Freeport-McMoRan · Earnings release

Freeport Reports

Third-Quarter and Nine-Month 2024 Results

•Strong operating performance

◦Third-quarter 2024 copper and gold sales volumes above July 2024 estimates

◦Third-quarter 2024 unit net cash costs below July 2024 estimate and third-quarter 2023

•Progressing options for long-term organic growth

•Favorable market fundamentals and outlook

▪Net income attributable to common stock in third-quarter 2024 totaled $526 million, $0.36 per share, and adjusted net income attributable to common stock totaled $556 million, $0.38 per share.

▪Consolidated production totaled 1.1 billion pounds of copper, 456 thousand ounces of gold and 20 million pounds of molybdenum in third-quarter 2024.

▪Consolidated sales totaled 1.0 billion pounds of copper, 558 thousand ounces of gold and 19 million pounds of molybdenum in third-quarter 2024.

▪G1G2G3Consolidated sales are expected to approximate 4.1 billion pounds of copper, 1.8 million ounces of gold and 80 million pounds of molybdenum for the year 2024, including 980 million pounds of copper, 340 thousand ounces of gold and 20 million pounds of molybdenum in fourth-quarter 2024.

▪Average realized prices were $4.30 per pound for copper, $2,568 per ounce for gold and $22.88 per pound for molybdenum in third-quarter 2024.

▪Average unit net cash costs were $1.39 per pound of copper in third-quarter 2024. G4Unit net cash costs are expected to average $1.58 per pound of copper for the year 2024.

▪Operating cash flows totaled $1.9 billion in third-quarter 2024. G5Operating cash flows are expected to approximate $6.8 billion for the year 2024, net of $0.4 billion of working capital and other uses, for the year 2024, based on achievement of current sales volume and cost estimates, and assuming average prices of $4.25 per pound for copper, $2,600 per ounce for gold and $20.00 per pound for molybdenum in fourth-quarter 2024.

▪Capital expenditures totaled $1.2 billion, including $0.4 billion for major mining projects and $0.3 billion for PT Freeport Indonesia’s (PT-FI) new smelter and precious metals refinery (PMR) (collectively, PT-FI’s new downstream processing facilities), in third-quarter 2024. G6Capital expenditures for the year 2024 are expected to approximate $4.6 billion, including $2.2 billion for major mining projects and $1.0 billion for PT-FI’s new downstream processing facilities (excluding capitalized interest, owner’s costs and commissioning).

▪At September 30, 2024, consolidated debt totaled $9.7 billion and consolidated cash and cash equivalents totaled $5.0 billion ($6.0 billion including $1.0 billion of current restricted cash associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks). Net debt totaled $0.5 billion, excluding $3.2 billion of debt for PT-FI’s new downstream processing facilities. Refer to the supplemental schedule, “Net Debt,” on page IX.

▪In September 2024, FCX purchased 5.3 million shares of Cerro Verde common stock for a total cost of $210 million, increasing its ownership interest in Cerro Verde to 55.08% from 53.56%.

1

PHOENIX, AZ, October 22, 2024 – Freeport (NYSE: FCX) reported third-quarter 2024 net income attributable to common stock of $526 million, $0.36 per share, and adjusted net income attributable to common stock of $556 million, $0.38 per share, after excluding net charges totaling $30 million, $0.02 per share, primarily associated with impairments for legacy oil and gas matters and nonrecurring labor-contract charges at Cerro Verde, partly offset by a reduction in accruals for uncertain U.S. tax positions. For additional information, refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII.

Richard Adkerson, Chairman of the Board, and Kathleen Quirk, President and Chief Executive Officer, said, “During the third quarter, our global team generated strong margins and cash flows, achieved our production targets, continued to prioritize productivity and cost control, and advanced initiatives for future growth. We remain focused on strong execution of our plans globally as we work to address damage from a recent fire affecting a portion of our new Indonesia smelter facilities. We are confident in our team’s ability to restore smelter operations and achieve a safe and efficient ramp-up as soon as possible. The outlook for our business is positive, supported by our position as a leading copper producer with a strong financial profile, favorable market fundamentals and value enhancing options for future growth.”

SUMMARY FINANCIAL DATA

Three Months Ended September 30,

Nine Months Ended

(in millions, except per share amounts)

Revenuesa,b

$

$

$

$

Operating incomea,c

$

$

$

$

Net income attributable to common stockb,c,d

$

$

$

$

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

$

$

$

$

Diluted weighted-average common shares outstanding

Operating cash flowse

$

$

$

$

Capital expenditures

$

$

$

$

At September 30:

Cash and cash equivalents

$

$

$

$

Restricted cash and cash equivalents, currentf

$

$

$

$

Total debt, including current portion

$

$

$

$

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

b.Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(32) million ($(13) million to net income attributable to common stock or $(0.01) per share) in third-quarter 2024, $4 million ($2 million to net income attributable to common stock or less than $0.01 per share) in third-quarter 2023, $28 million ($9 million to net income attributable to common stock or $0.01 per share) for the first nine months of 2024 and $183 million ($62 million to net income attributable to common stock or $0.04 per share) for the first nine months of 2023. For further discussion, refer to the supplemental schedule, “Derivative Instruments,” beginning on page IX.

c.FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions) additions to operating income totaling $(42) million ($(13) million to net income attributable to common stock or $(0.01) per share) in third-quarter 2024, $81 million ($37 million to net income attributable to common stock or $0.03 per share) in third-quarter 2023, $79 million ($23 million to net income attributable to common stock or $0.02 per share) for the first nine months of 2024 and $153 million ($64 million to net income attributable to common stock or $0.04 per share) for the first nine months of 2023. Refer to the supplemental schedule, “Deferred Profits,” on page X.

d.Includes net charges totaling $30 million ($0.02 per share) in third-quarter 2024, $117 million ($0.08 per share) in third-quarter 2023, $81 million ($0.06 per share) for the first nine months of 2024 and $368 million ($0.25 per share) for the first nine months of 2023 that are described in the supplemental schedule, “Adjusted Net Income,” beginning on page VII.

e.Working capital and other uses totaled $5 million in third-quarter 2024, $482 million in third-quarter 2023, $29 million for the first nine months of 2024 and $684 million for the first nine months of 2023.

2

f.Includes $1.0 billion at September 30, 2024, and $0.5 billion at September 30, 2023, associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with Indonesia regulations.

SUMMARY OPERATING DATA

Three Months Ended September 30,

Nine Months Ended September 30,

Copper (millions of recoverable pounds)

Production

Sales, excluding purchases

Average realized price per pound

$

$

$

$

Site production and delivery costs per pounda

$

$

$

$

Unit net cash costs per pounda

$

b

$

$

b

$

Gold (thousands of recoverable ounces)

Production

Sales

Average realized price per ounce

$

$

$

$

Molybdenum (millions of recoverable pounds)

Production

Sales, excluding purchases

Average realized price per pound

$

$

$

$

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

b.Includes $0.03 per pound of copper for both the third quarter and first nine months of 2024 for nonrecurring labor-related charges at Cerro Verde associated with new collective labor agreements. Refer to “Operations - South America” for further discussion.

Consolidated Sales Volumes

•Third-quarter 2024 copper sales of 1.0 billion pounds were 2% above the July 2024 estimate. Third-quarter 2024 copper sales were 7% lower than third-quarter 2023 sales of 1.1 billion pounds, primarily reflecting the timing of shipments and lower ore grades and operating rates in North America.

•Third-quarter 2024 gold sales of 558 thousand ounces were 17% higher than the July 2024 estimate of 475 thousand ounces, primarily reflecting the timing of shipments and higher operating rates in Indonesia. Third-quarter 2024 gold sales were 40% higher than third-quarter 2023 sales of 399 thousand ounces, primarily reflecting the timing of shipments.

•Third-quarter 2024 molybdenum sales of 19 million pounds were in line with the July 2024 estimate and third-quarter 2023 sales of 20 million pounds.

Consolidated sales volumes for the year 2024 are expected to approximate 4.1 billion pounds of copper, 1.8 million ounces of gold and 80 million pounds of molybdenum, including 980 million pounds of copper, 340 thousand ounces of gold and 20 million pounds of molybdenum in fourth-quarter 2024.

Consolidated copper and gold production volumes for the year 2024 are expected to exceed 2024 sales volumes, reflecting the deferral of approximately 85 million pounds of copper and 85 thousand ounces of gold associated with inventories held at PT-FI’s new downstream processing facilities expected to be sold as refined metal in 2025.

Projected sales volumes are dependent on operational performance; continuation of copper concentrate exports during the restoration period of PT-FI’s new smelter; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below.

3

Consolidated Unit Net Cash Costs

Third-quarter 2024 consolidated average unit net cash costs (net of by-product credits) for FCX’s copper mines of $1.39 per pound of copper were lower than the July 2024 estimate of $1.71 per pound primarily reflecting higher gold credits at PT-FI. Third-quarter 2024 consolidated average unit net cash costs were also lower than third-quarter 2023 average unit net cash costs of $1.73 per pound of copper, primarily reflecting higher gold credits at PT-FI, partly offset by higher site production and delivery costs from North America and PT-FI. Refer to “Operations” below for further discussion.

Consolidated unit net cash costs (net of by-product credits) for FCX’s copper mines are expected to average $1.58 per pound of copper for the year 2024 (including $1.72 per pound of copper in fourth-quarter 2024), based on achievement of current sales volume (including estimates for the continuation of copper concentrate exports from Indonesia) and cost estimates and assuming average prices of $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. The impact of price changes during fourth-quarter 2024 on consolidated unit net cash costs for the year 2024 would approximate $0.01 per pound of copper for each $100 per ounce change in the average price of gold and $0.01 per pound of copper for each $2 per pound change in the average price of molybdenum.

OPERATIONS

Leaching Innovation Initiatives. FCX is continuing to advance a series of initiatives across its North America and South America operations to incorporate new applications, technologies and data analytics to its leaching processes. In late 2023, FCX achieved its initial incremental annual run rate target of approximately 200 million pounds of copper. Incremental copper production from these initiatives totaled 58 million pounds in third-quarter 2024 (compared with 46 million pounds in third-quarter 2023) and 164 million pounds for the first nine months of 2024 (compared with 97 million pounds for the first nine months of 2023). FCX is pursuing opportunities to apply recent operational enhancements on a larger scale and is testing new innovative technology applications that have the potential for significant increases in recoverable metal beyond the current run rate.

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

Development Activities. FCX has substantial reserves and future opportunities in the U.S., primarily associated with existing operations.

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

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

FCX has commenced pre-feasibility studies in the Safford/Lone Star district to define a potential significant expansion opportunity. Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a further expansion project. FCX expects to complete these studies in late 2025. The decision of whether to proceed and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors.

4

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

Three Months Ended September 30,

Nine Months Ended

Copper (millions of recoverable pounds)

Production

Sales, excluding purchases

Average realized price per pound

$

$

$

$

Molybdenum (millions of recoverable pounds)

Productiona

8

7

Unit net cash costs per pound of copperb

Site production and delivery, excluding adjustments

$

$

$

$

By-product credits

Treatment charges

Unit net cash costs

$

$

$

$

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

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

FCX’s consolidated copper sales volumes from North America of 316 million pounds in third-quarter 2024 were lower than third-quarter 2023 copper sales volumes of 372 million pounds, primarily reflecting lower operating rates and ore grades, as well as timing of shipments. G7North America copper sales are estimated to approximate 1.24 billion pounds for the year 2024.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $3.24 per pound of copper in third-quarter 2024 were higher than third-quarter 2023 average unit net cash costs of $2.70 per pound, primarily reflecting the impact of lower copper production volumes associated with lower ore grades.

G8Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $3.14 per pound of copper for the year 2024, based on achievement of current sales volume and cost estimates and assuming an average price of $20.00 per pound of molybdenum in fourth-quarter 2024. North America’s average unit net cash costs for the year 2024 would change by approximately $0.01 per pound for each $2 per pound change in the average price of molybdenum in fourth-quarter 2024.

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

In September 2024, FCX purchased 5.3 million shares of Cerro Verde common stock for $210 million, increasing its ownership interest in Cerro Verde to 55.08% from 53.56%.

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

5

Labor Matters. In October 2024, Cerro Verde completed a new four-year collective labor agreement (CLA) with one of its two unions and recorded nonrecurring charges of $34 million in third-quarter 2024 associated with the new CLA. The agreement follows the successful completion of a new CLA with a second union in April 2024. Cerro Verde now has multi-year agreements for its hourly workforce.

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

Three Months Ended September 30,

Nine Months Ended

Copper (millions of recoverable pounds)

Production

Sales

Average realized price per pound

$

$

$

$

Molybdenum (millions of recoverable pounds)

Productiona

6

6

Unit net cash costs per pound of copperb

Site production and delivery, excluding adjustments

$

c

$

$

c

$

By-product credits

Treatment charges

Royalty on metals

Unit net cash costs

$

$

$

$

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

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

c.Includes $0.12 per pound of copper in third-quarter 2024 and $0.11 per pound of copper for the first nine months of 2024 for nonrecurring labor-related charges at Cerro Verde associated with new CLAs. Refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII.

FCX’s consolidated copper sales volumes from South America operations of 293 million pounds in third-quarter 2024 were slightly lower than third-quarter 2023 copper sales volumes of 307 million pounds, primarily reflecting the timing of shipments and slightly lower copper production. G9Copper sales from South America operations are expected to approximate 1.2 billion pounds for the year 2024.

Average unit net cash costs (net of by-product credits) for South America operations of $2.44 per pound of copper in third-quarter 2024 were higher than third-quarter 2023 average unit net cash costs of $2.35 per pound, primarily reflecting nonrecurring labor-related charges at Cerro Verde associated with a new CLA with one of its two unions.

G10Average unit net cash costs (net of by-product credits) for South America operations are expected to approximate $2.47 per pound of copper for the year 2024 (including $0.08 per pound of copper for nonrecurring labor-related charges at Cerro Verde associated with its new CLAs), based on achievement of current sales volume and cost estimates and assuming an average price of $20.00 per pound of molybdenum in fourth-quarter 2024.

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

Regulatory Matters and Mining Rights. On July 2, 2024, PT-FI was granted copper concentrate and anode slimes export licenses, which are valid through December 2024. Pursuant to the Indonesia regulations, PT-FI will continue to pay a 7.5% export duty on copper concentrates. In connection with the recent fire event at PT-FI’s new

6

smelter facility and required remediation, PT-FI is working with the Indonesia government to allow continuity of copper concentrate exports until smelter operations are restored.

Pursuant to regulations issued during 2024, PT-FI is eligible to apply for an extension of its mining rights beyond 2041, provided certain conditions are met, including ownership of integrated downstream facilities that have entered the operational stage; domestic ownership of at least 51% and agreement with a state-owned enterprise for an additional 10% ownership; and commitments for additional exploration and increases in refining capacity, each as approved by the Ministry of Energy and Minerals. Application for extension may be submitted at any time up to one year prior to the expiration of its current special mining license (IUPK). PT-FI is currently preparing its application submittal. In connection with PT-FI’s application for extension, FCX is working to reach terms with PT Mineral Industri Indonesia (MIND ID) on a purchase and sale agreement for the transfer in 2041 of an additional 10% interest in PT-FI.

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

Operating and Development Activities. Over a multi-year investment period, PT-FI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone and Big Gossan). PT-FI is completing a mill recovery project with the installation of a new copper cleaner circuit, which is expected to begin commissioning in late 2024.

Kucing Liar. Long-term mine development activities are ongoing for PT-FI’s Kucing Liar deposit in the Grasberg minerals district. Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PT-FI’s operating rights beyond 2041 would extend the life of the project. Development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe, with capital investments estimated to average approximately $400 million per year over this period. At full operating rates, annual production from Kucing Liar is expected to approximate 560 million pounds of copper and 520 thousand ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production. Kucing Liar will benefit from substantial shared infrastructure and PT-FI’s experience and long-term success in block-cave mining.

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

Downstream Processing Facilities and October 14, 2024 Fire Incident. Start-up operations for PT-FI’s new downstream processing facilities in Gresik commenced during third-quarter 2024. During start-up activities, a fire occurred on October 14, 2024, in a gas cleaning facility (electrostatic precipitator plant) designed to remove particles from gases prior to conversion to sulphuric acid. There were no injuries and the fire was extinguished expeditiously.

The incident resulted in damage to infrastructure for the production of sulphuric acid required for the copper smelting process. Smelter operations have been temporarily suspended pending remediation activities. Damage and root cause assessments are in progress and plans are being developed to repair the damaged areas. In parallel, PT-FI is working with the Indonesia government to allow continued exports of copper concentrates until smelter operations are restored. In addition, PT-FI will seek recovery of repair costs under its insurance programs. Mining operations in Central Papua and the PMR project have not been impacted.

7

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

Three Months Ended September 30,

Nine Months Ended

Copper (millions of recoverable pounds)

Production

Sales

Average realized price per pound

$

$

$

$

Gold (thousands of recoverable ounces)

Production

Sales

Average realized price per ounce

$

$

$

$

Unit net cash (credits) costs per pound of coppera

Site production and delivery, excluding adjustments

$

$

$

$

Gold, silver and other by-product credits

Treatment charges

Export dutiesb

Royalty on metals

Unit net cash (credits) costs

$

$

$

$

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

b.Export duties of 2.5% were eliminated effective March 29, 2023, upon verification that construction progress of the new smelter exceeded 50% and were reinstated at a rate of 7.5% in July 2023 under a revised regulation. As discussed above, PT-FI will continue to pay export duties of 7.5% on copper concentrates.

PT-FI’s consolidated copper sales volumes in third-quarter 2024 of 426 million pounds were similar to third-quarter 2023 copper sales volumes of 430 million pounds.

PT-FI’s consolidated gold production volumes of 451 thousand ounces in third-quarter 2024 were 15% below third-quarter 2023 gold production volumes of 528 thousand ounces, primarily reflecting lower ore grades. PT-FI’s consolidated gold sales volumes of 554 thousand ounces in third-quarter 2024 were 40% higher than third-quarter 2023 gold sales volumes of 395 thousand ounces, primarily reflecting the timing of shipments.

G11G12Consolidated sales volumes from PT-FI are expected to approximate 1.65 billion pounds of copper and 1.8 million ounces of gold for the year 2024. Consolidated copper and gold production volumes from PT-FI for the year 2024 are expected to exceed 2024 sales volumes, reflecting the deferral of approximately 85 million pounds of copper and 85 thousand ounces of gold associated with inventories held at PT-FI’s new downstream processing facilities expected to be sold as refined metal in 2025. Projected sales volumes are dependent on operational performance; continuation of copper concentrate exports during the restoration period of PT-FI’s new smelter; weather-related conditions; and other factors detailed in the “Cautionary Statement” below.

PT-FI’s unit net cash credits (including gold, silver and other by-product credits) of $0.71 per pound of copper in third-quarter 2024 were favorable compared to unit net cash costs (net of gold, silver and other by-product credits) of $0.44 per pound of copper in third-quarter 2023, primarily reflecting higher gold credits.

G13Average unit net cash credits (including gold, silver and other by-product credits) for PT-FI are expected to approximate $0.23 per pound of copper for the year 2024, based on achievement of current sales volumes (including estimates for copper concentrate exports) and cost estimates and assuming an average price of $2,600 per ounce of gold in fourth-quarter 2024. PT-FI’s average unit net cash credits for the year 2024 would change by approximately $0.03 per pound of copper for each $100 per ounce change in the average price of gold in fourth-quarter 2024.

8

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

Operating and Development Activities. Production from the primary molybdenum operations totaled 6 million pounds of molybdenum in third-quarter 2024 and 7 million pounds in third-quarter 2023. FCX’s consolidated molybdenum sales and average realized prices include sales of molybdenum produced at the primary molybdenum operations and at FCX’s North America copper mines and South America operations, which are presented on page 3.

Average unit net cash costs for the primary molybdenum operations of $21.06 per pound of molybdenum in third-quarter 2024 were higher than average unit net cash costs of $18.07 per pound in third-quarter 2023, primarily reflecting higher costs for maintenance supplies and transitional contract labor and lower volumes. G14Average unit net cash costs for the primary molybdenum operations are expected to approximate $17.55 per pound of molybdenum for the year 2024, based on achievement of current sales volumes and cost estimates.

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

LIQUIDITY, CASH FLOWS, CASH AND DEBT

Liquidity. At September 30, 2024, FCX had $5.0 billion in consolidated cash and cash equivalents, $6.0 billion including $1.0 billion of current restricted cash associated with PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks. In addition, FCX has $3.0 billion of availability under its revolving credit facility, and PT-FI and Cerro Verde have $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.

Operating Cash Flows. FCX generated operating cash flows of $1.9 billion in third-quarter 2024 and $5.7 billion for the first nine months of 2024.

FCX’s consolidated operating cash flows are estimated to approximate $6.8 billion for the year 2024, net of $0.4 billion of working capital and other uses, based on current sales volume and cost estimates, and assuming average prices of $4.25 per pound of copper, $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024. The impact of price changes during fourth-quarter 2024 on operating cash flows for the year 2024 would approximate $90 million for each $0.10 per pound change in the average price of copper, $30 million for each $100 per ounce change in the average price of gold and $15 million for each $2 per pound change in the average price of molybdenum.

Capital Expenditures. Capital expenditures totaled $1.2 billion in third-quarter 2024, including $0.4 billion for major mining projects and $0.3 billion for PT-FI’s new downstream processing facilities, and $3.6 billion for the first nine months of 2024, including $1.3 billion for major mining projects and $1.0 billion for PT-FI’s new downstream processing facilities.

Capital expenditures are expected to approximate $4.6 billion for the year 2024, including $2.2 billion for major mining projects and $1.0 billion for PT-FI’s new downstream processing facilities (excluding capitalized interest, owner’s costs and commissioning). Projected capital expenditures for major mining projects include $1.2 billion for planned projects, primarily associated with underground mine development in the Grasberg minerals district and expansion projects in North America, and $1.0 billion for discretionary growth projects.

9

Cash. Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share and withholding taxes at September 30, 2024 (in billions):

Cash at domestic companies

$

Cash at international operations

a

Total consolidated cash and cash equivalents

Noncontrolling interests’ share

Cash, net of noncontrolling interests’ share

Withholding taxes

Net cash available

$

a.Excludes $1.0 billion of current restricted cash associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the Indonesia government.

Debt. Following is a summary of total debt and the weighted-average interest rates at September 30, 2024 (in billions, except percentages):

Weighted-

Average

Interest Rate

Senior notes:

Issued by FCX

$

Issued by PT-FI

Issued by Freeport Minerals Corporation

PT-FI revolving credit facility

Other

—

a

Total debt

$

a.Amount not shown because of rounding.

At September 30, 2024, there were no borrowings and $7 million in letters of credit issued under FCX’s $3.0 billion revolving credit facility. FCX has $0.7 billion in scheduled senior note maturities in November 2024, which it expects to redeem with cash on hand, with no further senior note maturities until 2027. FCX’s total debt has an average remaining duration of approximately 9 years.

At September 30, 2024, PT-FI had $250 million in borrowings outstanding under its $1.75 billion revolving credit facility, and Cerro Verde had no borrowings outstanding under its $350 million revolving credit facility.

FINANCIAL POLICY

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

Net Debt. At September 30, 2024, FCX’s net debt, excluding $3.2 billion of debt for PT-FI’s new downstream processing facilities, totaled $0.5 billion (which was net of $1.0 billion of current restricted cash associated with PT-FI’s export proceeds). Refer to the supplemental schedule, “Net Debt,” on page IX.

Common Stock Dividends. On September 25, 2024, FCX’s Board declared cash dividends totaling $0.15 per share on its common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which will be paid on November 1, 2024, to shareholders of record as of October 15, 2024. The declaration and payment of dividends (base or variable) are at the discretion of the Board and will depend on FCX’s financial results, cash requirements, global economic conditions and other factors deemed relevant by the Board.

Share Repurchase Program. As previously reported, FCX acquired 1.2 million shares of its common stock in July 2024 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 million shares for a cost of $1.9 billion ($38.64 average cost per share). As of October 21, 2024, FCX has 1.4 billion shares of common stock outstanding and $3.1 billion is available under its share repurchase program. The timing and amount of share repurchases is at the discretion of management and will depend on a variety of factors. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX’s third-quarter 2024 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing fcx.com. A replay of the webcast will be available through Friday, November 15, 2024.

-----------------------------------------------------------------------------------------------------------

FREEPORT: Foremost in Copper

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

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

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

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

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

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

applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks, including availability of secure water supplies; litigation results; tailings management; FCX’s ability to comply with its responsible production commitments under specific frameworks; and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” in FCX’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission.

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

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

FREEPORT

SELECTED OPERATING DATA

Three Months Ended September 30,

Production

Sales

COPPER (millions of recoverable pounds)

(FCX’s net interest in %)

North America

Morenci (72%)a

2

3

3

3

(1)

—

(1)

—

Total North America

South America

Total South America

Indonesia

Grasberg minerals district (48.76%)

Total

c

c

Less noncontrolling interests

Net

Average realized price per pound

$

$

GOLD (thousands of recoverable ounces)

(FCX’s net interest in %)

North America (100%)

5

4

4

4

Consolidated

Less noncontrolling interests

Net

Average realized price per ounce

$

$

MOLYBDENUM (millions of recoverable pounds)

(FCX’s net interest in %)

4

4

N/A

N/A

2

3

N/A

N/A

North America copper mines (100%)a

8

7

N/A

N/A

6

6

N/A

N/A

Consolidated

Less noncontrolling interests

3

3

3

2

Net

Average realized price per pound

$

$

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

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

c. Consolidated sales volumes exclude purchased copper of 36 million pounds in third-quarter 2024 and 18 million pounds in third-quarter 2023.

I

FREEPORT

SELECTED OPERATING DATA (continued)

Nine Months Ended September 30,

Production

Sales

COPPER (millions of recoverable pounds)

(FCX’s net interest in %)

North America

Morenci (72%)a

7

9

8

9

(4)

(5)

(4)

(5)

Total North America

South America

Total South America

Indonesia

Grasberg minerals district (48.76%)

Total

c

c

Less noncontrolling interests

Net

Average realized price per pound

$

$

GOLD (thousands of recoverable ounces)

(FCX’s net interest in %)

North America (100%)

d

d

Consolidated

Less noncontrolling interests

Net

Average realized price per ounce

$

$

MOLYBDENUM (millions of recoverable pounds)

(FCX’s net interest in %)

N/A

N/A

9

N/A

N/A

North America copper mines (100%)a

N/A

N/A

N/A

N/A

Consolidated

Less noncontrolling interests

7

8

7

7

Net

Average realized price per pound

$

$

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

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

c. Consolidated sales volumes exclude purchased copper of 142 million pounds for the first nine months of 2024 and 85 million pounds for the first nine months of 2023.

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

II

FREEPORT

SELECTED OPERATING DATA (continued)

Three Months Ended September 30,

Nine Months Ended September 30,

North Americaa

Leach Operations

Leach ore placed in stockpiles (metric tons per day)

Average copper ore grade (%)

Copper production (millions of recoverable pounds)

Mill Operations

Ore milled (metric tons per day)

Average ore grades (%):

Copper

Molybdenum

Copper recovery rate (%)

Production (millions of recoverable pounds):

Copper

Molybdenum

8

7

South America

Leach Operations

Leach ore placed in stockpiles (metric tons per day)

Average copper ore grade (%)

Copper production (millions of recoverable pounds)

Mill Operations

Ore milled (metric tons per day)

Average ore grades (%):

Copper

Molybdenum

Copper recovery rate (%)

Production (millions of recoverable pounds):

Copper

Molybdenum

6

6

Indonesia

Ore extracted and milled (metric tons per day):

Grasberg Block Cave underground mine

Deep Mill Level Zone underground mine

Big Gossan underground mine

Other adjustments

Total

Average ore grades:

Copper (%)

Gold (grams per metric ton)

Recovery rates (%):

Copper

Gold

Production (recoverable):

Copper (millions of pounds)

Gold (thousands of ounces)

Molybdenumb

Ore milled (metric tons per day)

Average molybdenum ore grade (%)

Molybdenum production (millions of recoverable pounds)

6

7

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

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

III

FREEPORT

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended

Nine Months Ended

(In Millions, Except Per Share Amounts)

Revenuesa

$

$

$

$

Cost of sales:

Production and deliveryb

Depreciation, depletion and amortization

Total cost of sales

Selling, general and administrative expenses

Exploration and research expenses

Environmental obligations and shutdown costs

Total costs and expenses

Operating income

Interest expense, netc

Net gain on early extinguishment of debt

—

5

—

Other income, net

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

Provision for income taxesd

Equity in affiliated companies’ net earnings

—

Net income

Net income attributable to noncontrolling interestse

Net income attributable to common stockholdersf,g

$

$

$

$

Diluted net income per share attributable to common stock

$

$

$

$

Diluted weighted-average common shares outstanding

Dividends declared per share of common stock

$

$

$

$

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

b.FCX is engaged in various studies associated with potential future expansion projects primarily at its mining operations. Production and delivery costs include charges for these feasibility and optimization studies totaling $45 million in third-quarter 2024, $42 million in third-quarter 2023, $117 million for the first nine months of 2024 and $137 million for the first nine months of 2023.

c.Consolidated interest costs (before capitalization) totaled $173 million in third-quarter 2024, $165 million in third-quarter 2023, $529 million for the first nine months of 2024 and $606 million for the first nine months of 2023. Consolidated interest costs in the 2023 periods include a $13 million credit for the settlement of interest on Cerro Verde’s historical profit sharing liability. Additionally, the first nine months of 2023 included $74 million of interest charges associated with contested tax rulings issued by the Peruvian Supreme Court.

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

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

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

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

IV

FREEPORT

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In Millions)

ASSETS

Current assets:

Cash and cash equivalents

$

$

Restricted cash and cash equivalentsa

Trade accounts receivable

Income and other tax receivables

Inventories:

Product

Materials and supplies, net

Mill and leach stockpiles

Other current assets

Total current assets

Property, plant, equipment and mine development costs, net

Long-term mill and leach stockpiles

Other assets

Total assets

$

$

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

$

Accrued income taxes

Current portion of debt

Current portion of environmental and asset retirement obligations (AROs)

Dividends payable

Total current liabilities

Long-term debt, less current portion

Environmental and AROs, less current portion

Deferred income taxes

Other liabilities

Total liabilities

Equity:

Stockholders’ equity:

Common stock

Capital in excess of par value

Accumulated deficit

Accumulated other comprehensive loss

Common stock held in treasury

Total stockholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

$

$

a.Includes $1.0 billion of cash at September 30, 2024, and $1.1 billion at December 31, 2023, associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the Indonesia government.

V

FREEPORT

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended

(In Millions)

Cash flow from operating activities:

Net income

$

$

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

Depreciation, depletion and amortization

Stock-based compensation

Net charges for environmental and AROs, including accretion

Payments for environmental and AROs

Net charges for defined pension and postretirement plans

Pension plan contributions

Net gain on early extinguishment of debt

—

Deferred income taxes

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

—

Charges for social investment programs at PT-FI

Payments for social investment programs at PT-FI

Other, net

Changes in working capital and other:

Accounts receivable

Inventories

Other current assets

7

Accounts payable and accrued liabilities

Accrued income taxes and timing of other tax payments

Net cash provided by operating activities

Cash flow from investing activities:

Capital expenditures:

North America copper mines

South America operations

Indonesia mining

Indonesia downstream processing facilities

Molybdenum mines

Other

Acquisition of additional ownership interest in Cerro Verde

—

Loans to PT Smelting for expansion

Proceeds from sales of assets and other, net

Net cash used in investing activities

Cash flow from financing activities:

Proceeds from debt

Repayments of debt

Cash dividends and distributions paid:

Common stock

Noncontrolling interests

Treasury stock purchases

—

Contributions from noncontrolling interests

—

Proceeds from exercised stock options

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

Other, net

(2)

Net cash used in financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

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

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

$

$

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

b.Includes current and long-term restricted cash and cash equivalents of $1.2 billion at September 30, 2024, and $0.8 billion at September 30, 2023.

VI

FREEPORT

ADJUSTED NET INCOME

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

Three Months Ended September 30,

Pre-tax

After-taxa

Per Share

Pre-tax

After-taxa

Per Share

Net income attributable to common stock

N/A

$

$

N/A

$

$

Oil and gas net charges

$

b

$

$

$

c

$

$

Cerro Verde new collective labor agreements (CLAs)

—

—

—

Net adjustments to environmental obligations and related litigation reserves

(3)

(3)

—

PT-FI net credits

—

—

—

d

5

—

U.S. income tax examse

—

—

—

Net gain on early extinguishment of debt

—

—

—

5

5

—

Other net (charges) creditsf

4

1

—

Total net chargesj

$

$

$

$

$

$

Adjusted net income attributable to common stockj

N/A

$

$

N/A

$

$

Nine Months Ended September 30,

Pre-tax

After-taxa

Per Share

Pre-tax

After-taxa

Per Share

Net income attributable to common stock

N/A

$

$

N/A

$

$

Oil and gas net charges

$

b

$

$

$

c

$

$

Cerro Verde new CLAs

—

—

—

Net adjustments to environmental obligations and related litigation reserves

PT-FI net charges

g

d

PT-FI historical tax matters

h

h

(6)

(4)

—

U.S. income tax examse

—

—

—

Cerro Verde historical tax matters

—

—

—

i

Net gain on early extinguishment of debt

—

—

—

Other net chargesf

Total net chargesj

$

$

$

$

$

$

Adjusted net income attributable to common stockj

N/A

$

$

N/A

$

$

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

b.Reflects charges recorded to production and delivery costs primarily associated with the write down of a historical contingent consideration asset and impairment of oil and gas properties. The first nine months of 2024 also include net charges recorded to production and delivery costs for assumed oil and gas abandonment obligations resulting from bankruptcies of other companies.

c.Reflects charges recorded to production and delivery primarily associated with impairments of oil and gas properties. The first nine months of 2023 also include $4 million recorded to selling, general and administrative expenses associated with a litigation settlement.

d.PT-FI net (credits) charges primarily reflect amounts recorded to revenue associated with the release of export duty exposure for prior years ($(13) million in the third quarter and $(17) million for the first nine months of 2023). The first nine months of 2023 also reflect charges recorded to production and delivery totaling $55 million for a potential administrative fine in Indonesia.

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

f.Net charges for the 2024 periods primarily reflect amounts recorded to production and delivery associated with metals inventory adjustments/write-offs and mining asset impairments. Net charges (credits) for the 2023 periods reflect credits associated with the settlement of interest on Cerro Verde’s historical profit-sharing liability. The first nine months of 2023 also reflects amounts recorded to production and delivery associated with mining asset impairments and contract cancellation costs.

VII

FREEPORT

ADJUSTED NET INCOME (continued)

g.Reflects charges recorded to production and delivery that were capitalized in prior years associated with construction of PT-FI’s new smelter and precious metals refinery (PMR) (collectively, PT-FI’s new downstream processing facilities).

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

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

j.May not foot because of rounding.

INCOME TAXES

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

Three Months Ended September 30,

Income Tax

Income Tax

Income

Effective

(Provision)

Income

Effective

(Provision)

(Loss)a

Tax Rate

Benefit

(Loss)a

Tax Rate

Benefit

U.S.b

$

c

d

$

c

$

—%

d

$

—

South America

Indonesia

Eliminations and other

N/A

3

N/A

Rate adjustmente

—

N/A

9

—

N/A

Continuing operations

$

$

$

$

Nine Months Ended September 30,

Income Tax

Income Tax

Income

Effective

(Provision)

Income

Effective

(Provision)

(Loss)a

Tax Rate

Benefit

(Loss)a

Tax Rate

Benefit

U.S.b

$

c

8%

d

$

c

$

—%

d

$

3

South America

Indonesia

Cerro Verde historical tax matters

—

N/A

—

f

N/A

3

PT-FI historical tax matters

g

N/A

g

(5)

N/A

(3)

Eliminations and other

N/A

7

N/A

—

Rate adjustmente

—

N/A

—

N/A

Continuing operations

$

$

$

$

a.Represents income (loss) before income taxes, equity in affiliated companies’ net earnings, and noncontrolling interests.

b.In addition to FCX’s North America copper mines, which had operating income of $170 million in third-quarter 2024, $257 million in third-quarter 2023, $587 million for the first nine months of 2024 and $925 million for the first nine months of 2023 (refer to the supplemental schedule, “Business Segments,” beginning on page XI), the U.S. jurisdiction reflects non-operating sites and corporate-level expenses, which include interest expense associated with FCX’s senior notes and general and administrative expenses. The U.S. jurisdiction also includes net charges associated with oil and gas abandonment obligations, a write-down of a historical contingent consideration asset in the 2024 periods, and revisions to environmental obligation estimates (refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII for additional information).

c.Refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII for further discussion of the net credits associated with the closure of FCX's 2017 and 2018 U.S. federal income tax exams.

d.Includes a valuation allowance release on prior year unbenefited net operating losses.

e.In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its consolidated tax rate.

f.Refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII for further discussion of the pre-tax charges associated with contested tax rulings by the Peruvian Supreme Court.

g.Refer to the supplemental schedule, “Adjusted Net Income,” beginning on page VII for further discussion of net credits associated with closure of PT-FI’s 2021 corporate income tax audit and resolution of a framework for disputed tax matters.

VIII

FREEPORT

INCOME TAXES (continued)

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.

In September 2024, the Internal Revenue Service (IRS) issued proposed regulations that provide guidance on the application of CAMT. The guidance is not final and subject to change, however, in its proposed form, the guidance differs from FCX's previous interpretations of the Act. If the regulations are finalized as proposed, they may further limit FCX's ability to realize future benefits from its U.S. net operating losses. Based on the proposed guidance released by IRS, FCX has determined that the provisions of the Act did not impact FCX’s financial results for the first nine months of 2024 or for the year 2023.

Assuming achievement of current sales volume and cost estimates and average prices of $4.25 per pound for copper, $2,600 per ounce for gold and $20.00 per pound for molybdenum in fourth-quarter 2024, G15FCX estimates its consolidated effective tax rate for the year 2024 would approximate 36% (which reflects an estimated effective tax rate of 40% in fourth-quarter 2024). Changes in projected sales volumes and average prices during 2024 would incur tax impacts at estimated effective rates of 39% for Peru, 36% for Indonesia and 0% for the U.S., which excludes the benefit discussed in note c above and any impact from the Act.

NET DEBT

FCX believes that net debt provides investors with information related to the performance-based payout framework in FCX’s financial policy, which requires FCX to maintain its net debt at a level not to exceed the net debt target of $3 billion to $4 billion, excluding debt for PT-FI’s new downstream processing facilities. FCX defines net debt as consolidated debt less (i) consolidated cash and cash equivalents and (ii) current restricted cash associated with PT-FI’s export proceeds. This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. FCX’s net debt, which may not be comparable to similarly titled measures reported by other companies, follows (in millions):

Current portion of debt

$

Long-term debt, less current portion

Consolidated debt

Less: consolidated cash and cash equivalents

Less: current restricted cash associated with PT-FI’s export proceeds

a

FCX net debt

Less: debt for PT-FI’s new downstream processing facilities

b

FCX net debt, excluding debt for PT-FI’s new downstream processing facilities

$

a.In accordance with a regulation issued by the Indonesia government, 30% of PT-FI’s export proceeds are being temporarily deposited into Indonesia banks for a period of 90 days before withdrawal and are presented as current restricted cash and cash equivalents in FCX’s consolidated balance sheet. As the 90-day holding period is the only restriction on the cash, FCX has included such amount in the calculation of net debt.

b.Represents PT-FI’s senior notes and $250 million of borrowings under PT-FI’s revolving credit facility.

DERIVATIVE INSTRUMENTS

For the nine months ended September 30, 2024, FCX’s mined copper was sold 45% in concentrate, 34% as cathode and 21% as rod. All of FCX’s copper concentrate and some cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted London Metal Exchange (LME) monthly average copper prices. FCX records revenues and invoices customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on provisionally priced concentrate and cathode sales that is adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. In third-quarter 2024, LME copper settlement prices averaged $4.18 per pound and FCX’s average realized copper price was $4.30 per pound.

IX

FREEPORT

DERIVATIVE INSTRUMENTS (continued)

Following is a summary of the adjustments to prior period and current period provisionally priced copper sales (in millions, except per share amounts):

Three Months Ended September 30,

Prior

Perioda

Current

Periodb

Total

Prior

Perioda

Current

Periodb

Total

Revenues

$

$