Item 1. Financial Statements.

Freeport-McMoRan Inc.

CONSOLIDATED BALANCE SHEETS (Unaudited)

			June 30, 2024						December 31, 2023
			(In Millions)
ASSETS
Current assets:
Cash and cash equivalents			$	5,273					$	4,758
Restricted cash and cash equivalents			1,030						1,208
Trade accounts receivable			1,128						1,209
Income and other tax receivables			428						455
Inventories:
Product			2,755						2,472
Materials and supplies, net			2,283						2,169
Mill and leach stockpiles			1,436						1,419
Other current assets			389						375
Total current assets			14,722						14,065
Property, plant, equipment and mine development costs, net			36,784						35,295
Long-term mill and leach stockpiles			1,286						1,336
Other assets			1,843						1,810
Total assets			$	54,635					$	52,506
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities			$	3,910					$	3,729
Accrued income taxes			898						786
Current portion of debt			768						766
Current portion of environmental and asset retirement obligations			342						316
Dividends payable			218						218
Total current liabilities			6,136						5,815
Long-term debt, less current portion			8,658						8,656
Environmental and asset retirement obligations, less current portion			5,083						4,624
Deferred income taxes			4,491						4,453
Other liabilities			1,581						1,648
Total liabilities			25,949						25,196
Equity:
Stockholders’ equity:
Common stock			162						162
Capital in excess of par value			24,321						24,637
Accumulated deficit			(970)						(2,059)
Accumulated other comprehensive loss			(274)						(274)
Common stock held in treasury			(5,835)						(5,773)
Total stockholders’ equity			17,404						16,693
Noncontrolling interests			11,282						10,617
Total equity			28,686						27,310
Total liabilities and equity			$	54,635					$	52,506

The accompanying notes are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2024						2023						2024						2023
			(In Millions, Except Per Share Amounts)
Revenues			$	6,624					$	5,737					$	12,945					$	11,126
Cost of sales:
Production and delivery			3,875						3,549						7,719						6,714
Depreciation, depletion and amortization			509						547						1,104						946
Total cost of sales			4,384						4,096						8,823						7,660
Selling, general and administrative expenses			123						115						267						241
Exploration and research expenses			40						42						77						73
Environmental obligations and shutdown costs			28						74						95						141
Total costs and expenses			4,575						4,327						9,262						8,115
Operating income			2,049						1,410						3,683						3,011
Interest expense, net			(88)						(171)						(177)						(322)
Net gain on early extinguishment of debt			—						5						—						5
Other income, net			69						24						198						112
Income before income taxes and equity in affiliated companies’ net earnings			2,030						1,268						3,704						2,806
Provision for income taxes			(754)						(539)						(1,266)						(1,038)
Equity in affiliated companies’ net earnings			4						2						4						12
Net income			1,280						731						2,442						1,780
Net income attributable to noncontrolling interests			(664)						(388)						(1,353)						(774)
Net income attributable to common stockholders			$	616					$	343					$	1,089					$	1,006
Net income per share attributable to common stockholders:
Basic			$	0.42					$	0.24					$	0.75					$	0.70
Diluted			$	0.42					$	0.23					$	0.75					$	0.69
Weighted-average shares of common stock outstanding:
Basic			1,438						1,434						1,437						1,434
Diluted			1,445						1,442						1,445						1,443
Dividends declared per share of common stock			$	0.15					$	0.15					$	0.30					$	0.30

The accompanying notes are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2024						2023						2024						2023
			(In Millions)
Net income			$	1,280					$	731					$	2,442					$	1,780
Other comprehensive income, net of taxes:
Defined benefit plans:
Amortization of unrecognized amounts included in net periodic benefit costs			—						1						1						2
Foreign exchange (losses) gains			—						—						(1)						1
Other comprehensive income			—						1						—						3
Total comprehensive income			1,280						732						2,442						1,783
Total comprehensive income attributable to noncontrolling interests			(664)						(388)						(1,353)						(775)
Total comprehensive income attributable to common stockholders			$	616					$	344					$	1,089					$	1,008

The accompanying notes are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

			Six Months Ended
			June 30,
			2024						2023
			(In Millions)
Cash flow from operating activities:
Net income			$	2,442					$	1,780
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization			1,104						946
Stock-based compensation			77						72
Net charges for environmental and asset retirement obligations, including accretion			300						237
Payments for environmental and asset retirement obligations			(97)						(114)
Net charges for defined pension and postretirement plans			16						31
Pension plan contributions			(38)						(6)
Net gain on early extinguishment of debt			—						(5)
Deferred income taxes			37						74
Change in deferred profit on PT Freeport Indonesia’s sales to PT Smelting			—						(112)
Charges for social investment programs at PT Freeport Indonesia			51						36
Payments for social investment programs at PT Freeport Indonesia			(37)						(28)
Other, net			21						14
Changes in working capital and other:
Accounts receivable			92						756
Inventories			(341)						(530)
Other current assets			21						(17)
Accounts payable and accrued liabilities			103						(203)
Accrued income taxes and timing of other tax payments			101						(208)
Net cash provided by operating activities			3,852						2,723
Cash flow from investing activities:
Capital expenditures:
North America copper mines			(480)						(378)
South America operations			(172)						(183)
Indonesia mining			(750)						(790)
Indonesia downstream processing facilities			(740)						(823)
Molybdenum mines			(63)						(22)
Other			(165)						(88)
Loans to PT Smelting for expansion			(28)						(61)
Proceeds from sales of assets and other, net			13						(20)
Net cash used in investing activities			(2,385)						(2,365)
Cash flow from financing activities:
Proceeds from debt			1,281						681
Repayments of debt			(1,281)						(1,806)
Cash dividends and distributions paid:
Common stock			(433)						(432)
Noncontrolling interests			(685)						(291)
Contributions from noncontrolling interests			—						50
Proceeds from exercised stock options			26						34
Payments for withholding of employee taxes related to stock-based awards			(35)						(47)
Other, net			(1)						(1)
Net cash used in financing activities			(1,128)						(1,812)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents			339						(1,454)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year			6,063						8,390
Cash and cash equivalents and restricted cash and cash equivalents at end of period			$	6,402					$	6,936

The accompanying notes are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

THREE MONTHS ENDED JUNE 30

			Stockholders’ Equity
			Common Stock																		Accum-ulated Deficit						Accumu- lated Other Compre- hensive Loss						Common Stock Held in Treasury												Total Stock-holders’ Equity
			Number of Shares						At Par Value						Capital in Excess of Par Value												Number of Shares						At Cost									Non- controlling Interests						Total Equity
			(In Millions)
Balance at March 31, 2024			1,622						$	162					$	24,488					$	(1,586)					$	(274)					186						$	(5,817)					$	16,973					$	11,132					$	28,105
Exercised and issued stock-based awards			2						—						31						—						—						—						—						31						—						31
Stock-based compensation, including the tender of shares			—						—						18						—						—						—						(18)						—						(2)						(2)
Dividends			—						—						(216)						—						—						—						—						(216)						(512)						(728)
Net income attributable to common stockholders			—						—						—						616						—						—						—						616						—						616
Net income attributable to noncontrolling interests			—						—						—						—						—						—						—						—						664						664
Balance at June 30, 2024			1,624						$	162					$	24,321					$	(970)					$	(274)					186						$	(5,835)					$	17,404					$	11,282					$	28,686

			Stockholders’ Equity
			Common Stock																		Accum-ulated Deficit						Accumu- lated Other Compre- hensive Loss						Common Stock Held in Treasury												Total Stock-holders’ Equity
			Number of Shares						At Par Value						Capital in Excess of Par Value												Number of Shares						At Cost									Non- controlling Interests						Total Equity
			(In Millions)
Balance at March 31, 2023			1,618						$	162					$	25,227					$	(3,244)					$	(319)					184						$	(5,769)					$	16,057					$	9,591					$	25,648
Exercised and issued stock-based awards			—						—						3						—						—						—						—						3						—						3
Stock-based compensation, including the tender of shares			—						—						14						—						—						—						—						14						—						14
Dividends			—						—						(216)						—						—						—						—						(216)						(154)						(370)
Net income attributable to common stockholders			—						—						—						343						—						—						—						343						—						343
Net income attributable to noncontrolling interests			—						—						—						—						—						—						—						—						388						388
Other comprehensive income			—						—						—						—						1						—						—						1						—						1
Balance at June 30, 2023			1,618						$	162					$	25,028					$	(2,901)					$	(318)					184						$	(5,769)					$	16,202					$	9,825					$	26,027

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (continued)

SIX MONTHS ENDED JUNE 30

			Stockholders’ Equity
			Common Stock																		Accum-ulated Deficit						Accumu- lated Other Compre- hensive Loss						Common Stock Held in Treasury												Total Stock-holders’ Equity
			Number of Shares						At Par Value						Capital in Excess of Par Value												Number of Shares						At Cost									Non- controlling Interests						Total Equity
			(In Millions)
Balance at December 31, 2023			1,619						$	162					$	24,637					$	(2,059)					$	(274)					184						$	(5,773)					$	16,693					$	10,617					$	27,310
Exercised and issued stock-based awards			5						—						53						—						—						1						—						53						—						53
Stock-based compensation, including the tender of shares			—						—						64						—						—						1						(62)						2						(3)						(1)
Dividends			—						—						(433)						—						—						—						—						(433)						(685)						(1,118)
Net income attributable to common stockholders			—						—						—						1,089						—						—						—						1,089						—						1,089
Net income attributable to noncontrolling interests			—						—						—						—						—						—						—						—						1,353						1,353
Balance at June 30, 2024			1,624						$	162					$	24,321					$	(970)					$	(274)					186						$	(5,835)					$	17,404					$	11,282					$	28,686

			Stockholders’ Equity
			Common Stock																		Accum-ulated Deficit						Accumu- lated Other Compre- hensive Loss						Common Stock Held in Treasury												Total Stock-holders’ Equity
			Number of Shares						At Par Value						Capital in Excess of Par Value												Number of Shares						At Cost									Non- controlling Interests						Total Equity
			(In Millions)
Balance at December 31, 2022			1,613						$	161					$	25,322					$	(3,907)					$	(320)					183						$	(5,701)					$	15,555					$	9,316					$	24,871
Exercised and issued stock-based awards			5						1						55						—						—						—						—						56						—						56
Stock-based compensation, including the tender of shares			—						—						60						—						—						1						(68)						(8)						(1)						(9)
Dividends			—						—						(433)						—						—						—						—						(433)						(291)						(724)
Contributions from noncontrolling interests			—						—						24						—						—						—						—						24						26						50
Net income attributable to common stockholders			—						—						—						1,006						—						—						—						1,006						—						1,006
Net income attributable to noncontrolling interests			—						—						—						—						—						—						—						—						774						774
Other comprehensive income			—						—						—						—						2						—						—						2						1						3
Balance at June 30, 2023			1,618						$	162					$	25,028					$	(2,901)					$	(318)					184						$	(5,769)					$	16,202					$	9,825					$	26,027

The accompanying notes are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1. GENERAL INFORMATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2023 (2023 Form 10-K). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the six-month period ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Dollar amounts in tables are stated in millions, except per share amounts.

PT Smelting. In December 2023, PT Smelting completed an expansion of its facilities. The project was funded by PT Freeport Indonesia (PT-FI) with borrowings totaling $254 million that converted to equity effective June 30, 2024, increasing PT-FI’s ownership in PT Smelting to 66% from 39.5%.

As discussed in Note 3 of FCX’s 2023 Form 10-K, FCX has determined that PT Smelting, which is owned by PT-FI and Mitsubishi Materials Corporation, is a variable interest entity. Since mutual consent of both PT Smelting shareholders is required to make the decisions that most significantly impact the economic performance of PT Smelting, PT-FI is not the primary beneficiary. Accordingly, PT-FI will continue to account for its investment in PT Smelting under the equity method.

Attribution of PT Freeport Indonesia’s Net Income or Loss. As discussed in Note 3 of FCX’s 2023 Form 10-K, beginning January 1, 2023, the attribution of PT-FI’s net income or loss is based on equity ownership percentages (48.76% for FCX, 26.24% for PT Mineral Industri Indonesia (MIND ID) and 25.00% for PT Indonesia Papua Metal Dan Mineral) with certain exceptions, as contemplated by the economics replacement agreement in the PT-FI shareholders agreement.

As further discussed in Note 3, in first-quarter 2024, PT-FI recorded net credits of $215 million associated with the closure of its 2021 corporate income tax audit and resolution of the framework for disputed tax matters. PT-FI’s net income and cash dividends associated with the settlement of this historical tax matter that originated before December 31, 2022, were attributed approximately 81% to FCX.

As discussed in Note 3 of FCX’s 2023 Form 10-K, because PT-FI did not achieve the Gold Target during the Initial Period (as defined in the PT-FI shareholders agreement), PT-FI’s net income and cash dividends associated with the sale of approximately 190,000 ounces of gold during 2023 were attributed approximately 81% to FCX.

Subsequent Events. FCX evaluated events after June 30, 2024, and through the date the consolidated financial statements were issued and determined any events and transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.

NOTE 2. EARNINGS PER SHARE

FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income per share of common stock was computed by dividing net income attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be antidilutive.

Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share follow:

			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2024						2023						2024						2023
Net income			$	1,280					$	731					$	2,442					$	1,780
Net income attributable to noncontrolling interests			(664)						(388)						(1,353)						(774)
Undistributed dividends and earnings allocated to participating securities			(6)						(5)						(6)						(5)
Net income attributable to common stockholders			$	610					$	338					$	1,083					$	1,001
Basic weighted-average shares of common stock outstanding			1,438						1,434						1,437						1,434
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units			7						8						8						9
Diluted weighted-average shares of common stock outstanding			1,445						1,442						1,445						1,443
Net income per share attributable to common stockholders:
Basic			$	0.42					$	0.24					$	0.75					$	0.70
Diluted			$	0.42					$	0.23					$	0.75					$	0.69

Shares associated with outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income per share of common stock. There were no shares of common stock associated with outstanding stock options excluded in any of the periods shown above.

NOTE 3. INCOME TAXES

Geographic sources of FCX’s (provision) benefit for income taxes follow:

			Six Months Ended
			June 30,
			2024						2023
U.S.			$	(4)					$	3
International			(1,262)						(1,041)
Total			$	(1,266)					$	(1,038)

FCX’s consolidated effective income tax rate is a function of the various rates in the jurisdictions where it operates and was 34% for the first six months of 2024, including a net benefit of $182 million related to closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters (see below for further discussion), and was 37% for the first six months of 2023. The 2023 effective income tax rate reflects the impact of pre-tax, nondeductible charges totaling $142 million for the first six months of 2023 associated with contested tax rulings issued by the Peruvian Supreme Court. At current copper prices, FCX expects its U.S. jurisdiction to generate net losses for the year 2024 that will not result in a realized tax benefit; accordingly, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses.

PT-FI Historical Tax Matters. During the first six months of 2024, in conjunction with closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for disputed tax matters, PT-FI recorded net credits of $215 million, including $199 million to provision for income taxes, $8 million to production and delivery and $8 million to interest expense, net. In addition, FCX recognized a charge of $17 million to provision for income taxes related to withholding taxes and 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.

Resolution of the framework for disputed tax matters also resulted in a decrease of unrecognized tax benefits of $276 million and a decrease of $43 million in related interest and penalties, as well as a decrease in contingencies related to Indonesia tax matters of $179 million, including a $35 million decrease associated with penalties and interest. Refer to Notes 11 and 12 of FCX’s 2023 Form 10-K for further discussion.

Uncertain Tax Positions. As further discussed in Note 7, in May 2024, an arbitration tribunal rejected FCX and Cerro Verde’s claims relating to the assessment of mining royalties on ore processed by the Cerro Verde concentrator for the period from December 2006 to December 2013. Cerro Verde had previously paid the full amount of these disputed tax assessments, including the related interest and penalties, and a full reserve had been applied against these amounts; as such, the decision by the arbitration tribunal had no impact on FCX’s consolidated financial statements. FCX has reduced its unrecognized tax benefits by $269 million and related interest and penalties by $319 million (refer to Note 11 of FCX’s 2023 Form 10-K for a summary of unrecognized tax benefits and related interest and penalties).

U.S. Inflation Reduction Act of 2022. The provisions of the U.S. Inflation Reduction Act of 2022 (the Act) became applicable to FCX on January 1, 2023. The Act includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average AFSI exceeding $1.0 billion over a three-year period. FCX has made interpretations of certain provisions of the Act, and based on these interpretations, determined that the provisions of the Act did not impact FCX’s financial results for the first six months of 2024 or for the year 2023.

Although the Internal Revenue Service (IRS) and U.S. Department of the Treasury (Treasury) published guidance in 2023 that provided some additional clarity on these rules, regulations are yet to be published and uncertainty remains regarding the application of the CAMT to FCX. Future regulations and guidance released by the IRS and Treasury may differ from FCX’s interpretations of the Act, which could be material and may further limit FCX’s ability to realize future benefits from its U.S. net operating losses.

Pillar Two of the Global Anti-Base Erosion Rules. In December 2021, the Organisation for Economic Co-operation and Development (OECD) published a framework for Pillar Two of the Global Anti-Base Erosion Rules, which was designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a minimum level of income tax. Recommendations from the OECD regarding a global minimum income tax and other changes are being considered and/or implemented in jurisdictions where FCX operates. At current metals market prices, FCX believes enactment of the recommended framework in jurisdictions where it operates will result in minimal impacts to its financial results in the near term.

NOTE 4. DEBT AND EQUITY

The components of debt follow:

						June 30, 2024						December 31, 2023
Senior notes and debentures:
Issued by FCX						$	6,008					$	6,005
Issued by PT-FI						2,981						2,980
Issued by Freeport Minerals Corporation						353						354
Other						84						83
Total debt						9,426						9,422
Less current portion of debt						(768)						(766)
Long-term debt						$	8,658					$	8,656

Revolving Credit Facilities. FCX and PT-FI have a $3.0 billion, unsecured revolving credit facility that matures in October 2027. Under the terms of the revolving credit facility, FCX may obtain loans and issue letters of credit in an aggregate amount of up to $3.0 billion, with letters of credit issuance limited to $1.5 billion and PT-FI’s capacity limited to $500 million. At June 30, 2024, FCX had $7 million in letters of credit issued under its revolving credit facility.

PT-FI has a $1.75 billion, unsecured revolving credit facility that matures in November 2028 and Cerro Verde has a $350 million, unsecured revolving credit facility that matures in May 2027.

At June 30, 2024, FCX, PT-FI and Cerro Verde had no borrowings outstanding under their respective revolving credit facilities and were in compliance with their respective covenants.

On July 31, 2024, PT-FI borrowed $250 million under its revolving credit facility to fund capital expenditures for PT-FI’s new smelter and precious metals refinery (PMR) (collectively, the new downstream processing facilities).

Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $181 million in second-quarter 2024, $234 million in second-quarter 2023, $356 million for the first six months of 2024 and $441 million for the first six months of 2023. Consolidated interest costs (before capitalization) in the 2023 periods includes $50 million in second-quarter 2023 and $74 million for the first six months of 2023 associated with Cerro Verde’s contested tax rulings issued by the Peru Supreme Court.

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $93 million in second-quarter 2024, $62 million in second-quarter 2023, $179 million for the first six months of 2024 and $119 million for the first six months of 2023. The increase in capitalized interest costs in the 2024 periods compared to the 2023 periods, primarily resulted from increased construction and development costs for projects in process, primarily at PT-FI’s new downstream processing facilities.

Share Repurchase Program and Dividends. In July 2024, FCX acquired 1.2 million shares of its common stock for a total cost of $59 million ($50.48 average cost per share) bringing total purchases under its $5.0 billion share repurchase program to 49.0 million shares of common stock for a cost of $1.9 billion ($38.64 average cost per share). 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 FCX’s Board of Directors’ (Board) discretion.

On June 26, 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 were paid on August 1, 2024, to common stockholders of record as of July 15, 2024. The declaration and payment of dividends (base or variable) are at the discretion of FCX’s Board, and will depend on FCX’s financial results, cash requirements, global economic conditions and other factors deemed relevant by FCX’s Board.

NOTE 5. FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions.

A discussion of FCX’s derivative contracts and programs follows.

Derivatives Designated as Hedging Instruments - Fair Value Hedges.

Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod and cathode customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the six-month periods ended June 30, 2024 and 2023. At June 30, 2024, FCX held copper futures and swap contracts that qualified for hedge accounting for 95 million pounds at an average contract price of $4.26 per pound, with maturities through March 2026.

Summary of Gains (Losses). A summary of realized and unrealized gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including on the related hedged item follows:

			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2024						2023						2024						2023
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments			$	1					$	(25)					$	10					$	(11)
Hedged item – firm sales commitments			(1)						25						(10)						11
Realized gains (losses):
Matured derivative financial instruments			28						(5)						29						3

Derivatives Not Designated as Hedging Instruments.

Embedded Derivatives. Certain FCX sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association (London) gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement.

FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX copper prices and the London gold price as specified in the contracts, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate, cathode or anode slimes at the then-current LME copper, COMEX copper or London gold prices. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate, cathode and anode slime sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME or COMEX copper forward prices and the adjusted London gold price, until the date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

A summary of FCX’s embedded derivatives at June 30, 2024, follows:

			Open Positions						Average Price Per Unit												Maturities Through
						Contract						Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)			371						$	4.26					$	4.33					November 2024
Gold (thousands of ounces)			93						2,333						2,344						September 2024
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)			115						4.39						4.33						September 2024

Copper Forward Contracts. Atlantic Copper, FCX’s wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in production and delivery costs. At June 30, 2024, Atlantic Copper held net copper forward sales contracts for 44 million pounds at an average contract price of $4.38 per pound, with maturities through August 2024.

Summary of Gains (Losses). A summary of realized and unrealized gains (losses) recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows:

			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2024						2023						2024						2023
Embedded derivatives in provisional sales contracts:a
Copper			$	181					$	(169)					$	247					$	61
Gold and other metals			45						(21)						89						22
Copper forward contractsb			(17)						1						(26)						(1)

a.Amounts recorded in revenues.

b.Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments.

A summary of the fair values of unsettled commodity derivative financial instruments follows:

						June 30, 2024						December 31, 2023
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts						$	18					$	4
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts						77						76
Copper forward contracts						5						—
Total derivative assets						$	100					$	80
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts						$	4					$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts						43						23
Copper forward contracts						—						1
Total derivative liabilities						$	47					$	24

FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by contract on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances.

A summary of these net unsettled commodity contracts in the balance sheet follows:

						Assets												Liabilities
						June 30, 2024						December 31, 2023						June 30, 2024						December 31, 2023
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts						$	77					$	76					$	43					$	23
Copper derivatives						23						4						4						1
						100						80						47						24
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts						7						—						7						—
						7						—						7						—
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts						70						76						36						23
Copper derivatives						23						4						4						1
						$	93					$	80					$	40					$	24
Balance sheet classification:
Trade accounts receivable						$	53					$	76					$	21					$	2
Other current assets						22						4						—						—
Accounts payable and accrued liabilities						18						—						17						22
Other liabilities						—						—						2						—
						$	93					$	80					$	40					$	24

Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. As of June 30, 2024, the maximum amount of credit exposure associated with derivative transactions was $100 million.

Other Financial Instruments. Other financial instruments include cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, investment securities, legally restricted trust assets, accounts payable and accrued liabilities, accrued income taxes, dividends payable and debt. The carrying value for these financial instruments classified as current assets or liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 6 for the fair values of investment securities, legally restricted funds and debt). In addition, as of June 30, 2024, FCX had contingent consideration assets related to the sales of certain oil and gas properties (refer to Note 6 for the related fair values).

Cash and Cash Equivalents and Restricted Cash and Cash Equivalents. The following table provides a reconciliation of total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows:

						June 30, 2024						December 31, 2023
Balance sheet components:
Cash and cash equivalentsa						$	5,273					$	4,758
Restricted cash and cash equivalents, currentb						1,030						1,208
Restricted cash and cash equivalents, long-term - included in other assets						99						97
Total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows						$	6,402					$	6,063

a.Includes (i) time deposits of $0.1 billion at June 30, 2024, and $0.3 billion at December 31, 2023, and (ii) cash designated for PT-FI’s new downstream processing facilities totaling $0.2 billion at December 31, 2023.

b.Includes (i) $0.9 billion at June 30, 2024, and $1.1 billion at December 31, 2023, associated with 30% 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 and (ii) $0.1 billion at each of June 30, 2024, and December 31, 2023, in assurance bonds to support PT-FI’s commitment for its new downstream processing facilities.

NOTE 6. FAIR VALUE MEASUREMENT

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX did not have any significant transfers in or out of Level 3 during second-quarter 2024.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater Gulf of Mexico (GOM) oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued income taxes and dividends payable (refer to Note 5), follows:

			At June 30, 2024
			Carrying						Fair Value
			Amount						Total						NAV						Level 1						Level 2						Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund			$	27					$	27					$	27					$	—					$	—					$	—
Equity securities			7						7						—						7						—						—
Total			34						34						27						7						—						—
Legally restricted funds:a
U.S. core fixed income fund			65						65						65						—						—						—
Government mortgage-backed securities			49						49						—						—						49						—
Corporate bonds			35						35						—						—						35						—
Government bonds and notes			31						31						—						—						31						—
Money market funds			19						19						—						19						—						—
Asset-backed securities			13						13						—						—						13						—
Collateralized mortgage-backed securities			1						1						—						—						1						—
Total			213						213						65						19						129						—
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position			77						77						—						—						77						—
Copper futures and swap contracts			18						18						—						11						7						—
Copper forward contracts			5						5						—						2						3						—
Total			100						100						—						13						87						—
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa			47						39						—						—						—						39
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position			43						43						—						—						43						—
Copper futures and swap contracts			4						4						—						2						2						—
Total			47						47						—						2						45						—
Long-term debt, including current portiond			9,426						9,221						—						—						9,221						—

			At December 31, 2023
			Carrying						Fair Value
			Amount						Total						NAV						Level 1						Level 2						Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund			$	27					$	27					$	27					$	—					$	—					$	—
Equity securities			6						6						—						6						—						—
Total			33						33						27						6						—						—
Legally restricted funds:a
U.S. core fixed income fund			65						65						65						—						—						—
Government mortgage-backed securities			51						51						—						—						51						—
Government bonds and notes			37						37						—						—						37						—
Corporate bonds			29						29						—						—						29						—
Money market funds			17						17						—						17						—						—
Asset-backed securities			12						12						—						—						12						—
Collateralized mortgage-backed securities			1						1						—						—						1						—
Total			212						212						65						17						130						—
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position			76						76						—						—						76						—
Copper futures and swap contracts			4						4						—						3						1						—
Total			80						80						—						3						77						—
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa			50						42						—						—						—						42
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position			23						23						—						—						23						—
Copper forward contracts			1						1						—						1						—						—
Total			24						24						—						1						23						—
Long-term debt, including current portiond			9,422						9,364						—						—						9,364						—

a.Current portion included in other current assets and long-term portion included in other assets.

b.Excludes amounts included in restricted cash and cash equivalents and other assets (which approximated fair value), primarily amounts associated with (i) PT-FI’s export proceeds ($0.9 billion at June 30, 2024, and $1.1 billion at December 31, 2023), (ii) assurance bonds to support PT-FI’s commitment for new downstream processing facilities ($0.1 billion at each of June 30, 2024, and December 31, 2023) and (iii) PT-FI’s mine closure and reclamation guarantees ($0.1 billion at each of June 30, 2024, and December 31, 2023).

c.Refer to Note 5 for further discussion and balance sheet classifications.

d.Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.

Valuation Techniques. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

Fixed income securities (government securities, corporate bonds, asset-backed securities and collateralized mortgage-backed securities) are valued using a bid-evaluation price or a mid-evaluation price. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME or COMEX copper forward prices and the adjusted London gold price at each reporting date based on the month of maturity (refer to Note 5 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 5 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

In December 2016, FCX’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration (to be received over time) that was recorded at the total amount under the loss recovery approach. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

Long-term debt, including current portion, is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at June 30, 2024, as compared with those techniques used at December 31, 2023.

NOTE 7. CONTINGENCIES AND COMMITMENTS

Environmental

Refer to Note 12 of FCX’s 2023 Form 10-K for further discussion of FCX’s environmental obligations.

FCX recorded net charges for adjustments to environmental obligations totaling $79 million for the first six months of 2024, primarily associated with changes in cost estimates for former processing facilities and historical smelter sites.

Asset Retirement Obligations

Refer to Note 12 of FCX’s 2023 Form 10-K for further discussion of FCX’s asset retirement obligations (AROs).

Mining Operations. FCX recorded net ARO additions at mining operations totaling $261 million for the first six months of 2024, primarily associated with revised closure plans and cost estimates to reflect FCX’s commitment to the Global Industry Standard on Tailings Management (Tailings Standard). FCX may record additional ARO adjustments as it continues to update estimates to conform with the Tailings Standard.

Oil and Gas Properties. Freeport-McMoRan Oil & Gas (FM O&G) recorded net ARO additions totaling $105 million for the first six months of 2024 primarily for assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, including $98 million that was charged to production and delivery costs. FM O&G, as a predecessor-in-interest in oil and natural gas leases, is in the chain of title with unrelated third parties either directly or by virtue of divestiture of certain oil and natural gas assets previously owned and assigned by its subsidiaries. Certain counterparties in these divestiture transactions or third parties in existing leases have filed for bankruptcy protection or undergone associated reorganizations and have not performed the required abandonment obligations. Accordingly, regulations or federal laws require that other working interest owners, including FM O&G, assume such obligations.

Litigation

There were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s 2023 Form 10-K, other than the matter discussed below.

Louisiana Parishes Coastal Erosion Cases. Certain FCX affiliates were named as defendants, along with numerous co-defendants, in 13 cases out of a total of 42 cases filed in Louisiana state courts by 6 south Louisiana parishes (Cameron, Jefferson, Plaquemines, St. Bernard, St. John the Baptist and Vermilion), alleging that certain oil and gas exploration and production operations and sulfur mining and production operations in coastal Louisiana contaminated and damaged coastal wetlands and caused significant land loss along the Louisiana coast. The settlement agreement to resolve these cases was fully executed in fourth-quarter 2022 but there was a delay in finalizing it as a result of a lawsuit challenging the settlement brought in first-quarter 2023 by a non-plaintiff coastal parish included in the settlement (Terrebonne Parish) titled Terrebonne Parish Consolidated Government v. Louisiana Department of Natural Resources et al., Docket No. 185576, 32nd Judicial District Court, Terrebonne Parish, State of Louisiana. During first-quarter 2024, Terrebonne Parish agreed to dismiss its lawsuit and FCX made the $15 million settlement payment in trust (which was accrued for in 2019) in accordance with the terms of the settlement agreement.

Indonesia Regulatory Matters

Refer to Notes 12, 13 and 14 of FCX’s 2023 Form 10-K for further discussion of Indonesia regulatory matters.

Export Licenses. On May 31, 2024, export licenses expired for several exporters, including PT-FI. In second-quarter 2024, the Indonesia government issued various regulations to allow, under certain conditions, continued exports of copper concentrates and anode slimes through December 2024.

On July 2, 2024, PT-FI was granted copper concentrate and anode slimes export licenses, which are valid through December 2024 when the full ramp-up of PT-FI’s new smelter is expected. PT-FI will continue to pay export duties on copper concentrates during the smelter ramp-up period pursuant to the Indonesia regulations. The applicable rate prescribed by regulations is 7.5% of the export value.

Special Mining License (IUPK). As further discussed in FCX’s 2023 Form 10-K, PT-FI’s IUPK enables it to conduct operations in the Grasberg minerals district through 2041. On May 30, 2024, the Indonesia government issued a regulation applicable to the country’s mineral and coal industries which outlines requirements for the granting of IUPK extensions. The regulation provides that IUPK holders may be granted a life-of-mine extension provided certain conditions are met, including ownership of integrated downstream processing facilities that have entered the operational stage; domestic ownership of at least 51% and agreement 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 current IUPK expiration. PT-FI expects to apply for an extension under this new regulation during 2024.

Tax Matters

Cerro Verde Royalty Dispute. As disclosed in Note 12 of FCX’s 2023 Form 10-K, in 2020, FCX filed on its own behalf and on behalf of Cerro Verde, international arbitration proceedings against the Peruvian government under the United States-Peru Trade Promotion Agreement relating to the assessment of mining royalties on ore processed by the Cerro Verde concentrator for the period from December 2006 to December 2013. In May 2024, the arbitration tribunal rejected FCX and Cerro Verde's claims on the merits. The decision by the arbitration tribunal had no impact on FCX’s consolidated financial statements. Refer to Note 3 for discussion of the reduction in unrecognized tax benefits related to Cerro Verde tax matters.

NOTE 8. BUSINESS SEGMENTS

FCX has organized its mining operations into four primary divisions – North America copper mines, South America operations, Indonesia operations and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci and Cerro Verde copper mines, the Indonesia operations (including the Grasberg minerals district and PT-FI’s new downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

For comparative purposes, the 2023 tables have been adjusted to conform with the current year presentation, primarily for the combination of the Grasberg minerals district and PT-FI’s new downstream processing facilities. PT-FI substantially completed construction of the new smelter in June 2024 and has commenced commissioning operations. PT-FI’s new downstream processing facilities will exclusively receive concentrate from the Grasberg minerals district, which reflects PT-FI’s integrated and dependent operations within Indonesia (i.e., Indonesia operations). The PMR will receive anode slimes from the smelter and from PT Smelting. FCX's Chief Executive Officer, identified as its chief operating decision maker under business segment accounting guidance, makes executive management decisions, including resource allocation and mine planning, for the Indonesia operations as a single business segment.

Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, the timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on intercompany sales to Atlantic Copper until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.

FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, some selling, general and administrative costs are not allocated to the operating divisions or individual segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

Product Revenues. FCX’s revenues attributable to the products it sold for the second quarter and first six months of 2024 and 2023 follow:

			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2024						2023						2024						2023
Copper:
Cathode			$	2,237					$	1,670					$	4,178					$	3,181
Concentrate			1,595						1,873						3,413						3,276
Rod and other refined copper products			974						884						1,927						1,805
Purchased coppera			300						72						466						276
Gold			935						999						2,103						1,530
Molybdenum			476						491						897						1,083
Silver and other			139						171						288						303
Adjustments to revenues:
Royalty expenseb			(93)						(94)						(213)						(154)
Treatment charges			(90)						(142)						(219)						(243)
PT-FI export dutiesc			(75)						3			d			(231)						(14)			d
Revenues from contracts with customers			6,398						5,927						12,609						11,043
Embedded derivativese			226						(190)						336						83
Total consolidated revenues			$	6,624					$	5,737					$	12,945					$	11,126

a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.

b.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.

c.Export duties of 2.5% were eliminated effective March 29, 2023, upon verification that construction progress of the new smelter exceeded 50% and reinstated at a rate of 7.5% in July 2023 under a revised regulation. As discussed in Note 7, PT-FI will continue to pay export duties of 7.5% on copper concentrates during the smelter ramp-up period pursuant to Indonesia regulations.

d.Includes credits associated with adjustments to prior-period export duties.

e.Refer to Note 5 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.

Financial Information by Business Segment

																																																																					Atlantic																								Corporate,
			North America Copper Mines																		South America Operations																																										Copper																								Other
																											Cerro																		Indonesia												Molybdenum						Rod &						Smelting																								& Elimi-						FCX
			Morenci												Other						Total						Verde						Other						Total						Operations												Mines						Refining						& Refining																								nations						Total
Three Months Ended June 30, 2024
Revenues:
Unaffiliated customers			$	13											$	10					$	23					$	1,075					$	254					$	1,329					$	2,185											$	—					$	1,693					$	898																							$	496		a			$	6,624
Intersegment			587												926						1,513						182						—						182						83												138						11						2																								(1,929)						—
Production and delivery			438												713						1,151						679			b			181						860						672												134						1,692						859																								(1,493)						3,875
DD&A			45												61						106						97						17						114						248												16						1						7																								17						509
Selling, general and administrative expenses			1												—						1						2						—						2						30												—						—						6																								84						123
Exploration and research expenses			5												9						14						3						2						5						4												—						—						—																								17						40
Environmental obligations and shutdown costs			—												—						—						—						—						—						—												—						—						—																								28						28
Operating income (loss)			111												153						264						476						54						530						1,314												(12)						11						28																								(86)						2,049
Interest expense, net			—												1						1						5						—						5						6												—						—						8																								68						88
Other income, net			—												1						1						5						—						5						30												—						—						2																								31						69
Provision for income taxes			—												—						—						191						23						214						490												—						—						1																								49						754
Equity in affiliated companies’ net earnings			—												—						—						—						—						—						3												—						—						—																								1						4
Net income attributable to noncontrolling interests			—												—						—						142						22						164						463			c									—						—						—																								37						664
Total assets at June 30, 2024			3,182												6,508						9,690						8,368						1,988						10,356						26,501												1,915						273						1,410																								4,490						54,635
Capital expenditures			47												196						243						67						23						90						648												36						11						37																								51						1,116
Three Months Ended June 30, 2023
Revenues:
Unaffiliated customers			$	26											$	14					$	40					$	783					$	190					$	973					$	2,039											$	—					$	1,463					$	744																							$	478		a			$	5,737
Intersegment			570												980						1,550						175						—						175						198												150						10						4																								(2,087)						—
Production and delivery			423												744						1,167						609						174						783						861			d									105						1,465						725																								(1,557)						3,549
DD&A			42												57						99						117						15						132						275												14						1						7																								19						547
Selling, general and administrative expenses			1												—						1						2						—						2						30												—						—						7																								75						115
Exploration and research expenses			3												15						18						3						1						4						—												—						—						—																								20						42
Environmental obligations and shutdown costs			—												1						1						—						—						—						—												—						—						—																								73						74
Operating income (loss)			127												177						304						227						—						227						1,071												31						7						9																								(239)						1,410
Interest expense, net			—												—						—						55			e			—						55						12												—						—						8																								96						171
Net gain on early extinguishment of debt			—												—						—						—						—						—						—												—						—						—																								5						5
Other (expense) income, net			(1)												(2)						(3)						(45)						4						(41)						28												(1)						—						—																								41						24
Provision for income taxes			—												—						—						113						—						113						410												—						—						—																								16						539
Equity in affiliated companies’ net earnings			—												—						—						—						—						—						—												—						—						—																								2						2
Net income attributable to noncontrolling interests			—												—						—						18						2						20						368			c									—						—						—																								—						388
Total assets at June 30, 2023			3,167												5,754						8,921						8,444						1,890						10,334						23,446												1,717						280						1,127																								5,082						50,907
Capital expenditures			67												115						182						57						26						83						841												13						2						11																								31						1,163

Financial Information by Business Segment (continued)

(In Millions)
																																																																											Atlantic						Corporate,
			North America Copper Mines																		South America Operations																																										Copper						Other
																											Cerro																								Indonesia												Molybdenum						Rod &						Smelting						& Elimi-						FCX
			Morenci												Other						Total						Verde												Other						Total						Operations												Mines						Refining						& Refining						nations						Total
Six Months Ended June 30, 2024
Revenues:
Unaffiliated customers			$	50											$	50					$	100					$	1,901											$	462					$	2,363					$	4,833											$	—					$	3,182					$	1,571					$	896		a			$	12,945
Intersegment			1,127												1,811						2,938						284												—						284						260												283						21						2						(3,788)						—
Production and delivery			897												1,478						2,375						1,282			b									351						1,633						1,533												253						3,179						1,509						(2,763)						7,719
DD&A			93												125						218						189												33						222						583												32						2						14						33						1,104
Selling, general and administrative expenses			1												1						2						4												—						4						61												—						—						15						185						267
Exploration and research expenses			9												17						26						6												3						9						6												—						—						—						36						77
Environmental obligations and shutdown costs			—												—						—						—												—						—						—												—						—						—						95						95
Operating income (loss)			177												240						417						704												75						779						2,910												(2)						22						35						(478)						3,683
Interest expense, net			—												1						1						10												—						10						7												—						—						18						141						177
Other (expense) income, net			—												(1)						(1)						16												13						29						68												—						—						8						94						198
Provision for (benefit from) income taxes			—												—						—						282												35						317						899			f									—						—						(12)						62						1,266
Equity in affiliated companies’ net earnings			—												—						—						—												—						—						1												—						—						—						3						4
Net income attributable to noncontrolling interests			—												—						—						218												36						254						1,063			c									—						—						—						36						1,353
Capital expenditures			91												389						480						127												45						172						1,490												63						16						60						89						2,370
Six Months Ended June 30, 2023
Revenues:
Unaffiliated customers			$	58											$	111					$	169					$	1,741											$	424					$	2,165					$	3,238											$	—					$	2,986					$	1,493					$	1,075		a			$	11,126
Intersegment			1,163												1,928						3,091						419												—						419						367												373						16						11						(4,277)						—
Production and delivery			804												1,525						2,329						1,229												361						1,590						1,199			d									201						2,992						1,459						(3,056)						6,714
DD&A			85												117						202						208												31						239						423												34						2						14						32						946
Selling, general and administrative expenses			1												1						2						4												—						4						58												—						—						15						162						241
Exploration and research expenses			6												31						37						4												2						6						—												—						—						—						30						73
Environmental obligations and shutdown costs			—												22						22						—												—						—						—												—						—						—						119						141
Operating income (loss)			325												343						668						715												30						745						1,925												138						8						16						(489)						3,011
Interest expense, net			—												—						—						84			e									—						84						19												—						—						14						205						322
Net gain on early extinguishment of debt			—												—						—						—												—						—						—												—						—						—						5						5
Other (expense) income, net			(2)												1						(1)						(27)												(2)						(29)						60												(1)						(1)						(5)						89						112
Provision for (benefit from) income taxes			—												—						—						300												7						307						740												—						—						—						(9)						1,038
Equity in affiliated companies’ net earnings			—												—						—						—												—						—						11												—						—						—						1						12
Net income (loss) attributable to noncontrolling interests			—												—						—						158												20						178						639			c									—						—						—						(43)						774
Capital expenditures			123												255						378						118												65						183						1,613												22						7						23						58						2,284

Financial Information by Business Segment (continued)

a.Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America copper mines and South America operations.

b.Includes non-recurring costs totaling $65 million associated with labor-related charges at Cerro Verde.

c.Refer to Note 1 for further discussion of the attribution of PT-FI’s net income or loss.

d.Includes a $55 million charge for a potential administrative fine. Refer to Note 12 of FCX’s 2023 Form 10-K for further discussion.

e.Includes interest expense associated with contested tax rulings issued by the Peruvian Supreme Court totaling $50 million in the second quarter and $74 million for the first six months of 2023.

f.Includes a net benefit to income taxes totaling $182 million associated with the closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for disputed tax matters.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Freeport-McMoRan Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of Freeport-McMoRan Inc. (the Company) as of June 30, 2024, the related consolidated statements of income, comprehensive income, and equity for the three- and six-month periods ended June 30, 2024 and 2023, the related consolidated statements of cash flows for the six-month periods ended June 30, 2024 and 2023, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2023, the related consolidated statements of income, comprehensive income, equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated February 15, 2024, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLP

Phoenix, Arizona

August 7, 2024