Freeport-McMoRan — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenues were $7.546 billion for the three months ended September 30, 2026, compared to $6.972 billion in the same period in 2025.
• Net income attributable to common stock was $1.174 billion ($0.81 per diluted share) for the quarter, compared to $674 million ($0.46 per diluted share) in 2025.
• Adjusted net income attributable to common stock was $1.3 billion ($0.88 per diluted share) for the quarter.
• Operating income was $2.353 billion for the quarter, up from $1.972 billion in 2025.
• Operating cash flows totaled $2.0 billion (net of $0.4 billion working capital and other uses) in the third quarter, compared to $1.689 billion in 2025.
• Consolidated unit net cash costs averaged $2.07 per pound of copper in the third quarter, up from $1.40 per pound in 2025.
• At September 30, 2026, consolidated debt was $9.4 billion and cash and cash equivalents were $4.3 billion, resulting in net debt of $1.8 billion (excluding $3.2 billion of debt for PTFI's downstream processing facilities).
• Capital expenditures were $1.2 billion for the quarter, including $0.7 billion for major mining projects.

Guidance and Future Outlook:

• Consolidated sales volumes for 2026 are expected to approximate 3.0 billion pounds of copper, 649 thousand ounces of gold, and 93 million pounds of molybdenum.
• Fourth-quarter 2026 sales are expected to include 875 million pounds of copper, 300 thousand ounces of gold, and 22 million pounds of molybdenum.
• Consolidated unit net cash costs for 2026 are expected to average $1.90 per pound of copper.
• Operating cash flows for 2026 are expected to approximate $8.5 billion (net of $0.6 billion working capital and other uses), assuming Q4 prices of $6.50/lb copper, $4,000/oz gold, and $32.00/lb molybdenum.
• Capital expenditures for 2026 are expected to approximate $4.4 billion, including $3.0 billion for major mining projects.
• PTFI expects to reach 80% capacity in mid-2027 and approach full capacity by year-end 2027.
• Leach operations are targeting a production run rate increase from 220 million pounds to 300 million pounds of copper per annum in 2027.

Business Segments and Product Lines:

• Copper: Consolidated production was 832 million pounds and sales were 749 million pounds in Q3 2026. Average realized price was $6.54 per pound.
• Gold: Consolidated production was 234 thousand ounces and sales were 105 thousand ounces in Q3 2026. Average realized price was $4,273 per ounce. Sales were impacted by timing of refined gold sales in Indonesia.
• Molybdenum: Consolidated production was 22 million pounds and sales were 22 million pounds in Q3 2026. Average realized price was $32.46 per pound.
• Indonesia (PTFI): Smelter operations re-commenced in late August 2026. Mill throughput averaged 141 thousand metric tons of ore per day (67% of capacity) in Q3 2026.
• United States: Copper production was 321 million pounds and sales were 333 million pounds in Q3 2026. Operations faced challenges from extreme weather conditions.
• South America: Copper production was 262 million pounds and sales were 263 million pounds in Q3 2026.
• Leaching Initiatives: Incremental copper production from leach initiatives totaled 55 million pounds in Q3 2026 and 156 million pounds for the first nine months of 2026.
• Bagdad Expansion: FCX expects to reach an investment decision on a concentrator expansion in Q4 2026, with estimated capital costs of approximately $4.5 billion.
• El Abra Expansion: An environmental impact study was submitted in March 2026 for a potential major mill facility with preliminary capital costs of approximately $7.5 billion.

Market and Competitive Landscape:

• Favorable pricing for copper and molybdenum drove strong margins.
• FCX positions itself as "America's Copper Champion" with geographically diverse operations.
• PTFI is seeking clarity from the Indonesia government regarding administrative procedures for refined gold exports due to a conflict between current export duty regulations and the terms of its special mining business license (IUPK).

Risks and Challenges:

• PTFI's ramp-up of the Grasberg Block Cave underground mine and the restart of downstream processing facilities following the September 2025 external mud rush incident.
• Idle facility, direct recovery, and restoration costs associated with the mud rush incident totaled $244 million in Q3 2026.
• Abnormally dry weather conditions in Indonesia present challenges for the milling process and water availability.
• Extreme weather conditions in the U.S. adversely affected operating rates and productivity in Q3 2026.
• Potential delays in Indonesia government approvals for the extension of operating rights beyond 2041.
• Volatility in commodity prices (copper, gold, molybdenum) impacts operating cash flows and unit net cash costs.

Management Commentary and Tone:

• Kathleen Quirk, President and CEO, stated the team delivered strong financial results and achieved important milestones to drive value.
• Management highlighted continued steady progress with the Grasberg ramp-up and advanced innovative leach and technology initiatives.
• The tone emphasized operational excellence, delivering growing volumes safely and sustainably, and expanding production to increase margins and cash flow.
• Management noted the strength of the diversified portfolio and the company's position as a global copper leader.

Other Key Points:

• During Q3 2026, FCX purchased 1.4 million shares for $102 million ($70.75 average cost), bringing first-nine-month purchases to 4.9 million shares for $305 million.
• Total returns to shareholders in the first nine months of 2026 were $955 million, consisting of $650 million in dividends and $305 million in share repurchases.
• On September 23, 2026, the Board declared a cash dividend of $0.15 per share ($0.075 base and $0.075 variable), payable November 2, 2026.
• At October 26, 2026, FCX had purchased 56.8 million shares for $2.3 billion under its $5.0 billion share repurchase program.
• PTFI amended its $1.75 billion revolving credit facility in September 2026, extending maturity from November 2028 to September 2031.
• FCX and PTFI entered into a Memorandum of Understanding (MOU) in February 2026 for a life of resource extension in the Grasberg minerals district beyond 2041.
• Kucing Liar development costs totaled approximately $1.6 billion as of September 30, 2026, with an estimated additional $4 billion required through 2033.