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What changed in Freeport-McMoRan's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Freeport-McMoRan's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+631 added−591 removedSource: 10-K (2026-02-13) vs 10-K (2025-02-14)

Top changes in Freeport-McMoRan's 2025 10-K

631 paragraphs added · 591 removed · 469 edited across 6 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

173 edited+47 added−39 removed160 unchanged
Biggest changeForward-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 Freeport Indonesia’s (PT-FI) commissioning, remediation, including expected costs, insurance recovery and timing, and full ramp-up of its new smelter and full production at the precious metals refinery (PMR); potential extension of PT-FI’s special mining business license (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.
Biggest changeForward-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; repair and remediation efforts, and phased restart and ramp-up of production and downstream processing following the September 2025 mud rush incident at PT Freeport Indonesia’s (PTFI) Grasberg Block Cave underground mine and the anticipated impact on 48 Table of Contents our business, production, sales, results of operations and operating plans, and recoveries under insurance policies; global market conditions, including trade policies; ore grades and milling rates; production and sales volumes; higher variability between PTFI production and sales; unit net cash costs (credits) and operating costs; capital expenditures; operating plans, including mine sequencing; cash flows; liquidity; potential extension of PTFI’s special mining business license (IUPK) beyond 2041; timing of shipments of inventoried production; our sustainability-related commitments and targets; our overarching commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; achievement of our 2030 climate targets and our 2050 net zero aspiration; improvements in operating procedures and technology innovations and applications; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; 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.
Operational risks Our operations are subject to significant operational risks that could adversely affect our business, including the ability to smelt and refine, and our underground mining operations have higher risks than a surface mine. We have assets in a variety of geographic locations, all of which exist in and around broader communities and environments.
Our operations are subject to significant operational risks that could adversely affect our business, including the ability to smelt and refine, and our underground mining operations have higher risks than a surface mine. We have assets in a variety of geographic locations, all of which exist in and around broader communities and environments.
Cybersecurity threats could subject us to manipulation or improper use of our systems and networks, production downtimes, loss of sales, communication interruption or other disruptions and delays to our operations or to the transportation of products or infrastructure utilized by our operations, unauthorized release of proprietary, commercially sensitive, confidential or otherwise protected information, a misappropriation or loss of funds, the corruption of data, significant health and safety consequences, physical destruction of assets, environmental damage, loss of intellectual property, fines, penalties, litigation, regulatory or governmental investigation, liability under or termination of our contracts with third parties, damage to our reputation or financial losses from remedial actions, any of which could have a material adverse effect on our cash flows, results of operations and financial condition, and which in addition could adversely impact the effectiveness of our internal control over financial reporting.
Cybersecurity threats could subject us to manipulation or improper use of our systems and networks, production downtimes, loss of sales, communication interruption or other disruptions and delays to our operations or to the transportation of products or infrastructure utilized by our operations, unauthorized release of proprietary, commercially sensitive, confidential or otherwise protected information, a misappropriation or loss of funds, the corruption of data, significant health and safety consequences, physical destruction of assets, environmental damage, loss or theft of intellectual property, fines, penalties, litigation, regulatory or governmental investigation, liability under or termination of our contracts with third parties, damage to our reputation or financial losses from remedial actions, any of which could have a material adverse effect on our cash flows, results of operations and financial condition, and which in addition could adversely impact the effectiveness of our internal control over financial reporting.
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.
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 and interpretations of tax laws and regulations.
Risks of conducting business in the countries where we operate or do business, can include: • Delays in obtaining or renewing, or the inability to obtain, maintain or renew, or the renegotiation, cancellation, revocation or forced modification (including the inherent risk of these actions being taken unilaterally by a foreign government or government owned entity) of contracts, leases, licenses, permits, easements, rights-of-way, stability agreements or other agreements and/or approvals; • Expropriation or nationalization of property, protectionism, or restrictions on repatriation of earnings or capital; • Changes in and differing interpretations of the host country’s laws, regulations and policies (which may be applied retroactively), including, but not limited to, those relating to labor, taxation, royalties, duties, tariffs, licenses, divestment, imports, exports (including restrictions on the export of copper concentrates and anode slimes, copper and/or gold), trade laws and regulations, immigration, currency, human rights and environmental matters (including land use and water use and, in some cases, consent), additional requirements on foreign operations and investment, and/or fines, fees and sanctions, criminal liability and other penalties imposed for failure to comply with the laws and regulations of the jurisdictions in which we operate, the risk of any of which may increase with rising “resource nationalism” in countries around the world; • Geopolitical tensions, conflicts and events, social and economic instability, bribery, extortion, corruption, civil unrest, blockades, acts of war, guerrilla activities, insurrection and terrorism, certain of which may result in, among other things, an inability to access our property or transport our commodities; • Risk of loss associated with illegal activity, including trespass, illegal mining, theft (including piracy), sabotage (including of critical infrastructure) and vandalism; • Changes in U.S. trade, tariff and other controls on imports and exports, tax, immigration or other policies that may impact relations with foreign countries or result in retaliatory policies; • Increases in training and other costs and challenges relating to requirements to employ nationals of a country in which a particular operation is located; • Foreign exchange controls and fluctuations in foreign currency exchange rates; and • Reduced protection for intellectual property rights.
Risks of conducting business in the countries where we operate or do business can include: • Delays in obtaining or renewing, or the inability to obtain, maintain or renew, or the renegotiation, cancellation, revocation or forced modification (including the inherent risk of these actions being taken unilaterally by a foreign government or government owned entity) of contracts, leases, licenses, permits, easements, rights-of-way, stability agreements or other agreements and/or approvals; • Expropriation or nationalization of property, protectionism, or restrictions on repatriation of earnings or capital; • Changes in and differing interpretations of the host country’s laws, regulations and policies (which may be applied retroactively), including, but not limited to, those relating to labor, taxation, royalties, duties, tariffs, licenses, divestment, imports, exports (including restrictions on the export of copper concentrates and anode slimes, copper and/or gold), trade laws and regulations, immigration, currency, human rights and environmental matters (including land use and water use and, in some cases, consent), additional requirements on foreign operations and investment, and/or fines, fees and sanctions, criminal liability and other penalties imposed for failure to comply with the laws and regulations of the jurisdictions in which we operate, the risk of any of which may increase with rising “resource nationalism” in countries around the world; • Geopolitical tensions, conflicts and events, social and economic instability, bribery, extortion, corruption, civil unrest, blockades, acts of war or other military conflicts, guerrilla activities, insurrection and terrorism, certain of which may result in, among other things, an inability to access our property or transport our commodities; • Risk of loss associated with illegal activity, including trespass, illegal mining, theft (including piracy), sabotage (including of critical infrastructure) and vandalism; • Changes in U.S. trade, tariff and other controls on imports and exports, tax, immigration or other policies that may impact relations with foreign countries or result in retaliatory policies; 55 Table of Contents • Increases in training and other costs and challenges relating to requirements to employ nationals of a country in which a particular operation is located; • Foreign exchange controls and fluctuations in foreign currency exchange rates; and • Reduced protection for intellectual property rights.
We recognize that as the climate changes, our operations, workforce, communities, biodiversity and ecosystems, supply chains and customers may be exposed to changes in the frequency, intensity and/or duration of intense storms, drought, flooding (including from sea level rise at our coastal operations), wildfire, and other extreme weather events and patterns (such as extreme heat).
We recognize that our operations, workforce, communities, biodiversity and ecosystems, supply chains and customers may be exposed to changes in the frequency, intensity and/or duration of intense storms, drought, flooding (including from sea level rise at our coastal operations), wildfire and other extreme weather events and patterns (such as extreme heat).
In December 2021, the Organisation for Economic Co-operation and Development (OECD) published a framework for Pillar Two of the Global Anti-Base Erosion Rules, which was designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a minimum level of income tax.
In December 2021, the Organisation for Economic Co-operation and Development (OECD) published a framework for Pillar Two of the Global Anti-Base Erosion Rules, which was designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a 15% minimum level of income tax.
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.
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; 52 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.
Our inability to enforce our rights and the enforcement of rights on a prejudicial basis by foreign courts or arbitral panels, including against a sovereign nation, could have an adverse effect on our results of operations and financial position. Changes in tax laws and regulations could have a material adverse effect on our financial condition.
Our inability to enforce our rights and the enforcement of rights on a prejudicial basis by foreign courts or arbitral panels, including against a sovereign nation, could have an adverse effect on our results of operations and financial position. Changes in and interpretations of tax laws and regulations could have a material adverse effect on our financial condition.
Companies like FMC are now legally responsible for remediating hazardous substances released into the environment on or from properties owned or operated by them as well as properties where they arranged for disposal of such substances, irrespective of when the release into the environment occurred or who caused it.
Companies like FMC are legally responsible for remediating hazardous substances released into the environment on or from properties owned or operated by them as well as properties where they arranged for disposal of such substances, irrespective of when the release into the environment occurred or who caused it.
For example, our operations may take place on or adjacent to Indigenous Peoples’ ancestral lands, and such Indigenous Peoples may assert rights to such lands. Further, we may be required or expected by our stakeholders and other third parties to consult with and/or obtain consent from Indigenous Peoples for potential impacts.
For example, our operations may take place on or adjacent to Indigenous Peoples’ ancestral lands, and such Indigenous Peoples may assert rights to such lands. Further, we may be required or expected by our stakeholders and other third parties to consult with and/or obtain consent from Indigenous Peoples for potential significant impacts.
We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data center and artificial intelligence (AI) developments and growing connectivity globally; however if these markets, industries and transitions do not develop as we expect, or develop more slowly than we expect, future demand and prices for copper may be negatively affected, impacting our business.
We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence (AI) developments and growing connectivity globally; however if these markets, industries and transitions do not develop as we expect, or develop more slowly than we expect, future demand and prices for copper may be negatively affected, impacting 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.
“Business and Properties” and Note 10 for further discussion of our environmental obligations. We face 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.
If we are unable to meet the ESG lending criteria set by our creditors or are required to take certain remediation steps to satisfy such criteria, our access to capital on terms we find favorable may be limited and our costs may increase.
If we are unable to meet the lending criteria set by our creditors or are required to take certain remediation steps to satisfy such criteria, our access to capital on terms we find favorable may be limited and our costs may increase.
Risks related to our common stock • Impact of our holding company structure on our ability to service debt, declare cash dividends, or repurchase shares and debt; and • Impact of anti-takeover provisions in our charter documents and under Delaware law.
Risks related to our common stock • Impact of our holding company structure on our ability to service debt, declare dividends, or repurchase shares and debt; and • Impact of anti-takeover provisions in our charter documents and under Delaware law.
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.
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 73 Table of Contents 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.
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.
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, 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.
We cannot predict the outcome of these investigations, and the outcome of any legal proceeding is inherently uncertain and adverse developments or outcomes can result in significant monetary damages, penalties, other sanctions or injunctive relief against us, limitations on our property rights, or regulatory interpretations that increase our operating costs, some of which may not be covered by insurance.
We cannot predict the outcome of these investigations, and the outcome of any legal proceeding is inherently uncertain and adverse developments or outcomes could result in significant monetary damages, penalties, other sanctions or injunctive relief against us, limitations on our property rights, or regulatory interpretations that increase our operating costs, some of which may not be covered by insurance.
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.
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 machine learning and quantum computing.
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.
Extended material declines in market prices of such commodities could have a material adverse effect on our financial results and the 50 Table of Contents 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.
We are investigating whether activities of PT Smelting may have violated aspects of the FCPA or other laws, including laws of non-U.S. jurisdictions. PT Smelting is an Indonesian joint venture between PT-FI and Mitsubishi Materials Corporation (MMC). An affiliate of MMC serves as operator of PT Smelting (see Note 2).
We are investigating whether activities of PT Smelting may have violated aspects of the FCPA or other laws, including laws of non-U.S. jurisdictions. PT Smelting is an Indonesian joint venture between PTFI and Mitsubishi Materials Corporation (MMC), and an affiliate of MMC serves as operator of PT Smelting (see Note 2).
Our leaching innovation initiatives include measures that are intended to enhance solution flow through our leach stockpiles, which may increase risks for physical instability of such stockpiles. Tailings impoundments include large embankments that must be engineered, constructed and monitored to ensure structural stability and avoid structural collapse.
Our leaching innovation initiatives include measures that are intended to enhance solution flow through our leach stockpiles, which may increase risks for solution spills or physical instability of such stockpiles. Tailings impoundments include large embankments that must be engineered, constructed and monitored to ensure structural stability and avoid structural collapse.
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.
Partially because of the Grasberg minerals district’s significance to Indonesia’s economy (including the downstream operations), 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.
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.
Existing, proposed and future governmental conventions, laws, rules, regulations, policies and standards as well as existing, proposed and future voluntary disclosure standards and frameworks (both in the U.S. and internationally), including those related to changing climate conditions, 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.
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.
Fluctuations in commodities prices are caused by varied and complex factors beyond our control, including global supply and demand impacted by industry production 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 or restrictions 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.
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.
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 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 sustainability-related 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.
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.
In addition, our insurance does not cover most losses caused by the risks described above. For example, we do not maintain political risk insurance. We conduct international operations and exploration activities in Indonesia, Peru and Chile as well as other foreign jurisdictions.
As of December 31, 2024, we operated 15 active tailings storage facilities (13 in the U.S. and 2 in Peru), of which 10 have an upstream design and 5 have a centerline design. Additionally, we have one centerline tailing storage facility in development.
As of December 31, 2025, we operated 15 active tailings storage facilities (13 in the U.S. and 2 in Peru), of which 10 have an upstream design and 5 have a centerline design. Additionally, we have one centerline tailing storage facility in development.
Our success is dependent on the contributions of our highly skilled and experienced workforce. Our business depends on our ability to recruit, retain, develop and advance a qualified, inclusive and diverse workforce at all levels, including sufficient personnel to develop, implement and operate new technologies.
Our success is dependent on the contributions of our highly skilled and experienced workforce. Our business depends on our ability to recruit, retain, develop and advance a qualified workforce at all levels, including sufficient personnel to develop, implement and operate new technologies.
The use of AI may increase our exposure to cybersecurity risks and additional risks relating to the protection of data, including increased exposure of confidential or otherwise protected information to unauthorized recipients, which could result 62 Table of Contents in liability under or termination of our contracts with third parties, misuse of our intellectual property or other unintended consequences, as discussed in more detail in the risk factor above.
The use of AI may increase our exposure to cybersecurity risks and additional risks relating to the protection of data, including increased exposure of confidential or otherwise protected information to unauthorized recipients, which could result in liability under or termination of our contracts with third parties, misuse of our intellectual property or other unintended consequences, as discussed in more detail in the risk factor above.
The underlying overburden erosion and run-off are being managed and controlled through an extensive re-sloping and water management project which is ongoing, and PT-FI has not experienced similar erosion issues since 2018. PT-FI maintains a tailings deposition management plan and environmental monitoring program which consider the presence of this potentially acid-forming overburden in the lowlands tailings management area.
The underlying overburden erosion and run-off are being managed and controlled through an extensive re-sloping and water management project which is ongoing, and PTFI has not experienced similar erosion issues since 2018. PTFI maintains a tailings deposition management plan and environmental monitoring program which consider the presence of this potentially acid-forming overburden in the lowlands tailings management area.
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.
While we strive to include more renewable power among the energy 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.
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 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.
Refer to Items 1. and 2. “Business and Properties” and MD&A for further discussion of PT-FI’s development of the Kucing Liar deposit in the Grasberg minerals district and our other development projects. We may not be able to maintain or grow our mineral reserves. Our existing mineral reserves will be depleted over time by production from our operations.
Refer to Items 1. and 2. “Business and Properties” and MD&A for further discussion of PTFI’s development of the Kucing Liar deposit in the Grasberg minerals district and our other development projects. We may not be able to maintain or grow our mineral reserves. Our existing mineral reserves will be depleted over time by production from our operations.
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.
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, 2025, our financial assurance obligations totaled $2.2 billion for closure and reclamation costs of U.S. mining sites.
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.
In December 2018, PTFI was granted an IUPK to replace its former contract of work, enabling PTFI 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.
PT-FI has expanded the scope of its environmental monitoring program which assesses potential environmental and human health impacts from overburden and tailings. As part of the expanded scope, in 2022 and 2023, PT-FI assisted the Mimika local health authority (LHA) with broad-based community health surveys, which provided further data on an extensive range of community health issues.
PTFI has expanded the scope of its environmental monitoring program which assesses potential environmental and human health impacts from overburden and tailings. As part of the expanded scope, in 2022 and 2023, PTFI assisted the Mimika local health authority (LHA) with broad-based community health surveys, which provided further data on an extensive range of community health issues.
Overtopping or failure of any of the PT-FI tailings containment structures (levees or protection structures) induced by extreme weather events such as floods, a major seismic event or naturally occurring weak ground under the structures, are potential risks. The potential impacts from any such occurrence could vary significantly depending upon the specific location of the failure.
Overtopping or failure of any of the PTFI tailings containment structures (levees or protection structures) induced by extreme weather events such as floods, a major seismic event or naturally occurring weak ground under the structures, are potential risks. The potential impacts from any such occurrence could vary significantly depending upon the specific location of the failure.
As of January 31, 2025, our senior unsecured debt was rated “Baa2” with a stable outlook by Moody’s Investors Service, “BBB” with a stable outlook by Fitch Ratings, and “BBB-” with a stable outlook by Standard & Poor’s.
As of January 31, 2026, our senior unsecured debt was rated “Baa2” with a stable outlook by Moody’s Investors Service, “BBB” with a stable outlook by Fitch Ratings, and “BBB-” with a stable outlook by Standard & Poor’s.
Information and operational technology systems continue to evolve and, in order to remain competitive, we must implement new technologies in a timely, cost-effective and efficient manner. For example, we may develop and apply AI in decision support systems, material characterization, equipment reliability, mineral extraction and remote/autonomous operation.
Information and operational technology systems continue to evolve and, in order to remain competitive, we must implement, advance and develop new technologies in a timely, cost-effective and efficient manner. For example, we may develop and apply AI in decision support systems, material characterization, equipment reliability enhancement, mineral extraction optimization and remote/autonomous operation.
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.
Maintaining a good working relationship with the Indonesia government, PT Mineral Industri Indonesia (MIND ID), an Indonesia state-owned enterprise and shareholder in PTFI, 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.
Creating and maintaining an inventory of projects depends on many factors and although we devote significant time and resources to our project planning, approval and review processes, many of our development projects are highly complex and rely on factors that are outside of our control, which may cause the actual time and capital required to complete a development project and operating costs after completion to exceed our estimates, especially in periods of high inflation.
Creating and maintaining an inventory of projects depends on many factors and although we devote significant time and resources to our project planning, approval and review processes, many of our development projects are highly complex and rely on factors that are outside of our control, which may cause the actual time and capital required to complete a development project and operating costs after completion to exceed our estimates, especially in periods of high inflation, or may result in changes or cancellations.
Certain federal and similar state laws and regulations may expose us to joint and several liability for environmental damages caused by our operations, or by previous owners or operators of properties we acquired or are currently operating or at sites where we previously sent materials for processing, recycling or disposal.
Certain laws and regulations may expose us to joint and several liability for environmental damages caused by our operations, or by previous owners or operators of properties we acquired or are currently operating or at sites where we previously sent materials for processing, recycling or disposal.
There is no guarantee our actions to prevent and manage the quality of any discharge of impacted water will be successful. PT-FI may modify its re-sloping, erosion control and water management plans in the future, which could lead to material increases in costs.
There is no guarantee our actions to prevent and manage the quality of any discharge of impacted water will be successful. PTFI may modify its re-sloping, erosion control and water management plans in the future, which could lead to material increases in costs.
While we anticipate taking all measures that we deem reasonable and prudent in connection with the development of our underground mines to safely manage production, there can be no assurance that these risks will not cause schedule delays, revised mine plans, injuries to persons and property, or increased capital costs, any of which may have a material adverse impact on our cash flows, results of operations and financial condition.
While we anticipate taking all measures that we deem reasonable and prudent in connection with the development of our underground mines to safely manage production, there can be no assurance that these risks will not cause schedule delays, revised mine plans, injuries or death to persons, damage to property, or 67 Table of Contents increased capital costs, any of which may have a material adverse impact on our cash flows, results of operations and financial condition.
Refer to Item 1C. “Cybersecurity” for further information on our cybersecurity governance, risk management and strategy. Failure to successfully implement or develop new technology systems and increased exposure to risks associated with the use of these systems may adversely affect our business.
Refer to Item 1C. “Cybersecurity” for further discussion on our cybersecurity governance, risk management and strategy. Failure to successfully implement, advance or develop new technology systems and increased exposure to risks associated with the use of these systems may adversely affect our business.
A major health crisis at any of our operating sites, and particularly at PT-FI’s remote operating site, could disrupt or change our operating plans, which may have a material adverse effect on our business and results of operations. Human capital risks Labor disputes or labor unrest could disrupt our operations.
A major health crisis at any of our operating sites, and particularly at PTFI’s remote operating site, could disrupt or change our operating plans, which may have a material adverse effect on our business and results of operations. Human capital risks Labor disputes or labor unrest could disrupt our operations.
Unfavorable ratings or assessment of our ESG practices, including our compliance with certain voluntary disclosure standards and frameworks, may lead to negative investor sentiment toward us, which could have a negative impact on our stock price and our access to and cost of capital.
Unfavorable ratings or assessment of our sustainability-related practices, including our compliance with certain voluntary disclosure standards and frameworks, may lead to negative investor sentiment toward us, which could have a negative impact on our stock price and our access to and cost of capital.
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.
The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks 70 Table of Contents 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.
Some of our tailings storage facilities are located in areas where a failure has the potential to impact individual dwellings, and at least one of our impoundments is in an area where a failure has the potential 57 Table of Contents to impact nearby communities or mining infrastructure.
Some of our tailings storage facilities are located in areas where a failure has the potential to impact individual dwellings, and at least one of our impoundments is in an area where a failure has the potential to impact nearby communities or mining infrastructure.
For example, our implementation of the Global Industry Standard for Tailings Management (the Tailings Standard) (refer to Items 1. and 2. “Business and Properties” for further discussion) has required changes and could require additional changes to our closure and reclamation plans or modifications to previously completed reclamation actions.
For example, our implementation of the Global Industry Standard for Tailings Management (the Tailings Standard) (refer to Items 1. and 2. “Business and Properties” for further discussion) has required changes to our closure and reclamation plans or modifications to previously completed reclamation actions.
“Legal Proceedings,” in Arizona, where our operations use both surface water and groundwater, we are a participant in an active adjudication in which Arizona courts have been attempting, for 50 years, to quantify and prioritize surface water claims for the Gila River watershed, one of the state’s largest river systems.
As discussed in Item 3. “Legal Proceedings,” in Arizona, where our operations use both surface water and groundwater, we are a participant in an active adjudication in which Arizona courts have been attempting, for 50 years, to quantify and prioritize surface water claims for the Gila River watershed, one of the state’s largest river systems.
The lack of, or insufficiency of, insurance coverage could adversely affect our cash flows and overall profitability. Our management of waste rock and tailings are subject to significant environmental, safety and engineering challenges and risks that could adversely affect our business.
The lack of, or insufficiency of, insurance coverage could adversely affect our cash flows and overall profitability. 60 Table of Contents Our management of waste rock and tailings are subject to significant environmental, safety and engineering challenges and risks that could adversely affect our business.
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.
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.
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.
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.
For example, in 2009, the Indonesia government enacted a mining law that sought to modify PT-FI’s former contract of work, certain provisions of which were not required under or conflicted with PT-FI’s former contract of work.
For example, in 2009, the Indonesia government enacted a mining law that sought to modify PTFI’s former contract of work, certain provisions of which were not required under or conflicted with PTFI’s former contract of work.
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.
For further discussion 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.
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.
There can be no assurance that a severe or catastrophic failure of any of our facilities will not occur in the future. For further discussion 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.
Managing these environmental challenges at our Indonesia operations could result in reputational harm and increased costs that could be significant.
Managing these environmental challenges at our Indonesia operations could result in reputational harm, social unrest and increased costs that could be significant.
Our business is dependent on maintaining good relations with our workforce. A significant portion of our global employee population is covered by collective labor agreements with varying durations and expiration dates. Refer to Items 1. and 2. “Business and Properties” for additional information regarding labor matters, and expiration dates of such agreements.
Our business is dependent on maintaining good relations with our workforce. A significant portion of our global employee population is covered by collective labor agreements with varying durations and expiration dates. Refer to Items 1. and 2. “Business and Properties” for further discussion regarding labor matters, and expiration dates of such agreements.
“Business and Properties” for a discussion of certain of such U.S. federal and state laws and regulations applicable to us. A substantial portion of our financial assurance obligations are satisfied by guarantees by us and certain of our subsidiaries. Our ability to continue to provide guarantees depends on state and other regulatory requirements, our financial performance and our financial condition.
“Business and Properties” for a discussion of certain of such U.S. federal and state laws and regulations applicable to us. Approximately half of our financial assurance obligations are satisfied by guarantees by us and certain of our subsidiaries. Our ability to continue to provide guarantees depends on state and other regulatory requirements, our financial performance and our financial condition.
The occurrence of one or more unexpected events in the U.S., including civil unrest, domestic or foreign terrorism, and other acts of violence, could adversely affect our North America operations and financial performance. Our operations, including future expansions or developments, depend on the availability of significant quantities of secure water supplies.
The occurrence of one or more unexpected events in the U.S., including civil unrest, domestic or foreign terrorism, and other acts of violence, could adversely affect our U.S. operations and financial performance. Our operations, including future expansions or developments, depend on the availability of secure water supplies.
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.
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, 2025, we had more than 80 active remediation projects in 23 U.S. states.
We are also subject to financial assurance requirements in connection with our remaining oil and gas properties and certain of our previously sold oil and gas properties under both state and federal laws. Refer to Note 10 for additional information regarding our financial assurance obligations and Items 1. and 2.
We are also subject to financial assurance requirements in connection with our remaining oil and gas properties and certain of our previously sold oil and gas properties under both state and federal laws. Refer to Note 10 for further discussion regarding our financial assurance obligations and Items 1. and 2.
Accordingly, our activities in the U.S. and outside of the U.S. may be substantially affected by many external factors beyond our control, any of which could have a material adverse effect on our cash flows, results of operations and financial condition.
Accordingly, our activities in and outside of the U.S. may be substantially affected by many external factors beyond our control, any of which could have a material adverse effect on our cash flows, results of operations, financial condition and trading price of our common stock.
Our proven and probable mineral reserves in Indonesia reflect estimates of minerals that can be recovered through the end of 2041, and PT-FI’s current long-term mine plan and planned operations are based on the assumption that PT-FI will abide by the terms and conditions of the IUPK and will be granted the 10-year extension from 2031 through 2041.
Our proven and probable mineral reserves in Indonesia reflect estimates of minerals that can be recovered through the end of 2041, and PTFI’s current long-term mine plan and planned operations are based on the assumption that PTFI will abide by the terms and conditions of the IUPK and will be granted the 10-year extension from 2031 through 2041.
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.
In addition, in the southern (estuary) portion of the approved tailings management area, modeling of sediment transport scenarios indicates that tailings have the potential to be deposited outside of the approved lateral levees in adjacent mangroves. PTFI has proposed additional extensions to the existing levees to the Indonesia regulators and is further evaluating the potential benefits and impacts.
Regulatory, environmental and social risks • Compliance with applicable environmental, health and safety laws and regulations; • Remediation of properties no longer in operation; • Ability to meet our energy requirements while complying with climate-related regulations and expectations and other energy transition policy changes; • The physical impacts of climate change on our operations, workforce, communities, biodiversity and ecosystems, supply chains and customers; • Increasing scrutiny, action and evolving expectations from stakeholders and other third parties with respect to our environmental, social and governance (ESG) practices, performance, commitments and disclosures; and • Failure or perceived failure to manage relationships with the communities and/or Indigenous Peoples where we operate or that are near our operations.
Regulatory, environmental and social risks • Compliance with applicable environmental, health and safety laws and regulations; • Remediation of properties no longer in operation in the U.S.; • Ability to meet our energy requirements while complying with climate-related regulations and expectations and other energy transition policy changes; • The physical impacts of changing climate conditions on our operations, workforce, communities, biodiversity and ecosystems, supply chains and customers; • Scrutiny, action and evolving expectations from stakeholders and other third parties with respect to our sustainability-related practices, performance, commitments and disclosures; and • Failure or perceived failure to manage relationships with the communities and/or Indigenous Peoples where we operate or that are near our operations.
Levees have been constructed along both sides of the lowlands tailings management area to act as containment structures to laterally contain the depositional footprint of the tailings and natural sediment within the approved tailings management area. Another major environmental challenge at PT-FI is managing overburden stockpiles and other waste rock and conditions in the open pit.
Levees have been constructed along both sides of the lowlands tailings management area to act as containment structures to laterally contain the depositional footprint of the tailings and natural sediment within the approved tailings management area. 61 Table of Contents Another major environmental challenge at PTFI is managing overburden stockpiles and other waste rock and conditions in the open pit.
Ensuring that there are adequate systems and processes in place to comply with the various ESG tracking and disclosure obligations, or to respond to business partners or other affiliates in our value chain that have requested, or may in the future request, ESG-related data or information from us to meet their disclosure obligations, will require management’s time and expense.
Maintaining adequate systems and processes in place to comply with the various tracking and disclosure obligations, or to respond to business partners or other affiliates in our value chain that have requested, or may in the future request, sustainability-related data or information from us to meet their disclosure obligations, will require management’s time and expense.
Management of this waste is regulated in the jurisdictions where we operate and our programs are designed to comply with applicable national, state and local laws, permits and approved environmental impact studies. We maintain large leach pads and tailings impoundments containing viscous material.
Management of this waste is regulated in the jurisdictions where we operate and our programs are designed to comply with applicable national, state and local laws, permits and approved environmental impact studies. We maintain large stockpiles and tailings impoundments.
For example, our diesel-fueled haul trucks are a significant contributor to GHG emissions at our North America and South America operations. We are evaluating options for the electrification of our haul trucks, but reduction of emissions from such haul trucks will depend upon the development and availability of commercially viable alternative-fueled mining equipment by our third-party suppliers.
For example, our diesel-fueled haul trucks are a significant contributor to GHG emissions at our U.S. and South America operations. We are evaluating options for transitioning to more energy efficient haul trucks, including electrification, but reduction of emissions from such haul trucks will depend upon the development and availability of commercially viable alternative-fueled mining equipment by our third-party suppliers.
As a result, PT-FI will not mine all of these mineral reserves during the initial term of the IUPK.
As a result, PTFI will not mine all of these mineral reserves during the initial term of the IUPK.
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.
If we fail to recruit, retain, develop and advance qualified personnel necessary for the efficient operation of our business globally or fail to maintain a safe environment, we could face labor challenges, which may result in, but not limited to, decreased profitability, decreases in productivity and efficiency, safety performance challenges, and the delay of current and potential development projects, any of which may have a material adverse effect on our performance.
Although we believe our tax estimates are reasonable, the ultimate tax outcome may differ from the tax amounts recorded in our financial statements and may materially affect our income tax provision, net income, or cash flows in the period or periods for which such determination and settlement occurs.
Although we believe our tax estimates are reasonable, including with respect to our use of NOLs, the ultimate tax outcome may differ from the tax amounts recorded in our financial statements and may materially affect our income tax provision, net income, or cash flows in the period or periods for which such determination and settlement occurs.
Such attacks may be perpetrated by a variety of bad actors, some of which may reside in jurisdictions where law enforcement measures to address such attacks are ineffective. We have experienced targeted and non-targeted cybersecurity events in the past and may experience them in the future.
Such attacks may be perpetrated by a variety of bad actors, some of which may reside in jurisdictions where law enforcement measures to address such attacks are ineffective. We have experienced targeted and non-targeted cybersecurity events in the past and may experience events of a similar nature, with potentially greater exposure, in the future.
Independent environmental management expert audits have reaffirmed conclusions from previous studies that PT-FI’s controlled riverine tailings management 58 Table of Contents system represents the best alternative for tailings management given the volume of tailings produced and the site-specific conditions of the area.
Independent environmental management expert audits have reaffirmed conclusions from previous studies that PTFI’s controlled riverine tailings management system represents the best alternative for tailings management given the volume of tailings produced and the site-specific conditions of the area.
A supplier’s failure to supply consumables or components in a timely manner or to meet our quality, quantity, cost requirements or our technical specifications, or our inability to obtain alternative sources of consumables or components on a timely basis or on terms acceptable to us, could adversely affect our operations.
A supplier’s failure to supply consumables or components in a timely or cost-effective manner or to meet our specifications, or our inability to obtain alternative sources on a timely basis or on terms acceptable to us, could adversely affect our operations.
Energy represented 16% of our copper mine site operating costs in 2024, and based on currently available information and projected operations, is expected to approximate 16% in 2025.
Energy represented 15% of our copper mine site operating costs in 2025, and based on currently available information and projected operations, is expected to approximate 17% in 2026.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe have experienced targeted and non-targeted cybersecurity incidents in the past, including an incident in August 2023 that affected certain of our information systems and resulted in temporary disruptions to parts of our operations. However, prior cybersecurity incidents, including the August 2023 incident, have not materially affected us.
Biggest changeWe have experienced targeted and non-targeted cybersecurity incidents in the past. However, as of February 13, 2026, we have not experienced a cybersecurity threat, including prior cybersecurity incidents, that has materially affected or is reasonably likely to materially affect us, including our business strategy, results of operations or financial condition.
The underlying controls of our cyber risk management program are based on recognized best practices and standards for cybersecurity and information technology, including the National Institute of Standards and Technology Cybersecurity Framework. We utilize dedicated internal and external cybersecurity personnel to focus on assessing, detecting, identifying, managing, preventing and responding to cybersecurity threats and incidents.
The underlying controls of our cyber risk management program are based on recognized best practices and industry standards for cybersecurity and information technology, including the National Institute of Standards and Technology Cybersecurity Framework. We utilize dedicated internal and external cybersecurity personnel to focus on assessing, detecting, identifying, managing, preventing and responding to cybersecurity threats and incidents.
The Audit Committee also periodically receives reports on notable cybersecurity incidents and briefs the full Board on these matters.
The Audit Committee also periodically receives reports on notable cybersecurity incidents and trends and briefs the full Board on these matters.
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).
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 the Audit Committee briefs the full Board.
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.
Our CISO is responsible for protecting our global technology systems from 75 Table of Contents 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 of Directors (Board).
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.
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 annual cybersecurity awareness training for employees and certain contractors, periodic training for specialized roles, quarterly phishing tests and dedicated resources to manage and monitor the evolving threat landscape, including through the gathering of actionable threat intelligence.
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.
Our cybersecurity risk management and strategy processes 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.
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.
Our CISO has over 30 years of experience in the technology and cybersecurity industries, including 12 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 of our ERM program, including cybersecurity risks.
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.
“Risk Factors” for further discussion on the risks we face from cybersecurity threats. Governance Our Senior Vice President and Chief Innovation Officer, who has served in various senior leadership roles in operational improvement and technology during his over 30-year tenure with us, leads our innovation and technology initiatives, corporate information systems and financial shared services.
Notwithstanding our cyber risk management program, we may not be successful in preventing or mitigating a cybersecurity incident that could materially affect us, including our business strategy, results of operations or financial condition. Refer to Item 1A. “Risk Factors” for further information on the risks we face from cybersecurity threats.
In addition, we have not been materially affected by any cybersecurity incidents experienced by our third-party service providers. Notwithstanding our cyber risk management program, we may not be successful in preventing or mitigating a cybersecurity incident that could materially affect us, including our business strategy, results of operations or financial condition. Refer to Item 1A.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeAny re-characterization of groundwater as surface water could affect the ability of consumers, farmers, ranchers, municipalities, and industrial users like us to continue to access water supplies that have been relied on for decades. Because we are a user of both groundwater and surface water in Arizona, we are an active participant in the Gila River adjudication.
Biggest changeAny re-characterization of subsurface water as surface water (rather than groundwater) could affect the ability of consumers, farmers, ranchers, municipalities, and industrial users like us to continue to access water supplies that have been relied on for decades.
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.
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 a subflow zone creates a cone of depression that intersects the subflow zone.
Because there are numerous federal reservations in watersheds across Arizona, the reserved water right claims of the U.S. pose a significant risk to multiple operations, including Morenci and Safford (including Lone Star) in the Upper Gila River watershed, and Sierrita in the Santa Cruz watershed.
Because there are numerous federal reservations in watersheds across Arizona, the reserved water right claims of the U.S. pose a significant risk to multiple of our operations, including Morenci and Safford (including Lone Star) in the Upper Gila River watershed, and Sierrita in the Santa Cruz watershed.
In April 2021, the Special Master ruled that, for uses initiated after enactment of the 1919 permitting statute, a well owner may not pursue a surface water right for subsurface water now unless the well owner filed an application for a permit to appropriate prior to initiating the water use.
In April 2021, the Special Master ruled that, for uses initiated after enactment of the 1919 permitting statute, a well owner may not pursue a surface water right for subsurface water unless the well owner filed an application for a permit to appropriate prior to initiating the water use.
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.
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 groundwater model capable of accounting for complexities of the aquifer system should be used.
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 groundwater model as extending only as deep as the bottom of the floodplain alluvium or extend all the way down to bedrock.
Based on these cone of depression analyses, wells outside of the subflow zone could be subject to the adjudications pending in Arizona state courts.
Based on these cone of depression analyses, wells outside of a subflow zone could be subject to the adjudications pending in Arizona state courts.
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.
No party has appealed that decision, and we expect the guidance from the Special Master’s order to be reflected in the final subflow depletion test.
In the absence of a valid surface water claim to support the pumping, owners of wells deemed to be depleting the subflow zone through their cones of depression may be subject to claims that they must refrain from pumping subflow or must pay damages. In January 2017, ADWR issued a report containing its recommended cone of depression test.
In the absence of a valid surface water claim to support the pumping, owners of wells deemed to be depleting a subflow zone through the applicable cones of depression may be subject to claims that they must refrain from pumping subflow or must pay damages. In January 2017, ADWR issued a report containing its recommended cone of depression test.
Water Rights Adjudications Our operations in the western U.S. require significant secure quantities of water for mining and ore processing activities, and related support facilities. Continuous operation of our mines is dependent on, among other things, our ability to maintain our water rights and claims and the continuing physical availability of the water supplies.
Water Rights Adjudications Our operations in the western U.S. require secure water supplies for mining and ore processing activities, and related support facilities. Continuous operation of our mines is dependent on, among other things, our ability to maintain our water rights and claims and the continuing physical availability of the water supplies.
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.
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.
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.
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 discussion of other legal proceedings.
This Gila River adjudication primarily affects our Morenci, Safford (including Lone Star) and Sierrita mines. The Gila River adjudication is addressing the state law claims of thousands of competing users, including us, as well as significant federal water claims that are potentially adverse to the state law claims of both surface water and groundwater users.
This Gila River adjudication primarily affects our Morenci, Safford (including Lone Star) and 76 Table of Contents Sierrita mines. The Gila River adjudication is addressing the state law claims of thousands of competing users, including us, as well as significant federal water claims that are potentially adverse to the state law claims of both surface water and groundwater users.
In 2005, the Maricopa County Superior Court directed the Arizona Department of Water Resources (ADWR) to prepare detailed recommendations regarding the delineation of the “subflow” zone of the San Pedro River, a tributary of the Gila River. Subsurface water within the subflow zone is presumed to constitute appropriable subflow rather than groundwater.
In 2005, at the direction of the Maricopa County Superior Court, the Arizona Department of Water Resources (ADWR), prepared detailed recommendations regarding the delineation of the “subflow” zone of the San Pedro River, a tributary of the Gila River. Subsurface water within the subflow zone is presumed to constitute appropriable subflow rather than groundwater.
At our North America operations, certain of our water supplies are supported by surface water rights, which give us the right to use public waters for a statutorily defined beneficial use at a designated location.
At our U.S. operations, certain of our water supplies are supported by surface water rights, which give us the right to use public waters for a statutorily defined beneficial use at a designated location.
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.
Such matters will be determined by a subsequent “subflow depletion test,” which is currently under development. While 77 Table of Contents 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.
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.
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.
Although we have minimal interests in the San Pedro River Basin, a decision that re-characterizes groundwater in that basin as appropriable subflow may set a precedent for other river systems in Arizona that could have material implications for many commercial, industrial, municipal and agricultural users of groundwater, including our Arizona operations.
Although our interests in the San Pedro River Basin are limited, the decision to re-characterize groundwater in that basin as appropriable subflow could set a precedent for other river systems in Arizona. Such a precedent could have significant implications for many commercial, industrial, municipal and agricultural users of groundwater, including for our Arizona operations.
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.
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 zone delineation for the Verde River mainstem and Sycamore Creek and objections to that report were submitted in May 2022.
In Re The General Adjudication of All Rights to Use Water in the Gila River System and Sources , Maricopa County, Superior Court, Cause Nos. W-1 (Salt), W-2 (Verde), W-3 (Upper Gila), and W-4 (San Pedro).
Because we are a user of both groundwater and surface water in Arizona, we are an active participant in the Gila River adjudication. In Re The General Adjudication of All Rights to Use Water in the Gila River System and Sources , Maricopa County, Superior Court, Cause Nos. W-1 (Salt), W-2 (Verde), W-3 (Upper Gila), and W-4 (San Pedro).
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 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.
The U.S. declined to pursue an interlocutory appeal in either of the In re Aravaipa Canyon Wilderness Area or In re Redfield Canyon Wilderness Area cases. The third resolved decision was issued in In re San Pedro Riparian National Conservation Area , which pertained to the U.S.’s claims to water for a national conservation area.
The third resolved decision was issued in In re San Pedro Riparian National Conservation Area , which pertained to the U.S.’s claims to water for a national conservation area.
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.
The fourth resolved decision was issued in In re Fort Huachuca , which involved the U.S.’s claims to water for an Arizona army base. The court issued its decision in September 2024 supportive of our position on almost all issues, resulting in an approximate 80% reduction of the total acre-feet per year claimed by the U.S.
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.
The court 78 Table of Contents 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.
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.
In February 2024, ADWR issued a report setting forth its proposed subflow depletion test, and objections were filed in April 2024.
Removed
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.
Added
As directed by the Special Master, a technical committee, comprised of the parties’ technical consultants and ADWR groundwater modelers, was formed in 2025 and in connection with the technical committee process, ADWR indicated to the Special Master that it aims to have the revised subflow depletion test by the end of 2026 with additional steps like calibration needed.
Added
The U.S. declined to pursue an interlocutory appeal in all four resolved matters.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

7 edited+2 added−1 removed6 unchanged
Biggest changeThe goal of our FRM program is to achieve zero workplace fatalities by raising awareness to fatal risks and the measures necessary to mitigate them. Refer to Exhibit 95.1 for mine safety disclosures required in accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S-K.
Biggest changeRefer to Exhibit 95.1 for mine safety disclosures required in accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S-K. 79 Table of Contents Information About Our Executive Officers.
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
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. 80 Table of Contents PART II
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.
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. Richard C.
Our global health and safety strategy, “Safe Production Matters,” is focused on fatality prevention, eliminating systemic root causes of incidents and continuous improvement through robust management systems, which are supported by leaders empowering our teams to work safely. Foundational to our Safe Production Matters strategy is our Fatal Risk Management (FRM) program.
Our global health and safety strategy, “Safe Production Matters,” is focused on fatality prevention, eliminating systemic root causes of incidents and continuous improvement through robust management systems, which are supported by leaders empowering our teams to work safely. Our global safety strategy across all levels of the organization is captured in our Fatal Risk Management (FRM) program.
Item 4. Mine Safety Disclosures. Our highest priority is the health, safety and well-being of our workforce. We believe health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand that the health and safety of our workforce is critical to our operational efficiency and long-term success.
We believe health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand the health and safety of our workforce is critical to our operational efficiency and long-term success.
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.
Certain information as of February 13, 2026, about our executive officers is set forth in the following table and accompanying text: Name Age Position or Office Kathleen L. Quirk 62 President and Chief Executive Officer Maree E. Robertson 50 Executive Vice President and Chief Financial Officer Richard C. Adkerson 79 Chairman of the Board of Directors Stephen T.
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.
Higgins 68 Executive Vice President and Chief Administrative Officer Douglas N. Currault II 61 Executive Vice President and General Counsel Kathleen L. 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.
Removed
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.
Added
Item 4. Mine Safety Disclosures. Our highest priority is the health, safety and well-being of our workforce. We also work to promote safety with our suppliers and in the communities where we operate.
Added
The goal of our FRM program is to achieve zero workplace fatalities by strengthening preventive measures and raising awareness to fatal risks and the measures necessary to mitigate them.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

9 edited+0 added−0 removed3 unchanged
Biggest changeThe declaration and payment of dividends (base or variable) is at the discretion of our Board and will depend upon our financial results, cash requirements, global economic conditions and other factors deemed relevant by our Board. See “Cautionary Statement” in Items 7. and 7A.
Biggest changeThe declaration and payment of dividends (base or variable) is at the discretion of our Board and is subject to a number of factors, including not exceeding our net debt target, capital availability, financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board.
On November 1, 2021, our Board approved a share repurchase program authorizing repurchases of up to $3.0 billion of our common stock. On July 19, 2022, our Board authorized an increase in the share repurchase program up to $5.0 billion.
On November 1, 2021, our Board approved a share repurchase program authorizing repurchases of up to $3.0 billion of our common stock, and on July 19, 2022, our Board authorized an increase in the share repurchase program up to $5.0 billion.
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.
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, 2025.
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.
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, 2025, 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, 2025 — $ — — $ 2,998,744,414 November 1-30, 2025 — — — 2,998,744,414 December 1-31, 2025 — — — 2,998,744,414 Total — — — a.
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.
Based on current market conditions, the base and variable dividends on our common stock are anticipated to total $0.60 per share for 2026 (including the dividends paid on February 2, 2026), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend.
The combined annual rate of the base dividend and the variable dividend totaled $0.60 per share in 2024 and 2023.
The combined annual rate of the base dividend and the variable dividend totaled $0.60 per share in both 2025 and 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.
On December 17, 2025, our Board declared cash dividends totaling $0.15 per share on our common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which were paid on February 2, 2026, to shareholders of record as of January 15, 2026.
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.
Common Stock Our common stock is traded on the New York Stock Exchange under the symbol “FCX.” At January 31, 2026, there were 8,601 holders of record of our common stock.
“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.
See “Cautionary Statement” in Items 7. and 7A. “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.

Item 6. [Reserved]

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

245 edited+111 added−81 removed53 unchanged
Biggest changeRepresents 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.
Biggest changeRepresents Corporate, other & eliminations as presented in “Business Divisions and Segments.” 117 Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs Year Ended December 31, 2025 (In millions) Co-Product Method By-Product Method Copper Gold Silver & Other a Total Revenues, excluding adjustments $ 5,463 $ 5,463 $ 3,588 $ 214 $ 9,265 Site production and delivery, before net noncash and other costs shown below 2,246 1,324 870 52 2,246 By-product credits (3,817) — — — — Treatment charges 225 133 87 5 225 Export duties 337 197 133 7 337 Royalty on metals 345 205 135 5 345 Net cash (credits) costs (664) 1,859 1,225 69 3,153 DD&A 1,090 b 643 422 25 1,090 Noncash and other costs, net 1,075 c,d 634 416 25 1,075 Total costs 1,501 3,136 2,063 119 5,318 Other revenue adjustments, primarily for pricing on prior period open sales 19 19 14 1 34 Gross profit $ 3,981 $ 2,346 $ 1,539 $ 96 $ 3,981 Copper sales (millions of recoverable pounds) 1,205 1,205 Gold sales (thousands of recoverable ounces) 1,050 Gross profit per pound of copper/per ounce of gold: Revenues, excluding adjustments $ 4.53 $ 4.53 $ 3,418 Site production and delivery, before net noncash and other costs shown below 1.86 1.10 828 By-product credits (3.17) — — Treatment charges 0.19 0.11 83 Export duties 0.28 0.16 127 Royalty on metals 0.29 0.17 129 Unit net cash (credits) costs (0.55) 1.54 1,167 DD&A 0.91 b 0.53 402 Noncash and other costs, net 0.89 c,d 0.53 397 Total unit costs 1.25 2.60 1,966 Other revenue adjustments, primarily for pricing on prior period open sales 0.02 0.02 13 Gross profit per pound/ounce $ 3.30 $ 1.95 $ 1,465 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 9,265 $ 2,246 $ 1,090 Treatment charges 5 230 e — Export duties (337) — — Royalty on metals (345) — — Noncash and other costs, net — 1,075 — Other revenue adjustments, primarily for pricing on prior period open sales 34 — — Eliminations and other — — 4 Indonesia operations 8,622 3,551 1,094 Other mining f 23,870 18,889 1,098 Corporate, other & eliminations g (6,577) (6,066) 52 As reported in our consolidated financial statements $ 25,915 $ 16,374 $ 2,244 a.
CRITICAL ACCOUNTING ESTIMATES MD&A is based on our consolidated financial statements, which have been prepared in conformity with generally accepted accounting principles (GAAP) in the U.S. The preparation of these statements requires that we make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.
CRITICAL ACCOUNTING ESTIMATES MD&A is based on our consolidated financial statements, which have been prepared in conformity with generally accepted accounting principles (GAAP) in the U.S. The preparation of these consolidated financial statements requires that we make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.
This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP.
This 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.
Financial Policy . Our financial policy is aligned with our strategic objectives of maintaining a solid balance sheet, providing cash returns to shareholders and advancing opportunities for future growth.
Our financial policy is aligned with our strategic objectives of maintaining a solid balance sheet, providing cash returns to shareholders and advancing opportunities for future growth.
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 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.
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 (credits) costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations.
OUTLOOK Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets,” and Item 1A.
OUTLOOK Our financial results vary as a result of fluctuations in metals market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets,” and Item 1A.
A mineral resource, which includes measured, indicated and inferred mineral resources, is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
A mineral resource, which includes measured, indicated and inferred mineral resources, is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are 121 reasonable prospects for economic extraction.
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.
Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash (Credits) Costs” for further discussion of unit net cash costs (credits) associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs (credits) by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.
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.
Accordingly, in times of rising copper and gold prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper and gold prices, the opposite occurs. Prior Year Provisionally Priced Copper Sales .
“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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, 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.
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.
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, 2025. We do not have take-or-pay contractual obligations for other energy commodities.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk” contained in Part II of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. OVERVIEW We are a leading international metals company with the objective of being foremost in copper.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk” contained in Part II of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. OVERVIEW We are a leading international metals company with the objective of being foremost in copper.
“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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, 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.
Litigation and Other Contingencies Refer to Note 10, and Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for further discussion of contingencies associated with legal proceedings and other matters, including tax and Indonesia regulatory matters.
Litigation and Other Contingencies Refer to Note 10, and Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for further discussion of contingencies associated with legal proceedings and other matters, including tax and Indonesia regulatory matters.
Further, we may make changes to our business plans that could affect our results. We undertake no obligation to update any forward-looking statements, which speak only as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. Estimates of mineral reserves and mineral resources are subject to considerable uncertainty.
Further, we may make changes to our business plans that could affect our results. We undertake no obligation to update any forward-looking statements, which are as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. Estimates of mineral reserves and mineral resources are subject to considerable uncertainty.
Our annual report on Form 10-K for the year ended December 31, 2024, also contains measures such as net debt and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S. GAAP.
Our annual report on Form 10-K for the year ended December 31, 2025, also contains measures such as net debt and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S. GAAP.
For further discussion of other important factors that could cause results to differ materially from projections, refer to 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 other important factors that could cause results to differ materially from projections, refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025.
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.
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 2025 and 2024 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, 2024, for further discussion of environmental obligations, including a summary of changes in our estimated environmental obligations for the three 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, 2025, for further discussion of environmental obligations, including a summary of changes in our estimated environmental obligations for the three years ended December 31, 2025.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024, for risks associated with implementation of new technologies associated with the recovery of copper in leach stockpiles.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for risks associated with implementation of new technologies associated with the recovery of copper in leach stockpiles.
Our financial results will vary with fluctuations in the market prices of the commodities we produce, primarily copper and gold, and to a lesser extent molybdenum. For projected sensitivities of our operating cash flow to changes in commodity prices, refer to “Outlook.” World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control.
Our financial results will vary with fluctuations in the market prices of the commodities we produce, primarily copper and gold, and to a lesser extent molybdenum. Refer to “Outlook” for projected sensitivities of our operating cash flow to changes in commodity prices. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control.
Such a deposit cannot qualify as recoverable proven and probable mineral reserves until legal and economic feasibility are confirmed based upon a comprehensive evaluation of development and 115 Table of Contents operating costs, grades, recoveries and other material modifying factors. Accordingly, no assurance can be given that the estimated mineral resources will become proven and probable mineral reserves.
Such a deposit cannot qualify as recoverable proven and probable mineral reserves until legal and economic feasibility are confirmed based upon a comprehensive evaluation of development and operating costs, grades, recoveries and other material modifying factors. Accordingly, no assurance can be given that the estimated mineral resources will become proven and probable mineral reserves.
We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry, and recently extended to other metals including molybdenum. To achieve the Copper Mark, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria.
We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry, and extended to other metals, including molybdenum. To achieve the Copper Mark and Molybdenum Mark, as applicable, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria.
Includes silver sales of 3.6 million ounces ($29.35 per ounce average realized price) and sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing. b. Includes $97 million ($0.08 per pound of copper) associated with nonrecurring labor-related charges at Cerro Verde related to the new CLAs with its unions. c.
Includes silver sales of 3.6 million ounces ($29.35 per ounce average realized price) and sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing. b. Includes $97 million ($0.08 per pound of copper) of nonrecurring labor-related charges at Cerro Verde associated with new CLAs c.
We closely monitor market conditions and will adjust our operating plans to protect liquidity and preserve our asset values, if necessary. We expect to maintain a strong balance sheet and liquidity position as we focus on building long-term value in our business, executing our operating plans safely, responsibly and efficiently, and prudently managing costs and capital expenditures.
We closely monitor market and business conditions and adjust our operating plans to protect liquidity and preserve our asset values, when necessary. We expect to maintain a strong balance sheet and liquidity position as we focus on building long-term value in our business, executing our operating plans safely, responsibly and efficiently, and prudently managing operating costs and capital expenditures.
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.
Our annual report on Form 10-K for the year ended December 31, 2025, also includes forward-looking statements regarding mineral resources not included in proven and probable mineral reserves.
In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change. We show revenue adjustments for prior period open sales as separate line items.
In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change. We show revenue adjustments for prior period open sales as a separate line item.
“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 risks associated with development projects.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for further discussion of risks associated with development projects.
Represents the combined total for our other mining operations as presented in Note 14. 111 Table of Contents Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs Year Ended December 31, 2024 (In millions) Co-Product Method By-Product Method Copper Gold Silver & Other a Total Revenues, excluding adjustments $ 6,842 $ 6,842 $ 4,389 $ 218 $ 11,449 Site production and delivery, before net noncash and other costs shown below 2,681 1,602 1,028 51 2,681 Gold, silver and other by-product credits (4,605) — — — — Treatment charges 571 341 219 11 571 Export duties 457 273 175 9 457 Royalty on metals 433 260 167 6 433 Net cash (credits) costs (463) 2,476 1,589 77 4,142 DD&A 1,193 713 457 23 1,193 Noncash and other costs, net 362 b 217 139 6 362 Total costs 1,092 3,406 2,185 106 5,697 Other revenue adjustments, primarily for pricing on prior period open sales 7 7 (1) (1) 5 Gross profit $ 5,757 $ 3,443 $ 2,203 $ 111 $ 5,757 Copper sales (millions of recoverable pounds) 1,632 1,632 Gold sales (thousands of recoverable ounces) 1,817 Gross profit per pound of copper/per ounce of gold: Revenues, excluding adjustments $ 4.19 $ 4.19 $ 2,418 Site production and delivery, before net noncash and other costs shown below 1.64 0.98 566 Gold, silver and other by-product credits (2.82) — — Treatment charges 0.35 0.21 120 Export duties 0.28 0.17 96 Royalty on metals 0.27 0.16 92 Unit net cash (credits) costs (0.28) 1.52 874 DD&A 0.73 0.44 252 Noncash and other costs, net 0.22 b 0.13 77 Total unit costs 0.67 2.09 1,203 Other revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 (2) Gross profit per pound/ounce $ 3.53 $ 2.11 $ 1,213 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 11,449 $ 2,681 $ 1,193 Treatment charges (245) 326 c — Export duties (457) — — Royalty on metals (433) — — Noncash and other costs, net — 362 — Other revenue adjustments, primarily for pricing on prior period open sales 5 — — Eliminations and other (1) (1) — Indonesia operations 10,318 3,368 1,193 Other mining d 21,259 17,874 990 Corporate, other & eliminations (6,122) (5,688) 58 As reported in our consolidated financial statements $ 25,455 $ 15,554 $ 2,241 a.
Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.” 118 Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs Year Ended December 31, 2024 (In millions) Co-Product Method By-Product Method Copper Gold Silver & Other a Total Revenues, excluding adjustments $ 6,842 $ 6,842 $ 4,389 $ 218 $ 11,449 Site production and delivery, before net noncash and other costs shown below 2,681 1,602 1,028 51 2,681 By-product credits (4,605) — — — — Treatment charges 571 341 219 11 571 Export duties 457 273 175 9 457 Royalty on metals 433 260 167 6 433 Net cash (credits) costs (463) 2,476 1,589 77 4,142 DD&A 1,193 713 457 23 1,193 Noncash and other costs, net 362 b,c 217 139 6 362 Total costs 1,092 3,406 2,185 106 5,697 Other revenue adjustments, primarily for pricing on prior period open sales 7 7 (1) (1) 5 Gross profit $ 5,757 $ 3,443 $ 2,203 $ 111 $ 5,757 Copper sales (millions of recoverable pounds) 1,632 1,632 Gold sales (thousands of recoverable ounces) 1,817 Gross profit per pound of copper/per ounce of gold: Revenues, excluding adjustments $ 4.19 $ 4.19 $ 2,418 Site production and delivery, before net noncash and other costs shown below 1.64 0.98 566 By-product credits (2.82) — — Treatment charges 0.35 0.21 120 Export duties 0.28 0.17 96 Royalty on metals 0.27 0.16 92 Unit net cash (credits) costs (0.28) 1.52 874 DD&A 0.73 0.44 252 Noncash and other costs, net 0.22 b,c 0.13 77 Total unit costs 0.67 2.09 1,203 Other revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 (2) Gross profit per pound/ounce $ 3.53 $ 2.11 $ 1,213 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 11,449 $ 2,681 $ 1,193 Treatment charges (245) 326 d — Export duties (457) — — Royalty on metals (433) — — Noncash and other costs, net — 362 — Other revenue adjustments, primarily for pricing on prior period open sales 5 — — Eliminations and other (1) (1) — Indonesia operations 10,318 3,368 1,193 Other mining e 21,259 17,874 990 Corporate, other & eliminations f (6,122) (5,688) 58 As reported in our consolidated financial statements $ 25,455 $ 15,554 $ 2,241 a.
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.
Discussion of the results of operations for the year 2023 and comparisons between the years 2024 and 2023 are not included in this Form 10-K and can be found in Items 7. and 7A.
Because certain assets are depreciated on a straight-line basis, North America’s average unit depreciation rate may vary with asset additions and the level of copper production and sales. Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods.
Because certain assets are depreciated on a straight-line basis, South America’s unit depreciation rate may vary with asset additions and the level of copper production and sales. Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods.
“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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for further discussion of our consolidated income taxes.
We have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next twelve months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable) and any share or debt repurchases.
We expect to have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next 12 months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable) and any share or debt repurchases.
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).
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 108 the balance to debt reduction and investments in value enhancing growth projects, subject to us maintaining our net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding debt for PTFI’s downstream processing facilities).
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.
Item 6. Reserved. 81 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.
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.
At December 31, 2025, estimated consolidated recoverable copper was 1.4 billion pounds in leach stockpiles (with a carrying value of $2.2 billion) and 0.2 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.
In addition to technology-driven leaching initiatives, we are pursuing opportunities to leverage new technologies and analytic tools in automation and operating practices with a goal of improving operating efficiencies, and reducing costs and capital intensity of our current operations and future development projects.
In addition to our innovative leaching initiatives, we are pursuing opportunities to leverage new technologies and analytic tools in automation and operating practices with a goal of improving operating efficiencies and reducing costs and capital intensity of our current operations and future development projects.
CONTINGENCIES Environmental Obligations and AROs Refer to Note 10 and “Critical Accounting Estimates,” 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 about contingencies associated with environmental matters and AROs.
CONTINGENCIES Environmental Obligations and AROs Refer to Note 10 and “Critical Accounting Estimates,” 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, 2025, for further discussion about contingencies associated with environmental matters and AROs.
Represents the combined total for our other mining operations as presented in Note 14. 109 Table of Contents South America Operations Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2024 (In millions) By-Product Co-Product Method Method Copper Other a Total Revenues, excluding adjustments $ 4,894 $ 4,894 $ 446 $ 5,340 Site production and delivery, before net noncash and other costs shown below 3,094 b 2,865 281 3,146 By-product credits (394) — — — Treatment charges 193 193 — 193 Royalty on metals 8 7 1 8 Net cash costs 2,901 3,065 282 3,347 DD&A 446 409 37 446 Noncash and other costs, net 87 c 85 2 87 Total costs 3,434 3,559 321 3,880 Other revenue adjustments, primarily for pricing on prior period open sales 32 33 (1) 32 Gross profit $ 1,492 $ 1,368 $ 124 $ 1,492 Copper sales (millions of recoverable pounds) 1,177 1,177 Gross profit per pound of copper: Revenues, excluding adjustments $ 4.16 $ 4.16 Site production and delivery, before net noncash and other costs shown below 2.63 b 2.43 By-product credits (0.34) — Treatment charges 0.16 0.16 Royalty on metals 0.01 0.01 Unit net cash costs 2.46 2.60 DD&A 0.38 0.35 Noncash and other costs, net 0.08 c 0.07 Total unit costs 2.92 3.02 Other revenue adjustments, primarily for pricing on prior period open sales 0.03 0.03 Gross profit per pound $ 1.27 $ 1.17 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 5,340 $ 3,146 $ 446 Treatment charges (193) — — Royalty on metals (8) — — Noncash and other costs, net — 87 — Other revenue adjustments, primarily for pricing on prior period open sales 32 — — Eliminations and other — (3) — South America operations 5,171 3,230 446 Other mining d 26,406 18,012 1,737 Corporate, other & eliminations (6,122) (5,688) 58 As reported in our consolidated financial statements $ 25,455 $ 15,554 $ 2,241 a.
Represents Corporate, other & eliminations as presented in “Business Divisions and Segments.” 116 South America Operations Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2024 (In millions) By-Product Co-Product Method Method Copper Other a Total Revenues, excluding adjustments $ 4,894 $ 4,894 $ 446 $ 5,340 Site production and delivery, before net noncash and other costs shown below 3,094 b 2,865 281 3,146 By-product credits (394) — — — Treatment charges 193 193 — 193 Royalty on metals 8 7 1 8 Net cash costs 2,901 3,065 282 3,347 DD&A 446 409 37 446 Noncash and other costs, net 87 c 85 2 87 Total costs 3,434 3,559 321 3,880 Other revenue adjustments, primarily for pricing on prior period open sales 32 33 (1) 32 Gross profit $ 1,492 $ 1,368 $ 124 $ 1,492 Copper sales (millions of recoverable pounds) 1,177 1,177 Gross profit per pound of copper: Revenues, excluding adjustments $ 4.16 $ 4.16 Site production and delivery, before net noncash and other costs shown below 2.63 b 2.43 By-product credits (0.34) — Treatment charges 0.16 0.16 Royalty on metals 0.01 0.01 Unit net cash costs 2.46 2.60 DD&A 0.38 0.35 Noncash and other costs, net 0.08 c 0.07 Total unit costs 2.92 3.02 Other revenue adjustments, primarily for pricing on prior period open sales 0.03 0.03 Gross profit per pound $ 1.27 $ 1.17 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 5,340 $ 3,146 $ 446 Treatment charges (193) — — Royalty on metals (8) — — Noncash and other costs, net — 87 — Other revenue adjustments, primarily for pricing on prior period open sales 32 — — Eliminations and other — (3) — South America operations 5,171 3,230 446 Other mining d 26,406 18,012 1,737 Corporate, other & eliminations e (6,122) (5,688) 58 As reported in our consolidated financial statements $ 25,455 $ 15,554 $ 2,241 a.
Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00 per pound. The decision of whether to proceed and timing of the potential project will take into account overall copper market conditions, required permitting and other factors. Operating Data .
Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00 per pound. The decision to proceed with and timing of the potential project will take into account overall copper market conditions, required permitting and other factors.
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.
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.
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.
The impact of price changes on consolidated unit net cash costs for the year 2026 would approximate $0.03 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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025.
Our North America copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery. We defer recognizing profits on sales from our mining operations to Atlantic Copper until final sales to third parties occur.
Our U.S. copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery. We defer recognizing profits on sales from our mining operations to Atlantic Copper until final sales to third parties occur.
Estimates of future cash flows are derived from current business plans, which are developed using near-term metal price forecasts reflective of the current price environment and management’s projections for long-term average metal prices.
Estimates of future cash flows are derived from current business plans, which are developed using near-term metal price forecasts reflective of the current price environment and management’s projections for long-term average 89 Table of Contents metal prices.
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 .
Refer to “Disclosures About Market Risks – Commodity Price Risk” for further discussion of our provisionally priced copper sales, and to Notes 12 and 14 for a summary of total adjustments to prior period and current period provisionally priced copper sales. Atlantic Copper Revenues .
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.
At December 31, 2025, AROs recorded in our consolidated balance sheet totaled $3.8 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.
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.
Average unit net cash costs (net of by-product credits) for South America operations are expected to approximate $2.58 per pound of copper for the year 2026, based on achievement of current sales volume and cost estimates and assuming an average price of $20.00 per pound of molybdenum.
Accounting for environmental obligations represents a critical accounting estimate because (i) changes to environmental laws and regulations and/or circumstances affecting our operations could result in significant changes to our estimates, which could have a significant impact on our results of operations, (ii) we will not incur most of these costs for a number of years, requiring us to make estimates over a long period, (iii) calculating the discounted cash flows for certain of our environmental obligations requires management to estimate the amounts and timing of projected cash flows and make long-term assumptions about inflation rates and (iv) changes in estimates used in determining our environmental obligations could have a significant impact on our results of operations.
Accounting for environmental obligations represents a critical accounting estimate because (i) changes to environmental laws and regulations and/or circumstances affecting our operations could result in changes to our estimates, which could have a significant impact on our results of operations, (ii) we will not incur most of these costs for a number of years, requiring us to make estimates over a long period, (iii) calculating the discounted cash flows for environmental obligations assumed in the 2007 acquisition of Freeport Minerals Corporation requires management to estimate the amounts and timing of projected cash flows and make long-term assumptions about inflation rates and (iv) changes in estimates used in determining our environmental obligations could have a significant impact on our results of operations.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 99 Table of Contents Gross Profit per Pound of Copper and per Ounce of Gold The following table summarizes the unit net cash (credits) costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the two years ended December 31, 2024.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 105 Gross Profit per Pound of Copper and per Ounce of Gold The following table summarizes the unit net cash (credits) costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the two years ended December 31, 2025.
For 2025, we expect to incur approximately $0.6 billion of aggregate environmental capital expenditures and other environmental costs and $0.2 billion in aggregate ARO expenditures. Leases Refer to Note 11, 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 information about lease commitments.
For 2026, we expect to incur approximately $0.7 billion of aggregate environmental capital expenditures and other environmental costs and $0.2 billion in aggregate ARO expenditures. 110 Leases Refer to Note 11, and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for information about lease commitments.
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.
We record revenues and invoice customers at the time of shipment based on then-current LME prices for copper or London PM prices for gold, which results in an embedded derivative on provisionally priced sales that is adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement.
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.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 101 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, 2025.
Uncertainty in a tax position may arise because tax laws are subject to interpretation. We use significant judgment to (1) determine whether, based on the technical merits, a tax position is more likely than not to be sustained upon examination by taxing authorities and (2) measure the amount of tax benefit that qualifies for recognition.
Uncertainty in a tax position may arise because tax laws are subject to interpretation. We use judgment to (i) determine whether, based on the technical merits, a tax position is more likely than not to be sustained upon examination by taxing authorities and (ii) measure the amount of tax benefit that qualifies for recognition.
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.
Indonesia PTFI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. PTFI produces copper concentrate that contains significant quantities of gold and silver. We have a 48.76% ownership interest in PTFI and manage its operations. PTFI's results are consolidated in our financial statements.
“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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for further discussion regarding, and risks associated with, impairment of long-lived mining assets.
We estimate that each $0.05 change in the price realized from the December 31, 2024, provisional price recorded would have an approximate $12 million effect on 2025 revenues ($4 million to net income attributable to common stock). The LME copper settlement price closed at $4.25 per pound on February 13, 2025.
We estimate that each $0.05 change in the price realized from the December 31, 2025, provisional price recorded would have an approximate $13 million effect on 2026 revenues ($5 million to net income attributable to common stock). The LME copper settlement price closed at $5.97 per pound on February 12, 2026.
Reflects the estimated impact on annual operating costs assuming a 10% increase or decrease in the exchange rate reported at December 31, 2024. b. Based on exchange rates at December 31, 2024. Interest Rate Risk At December 31, 2024, we had total future debt maturities based on principal amounts of $9.0 billion, of which 97% was fixed-rate debt.
Reflects the estimated impact on annual operating costs assuming a 10% increase or decrease in the exchange rate reported at December 31, 2025. b. Based on exchange rates at December 31, 2025. Interest Rate Risk At December 31, 2025, we had total future debt maturities based on principal amounts of $9.4 billion, of which 93% was fixed-rate debt.
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).
Estimated consolidated operating cash flows in 2026 also reflect a projected income tax provision of $2.7 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate).
“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 holding company structure and the potential impact of changes in tax laws. 103 Table of Contents Debt At December 31, 2024, consolidated debt totaled $8.9 billion, with a weighted-average interest rate of 5.2%.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for further discussion of our holding company structure and the potential impact of changes in tax laws. Debt At December 31, 2025, consolidated debt totaled $9.4 billion, with a weighted-average interest rate of 5.2%.
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. 107 Table of Contents North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2024 (In millions) By-Product Co-Product Method Method Copper Molybdenum a Other b Total Revenues, excluding adjustments $ 5,417 $ 5,417 $ 608 $ 186 $ 6,211 Site production and delivery, before net noncash and other costs shown below 4,362 3,911 489 152 4,552 By-product credits (604) — — — — Treatment charges 169 161 — 8 169 Net cash costs 3,927 4,072 489 160 4,721 DD&A 439 394 36 9 439 Noncash and other costs, net 235 c 222 11 2 235 Total costs 4,601 4,688 536 171 5,395 Gross profit $ 816 $ 729 $ 72 $ 15 $ 816 Copper sales (millions of recoverable pounds) 1,263 1,263 Molybdenum sales (millions of recoverable pounds) a 30 Gross profit per pound of copper/molybdenum: Revenues, excluding adjustments $ 4.29 $ 4.29 $ 20.13 Site production and delivery, before net noncash and other costs shown below 3.46 3.10 16.20 By-product credits (0.48) — — Treatment charges 0.13 0.12 — Unit net cash costs 3.11 3.22 16.20 DD&A 0.34 0.31 1.19 Noncash and other costs, net 0.19 c 0.18 0.36 Total unit costs 3.64 3.71 17.75 Gross profit per pound $ 0.65 $ 0.58 $ 2.38 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 6,211 $ 4,552 $ 439 Treatment charges (4) 165 — Noncash and other costs, net — 235 — Eliminations and other 33 44 — North America copper mines 6,240 4,996 439 Other mining d 25,337 16,246 1,744 Corporate, other & eliminations (6,122) (5,688) 58 As reported in our consolidated financial statements $ 25,455 $ 15,554 $ 2,241 a.
Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs Year Ended December 31, 2024 (In millions) By-Product Co-Product Method Method Copper Molybdenum a Other b Total Revenues $ 5,417 $ 5,417 $ 608 $ 186 $ 6,211 Site production and delivery, before net noncash and other costs shown below 4,362 3,911 489 152 4,552 By-product credits (604) — — — — Treatment charges 169 161 — 8 169 Net cash costs 3,927 4,072 489 160 4,721 DD&A 439 394 36 9 439 Noncash and other costs, net 235 c 222 11 2 235 Total costs 4,601 4,688 536 171 5,395 Gross profit $ 816 $ 729 $ 72 $ 15 $ 816 Copper sales (millions of recoverable pounds) 1,263 1,263 Molybdenum sales (millions of recoverable pounds) a 30 Gross profit per pound of copper/molybdenum: Revenues $ 4.29 $ 4.29 $ 20.13 Site production and delivery, before net noncash and other costs shown below 3.46 3.10 16.20 By-product credits (0.48) — — Treatment charges 0.13 0.12 — Unit net cash costs 3.11 3.22 16.20 DD&A 0.34 0.31 1.19 Noncash and other costs, net 0.19 c 0.18 0.36 Total unit costs 3.64 3.71 17.75 Gross profit per pound $ 0.65 $ 0.58 $ 2.38 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 6,211 $ 4,552 $ 439 Treatment charges (4) 165 — Noncash and other costs, net — 235 — Eliminations and other 33 44 — U.S. copper mines 6,240 4,996 439 Other mining d 25,337 16,246 1,744 Corporate, other & eliminations e (6,122) (5,688) 58 As reported in our consolidated financial statements $ 25,455 $ 15,554 $ 2,241 a.
Based on achievement of current sales volume and cost estimates and assuming average prices of $4.00 per pound of copper, $2,700 per ounce of gold and $20.00 per pound of molybdenum for the year 2025, we estimate that net income attributable to noncontrolling interests will approximate $2.3 billion for the year 2025.
Based on achievement of current sales volume and cost estimates and assuming average prices of $5.00 per pound of copper, $4,000 per ounce of gold and $20.00 per pound of molybdenum for the year 2026, we estimate that net income attributable to noncontrolling interests will approximate $2.4 billion for the year 2026.
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.
Net favorable adjustments to prior years’ provisionally priced copper sales ( i.e., provisionally priced copper sales at December 31, 2024 and 2023) recorded in consolidated revenues totaled $63 million in 2025 and $28 million in 2024.
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.
Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the United States (U.S.) and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.
Certain sales contracts for copper and gold provide final pricing in a specified future month (generally one to four months from the shipment date).
As discussed in Note 12, certain sales contracts for copper and gold provide final pricing in a specified future month (generally one to four months from the shipment date).
Refer to 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 financial risks associated with fluctuations in the market prices of the commodities we sell. During 2024, our mined copper was sold 45% in concentrate, 34% as cathode and 21% as rod.
Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, for further discussion of financial risks associated with fluctuations in the market prices of the commodities we sell. During 2025, our mined copper was sold 43% in concentrate, 33% as cathode and 24% as rod.
Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to operating income totaling $21 million ($(3) million to net income attributable to common stock or less than $0.01 per share) in 2024 and $64 million ($37 million to net income attributable to common stock or $0.03 per share) in 2023. d.
Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to operating income totaling $118 million ($44 million to net income attributable to common stock or $0.03 per share) in 2025 and $21 million ($(3) million to net income attributable to common stock or less than $0.01 per share) in 2024. d.
Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements. Smelting and Refining Through our downstream integration, we are able to assure placement of a significant portion of our copper concentrate production.
Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements. Downstream Processing Facilities Through our downstream integration, we are able to place a significant portion of our copper concentrate production.
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.
Refer to “Outlook” for projected molybdenum sales volumes. Unit Net Cash Costs . We believe unit net cash costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations.
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.
This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies. 99 Gross Profit per Pound of Copper and Molybdenum The following table summarizes unit net cash costs and gross profit per pound at our U.S. copper mines for the two years ended December 31, 2025.
Includes $1.1 billion for planned projects, primarily associated with underground mine development, supporting mill and power capital costs and a portion of spending on a new gas-fired combined cycle facility in the Grasberg minerals district, and expansion projects in North America, and $1.7 billion for discretionary growth projects, primarily in the Grasberg minerals district for the development of Kucing Liar and at the Bagdad mine for tailings infrastructure. b.
Includes $1.4 billion for planned projects, primarily associated with underground mine development, supporting mill and power capital costs and a portion of spending on a new gas-fired combined cycle facility in the Grasberg minerals district, and potential U.S. expansion projects, and $1.6 billion for discretionary growth projects, primarily in the Grasberg minerals district for the development of Kucing Liar and at the Bagdad mine for tailings infrastructure.
Includes favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $28 million ($9 million to net income attributable to common stock or $0.01 per share) in 2024 and $183 million ($62 million to net income attributable to common stock or $0.04 per share) in 2023 (refer to Note 12). c.
Includes favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $63 million ($21 million to net income attributable to common stock or $0.01 per share) in 2025 and $28 million ($9 million to net income attributable to common stock or $0.01 per share) in 2024 (refer to Note 12). c.
The volumes of copper purchases vary depending on cathode production from our operations and totaled 158 million pounds in 2024 and 103 million pounds in 2023. Revenues associated with the sale of purchased copper vary with the volume of copper purchases and changes in copper prices. Treatment Charges .
The volumes of copper purchases vary depending on cathode production from our operations and totaled 127 million pounds in 2025 and 158 million pounds in 2024. Revenues associated with the sale of purchased copper vary with the volume of copper purchases and changes in copper prices.
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.
“Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2025, 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, 2025.
Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde. Our consolidated copper production and sales volumes from our South America operations in 2024 were slightly lower than 2023 volumes, primarily reflecting lower operating rates, offset by higher ore grades.
Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the Cerro Verde mine. Our consolidated copper production and sales volumes from our South America operations in 2025 were lower than 2024 volumes, primarily reflecting lower ore grades and operating rates.
Average unit net cash costs for the Molybdenum mines are expected to approximate $15.20 per pound of molybdenum for the year 2025, based on achievement of current sales volumes and cost estimates.
Average unit net cash costs for the Molybdenum mines are expected to approximate $16.60 per pound of molybdenum for the year 2026, based on achievement of current sales volumes and cost estimates.
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.
Reflects sales of molybdenum produced by certain of the U.S. copper mines to our molybdenum sales company at market-based pricing. b. Includes gold and silver product revenues and production costs. c. Includes charges totaling $62 million ($0.05 per pound of copper) for feasibility and optimization studies.
Environmental Obligations and Shutdown Costs Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates (refer to “Critical Accounting Estimates – Environmental Obligations” for further discussion).
Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates.

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