FREEPORT-MCMORAN INC

Freeport-McMoRan Inc. is a leading international metals company with the objective of being foremost in copper, headquartered in Phoenix, Arizona. The company operates large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum, and is one of the world's largest publicly traded copper producers. Its portfolio 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. Management believes fundamentals for copper are favorable with growing demand supported by copper's critical role in electrification initiatives, continued urbanization in developing countries, data centers and artificial intelligence growth, increased defense spending and growing connectivity globally.

Based on Wood Mackenzie's December 2025 estimates, Freeport-McMoRan ranked third among the top 10 copper producers, which together comprise 38% of total worldwide mined copper production, with approximately 5% of estimated total worldwide mined copper production based on net equity ownership. According to Wood Mackenzie, the company is also the world's largest producer of molybdenum and molybdenum-based chemicals. The company believes its competitive position is based on the size, quality and grade of its ore bodies and its ability to manage costs compared with other producers, with a diverse portfolio of mining operations having varying ore grades and cost structures.

Freeport-McMoRan generates revenue primarily through the sale of copper, gold, and molybdenum. For the year ended December 31, 2025, consolidated revenues primarily included sales of copper (75%), gold (15%) and molybdenum (8%). The company produces copper concentrate, cathode, and continuous cast copper rod, with 43% of mined copper sold in concentrate, 33% as cathode, and 24% as rod during 2025. Gold is produced almost exclusively from the Grasberg minerals district, and molybdenum is produced from the Henderson and Climax mines as well as certain U.S. copper mines and the Cerro Verde mine in Peru. The only customer that accounted for 10% or more of consolidated revenues during the three years ended December 31, 2025, was Mitsubishi Materials Corporation, PTFI's joint venture partner in PT Smelting, in 2024.

In the U.S., Freeport-McMoRan manages seven copper operations: Morenci, 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. It also operates a copper smelter and rod mill in Miami, Arizona, and a copper refinery and rod mill in El Paso, Texas. Certain U.S. copper mines also produce molybdenum concentrate, gold and silver. In South America, the company manages two copper operations: Cerro Verde in Peru and El Abra in Chile, with Cerro Verde also producing molybdenum concentrate and silver. In Indonesia, PTFI operates in the Grasberg minerals district, which also produces gold and silver, and with the completion of PTFI's downstream processing facilities during 2025, PTFI is a fully integrated producer of refined copper and gold. Copper production from three mines — the Morenci mine in the U.S., the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia — together totaled 70% of consolidated copper production in 2025.

For the year 2025, the London Metal Exchange copper settlement prices averaged $4.51 per pound ¹ (ranging from a low of $3.87 per pound ² to a high of $5.68 per pound ³) and closed at $5.67 per pound ⁴ on December 31, 2025, and Commodity Exchange Inc. copper settlement prices averaged $4.82 per pound ⁵ (ranging from a low of $3.99 per pound ⁶ to a high of $5.80 per pound ⁷) and closed at $5.63 per pound ⁸ on December 31, 2025. The company's 2025 operations and results were impacted by a September 2025 mud rush incident at the Grasberg minerals district in Central Papua, Indonesia. In late October 2025, PTFI restarted operations at the unaffected Deep Mill Level Zone and Big Gossan underground mines. During fourth-quarter 2025, investigations and remedial plans were completed and a phased restart and ramp-up of the Grasberg Block Cave underground mine is anticipated to begin in second-quarter 2026. In late 2025, the company achieved an annual run rate of approximately 240 million pounds of copper ⁹ from new leaching technologies and is targeting annual production of 300 million pounds of copper ¹⁰ in 2026 from these initiatives.

Consolidated revenues for 2025 were $23.486 billion ¹¹, compared to $24.256 billion ¹² in 2024. Net income attributable to common stock was $3.598 billion ¹³, or $2.50 per diluted share ¹⁴, in 2025, compared to $4.077 billion ¹⁵, or $2.81 per diluted share ¹⁶, in 2024. Operating cash flows were $8.088 billion ¹⁷ in 2025, compared to $9.147 billion ¹⁸ in 2024. Capital expenditures totaled $5.3 billion ¹⁹ in 2025, including $2.9 billion ²⁰ for PTFI's downstream processing facilities. The company returned $2.0 billion ²¹ to shareholders through dividends and share repurchases in 2025.

The company is advancing potential expansion opportunities at certain of its copper mines in the U.S. and South America. Across U.S. and South America operations, the company is incorporating new applications, technologies and data analytics into its leaching processes. In late 2025, the company achieved an annual run rate of approximately 240 million pounds of copper ²² from these initiatives and is targeting annual production of 300 million pounds of copper ²³ in 2026, with belief that there is potential for further significant increases in recoverable metal beyond the current annual target. The company continues to evaluate and advance potential expansion opportunities at certain of its copper mines in the U.S. and South America.

The company is targeting annual production of 300 million pounds of copper ²⁴ in 2026 from new leaching initiatives, with belief that there is potential for further significant increases in recoverable metal beyond the current annual target.The company expects to incur approximately $0.7 billion ²⁵ in environmental capital expenditures and other environmental costs in 2026. PTFI continues to work on the conversion of its power plant from coal-fired to liquefied natural gas, with permitting related to the conversion continuing to progress. The company is working with federal and state agencies to understand possible ramifications from various regulatory developments, including EPA's reconsideration of the Copper Smelter Rule and the Silica Rule.

Capital expenditures totaled $5.3 billion ²⁶ in 2025, including $2.9 billion ²⁷ for PTFI's downstream processing facilities. The company returned $2.0 billion ²⁸ to shareholders through dividends and share repurchases in 2025. The filing does not provide specific R&D spending levels, share repurchase authorization amounts, or dividend policy figures for future periods.

The company's 2025 operations and results were impacted by the September 2025 mud rush incident at the Grasberg minerals district in Central Papua, Indonesia. During fourth-quarter 2025, investigations and remedial plans were completed and a phased restart and ramp-up of the Grasberg Block Cave underground mine is anticipated to begin in second-quarter 2026. The company faces structural headwinds from potential new or revised environmental regulatory requirements, including EPA's reconsideration of the Copper Smelter Rule which could impact the Miami, Arizona smelter operations, and the Silica Rule which is being reconsidered by MSHA, with costs that could be significant.

The company faces material risks from commodity price volatility, as copper prices averaged $4.51 per pound ²⁹ on the LME in 2025 but ranged from a low of $3.87 per pound ³⁰ to a high of $5.68 per pound ³¹, and a sustained decline would directly reduce revenues and cash flows. Operations in Indonesia are subject to significant political and regulatory risk, including the expiration of PTFI's export license on September 16, 2025, and the September 2025 mud rush incident at Grasberg which resulted in a $142 million ³² charge for assets damaged beyond repair and a $30 million ³³ charge for chute galleries, with the Grasberg Block Cave restart not anticipated until second-quarter 2026. Environmental and regulatory compliance costs are substantial, with $2.0 billion ³⁴ in environmental obligations and $3.8 billion ³⁵ in asset retirement obligations recorded at December 31, 2025, and expected environmental expenditures of approximately $0.7 billion ³⁶ in 2026, while new regulations such as EPA's Copper Smelter Rule and MSHA's Silica Rule could impose significant additional costs. The company's operations in Peru and Chile expose it to tax and regulatory risks, including ongoing tax disputes with Peru's tax authority SUNAT covering tax years 2003 through 2022 with potential assessments that could be material.

Management's message emphasizes the company's objective of being foremost in copper and its belief that fundamentals for copper are favorable with growing demand supported by copper's critical role in electrification initiatives, continued urbanization in developing countries, data centers and AI growth, increased defense spending and growing connectivity globally. Management states that the company is well positioned for the future as a leading producer of copper with significant copper reserves and resources and a high-quality portfolio of growth projects. The strategic priorities emphasized include solid execution of plans, operational excellence, and advancing opportunities for long-term organic growth, including the evaluation and advancement of potential expansion opportunities at certain copper mines in the U.S. and South America, and the incorporation of new applications, technologies and data analytics into leaching processes with a target of annual production of 300 million pounds of copper ³⁷ in 2026 from these initiatives.