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.