Freeport-McMoRan — Third-Quarter 2026 Earnings Summary

Financial Performance

• Consolidated copper production approximated 830 million pounds, in line with expectations.
• Consolidated gold production approximated 230 thousand ounces, in line with expectations.
• Consolidated copper sales expected to approximate 750 million pounds, aligning with July 2026 estimates.
• Consolidated gold sales expected to approximate 100 thousand ounces, below July 2026 estimates due to a deferral of approximately 60 thousand ounces of refined gold to the fourth quarter.
• Consolidated unit net cash costs (net of by-product credits, excluding idle facility and restoration costs associated with the Grasberg Block Cave ramp-up) expected to be approximately 5% above the July 2026 estimate of $2.00 per pound of copper, primarily driven by lower by-product credits from deferred gold sales.
• Consolidated average realized price for copper estimated to exceed $6.50 per pound.

Guidance and Future Outlook

• Grasberg Block Cave underground mine mill throughput averaged approximately 140,000 metric tons of ore per day during the quarter, approximating 67% of normalized rates prior to the September 2025 incident.
• Material handling system upgrades at the Grasberg Block Cave haulage level are progressing toward completion by early 2027.
• Production from Production Block 1S is targeted to restart by mid-2027.
• The company expects to reach 80% of Grasberg capacity in mid-2027 and approach full capacity by year-end 2027.
• PTFI's smelter in Eastern Java re-commenced operations in late August 2026 following a suspension after the September 2025 incident, with ramp-up activities proceeding in line with expectations.
• PTFI has combined smelting capacity to produce up to approximately 800,000 metric tons of cathode per annum and a precious metals refinery capable of processing all PTFI gold production.
• An investment decision to double the capacity of the Bagdad operation in Northwest Arizona is targeted for year-end 2026.
• Regulatory processes for a potential transformative expansion of the El Abra mine in Chile are advancing.
• Third-quarter 2026 earnings results are scheduled for release before the market opens on Tuesday, October 27, 2026.

Business Segments and Product Lines

• International operations delivered slightly better results, offsetting slightly lower production in U.S. operations.
• U.S. operations experienced lower than planned operating rates due to increased frequency of localized flooding, power outages, and strong winds.
• Indonesia operations faced abnormally dry weather conditions favorable for mining but presenting milling challenges, which are being actively managed with limited impact.
• The company is advancing its America's Copper Champion™ growth plans, including scaling its innovative leach initiative.

Market and Competitive Landscape

• Freeport is identified as one of the world's largest publicly traded copper producers.
• The company operates large, long-lived, geographically diverse assets including the Grasberg minerals district in Indonesia, the Morenci minerals district in Arizona, and the Cerro Verde operation in Peru.

Risks and Challenges

• Forward-looking statements are subject to risks including supply and demand fluctuations, commodity price changes, and changes in export duties or tariff rates.
• Specific risks include the ability of PTFI to repair mud rush incident-related damage, implement enhanced operating procedures, and achieve full operating rates on the expected timeline.
• Weather and climate-related risks, such as flooding in the U.S. and dry conditions in Indonesia, remain a factor.
• Potential delays, deferrals, or cancellations of mine plans, operational modifications, or inventory management issues could impact results.
• Actual results may differ materially from anticipated projections due to factors outside the company's control.

Management Commentary and Tone

• Operations at the Grasberg minerals district are proceeding in line with expectations.
• The company states it is "strongly positioned for future growth opportunities" regarding Grasberg recovery, innovation-led growth, and organic brownfield development.
• Management notes that the phased ramp-up of the Grasberg Block Cave underground mine is progressing toward completion of upgrades by early 2027.

Other Key Points

• A video highlighting the PTFI smelter operation is available on fcx.com.
• The press release includes a cautionary statement regarding forward-looking statements, noting they are not guarantees of future performance.
• Operational estimates are subject to further changes upon completion of the normal quarterly closing process.