Freeport-McMoRan · Earnings release

Freeport Reports

Fourth-Quarter and Year Ended 2024 Results

•Solid operating performance

◦Fourth-quarter 2024 copper and gold sales volumes above October 2024 guidance

◦Fourth-quarter 2024 unit net cash costs below October 2024 guidance

•Commenced start-up at the Indonesia Precious Metals Refinery; Smelter start-up expected by mid-year 2025

•Advancing options for long-term organic growth

•Strong financial position

•Favorable market fundamentals and long-term outlook

▪Net income attributable to common stock in fourth-quarter 2024 totaled $274 million, $0.19 per share, and adjusted net income attributable to common stock totaled $450 million, $0.31 per share, after excluding net charges totaling $176 million, $0.12 per share.

▪Consolidated production totaled 1.04 billion pounds of copper, 432 thousand ounces of gold and 22 million pounds of molybdenum in fourth-quarter 2024, and 4.2 billion pounds of copper, 1.9 million ounces of gold and 80 million pounds of molybdenum for the year 2024.

▪Consolidated sales totaled 1.0 billion pounds of copper, 350 thousand ounces of gold and 18 million pounds of molybdenum in fourth-quarter 2024, and 4.1 billion pounds of copper, 1.84 million ounces of gold and 78 million pounds of molybdenum for the year 2024.

▪G1G2G3G4G5G6Consolidated sales are expected to approximate 4.0 billion pounds of copper, 1.6 million ounces of gold and 88 million pounds of molybdenum for the year 2025, including 850 million pounds of copper, 225 thousand ounces of gold and 22 million pounds of molybdenum in first-quarter 2025.

▪Average realized prices were $4.15 per pound for copper, $2,628 per ounce for gold and $22.23 per pound for molybdenum in fourth-quarter 2024, and $4.21 per pound for copper, $2,418 per ounce for gold and $21.77 per pound for molybdenum for the year 2024.

▪Average unit net cash costs were $1.66 per pound of copper in fourth-quarter 2024 and $1.56 per pound of copper for the year 2024. G7Unit net cash costs are expected to average $1.60 per pound of copper for the year 2025.

▪Operating cash flows totaled $1.4 billion in fourth-quarter 2024 and $7.2 billion for the year 2024. G8Operating cash flows are expected to approximate $6.2 billion for the year 2025, based on achievement of current sales volume and cost estimates, and assuming average prices of $4.00 per pound for copper, $2,700 per ounce for gold and $20.00 per pound for molybdenum for the year 2025.

▪Capital expenditures in fourth-quarter 2024 totaled $1.2 billion, including $0.6 billion for major mining projects and $0.2 billion for PT Freeport Indonesia’s (PT-FI) new smelter and precious metals refinery (PMR) (collectively, PT-FI’s new downstream processing facilities). For the year 2024, capital expenditures were $4.8 billion, including $2.1 billion for major mining projects and $1.17 billion for PT-FI’s new downstream processing facilities. G9Capital expenditures are expected to approximate $5.0 billion, including $2.8 billion for major mining projects and $0.6 billion for PT-FI’s new downstream processing facilities (excluding capitalized interest, owner’s costs and commissioning) for the year 2025.

▪During fourth-quarter 2024, FCX repaid $0.7 billion in maturing senior notes.

▪At December 31, 2024, consolidated debt totaled $8.9 billion and consolidated cash and cash equivalents totaled $3.9 billion, $4.7 billion including $0.7 billion of current restricted cash associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks. Net debt totaled $1.06 billion, excluding $3.2 billion of debt for PT-FI’s new downstream processing facilities. Refer to the supplemental schedule, “Net Debt,” on page IX.

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PHOENIX, AZ, January 23, 2025 – Freeport (NYSE: FCX) reported fourth-quarter 2024 net income attributable to common stock of $274 million, $0.19 per share, and adjusted net income attributable to common stock of $450 million, $0.31 per share, after excluding net charges totaling $176 million, $0.12 per share, primarily associated with adjustments to asset retirement obligations, charges associated with legacy oil and gas properties and metals inventory adjustments. For additional information, refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII.

Richard Adkerson, Chairman of the Board, and Kathleen Quirk, President and Chief Executive Officer, said, “We enter 2025 with a clear focus on continued strong execution of our operating plans, enhancing productivity, managing costs and capital, and advancing opportunities for long-term profitable growth and value creation. Our global team delivered solid results in 2024 and we are strongly positioned for the future with high-quality, large-scale copper assets, attractive organic growth options, successful track record of our team and a strong balance sheet. Copper's role in the global economy is increasingly important and Freeport is well positioned for the future as a global industry leader.”

SUMMARY FINANCIAL DATA

Three Months Ended December 31,

Years Ended

(in millions, except per share amounts)

Revenuesa,b

$

$

$

$

Operating incomea,c

$

$

$

$

Net income attributable to common stockb,c,d

$

$

$

$

Diluted net income per share of common stockb,c,d

$

$

$

$

Diluted weighted-average common shares outstanding

Operating cash flowse

$

$

$

$

Capital expenditures

$

$

$

$

At December 31:

Cash and cash equivalents

$

$

$

$

Restricted cash and cash equivalents, currentf

$

$

$

$

Total debt, including current portion

$

$

$

$

a.For segment financial results, refer to the supplemental schedules, “Business Segments,” beginning on page XI.

b.Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(77) million ($(28) million to net income attributable to common stock or $(0.02) per share) in fourth-quarter 2024, $(13) million ($(5) million to net income attributable to common stock or less than $0.01 per share) in fourth-quarter 2023, $28 million ($9 million to net income attributable to common stock or $0.01 per share) for the year 2024 and $183 million ($62 million to net income attributable to common stock or $0.04 per share) for the year 2023. For further discussion, refer to the supplemental schedule, “Derivative Instruments,” beginning on page IX.

c.FCX defers 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 (reductions) additions to operating income totaling $(52) million ($(20) million to net income attributable to common stock or $(0.01) per share) in fourth-quarter 2024, $(89) million ($(26) million to net income attributable to common stock or $(0.02) per share) in fourth-quarter 2023, $21 million ($(3) million to net income attributable to common stock or less than $0.01 per share) for the year 2024 and $64 million ($37 million to net income attributable to common stock or $0.03 per share) for the year 2023. Refer to the supplemental schedule, “Deferred Profits,” on page X.

d.Includes net charges totaling $176 million ($0.12 per share) in fourth-quarter 2024, $5 million (less than $0.01 per share) in fourth-quarter 2023, $257 million ($0.18 per share) for the year 2024 and $373 million ($0.26 per share) for the year 2023 that are described in the supplemental schedule, “Adjusted Net Income,” beginning on page VII.

e.Working capital and other uses totaled less than $1 million in fourth-quarter 2024, $196 million in fourth-quarter 2023, $29 million for the year 2024 and $880 million for the year 2023.

f.Includes $0.7 billion at December 31, 2024, and $1.1 billion at December 31, 2023, associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with Indonesia regulations.

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SUMMARY OPERATING DATA

Three Months Ended December 31,

Years Ended December 31,

Copper (millions of recoverable pounds)

Production

Sales, excluding purchases

Average realized price per pound

$

$

$

$

Site production and delivery costs per pounda

$

$

$

$

Unit net cash costs per pounda

$

$

$

$

Gold (thousands of recoverable ounces)

Production

Sales

Average realized price per ounce

$

$

$

$

Molybdenum (millions of recoverable pounds)

Production

Sales, excluding purchases

Average realized price per pound

$

$

$

$

a.Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit net cash costs (credits) by operating division to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV.

Consolidated Sales Volumes

•Fourth-quarter 2024 copper sales of 992 million pounds were slightly above the October 2024 estimate. Consistent with expectations, fourth-quarter 2024 copper sales were lower than fourth-quarter 2023 sales of 1.1 billion pounds, primarily reflecting lower ore grades and the timing of shipments at PT-FI.

•Fourth-quarter 2024 gold sales of 350 thousand ounces were slightly above the October 2024 estimate. Consistent with expectations, fourth-quarter 2024 gold sales were below fourth-quarter 2023 sales of 549 thousand ounces, primarily reflecting lower ore grades and the timing of shipments at PT-FI.

•Fourth-quarter 2024 molybdenum sales of 18 million pounds were lower than the October 2024 estimate of 20 million pounds and fourth-quarter 2023 sales of 22 million pounds, primarily reflecting timing of shipments.

Consolidated copper and gold production volumes for the year 2024 exceeded sales volumes for the year 2024, primarily reflecting an increase in concentrate inventory associated with the timing of approval of PT-FI’s permitted copper concentrate export quota for 2024 and inventory held at PT-FI’s new downstream processing facilities expected to be sold as refined metal in the second half of 2025.

Consolidated sales volumes for the year 2025 are expected to approximate 4.0 billion pounds of copper, 1.6 million ounces of gold and 88 million pounds of molybdenum, including 850 million pounds of copper, 225 thousand ounces of gold and 22 million pounds of molybdenum in first-quarter 2025. Projected sales volumes are dependent on operational performance; Indonesia regulatory approval to export copper concentrate until repairs and full ramp-up of PT-FI’s new smelter are complete; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below.

Consolidated Unit Net Cash Costs

Fourth-quarter 2024 consolidated average unit net cash costs (net of by-product credits) for FCX’s copper mines of $1.66 per pound of copper were lower than the October 2024 estimate of $1.72 per pound, primarily reflecting higher by-product credits. Fourth-quarter 2024 consolidated average unit net cash costs were higher than fourth-quarter 2023 average unit net cash costs of $1.52 per pound of copper, primarily reflecting lower sales volumes at PT-FI. Refer to “Operations” below for further discussion.

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G10Consolidated unit net cash costs (net of by-product credits) for FCX’s copper mines are expected to average $1.60 per pound of copper for the year 2025 (including $2.05 per pound of copper in first-quarter 2025), based on achievement of current sales volume estimates (including estimates for copper concentrate exports from Indonesia) and cost estimates and assuming average prices of $2,700 per ounce of gold and $20.00 per pound of molybdenum for the year 2025. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. The impact of price changes on consolidated unit net cash costs for the year 2025 would approximate $0.04 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.

OPERATIONS

Technology and Leaching Innovation Initiatives. FCX is progressing initiatives across its North America and South America operations by incorporating new applications, technologies and data analytics to its leaching processes. In late 2023, FCX achieved its initial incremental annual run rate target of approximately 200 million pounds of copper. Incremental copper production from these initiatives totaled 50 million pounds in fourth-quarter 2024 and 214 million pounds for the year 2024, compared with a total of 144 million pounds for the year 2023. FCX has projects underway to apply recent operational enhancements on a larger scale and is testing new innovative technology applications that have the potential for significant increases in recoverable metal beyond the current run rate.

In addition to technology-driven leaching initiatives, FCX is 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 its current operations and future development projects.

North America. FCX manages seven copper operations in North America – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. FCX also operates a copper smelter in Miami, Arizona. In addition to copper, certain of these operations produce molybdenum concentrate, gold and silver. All of the North America operations are wholly owned, except for Morenci. FCX records its 72% undivided joint venture interest in Morenci using the proportionate consolidation method.

Development Activities. FCX has substantial reserves, resources and future opportunities for organic growth in the U.S. associated with existing operations.

FCX has a potential expansion project to more than double the concentrator capacity of the Bagdad operation in northwest Arizona. Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation. In late 2023, FCX completed technical and economic studies, which indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year at estimated incremental project capital costs of approximately $3.5 billion. Expanded operations would provide improved efficiency and reduce unit net cash costs through economies of scale. Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and approximately three to four years to complete.

The decision of whether to proceed and timing of the potential expansion will take into account overall copper market conditions, availability of labor and other factors, including pending conversion of the existing haul truck fleet to autonomous to support long-range plans. In parallel, FCX is enhancing local infrastructure and advancing activities for expanded tailings infrastructure projects required under long-range plans in order to advance the potential construction timeline.

FCX has commenced pre-feasibility studies in the Safford/Lone Star district to define a potential significant expansion opportunity. Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a further expansion project. FCX expects to complete these studies by mid-2026. The decision of whether to proceed and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors.

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Operating Data. Following is summary consolidated operating data for the North America copper mines:

Three Months Ended December 31,

Years Ended

Copper (millions of recoverable pounds)

Production

Sales, excluding purchases

Average realized price per pound

$

$

$

$

Molybdenum (millions of recoverable pounds)

Productiona

8

7

Unit net cash costs per pound of copperb

Site production and delivery, excluding adjustments

$

$

$

$

By-product credits

Treatment charges

Unit net cash costs

$

$

$

$

a.Refer to summary operating data on page 3 for FCX’s consolidated molybdenum sales, which include sales of molybdenum produced at the North America copper mines.

b.For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV.

FCX’s consolidated copper sales volumes from North America were 318 million pounds in fourth-quarter 2024, approximating fourth-quarter 2023. G11North America copper sales approximated 1.26 billion pounds for the year 2024 and are estimated to approximate 1.4 billion pounds for the year 2025.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $3.04 per pound of copper in fourth-quarter 2024 were lower than third-quarter 2024 average unit net cash costs of $3.24 per pound. Compared with fourth-quarter 2023 average unit net cash costs, fourth-quarter 2024 average unit net cash costs were higher, primarily reflecting higher labor and mining costs, partly offset by higher by-product credits.

G12Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $3.00 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates and assuming an average price of $20.00 per pound of molybdenum. North America’s average unit net cash costs for the year 2025 would change by approximately $0.05 per pound for each $2 per pound change in the average price of molybdenum.

South America. FCX manages two copper operations in South America – Cerro Verde in Peru (in which FCX owns a 55.08% interest) and El Abra in Chile (in which FCX owns a 51% interest). These operations are consolidated in FCX’s financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.

Development Activities. At the El Abra operations in Chile, FCX has completed substantial drilling and evaluations to define a large sulfide resource that would support a potential major mill project similar to the large-scale concentrator at Cerro Verde. FCX is preparing data for a potential submission of an environmental impact statement by year-end 2025, subject to ongoing stakeholder engagement and economic evaluations. Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00 per pound. The decision of whether to proceed and timing of the potential project will take into account overall copper market conditions, required permitting and other factors.

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Operating Data. Following is summary consolidated operating data for South America operations:

Three Months Ended December 31,

Years Ended

Copper (millions of recoverable pounds)

Production

Sales

Average realized price per pound

$

$

$

$

Molybdenum (millions of recoverable pounds)

Productiona

5

5

Unit net cash costs per pound of copperb

Site production and delivery, excluding adjustments

$

$

$

c

$

By-product credits

Treatment charges

Royalty on metals

Unit net cash costs

$

$

$

$

a.Refer to summary operating data on page 3 for FCX’s consolidated molybdenum sales, which include sales of molybdenum produced at Cerro Verde.

b.For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV.

c.Includes $0.08 per pound of copper for nonrecurring labor-related charges at Cerro Verde associated with new multi-year collective labor agreements with its two unions. Refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII.

FCX’s consolidated copper sales volumes from South America operations of 298 million pounds in fourth-quarter 2024 were higher than fourth-quarter 2023 copper sales volumes of 287 million pounds, primarily reflecting slightly higher production and timing of shipments. G13Copper sales from South America operations were 1.2 billion pounds for the year 2024 and are expected to approximate 1.1 billion pounds for the year 2025.

Average unit net cash costs (net of by-product credits) for South America operations of $2.36 per pound of copper in fourth-quarter 2024 were lower than fourth-quarter 2023 average unit net cash costs of $2.72 per pound, primarily reflecting lower maintenance, repair and energy costs, as well as higher by-product credits.

G14Average unit net cash costs (net of by-product credits) for South America operations are expected to approximate $2.50 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates and assuming an average price of $20.00 per pound of molybdenum.

Indonesia. PT-FI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. Once the full ramp-up of the new downstream processing facilities is achieved, PT-FI will be a fully integrated producer of refined copper and gold. FCX has a 48.76% ownership interest in PT-FI and manages its operations. PT-FI’s results are consolidated in FCX’s financial statements.

Concentrate Exports. Current regulations in Indonesia prohibit exports of copper concentrate as of January 1, 2025. Pursuant to the terms of its special mining business license (IUPK) regarding force majeure events, PT-FI has requested approval from the Indonesia government to permit the export of copper concentrate in 2025 until the required repairs of its new smelter following the October 2024 fire incident (see below for further discussion) and full ramp-up are complete. Based on discussions to-date with the Indonesia government, PT-FI expects to re-commence exports of copper concentrate during first-quarter 2025, and pursuant to current regulations, would be required to pay a 7.5% export duty on copper concentrate exports during 2025.

Long-term Mining Rights. Pursuant to regulations issued during 2024, PT-FI is eligible to apply for an extension of its mining rights beyond 2041, provided certain conditions are met, including ownership of integrated downstream facilities that have entered the operational stage; domestic ownership of at least 51% and agreement

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with a state-owned enterprise for an additional 10% ownership; and commitments for additional exploration and increases in refining capacity, each as approved by the Ministry of Energy and Minerals. Application for extension may be submitted at any time up to one year prior to the expiration of PT-FI’s IUPK. PT-FI expects to apply for an extension during 2025, pending agreement with PT Mineral Industri Indonesia (MIND ID) on a purchase and sale agreement for the transfer in 2041 of an additional 10% interest in PT-FI.

An extension would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly attractive Grasberg minerals district.

Operating and Development Activities. Over a multi-year investment period, PT-FI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone and Big Gossan) and completed an expansion of the milling facilities. In December 2024, PT-FI completed construction of a new copper cleaner circuit, a mill recovery project that will enhance recoveries and optimize concentrate production, with commissioning under way.

Kucing Liar. Long-term mine development activities are ongoing for PT-FI’s Kucing Liar deposit in the Grasberg minerals district. Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PT-FI’s operating rights beyond 2041 would extend the life of the project. Development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe. Capital investments for Kucing Liar are estimated to total $4 billion over the next seven to eight years (averaging approximately $0.5 billion per annum). Approximately $0.6 billion has been incurred to date. At full operating rates, annual production from Kucing Liar is expected to approximate 560 million pounds of copper and 520 thousand ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production. Kucing Liar will benefit from substantial shared infrastructure and PT-FI’s experience and long-term success in block-cave mining.

Natural Gas Facilities. PT-FI plans to transition its existing energy source from coal to natural gas, which would meaningfully reduce PT-FI’s Scope 1 greenhouse gas emissions at the Grasberg minerals district. The majority of PT-FI’s planned investments in a new gas-fired combined cycle facility are expected to be incurred over the next three years, at a cost of approximately $1 billion, which represents an incremental cost of $0.4 billion compared to previously planned investments to refurbish the existing coal units. Once complete, PT-FI’s dual-fuel power plant and the new gas-fired combined cycle facility will be fueled by natural gas, supplied by a floating liquefied natural gas storage and regassification unit.

Downstream Processing Facilities.

New Smelter. Construction of the new greenfield smelter in Eastern Java, Indonesia was substantially completed during 2024. During start-up activities, a fire occurred in October 2024, requiring a temporary suspension of smelting operations to complete repairs. Procurement of long-lead items has advanced and repairs are scheduled to be completed by mid-2025. PT-FI expects restoration, repair and replacement costs to approximate $100 million, which are expected to be mostly offset through recovery under construction insurance programs. PT-FI expects to achieve full ramp-up by year-end 2025. Following the full ramp-up, PT-FI’s mining and smelting operations will be fully integrated.

PMR. As part of start-up activities, PT-FI commenced gold production at its new PMR in late 2024. The facility has capacity to refine all precious metals from PT-FI’s new smelter as well as from PT Smelting, PT-FI’s 66%-owned smelter and refinery in Gresik, Indonesia.

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Operating Data. Following is summary consolidated operating data for Indonesia operations:

Three Months Ended December 31,

Years Ended

Copper (millions of recoverable pounds)

Production

Sales

Average realized price per pound

$

$

$

$

Gold (thousands of recoverable ounces)

Production

Sales

Average realized price per ounce

$

$

$

$

Unit net cash (credits) costs per pound of coppera

Site production and delivery, excluding adjustments

$

$

$

$

Gold, silver and other by-product credits

Treatment charges

Export duties

Royalty on metals

Unit net cash (credits) costs

$

$

—

$

$

a.For a reconciliation of unit net cash (credits) costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV.

PT-FI’s consolidated copper sales volumes of 376 million pounds and consolidated gold sales volumes of 343 thousand ounces in fourth-quarter 2024 were below fourth-quarter 2023 copper sales volumes of 511 million pounds and gold sales volumes of 544 thousand ounces, primarily reflecting lower ore grades and timing of shipments. PT-FI’s consolidated copper and gold production volumes for the year 2024 exceeded 2024 sales volumes, primarily reflecting an increase in concentrate inventory associated with the timing of approval of its permitted copper concentrate export quota for 2024 and inventory held at PT-FI’s new downstream processing facilities expected to be sold as refined metal in the second half of 2025.

G15G16Consolidated sales volumes from PT-FI are expected to approximate 1.55 billion pounds of copper and 1.6 million ounces of gold for the year 2025. PT-FI’s projected sales volumes in 2025 reflect reduced operating rates associated with two planned major maintenance projects in its concentrating facilities. Projected sales volumes are dependent on operational performance; Indonesia regulatory approval to export copper concentrate until repairs and full ramp-up of PT-FI’s new smelter are complete; weather-related conditions; and other factors detailed in the “Cautionary Statement” below.

PT-FI’s unit net cash credits (including gold, silver and other by-product credits) of $0.08 per pound of copper in fourth-quarter 2024 were favorable compared to unit net cash costs (net of gold, silver and other by-product credits) of less than $0.01 per pound of copper in fourth-quarter 2023, primarily reflecting higher gold credits, partly offset by lower copper volumes.

G17Average unit net cash credits (including gold, silver and other by-product credits) for PT-FI are expected to approximate $0.27 per pound of copper for the year 2025, based on achievement of current sales volumes (including estimates for copper concentrate exports) and cost estimates and assuming an average price of $2,700 per ounce of gold. PT-FI’s average unit net cash credits for the year 2025 would change by approximately $0.09 per pound of copper for each $100 per ounce change in the average price of gold.

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Molybdenum. FCX operates two wholly owned primary molybdenum operations in Colorado – the Climax open-pit mine and the Henderson underground mine. The Climax and Henderson mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the Climax and Henderson mines and at FCX’s North America copper mines and South America operations is processed at FCX’s conversion facilities.

Operating and Development Activities. Production from the primary molybdenum operations totaled 9 million pounds of molybdenum in fourth-quarter 2024 and 8 million pounds in fourth-quarter 2023. FCX’s consolidated molybdenum sales and average realized prices include sales of molybdenum produced at the primary molybdenum operations and at FCX’s North America copper mines and South America operations, which are presented on page 3.

Average unit net cash costs for the primary molybdenum operations of $16.18 per pound of molybdenum in fourth-quarter 2024 were higher than average unit net cash costs of $14.83 per pound in fourth-quarter 2023, primarily reflecting contract labor transition costs, partially offset by higher volumes. G18Average unit net cash costs for the primary molybdenum operations are expected to approximate $15.20 per pound of molybdenum for the year 2025, based on achievement of current sales volumes and cost estimates.

For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV.

PRELIMINARY ESTIMATED RECOVERABLE PROVEN AND PROBABLE MINERAL RESERVES AND MINERAL RESOURCES

FCX has significant mineral reserves, mineral resources and future development opportunities within its portfolio of mining assets. FCX’s preliminary estimated consolidated recoverable proven and probable mineral reserves from its mines at December 31, 2024, include 97.0 billion pounds of copper, 23.0 million ounces of gold and 3.16 billion pounds of molybdenum, which were determined using metal price assumptions of $3.25 per pound for copper, $1,600 per ounce for gold and $12.00 per pound for molybdenum. The preliminary estimated recoverable proven and probable mineral reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable mineral reserve volumes are those which FCX estimates can be economically extracted or produced at the time of the mineral reserve determination.

Preliminary Estimated Recoverable Proven and Probable Mineral Reserves

Copper

Gold

Molybdenum

(billion pounds)

(million ounces)

(billion pounds)

North America

South Americaa

—

Indonesiab

—

Consolidated basisc,d

Net equity intereste

a.Excludes the El Abra mill project discussed on page 5 (estimated potential addition of approximately 20 billion recoverable pounds of copper in concentrate and cathode).

b.Reserves are included through the life of the IUPK in 2041. An extension of operating rights would provide additional mineral reserves.

c.Consolidated mineral reserves represent estimated metal quantities after reduction for FCX’s joint venture partners’ interest at the Morenci mine in North America. Excluded from the table above are FCX’s estimated recoverable proven and probable silver reserves of 318 million ounces, which were determined using $20 per ounce.

d.May not foot because of rounding.

e.Net equity interest mineral reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above are FCX’s estimated net recoverable proven and probable silver reserves of 213 million ounces.

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Following is a summary of changes in FCX’s preliminary estimated consolidated recoverable proven and probable mineral reserves during 2024:

Copper

Gold

Molybdenum

(billion pounds)

(million ounces)

(billion pounds)

Net revisions

a

Production

a.Revisions are primarily the result of higher cost assumptions and updated geologic models.

b.May not foot because of rounding.

In addition to the preliminary estimated consolidated recoverable proven and probable mineral reserves, FCX’s preliminary estimated consolidated mineral resources (including measured, indicated and inferred resources) at December 31, 2024, which were assessed using $3.75 per pound for copper, totaled 193 billion pounds of incremental contained copper. FCX continues to pursue opportunities to convert this material into mineral reserves, future production volumes and cash flow. See “Cautionary Statement” below.

LIQUIDITY, CASH FLOWS, CASH AND DEBT

Liquidity. At December 31, 2024, FCX had $3.9 billion in consolidated cash and cash equivalents, $4.7 billion including $0.7 billion of current restricted cash associated with PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks. In addition, FCX has $3.0 billion of availability under its revolving credit facility, and PT-FI and Cerro Verde have $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.

Operating Cash Flows. FCX generated operating cash flows of $1.4 billion in fourth-quarter 2024 and $7.2 billion for the year 2024.

FCX’s consolidated operating cash flows are estimated to approximate $6.2 billion for the year 2025, based on current sales volume and cost estimates, and assuming average prices of $4.00 per pound of copper, $2,700 per ounce of gold and $20.00 per pound of molybdenum. The impact of price changes on operating cash flows for the year 2025 would approximate $375 million for each $0.10 per pound change in the average price of copper, $140 million for each $100 per ounce change in the average price of gold and $135 million for each $2 per pound change in the average price of molybdenum.

Capital Expenditures. Capital expenditures totaled $1.2 billion, including $0.6 billion for major mining projects and $0.2 billion for PT-FI’s new downstream processing facilities, in fourth-quarter 2024. For the year 2024, capital expenditures were $4.8 billion, including $2.1 billion for major mining projects and $1.17 billion for PT-FI’s new downstream processing facilities.

Capital expenditures are expected to approximate $5.0 billion for the year 2025, including $2.8 billion for major mining projects and $0.6 billion for PT-FI’s new downstream processing facilities (excluding capitalized interest, owner’s costs and commissioning). Projected capital expenditures for major mining projects include $1.1 billion for planned projects, primarily associated with underground mine development in the Grasberg minerals district and expansion projects in North America, and $1.7 billion for discretionary growth projects.

Cash. Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share and withholding taxes, at December 31, 2024 (in billions):

Cash at domestic companies

$

Cash at international operations

a

Total consolidated cash and cash equivalents

Noncontrolling interests’ share

Cash, net of noncontrolling interests’ share

Withholding taxes

Net cash available

$

a.Excludes $0.7 billion of current restricted cash associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the Indonesia government.

Debt. Following is a summary of total debt and the weighted-average interest rates at December 31, 2024 (in billions, except percentages):

Weighted-

Average

Interest Rate

Senior notes:

Issued by FCX

$

Issued by PT-FI

Issued by Freeport Minerals Corporation

PT-FI revolving credit facility

Other

—

a

Total debt

$

a.Amount not shown because of rounding.

At December 31, 2024, there were (i) no borrowings and $7 million in letters of credit issued under FCX’s $3.0 billion revolving credit facility, (ii) $250 million in borrowings outstanding under PT-FI’s $1.75 billion revolving credit facility, and (iii) no borrowings outstanding under Cerro Verde’s $350 million revolving credit facility. In November 2024, FCX repaid $0.7 billion in scheduled senior note maturities using cash on hand and has no further senior note maturities until 2027. FCX’s total debt has an average remaining duration of approximately 10 years.

FINANCIAL POLICY

FCX’s financial policy is aligned with its strategic objectives of maintaining a solid balance sheet, providing cash returns to shareholders and advancing opportunities for future growth. The policy includes a base dividend and a performance-based payout framework, whereby up to 50% of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to FCX maintaining its net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding debt for PT-FI’s new downstream processing facilities). FCX’s Board of Directors (Board) reviews the structure of the performance-based payout framework at least annually.

Net Debt. At December 31, 2024, FCX’s net debt, excluding $3.2 billion of debt for PT-FI’s new downstream processing facilities, totaled $1.06 billion (which was net of $0.7 billion of current restricted cash associated with PT-FI’s export proceeds). Refer to the supplemental schedule, “Net Debt,” on page IX.

Common Stock Dividends. On December 18, 2024, FCX’s Board declared cash dividends totaling $0.15 per share on its 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 will be paid on February 3, 2025, to shareholders of record as of January 15, 2025. The declaration and payment of dividends (base or variable) are at the discretion of the Board and will depend on FCX’s financial results, cash requirements, global economic conditions and other factors deemed relevant by the Board.

Share Repurchase Program. As of January 22, 2025, FCX has 1.4 billion shares of common stock outstanding and $3.1 billion is available under its share repurchase program. The timing and amount of share repurchases is at the discretion of management and will depend on a variety of factors. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX’s fourth-quarter 2024 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing fcx.com. A replay of the webcast will be available through Friday, February 14, 2025.

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FREEPORT: Foremost in Copper

FCX is a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the world’s largest publicly traded copper producers.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries. Additional information about FCX is available on FCX’s website at fcx.com.

Cautionary Statement: This press release contains forward-looking statements in which FCX discusses its potential future performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to business outlook, strategy, goals or targets; global market conditions; ore grades and milling rates; production and sales volumes; unit net cash costs (credits) and operating costs; capital expenditures; operating plans (including mine sequencing); cash flows; liquidity; PT-FI’s commissioning, remediation and ramp up of its new smelter and full production at the PMR; potential extension of PT-FI’s IUPK beyond 2041; export licenses, export duties and export volumes, including PT-FI’s ability to continue exports of copper concentrate until full ramp-up is achieved at its new smelter in Indonesia; timing of shipments of inventoried production; FCX’s commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of its operating sites under specific frameworks; execution of FCX’s energy and climate strategies and the underlying assumptions and estimated impacts on FCX’s business and stakeholders related thereto; achievement of 2030 climate targets and 2050 net zero aspiration; improvements in operating procedures and technology innovations and applications; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; tax rates; the impact of copper, gold and molybdenum price changes; the impact of deferred intercompany profits on earnings; mineral reserve and mineral resource estimates; final resolution of settlements associated with ongoing legal and environmental proceedings; debt repurchases; and the ongoing implementation of FCX’s financial policy and future returns to shareholders, including dividend payments (base or variable) and share repurchases.

The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “could,” “to be,” “potential,” “assumptions,” “guidance,” “aspirations,” “future,” “commitments,” “pursues,” “initiatives,” “objectives,” “opportunities,” “strategy” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration and payment of dividends (base or variable), and timing and amount of any share repurchases are at the discretion of the Board and management, respectively, and are subject to a number of factors, including not exceeding FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by the Board or management, as applicable. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause FCX’s actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities FCX produces, primarily copper and gold; PT-FI’s ability to export and sell or inventory copper concentrates through remediation and full ramp-up of its new smelter in Indonesia; changes in export duties; completion of remediation activities and achieving full ramp-up of the new smelter in Indonesia; full production at the PMR; production rates; timing of shipments; price and availability of consumables and components FCX purchases as well as constraints on supply and logistics, and transportation services; changes in cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions; reductions in liquidity and access to capital; changes in tax laws and regulations; political and social risks, including the potential effects of violence in Indonesia, civil unrest in Peru, and relations with local communities and Indigenous Peoples; operational risks inherent in mining, with higher inherent risks in underground mining; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations, including the ability to smelt and refine or inventory; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PT-FI’s IUPK to extend mining rights from 2031 through 2041; process relating to the extension of PT-FI’s IUPK beyond 2041; cybersecurity risks; any major public health crisis; labor relations, including labor-related work stoppages and increased costs; compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks, including availability of secure water supplies; litigation results; tailings management; FCX’s ability to comply with its responsible production commitments under specific frameworks; and any changes to such frameworks and other factors described in more detail

under the heading “Risk Factors” in FCX’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission.

Investors are cautioned that many of the assumptions upon which FCX’s forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs or technological solutions and innovations, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX undertakes no obligation to update any forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes.

Estimates of mineral reserves and mineral resources are subject to considerable uncertainty. Such estimates are, to a large extent, based on metal prices for the commodities we produce and interpretations of geologic data, which may not necessarily be indicative of future results or quantities ultimately recovered. This press release also includes forward-looking statements regarding mineral resources not included in proven and probable mineral reserves. A mineral resource, which includes measured, indicated and inferred mineral resources, is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. Such a deposit cannot qualify as recoverable proven and probable mineral reserves until legal and economic feasibility are confirmed based upon a comprehensive evaluation of development and operating costs, grades, recoveries and other material modifying factors. Accordingly, no assurance can be given that the estimated mineral resources will become proven and probable mineral reserves.

This press release also contains measures such as net debt, adjusted net income and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S. generally accepted accounting principles (GAAP). Reconciliations of these non-GAAP measures to amounts reported in FCX’s consolidated financial statements are in the supplemental schedules of this press release. For forward-looking unit net cash costs (credits) per pound of copper and molybdenum measures, FCX is unable to provide a reconciliation to the most comparable GAAP measure without unreasonable effort because estimating such GAAP measures and providing a meaningful reconciliation is extremely difficult and requires a level of precision that is unavailable for these future periods and the information needed to reconcile these measures is dependent upon future events, many of which are outside of FCX’s control as described above. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.

FREEPORT

SELECTED OPERATING DATA

Three Months Ended December 31,

Production

Sales

COPPER (millions of recoverable pounds)

(FCX’s net interest in %)

North America

Morenci (72%)a

2

3

2

3

—

—

(2)

(1)

Total North America

South America

Total South America

Indonesia

Grasberg minerals district (48.76%)

Total

c

c

Less noncontrolling interests

Net

Average realized price per pound

$

$

GOLD (thousands of recoverable ounces)

(FCX’s net interest in %)

North America (100%)

4

4

7

5

Consolidated

Less noncontrolling interests

Net

Average realized price per ounce

$

$

MOLYBDENUM (millions of recoverable pounds)

(FCX’s net interest in %)

6

5

N/A

N/A

3

3

N/A

N/A

North America copper mines (100%)a

8

7

N/A

N/A

5

5

N/A

N/A

Consolidated

Less noncontrolling interests

2

2

2

3

Net

Average realized price per pound

$

$

a. Amounts are net of Morenci’s joint venture partners’ undivided interests.

b. FCX’s interest in Cerro Verde is 55.08%, and prior to September 2024 it was 53.56%.

c. Consolidated sales volumes exclude purchased copper of 16 million pounds in fourth-quarter 2024 and 18 million pounds in fourth-quarter 2023.

I

FREEPORT

SELECTED OPERATING DATA (continued)

Years Ended December 31,

Production

Sales

COPPER (millions of recoverable pounds)

(FCX’s net interest in %)

North America

Morenci (72%)a

9

(4)

(5)

(6)

(6)

Total North America

South America

Total South America

Indonesia

Grasberg minerals district (48.76%)

Total

c

c

Less noncontrolling interests

Net

Average realized price per pound

$

$

GOLD (thousands of recoverable ounces)

(FCX’s net interest in %)

North America (100%)

d

d

Consolidated

Less noncontrolling interests

Net

Average realized price per ounce

$

$

MOLYBDENUM (millions of recoverable pounds)

(FCX’s net interest in %)

N/A

N/A

N/A

N/A

North America copper mines (100%)a

N/A

N/A

N/A

N/A

Consolidated

Less noncontrolling interests

9

9

Net

Average realized price per pound

$

$

a. Amounts are net of Morenci’s joint venture partners’ undivided interests.

b. FCX’s interest in Cerro Verde is 55.08%, and prior to September 2024 it was 53.56%.

c. Consolidated sales volumes exclude purchased copper of 158 million pounds for the year 2024 and 103 million pounds for the year 2023.

d. Includes approximately 190 thousand ounces of gold production and sales volumes attributed to PT Mineral Industri Indonesia’s (MIND ID) approximate 19% economic interest in accordance with the PT Freeport Indonesia (PT-FI) shareholder agreement.

II

FREEPORT

SELECTED OPERATING DATA (continued)

Three Months Ended December 31,

Years Ended December 31,

North Americaa

Leach Operations

Leach ore placed in stockpiles (metric tons per day)

Average copper ore grade (%)

Copper production (millions of recoverable pounds)

Mill Operations

Ore milled (metric tons per day)

Average ore grades (%):

Copper

Molybdenum

Copper recovery rate (%)

Production (millions of recoverable pounds):

Copper

Molybdenum

8

7

South America

Leach Operations

Leach ore placed in stockpiles (metric tons per day)

Average copper ore grade (%)

Copper production (millions of recoverable pounds)

Mill Operations

Ore milled (metric tons per day)

Average ore grades (%):

Copper

Molybdenum

Copper recovery rate (%)

Production (millions of recoverable pounds):

Copper

Molybdenum

5

5

Indonesia

Ore extracted and milled (metric tons per day):

Grasberg Block Cave underground mine

Deep Mill Level Zone underground mine

Big Gossan underground mine

Other adjustments

Total

Average ore grades:

Copper (%)

Gold (grams per metric ton)

Recovery rates (%):

Copper

Gold

Production (recoverable):

Copper (millions of pounds)

Gold (thousands of ounces)

Molybdenumb

Ore milled (metric tons per day)

Average molybdenum ore grade (%)

Molybdenum production (millions of recoverable pounds)

9

8

a.Amounts represent 100% operating data, including Morenci’s joint venture partners’ share.

b. Represents FCX’s primary molybdenum operations in Colorado.

III

FREEPORT

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended

Years Ended

(In Millions, Except Per Share Amounts)

Revenuesa

$

$

$

$

Cost of sales:

Production and deliveryb

Depreciation, depletion and amortization

Total cost of sales

Selling, general and administrative expenses

Exploration and research expenses

Environmental obligations and shutdown costs

Total costs and expenses

Operating income

Interest expense, netc

Net gain on early extinguishment of debt

—

—

—

Other income, net

Income before income taxes and equity in affiliated companies’ net earnings

Provision for income taxesd

Equity in affiliated companies’ net earnings

1

3

Net income

Net income attributable to noncontrolling interestse

Net income attributable to common stockholdersf,g

$

$

$

$

Diluted net income per share attributable to common stock

$

$

$

$

Diluted weighted-average common shares outstanding

Dividends declared per share of common stock

$

$

$

$

a.Includes adjustments to provisionally priced concentrate and cathode sales. For a summary of adjustments to provisionally priced copper sales, refer to the supplemental schedule, “Derivative Instruments,” beginning on page IX.

b.FCX is engaged in various studies associated with potential future expansion projects primarily at its mining operations. Production and delivery costs include charges for these feasibility and optimization studies totaling $38 million in fourth-quarter 2024, $46 million in fourth-quarter 2023, $155 million for the year 2024 and $185 million for the year 2023. Additionally, production and delivery costs include charges for operational readiness and startup costs associated with PT-FI’s new smelter and precious metals refinery (PMR) (collectively, PT-FI’s new downstream processing facilities) totaling $59 million in fourth-quarter 2024, $7 million in fourth-quarter 2023, $133 million for the year 2024 and $18 million for the year 2023.

c.Consolidated interest costs (before capitalization) totaled $181 million in fourth-quarter 2024, $177 million in fourth-quarter 2023, $710 million for the year 2024 and $782 million for the year 2023. Consolidated interest costs for the year 2023 included $74 million of interest charges associated with contested tax rulings issued by the Peruvian Supreme Court and a $13 million credit for the settlement of interest on Cerro Verde’s historical profit sharing liability.

d.For a summary of FCX’s income taxes, refer to the supplemental schedule, “Income Taxes,” beginning on page VIII.

e.Net income attributable to noncontrolling interests is primarily associated with PT-FI, Cerro Verde and El Abra. For further discussion, refer to the supplemental schedule, “Noncontrolling Interests,” beginning on page X.

f.FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, “Deferred Profits,” on page X.

g.Refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII, for a summary of net (charges) credits impacting FCX’s consolidated statements of income.

IV

FREEPORT

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In Millions)

ASSETS

Current assets:

Cash and cash equivalents

$

$

Restricted cash and cash equivalentsa

Trade accounts receivable

Value added and other tax receivables

Inventories:

Product

Materials and supplies, net

Mill and leach stockpiles

Other current assets

Total current assets

Property, plant, equipment and mine development costs, net

Long-term mill and leach stockpiles

Other assets

Total assets

$

$

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

$

Accrued income taxes

Current portion of environmental and asset retirement obligations (AROs)

Dividends payable

Current portion of debt

Total current liabilities

Long-term debt, less current portion

Environmental and AROs, less current portion

Deferred income taxes

Other liabilities

Total liabilities

Equity:

Stockholders’ equity:

Common stock

Capital in excess of par value

Accumulated deficit

Accumulated other comprehensive loss

Common stock held in treasury

Total stockholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

$

$

a.Includes $0.7 billion at December 31, 2024, and $1.1 billion at December 31, 2023, associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the Indonesia government.

V

FREEPORT

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Years Ended

(In Millions)

Cash flow from operating activities:

Net income

$

$

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization

Net charges for environmental and AROs, including accretion

Payments for environmental and AROs

Stock-based compensation

Charge for talc-related litigation

—

Net charges for defined pension and postretirement plans

Pension plan contributions

Net gain on early extinguishment of debt

—

Deferred income taxes

Change in deferred profit on PT-FI’s sales to PT Smeltinga

—

Charges for social investment programs at PT-FI

Payments for social investment programs at PT-FI

Impairment of oil and gas properties

Other, net

Changes in working capital and other:

Accounts receivable

Inventories

Other current assets

Accounts payable and accrued liabilities

Accrued income taxes and timing of other tax payments

Net cash provided by operating activities

Cash flow from investing activities:

Capital expenditures:

North America copper mines

South America operations

Indonesia operations

Molybdenum mines

Other

Proceeds from sales of assets

Acquisition of additional ownership interest in Cerro Verde

—

Loans to PT Smelting for expansion

Other, net

(1)

Net cash used in investing activities

Cash flow from financing activities:

Proceeds from debt

Repayments of debt

Finance lease payments

(3)

Cash dividends and distributions paid:

Common stock

Noncontrolling interests

Treasury stock purchases

—

Contributions from noncontrolling interests

—

Proceeds from exercised stock options

Payments for withholding of employee taxes related to stock-based awards

Debt financing costs

—

(7)

Net cash used in financing activities

Net decrease in cash, cash equivalents and restricted cash and cash equivalents

Cash, cash equivalents and restricted cash and cash equivalents at beginning of year

Cash, cash equivalents and restricted cash and cash equivalents at end of yearb

$

$

a.As a result of PT-FI’s commercial arrangement with PT Smelting changing from a concentrate sales agreement to a tolling arrangement in January 2023, there are no further sales to PT Smelting.

b.Includes current and long-term restricted cash and cash equivalents of $1.0 billion at December 31, 2024, and $1.3 billion at December 31, 2023.

VI

FREEPORT

ADJUSTED NET INCOME

Management uses adjusted net income to evaluate FCX’s operating performance and believes that investors’ understanding of FCX’s performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. This information differs from net income attributable to common stock determined in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. FCX’s adjusted net income, which may not be comparable to similarly titled measures reported by other companies, follows (in millions, except per share amounts).

Three Months Ended December 31,

Pre-tax

After-taxa

Per Share

Pre-tax

After-taxa

Per Share

Net income attributable to common stock

N/A

$

$

N/A

$

$

PT-FI net (charges) credits

$

b

$

$

$

c

$

$

Oil and gas net chargesd

Inventory adjustments

(6)

(6)

—

PT-FI smelter fire costs, net of insurancee

(3)

(1)

—

—

—

—

Cerro Verde new collective labor agreements (CLAs)

2

1

—

—

—

—

Net adjustments to environmental obligations and related litigation reserves

1

1

—

PT-FI historical tax matters

—

—

—

7

5

—

Other net (charges) credits

f

g

Net tax credits

N/A

—

—

N/A

Total net (charges) creditsk

$

$

$

$

$

(5)

$

—

Adjusted net income attributable to common stock

N/A

$

$

N/A

$

$

Years Ended December 31,

Pre-tax

After-taxa

Per Share

Pre-tax

After-taxa

Per Share

Net income attributable to common stock

N/A

$

$

N/A

$

$

PT-FI net (charges) credits

$

b

$

$

$

c

$

$

Oil and gas net chargesd

Inventory adjustments

PT-FI smelter fire costs, net of insurancee

(3)

(1)

—

—

—

—

Cerro Verde new CLAs

—

—

—

Net adjustments to environmental obligations and related litigation reserves

PT-FI historical tax mattersh

2

1

—

U.S. income tax examsi

—

—

—

Cerro Verde historical tax mattersj

—

—

—

Net gain on early extinguishment of debt

—

—

—

Other net (charges) credits

f

(9)

7

g

5

—

Net tax credits

N/A

—

—

N/A

Total net chargesk

$

$

$

$

$

$

Adjusted net income attributable to common stock

N/A

$

$

N/A

$

$

a.Reflects impact to FCX’s net income attributable to common stock (i.e., net of any taxes and noncontrolling interests).

b.The fourth quarter and year 2024 include charges recorded to production and delivery mostly associated with adjustments to PT-FI’s ARO. The year 2024 also includes $34 million in charges recorded to production and delivery that were capitalized in prior years associated with construction of PT-FI’s new downstream processing facilities.

c.The fourth quarter and year 2023 primarily reflect credits recorded to production and delivery to adjust PT-FI’s historical ARO model. The year 2023 also includes credits (charges) associated with the release of export duty exposure for prior years and an administrative fine, which were recorded to revenues ($17 million) and production and delivery ($(55) million), respectively.

d.Primarily reflects charges recorded to production and delivery associated with impairments and adjustments to abandonment obligations, including assumed oil and gas abandonment obligations resulting from bankruptcies of other companies.

e.Includes charges recorded to production and delivery for damaged assets and initial investigation and repair costs totaling $43 million, mostly offset by insurance recovery credits of $40 million.

VII

FREEPORT

ADJUSTED NET INCOME (continued)

f.Other net charges for the 2024 periods primarily reflect amounts recorded to production and delivery associated with mining ARO adjustments and asset impairments.

g.Other net credits for the 2023 periods primarily reflect $14 million recorded to production and delivery costs for mining ARO adjustments and $10 million recorded to other income, net for an international tax refund. The year 2023 also reflects $13 million of credits recorded to interest expense, net for the settlement of interest on Cerro Verde’s historical profit-sharing liability and $30 million of charges recorded to production and delivery associated with mining asset impairments and contract cancellation costs.

h.The year 2024 includes net credits associated with closure of PT-FI’s 2021 corporate income tax audit and resolution of a framework for disputed tax matters, which were recorded as a benefit to income taxes ($182 million), production and delivery ($8 million) and interest expense, net ($8 million). In addition, FCX recognized a credit of $26 million in other income, net associated with the reduction in the related accrual to indemnify MIND ID from potential losses arising from historical tax disputes. In accordance with PT-FI's Shareholder Agreement, settlements of historical tax matters that originated before December 31, 2022, should be attributed based on the economics from the Initial Period (i.e., approximately 81% to FCX and 19% to MIND ID). Accordingly, the noncontrolling interest portion of these credits totaled $43 million.

i.The year 2024 reflects the release of tax reserves ($36 million) and related interest expense ($11 million) associated with closure of FCX's 2017 and 2018 U.S. federal income tax exams.

j.The year 2023 reflects charges (credits) associated with contested tax rulings by the Peruvian Supreme Court recorded to interest expense, net ($74 million), other income, net ($69 million) and production and delivery ($(1) million).

k.May not foot because of rounding.

INCOME TAXES

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

Three Months Ended December 31,

Income Tax

Income Tax

Income

Effective

(Provision)

Income

Effective

(Provision)

(Loss)a

Tax Rate

Benefit

(Loss)a

Tax Rate

Benefit

U.S.b

$

4%

$

6

$

—%

c

$

(2)

South America

Indonesia

Eliminations and other

N/A

(2)

N/A

Rate adjustmentd

—

N/A

—

N/A

Continuing operations

$

$

$

$

Years Ended December 31,

Income Tax

Income Tax

Income

Effective

(Provision)

Income

Effective

(Provision)

(Loss)a

Tax Rate

Benefit

(Loss)a

Tax Rate

Benefit

U.S.b

$

e

7%

$

e

$

—%

c

$

1

South America

Indonesia

Cerro Verde historical tax matters

—

N/A

—

f