filings.toolsItem 1. Financial Statements.
148K characters. Original on sec.gov · Markdown
Item 1. Financial Statements.
Freeport-McMoRan Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
| September 30, 2025 | December 31, 2024 | ||||||||||
| (In Millions) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 4,318 | $ | 3,923 | |||||||
| Restricted cash and cash equivalents | 230 | 888 | |||||||||
| Trade accounts receivable | 916 | 578 | |||||||||
| Value added and other tax receivables | 548 | 564 | |||||||||
| Inventories: | |||||||||||
| Product | 2,864 | 3,038 | |||||||||
| Materials and supplies, net | 2,633 | 2,382 | |||||||||
| Mill and leach stockpiles | 1,501 | 1,388 | |||||||||
| Other current assets | 554 | 535 | |||||||||
| Total current assets | 13,564 | 13,296 | |||||||||
| Property, plant, equipment and mine development costs, net | 40,257 | 38,514 | |||||||||
| Long-term mill and leach stockpiles | 1,091 | 1,225 | |||||||||
| Other assets | 1,916 | 1,813 | |||||||||
| Total assets | $ | 56,828 | $ | 54,848 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | 4,098 | $ | 4,057 | |||||||
| Accrued income taxes | 528 | 859 | |||||||||
| Current portion of debt | 383 | 41 | |||||||||
| Current portion of environmental and asset retirement obligations | 299 | 320 | |||||||||
| Dividends payable | 218 | 219 | |||||||||
| Total current liabilities | 5,526 | 5,496 | |||||||||
| Long-term debt, less current portion | 8,915 | 8,907 | |||||||||
| Environmental and asset retirement obligations, less current portion | 5,457 | 5,404 | |||||||||
| Deferred income taxes | 4,359 | 4,376 | |||||||||
| Other liabilities | 2,174 | 1,887 | |||||||||
| Total liabilities | 26,431 | 26,070 | |||||||||
| Equity: | |||||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 163 | 162 | |||||||||
| Capital in excess of par value | 23,660 | 23,797 | |||||||||
| Retained earnings (accumulated deficit) | 1,196 | (170) | |||||||||
| Accumulated other comprehensive loss | (310) | (314) | |||||||||
| Common stock held in treasury | (6,024) | (5,894) | |||||||||
| Total stockholders’ equity | 18,685 | 17,581 | |||||||||
| Noncontrolling interests | 11,712 | 11,197 | |||||||||
| Total equity | 30,397 | 28,778 | |||||||||
| Total liabilities and equity | $ | 56,828 | $ | 54,848 |
The accompanying notes are an integral part of these consolidated financial statements.
Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In Millions, Except Per Share Amounts) | |||||||||||||||||||||||
| Revenues | $ | 6,972 | $ | 6,790 | $ | 20,282 | $ | 19,735 | |||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Production and delivery | 4,205 | 4,077 | 12,243 | 11,796 | |||||||||||||||||||
| Depreciation, depletion and amortization | 625 | 600 | 1,759 | 1,704 | |||||||||||||||||||
| Total cost of sales | 4,830 | 4,677 | 14,002 | 13,500 | |||||||||||||||||||
| Selling, general and administrative expenses | 131 | 117 | 412 | 384 | |||||||||||||||||||
| Exploration and research expenses | 55 | 38 | 140 | 115 | |||||||||||||||||||
| Environmental obligations and shutdown costs | — | 20 | 37 | 115 | |||||||||||||||||||
| Gain on sales of assets | (16) | — | (16) | — | |||||||||||||||||||
| Total costs and expenses | 5,000 | 4,852 | 14,575 | 14,114 | |||||||||||||||||||
| Operating income | 1,972 | 1,938 | 5,707 | 5,621 | |||||||||||||||||||
| Interest expense, net | (107) | (72) | (259) | (249) | |||||||||||||||||||
| Other income, net | 59 | 97 | 158 | 295 | |||||||||||||||||||
| Income before income taxes and equity in affiliated companies’ net (losses) earnings | 1,924 | 1,963 | 5,606 | 5,667 | |||||||||||||||||||
| Provision for income taxes | (669) | (737) | (2,019) | (2,003) | |||||||||||||||||||
| Equity in affiliated companies’ net (losses) earnings | (8) | 10 | — | 14 | |||||||||||||||||||
| Net income | 1,247 | 1,236 | 3,587 | 3,678 | |||||||||||||||||||
| Net income attributable to noncontrolling interests | (573) | (710) | (1,789) | (2,063) | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 674 | $ | 526 | $ | 1,798 | $ | 1,615 | |||||||||||||||
| Net income per share attributable to common stockholders: | |||||||||||||||||||||||
| Basic | $ | 0.46 | $ | 0.36 | $ | 1.25 | $ | 1.12 | |||||||||||||||
| Diluted | $ | 0.46 | $ | 0.36 | $ | 1.24 | $ | 1.11 | |||||||||||||||
| Weighted-average shares of common stock outstanding: | |||||||||||||||||||||||
| Basic | 1,437 | 1,438 | 1,437 | 1,438 | |||||||||||||||||||
| Diluted | 1,443 | 1,444 | 1,443 | 1,445 | |||||||||||||||||||
| Dividends declared per share of common stock | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.45 |
The accompanying notes are an integral part of these consolidated financial statements.
Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||
| Net income | $ | 1,247 | $ | 1,236 | $ | 3,587 | $ | 3,678 | |||||||||||||||
| Other comprehensive income, net of taxes: | |||||||||||||||||||||||
| Defined benefit plans: | |||||||||||||||||||||||
| Amortization of unrecognized amounts included in net periodic benefit costs | 1 | — | 4 | 1 | |||||||||||||||||||
| Foreign exchange gains | — | 1 | — | — | |||||||||||||||||||
| Other comprehensive income | 1 | 1 | 4 | 1 | |||||||||||||||||||
| Total comprehensive income | 1,248 | 1,237 | 3,591 | 3,679 | |||||||||||||||||||
| Total comprehensive income attributable to noncontrolling interests | (573) | (710) | (1,789) | (2,063) | |||||||||||||||||||
| Total comprehensive income attributable to common stockholders | $ | 675 | $ | 527 | $ | 1,802 | $ | 1,616 |
The accompanying notes are an integral part of these consolidated financial statements.
Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Nine Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Millions) | ||||||||||||||
| Cash flow from operating activities: | ||||||||||||||
| Net income | $ | 3,587 | $ | 3,678 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation, depletion and amortization | 1,759 | 1,704 | ||||||||||||
| Gain on sales of assets | (16) | — | ||||||||||||
| Net charges for environmental and asset retirement obligations, including accretion | 166 | 382 | ||||||||||||
| Payments for environmental and asset retirement obligations | (177) | (157) | ||||||||||||
| Stock-based compensation | 98 | 94 | ||||||||||||
| Net charges for defined pension and postretirement plans | 43 | 29 | ||||||||||||
| Pension plan contributions | (29) | (58) | ||||||||||||
| Deferred income taxes | (16) | 36 | ||||||||||||
| Charges for social investment programs at PT Freeport Indonesia | 77 | 81 | ||||||||||||
| Payments for social investment programs at PT Freeport Indonesia | (44) | (50) | ||||||||||||
| Other, net | (21) | 14 | ||||||||||||
| Changes in working capital and other: | ||||||||||||||
| Accounts receivable | (433) | 93 | ||||||||||||
| Inventories | (113) | (301) | ||||||||||||
| Other current assets | 46 | (24) | ||||||||||||
| Accounts payable and accrued liabilities | 283 | (79) | ||||||||||||
| Accrued income taxes and timing of other tax payments | (293) | 282 | ||||||||||||
| Net cash provided by operating activities | 4,917 | 5,724 | ||||||||||||
| Cash flow from investing activities: | ||||||||||||||
| Capital expenditures: | ||||||||||||||
| U.S. copper mines | (843) | (743) | ||||||||||||
| South America operations | (287) | (272) | ||||||||||||
| Indonesia operations | (1,927) | (2,203) | ||||||||||||
| Molybdenum mines | (74) | (88) | ||||||||||||
| Other | (358) | (263) | ||||||||||||
| PT Freeport Indonesia smelter fire insurance recoveries | 25 | — | ||||||||||||
| Acquisition of additional ownership interest in Cerro Verde | — | (210) | ||||||||||||
| Loans to PT Smelting for expansion | — | (28) | ||||||||||||
| Proceeds from sales of assets and other, net | 22 | 10 | ||||||||||||
| Net cash used in investing activities | (3,442) | (3,797) | ||||||||||||
| Cash flow from financing activities: | ||||||||||||||
| Proceeds from debt | 2,180 | 1,948 | ||||||||||||
| Repayments of debt | (1,843) | (1,699) | ||||||||||||
| Finance lease payments | (24) | (38) | ||||||||||||
| Cash dividends and distributions paid: | ||||||||||||||
| Common stock | (649) | (649) | ||||||||||||
| Noncontrolling interests | (1,274) | (1,269) | ||||||||||||
| Treasury stock purchases | (107) | (59) | ||||||||||||
| Proceeds from exercised stock options | 6 | 27 | ||||||||||||
| Payments for withholding of employee taxes related to stock-based awards | (22) | (35) | ||||||||||||
| Net cash used in financing activities | (1,733) | (1,774) | ||||||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents | (258) | 153 | ||||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at beginning of year | 4,911 | 6,063 | ||||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ | 4,653 | $ | 6,216 |
The accompanying notes are an integral part of these consolidated financial statements.
Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
THREE MONTHS ENDED SEPTEMBER 30
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Retained Earnings | Accum- ulated 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 June 30, 2025 | 1,626 | $ | 163 | $ | 23,642 | $ | 738 | $ | (311) | 191 | $ | (6,024) | $ | 18,208 | $ | 11,788 | $ | 29,996 | |||||||||||||||||||||||||||||||||||||||||
| Exercised and issued stock-based awards | — | — | 3 | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | 15 | — | — | — | — | 15 | (2) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | (216) | — | — | — | (216) | (649) | (865) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | 674 | — | — | — | 674 | — | 674 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | 573 | 573 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 1 | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | 1,626 | $ | 163 | $ | 23,660 | $ | 1,196 | $ | (310) | 191 | $ | (6,024) | $ | 18,685 | $ | 11,712 | $ | 30,397 |
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Accum-ulated Deficit | Accum- ulated 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 June 30, 2024 | 1,624 | $ | 162 | $ | 24,321 | $ | (970) | $ | (274) | 186 | $ | (5,835) | $ | 17,404 | $ | 11,282 | $ | 28,686 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised and issued stock-based awards | — | — | 1 | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | 13 | — | — | — | — | 13 | 1 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock purchases | — | — | — | — | — | 1 | (59) | (59) | — | (59) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of additional ownership interest in Cerro Verde | — | — | (125) | — | — | — | — | (125) | (90) | (215) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | (216) | — | — | — | — | (216) | (584) | (800) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in consolidated subsidiary ownership interests | — | — | 3 | — | — | — | — | 3 | (1) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | 526 | — | — | — | 526 | — | 526 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | 710 | 710 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 1 | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | 1,624 | $ | 162 | $ | 23,997 | $ | (444) | $ | (273) | 187 | $ | (5,894) | $ | 17,548 | $ | 11,318 | $ | 28,866 |
The accompanying notes are an integral part of these consolidated financial statements.
Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (continued)
NINE MONTHS ENDED SEPTEMBER 30
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | (Accum-ulated Deficit) Retained Earnings | 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, 2024 | 1,624 | $ | 162 | $ | 23,797 | $ | (170) | $ | (314) | 187 | $ | (5,894) | $ | 17,581 | $ | 11,197 | $ | 28,778 | |||||||||||||||||||||||||||||||||||||||||
| Exercised and issued stock-based awards | 2 | 1 | 4 | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | 75 | — | — | 1 | (23) | 52 | (2) | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock purchases | — | — | — | — | — | 3 | (107) | (107) | — | (107) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | (216) | (432) | — | — | — | (648) | (1,274) | (1,922) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | 1,798 | — | — | — | 1,798 | — | 1,798 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | 1,789 | 1,789 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 4 | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | 1,626 | $ | 163 | $ | 23,660 | $ | 1,196 | $ | (310) | 191 | $ | (6,024) | $ | 18,685 | $ | 11,712 | $ | 30,397 | |||||||||||||||||||||||||||||||||||||||||
| 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 | — | 54 | — | — | 1 | (28) | 26 | — | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | 77 | — | — | 1 | (34) | 43 | (2) | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock purchases | — | — | — | — | — | 1 | (59) | (59) | — | (59) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of additional ownership interest in Cerro Verde | — | — | (125) | — | — | — | — | (125) | (90) | (215) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | (649) | — | — | — | — | (649) | (1,269) | (1,918) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Change in consolidated subsidiary ownership interests | — | — | 3 | — | — | — | — | 3 | (1) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | 1,615 | — | — | — | 1,615 | — | 1,615 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | 2,063 | 2,063 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 1 | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | 1,624 | $ | 162 | $ | 23,997 | $ | (444) | $ | (273) | 187 | $ | (5,894) | $ | 17,548 | $ | 11,318 | $ | 28,866 | |||||||||||||||||||||||||||||||||||||||||
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, 2024 (2024 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 nine-month period ended September 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. Dollar amounts in tables are stated in millions, except per share amounts.
Subsequent Events. FCX evaluated events after September 30, 2025, 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 undistributed dividends and earnings allocated 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 | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Net income | $ | 1,247 | $ | 1,236 | $ | 3,587 | $ | 3,678 | ||||||||||||||||||
| Net income attributable to noncontrolling interests | (573) | (710) | (1,789) | (2,063) | ||||||||||||||||||||||
| Undistributed dividends and earnings allocated to participating securities | (7) | (6) | (7) | (6) | ||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 667 | $ | 520 | $ | 1,791 | $ | 1,609 | ||||||||||||||||||
| Basic weighted-average shares of common stock outstanding | 1,437 | 1,438 | 1,437 | 1,438 | ||||||||||||||||||||||
| Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units | 6 | 6 | 6 | 7 | ||||||||||||||||||||||
| Diluted weighted-average shares of common stock outstanding | 1,443 | 1,444 | 1,443 | 1,445 | ||||||||||||||||||||||
| Net income per share attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | $ | 0.46 | $ | 0.36 | $ | 1.25 | $ | 1.12 | ||||||||||||||||||
| Diluted | $ | 0.46 | $ | 0.36 | $ | 1.24 | $ | 1.11 |
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:
| Nine Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| U.S. | $ | (4) | $ | 30 | ||||||||||
| International | (2,015) | (2,033) | ||||||||||||
| Total | $ | (2,019) | $ | (2,003) |
FCX’s consolidated effective income tax rate is a function of the various rates in the jurisdictions where it operates and was 36% for the first nine months of 2025 and 35% for the first nine months of 2024. The provision for income taxes for the first nine months of 2024 included net benefits of $182 million related to closure of PT Freeport Indonesia’s (PTFI) 2021 corporate income tax audit and resolution of the framework for disputed tax matters.
During the first nine months of 2025 and 2024, FCX’s U.S. operations projected full-year net losses that would not result in a realized tax benefit; accordingly, applicable accounting rules required FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses.
On July 4, 2025, the President signed into law H.R.1 (also referred to as the One Big Beautiful Bill Act), which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain provisions of the Tax Cuts & Jobs Act of 2017. FCX does not expect H.R.1 to have a material impact on its consolidated financial results.
NOTE 4. DEBT AND EQUITY
The components of debt follow:
| September 30, 2025 | December 31, 2024 | |||||||||||||
| PTFI revolving credit facility | $ | 250 | $ | 250 | ||||||||||
| Senior notes and debentures: | ||||||||||||||
| Issued by FCX | 5,285 | 5,281 | ||||||||||||
| Issued by PTFI | 2,985 | 2,983 | ||||||||||||
| Issued by Freeport Minerals Corporation | 352 | 353 | ||||||||||||
| Atlantic Coppera | 403 | 57 | ||||||||||||
| Other | 23 | 24 | ||||||||||||
| Total debt | 9,298 | 8,948 | ||||||||||||
| Less current portion of debt | (383) | (41) | ||||||||||||
| Long-term debt | $ | 8,915 | $ | 8,907 |
a.Includes short-term lines of credit used for working capital requirements, with interest rates primarily based on the Secured Overnight Financing Rate plus a spread.
Revolving Credit Facilities. FCX and PTFI 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 a $1.5 billion sublimit on the issuance of letters of credit and a $500 million limit on PTFI’s borrowing capacity. At September 30, 2025, there were no borrowings and $5 million in letters of credit issued under FCX’s revolving credit facility.
At September 30, 2025, PTFI had $250 million in borrowings outstanding under its $1.75 billion unsecured revolving credit facility that matures in November 2028, and Cerro Verde had no borrowings outstanding under its $350 million unsecured revolving credit facility that matures in May 2027.
At September 30, 2025, FCX, PTFI and Cerro Verde were in compliance with each of their respective credit facility’s covenants.
Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $182 million in third-quarter 2025, $173 million in third-quarter 2024, $537 million for the first nine months of 2025 and $529 million for the first nine months of 2024.
Capitalized interest, which primarily related to FCX’s mining operations’ capital projects, including construction and development of PTFI’s new smelter and precious metals refinery (collectively, PTFI’s downstream processing facilities), totaled $75 million in third-quarter 2025, $101 million in third-quarter 2024, $278 million for the first nine months of 2025 and $280 million for the first nine months of 2024.
Share Repurchase Program and Dividends. During the first nine months of 2025, FCX acquired 2.9 million shares of its common stock for a total cost of $107 million ($36.41 average cost per share). As of October 31, 2025, FCX has acquired a total of 52 million shares ($38.51 average cost per share) and has $3.0 billion available under its current share repurchase program.
On September 24, 2025, FCX’s Board of Directors (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 November 3, 2025, to shareholders of record as of October 15, 2025.
The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of FCX’s Board and management, respectively, and are subject to a number of factors, including not exceeding FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by FCX’s Board or management, as applicable. FCX’s share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.
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 North America 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 nine-month periods ended September 30, 2025 and 2024. At September 30, 2025, FCX held copper futures and swap contracts that qualified for hedge accounting for 117 million pounds at an average contract price of $4.75 per pound, with maturities through September 2027.
Summary of (Losses) Gains. A summary of realized and unrealized (losses) gains 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 | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Copper futures and swap contracts: | |||||||||||||||||||||||
| Unrealized (losses) gains: | |||||||||||||||||||||||
| Derivative financial instruments | $ | (23) | $ | 12 | $ | 44 | $ | 22 | |||||||||||||||
| Hedged item – firm sales commitments | 23 | (12) | (44) | (22) | |||||||||||||||||||
| Realized gains: | |||||||||||||||||||||||
| Matured derivative financial instruments | 1 | — | 31 | 29 |
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 settlement 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 copper settlement price 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 settlement 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 because 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 copper forward price 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 September 30, 2025, follows:
| Open Positions | Average Price Per Unit | Maturities Through | |||||||||||||||||||||
| Contract | Market | ||||||||||||||||||||||
| Embedded derivatives in provisional sales contracts: | |||||||||||||||||||||||
| Copper (millions of pounds) | 402 | $ | 4.43 | $ | 4.65 | February 2026 | |||||||||||||||||
| Gold (thousands of ounces) | 53 | 3,429 | 3,833 | October 2025 | |||||||||||||||||||
| Embedded derivatives in provisional purchase contracts: | |||||||||||||||||||||||
| Copper (millions of pounds) | 111 | 4.43 | 4.65 | December 2025 |
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 September 30, 2025, Atlantic Copper held net copper forward sales contracts for 52 million pounds at an average contract price of $4.51 per pound, with maturities through November 2025.
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 | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Embedded derivatives in provisional sales contracts:a | |||||||||||||||||||||||
| Copper | $ | 82 | $ | 29 | $ | 232 | $ | 276 | |||||||||||||||
| Gold and other metals | 71 | 81 | 131 | 170 | |||||||||||||||||||
| Copper forward contractsb | (7) | (19) | (47) | (45) | |||||||||||||||||||
a.Amounts recorded in revenues.
b.Amounts recorded in cost of sales as production and delivery costs.
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 September 30, 2025, the maximum amount of credit exposure associated with derivative transactions was $131 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).
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:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||
| Balance sheet components: | |||||||||||||||||
| Cash and cash equivalents | $ | 4,318 | $ | 3,923 | |||||||||||||
| Restricted cash and cash equivalents, current | 230 | a | 888 | b | |||||||||||||
| Restricted cash and cash equivalents, long-term - included in other assets | 105 | 100 | |||||||||||||||
| Total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows | $ | 4,653 | $ | 4,911 |
a.Reflects cash designated for talc-related litigation in accordance with a legal settlement. Refer to Note 7 for further discussion.
b.Included $0.7 billion associated with a portion of PTFI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation.
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 does not have any significant Level 3 assets or liabilities.
FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for 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 September 30, 2025 | |||||||||||||||||||||||||||||||||||
| Carrying | Fair Value | ||||||||||||||||||||||||||||||||||
| Amount | Total | NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Investment securities:a,b | |||||||||||||||||||||||||||||||||||
| U.S. core fixed income fund | $ | 29 | $ | 29 | $ | 29 | $ | — | $ | — | $ | — | |||||||||||||||||||||||
| Equity securities | 27 | 27 | — | 27 | — | — | |||||||||||||||||||||||||||||
| Total | 56 | 56 | 29 | 27 | — | — | |||||||||||||||||||||||||||||
| Legally restricted funds:a | |||||||||||||||||||||||||||||||||||
| U.S. core fixed income fund | 70 | 70 | 70 | — | — | — | |||||||||||||||||||||||||||||
| Government mortgage-backed securities | 59 | 59 | — | — | 59 | — | |||||||||||||||||||||||||||||
| Corporate bonds | 35 | 35 | — | — | 35 | — | |||||||||||||||||||||||||||||
| Government bonds and notes | 31 | 31 | — | — | 31 | — | |||||||||||||||||||||||||||||
| Money market funds | 20 | 20 | — | 20 | — | — | |||||||||||||||||||||||||||||
| Asset-backed securities | 14 | 14 | — | — | 14 | — | |||||||||||||||||||||||||||||
| Collateralized mortgage-backed securities | 1 | 1 | — | — | 1 | — | |||||||||||||||||||||||||||||
| Total | 230 | 230 | 70 | 20 | 140 | — | |||||||||||||||||||||||||||||
| Derivatives:c | |||||||||||||||||||||||||||||||||||
| Embedded derivatives in provisional sales/purchase contracts in a gross asset position | 109 | 109 | — | — | 109 | — | |||||||||||||||||||||||||||||
| Copper futures and swap contracts | 18 | 18 | — | 11 | 7 | — | |||||||||||||||||||||||||||||
| Copper forward contracts | 4 | 4 | — | 2 | 2 | — | |||||||||||||||||||||||||||||
| Total | 131 | 131 | — | 13 | 118 | — | |||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Derivatives:c | |||||||||||||||||||||||||||||||||||
| Embedded derivatives in provisional sales/purchase contracts in a gross liability position | 24 | 24 | — | — | 24 | — | |||||||||||||||||||||||||||||
| Copper futures and swap contracts | 3 | 3 | — | — | 3 | — | |||||||||||||||||||||||||||||
| Copper forward contracts | 11 | 11 | — | 6 | 5 | — | |||||||||||||||||||||||||||||
| Total | 38 | 38 | — | 6 | 32 | — | |||||||||||||||||||||||||||||
| Debtd | 9,298 | 9,363 | — | — | 9,363 | — | |||||||||||||||||||||||||||||
| At December 31, 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 | 9 | 9 | — | 9 | — | — | |||||||||||||||||||||||||||||
| Total | 36 | 36 | 27 | 9 | — | — | |||||||||||||||||||||||||||||
| Legally restricted funds:a | |||||||||||||||||||||||||||||||||||
| U.S. core fixed income fund | 66 | 66 | 66 | — | — | — | |||||||||||||||||||||||||||||
| Government mortgage-backed securities | 54 | 54 | — | — | 54 | — | |||||||||||||||||||||||||||||
| Government bonds and notes | 34 | 34 | — | — | 34 | — | |||||||||||||||||||||||||||||
| Corporate bonds | 31 | 31 | — | — | 31 | — | |||||||||||||||||||||||||||||
| Money market funds | 19 | 19 | — | 19 | — | — | |||||||||||||||||||||||||||||
| Asset-backed securities | 12 | 12 | — | — | 12 | — | |||||||||||||||||||||||||||||
| Collateralized mortgage-backed securities | 1 | 1 | — | — | 1 | — | |||||||||||||||||||||||||||||
| Total | 217 | 217 | 66 | 19 | 132 | — | |||||||||||||||||||||||||||||
| Derivatives:c | |||||||||||||||||||||||||||||||||||
| Embedded derivatives in provisional sales/purchase contracts in a gross asset position | 10 | 10 | — | — | 10 | — | |||||||||||||||||||||||||||||
| Copper forward contracts | 10 | 10 | — | 4 | 6 | — | |||||||||||||||||||||||||||||
| Total | 20 | 20 | — | 4 | 16 | — | |||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Derivatives:c | |||||||||||||||||||||||||||||||||||
| Embedded derivatives in provisional sales/purchase contracts in a gross liability position | 60 | 60 | — | — | 60 | — | |||||||||||||||||||||||||||||
| Copper futures and swap contracts | 28 | 28 | — | 17 | 11 | — | |||||||||||||||||||||||||||||
| Copper forward contracts | 1 | 1 | — | 1 | — | — | |||||||||||||||||||||||||||||
| Total | 89 | 89 | — | 18 | 71 | — | |||||||||||||||||||||||||||||
| Debtd | 8,948 | 8,807 | — | — | 8,807 | — | |||||||||||||||||||||||||||||
a.Current portion included in other current assets and long-term portion included in other assets.
b.Excludes restricted cash and cash equivalents (which approximated fair value), primarily associated with talc-related litigation at September 30, 2025, and PTFI’s export proceeds at December 31, 2024. Refer to Note 5.
c.Refer to Note 5 for further discussion.
d.Recorded at cost except for debt assumed in the 2007 acquisition of Freeport Minerals Corporation (FMC), which was recorded at fair value at the acquisition date.
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 copper forward prices and the adjusted London gold prices 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.
Debt 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 September 30, 2025, as compared with those techniques used at December 31, 2024.
NOTE 7. CONTINGENCIES AND COMMITMENTS
Environmental
There were no significant updates to environmental obligations included in Note 10 of FCX’s 2024 Form 10-K, other than as discussed below.
As a result of the 2007 acquisition of FMC, FCX recorded FMC environmental obligations at fair value on the acquisition date in accordance with business combination accounting guidance. In connection with FCX’s ongoing review and monitoring of these environmental remediation sites, FCX identified specific projects with environmental obligations where it can no longer be concluded that a probable liability exists. Accordingly, during third-quarter 2025, FCX recorded reductions totaling $81 million to the related environmental obligations reflecting closure of these projects.
Historical Smelter Sites. In July 2025, the New Jersey Department of Environmental Protection accepted FCX’s proposal for alternative remediation standards for sediment remediation in Arthur Kill, the water body adjacent to the former Carteret smelter site, which resulted in a $46 million increase to the related environmental obligation.
In third-quarter 2025, FCX also recorded an increase to its environmental obligation associated with the Carteret smelter site totaling $19 million based on updated cost estimates for the remediation work.
Litigation
There were no significant updates to previously reported legal proceedings included in Note 10 of FCX’s 2024 Form 10-K, other than the matter discussed below.
Asbestos and Talc Claims. The claimants in both the Imerys Talc America (Imerys) and Cyprus Mines Corporation (Cyprus Mines) bankruptcy cases previously approved a global settlement, which remains subject to bankruptcy court approvals in both cases. During third-quarter 2025, the parties agreed that “foreign claimants” (as defined in the amended plan) would not be discharged. In accordance with the global settlement, as amended, Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX and Cyprus Mines’ parent company, agreed to contribute $195 million in the aggregate over seven years to a proposed claimant trust. There can be no assurance that the amended plan will be approved by the bankruptcy court.
In addition, in 2024, Cyprus Mines and Imerys entered into a settlement agreement with Johnson & Johnson (J&J), which became effective in February 2025. In accordance with the settlement agreement, (i) all indemnity claims
against J&J were released, and Imerys and Cyprus Mines waived claims against insurers that could lead to the insurers asserting claims against J&J; (ii) J&J agreed to pay $505 million to Imerys and Cyprus Mines (shared 50/50 between the two parties); and (iii) J&J agreed to remit recoveries of certain legacy insurance claims to Imerys and Cyprus Mines. In accordance with the settlement, Cyprus Mines received cash of $230 million during the first nine months of 2025, with $48 million remaining to be received by early 2026. At September 30, 2025, FCX had a total litigation reserve of $477 million associated with the global settlement, including $278 million associated with the J&J settlement and $4 million for potential foreign claims.
Indonesia Matters
Refer to Notes 10, 11 and 12 of FCX’s 2024 Form 10-K for further discussion of Indonesia matters.
Grasberg Minerals District Mud Rush Incident. On September 8, 2025, PTFI experienced a mud rush incident that resulted in seven fatalities. During the incident, which was unprecedented in PTFI’s multi-decade history of block cave mining in the Grasberg minerals district, a sudden rush of approximately 800,000 metric tons of wet material entered the Grasberg Block Cave underground mine from the former Grasberg open pit and traveled rapidly to multiple levels of the mine, including a service level where seven team members were later found deceased.
Mining operations were temporarily suspended following the incident to prioritize the recovery of the seven team members fatally injured during the incident and to conduct an investigation into the root cause of the incident. The recovery efforts were completed on October 5, 2025, and the investigation is advancing toward completion. Damage assessments, which are expected to be completed by year-end 2025, are being conducted in parallel with ongoing mud removal activities.
In late October 2025, PTFI restarted operations at the unaffected Big Gossan and Deep Mill Level Zone underground mines.
Smelting operations in Indonesia operated with limited availability since the incident and both smelters are currently on stand-by status pending the delivery of copper concentrate.
FCX and PTFI, including external experts, are completing an investigation of the root cause of the incident and to identify actions required to safeguard against recurrence. In parallel, and in coordination with Indonesia government authorities, future production plans are being evaluated and damage assessments are being completed.
During third-quarter 2025, PTFI recorded charges totaling $195 million associated with the mud rush incident, including $152 million for idle facility costs and $43 million related to recovery efforts. During the phased restart and ramp-up of operations in fourth-quarter 2025 and in 2026, a portion of PTFI’s cost of sales are expected to be recognized as idle facility costs, which are non-inventoriable costs.
As of September 30, 2025, PTFI had limited access to the area where the incident occurred and was unable to adequately assess damage to the impacted assets. Accordingly, no impairment charges were recorded in third-quarter 2025. Upon completion of damage assessments and evaluation of the affected infrastructure in fourth-quarter 2025, PTFI expects to write-off the carrying value of assets determined to be damaged beyond repair. Furthermore, FCX does not believe the incident indicates a broader impairment of PTFI’s long-lived mining assets based on PTFI’s reserve life, favorable market outlook for metal prices and expected resumption of operations at the Grasberg Block Cave underground mine in the near term.
PTFI is seeking recovery of damages under its property and business interruption insurance policies, which cover up to $1.0 billion in losses (subject to a limit of $0.7 billion on underground incidents), after a $0.5 billion deductible. PTFI’s ability to recover damages under its insurance coverage with respect to the mud rush incident is subject to certain conditions. Any amounts recoverable under PTFI’s insurance policies will be reflected in future periods in which recovery is considered realizable in accordance with the gain contingency accounting guidance.
As a result of the incident and impact on operations, PTFI has also notified certain commercial counterparties of a force majeure under its contracts.
Concentrate Exports. PTFI’s copper concentrate export license for 1.4 million metric tons of copper concentrate (subject to a 7.5% export duty) expired on September 16, 2025.
Long-Term Mining Rights. With the completion of PTFI’s downstream processing facilities during 2025, FCX and PTFI have advanced discussions with the Indonesia government for a long-term extension of PTFI’s operating rights beyond the current expiration of 2041. An extension would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly attractive Grasberg minerals district.
PTFI is preparing its application for a long-term extension expected to cover the life of the resource, which is expected to be submitted in fourth-quarter 2025. In connection with the extension, PTFI expects to pursue additional exploration, conduct studies for future additional development and expand its social programs. FCX expects to maintain its ownership interest of approximately 49% through 2041 and would transfer an additional interest in PTFI to a state-owned enterprise beginning in 2042, leaving FCX to hold an approximately 37% interest. FCX also expects the existing governance agreements would continue over the life of the resource.
Export Proceeds. Effective March 1, 2025, the Indonesia government implemented a new regulation for export proceeds that requires 100% of export proceeds to be deposited in Indonesia banks for 12 months. The regulation allows the use of funds for ongoing business requirements, including dividends to shareholders, payment of taxes and other obligations to the Indonesia government, payment for materials or capital expenditures that are not available domestically and repayment of loans. Because PTFI has the ability to utilize its export proceeds to fund business requirements, these deposits are classified as cash and cash equivalents.
Smelter Assurance. In March 2025, assurance bonds and funds required to be held in escrow to support commitment for smelter development were released following approval from the Indonesia government that PTFI’s smelter development obligation had been met.
Administrative Fine. In March 2025, PTFI paid $59 million for an administrative fine that was previously assessed by the Indonesia government for delays in smelter development. The fine was fully accrued at year-end 2024.
NOTE 8. BUSINESS SEGMENTS
FCX has organized its mining operations into four primary divisions – U.S. copper mines, South America operations, Indonesia operations and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments, including the Cerro Verde copper mine, Indonesia operations (including the Grasberg minerals district and PTFI’s downstream processing facilities), and U.S. Rod & Refining operations. FCX has also separately disclosed the Morenci copper mine and Atlantic Copper Smelting & Refining segments in the following tables.
FCX's Chief Executive Officer is identified as its chief operating decision maker (CODM) under business segment reporting guidance. Operating income (loss) is the financial measure of profit or loss used by the CODM to review segment results, and the significant segment expenses reviewed by the CODM are consistent with the operating expense line items presented in FCX’s consolidated statements of income. The CODM uses operating income (loss) to assess segment performance against forecasted results and to allocate resources, including capital investment in mining operations and potential expansions.
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 operating 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 operating 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 individual operating segment would be if it was an independent entity.
Product Revenues. FCX’s revenues attributable to the products it sold for the third quarters and for the first nine months of 2025 and 2024 follow:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Copper: | ||||||||||||||||||||||||||
| Concentrate | $ | 1,967 | $ | 1,788 | $ | 5,376 | $ | 5,204 | ||||||||||||||||||
| Cathode | 1,817 | 2,072 | 6,015 | 6,304 | ||||||||||||||||||||||
| Rod and other refined copper products | 1,330 | 1,012 | 3,259 | 2,939 | ||||||||||||||||||||||
| Purchased coppera | 18 | 150 | 489 | 558 | ||||||||||||||||||||||
| Gold | 1,204 | 1,394 | 3,512 | 3,497 | ||||||||||||||||||||||
| Molybdenum | 504 | 450 | 1,425 | 1,339 | ||||||||||||||||||||||
| Silver and other | 223 | 173 | 535 | 470 | ||||||||||||||||||||||
| Adjustments to revenues: | ||||||||||||||||||||||||||
| PTFI export dutiesb | (135) | (129) | (337) | (360) | ||||||||||||||||||||||
| Royalty expensec | (107) | (131) | (310) | (344) | ||||||||||||||||||||||
| Treatment chargesd | (2) | (99) | (45) | (318) | ||||||||||||||||||||||
| Revenues from contracts with customers | 6,819 | 6,680 | 19,919 | 19,289 | ||||||||||||||||||||||
| Embedded derivativese | 153 | 110 | 363 | 446 | ||||||||||||||||||||||
| Total consolidated revenues | $ | 6,972 | $ | 6,790 | $ | 20,282 | $ | 19,735 |
a.FCX purchases copper cathode primarily for processing by its U.S. Rod & Refining operations. During 2025, FCX has been able to meet customer demand for copper rod with copper cathode produced by its U.S. copper mines and South America operations, resulting in a decrease in purchased copper volumes.
b.Prior to the expiration of its export license on September 16, 2025, PTFI was assessed export duties on copper concentrate sales at a rate of 7.5%.
c.Reflects royalties on sales from PTFI and Cerro Verde that will vary with the volume of metal sold and prices.
d.Revenues from our copper concentrate sales are recorded net of treatment charges, which will vary with the sales volumes and the price of copper. The 2025 periods primarily reflect lower treatment charge rates as a result of favorable market conditions.
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, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Copper Mines | South America Operations | U.S. | Copper | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cerro | Indonesia | Molybdenum | Rod & | Smelting | & Elimi- | FCX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Morenci | Other | Total | Verde | Other | Total | Operations | Mines | Refining | & Refining | nations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 46 | $ | 12 | $ | 58 | $ | 979 | $ | 204 | $ | 1,183 | $ | 2,675 | $ | — | $ | 1,774 | $ | 768 | $ | 514 | a | $ | 6,972 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 653 | 1,229 | 1,882 | 226 | 5 | 231 | — | 177 | 12 | 6 | (2,308) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 499 | 895 | 1,394 | 636 | 166 | 802 | 1,024 | b | 150 | 1,773 | 753 | (1,691) | 4,205 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization (DD&A) | 55 | 79 | 134 | 97 | 17 | 114 | 331 | b | 22 | 2 | 7 | 15 | 625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | — | 1 | 1 | 2 | — | 2 | 36 | — | — | 7 | 85 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 11 | 4 | 15 | 3 | — | 3 | 2 | — | — | — | 35 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sales of assets | — | — | — | — | — | — | — | — | — | — | (16) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 134 | 262 | 396 | 467 | 26 | 493 | 1,282 | 5 | 11 | 7 | (222) | 1,972 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | — | — | — | (5) | — | (5) | (25) | — | — | (8) | (69) | (107) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (1) | 3 | 2 | 17 | 6 | 23 | 16 | — | (1) | (1) | 20 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Provision for) benefit from income taxes | — | — | — | (192) | (10) | (202) | (466) | — | — | 3 | (4) | (669) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net (losses) earnings | — | — | — | — | — | — | (9) | — | — | — | 1 | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | — | — | — | (143) | (2) | (145) | (436) | — | — | — | 8 | (573) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 674 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets at September 30, 2025 | 3,289 | 7,342 | 10,631 | 8,290 | 2,147 | 10,437 | 27,464 | 2,037 | 389 | 1,615 | 4,255 | 56,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 66 | 249 | 315 | 99 | 11 | 110 | 483 | 28 | 19 | 42 | 59 | 1,056 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 40 | $ | 12 | $ | 52 | $ | 886 | $ | 237 | $ | 1,123 | $ | 2,856 | $ | — | $ | 1,560 | $ | 759 | $ | 440 | a | $ | 6,790 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 553 | 986 | 1,539 | 193 | — | 193 | 126 | 132 | 11 | 6 | (2,007) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 492 | 811 | 1,303 | 630 | c | 187 | 817 | 918 | 140 | 1,562 | 754 | (1,417) | d | 4,077 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DD&A | 47 | 62 | 109 | 92 | 18 | 110 | 340 | 19 | 2 | 6 | 14 | 600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | — | 1 | 1 | 2 | — | 2 | 32 | — | — | 6 | 76 | 117 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 4 | 4 | 8 | 3 | (1) | 2 | 2 | — | — | — | 26 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 20 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 50 | 120 | 170 | 352 | 33 | 385 | 1,690 | (27) | 7 | (1) | (286) | 1,938 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | — | — | — | (6) | — | (6) | (10) | — | — | (10) | (46) | (72) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (1) | 10 | 9 | 22 | (2) | 20 | 42 | — | (1) | (7) | 34 | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Provision for) benefit from income taxes | — | — | — | (148) | (10) | (158) | (625) | — | — | (1) | 47 | (737) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net earnings | — | — | — | — | — | — | 6 | — | — | — | 4 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | — | — | — | (114) | e | (12) | (126) | (601) | — | — | — | 17 | (710) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets at September 30, 2024 | 3,172 | 6,647 | 9,819 | 8,276 | 2,013 | 10,289 | 27,474 | 1,955 | 294 | 1,491 | 4,078 | 55,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 48 | 215 | 263 | 82 | 18 | 100 | 713 | 25 | 7 | 28 | 63 | 1,199 |
Financial Information by Business Segment (continued)
| Atlantic | Corporate, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Copper Mines | South America Operations | U.S. | Copper | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cerro | Indonesia | Molybdenum | Rod & | Smelting | & Elimi- | FCX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Morenci | Other | Total | Verde | Other | Total | Operations | Mines | Refining | & Refining | nations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 192 | $ | 184 | $ | 376 | $ | 2,732 | $ | 599 | $ | 3,331 | $ | 7,658 | $ | — | $ | 5,090 | $ | 2,335 | $ | 1,492 | a | $ | 20,282 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 1,706 | 3,202 | 4,908 | 593 | 127 | 720 | 4 | 534 | 29 | 12 | (6,207) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 1,353 | 2,467 | 3,820 | 1,813 | 545 | 2,358 | 2,726 | b | 400 | 5,088 | 2,278 | (4,427) | f | 12,243 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DD&A | 151 | 225 | 376 | 282 | 56 | 338 | 906 | b | 74 | 4 | 21 | 40 | 1,759 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1 | 2 | 3 | 5 | 1 | 6 | 98 | — | — | 23 | 282 | 412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 25 | 15 | 40 | 9 | 2 | 11 | 5 | 1 | — | — | 83 | 140 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | (7) | — | (7) | — | — | — | — | — | — | — | 44 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sales of assets | — | — | — | — | — | — | — | — | — | — | (16) | (16) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 375 | 677 | 1,052 | 1,216 | 122 | 1,338 | 3,927 | 59 | 27 | 25 | (721) | 5,707 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | — | (1) | (1) | (13) | — | (13) | (50) | — | — | (26) | (169) | (259) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (3) | 7 | 4 | 69 | 7 | 76 | 47 | (1) | (2) | (20) | 54 | 158 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | — | — | — | (502) | (44) | (546) | (1,431) | — | — | (9) | (33) | (2,019) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net earnings | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | (374) | (23) | (397) | (1,359) | — | — | — | (33) | (1,789) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 1,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 195 | 648 | 843 | 251 | 36 | 287 | 1,927 | 74 | 62 | 130 | 166 | 3,489 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 90 | $ | 62 | $ | 152 | $ | 2,787 | $ | 699 | $ | 3,486 | $ | 7,689 | $ | — | $ | 4,742 | $ | 2,330 | $ | 1,336 | a | $ | 19,735 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 1,680 | 2,797 | 4,477 | 477 | — | 477 | 386 | 415 | 32 | 8 | (5,795) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 1,389 | 2,289 | 3,678 | 1,912 | c | 538 | 2,450 | 2,451 | 393 | 4,741 | 2,263 | (4,180) | d | 11,796 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DD&A | 140 | 187 | 327 | 281 | 51 | 332 | 923 | 51 | 4 | 20 | 47 | 1,704 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1 | 2 | 3 | 6 | — | 6 | 93 | — | — | 21 | 261 | 384 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 13 | 21 | 34 | 9 | 2 | 11 | 8 | — | — | — | 62 | 115 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 115 | 115 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 227 | 360 | 587 | 1,056 | 108 | 1,164 | 4,600 | (29) | 29 | 34 | (764) | 5,621 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | — | (1) | (1) | (16) | — | (16) | (17) | — | — | (28) | (187) | (249) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (1) | 9 | 8 | 38 | 11 | 49 | 110 | — | (1) | 1 | 128 | 295 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Provision for) benefit from income taxes | — | — | — | (430) | (45) | (475) | (1,524) | g | — | — | 11 | (15) | (2,003) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net earnings | — | — | — | — | — | — | 7 | — | — | — | 7 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | (332) | e | (48) | (380) | (1,664) | g | — | — | — | (19) | (2,063) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 1,615 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 139 | 604 | 743 | 209 | 63 | 272 | 2,203 | 88 | 23 | 88 | 152 | 3,569 |
Financial Information by Business Segment (continued)
a.Includes revenues from the molybdenum sales company, which includes sales of molybdenum produced by FCX’s primary molybdenum mines and by certain of the U.S. copper mines and the Cerro Verde mine.
b.Includes charges totaling $195 million in the third quarter and first nine months of 2025 associated with the September 2025 mud rush incident, consisting of $128 million of idle facility costs and $43 million of recovery expenses that were recorded to production and delivery costs, and $24 million of DD&A associated with idle facilities.
The third quarter and first nine months of 2025 also include $26 million and $56 million, respectively, recorded to production and delivery costs for remediation related to the October 2024 fire incident at the smelter not recoverable under PTFI’s construction insurance program.
In addition, the third quarter and first nine months of 2025 include $39 million of tolling fees recorded to production and delivery costs that were recognized as idle facility costs associated with PT Smelting’s (PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia) planned maintenance turnaround.
c.Includes $34 million in third-quarter 2024 and $99 million for the first nine months of 2024 of nonrecurring labor-related charges at Cerro Verde associated with new collective labor agreements.
d.Includes charges for oil and gas properties associated with the write down of a historical contingent consideration asset totaling $32 million in the third quarter and first nine months of 2024. The first nine months of 2024 also includes $99 million for assumed oil and gas abandonment obligations (and related adjustments) resulting from bankruptcies of other companies.
e.Prior to September 2024, FCX’s interest in Cerro Verde was 53.56%.
f.Includes charges totaling $73 million for the first nine months of 2025 associated with planned maintenance turnaround costs at the Miami smelter.
g.Includes a net benefit to income taxes totaling $182 million for the first nine months of 2024 associated with the closure of PTFI’s 2021 corporate income tax audit and resolution of the framework for disputed tax matters. FCX's economic and ownership interest in PTFI is 48.76% except for net income associated with the settlement of these historical tax matters, which was attributed based on the economics prior to January 1, 2023 (i.e., approximately 81% to FCX and 19% to PT Mineral Industri Indonesia). Refer to Note 2 of FCX’s 2024 Form 10-K for further discussion.
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 September 30, 2025, the related consolidated statements of income, comprehensive income, and equity for the three- and nine-month periods ended September 30, 2025 and 2024, the related consolidated statements of cash flows for the nine-month periods ended September 30, 2025 and 2024, 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, 2024, 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 14, 2025, 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, 2024, 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
November 6, 2025
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