| Metric / Period | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Gross Profit per Pound of Copper** | $0.79 **[0000831259-23-000004_a4q2022exhibit991.htm:38]** | $1.22 **[0000831259-23-000023_fcx-20230331.htm:33]** | $0.94 **[0000831259-23-000032_fcx-20230630.htm:42]** | $0.72 **[0000831259-23-000037_fcx-20230930.htm:46]** | $0.40 **[0000831259-24-000002_a4q2023exhibit991.htm:39]** | $0.51 **[0000831259-24-000019_fcx-20240331.htm:33]** | $0.96 **[0000831259-24-000031_fcx-20240630.htm:41]** | $0.57 **[0000831259-24-000039_fcx-20240930.htm:43]** |
| **Gross Profit per Pound of Molybdenum** | $3.56 **[0000831259-23-000004_a4q2022exhibit991.htm:50]** | $13.47 **[0000831259-23-000016_a1q2023exhibit991.htm:36]** | $4.69 **[0000831259-23-000029_a2q2023exhibit991.htm:50]** | $1.85 **[0000831259-23-000034_a3q2023exhibit991.htm:50]** | $2.48 **[0000831259-24-000002_a4q2023exhibit991.htm:52]** | $1.26 **[0000831259-24-000019_fcx-20240331.htm:56]** | -$1.71 **[0000831259-24-000028_a2q2024exhibit991.htm:49]** | -$4.17 **[0000831259-24-000036_a3q2024exhibit991.htm:50]** |
| **Copper Sales (millions of pounds)** | 1,040 **[0000831259-23-000004_a4q2022exhibit991.htm:5]** | 832 **[0000831259-23-000016_a1q2023exhibit991.htm:4]** | 1,029 **[0000831259-23-000029_a2q2023exhibit991.htm:2]** | 1,100 **[0000831259-23-000034_a3q2023exhibit991.htm:4]** | 1,100 **[0000831259-24-000002_a4q2023exhibit991.htm:4]** | 1,100 **[0000831259-24-000013_a1q2024exhibit991.htm:4]** | 931 **[0000831259-24-000028_a2q2024exhibit991.htm:4]** | 1,000 **[0000831259-24-000036_a3q2024exhibit991.htm:4]** |
| **Gold Sales (thousands of ounces)** | 458 **[0000831259-23-000004_a4q2022exhibit991.htm:5]** | 270 **[0000831259-23-000016_a1q2023exhibit991.htm:4]** | 495 **[0000831259-23-000029_a2q2023exhibit991.htm:2]** | 399 **[0000831259-23-000034_a3q2023exhibit991.htm:4]** | 549 **[0000831259-24-000002_a4q2023exhibit991.htm:4]** | 568 **[0000831259-24-000013_a1q2024exhibit991.htm:4]** | 361 **[0000831259-24-000028_a2q2024exhibit991.htm:4]** | 558 **[0000831259-24-000036_a3q2024exhibit991.htm:4]** |
| **Silver Sales (millions of ounces)** | 1.2 **[0000831259-23-000004_fcx_4q22xccxfinal.htm:10]** | 1.0 **[0000831259-23-000016_fcx_1q23xccxfinal.htm:9]** | 1.1 **[0000831259-23-000034_fcx_3q23xccxfinal.htm:9]** | 0.9 **[0000831259-24-000002_fcx_4q23xccxfinal.htm:9]** | 0.8 **[0000831259-24-000013_fcx_1q24xccxfinal.htm:10]** | 0.9 **[0000831259-24-000028_fcx_2q24xccxfinal.htm:8]** | 0.9 **[0000831259-24-000036_fcx_3q24xccxfinal.htm:8]** |
| **Average Realized Price per Ounce of Silver** | $22.85 **[0000831259-23-000004_a4q2022exhibit991.htm:46]** | $23.29 **[0000831259-23-000016_a1q2023exhibit991.htm:34]** | $22.96 **[0000831259-23-000034_a3q2023exhibit991.htm:46]** | $23.37 **[0000831259-24-000002_a4q2023exhibit991.htm:49]** | $23.90 **[0000831259-24-000013_a1q2024exhibit991.htm:34]** | $28.70 **[0000831259-24-000028_a2q2024exhibit991.htm:45]** | $30.11 **[0000831259-24-000036_a3q2024exhibit991.htm:46]** |
| **Molybdenum Sales (millions of pounds)** | 19 **[0000831259-23-000004_a4q2022exhibit991.htm:5]** | 19 **[0000831259-23-000016_a1q2023exhibit991.htm:4]** | 20 **[0000831259-23-000029_a2q2023exhibit991.htm:2]** | 20 **[0000831259-23-000034_a3q2023exhibit991.htm:4]** | 22 **[0000831259-24-000002_a4q2023exhibit991.htm:4]** | 20 **[0000831259-24-000013_a1q2024exhibit991.htm:4]** | 21 **[0000831259-24-000028_a2q2024exhibit991.htm:4]** | 19 **[0000831259-24-000036_a3q2024exhibit991.htm:4]** |
| **Leach Ore Placed in Stockpiles (metric tons per day)** | 653,300 **[0000831259-23-000004_a4q2022exhibit991.htm:22]** | 613,200 **[0000831259-23-000023_fcx-20230331.htm:32]** | 724,100 **[0000831259-23-000032_fcx-20230630.htm:41]** | 688,600 **[0000831259-23-000037_fcx-20230930.htm:45]** | 740,500 **[0000831259-24-000002_a4q2023exhibit991.htm:22]** | 617,400 **[0000831259-24-000019_fcx-20240331.htm:32]** | 650,300 **[0000831259-24-000028_a2q2024exhibit991.htm:20]** | 551,200 **[0000831259-24-000036_a3q2024exhibit991.htm:21]** |
| **Ore Milled (metric tons per day)** | 297,500 **[0000831259-23-000023_fcx-20230331.htm:32]** | 315,500 **[0000831259-23-000032_fcx-20230630.htm:41]** | 315,800 **[0000831259-23-000037_fcx-20230930.htm:45]** | 307,600 **[0000831259-24-000019_fcx-20240331.htm:32]** | 290,200 **[0000831259-24-000031_fcx-20240630.htm:40]** | 314,700 **[0000831259-24-000036_a3q2024exhibit991.htm:21]** |
| **Average Copper Ore Grade (%)** | 0.35 **[0000831259-23-000004_a4q2022exhibit991.htm:22]** | 0.34 **[0000831259-23-000023_fcx-20230331.htm:32]** | 0.33 **[0000831259-23-000032_fcx-20230630.htm:41]** | 0.30 **[0000831259-23-000037_fcx-20230930.htm:45]** | 0.31 **[0000831259-24-000002_a4q2023exhibit991.htm:22]** | 0.32 **[0000831259-24-000019_fcx-20240331.htm:32]** | 0.29 **[0000831259-24-000031_fcx-20240630.htm:40]** | 0.29 **[0000831259-24-000036_a3q2024exhibit991.htm:21]** |
| **Copper Recovery Rate (%)** | 80.7 **[0000831259-23-000004_a4q2022exhibit991.htm:22]** | 80.4 **[0000831259-23-000023_fcx-20230331.htm:32]** | 83.8 **[0000831259-23-000032_fcx-20230630.htm:41]** | 81.7 **[0000831259-23-000037_fcx-20230930.htm:45]** | 81.0 **[0000831259-24-000002_a4q2023exhibit991.htm:22]** | 81.0 **[0000831259-24-000019_fcx-20240331.htm:32]** | 84.1 **[0000831259-24-000028_a2q2024exhibit991.htm:20]** | 83.1 **[0000831259-24-000036_a3q2024exhibit991.htm:21]** |

aaab28fa6c73ed54d7518a2b840ec600d77e9c810de8d334db016409e105a456

| Segment/Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America Copper Mines ($ million) | **1,416**  **[0000831259-23-000004_a4q2022exhibit991.htm:38]**  | **1,670**  **[0000831259-23-000023_fcx-20230331.htm:17]**  | **1,590**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **1,657**  **[0000831259-23-000037_fcx-20230930.htm:25]**  | **1,399**  **[0000831259-24-000002_a4q2023exhibit991.htm:35]**  | **1,502**  **[0000831259-24-000019_fcx-20240331.htm:18]**  | **1,536**  **[0000831259-24-000028_a2q2024exhibit991.htm:34]**  | **1,591**  **[0000831259-24-000036_a3q2024exhibit991.htm:34]**  |
| South America Mining ($ million) | **1,364**  **[0000831259-23-000004_a4q2022exhibit991.htm:42]**  | **1,436**  **[0000831259-23-000023_fcx-20230331.htm:17]**  | **1,148**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **1,244**  **[0000831259-23-000037_fcx-20230930.htm:25]**  | **1,113**  **[0000831259-24-000002_a4q2023exhibit991.htm:35]**  | **1,136**  **[0000831259-24-000019_fcx-20240331.htm:18]**  | **1,511**  **[0000831259-24-000028_a2q2024exhibit991.htm:34]**  | **1,316**  **[0000831259-24-000036_a3q2024exhibit991.htm:34]**  |
| Indonesia Mining ($ million) | **2,246**  **[0000831259-23-000004_a4q2022exhibit991.htm:46]**  | **1,368**  **[0000831259-23-000023_fcx-20230331.htm:17]**  | **2,237**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **2,095**  **[0000831259-23-000037_fcx-20230930.htm:25]**  | **2,737**  **[0000831259-24-000002_a4q2023exhibit991.htm:35]**  | **2,825**  **[0000831259-24-000019_fcx-20240331.htm:18]**  | **2,268**  **[0000831259-24-000028_a2q2024exhibit991.htm:34]**  | **2,982**  **[0000831259-24-000036_a3q2024exhibit991.htm:34]**  |
| Corporate, Other & Eliminations ($ million) | **(1,513)**  **[0000831259-23-000004_a4q2022exhibit991.htm:38]**  | **(2,190)**  **[0000831259-23-000023_fcx-20230331.htm:17]**  | **(2,087)**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **(2,069)**  **[0000831259-23-000037_fcx-20230930.htm:25]**  | **(1,453)**  **[0000831259-24-000002_a4q2023exhibit991.htm:35]**  | **(1,459)**  **[0000831259-24-000019_fcx-20240331.htm:18]**  | **(1,433)**  **[0000831259-24-000028_a2q2024exhibit991.htm:34]**  | **(2,007)**  **[0000831259-24-000036_a3q2024exhibit991.htm:34]**  |

6f4037167e260838eb23cad2b5c719e37191388e214e3eba9b2b0658a27a4cd9

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

3fd75e4493757b98d16a08e08ecee1636c9ec8e265f8138635d28e43d8e8ef0d

| Product Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Copper Concentrate (in millions) | N/A | **$1,587**  **[0000831259-23-000023_fcx-20230331.htm:15]**  | **$2,185**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **$2,365**  **[0000831259-23-000037_fcx-20230930.htm:23]**  | N/A | N/A | N/A | **$1,786**  **[0000831259-24-000039_fcx-20240930.htm:20]**  |
| Copper Cathode (in millions) | N/A | **$1,327**  **[0000831259-23-000023_fcx-20230331.htm:15]**  | **$1,358**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **$1,331**  **[0000831259-23-000037_fcx-20230930.htm:23]**  | N/A | N/A | N/A | **$2,070**  **[0000831259-24-000039_fcx-20240930.htm:20]**  |
| Rod and Other Refined Copper Products (in millions) | N/A | **$921**  **[0000831259-23-000023_fcx-20230331.htm:15]**  | **$884**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **$992**  **[0000831259-23-000037_fcx-20230930.htm:23]**  | N/A | N/A | N/A | **$1,012**  **[0000831259-24-000039_fcx-20240930.htm:20]**  |
| Purchased Copper (in millions) | N/A | **$204**  **[0000831259-23-000023_fcx-20230331.htm:15]**  | **$72**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **$71**  **[0000831259-23-000037_fcx-20230930.htm:23]**  | N/A | N/A | N/A | **$154**  **[0000831259-24-000039_fcx-20240930.htm:20]**  |
| Gold (in millions) | N/A | **$531**  **[0000831259-23-000023_fcx-20230331.htm:15]**  | **$999**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **$854**  **[0000831259-23-000037_fcx-20230930.htm:23]**  | N/A | N/A | N/A | **$1,394**  **[0000831259-24-000039_fcx-20240930.htm:20]**  |
| Molybdenum (in millions) | N/A | **$592**  **[0000831259-23-000023_fcx-20230331.htm:15]**  | **$491**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **$479**  **[0000831259-23-000037_fcx-20230930.htm:23]**  | N/A | N/A | N/A | **$454**  **[0000831259-24-000039_fcx-20240930.htm:20]**  |
| Other (including silver) (in millions) | N/A | **$133**  **[0000831259-23-000023_fcx-20230331.htm:15]**  | **$170**  **[0000831259-23-000032_fcx-20230630.htm:20]**  | **$136**  **[0000831259-23-000037_fcx-20230930.htm:23]**  | N/A | N/A | N/A | **$169**  **[0000831259-24-000039_fcx-20240930.htm:20]**  |

805e9495317cd9b5c232816eda5b89794e736d417654f1820e79b444b50e751d

FCX, or Freeport-McMoRan Inc., is a leading international mining company headquartered in Phoenix, Arizona, with significant operations in North America, South America, and Indonesia. The company is one of the world's largest publicly traded copper producers and also has substantial reserves of gold and molybdenum **[0000831259-24-000002_a4q2023exhibit991.htm:18]** **[0000831259-24-000013_a1q2024exhibit991.htm:15]** **[0000831259-24-000036_a3q2024exhibit991.htm:17]**. FCX's portfolio includes the Grasberg minerals district in Indonesia, which is one of the world's largest copper and gold deposits, as well as the Morenci minerals district in Arizona and the Cerro Verde operation in Peru **[0000831259-24-000002_a4q2023exhibit991.htm:18]** **[0000831259-24-000013_a1q2024exhibit991.htm:15]** **[0000831259-24-000036_a3q2024exhibit991.htm:17]**. The company's primary product lines include copper, gold, and molybdenum, with copper being the most significant contributor to FCX's revenues **[0000831259-24-000039_fcx-20240930.htm:20]** **[0000831259-24-000039_fcx-20240930.htm:34]**.

1. **Copper** - Produces and sells copper cathode, copper concentrate, and copper rod, which are major components of the company's revenue stream.
   - **Copper Cathode** - Refined copper product used in various industrial applications.
   - **Copper Concentrate** - Intermediate product used in smelting and refining processes.
   - **Copper Rod** - Used in electrical applications and manufacturing.
2. **Gold** - Extracts and sells gold in concentrate and anode slimes, contributing significantly to the company's revenue.
3. **Molybdenum** - Mines and sells molybdenum, a metal used in steel alloys and other industrial applications.

109ef5a04f1be75c939d13e6626071d059f138405be4a233810c2b24d974a997

5c05f9f2e942f905d9cf6f38c08242eff48563bf087d66983f31e3f01686e69a

1. Given the significant cost challenges and lower grades you've been experiencing in your North American operations, can you provide more specifics on your timeline and measurable targets for reducing unit costs and improving productivity?
2. With the recent smelter fire in Indonesia and the lack of business interruption insurance, how do you plan to mitigate potential financial impacts, and what contingency plans are in place if the government does not grant the additional flexibility you are seeking for concentrate exports?
3. The requirement to hold 30% of export proceeds in Indonesian banks for 90 days restricts a significant amount of your cash; how is this affecting your liquidity and capital allocation plans, and what steps are you taking to address this issue with the government?
4. Regarding your capital allocation strategy, how are you prioritizing between the Bagdad expansion, El Abra, and Lone Star projects, and can you provide clarity on how you assess the returns and risks associated with each before committing significant capital?
5. As M&A activity picks up in the mining sector, do you risk falling behind competitors by focusing primarily on organic growth, and how do you intend to adapt if valuable assets become unavailable due to industry consolidation?

b6c63cd47c36d512659a03c3bb74d250645cfed8e4dbf9b50726e46b1cd2d85f

ca1050e95504e01d98ba6f057ce6dec05d563823c3c2d09dcdba3e000165607a

b35227680a6f544529cda5dbb32fbd2e82be702ad8b3aeaaad848b8da646ac61

0ed56bc66693aa985bad6c857cdc8ef7ee4da3754de7b4294a519278e710faa0

- **Freeport-McMoRan's innovative leach initiatives** are expected to significantly increase copper production at very low incremental cost. The company is targeting an annual run rate of **300 million pounds** of incremental copper by the end of **2025**, with the potential to reach **800 million pounds per annum by 2030**. This is achievable by recovering copper from previously mined material considered waste, leveraging existing assets without the need for significant capital expenditure. **These initiatives could add substantial value with low capital intensity**, enhancing margins and expanding reserves.  **[FCX_3413117_18]**
- **Progress on the Indonesian smelter repair and expected export approvals** supports Freeport's production outlook. The smelter repair costs of approximately **$100 million** are covered by insurance, mitigating financial impact. The company expects to receive approval from the Indonesian government to continue exporting concentrate during **2025**, which will allow it to maintain production rates and reduce inventories. Completion and ramp-up of the smelter by mid-2025 is anticipated, and starting in **2026**, export taxes are expected to be **zero**, improving the company's cost structure and profitability.  **[FCX_3413117_23]** **[FCX_3413117_13]** **[FCX_3413117_9]**
- **Cost reduction and efficiency improvements in U.S. operations** are a significant focus for Freeport-McMoRan. The company is implementing automation, reducing contractor usage, and enhancing asset performance to lower unit costs over the next few years. **Labor turnover has stabilized**, allowing for better training and productivity. These efforts aim to **significantly reduce costs**, which will drop straight to the bottom line, enhancing margins and expanding economically viable reserves. Additionally, the potential inclusion of copper as a critical mineral under U.S. legislation could provide a **10% tax credit** on operating costs, further improving profitability.  **[FCX_3413117_12]** **[FCX_3413117_19]**

7f4388100ff1a4fed55b760754ad82d6e94d6efdbddfca3b491fb7bf9fa1f0de

- **Regulatory and geopolitical uncertainties in Indonesia could negatively impact Freeport-McMoRan's operations.** The company is awaiting approval to continue exporting concentrate from Indonesia in 2025, and delays in obtaining export permits could lead to production and sales disruptions. Additionally, potential changes in regulations requiring higher retention of export proceeds in domestic accounts could have a negative impact on the business.  **[FCX_3413117_12]** ,  **[FCX_3413117_5]**
- **The recent smelter fire in Indonesia may lead to prolonged operational disruptions and increased costs.** Repairs are expected to be completed by mid-2025, but during this time, the company will continue paying a **7.5% export tax** on exports throughout 2025, which could affect profitability. There is also uncertainty about when the export permit will be approved, and inventories are building up, which could impact production rates if delays continue.  **[FCX_3413117_23]** ,  **[FCX_3413117_12]**
- **Challenges in effectively implementing new technologies and growth initiatives could hinder future production and cost reduction plans.** Trials with third-party technologies like Jetti Resources for sulfide leaching have shown **mixed results**, and there is uncertainty about the success of these initiatives. Reliance on internal development and possible delays in scaling up innovative leach projects may impact the company's ability to achieve projected production increases and cost efficiencies.  **[FCX_3413117_13]** ,  **[FCX_3413117_21]**

67cc48ee98728e43cd20af0d62fda4aaeecd5351488c47d069b323643bd800da

1. **CapEx Guidance and Projects**  
   **Q:** Is 2026 CapEx guidance including major growth projects?  
   **A:** Yes, some 2026 capital includes potential projects like the Bagdad expansion; if we don't proceed, this spending could be deferred beyond 2026.  **[FCX_3413117_15]**  Sustaining capital is expected to be around **$2 to $2.5 billion** annually, with planned investments primarily for the Grasberg underground, which may decrease over time.  **[FCX_3413117_15]** 

2. **10% Tax Credit Potential**  
   **Q:** When will copper qualify for the 10% tax credit?  
   **A:** Legislation is required; while timing is uncertain, it's still possible in **2025**, potentially bringing a **$500 million** benefit.  **[FCX_3413117_10]** 

3. **M&A and Geopolitical Risk**  
   **Q:** Is M&A a strategy to reduce geopolitical risk?  
   **A:** We monitor opportunities but focus on organic growth; we'll consider M&A if it creates value, but it's not necessary as we have strong opportunities within our own plans.  **[FCX_3413117_12]** 

4. **Indonesia Export Approvals**  
   **Q:** Any updates on Indonesia export approvals impacting production?  
   **A:** The government has indicated support for continuing exports during **2025**; we expect permit approval soon to manage inventories and maintain production rates.  **[FCX_3413117_9]** 

5. **Tariffs Impact on Copper Markets**  
   **Q:** How might tariffs affect copper markets and Freeport?  
   **A:** Freeport sells all U.S. production domestically and doesn't export from the U.S.; tariffs on imports could impact premiums and global growth, which we're monitoring closely.  **[FCX_3413117_17]** 

6. **North American Cost-Cutting**  
   **Q:** Details on North American cost-cutting initiatives?  
   **A:** We're driving costs lower through contractor rationalization and improving asset performance; labor has stabilized, aiding productivity and cost reductions.  **[FCX_3413117_19]** 

7. **Leaching Initiatives**  
   **Q:** What's driving the leaching production increase targets?  
   **A:** Initiatives like deep raffinate injection are set to reach **300 million pounds** of incremental copper by year-end, scaling to **400 million pounds** by end of 2026.  **[FCX_3413117_18]** 

8. **Smelter Repair and Insurance**  
   **Q:** Is smelter repair cost covered by insurance?  
   **A:** Yes, the estimated **$100 million** repair cost is covered by insurance; overall smelter cost estimates haven't increased.  **[FCX_3413117_13]** 

9. **El Abra Expansion Economics**  
   **Q:** Copper price needed for El Abra expansion to work?  
   **A:** The project is robust below a **$4** copper price; **$4** provides a higher return; permit submission is planned, with a stability agreement considered.  **[FCX_3413117_22]** 

10. **Capital Allocation and Debt Strategy**  
    **Q:** Will tight financial profile be maintained despite CapEx?  
    **A:** Yes, policy allocates 50% of available cash to shareholders; we have capacity to fund discretionary projects while maintaining a strong balance sheet.  **[FCX_3413117_20]** 

11. **Export Tax in Indonesia**  
    **Q:** Will 7.5% export tax apply even after smelter repair?  
    **A:** Yes, current regulations impose **7.5%** on exports; export duties will continue in 2025 due to smelter ramp-up, decreasing in **2026** when fully operational.  **[FCX_3413117_23]** 

28b2b32d579344cb21cdede9730b24fd698ff662914e389adbe5f03da6daacb9

61a5feb3b555874f79d47939ea48f477f7832f916a989a27bf1247bc8aa37bb1

FCX’s leach push targets 300M lbs new copper by end-2025 (800M by 2030) at minimal cost, boosting margins/reserves. Indonesian smelter repairs are fully insured ($100M). Approvals expected for 2025 exports, supporting stable output and zero export tax by 2026.

a1d375f54de3044012848ff89ab847733f78cf674a263530eda8e7bdfb827451

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Sales Guidance**: Copper, gold, and molybdenum sales similar to previous outlook  **[FCX_3403193_6]** .
  - **Unit Net Cash Cost**: Average unit net cash cost expected to be **$1.58 per pound**  **[FCX_3403193_6]** .
  - **EBITDA and Cash Flow Sensitivity**: EBITDA from **$11 billion** at $4 copper to **$15 billion** at $5 copper; operating cash flows over **$7 billion** at $4 copper to **$1.5 billion** at $5 copper  **[FCX_3403193_6]** .
  - **Capital Expenditures**: **$3.6 billion** for 2024 and **$4.2 billion** for 2025  **[FCX_3403193_6]** .
  - **Copper Prices**: LME prices averaged **$4.18 per pound**  **[FCX_3403193_2]** .
  - **Leach Initiative**: Expected to scale to **300 million to 400 million pounds per annum**  **[FCX_3403193_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  - **Copper Sales Volumes**: Decreased by 1%  **[FCX_3393949_8]** .
  - **Gold Sales Volumes**: Reflect change in mine sequencing  **[FCX_3393949_7]** .
  - **Consolidated Unit Cash Costs**: Estimated at **$1.63 per pound**  **[FCX_3393949_7]** .
  - **EBITDA and Operating Cash Flows**: EBITDA from **$11 billion** to **$15 billion**; operating cash flows from **$7.5 billion** to **$11 billion**  **[FCX_3393949_7]** .
  - **Capital Expenditures**: **$3.7 billion** in 2024 and **$4.1 billion** in 2025  **[FCX_3393949_7]** .
  - **Leaching Initiative**: Sustaining at **200 million pounds per annum**  **[FCX_3393949_9]** .
  - **Shareholder Returns**: **$4.3 billion** distributed  **[FCX_3393949_7]** .
  - **Smelter Project**: Advancing to commissioning phase  **[FCX_3393949_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Copper Sales Volume**: Increased by **1.5%**  **[FCX_3380247_6]** .
  - **Net Unit Cash Costs**: Estimated at **$1.57 per pound**  **[FCX_3380247_6]** .
  - **Capital Expenditures**: **$3.6 billion** for 2024 and **$3.9 billion** for 2025  **[FCX_3380247_6]** .
  - **EBITDA and Cash Flows**: EBITDA from **$11 billion** to **$15 billion**; operating cash flows from **$7.5 billion** to **$11 billion**  **[FCX_3380247_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  - **Net Unit Cash Cost**: **$1.55 per pound** for Q1 2024; **$1.60 per pound** for FY 2024  **[FCX_3370685_10]** .
  - **Capital Expenditures**: **$3.6 billion** for 2024  **[FCX_3370685_8]** .
  - **Sales Volumes**: Copper similar to 2023; gold 10% higher than prior estimates  **[FCX_3370685_7]** .
  - **EBITDA and Operating Cash Flows**: EBITDA from **$10 billion** to **$14 billion**; operating cash flows from **$7 billion** to **$10 billion**  **[FCX_3370685_7]** .
  - **Production and Cost Projections**: Consolidated unit costs at **$1.60 per pound**  **[FCX_3370685_7]** .

bfebdb294c48dfd11da1d59438fa80f5451d0b3b64ad5bb3e3bdb2f7edf36967

bb9e762914531e548d1e5a29cf9c7ab520001acaab2561873b2a4dfb29efb942

**Gross Profit per Pound of Copper**

**Gross Profit per Pound of Molybdenum**

**Copper Sales (millions of pounds)**

**Gold Sales (thousands of ounces)**

**Silver Sales (millions of ounces)**

**Average Realized Price per Ounce of Silver**

**Molybdenum Sales (millions of pounds)**

**Leach Ore Placed in Stockpiles (metric tons per day)**

**Ore Milled (metric tons per day)**

**Average Copper Ore Grade (%)**

**Copper Recovery Rate (%)**

eecb8797e272dfd9e183151a4c001c568165d238e87e271f297d2f7ca8297aba

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Richard C. Adkerson   | Chairman of the Board                         | February 2021    | Richard C. Adkerson has been the **Chairman of the Board** at FCX since February 2021. He was the CEO from December 2003 until June 2024. He is a recognized leader in the mining industry  **[0000831259-24-000011_fcx-20231231.htm:111]** **[0001193125-24-097876_d462053dpre14a.htm:17]** **[0001193125-24-116028_d462053ddef14a.htm:17]** **[0001193125-24-097876_d462053dpre14a.htm:22]** .                                        |
| Kathleen L. Quirk     | President and Chief Executive Officer         | N/A              | Kathleen L. Quirk is the **President and CEO** of FCX. She has been with the company for over 35 years, previously serving as CFO for 20 years. She has extensive experience in the mining industry  **[0000831259-24-000011_fcx-20231231.htm:111]** **[0001193125-24-097876_d462053dpre14a.htm:20]** **[FCX_3400822_6]** **[FCX_3400822_1]** .                                |
| Maree E. Robertson    | Senior Vice President and Chief Financial Officer | March 2022       | Maree E. Robertson has been the **Senior Vice President and CFO** at FCX since March 2022. She was previously the CFO for Energy and Minerals at Rio Tinto Group and held various finance roles at BHP Group  **[0000831259-24-000011_fcx-20231231.htm:111]** .                                |
| Stephen T. Higgins    | Senior Vice President and Chief Administrative Officer | January 2019    | Stephen T. Higgins is the **Senior Vice President and Chief Administrative Officer** at FCX. He has served as Chief Administrative Officer since January 2019 and was previously Vice President of Sales and Marketing  **[0000831259-24-000011_fcx-20231231.htm:111]** .                     |
| Douglas N. Currault II| Senior Vice President and General Counsel     | October 2019     | Douglas N. Currault II serves as **Senior Vice President and General Counsel** at FCX since October 2019. He previously served as Deputy General Counsel and Assistant General Counsel  **[0000831259-24-000011_fcx-20231231.htm:111]** **[0000831259-23-000013_fcx-20221231.htm:101]** .                                                   |

6bc804e3ca6aa2c8268dac4547c825aa00b8798c1745ab146641ebbd390b0c9d

| Program Details           | Program 1          |
|---------------------------|--------------------|
| Approval Date             | **November 1, 2021**  **[0000831259-24-000039_fcx-20240930.htm:85]** **[0000831259-24-000039_fcx-20240930.htm:10]**  |
| End Date/Duration         | **No expiration date**  **[0000831259-24-000039_fcx-20240930.htm:85]** **[0000831259-24-000039_fcx-20240930.htm:10]**  |
| Total additional amount   | **$5.0 billion**  **[0000831259-24-000039_fcx-20240930.htm:85]** **[0000831259-24-000039_fcx-20240930.htm:10]**  |
| Remaining authorization amount | **$3,105,744,136**  **[0000831259-24-000039_fcx-20240930.htm:85]** **[0000831259-24-000039_fcx-20240930.htm:10]**  |
| Details                   | Provides flexibility in returning capital to shareholders. The timing and amount of repurchases depend on market conditions and cash flow. The program can be modified, increased, suspended, or terminated at any time.  **[0000831259-23-000037_fcx-20230930.htm:88]** **[0000831259-23-000013_fcx-20221231.htm:102]** **[0000831259-24-000039_fcx-20240930.htm:10]**  |

96bb9a1d2d88505ea0bb39d932e9bc03cd594c6c7623389b4186d2dcdacb635d

**Annual guidance for FY 2025:**
- **Copper Production**: 300 million pounds  **[FCX_3413117_5]** **[FCX_3413117_4]**  (no change from prior guidance 300–400 million  **[FCX_3403193_4]** )  
- **Net unit cash cost**: $1.60 per pound  **[FCX_3413117_7]**  (raised from $1.58 per pound  **[FCX_3403193_6]** )  
- **Capital Expenditures**: $4.4 billion  **[FCX_3413117_8]**  (raised from $4.2 billion  **[FCX_3403193_6]** )  
- **EBITDA**: $11 billion at $4 copper to $15 billion at $5 copper  **[FCX_3413117_8]**  (no change from $11 billion to $15 billion  **[FCX_3403193_6]** )  
- **Operating Cash Flow**: $8 billion at $4 copper to $11 billion at $5 copper  **[FCX_3413117_8]**  (raised from $7 billion at $4 copper to $1.5 billion at $5 copper  **[FCX_3403193_6]** )  
- **Grasberg Operations**: Downtime in 2025 due to two major mill repairs  **[FCX_3413117_5]**  (no prior guidance)  
- **Export Duties in Indonesia**: 7.5% in 2025, dropping to 0% in 2026  **[FCX_3413117_23]**  (no prior guidance)  
- **Smelter Operations**: Indonesian smelter production restart by mid-2025  **[FCX_3413117_23]**  (no prior guidance)  
- **U.S. Operations**: Production expected to increase 8% in 2025  **[FCX_3413117_4]**  (no prior guidance)  
- **South America Operations**: Cerro Verde grades slightly lower in 2025  **[FCX_3413117_4]**  (no prior guidance)  
- **Gold and Molybdenum Prices**: $2,700 per ounce for gold and $20 per pound for molybdenum  **[FCX_3413117_8]**  (no prior guidance)  
- **Export Approvals**: Anticipated 2025 concentrate export approval in Q1 2025  **[FCX_3413117_9]**  (no prior guidance)  

8275c64e82d7ad4b8b51a4f493cbf2599b85abc8a55ae7cf968f9bceba534be8

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0000831259-24-000011_fcx-20231231.htm:163]**  | Present  | Current auditor   |

b39ddbb505f3a89019453cd5d7f3e08b756ba01ff671016644e7eebeea47acba

96340714c7f57f01517178f6deca1c4aeca17e1c5f48f80d75c5baa7b9909401

- Total Revenue: $5,720 million (-3% YoY)  **[0000831259-25-000002_a4q2024exhibit991.htm:3]** **[0000831259-25-000002_a4q2024exhibit991.htm:35]** **[0000831259-25-000002_a4q2024exhibit991.htm:23]** **[0000831259-24-000011_fcx-20231231.htm:164]** **[0000831259-24-000011_fcx-20231231.htm:241]** **[0000831259-24-000011_fcx-20231231.htm:243]**   
- **Operating Income**: $1,243 million (-28% YoY)  **[0000831259-25-000002_a4q2024exhibit991.htm:3]** **[0000831259-25-000002_a4q2024exhibit991.htm:35]** **[0000831259-25-000002_a4q2024exhibit991.htm:23]** **[0000831259-24-000011_fcx-20231231.htm:164]** **[0000831259-24-000011_fcx-20231231.htm:241]** **[0000831259-24-000011_fcx-20231231.htm:243]**   
- **Net Income**: $274 million (-88% YoY)  **[0000831259-25-000002_a4q2024exhibit991.htm:3]** **[0000831259-25-000002_a4q2024exhibit991.htm:23]** **[0000831259-24-000011_fcx-20231231.htm:164]** **[0000831259-24-000011_fcx-20231231.htm:241]** **[0000831259-24-000011_fcx-20231231.htm:243]**   
- Diluted EPS: $0.19 (-30% YoY)  **[0000831259-25-000002_a4q2024exhibit991.htm:3]** **[0000831259-25-000002_a4q2024exhibit991.htm:23]** **[0000831259-24-000011_fcx-20231231.htm:164]** **[0000831259-24-000011_fcx-20231231.htm:241]** **[0000831259-24-000011_fcx-20231231.htm:243]**   
- Net Change in Cash: -$1,152 million (vs. -$476 million in Q4 2023)  **[0000831259-25-000002_a4q2024exhibit991.htm:25]** **[0000831259-24-000011_fcx-20231231.htm:166]**   

c0556ee25470b528439607eaba61f9a3f6522f6ed8f7139e9e7457dd3cc46c35

01b94064ec100bc87e9180a98636bdaf249d249ee4e3846b14b3948c13d9fa46

Gross profit per pound of copper (By-Product Method) for South America operations (USD per pound)

Gross profit per pound of copper (Co-Product Method) for South America operations (USD per pound)

Unit net cash costs of copper (By-Product Method) for South America operations (USD per pound)

Unit net cash costs of copper (Co-Product Method) for South America operations (USD per pound)

Copper sales volumes for South America operations (millions of recoverable pounds)

Gross profit per pound of copper (By-Product Method) for North America copper mines (USD per pound)

Copper sales volumes for North America copper mines (millions of recoverable pounds)

Gross profit per pound of copper (By-Product Method) for Indonesia operations (USD per pound)

Unit net cash costs of copper (By-Product Method) for Indonesia operations (USD per pound)

Copper sales volumes for Indonesia operations (millions of recoverable pounds)

Gold sales volumes for Indonesia operations (thousands of recoverable ounces)

Molybdenum sales volumes for Molybdenum mines (millions of recoverable pounds)

53823c048eac777790996670de67d86366ed30f7cdb575a70469e6941601b1a6

2412723073d1f4f0867c20fbca4afae3600163462ff79d06f396fbe7d4353f4f

- **Rising costs and lower grades in North America operations have significantly increased unit costs, creating a big gap compared to South America operations, and grades may not improve.**  **[FCX_3403193_12]**
- **Significant contractor cost increases have further pressured margins, and while the company is reducing contractors by about 10%, these costs remain a challenge.**  **[FCX_3403193_12]**
- **Equipment downtime and premature equipment failures have impacted productivity, requiring focus on maintenance and reliability, which may affect operational efficiencies and increase costs.**  **[FCX_3403193_12]**

71bbf0d871a5ee0eae36a37801d19b482dff4fe717476cccb23cc6d295c9de26

- **Lower ore grades and equipment reliability issues in North America are impacting production and increasing unit costs**, with the company needing to address unplanned maintenance and disruptions, indicating that optimization targets are proving challenging.  **[FCX_3393949_8]**
- **FCX may have to divest an additional 10% stake in its Indonesian operations post-2041 to a state-owned company at book value** as a condition for extending its mining rights, potentially diluting its future earnings from this key asset.  **[FCX_3393949_16]**
- **Significant capital expenditures are required for projects like the Kucing Liar development and potential additional refining capacity in Indonesia**, which could increase financial pressure and limit cash flow available for shareholder returns, with uncertainties in timing and execution.  **[FCX_3393949_19]** **[FCX_3393949_15]**

6edcfe33053a4dc792a54ca39f5dd05ac2a78b99993cbce92d42918b816b5496

1. **Smelter Fire Impact**  
   **Q:** How will the smelter fire affect operations and insurance?  
   **A:** The smelter fire in Indonesia affected an essential area but not a large part of the facility. The company's focus is on completing repairs quickly. The insurance policy covers repair costs but does not include business interruption coverage.  **[FCX_3403193_7]**  They expect to continue exporting concentrate during the repair period.  **[FCX_3403193_7]** 

2. **Government Support and Export Extension**  
   **Q:** Will the government grant export extensions after the smelter fire?  
   **A:** The government understands the situation and has been supportive, recognizing it's in everyone's interest to continue exports. The company expects to receive additional flexibility on export quotas and will work with the government to ensure continuity into 2025.  **[FCX_3403193_7]** **[FCX_3403193_9]** 

3. **Cost Reduction Initiatives**  
   **Q:** What are the plans for reducing costs, especially in North America?  
   **A:** The company is focused on improving efficiency and productivity through maintenance, reducing contractor costs by about **10%**, and leveraging technology. They expect North American costs to trend lower in 2025 despite grade challenges.  **[FCX_3403193_12]** **[FCX_3403193_13]** **[FCX_3403193_14]** 

4. **Capital Allocation and M&A**  
   **Q:** Will there be share buybacks or further M&A activity?  
   **A:** Following their cash flow allocation framework, they plan to deploy **50%** of cash flow to shareholder returns, including share buybacks.  **[FCX_3403193_15]**  They remain open to opportunistic acquisitions like increasing their stake in Cerro Verde and are monitoring the market for M&A opportunities but focus primarily on organic growth.  **[FCX_3403193_15]** **[FCX_3403193_16]** 

5. **2025 CapEx Outlook**  
   **Q:** How should we view 2025 capital expenditures?  
   **A:** 2025 CapEx is expected to be similar to 2024, excluding the smelter.  **[FCX_3403193_18]**  They foresee no significant increases but will continue investments to de-risk projects like Bagdad and evaluate opportunities without major changes to capital plans.  **[FCX_3403193_18]** 

6. **Updates on Major Projects**  
   **Q:** What is the status of major projects like Bagdad and Lone Star?  
   **A:** The Bagdad expansion can be executed in the near term, with ongoing investments to benefit the long-term operation.  **[FCX_3403193_17]**  Studies for Lone Star are underway and expected next year. They aim to allocate capital to the most valuable projects and can pursue multiple projects concurrently.  **[FCX_3403193_17]** 

7. **Restricted Cash Policy**  
   **Q:** Will the restricted cash policy in Indonesia continue?  
   **A:** Yes, the policy requiring **30%** of export proceeds to be held in Indonesian banks for **90 days** will continue beyond the smelter startup unless changed by regulation. It's a measure affecting all exporters in Indonesia.  **[FCX_3403193_8]** 

8. **Cerro Verde Stake Increase**  
   **Q:** Are there opportunities to increase your stake in Cerro Verde?  
   **A:** The recent stake increase was opportunistic. They are interested in buying more if opportunities arise, depending on willing sellers, as Cerro Verde is a high-quality asset that's difficult to replicate.  **[FCX_3403193_9]** **[FCX_3403193_15]** 

9. **Smaller Projects Update**  
   **Q:** Any updates on smaller projects like Lone Star and Atlantic Copper?  
   **A:** The Lone Star oxide expansion will be completed around **2025**, sustaining **300 million pounds** of copper per year.  **[FCX_3403193_19]**  The Atlantic Copper recycling project is under construction, expected to be operational next year, and will enhance value by recycling electronic scrap.  **[FCX_3403193_19]** 

10. **Progress at Grasberg**  
    **Q:** How is the cleanup and equipment placement at Grasberg progressing?  
    **A:** Significant progress has been made at Grasberg. Operations are going well, with the team exceeding forecasts, improving mill throughput, and maintaining strong grades.  **[FCX_3403193_20]** 

596870390e9e57a388c95db585988ff8a86ad3b912da36403b330bf06a419676

- **Efficiency initiatives in North America**: FCX is implementing multifaceted initiatives to reduce costs, including improving equipment reliability, reducing downtime, and decreasing contractor costs by about **10%**. These efforts are expected to lead to **lower unit costs in the U.S. starting in 2025**, even as grades may not improve.  **[FCX_3403193_12]**
- **Significant growth potential at Safford Lone Star**: FCX is conducting a pre-feasibility study to expand the Safford Lone Star operation, which has a resource base that could **double current production from 300 million pounds to 600 million pounds of copper per year**, potentially creating another cornerstone asset with long-lived resources and less stringent permitting requirements.  **[FCX_3403193_11]**
- **Strong commitment to shareholder returns**: FCX follows a capital allocation framework that allocates **50% of cash flow after capital expenditures** to shareholder returns, including dividends and share buybacks. With a strong balance sheet and debt levels well below targets, FCX is positioned to execute this policy and enhance shareholder value.  **[FCX_3403193_15]**

5dbf9991e1ca5f2913fd56193fb2f36818142dbe9bf7f70be334e9da16d9aca4

- **Freeport's leaching initiatives are expected to significantly boost copper production**, with high confidence in reaching **300 million to 400 million pounds per annum by 2026**, providing upside potential to production numbers.  **[FCX_3393949_21]** **[FCX_3393949_9]**
- **Strong support from governments and communities in key regions like the U.S., Peru, and Chile** is facilitating investments in mining projects and leveraging existing operations for faster project execution, particularly with favorable permitting conditions in the U.S.  **[FCX_3393949_18]**
- **Potential extension of PT-FI's operating rights in Indonesia beyond 2041** and development of the large-scale **Kucing Liar project**, expected to start production **before 2030**, will unlock significant value and contribute substantial copper and gold production, extending the life of Grasberg operations.  **[FCX_3393949_16]** **[FCX_3393949_19]**

e33c5ad91d51ebdcbaac7af506d48ef8b1ab61514914f916a04b5f930cb4916e

- **Completion of FCX's Indonesian smelter project** is on track, with first cathode production expected in October. This, along with higher copper prices, is anticipated to significantly boost cash flows, enabling increased cash returns to shareholders under their performance-based payout framework.  **[FCX_3380247_11]**
- **FCX's innovative leaching initiative** has the potential to add **up to 400 million pounds of copper production over the next 2-3 years** at an incremental cost of **below $1 per pound**, significantly enhancing profitability in their U.S. operations.  **[FCX_3380247_8]** **[FCX_3380247_2]**
- **Advancement of organic growth projects**, including the potential expansion at the **Bagdad mine**, where an investment decision could be made by the **end of next year**, and the **Kucing Liar development** in Indonesia, expected to contribute over **500 million pounds of copper and 500,000 ounces of gold** before 2030, will support substantial future growth.  **[FCX_3380247_8]** **[FCX_3380247_6]**

39cd5dc3ab72d4e10c7d9f880957d0033c37dad1dbce2c905fe50d54bd808746

1. **High CapEx for Bagdad Expansion**  
   **Q:** Is $3.5B CapEx for Bagdad expansion the new normal?  
   **A:** Management acknowledges that the **$3.5 billion** capital expenditure for the Bagdad expansion reflects a **new normal** for concentrator and mining infrastructure costs due to factors like low ore grades and necessary investments.  **[FCX_3370685_9]**  They emphasize that while the project may seem expensive, benefits like no royalties, lower U.S. tax rates, strong community support, and existing infrastructure make the economics favorable compared to international projects.  **[FCX_3370685_9]** **[FCX_3370685_16]** 

2. **Unit Cash Cost Guidance**  
   **Q:** Why is full-year unit cash cost guidance higher than Q1?  
   **A:** The first quarter benefits from delayed gold shipments boosting the gold-to-copper ratio, leading to a lower net unit cash cost of **$1.55 per pound**.  **[FCX_3370685_10]**  The full-year guidance of **$1.60 per pound** is higher due to assumed continuation of Indonesian export duties, which may decline as the new smelter ramps up in the second half of the year.  **[FCX_3370685_10]** **[FCX_3370685_11]** 

3. **M&A Prospects**  
   **Q:** Is M&A of producing assets being considered?  
   **A:** Management is constantly monitoring the market but hasn't found attractive M&A opportunities.  **[FCX_3370685_13]**  They believe focusing on internal growth projects like the leach initiative and Kucing Liar project offers better value for shareholders, making external acquisitions less compelling.  **[FCX_3370685_13]** 

4. **Indonesian Concentrate Export License**  
   **Q:** What's the status of the concentrate export extension post-May?  
   **A:** The current export license in Indonesia expires in May 2024, and discussions with the government are ongoing.  **[FCX_3370685_14]**  Both parties are aligned due to the government's stake and tax revenues, and management is optimistic about securing an extension to cover the smelter ramp-up period.  **[FCX_3370685_14]** 

5. **Capital Allocation Priorities**  
   **Q:** How do leach initiative and Bagdad expansion fit in capital plans?  
   **A:** The leach initiative is prioritized due to its **low capital investment** and **low incremental operating cost**, making it a "no-brainer".  **[FCX_3370685_17]**  The Bagdad expansion is being positioned for future execution but isn't an immediate priority; both projects are seen as complementary in meeting future copper demand.  **[FCX_3370685_17]** 

6. **Leach Initiative Details**  
   **Q:** What's the timing and CapEx for the leach initiative?  
   **A:** Management aims to add **200 million pounds** of incremental production over a couple of years through the leach initiative.  **[FCX_3370685_19]**  The project requires minimal capital as existing infrastructure and tank house capacity are utilized, with incremental operating costs around **$1 per pound**.  **[FCX_3370685_19]** 

7. **Cost Trends at Morenci**  
   **Q:** Can site production costs at Morenci decrease?  
   **A:** Management is focused on reducing costs, acknowledging that low ore grades and inflation have increased expenses.  **[FCX_3370685_12]**  Initiatives include increasing leach production, reducing reliance on expensive contractors, and exploring operational efficiencies to drive costs lower over time.  **[FCX_3370685_12]** 

8. **Dividend Outlook**  
   **Q:** Is the current dividend level sustainable for 2024?  
   **A:** The Board regularly reviews financial policies, and while the financial position is strong with positive 2024 projections, any changes to the dividend will be considered carefully to avoid increasing debt.  **[FCX_3370685_20]**  Management believes the current financial position supports the existing dividend level.  **[FCX_3370685_20]** 

9. **TCRC Contracts**  
   **Q:** Can lower spot TCRC rates be renegotiated into contracts?  
   **A:** Most TCRCs are set in annual fixed contracts, so current lower spot rates don't immediately impact existing agreements.  **[FCX_3370685_20]**  As the new Indonesian smelter comes online, reliance on external smelters decreases, which may reduce exposure to TCRCs over time.  **[FCX_3370685_20]** 

4d84e44c17ce5b697f26434a59075fa7fc1f7f7627bf1296c136eec459400aa2

- **Rising production costs and inflationary pressures are impacting profitability, particularly in North America.**  **[FCX_3370685_10]** **[FCX_3370685_12]**
- **Uncertainty over the renewal of concentrate export licenses in Indonesia beyond May 2024 poses risks to future operations.**  **[FCX_3370685_11]** **[FCX_3370685_14]**
- **Delays or hesitations in capital expenditure decisions for expansion projects, such as the Bagdad expansion, due to economic and market factors, may limit future growth.**  **[FCX_3370685_13]** **[FCX_3370685_14]** **[FCX_3370685_16]**

2b597dd781101115f4df15aaa79284b827e9b4adf49806af2c541a5e555377a6

1. **Indonesian Smelter Ramp-Up**  
   **Q:** Can you detail key ramp-up milestones for the new smelter and will you provide separate disclosures on its performance?  
   **A:** Kathleen Quirk explained that they have planned extensively for the smelter startup, bringing together global expertise and training the necessary personnel.  **[FCX_3393949_12]**  They are confident in achieving full capacity by year-end, despite potential challenges.  **[FCX_3393949_12]**  Cory Stevens added that commissioning is underway, with safety checks and plans to initially run at **50% capacity**, ramping up from there.  **[FCX_3393949_12]**  They are taking extra precautions with the flash converting furnace.  **[FCX_3393949_13]**  Disclosures will be integrated into PT-FI's results, reflecting operating costs and revenues.  **[FCX_3393949_12]** 

2. **Indonesia IUPK Extension**  
   **Q:** What is the path to get approval for the IUPK extension, and any timing or milestones you can point to?  
   **A:** Kathleen Quirk stated that with the new regulation issued in May, and the smelter moving into commissioning, PT-FI is positioned to apply for a life-of-mine extension.  **[FCX_3393949_11]**  They expect to apply soon, aiming to complete the approval during **2024**.  **[FCX_3393949_11]**  Discussions with the government have been positive, and they don't anticipate waiting for the new President.  **[FCX_3393949_11]**  Richard Adkerson added that the process is different from the past, with widespread acceptance and understanding of the benefits.  **[FCX_3393949_11]** 

3. **10% Share Transfer Post-2041**  
   **Q:** Are you giving up an extra 10% post-2041 without proceeds, and how will the cash flows work with the 10% IUPK share transfer?  
   **A:** Kathleen Quirk explained they would offer a **10% interest** to a state-owned company post-2041, with reimbursement of capital costs incurred through 2041 that benefit the period beyond.  **[FCX_3393949_16]** **[FCX_3393949_20]**  This is essentially a book value concept and part of the agreement for the extension.  **[FCX_3393949_16]** **[FCX_3393949_20]**  The cash flows between now and 2041 won't be impacted.  **[FCX_3393949_20]** 

4. **Leaching Projects in North America**  
   **Q:** How much lower are the cash costs for the leaching initiatives, and what is the expected trajectory?  
   **A:** Kathleen Quirk stated that the incremental cost per pound for leaching initiatives is under **$1 per pound** because mining costs have already been incurred.  **[FCX_3393949_10]**  They are identifying ore in stockpiles to recover more metal.  **[FCX_3393949_10]**  Scaling up leach production will bring down average unit costs in the U.S., improving competitiveness.  **[FCX_3393949_10]**  The current run rate is in their numbers, and they see opportunities to build towards **300 to 400 million pounds per annum** by 2026.  **[FCX_3393949_21]** 

5. **Gold Sales Revision and Impact**  
   **Q:** Why don't the lost gold ounces due to wet conditions come back later in the plan?  
   **A:** Kathleen Quirk said the loss of **150,000 ounces** is purely a timing issue, and these ounces will come back into the plan over the next few years.  **[FCX_3393949_14]**  It didn't significantly change the overall 5-year plan.  **[FCX_3393949_14]** 

6. **Share Buyback Resumption**  
   **Q:** Should we expect share buybacks to ramp up in the second half of the year?  
   **A:** Kathleen Quirk indicated they will continue buying back stock, following their policy to distribute **50% of available cash** through dividends and share repurchases, excluding smelter investments.  **[FCX_3393949_17]**  It will depend on cash flows.  **[FCX_3393949_17]** 

7. **Kucing Liar Project Update**  
   **Q:** When do you expect first production from Kucing Liar, and when will spending pick up?  
   **A:** Kathleen Quirk expects Kucing Liar to start up toward the end of this decade, before **2030**.  **[FCX_3393949_19]**  Spending will ramp up over the next several years, with some years exceeding the average **$400 million per year**.  **[FCX_3393949_19]**  They are leveraging learnings from developing the Grasberg Block Cave.  **[FCX_3393949_19]** 

8. **Relationships with Governments**  
   **Q:** How are things in Peru, Chile, and North America regarding investments and government relations?  
   **A:** Kathleen Quirk stated there's a strong desire in Peru and Chile for more mining investment, with governments recognizing the need for metals like copper.  **[FCX_3393949_18]**  The U.S. is also prioritizing critical metals.  **[FCX_3393949_18]**  They emphasize the importance of social and community matters and see a more positive environment for investments.  **[FCX_3393949_18]**  Richard Adkerson added that years of commitment to building relationships have led to uniform support from communities and governments.  **[FCX_3393949_18]** 

a93476fd938d49bb485a6744e48cc2382e82ba9f1947097a83c2b0bdce641a38

- **Significant growth potential from low-cost leach initiatives**, targeting to double incremental copper production from **200 million pounds to 400 million pounds per annum over the next 2 to 3 years**, with low capital intensity and operating costs around **$1 per pound**, leveraging existing infrastructure and requiring minimal capital expenditure.  **[FCX_3370685_3]** **[FCX_3370685_7]** **[FCX_3370685_5]** **[FCX_3370685_19]**
- **Exceptional performance in Indonesia**, including record underground ore mined, efficient execution of smelter projects, and plans to **extend operating rights beyond 2041**, unlocking substantial opportunities for reserve and resource expansion in one of the world's largest and highest-grade copper and gold mining districts.  **[FCX_3370685_3]** **[FCX_3370685_7]** **[FCX_3370685_2]** **[FCX_3370685_1]** **[FCX_3370685_6]**
- **Disciplined capital management and strong financial position**, with reductions in 2024 capital expenditures, focus on value-enhancing projects, and commitment to maximizing shareholder value through careful management of operating costs and productivity initiatives, despite industry-wide inflation and supply chain challenges.  **[FCX_3370685_8]** **[FCX_3370685_14]** **[FCX_3370685_16]**

29f53553e9c6412f2935b65aaa0fef36772f7b97afbb9cc307e8d4e72aa76597

- **High operating costs and low ore grades in U.S. operations are impacting profitability**, with unit costs being relatively high compared to historical levels. The company is facing structurally low ore grades, the lowest since 2010.  **[FCX_3380247_8]** ,  **[FCX_3380247_10]**
- **Delays and uncertainties in capital projects**, such as the Bagdad expansion and El Abra project, due to labor shortages, capital cost inflation, and permitting challenges, may hinder future growth prospects.  **[FCX_3380247_8]**
- **Dependence on the successful completion of the Indonesian smelter project and obtaining government approvals** poses operational and regulatory risks. Any delays or issues could impact the company's ability to export concentrates and extend operating rights beyond 2041.  **[FCX_3380247_14]**

93d99572f6735a04f347380e90cb86029124e7193859364e75b2674287bba6cf

1. **U.S. Production Costs**  
   **Q:** Are U.S. operations at around $4 per pound free cash flow breakeven without leaching?  
   **A:** Management acknowledged that due to low ore grades and higher costs, net cash costs in the U.S. are relatively high, about **$3 per pound**, with the incremental cost of leach production closer to **$1 per pound**.  **[FCX_3380247_9]**  They are focusing on productivity gains and efficiency improvements to reduce costs over time.  **[FCX_3380247_9]** 

2. **Capital Returns Policy**  
   **Q:** When will the company provide supplemental capital returns to shareholders?  
   **A:** Management stated they have been executing under their performance-based capital return policy, distributing **50% of available cash flow** since it started.  **[FCX_3380247_9]**  Higher commodity prices will lead to more cash flows and increased shareholder returns.  **[FCX_3380247_9]** 

3. **Productivity Improvements in U.S. Operations**  
   **Q:** When will productivity improvements in U.S. assets be visible in numbers?  
   **A:** Management noted they face structural challenges with **very low ore grades**, the lowest since 2010.  **[FCX_3380247_8]**  They are making progress through maintenance, training, and technology advancements like converting to **fully autonomous haul trucks at Bagdad**.  **[FCX_3380247_8]**  They aim to increase production by **200 million pounds per year** as productivity gains are realized.  **[FCX_3380247_8]** 

4. **Bagdad and El Abra Project Timelines**  
   **Q:** Is the timing for investment decisions at Bagdad and El Abra on track?  
   **A:** For Bagdad, they are focused on workforce challenges and plan to reassess the situation after **18 months**, following the conversion to an autonomous fleet.  **[FCX_3380247_8]**  At El Abra, they are working on capital cost estimates and permitting, expecting a **2 to 3-year** review period in Chile.  **[FCX_3380247_8]** 

5. **Relations with Indonesian Leadership**  
   **Q:** How is the company's dialogue with new leadership in Indonesia developing?  
   **A:** Management expressed confidence in maintaining good relations, citing a **57-year history** in Indonesia.  **[FCX_3380247_13]**  They focus on being a good corporate citizen and providing benefits to all stakeholders, which they believe will endure through administrative changes.  **[FCX_3380247_13]** 

6. **Cerro Verde Production Potential**  
   **Q:** Can Cerro Verde consistently exceed 400,000 tonnes per day?  
   **A:** Management confirmed there is a pathway to consistently exceeding **400,000 tonnes per day** at Cerro Verde.  **[FCX_3380247_14]**  They praised their team for excellent performance despite challenges like water availability.  **[FCX_3380247_14]** 

7. **Financial Performance of U.S. Operations**  
   **Q:** Are U.S. operations losing money based on minority interest figures?  
   **A:** Management referred to segment analysis for specifics but affirmed that U.S. operations have attractive profitability due to factors like a favorable tax situation and owned lands without royalties.  **[FCX_3380247_15]** 

8. **Competitive Advantage of Leaching Technology**  
   **Q:** Does leaching technology offer a competitive advantage for acquisitions?  
   **A:** Management acknowledged that their leaching technology could be advantageous for opportunities where it can be applied, but they are focused on their own **40 billion pounds** of inventory.  **[FCX_3380247_15]** 

38742cc3a0331b76bf8426a88161a2a146584456b9b62aa5a307a226b2ab41ff

Freeport-McMoRan Inc (FCX)

Financials