Total Revenue

+14% (from $6,624M to $7,582M)

The overall revenue increase reflects robust growth in key segments that counterbalanced underperformance in other areas. Strong gains in Indonesia Operations and a massive surge in Rod & Refining revenue drove a rise of approximately $958M, building on improvements and strategic initiatives implemented in prior periods. " "

North America Copper Mines

90% decline (from $1,536M to $127M)

A dramatic drop suggests an extraordinary operational or structural shift from Q2 2024, potentially due to severe reductions in sales volumes, pricing adjustments, or reclassification of revenue streams. This stands in contrast to prior period levels, indicating significant challenges or deliberate strategic changes affecting the North America segment. " "

Indonesia Operations

+51% increase (from $2,268M to $3,419M)

The revenue surge is driven by a marked improvement in production efficiency and operational capacity—such as higher mining and milling rates and better realized pricing—indicating a strong rebound following past disruptions or maintenance constraints seen in previous periods. " "

Rod & Refining

+233% increase (from $507M to $1,692M)

The exceptional rise in revenue is largely attributable to higher copper prices and increased sales volumes, reflecting strategic pricing adjustments and a shift towards more favorable market conditions compared to the modest gains observed in earlier quarters. " "

South America Operations

33% decline (from $1,511M to $1,019M)

The revenue decline is primarily linked to reduced copper sales volumes, lower ore grades, and higher production costs. Despite some mitigating factors such as improved unit net cash costs in previous periods, these challenges outweighed the benefits, resulting in a significant drop compared to Q2 2024. " "

Net Unit Cash Cost

FY 2025

$1.50 per pound "

$1.55 per pound "

raised

Capital Expenditures

FY 2025

$4.4 billion "

$3.8 billion "

lowered

Capital Expenditures

FY 2026

$4.4 billion "

$3.9 billion "

lowered

Copper Sales Volumes

FY 2025

no prior guidance

Approximately 1% below prior forecast "

no prior guidance

Gold Sales Volumes

FY 2025

no prior guidance

Approximately 17% below prior forecast "

no prior guidance

Quarterly Copper Sales Volumes

2025

Expected to average about 20% more in the remaining quarters relative to Q1 "

Expected nearly 10% higher in the second half relative to the first half "

lowered

Leaching Initiative

FY 2025

Targeting a 40% increase in run rate to achieve 300 million pounds per annum, long-term goal 800 million pounds per annum "

Targeting a 40% increase in run rate to achieve 300 million pounds per annum by year-end, with a long-term goal of 800 million pounds per annum " "

no change

Innovative Leach Process Scale-Up & Technological Innovation

Previous calls (Q1 2025, Q3 2024, Q4 2024) emphasized scaling to 300 million pounds with innovative additives, deep raffinate injection, use of data analytics, and creative access methods ( " " " , " " , " " " )

Q2 2025 highlighted field trials at Morenci with an internally developed additive, use of heat in injection processes, and a target of 800 million pounds per annum ( " " " )

Recurring focus with enhanced refinement: the core initiative persists while new process‐enhancements (like heat trials and precision data tools) are increasingly emphasized. " " " " " " " " " " "

Automation and Operational Efficiency Improvements

Prior discussions in Q1 2025 and Q4 2024 described autonomous haulage (e.g. at Bagdad), cost–reduction via improved asset reliability and contractor rationalization, with Q3 2024 adding equipment reliability and careful planning ( " " , " " , " " )

Q2 2025 reiterated advanced automation projects, notably at Bagdad with autonomous trucks, coupled with continued operational cost reduction via enhanced data analytics and improved asset health ( " " " )

Consistent emphasis where operational upgrades are deepening – the integration of automation and data-driven efficiency remains central with incremental optimization. " " " " " "

Domestic Refining Expansion (Miami Smelter Expansion)

Q1 2025 briefly mentioned exploring expansion using existing infrastructure ( " ); there was little to no mention in Q3 and Q4 2024 (N/A)

Q2 2025 provided a detailed discussion on expanding capacity by 30% while stressing the challenges of greenfield projects, drawing comparisons with the lengthy Indonesian smelter development ( " " )

An emerging and amplified focus in the current period – previously limited, now a prominent strategic initiative with a detailed feasibility and risk discussion. " " "

Financial Discipline and Enhanced Shareholder Returns

Consistently discussed in Q1 2025, Q3 2024, and Q4 2024 with emphasis on strong balance sheets, a commitment to returning 50% of excess cash flow, dividends, and share repurchases ( " " " " " " )

Q2 2025 reaffirmed robust financial policies, highlighting a strong balance sheet with no significant debt maturities until 2027, over $5 billion returned, and ongoing disciplined capital allocation ( " " )

Steady and consistent commitment – the focus on financial discipline and returning cash to shareholders remains uniformly strong, reinforcing long–term value. " " " " " "

Tariff and Supply Chain Risks

Q1 2025 examined U.S. tariff policy with a 13% premium and associated benefits, while Q4 2024 also noted the U.S. premium; Q3 2024 had no explicit mention ( " " , " )

Q2 2025 focused on a 5% cost impact from tariffs and detailed strategic actions with suppliers to adjust supply chains and mitigate risks, alongside benefits from U.S. copper premiums ( " " )

Recurring yet variable: while the topic is addressed in most periods, Q2 2025 offers enhanced detail on cost impacts and mitigation strategies, with an overall steady risk–management focus. " " " " "

Regulatory, Geopolitical, and Execution Risks in Indonesia

Q1 2025 and Q4 2024 stressed efforts to secure long–term operating rights, managing export permits, smelter repair challenges, and regulatory negotiations; Q3 2024 detailed smelter fire impacts and export continuity ( " " " , " " , " )

Q2 2025 discussed proactive engagement with Indonesian authorities for extending operating rights beyond 2041, managing smelter transitions, and balancing production with regulatory complexities ( " " " " )

A consistently critical area with shifting emphasis: while core regulatory and execution risks persist, current discussions integrate smelter startup and long–term licensing with a nuanced geopolitical context. " " " " " " " " " "

Production Model Volatility and Ore Grade Uncertainty (Grasberg)

Q3 2024 briefly noted robust performance with grades exceeding forecasts; Q1 2025 and Q4 2024 had little or no detailed discussion on production model adjustments (N/A or minimal mention)

Q2 2025 provided considerable detail on grade variability at Grasberg, with model recalibration on a draw point–by–draw point basis leading to a reduction in 2025 gold production forecasts and explaining the complex flow of material ( " " " " )

An emerging and more granular focus in Q2 2025: increased attention to modeling challenges and timing uncertainties reflects evolving operational insights not previously emphasized. " " " "

North America Operational Efficiency and Cost Reduction Initiatives

Q1 2025, Q3 2024, and Q4 2024 outlined strategies such as contractor reduction, enhanced data analytics, leach programs, and automation to lower unit costs and increase productivity ( " " " )

Q2 2025 reiterated these initiatives, emphasizing the innovative leach program, automation advancements, and targeting lower unit costs amidst tariff challenges ( " " )

A steady, recurring priority that evolves: the focus remains on lowering costs and boosting efficiency in North America, with further integration of innovative programs in the current period. " " " " "

Safford Lone Star Expansion Potential

Q3 2024 detailed a very large resource and the potential to more than double production, while Q4 2024 mentioned oxide expansion as complete and hinted at future sulfide expansion; Q1 2025 did not discuss this (N/A or limited) ( " " , " )

Q2 2025 focused on the broader vision for the Safford Lone Star District, including high-grade deposits like Dos Pobres and the mix of leach versus concentrate production to optimize economics ( " )

Recurring with refinement: while the expansion potential was acknowledged earlier, Q2 2025 provides a more strategic outlook by discussing resource mix and long–term positioning. " " " "

Challenges in Scaling and Implementing New Technologies

Q1 2025 and Q4 2024 addressed issues such as delays in leaching scale–up, additive testing challenges, and scaling operational innovations; Q3 2024 also noted challenges with leach initiatives and smelter incident recovery ( " " , " " )

Q2 2025 presented an in–depth discussion on challenges including field trial scalability of leach additives, precision leaching practices, U.S. smelter expansion hurdles, scrap processing complexities, and block cave modeling difficulties ( " " " " " )

A persistent challenge area now receiving more detailed examination: while scaling issues were always present, the current period emphasizes a broader set of technological and operational challenges with increased transparency. " " " " "