Freeport-McMoRan (NYSE: FCX) lifts H1 2026 profit on higher copper prices
Rhea-AI Filing Summary
Freeport-McMoRan Inc. reported solid mid‑year results driven by higher commodity prices and strong performance at U.S. operations, while managing disruptions in Indonesia. For second‑quarter 2026, revenue was $7.0 billion (vs. $7.6 billion a year earlier) and net income attributable to common stockholders was $984 million, or $0.68 per diluted share. For the first six months of 2026, net income attributable to common stockholders was $1.865 billion.
Higher realized copper prices of $6.17 per pound, gold at $4,520 per ounce and molybdenum at $28.75 per pound offset lower copper and gold volumes from Indonesia during the phased ramp‑up of the Grasberg Block Cave mine. Consolidated copper sales were 710 million pounds in the quarter, with consolidated unit net cash costs of $1.97 per pound, excluding idle facility and restoration costs related to the 2025 mud rush incident.
Operating cash flow for the first half of 2026 was $3,543 million, against capital expenditures of $2,077 million, and cash and cash equivalents were $4,080 million versus total debt of $9,386 million. The company expects 2026 sales of about 3,057 million pounds of copper, 654 thousand ounces of gold and 93 million pounds of molybdenum, unit net cash costs around $1.90 per pound of copper, operating cash flows of approximately $8.3 billion, and capital expenditures of about $4.3 billion.
Positive
- Net income attributable to common stockholders rose to $1.865 billion for the first six months of 2026 (vs. $1.124 billion in 2025), supported by materially higher realized prices for copper, gold and molybdenum and stronger contributions from U.S. copper operations.
- Despite heavy investment, operating cash flows reached $3,543 million in the first half of 2026 versus capital expenditures of $2,077 million, while cash and cash equivalents remained strong at $4,080 million and net debt was described as $2.1 billion excluding specific PTFI project debt.
Negative
- The Grasberg Block Cave mud‑rush incident continues to weigh on results, with idle facility and restoration costs of $690 million in production and delivery plus associated DD&A in the first half of 2026 and expected idle costs of about $1.2 billion for full‑year 2026.
- Indonesia copper and gold volumes declined significantly year‑on‑year, with gold sales falling to 123 thousand ounces in Q2 2026 from 522 thousand ounces in Q2 2025, limiting revenue despite much higher realized metal prices.
Filing Explained
The Grasberg rights extension remains conditional, and FCX’s stated ownership would fall to approximately 37% from 2042.
Freeport-McMoRan’s Form 10-Q is an unaudited quarterly report, and it records a submitted application and ongoing negotiations for extended Grasberg operating rights. The proposed extension would preserve FCX’s current 48.76% ownership of PT Freeport Indonesia through 2041, but the filing states that ownership would be approximately
The extension is not yet at the completed-license stage: the terms remain subject to Indonesia issuing an amended IUPK and the parties entering definitive agreements. Existing governance and operating arrangements are stated to continue over the life of the resource.
Separately, FCX completed a May purchase of 2.0 million Cerro Verde shares for
The specific resolution path for the Grasberg item is Indonesia’s issuance of the amended IUPK and execution of the definitive agreements identified in the filing.
Key Figures
Q2 2026 Revenue: $7,029 million
Q2 2026 Net Income to Common: $984 million
H1 2026 Net Cash from Operations: $3,543 million
+5 more
8 metrics
Q2 2026 Revenue
$7,029 million
Consolidated revenues for the three months ended June 30, 2026
Q2 2026 Net Income to Common
$984 million
Net income attributable to common stockholders for the quarter
H1 2026 Net Cash from Operations
$3,543 million
Net cash provided by operating activities for six months ended June 30, 2026
H1 2026 Capital Expenditures
$2,077 million
Consolidated capital expenditures for six months ended June 30, 2026
Q2 2026 Copper Sales Volume
710 million pounds
Consolidated copper sales, excluding purchases, for the quarter
Q2 2026 Realized Copper Price
$6.17 per pound
Average realized copper price in second-quarter 2026
Q2 2026 Copper Unit Net Cash Costs
$1.97 per pound
Consolidated unit net cash costs for copper mines, excluding idle facility and restoration costs
Projected 2026 Copper Sales
3,057 million pounds
Projected consolidated copper sales volume for full-year 2026
Key Terms
idle facility costs, unit net cash costs, Corporate Alternative Minimum Tax, provisionally priced sales, +2 more
6 terms
idle facility costs financial
"Idle facility and restoration costs totaled $284 million in production and delivery costs"
unit net cash costs financial
"consolidated unit net cash costs (net of by-product credits) for our copper mines are expected"
Corporate Alternative Minimum Tax financial
"primarily relates to the U.S. Corporate Alternative Minimum Tax provisions"
A corporate alternative minimum tax is a rule that sets a floor on the amount of tax a company must pay by calculating taxes on a broader measure of income so large deductions or credits can’t reduce a firm’s tax bill below that minimum. Investors care because it can increase a company’s tax payments, lower reported profits and free cash flow, and therefore affect valuations, dividend capacity and forecasts—like a safety net that reduces gains from aggressive tax planning.
provisionally priced sales financial
"certain sales contracts provide for provisional pricing primarily based on the London Metal Exchange"
embedded derivatives financial
"which results in an embedded derivative that is required to be bifurcated from the host contract"
An embedded derivative is a hidden financial option or payout rule built into a larger contract—like a bond, loan, or supply agreement—that makes part of the deal behave like a separate financial bet whose value swings with interest rates, currencies, commodity prices, or a company’s stock. Investors care because these built‑in features can change reported assets, liabilities and profits and add unexpected risk or upside, like finding a bonus or penalty clause inside a rental lease.
fair value hedges financial
"Derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions"
Fair value hedges are financial contracts used to offset changes in the market value of a specific asset or liability, like locking a price to protect against swings in value. For investors, they matter because they reduce sudden swings in reported earnings and balance-sheet values that arise from market movements, helping reveal the company’s underlying performance much like insurance smooths out the financial impact of an unexpected loss.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Freeport-McMoRan (FCX) perform financially in Q2 2026?
FCX generated Q2 2026 net income attributable to common stockholders of $984 million, or $0.68 per diluted share, on revenues of $7.029 billion. For the first half of 2026, net income attributable to common stockholders totaled $1.865 billion on revenues of $13.263 billion.
What were FCX’s copper, gold and molybdenum sales and prices in Q2 2026?
In Q2 2026 FCX sold 710 million pounds of copper, 123 thousand ounces of gold and 25 million pounds of molybdenum. Average realized prices were $6.17 per pound for copper, $4,520 per ounce for gold and $28.75 per pound for molybdenum.
How is the Grasberg Block Cave incident affecting FCX’s 2026 results?
During the phased ramp‑up, FCX is incurring non‑inventoriable idle facility and restoration costs at PT Freeport Indonesia. These totaled $690 million in production and delivery costs for the first six months of 2026, and idle facility costs are expected to approximate $1.2 billion for full‑year 2026.
What are FCX’s projected 2026 sales volumes and unit cash costs?
For 2026 FCX projects consolidated sales of 3,057 million pounds of copper, 654 thousand ounces of gold and 93 million pounds of molybdenum. Consolidated unit net cash costs for copper mines (excluding idle facility and restoration costs) are expected to average about $1.90 per pound of copper.
What operating cash flow and capital spending does FCX expect for 2026?
Based on current assumptions, FCX expects 2026 operating cash flows of approximately $8.3 billion, net of about $0.3 billion of working‑capital uses. Planned capital expenditures total $4.3 billion, including $3.0 billion for major projects and $1.3 billion for sustaining capital and other items.
How strong is FCX’s balance sheet and liquidity at June 30, 2026?
At June 30, 2026 FCX had $4,080 million in cash and cash equivalents and total debt of $9,386 million. The company reported net debt of $2.1 billion, excluding $3.2 billion of specific PTFI project debt, plus full $3.0 billion availability under its revolving credit facility.
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2026
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number: 001-11307-01
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) | |||||||
| incorporation or organization) | ||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No
On July 31, 2026, there were issued and outstanding 1,436,017,523 shares of the registrant’s common stock, par value $0.10 per share.
Freeport-McMoRan Inc.
TABLE OF CONTENTS
| Page | |||||
Part I. Financial Information | 3 | ||||
Item 1. Financial Statements: | 3 | ||||
Consolidated Balance Sheets (Unaudited) | 3 | ||||
Consolidated Statements of Income (Unaudited) | 4 | ||||
Consolidated Statements of Comprehensive Income (Unaudited) | 5 | ||||
Consolidated Statements of Cash Flows (Unaudited) | 6 | ||||
Consolidated Statements of Equity (Unaudited) | 8 | ||||
Notes to Consolidated Financial Statements (Unaudited) | 9 | ||||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 23 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 68 | ||||
Item 4. Controls and Procedures | 68 | ||||
Part II. Other Information | 68 | ||||
Item 1. Legal Proceedings | 68 | ||||
Item 1A. Risk Factors | 69 | ||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 69 | ||||
Item 4. Mine Safety Disclosures | 69 | ||||
Item 5. Other Information | 70 | ||||
Item 6. Exhibits | 70 | ||||
Signature | S-1 | ||||
2
Table of Contents
Part I.FINANCIAL INFORMATION
Item 1.Financial Statements.
Freeport-McMoRan Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| (In Millions) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash and cash equivalents | |||||||||||
| Trade accounts receivable | |||||||||||
| Value added and other tax receivables | |||||||||||
| Inventories: | |||||||||||
| Product | |||||||||||
| Materials and supplies, net | |||||||||||
| Mill and leach stockpiles | |||||||||||
| Other current assets | |||||||||||
| Total current assets | |||||||||||
| Property, plant, equipment and mine development costs, net | |||||||||||
| Long-term mill and leach stockpiles | |||||||||||
| Long-term tax receivables | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | $ | |||||||||
| Current portion of debt | |||||||||||
| Accrued income taxes | |||||||||||
| Current portion of environmental and asset retirement obligations | |||||||||||
| Dividends payable - common stock | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt, less current portion | |||||||||||
| Environmental and asset retirement obligations, less current portion | |||||||||||
| Deferred income taxes | |||||||||||
| Long-term leases, less current portion | |||||||||||
| Other liabilities | |||||||||||
| Total liabilities | |||||||||||
| Equity: | |||||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | |||||||||||
| Capital in excess of par value | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Common stock held in treasury | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Noncontrolling interests | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In Millions, Except Per Share Amounts) | |||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Production and delivery | |||||||||||||||||||||||
| Depreciation, depletion and amortization | |||||||||||||||||||||||
| Total cost of sales | |||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Exploration and research expenses | |||||||||||||||||||||||
Environmental obligations and shutdown costs | |||||||||||||||||||||||
| Gain on PTFI mud rush incident insurance settlement | ( | ||||||||||||||||||||||
| Gain on sale of assets | ( | ( | |||||||||||||||||||||
| Total costs and expenses | |||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Other income, net | |||||||||||||||||||||||
| Income before income taxes and equity in affiliated companies’ net earnings | |||||||||||||||||||||||
| Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
| Equity in affiliated companies’ net earnings | |||||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
| Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
| Net income per share attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-average shares of common stock outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
| Dividends declared per share of common stock | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income, net of taxes: | |||||||||||||||||||||||
| Defined benefit plans: | |||||||||||||||||||||||
| Amortization of unrecognized amounts included in net periodic benefit costs | |||||||||||||||||||||||
| Other comprehensive income | |||||||||||||||||||||||
| Total comprehensive income | |||||||||||||||||||||||
| Total comprehensive income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
| Total comprehensive income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Six Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (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 | ||||||||||||||
| Gain on PTFI mud rush incident insurance settlement | ( | |||||||||||||
| Proceeds from PTFI mud rush incident insurance settlement | ||||||||||||||
| Gain on sale of assets | ( | |||||||||||||
| Net charges for environmental and asset retirement obligations, including accretion | ||||||||||||||
| Payments for environmental and asset retirement obligations | ( | ( | ||||||||||||
| Stock-based compensation | ||||||||||||||
| Net charges for defined pension and postretirement plans | ||||||||||||||
| Pension plan contributions | ( | ( | ||||||||||||
| Deferred income taxes | ||||||||||||||
| Charges for PTFI social investment programs | ||||||||||||||
| Payments for PTFI social investment programs | ( | ( | ||||||||||||
| Other, net | ( | |||||||||||||
Changes in working capital and other: | ||||||||||||||
| Accounts receivable | ( | |||||||||||||
| Inventories | ( | ( | ||||||||||||
| Other current assets | ( | |||||||||||||
| Accounts payable and accrued liabilities | ( | |||||||||||||
| Accrued income taxes and timing of other tax payments | ( | ( | ||||||||||||
| Net cash provided by operating activities | ||||||||||||||
| Cash flow from investing activities: | ||||||||||||||
| Capital expenditures: | ||||||||||||||
| U.S. copper mines | ( | ( | ||||||||||||
| South America operations | ( | ( | ||||||||||||
| Indonesia operations | ( | ( | ||||||||||||
| Molybdenum mines | ( | ( | ||||||||||||
| Other | ( | ( | ||||||||||||
| Acquisition of additional ownership interest in Cerro Verde | ( | |||||||||||||
| Other, net | ||||||||||||||
| Net cash used in investing activities | ( | ( | ||||||||||||
| Cash flow from financing activities: | ||||||||||||||
| Proceeds from debt | ||||||||||||||
| Repayments of debt | ( | ( | ||||||||||||
| Finance lease payments | ( | ( | ||||||||||||
| Cash dividends and distributions paid: | ||||||||||||||
| Common stock | ( | ( | ||||||||||||
| Noncontrolling interests | ( | ( | ||||||||||||
| Treasury stock purchases | ( | ( | ||||||||||||
| Proceeds from exercised stock options | ||||||||||||||
| Payments for withholding of employee taxes related to stock-based awards | ( | ( | ||||||||||||
| Debt issuance costs | ( | |||||||||||||
| Net cash used in financing activities | ( | ( | ||||||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | ( | |||||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at beginning of year | ||||||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ | $ | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
THREE MONTHS ENDED JUNE 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 March 31, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised and issued stock-based awards | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock purchases | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of additional ownership interest in Cerro Verde | — | — | ( | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | ( | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| 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 March 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock purchases | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | ( | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
SIX MONTHS ENDED JUNE 30
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | 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, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised and issued stock-based awards | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock purchases | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of additional ownership interest in Cerro Verde | — | — | ( | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | ( | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised and issued stock-based awards | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation, including the tender of shares | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock purchases | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | ( | ( | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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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 (GAAP) 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, 2025 (2025 Form 10-K). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the six-month period ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. Dollar amounts in tables are stated in millions, except per share amounts.
Cerro Verde. In May 2026, FCX purchased 2.0 million shares of Cerro Verde common stock for a total cost of $107 million, increasing FCX’s ownership interest in Cerro Verde from 55.08 % to 55.66 %. As a result of the transaction, the carrying value of Cerro Verde’s noncontrolling interest was reduced by $36 million, and $73 million was recorded to reduce capital in excess of par value, including a $2 million deferred tax impact.
Subsequent Events. FCX evaluated events after June 30, 2026, 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 | Six Months Ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||
| Net income attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
| Undistributed dividends and earnings allocated to participating securities | ( | ( | ( | ( | ||||||||||||||||||||||
| Net income attributable to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Basic weighted-average shares of common stock outstanding | ||||||||||||||||||||||||||
| Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units | ||||||||||||||||||||||||||
Diluted weighted-average shares of common stock outstanding | ||||||||||||||||||||||||||
| Net income per share attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
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
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NOTE 3. INCOME TAXES
Geographic sources of FCX’s (provision) benefit for income taxes follow:
| Six Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| U.S. | $ | ( | $ | |||||||||||
| Foreign | ( | ( | ||||||||||||
| Total | $ | ( | $ | ( | ||||||||||
FCX’s consolidated effective income tax rate is a function of the various rates in the jurisdictions where it operates and was 30 % for the first six months of 2026 and 37 % for the first six months of 2025. The U.S. income tax provision for the first six months of 2026 primarily relates to the U.S. Corporate Alternative Minimum Tax provisions, which do not benefit from regular tax U.S. net operating loss carryforwards.
NOTE 4. DEBT AND EQUITY
The components of debt follow:
| June 30, 2026 | December 31, 2025 | |||||||||||||
| PT Freeport Indonesia (PTFI) revolving credit facility | $ | $ | ||||||||||||
| Senior notes and debentures: | ||||||||||||||
| Issued by FCX | ||||||||||||||
| Issued by PTFI | ||||||||||||||
| Issued by Freeport Minerals Corporation | ||||||||||||||
| Atlantic Copper | ||||||||||||||
| Other | ||||||||||||||
| Total debt | ||||||||||||||
| Less current portion of debt | ( | ( | ||||||||||||
| Long-term debt | $ | $ | ||||||||||||
Revolving Credit Facilities.
PTFI. At June 30, 2026, PTFI had $250 million in borrowings outstanding under its $1.75 billion, senior unsecured revolving credit facility that matures in November 2028.
FCX. In May 2026, FCX and PTFI entered into a new $3.0 billion, five-year , senior unsecured revolving credit facility that matures in May 2031 and replaced the revolving credit facility that was scheduled to mature in October 2027. The terms of the new revolving credit facility are substantially similar to the prior facility, including that 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.
Interest on loans made under FCX’s revolving credit facility may, at the option of FCX or PTFI, be determined based on the Term Secured Overnight Financing Rate (SOFR) or the Alternate Base Rate (ABR), plus a spread to be determined by reference to a grid based on FCX’s credit rating.
FCX’s revolving credit facility contains customary affirmative covenants and representations, and also contains various negative covenants that, among other things and subject to certain exceptions, restrict the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and the ability of FCX or FCX’s subsidiaries to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. In addition, the revolving credit facility contains a total leverage ratio financial covenant.
At June 30, 2026, there were no borrowings and $5 million in letters of credit issued under FCX’s revolving credit facility.
Cerro Verde. In May 2026, Cerro Verde entered into a new $350 million, five-year , senior unsecured revolving credit facility that matures in May 2031 and replaced its prior revolving credit facility that was scheduled to mature in May
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2027. The terms of the new revolving credit facility are substantially similar to the prior facility, including customary representations and affirmative and negative covenants. Interest on loans made under Cerro Verde’s revolving credit facility may, at the option of Cerro Verde, be determined based on SOFR or ABR, plus a spread.
At June 30, 2026, there were no borrowings outstanding under Cerro Verde’s revolving credit facility.
At June 30, 2026, PTFI, FCX and Cerro Verde were each in compliance with the covenants under their respective credit facilities.
Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $240 million in second-quarter 2026 and $414 million for the first six months of 2026, including $67 181 million in second-quarter 2025 and $355 million for the first six months of 2025.
Capitalized interest totaled $145 million in second-quarter 2026 and $205 million for the first six months of 2026, including $64 99 million in second-quarter 2025 and $203 million for the first six months of 2025.
Share Repurchase Program and Dividends. During the first six months of 2026, FCX acquired 3.4 million shares of its common stock for a total cost of $203 million ($59.30 average cost per share). At July 31, 2026, FCX has acquired a total of 55.4 million shares ($39.80 average cost per share) and has $2.8 billion available under its $5.0 billion share repurchase program.
On June 24, 2026, 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 August 3, 2026, to common stockholders of record on July 15, 2026.
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 six months ended June 30, 2026 and 2025. At June 30, 2026, FCX held copper futures and swap contracts that
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qualified for hedge accounting for 145 million pounds at an average contract price of $5.95 per pound, with maturities through August 2028.
Summary of Gains (Losses). A summary of realized and unrealized gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including on the related hedged item follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Copper futures and swap contracts: | |||||||||||||||||||||||
| Unrealized gains (losses): | |||||||||||||||||||||||
| Derivative financial instruments | $ | $ | ( | $ | ( | $ | |||||||||||||||||
| Hedged item – firm sales commitments | ( | ( | |||||||||||||||||||||
| Realized gains: | |||||||||||||||||||||||
| Matured derivative financial instruments | |||||||||||||||||||||||
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) PM 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 the then-current LME copper settlement price and the London PM 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 PM 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 PM gold price, until the date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.
A summary of FCX’s embedded derivatives at June 30, 2026, follows:
| Open Positions | Average Price Per Unit | Maturities Through | |||||||||||||||||||||
| Contract | Market | ||||||||||||||||||||||
| Embedded derivatives in provisional sales contracts: | |||||||||||||||||||||||
| Copper (millions of pounds) | $ | $ | November 2026 | ||||||||||||||||||||
| Gold (thousands of ounces) | October 2026 | ||||||||||||||||||||||
| Embedded derivatives in provisional purchase contracts: | |||||||||||||||||||||||
| Copper (millions of pounds) | November 2026 | ||||||||||||||||||||||
Copper Forward Contracts. Atlantic Copper enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in production and delivery costs. At June 30, 2026, Atlantic Copper held net copper forward sales contracts for 30 million pounds at an average contract price of $6.18 per pound, with maturities through August 2026.
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Summary of Gains (Losses). A summary of realized and unrealized gains (losses) recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Embedded derivatives in provisional sales contracts:a | |||||||||||||||||||||||
| Copper | $ | $ | $ | $ | |||||||||||||||||||
| Gold and other metals | ( | ( | |||||||||||||||||||||
Copper forward contractsb | ( | ( | ( | ( | |||||||||||||||||||
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. At June 30, 2026, the maximum amount of credit exposure associated with derivative transactions was $86 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:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||
| Balance sheet components: | |||||||||||||||||
| Cash and cash equivalents | $ | $ | |||||||||||||||
Restricted cash and cash equivalents, currenta | |||||||||||||||||
| Restricted cash and cash equivalents, long-term - included in other assets | |||||||||||||||||
| Total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows | $ | $ | |||||||||||||||
a.Reflects cash designated for talc-related litigation in accordance with a legal settlement (refer to Note 10 of FCX’s 2025 Form 10-K for further discussion).
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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 June 30, 2026 | |||||||||||||||||||||||||||||||||||
| Carrying | Fair Value | ||||||||||||||||||||||||||||||||||
| Amount | Total | NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
Investment securities:a,b | |||||||||||||||||||||||||||||||||||
| U.S. core fixed income fund | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
Legally restricted funds:a | |||||||||||||||||||||||||||||||||||
| U.S. core fixed income fund | |||||||||||||||||||||||||||||||||||
| Government mortgage-backed securities | |||||||||||||||||||||||||||||||||||
| Government bonds and notes | |||||||||||||||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||||||||||||||
| Money market funds | |||||||||||||||||||||||||||||||||||
| Asset-backed securities | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
Derivatives:c | |||||||||||||||||||||||||||||||||||
| Embedded derivatives in provisional sales/purchase contracts in a gross asset position | |||||||||||||||||||||||||||||||||||
| Copper futures and swap contracts | |||||||||||||||||||||||||||||||||||
| Copper forward contracts | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
Embedded derivatives in provisional sales/purchase contracts in a gross liability positionc | |||||||||||||||||||||||||||||||||||
Debtd | |||||||||||||||||||||||||||||||||||
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| At December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Carrying | Fair Value | ||||||||||||||||||||||||||||||||||
| Amount | Total | NAV | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
Investment securities:a,b | |||||||||||||||||||||||||||||||||||
| Equity securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| U.S. core fixed income fund | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
Legally restricted funds:a | |||||||||||||||||||||||||||||||||||
| U.S. core fixed income fund | |||||||||||||||||||||||||||||||||||
| Government mortgage-backed securities | |||||||||||||||||||||||||||||||||||
| Government bonds and notes | |||||||||||||||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||||||||||||||
| Money market funds | |||||||||||||||||||||||||||||||||||
| Asset-backed securities | |||||||||||||||||||||||||||||||||||
| Collateralized mortgage-backed securities | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
Derivatives:c | |||||||||||||||||||||||||||||||||||
| Embedded derivatives in provisional sales/purchase contracts in a gross asset position | |||||||||||||||||||||||||||||||||||
| Copper futures and swap contracts | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
Derivatives:c | |||||||||||||||||||||||||||||||||||
| Embedded derivatives in provisional sales/purchase contracts in a gross liability position | |||||||||||||||||||||||||||||||||||
| Copper forward contracts | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
Debtd | |||||||||||||||||||||||||||||||||||
a.Current portion included in other current assets and long-term portion included in other assets.
b.Excludes amounts included in restricted cash and cash equivalents that approximate fair value and are associated with talc-related litigation at June 30, 2026, and December 31, 2025. Refer to Note 10 of FCX’s 2025 Form 10-K for further discussion.
c.Refer to Note 5 for further discussion.
d.Recorded at cost except for debt assumed in the 2007 acquisition of Freeport Minerals Corporation, 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 PM gold prices at each reporting
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date based on the month of maturity (refer to Note 5); 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). 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 June 30, 2026, as compared with those techniques used at December 31, 2025.
NOTE 7. CONTINGENCIES AND COMMITMENTS
Indonesia Matters
Refer to Note 10 of FCX’s 2025 Form 10-K for further discussion of Indonesia matters.
Long-Term Mining Rights. In February 2026, FCX and PTFI entered into a Memorandum of Understanding (MOU) with the Indonesia government for a life of resource extension of operating rights in the Grasberg minerals district beyond the current expiration in 2041. Under the terms of the MOU, FCX would maintain its current ownership interest in PTFI of 48.76 % through 2041 and hold approximately 37 % beginning in 2042. The existing governance and operating structure, and terms of the existing shareholder agreement, special mining business license (IUPK) and other agreements in effect will continue over the life of the resource.
In June 2026, PTFI submitted its application for extension of its IUPK, and FCX and PTFI are working with the Indonesia government to complete the formal license process. The extension of operating rights and other terms are subject to, among other things, the Indonesia government’s issuance of an amended IUPK and entry into definitive agreements.
Grasberg Block Cave Ramp-Up. Following the September 2025 external mud rush incident, PTFI has progressed a series of activities to address the incident and remains focused on a safe and sustainable ramp-up to full operating capacity.
During the phased ramp-up period of the Grasberg Block Cave underground mine and until PTFI’s operations return to normal capacity, a portion of PTFI’s production and delivery costs will be recognized as idle facility costs, which are non-inventoriable. Idle facility and restoration costs totaled $284 million in production and delivery costs and $79 million in depreciation, depletion and amortization (DD&A) expense in second-quarter 2026, and $690 million in production and delivery costs and $172 million in DD&A expense for the first six months of 2026.
Gain on PTFI Mud Rush Incident Insurance Settlement. In April 2026, PTFI collected pre-tax proceeds of $0.7 billion associated with the settlement of its insurance claim under its property and business interruption policies related to the September 2025 external mud rush incident. The gain associated with this insurance settlement was recognized in first-quarter 2026.
Export Proceeds. In 2023, the Indonesia government issued a regulation that required 30 % of PTFI’s gross export proceeds to be temporarily deposited into Indonesia banks for a period of 90 days before withdrawal. In March 2025, the Indonesia government amended the regulation to require 100% of PTFI’s export proceeds to be deposited into Indonesia banks for 12 months, but the amended regulation permits the use of these 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.
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Effective June 1, 2026, the Indonesia government issued additional amendments to the export proceeds regulation. PTFI is seeking clarification regarding the applicability of the amendments and continues to deposit export proceeds in Indonesia banks consistent with its historical practice.
Indonesia Tax Matters
In April 2026, PTFI received assessments totaling $220 million from the Indonesia tax authorities related to various 2022 audit exceptions for income and other taxes. On June 30, 2026, PTFI paid these disputed assessments, and has filed objections to the assessments because PTFI believes it has properly determined and paid its taxes. At June 30, 2026, PTFI has a long-term tax receivable for these assessments.
Litigation
There were no significant updates to previously reported legal proceedings included in Note 10 of FCX’s 2025 Form 10-K.
NOTE 8. BUSINESS SEGMENT INFORMATION
Product Revenues. FCX’s revenues attributable to the products it sold for the second quarters and for the first six months of 2026 and 2025 follow:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Copper: | ||||||||||||||||||||||||||
| Cathode | $ | $ | $ | $ | ||||||||||||||||||||||
| Rod and other refined copper products | ||||||||||||||||||||||||||
| Concentrate | ||||||||||||||||||||||||||
Purchased coppera | ||||||||||||||||||||||||||
| Molybdenum | ||||||||||||||||||||||||||
| Gold | ||||||||||||||||||||||||||
| Silver and other | ||||||||||||||||||||||||||
| Adjustments to revenues: | ||||||||||||||||||||||||||
Royalty expenseb | ( | ( | ( | ( | ||||||||||||||||||||||
Treatment chargesc | ( | ( | ( | ( | ||||||||||||||||||||||
PTFI export dutiesd | ( | ( | ||||||||||||||||||||||||
| Revenues from contracts with customers | ||||||||||||||||||||||||||
Embedded derivativese | ||||||||||||||||||||||||||
| Total consolidated revenues | $ | $ | $ | $ | ||||||||||||||||||||||
a.FCX purchases copper cathode primarily for processing by its U.S. Rod & Refining operations.
b.Reflects royalties on sales from PTFI and Cerro Verde that will vary with the volume of metal sold and prices.
c.Revenues from our copper concentrate sales are recorded net of treatment charges, which will vary with the sales volumes and the price of copper. Lower charges in the 2026 periods, compared to the 2025 periods, primarily reflect lower treatment charge rates as a result of favorable market conditions and the lack of copper concentrate sales volumes in Indonesia now that PTFI is a fully integrated producer of refined copper, gold and silver.
d.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 %. Refer to Note 11 of FCX’s 2025 Form 10-K for further discussion.
e.Refer to Note 5 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.
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Reportable Segments. FCX has organized its mining operations into four primary divisions – U.S. copper mines, South America operations, Indonesia operations and Molybdenum mines.
In the U.S., FCX operates seven copper operations – Morenci (72 %-owned), Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines – Henderson and Climax in Colorado. A majority of the copper produced at the U.S. copper mines is cast into copper rod by the U.S. Rod & Refining operations.
In South America, FCX operates two copper operations – Cerro Verde in Peru and El Abra in Chile.
In Indonesia, PTFI operates in the Grasberg minerals district. With the completion of its downstream processing facilities during 2025, PTFI is a fully integrated producer of refined copper, gold and silver.
•Morenci. The Morenci open-pit copper mine, located in southeastern Arizona, produces copper cathode and copper concentrate. In addition to copper, the Morenci mine also produces molybdenum concentrate.
•Cerro Verde. The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathode and copper concentrate. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver.
•Indonesia Operations. Indonesia operations include PTFI’s Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver, and PTFI’s downstream processing facilities. PTFI’s smelter will exclusively receive concentrate from the Grasberg minerals district and the precious metals refinery will receive anode slimes from the smelter and from PT Smelting (PTFI’s 66 %-owned smelter and refinery in Gresik, Indonesia, which is accounted for under the equity method).
•U.S. Rod & Refining. The U.S. Rod & Refining segment consists of copper conversion facilities located in the U.S., and includes a refinery and two rod mills. These operations process copper primarily produced at FCX’s U.S. copper mines and purchased copper into copper cathode and rod. At times, these operations refine copper and produce copper rod for customers on a toll basis. Toll arrangements require the tolling customer to deliver appropriate copper-bearing material to FCX’s facilities for processing into a product that is returned to the customer, who pays FCX for processing its material into the specified products.
•Atlantic Copper. Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes.
Intersegment sales between FCX’s operating segments are based on terms similar to arm’s-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 allocates certain operating costs, expenses and capital expenditures to its operating segments. However, not all costs and expenses applicable to an operation are allocated. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each reportable segment would be if it was an independent entity.
FCX's Chief Executive Officer is identified as its chief operating decision maker (CODM) under 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.
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Financial Information by Reportable Segment as of and for the three months ended June 30, 2026
| Reportable Segments | ||||||||||||||||||||||||||||||||||||||
| U.S. | Total | |||||||||||||||||||||||||||||||||||||
| Cerro | Indonesia | Rod & | Atlantic | Reportable | ||||||||||||||||||||||||||||||||||
| Morenci | Verde | Operations | Refining | Copper | Segments | |||||||||||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Intersegment | ||||||||||||||||||||||||||||||||||||||
| Reconciliation of revenues | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - unaffiliated customersa | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - intersegmenta | ||||||||||||||||||||||||||||||||||||||
| Elimination of intersegment revenue | ( | |||||||||||||||||||||||||||||||||||||
| Total consolidated revenues, net | $ | |||||||||||||||||||||||||||||||||||||
| Segment measure of profit: | ||||||||||||||||||||||||||||||||||||||
| Production and delivery | b | |||||||||||||||||||||||||||||||||||||
| DD&A | c | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | ||||||||||||||||||||||||||||||||||||||
| Gain on sale of assets | ( | |||||||||||||||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of operating income | ||||||||||||||||||||||||||||||||||||||
Other segments’ operating incomea | d | |||||||||||||||||||||||||||||||||||||
| Corporate expenses and elimination of intersegment operating income | ( | e | ||||||||||||||||||||||||||||||||||||
| Consolidated interest expense, net | ( | |||||||||||||||||||||||||||||||||||||
| Consolidated other income, net | ||||||||||||||||||||||||||||||||||||||
| Total consolidated income before income taxes and equity in affiliated companies’ net earnings | $ | |||||||||||||||||||||||||||||||||||||
| Segment assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of segment assets | ||||||||||||||||||||||||||||||||||||||
Total assets for other segmentsa | ||||||||||||||||||||||||||||||||||||||
| Corporate assets and elimination of investments in consolidated subsidiaries | ( | |||||||||||||||||||||||||||||||||||||
| Total consolidated assets | $ | |||||||||||||||||||||||||||||||||||||
| Segment capital expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of capital expenditures | ||||||||||||||||||||||||||||||||||||||
Total capital expenditures for other segmentsa | ||||||||||||||||||||||||||||||||||||||
| Corporate capital expenditures | ||||||||||||||||||||||||||||||||||||||
| Total consolidated capital expenditures | $ | |||||||||||||||||||||||||||||||||||||
a.Includes amounts attributable to FCX’s other operating segments that do not meet the quantitative thresholds for determining reportable segments under U.S. GAAP, including other U.S. copper mines, the El Abra mine in Chile, the molybdenum mines, certain downstream processing facilities and exploration.
b.Includes charges totaling $284 million for idle facility and restoration costs associated with the September 2025 external mud rush incident. Refer to Note 7 for further discussion.
c.Includes charges totaling $79 million for idle facility costs associated with the September 2025 external mud rush incident. Refer to Note 7 for further discussion.
d.Includes DD&A of $149 million related to other operating segments.
e.Corporate expenses include amounts not allocated to individual operating segments.
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Financial Information by Reportable Segment as of and for the three months ended June 30, 2025
| Reportable Segments | ||||||||||||||||||||||||||||||||||||||
| U.S. | Total | |||||||||||||||||||||||||||||||||||||
| Cerro | Indonesia | Rod & | Atlantic | Reportable | ||||||||||||||||||||||||||||||||||
| Morenci | Verde | Operations | Refining | Copper | Segments | |||||||||||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Intersegment | ( | a | ||||||||||||||||||||||||||||||||||||
| Reconciliation of revenues | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - unaffiliated customersb | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - intersegmentb | ||||||||||||||||||||||||||||||||||||||
| Elimination of intersegment revenue | ( | |||||||||||||||||||||||||||||||||||||
| Total consolidated revenues, net | $ | |||||||||||||||||||||||||||||||||||||
| Segment measure of profit: | ||||||||||||||||||||||||||||||||||||||
| Production and delivery | ||||||||||||||||||||||||||||||||||||||
| DD&A | ||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | ||||||||||||||||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of operating income | ||||||||||||||||||||||||||||||||||||||
Other segments’ operating incomeb | c | |||||||||||||||||||||||||||||||||||||
| Corporate expenses and elimination of intersegment operating income | ( | d | ||||||||||||||||||||||||||||||||||||
| Consolidated interest expense, net | ( | |||||||||||||||||||||||||||||||||||||
| Consolidated other income, net | ||||||||||||||||||||||||||||||||||||||
| Total consolidated income before income taxes and equity in affiliated companies’ net earnings | $ | |||||||||||||||||||||||||||||||||||||
| Segment assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of segment assets | ||||||||||||||||||||||||||||||||||||||
Total assets for other segmentsb | ||||||||||||||||||||||||||||||||||||||
| Corporate assets and elimination of investments in consolidated subsidiaries | ( | |||||||||||||||||||||||||||||||||||||
| Total consolidated assets | $ | |||||||||||||||||||||||||||||||||||||
| Segment capital expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of capital expenditures | ||||||||||||||||||||||||||||||||||||||
Total capital expenditures for other segmentsb | ||||||||||||||||||||||||||||||||||||||
| Corporate capital expenditures | ||||||||||||||||||||||||||||||||||||||
| Total consolidated capital expenditures | $ | |||||||||||||||||||||||||||||||||||||
a.Represents a volume adjustment on concentrate shipped to Atlantic Copper in a prior period.
b.Includes amounts attributable to FCX’s other operating segments that do not meet the quantitative thresholds for determining reportable segments under U.S. GAAP, including other U.S. copper mines, the El Abra mine in Chile, the molybdenum mines, certain downstream processing facilities and exploration.
c.Includes DD&A of $131 million related to other operating segments.
d.Corporate expenses include amounts not allocated to individual operating segments.
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Financial Information by Reportable Segment for the six months ended June 30, 2026
| Reportable Segments | ||||||||||||||||||||||||||||||||||||||
| U.S. | Total | |||||||||||||||||||||||||||||||||||||
| Cerro | Indonesia | Rod & | Atlantic | Reportable | ||||||||||||||||||||||||||||||||||
| Morenci | Verde | Operations | Refining | Copper | Segments | |||||||||||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Intersegment | ||||||||||||||||||||||||||||||||||||||
| Reconciliation of revenues | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - unaffiliated customersa | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - intersegmenta | ||||||||||||||||||||||||||||||||||||||
| Elimination of intersegment revenue | ( | |||||||||||||||||||||||||||||||||||||
| Total consolidated revenues, net | $ | |||||||||||||||||||||||||||||||||||||
| Segment measure of profit: | ||||||||||||||||||||||||||||||||||||||
| Production and delivery | b | |||||||||||||||||||||||||||||||||||||
| DD&A | c | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | ||||||||||||||||||||||||||||||||||||||
| Gain on PTFI mud rush incident insurance settlement | ( | |||||||||||||||||||||||||||||||||||||
| Gain on sale of assets | ( | |||||||||||||||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of operating income | ||||||||||||||||||||||||||||||||||||||
Other segments’ operating incomea | d | |||||||||||||||||||||||||||||||||||||
| Corporate expenses and elimination of intersegment operating income | ( | e | ||||||||||||||||||||||||||||||||||||
| Consolidated interest expense, net | ( | |||||||||||||||||||||||||||||||||||||
| Consolidated other income, net | ||||||||||||||||||||||||||||||||||||||
| Total consolidated income before income taxes and equity in affiliated companies’ net earnings | $ | |||||||||||||||||||||||||||||||||||||
| Segment capital expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of capital expenditures | ||||||||||||||||||||||||||||||||||||||
Total capital expenditures for other segmentsa | ||||||||||||||||||||||||||||||||||||||
| Corporate capital expenditures | ||||||||||||||||||||||||||||||||||||||
| Total consolidated capital expenditures | $ | |||||||||||||||||||||||||||||||||||||
a.Includes amounts attributable to FCX’s other operating segments that do not meet the quantitative thresholds for determining reportable segments under U.S. GAAP, including other U.S. copper mines, the El Abra mine in Chile, the molybdenum mines, certain downstream processing facilities and exploration.
b.Includes charges totaling $690 million for idle facility and restoration costs associated with the September 2025 external mud rush incident. Refer to Note 7 for further discussion.
c.Includes charges totaling $172 million for idle facility costs associated with the September 2025 external mud rush incident. Refer to Note 7 for further discussion.
d.Includes DD&A of $306 million related to other operating segments.
e.Corporate expenses include amounts not allocated to individual operating segments.
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Financial Information by Reportable Segment for the six months ended June 30, 2025
| Reportable Segments | ||||||||||||||||||||||||||||||||||||||
| U.S. | Total | |||||||||||||||||||||||||||||||||||||
| Cerro | Indonesia | Rod & | Atlantic | Reportable | ||||||||||||||||||||||||||||||||||
| Morenci | Verde | Operations | Refining | Copper | Segments | |||||||||||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Intersegment | ||||||||||||||||||||||||||||||||||||||
| Reconciliation of revenues | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - unaffiliated customersa | ||||||||||||||||||||||||||||||||||||||
Other segments’ revenue - intersegmenta | ||||||||||||||||||||||||||||||||||||||
| Elimination of intersegment revenue | ( | |||||||||||||||||||||||||||||||||||||
| Total consolidated revenues, net | $ | |||||||||||||||||||||||||||||||||||||
| Segment measure of profit: | ||||||||||||||||||||||||||||||||||||||
| Production and delivery | ||||||||||||||||||||||||||||||||||||||
| DD&A | ||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | ||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | ( | |||||||||||||||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of operating income | ||||||||||||||||||||||||||||||||||||||
Other segments’ operating incomea | b | |||||||||||||||||||||||||||||||||||||
| Corporate expenses and elimination of intersegment operating income | ( | c | ||||||||||||||||||||||||||||||||||||
| Consolidated interest expense, net | ( | |||||||||||||||||||||||||||||||||||||
| Consolidated other income, net | ||||||||||||||||||||||||||||||||||||||
| Total consolidated income before income taxes and equity in affiliated companies’ net earnings | $ | |||||||||||||||||||||||||||||||||||||
| Segment capital expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Reconciliation of capital expenditures | ||||||||||||||||||||||||||||||||||||||
Total capital expenditures for other segmentsa | ||||||||||||||||||||||||||||||||||||||
| Corporate capital expenditures | ||||||||||||||||||||||||||||||||||||||
| Total consolidated capital expenditures | $ | |||||||||||||||||||||||||||||||||||||
a.Includes amounts attributable to FCX’s other operating segments that do not meet the quantitative thresholds for determining reportable segments under U.S. GAAP, including other U.S. copper mines, the El Abra mine in Chile, the molybdenum mines, certain downstream processing facilities and exploration.
b.Includes DD&A of $262 million related to other operating segments.
c.Corporate expenses include amounts not allocated to individual operating segments.
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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.
In Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), “we,” “us” and “our” refer to Freeport-McMoRan Inc. (FCX) and its consolidated subsidiaries. You should read this discussion in conjunction with our consolidated financial statements, the related MD&A and the discussion of our Business and Properties in our annual report on Form 10-K for the year ended December 31, 2025 (2025 Form 10-K), filed with the United States (U.S.) Securities and Exchange Commission (SEC). The results of operations reported and summarized below include forward-looking statements that are not guarantees of future performance and are not necessarily indicative of future operating results (refer to “Cautionary Statement” for further discussion). References to “Notes” are Notes included in our Notes to Consolidated Financial Statements (Unaudited). Throughout MD&A, all references to income or losses per share are on a diluted basis. Any references to our website are for information only and the contents of our website or information connected thereto are not incorporated in, or otherwise to be regarded as part of, this Form 10-Q.
OVERVIEW
We are a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, we operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the U.S. and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.
We achieved strong results in second-quarter 2026, supported by solid execution of our operating plans and favorable realized prices for copper, gold and molybdenum. The strength and diversity of our portfolio of assets contributed to these results, as operating income from our U.S. copper mines more than doubled in the first six months of 2026, compared to the first six months of 2025, primarily reflecting higher average realized copper and molybdenum prices. This increase helped offset lower operating income from Indonesia during the continued phased ramp-up of the Grasberg Block Cave underground mine.
PT Freeport Indonesia (PTFI) has made steady progress with the phased ramp-up of the Grasberg Block Cave underground mine following the September 2025 external mud rush incident and we remain focused on a safe and sustainable ramp-up to full operating capacity. Refer to “Operations – Indonesia” for further discussion of the Grasberg Block Cave ramp-up.
At our U.S. and South America operations, we are advancing testing of innovative technologies to target significant increases in incremental production from leaching initiatives. We are targeting reaching an annual run rate of 300 million pounds of copper from these initiatives by the end of 2026 and believe there is potential for further significant increases in recoverable metal in future years. We are finalizing cost estimates for an opportunity to more than double the concentrator capacity of the Bagdad operation in northwest Arizona and have advanced technical and economic studies in preparation for a potential investment decision during the second half of 2026. Additionally, we are advancing our evaluation of a potential major expansion at our El Abra mine in Chile. Refer to “Operations – United States” and “Operations – South America” for further discussion.
In May 2026, we purchased 2.0 million shares of Cerro Verde common stock in the open market for $107 million, increasing our ownership interest in Cerro Verde from 55.08% to 55.66%.
Net income attributable to common stockholders totaled $984 million in second-quarter 2026, $772 million in second-quarter 2025, $1.9 billion for the first six months of 2026 and $1.1 billion for the first six months of 2025. Higher net income attributable to common stock in the 2026 periods, compared to the 2025 periods, primarily reflects the impact of lower income taxes and noncontrolling interests in the 2026 periods associated with a higher contribution of operating income from our U.S. copper mines. The first six months of 2026 also include the recognition of a gain for the insurance settlement related to the September 2025 external mud rush incident. Refer to “Consolidated Results” and “Business Divisions and Segments” for further discussion.
At June 30, 2026, we had consolidated debt of $9.4 billion and consolidated cash and cash equivalents of $4.1 billion. Net debt totaled $2.1 billion, excluding $3.2 billion of debt for PTFI’s downstream processing facilities. Refer to “Net Debt” for a reconciliation of consolidated debt and consolidated cash and cash equivalents to net debt.
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At June 30, 2026, we had $3.0 billion of availability under our revolving credit facility, and PTFI and Cerro Verde had $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.
During the first six months of 2026, we acquired 3.4 million shares of our common stock for a total cost of $203 million ($59.30 average cost per share). As of July 31, 2026, we have acquired a total of 55.4 million shares ($39.80 average cost per share) and have $2.8 billion available under our $5.0 billion share repurchase program.
Refer to Note 4 and “Capital Resources and Liquidity” for further discussion.
OUTLOOK
Our financial results vary as a result of fluctuations in metals market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets” below, and “Risk Factors” in Part I, Item 1A. of our 2025 Form 10-K and Part II, Item 1A. herein for further discussion. Because we cannot control the prices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures.
The forward-looking statements below and elsewhere in this Form 10-Q are based on current market conditions, are as of the filing date of this Form 10-Q, are based on several assumptions and are subject to significant risks and uncertainties. Refer to “Cautionary Statement” below.
Consolidated Sales Volumes
Following are our projected consolidated sales volumes for the year 2026:
Copper (millions of recoverable pounds): | ||||||||
| U.S. copper mines | 1,360 | |||||||
| South America operations | 1,022 | |||||||
| Indonesia operations | 675 | |||||||
| Total | 3,057 | |||||||
Gold (thousands of recoverable ounces) | 654 | |||||||
Molybdenum (millions of recoverable pounds) | 93 | a | ||||||
a.Includes 60 million pounds produced by our U.S. copper mines and Cerro Verde mine, and 33 million pounds produced by our primary molybdenum mines.
Projected consolidated sales volumes for third-quarter 2026 are expected to approximate 750 million pounds of copper, 160 thousand ounces of gold and 22 million pounds of molybdenum. We expect an increase in second-half 2026 copper sales volumes, compared to first-half 2026, primarily as a result of the continued phased ramp-up of the Grasberg Block Cave underground mine and at our U.S. copper mines associated with incremental production from leaching initiatives.
Consolidated copper and gold production volumes for the year 2026 are expected to exceed sales volumes, reflecting deferrals of approximately 100 million pounds of copper and 50 thousand ounces of gold associated with inventory held at PTFI’s smelting operations.
Projected sales volumes are dependent on operational performance; the phased ramp-up of the Grasberg Block Cave underground mine at PTFI; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below.
Consolidated Unit Net Cash Costs
Based on achievement of current sales volume and cost estimates and assuming average prices of $4,000 per ounce of gold and $30.00 per pound of molybdenum for the second half of 2026, consolidated unit net cash costs (net of by-product credits and excluding idle facility and restoration costs) for our copper mines are expected to average $1.90 per pound of copper for the year 2026 (including $2.00 per pound of copper in third-quarter 2026). The impact of price changes on consolidated unit net cash costs for the second half of 2026 would approximate $0.02 per pound of copper for each $100 per ounce change in the average price of gold and $0.03 per pound of copper for each $2 per pound change in the average price of molybdenum.
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During the phased ramp-up period of the Grasberg Block Cave underground mine and until PTFI’s operations return to normal capacity, a portion of PTFI's production and delivery costs will be recognized as idle facility costs, which are non-inventoriable. Idle facility and restoration costs are expected to approximate $1.2 billion for the year 2026 (including $0.3 billion in third-quarter 2026). Refer to “Operations – Indonesia” for further discussion.
Projected unit net cash costs for the year 2026 are dependent on operational performance; the phased ramp-up of the Grasberg Block Cave underground mine at PTFI; impacts related to the conflict in the Middle East, including changes in energy costs and other consumables; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below.
Consolidated Operating Cash Flows
Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors, such as the phased ramp-up of the Grasberg Block Cave underground mine at PTFI and impacts related to the conflict in the Middle East, including changes in energy costs and other consumables.
Consolidated operating cash flows are expected to approximate $8.3 billion for the year 2026, net of $0.3 billion of working capital and other uses, based on current sales volume and cost estimates, and assuming average prices of $6.00 per pound of copper, $4,000 per ounce of gold and $30.00 per pound of molybdenum for the second half of 2026. Estimated consolidated operating cash flows for the year 2026 include a projected income tax provision of $2.6 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2026). The impact of price changes on consolidated operating cash flows for the second half of 2026 would approximate $150 million for each $0.10 per pound change in the average price of copper, $40 million for each $100 per ounce change in the average price of gold and $45 million for each $2 per pound change in the average price of molybdenum.
Consolidated Capital Expenditures
Following is a summary of expected capital expenditures for the year 2026 (in billions):
| Major projects | $ | 3.0 | a | |||||
| Sustaining capital and other | 1.3 | |||||||
| Total | $ | 4.3 | ||||||
a.Includes $1.4 billion for planned projects, primarily associated with underground mine development and supporting mill and power capital costs in the Grasberg minerals district and a leaching project at El Abra, and $1.6 billion for discretionary growth projects, primarily in the Grasberg minerals district for the continued development of Kucing Liar and at Bagdad for tailings infrastructure.
Expected capital expenditures for the year 2026 do not include project capital costs associated with the expansion project at Bagdad, which we are preparing for a potential investment decision during the second half of 2026. Refer to “Operations – United States” for further discussion.
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MARKETS
Prices for copper, gold and molybdenum are affected by numerous factors beyond our control and can fluctuate significantly (for further discussion refer to “Risk Factors” contained in Part I, Item 1A. of our 2025 Form 10-K and Part II, Item 1A. herein).
This graph presents London Metal Exchange (LME) and Commodity Exchange Inc. (COMEX) copper settlement prices and the combined reported stocks of copper at the LME, COMEX and the Shanghai Futures Exchange from January 2016 through June 2026. LME and COMEX copper prices are market-driven and subject to change based on current and future tariff rates, additional changes in trade policies, domestic inventory levels, supply and demand, and other factors.
Copper sales from our South America and Indonesia operations are generally based on quoted LME monthly average copper settlement prices. During second-quarter 2026, LME copper settlement prices averaged $6.05 per pound (ranging from a low of $5.51 per pound to a high of $6.39 per pound) and closed at $6.05 per pound on June 30, 2026. The LME copper settlement price was $6.28 per pound on July 31, 2026, and on August 6, 2026, the LME copper settlement price closed at an all-time high of $6.56 per pound.
Copper sales from our U.S. copper mines are generally based on prevailing COMEX monthly average copper settlement prices. During second-quarter 2026, COMEX copper settlement prices averaged $6.16 per pound (ranging from a low of $5.54 per pound to a high of $6.65 per pound) and closed at $6.19 per pound on June 30, 2026. The COMEX copper settlement price was $6.44 per pound on July 31, 2026, and on August 5, 2026, the COMEX copper settlement price closed at an all-time high of $6.70 per pound.
The conflict in the Middle East continues to contribute to copper price volatility. While direct impacts on copper demand have been limited, secondary effects, including higher energy prices and freight costs, are weighing on global manufacturing activity and delaying demand recovery, particularly in energy-importing regions.
We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in electrification initiatives, continued urbanization in developing countries, data center and AI growth and growing connectivity globally.
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This graph presents London Bullion Market Association (London) PM gold prices from January 2016 through June 2026. During second-quarter 2026, gold prices retreated from all-time highs reached at the beginning of 2026, as macroeconomic conditions tightened, driven by a stronger U.S. dollar, higher U.S. treasury yields and rising energy costs stemming from the conflict in the Middle East.
During second-quarter 2026, London PM gold prices averaged $4,506 per ounce (ranging from a low of $4,002 per ounce to a high of $4,871 per ounce) and closed at $4,026 per ounce on June 30, 2026. The London PM gold price closed at $4,027 per ounce on July 31, 2026.
This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices from January 2016 through June 2026. Overall global demand for molybdenum is driven by energy, power generation, aerospace and construction sectors. We believe fundamentals for molybdenum are positive with favorable demand drivers and limited supply.
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During second-quarter 2026, the weekly average prices for molybdenum averaged $29.40 per pound (ranging from a low of $26.67 per pound to a high of $31.29 per pound) and closed at $31.29 per pound on June 30, 2026. The Platts Metals Daily Molybdenum Dealer Oxide weekly average price closed at $32.61 per pound on July 31, 2026.
CONSOLIDATED RESULTS
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
SUMMARY FINANCIAL DATA | (in millions, except per share amounts) | |||||||||||||||||||||||||
Revenuesa,b | $ | 7,029 | $ | 7,582 | $ | 13,263 | $ | 13,310 | ||||||||||||||||||
Operating incomea,c | $ | 2,003 | $ | 2,432 | $ | 4,140 | $ | 3,735 | ||||||||||||||||||
Net income attributable to common stockb,c | $ | 984 | d | $ | 772 | e | $ | 1,865 | d | $ | 1,124 | e | ||||||||||||||
Diluted net income per share of common stockb,c | $ | 0.68 | d | $ | 0.53 | e | $ | 1.29 | d | $ | 0.77 | e | ||||||||||||||
| Diluted weighted-average shares of common stock outstanding | 1,443 | 1,443 | 1,444 | 1,444 | ||||||||||||||||||||||
Operating cash flowsf | $ | 2,048 | $ | 2,195 | $ | 3,543 | $ | 3,253 | ||||||||||||||||||
Capital expenditures | $ | 1,104 | $ | 1,261 | $ | 2,077 | $ | 2,433 | ||||||||||||||||||
| At June 30: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 4,080 | $ | 4,490 | $ | 4,080 | $ | 4,490 | ||||||||||||||||||
Total debt, including current portion | $ | 9,386 | $ | 9,251 | $ | 9,386 | $ | 9,251 | ||||||||||||||||||
a.Refer to “Business Divisions and Segments” for a summary of revenues and operating income by operating division.
b.Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $98 million ($35 million to net income attributable to common stock or $0.02 per share) in second-quarter 2026, $(35) million ($(10) million to net income attributable to common stock or $(0.01) per share) in second-quarter 2025, $58 million ($24 million to net income attributable to common stock or $0.02 per share) for the first six months of 2026 and $63 million ($21 million to net income attributable to common stock or $0.01 per share) for the first six months of 2025. Refer to Note 5 for further discussion.
c.We defer 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 $(18) million ($(6) million to net income attributable to common stock or less than $0.01 per share) in second-quarter 2026, $34 million ($9 million to net income attributable to common stock or $0.01 per share) in second-quarter 2025, $52 million ($17
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million to net income attributable to common stock or $0.01 per share) for the first six months of 2026 and $148 million ($44 million to net income attributable to common stock or $0.03 per share) for the first six months of 2025.
d.Net income attributable to common stock (i.e., net of any taxes and noncontrolling interests) includes net charges totaling $96 million ($0.06 per share) in second-quarter 2026 and $45 million ($0.03 per share) for the first six months of 2026, primarily reflecting idle facility and restoration costs associated with PTFI’s September 2025 external mud rush incident. Net charges for the first six months of 2026 were partially offset by a gain on the insurance settlement associated with the September 2025 external mud rush incident.
e.Net income attributable to common stock (i.e., net of any taxes and noncontrolling interests) includes net charges totaling $18 million ($0.01 per share) in second-quarter 2025, primarily associated with adjustments to environmental obligations and related litigation reserves and oil and gas impairments, and $24 million ($0.02 per share) for the first six months of 2025, primarily associated with remediation costs related to the October 2024 fire incident at PTFI’s smelter, charges for the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities and oil and gas impairments.
f.Cash used for working capital, including tax payments, totaled $596 million in second-quarter 2026, $45 million in second-quarter 2025, $457 million for the first six months of 2026 and $342 million for the first six months of 2025.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| SUMMARY OPERATING DATA | ||||||||||||||||||||||||||
Copper (millions of recoverable pounds) | ||||||||||||||||||||||||||
| Production | 786 | 963 | 1,448 | 1,831 | ||||||||||||||||||||||
| Sales, excluding purchases | 710 | 1,016 | 1,367 | 1,888 | ||||||||||||||||||||||
| Average realized price per pound | $ | 6.17 | $ | 4.54 | $ | 6.04 | $ | 4.48 | ||||||||||||||||||
Site production and delivery costs per pounda | $ | 3.28 | b | $ | 2.71 | $ | 3.28 | b | $ | 2.65 | ||||||||||||||||
Unit net cash costs per pounda | $ | 1.97 | b | $ | 1.13 | $ | 1.94 | b | $ | 1.56 | ||||||||||||||||
Gold (thousands of recoverable ounces) | ||||||||||||||||||||||||||
| Production | 192 | 317 | 289 | 604 | ||||||||||||||||||||||
Sales, excluding purchases | 123 | 522 | 244 | 650 | ||||||||||||||||||||||
| Average realized price per ounce | $ | 4,520 | $ | 3,291 | $ | 4,704 | $ | 3,260 | ||||||||||||||||||
Molybdenum (millions of recoverable pounds) | ||||||||||||||||||||||||||
| Production | 23 | 22 | 45 | 45 | ||||||||||||||||||||||
Sales, excluding purchases | 25 | 22 | 49 | 42 | ||||||||||||||||||||||
| Average realized price per pound | $ | 28.75 | $ | 21.10 | $ | 27.03 | $ | 21.37 | ||||||||||||||||||
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 our consolidated financial statements, refer to “Product Revenues and Production Costs.”
b.Excludes $0.40 per pound in second-quarter 2026 and $0.50 per pound for the first six months of 2026 of idle facility and restoration costs associated with PTFI’s September 2025 external mud rush incident. Refer to “Operations – Indonesia” for further discussion.
Revenues
Consolidated revenues totaled $7.0 billion in second-quarter 2026, $7.6 billion in second-quarter 2025 and $13.3 billion for both the first six months of 2026 and 2025. Our revenues primarily include the sale of copper cathode, copper rod and copper concentrate, as well as gold and molybdenum products in various forms. Refer to Note 8 for a summary of product revenues.
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Following is a summary of changes in our consolidated revenues between periods (in millions):
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
| Consolidated revenues – 2025 period | $ | 7,582 | $ | 13,310 | ||||||||||
| (Lower) higher sales volumes: | ||||||||||||||
| Copper | (1,389) | (2,337) | ||||||||||||
| Gold | (1,313) | (1,323) | ||||||||||||
| Molybdenum | 69 | 154 | ||||||||||||
| Higher average realized prices: | ||||||||||||||
| Copper | 1,157 | 2,132 | ||||||||||||
| Gold | 151 | 352 | ||||||||||||
| Molybdenum | 193 | 278 | ||||||||||||
| Adjustments for prior period provisionally priced copper sales | 133 | (5) | ||||||||||||
| Higher Atlantic Copper revenues | 212 | 426 | ||||||||||||
| Lower revenues from purchased copper | (9) | (218) | ||||||||||||
| Lower treatment charges | 8 | 33 | ||||||||||||
| Lower export duties | 146 | 202 | ||||||||||||
| Lower royalties | 75 | 90 | ||||||||||||
| Silver and other, including intercompany eliminations | 14 | 169 | ||||||||||||
| Consolidated revenues – 2026 period | $ | 7,029 | $ | 13,263 | ||||||||||
Sales Volumes. Consolidated copper and gold sales volumes decreased in the 2026 periods, compared to the 2025 periods, primarily reflecting lower operating rates at PTFI during the phased ramp-up of the Grasberg Block Cave underground mine. Refer to “Operations” for further discussion of sales volumes at our mining operations.
Realized Prices. Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum. Our average realized prices in second-quarter 2026, compared with second-quarter 2025, were 36% higher for copper, 37% higher for gold and 36% higher for molybdenum. Average realized prices for the first six months of 2026, compared with the first six months of 2025, were 35% higher for copper, 44% higher for gold and 26% higher for molybdenum.
Average realized copper prices include net favorable adjustments to current period provisionally priced copper sales totaling $40 million in second-quarter 2026, $69 million in second-quarter 2025, $59 million for the first six months of 2026 and $87 million for the first six months of 2025. As discussed in Note 5, certain sales contracts for copper and gold provide final pricing in a specified future month (generally one to four months from the shipment date). We record revenues and invoice customers at the time of shipment based on then-current LME prices for copper or London PM prices for gold, which results in an embedded derivative on provisionally priced 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. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper and gold prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper and gold prices, the opposite occurs.
Prior Period Provisionally Priced Copper Sales. Net favorable (unfavorable) adjustments to prior periods’ provisionally priced copper sales (i.e., provisionally priced sales at March 31, 2026 and 2025, and December 31,
2025 and 2024) recorded in consolidated revenues totaled $98 million in second-quarter 2026, $(35) million in second-quarter 2025, $58 million for the first six months of 2026 and $63 million for the first six months of 2025. Refer to Notes 5 and 8 for a summary of total adjustments to prior period and current period provisionally priced copper sales.
At June 30, 2026, we had provisionally priced copper sales totaling 202 million pounds (99 million pounds net of intercompany sales and noncontrolling interests) recorded at an average price of $6.07 per pound, subject to final LME copper settlement prices over the next several months. We estimate that each $0.05 change in the price realized from the June 30, 2026, recorded provisional price would have an approximate $9 million effect on 2026 revenues ($3 million to 2026 net income attributable to common stock). The LME copper settlement price closed at $6.28 per pound on July 31, 2026.
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Atlantic Copper Revenues. Revenues at Atlantic Copper, our wholly owned smelter and refinery in Huelva, Spain, totaled $1.0 billion in second-quarter 2026, $0.8 billion in second-quarter 2025, $2.0 billion for the first six months of 2026 and $1.6 billion for the first six months of 2025. Higher revenues in the 2026 periods, compared to the 2025 periods, primarily reflect higher metals prices, partly offset by lower copper and gold sales volumes.
Sales of Purchased Copper. We purchase copper cathode primarily for processing by our U.S. Rod & Refining operations. The volumes of copper purchases vary depending on cathode production from our operations and totaled 37 million pounds in second-quarter 2026, 35 million pounds in second-quarter 2025, 47 million pounds for the first six months of 2026 and 101 million pounds for the first six months of 2025. Revenues associated with the sale of purchased copper vary with the volume of copper purchases and changes in copper prices.
Treatment Charges. Revenues from our copper concentrate sales are recorded net of treatment charges, which will vary with market conditions, sales volumes and the price of copper. Treatment charges totaled $8 million in second-quarter 2026, $16 million in second-quarter 2025, $10 million for the first six months of 2026 and $43 million for the first six months of 2025. The 2026 periods primarily reflect lower treatment charge rates as a result of favorable market conditions and the lack of copper concentrate sales volumes in Indonesia as PTFI is now a fully integrated producer of refined copper, gold and silver.
Export Duties. Prior to the expiration of its export license in September 2025, PTFI was assessed export duties on copper concentrate sales at a rate of 7.5%. PTFI incurred export duties totaling $146 million in second-quarter 2025 and $202 million for the first six months of 2025. Refer to Note 11 of our 2025 Form 10-K for further discussion.
Royalties. PTFI pays royalties on all copper and gold sales, the amount of which varies with sales volumes and metal prices. Royalties totaled $60 million in second-quarter 2026, $135 million in second-quarter 2025, $113 million for the first six months of 2026 and $203 million for the first six months of 2025.
Production and Delivery Costs
Consolidated production and delivery costs totaled $4.3 billion in both second-quarter 2026 and 2025, $8.4 billion for the first six months of 2026 and $8.0 billion for the first six months of 2025. The 2026 periods, compared with the 2025 periods, primarily reflect higher costs of copper purchases at Atlantic Copper and higher costs for supplies, diesel fuel and other consumables at our mining operations, partly offset by the impact of reduced operating rates at PTFI following the September 2025 external mud rush incident. The first six months of 2025 also included charges totaling $73 million associated with a planned maintenance turnaround at the Miami smelter.
Mining Unit Site Production and Delivery Costs Per Pound. Site production and delivery costs for our copper mining operations primarily include labor, energy and other commodity-based inputs, such as sulfuric acid, steel, reagents, liners, tires and explosives. Consolidated unit site production and delivery costs (before net noncash and other costs) for our copper mines averaged $3.28 per pound of copper in second-quarter 2026 and for the first six months of 2026, compared to $2.71 per pound of copper in second-quarter 2025 and $2.65 per pound of copper for the first six months of 2025.
During the phased ramp-up period of the Grasberg Block Cave underground mine and until PTFI’s operations return to normal capacity, a portion of PTFI's production and delivery costs will be recognized as idle facility costs, which are non-inventoriable. Idle facility and restoration costs totaled $284 million ($0.40 per pound of copper) in second-quarter 2026 and $690 million ($0.50 per pound of copper) for the first six months of 2026, which were excluded from consolidated net cash costs.
Refer to “Operations” for further discussion of unit net cash costs associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated statements of income.
Depreciation, Depletion and Amortization
Depreciation will vary under the unit-of-production (UOP) method as a result of changes in sales volumes and the related UOP rates at our mining operations. Consolidated depreciation, depletion and amortization (DD&A) totaled $523 million in second-quarter 2026, $668 million in second-quarter 2025, $1.0 billion for the first six months of 2026 and $1.1 billion for the first six months of 2025. The decrease in DD&A in the 2026 periods, compared to the 2025 periods, primarily reflects lower UOP depreciation as a result of lower operating rates at PTFI, partly offset by higher depreciation associated with placing assets into service at our U.S. copper mines and at PTFI in 2025.
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Based on current sales volume estimates, consolidated DD&A is estimated to approximate $2.3 billion for the year 2026, including $0.3 billion recognized as idle facility costs associated with the September 2025 external mud rush incident. Refer to Note 7 for further discussion of idle facility costs.
Environmental Obligations and Shutdown Costs
Environmental obligations reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates. Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations.
Net charges for environmental obligations and shutdown costs totaled $13 million in second-quarter 2026, $27 million in second-quarter 2025, $30 million for the first six months of 2026 and $37 million for the first six months of 2025.
Gain on PTFI Mud Rush Incident Insurance Settlement
In first-quarter 2026, PTFI recognized a gain of $0.7 billion ($0.2 billion after taxes and noncontrolling interests) for an insurance settlement associated with the September 2025 external mud rush incident under its property and business interruption policies. PTFI collected the proceeds from this settlement in April 2026.
Interest Expense, Net
Consolidated interest expense, net totaled $95 million in second-quarter 2026, $82 million in second-quarter 2025, $209 million for the first six months of 2026 and $152 million for the first six months of 2025. Higher interest expense, net for the 2026 periods, primarily reflects the placement of assets in service at our U.S. copper mines and at PTFI in 2025, which reduced the amount of interest eligible for capitalization in 2026.
Refer to Note 4 for further discussion of consolidated interest costs (before capitalization) and capitalized interest.
Other Income, Net
Other income, net, primarily includes amounts associated with interest income, currency exchange gains and losses, and mark-to-market impacts associated with investments and trust assets used to satisfy financial assurance obligations for our New Mexico mining operations.
Other income, net, which totaled $22 million in second-quarter 2026, $41 million in second-quarter 2025, $33 million for the first six months of 2026 and $99 million for the first six months of 2025, was lower in the 2026 periods reflecting mark-to-market impacts associated with equity investments. Lower other income, net, in the first six months of 2026, also reflects net currency exchange losses, compared to net currency exchange gains for the first six months of 2025.
Income Taxes
Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision (in millions, except percentages):
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||
Incomea | Effective Tax Rate | Income Tax (Provision) Benefit | Income (Loss)a | Effective Tax Rate | Income Tax (Provision) Benefit | |||||||||||||||||||||||||||||||||
U.S.b | $ | 1,049 | 6% | $ | (58) | c | $ | (2) | —% | $ | 2 | |||||||||||||||||||||||||||
| South America | 1,571 | 40% | (624) | 890 | 39% | (344) | ||||||||||||||||||||||||||||||||
| Indonesia | 1,335 | 35% | (466) | 2,672 | 36% | (965) | ||||||||||||||||||||||||||||||||
| Eliminations and other | 9 | N/A | 3 | 122 | N/A | (72) | ||||||||||||||||||||||||||||||||
Rate adjustmentd | — | N/A | (52) | — | N/A | 29 | ||||||||||||||||||||||||||||||||
| Consolidated FCX | $ | 3,964 | 30% | $ | (1,197) | $ | 3,682 | 37% | $ | (1,350) | ||||||||||||||||||||||||||||
a.Represents income (loss) before income taxes, equity in affiliated companies' net earnings and noncontrolling interests.
b.In addition to our U.S. copper and molybdenum mines, the U.S. jurisdiction reflects non-operating sites and corporate-level expenses, which include interest expense associated with our senior notes and general and administrative expenses. Refer to “Business Divisions and Segments” for additional information.
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c.The U.S. income tax provision primarily relates to the U.S. Corporate Alternative Minimum Tax (CAMT) provisions, which do not benefit from regular tax U.S. net operating loss carryforwards.
d.In accordance with applicable accounting rules, we adjust our interim provision for income taxes equal to our consolidated tax rate.
Assuming achievement of current sales volume and cost estimates and prices of $6.00 per pound for copper, $4,000 per ounce for gold and $30.00 per pound for molybdenum for the second half of 2026, we estimate our consolidated effective tax rate for the year 2026 would approximate 30%, including estimated effective tax rates of 40% for Peru, 36% for Indonesia and 7% for the U.S. (associated with CAMT provisions). Changes in projected sales volumes, commodity prices, and the relative proportion of jurisdictional income during the second half of 2026 could impact our consolidated effective tax rate for the year 2026.
Noncontrolling Interests
Net income attributable to noncontrolling interests, which is primarily associated with PTFI, Cerro Verde and El Abra, totaled $407 million in second-quarter 2026, $775 million in second-quarter 2025, $0.9 billion for the first six months of 2026 and $1.2 billion for the first six months of 2025. Refer to "Business Divisions and Segments” below for net income attributable to noncontrolling interests for each of our business segments.
In May 2026, we increased our ownership interest in Cerro Verde from 55.08% to 55.66%.
Based on achievement of current sales volume and cost estimates and assuming average prices of $6.00 per pound of copper, $4,000 per ounce of gold and $30.00 per pound of molybdenum for the second half of 2026, we estimate that net income attributable to noncontrolling interests will approximate $2.0 billion for the year 2026, which would represent approximately 24% of our consolidated income before income taxes. The actual amount will depend on many factors, including relative performance of each business segment, commodity prices, costs and other factors.
BUSINESS DIVISIONS AND SEGMENTS
We have organized our mining operations into four primary divisions – U.S. copper mines, South America operations, Indonesia operations and Molybdenum mines. Refer to “Operations” below for discussion of our mining operations.
U.S. Rod & Refining consists of copper conversion facilities, including a refinery and two rod mills. These operations process copper produced at our U.S. copper mines and purchased copper into copper cathode and rod. At times, these operations refine copper and produce copper rod for customers on a toll basis.
Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. For the first six months of 2026, Atlantic Copper purchased 82% of its concentrate from third parties and 18% from our South America operations.
Corporate, Other & Eliminations consist of our other mining operations, exploration activities, corporate and elimination items. Other mining operations include the Miami smelter, molybdenum conversion facilities in the U.S. and in Europe, five non-operating mines in the U.S. and other mining support entities.
Intersegment sales are based on terms similar to arm’s-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.
We allocate certain operating costs, expenses and capital expenditures to our business divisions and 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 in the below tables), 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 business divisions and segments. Accordingly, the following information reflects management determinations that may not be indicative of what the actual financial performance of each business division and segment would be if it was an independent entity.
Refer to Note 8 for a summary of our reportable segments as determined under generally accepted accounting principles (GAAP) in the U.S.
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Financial Information by Business Division and 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 June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 17 | $ | 11 | $ | 28 | $ | 1,159 | $ | 323 | $ | 1,482 | $ | 1,482 | $ | — | $ | 2,228 | $ | 1,024 | $ | 785 | a | $ | 7,029 | ||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 739 | 1,514 | 2,253 | 328 | — | 328 | 1 | 204 | 11 | 6 | (2,803) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 425 | 867 | 1,292 | 664 | 192 | 856 | 724 | b | 151 | 2,215 | 1,007 | (1,925) | 4,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DD&A | 55 | 80 | 135 | 82 | 25 | 107 | 228 | c | 22 | 2 | 7 | 22 | 523 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1 | — | 1 | 1 | — | 1 | 32 | — | — | 8 | 93 | 135 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 10 | 9 | 19 | 4 | 2 | 6 | — | — | — | — | 28 | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 13 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of assets | — | — | — | — | — | — | — | — | — | (18) | — | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 265 | 569 | 834 | 736 | 104 | 840 | 499 | 31 | 22 | 26 | (249) | 2,003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (1) | — | (1) | (6) | — | (6) | (6) | — | — | (10) | (72) | (95) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (expense), net | — | 1 | 1 | 15 | 1 | 16 | (10) | — | (1) | 6 | 10 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | — | — | — | (298) | (45) | (343) | (164) | — | — | (4) | (33) | (544) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net earnings | — | — | — | — | — | — | 5 | — | — | — | — | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | — | — | — | (214) | (29) | (243) | (175) | — | — | — | 11 | (407) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | 984 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets at June 30, 2026 | 3,551 | 7,736 | 11,287 | 9,013 | 2,441 | 11,454 | 27,949 | 1,998 | 390 | 2,054 | 4,595 | 59,727 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 50 | 202 | 252 | 82 | 89 | 171 | 516 | 20 | 14 | 67 | 64 | 1,104 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 63 | $ | 64 | $ | 127 | $ | 836 | $ | 183 | $ | 1,019 | $ | 3,419 | $ | — | $ | 1,692 | $ | 815 | $ | 510 | a | $ | 7,582 | ||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 559 | 1,028 | 1,587 | 193 | 49 | 242 | (2) | d | 180 | 9 | 3 | (2,019) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 435 | 779 | 1,214 | 590 | 178 | 768 | 1,124 | 128 | 1,693 | 791 | (1,436) | 4,282 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DD&A | 46 | 72 | 118 | 94 | 19 | 113 | 389 | 26 | 1 | 7 | 14 | 668 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1 | — | 1 | 1 | 1 | 2 | 35 | — | — | 7 | 82 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 8 | 5 | 13 | 4 | — | 4 | 1 | 1 | — | — | 27 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 27 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 132 | 236 | 368 | 340 | 34 | 374 | 1,868 | 25 | 7 | 13 | (223) | 2,432 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | — | (1) | (1) | (4) | — | (4) | (16) | — | — | (7) | (54) | (82) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (1) | 1 | — | 20 | 2 | 22 | 15 | (1) | (1) | (14) | 20 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | — | — | — | (139) | (12) | (151) | (677) | — | — | (2) | (20) | (850) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net earnings | — | — | — | — | — | — | 6 | — | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | (105) | (4) | (109) | (648) | — | — | — | (18) | (775) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | 772 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets at June 30, 2025 | 3,337 | 7,253 | 10,590 | 8,385 | 2,091 | 10,476 | 27,781 | 2,027 | 432 | 1,508 | 3,678 | 56,492 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 70 | 203 | 273 | 78 | 14 | 92 | 740 | 27 | 26 | 45 | 58 | 1,261 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Financial Information by Business Division and 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 29 | $ | 19 | $ | 48 | $ | 2,377 | $ | 576 | $ | 2,953 | $ | 2,554 | $ | — | $ | 4,280 | $ | 1,990 | $ | 1,438 | a | $ | 13,263 | ||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 1,503 | 2,929 | 4,432 | 491 | — | 491 | 1 | 416 | 21 | 9 | (5,370) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 862 | 1,721 | 2,583 | 1,315 | 350 | 1,665 | 1,434 | b | 287 | 4,261 | 1,936 | (3,781) | 8,385 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DD&A | 124 | 176 | 300 | 168 | 42 | 210 | 422 | c | 46 | 3 | 14 | 42 | 1,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1 | 1 | 2 | 3 | — | 3 | 57 | — | — | 19 | 216 | 297 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 18 | 17 | 35 | 8 | 3 | 11 | — | — | — | — | 45 | 91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | 30 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on PTFI mud rush incident insurance settlement | — | — | — | — | — | — | (699) | — | — | — | — | (699) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of assets | — | — | — | — | — | — | — | — | — | (18) | — | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 527 | 1,033 | 1,560 | 1,374 | 181 | 1,555 | 1,341 | 83 | 37 | 48 | (484) | 4,140 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (2) | — | (2) | (10) | — | (10) | (21) | — | — | (19) | (157) | (209) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (1) | — | (1) | 11 | 5 | 16 | (12) | — | (1) | 7 | 24 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | — | — | — | (544) | (80) | (624) | (466) | — | — | (7) | (100) | (1,197) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net earnings | — | — | — | — | — | — | 10 | — | — | — | 1 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | (396) | (48) | (444) | (467) | — | — | — | (2) | (913) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | 1,865 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 94 | 402 | 496 | 156 | 129 | 285 | 972 | 49 | 28 | 123 | 124 | 2,077 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaffiliated customers | $ | 146 | $ | 172 | $ | 318 | $ | 1,753 | $ | 395 | $ | 2,148 | $ | 4,983 | $ | — | $ | 3,316 | $ | 1,567 | $ | 978 | a | $ | 13,310 | ||||||||||||||||||||||||||||||||||||||||||||||
| Intersegment | 1,053 | 1,973 | 3,026 | 367 | 122 | 489 | 4 | 357 | 17 | 6 | (3,899) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production and delivery | 854 | 1,572 | 2,426 | 1,177 | 379 | 1,556 | 1,702 | 250 | 3,315 | 1,525 | (2,736) | e | 8,038 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DD&A | 96 | 146 | 242 | 185 | 39 | 224 | 575 | 52 | 2 | 14 | 25 | 1,134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1 | 1 | 2 | 3 | 1 | 4 | 62 | — | — | 16 | 197 | 281 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exploration and research expenses | 14 | 11 | 25 | 6 | 2 | 8 | 3 | 1 | — | — | 48 | 85 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental obligations and shutdown costs | (7) | — | (7) | — | — | — | — | — | — | — | 44 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 241 | 415 | 656 | 749 | 96 | 845 | 2,645 | 54 | 16 | 18 | (499) | 3,735 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | — | (1) | (1) | (8) | — | (8) | (25) | — | — | (18) | (100) | (152) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (2) | 4 | 2 | 52 | 1 | 53 | 31 | (1) | (1) | (19) | 34 | 99 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | — | — | — | (310) | (34) | (344) | (965) | — | — | (12) | (29) | (1,350) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity in affiliated companies’ net earnings (losses) | — | — | — | — | — | — | 9 | — | — | — | (1) | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | (231) | (21) | (252) | (923) | — | — | — | (41) | (1,216) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | 1,124 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 129 | 399 | 528 | 152 | 25 | 177 | 1,444 | 46 | 43 | 88 | 107 | 2,433 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Financial Information by Business Division and Segment (continued)
a.Includes revenues from our molybdenum sales company, which includes sales of molybdenum produced by our primary molybdenum mines and certain of the U.S. copper mines and the Cerro Verde mine.
b.Includes idle facility and restoration costs associated with the September 2025 external mud rush incident totaling $284 million in second-quarter 2026 and $690 million for the first six months of 2026. Refer to Note 7 for further discussion.
c.Includes idle facility costs associated with the September 2025 external mud rush incident totaling $79 million in second-quarter 2026 and $172 million for the first six months of 2026. Refer to Note 7 for further discussion.
d.Represents a volume adjustment on concentrate shipped to Atlantic Copper in a prior period.
e.Includes charges totaling $73 million associated with planned maintenance turnaround costs at the Miami smelter.
OPERATIONS
Leaching and Technology Innovation Initiatives
We are incorporating new applications, technologies and data analytics into our leaching processes across our U.S. and South America operations to strengthen long-term cost competitiveness and unlock significant value. Incremental copper production from these initiatives totaled 47 million pounds in second-quarter 2026 and 101 million pounds for the first six months of 2026.
We continue to apply operational enhancements on a larger scale and are advancing testing of innovative technologies to target significant increases in incremental production from leaching initiatives. We are targeting reaching an annual run rate of 300 million pounds of copper from these initiatives by the end of 2026, with potential for further significant increases in recoverable metal in future years. We are deploying large-scale testing of an internally developed additive product at our Morenci operations with encouraging early results. In addition, we plan to field-test two additional additives which, together with the application of heat to our stockpiles, could further enhance recoveries. Continued success with these initiatives would be expected to contribute to additions in recoverable copper in leach stockpiles and favorably impact average unit net cash costs.
In addition to our innovative leaching initiatives, we are pursuing opportunities to leverage new technologies and analytic tools in automation and operating practices with a goal of improving operating efficiencies and reducing costs and capital intensity of our current operations and future development projects. We believe our innovative leaching and technology initiatives will strengthen our operational performance and enhance opportunities for profitable growth.
Responsible Production
The Copper Mark. We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry, and extended to other metals, including molybdenum. To achieve the Copper Mark and Molybdenum Mark, as applicable, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria. Awarded sites must be revalidated every three years. In June 2026, PTFI’s downstream processing facilities achieved their initial Copper Mark validation. We have achieved, and are committed to maintaining, the Copper Mark and Molybdenum Mark, as applicable, at all of our operating sites globally.
Feasibility and Optimization Studies
We are engaged in various studies associated with potential future expansion projects primarily at our mining operations. We are also undertaking optimization projects at our current mining operations to enhance efficiencies and reduce costs. The costs for these studies are charged to production and delivery costs as incurred and totaled $33 million in second-quarter 2026, $52 million in second-quarter 2025, $64 million for the first six months of 2026 and $88 million for the first six months of 2025. We estimate the costs of these studies will total $200 million for the year 2026, subject to market conditions and other factors.
U.S. Tariffs
Government action related to tariffs and other controls on imports and exports or trade agreements or policies of the U.S. and other countries are difficult to predict and have and may in the future cause significant volatility in our financial performance and in the trading prices of our common stock. Refer to “Risk Factors” in Part I, Item 1A. of our 2025 Form 10-K and Part II, Item 1A. herein for further discussion.
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Section 232 Tariffs. Effective in August 2025, a 50% tariff was imposed under Section 232 of the Trade Expansion Act, targeting U.S. imports of semi-finished copper products and copper-intensive derivative products. However, refined copper, including cathodes, concentrates and scrap, was exempted from the tariff, and the U.S. government indicated it would reassess the potential for a refined copper tariff of 15% beginning in January 2027 and rising to 30% in 2028. The evaluation remains open.
Additionally, the U.S. Secretary of Commerce was directed to impose requirements that 25% of copper cathode and concentrate produced in the U.S. be sold domestically in 2027, potentially increasing to 30% in 2028 and 40% in 2029. Because of our integrated operations, these requirements are not expected to negatively impact our business.
We are the leading copper supplier in the U.S., providing approximately 70% of total U.S. refined copper production through our integrated domestic mining and processing facilities, most of which is sold domestically. For the six months ended June 30, 2026, copper from our U.S. mining operations was sold 75% as rod and 25% as cathode. We are well positioned in the U.S. with sizeable resources and opportunities to leverage existing infrastructure through brownfield expansions.
United States
We manage seven copper operations in the U.S. – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. We also operate a copper smelter and rod mill in Miami, Arizona, and a copper refinery and rod mill in El Paso, Texas. All of our U.S. operations are wholly owned, except for Morenci. We record our 72% undivided joint venture interest in Morenci using the proportionate consolidation method.
Our U.S. copper operations include open-pit mining, sulfide-ore concentrating, leaching and solution extraction/electrowinning (SX/EW) facilities. A majority of the copper produced at our U.S. copper operations is cast into copper rod by our U.S. Rod & Refining segment. The remainder of our U.S. copper production is sold as copper cathode or copper concentrate. Molybdenum concentrate, gold and silver are also produced by certain of our U.S. copper operations.
Development Activities. We have substantial reserves, resources and future opportunities for organic growth in the U.S. associated with existing operations. Several initiatives are underway to target significant future growth in our U.S. copper operations, including the leaching and technology innovation initiatives discussed above.
We have defined an opportunity 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. We completed technical and economic studies in late 2023 and have advanced these studies in preparation for a potential investment decision during the second half of 2026. These studies indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year and increase molybdenum production by 10 to 12 million pounds per year. Expanded operations would position Bagdad as the second largest copper mine in the U.S. (behind our flagship Morenci mine) and among the lowest cost mines in our U.S. portfolio, and Bagdad would benefit from improved efficiency and lower unit net cash costs through economies of scale.
Capital cost estimates for the Bagdad expansion are being finalized, taking into account current estimates, including for materials, equipment and labor. Current estimates, which continue to be reviewed, indicate project capital costs of approximately $4.5 billion, approximately 30% above the prior $3.5 billion estimate prepared in 2023. The revisions incorporate the impact of cost escalation, revisions in project scope and revised estimates associated with additional engineering. Taking into account higher capital cost estimates and enhanced operational plans, the project economics continue to be supported at an incentive copper price of approximately $4.00 per pound and would require three to four years to complete, with no expected major permitting hurdles. The decision to proceed with and timing of the potential expansion will take into account overall copper market conditions and other factors.
We continue to advance 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 significant expansion project. We expect to complete these studies during 2026. The decision to proceed with and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors.
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Operating Data. Following is summary consolidated operating data for our U.S. copper mines:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Operating Data, Net of Joint Venture Interests | ||||||||||||||||||||||||||
Copper (millions of recoverable pounds) | ||||||||||||||||||||||||||
| Production | 332 | 336 | 641 | 637 | ||||||||||||||||||||||
| Sales, excluding purchases | 312 | 308 | 639 | 615 | ||||||||||||||||||||||
| Average realized price per pound | $ | 6.25 | $ | 4.81 | $ | 6.05 | $ | 4.71 | ||||||||||||||||||
Molybdenum (millions of recoverable pounds) | ||||||||||||||||||||||||||
Productiona | 10 | 9 | 17 | 17 | ||||||||||||||||||||||
| 100% Operating Data | ||||||||||||||||||||||||||
| Leach operations | ||||||||||||||||||||||||||
| Leach ore placed in stockpiles (metric tons per day) | 885,400 | 621,200 | 790,900 | 602,600 | ||||||||||||||||||||||
| Average copper ore grade (%) | 0.19 | 0.21 | 0.20 | 0.21 | ||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 219 | 203 | 419 | 394 | ||||||||||||||||||||||
| Mill operations | ||||||||||||||||||||||||||
| Ore milled (metric tons per day) | 336,700 | 335,500 | 337,300 | 328,700 | ||||||||||||||||||||||
| Average ore grade (%): | ||||||||||||||||||||||||||
| Copper | 0.29 | 0.32 | 0.29 | 0.31 | ||||||||||||||||||||||
| Molybdenum | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||||||||||||||||
| Copper recovery rate (%) | 82.6 | 85.4 | 82.2 | 84.8 | ||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 158 | 183 | 312 | 337 | ||||||||||||||||||||||
a.Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at our U.S. copper mines.
Our consolidated copper sales volumes from the U.S. copper mines totaled 312 million pounds in second-quarter 2026, 308 million pounds in second-quarter 2025, 639 million pounds for the first six months of 2026 and 615 million pounds for the first six months of 2025.
Consolidated copper sales from our U.S. mines are expected to approximate 1.4 billion pounds for the year 2026. Refer to “Outlook” for projected molybdenum sales volumes.
Unit Net Cash Costs. We believe unit net cash costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.
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Gross Profit per Pound of Copper and Molybdenum
The following table summarizes unit net cash costs and gross profit per pound at our U.S. copper mines for the second quarters and first six months of 2026 and 2025. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||
| By- Product Method | Co-Product Method | By- Product Method | Co-Product Method | |||||||||||||||||||||||||||||||||||
| Copper | Molyb- denuma | Copper | Molyb- denuma | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.25 | $ | 6.25 | $ | 28.18 | $ | 4.81 | $ | 4.81 | $ | 19.87 | ||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.71 | 3.15 | 18.60 | 3.44 | 3.05 | 15.24 | ||||||||||||||||||||||||||||||||
| By-product credits | (0.92) | — | — | (0.55) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.15 | 0.14 | — | 0.15 | 0.15 | — | ||||||||||||||||||||||||||||||||
| Unit net cash costs | 2.94 | 3.29 | 18.60 | 3.04 | 3.20 | 15.24 | ||||||||||||||||||||||||||||||||
| DD&A | 0.43 | 0.39 | 1.26 | 0.38 | 0.34 | 1.16 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.15 | b | 0.13 | 0.47 | 0.16 | b | 0.15 | 0.45 | ||||||||||||||||||||||||||||||
| Total unit costs | 3.52 | 3.81 | 20.33 | 3.58 | 3.69 | 16.85 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.03 | 0.03 | — | 0.01 | 0.01 | — | ||||||||||||||||||||||||||||||||
| Gross profit per pound | $ | 2.76 | $ | 2.47 | $ | 7.85 | $ | 1.24 | $ | 1.13 | $ | 3.02 | ||||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 311 | 311 | 309 | 309 | ||||||||||||||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 10 | 9 | ||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||
| By- Product Method | Co-Product Method | By- Product Method | Co-Product Method | |||||||||||||||||||||||||||||||||||
| Copper | Molyb- denuma | Copper | Molyb- denuma | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.05 | $ | 6.05 | $ | 27.01 | $ | 4.71 | $ | 4.71 | $ | 20.00 | ||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.59 | 3.11 | 18.17 | 3.46 | 3.07 | 16.09 | ||||||||||||||||||||||||||||||||
| By-product credits | (0.80) | — | — | (0.52) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.14 | 0.13 | — | 0.14 | 0.13 | — | ||||||||||||||||||||||||||||||||
| Unit net cash costs | 2.93 | 3.24 | 18.17 | 3.08 | 3.20 | 16.09 | ||||||||||||||||||||||||||||||||
| DD&A | 0.47 | 0.41 | 1.51 | 0.39 | 0.35 | 1.21 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.15 | b | 0.13 | 0.45 | 0.14 | b | 0.14 | 0.38 | ||||||||||||||||||||||||||||||
| Total unit costs | 3.55 | 3.78 | 20.13 | 3.61 | 3.69 | 17.68 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.01 | 0.01 | — | 0.01 | 0.01 | — | ||||||||||||||||||||||||||||||||
| Gross profit per pound | $ | 2.51 | $ | 2.28 | $ | 6.88 | $ | 1.11 | $ | 1.03 | $ | 2.32 | ||||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 639 | 639 | 616 | 616 | ||||||||||||||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 17 | 17 | ||||||||||||||||||||||||||||||||||||
a.Reflects sales of molybdenum produced by certain of our U.S. copper mines to our molybdenum sales company at market-based pricing.
b.Includes charges for feasibility and optimization studies totaling $0.06 per pound of copper in second-quarter 2026, $0.09 per pound of copper in second-quarter 2025, $0.05 per pound of copper for the first six months of 2026 and $0.07 per pound of copper for the first six months of 2025.
Our U.S. copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. Average unit net cash costs (net of by-product credits) for our U.S. copper mines totaled $2.94 per pound of copper in second-quarter 2026, $3.04 per pound of copper in second-quarter 2025, $2.93 per pound of copper for the first six months of 2026 and $3.08 per pound of copper for the first six months of 2025. Lower average unit net cash costs in the 2026 periods, compared to the 2025 periods, primarily reflects higher by-product credits, partly offset by higher costs for supplies, diesel fuel and other consumables.
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Because certain assets are depreciated on a straight-line basis, the average unit depreciation rate for our U.S. copper mines may vary with asset additions and the level of copper production and sales.
Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.
Based on achievement of current sales volume and cost estimates, and assuming an average price of $30.00 per pound of molybdenum for the second half of 2026, average unit net cash costs (net of by-product credits) for our U.S. copper mines are expected to approximate $2.96 per pound of copper for the year 2026. Our U.S. copper mines’ average unit net cash costs for the year 2026 would change by approximately $0.03 per pound for each $2 per pound change in the average price of molybdenum for the second half of 2026.
South America
We manage two copper operations in South America – Cerro Verde in Peru (55.66%-owned) and El Abra in Chile (51%-owned). These operations are consolidated in our financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.
Development Activities. At the El Abra operations in Chile, we have an attractive opportunity to expand the operation to include a major mill facility similar to the large-scale concentrator at Cerro Verde. The project could result in the addition of over 700 million pounds of copper production per year. In March 2026, El Abra submitted an environmental impact study to Chile regulatory authorities. Preliminary estimates, which remain under review, indicate that project capital costs would approximate $7.5 billion based on estimates prepared in 2024 and that the project economics would be supported using an incentive copper price of less than $4.00 per pound. The decision to proceed with and timing of the potential project will take into account required permitting, market conditions and other factors.
Operating Data. Following is summary consolidated operating data for South America operations:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
Copper (millions of recoverable pounds) | ||||||||||||||||||||||||||
| Production | 249 | 268 | 507 | 539 | ||||||||||||||||||||||
| Sales | 245 | 265 | 493 | 540 | ||||||||||||||||||||||
| Average realized price per pound | $ | 6.11 | $ | 4.47 | $ | 6.03 | $ | 4.39 | ||||||||||||||||||
Molybdenum (millions of recoverable pounds) | ||||||||||||||||||||||||||
Productiona | 5 | 4 | 11 | 10 | ||||||||||||||||||||||
| Leach operations | ||||||||||||||||||||||||||
| Leach ore placed in stockpiles (metric tons per day) | 147,200 | 182,800 | 130,300 | 175,600 | ||||||||||||||||||||||
| Average copper ore grade (%) | 0.38 | 0.35 | 0.40 | 0.37 | ||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 58 | 69 | 120 | 146 | ||||||||||||||||||||||
| Mill operations | ||||||||||||||||||||||||||
| Ore milled (metric tons per day) | 416,400 | 404,800 | 418,400 | 408,100 | ||||||||||||||||||||||
| Average ore grade (%): | ||||||||||||||||||||||||||
| Copper | 0.29 | 0.31 | 0.29 | 0.30 | ||||||||||||||||||||||
| Molybdenum | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||
| Copper recovery rate (%) | 83.2 | 83.9 | 83.4 | 83.8 | ||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 191 | 199 | 387 | 393 | ||||||||||||||||||||||
a.Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the Cerro Verde mine.
Our consolidated copper sales volumes from South America operations totaled 245 million pounds in second-quarter 2026, 265 million pounds in second-quarter 2025, 493 million pounds for the first six months of 2026, and 540 million pounds for the first six months of 2025. Lower copper sales volumes in the 2026 periods, compared to the 2025 periods, primarily reflect lower leach production and the processing of lower grade stockpile ore as a result of mine sequencing.
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Copper sales from South America operations are expected to approximate 1.0 billion pounds for the year 2026. Refer to “Outlook” for projected molybdenum sales volumes.
Unit Net Cash Costs. We believe unit net cash costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.
Gross Profit per Pound of Copper
The following table summarizes unit net cash costs and gross profit per pound of copper at our South America operations for the second quarters and first six months of 2026 and 2025. Unit net cash costs per pound of copper are reflected under the by-product and co-product methods as the South America operations also had sales of molybdenum and silver. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| By-Product Method | Co-Product Method | By-Product Method | Co-Product Method | |||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.11 | $ | 6.11 | $ | 4.47 | $ | 4.47 | ||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.33 | 2.92 | 2.76 | 2.53 | ||||||||||||||||||||||
| By-product credits | (0.90) | — | (0.37) | — | ||||||||||||||||||||||
| Treatment charges | 0.04 | 0.04 | 0.06 | 0.06 | ||||||||||||||||||||||
| Royalty on metals | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||
| Unit net cash costs | 2.48 | 2.97 | 2.46 | 2.60 | ||||||||||||||||||||||
| DD&A | 0.44 | 0.38 | 0.42 | 0.39 | ||||||||||||||||||||||
| Noncash and other costs, net | 0.11 | a | 0.10 | 0.08 | a | 0.08 | ||||||||||||||||||||
| Total unit costs | 3.03 | 3.45 | 2.96 | 3.07 | ||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.37 | 0.37 | (0.07) | (0.07) | ||||||||||||||||||||||
| Gross profit per pound | $ | 3.45 | $ | 3.03 | $ | 1.44 | $ | 1.33 | ||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 245 | 245 | 265 | 265 | ||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| By-Product Method | Co-Product Method | By-Product Method | Co-Product Method | |||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.03 | $ | 6.03 | $ | 4.39 | $ | 4.39 | ||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.25 | 2.85 | 2.76 | 2.51 | ||||||||||||||||||||||
| By-product credits | (0.85) | — | (0.41) | — | ||||||||||||||||||||||
| Treatment charges | 0.02 | 0.02 | 0.07 | 0.07 | ||||||||||||||||||||||
| Royalty on metals | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||
| Unit net cash costs | 2.43 | 2.88 | 2.43 | 2.59 | ||||||||||||||||||||||
| DD&A | 0.42 | 0.38 | 0.42 | 0.38 | ||||||||||||||||||||||
| Noncash and other costs, net | 0.09 | a | 0.08 | 0.06 | a | 0.06 | ||||||||||||||||||||
| Total unit costs | 2.94 | 3.34 | 2.91 | 3.03 | ||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.09 | 0.09 | 0.10 | 0.10 | ||||||||||||||||||||||
| Gross profit per pound | $ | 3.18 | $ | 2.78 | $ | 1.58 | $ | 1.46 | ||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 493 | 493 | 540 | 540 | ||||||||||||||||||||||
a.Includes charges for feasibility and optimization studies totaling $0.04 per pound of copper in the second quarter and for the first six months of 2026, $0.07 per pound of copper in second-quarter 2025 and $0.06 per pound of copper for the first six
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months of 2025. Also includes charges for inventory write-offs totaling $0.04 per pound of copper in second-quarter 2026 and $0.02 per pound of copper for the first six months of 2026.
Average unit net cash costs (net of by-product credits) for South America operations totaled $2.48 per pound of copper in second-quarter 2026, $2.46 per pound of copper in second-quarter 2025 and $2.43 per pound of copper for both the first six months of 2026 and 2025. Average unit net cash costs in the 2026 periods, compared to the 2025 periods, reflect lower copper volumes and higher labor and energy costs, partially offset by higher by-product credits.
Revenues from Cerro Verde’s copper concentrate sales are recorded net of treatment charges, which will vary with market conditions, sales volumes and the price of copper.
Because certain assets are depreciated on a straight-line basis, South America’s unit depreciation rate may vary with asset additions and the level of copper production and sales.
Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.
Based on achievement of current sales volume and cost estimates and assuming an average price of $30.00 per pound of molybdenum for the second half of 2026, average unit net cash costs (net of by-product credits) for our South America operations are expected to approximate $2.56 per pound of copper for the year 2026. Our South America operations’ average unit net cash costs for the year 2026 would change by approximately $0.04 per pound for each $2 per pound change in the average price of molybdenum for the second half of 2026.
Indonesia
PTFI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. In addition to copper and gold, the Grasberg minerals district also produces silver. With the completion of its downstream processing facilities, PTFI is a fully integrated producer of refined copper, gold and silver. We have a 48.76% ownership interest in PTFI and manage its operations. PTFI's results are consolidated in our financial statements.
Operating, Development and Exploration Activities. Over a multi-year investment period, PTFI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone (DMLZ) and Big Gossan) and completed related expansion of the milling facilities. At normal operating rates, PTFI’s underground operations produce approximately 1.7 billion pounds of copper and 1.3 million ounces of gold per year and are among the lowest cost copper mining operations in the world.
PTFI has identified additional exploration targets to leverage its infrastructure in the Grasberg minerals district, including a potential extension below the DMLZ underground mine, which requires further drilling and evaluation.
Kucing Liar. Since 2022, PTFI has conducted long-term mine development activities at its Kucing Liar deposit in the Grasberg minerals district. PTFI’s long-term mine plans include a ramp-up of Kucing Liar, commencing in the 2030 timeframe, to a design capacity of approximately 130,000 metric tons of ore per day. Average annual Kucing Liar production at full rates would approximate 750 million pounds of copper and 735 thousand ounces of gold and would enable continuity of large-scale production in the Grasberg minerals district.
At June 30, 2026, PTFI had incurred approximately $1.4 billion for Kucing Liar development, and capital investments are estimated to approximate an additional $4 billion through 2033 (averaging approximately $0.5 billion per year).
Long-Term Mining Rights. In February 2026, we and PTFI entered into a Memorandum of Understanding (MOU) with the Indonesia government for a life of resource extension of operating rights in the Grasberg minerals district beyond the current expiration in 2041. Under the terms of the MOU, we would maintain our current ownership interest in PTFI of 48.76% through 2041 and hold approximately 37% beginning in 2042. The existing governance and operating structure, and terms of the existing shareholder agreement, special mining business license (IUPK) and other agreements in effect will continue over the life of the resource.
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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.
In June 2026, PTFI submitted its application for extension of its IUPK, and we and PTFI are working with the Indonesia government to complete the formal license process. The extension of operating rights and other terms are subject to, among other things, the Indonesia government’s issuance of an amended IUPK and entry into definitive agreements.
Grasberg Block Cave Ramp-Up. Following the September 2025 external mud rush incident, PTFI has progressed a series of activities to address the incident and remains focused on a safe and sustainable ramp-up to full operating capacity.
PTFI completed remediation and restoration activities required for the restart of Production Blocks 2 and 3 and commenced initial ramp-up activities at the end of March 2026. During second-quarter 2026, PTFI made steady progress on its phased ramp-up and achieved its planned operating rates for the period. Planned upgrades to the material handling system at the Grasberg Block Cave haulage level are advancing on schedule.
PTFI continues to advance activities for a planned future restart of Production Block 1S and risk mitigation strategies associated with drainage and cave management technologies.
PTFI’s overall production rates are expected to approximate 65% of capacity in the second half of 2026, 80% by mid-2027 and approach full capacity by the end of 2027.
Downstream Processing Facilities. PTFI’s smelter and PT Smelting, PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia, smelt and refine copper concentrate from PTFI, and the precious metals refinery (PMR) processes anode slimes from PTFI’s smelter and PT Smelting.
During 2024, construction of PTFI’s smelter in Eastern Java, Indonesia, was completed. In October 2024, during start-up activities, a fire occurred that required temporary suspension of smelting operations to complete repairs. Operations commenced in May 2025, following completion of repairs, and in July 2025, PTFI’s smelter produced its first copper cathode. As part of start-up activities, PTFI commenced gold production from the PMR in December 2024 and operated on a limited basis during 2025, primarily processing anode slimes from PT Smelting.
Following the September 2025 external mud rush incident, during the phased ramp-up period of the Grasberg Block Cave underground mine, smelting operations in Indonesia at both PTFI’s smelter and PT Smelting were adjusted as a result of limited copper concentrate availability. In late December 2025, PT Smelting resumed operations and by the end of second-quarter 2026 was operating at capacity. PTFI’s smelter is expected to restart operations in the second half of 2026 at reduced rates, dependent on available copper concentrate from PTFI’s mining operations.
The PMR continues to operate on a limited basis following the September 2025 external mud rush incident, primarily processing anode slimes from PT Smelting.
We expect higher variability between PTFI’s production and sales until its downstream processing facilities achieve normalized operating rates.
Natural Gas Facilities. PTFI plans to transition its existing energy source from coal to natural gas, which would meaningfully reduce PTFI’s greenhouse gas emissions at the Grasberg minerals district. Following the September 2025 external mud rush incident, PTFI’s planned investments for a new gas-fired combined cycle facility have been deferred with start-up and commissioning of the new facility scheduled in the second half of 2029. Once complete, PTFI’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 regasification unit.
Labor Matters. In March 2026, PTFI reached a new two-year collective labor agreement (CLA) with its three employee unions at its Grasberg minerals district operations. PTFI did not recognize any significant nonrecurring costs associated with the new CLA.
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Operating Data. Following is summary consolidated operating data for Indonesia operations:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||||||||
| Production | 205 | 359 | 300 | 655 | |||||||||||||||||||
| Sales | 153 | 443 | 235 | 733 | |||||||||||||||||||
| Average realized price per pound | $ | 6.12 | $ | 4.40 | $ | 6.04 | $ | 4.35 | |||||||||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||||||||
| Production | 184 | 311 | 276 | 595 | |||||||||||||||||||
| Sales | 118 | 518 | 234 | 643 | |||||||||||||||||||
| Average realized price per ounce | $ | 4,529 | $ | 3,290 | $ | 4,709 | $ | 3,260 | |||||||||||||||
| Ore extracted and milled (metric tons per day): | |||||||||||||||||||||||
| DMLZ | 69,900 | 61,400 | 68,400 | 60,900 | |||||||||||||||||||
| Grasberg Block Cave | 53,000 | 114,500 | 28,800 | 104,100 | |||||||||||||||||||
| Big Gossan | 6,700 | 7,300 | 7,000 | 6,900 | |||||||||||||||||||
| Adjustments | 1,500 | (700) | 3,500 | 200 | |||||||||||||||||||
| Total | 131,100 | 182,500 | 107,700 | 172,100 | |||||||||||||||||||
| Average ore grades: | |||||||||||||||||||||||
| Copper (%) | 0.91 | 1.15 | 0.81 | 1.14 | |||||||||||||||||||
| Gold (grams per metric ton) | 0.62 | 0.77 | 0.56 | 0.80 | |||||||||||||||||||
| Recovery rates (%): | |||||||||||||||||||||||
| Copper | 89.8 | 88.1 | 90.0 | 88.0 | |||||||||||||||||||
| Gold | 80.0 | 74.8 | 79.9 | 75.5 | |||||||||||||||||||
PTFI’s consolidated sales volumes totaled 153 million pounds of copper and 118 thousand ounces of gold in second-quarter 2026, 443 million pounds of copper and 518 thousand ounces of gold in second-quarter 2025, 235 million pounds of copper and 234 thousand ounces of gold for the first six months of 2026 and 733 million pounds of copper and 643 thousand ounces of gold for the first six months of 2025. Lower sales volumes in the 2026 periods, compared to the 2025 periods, reflect lower operating rates at PTFI during the phased ramp-up of the Grasberg Block Cave underground mine.
Historically, PTFI recognized concentrate sales upon loading of shipments; however, as a fully integrated producer of refined copper, gold and silver, PTFI’s concentrate is now processed by PT Smelting and its smelter, and refined sales are recognized after processing and sale of the metal. Accordingly, there may be variability in the timing between production and sales volumes.
Consolidated sales volumes from PTFI are expected to approximate 0.7 billion pounds of copper and 650 thousand ounces of gold for the year 2026. Copper and gold production volumes for the year 2026 are expected to exceed sales volumes, reflecting deferrals of approximately 100 million pounds of copper and 50 thousand ounces of gold associated with inventory held at PTFI’s smelting operations.
Unit Net Cash (Credits) Costs. We believe unit net cash (credits) costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.
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Gross Profit per Pound of Copper and per Ounce of Gold
The following table summarizes the unit net cash (credits) costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the second quarters and first six months of 2026 and 2025. Refer to “Product Revenues and Production Costs” for an explanation of “by-product” and “co-product” methods and a reconciliation of unit net cash (credits) costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| By-Product Method | Co-Product Method | By-Product Method | Co-Product Method | ||||||||||||||||||||||||||||||||
| Copper | Gold | Copper | Gold | ||||||||||||||||||||||||||||||||
| Revenues | $ | 6.12 | $ | 6.12 | $ | 4,529 | $ | 4.40 | $ | 4.40 | $ | 3,290 | |||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2.30 | 1.41 | 1,040 | 2.17 | 1.14 | 854 | |||||||||||||||||||||||||||||
| By-product credits | (3.96) | — | — | (3.98) | — | — | |||||||||||||||||||||||||||||
| Treatment charges | 0.47 | a | 0.28 | 209 | 0.19 | 0.11 | 77 | ||||||||||||||||||||||||||||
| Export duties | — | — | — | 0.33 | 0.17 | 128 | |||||||||||||||||||||||||||||
| Royalty on metals | 0.38 | 0.23 | 176 | 0.30 | 0.16 | 120 | |||||||||||||||||||||||||||||
| Unit net cash (credits) costs | (0.81) | 1.92 | 1,425 | (0.99) | 1.58 | 1,179 | |||||||||||||||||||||||||||||
| DD&A | 1.50 | b | 0.90 | 671 | 0.88 | 0.46 | 346 | ||||||||||||||||||||||||||||
| Noncash and other costs, net | 1.96 | c | 1.19 | 880 | 0.18 | d | 0.09 | 70 | |||||||||||||||||||||||||||
| Total unit costs | 2.65 | 4.01 | 2,976 | 0.07 | 2.13 | 1,595 | |||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | — | — | — | (0.05) | (0.05) | 26 | |||||||||||||||||||||||||||||
| Gross profit per pound/ounce | $ | 3.47 | $ | 2.11 | $ | 1,553 | $ | 4.28 | $ | 2.22 | $ | 1,721 | |||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 153 | 153 | 443 | 443 | |||||||||||||||||||||||||||||||
| Gold sales (thousands of recoverable ounces) | 118 | 518 | |||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| By-Product Method | Co-Product Method | By-Product Method | Co-Product Method | ||||||||||||||||||||||||||||||||
| Copper | Gold | Copper | Gold | ||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.04 | $ | 6.04 | $ | 4,709 | $ | 4.35 | $ | 4.35 | $ | 3,260 | |||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2.52 | 1.35 | 1,052 | 1.90 | 1.13 | 848 | |||||||||||||||||||||||||||||
| By-product credits | (5.26) | — | — | (2.98) | — | — | |||||||||||||||||||||||||||||
| Treatment charges | 0.52 | a | 0.28 | 215 | 0.19 | 0.12 | 87 | ||||||||||||||||||||||||||||
| Export duties | — | — | — | 0.28 | 0.16 | 123 | |||||||||||||||||||||||||||||
| Royalty on metals | 0.46 | 0.25 | 193 | 0.27 | 0.16 | 125 | |||||||||||||||||||||||||||||
| Unit net cash (credits) costs | (1.76) | 1.88 | 1,460 | (0.34) | 1.57 | 1,183 | |||||||||||||||||||||||||||||
| DD&A | 1.79 | b | 0.96 | 748 | 0.78 | 0.47 | 350 | ||||||||||||||||||||||||||||
| Noncash and other costs, net | 3.07 | c | 1.64 | 1,281 | 0.24 | d | 0.14 | 107 | |||||||||||||||||||||||||||
| Total unit costs | 3.10 | 4.48 | 3,489 | 0.68 | 2.18 | 1,640 | |||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.03 | 0.03 | 5 | 0.03 | 0.03 | 31 | |||||||||||||||||||||||||||||
| Gross profit per pound/ounce | $ | 2.97 | $ | 1.59 | $ | 1,225 | $ | 3.70 | $ | 2.20 | $ | 1,651 | |||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 235 | 235 | 733 | 733 | |||||||||||||||||||||||||||||||
| Gold sales (thousands of recoverable ounces) | 234 | 643 | |||||||||||||||||||||||||||||||||
a.Reflects downstream tolling fees and operating costs and does not represent market treatment and refining rates. Favorable offsets associated with incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities are included in revenues and by-product credits.
b.Includes idle facility costs associated with the September 2025 external mud rush incident totaling $0.52 per pound of copper in second-quarter 2026 and $0.73 per pound of copper for the first six months of 2026.
c.Includes idle facility and restoration costs associated with the September 2025 external mud rush incident totaling $1.86 per pound of copper in second-quarter 2026 and $2.93 per pound of copper for the first six months of 2026.
d.Includes charges for (i) operational readiness and start-up costs associated with PTFI’s downstream processing facilities totaling $0.13 per pound of copper in second-quarter 2025 and $0.14 per pound of copper for the first six months of 2025
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and (ii) remediation costs related to the October 2024 incident at PTFI’s smelter totaling $0.02 per pound of copper in second-quarter 2025 and $0.04 per pound of copper for the first six months of 2025. The first six months of 2025 also includes $0.03 per pound of copper related to the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities.
A significant portion of PTFI’s costs are fixed and unit costs vary depending on volumes and other factors. Additionally, during the phased ramp-up period of the Grasberg Block Cave underground mine and until PTFI’s operations return to normal capacity, a portion of PTFI's production and delivery costs will be recognized as idle facility costs, which are non-inventoriable. Idle facility and restoration costs totaled $284 million ($1.86 per pound of copper) in second-quarter 2026 and $690 million ($2.93 per pound of copper) for the first six months of 2026, which were excluded from PTFI's unit net cash credits.
Excluding amounts recognized as idle facility costs, PTFI’s unit net cash credits (including by-product credits) totaled $0.81 per pound of copper in second-quarter 2026, $0.99 per pound of copper in second-quarter 2025, $1.76 per pound of copper for the first six months of 2026 and $0.34 per pound of copper for the first six months of 2025. PTFI’s unit net cash credits (including by-product credits) for the 2026 periods primarily reflect lower copper volumes.
Treatment charges reflect downstream tolling fees and operating costs and vary with the volume of metals sold and the price of copper, and royalties vary with the volume of metals sold and the prices of copper, gold and silver. The increase in treatment charges and royalties per pound of copper in the 2026 periods, compared to the 2025 periods, primarily reflects higher copper and gold prices, as well as the impact of lower copper volumes. In addition, as a fully integrated producer of refined copper, gold and silver in Indonesia, there may be variability in the rate of royalties per pound of copper as a result of the ratio of copper sales to gold and silver sales.
Prior to the expiration of PTFI’s export license on September 16, 2025, export duties were assessed on its copper concentrate sales at a rate of 7.5%. Refer to Note 11 of our 2025 Form 10-K for further discussion.
Because certain assets are depreciated on a straight-line basis, PTFI’s unit depreciation rate may vary with asset additions and the level of copper volumes and changes in copper and gold inventory. PTFI’s DD&A per pound of copper for the 2026 periods reflects the impact of lower copper sales volumes and higher depreciation associated with placing assets into service in 2025.
Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.
Based on achievement of current sales volume and cost estimates and assuming an average price of $4,000 per ounce of gold for the second half of 2026, average unit net cash credits (including by-product credits and excluding idle facility and restoration costs) for PTFI are expected to approximate $1.22 per pound of copper for the year 2026. PTFI’s average unit net cash credits for the year 2026 would change by approximately $0.06 per pound of copper for each $100 per ounce change in the average price of gold for the second half of 2026.
Molybdenum Mines
We operate 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 our U.S. copper mines and Cerro Verde mine is processed at our conversion facilities.
Operating and Development Activities. Production from the Molybdenum mines totaled 8 million pounds of molybdenum in second-quarter 2026, 9 million pounds in second-quarter 2025, 17 million pounds for the first six months of 2026 and 18 million pounds for the first six months of 2025. Refer to “Consolidated Results” for our consolidated molybdenum operating data, which includes sales of molybdenum produced at our primary molybdenum operations and from our U.S. copper mines and Cerro Verde mine. Refer to “Outlook” for projected consolidated molybdenum sales volumes and to “Markets” for a discussion of molybdenum prices.
Unit Net Cash Costs per Pound of Molybdenum. We believe unit net cash costs per pound of molybdenum is a measure that provides investors with information about the cash-generating capacity of our mining operations
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expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.
Average unit net cash costs for our Molybdenum mines totaled $19.20 per pound of molybdenum in second-quarter 2026, $14.20 per pound of molybdenum in second-quarter 2025, $17.31 per pound of molybdenum for the first six months of 2026 and $13.96 per pound of molybdenum for the first six months of 2025. Higher unit net cash costs in the 2026 periods, compared with the 2025 periods, primarily reflect lower volumes and higher costs for supplies, energy and labor.
Average unit net cash costs for our Molybdenum mines are expected to approximate $17.91 per pound of molybdenum for the year 2026, based on achievement of current sales volume and cost estimates. Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.
Downstream Processing Facilities
Through our downstream integration, we are able to place a significant portion of our copper concentrate production. PTFI’s downstream processing facilities in Eastern Java, Indonesia, are wholly owned and operated, and PTFI has a 66% ownership interest in PT Smelting, which is operated by Mitsubishi Materials Corporation. We wholly own and operate the Miami smelter and rod mill in Arizona, the El Paso refinery and rod mill in Texas, and our Atlantic Copper smelter and refinery in Spain.
We manufacture continuous cast copper rod at our U.S. rod facilities primarily using copper produced at our U.S. copper mines and processing facilities. Rod production from these facilities approximated one billion pounds of copper for each of the last three years and is expected to approximate one billion pounds of copper for the year 2026.
Sulfuric acid production from our smelters in the U.S., Spain and Indonesia, together with our sulfur burner plant at the Safford mine, generally exceeds the requirements of our SX/EW leaching operations. Accordingly, volatility in the price of sulfuric acid is not expected to have a material impact on our consolidated results. Certain of our SX/EW leaching operations in the U.S. and South America purchase sulfuric acid from third parties, and while sulfuric acid price fluctuations may impact costs for these mining operations, favorable offsets associated with sulfuric acid sales by our smelters are reflected in revenues.
PTFI is a fully integrated producer of refined copper, gold and silver. PTFI’s smelter and PT Smelting smelt and refine copper concentrate from PTFI’s mines in the Grasberg minerals district, and the PMR processes anode slimes from the smelter and PT Smelting. PTFI’s treatment charges, which are recorded in production and delivery costs, reflect downstream tolling fees and operating costs and do not represent market treatment and refining rates. Favorable offsets associated with incremental metals and sulfuric acid produced and sold by PT Smelting and PTFI’s downstream processing facilities are included in revenues and by-product credits.
Our Miami smelter in Arizona has been operating for over 100 years and has been upgraded numerous times during that period to implement new technologies, improve production and comply with air quality requirements. We performed a major maintenance turnaround for the Miami smelter in first-quarter 2025 and incurred maintenance charges and idle facility costs totaling $73 million for the first six months of 2025.
Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. For the first six months of 2026, Atlantic Copper purchased 82% of its concentrate from third parties and 18% from our South America operations. Atlantic Copper’s treatment charges, which consist of a base rate per pound of copper and per ounce of gold, are generally fixed and represent a cost to our mining operations and income to Atlantic Copper (i.e., higher treatment charges benefit our Atlantic Copper operations). Our U.S. copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery.
We defer recognizing profits on sales from our mining operations to Atlantic Copper until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions)
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additions to operating income totaling $(18) million ($(6) million to net income attributable to common stock) in second-quarter 2026, $34 million ($9 million to net income attributable to common stock) in second-quarter 2025, $52 million ($17 million to net income attributable to common stock) for the first six months of 2026 and $148 million ($44 million to net income attributable to common stock) for the first six months of 2025. Our net deferred profits on our inventories at Atlantic Copper to be recognized in future periods’ operating income totaled $88 million ($29 million to net income attributable to common stock) at June 30, 2026. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in our net deferred profits and quarterly earnings.
CAPITAL RESOURCES AND LIQUIDITY
Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. Refer to “Consolidated Results,” and Item 1A. “Risk Factors” contained in Part I of 2025 Form 10-K and Part II, Item 1A. herein for further discussion on our energy requirements and related costs.
We remain focused on managing operating and capital costs efficiently and continue to advance several important value-enhancing initiatives. We believe the actions we have taken in recent years to build a solid balance sheet, successfully expand low-cost operations and maintain flexible organic growth options while maintaining sufficient liquidity, will allow us to continue to execute our business plans in a prudent manner during periods of economic uncertainty while preserving substantial future asset values. We closely monitor market and business conditions and adjust our operating plans to protect liquidity and preserve our asset values, when necessary. We expect to maintain a strong balance sheet and liquidity position as we focus on building long-term value in our business, executing our operating plans safely, responsibly and efficiently, and prudently managing operating costs and capital expenditures.
Based on current sales volume, cost and metal price estimates and planned capital expenditures discussed in “Outlook,” our available cash and cash equivalents plus our projected consolidated operating cash flows of $8.3 billion for the year 2026 exceed our expected consolidated capital expenditures of $4.3 billion.
We expect to have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next 12 months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable), senior note maturities and any share or debt repurchases. Planned capital expenditures for major projects over the next few years are primarily associated with underground mine development in the Grasberg minerals district and expansion projects in the U.S.
At June 30, 2026, we had $4.1 billion in consolidated cash and cash equivalents, and we also had $3.0 billion of availability under our revolving credit facility, and PTFI and Cerro Verde had $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.
Financial Policy. Our financial policy is aligned with our strategic objectives of maintaining a solid balance sheet, providing cash returns to common stockholders 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 common stockholder returns and the balance to debt reduction and investments in value-enhancing growth projects, subject to us maintaining our net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding debt for PTFI’s downstream processing facilities). Our Board of Directors (Board) reviews the structure of the performance-based payout framework at least annually.
At June 30, 2026, our net debt totaled $2.1 billion, which excludes $3.2 billion of debt for PTFI’s downstream processing facilities. Refer to "Net Debt" for further discussion.
Refer to Note 4 and “Financing Activities” below for further discussion of shares acquired in the first six months of 2026 under our $5.0 billion share repurchase program.
On June 24, 2026, our Board declared cash dividends totaling $0.15 per share on our common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which were paid on August 3, 2026, to common stockholders of record on July 15, 2026.
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The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of our Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable. Our share repurchase program may be modified, increased, suspended or terminated at any time at our Board’s discretion.
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 June 30, 2026 (in billions):
| Cash at domestic companies | $ | 2.0 | ||||||
| Cash at international operations | 2.1 | |||||||
| Total consolidated cash and cash equivalents | 4.1 | |||||||
| Noncontrolling interests’ share | (0.9) | |||||||
| Cash, net of noncontrolling interests’ share | 3.2 | |||||||
| Withholding taxes | (0.1) | |||||||
| Net cash available | $ | 3.1 | ||||||
Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayments, working capital or other cash needs. Management believes that sufficient liquidity is available in the U.S. from cash balances and availability from our revolving credit facility. We elected to not permanently reinvest earnings from our foreign subsidiaries, and we recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S. From time to time, our foreign subsidiaries distribute earnings to the U.S. through dividends that are subject to applicable withholding taxes and noncontrolling interests’ share.
Debt
At June 30, 2026, consolidated debt totaled $9.4 billion, with a weighted-average interest rate of 5.2%. Substantially all of our outstanding debt is fixed rate and our total debt has an average remaining duration of approximately eight years. We have $0.7 billion in scheduled senior note maturities in April 2027, and $0.6 billion in scheduled senior note maturities in the second half of 2027.
In May 2026, we and PTFI entered into a new $3.0 billion, five-year senior unsecured revolving credit facility that matures in May 2031, which replaced the prior revolving credit facility, and Cerro Verde entered into a new $350 million, five-year, senior unsecured revolving credit facility that matures in May 2031, which replaced its prior revolving credit facility. The terms of the new facilities are substantially similar to the respective prior facilities.
At June 30, 2026, there were no borrowings and $5 million in letters of credit issued under our revolving credit facility, PTFI had $250 million in borrowings outstanding under its revolving credit facility and Cerro Verde had no borrowings under its revolving credit facility. At June 30, 2026, Atlantic Copper had borrowings of $0.5 billion outstanding under short-term lines of credit used for working capital requirements.
Refer to Note 4 for further discussion of debt.
Operating Activities
For the first six months of 2026, we generated operating cash flows of $3.5 billion, net of $0.5 billion for working capital and other uses, and including $0.7 billion in pre-tax proceeds collected by PTFI for an insurance settlement associated with the September 2025 external mud rush incident. For the first six months of 2025, we generated operating cash flows of $3.3 billion, net of $0.3 billion for working capital and other uses.
Investing Activities
Capital Expenditures. Capital expenditures, including capitalized interest, totaled $2.1 billion for the first six months of 2026 and $2.4 billion for the first six months of 2025, and include amounts for major projects ($1.3 billion for the first six months of 2026 and $1.2 billion for the first six months of 2025), primarily associated with underground development activities and supporting mill and power capital costs in the Grasberg minerals district.
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Acquisition of additional ownership interest in Cerro Verde. In May 2026, we purchased 2.0 million shares of Cerro Verde common stock in the open market for a total cost of $107 million, increasing our ownership interest in Cerro Verde from 55.08% to 55.66%. Refer to Note 1 for further discussion.
Financing Activities
Debt Transactions. Net proceeds from debt totaled $5 million for the first six months of 2026 and $292 million for the first six months of 2025, primarily related to borrowings by Atlantic Copper under short-term lines of credit used for working capital requirements.
Cash Dividends on Common Stock. We paid cash dividends on our common stock totaling $0.4 billion during each of the first six months of 2026 and 2025. Refer to Note 4, Item 1A. “Risk Factors” contained in Part I of our 2025 Form 10-K and Part II, Item 1A. herein, “Cautionary Statement” below and the discussion of our financial policy above.
Cash Dividends and Distributions Paid to Noncontrolling Interests. Cash dividends and distributions paid to noncontrolling interests at our international operations totaled $0.4 billion for the first six months of 2026 related to Cerro Verde and $0.6 billion (including $0.5 billion from PTFI) for the first six months of 2025. Cash dividends and distributions to noncontrolling interests vary based on the operating results and cash requirements of our consolidated subsidiaries.
Treasury Stock Purchases. In the first six months of 2026, we acquired 3.4 million shares of our common stock for a total cost of $203 million ($59.30 average cost per share) under our share repurchase program. In the first six months of 2025, we acquired 2.9 million shares of our common stock for a total cost of $107 million ($36.41 average cost per share). Refer to Note 4 for further discussion.
CONTRACTUAL OBLIGATIONS
There have been no material changes in our contractual obligations since December 31, 2025. Refer to Note 11 and Part II, Items 7. and 7A. in our 2025 Form 10-K for information regarding our contractual obligations.
CONTINGENCIES
Environmental Obligations and Asset Retirement Obligations (AROs)
Our current and historical operating activities are subject to various environmental laws and regulations. We perform a comprehensive annual review of our environmental obligations and AROs and also review changes in facts and circumstances associated with these obligations at least quarterly.
There have been no significant updates to our environmental obligations and AROs since December 31, 2025. Refer to Note 10 of our 2025 Form 10-K for further discussion regarding environmental contingencies and AROs.
Leases
There have been no significant updates to our lease commitments since December 31, 2025. Refer to Note 11 of our 2025 Form 10-K for further discussion regarding lease commitments.
Litigation and Other Contingencies
There have been no significant updates to our contingencies associated with legal proceedings and other matters since December 31, 2025. Refer to Note 10 and “Legal Proceedings” contained in Part I, Item 3. of our 2025 Form 10-K for further discussion regarding litigation and other contingencies.
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NEW ACCOUNTING STANDARDS
There were no significant updates to previously reported accounting standards included in Note 1 of our 2025 Form 10-K.
CRITICAL ACCOUNTING ESTIMATES
Refer to our 2025 Form 10-K for a description of our critical accounting estimates that require us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. There have been no changes from these previously disclosed estimates.
NET DEBT
We believe that net debt provides investors with information related to the performance-based payout framework in our financial policy, which requires us to maintain our net debt at a level not to exceed the net debt target of $3 billion to $4 billion (excluding project debt for PTFI’s downstream processing facilities). We define net debt as consolidated debt less consolidated cash and cash equivalents. This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. Our net debt, which may not be comparable to similarly titled measures reported by other companies, follows (in millions):
At June 30, 2026 | ||||||||
| Current portion of debt | $ | 1,220 | ||||||
| Long-term debt, less current portion | 8,166 | |||||||
| Consolidated debt | 9,386 | |||||||
| Less: consolidated cash and cash equivalents | 4,080 | |||||||
| FCX net debt | 5,306 | |||||||
| Less: debt for PTFI’s downstream processing facilities | 3,237 | a | ||||||
| FCX net debt, excluding debt for PTFI’s downstream processing facilities | $ | 2,069 | ||||||
a.Represents PTFI’s senior notes and $250 million of borrowings under PTFI’s revolving credit facility.
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PRODUCT REVENUES AND PRODUCTION COSTS
Mining Product Revenues and Unit Net Cash Costs (Credits)
We believe unit net cash costs (credits) per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although our measures may not be comparable to similarly titled measures reported by other companies.
We present gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. We use the by-product method in our presentation of gross profit per pound of copper because (i) the majority of our revenues are copper revenues, (ii) we mine ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of our costs to revenues from the copper, gold, molybdenum and other metals we produce and (iv) it is the method used by our management and Board to monitor our mining operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change.
We show revenue adjustments for prior period open sales as a separate line item. Because these adjustments result from prior period sales, these amounts have been reflected separately from revenues on current period sales. Noncash and other costs, net, which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as ARO accretion and other adjustments, inventory write-offs and adjustments, stock-based compensation costs, long-lived asset impairments, idle facility costs, feasibility and optimization study costs, operational readiness and start-up costs, restructuring and/or unusual charges. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements.
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U.S. Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||||||||
| Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 1,946 | $ | 1,946 | $ | 268 | $ | 62 | $ | 2,276 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 1,152 | 979 | 177 | 41 | 1,197 | ||||||||||||||||||||||||||||||
| By-product credits | (285) | — | — | — | — | ||||||||||||||||||||||||||||||
| Treatment charges | 47 | 44 | — | 3 | 47 | ||||||||||||||||||||||||||||||
| Net cash costs | 914 | 1,023 | 177 | 44 | 1,244 | ||||||||||||||||||||||||||||||
| DD&A | 135 | 121 | 12 | 2 | 135 | ||||||||||||||||||||||||||||||
| Noncash and other costs, net | 45 | c | 41 | 4 | — | 45 | |||||||||||||||||||||||||||||
| Total costs | 1,094 | 1,185 | 193 | 46 | 1,424 | ||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 6 | 6 | — | — | 6 | ||||||||||||||||||||||||||||||
| Gross profit | $ | 858 | $ | 767 | $ | 75 | $ | 16 | $ | 858 | |||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 311 | 311 | |||||||||||||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 10 | ||||||||||||||||||||||||||||||||||
| Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.25 | $ | 6.25 | $ | 28.18 | |||||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.71 | 3.15 | 18.60 | ||||||||||||||||||||||||||||||||
| By-product credits | (0.92) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.15 | 0.14 | — | ||||||||||||||||||||||||||||||||
| Unit net cash costs | 2.94 | 3.29 | 18.60 | ||||||||||||||||||||||||||||||||
| DD&A | 0.43 | 0.39 | 1.26 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.15 | c | 0.13 | 0.47 | |||||||||||||||||||||||||||||||
| Total unit costs | 3.52 | 3.81 | 20.33 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.03 | 0.03 | — | ||||||||||||||||||||||||||||||||
| Gross profit per pound | $ | 2.76 | $ | 2.47 | $ | 7.85 | |||||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||||||||
| Revenues | Production and Delivery | DD&A | |||||||||||||||||||||||||||||||||
| Totals presented above | $ | 2,276 | $ | 1,197 | $ | 135 | |||||||||||||||||||||||||||||
| Treatment charges | — | 47 | — | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 45 | — | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 6 | — | — | ||||||||||||||||||||||||||||||||
| Eliminations and other | (1) | 3 | — | ||||||||||||||||||||||||||||||||
| U.S. copper mines | 2,281 | 1,292 | 135 | ||||||||||||||||||||||||||||||||
Other miningd | 6,766 | 4,953 | 366 | ||||||||||||||||||||||||||||||||
Corporate, other & eliminationse | (2,018) | (1,925) | 22 | ||||||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,029 | $ | 4,320 | $ | 523 | |||||||||||||||||||||||||||||
a.Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing.
b.Includes gold sales of 5 thousand ounces ($4,285 per ounce average realized price), silver sales of 0.4 million ounces ($65.75 per ounce average realized price) and related production costs.
c.Includes charges totaling $18 million ($0.06 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for South America and Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
e.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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U.S. Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||||||||
| Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 1,485 | $ | 1,485 | $ | 171 | $ | 51 | $ | 1,707 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 1,063 | 942 | 131 | 40 | 1,113 | ||||||||||||||||||||||||||||||
| By-product credits | (171) | — | — | — | — | ||||||||||||||||||||||||||||||
| Treatment charges | 47 | 45 | — | 2 | 47 | ||||||||||||||||||||||||||||||
| Net cash costs | 939 | 987 | 131 | 42 | 1,160 | ||||||||||||||||||||||||||||||
| DD&A | 118 | 105 | 10 | 3 | 118 | ||||||||||||||||||||||||||||||
| Noncash and other costs, net | 50 | c | 46 | 4 | — | 50 | |||||||||||||||||||||||||||||
| Total costs | 1,107 | 1,138 | 145 | 45 | 1,328 | ||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 2 | 2 | — | (1) | 1 | ||||||||||||||||||||||||||||||
| Gross profit | $ | 380 | $ | 349 | $ | 26 | $ | 5 | $ | 380 | |||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 309 | 309 | |||||||||||||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 9 | ||||||||||||||||||||||||||||||||||
| Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 4.81 | $ | 4.81 | $ | 19.87 | |||||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.44 | 3.05 | 15.24 | ||||||||||||||||||||||||||||||||
| By-product credits | (0.55) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.15 | 0.15 | — | ||||||||||||||||||||||||||||||||
Unit net cash costs | 3.04 | 3.20 | 15.24 | ||||||||||||||||||||||||||||||||
| DD&A | 0.38 | 0.34 | 1.16 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.16 | c | 0.15 | 0.45 | |||||||||||||||||||||||||||||||
Total unit costs | 3.58 | 3.69 | 16.85 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.01 | 0.01 | — | ||||||||||||||||||||||||||||||||
| Gross profit per pound | $ | 1.24 | $ | 1.13 | $ | 3.02 | |||||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||||||||
| Revenues | Production and Delivery | DD&A | |||||||||||||||||||||||||||||||||
| Totals presented above | $ | 1,707 | $ | 1,113 | $ | 118 | |||||||||||||||||||||||||||||
| Treatment charges | (3) | 44 | — | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 50 | — | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 1 | — | — | ||||||||||||||||||||||||||||||||
| Eliminations and other | 9 | 7 | — | ||||||||||||||||||||||||||||||||
| U.S. copper mines | 1,714 | 1,214 | 118 | ||||||||||||||||||||||||||||||||
Other miningd | 7,377 | 4,504 | 536 | ||||||||||||||||||||||||||||||||
Corporate, other & eliminationse | (1,509) | (1,436) | 14 | ||||||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,582 | $ | 4,282 | $ | 668 | |||||||||||||||||||||||||||||
a.Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing.
b.Includes gold sales of 4 thousand ounces ($3,301 per ounce average realized price), silver sales of 0.5 million ounces ($35.94 per ounce average realized price) and related production costs.
c.Includes charges totaling $26 million ($0.09 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for South America and Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
e.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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U.S. Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||||||||
| Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 3,866 | $ | 3,866 | $ | 463 | $ | 143 | $ | 4,472 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2,300 | 1,990 | 311 | 92 | 2,393 | ||||||||||||||||||||||||||||||
| By-product credits | (514) | — | — | — | — | ||||||||||||||||||||||||||||||
| Treatment charges | 89 | 83 | — | 6 | 89 | ||||||||||||||||||||||||||||||
| Net cash costs | 1,875 | 2,073 | 311 | 98 | 2,482 | ||||||||||||||||||||||||||||||
| DD&A | 300 | 257 | 26 | 17 | 300 | ||||||||||||||||||||||||||||||
| Noncash and other costs, net | 94 | c | 85 | 8 | 1 | 94 | |||||||||||||||||||||||||||||
| Total costs | 2,269 | 2,415 | 345 | 116 | 2,876 | ||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 6 | 6 | — | 1 | 7 | ||||||||||||||||||||||||||||||
| Gross profit | $ | 1,603 | $ | 1,457 | $ | 118 | $ | 28 | $ | 1,603 | |||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 639 | 639 | |||||||||||||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 17 | ||||||||||||||||||||||||||||||||||
| Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.05 | $ | 6.05 | $ | 27.01 | |||||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.59 | 3.11 | 18.17 | ||||||||||||||||||||||||||||||||
| By-product credits | (0.80) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.14 | 0.13 | — | ||||||||||||||||||||||||||||||||
| Unit net cash costs | 2.93 | 3.24 | 18.17 | ||||||||||||||||||||||||||||||||
| DD&A | 0.47 | 0.41 | 1.51 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.15 | c | 0.13 | 0.45 | |||||||||||||||||||||||||||||||
| Total unit costs | 3.55 | 3.78 | 20.13 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.01 | 0.01 | — | ||||||||||||||||||||||||||||||||
| Gross profit per pound | $ | 2.51 | $ | 2.28 | $ | 6.88 | |||||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||||||||
| Totals presented above | $ | 4,472 | $ | 2,393 | $ | 300 | |||||||||||||||||||||||||||||
| Treatment charges | — | 89 | — | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 94 | — | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 7 | — | — | ||||||||||||||||||||||||||||||||
| Eliminations and other | 1 | 7 | — | ||||||||||||||||||||||||||||||||
| U.S. copper mines | 4,480 | 2,583 | 300 | ||||||||||||||||||||||||||||||||
Other miningd | 12,715 | 9,583 | 695 | ||||||||||||||||||||||||||||||||
Corporate, other & eliminationse | (3,932) | (3,781) | 42 | ||||||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,263 | $ | 8,385 | $ | 1,037 | |||||||||||||||||||||||||||||
a.Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing.
b.Includes gold sales of 10 thousand ounces ($4,584 per ounce average realized price), silver sales of 0.8 million ounces ($69.40 per ounce average realized price) and related production costs.
c.Includes charges totaling $35 million ($0.05 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for South America and Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
e.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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U.S. Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||||||||
| Method | Copper | Molybdenuma | Otherb | Total | |||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 2,902 | $ | 2,902 | $ | 326 | $ | 91 | $ | 3,319 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2,133 | 1,894 | 262 | 73 | 2,229 | ||||||||||||||||||||||||||||||
| By-product credits | (322) | — | — | — | — | ||||||||||||||||||||||||||||||
| Treatment charges | 85 | 81 | — | 4 | 85 | ||||||||||||||||||||||||||||||
| Net cash costs | 1,896 | 1,975 | 262 | 77 | 2,314 | ||||||||||||||||||||||||||||||
| DD&A | 242 | 217 | 20 | 5 | 242 | ||||||||||||||||||||||||||||||
| Noncash and other costs, net | 89 | c | 82 | 6 | 1 | 89 | |||||||||||||||||||||||||||||
| Total costs | 2,227 | 2,274 | 288 | 83 | 2,645 | ||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 4 | 4 | — | 1 | 5 | ||||||||||||||||||||||||||||||
| Gross profit | $ | 679 | $ | 632 | $ | 38 | $ | 9 | $ | 679 | |||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 616 | 616 | |||||||||||||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 17 | ||||||||||||||||||||||||||||||||||
| Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 4.71 | $ | 4.71 | $ | 20.00 | |||||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.46 | 3.07 | 16.09 | ||||||||||||||||||||||||||||||||
| By-product credits | (0.52) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.14 | 0.13 | — | ||||||||||||||||||||||||||||||||
| Unit net cash costs | 3.08 | 3.20 | 16.09 | ||||||||||||||||||||||||||||||||
| DD&A | 0.39 | 0.35 | 1.21 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.14 | c | 0.14 | 0.38 | |||||||||||||||||||||||||||||||
| Total unit costs | 3.61 | 3.69 | 17.68 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.01 | 0.01 | — | ||||||||||||||||||||||||||||||||
| Gross profit per pound | $ | 1.11 | $ | 1.03 | $ | 2.32 | |||||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||||||||
| Totals presented above | $ | 3,319 | $ | 2,229 | $ | 242 | |||||||||||||||||||||||||||||
| Treatment charges | (8) | 77 | — | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 89 | — | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 5 | — | — | ||||||||||||||||||||||||||||||||
| Eliminations and other | 28 | 31 | — | ||||||||||||||||||||||||||||||||
| U.S. copper mines | 3,344 | 2,426 | 242 | ||||||||||||||||||||||||||||||||
Other miningd | 12,887 | 8,348 | 867 | ||||||||||||||||||||||||||||||||
Corporate, other & eliminationse | (2,921) | (2,736) | 25 | ||||||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,310 | $ | 8,038 | $ | 1,134 | |||||||||||||||||||||||||||||
a.Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing.
b.Includes gold sales of 7 thousand ounces ($3,249 per ounce average realized price), silver sales of 1.0 million ounces ($34.84 per ounce average realized price) and related production costs.
c.Includes charges totaling $40 million ($0.07 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for South America and Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
e.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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South America Operations Product Revenues, Production Costs and Unit Net Cash Costs
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||
| Method | Copper | Othera | Total | ||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 1,496 | $ | 1,496 | $ | 228 | $ | 1,724 | |||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 816 | 714 | 116 | 830 | |||||||||||||||||||||||||
| By-product credits | (221) | — | — | — | |||||||||||||||||||||||||
| Treatment charges | 10 | 10 | — | 10 | |||||||||||||||||||||||||
| Royalty on metals | 3 | 2 | 1 | 3 | |||||||||||||||||||||||||
| Net cash costs | 608 | 726 | 117 | 843 | |||||||||||||||||||||||||
| DD&A | 107 | 94 | 13 | 107 | |||||||||||||||||||||||||
| Noncash and other costs, net | 26 | b | 24 | 2 | 26 | ||||||||||||||||||||||||
| Total costs | 741 | 844 | 132 | 976 | |||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 91 | 91 | 7 | 98 | |||||||||||||||||||||||||
| Gross profit | $ | 846 | $ | 743 | $ | 103 | $ | 846 | |||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 245 | 245 | |||||||||||||||||||||||||||
| Gross profit per pound of copper: | |||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.11 | $ | 6.11 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.33 | 2.92 | |||||||||||||||||||||||||||
| By-product credits | (0.90) | — | |||||||||||||||||||||||||||
| Treatment charges | 0.04 | 0.04 | |||||||||||||||||||||||||||
| Royalty on metals | 0.01 | 0.01 | |||||||||||||||||||||||||||
| Unit net cash costs | 2.48 | 2.97 | |||||||||||||||||||||||||||
| DD&A | 0.44 | 0.38 | |||||||||||||||||||||||||||
| Noncash and other costs, net | 0.11 | b | 0.10 | ||||||||||||||||||||||||||
| Total unit costs | 3.03 | 3.45 | |||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.37 | 0.37 | |||||||||||||||||||||||||||
| Gross profit per pound | $ | 3.45 | $ | 3.03 | |||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||
| Totals presented above | $ | 1,724 | $ | 830 | $ | 107 | |||||||||||||||||||||||
| Treatment charges | (10) | — | — | ||||||||||||||||||||||||||
| Royalty on metals | (3) | — | — | ||||||||||||||||||||||||||
| Noncash and other costs, net | — | 26 | — | ||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 98 | — | — | ||||||||||||||||||||||||||
| Eliminations and other | 1 | — | — | ||||||||||||||||||||||||||
| South America operations | 1,810 | 856 | 107 | ||||||||||||||||||||||||||
Other miningc | 7,237 | 5,389 | 394 | ||||||||||||||||||||||||||
Corporate, other & eliminationsd | (2,018) | (1,925) | 22 | ||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,029 | $ | 4,320 | $ | 523 | |||||||||||||||||||||||
a.Includes silver sales of 0.8 million ounces ($62.23 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
b.Includes charges totaling $10 million ($0.04 per pound of copper) for inventory write-offs and $9 million ($0.04 per pound of copper) for feasibility and optimization studies.
c.Represents the combined total for U.S. copper mines, Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
d.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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South America Operations Product Revenues, Production Costs and Unit Net Cash Costs
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||
| Method | Copper | Othera | Total | ||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 1,184 | $ | 1,184 | $ | 115 | $ | 1,299 | |||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 732 | 672 | 76 | 748 | |||||||||||||||||||||||||
| By-product credits | (98) | — | — | — | |||||||||||||||||||||||||
| Treatment charges | 16 | 16 | — | 16 | |||||||||||||||||||||||||
| Royalty on metals | 2 | 2 | — | 2 | |||||||||||||||||||||||||
| Net cash costs | 652 | 690 | 76 | 766 | |||||||||||||||||||||||||
| DD&A | 113 | 103 | 10 | 113 | |||||||||||||||||||||||||
| Noncash and other costs, net | 21 | b | 20 | 1 | 21 | ||||||||||||||||||||||||
| Total costs | 786 | 813 | 87 | 900 | |||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | (19) | (19) | (1) | (20) | |||||||||||||||||||||||||
| Gross profit | $ | 379 | $ | 352 | $ | 27 | $ | 379 | |||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 265 | 265 | |||||||||||||||||||||||||||
| Gross profit per pound of copper: | |||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 4.47 | $ | 4.47 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2.76 | 2.53 | |||||||||||||||||||||||||||
| By-product credits | (0.37) | — | |||||||||||||||||||||||||||
| Treatment charges | 0.06 | 0.06 | |||||||||||||||||||||||||||
| Royalty on metals | 0.01 | 0.01 | |||||||||||||||||||||||||||
| Unit net cash costs | 2.46 | 2.60 | |||||||||||||||||||||||||||
| DD&A | 0.42 | 0.39 | |||||||||||||||||||||||||||
| Noncash and other costs, net | 0.08 | b | 0.08 | ||||||||||||||||||||||||||
| Total unit costs | 2.96 | 3.07 | |||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | (0.07) | (0.07) | |||||||||||||||||||||||||||
| Gross profit per pound | $ | 1.44 | $ | 1.33 | |||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||
| Totals presented above | $ | 1,299 | $ | 748 | $ | 113 | |||||||||||||||||||||||
| Treatment charges | (16) | — | — | ||||||||||||||||||||||||||
| Royalty on metals | (2) | — | — | ||||||||||||||||||||||||||
| Noncash and other costs, net | — | 21 | — | ||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | (20) | — | — | ||||||||||||||||||||||||||
| Eliminations and other | — | (1) | — | ||||||||||||||||||||||||||
| South America operations | 1,261 | 768 | 113 | ||||||||||||||||||||||||||
Other miningc | 7,830 | 4,950 | 541 | ||||||||||||||||||||||||||
Corporate, other & eliminationsd | (1,509) | (1,436) | 14 | ||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,582 | $ | 4,282 | $ | 668 | |||||||||||||||||||||||
a.Includes silver sales of 0.8 million ounces ($36.01 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
b.Includes charges totaling $18 million ($0.07 per pound of copper) for feasibility and optimization studies.
c.Represents the combined total for U.S. copper mines, Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
d.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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South America Operations Product Revenues, Production Costs and Unit Net Cash Costs
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||
| Method | Copper | Othera | Total | ||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 2,969 | $ | 2,969 | $ | 431 | $ | 3,400 | |||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 1,595 | 1,403 | 220 | 1,623 | |||||||||||||||||||||||||
| By-product credits | (416) | — | — | — | |||||||||||||||||||||||||
| Treatment charges | 12 | 12 | — | 12 | |||||||||||||||||||||||||
| Royalty on metals | 5 | 5 | — | 5 | |||||||||||||||||||||||||
| Net cash costs | 1,196 | 1,420 | 220 | 1,640 | |||||||||||||||||||||||||
| DD&A | 210 | 184 | 26 | 210 | |||||||||||||||||||||||||
| Noncash and other costs, net | 43 | b | 40 | 3 | 43 | ||||||||||||||||||||||||
| Total costs | 1,449 | 1,644 | 249 | 1,893 | |||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 47 | 47 | 13 | 60 | |||||||||||||||||||||||||
| Gross profit | $ | 1,567 | $ | 1,372 | $ | 195 | $ | 1,567 | |||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 493 | 493 | |||||||||||||||||||||||||||
| Gross profit per pound of copper: | |||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.03 | $ | 6.03 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 3.25 | 2.85 | |||||||||||||||||||||||||||
| By-product credits | (0.85) | — | |||||||||||||||||||||||||||
| Treatment charges | 0.02 | 0.02 | |||||||||||||||||||||||||||
| Royalty on metals | 0.01 | 0.01 | |||||||||||||||||||||||||||
| Unit net cash costs | 2.43 | 2.88 | |||||||||||||||||||||||||||
| DD&A | 0.42 | 0.38 | |||||||||||||||||||||||||||
| Noncash and other costs, net | 0.09 | b | 0.08 | ||||||||||||||||||||||||||
| Total unit costs | 2.94 | 3.34 | |||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.09 | 0.09 | |||||||||||||||||||||||||||
| Gross profit per pound | $ | 3.18 | $ | 2.78 | |||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||
| Totals presented above | $ | 3,400 | $ | 1,623 | $ | 210 | |||||||||||||||||||||||
| Treatment charges | (12) | — | — | ||||||||||||||||||||||||||
| Royalty on metals | (5) | — | — | ||||||||||||||||||||||||||
| Noncash and other costs, net | — | 43 | — | ||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 60 | — | — | ||||||||||||||||||||||||||
| Eliminations and other | 1 | (1) | — | ||||||||||||||||||||||||||
| South America operations | 3,444 | 1,665 | 210 | ||||||||||||||||||||||||||
Other miningc | 13,751 | 10,501 | 785 | ||||||||||||||||||||||||||
Corporate, other & eliminationsd | (3,932) | (3,781) | 42 | ||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,263 | $ | 8,385 | $ | 1,037 | |||||||||||||||||||||||
a.Includes silver sales of 1.6 million ounces ($69.33 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
b.Includes charges totaling $20 million ($0.04 per pound of copper) for feasibility and optimization studies and $10 million ($0.02 per pound of copper) for inventory write-offs.
c.Represents the combined total for U.S. copper mines, Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
d.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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South America Operations Product Revenues, Production Costs and Unit Net Cash Costs
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||
| (In millions) | By-Product | Co-Product Method | |||||||||||||||||||||||||||
| Method | Copper | Othera | Total | ||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 2,371 | $ | 2,371 | $ | 250 | $ | 2,621 | |||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 1,491 | 1,360 | 163 | 1,523 | |||||||||||||||||||||||||
| By-product credits | (220) | — | — | — | |||||||||||||||||||||||||
| Treatment charges | 36 | 36 | — | 36 | |||||||||||||||||||||||||
| Royalty on metals | 3 | 3 | — | 3 | |||||||||||||||||||||||||
| Net cash costs | 1,310 | 1,399 | 163 | 1,562 | |||||||||||||||||||||||||
| DD&A | 225 | 203 | 22 | 225 | |||||||||||||||||||||||||
| Noncash and other costs, net | 35 | b | 34 | 1 | 35 | ||||||||||||||||||||||||
| Total costs | 1,570 | 1,636 | 186 | 1,822 | |||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 54 | 54 | 2 | 56 | |||||||||||||||||||||||||
| Gross profit | $ | 855 | $ | 789 | $ | 66 | $ | 855 | |||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 540 | 540 | |||||||||||||||||||||||||||
| Gross profit per pound of copper: | |||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 4.39 | $ | 4.39 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2.76 | 2.51 | |||||||||||||||||||||||||||
| By-product credits | (0.41) | — | |||||||||||||||||||||||||||
| Treatment charges | 0.07 | 0.07 | |||||||||||||||||||||||||||
| Royalty on metals | 0.01 | 0.01 | |||||||||||||||||||||||||||
| Unit net cash costs | 2.43 | 2.59 | |||||||||||||||||||||||||||
| DD&A | 0.42 | 0.38 | |||||||||||||||||||||||||||
| Noncash and other costs, net | 0.06 | b | 0.06 | ||||||||||||||||||||||||||
| Total unit costs | 2.91 | 3.03 | |||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.10 | 0.10 | |||||||||||||||||||||||||||
| Gross profit per pound | $ | 1.58 | $ | 1.46 | |||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||
| Totals presented above | $ | 2,621 | $ | 1,523 | $ | 225 | |||||||||||||||||||||||
| Treatment charges | (36) | — | — | ||||||||||||||||||||||||||
| Royalty on metals | (3) | — | — | ||||||||||||||||||||||||||
| Noncash and other costs, net | — | 35 | — | ||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 56 | — | — | ||||||||||||||||||||||||||
| Eliminations and other | (1) | (2) | (1) | ||||||||||||||||||||||||||
| South America operations | 2,637 | 1,556 | 224 | ||||||||||||||||||||||||||
Other miningc | 13,594 | 9,218 | 885 | ||||||||||||||||||||||||||
Corporate, other & eliminationsd | (2,921) | (2,736) | 25 | ||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,310 | $ | 8,038 | $ | 1,134 | |||||||||||||||||||||||
a.Includes silver sales of 1.6 million ounces ($34.54 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
b.Includes charges totaling $33 million ($0.06 per pound of copper) for feasibility and optimization studies.
c.Represents the combined total for U.S. copper mines, Indonesia operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
d.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||
| (In millions) | Co-Product Method | ||||||||||||||||||||||||||||||||||
| By-Product Method | Copper | Gold | Silver & Othera | Total | |||||||||||||||||||||||||||||||
| Revenues | $ | 935 | $ | 935 | $ | 535 | $ | 70 | $ | 1,540 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 354 | 215 | 123 | 16 | 354 | ||||||||||||||||||||||||||||||
| By-product credits | (605) | — | — | — | — | ||||||||||||||||||||||||||||||
| Treatment charges | 71 | 43 | 25 | 3 | 71 | ||||||||||||||||||||||||||||||
| Royalty on metals | 57 | 35 | 21 | 1 | 57 | ||||||||||||||||||||||||||||||
| Net cash (credits) costs | (123) | 293 | 169 | 20 | 482 | ||||||||||||||||||||||||||||||
| DD&A | 228 | b | 138 | 79 | 11 | 228 | |||||||||||||||||||||||||||||
| Noncash and other costs, net | 300 | c | 182 | 104 | 14 | 300 | |||||||||||||||||||||||||||||
| Total costs | 405 | 613 | 352 | 45 | 1,010 | ||||||||||||||||||||||||||||||
| Gross profit | $ | 530 | $ | 322 | $ | 183 | $ | 25 | $ | 530 | |||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 153 | 153 | |||||||||||||||||||||||||||||||||
| Gold sales (thousands of recoverable ounces) | 118 | ||||||||||||||||||||||||||||||||||
| Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||||||||||||||||||
| Revenues | $ | 6.12 | $ | 6.12 | $ | 4,529 | |||||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2.30 | 1.41 | 1,040 | ||||||||||||||||||||||||||||||||
| By-product credits | (3.96) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.47 | 0.28 | 209 | ||||||||||||||||||||||||||||||||
| Royalty on metals | 0.38 | 0.23 | 176 | ||||||||||||||||||||||||||||||||
| Unit net cash (credits) costs | (0.81) | 1.92 | 1,425 | ||||||||||||||||||||||||||||||||
| DD&A | 1.50 | b | 0.90 | 671 | |||||||||||||||||||||||||||||||
| Noncash and other costs, net | 1.96 | c | 1.19 | 880 | |||||||||||||||||||||||||||||||
| Total unit costs | 2.65 | 4.01 | 2,976 | ||||||||||||||||||||||||||||||||
| Gross profit per pound/ounce | $ | 3.47 | $ | 2.11 | $ | 1,553 | |||||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||||||||
| Totals presented above | $ | 1,540 | $ | 354 | $ | 228 | |||||||||||||||||||||||||||||
| Treatment charges | — | 71 | d | — | |||||||||||||||||||||||||||||||
| Royalty on metals | (57) | — | — | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 300 | — | ||||||||||||||||||||||||||||||||
| Eliminations and other | — | (1) | — | ||||||||||||||||||||||||||||||||
| Indonesia operations | 1,483 | 724 | 228 | ||||||||||||||||||||||||||||||||
Other mininge | 7,564 | 5,521 | 273 | ||||||||||||||||||||||||||||||||
Corporate, other & eliminationsf | (2,018) | (1,925) | 22 | ||||||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,029 | $ | 4,320 | $ | 523 | |||||||||||||||||||||||||||||
a.Includes silver sales of 0.6 million ounces ($69.25 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.
b.Includes $79 million ($0.52 per pound of copper) of idle facility costs associated with the September 2025 external mud rush incident.
c.Includes $284 million ($1.86 per pound of copper) of idle facility and restoration costs associated with the September 2025 external mud rush incident.
d.Primarily represents tolling costs paid to PT Smelting, and excludes idle facility related tolling fees that are included in noncash and other costs, net (refer to note c above).
e.Represents the combined total for U.S. copper mines, South America operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
f.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| (In millions) | Co-Product Method | ||||||||||||||||||||||||||||||||||
| By-Product Method | Copper | Gold | Silver & Othera | Total | |||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 1,953 | $ | 1,953 | $ | 1,708 | $ | 49 | $ | 3,710 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 960 | 505 | 442 | 13 | 960 | ||||||||||||||||||||||||||||||
| By-product credits | (1,765) | — | — | — | — | ||||||||||||||||||||||||||||||
| Treatment charges | 88 | 46 | 41 | 1 | 88 | ||||||||||||||||||||||||||||||
| Export duties | 146 | 77 | 66 | 3 | 146 | ||||||||||||||||||||||||||||||
| Royalty on metals | 133 | 70 | 62 | 1 | 133 | ||||||||||||||||||||||||||||||
| Net cash (credits) costs | (438) | 698 | 611 | 18 | 1,327 | ||||||||||||||||||||||||||||||
| DD&A | 389 | 205 | 179 | 5 | 389 | ||||||||||||||||||||||||||||||
| Noncash and other costs, net | 78 | b | 41 | 36 | 1 | 78 | |||||||||||||||||||||||||||||
| Total costs | 29 | 944 | 826 | 24 | 1,794 | ||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | (21) | (21) | 9 | (1) | (13) | ||||||||||||||||||||||||||||||
| Gross profit | $ | 1,903 | $ | 988 | $ | 891 | $ | 24 | $ | 1,903 | |||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 443 | 443 | |||||||||||||||||||||||||||||||||
| Gold sales (thousands of recoverable ounces) | 518 | ||||||||||||||||||||||||||||||||||
| Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 4.40 | $ | 4.40 | $ | 3,290 | |||||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2.17 | 1.14 | 854 | ||||||||||||||||||||||||||||||||
| By-product credits | (3.98) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.19 | 0.11 | 77 | ||||||||||||||||||||||||||||||||
| Export duties | 0.33 | 0.17 | 128 | ||||||||||||||||||||||||||||||||
| Royalty on metals | 0.30 | 0.16 | 120 | ||||||||||||||||||||||||||||||||
| Unit net cash (credits) costs | (0.99) | 1.58 | 1,179 | ||||||||||||||||||||||||||||||||
| DD&A | 0.88 | 0.46 | 346 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.18 | b | 0.09 | 70 | |||||||||||||||||||||||||||||||
| Total unit costs | 0.07 | 2.13 | 1,595 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | (0.05) | (0.05) | 26 | ||||||||||||||||||||||||||||||||
| Gross profit per pound/ounce | $ | 4.28 | $ | 2.22 | $ | 1,721 | |||||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||||||||
| Totals presented above | $ | 3,710 | $ | 960 | $ | 389 | |||||||||||||||||||||||||||||
| Treatment charges | (2) | 86 | c | — | |||||||||||||||||||||||||||||||
| Export duties | (146) | — | — | ||||||||||||||||||||||||||||||||
| Royalty on metals | (133) | — | — | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 78 | — | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | (13) | — | — | ||||||||||||||||||||||||||||||||
| Other | 1 | — | — | ||||||||||||||||||||||||||||||||
| Indonesia operations | 3,417 | 1,124 | 389 | ||||||||||||||||||||||||||||||||
Other miningd | 5,674 | 4,594 | 265 | ||||||||||||||||||||||||||||||||
Corporate, other & eliminationse | (1,509) | (1,436) | 14 | ||||||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,582 | $ | 4,282 | $ | 668 | |||||||||||||||||||||||||||||
a.Includes silver sales of 1.1 million ounces ($34.47 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.
b.Includes charges totaling $58 million ($0.13 per pound of copper) for operational readiness and start-up costs associated with PTFI’s downstream processing facilities and $7 million ($0.02 per pound of copper) for remediation costs related to the October 2024 incident at PTFI’s smelter.
c.Primarily represents tolling costs paid to PT Smelting.
d.Represents the combined total for U.S. copper mines, South America operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
e.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||
| (In millions) | Co-Product Method | |||||||||||||||||||||||||||||||
| By-Product Method | Copper | Gold | Silver & Othera | Total | ||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 1,420 | $ | 1,420 | $ | 1,100 | $ | 134 | $ | 2,654 | ||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 593 | 317 | 246 | 30 | 593 | |||||||||||||||||||||||||||
| By-product credits | (1,236) | — | — | — | — | |||||||||||||||||||||||||||
| Treatment charges | 121 | 65 | 50 | 6 | 121 | |||||||||||||||||||||||||||
| Royalty on metals | 108 | 60 | 45 | 3 | 108 | |||||||||||||||||||||||||||
| Net cash (credits) costs | (414) | 442 | 341 | 39 | 822 | |||||||||||||||||||||||||||
| DD&A | 422 | b | 226 | 175 | 21 | 422 | ||||||||||||||||||||||||||
| Noncash and other costs, net | 722 | c | 386 | 299 | 37 | 722 | ||||||||||||||||||||||||||
| Total costs | 730 | 1,054 | 815 | 97 | 1,966 | |||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 8 | 8 | 2 | — | 10 | |||||||||||||||||||||||||||
| Gross profit | $ | 698 | $ | 374 | $ | 287 | $ | 37 | $ | 698 | ||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 235 | 235 | ||||||||||||||||||||||||||||||
| Gold sales (thousands of recoverable ounces) | 234 | |||||||||||||||||||||||||||||||
| Gross profit per pound of copper/per ounce of gold: | ||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 6.04 | $ | 6.04 | $ | 4,709 | ||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 2.52 | 1.35 | 1,052 | |||||||||||||||||||||||||||||
| By-product credits | (5.26) | — | — | |||||||||||||||||||||||||||||
| Treatment charges | 0.52 | 0.28 | 215 | |||||||||||||||||||||||||||||
| Royalty on metals | 0.46 | 0.25 | 193 | |||||||||||||||||||||||||||||
| Unit net cash (credits) costs | (1.76) | 1.88 | 1,460 | |||||||||||||||||||||||||||||
| DD&A | 1.79 | b | 0.96 | 748 | ||||||||||||||||||||||||||||
| Noncash and other costs, net | 3.07 | c | 1.64 | 1,281 | ||||||||||||||||||||||||||||
| Total unit costs | 3.10 | 4.48 | 3,489 | |||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.03 | 0.03 | 5 | |||||||||||||||||||||||||||||
| Gross profit per pound/ounce | $ | 2.97 | $ | 1.59 | $ | 1,225 | ||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | ||||||||||||||||||||||||||||||||
| Production | ||||||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | ||||||||||||||||||||||||||||||
| Totals presented above | $ | 2,654 | $ | 593 | $ | 422 | ||||||||||||||||||||||||||
| Treatment charges | (2) | 119 | d | — | ||||||||||||||||||||||||||||
| Royalty on metals | (108) | — | — | |||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 722 | — | |||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 10 | — | — | |||||||||||||||||||||||||||||
| Eliminations and other | 1 | — | — | |||||||||||||||||||||||||||||
| Indonesia operations | 2,555 | 1,434 | 422 | |||||||||||||||||||||||||||||
Other mininge | 14,640 | 10,732 | 573 | |||||||||||||||||||||||||||||
Corporate, other & eliminationsf | (3,932) | (3,781) | 42 | |||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,263 | $ | 8,385 | $ | 1,037 | ||||||||||||||||||||||||||
a.Includes silver sales of 1.1 million ounces ($76.66 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.
b.Includes $172 million ($0.73 per pound of copper) of idle facility costs associated with the September 2025 external mud rush incident.
c.Includes $690 million ($2.93 per pound of copper) of idle facility and restoration costs associated with the September 2025 external mud rush incident.
d.Primarily represents tolling costs paid to PT Smelting, and excludes idle facility related tolling fees that are included in noncash and other costs, net (refer to note c above).
e.Represents the combined total for U.S. copper mines, South America operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
f.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| (In millions) | Co-Product Method | ||||||||||||||||||||||||||||||||||
| By-Product Method | Copper | Gold | Silver & Othera | Total | |||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 3,190 | $ | 3,190 | $ | 2,101 | $ | 70 | $ | 5,361 | |||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 1,392 | 828 | 546 | 18 | 1,392 | ||||||||||||||||||||||||||||||
| By-product credits | (2,188) | — | — | — | — | ||||||||||||||||||||||||||||||
| Treatment charges | 144 | 86 | 56 | 2 | 144 | ||||||||||||||||||||||||||||||
| Export duties | 202 | 119 | 79 | 4 | 202 | ||||||||||||||||||||||||||||||
| Royalty on metals | 199 | 118 | 80 | 1 | 199 | ||||||||||||||||||||||||||||||
| Net cash (credits) costs | (251) | 1,151 | 761 | 25 | 1,937 | ||||||||||||||||||||||||||||||
| DD&A | 575 | 342 | 225 | 8 | 575 | ||||||||||||||||||||||||||||||
| Noncash and other costs, net | 175 | b | 104 | 69 | 2 | 175 | |||||||||||||||||||||||||||||
| Total costs | 499 | 1,597 | 1,055 | 35 | 2,687 | ||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 19 | 19 | 16 | 1 | 36 | ||||||||||||||||||||||||||||||
| Gross profit | $ | 2,710 | $ | 1,612 | $ | 1,062 | $ | 36 | $ | 2,710 | |||||||||||||||||||||||||
| Copper sales (millions of recoverable pounds) | 733 | 733 | |||||||||||||||||||||||||||||||||
| Gold sales (thousands of recoverable ounces) | 643 | ||||||||||||||||||||||||||||||||||
| Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||||||||||||||||||
| Revenues, excluding adjustments | $ | 4.35 | $ | 4.35 | $ | 3,260 | |||||||||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 1.90 | 1.13 | 848 | ||||||||||||||||||||||||||||||||
| By-product credits | (2.98) | — | — | ||||||||||||||||||||||||||||||||
| Treatment charges | 0.19 | 0.12 | 87 | ||||||||||||||||||||||||||||||||
| Export duties | 0.28 | 0.16 | 123 | ||||||||||||||||||||||||||||||||
| Royalty on metals | 0.27 | 0.16 | 125 | ||||||||||||||||||||||||||||||||
| Unit net cash (credits) costs | (0.34) | 1.57 | 1,183 | ||||||||||||||||||||||||||||||||
| DD&A | 0.78 | 0.47 | 350 | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | 0.24 | b | 0.14 | 107 | |||||||||||||||||||||||||||||||
| Total unit costs | 0.68 | 2.18 | 1,640 | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 0.03 | 0.03 | 31 | ||||||||||||||||||||||||||||||||
| Gross profit per pound/ounce | $ | 3.70 | $ | 2.20 | $ | 1,651 | |||||||||||||||||||||||||||||
| Reconciliation to Amounts Reported | |||||||||||||||||||||||||||||||||||
| Production | |||||||||||||||||||||||||||||||||||
| Revenues | and Delivery | DD&A | |||||||||||||||||||||||||||||||||
| Totals presented above | $ | 5,361 | $ | 1,392 | $ | 575 | |||||||||||||||||||||||||||||
| Treatment charges | (9) | 135 | c | — | |||||||||||||||||||||||||||||||
| Export duties | (202) | — | — | ||||||||||||||||||||||||||||||||
| Royalty on metals | (199) | — | — | ||||||||||||||||||||||||||||||||
| Noncash and other costs, net | — | 175 | — | ||||||||||||||||||||||||||||||||
| Other revenue adjustments, primarily for pricing on prior period open sales | 36 | — | — | ||||||||||||||||||||||||||||||||
| Indonesia operations | 4,987 | 1,702 | 575 | ||||||||||||||||||||||||||||||||
Other miningd | 11,244 | 9,072 | 534 | ||||||||||||||||||||||||||||||||
Corporate, other & eliminationse | (2,921) | (2,736) | 25 | ||||||||||||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,310 | $ | 8,038 | $ | 1,134 | |||||||||||||||||||||||||||||
a.Includes silver sales of 1.5 million ounces ($33.78 per ounce average realized price) and incremental metals and sulfuric acid produced by PT Smelting and PTFI’s downstream processing facilities.
b.Includes charges totaling (i) $102 million ($0.14 per pound of copper) for operational readiness and start-up costs associated with PTFI’s downstream processing facilities, (ii) $30 million ($0.04 per pound of copper) for remediation costs related to the October 2024 incident at PTFI’s smelter and (iii) $24 million ($0.03 per pound of copper) related to the reversal of previously capitalized land lease costs associated with PTFI’s downstream processing facilities.
c.Primarily represents tolling costs paid to PT Smelting.
d.Represents the combined total for U.S. copper mines, South America operations, Molybdenum mines, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
e.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.”
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Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | ||||||||||||||||||||||||
Revenues, excluding adjustmentsa | $ | 211 | $ | 189 | ||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 138 | 122 | ||||||||||||||||||||||||
| Treatment charges and other | 7 | 9 | ||||||||||||||||||||||||
| Net cash costs | 145 | 131 | ||||||||||||||||||||||||
| DD&A | 22 | 26 | ||||||||||||||||||||||||
| Noncash and other costs, net | 13 | b | 6 | |||||||||||||||||||||||
| Total costs | 180 | 163 | ||||||||||||||||||||||||
| Gross profit | $ | 31 | $ | 26 | ||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 8 | 9 | ||||||||||||||||||||||||
| Gross profit per pound of molybdenum: | ||||||||||||||||||||||||||
Revenues, excluding adjustmentsa | $ | 27.82 | $ | 20.52 | ||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 18.19 | 13.20 | ||||||||||||||||||||||||
| Treatment charges and other | 1.01 | 1.00 | ||||||||||||||||||||||||
| Unit net cash costs | 19.20 | 14.20 | ||||||||||||||||||||||||
| DD&A | 2.83 | 2.83 | ||||||||||||||||||||||||
| Noncash and other costs, net | 1.76 | b | 0.64 | |||||||||||||||||||||||
| Total unit costs | 23.79 | 17.67 | ||||||||||||||||||||||||
| Gross profit per pound | $ | 4.03 | $ | 2.85 | ||||||||||||||||||||||
| Reconciliation to Amounts Reported | ||||||||||||||||||||||||||
| Production | ||||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Revenues | and Delivery | DD&A | |||||||||||||||||||||||
| Totals presented above | $ | 211 | $ | 138 | $ | 22 | ||||||||||||||||||||
| Treatment charges and other | (7) | — | — | |||||||||||||||||||||||
| Noncash and other costs, net | — | 13 | — | |||||||||||||||||||||||
| Molybdenum mines | 204 | 151 | 22 | |||||||||||||||||||||||
Other miningc | 8,843 | 6,094 | 479 | |||||||||||||||||||||||
Corporate, other & eliminationsd | (2,018) | (1,925) | 22 | |||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,029 | $ | 4,320 | $ | 523 | ||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| Totals presented above | $ | 189 | $ | 122 | $ | 26 | ||||||||||||||||||||
| Treatment charges and other | (9) | — | — | |||||||||||||||||||||||
| Noncash and other costs, net | — | 6 | — | |||||||||||||||||||||||
| Molybdenum mines | 180 | 128 | 26 | |||||||||||||||||||||||
Other miningc | 8,911 | 5,590 | 628 | |||||||||||||||||||||||
Corporate, other & eliminationsd | (1,509) | (1,436) | 14 | |||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 7,582 | $ | 4,282 | $ | 668 | ||||||||||||||||||||
a.Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
b.Includes charges totaling $7 million ($0.90 per pound of molybdenum) for inventory write-offs.
c.Represents the combined total for U.S. copper mines, South America and Indonesia operations, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
d.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments,” which also includes amounts associated with our molybdenum sales company, including sales of molybdenum produced by the Molybdenum mines and by certain of the U.S. copper mines and the Cerro Verde mine.
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Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | ||||||||||||||||||||||||
Revenues, excluding adjustmentsa | $ | 432 | $ | 375 | ||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 267 | 238 | ||||||||||||||||||||||||
| Treatment charges and other | 16 | 18 | ||||||||||||||||||||||||
| Net cash costs | 283 | 256 | ||||||||||||||||||||||||
| DD&A | 46 | 52 | ||||||||||||||||||||||||
| Noncash and other costs, net | 20 | b | 12 | |||||||||||||||||||||||
| Total costs | 349 | 320 | ||||||||||||||||||||||||
| Gross profit | $ | 83 | $ | 55 | ||||||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 17 | 18 | ||||||||||||||||||||||||
| Gross profit per pound of molybdenum: | ||||||||||||||||||||||||||
Revenues, excluding adjustmentsa | $ | 26.42 | $ | 20.43 | ||||||||||||||||||||||
| Site production and delivery, before net noncash and other costs shown below | 16.33 | 12.95 | ||||||||||||||||||||||||
| Treatment charges and other | 0.98 | 1.01 | ||||||||||||||||||||||||
| Unit net cash costs | 17.31 | 13.96 | ||||||||||||||||||||||||
| DD&A | 2.82 | 2.83 | ||||||||||||||||||||||||
| Noncash and other costs, net | 1.22 | b | 0.63 | |||||||||||||||||||||||
| Total unit costs | 21.35 | 17.42 | ||||||||||||||||||||||||
| Gross profit per pound | $ | 5.07 | $ | 3.01 | ||||||||||||||||||||||
| Reconciliation to Amounts Reported | ||||||||||||||||||||||||||
| Production | ||||||||||||||||||||||||||
| Six Months Ended June 30, 2026 | Revenues | and Delivery | DD&A | |||||||||||||||||||||||
| Totals presented above | $ | 432 | $ | 267 | $ | 46 | ||||||||||||||||||||
| Treatment charges and other | (16) | — | — | |||||||||||||||||||||||
| Noncash and other costs, net | — | 20 | — | |||||||||||||||||||||||
| Molybdenum mines | 416 | 287 | 46 | |||||||||||||||||||||||
Other miningc | 16,779 | 11,879 | 949 | |||||||||||||||||||||||
Corporate, other & eliminationsd | (3,932) | (3,781) | 42 | |||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,263 | $ | 8,385 | $ | 1,037 | ||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| Totals presented above | $ | 375 | $ | 238 | $ | 52 | ||||||||||||||||||||
| Treatment charges and other | (18) | — | — | |||||||||||||||||||||||
| Noncash and other costs, net | — | 12 | — | |||||||||||||||||||||||
| Molybdenum mines | 357 | 250 | 52 | |||||||||||||||||||||||
Other miningc | 15,874 | 10,524 | 1,057 | |||||||||||||||||||||||
Corporate, other & eliminationsd | (2,921) | (2,736) | 25 | |||||||||||||||||||||||
| As reported in our consolidated financial statements | $ | 13,310 | $ | 8,038 | $ | 1,134 | ||||||||||||||||||||
a.Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
b.Includes charges totaling $7 million ($0.42 per pound of molybdenum) for inventory write-offs.
c.Represents the combined total for U.S. copper mines, South America and Indonesia operations, U.S. Rod & Refining and Atlantic Copper as presented in “Business Divisions and Segments.”
d.Represents Corporate, other & eliminations as presented in “Business Divisions and Segments,” which also includes amounts associated with our molybdenum sales company, including sales of molybdenum produced by the Molybdenum mines and by certain of the U.S. copper mines and the Cerro Verde mine.
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CAUTIONARY STATEMENT
Our discussion and analysis contain forward-looking statements in which we discuss our 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; restoration and remediation efforts, and phased ramp-up of production and downstream processing following the September 2025 external mud rush incident at PTFI’s Grasberg Block Cave underground mine and the anticipated impact on our business, production, sales, results of operations and operating plans; global market conditions, including trade policies; ore grades and milling rates; production and sales volumes; higher variability between PTFI production and sales; unit net cash costs (credits) and operating costs; capital expenditures; operating plans, including mine sequencing; cash flows; liquidity; the life of resource extension of operating rights in the Grasberg minerals district, including the extension of PTFI’s IUPK beyond 2041; timing of shipments of inventoried production; our sustainability-related commitments, aspirations and targets; our overarching commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; achievement of our 2030 climate targets and our 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 and investment decisions; 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 our financial policy and future returns to common stockholders, 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 our Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, our financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable. Our share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.
We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities we produce, primarily copper and gold; changes in export duties and tariff rates; production rates; timing of shipments and sales; reduced customer demand or capacity; changes in the terms of arrangements or contracts; PTFI’s ability to repair mud rush incident-related damage, implement enhanced operating procedures, safely restart with a phased ramp-up and achieve full operating rates of production and downstream processing on the expected timeline and optimize production plans; resolve force majeure declarations and maintain relationships with commercial counterparties; price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; changes in cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions, including market volatility regarding trade policies and tariff uncertainty; 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 production; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PTFI’s IUPK to extend mining rights from 2031 through 2041; delays in Indonesia government approvals or failure to obtain Indonesia government approval, including on the terms of the MOU and relating to the amendment to the IUPK to extend PTFI’s operating rights beyond 2041; delays in consummating the terms of the MOU, including entering into any definitive agreements; 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; impacts, expenses or results from litigation or investigations; tailings management; our ability to comply with our responsible production commitments under specific frameworks and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” contained in Part I, Item 1A. of our 2025 Form 10-K and Part II, Item 1A. herein.
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Investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs or technological solutions and innovations, some aspects of which we may not be able to control. Further, we may make changes to our business plans that could affect our results. We undertake no obligation to update any forward-looking statements, which are as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes.
This report on Form 10-Q also contains measures such as net debt and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S. GAAP. Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash (Credits) Costs” for further discussion of unit net cash costs (credits) associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs (credits) by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements. Refer to “Net Debt” for reconciliations of consolidated debt and consolidated cash and cash equivalents to net debt. For forward-looking unit net cash costs (credits) per pound of copper and molybdenum measures, we are unable to provide a reconciliation to the most comparable U.S. GAAP measure without unreasonable effort because estimating such U.S. 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 our control as described above. Forward-looking non-U.S. GAAP measures are estimated consistent with the relevant definitions and assumptions.
Item 3.Quantitative and Qualitative Disclosures About Market Risk.
There have been no material changes in our market risks during the six-month period ended June 30, 2026. For further discussion on market risks, refer to “Disclosures About Market Risks” included in Part II, Items 7. and 7A. of our 2025 Form 10-K. For projected sensitivities of our operating cash flow to changes in commodity prices, refer to “Outlook” in Part I, Item 2. of this quarterly report on Form 10-Q; for projected sensitivities of our provisionally priced copper sales to changes in commodity prices, refer to “Consolidated Results – Revenues” in Part I, Item 2. of this quarterly report on Form 10-Q.
Item 4.Controls and Procedures.
(a)Evaluation of disclosure controls and procedures. Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures were effective at June 30, 2026.
(b)Changes in internal control over financial reporting. There has been no change in our internal control over financial reporting that occurred during the quarter ended June 30, 2026, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Part II.OTHER INFORMATION
Item 1.Legal Proceedings.
We are involved in numerous legal proceedings that arise in the ordinary course of our business or are associated with environmental issues. We are also involved periodically in reviews, inquiries, investigations and other proceedings initiated by or involving government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief.
Management does not believe, based on currently available information, that the outcome of any legal proceeding reported in Part I, Item 3. “Legal Proceedings” and Note 10 of our 2025 Form 10-K, will have a material adverse effect on our financial condition; although individual or cumulative outcomes could be material to our operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period.
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There have been no material changes to legal proceedings previously disclosed in Part I, Item 3. “Legal Proceedings” and Note 10 of our 2025 Form 10-K.
Item 1A. Risk Factors.
There have been no material changes to our risk factors previously disclosed in Part I, Item 1A. “Risk Factors” of our 2025 Form 10-K, except for the following update to the risk factor captioned “Our operations are subject to evolving geopolitical, economic, regulatory and social risks,” which supplements the corresponding risk factor in our 2025 Form 10-K and should be read in conjunction with the full text of that risk factor and the other risk factors set forth in our 2025 Form 10-K.
Our operations are subject to evolving geopolitical, economic, regulatory and social risks.
***
We are required to comply with a wide range of laws and regulations in the countries where we operate or do business. For example, our international operations must comply with the U.S. Foreign Corrupt Practices Act (FCPA) and similar anti-corruption and anti-bribery laws of the other jurisdictions in which we operate. We are investigating whether activities of PT Smelting may have violated aspects of the FCPA or other laws, including laws of non-U.S. jurisdictions. PT Smelting is an Indonesia joint venture between PTFI and Mitsubishi Materials Corporation (MMC), and an affiliate of MMC serves as operator of PT Smelting. As previously reported, we voluntarily notified the SEC and U.S. Department of Justice that we had engaged outside counsel to conduct the investigation of PT Smelting’s activities. On March 17, 2026, the SEC notified us that it does not intend to pursue an enforcement action. Any determination that operations or activities are not in compliance with existing laws, including the FCPA, could result in the imposition of fines, penalties and equitable remedies. We cannot currently predict the outcome of our investigation.
***
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.
There were no unregistered sales of equity securities during the quarter ended June 30, 2026.
The following table sets forth information with respect to shares of FCX common stock purchased by us during the quarter ended June 30, 2026, and the approximate dollar value of shares that may yet be purchased pursuant to our share repurchase program:
| Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programsa | (d) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programsa | ||||||||||||||||||||||
| April 1-30, 2026 | — | $ | — | — | $ | 2,905,970,595 | ||||||||||||||||||||
| May 1-31, 2026 | — | $ | — | — | $ | 2,905,970,595 | ||||||||||||||||||||
| June 1-30, 2026 | 1,709,946 | $ | 64.34 | 1,709,946 | $ | 2,795,951,266 | ||||||||||||||||||||
| Total | 1,709,946 | $ | 64.34 | 1,709,946 | ||||||||||||||||||||||
a.On November 1, 2021, our Board approved a share repurchase program authorizing repurchases of up to $3.0 billion of our common stock, and on July 19, 2022, our Board authorized an increase in the share repurchase program up to $5.0 billion. The share repurchase program does not obligate us to acquire any specific amount of shares and does not have an expiration date.
Item 4.Mine Safety Disclosures.
Our highest priority is the health, safety and well-being of our workforce. We also work to promote safety with our suppliers and in the communities where we operate. We believe health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand the health and safety of our workforce is critical to our operational efficiency and long-term success. Our global health and safety strategy, “Safe Production Matters,” is focused on fatality prevention, eliminating systemic root causes of incidents and continuous improvement through robust management systems, which are supported by leaders empowering our teams to work safely. Our global safety strategy across all levels of the organization is captured in our Fatal Risk Management
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(FRM) program. The goal of our FRM program is to achieve zero workplace fatalities by strengthening preventive measures and raising awareness of fatal risks and the measures necessary to mitigate them. The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95.1 to this quarterly report on Form 10-Q.
Item 5. Other Information.
During the quarter ended June 30, 2026, no director or officer of FCX adopted terminated
Item 6.Exhibits.
| Filed | |||||||||||||||||
| Exhibit | with this | Incorporated by Reference | |||||||||||||||
| Number | Exhibit Title | Form 10-Q | Form | File No. | Date Filed | ||||||||||||
2.1 | PTFI Divestment Agreement dated as of September 27, 2018 among FCX, International Support LLC, PT Freeport Indonesia, PT Indocopper Investama and PT Indonesia Asahan Aluminium (Persero). | 10-Q | 001-11307-01 | 11/9/2018 | |||||||||||||
2.2 | Supplemental and Amendment Agreement to the PTFI Divestment Agreement, dated December 21, 2018, among FCX, PT Freeport Indonesia, PT Indonesia Papua Metal Dan Mineral (f/k/a PT Indocopper Investama), PT Indonesia Asahan Aluminium (Persero) and International Support LLC. | 10-K | 001-11307-01 | 2/15/2019 | |||||||||||||
3.1 | Composite Certificate of Incorporation of FCX. | 10-Q | 001-11307-01 | 8/7/2024 | |||||||||||||
3.2 | Amended and Restated By-Laws of FCX, effective as of June 11, 2024. | 8-K | 001-11307-01 | 6/12/2024 | |||||||||||||
10.1 | Revolving Credit Agreement dated as of May 14, 2026, among FCX, PT Freeport Indonesia, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto. | 8-K | 001-11307-01 | 5/20/2026 | |||||||||||||
31.1 | Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a). | X | |||||||||||||||
31.2 | Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a). | X | |||||||||||||||
32.1 | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350. | X | |||||||||||||||
32.2 | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350. | X | |||||||||||||||
95.1 | Mine Safety and Health Administration Safety Data. | X | |||||||||||||||
| 101.INS | XBRL Instance Document - the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | |||||||||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema. | X | |||||||||||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase. | X | |||||||||||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase. | X | |||||||||||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase. | X | |||||||||||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase. | X | |||||||||||||||
| 104 | The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL and contained in Exhibit 101. | X | |||||||||||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Freeport-McMoRan Inc. | ||||||||
| By: | /s/ Ellie L. Mikes | |||||||
| Ellie L. Mikes | ||||||||
| Vice President and Chief Accounting Officer | ||||||||
| (authorized signatory | ||||||||
| and Principal Accounting Officer) | ||||||||
Date: August 6, 2026
S-1