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Freeport-McMoRan

Freeport-McMoRanFCXEarnings & Financial Report

NYSE · Materials · Metal Mining

Freeport-McMoRan Inc., often called Freeport, is an American mining company based in the Freeport-McMoRan Center, in Phoenix, Arizona. The company is the world's largest producer of molybdenum, a major copper producer and operates the world's largest gold mine, the Grasberg mine in Papua, Indonesia.

What changed in Freeport-McMoRan's 10-K — 2023 vs 2024

Top changes in Freeport-McMoRan's 2024 10-K

608 paragraphs added · 600 removed · 473 edited across 6 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

185 edited+49 added−32 removed138 unchanged
There can be no assurance that such insurance will continue to be available, maintained or available at economically feasible premiums, that the proceeds of such insurance will be paid in a timely manner or that we will be adequately compensated for losses actually incurred, if at all.
There can be no assurance that such insurance will continue to be maintained or available at economically feasible premiums, that the proceeds of such insurance will be paid in a timely manner or that we will be adequately compensated for losses actually incurred, if at all.
District Court for the District of Delaware) will be the sole and exclusive forum for any (i) derivative action or proceeding brought on our behalf, (ii) action asserting a claim that is based upon a violation of a duty by any of our current or former directors, officers, employees or stockholders in such capacity, (iii) action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law or to which the Delaware General Corporation Law confers jurisdiction upon the Court of Chancery of the State of Delaware, (iv) action asserting a claim governed by the internal affairs doctrine, or (v) action asserting an “internal corporate claim” as that term is defined in Section 115 of the Delaware General Corporation Law.
District Court for the District of Delaware) will be the sole and exclusive forum for any (i) derivative action or proceeding brought on our behalf, (ii) action asserting a claim that is based upon a violation of a duty by any of our current or former directors, officers, employees or stockholders in such capacity, (iii) action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law (DGCL) or to which the DGCL confers jurisdiction upon the Court of Chancery of the State of Delaware, (iv) action asserting a claim governed by the internal affairs doctrine, or (v) action asserting an “internal corporate claim” as that term is defined in Section 115 of the DGCL.
Existing and proposed governmental conventions, laws, rules, regulations, policies and standards as well as existing and proposed voluntary disclosure standards and frameworks (both in the U.S. and internationally), including those related to climate change, carbon taxes or greenhouse gas (GHG) emissions, may in the future add significantly to our operating costs, limit or modify our operations, impact the competitiveness of the commodities we produce, and require more resources to comply and remediate in response.
Existing and proposed governmental conventions, laws, rules, regulations, policies and standards as well as existing and proposed voluntary disclosure standards and frameworks (both in the U.S. and internationally), including those related to climate change, carbon taxes, carbon markets or greenhouse gas (GHG) emissions, may in the future add significantly to our operating costs, limit or modify our operations, impact the competitiveness of the commodities we produce, and require more resources to comply and remediate in response.
While we strive to transition to more renewable power sources for our mining operations, as a commercial consumer of power, our ability to reduce our GHG emissions associated with our power consumption demand is dependent upon the mix of our suppliers and locally-available renewable energy resources at our various sites, including our ability to successfully develop renewable energy projects and negotiate power purchase agreements.
While we strive to transition to more renewable power sources for our mining operations, as a commercial consumer of power, our ability to reduce our GHG emissions associated with our power consumption demand is largely dependent upon the mix of our suppliers and locally available renewable energy resources at our various sites, including our ability to successfully develop renewable energy projects and negotiate power purchase agreements.
The development of our underground mines is also subject to other unique risks including, but not limited to, underground fires or floods, ventilating harmful gases, fall-of-ground accidents, and seismic activity resulting from unexpected or difficult geological formations or conditions, which we experience from time to time in the Grasberg minerals district.
The development of our underground mines is subject to other unique risks including, but not limited to, underground fires or floods, ventilating harmful gases, fall-of-ground accidents, and seismic activity resulting from unexpected or difficult geological formations or conditions, which we experience from time to time in the Grasberg minerals district.
In addition, we may be held responsible for the costs of addressing contamination at the site of current or former activities or at third-party sites, or be held liable to third parties for exposure to hazardous substances should those be identified in the future. For further discussion of our environmental obligations, see the regulatory, environmental and social risks below.
We may be held responsible for the costs of addressing contamination at the site of current or former activities or at third-party sites or be held liable to third parties for exposure to hazardous substances should those be identified in the future. For further discussion of our environmental obligations, see the regulatory, environmental and social risks below.
We recognize that access to clean, safe and reliable water supplies is vital to the health and livelihood of our host communities. Our mining operations require physical availability and secure legal rights to significant quantities of water, and the increasing pressure on water sources requires us to consider both current and future conditions in our approach.
We recognize that access to clean, safe and reliable water supplies is vital to the health and livelihood of our host communities. Our operations require physical availability and secure legal rights to significant quantities of water, and the increasing pressure on water sources requires us to consider both current and future conditions in our approach.
If other disruptive incidents occur, they could adversely affect our results of operations and financial condition. South America South America countries have historically experienced uneven periods of economic growth, as well as recession, periods of high inflation and general economic and political instability. In Peru, political uncertainty has created instability in the regulatory environment.
If other disruptive incidents occur, they could adversely affect our results of operations and financial condition. South America South America countries have historically experienced periods of economic growth, as well as recession, periods of high inflation and general economic and political instability. In Peru, political uncertainty has created instability in the regulatory environment.
In addition to the factors discussed above, copper prices may be affected by demand from China, which is currently the largest consumer of refined copper in the world, including as a result of geopolitical uncertainty between the U.S. and China as well as uncertainties about China’s economy.
In addition to the factors discussed above, copper prices may be affected by demand from China, which is currently the largest consumer of refined copper in the world, including as a result of geopolitical uncertainty and tension between the U.S. and China as well as uncertainties about China’s economy.
We aim to balance our operational water requirements with those of the local communities, environment and ecosystems. Most of our North America and South America mining operations are in areas where competition for water supplies is significant, and where climate change may lead to increasing scarcity of water sources in the future.
We aim to balance our operational water requirements with those of the local communities, environment and ecosystems. Most of our North America and South America operations are in areas where competition for water supplies is significant, and where climate change may lead to increasing scarcity of water sources in the future.
Activities that occurred in the late 19th century and the 20th century prior to the advent of modern environmental laws were not subject to environmental regulation and were conducted before U.S. industrial companies fully understood the long-term effects of their operations on the surrounding environment.
Activities that occurred in the late 19th century and the 20th century prior to the advent of modern environmental laws generally were not subject to environmental regulation and were conducted before U.S. industrial companies fully understood the long-term effects of their operations on the surrounding environment.
In addition, our insurance does not cover most losses caused by the risks described above. For example, we do not have political risk insurance. We conduct international mining operations and exploration activities in Indonesia, Peru and Chile as well as other foreign jurisdictions.
In addition, our insurance does not cover most losses caused by the risks described above. For example, we do not have political risk insurance. We conduct international operations and exploration activities in Indonesia, Peru and Chile as well as other foreign jurisdictions.
Organizations that provide information to investors and financial institutions on ESG performance and related matters have developed quantitative and qualitative data collection processes and ratings processes for evaluating companies on their approach to ESG matters. Such ratings are used by some investors to inform their investment and voting decisions.
Organizations that provide information to investors and financial institutions on ESG performance and related matters have developed quantitative and qualitative data collection processes and ratings processes for evaluating companies on their approach to these matters. Such ratings are used by some investors to inform their investment and voting decisions.
In Central Papua, there have been attacks on civilians by separatists and conflicts between separatists and the Indonesia military and police. In addition, illegal artisanal miners have clashed with police who have attempted to move them away from our facilities.
In Central Papua, there have been attacks on civilians by separatists and conflicts between separatists and the Indonesia military and police. In addition, illegal miners have clashed with police who have attempted to move them away from our facilities.
Further, to the extent that societal pressures or political or other factors are involved, it is possible that such liability could be imposed without regard to our causation of or contribution to the asserted damage, or to other mitigating factors.
Further, to the extent that societal pressures or political or other factors are involved, it is possible that liability could be imposed without regard to our causation of or contribution to the asserted damage, or to other mitigating factors.
That liability is often asserted on a joint and several basis with other prior and subsequent owners, operators and arrangers, meaning that each owner or operator of the property is, and each arranger may be, held fully responsible for the remediation, although in many cases some or all of the other responsible parties no longer exist, do not have 65 Table of Contents the financial ability to respond or cannot be found.
That liability is often asserted on a joint and several basis with other prior and subsequent owners, operators and arrangers, meaning that each owner or operator of the property is, and each arranger may be, held fully responsible 66 Table of Contents for the remediation, although in many cases some or all of the other responsible parties no longer exist, do not have the financial ability to respond or cannot be found.
If we do not adapt to or comply with stakeholder or other third parties expectations, including with respect to evolving ESG disclosure standards and frameworks, or if we are perceived to have not responded appropriately, regardless of whether there is a legal requirement to do so, we may suffer from reputational damage and our business, financial condition, cost of capital and/or stock price could be materially adversely affected.
If we do not adapt to or comply with stakeholder or other third parties’ expectations, including with respect to evolving ESG disclosure standards and frameworks, or if we are perceived to have not responded appropriately, regardless of whether there is a legal requirement to do so, we may suffer from reputational damage and our business, financial condition, cost of capital and/or stock price could be materially adversely affected.
These operational risks, which could materially adversely affect our business, operating results and cash flows, include earthquakes, rainstorms, floods, wildfires and other natural disasters; environmental hazards, including discharge of metals, concentrates, pollutants or hazardous chemicals; surface or underground fires; equipment failures; accidents, including in connection with mining equipment, milling equipment or conveyor systems, transportation of chemicals, explosives or other materials and in the transportation of employees and other individuals to and from sites (including where these services are provided by third parties such as vehicle and aircraft transport); wall failures and rock slides in our open-pit mines, and structural collapses of our underground mines or tailings impoundments; underground water and ore management; lower than expected ore grades or recovery rates; and seismic activity resulting from unexpected or difficult geological formations or conditions (whether in mineral or gaseous form).
These operational risks, which could materially adversely affect our business, operating results and cash flows, include earthquakes, rainstorms, floods, landslides, wildfires and other natural disasters and extreme weather events; environmental hazards, including discharge of metals, concentrates, pollutants or hazardous chemicals; surface or underground fires; equipment failures; accidents, including in connection with mining equipment, milling equipment or conveyor systems, transportation of chemicals, explosives or other materials and in the transportation of employees and other individuals to and from sites (including where these services are provided by third parties such as vehicle and aircraft transport); wall failures and rock slides in our open-pit mines, and structural collapses of our underground mines or tailings impoundments; underground water and ore management; lower than expected ore grades or recovery rates; and seismic activity resulting from unexpected or difficult geological formations or conditions (whether in mineral or gaseous form).
Attacks have included and may include, but are not limited to, installation of malicious software, phishing, ransomware, social engineering tactics and credential attacks, insider threats, denial of service attacks, unauthorized access to data and other advanced and sophisticated cybersecurity breaches and threats, including those that increasingly target critical operational technologies and process control networks and those that are increasingly using artificial intelligence (AI) and quantum computing.
Attacks have included and may include, but are not limited to, installation of malicious software, phishing, ransomware, social engineering tactics and credential attacks, insider threats, denial of service attacks, unauthorized access to data and other advanced and sophisticated cybersecurity breaches and threats, including those that increasingly target critical operational technologies and process control networks and those that are increasingly using AI and quantum computing.
We are, and may in the future become, involved in various legal proceedings and subject to other contingencies that have arisen or may arise in the ordinary course of our business or are associated with environmental matters, including those described in Note 12, Items 1. and 2. “Business and Properties” and in Item 3.
We are, and may in the future become, involved in various legal proceedings and subject to other contingencies that have arisen or may arise in the ordinary course of our business or are associated with environmental matters, including those described in Note 10, Items 1. and 2. “Business and Properties” and in Item 3.
Our level of indebtedness and other financial commitments could have important consequences to our business, including the following: • Limiting our flexibility in planning for, or reacting to, changes in the industry in which we operate; • Increasing our vulnerability to general adverse economic, industry and regulatory conditions; • Limiting our ability to fund future working capital, capital expenditures, general corporate requirements and/or material contingencies, to engage in future development activities or other business opportunities, or to otherwise realize the value of our assets and opportunities fully because of the need to dedicate a substantial portion of our cash flows from operations to payments on our debt; • Requiring us to sell assets to reduce debt; or • Placing us at a competitive disadvantage compared to our competitors that have less debt and/or fewer financial commitments.
Our level of indebtedness, restricted cash and other financial commitments could have important consequences to our business, including the following: • Limiting our flexibility in planning for, or reacting to, changes in the industry in which we operate; • Increasing our vulnerability to general adverse economic, financial, industry and regulatory conditions; 50 Table of Contents • Limiting our ability to fund future working capital, capital expenditures, general corporate requirements and/or material contingencies, to engage in future development activities or other business opportunities, or to otherwise realize the value of our assets and opportunities fully because of the need to dedicate a substantial portion of our cash flows from operations to payments on our debt; • Requiring us to sell assets to reduce debt; or • Placing us at a competitive disadvantage compared to our competitors that have less debt and/or fewer financial commitments.
Maintaining a good working relationship with the Indonesia government, PT Mineral Industri Indonesia (MIND ID), an Indonesia state-owned enterprise and shareholder in PT-FI, and the local population, is important because of the significance of our Indonesia operations to our business, and because our mining operations there are among Indonesia’s most significant business enterprises.
Maintaining a good working relationship with the Indonesia government, PT Mineral Industri Indonesia (Persero) (MIND ID), an Indonesia state-owned enterprise and shareholder in PT-FI, and the local population, is important because of the significance of our Indonesia operations to our business, and because our operations there are among Indonesia’s most significant business enterprises.
Financial risks • Fluctuations or extended material declines in the market prices of the commodities we produce; • Fluctuations in price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; • Less flexibility because of our debt and other financial commitments; • Changes in or failure to comply with financial assurance requirements relating to our mine closure reclamation obligations; • Unanticipated litigation or negative developments in pending litigation or other contingencies; and • Changes in tax laws and regulations.
Financial risks • Fluctuations or extended material declines in the market prices of the commodities we produce; • Fluctuations in price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; • Less flexibility because of our debt and other financial commitments; • Changes in or failure to comply with financial assurance requirements relating to our mine closure reclamation obligations; • Unanticipated legal proceedings or negative developments in pending legal proceedings or other contingencies; and • Changes in tax laws and regulations.
We have a large number of contracts with local and foreign business partners, including suppliers and contractors, who may take action contrary to or fail to adopt standards, controls and procedures, including health, safety, environment, human rights and community standards that are equivalent to our standards, controls and procedures.
We have a large number of contracts with local and foreign business partners, including suppliers and contractors, who may take action contrary to or fail to adopt standards, controls and procedures, including health, safety, environmental, human rights and community standards that are equivalent to our standards, controls and procedures.
Environmental Protection Agency and state environmental agencies have generally become more stringent over time and may become even more stringent in the future.
Environmental Protection Agency (EPA) and state environmental agencies have generally become more stringent over time and may become even more stringent in the future.
Our ability to continue to pay dividends (base or variable) and the timing and amount of any share repurchases is at the discretion of our Board and management, respectively, and is 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 ability to continue to pay dividends (base or variable) and the timing and amount of any share repurchases is at the discretion of our Board and management, respectively, and is subject to a number of factors, including not exceeding our net debt target, capital availability, our financial results, cash requirements, global economic 70 Table of Contents conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable.
We may elect to not purchase insurance for certain risks because of the high premium costs associated with insuring such risk or for various other reasons. We do not have coverage for certain environmental losses and other risks, including the legal liabilities associated with these risks.
We may elect not to purchase insurance for certain risks because of the high premium costs associated with insuring such risk or for various other reasons. For example, we do not have coverage for certain environmental losses, including the legal liabilities associated with these risks.
Shooting incidents have occurred within the PT-FI project area, including along the road leading to our mining and milling operations, which in some instances have involved fatalities or injuries to our employees, contractor employees, government security personnel and civilians.
Shooting incidents have occurred within the PT-FI project area, including along the road leading to our mining and milling operations, which in some instances have involved fatalities or injuries to our employees, contractors, government security personnel and civilians.
“Business and Properties” and Note 12 for further discussion of our environmental obligations. We face increasing, complex and changing regulatory and stakeholder and other third-party expectations relating to our climate and energy transition plans, which may adversely affect our business.
“Business and Properties” and Note 10 for further discussion of our environmental obligations. We face increasing, complex and changing regulatory and stakeholder and other third-party expectations relating to our climate and energy transition plans, which may adversely affect our business.
The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provides electricity at certain operations.
The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provide electricity at certain operations.
If 50 Table of Contents we are unable to maintain our indebtedness and financial ratios at levels acceptable to these credit rating agencies, or should our business prospects deteriorate, our current credit ratings could be downgraded, which could adversely affect the value of our outstanding securities and existing debt, our ability to obtain new financing on favorable terms and could increase our borrowing costs.
If we are unable to maintain our indebtedness and financial ratios at levels acceptable to these credit rating agencies, or should our business prospects deteriorate, our current credit ratings could be downgraded, which could adversely affect the value of our outstanding securities and existing debt, our ability to obtain new financing on favorable terms and could increase our borrowing costs.
We may engage in activities, such as exploration, production, construction or expansion of our operations that have or are perceived to have adverse impacts on the local communities and their relevant 68 Table of Contents stakeholders, society as a whole, Indigenous Peoples, cultural heritage, human rights and the environment, including land management and associated biodiversity, among other things.
We may engage in activities, such as exploration, production, construction or expansion of our operations that have or are perceived to have adverse impacts on the local communities and their relevant stakeholders, society as a whole, Indigenous Peoples, cultural heritage, human rights and the environment, including land management and associated biodiversity, among other things.
In addition, we (including our subsidiaries) may incur additional debt in future periods or reduce our holdings of cash and cash equivalents in connection with funding existing operations, capital expenditures, dividends, share or debt repurchases, or in pursuing other business opportunities.
In addition, we may incur additional debt in future periods or reduce our holdings of cash and cash equivalents in connection with funding existing operations, capital expenditures, dividends, share or debt repurchases, or in pursuing other business opportunities.
We conduct ongoing studies of our ore bodies to optimize economic values and to manage risk. We revise our mine plans and estimates of recoverable proven and probable mineral reserves as required in accordance with the latest available studies.
We conduct ongoing studies of our ore bodies to evaluate economic values and to manage risk. We revise our mine plans and estimates of recoverable proven and probable mineral reserves as required in accordance with the latest available studies.
Our permit for pumping of groundwater will expire in 2029 and any renewal may be challenging. We are evaluating water infrastructure alternatives to provide options to extend existing operations and support a future expansion, while continuing to monitor Chile’s regulatory and fiscal matters, as well as trends in capital costs for similar projects.
Our permit for pumping of groundwater will expire in 2029 and any renewal or provisional extension may be challenging. We are evaluating water infrastructure alternatives to provide options to extend existing operations and support a future expansion, while continuing to monitor Chile’s regulatory and fiscal matters, as well as trends in capital costs for similar projects.
We may not be able to discover, enhance, develop or acquire mineral reserves in sufficient quantities to maintain or grow our current reserve levels, which could negatively affect our cash flows, results of operations and financial condition. Estimates of mineral reserves and mineral resources are uncertain and the volume and grade of ore actually recovered may vary from our estimates.
We may not be able to discover, enhance, develop or acquire mineral reserves in sufficient quantities to maintain or grow our current reserve levels, which could negatively affect our cash flows, results of operations and financial condition. 64 Table of Contents Estimates of mineral reserves and mineral resources are uncertain and the volume and grade of ore actually recovered may vary from our estimates.
We also experience mining induced seismic activity, including landslides, from time to time in the Grasberg minerals district in addition to severe weather. The mine site is in an active seismic area and has experienced earth tremors from time to time.
We also experience mining induced seismic activity, including landslides, from time to time in the Grasberg minerals district in addition to extreme weather. The mine site is in an active seismic area and has experienced earth tremors from time to time.
There can be no assurance that we will be able to execute such water infrastructure plans or obtain a new permit, which could have an adverse impact on our operations. For further discussion, see the risk factor above relating to the geopolitical, economic and social risks associated with our international operations.
There can be no assurance that we will be able to execute such water infrastructure plans or obtain a new permit or provisional extension, which could have an adverse impact on our operations. For further discussion, see the risk factor above relating to the geopolitical, economic and social risks associated with our operations.
Our mines are very large in scale and, by their nature are subject to significant operational risks, some of which are outside of our control, and many of which are not covered fully, or in some cases even partially, by insurance.
Our operations are very large in scale and, by their nature are subject to significant operational risks, some of which are outside of our control, and many of which are not covered fully, or in some cases even partially, by insurance.
There is ongoing and increasing stakeholder and other third-party concern relating to a company’s social license to operate and the perceived effects of mining activities on the environment and on communities impacted by such activities.
There is ongoing and increasing stakeholder and other third-party concern relating to a company’s social license to operate and the actual, potential and perceived effects of mining activities on the environment and on communities impacted by such activities.
Volatility in global economic growth, particularly in developing economies, has the potential to affect adversely future demand and prices for commodities. Geopolitical uncertainty and protectionism have the potential to inhibit international trade and negatively impact business confidence, which creates the risk of constraints on our ability to trade in certain markets and has the potential to increase price volatility.
Volatility in global economic growth, particularly in developing economies, has the potential to affect adversely future demand and prices for commodities. Geopolitical uncertainty and protectionism can inhibit international trade and negatively impact business confidence, which creates the risk of constraints on our ability to deal in certain markets and has the potential to increase price volatility.
In addition, in the southern (estuary) portion of the approved tailings management area, mathematical modeling of certain sediment transport scenarios indicate tailings have the potential to be deposited outside of the approved lateral levees in adjacent mangroves. PT-FI has proposed additional extensions to the existing levees to the Indonesia regulators and is further evaluating the potential benefits and impacts.
In addition, in the southern (estuary) portion of the approved tailings management area, mathematical modeling of certain sediment transport scenarios indicates that tailings have the potential to be deposited outside of the approved lateral levees in adjacent mangroves. PT-FI has proposed additional extensions to the existing levees to the Indonesia regulators and is further evaluating the potential benefits and impacts.
As more fully described in Note 10, during 2021, our Board of Directors (Board) adopted a performance-based payout framework, which currently includes base and variable dividends and a share repurchase program.
As more fully described in Note 8, during 2021, our Board of Directors (Board) adopted a performance-based payout framework, which currently includes base and variable dividends and a share repurchase program.
Ongoing El Niño weather patterns have contributed to ongoing drought conditions in the area and water shortages at our Cerro Verde operation are possible, which could impact our operations. Water for our El Abra mining operation in Chile currently comes from the continued pumping of groundwater from the Salar de Ascotán aquifer.
Weather patterns have contributed to ongoing drought conditions in the area and water shortages at our Cerro Verde operation are possible, which could impact our operations. Water for our El Abra operation in Chile currently comes from the continued pumping of groundwater from the Salar de Ascotán aquifer.
Significant reductions in productivity or protracted work stoppages at one or more of our operations could significantly reduce our production and sales volumes or disrupt operations, which could adversely affect our cash flows, results of operations and financial condition. 62 Table of Contents Our success depends on our ability to recruit, retain, develop and advance qualified personnel.
Significant reductions in productivity or protracted work stoppages at one or more of our operations could significantly reduce our production and sales volumes or disrupt operations, which could adversely affect our cash flows, results of operations and financial condition. Our success depends on our ability to recruit, retain, develop and advance qualified personnel.
We have adopted certain policies and programs, including with respect to responsible production frameworks, climate change, water stewardship, biodiversity and land management, tailings management and stewardship, waste management, safety and health, human capital management, human rights, social performance and community and Indigenous Peoples relations, political activity and spending practices, and supply chains/responsible sourcing.
We have adopted certain policies and programs, including with respect to responsible production frameworks, climate change, water stewardship, biodiversity and land management, tailings management and stewardship, waste management (including of hazardous materials), safety and health, human capital management, human rights, social performance and community and Indigenous Peoples relations, political activity and spending practices, and supply chains/responsible sourcing.
For additional information regarding recent macroeconomic and geopolitical factors, see risk factor 48 Table of Contents below regarding the price and availability of consumables and components we purchase and constraints on supply and logistics, and transportation services. There has been a history of significant volatility in the commodities markets, including the copper market.
For additional information regarding recent macroeconomic and geopolitical factors, see the risk factor below regarding the price and availability of consumables and components we purchase and constraints on supply and logistics, and transportation services. There has been a history of significant volatility in the commodities markets, including the copper market.
Any such loss or theft could lead to financial loss or a failure to satisfy our customers, which could have an adverse impact on our reputation and business. We cannot predict whether additional incidents will occur that could result in loss of life, or disruption or suspension of PT-FI’s operations.
Any such loss or theft could lead to financial loss or a failure to satisfy our customer commitments, which could have an adverse impact on our reputation and business. We cannot predict whether additional incidents will occur that could result in loss of life, or disruption or suspension of PT-FI’s operations.
International risks Our international operations are subject to evolving geopolitical, economic, regulatory and social risks. We are a U.S.-based mining company with substantial assets located outside of the U.S.
International risks Our operations are subject to evolving geopolitical, economic, regulatory and social risks. We are a U.S.-based metals company with substantial assets located outside of the U.S.
Extended material declines in market prices of such commodities could have a material adverse effect on our financial results and the value of our assets, may depress the price of our common stock, and may have a material adverse effect on our ability to comply with financial and other covenants in our debt agreements, service our debt and meet our other obligations.
Extended material declines in market prices of such commodities could have a material adverse effect on our financial results and the value of our assets, may depress the price of our common stock, and may have a material adverse effect on our ability to comply with financial and other covenants in our debt agreements, service our debt and meet our other 48 Table of Contents obligations.
Partially because of the Grasberg minerals district’s significance to Indonesia’s economy, the environmentally sensitive area where it is located, and the number of local people employed, our Indonesia operations have been the subject of political debates and criticism in the Indonesia press, 53 Table of Contents and have been the target of protests and occasional violence.
Partially because of the Grasberg minerals district’s significance to Indonesia’s economy, the environmentally sensitive area where it is located, and the number of local people employed, our Indonesia operations have been the subject of political debates and criticism in the Indonesia press and have been the target of protests and occasional violence.
International risks • Geopolitical, economic, regulatory and social risks for our international operations; and • Failure of PT-FI to meet its commitments to achieve the extension of PT-FI’s IUPK through 2041. 47 Table of Contents Operational risks • Operational risks inherent in mining, including underground mining and the ability to smelt and refine; • Environmental, safety and engineering challenges and risks associated with management of waste rock and tailings; • Environmental challenges associated with our Indonesia mining operations; • Violence, civil and religious strife, and activism; • Availability of significant quantities of secure water supplies for our mining operations, including future expansions or development projects; • Disruptions, damage, failure and implementation and integration risks associated with information and operational technology systems and new technologies; and • Any major public health crisis.
International risks • Geopolitical, economic, regulatory and social risks for our operations; and • PT-FI’s failure to meet its commitments to achieve the extension of its IUPK. 47 Table of Contents Operational risks • Operational risks inherent in our operations, including underground mining and the ability to smelt and refine; • Environmental, safety and engineering challenges and risks associated with management of waste rock and tailings; • Environmental challenges associated with our Indonesia operations; • Violence, civil and religious strife, and activism; • Availability of significant quantities of secure water supplies for our operations, including future expansions or development projects; • Disruptions, damage, failure and implementation and integration risks associated with information and operational technology systems; • Failure to successfully implement or develop and risks associated with new technologies; and • Any major public health crisis.
Our environmental obligation estimates are primarily based upon: • Our knowledge and beliefs about complex scientific and historical facts and circumstances that in many cases occurred many decades ago; • Our beliefs and assumptions regarding the nature, extent and duration of remediation activities that we will be required to undertake and the estimated costs of those remediation activities, which are subject to varying interpretations; and • Our beliefs regarding the requirements that are imposed on us by existing laws and regulations and, in some cases, the clarification of uncertain regulatory requirements that could materially affect our environmental obligation estimates.
Our environmental obligation estimates are primarily based upon our current knowledge and understanding of: • Complex scientific and historical facts and circumstances that in many cases occurred many decades ago; • Assumptions regarding the nature, extent and duration of remediation activities that we will be required to undertake and the estimated costs of those remediation activities, which are subject to varying interpretations; and • Interpretation of the requirements that are imposed on us by existing laws and regulations and, in some cases, the clarification of uncertain regulatory requirements that could materially affect our environmental obligation estimates.
There can be no assurance that our internal control policies and procedures will protect us from misinterpretation of or noncompliance with applicable laws and internal policies, recklessness, fraudulent behavior, dishonesty or other inappropriate acts committed by our affiliates, employees or business partners.
There can be no assurance that our policies, procedures and internal controls will protect us from misinterpretation of or noncompliance with applicable laws and internal policies, recklessness, fraudulent behavior, dishonesty or other inappropriate acts committed by our affiliates, employees, contractors or other business partners.
Further, we cannot predict the impact of splitting provinces on local and regional regulations, permits and other governmental administrative functions, which could have an adverse impact on our business. In 2024, Indonesia is holding national legislative elections, including the presidential election.
Further, we cannot predict the impact of splitting provinces on local and regional regulations, permits and other governmental administrative functions, which could have an adverse impact on our business. In 2024, Indonesia held national legislative elections, including the presidential election.
“Business and Properties.” Based on observations from tailings failures at unaffiliated mines and our risk assessment process, which assesses a range of potential risks to our tailings storage facilities, in addition to fatalities and severe personal, property and environmental damages, these events could result in limited or restricted access to mine sites, suspension of operations, decrease in mineral reserves, legal liability, government investigations, additional regulations and restrictions on mining operations in response to any such failure, increased monitoring costs and production costs, increased insurance costs or costs associated with insufficiency of or inability to obtain insurance, increased costs and/or limited access to capital, remediation costs, inability to comply with any additional safety requirements or obtain necessary certifications, evacuation or relocation of communities or other emergency action, and other impacts, which could have a material adverse effect on our operations and financial position.
“Business and Properties.” Based on observations from tailings failures at unaffiliated mines and our risk assessment process, which assesses a range of potential risks to our tailings storage facilities, in addition to fatalities and severe personal, property and environmental damages, these events could result in limited or restricted access to mine sites, physical failures at sites (such as overtopping of an impoundment), suspension of operations, decrease in mineral reserves, legal liability, government investigations, additional regulations and restrictions on mining operations in response to any such failure, increased monitoring costs and production costs, increased insurance costs or costs associated with insufficiency of or inability to obtain insurance, increased costs and/or limited access to capital, remediation costs, inability to comply with any additional safety requirements or obtain necessary certifications, evacuation or relocation of communities or other emergency action, impacts on occupational health and safety, social risks, and other impacts, which could have a material adverse effect on our operations and financial position.
We also have various other financial commitments, including reclamation and environmental obligations, take-or-pay contracts and leases. Although we have been successful in servicing debt in the past, refinancing our bank facilities and issuing new debt securities in capital markets transactions, there can be no assurance that we can continue to do so.
We also have various other financial commitments, including reclamation and environmental obligations, take-or-pay contracts and leases. Although we have been successful in servicing debt in the past, refinancing our bank facilities and issuing new debt securities in capital markets transactions at the parent and subsidiary levels, there can be no assurance that we can continue to do so.
Our business depends on timely inbound transportation of consumables and components we use and outbound transportation of the commodities we produce by truck, rail and ocean freight.
Our business depends on timely inbound transportation of consumables and components we use and outbound transportation of the commodities we produce such as by truck, rail and ocean freight.
Our ability to recruit qualified personnel is affected by the available pool of workers with the training and skills necessary to fill the available positions, the impact on the labor supply because of general economic conditions and our ability to offer competitive compensation and benefit packages.
Our ability to recruit qualified personnel is affected by the available pool of candidates with the training and skills necessary to fill the vacant positions, the impact on the labor supply because of general economic conditions and our ability to offer competitive compensation and benefit packages.
For further information, see the risk factors below relating to mine closure and reclamation regulations and the increasing scrutiny and evolving expectations from stakeholders and other third parties, including creditors, with respect to our ESG practices, performance and disclosures.
For further information, see the risk factors below relating to mine closure and reclamation regulations and the increasing scrutiny and evolving expectations from stakeholders and other third parties, including creditors, with respect to our environmental and social practices, performance and disclosures.
Exploration is highly speculative in nature, involves many risks and uncertainties, requires substantial capital expenditures (which may differ significantly from those estimated) and, in some instances, advances in processing 63 Table of Contents technology, and is frequently unsuccessful in discovering significant mineral resources since new, large, long-life deposits are increasingly scarce.
Exploration is highly speculative in nature, involves many risks and uncertainties, requires substantial capital expenditures (which may differ significantly from those estimated) and, in some instances, advances in processing technology, and is frequently unsuccessful in discovering significant mineral resources since new, large, long-life deposits are increasingly scarce.
Imposition of more stringent remediation standards, particularly for arsenic and lead in soils, poses a risk that additional remediation work could be required at our active remediation sites and at sites that we have already remediated to the satisfaction of the responsible governmental agencies, and may increase the risk of toxic tort litigation. Refer to Items 1. and 2.
Imposition of more stringent remediation standards, particularly for arsenic and lead in soils, poses a risk that additional remediation work could be required at our active remediation sites and at sites that we have already remediated to the satisfaction of the responsible governmental agencies, and may increase the risk of toxic tort litigation.
Plans and provisions for mine closure, reclamation and remediation may change over time as a result of changes in stakeholder and other third-party expectations, legislation, standards, and technical understanding and techniques, which may cause our actual costs of closure, reclamation and remediation to be higher than estimated for asset retirement obligations (AROs) and environmental obligations and could materially affect our financial position or results of operations.
Plans and provisions for mine closure, reclamation and remediation and oil and gas properties plugging and abandonment obligations may change over time as a result of changes in stakeholder and other third-party expectations, legislation, standards, and technical understanding and techniques, which may cause our actual costs of closure, reclamation and remediation and plugging and abandonment obligations to be higher than estimated for asset retirement obligations (AROs) and environmental obligations and could materially affect our financial position or results of operations.
If we are not able to satisfactorily resolve the issues being addressed in the adjudications, our water uses could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources.
If we are not able to satisfactorily resolve the issues being addressed in the adjudications, our water uses 60 Table of Contents could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources.
Compliance with these laws and regulations imposes substantial costs, which we expect will continue to increase over time because of increased regulatory oversight, adoption of increasingly stringent environmental standards, and other factors.
Compliance 65 Table of Contents with these laws and regulations imposes substantial costs, which we expect will continue to increase over time because of increased regulatory oversight, adoption of increasingly stringent environmental standards, and other factors.
There can be no assurance that a severe or catastrophic failure of any of our facilities will not occur in the future. For additional information regarding the company’s tailings management and stewardship program, including our tailings management system, which incorporates the requirements of the Tailings Standard, refer to Items 1. and 2.
There can be no assurance that a severe or catastrophic failure of any of our facilities will not occur in the future. For additional information regarding the company’s tailings management and stewardship program, including our implementation of the requirements of the Tailings Standard, refer to Items 1. and 2.
Although each of our mining operations currently has access to sufficient water sources to support current operational demands, as discussed above, the availability of additional supplies for potential future expansions or development will require additional investments and will take time to develop, if available.
Although our operations currently have access to sufficient water sources to support current operational demands, as discussed above, the availability of additional supplies for potential future expansions or development will require additional investments and will take time to develop, if available.
We are also subject to claims where the release of hazardous substances is alleged to have resulted in injury, destruction or loss of natural resources. At December 31, 2023, we had more than 80 active remediation projects in 22 U.S. states.
We are also subject to claims where the release of hazardous substances is alleged to have resulted in injury, destruction or loss of natural resources. At December 31, 2024, we had more than 80 active remediation projects in 20 U.S. states.
The occurrence of one or more of these events in connection with our exploration activities and development of and production from mining operations may result in the death of, or personal injury or illness to, our employees, other personnel or third parties, the loss of mining equipment, damage to or destruction of mineral properties or production facilities, significant repair costs, monetary losses, deferral or unanticipated fluctuations in production, extensive community disruption (including short- and long-term health and safety risks), loss of licenses, permits or necessary approvals to operate, loss of workforce confidence, loss of infrastructure and services, disruption to essential supplies or delivery of our products, environmental damage and potential legal liabilities, any of which may adversely affect our reputation, business, prospects, results of operations and financial position.
The occurrence of one or more of these operational risks in connection with our operations may result in the death of, or personal injury or illness to, our employees, other personnel or third parties, the loss of mining equipment, damage to or destruction of mineral properties or production facilities, significant repair costs, monetary losses, deferral or unanticipated fluctuations in production, extensive community disruption (including short- and long-term health and safety risks), loss of licenses, permits or necessary approvals to operate, loss of workforce confidence, 56 Table of Contents loss of infrastructure and services, disruption to essential supplies or delivery of our products, environmental damage and potential legal liabilities, any of which may adversely affect our reputation, business, prospects, results of operations and financial position.
In recent years, 60 Table of Contents cybersecurity events have increased in frequency and magnitude and the methods used to gain unauthorized access change frequently, making it increasingly difficult for us to prevent cybersecurity incidents or detect and remediate incidents in a timely and effective manner.
In recent years, cybersecurity events have increased in frequency and magnitude and the methods used to gain unauthorized access change frequently, making it increasingly difficult for us to prevent cybersecurity incidents or detect and remediate incidents in a timely and effective manner.
If we fail to recruit, retain, develop and advance qualified, inclusive and diverse personnel necessary for the efficient operation of our business, we could continue to face labor challenges, which may result in, but are not limited to, decreased profitability, further decreases to productivity and efficiency, ongoing safety performance challenges, and the further delay of current and potential development projects, any of which may have a material adverse effect on our performance.
If we fail to recruit, retain, develop and advance qualified, inclusive and diverse personnel necessary for the efficient operation of our business 63 Table of Contents or fail to maintain a safe environment, we could continue to face labor challenges, which may result in, but are not limited to, decreased profitability, further decreases to productivity and efficiency, ongoing safety performance challenges, and the further delay of current and potential development projects, any of which may have a material adverse effect on our performance.
The adoption and expansion of trade restrictions, or other governmental action related to tariffs or trade agreements or policies are difficult to predict and could adversely affect copper prices, demand for our products, our costs, our customers, our suppliers and the U.S. economy, which in turn could have a material adverse effect on our business, results of operations or financial condition.
The adoption and expansion of trade restrictions, or other governmental action related to tariffs and other controls on imports and exports or trade agreements or policies are difficult to predict and could adversely affect copper prices, demand for our products, our costs, our customers, our suppliers and the global economy, which in turn could have a material adverse effect on our business, results of operations or financial condition.
“Business and Properties.” 66 Table of Contents In response to climate change and societal or stakeholder demands for action, we have announced 2030 GHG emissions reduction targets and a 2050 net zero aspiration, each of which will result in additional costs to us, the totality of which we cannot currently estimate with accuracy, and we cannot guarantee that we will be able to achieve any current or future GHG emissions targets or aspirations.
“Business and Properties.” In response to climate change and societal or stakeholder demands for action, we are advancing 2030 GHG emissions reduction targets and a 2050 net zero aspiration, each of which will result in additional costs to us, the totality of which we cannot currently estimate with accuracy, and we cannot guarantee that we will be able to achieve any current or future GHG emissions targets or aspirations.
There are many risks and uncertainties inherent in all development projects including, but not limited to, unexpected or difficult geological formations or conditions and environmental challenges, potential delays (including the ability and timeframe to obtain permits, or because of weather, social or political unrest or any major public health crisis), cost overruns, availability of economic sources and reliable access to water, power and infrastructure, lower levels of production during ramp-up periods, shortages of materials or labor, construction defects, equipment breakdowns and injuries to persons and property, social acceptance of such projects by communities and Indigenous Peoples, partner alignment and efficient and profitable operation of mature properties.
There are many risks and uncertainties inherent in all development projects including, but not limited to, unexpected or difficult geological formations or conditions and environmental challenges, potential delays (including the ability and timeframe to obtain permits, or because of weather events, social or political unrest or any major public health crisis), cost overruns, availability of economic sources and reliable access to water, power and infrastructure, lower levels of production during ramp-up periods, shortages of materials or labor, construction defects, equipment breakdowns and injuries to persons and property, social acceptance and, in some cases, Indigenous and community consent for potential impacts, partner alignment and efficient and profitable operation of mature properties.
Fluctuations in commodities prices are caused by varied and complex factors beyond our control, including global supply and demand and inventory levels; global economic and political conditions (such as level of economic growth or recession and political or geopolitical conflicts); international regulatory, trade and/or tax policies, including national tariffs; commodities investment activity and speculation; interest rates; expectations regarding future inflation rates; the strength of the U.S. dollar compared to foreign currencies; the price and availability of substitute products; and changes in technology.
Fluctuations in commodities prices are caused by varied and complex factors beyond our control, including global supply and demand and inventory levels; global economic and political conditions (such as election results, level of economic growth, or recession and political or geopolitical tensions and conflicts); national and international regulatory, trade and/or tax policies, including tariffs and other controls on imports and exports; commodities investment activity and speculation; interest rates; current inflation rates and expectations regarding future inflation rates; the strength of the U.S. dollar compared to foreign currencies; the price and availability of substitute products; and changes in technology.
We are required by U.S. federal and state laws and regulations to provide financial assurance sufficient to allow a third party to implement approved closure and reclamation plans for our mining properties if we are unable to do so. As of December 31, 2023, our financial assurance obligations totaled $1.8 billion for closure and reclamation costs of U.S. mining sites.
We are required by U.S. federal and state laws and regulations to provide financial assurance sufficient to allow a third party to implement approved closure and reclamation plans for our mining properties if we are unable to do so. As of December 31, 2024, our financial assurance obligations totaled $2.0 billion for closure and reclamation costs of U.S. mining sites.
Our estimates of mineral reserves and mineral resources have been prepared in accordance with the disclosure requirements of Subpart 1300 of U.S. Securities and Exchange Commission (SEC) Regulation S-K. There are numerous uncertainties inherent in mineral estimates.
Our estimates of mineral reserves and mineral resources have been prepared in accordance with the disclosure requirements of Subpart 1300 of SEC Regulation S-K. There are numerous uncertainties inherent in mineral estimates.
We incurred no fatalities or injuries relating to shootings within the PT-FI project area since April 2020, and we have had no shootings associated with the PT-FI project area 58 Table of Contents since January 2021.
We incurred no fatalities or injuries relating to shootings within the PT-FI project area since April 2020, and we have had no shootings associated with the PT-FI project area since January 2021.
On December 21, 2018, PT-FI was granted an IUPK to replace its former COW, enabling PT-FI to conduct operations in the Grasberg minerals district through 2041, subject to certain requirements. Refer to Note 13 for a summary of the IUPK’s key fiscal terms and requirement to develop additional smelting and refining capacity.
In December 2018, PT-FI was granted an IUPK to replace its former contract of work, enabling PT-FI to conduct operations in the Grasberg minerals district through 2041, subject to certain requirements. Refer to Note 11 for a summary of the IUPK’s key fiscal terms and requirement to develop additional smelting and refining capacity.
While the August 2023 cybersecurity incident and other cybersecurity events have not had a material impact on us, we can provide no assurance that we will not experience any such impact or additional interruptions to our operations in the future.
While cybersecurity events have not had a material impact on us, we can provide no assurance that we will not experience any such impact or additional interruptions to our operations in the future.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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We also have processes to oversee and identify material cybersecurity risks associated with our use of third-party service providers, including performing diligence on certain third parties that have access to our systems, data or facilities that store such systems or data, continually monitoring cybersecurity threat risks identified through such diligence and contracting to manage cybersecurity risks in specified ways such as agreements to be subject to periodic cybersecurity audits.
We also have processes to oversee and identify material cybersecurity risks associated with our use of third-party service providers, including utilizing safeguards to protect sensitive data, performing diligence on certain third parties that have access to our systems, data or facilities that store such systems or data, continually monitoring cybersecurity threat risks identified through such diligence and contracting to manage cybersecurity risks in specified ways such as requiring agreements to be subject to periodic cybersecurity audits.
The Audit Committee reviews and discusses with management, including reports from our CIO, at least annually: • the adequacy and effectiveness of our information technology security processes and procedures, • the assessment of risks and threats to our information technology systems, • the internal controls regarding information technology security and cybersecurity, and • the steps management has taken to monitor and mitigate information technology security and cybersecurity risks.
The Audit Committee reviews and discusses with management, including reports from our Chief Innovation Officer, at least annually: • the adequacy and effectiveness of our information technology security processes and procedures, • the assessment of risks and threats to our information technology systems, • the internal controls regarding information technology security and cybersecurity, and • the steps management has taken to monitor and mitigate information technology security and cybersecurity risks.
We maintain and periodically evaluate and, as needed, update our information security policy and an incident response plan, which describes the processes we use to prepare for, detect, respond to and recover from a cybersecurity incident, 70 Table of Contents including processes to assess severity, escalate, contain, investigate and remediate an incident, as well as to comply with potentially applicable legal obligations.
We maintain and periodically evaluate and, as needed, update our information security policy and an incident response plan, which describes the processes we use to prepare for, detect, respond to and recover from a cybersecurity incident, including processes to assess severity, escalate, contain, investigate and remediate an incident, as well as to comply with potentially applicable legal and disclosure obligations.
Our approach to cybersecurity incorporates a layered portfolio of technology controls, including strategic partnerships for our cybersecurity platforms, documented policies and procedures, end user training and dedicated resources to manage and monitor the evolving threat landscape, including through the gathering of actionable threat intelligence.
Our approach to cybersecurity incorporates a layered portfolio of technology controls, including strategic partnerships for our cybersecurity platforms, documented policies and procedures, periodic end user training, including cybersecurity awareness training for employees and certain contractors, and dedicated resources to manage and monitor the evolving threat landscape, including through the gathering of actionable threat intelligence.
The Audit Committee also periodically receives reports on notable cybersecurity incidents. The Audit Committee periodically briefs the full Board on these matters. 71 Table of Contents
The Audit Committee also periodically receives reports on notable cybersecurity incidents and briefs the full Board on these matters.
An annual report on our enterprise risks, including cybersecurity risks, is presented to the Audit Committee and/or the full Board of Directors (Board). While management is responsible for the day-to-day management of cybersecurity risks, our Board and Audit Committee have ongoing oversight roles.
While management is responsible for the day-to-day management of cybersecurity risks, our Board and its Audit Committee have ongoing oversight roles.
Our ERM management committee is responsible for providing input and oversight on our ERM program, including cybersecurity risks. Our ERM management committee is comprised of senior leaders, including our CIO, with responsibility across operations and core business functions, and with a breadth of knowledge, influence and experience covering the risks we face.
Our ERM management committee is comprised of senior leaders, including our Chief Innovation Officer, with responsibility across operations and core business functions, and with a breadth of knowledge, influence and experience covering the risks we face. An annual report on our enterprise risks, including cybersecurity risks, is presented to the Audit Committee and/or the full Board of Directors (Board).
Governance Our cybersecurity risk management and strategy processes are led by our Chief Information Officer (CIO) and our Chief Information Security Officer (CISO).
Our cybersecurity risk management and strategy processes described in “Risk Management and Strategy” above are led by our Chief Information Officer (CIO) and our Chief Information Security Officer (CISO). Our CIO and CISO each report to our Chief Innovation Officer. Our CIO is responsible for the strategy, deployment, operational effectiveness and risk management of our technology systems and operations.
Removed
Our CIO and CISO are responsible for assessing and managing our material risks from cybersecurity threats and are informed about and oversee the prevention, detection, mitigation and remediation of cybersecurity incidents through their management of, and participation in, our cybersecurity risk management and strategy processes described in “Risk Management and Strategy” above.
Added
Governance Our Senior Vice President and Chief Innovation Officer, who has served in various senior leadership roles in operational improvement and technology during his nearly 30-year tenure with us, leads our innovation and technology initiatives, corporate information systems and financial shared services.
Removed
These individuals collectively have over 55 years of prior work experience in various roles involving managing information and operational technology security, cybersecurity and operational technology risk management, developing cybersecurity strategy, implementing effective information technology and cybersecurity processes and procedures, and experience in managing regulatory compliance, as well as several relevant degrees and certifications, including one individual with the Certified Information Systems Security Professional certification.
Added
Our CIO has over 30 years of experience in technology, cybersecurity and risk management, including leading information and technology initiatives for companies in the mining and energy sectors as a partner and senior managing director at a global professional services public company specializing in information technology services and management consulting.
Removed
Our Audit Committee has responsibility for, among other things, oversight of our information technology and cybersecurity processes and procedures, including oversight of risks from cybersecurity threats.
Added
Our CISO is responsible for protecting our global technology systems from cybersecurity incidents, which includes overseeing the deployment of cybersecurity controls, managing a team of cybersecurity professionals and reporting on cybersecurity matters to management and the Audit Committee of our Board.
Added
Our CISO has 30 years of experience in the technology and 72 Table of Contents cybersecurity industries, including 15 years serving as CISO for public companies. Our CISO is also a Certified Information Systems Security Professional. Our ERM management committee is responsible for providing input and oversight on our ERM program, including cybersecurity risks.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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In 2017, the court approved ADWR’s proposed subflow zone maps; water pumped from wells located inside the mapped subflow zone is now presumed to be appropriable subflow. No party has appealed that decision. ADWR is now in the process of preparing subflow delineations for the applicable watercourses in the Verde River watershed.
In 2017, the court approved ADWR’s proposed subflow zone maps; water pumped from wells located inside the mapped subflow zone is now presumed to be appropriable subflow. No party has appealed that decision. ADWR is now in the process of preparing subflow zone delineations for the applicable watercourses in the Verde River watershed.
In December 2021, ADWR issued a report proposing a subflow delineation for the Verde River mainstem and Sycamore Creek and objections to that report were submitted in May 2022.
In December 2021, ADWR issued a report proposing a subflow zone delineation for the Verde River mainstem and Sycamore Creek and objections to that report were submitted in May 2022.
Various “contested cases” to quantify reserved water rights for particular federal reservations in Arizona are currently pending, three of which have been resolved at this time. The first resolved decision was issued in In re Aravaipa Canyon Wilderness Area, which pertained to the U.S.’s claims to water for the Aravaipa Canyon Wilderness Area.
Various “contested cases” to quantify reserved water rights for particular federal reservations in Arizona are currently pending, four of which have been resolved at this time. The first resolved decision was issued in In re Aravaipa Canyon Wilderness Area, which pertained to the U.S.’s claims to water for the Aravaipa Canyon Wilderness Area.
Groundwater is treated differently from surface water under Arizona law, which historically allowed landowners to pump unlimited quantities of subsurface water, subject only to the requirement of putting it to “reasonable use.” However, court decisions in the adjudication have concluded that some subsurface water constitutes “subflow” that is to be treated legally as surface water and is therefore subject to the Arizona doctrine of prior appropriation and to the adjudication, and potentially unavailable to groundwater pumpers, including us, in the absence of valid surface water claims.
Groundwater is treated differently from surface water under Arizona law, 73 Table of Contents which historically allowed landowners to pump unlimited quantities of subsurface water, subject only to the requirement of putting it to “reasonable use.” However, court decisions in the adjudication have concluded that some subsurface water constitutes “subflow” that is to be treated legally as surface water and is therefore subject to the Arizona doctrine of prior appropriation and to the adjudication, and potentially unavailable to groundwater pumpers, including us, in the absence of valid surface water claims.
While we do not have any active mining operations in the Verde River watershed that would be impacted by this phase of the adjudication, we filed a set of limited objections on issues that could set a precedent for other watersheds in Arizona that could have material implications for many users of groundwater, including our Arizona operations, and our objections have not been resolved.
While we do not have any active mining operations in the Verde River watershed that would be impacted by this phase of the adjudication, we filed a set of limited objections on issues that could set a precedent for other watersheds in Arizona that could have material implications for many users of groundwater, including our Arizona operations.
On November 14, 2018, the Special Master for the Gila River adjudication issued a final decision rejecting ADWR’s recommended cone of depression test, adopting our position that a numeric model capable of accounting for complexities of the aquifer system should be used.
In November 2018, the Special Master for the Gila River adjudication issued a final decision rejecting ADWR’s recommended cone of depression test, adopting our position that a numeric model capable of accounting for complexities of the aquifer system should be used.
No party has appealed that decision, and we expect the guidance from the Special Master’s order to be reflected in ADWR’s subflow depletion test report.
No party has appealed that decision, and we expect the guidance from the Special Master’s order to be reflected in the subflow depletion test.
We, along with allied parties, have objected to the Special Master’s ruling and are awaiting further proceedings before the Arizona Superior Court. 73 Table of Contents Regardless of the outcome in the Arizona Superior Court, we anticipate this issue will be appealed to the Arizona Supreme Court.
We, along with allied parties, have objected to the Special Master’s ruling and are awaiting further proceedings before the Arizona Superior Court. Regardless of the outcome in the Arizona Superior Court, we anticipate this issue will be appealed to the Arizona Supreme Court.
If we are not able to satisfactorily resolve the issues being addressed in the adjudications, our water uses could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources. 74 Table of Contents
If we are not able to satisfactorily resolve the issues being addressed in the adjudications, our water uses could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources.
In addition to the material pending legal proceedings discussed below and in Note 12, we are involved periodically in ordinary routine litigation incidental to our business and not required to be disclosed, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief.
In addition to the proceedings discussed below and in Note 10, we are involved periodically in ordinary routine litigation incidental to our business and not required to be disclosed, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief.
These federal proceedings have been 72 Table of Contents stayed in favor of the adjudications pending in Arizona state courts, and some of the federal suits have since been settled.
These federal proceedings have been stayed in favor of the adjudications pending in Arizona state courts, and some of the federal suits have since been settled.
Item 3. Legal Proceedings. Below is a discussion of our material pending legal proceedings not otherwise required to be disclosed in our Notes to Consolidated Financial Statements. Refer to Note 12 for a discussion of other material pending legal proceedings.
Item 3. Legal Proceedings. Below is a discussion of pending legal proceedings not otherwise required to be disclosed in our Notes to Consolidated Financial Statements. Refer to Note 10 for further discussion.
Objections to such report are due in April 2024. An issue litigated in the 2018 proceeding concerned whether for the subflow depletion test the subflow zone should be represented in the numeric model as extending only as deep as the bottom of the floodplain alluvium or extend all the way down to bedrock.
An issue litigated in the 2018 proceeding concerned whether for the subflow depletion test the subflow zone should be represented in the numeric model as extending only as deep as the bottom of the floodplain alluvium or extend all the way down to bedrock.
The court adopted our proposed period of record for quantifying the stream, and therefore adopted our proposed streamflow, and rejected the U.S.’s claims for “streamflow augmentation” and claims to water from various point sources. It is unknown whether the U.S. will pursue an interlocutory appeal.
The court adopted our proposed period of record for quantifying the stream, and therefore adopted our proposed streamflow, and rejected the U.S.’s claims for “streamflow augmentation” and claims to water from various point sources. We anticipate that a decree will be entered in 2025. It is unknown whether the U.S. will pursue an interlocutory appeal.
Such matters will be determined by a subsequent “subflow depletion test,” which was proposed by ADWR in 2023. While some of our adversaries objected to the Special Master’s final decision, in July 2022, the Arizona Superior Court issued a decision affirming the Special Master’s decision in all respects. No party has appealed that decision.
Such matters will be determined by a subsequent “subflow depletion test,” which is currently under development. While some of our adversaries objected to the Special Master’s final decision, in July 2022, the Arizona Superior Court issued a decision affirming the Special Master’s decision in all respects.
In 2014, ADWR submitted a proposal for the development of procedures for “cone of depression” analyses to determine whether a well located outside of the subflow zone creates a cone of depression that intersects the subflow zone.
The Special Master has directed ADWR to submit revised subflow zone delineations consistent with our objections. In 2014, ADWR submitted a proposal for the development of procedures for “cone of depression” analyses to determine whether a well located outside of the subflow zone creates a cone of depression that intersects the subflow zone.
In December 2018, ADWR submitted its initial report on the “subflow depletion test,” noting that the test will specify the methodology a well owner must use to quantify the portion of the water drawn from a well that is subflow as opposed to groundwater. ADWR’s report setting forth its proposed subflow depletion test is due later in February 2024.
No party has appealed that decision. 74 Table of Contents In December 2018, ADWR submitted its initial report on the “subflow depletion test,” noting that the test will specify the methodology a well owner must use to quantify the portion of the water drawn from a well that is subflow as opposed to groundwater.
A fourth case, In re Fort Huachuca , which involves the U.S.’s claims to water for an Arizona army base, is awaiting a decision following a trial that concluded in February 2017.
The fourth resolved decision was issued in, In re Fort 75 Table of Contents Huachuca , which involved the U.S.’s claims to water for an Arizona army base. Trial concluded in February 2017. The court issued its decision in September 2024 supportive of our position on almost all issues and entered a decree in December 2024.
Added
In February 2024, ADWR issued a report setting forth its proposed subflow depletion test, and objections were filed in April 2024. The Special Master ordered ADWR to file an addendum to its report concerning various issues raised in the objections. A status conference is scheduled for February 2025.
Added
The result was an approximate 80% reduction of the total acre-feet per year claimed by the U.S. It is unknown whether the U.S. will pursue an interlocutory appeal.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Quirk previously served as CFO from December 2003 to March 2022, Executive Vice President from March 2007 to February 2021, Senior Vice President from December 2003 to March 2007 and Treasurer from February 2000 to August 2018. Ms. Quirk also serves on the Board of Directors of Vulcan Materials Company. Maree E.
Quirk previously served as Chief Financial Officer (CFO) from December 2003 to March 2022, Executive Vice President from March 2007 to February 2021, Senior Vice President from December 2003 to March 2007 and Treasurer from February 2000 to August 2018. Ms. Quirk also serves on the Board of Directors of Vulcan Materials Company. Maree E.
Higgins has served as Chief Administrative Officer since January 2019 and as Senior Vice President since August 2018. Mr. Higgins previously served as Vice President – Sales and Marketing from March 2007 to August 2018 and President of Freeport-McMoRan Sales Company Inc. from April 2006 to August 2019. Douglas N.
Higgins has served as Executive Vice President since July 2024 and Chief Administrative Officer since January 2019. Mr. Higgins previously served as Senior Vice President from August 2018 to June 2024, Vice President – Sales and Marketing from March 2007 to August 2018 and President of Freeport-McMoRan Sales Company Inc. from April 2006 to August 2019. Douglas N.
Robertson has served as Senior Vice President and CFO since March 2022. Prior to joining the company, Ms. Robertson served as CFO, Energy and Minerals of Rio Tinto Group, a multinational metals and mining company, from September 2019 to December 2021. Prior to joining Rio Tinto, Ms.
Robertson has served as Executive Vice President since July 2024 and CFO since March 2022. She previously served as Senior Vice President from March 2022 to June 2024. Prior to joining the company, Ms. Robertson served as CFO, Energy and Minerals of Rio Tinto Group, a multinational metals and mining company, from September 2019 to December 2021.
Currault II has served as Senior Vice President and General Counsel since October 2019. Mr. Currault previously served as Deputy General Counsel from January 2015 to October 2019, Assistant General Counsel from January 2008 to January 2015, Secretary from May 2007 to December 2019 and Assistant Secretary from February 2000 to May 2007. 75 Table of Contents PART II
Currault previously served as Senior Vice President from October 2019 to June 2024, Deputy General Counsel from January 2015 to October 2019, Assistant General Counsel from January 2008 to January 2015, Secretary from May 2007 to December 2019 and Assistant Secretary from February 2000 to May 2007. 77 Table of Contents PART II
Adkerson previously served as Vice Chairman of the Board from May 2013 to February 2021, President from January 2008 to February 2021 and also from April 1997 to March 2007, and Chief Financial Officer (CFO) from October 2000 to December 2003. Kathleen L.
Adkerson previously served as CEO from December 2003 to June 2024, Vice Chairman of the Board from May 2013 to February 2021, President from January 2008 to February 2021 and also from April 1997 to March 2007, and CFO from October 2000 to December 2003. Stephen T.
Robertson had a 17-year career at BHP Group, a multinational natural resources company, serving in a broad range of international finance functions, including Vice President, Finance, Petroleum USA; Head of Finance, Conventional and Potash, Petroleum, USA; Vice President, Finance, Potash Canada; and Vice President, Finance, Minera Escondida Ltda. Stephen T.
Prior to joining Rio Tinto, Ms. Robertson had a 17-year career at BHP Group, a multinational natural resources company, serving in a broad range of international finance functions, including Vice President, Finance, Petroleum USA; Head of Finance, Conventional and Potash, Petroleum, USA; Vice President, Finance, Potash Canada; and Vice President, Finance, Minera Escondida Ltda. 76 Table of Contents Richard C.
Information About Our Executive Officers. Certain information as of February 15, 2024, about our executive officers is set forth in the following table and accompanying text: Name Age Position or Office Richard C. Adkerson 77 Chairman of the Board and Chief Executive Officer Kathleen L. Quirk 60 President Maree E.
Information About Our Executive Officers. Certain information as of February 14, 2025, about our executive officers is set forth in the following table and accompanying text: Name Age Position or Office Kathleen L. Quirk 61 President and Chief Executive Officer Maree E. Robertson 49 Executive Vice President and Chief Financial Officer Richard C.
Quirk has served as President since February 2021 and as a director of the Board since February 2023. Effective at the annual meeting of stockholders on June 11, 2024, Ms. Quirk will become President and CEO and will assume full responsibility for executive management of our business, reporting to our Board. Ms.
Quirk has served as Chief Executive Officer (CEO) since June 2024, as President since February 2021 and as a director of the Board of Directors (Board) since February 2023. Ms.
Robertson 48 Senior Vice President and Chief Financial Officer Stephen T. Higgins 66 Senior Vice President and Chief Administrative Officer Douglas N. Currault II 59 Senior Vice President and General Counsel Richard C. Adkerson has served as Chairman of the Board since February 2021, Chief Executive Officer (CEO) since December 2003 and has been a director since October 2006.
Adkerson 78 Chairman of the Board of Directors Stephen T. Higgins 67 Executive Vice President and Chief Administrative Officer Douglas N. Currault II 60 Executive Vice President and General Counsel Kathleen L.
Removed
Effective at the annual meeting of stockholders on June 11, 2024, Mr. Adkerson will transition his duties as CEO to Ms. Quirk. Mr. Adkerson will remain Chairman of the Board, supporting the leadership transition and our business on strategic matters of significance to the company. Mr.
Added
Adkerson has served as Chairman of the Board since February 2021 and has been a director since October 2006. Mr.
Added
Currault II has served as Executive Vice President since July 2024 and General Counsel since October 2019. Mr.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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The share repurchase program may be modified, increased, suspended or terminated at any time at our Board’s discretion. See Item 1A. “Risk Factors” and Note 10 for further discussion.
The share repurchase program may be modified, increased, suspended or terminated at any time at our Board’s discretion. See Item 1A. “Risk Factors” and Note 8 for further discussion.
Common Stock Dividends In February 2021, our Board of Directors (the Board) reinstated a cash dividend on our common stock (base dividend) at an annual rate of $0.30 per share, and on November 1, 2021, the Board approved a variable cash dividend on our common stock for 2022 at an annual rate of $0.30 per share.
Common Stock Dividends In February 2021, our Board of Directors (Board) reinstated a cash dividend on our common stock (base dividend) at an annual rate of $0.30 per share, and in November 2021, the Board approved a variable cash dividend on our common stock at an annual rate of $0.30 per share.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk” and Note 10 for further discussion.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk” and Note 8 for further discussion.
Based on current market conditions, the base and variable dividends on our common stock are anticipated to total $0.60 per share for 2024 (including the dividends paid on February 1, 2024), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend.
Based on current market conditions, the base and variable dividends on our common stock are anticipated to total $0.60 per share for 2025 (including the dividends paid on February 3, 2025), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend.
In December 2023, 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 variable, performance-based cash dividend), which was paid on February 1, 2024, to shareholders of record as of January 12, 2024.
In December 2024, 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 variable, performance-based cash dividend), which was paid on February 3, 2025, to shareholders of record as of January 15, 2025.
Common Stock Our common stock is traded on the New York Stock Exchange under the symbol “FCX.” At January 31, 2024, there were 9,671 holders of record of our common stock.
Common Stock Our common stock is traded on the New York Stock Exchange under the symbol “FCX.” At January 31, 2025, there were 9,109 holders of record of our common stock.
Issuer Purchases of Equity Securities The following table sets forth information with respect to shares of FCX common stock purchased by us during the three months ended December 31, 2023, and the approximate dollar value of shares that may yet be purchased pursuant to our share repurchase program: Period (a) Total Number of Shares Purchased (b) Average Price Paid Per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs a (d) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs a October 1-31, 2023 — $ — — $ 3,164,642,228 November 1-30, 2023 — $ — — $ 3,164,642,228 December 1-31, 2023 — $ — — $ 3,164,642,228 Total — $ — — a.
Issuer Purchases of Equity Securities The following table sets forth information with respect to shares of FCX common stock purchased by us during the quarter ended December 31, 2024, and the approximate dollar value of shares that may yet be purchased pursuant to our share repurchase program: Period (a) Total Number of Shares Purchased (b) Average Price Paid Per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs a (d) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs a October 1-31, 2024 — $ — — $ 3,105,744,136 November 1-30, 2024 — $ — — $ 3,105,744,136 December 1-31, 2024 — $ — — $ 3,105,744,136 Total — $ — — a.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Unregistered Sales of Equity Securities There were no unregistered sales of equity securities during the three months ended December 31, 2023.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Unregistered Sales of Equity Securities There were no unregistered sales of equity securities during the quarter ended December 31, 2024.
The combined annual rate of the base dividend and the variable dividend totaled $0.60 per share for 2023 and 2022.
The combined annual rate of the base dividend and the variable dividend totaled $0.60 per share in 2024 and 2023.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

244 edited+78 added−91 removed57 unchanged
In determining the amount of the valuation allowance, we consider future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, carryback opportunities, as well as prudent and feasible tax planning strategies in each jurisdiction.
In determining the amount of the valuation allowance, we consider carryback opportunities, future reversals of existing taxable temporary differences, prudent and feasible tax planning strategies in each jurisdiction, as well as future taxable income exclusive of reversing temporary differences.
Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and would require approximately three to four years to complete.
Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and approximately three to four years to complete.
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.
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.
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.
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.
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.
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.
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, (iv) it is the method used to compare mining operations in certain industry publications and (v) it is the method used by our management and the Board to monitor operations and to compare mining operations in certain industry publications.
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 operations and to compare mining operations in certain industry publications.
Long-term mine development activities are ongoing for PT-FI’s Kucing Liar deposit in the Grasberg minerals district, which is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041. An extension of PT-FI’s operating rights beyond 2041 would extend the life of the project.
Long-term mine development activities are ongoing for PT-FI’s Kucing Liar deposit in the Grasberg minerals district. Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PT-FI’s operating rights beyond 2041 would extend the life of the project.
Indonesia Mining PT-FI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. We have a 48.76% ownership interest in PT-FI and manage its mining operations. PT-FI’s results are consolidated in our financial statements.
Indonesia PT-FI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. We have a 48.76% ownership interest in PT-FI and manage its operations. PT-FI's results are consolidated in our financial statements.
Substantially all of our copper concentrate and some cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted LME monthly average copper settlement prices.
All of our copper concentrate and some cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted LME monthly average copper settlement prices.
Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.
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 North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.
Unit net cash costs per pound of copper are reflected under the by-product and co-product methods as the South America mining operations also had sales of molybdenum and silver.
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.
We have uncertain tax positions related to income tax assessments in Peru and Indonesia, including penalties and interest, which have not been recorded at December 31, 2023. Final taxes paid may be dependent upon many factors, including negotiations with taxing authorities. In certain jurisdictions, we pay a portion of the disputed amount before formally appealing an assessment.
We have uncertain tax positions related to income tax assessments in Peru and Indonesia, including penalties and interest, which have not been recorded at December 31, 2024. Final taxes paid may be dependent upon many factors, including negotiations with taxing authorities. In certain jurisdictions, we pay a portion of the disputed amount before formally appealing an assessment.
Represents the combined total for our other mining operations as presented in Note 16. 110 Table of Contents Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2023 (In millions) Co-Product Method By-Product Method Copper Gold Silver & Other a Total Revenues, excluding adjustments $ 5,801 $ 5,801 $ 3,346 $ 157 $ 9,304 Site production and delivery, before net noncash and other costs shown below 2,467 1,538 887 42 2,467 Gold, silver and other by-product credits (3,520) — — — — Treatment charges 537 335 193 9 537 Export duties 324 202 117 5 324 Royalty on metals 338 212 121 5 338 Net cash costs 146 2,287 1,318 61 3,666 DD&A 1,028 641 370 17 1,028 Noncash and other costs, net 22 b 14 8 — 22 Total costs 1,196 2,942 1,696 78 4,716 Other revenue adjustments, primarily for pricing on prior period open sales 114 114 18 (1) 131 PT Smelting intercompany profit 112 70 40 2 112 Gross profit $ 4,831 $ 3,043 $ 1,708 $ 80 $ 4,831 Copper sales (millions of recoverable pounds) 1,525 1,525 Gold sales (thousands of recoverable ounces) 1,697 Gross profit per pound of copper/per ounce of gold: Revenues, excluding adjustments $ 3.81 $ 3.81 $ 1,972 Site production and delivery, before net noncash and other costs shown below 1.62 1.01 522 Gold, silver and other by-product credits (2.30) — — Treatment charges 0.35 0.22 114 Export duties 0.21 0.13 69 Royalty on metals 0.22 0.14 71 Unit net cash costs 0.10 1.50 776 DD&A 0.68 0.42 218 Noncash and other costs, net 0.01 b 0.01 5 Total unit costs 0.79 1.93 999 Other revenue adjustments, primarily for pricing on prior period open sales 0.08 0.07 9 PT Smelting intercompany profit 0.07 0.05 24 Gross profit per pound/ounce $ 3.17 $ 2.00 $ 1,006 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 9,304 $ 2,467 $ 1,028 Treatment charges (336) 201 — Export duties (324) — — Royalty on metals (338) — — Noncash and other costs, net — 22 — Other revenue adjustments, primarily for pricing on prior period open sales 131 — — PT Smelting intercompany profit — (112) — Eliminations and other — (26) — Indonesia mining 8,437 2,552 1,028 Other mining c 20,670 17,075 976 Corporate, other & eliminations (6,252) (6,000) 64 As reported in our consolidated financial statements $ 22,855 $ 13,627 $ 2,068 a.
Represents the combined total for our other mining operations as presented in Note 14. 112 Table of Contents Indonesia Operations Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2023 (In millions) Co-Product Method By-Product Method Copper Gold Silver & Other a Total Revenues, excluding adjustments $ 5,801 $ 5,801 $ 3,346 $ 157 $ 9,304 Site production and delivery, before net noncash and other costs shown below 2,467 1,538 887 42 2,467 Gold, silver and other by-product credits (3,520) — — — — Treatment charges 537 335 193 9 537 Export duties 324 202 117 5 324 Royalty on metals 338 212 121 5 338 Net cash costs 146 2,287 1,318 61 3,666 DD&A 1,028 641 370 17 1,028 Noncash and other costs, net 22 b 14 8 — 22 Total costs 1,196 2,942 1,696 78 4,716 Other revenue adjustments, primarily for pricing on prior period open sales 114 114 18 (1) 131 PT Smelting intercompany profit 112 70 40 2 112 Gross profit $ 4,831 $ 3,043 $ 1,708 $ 80 $ 4,831 Copper sales (millions of recoverable pounds) 1,525 1,525 Gold sales (thousands of recoverable ounces) 1,697 Gross profit per pound of copper/per ounce of gold: Revenues, excluding adjustments $ 3.81 $ 3.81 $ 1,972 Site production and delivery, before net noncash and other costs shown below 1.62 1.01 522 Gold, silver and other by-product credits (2.30) — — Treatment charges 0.35 0.22 114 Export duties 0.21 0.13 69 Royalty on metals 0.22 0.14 71 Unit net cash costs 0.10 1.50 776 DD&A 0.68 0.42 218 Noncash and other costs, net 0.01 b 0.01 5 Total unit costs 0.79 1.93 999 Other revenue adjustments, primarily for pricing on prior period open sales 0.08 0.07 9 PT Smelting intercompany profit 0.07 0.05 24 Gross profit per pound/ounce $ 3.17 $ 2.00 $ 1,006 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 9,304 $ 2,467 $ 1,028 Treatment charges (336) 201 c — Export duties (324) — — Royalty on metals (338) — — Noncash and other costs, net — 22 — Other revenue adjustments, primarily for pricing on prior period open sales 131 — — PT Smelting intercompany profit — (112) — Eliminations and other — (8) — Indonesia operations 8,437 2,570 1,028 Other mining d 20,670 17,075 976 Corporate, other & eliminations (6,252) (6,018) 64 As reported in our consolidated financial statements $ 22,855 $ 13,627 $ 2,068 a.
Our current and historical operating activities are subject to various national, state and local environmental laws and regulations that govern emissions of air pollutants; discharges of water pollutants; generation, handling, storage and disposal of hazardous substances, hazardous wastes and other toxic materials; and remediation, restoration and reclamation of environmental contamination, and compliance with these laws and regulations requires significant expenditures.
Our current and historical operating activities are subject to various national, state and local environmental laws and regulations that govern emissions of air pollutants; discharges of water pollutants; generation, handling, storage, treatment, transportation and disposal of hazardous substances, hazardous wastes and other toxic materials; and remediation, restoration and reclamation of environmental contamination, and compliance with these laws and regulations requires significant expenditures.
Represents the combined total for our other mining operations as presented in Note 16. 108 Table of Contents South America Mining Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2023 (In millions) By-Product Co-Product Method Method Copper Other a Total Revenues, excluding adjustments $ 4,583 $ 4,583 $ 526 $ 5,109 Site production and delivery, before net noncash and other costs shown below 3,083 2,810 339 3,149 By-product credits (463) — — — Treatment charges 234 234 — 234 Royalty on metals 8 7 1 8 Net cash costs 2,862 3,051 340 3,391 DD&A 459 412 47 459 Noncash and other costs, net 92 b 87 5 92 Total costs 3,413 3,550 392 3,942 Other revenue adjustments, primarily for pricing on prior period open sales 71 71 3 74 Gross profit $ 1,241 $ 1,104 $ 137 $ 1,241 Copper sales (millions of recoverable pounds) 1,200 1,200 Gross profit per pound of copper: Revenues, excluding adjustments $ 3.82 $ 3.82 Site production and delivery, before net noncash and other costs shown below 2.57 2.34 By-product credits (0.39) — Treatment charges 0.19 0.19 Royalty on metals 0.01 0.01 Unit net cash costs 2.38 2.54 DD&A 0.38 0.35 Noncash and other costs, net 0.08 b 0.07 Total unit costs 2.84 2.96 Other revenue adjustments, primarily for pricing on prior period open sales 0.06 0.06 Gross profit per pound $ 1.04 $ 0.92 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 5,109 $ 3,149 $ 459 Treatment charges (234) — — Royalty on metals (8) — — Noncash and other costs, net — 92 — Other revenue adjustments, primarily for pricing on prior period open sales 74 — — Eliminations and other — (2) — South America mining 4,941 3,239 459 Other mining c 24,166 16,388 1,545 Corporate, other & eliminations (6,252) (6,000) 64 As reported in our consolidated financial statements $ 22,855 $ 13,627 $ 2,068 a.
Represents the combined total for our other mining operations as presented in Note 14. 110 Table of Contents South America Operations Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2023 (In millions) By-Product Co-Product Method Method Copper Other a Total Revenues, excluding adjustments $ 4,583 $ 4,583 $ 526 $ 5,109 Site production and delivery, before net noncash and other costs shown below 3,083 2,810 339 3,149 By-product credits (463) — — — Treatment charges 234 234 — 234 Royalty on metals 8 7 1 8 Net cash costs 2,862 3,051 340 3,391 DD&A 459 412 47 459 Noncash and other costs, net 92 b 87 5 92 Total costs 3,413 3,550 392 3,942 Other revenue adjustments, primarily for pricing on prior period open sales 71 71 3 74 Gross profit $ 1,241 $ 1,104 $ 137 $ 1,241 Copper sales (millions of recoverable pounds) 1,200 1,200 Gross profit per pound of copper: Revenues, excluding adjustments $ 3.82 $ 3.82 Site production and delivery, before net noncash and other costs shown below 2.57 2.34 By-product credits (0.39) — Treatment charges 0.19 0.19 Royalty on metals 0.01 0.01 Unit net cash costs 2.38 2.54 DD&A 0.38 0.35 Noncash and other costs, net 0.08 b 0.07 Total unit costs 2.84 2.96 Other revenue adjustments, primarily for pricing on prior period open sales 0.06 0.06 Gross profit per pound $ 1.04 $ 0.92 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 5,109 $ 3,149 $ 459 Treatment charges (234) — — Royalty on metals (8) — — Noncash and other costs, net — 92 — Other revenue adjustments, primarily for pricing on prior period open sales 74 — — Eliminations and other — (2) — South America operations 4,941 3,239 459 Other mining c 24,166 16,406 1,545 Corporate, other & eliminations (6,252) (6,018) 64 As reported in our consolidated financial statements $ 22,855 $ 13,627 $ 2,068 a.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion of our energy requirements and related costs. We remain focused on managing costs efficiently and continue to advance several important value-enhancing initiatives.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for further discussion of our energy requirements and related costs. We remain focused on managing costs efficiently and continue to advance several important value-enhancing initiatives.
Also includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. 113 Table of Contents CAUTIONARY STATEMENT Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance, operations and projects.
Also includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. 114 Table of Contents CAUTIONARY STATEMENT Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance, operations and projects.
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, as well as from our North America and South America copper mines, is processed at our conversion facilities Operating Activities .
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, as well as from our North America copper mines and South America operations, is processed at our conversion facilities. Operating and Development Activities .
Refer to “Operations – Unit Net Cash Costs” 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 financial statements.
Refer to “Operations – Unit Net Cash Costs (Credits)” 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 by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.
Throughout MD&A, all references to income or losses per share are on a diluted basis. This section of our Form 10-K discusses the results of operations for the years 2023 and 2022 and comparisons between these years.
Throughout MD&A, all references to income or losses per share are on a diluted basis. This section of our Form 10-K discusses the results of operations for the years 2024 and 2023 and comparisons between these years.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further information regarding, and risks associated with, impairment of long-lived mining assets.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for further information regarding, and risks associated with, impairment of long-lived mining assets.
Asset Retirement Obligations Refer to Notes 1 and 12, and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion of reclamation and closure costs, including a summary of changes in our asset retirement obligations (AROs) for the three years ended December 31, 2023.
Asset Retirement Obligations Refer to Notes 1 and 10, and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for further discussion of reclamation and closure costs, including a summary of changes in our asset retirement obligations (AROs) for the three years ended December 31, 2024.
Accordingly, in times of rising copper 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 prices, the opposite occurs.
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.
Our annual report on Form 10-K for the year ended December 31, 2023, also includes forward-looking statements regarding mineral resources not included in proven and probable mineral reserves.
Our annual report on Form 10-K for the year ended December 31, 2024, also includes forward-looking statements regarding mineral resources not included in proven and probable mineral reserves.
Discussion of the results of operations for the year 2021 and comparisons between the years 2022 and 2021 are not included in this Form 10-K and can be found in Items 7. and 7A.
Discussion of the results of operations for the year 2022 and comparisons between the years 2023 and 2022 are not included in this Form 10-K and can be found in Items 7. and 7A.
The areas requiring the use of management’s estimates are also discussed in Note 1 under the subheading “Use of Estimates.” Management has reviewed the following discussion of its development and selection of critical accounting estimates with the Audit Committee of our Board of Directors (Board). Taxes Refer to Note 11, and Item 1A.
The areas requiring the use of management’s estimates are also discussed in Note 1 under the subheading “Use of Estimates.” Management has reviewed the following discussion of its development and selection of critical accounting estimates with the Audit Committee of our Board of Directors (Board). Income Taxes Refer to Note 9, and Item 1A.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, and “Cautionary Statement” below for further discussion.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, and “Cautionary Statement” below for further discussion.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion of our consolidated income taxes.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for further discussion of our consolidated income taxes.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 92 Table of Contents Gross Profit per Pound of Copper and Molybdenum The following table summarizes unit net cash costs and gross profit per pound at our North America copper mines for the two years ended December 31, 2023.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 94 Table of Contents Gross Profit per Pound of Copper and Molybdenum The following table summarizes unit net cash costs and gross profit per pound at our North America copper mines for the two years ended December 31, 2024.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion of factors that could cause results to differ materially from projections. Molybdenum Mines We operate two wholly owned molybdenum mines in Colorado – the Climax open-pit mine and the Henderson underground mine.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for further discussion of factors that could cause results to differ materially from projections. Molybdenum Mines We operate two wholly owned primary molybdenum operations in Colorado – the Climax open-pit mine and the Henderson underground mine.
Item 6. Reserved. 76 Table of Contents Items 7. and 7A. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk.
Item 6. Reserved. 78 Table of Contents Items 7. and 7A. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk.
Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. Our take-or-pay contractual obligations for electricity totaled approximately $0.3 billion at December 31, 2023. We do not have take-or-pay contractual obligations for other energy commodities.
Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. Our take-or-pay contractual obligations for electricity totaled approximately $0.2 billion at December 31, 2024. We do not have take-or-pay contractual obligations for other energy commodities.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 94 Table of Contents 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 mining operations for the two years ended December 31, 2023.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 96 Table of Contents 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 two years ended December 31, 2024.
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 expressed on a basis relating to the primary metal product for our respective 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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion. Because we cannot control the price 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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, 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.
Mineral Reserves Refer to Note 17, and Items 1. and 2. “Business and Properties” and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further information regarding, and risks associated with, our estimated recoverable proven and probable mineral reserves.
Mineral Reserves Refer to Note 15, and Items 1. and 2. “Business and Properties” and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for further information regarding, and risks associated with, our estimated recoverable proven and probable mineral reserves.
These cost estimates may differ from financial assurance cost estimates for reclamation activities because of a variety of factors, including obtaining updated cost estimates for reclamation activities, the timing of reclamation activities, changes in scope and the exclusion of certain costs not considered reclamation and closure costs.
These cost estimates may differ from financial assurance cost estimates for reclamation activities because of a variety of factors, including obtaining updated cost estimates for reclamation activities, the timing of reclamation activities, changes in scope and the exclusion of certain costs not 85 Table of Contents considered reclamation and closure costs.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024.
Includes silver sales of 4.1 million ounces ($23.57 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 $44 million ($0.04 per pound of copper) for feasibility studies. c.
Includes silver sales of 4.1 million ounces ($23.57 per ounce average realized price) and sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing. b. Includes charges totaling $44 million ($0.04 per pound of copper) for feasibility and optimization studies. c.
At December 31, 2023, AROs recorded in our consolidated balance sheet totaled $3.0 billion. Generally, ARO activities are specified by regulations or in permits issued by the relevant governing authority, and management’s judgment is required to estimate the extent and timing of expenditures.
At December 31, 2024, AROs recorded in our consolidated balance sheet totaled $3.7 billion. Generally, ARO activities are specified by regulations or in permits issued by the relevant governing authority, and management’s judgment is required to estimate the extent and timing of expenditures.
During the two-year period ended December 31, 2023, no material impairments of our long-lived mining assets were recorded.
During the two-year period ended December 31, 2024, no material impairments of our long-lived mining assets were recorded.
At December 31, 2023, estimated consolidated recoverable copper was 1.5 billion pounds in leach stockpiles (with a carrying value of $2.3 billion) and 0.3 billion pounds in mill stockpiles (with a carrying value of $0.5 billion). Impairment of Long-Lived Mining Assets Refer to Note 1, and Item 1A.
At December 31, 2024, estimated consolidated recoverable copper was 1.4 billion pounds in leach stockpiles (with a carrying value of $2.2 billion) and 0.3 billion pounds in mill stockpiles (with a carrying value of $0.4 billion). Impairment of Long-Lived Mining Assets Refer to Note 1, and Item 1A.
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. b. Includes charges totaling $0.08 per pound of copper in 2023 and $0.06 per pound of copper in 2022 for feasibility and optimization studies.
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. b. Includes charges totaling $0.05 per pound of copper in 2024 and $0.08 per pound of copper in 2023 for feasibility and optimization studies.
We recognized foreign currency translation gains on balances denominated in foreign currencies totaling $20 million in 2023 and $9 million in 2022. Generally, our operating results are positively affected when the U.S. dollar strengthens in relation to those foreign currencies and are adversely affected when the U.S. dollar weakens in relation to those foreign currencies.
We recognized foreign currency translation gains on balances denominated in foreign currencies totaling $17 million in 2024 and $20 million in 2023. Generally, our operating results are positively affected when the U.S. dollar strengthens in relation to those foreign currencies and are adversely affected when the U.S. dollar weakens in relation to those foreign currencies.
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $107 million ($0.08 per pound of copper) for feasibility and optimization studies. d.
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $107 million ($0.08 per pound of copper) for feasibility and optimization studies and $11 million ($0.01 per pound of copper) for metals inventory adjustments. d.
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. Operating and Development Activities .
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. Operating and Development Activities . Refer to Item 1A.
The impact of price changes on consolidated unit net cash costs for the year 2024 would approximate $0.04 per pound of copper for each $100 per ounce change in the average price of gold and $0.02 per pound of copper for each $2 per pound change in the average price of molybdenum.
The impact of price changes on consolidated unit net cash costs for the year 2025 would approximate $0.04 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.
Our revenues primarily include the sale of copper concentrate, copper cathode, copper rod, gold in concentrate and molybdenum.
Our revenues primarily include the sale of copper concentrate, copper cathode, copper rod, gold in concentrate and anode slimes, and molybdenum.
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). Refer to Items 1. and 2.
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).
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. 106 Table of Contents North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2023 (In millions) By-Product Co-Product Method Method Copper Molybdenum a Other b Total Revenues, excluding adjustments $ 5,368 $ 5,368 $ 710 $ 171 $ 6,249 Site production and delivery, before net noncash and other costs shown below 4,093 3,621 535 149 4,305 By-product credits (669) — — — — Treatment charges 169 161 — 8 169 Net cash costs 3,593 3,782 535 157 4,474 DD&A 418 371 39 8 418 Noncash and other costs, net 242 c 215 24 3 242 Total costs 4,253 4,368 598 168 5,134 Other revenue adjustments, primarily for pricing on prior period open sales 13 13 — — 13 Gross profit $ 1,128 $ 1,013 $ 112 $ 3 $ 1,128 Copper sales (millions of recoverable pounds) 1,367 1,367 Molybdenum sales (millions of recoverable pounds) a 30 Gross profit per pound of copper/molybdenum: Revenues, excluding adjustments $ 3.93 $ 3.93 $ 23.38 Site production and delivery, before net noncash and other costs shown below 3.00 2.65 17.63 By-product credits (0.49) — — Treatment charges 0.12 0.12 — Unit net cash costs 2.63 2.77 17.63 DD&A 0.30 0.27 1.30 Noncash and other costs, net 0.18 c 0.16 0.77 Total unit costs 3.11 3.20 19.70 Other revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 — Gross profit per pound $ 0.83 $ 0.74 $ 3.68 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 6,249 $ 4,305 $ 418 Treatment charges (9) 160 — Noncash and other costs, net — 242 — Other revenue adjustments, primarily for pricing on prior period open sales 13 — — Eliminations and other 63 71 — North America copper mines 6,316 4,778 418 Other mining d 22,791 14,849 1,586 Corporate, other & eliminations (6,252) (6,000) 64 As reported in our consolidated financial statements $ 22,855 $ 13,627 $ 2,068 a.
Represents the combined total for our other mining operations as presented in Note 14. 108 Table of Contents North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2023 (In millions) By-Product Co-Product Method Method Copper Molybdenum a Other b Total Revenues, excluding adjustments $ 5,368 $ 5,368 $ 710 $ 171 $ 6,249 Site production and delivery, before net noncash and other costs shown below 4,093 3,621 535 149 4,305 By-product credits (669) — — — — Treatment charges 169 161 — 8 169 Net cash costs 3,593 3,782 535 157 4,474 DD&A 418 371 39 8 418 Noncash and other costs, net 242 c 215 24 3 242 Total costs 4,253 4,368 598 168 5,134 Other revenue adjustments, primarily for pricing on prior period open sales 13 13 — — 13 Gross profit $ 1,128 $ 1,013 $ 112 $ 3 $ 1,128 Copper sales (millions of recoverable pounds) 1,367 1,367 Molybdenum sales (millions of recoverable pounds) a 30 Gross profit per pound of copper/molybdenum: Revenues, excluding adjustments $ 3.93 $ 3.93 $ 23.38 Site production and delivery, before net noncash and other costs shown below 3.00 2.65 17.63 By-product credits (0.49) — — Treatment charges 0.12 0.12 — Unit net cash costs 2.63 2.77 17.63 DD&A 0.30 0.27 1.30 Noncash and other costs, net 0.18 c 0.16 0.77 Total unit costs 3.11 3.20 19.70 Other revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 — Gross profit per pound $ 0.83 $ 0.74 $ 3.68 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 6,249 $ 4,305 $ 418 Treatment charges (9) 160 — Noncash and other costs, net — 242 — Other revenue adjustments, primarily for pricing on prior period open sales 13 — — Eliminations and other 63 71 — North America copper mines 6,316 4,778 418 Other mining d 22,791 14,867 1,586 Corporate, other & eliminations (6,252) (6,018) 64 As reported in our consolidated financial statements $ 22,855 $ 13,627 $ 2,068 a.
Refer to Note 16 for a summary of revenues and operating income by operating division. b.
Refer to Note 14 for a summary of revenues and operating income by operating division. b.
Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PT-FI’s export proceeds to net debt. 115 Table of Contents
Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PT-FI’s export proceeds to net debt.
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.
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.
Refer to “Disclosures About Market Risks – Commodity Price Risk” for further discussion of our provisionally priced copper sales, and to Note 14 for a summary of total adjustments to prior period and current period provisionally priced copper sales.
Refer to “Disclosures About Market Risks – Commodity Price Risk” for further discussion of our provisionally priced copper sales, and to Note 12 for a summary of total adjustments to prior period and current period provisionally priced copper sales. Atlantic Copper Revenues .
If we determine that we will not realize all or a portion of our deferred income 82 Table of Contents tax assets, we will increase our valuation allowance.
If we determine that we will not realize all or a portion of our deferred income tax assets, we will increase our valuation allowance.
Estimated consolidated operating cash flows in 2024 also reflect a projected income tax provision of $2.3 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate).
Estimated consolidated operating cash flows in 2025 also reflect a projected income tax provision of $2.6 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate).
Represents the combined total for our other mining operations as presented in Note 16.
Represents the combined total for our other mining operations as presented in Note 14.
At December 31, 2023, environmental obligations recorded in our consolidated balance sheet totaled $1.9 billion, which reflect obligations for environmental liabilities attributed to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 or analogous state programs and for estimated future costs associated with environmental matters.
At December 31, 2024, environmental obligations recorded in our consolidated balance sheet totaled $2.0 billion, which reflect obligations for environmental liabilities attributed to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 or analogous state programs and for estimated future costs associated with environmental matters.
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 interest would be allocated to shareholder 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 net project debt for the Indonesia smelter projects).
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 interest would be allocated to shareholder 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 PT-FI’s new downstream processing facilities).
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; PT-FI’s ability to continue to export and sell copper concentrates and anode slimes; changes in export duties, including results of proceedings to dispute export duties; completion of additional domestic smelting and refining capacity in Indonesia; production rates; timing of shipments; price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; changes in our cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions; 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; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PT-FI’s IUPK to extend mining rights from 2031 through 2041; discussions relating to the extension of PT-FI’s IUPK beyond 2041; 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; litigation results; 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 in Item 1A.
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; PT-FI’s ability to export and sell or inventory copper concentrates through remediation and full ramp-up of its new smelter in Indonesia; changes in export duties; completion of remediation activities and achieving full ramp-up of the new smelter in Indonesia; full production at the PMR; production rates; timing of shipments; price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; changes in our cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions; 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; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PT-FI’s IUPK to extend mining rights from 2031 through 2041; process relating to the extension of PT-FI’s IUPK beyond 2041; 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 in Item 1A.
Net favorable adjustments to prior years’ provisionally priced copper sales ( i.e., provisionally priced copper sales at December 31, 2022 and 2021) recorded in consolidated revenues totaled $183 million in 2023 and $60 million in 2022.
Net favorable adjustments to prior years’ provisionally priced copper sales ( i.e., provisionally priced copper sales at December 31, 2023 and 2022) recorded in consolidated revenues totaled $28 million in 2024 and $183 million in 2023.
PT-FI’s average unit net cash costs for the year 2024 would change by approximately $0.10 per pound of copper for each $100 per ounce change in the average price of gold.
PT-FI’s average unit net cash costs for the year 2025 would change by approximately $0.09 per pound of copper for each $100 per ounce change in the average price of gold.
We record revenues and invoice customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on provisionally priced concentrate and cathode 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.
We record revenues and invoice customers at the time of shipment based on then-current LME or London PM prices, which results in an embedded derivative on provisionally priced sales that are adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement.
Consolidated revenues include net unfavorable adjustments to current year provisionally priced copper sales ( i.e., provisionally priced sales during the years 2023 and 2022) totaling $86 million for 2023 and $539 million for 2022. See below for discussion of adjustments related to prior year provisionally priced copper sales. Prior Year Provisionally Priced Copper Sales .
Consolidated revenues include net favorable (unfavorable) adjustments to current year provisionally priced copper sales ( i.e., provisionally priced sales during the years 2024 and 2023) totaling $89 million for 2024 and $(86) million for 2023. See below for discussion of adjustments related to prior year provisionally priced copper sales. Prior Year Provisionally Priced Copper Sales .
Our estimated recoverable proven and probable mineral reserves at December 31, 2023, were determined using metal price assumptions of $3.00 per pound of copper, $1,500 per ounce of gold and $12.00 per pound of molybdenum.
Our estimated recoverable proven and probable mineral reserves at December 31, 2024, were determined using metal price assumptions of $3.25 per pound of copper, $1,600 per ounce of gold and $12.00 per pound of molybdenum.
Does not foot because of rounding. b. In accordance with a 2023 regulation issued by the Indonesia government, 30% of PT-FI’s export proceeds are being temporarily deposited into Indonesia banks for a period of 90 days before withdrawal and are presented as current restricted cash and cash equivalents in our consolidated balance sheet.
In accordance with a regulation issued by the Indonesia government, 30% of PT-FI’s export proceeds are being temporarily deposited into Indonesia banks for a period of 90 days before withdrawal and are presented as current restricted cash and cash equivalents in our consolidated balance sheet.
Includes $0.04 per pound of copper in 2023 and $0.02 per pound of copper in 2022 for feasibility and optimization studies. Our South America mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors.
Includes $0.05 per pound of copper in 2024 and $0.04 per pound of copper in 2023 for feasibility and optimization studies. Our South America operations have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors.
Estimates of mineral reserves and mineral resources are subject to considerable uncertainty. Such estimates are, to a large extent, based on metal prices for the commodities we produce and interpretations of geologic data, which may not necessarily be indicative of future results or quantities ultimately recovered.
Such estimates are, to a large extent, based on metal prices for the commodities we produce and interpretations of geologic data, which may not necessarily be indicative of future results or quantities ultimately recovered.
We have not 101 Table of Contents elected to permanently reinvest earnings from our foreign subsidiaries, and we have 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.
We have not elected to permanently reinvest earnings from our foreign subsidiaries, and we have 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. See Item 1A.
For reconciliations of the per pound unit net cash costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.” 86 Table of Contents Revenues Consolidated revenues totaled $22.9 billion in 2023 and $22.8 billion in 2022.
For reconciliations of the per pound unit net cash costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.” 88 Table of Contents Revenues Consolidated revenues totaled $25.5 billion in 2024 and $22.9 billion in 2023.
Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $2.89 per pound of copper for the year 2024, based on achievement of current sales volume and cost estimates and assuming an average price of $19.00 per pound of molybdenum.
Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $3.00 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates and assuming an average price of $20.00 per pound of molybdenum.
In December 2023, 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 was paid on February 1, 2024, to shareholders of record as of January 12, 2024.
On December 18, 2024, 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 was paid on February 3, 2025, to shareholders of record as of January 15, 2025.
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $86 million ($0.06 per pound of copper) for feasibility and optimization studies. d.
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $62 million ($0.05 per pound of copper) for feasibility and optimization studies and $60 million ($0.05 per pound of copper) for metals inventory adjustments. d.
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. 2023 2022 By- Co-Product Method By- Co-Product Method Product Method Copper Molyb- denum a Product Method Copper Molyb- denum a Revenues, excluding adjustments $ 3.93 $ 3.93 $ 23.38 $ 4.08 $ 4.08 $ 17.87 Site production and delivery, before net noncash and other costs shown below 3.00 2.65 17.63 2.58 2.36 13.35 By-product credits (0.49) — — (0.33) — — Treatment charges 0.12 0.12 — 0.10 0.10 — Unit net cash costs 2.63 2.77 17.63 2.35 2.46 13.35 DD&A 0.30 0.27 1.30 0.28 0.26 0.90 Noncash and other costs, net 0.18 b 0.16 0.77 0.13 b 0.11 0.52 Total unit costs 3.11 3.20 19.70 2.76 2.83 14.77 Revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 — (0.01) (0.01) — Gross profit per pound $ 0.83 $ 0.74 $ 3.68 $ 1.31 $ 1.24 $ 3.10 Copper sales (millions of recoverable pounds) 1,367 1,367 1,472 1,472 Molybdenum sales (millions of recoverable pounds) a 30 29 a.
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. 2024 2023 By- Co-Product Method By- Co-Product Method Product Method Copper Molyb- denum a Product Method Copper Molyb- denum a Revenues, excluding adjustments $ 4.29 $ 4.29 $ 20.13 $ 3.93 $ 3.93 $ 23.38 Site production and delivery, before net noncash and other costs shown below 3.46 3.10 16.20 3.00 2.65 17.63 By-product credits (0.48) — — (0.49) — — Treatment charges 0.13 0.12 — 0.12 0.12 — Unit net cash costs 3.11 3.22 16.20 2.63 2.77 17.63 DD&A 0.34 0.31 1.19 0.30 0.27 1.30 Noncash and other costs, net 0.19 b 0.18 0.36 0.18 b 0.16 0.77 Total unit costs 3.64 3.71 17.75 3.11 3.20 19.70 Revenue adjustments, primarily for pricing on prior period open sales — — — 0.01 0.01 — Gross profit per pound $ 0.65 $ 0.58 $ 2.38 $ 0.83 $ 0.74 $ 3.68 Copper sales (millions of recoverable pounds) 1,263 1,263 1,367 1,367 Molybdenum sales (millions of recoverable pounds) a 30 30 a.
Energy represented 19% of our copper mine site operating costs in 2023, including purchases of approximately 250 million gallons of diesel fuel; approximately 8,650 gigawatt hours of electricity at our North America and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 700 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 2 million MMBtu (million British thermal units) of natural gas at certain of our North America mines.
Energy represented 16% of our copper mine site operating costs in 2024, including purchases of approximately 270 million gallons of diesel fuel; approximately 8,550 gigawatt hours of electricity at our North America and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 750 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 2 million MMBtu (million British thermal units) of natural gas at certain of our North America mines.
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. In 2023, our average realized prices, compared with 2022, were 1% lower for copper, 10% higher for gold and 32% higher for molybdenum.
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. In 2024, our average realized prices, compared with 2023, were 9% higher for copper, 23% higher for gold and 12% lower for molybdenum.
Accounting for AROs 83 Table of Contents represents a critical accounting estimate because (i) we will not incur most of these costs for a number of years, requiring us to make estimates over a long period, (ii) reclamation and closure laws and regulations could change in the future and/or circumstances affecting our operations could change, either of which could result in significant changes to our current plans, (iii) our commitment to implement the Global Industry Standard on Tailings Management could result in changes to our plans and the scope of work required, (iv) the methods used or required to plug and abandon non-producing oil and gas wellbores, remove platforms, tanks, production equipment and flow lines, and restore the wellsite could change, (v) calculating the fair value of our AROs requires management to estimate projected cash flows, make long-term assumptions about inflation rates, determine our credit-adjusted, risk-free interest rates and determine market risk premiums that are appropriate for our operations and (vi) given the magnitude of our estimated reclamation, mine closure and wellsite abandonment and restoration costs, changes in any or all of these estimates could have a significant impact on our results of operations.
Accounting for AROs represents a critical accounting estimate because (i) we will not incur most of these costs for a number of years, requiring us to make estimates over a long period, (ii) reclamation and closure laws and regulations could change in the future, we may commit to taking additional closure actions and/or circumstances affecting our operations could change, (iii) the methods used or required to plug and abandon non-producing oil and gas wellbores, remove platforms, tanks, production equipment and flow lines, and restore the wellsite could change, (iv) calculating the fair value of our AROs requires management to estimate projected cash flows, make long-term assumptions about inflation rates, determine our credit-adjusted, risk-free interest rates and determine market risk premiums that are appropriate for our operations and (v) given the magnitude of our estimated reclamation, mine closure and wellsite abandonment and restoration costs, changes in any or all of these estimates could have a significant impact on our results of operations.
Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate $2.37 per pound of copper for the year 2024, based on achievement of current sales volume and cost estimates and assuming an average price of $19.00 per pound of molybdenum.
Average unit net cash costs (net of by-product credits) for South America operations are expected to approximate $2.50 per pound of copper for the year 2025, based on achievement of current sales volume and cost estimates and assuming an average price of $20.00 per pound of molybdenum.
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; global market conditions; ore grades and milling rates; production and sales volumes; unit net cash costs and operating costs; capital expenditures; operating plans; cash flows; liquidity; PT-FI’s construction and completion of additional domestic smelting and refining capacity in Indonesia in accordance with the terms of its IUPK; extension of PT-FI’s IUPK beyond 2041; export licenses; export duties; export volumes; our commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; execution of our energy and climate strategies and the underlying assumptions and estimated impacts on our business and stakeholders related thereto; achievement of 2030 climate targets and 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; 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 shareholders, including dividend payments (base or variable) and share repurchases.
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; global market conditions; ore grades and milling rates; production and sales volumes; unit net cash costs (credits) and operating costs; capital expenditures; operating plans (including mine sequencing); cash flows; liquidity; PT-FI’s commissioning, remediation and full ramp-up of its new smelter and full production at the PMR; potential extension of PT-FI’s IUPK beyond 2041; export licenses, export duties, and export volumes, including PT-FI’s ability to continue exports of copper concentrate until full ramp-up is achieved at its new smelter in Indonesia; timing of shipments of inventoried production; our commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; execution of our energy and climate strategies and the underlying assumptions and estimated impacts on our business and stakeholders related thereto; achievement of 2030 climate targets and 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; 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 shareholders, including dividend payments (base or variable) and share repurchases.
Noncash and other costs, which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as stock-based compensation costs, long-lived asset impairments, idle facility costs, feasibility and optimization study costs, restructuring and/or unusual charges.
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 startup costs, restructuring and/or unusual charges.

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