Freeport-McMoRan Inc. (FCX) FY2025 10-K and Q2 FY2026 10-Q Summary

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.