecured ratings as of January 31, 2026 were Baa2 (stable) from Moody's and BBB (stable) from S&P. FCX is a holding company; its ability to service debt, pay dividends and repurchase shares depends on distributions from subsidiaries whose cash is shared with noncontrolling interests and subject to withholding taxes.

Closure, reclamation and environmental liabilities. U.S. financial assurance obligations for closure and reclamation totaled $2.2 billion at December 31, 2025, roughly half satisfied by company guarantees. Environmental obligations of $2.0 billion were recorded on the balance sheet. Remediation of long-idle U.S. properties rests on complex historical facts and uncertain regulatory interpretation, and significant upward revisions are likely over time.

Legal proceedings and investigations. FCX faces a securities class action and a shareholder derivative lawsuit following the September 2025 mud rush. It has been responding to an SEC subpoena and a DOJ information request concerning public disclosures about the engineering design and construction of PTFI's smelter, which is also the subject of a whistleblower complaint from a former contractor before the U.S. Department of Labor. Separately, FCX is investigating whether activities of PT Smelting may have violated the U.S. Foreign Corrupt Practices Act or other laws; it voluntarily notified the SEC and DOJ; as disclosed in the Q2 2026 Form 10-Q (accession 0000831259-26-000036), on March 17, 2026 the SEC notified FCX that it does not intend to pursue an enforcement action. The investigation's outcome cannot be predicted.

Water rights. Western U.S. operations depend on contested water. FCX is an active participant in the Gila River adjudication, a 50-year-old Arizona proceeding affecting Morenci, Safford (including Lone Star) and Sierrita, in which courts are quantifying surface water claims and determining when subsurface water counts as appropriable "subflow." Federal reserved water rights claims add further exposure. An adverse resolution could curtail operations or block expansions.

Geopolitical, tax and trade. Assets sit in Indonesia, Peru and Chile, exposing FCX to permit renegotiation, expropriation, retroactive legal changes, civil unrest, currency controls, and shifting U.S. tariff and trade policy. The company is subject to income, royalty and transaction taxes across many jurisdictions, and to the OECD Pillar Two global minimum tax framework and U.S. legislation including the Inflation Reduction Act and H.R.1 (the One Big Beautiful Bill Act), signed July 4, 2025.

Labor and people. Approximately 11% of the global employee population was covered by agreements scheduled to expire during 2026. In December 2025 a group of union members at Cerro Verde struck for three days, an action the Peruvian Labor Ministry declared unfounded; operations continued without significant disruption. Recruiting and retaining skilled technical trades in the U.S. remained challenging in 2025.

Development projects and reserves. Large underground projects are capital-intensive and long-dated; actual costs and timing may vary materially from estimates. Reserve and resource estimates are inherently uncertain, and recovered volume and grade may differ.

Other. Cybersecurity events (FCX has experienced targeted and non-targeted events), climate regulation and carbon pricing in Indonesia, Chile and the EU, physical climate impacts, community and Indigenous Peoples relations, and anti-takeover provisions in the charter and under Delaware law.

Management's discussion, fiscal year 2025

From the FY2025 Form 10-K, accession 0000831259-26-000012.

Results. Revenues were $25,915 million in 2025 against $25,455 million in 2024. Operating income fell to $6,518 million from $6,864 million, but net income attributable to common stock rose to $2,204 million, or $1.52 per diluted share, from $1,889 million, or $1.30. Management attributed the increase to higher operating income from U.S. and South America copper mining on higher realized copper prices, partly offset by weaker Indonesian results after the mud rush. Operating cash flow was $5,610 million (net of $1.3 billion of working capital and other uses) against $7,160 million in 2024; capital expenditures were $4,494 million against $4,808 million.

Volumes and prices. Copper production fell to 3,383 million recoverable pounds from 4,214 million, and sales to 3,574 million pounds from 4,066 million, while the average realized price rose to $4.75 per pound from $4.21. Gold production fell to 956 thousand ounces from 1,880 thousand and sales to 1,066 thousand ounces from 1,837 thousand, with realized price up to $3,423 per ounce from $2,418. Molybdenum production rose to 92 million pounds from 80 million, realizing $22.63 per pound versus $21.77. Unit net cash costs rose to $1.65 per pound of copper from $1.56; site production and delivery costs rose to $2.75 from $2.49.

The revenue bridge from 2024 to 2025 shows lower copper volumes ($2,073 million) and lower gold volumes ($1,954 million) nearly offset by higher realized copper ($1,930 million) and gold ($1,070 million) prices, plus lower treatment charges ($333 million) and lower export duties and royalties ($208 million).

By division (2025 operating income). Indonesia $3,840 million; South America $2,004 million (Cerro Verde $1,818 million); U.S. copper mines $1,638 million (Morenci $607 million); molybdenum mines $88 million; U.S. Rod & Refining $31 million; Atlantic Copper $11 million; corporate, other and eliminations $(1,094) million. Atlantic Copper revenues were $3.2 billion against $3.0 billion. Consolidated production and delivery costs were $16.4 billion against $15.6 billion, including $625 million of idle facility costs and direct recovery expenses associated with the September 2025 mud rush and $73 million of planned maintenance turnaround costs at the Miami smelter. The consolidated effective tax rate was 35% on $6,372 million of pre-tax income (37% on $6,907 million in 2024).

Markets. LME copper settlement prices averaged $4.51 per pound in 2025 (range $3.87–$5.68) and closed at $5.67 on December 31, 2025; COMEX averaged $4.82 (range $3.99–$5.80) and closed at $5.63, a 7% average premium to LME reflecting 2025 U.S. trade policy announcements. Both benchmarks closed at all-time highs in January 2026, LME at $6.28 and COMEX at $6.18 per pound. London PM gold averaged $3,432 per ounce in 2025 (range $2,633–$4,449), closed at $4,368 on December 31, 2025, and reached an all-time high close of $5,405 in January 2026.

Balance sheet and capital returns. At December 31, 2025, cash and equivalents were $3,824 million and consolidated debt $9,379 million, at a 5.2% weighted-average rate with roughly eight years average remaining duration and substantially all fixed-rate; no senior notes matured in 2026 and $1.3 billion was scheduled for 2027. Net debt was $2.3 billion excluding $3.2 billion of debt for the PTFI downstream processing facilities, against a stated net debt target of $3.0–$4.0 billion on that same exclusion basis. Undrawn capacity stood at $3.0 billion (FCX), $1.5 billion (PTFI, which had $250 million drawn on its $1.75 billion facility) and $350 million (Cerro Verde); Atlantic Copper had $482 million of short-term working capital borrowings. Of the $3.8 billion of cash, $1.8 billion sat at domestic companies and $2.0 billion at international operations, leaving $2.8 billion net of noncontrolling interests' share and withholding taxes.

FCX's financial policy allocates up to 50% of available cash flow after planned capital spending and noncontrolling interest distributions to shareholder returns, with the balance to debt reduction and growth, subject to the net debt target. Dividends totaled $0.60 per share for 2025 ($0.30 base, $0.30 variable); cash dividends paid on common stock were $0.9 billion in each of 2025 and 2024, and distributions to noncontrolling interests were $1.3 billion in 2025 (including $1.0 billion from PTFI) against $1.8 billion in 2024. FCX repurchased 2.9 million shares for $107 million in 2025 ($36.41 average) and had $3.0 billion remaining under the program at year-end, with 1.4 billion shares outstanding.

2026 outlook as given in the annual report. Projected consolidated sales of 3,380 million pounds of copper (1,400 U.S., 1,080 South America, 900 Indonesia), 800 thousand ounces of gold and 90 million pounds of molybdenum; unit net cash costs averaging $1.75 per pound excluding idle facility and restoration costs, which were then expected to total $0.9 billion for the year; operating cash flow of approximately $8 billion assuming $5.00 copper, $4,000 gold and $20.00 molybdenum; and capital expenditures of $4.3 billion ($3.0 billion major projects, $1.3 billion sustaining). Environmental capital and other environmental costs of about $0.7 billion and asset retirement expenditures of about $0.2 billion were expected for 2026.

Current quarter, three and six months ended June 30, 2026

From the Form 10-Q for the quarter ended June 30, 2026, accession 0000831259-26-000036.

Headline results. Revenues were $7,029 million in the second quarter against $7,582 million a year earlier, and $13,263 million for the six months against $13,310 million. Operating income was $2,003 million against $2,432 million in the quarter, but $4,140 million against $3,735 million for the half. Net income attributable to common stockholders was $984 million, or $0.68 per diluted share, against $772 million, or $0.53; for the six months, $1,865 million, or $1.29, against $1,124 million, or $0.77. Management attributed the improvement primarily to lower income taxes and noncontrolling interests, reflecting a higher share of operating income coming from the U.S. copper mines, plus, for the six months, the insurance settlement gain described below.

The shape of the quarter is price against volume. Copper sales fell to 710 million pounds from 1,016 million while the realized price rose to $6.17 per pound from $4.54; gold sales fell to 123 thousand ounces from 522 thousand while the realized price rose to $4,520 per ounce from $3,291; molybdenum sales rose to 25 million pounds from 22 million at $28.75 per pound against $21.10. Copper production was 786 million pounds against 963 million. Unit net cash costs were $1.97 per pound against $1.13, excluding $0.40 per pound of idle facility and restoration costs.

Operating income by division and the U.S. swing. Operating income from the U.S. copper mines more than doubled in the first six months of 2026 versus the first six months of 2025, primarily on higher realized copper and molybdenum prices, offsetting lower Indonesian income during the Block Cave ramp-up. U.S. copper sales were 312 million pounds in the quarter (639 million for the half) with average unit net cash costs of $2.94 per pound, down from $3.04, on higher by-product credits partly offset by higher supplies, diesel and consumables costs. South America copper sales were 245 million pounds in the quarter (493 million for the half), down on lower leach production and lower-grade stockpile ore from mine sequencing, at unit net cash costs of $2.48 per pound.

Indonesia and the Block Cave ramp-up. PTFI completed the remediation and restoration needed to restart Production Blocks 2 and 3 and began initial ramp-up at the end of March 2026; during the second quarter it made steady progress and achieved its planned operating rates, with material handling upgrades at the haulage level on schedule. Work continues toward a planned future restart of Production Block 1S. Grasberg Block Cave milling averaged 53,000 tonnes per day in the quarter against 114,500 a year earlier (28,800 versus 104,100 for the half), while DMLZ rose to 69,900 from 61,400. Indonesian copper sales were 153 million pounds against 443 million, and gold sales 118 thousand ounces against 518 thousand. PTFI's overall production rates are expected to approximate 65% of capacity in the second half of 2026, 80% by mid-2027, and to approach full capacity by the end of 2027.

Idle facility and restoration costs, which are non-inventoriable during the ramp-up, totaled $284 million in production and delivery costs plus $79 million in depreciation, depletion and amortization in the quarter, and $690 million plus $172 million for the six months. In April 2026, PTFI collected $0.7 billion of pre-tax proceeds settling its property and business interruption insurance claim for the mud rush; the $699 million gain was recognized in the first quarter of 2026.

PT Smelting resumed operations in late December 2025 and was running at capacity by the end of the second quarter of 2026. PTFI's own smelter is expected to restart in the second half of 2026 at reduced rates, depending on concentrate availability; the precious metals refinery continues to operate on a limited basis. Because PTFI now recognizes refined sales after processing rather than on loading of concentrate shipments, the company expects continued variability between production and sales volumes until the downstream facilities reach normalized rates.

Long-term mining rights. In February 2026, FCX and PTFI entered into a Memorandum of Understanding with the Indonesia government for a life-of-resource extension of operating rights in the Grasberg minerals district beyond the current 2041 expiration. Under the MOU, FCX would keep its 48.76% interest in PTFI through 2041 and hold approximately 37% from 2042, with the existing governance and operating structure, shareholder agreement, IUPK and other agreements continuing over the life of the resource. In June 2026, PTFI submitted its IUPK extension application. The extension and other terms remain subject to, among other things, issuance of an amended IUPK by the Indonesia government and entry into definitive agreements.

Growth projects. Leaching initiatives delivered 47 million pounds of incremental copper in the quarter and 101 million pounds in the half, against a target annual run rate of 300 million pounds by the end of 2026; large-scale testing of an internally developed additive is under way at Morenci with encouraging early results, and two further additives plus stockpile heating are planned for field testing. At Bagdad, capital cost estimates for the concentrator-doubling expansion have been revised to approximately $4.5 billion, about 30% above the $3.5 billion 2023 estimate, on cost escalation, scope revisions and additional engineering; the project would add 200–250 million pounds of copper and 10–12 million pounds of molybdenum per year and is still supported at an incentive copper price of about $4.00 per pound, with an investment decision targeted for the second half of 2026. At El Abra, an environmental impact study was submitted to Chilean authorities in March 2026; preliminary capital costs approximate $7.5 billion based on 2024 estimates. Safford/Lone Star pre-feasibility studies are expected to complete during 2026. Feasibility and optimization study costs were $33 million in the quarter and are estimated at $200 million for 2026.

Capital structure and returns. At June 30, 2026, cash and equivalents were $4,080 million and consolidated debt $9,386 million, with net debt of $2.1 billion excluding $3.2 billion of downstream processing facility debt. Scheduled senior note maturities are $0.7 billion in April 2027 and $0.6 billion in the second half of 2027. In May 2026, FCX and PTFI entered a new $3.0 billion, five-year senior unsecured revolving credit facility maturing May 14, 2031, replacing the prior $3.0 billion facility that would have matured in October 2027 (with a $500 million limit on PTFI borrowings and a $1.5 billion letter of credit sublimit); Cerro Verde entered a new $350 million five-year facility maturing May 2031. At quarter end FCX had no borrowings and $5 million of letters of credit outstanding, PTFI had $250 million drawn, Cerro Verde had none, and Atlantic Copper had $0.5 billion of short-term working capital borrowings. Six-month operating cash flow was $3,543 million (including the $0.7 billion insurance proceeds) against $3,253 million, and capital expenditures $2,077 million against $2,433 million.

FCX repurchased 3.4 million shares for $203 million ($59.30 average) in the first six months of 2026 and paid $0.4 billion of common dividends. On June 24, 2026 the Board declared quarterly dividends of $0.15 per share ($0.075 base plus $0.075 variable). In May 2026, FCX bought 2.0 million Cerro Verde shares in the open market for $107 million, raising its interest from 55.08% to 55.66%.

Markets in the quarter. LME copper settlement prices averaged $6.05 per pound (range $5.51–$6.39) and closed at $6.05 on June 30, 2026; COMEX averaged $6.16 (range $5.54–$6.65) and closed at $6.19. London PM gold averaged $4,506 per ounce but retreated from the all-time highs set at the start of 2026, closing the quarter at $4,026, as a stronger dollar, higher Treasury yields and rising energy costs tightened conditions. Molybdenum averaged $29.40 per pound and closed at $31.29. The company notes that the conflict in the Middle East continues to contribute to copper price volatility, with secondary effects, higher energy prices and freight costs, weighing on global manufacturing and delaying demand recovery.

Indonesia regulatory and tax items. Effective June 1, 2026 the Indonesia government issued further amendments to the export proceeds regulation; PTFI is seeking clarification on their applicability and continues to deposit export proceeds consistent with historical practice. In April 2026, PTFI received assessments totaling $220 million from Indonesian tax authorities relating to 2022 audit exceptions; PTFI paid the disputed amounts on June 30, 2026, filed objections, and carries a long-term tax receivable for them. In March 2026, PTFI reached a new two-year collective labor agreement with its three unions at Grasberg without significant nonrecurring costs. In June 2026, PTFI's downstream processing facilities achieved their initial Copper Mark validation.

Guidance as of the second-quarter report. Full-year 2026 consolidated sales are now projected at 3,057 million pounds of copper (1,360 U.S., 1,022 South America, 675 Indonesia), 654 thousand ounces of gold and 93 million pounds of molybdenum, below the 3,380 / 800 / 90 projected in the annual report. Third-quarter 2026 sales are expected to approximate 750 million pounds of copper, 160 thousand ounces of gold and 22 million pounds of molybdenum, with second-half copper volumes above the first half on the continued Block Cave ramp-up and U.S. leaching. Copper and gold production for 2026 are expected to exceed sales by roughly 100 million pounds and 50 thousand ounces respectively, held as inventory at PTFI's smelting operations. Unit net cash costs are expected to average $1.90 per pound for 2026 ($2.00 in the third quarter), excluding idle facility and restoration costs now expected to approximate $1.2 billion for the year ($0.3 billion in the third quarter), up from the $0.9 billion estimated in February. Operating cash flow is expected to approximate $8.3 billion, net of $0.3 billion of working capital and other uses, assuming second-half prices of $6.00 copper, $4,000 gold and $30.00 molybdenum, and including a projected $2.6 billion income tax provision. Capital expenditures remain $4.3 billion and exclude any project capital for the Bagdad expansion.

Risk factor update. The quarterly report carried no changes to the annual risk factors other than a supplement on evolving geopolitical, economic, regulatory and social risks: FCX is investigating whether activities of PT Smelting may have violated the FCPA or other laws, and on March 17, 2026 the SEC notified the company it does not intend to pursue an enforcement action. The outcome of the investigation cannot be predicted. There were no significant updates to previously reported legal proceedings, environmental obligations, asset retirement obligations, lease commitments or contractual obligations.

Subsequent events

From the Form 10-Q for the quarter ended June 30, 2026 (accession 0000831259-26-000036) and the Form 8-K dated September 1, 2026 (accession 0000831259-26-000038).

The quarterly report states that FCX evaluated events after June 30, 2026 through the date the financial statements were issued and determined that any events and transactions requiring recognition or disclosure are addressed in those statements. It identifies no post-period acquisition, divestiture, financing or litigation settlement in that note. The post-period facts disclosed within the filing itself are:

• The $0.15 per share quarterly dividend declared June 24, 2026 was paid on August 3, 2026 to holders of record on July 15, 2026.
• As of July 31, 2026, FCX had repurchased a cumulative 55.4 million shares at a $39.80 average cost and had $2.8 billion remaining under its $5.0 billion share repurchase program.
• Copper prices set records after quarter end: the LME settlement price was $6.28 per pound on July 31, 2026 and closed at an all-time high of $6.56 on August 6, 2026; the COMEX price was $6.44 on July 31 and closed at an all-time high of $6.70 on August 5, 2026. London PM gold closed at $4,027 per ounce and molybdenum at $32.61 per pound on July 31, 2026.

After the quarterly report was filed, FCX disclosed one further event:

• PTFI revolving credit facility amended and extended (September 1, 2026). PTFI amended and restated its $1.75 billion senior unsecured revolving credit facility, extending the maturity date from November 2028 to September 2031. As of September 1, 2026, PTFI had $250 million of borrowings outstanding under the facility, which is available for its general corporate purposes.

Filings that contain financial statements

• Form 8-K, accession 0000831259-26-000033 (filed July 23, 2026, Exhibit 99.1), furnishes unaudited consolidated financial statements (balance sheet, statement of operations, statement of cash flows) for the second quarter and six months ended June 30, 2026.
• Form 8-K, accession 0000831259-26-000021 (filed April 23, 2026, Exhibit 99.1), furnishes unaudited consolidated financial statements for the first quarter ended March 31, 2026.
• Form 8-K, accession 0000831259-26-000006 (filed January 22, 2026, Exhibit 99.1), furnishes unaudited consolidated financial statements for the fourth quarter and full year ended December 31, 2025.
• Form 8-K, accession 0000831259-25-000048 (filed October 23, 2025, Exhibit 99.1), furnishes unaudited consolidated financial statements for the third quarter and nine months ended September 30, 2025.

Grasberg Block Cave mud rush incident and restart

On September 8, 2025, an external mud rush at PT Freeport Indonesia's (PTFI) Grasberg Block Cave (GBC) underground mine sent roughly 800,000 metric tons of wet material into the mine, blocking access to seven contractors working on the service level. Search and rescue continued through September; two team members were found deceased on September 20, 2025 and the remaining five were found deceased on October 5, 2025 (accessions 0000831259-25-000039, 0000831259-25-000042, 0000831259-25-000046).

Mining operations across the Grasberg district were suspended following the incident. PTFI restarted the unaffected Big Gossan and Deep Mill Level Zone underground mines in late October 2025 (accession 0000831259-25-000048). On November 18, 2025, FCX disclosed a new risk factor describing the incident and its anticipated effect on fourth-quarter 2025 and 2026 results, and outlined a phased GBC restart beginning in the second quarter of 2026 (accession 0000831259-25-000052).

Restart progressed through 2026: initial mining in GBC Production Blocks 2/3 commenced in March 2026, with planned operating rates achieved by the second quarter of 2026 (accessions 0000831259-26-000021 and 0000831259-26-000033). Restart of Production Block 1S is targeted for mid-2027, with a potential restart of Production Block 1C by year-end 2027. PTFI recognized a $0.7 billion insurance settlement gain related to the incident in the first quarter of 2026 (accession 0000831259-26-000021).

Indonesia mining-rights extension (MOU)

On February 18, 2026, FCX and its 48.76%-owned subsidiary PTFI entered into a Memorandum of Understanding (MOU) with the Government of Indonesia for a life-of-resource extension of PTFI's operating rights in the Grasberg minerals district, to be implemented through an amendment to PTFI's special mining business license (IUPK) (accession 0000831259-26-000014). Under the MOU's terms, FCX will maintain its 48.76% ownership interest through 2041, transfer a 12% interest to the Indonesian government at no cost in 2041 (with reimbursement to FCX at book value for investments benefiting the post-2041 period), and retain roughly 37% ownership thereafter; FCX will continue to control operations, and existing governance and shareholder agreements continue for the life of the resource. The extension and other agreed terms remain subject to the Indonesian government's issuance of an amended IUPK. The full text of the MOU, signed February 18, 2026, was filed as an exhibit to a Form 8-K/A (accession 0000831259-26-000016). In June 2026, PTFI submitted a formal license application for the extension (accession 0000831259-26-000033).

Earnings and results

• Third-quarter/nine-month 2025 results (announced October 23, 2025; accession 0000831259-25-000048): revenues of $7.0 billion and net income attributable to common stock of $0.7 billion in the third quarter, reflecting the operational impact of the September 2025 mud rush incident on Indonesian production.
• Fourth-quarter/full-year 2025 results (announced January 22, 2026; accession 0000831259-26-000006): full-year 2025 revenues of $25.9 billion and net income attributable to common stock of $2.2 billion (diluted EPS $1.52); full-year operating cash flow of $5.6 billion and capital expenditures of $4.5 billion.
• First-quarter 2026 results (announced April 23, 2026; accession 0000831259-26-000021): revenues of $6.2 billion and net income attributable to common stock of $0.9 billion (diluted EPS $0.61), including the $0.7 billion PTFI insurance settlement gain; operating cash flow of $1.5 billion.
• Second-quarter/six-month 2026 results (announced July 23, 2026; accession 0000831259-26-000033): second-quarter revenues of $7.0 billion and net income attributable to common stock of $1.0 billion (diluted EPS $0.68); operating cash flow of $2.0 billion. Management cited 1H26 U.S. copper mining operating income up roughly 2.4x versus 1H25 and confirmed the GBC ramp-up progressing on schedule.

Capital structure and financing

• May 14, 2026, FCX and PTFI entered into a new five-year, $3.0 billion senior unsecured revolving credit facility with JPMorgan Chase Bank, N.A. as administrative agent, replacing FCX's prior $3.0 billion facility that had been scheduled to mature in October 2027. The new facility matures May 14, 2031 and carries the same $500 million PTFI borrowing sublimit and $1.5 billion letter-of-credit sublimit as before, plus a financial covenant capping total leverage at 3.75 to 1.00 (accession 0000831259-26-000027).
• September 1, 2026, PTFI amended and restated its separate $1.75 billion senior unsecured revolving credit facility, extending its maturity from November 2028 to September 2031; PTFI had $250 million in borrowings outstanding under this facility as of the amendment date (accession 0000831259-26-000038).

Capital returns

FCX continued its performance-based payout framework, returning $0.6 billion to shareholders in the first half of 2026, including $0.2 billion of share repurchases (3.4 million shares at an average cost of $59.30 per share), and $6.3 billion cumulatively since mid-2021 (accession 0000831259-26-000033). The company also increased its ownership in the Cerro Verde subsidiary during the second quarter of 2026, purchasing 2 million additional shares for approximately $107 million and raising its stake to 55.66% from 55.08%.

Governance

• March 20, 2026, Board member Robert W. Dudley informed the company he would not stand for re-election at the 2026 annual meeting; the board subsequently reduced its size from 12 to 11 directors (accession 0000831259-26-000018).
• June 10, 2026, At FCX's 2026 annual meeting, stockholders elected all eleven director nominees, approved executive compensation on an advisory basis, and ratified Ernst & Young LLP as independent auditor for 2026 (accession 0000831259-26-000030).

Regulatory/safety

On January 14, 2026, Freeport-McMoRan Morenci Inc. received an imminent-danger order from the U.S. Mine Safety and Health Administration at the Morenci mine in Arizona after employees were observed working on an elevated conveyor belt without fall protection. No injuries occurred, and the order was terminated the same day (accession 0000831259-26-000002).

About this file

FCX annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

FCX quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

FCX year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

FCX trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Derivation. full-year 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025

Adjustments

Notes

• Freeport-McMoRan is a copper, gold and molybdenum mining company. The record uses a standard industrial template - revenues, cost of sales, operating income, net income and per-share amounts; cash, debt, assets and equity; operating cash flow, capital expenditures and free cash flow - with a key_operating_metrics block carrying the sales volumes, realized metal prices and unit net cash costs that are the measures management says it runs the business on.
• Freeport reports in U.S. dollars on a calendar fiscal year ending December 31. Dollar amounts in this record are stated in actual dollars; the filings present them in millions.
• Coverage: the FY2025 10-K (accession 0000831259-26-000012) presents income statements and cash flow statements for 2025, 2024 and 2023 and balance sheets at December 31, 2025 and 2024, so FY2023 here carries no balance sheet. The second-quarter 2026 10-Q (accession 0000831259-26-000036) presents the three and six months ended June 30, 2026 and 2025, balance sheets at June 30, 2026 and December 31, 2025, and cash flow statements for the six-month periods only.
• Gross profit is not a line Freeport prints. It is shown here as revenues less total cost of sales (production and delivery plus depreciation, depletion and amortization), so operating margins are comparable across periods.
• Free cash flow is not a line Freeport prints. It is shown here as net cash provided by operating activities less capital expenditures.
• Capital expenditures for 2025 and 2024 ($4,494 million and $4,808 million) are the totals the 10-K's management discussion prints. The 10-K's cash flow statement itemises capital expenditures by operation rather than as one line, so the 2023 figure of $4,824 million is the sum of those five items: U.S. copper mines $761 million, South America operations $368 million, Indonesia operations $3,411 million, molybdenum mines $84 million and other $200 million.
• Three-month cash flow: the 10-Q's cash flow statement presents only the six months ended June 30, 2026 and 2025. Operating cash flow and capital expenditures for the three months ended June 30, 2026 ($2,048 million and $1,104 million) and June 30, 2025 ($2,195 million and $1,261 million) are the amounts the same 10-Q's management discussion prints in its three-month columns. Investing and financing cash flows are not presented for a three-month period and so are absent from the quarterly entries.
• The 10-Q presents balance sheets only at June 30, 2026 and December 31, 2025. The Q2 2025 entry therefore carries just the two point-in-time amounts the 10-Q states for June 30, 2025: cash and cash equivalents of $4,490 million and total debt of $9,251 million.
• Net income is the consolidated total including noncontrolling interests; net income attributable to common stockholders is the amount earnings per share is struck on. Freeport consolidates PT Freeport Indonesia and Cerro Verde, which it does not wholly own, so the two differ substantially - $4,152 million versus $2,204 million in 2025.
• Total debt is total debt including the current portion, as the filings present it. Freeport reports long-term leases on a separate balance-sheet line and does not include them in total debt; that presentation is followed here.
• The gain on sales of assets and the gain on the PT Freeport Indonesia mud rush incident insurance settlement are carried with the sign the income statement prints them with - negative, because each is a credit inside total costs and expenses.
• The year-to-date block covers the six months ended June 30, 2026, with the six months ended June 30, 2025 held inside it as the prior-year comparative. The trailing-twelve-month block covers July 1, 2025 through June 30, 2026 and is computed as full-year 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025.
• Trailing-twelve-month per-share amounts follow from the reported figures: diluted earnings per share of $2.04 is $1.52 for 2025 plus $1.29 for the first half of 2026 less $0.77 for the first half of 2025, and basic earnings per share of $2.04 is $1.53 plus $1.29 less $0.78 on the same basis. The basic and diluted share counts shown for that window are the roughly 1,438 million and 1,443 million weighted-average levels both filings report rather than separately published trailing averages.
• Realized metal prices and unit net cash costs are weighted averages and are not aggregated into the trailing-twelve-month view. The trailing sales and production volumes shown there are the arithmetic sum of the component periods.
• Unit net cash costs per pound of copper is a measure Freeport reports net of by-product credits and before net noncash and other costs. The second-quarter 2026 figure of $1.97 and the first-half 2026 figure of $1.94 exclude $0.40 and $0.50 per pound respectively of idle facility and restoration costs related to PT Freeport Indonesia's September 2025 mud rush incident; the 2025 figures carry no such exclusion, so the comparison understates the year-over-year cost increase.
• No stock splits, ADR conversion or currency translation applies: Freeport has had no splits in the period covered, is not an ADR, and reports in U.S. dollars.

Uncertainties

• FY2023 carries no balance sheet: the FY2025 10-K presents balance sheets only at December 31, 2025 and 2024.
• FY2023 carries no unit net cash costs per pound of copper. The FY2025 10-K prints that measure for 2025 and 2024 only.
• The Q2 2025 entry carries only cash and total debt under balance_sheet, because the 10-Q does not present a June 30, 2025 balance sheet.
• Investing and financing cash flows, and the individual cash flow line items below them, are not available for the three-month periods; only operating cash flow and capital expenditures are disclosed on a three-month basis.
• The diluted share count in the trailing-twelve-month block is the approximately 1,443 million level reported in both filings, not a separately published trailing weighted average, so trailing diluted earnings per share of $2.04 should be read as the sum of the reported per-share amounts rather than as an independently computed ratio.
• Trailing-twelve-month figures are arithmetic combinations of reported periods, not amounts Freeport itself publishes.
• Revenues, operating income and net income are not broken out by operating division here, although the filings do report segment results.

Company details

Fiscal period

Source filings