Item 1A. “Risk Factors” contained in Part I of our 2021 Form 10-K, “Cautionary Statement” below and discussion of our financial policy above.

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Item 1A. “Risk Factors” contained in Part I of our 2021 Form 10-K, “Cautionary Statement” below and discussion of our financial policy above.

Cash Dividends and Distributions Paid to Noncontrolling Interests. Cash dividends and distributions paid to noncontrolling interests at our international operations totaled $625 million for the first nine months of 2022 and $187 million for the first nine months of 2021. Based on the estimates discussed in “Outlook,” we currently expect cash dividends and distributions paid to noncontrolling interests to approximate $0.8 billion for the year 2022. Cash dividends and distributions to noncontrolling interests vary based on the operating results and cash requirements of our consolidated subsidiaries.

Treasury Stock Purchases. In July 2022, the Board authorized an increase in the share repurchase program to up to $5.0 billion. No shares have been purchased since July 11, 2022. We have acquired 47.9 million shares of our common stock for a total cost of $1.8 billion ($38.35 average cost per share), including 35.1 million million shares for a total cost of $1.3 billion ($38.36 average cost per share) during the first nine month of 2022. As of November 4, 2022, $3.2 billion remains available under the 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. Refer to Item 1A. “Risk Factors” contained in Part I of our 2021 Form 10-K, “Cautionary Statement” below and discussion of our financial policy above.

Contributions from Noncontrolling Interests. We received equity contributions totaling $142 million for the first nine months of 2022 and $135 million for the first nine months of 2021 from PT Inalum for their share of capital spending on underground mine development projects in the Grasberg minerals district.

Stock-based awards. Proceeds from exercised stock options totaled $106 million for the first nine months of 2022 and $189 million for the first nine months of 2021, and payments for related employee taxes totaled $55 million for the first nine months of 2022 and $19 million for the first nine months of 2021. See Note 10 in our 2021 Form 10-K for a discussion of stock-based awards.

CONTRACTUAL OBLIGATIONS

Other than the debt transactions discussed above and in Note 5, there have been no other material changes in our contractual obligations since December 31, 2021. Refer to Note 13 and Part II, Items 7. and 7A. in our 2021 Form 10-K for information regarding our contractual obligations.

CONTINGENCIES

Environmental Liabilities and AROs

Our current and historical operating activities are subject to stringent laws and regulations governing the protection of the environment. We perform a comprehensive annual review of our environmental liabilities and AROs and also review changes in facts and circumstances associated with these obligations at least quarterly.

Refer to Note 8 for further discussion of increases in our AROs at the Morenci and Bagdad mines. There have been no other significant changes to our environmental liabilities and AROs since December 31, 2021. Updated cost assumptions, including increases and decreases to cost estimates, changes in the anticipated scope and timing of remediation activities, and settlement of environmental matters may result in additional revisions to certain of our environmental liabilities and AROs. Refer to Note 12 in our 2021 Form 10-K, for further information regarding our environmental liabilities and AROs.

Litigation and Other Contingencies

There have been no material changes to our contingencies associated with legal proceedings, environmental and other matters since December 31, 2021. Refer to Note 12 and “Legal Proceedings” contained in Part I, Item 3. of our 2021 Form 10-K, as updated by Note 8, for further information regarding AROs, legal proceedings, environmental and other matters.

NEW ACCOUNTING STANDARDS

There were no significant updates to previously reported accounting standards included in Note 1 of our 2021 Form 10-K.

NET DEBT

Net debt, which we define as consolidated debt less consolidated cash and cash equivalents, is intended to provide investors with information related to the performance-based payout framework in our financial policy, which requires achievement of a net debt target in the range of $3 billion to $4 billion (excluding project debt for additional smelting capacity in Indonesia). This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. Our net debt follows, which may not be comparable to similarly titled measures reported by other companies (in billions):


	As of September 30, 2022		As of December 31, 2021
Current portion of debt	$	1.0	$	0.4
Long-term debt, less current portion	9.7		9.1
Consolidated debt	10.7		9.5
Less: consolidated cash and cash equivalents	8.6		8.1
FCX net debt	2.1		1.4
Less: net debt for Indonesia smelter projectsa	0.8		0.2
FCX net debt, excluding Indonesia smelter projects	$	1.3	$	1.2

a.Includes consolidated debt of $3.0 billion and consolidated cash and cash equivalents of $2.2 billion as of September 30, 2022, and consolidated debt of $0.4 billion and consolidated cash and cash equivalents of $0.2 billion as of December 31, 2021.

PRODUCT REVENUES AND PRODUCTION COSTS

Unit net cash costs per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although our measures may not be comparable to similarly titled measures reported by other companies.

We present gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. We use the by-product method in our presentation of gross profit per pound of copper because (i) the majority of our revenues are copper revenues, (ii) we mine ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of our costs to revenues from the copper, gold, molybdenum and other metals we produce and (iv) it is the method used by our management and Board to monitor our mining operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change.

We show revenue adjustments for prior period open sales as a separate line item. Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period sales. Noncash and other costs (credits), net, which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as stock-based compensation costs, long-lived asset impairments, idle facility costs, restructuring and/or unusual charges (credits). As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements.

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







Three Months Ended September 30, 2022
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,293		$	1,293	$	111	$	38	$	1,442
Site production and delivery, before net noncash and other costs shown below	1,000			908		104		31		1,043
By-product credits	(106)			—		—		—		—
Treatment charges	35			33		—		2		35
Net cash costs	929			941		104		33		1,078
DD&A	99			91		6		2		99
Metals inventory adjustments	3			3		—		—		3
Noncash and other costs, net	38		c	33		4		1		38
Total costs	1,069			1,068		114		36		1,218
Other revenue adjustments, primarily for pricing on prior period open sales	(20)			(20)		—		—		(20)
Gross profit (loss)	$	204		$	205	$	(3)	$	2	$	204

Copper sales (millions of recoverable pounds)	361			361
Molybdenum sales (millions of recoverable pounds)a						7

Gross profit (loss) per pound of copper/molybdenum:

Revenues, excluding adjustments	$	3.57		$	3.57	$	16.75
Site production and delivery, before net noncash and other costs shown below	2.76			2.51		15.60
By-product credits	(0.30)			—		—
Treatment charges	0.10			0.09		—
Unit net cash costs	2.56			2.60		15.60
DD&A	0.28			0.25		0.95
Metals inventory adjustments	0.01			0.01		—
Noncash and other costs, net	0.10		c	0.09		0.60
Total unit costs	2.95			2.95		17.15
Other revenue adjustments, primarily for pricing on prior period open sales	(0.06)			(0.06)		—
Gross profit (loss) per pound	$	0.56		$	0.56	$	(0.40)

Reconciliation to Amounts Reported

	Revenues			Production and Delivery		DD&A		Metals Inventory Adjustments
Totals presented above	$	1,442		$	1,043	$	99	$	3
Treatment charges	(6)			29		—		—
Noncash and other costs, net	—			38		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(20)			—		—		—
Eliminations and other	32			34		1		—
North America copper mines	1,448			1,144		100		3
Other miningd	4,941			3,611		390		22


Corporate, other & eliminations	(1,386)			(1,389)		18		—
As reported in our consolidated financial statements	$	5,003		$	3,366	$	508	$	25

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Includes charges totaling $20 million ($0.06 per pound of copper) for feasibility and optimization studies.

d.Represents the combined total for our other segments as presented in Note 9.

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



Three Months Ended September 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,627		$	1,627	$	152	$	27	$	1,806
Site production and delivery, before net noncash and other costs shown below	795			724		82		20		826
By-product credits	(148)			—		—		—		—
Treatment charges	35			33		—		2		35
Net cash costs	682			757		82		22		861
DD&A	94			85		7		2		94
Metals inventory adjustments	13			13		—		—		13
Noncash and other costs, net	30		c	28		2		—		30
Total costs	819			883		91		24		998
Other revenue adjustments, primarily for pricing on prior period open sales	(7)			(7)		—		—		(7)
Gross profit	$	801		$	737	$	61	$	3	$	801

Copper sales (millions of recoverable pounds)	375			375
Molybdenum sales (millions of recoverable pounds)a						9

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	4.34		$	4.34	$	16.69
Site production and delivery, before net noncash and other costs shown below	2.12			1.93		8.97
By-product credits	(0.39)			—		—
Treatment charges	0.09			0.09		—
Unit net cash costs	1.82			2.02		8.97
DD&A	0.25			0.23		0.73
Metals inventory adjustments	0.03			0.03		—
Noncash and other costs, net	0.08		c	0.08		0.23
Total unit costs	2.18			2.36		9.93
Other revenue adjustments, primarily for pricing on prior period open sales	(0.02)			(0.02)		—
Gross profit per pound	$	2.14		$	1.96	$	6.76

Reconciliation to Amounts Reported
	Revenues			Production and Delivery		DD&A		Metals Inventory Adjustments
Totals presented above	$	1,806		$	826	$	94	$	13
Treatment charges	(4)			31		—		—
Noncash and other costs, net	—			30		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(7)			—		—		—
Eliminations and other	16			17		—		—
North America copper mines	1,811			904		94		13
Other miningd	5,903			3,735		418		—


Corporate, other & eliminations	(1,631)			(1,630)		16		1
As reported in our consolidated financial statements	$	6,083		$	3,009	$	528	$	14

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Includes charges totaling $12 million ($0.03 per pound of copper) for feasibility and optimization studies.

d.Represents the combined total for our other segments as presented in Note 9.

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



Nine Months Ended September 30, 2022
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	4,720		$	4,720	$	393	$	95	$	5,208
Site production and delivery, before net noncash and other costs shown below	2,882			2,643		283		70		2,996
By-product credits	(374)			—		—		—		—
Treatment charges	112			109		—		3		112
Net cash costs	2,620			2,752		283		73		3,108
DD&A	306			282		19		5		306
Metals inventory adjustments	10			9		1		—		10
Noncash and other costs, net	104		c	94		8		2		104
Total costs	3,040			3,137		311		80		3,528
Other revenue adjustments, primarily for pricing on prior period open sales	(13)			(13)		—		—		(13)
Gross profit	$	1,667		$	1,570	$	82	$	15	$	1,667

Copper sales (millions of recoverable pounds)	1,131			1,131
Molybdenum sales (millions of recoverable pounds)a						22

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	4.17		$	4.17	$	17.87
Site production and delivery, before net noncash and other costs shown below	2.54			2.33		12.87
By-product credits	(0.33)			—		—
Treatment charges	0.10			0.10		—
Unit net cash costs	2.31			2.43		12.87
DD&A	0.27			0.25		0.88
Metals inventory adjustments	0.01			0.01		—
Noncash and other costs, net	0.09		c	0.08		0.40
Total unit costs	2.68			2.77		14.15
Other revenue adjustments, primarily for pricing on prior period open sales	(0.01)			(0.01)		—
Gross profit per pound	$	1.48		$	1.39	$	3.72

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	5,208		$	2,996	$	306	$	10
Treatment charges	(15)			97		—		—
Noncash and other costs, net	—			104		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(13)			—		—		—
Eliminations and other	74			82		1		—
North America copper mines	5,254			3,279		307		10
Other miningd	16,649			11,072		1,147		33


Corporate, other & eliminations	(4,881)			(4,832)		50		—
As reported in our consolidated financial statements	$	17,022		$	9,519	$	1,504	$	43

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Includes charges totaling $49 million ($0.04 per pound of copper) for feasibility and optimization studies.

d.Represents the combined total for our other segments as presented in Note 9.

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



Nine Months Ended September 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	4,538		$	4,538	$	337	$	93	$	4,968
Site production and delivery, before net noncash and other costs shown below	2,254			2,093		194		60		2,347
By-product credits	(337)			—		—		—		—
Treatment charges	98			93		—		5		98
Net cash costs	2,015			2,186		194		65		2,445
DD&A	275			254		15		6		275
Metals inventory adjustments	13			13		—		—		13
Noncash and other costs, net	103		c	99		3		1		103
Total costs	2,406			2,552		212		72		2,836
Other revenue adjustments, primarily for pricing on prior period open sales	7			7		—		—		7
Gross profit	$	2,139		$	1,993	$	125	$	21	$	2,139

Copper sales (millions of recoverable pounds)	1,072			1,072
Molybdenum sales (millions of recoverable pounds)a						26

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	4.24		$	4.24	$	13.09
Site production and delivery, before net noncash and other costs shown below	2.11			1.95		7.54
By-product credits	(0.32)			—		—
Treatment charges	0.09			0.09		—
Unit net cash costs	1.88			2.04		7.54
DD&A	0.26			0.24		0.59
Metals inventory adjustments	0.01			0.01		—
Noncash and other costs, net	0.10		c	0.09		0.12
Total unit costs	2.25			2.38		8.25
Other revenue adjustments, primarily for pricing on prior period open sales	0.01			0.01		—
Gross profit per pound	$	2.00		$	1.87	$	4.84

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	4,968		$	2,347	$	275	$	13
Treatment charges	(21)			77		—		—
Noncash and other costs, net	—			103		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	7			—		—		—
Eliminations and other	49			51		—		—
North America copper mines	5,003			2,578		275		13
Other miningd	16,068			10,425		1,108		1


Corporate, other & eliminations	(4,390)			(4,141)		47		1
As reported in our consolidated financial statements	$	16,681		$	8,862	$	1,430	$	15

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Includes charges totaling $21 million ($0.02 per pound of copper) for feasibility and optimization studies.

d.Represents the combined total for our other segments as presented in Note 9.

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






Three Months Ended September 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Othera		Total
Revenues, excluding adjustments	$	1,017	$	1,017	$	62	$	1,079
Site production and delivery, before net noncash and other costs shown below	761		723		52		775
By-product credits	(48)		—		—		—
Treatment charges	40		40		—		40
Royalty on metals	2		2		—		2
Net cash costs	755		765		52		817
DD&A	99		93		6		99
Metals inventory adjustments	22		22		—		22
Noncash and other costs, net	25		23		2		25
Total costs	901		903		60		963
Other revenue adjustments, primarily for pricing on prior period open sales	(73)		(73)		—		(73)
Gross profit	$	43	$	41	$	2	$	43

Copper sales (millions of recoverable pounds)	293		293

Gross profit per pound of copper:

Revenues, excluding adjustments	$	3.47	$	3.47
Site production and delivery, before net noncash and other costs shown below	2.60		2.47
By-product credits	(0.16)		—
Treatment charges	0.13		0.14
Royalty on metals	0.01		—
Unit net cash costs	2.58		2.61
DD&A	0.34		0.32
Metals inventory adjustments	0.07		0.07
Noncash and other costs, net	0.09		0.08
Total unit costs	3.08		3.08
Other revenue adjustments, primarily for pricing on prior period open sales	(0.25)		(0.25)
Gross profit per pound	$	0.14	$	0.14

Reconciliation to Amounts Reported							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	1,079	$	775	$	99	$	22
Treatment charges	(40)		—		—		—
Royalty on metals	(2)		—		—		—
Noncash and other costs, net	—		25		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(73)		—		—		—
Eliminations and other	—		—		(1)		—
South America mining	964		800		98		22
Other miningb	5,425		3,955		392		3


Corporate, other & eliminations	(1,386)		(1,389)		18		—
As reported in our consolidated financial statements	$	5,003	$	3,366	$	508	$	25

a.Includes silver sales of 1.1 million ounces ($17.11 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b.Represents the combined total for our other segments as presented in Note 9.

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







Three Months Ended September 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	1,153		$	1,153	$	120	$	1,273
Site production and delivery, before net noncash and other costs shown below	597		b	546		64		610
By-product credits	(107)			—		—		—
Treatment charges	38			38		—		38
Royalty on metals	3			2		1		3
Net cash costs	531			586		65		651
DD&A	112			101		11		112

Noncash and other costs, net	20			19		1		20
Total costs	663			706		77		783
Other revenue adjustments, primarily for pricing on prior period open sales	(8)			(8)		—		(8)
Gross profit	$	482		$	439	$	43	$	482

Copper sales (millions of recoverable pounds)	280			280

Gross profit per pound of copper:

Revenues, excluding adjustments	$	4.12		$	4.12
Site production and delivery, before net noncash and other costs shown below	2.14		b	1.96
By-product credits	(0.38)			—
Treatment charges	0.13			0.13
Royalty on metals	0.01			0.01
Unit net cash costs	1.90			2.10
DD&A	0.40			0.36

Noncash and other costs, net	0.07			0.06
Total unit costs	2.37			2.52
Other revenue adjustments, primarily for pricing on prior period open sales	(0.03)			(0.03)
Gross profit per pound	$	1.72		$	1.57

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	1,273		$	610	$	112
Treatment charges	(38)			—		—
Royalty on metals	(3)			—		—
Noncash and other costs, net	—			20		—
Other revenue adjustments, primarily for pricing on prior period open sales	(8)			—		—
Eliminations and other	(1)			—		(1)
South America mining	1,223			630		111
Other miningc	6,491			4,009		401


Corporate, other & eliminations	(1,631)			(1,630)		16
As reported in our consolidated financial statements	$	6,083		$	3,009	$	528

a.Includes silver sales of 1.0 million ounces ($24.34 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b.Includes nonrecurring charges totaling $5 million ($0.02 per pound of copper) associated with labor related costs at Cerro Verde.

c.Represents the combined total for our other segments as presented in Note 9.

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



Nine Months Ended September 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Othera		Total
Revenues, excluding adjustments	$	3,149	$	3,149	$	302	$	3,451
Site production and delivery, before net noncash and other costs shown below	2,114		1,968		188		2,156
By-product credits	(260)		—		—		—
Treatment charges	124		124		—		124
Royalty on metals	7		6		1		7
Net cash costs	1,985		2,098		189		2,287
DD&A	297		272		25		297
Metals inventory adjustments	32		31		1		32
Noncash and other costs, net	60		57		3		60
Total costs	2,374		2,458		218		2,676
Other revenue adjustments, primarily for pricing on prior period open sales	35		35		—		35
Gross profit	$	810	$	726	$	84	$	810

Copper sales (millions of recoverable pounds)	845		845

Gross profit per pound of copper:

Revenues, excluding adjustments	$	3.73	$	3.73
Site production and delivery, before net noncash and other costs shown below	2.50		2.33
By-product credits	(0.31)		—
Treatment charges	0.15		0.15
Royalty on metals	0.01		0.01
Unit net cash costs	2.35		2.49
DD&A	0.35		0.32
Metals inventory adjustments	0.04		0.04
Noncash and other costs, net	0.07		0.06
Total unit costs	2.81		2.91
Other revenue adjustments, primarily for pricing on prior period open sales	0.04		0.04
Gross profit per pound	$	0.96	$	0.86

Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	3,451	$	2,156	$	297	$	32
Treatment charges	(124)		—		—		—
Royalty on metals	(7)		—		—		—
Noncash and other costs, net	—		60		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	35		—		—		—
Eliminations and other	(1)		(4)		—		1
South America mining	3,354		2,212		297		33
Other miningb	18,549		12,139		1,157		10


Corporate, other & eliminations	(4,881)		(4,832)		50		—
As reported in our consolidated financial statements	$	17,022	$	9,519	$	1,504	$	43

a.Includes silver sales of 3.2 million ounces ($21.24 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b.Represents the combined total for our other segments as presented in Note 9.

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



Nine Months Ended September 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	3,238		$	3,238	$	267	$	3,505
Site production and delivery, before net noncash and other costs shown below	1,690		b	1,568		155		1,723
By-product credits	(234)			—		—		—
Treatment charges	101			101		—		101
Royalty on metals	8			7		1		8
Net cash costs	1,565			1,676		156		1,832
DD&A	306			282		24		306

Noncash and other costs, net	49			45		4		49
Total costs	1,920			2,003		184		2,187
Other revenue adjustments, primarily for pricing on prior period open sales	98			98		—		98
Gross profit	$	1,416		$	1,333	$	83	$	1,416

Copper sales (millions of recoverable pounds)	769			769

Gross profit per pound of copper:

Revenues, excluding adjustments	$	4.21		$	4.21
Site production and delivery, before net noncash and other costs shown below	2.20		b	2.04
By-product credits	(0.31)			—
Treatment charges	0.13			0.13
Royalty on metals	0.01			0.01
Unit net cash costs	2.03			2.18
DD&A	0.40			0.36

Noncash and other costs, net	0.07			0.06
Total unit costs	2.50			2.60
Other revenue adjustments, primarily for pricing on prior period open sales	0.13			0.13
Gross profit per pound	$	1.84		$	1.74

Reconciliation to Amounts Reported

				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	3,505		$	1,723	$	306
Treatment charges	(101)			—		—
Royalty on metals	(8)			—		—
Noncash and other costs, net	—			49		—
Other revenue adjustments, primarily for pricing on prior period open sales	98			—		—
Eliminations and other	(1)			(3)		—
South America mining	3,493			1,769		306
Other miningc	17,578			11,234		1,077


Corporate, other & eliminations	(4,390)			(4,141)		47
As reported in our consolidated financial statements	$	16,681		$	8,862	$	1,430

a.Includes silver sales of 2.7 million ounces ($25.81 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b.Includes nonrecurring charges totaling $74 million ($0.10 per pound of copper) associated with labor related costs at Cerro Verde.

c.Represents the combined total for our other segments as presented in Note 9.

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






Three Months Ended September 30, 2022
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	1,400		$	1,400	$	802	$	30	$	2,232
Site production and delivery, before net noncash and other credits shown below	735		b	461		264		10		735
Gold and silver credits	(814)			—		—		—		—
Treatment charges	95			60		34		1		95
Export duties	80			50		29		1		80
Royalty on metals	81			48		32		1		81
Net cash costs	177			619		359		13		991
DD&A	265			167		95		3		265

Noncash and other credits, net	(10)		c	(7)		(3)		—		(10)
Total costs	432			779		451		16		1,246
Other revenue adjustments, primarily for pricing on prior period open sales	(158)			(158)		(17)		(1)		(176)
PT Smelting intercompany profit	60			38		22		—		60
Gross profit	$	870		$	501	$	356	$	13	$	870

Copper sales (millions of recoverable pounds)	406			406
Gold sales (thousands of recoverable ounces)						476

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

Revenues, excluding adjustments	$	3.45		$	3.45	$	1,683
Site production and delivery, before net noncash and other credits shown below	1.81		b	1.13		553
Gold and silver credits	(2.00)			—		—
Treatment charges	0.23			0.15		72
Export duties	0.20			0.12		61
Royalty on metals	0.20			0.12		67
Unit net cash costs	0.44			1.52		753
DD&A	0.65			0.41		200

Noncash and other credits, net	(0.02)		c	(0.01)		(7)
Total unit costs	1.07			1.92		946
Other revenue adjustments, primarily for pricing on prior period open sales	(0.39)			(0.39)		(36)
PT Smelting intercompany profit	0.15			0.09		45
Gross profit per pound/ounce	$	2.14		$	1.23	$	746

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	2,232		$	735	$	265
Treatment charges	(95)			—		—
Export duties	(80)			—		—
Royalty on metals	(81)			—		—
Noncash and other credits, net	(2)			(12)		—
Other revenue adjustments, primarily for pricing on prior period open sales	(176)			—		—
PT Smelting intercompany profit	—			(60)		—
Indonesia mining	1,798			663		265
Other miningd	4,591			4,092		225


Corporate, other & eliminations	(1,386)			(1,389)		18
As reported in our consolidated financial statements	$	5,003		$	3,366	$	508

a.Includes silver sales of 1.6 million ounces ($18.58 per ounce average realized price).

b.Includes charges totaling $21 million ($0.05 per pound of copper) for nonrecurring costs associated with PT-FI’s environmental commitments.

c.Includes net credits totaling $21 million ($0.05 per pound of copper) associated with historical tax audits.

d.Represents the combined total for our other segments as presented in Note 9.

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






Three Months Ended September 30, 2021
(In millions)	By-Product		Co-Product Method
	Method		Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	1,555	$	1,555	$	701	$	37	$	2,293
Site production and delivery, before net noncash and other costs shown below	553		375		169		9		553
Gold and silver credits	(744)		—		—		—		—
Treatment charges	90		61		27		2		90
Export duties	71		48		22		1		71
Royalty on metals	94		67		25		2		94
Net cash costs	64		551		243		14		808
DD&A	280		190		86		4		280
Noncash and other costs, netb	—		—		—		—		—
Total costs	344		741		329		18		1,088
Other revenue adjustments, primarily for pricing on prior period open sales	(2)		(2)		6		—		4
PT Smelting intercompany loss	(16)		(11)		(5)		—		(16)
Gross profit	$	1,193	$	801	$	373	$	19	$	1,193

Copper sales (millions of recoverable pounds)	378		378
Gold sales (thousands of recoverable ounces)					399

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

Revenues, excluding adjustments	$	4.11	$	4.11	$	1,757
Site production and delivery, before net noncash and other costs shown below	1.46		0.99		424
Gold and silver credits	(1.97)		—		—
Treatment charges	0.24		0.16		69
Export duties	0.19		0.13		54
Royalty on metals	0.25		0.18		63
Unit net cash costs	0.17		1.46		610
DD&A	0.74		0.50		215
Noncash and other costs, net	—		—		—
Total unit costs	0.91		1.96		825
Other revenue adjustments, primarily for pricing on prior period open sales	—		—		16
PT Smelting intercompany loss	(0.04)		(0.03)		(12)
Gross profit per pound/ounce	$	3.16	$	2.12	$	936

Reconciliation to Amounts Reported
			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	2,293	$	553	$	280
Treatment charges	(90)		—		—
Export duties	(71)		—		—
Royalty on metals	(94)		—		—

Other revenue adjustments, primarily for pricing on prior period open sales	4		—		—
PT Smelting intercompany loss	—		16		—
Indonesia mining	2,042		569		280
Other miningc	5,672		4,070		232


Corporate, other & eliminations	(1,631)		(1,630)		16
As reported in our consolidated financial statements	$	6,083	$	3,009	$	528

a.Includes silver sales of 1.7 million ounces ($22.22 per ounce average realized price).

b.Amounts round to less than $1 million.

c.Represents the combined total for our other segments as presented in Note 9.

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



Nine Months Ended September 30, 2022
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	4,433		$	4,433	$	2,422	$	98	$	6,953
Site production and delivery, before net noncash and other costs shown below	1,855		b	1,183		646		26		1,855
Gold and silver credits	(2,523)			—		—		—		—
Treatment charges	287			183		100		4		287
Export duties	245			156		85		4		245
Royalty on metals	281			183		95		3		281
Net cash costs	145			1,705		926		37		2,668
DD&A	775			494		270		11		775

Noncash and other costs, net	20		c	13		7		—		20
Total costs	940			2,212		1,203		48		3,463
Other revenue adjustments, primarily for pricing on prior period open sales	25			25		3		—		28
PT Smelting intercompany profit	34			21		12		1		34
Gross profit	$	3,552		$	2,267	$	1,234	$	51	$	3,552

Copper sales (millions of recoverable pounds)	1,195			1,195
Gold sales (thousands of recoverable ounces)						1,356

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

Revenues, excluding adjustments	$	3.71		$	3.71	$	1,786
Site production and delivery, before net noncash and other costs shown below	1.55		b	0.99		476
Gold and silver credits	(2.11)			—		—
Treatment charges	0.24			0.15		74
Export duties	0.20			0.13		63
Royalty on metals	0.24			0.16		70
Unit net cash costs	0.12			1.43		683
DD&A	0.65			0.41		199

Noncash and other costs, net	0.02		c	0.01		5
Total unit costs	0.79			1.85		887
Other revenue adjustments, primarily for pricing on prior period open sales	0.02			0.02		2
PT Smelting intercompany profit	0.03			0.02		9
Gross profit per pound/ounce	$	2.97		$	1.90	$	910

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	6,953		$	1,855	$	775
Treatment charges	(287)			—		—
Export duties	(245)			—		—
Royalty on metals	(281)			—		—
Noncash and other costs, net	12			32		—
Other revenue adjustments, primarily for pricing on prior period open sales	28			—		—
PT Smelting intercompany profit	—			(34)		—
Indonesia mining	6,180			1,853		775
Other miningd	15,723			12,498		679


Corporate, other & eliminations	(4,881)			(4,832)		50
As reported in our consolidated financial statements	$	17,022		$	9,519	$	1,504

a.Includes silver sales of 4.7 million ounces ($20.80 per ounce average realized price).

b.Includes charges totaling $21 million ($0.02 per pound of copper) for nonrecurring costs associated with PT-FI’s environmental commitments.

*c.*Includes a net charge of $30 million ($0.02 per pound of copper) consisting of charges associated with a settlement of an administrative fine levied by the Indonesia government and a reserve for exposure associated with export duties in prior periods, partially offset by credits for adjustments to prior year treatment and refining charges and historical tax audits.

d.Represents the combined total for our other segments as presented in Note 9.

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



Nine Months Ended September 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	3,989		$	3,989	$	1,703	$	104	$	5,796
Site production and delivery, before net noncash and other costs shown below	1,412			972		415		25		1,412
Gold and silver credits	(1,803)			—		—		—		—
Treatment charges	229			158		67		4		229
Export duties	145			99		43		3		145
Royalty on metals	234			167		63		4		234
Net cash costs	217			1,396		588		36		2,020
DD&A	726			499		213		14		726

Noncash and other costs, net	3		b	2		1		—		3
Total costs	946			1,897		802		50		2,749
Other revenue adjustments, primarily for pricing on prior period open sales	71			71		(4)		—		67
PT Smelting intercompany loss	(106)			(73)		(31)		(2)		(106)
Gross profit	$	3,008		$	2,090	$	866	$	52	$	3,008

Copper sales (millions of recoverable pounds)	946			946
Gold sales (thousands of recoverable ounces)						957

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

Revenues, excluding adjustments	$	4.21		$	4.21	$	1,780
Site production and delivery, before net noncash and other credits shown below	1.49			1.03		434
Gold and silver credits	(1.91)			—		—
Treatment charges	0.24			0.17		70
Export duties	0.15			0.10		45
Royalty on metals	0.26			0.18		66
Unit net cash costs	0.23			1.48		615
DD&A	0.76			0.52		222

Noncash and other costs, net	0.01		b	0.01		1
Total unit costs	1.00			2.01		838
Other revenue adjustments, primarily for pricing on prior period open sales	0.08			0.08		(5)
PT Smelting intercompany loss	(0.11)			(0.08)		(33)
Gross profit per pound/ounce	$	3.18		$	2.20	$	904

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	5,796		$	1,412	$	726
Treatment charges	(229)			—		—
Export duties	(145)			—		—
Royalty on metals	(234)			—		—
Noncash and other costs, net	31			34		—
Other revenue adjustments, primarily for pricing on prior period open sales	67			—		—
PT Smelting intercompany loss	—			106		—
Indonesia mining	5,286			1,552		726
Other miningc	15,785			11,451		657


Corporate, other & eliminations	(4,390)			(4,141)		47
As reported in our consolidated financial statements	$	16,681		$	8,862	$	1,430

a.Includes silver sales of 4.3 million ounces ($24.50 per ounce average realized price).

b.Includes credits of $31 million ($0.03 per pound of copper) associated with adjustments to prior year treatment and refining charges and charges of $16 million ($0.02 per pound of copper) associated with a potential settlement of an administrative fine levied by the Indonesia government.

c.Represents the combined total for our other segments as presented in Note 9.

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








	Three Months Ended September 30,
(In millions)	2022		2021

Revenues, excluding adjustmentsa	$	134	$	158
Site production and delivery, before net noncash and other costs shown below	91		67
Treatment charges and other	7		7
Net cash costs	98		74
DD&A	18		19

Noncash and other costs, net	3		3
Total costs	119		96
Gross profit	$	15	$	62

Molybdenum sales (millions of recoverable pounds)a	8		9

Gross profit per pound of molybdenum:

Revenues, excluding adjustmentsa	$	16.51	$	18.13
Site production and delivery, before net noncash and other costs shown below	11.26		7.70
Treatment charges and other	0.84		0.84
Unit net cash costs	12.10		8.54
DD&A	2.16		2.14

Noncash and other costs, net	0.40		0.30
Total unit costs	14.66		10.98
Gross profit per pound	$	1.85	$	7.15

Reconciliation to Amounts Reported
			Production
Three Months Ended September 30, 2022	Revenues		and Delivery		DD&A
Totals presented above	$	134	$	91	$	18
Treatment charges and other	(7)		—		—
Noncash and other costs, net	—		3		—
Molybdenum mines	127		94		18
Other miningb	6,262		4,661		472


Corporate, other & eliminations	(1,386)		(1,389)		18
As reported in our consolidated financial statements	$	5,003	$	3,366	$	508

Three Months Ended September 30, 2021
Totals presented above	$	158	$	67	$	19
Treatment charges and other	(7)		—		—
Noncash and other costs, net	—		3		—


Molybdenum mines	151		70		19
Other miningb	7,563		4,569		493


Corporate, other & eliminations	(1,631)		(1,630)		16
As reported in our consolidated financial statements	$	6,083	$	3,009	$	528

a.Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

b.Represents the combined total for our other segments as presented in Note 9. Also includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

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



	Nine Months Ended September 30,
(In millions)	2022		2021

Revenues, excluding adjustmentsa	$	419	$	329
Site production and delivery, before net noncash and other costs shown below	241		175
Treatment charges and other	20		19
Net cash costs	261		194
DD&A	52		51
Metals inventory adjustments	—		1
Noncash and other costs, net	8		8
Total costs	321		254
Gross profit	$	98	$	75

Molybdenum sales (millions of recoverable pounds)a	23		23

Gross profit per pound of molybdenum:

Revenues, excluding adjustmentsa	$	18.01	$	14.41
Site production and delivery, before net noncash and other costs shown below	10.37		7.69
Treatment charges and other	0.85		0.85
Unit net cash costs	11.22		8.54
DD&A	2.23		2.21
Metals inventory adjustments	—		0.04
Noncash and other costs, net	0.37		0.34
Total unit costs	13.82		11.13
Gross profit per pound	$	4.19	$	3.28

Reconciliation to Amounts Reported
							Metals
			Production				Inventory
Nine Months Ended September 30, 2022	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	419	$	241	$	52	$	—
Treatment charges and other	(20)		—		—		—
Noncash and other costs, net	—		8		—		—
Molybdenum mines	399		249		52		—
Other miningb	21,504		14,102		1,402		43


Corporate, other & eliminations	(4,881)		(4,832)		50		—
As reported in our consolidated financial statements	$	17,022	$	9,519	$	1,504	$	43

Nine Months Ended September 30, 2021
Totals presented above	$	329	$	175	$	51	$	1
Treatment charges and other	(19)		—		—		—
Noncash and other costs, net	—		8		—		—


Molybdenum mines	310		183		51		1
Other miningb	20,761		12,820		1,332		13


Corporate, other & eliminations	(4,390)		(4,141)		47		1
As reported in our consolidated financial statements	$	16,681	$	8,862	$	1,430	$	15

CAUTIONARY STATEMENT

Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance. 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 and operating costs; capital expenditures; operating plans; cash flows; liquidity; PT-FI’s financing, construction and completion of additional domestic smelting capacity in Indonesia in accordance with the terms of its IUPK; extension of PT-FI’s IUPK beyond 2041; our commitment to deliver responsibly produced copper, including plans to implement and validate our operating sites under specific frameworks; execution of our energy and climate strategies and the underlying assumptions and estimated impacts on our business related thereto; achievement of climate commitments by 2030 and 2050 net zero aspiration; improvements in operating procedures and technology innovations; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; tax rates; export quotas and duties; 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 proceedings; debt repurchases and the ongoing implementation of our financial policy and future returns to shareholders, including dividend payments (base or variable) and share repurchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” "targets," “intends,” “likely,” “will,” “should,” “could,” “to be,” “potential," “assumptions,” “guidance,” “aspirations,” “future” “commitments,” “pursues,” “initiatives,” “objectives,” “opportunities,” “strategy” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of the Board and management, respectively, and are subject to a number of factors, including maintaining our net debt target, capital availability, our financial results, cash requirements, business prospects, 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.

We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities we produce, primarily copper; changes in our cash requirements, financial position, financing or investment plans; changes in general market, economic, tax, regulatory or industry conditions, including as a result of Russia’s invasion of Ukraine or potential global economic downturn or recession; reductions in liquidity and access to capital; the ongoing COVID-19 pandemic and any future public health crisis; political and social risks; operational risks inherent in mining, with higher inherent risks in underground mining; fluctuations in price and availability of commodities purchased; constraints on supply, logistics and transportation services; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations; production rates; timing of shipments; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; the potential effects of violence in Indonesia generally and in the province of Papua; the Indonesia government's extension of PT-FI's export license after March 19, 2023; satisfaction of requirements in accordance with PT-FI's IUPK to extend mining rights from 2031 through 2041; the Indonesia government's approval of a deferred schedule for completion of additional domestic smelting capacity in Indonesia; discussions relating to the extension of PT-FI’s IUPK beyond 2041; cybersecurity incidents; labor relations, including labor-related work stoppages and costs; the results of the human health assessment to evaluate the potential impacts of tailings and mining waste, and compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks and litigation results; our ability to comply with our responsible production commitments under specific frameworks and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” contained in Part I, Item 1A. of our 2021 Form 10-K.

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

This report on Form 10-Q also contains financial measures such as net debt and unit net cash costs per pound of copper and molybdenum, which are not recognized under U.S. GAAP. Refer to “Operations – Unit Net Cash Costs”

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

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