fcx-20220721

Freeport-McMoRan

Reports Second-Quarter and Six-Month 2022 Results

•Solid operational results, with strong margins and cash flows

•Second-quarter 2022 copper and gold sales volumes were above April 2022 guidance by 5% and 18%, respectively, and above second-quarter 2021 by 17% and 56%, respectively

•Unit net cash costs in line with April 2022 guidance

•Strong balance sheet, liquidity and financial flexibility

•Significant debt retirements through open-market transactions

•Increase in share repurchase authorization

▪Net income attributable to common stock in second-quarter 2022 totaled $840 million, $0.57 per share, and adjusted net income attributable to common stock totaled $854 million, $0.58 per share, after excluding net charges totaling $14 million, $0.01 per share.

▪Consolidated sales totaled 1.1 billion pounds of copper, 476 thousand ounces of gold and 20 million pounds of molybdenum in second-quarter 2022. Consolidated sales for the year 2022 are expected to approximate 4.2 billion pounds of copper, 1.7 million ounces of gold and 80 million pounds of molybdenum, including 1.0 billion pounds of copper, 400 thousand ounces of gold and 21 million pounds of molybdenum in third-quarter 2022.

▪Average realized prices in second-quarter 2022 were $4.03 per pound for copper, $1,827 per ounce for gold and $19.44 per pound for molybdenum.

▪Average unit net cash costs in second-quarter 2022 were $1.41 per pound of copper and are expected to average $1.50 per pound of copper for the year 2022.

▪Operating cash flows totaled $1.6 billion (including $0.1 billion of working capital and other sources) in second-quarter 2022 and $3.3 billion (net of $0.7 billion of working capital and other uses) for the first six months of 2022. Based on current sales volume and cost estimates, and assuming average prices of $3.25 per pound for copper, $1,700 per ounce for gold and $16.00 per pound for molybdenum for the second half of 2022, operating cash flows are expected to approximate $4.5 billion (net of $1.4 billion of working capital and other uses) for the year 2022.

▪Capital expenditures totaled $0.9 billion (including $0.4 billion for major mining projects and $0.2 billion for the Indonesia smelter projects) in second-quarter 2022 and $1.6 billion (including $0.8 billion for major mining projects and $0.3 billion for the Indonesia smelter projects) for the first six months of 2022. Capital expenditures for the year 2022 are expected to approximate $4.5 billion ($3.1 billion excluding the Indonesia smelter projects), including $1.9 billion for major mining projects.

▪In April 2022, PT Freeport Indonesia (PT-FI) completed the sale of $3.0 billion of unsecured senior notes, with a weighted-average interest rate of 5.4 percent. Net proceeds are expected to be used to finance the Indonesia smelter projects.

▪Through July 20, 2022, FCX purchased $754 million aggregate principal amount of its senior notes in open-market transactions for a total cost of $718 million (including $582 million aggregate principal amount in second-quarter 2022).

▪Through July 20, 2022, FCX has acquired 47.9 million shares of its common stock for a total cost of $1.8 billion ($38.35 average cost per share) under the share repurchase program, including 35.1 million shares for a total cost of $1.3 billion ($38.36 average cost per share) during 2022. In July 2022, the FCX Board of Directors (the Board) authorized an increase in the share repurchase program from $3.0 billion to up to $5.0 billion.

▪At June 30, 2022, consolidated debt totaled $11.1 billion and consolidated cash and cash equivalents totaled $9.5 billion, resulting in net debt of $1.6 billion ($1.0 billion excluding net debt for the Indonesia smelter projects). Refer to the supplemental schedule, "Net Debt," on page IX.




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PHOENIX, AZ, July 21, 2022 - Freeport-McMoRan Inc. (NYSE: FCX) reported second-quarter 2022 net income attributable to common stock of $840 million, $0.57 per share, and adjusted net income attributable to common stock of $854 million, $0.58 per share, after excluding net charges totaling $14 million, $0.01 per share. For additional information, refer to the supplemental schedule, "Adjusted Net Income," on page VII.

Richard C. Adkerson, Chairman and Chief Executive Officer, said, "FCX is in a position of strength as we navigate the current global market uncertainties. The actions we have taken in recent years to build a strong balance sheet, successfully expand low-cost operations, and maintain flexible growth options will allow us to manage the current market situation in an effective manner while preserving substantial future asset values. Despite near-term uncertainties, the long-term market fundamentals and value opportunities for our stakeholders remain extraordinarily favorable. I am confident in our strategy centered on being Foremost in Copper. Our assets are valuable and scarce. The future prospects for our markets, the quality of our assets and the experience of our team will enable us to deliver substantial value as global conditions improve."

SUMMARY FINANCIAL DATA


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in millions, except per share amounts)
Revenuesa,b	$	5,416	$	5,748	$	12,019	$	10,598
Operating incomea	$	1,736	$	2,067	$	4,545	$	3,599


Net income attributable to common stockc,d	$	840	$	1,083	$	2,367	$	1,801
Diluted net income per share of common stock	$	0.57	$	0.73	$	1.61	$	1.21

Diluted weighted-average common shares outstanding	1,457		1,483		1,463		1,480
Operating cash flowse	$	1,621	$	2,395	$	3,312	$	3,470
Capital expenditures	$	863	$	433	$	1,586	$	803
At June 30:
Cash and cash equivalents	$	9,492	$	6,313	$	9,492	$	6,313
Total debt, including current portion	$	11,092	$	9,695	$	11,092	$	9,695

a.For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page X.

b.Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(355) million ($(154) million to net income attributable to common stock or $(0.10) per share) in second-quarter 2022, $173 million ($66 million to net income attributable to common stock or $0.05 per share) in second-quarter 2021, $65 million ($27 million to net income attributable to common stock or $0.02 per share) for the first six months of 2022 and $169 million ($65 million to net income attributable to common stock or $0.04 per share) for the first six months of 2021. For further discussion, refer to the supplemental schedule, "Derivative Instruments," on page IX.

c.Includes net charges totaling $14 million ($0.01 per share) in second-quarter 2022, $56 million ($0.04 per share) in second-quarter 2021, $52 million ($0.04 per share) for the first six months of 2022 and $94 million ($0.06 per share) for the first six months of 2021 that are described in the supplemental schedule, "Adjusted Net Income," on page VII.

d.FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page X.

e.Working capital and other sources (uses) totaled $100 million in second-quarter 2022, $523 million in second-quarter 2021, $(711) million for the first six months of 2022 and $187 million for the first six months of 2021.




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SUMMARY OPERATING DATA


	Three Months Ended June 30,					Six Months Ended June 30,
	2022		2021			2022		2021
Copper (millions of recoverable pounds)
Production	1,075		913			2,084		1,823
Sales, excluding purchases	1,087		929			2,111		1,754
Average realized price per pound	$	4.03	$	4.34		$	4.18	$	4.25
Site production and delivery costs per pounda	$	2.09	$	2.02	b	$	2.06	$	1.94	b
Unit net cash costs per pounda	$	1.41	$	1.48		$	1.37	$	1.44
Gold (thousands of recoverable ounces)
Production	476		305			891		602
Sales	476		305			885		563
Average realized price per ounce	$	1,827	$	1,794		$	1,861	$	1,785
Molybdenum (millions of recoverable pounds)
Production	23		20			44		40
Sales, excluding purchases	20		22			39		43
Average realized price per pound	$	19.44	$	13.11		$	19.37	$	12.38

a.Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit net cash costs (credits) by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII.

b.Includes $0.07 per pound of copper in second-quarter 2021 and $0.04 per pound of copper for the first six months of 2021 associated with nonrecurring labor-related charges at Cerro Verde. Refer to the supplemental schedule, "Adjusted Net Income," on page VII.

Market Conditions

The London Metal Exchange (LME) copper settlement price averaged $4.43 per pound in the first six months of 2022 and reached a high of $4.87 per pound in March 2022, supported by copper's increasingly important role in decarbonization technologies and limited mine supply. Many analysts projected a multi-year period of rising prices associated with secular growth in metals demand required for clean energy technologies. Beginning in second-quarter 2022, a series of macro-economic factors (concerns about the global economy, higher United States (U.S.) interest rates and currency exchange rates) led to a precipitous decline in copper prices. The LME copper settlement price declined from approximately $4.70 per pound at the start of second-quarter 2022 to $3.74 per pound at June 30, 2022, and settled at $3.34 per pound on July 20, 2022.

Physical market fundamentals remain tight as evidenced by low levels of global exchange stocks. FCX's global customer base reports healthy demand for copper. The outlook for copper fundamentals in the medium- and long-term remain extraordinarily favorable, with demand for copper expected to double over the next 10 to 15 years. Substantial new mine supply development will be required to meet the goals of the global energy transition, and current prices for copper are insufficient to support new mine supply development, which is expected to add to future supply deficits.

The FCX management team and global organization have substantial experience and success in executing under volatile market conditions. FCX benefits from a diversified portfolio of operations with an attractive cost structure, long-lived reserves, optionality in its project pipeline and a strong balance sheet and liquidity position.

FCX closely monitors market conditions and will adjust its operating plans if required. FCX will maintain a strong balance sheet and liquidity position as it focuses on building long-term value in its business, executing its operating plans safely, responsibly and efficiently, and prudently manage costs and capital expenditures. FCX will opportunistically use excess cash to repurchase its debt and equity securities. Refer to FCX's Financial Policy beginning on page 10.

FCX is realistic about near-term uncertain market conditions. FCX is steadfast in its optimism about its portfolio of assets, its strong management and operating team, and the long-term prospects for the copper markets it serves.




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Responsible Production

2021 Annual Report on Sustainability. In April 2022, FCX published its 2021 Annual Report on Sustainability, available on FCX's website at fcx.com/sustainability. FCX has a long history of environmental, social and governance (ESG) programs and is focused on leading as a responsible copper producer.

The Copper Mark. FCX is committed to validating all of its copper producing sites with the Copper Mark, a comprehensive assurance framework designed to demonstrate the copper industry's responsible production practices. To achieve the Copper Mark, each site is required to complete an external assurance process to assess conformance with 32 ESG requirements. During second-quarter 2022, FCX's Safford and Sierrita sites were awarded the Copper Mark. To date, FCX has achieved the Copper Mark at all 11 of its eligible copper producing sites in North America, South America and Europe; and PT-FI has signed a letter of commitment and initiated the validation process.

Consolidated Sales Volumes

Second-quarter 2022 copper sales of 1.1 billion pounds were 5 percent higher than the April 2022 estimate of 1.0 billion pounds of copper, primarily reflecting timing of shipments and strong operating performance. Second-quarter 2022 copper sales were 17 percent higher than second-quarter 2021 sales of 929 million pounds of copper, primarily reflecting increased operating rates at the Grasberg minerals district and Cerro Verde.

Second-quarter 2022 gold sales of 476 thousand ounces were 18 percent higher than the April 2022 estimate of 405 thousand ounces of gold, primarily reflecting higher recoveries and milling rates. Second-quarter 2022 gold sales were 56 percent higher than second-quarter 2021 sales of 305 thousand ounces, primarily reflecting increased operating rates at the Grasberg minerals district.

Second-quarter 2022 molybdenum sales of 20 million pounds were lower than the April 2022 estimate of 21 million pounds and second-quarter 2021 sales of 22 million pounds, primarily reflecting timing of shipments.

Consolidated sales volumes for the year 2022 are expected to approximate 4.2 billion pounds of copper, 1.7 million ounces of gold and 80 million pounds of molybdenum, including 1.0 billion pounds of copper, 400 thousand ounces of gold and 21 million pounds of molybdenum in third-quarter 2022. Projected sales volumes are dependent on operational performance, weather-related conditions, timing of shipments and other factors detailed in the Cautionary Statement below.

Consolidated Unit Net Cash Costs

Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $1.41 per pound of copper in second-quarter 2022 were in line with the April 2022 estimate, with the impact of higher sales volumes and by-product credits being offset by higher energy and other input costs; and five percent below the second-quarter 2021 average of $1.48 per pound, primarily reflecting higher sales volumes and by-product credits, partly offset by higher mining, energy and other input costs. Second-quarter 2021 unit net cash costs also included nonrecurring labor-related charges at Cerro Verde ($0.07 per pound).

Assuming average prices of $1,700 per ounce of gold and $16.00 per pound of molybdenum for the second half of 2022 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for FCX's copper mines are expected to average $1.50 per pound of copper for the year 2022. The impact of price changes during the second half of 2022 on consolidated unit net cash costs for the year 2022 would approximate $0.02 per pound of copper for each $100 per ounce change in the average price of gold and $0.01 per pound of copper for each $2 per pound change in the average price of molybdenum. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum.

MINING OPERATIONS

North America Copper Mines. FCX operates seven open-pit copper mines in North America - Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. In addition to copper, certain of these mines produce molybdenum concentrate, gold and silver. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 72 percent undivided joint venture interest in Morenci using the proportionate consolidation method.




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Operating and Development Activities. FCX has substantial reserves and future opportunities in the U.S., primarily associated with existing mining operations.

FCX continues to pursue technologies to recover additional copper from its large existing leach stockpiles. FCX has several initiatives ongoing across its North America and South America footprint incorporating new applications, technologies and data analytics. Initial results support the potential for incremental low-cost and low-carbon additions to FCX's production and reserve profile.

Lone Star is increasing its operating rates to achieve production of 300 million pounds of copper per year from oxide ores (compared with the initial design capacity of 200 million pounds per year). The oxide project at Lone Star advances the opportunity for development of the underlying, large-scale sulfide resources. FCX is also increasing exploration in the area to support metallurgical testing and mine development planning for a potential significant long-term investment to build additional scale on an economically attractive basis.

FCX is planning an expansion to double the concentrator capacity of the Bagdad operation in northwest Arizona. FCX is engaging stakeholders and has commenced a feasibility study, which is expected to be completed in 2023, for this project.

Operating Data. Following is summary consolidated operating data for the North America copper mines:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Copper (millions of recoverable pounds)
Production	382		360		736		713
Sales, excluding purchases	389		389		770		697
Average realized price per pound	$	4.36	$	4.42	$	4.46	$	4.19

Molybdenum (millions of recoverable pounds)
Productiona	8		9		15		17

Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments	$	2.50	$	2.14	$	2.44	$	2.09
By-product credits	(0.35)		(0.25)		(0.35)		(0.27)
Treatment charges	0.11		0.08		0.10		0.09
Unit net cash costs	$	2.26	$	1.97	$	2.19	$	1.91

a.Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which include sales of molybdenum produced at the North America copper mines.

b.For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII.

FCX's consolidated copper sales volumes from North America totaled 389 million pounds in second-quarter 2022 and second-quarter 2021. North America copper sales are estimated to approximate 1.5 billion pounds for the year 2022.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $2.26 per pound of copper in second-quarter 2022 were higher than second-quarter 2021 unit net cash costs of $1.97 per pound, primarily reflecting higher mining and milling rates and higher energy and other input costs, partly offset by higher by-product credits.

Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $2.25 per pound of copper for the year 2022, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $16.00 per pound for the second half of 2022. North America's average unit net cash costs for the year 2022 would change by approximately $0.02 per pound for each $2 per pound change in the average price of molybdenum for the second half of 2022.




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South America Mining. FCX operates two copper mines in South America - Cerro Verde in Peru (in which FCX owns a 53.56 percent interest) and El Abra in Chile (in which FCX owns a 51 percent interest). These operations are consolidated in FCX's financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.

Operating and Development Activities. During second-quarter 2022, milling rates at Cerro Verde's concentrator facilities set a quarterly record averaging 427,100 metric tons of ore per day. Subject to ongoing monitoring of COVID-19 protocols, milling rates at Cerro Verde are currently expected to average over 400,000 metric tons of ore per day for the second half of 2022.

Operating rates at El Abra have returned to pre-COVID-19 levels and increased mining and stacking activities are expected to result in an approximate 30 percent increase in El Abra copper production for the year 2022, compared with the year 2021.

El Abra's large sulfide resource supports a potential major mill project similar to the large-scale concentrator constructed at Cerro Verde in 2015. Technical and economic studies continue to be evaluated to determine the optimal scope and timing for the sulfide project. FCX is considering options to invest in water infrastructure to provide options to extend existing operations, while continuing to monitor potential changes in Chile's regulatory and fiscal matters. FCX will defer major investment decisions pending clarity on Chile's regulatory and fiscal matters.

Operating Data. Following is summary consolidated operating data for South America mining:


	Three Months Ended June 30,					Six Months Ended June 30,
	2022		2021			2022		2021
Copper (millions of recoverable pounds)
Production	286		245			560		504
Sales	288		230			552		489
Average realized price per pound	$	3.83	$	4.31		$	4.00	$	4.28






Molybdenum (millions of recoverable pounds)
Productiona	7		4			14		9

Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments	$	2.48	$	2.48	c	$	2.45	$	2.23	c
By-product credits	(0.35)		(0.31)			(0.38)		(0.26)
Treatment charges	0.15		0.13			0.15		0.13
Royalty on metals	0.01		0.01			0.01		0.01
Unit net cash costs	$	2.29	$	2.31		$	2.23	$	2.11

a.Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which include sales of molybdenum produced at Cerro Verde.

c.Includes $0.30 per pound of copper in second-quarter 2021 and $0.14 per pound of copper for the first six months of 2021 associated with nonrecurring labor-related charges at Cerro Verde. Refer to the supplemental schedule, "Adjusted Net Income," on page VII.

FCX's consolidated copper sales volumes from South America of 288 million pounds in second-quarter 2022 were higher than second-quarter 2021 copper sales volumes of 230 million pounds, primarily reflecting higher mining and milling rates at Cerro Verde.

Copper sales from South America mining are expected to approximate 1.2 billion pounds for the year 2022.

Average unit net cash costs (net of by-product credits) for South America mining of $2.29 per pound of copper in second-quarter 2022 were lower than second-quarter 2021 unit net cash costs of $2.31, primarily reflecting nonrecurring labor-related charges at Cerro Verde in second-quarter 2021 and higher sales volumes, partly offset by a change in estimate of copper recoveries in stockpiles at El Abra and higher energy and other input costs. Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate




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$2.31 per pound of copper for the year 2022, based on current sales volume and cost estimates and assuming an average price of $16.00 per pound of molybdenum for the second half of 2022.

Indonesia Mining. PT-FI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. FCX has a 48.76 percent ownership interest in PT-FI and manages its mining operations. Under the terms of the 2018 shareholders agreement, FCX’s economic interest in PT-FI approximates 81 percent through 2022, and 48.76 percent thereafter. PT-FI's results are consolidated in FCX's financial statements.

Operating and Development Activities. PT-FI currently has three underground operating mines in the Grasberg minerals district: Grasberg Block Cave, DMLZ and Big Gossan. In late 2021, PT-FI achieved quarterly copper and gold volumes approximating 100 percent of projected annualized levels of approximately 1.6 billion pounds of copper and 1.6 million ounces of gold.

PT-FI's milling rates for ore produced from its underground mines averaged 197,000 metric tons of ore per day in second-quarter 2022, and PT-FI expects milling rates to average approximately 190,000 metric tons of ore per day for the second half of 2022. The installation of additional milling facilities at PT-FI is currently expected to be completed in 2023, which would increase milling capacity to approximately 240,000 metric tons of ore per day and provide for continued annualized copper and gold production volumes of approximately 1.6 billion pounds of copper and 1.6 million ounces of gold. PT-FI is also advancing a mill recovery project with the installation of a new copper cleaner circuit that is expected to be completed in the first half of 2024, and is expected to provide incremental metal production of approximately 60 million pounds of copper and 40 thousand ounces of gold per year.

For the year 2022, PT-FI's estimated capital spending on the Grasberg Block Cave and DMLZ underground projects, including construction of a dual-fuel power plant, is expected to approximate $1.0 billion, net of scheduled contributions from PT Indonesia Asahan Aluminium (Persero) (PT Inalum, also known as MIND ID). In accordance with applicable accounting guidance, the aggregate costs (before scheduled contributions from PT Inalum), expected to approximate $1.2 billion for the year 2022, will be reflected as an investing activity in FCX's cash flow statement and contributions from PT Inalum will be reflected as a financing activity.

Kucing Liar. PT-FI commenced long-term mine development activities for its Kucing Liar deposit during 2021, which is expected to produce over 6 billion pounds of copper and 5 million ounces of gold over the life of the project. Pre-production development activities will occur over an approximate 10-year timeframe, and capital investments are expected to average approximately $400 million per year over the next 10 years. At full operating rates, annual production from Kucing Liar is expected to approximate 600 million pounds of copper and 500 thousand ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production. Kucing Liar will benefit from substantial shared infrastructure and PT-FI's experience and long-term success in block-cave mining.

Indonesia Smelter. In connection with PT-FI’s 2018 agreement with the Indonesia government to secure the extension of its long-term mining rights, PT-FI committed to construct additional domestic smelting capacity totaling 2 million metric tons of concentrate per year by the end of 2023 (subject to force majeure provisions).

PT-FI is actively engaged in the following projects for additional domestic smelting capacity:

•Construction of a greenfield smelter in Gresik, Indonesia with a capacity to process approximately 1.7 million metric tons of copper concentrate per year. In July 2021, PT-FI awarded a construction contract to a third-party contractor with an estimated cost of $2.8 billion. The smelter construction, currently approximately 30 percent complete, is expected to be completed as soon as feasible in 2024.

•Expansion of PT Smelting's capacity by 30 percent to 1.3 million metric tons of concentrate per year, which is expected to be completed by the end of 2023. PT-FI completed agreements in November 2021 with the majority owner of PT Smelting to implement the expansion plans. PT-FI is funding the cost of the expansion, estimated to approximate $250 million, with a loan that will convert to equity, increasing ownership in PT Smelting from a 39.5 percent ownership interest to a majority ownership interest once the expansion is complete.

•Construction of a precious metals refinery (PMR) to process gold and silver from the greenfield smelter and PT Smelting at an estimated cost of $400 million.

During second-quarter 2022, capital expenditures for the greenfield smelter and PMR (collectively, the Indonesia smelter projects) totaled $0.2 billion, and are expected to approximate $1.4 billion for the year 2022.




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Capital expenditures for the Indonesia smelter projects are being funded with PT-FI's senior notes and its available revolving credit facility.

Construction of the additional domestic smelter capacity will result in the elimination of export duties, providing an offset to the economic cost associated with the Indonesia smelter projects. Based on current development progress of additional smelting capacity, PT-FI expects export duties to be reduced from the current rate of 5 percent to 2.5 percent by the end of 2022, and eliminated in the second half of 2023.

Operating Data. Following is summary consolidated operating data for Indonesia mining:



	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Copper (millions of recoverable pounds)
Production	407		308		788		606
Sales	410		310		789		568
Average realized price per pound	$	3.86	$	4.27	$	4.04	$	4.29

Gold (thousands of recoverable ounces)
Production	473		303		885		597
Sales	474		302		880		558
Average realized price per ounce	$	1,827	$	1,795	$	1,861	$	1,785

Unit net cash (credits) costs per pound of coppera
Site production and delivery, excluding adjustments	$	1.43	$	1.54	$	1.42	$	1.51
Gold and silver credits	(2.17)		(1.93)		(2.17)		(1.86)
Treatment charges	0.24		0.24		0.24		0.24
Export duties	0.21		0.14		0.21		0.13
Royalty on metals	0.27		0.26		0.26		0.25
Unit net cash (credits) costs	$	(0.02)	$	0.25	$	(0.04)	$	0.27

a.For a reconciliation of unit net cash (credits) costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII.

PT-FI's consolidated sales of 410 million pounds of copper and 474 thousand ounces of gold in second-quarter 2022 were higher than second-quarter 2021 consolidated sales of 310 million pounds of copper and 302 thousand ounces of gold, primarily reflecting increased operating rates at the Grasberg minerals district. Consolidated sales volumes from PT-FI are expected to approximate 1.5 billion pounds of copper and 1.7 million ounces of gold for the year 2022.

PT-FI's unit net cash credits (including gold and silver credits) of $0.02 per pound of copper in second-quarter 2022 were significantly lower than unit net cash costs of $0.25 per pound in second-quarter 2021, primarily reflecting higher sales volumes, partly offset by higher operating rates, energy and other input costs.

Assuming an average gold price $1,700 per ounce for the second half of 2022 and achievement of current sales volumes and cost estimates, unit net cash costs (net of gold and silver credits) for PT-FI are expected to approximate $0.18 per pound of copper for the year 2022. PT-FI's average unit net cash costs for the year 2022 would change by approximately $0.07 per pound of copper for each $100 per ounce change in the average price of gold for the second half of 2022.

Molybdenum Mines. FCX operates two wholly owned molybdenum mines in Colorado - the Climax open-pit mine and the Henderson underground mine. The Climax and Henderson mines produce high-purity molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the Climax and Henderson mines and at FCX's North America and South America copper mines is processed at FCX's conversion facilities.




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Operating and Development Activities. Production from the molybdenum mines totaled 8 million pounds of molybdenum in second-quarter 2022 and 7 million pounds of molybdenum in second-quarter 2021. FCX's consolidated molybdenum sales and average realized prices include sales of molybdenum produced at the Molybdenum mines and at FCX's North America and South America copper mines, which are presented on page 3.

Average unit net cash costs for the Molybdenum mines of $10.62 per pound of molybdenum in second-quarter 2022 were higher than average unit net cash costs of $8.14 per pound in second-quarter 2021, primarily reflecting higher energy, outside service costs and other input costs and increased development costs at the Henderson mine. Based on current sales volume and cost estimates, average unit net cash costs for the Molybdenum mines are expected to approximate $11.75 per pound of molybdenum for the year 2022.

For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIII.

EXPLORATION

FCX's mining exploration activities are primarily associated with its existing mines, focusing on opportunities to expand reserves and resources to support development of additional future production capacity. Exploration results continue to indicate opportunities for significant future potential reserve additions at our existing properties in North America and South America. Exploration expenditures for the year 2022, primarily to advance Lone Star and other opportunities at FCX's North America copper mines, are expected to approximate $120 million, compared with $50 million in 2021. FCX has long-lived reserves and a significant resource position in its existing portfolio.

LIQUIDITY, CASH FLOWS, CASH AND DEBT

Liquidity. At June 30, 2022, FCX had $9.5 billion in consolidated cash and cash equivalents and $3.5 billion of availability under its revolving credit facility. In addition, PT-FI and Cerro Verde have $1.3 billion and $350 million, respectively, of availability under their revolving credit facilities.

Operating Cash Flows. FCX generated operating cash flows of $1.6 billion (including $0.1 billion of working capital and other sources) in second-quarter 2022 and $3.3 billion (net of $0.7 billion of working capital and other uses) for the first six months of 2022.

Based on current sales volume and cost estimates, and assuming average prices of $3.25 per pound of copper, $1,700 per ounce of gold and $16.00 per pound of molybdenum for the second half of 2022, FCX's consolidated operating cash flows are estimated to approximate $4.5 billion (net of $1.4 billion of working capital and other uses) for the year 2022. The impact of price changes for the second half of 2022 on operating cash flows would approximate $230 million for each $0.10 per pound change in the average price of copper, $80 million for each $100 per ounce change in the average price of gold and $50 million for each $2 per pound change in the average price of molybdenum.

Capital Expenditures. Capital expenditures totaled $0.9 billion in second-quarter 2022 (including $0.4 billion for major mining projects and $0.2 billion for the Indonesia smelter projects) and $1.6 billion for the first six months of 2022 (including $0.8 billion for major mining projects and $0.3 billion for the Indonesia smelter projects).

Capital expenditures are expected to approximate $4.5 billion for the year 2022 (including $1.9 billion for major mining projects and $1.4 billion for the Indonesia smelter projects). Projected capital expenditures for major mining projects include $1.3 billion for planned projects primarily associated with underground mine development in the Grasberg minerals district and supporting mill and power capital costs and $0.6 billion for discretionary growth projects. Capital expenditures for the Indonesia smelter projects are being funded with PT-FI's senior notes and its available revolving credit facility.




						9

Cash. Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests' share, taxes and other costs at June 30, 2022 (in billions):


Cash at domestic companies	$	5.1
Cash at international operations	4.4		a
Total consolidated cash and cash equivalents	9.5
Noncontrolling interests' share	(1.1)
Cash, net of noncontrolling interests' share	8.4
Withholding taxes	(0.3)
Net cash available	$	8.1

a.Includes $2.4 billion from PT-FI's senior notes that is expected to be used to finance its smelter projects.

Debt. Following is a summary of total debt and the weighted-average interest rates at June 30, 2022 (in millions, except percentages):


			Weighted- Average Interest Rate
Senior notes:
Issued by FCXa	$	7,697	4.8%
Issued by PT-FI	2,976		5.4%
Issued by Freeport Minerals Corporation	355		7.5%
Other	64		0.5%
Total debt	$	11,092	5.0%

a.Includes $995 million maturing in March 2023 with redemption rights at par in December 2022.

At June 30, 2022, there were no borrowings and $8 million in letters of credit issued under FCX's $3.5 billion revolving credit facility.

In April 2022, PT-FI completed the sale of $3.0 billion of unsecured senior notes with an average duration of approximately 14 years and a weighted-average interest rate of 5.4 percent. PT-FI used $0.6 billion of the net proceeds to repay borrowings under its term loan and expects to use the remaining net proceeds to finance its smelter projects.

In April 2022, PT-FI amended its five-year, unsecured revolving credit facility to increase the facility by $1.0 billion, to $1.3 billion (which became effective in May 2022). At June 30, 2022, no amounts were drawn under the revolving credit facility.

In second-quarter 2022, Cerro Verde entered into a new $350 million, five-year, unsecured revolving credit facility, and repaid the outstanding balance of its term loan. As of June 30, 2022, no amounts were outstanding under the Cerro Verde revolving credit facility.

Through July 20, 2022, FCX purchased $754 million aggregate principal amount of its senior notes in open-market transactions for a total cost of $718 million (including $582 million aggregate principal amount in second-quarter 2022), resulting in annual cash interest savings of $36 million.

During second-quarter 2022, FCX recorded a net gain on extinguishment of debt totaling $8 million, consisting of $18 million associated with its senior note purchases, partly offset by a charge of $10 million associated with the repayment of the PT-FI term loan.

FINANCIAL POLICY

FCX's financial policy is aligned with its strategic objectives of maintaining a strong balance sheet and increasing cash returns to shareholders while advancing opportunities for future growth. The policy includes a base dividend and a performance-based payout framework, whereby up to 50 percent of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to FCX maintaining its net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding project debt for




						10

additional smelting capacity in Indonesia). The Board will review the structure of the performance-based payout framework at least annually.

At June 30, 2022, FCX's net debt, excluding net debt for the Indonesia smelter projects, totaled $1.0 billion. Refer to the supplemental schedule, "Net Debt," on page IX.

On June 22, 2022, FCX declared dividends totaling $0.15 per share on its common stock (which included a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable cash dividend), which will be paid on August 1, 2022, to shareholders of record as of July 15, 2022. The declaration and payment of dividends (base or variable) is at the discretion of the Board and will depend on FCX's financial results, cash requirements, business prospects, global economic conditions and other factors deemed relevant by the Board.

In July 2022, the Board authorized an increase in the share repurchase program from $3.0 billion to up to $5.0 billion. Through July 20, 2022, FCX acquired 47.9 million shares of its common stock for a total cost of $1.8 billion ($38.35 average cost per share) under its share repurchase program, including 35.1 million shares for a total cost of $1.3 billion ($38.36 average cost per share) during 2022. As of July 20, 2022, FCX has 1.43 billion shares of common stock outstanding and $3.2 billion is available under its share repurchase program. The timing and amount of share repurchases is at the discretion of management and will depend on a variety of factors. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's second-quarter 2022 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing fcx.com. A replay of the webcast will be available through Friday, August 19, 2022.

-----------------------------------------------------------------------------------------------------------

FREEPORT: Foremost in Copper

FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the world’s largest publicly traded copper producers.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries. Additional information about FCX is available on FCX's website at fcx.com.

Cautionary Statement and Regulation G Disclosure: This press release contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to business outlook, strategy, goals or targets; global market conditions; ore grades and milling rates; production and sales volumes; unit net cash costs (credits); capital expenditures; operating costs; operating plans; cash flows; liquidity; PT-FI’s financing, construction and completion of additional domestic smelting capacity in Indonesia in accordance with the terms of its special mining license (IUPK); FCX’s commitments to deliver responsibly produced copper, including plans to implement and validate all of its operating sites under the Copper Mark and to comply with other disclosure frameworks; execution of FCX's energy and climate strategies and the underlying assumptions and estimated impacts on FCX’s business related thereto; achievement of climate commitments and net zero aspiration; improvements in operating procedures and technology innovations; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; tax rates; export quotas and duties; 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 proceedings; debt repurchases and the ongoing implementation of FCX’s financial policy and future returns to shareholders, including dividend payments (base or variable) and share repurchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “could,” “to be,” “potential,” “assumptions,” “guidance,” “aspirations,” “future” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration and payment of dividends (base or variable), timing and amount of any share repurchases is at the discretion of the Board and management, respectively, and is subject to a number of factors, including maintaining FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, business prospects, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by the Board or management, as applicable. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities we produce, primarily copper; changes in FCX’s cash requirements, financial position, financing or investment plans; changes in general market, economic, tax, regulatory or industry conditions, including as a result of Russia’s invasion of Ukraine or




						11

potential global economic downturn or recession; reductions in liquidity and access to capital; the ongoing COVID-19 pandemic and any future public health crisis; political and social risks; operational risks inherent in mining, with higher inherent risks in underground mining; fluctuations in price and availability of commodities purchased; constraints on supply, logistics and transportation services; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations; production rates; timing of shipments; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; the potential effects of violence in Indonesia generally and in the province of Papua; the Indonesia government’s extension of PT-FI’s export license after March 19, 2023; satisfaction of requirements in accordance with PT-FI’s IUPK to extend mining rights from 2031 through 2041; the Indonesia government’s approval of a deferred schedule for completion of additional domestic smelting capacity in Indonesia; cybersecurity incidents; labor relations, including labor-related work stoppages and costs; the results of the human health assessment to evaluate the potential impacts of tailings and mining waste, and compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks and litigation results; FCX’s ability to comply with its responsible production commitments under specific frameworks and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” in FCX’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (SEC).

Investors are cautioned that many of the assumptions upon which FCX’s forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs or technological solutions and innovation, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it undertakes no obligation to update any forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes.

This press release also contains financial measures such as net debt, adjusted net income and unit net cash costs (credits) per pound of copper and molybdenum, which are not recognized under U.S. generally accepted accounting principles. As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX’s consolidated financial statements are in the supplemental schedules of this press release.




						12


Freeport-McMoRan Inc.
SELECTED OPERATING DATA

	Three Months Ended June 30,
	2022	2021	2022			2021
MINING OPERATIONS:	Production		Sales
COPPER (millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	172	156	173			172
Safford (100%)	70	64	72			67
Sierrita (100%)	48	53	51			55
Bagdad (100%)	46	39	46			47
Chino (100%)	29	33	30			31
Tyrone (100%)	14	12	15			13
Miami (100%)	3	3	2			4

Total North America	382	360	389			389

South America
Cerro Verde (53.56%)	241	206	243			189
El Abra (51%)	45	39	45			41

Total South America	286	245	288			230

Indonesia
Grasberg (48.76%)b	407	308	410			310


Total	1,075	913	1,087		c	929		c
Less noncontrolling interests	210	173	212			166
Net	865	740	875			763





Average realized price per pound			$	4.03		$	4.34


GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	3	2	2			3

Indonesia (48.76%)b	473	303	474			302
Consolidated	476	305	476			305
Less noncontrolling interests	89	56	89			56
Net	387	249	387			249




Average realized price per ounce			$	1,827		$	1,794

MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Climax (100%)	5	5	N/A			N/A
Henderson (100%)	3	2	N/A			N/A
North America copper mines (100%)a	8	9	N/A			N/A
Cerro Verde (53.56%)	7	4	N/A			N/A
Consolidated	23	20	20			22
Less noncontrolling interests	3	2	3			2
Net	20	18	17			20





Average realized price per pound			$	19.44		$	13.11















a. Amounts are net of Morenci's joint venture partners' undivided interests.

b. FCX’s economic interest in PT Freeport Indonesia (PT-FI) approximates 81 percent through 2022 and 48.76 percent thereafter.

c. Consolidated sales volumes exclude purchased copper of 23 million pounds in second-quarter 2022 and 68 million pounds in second-quarter 2021.


Freeport-McMoRan Inc.
SELECTED OPERATING DATA

	Six Months Ended June 30,
	2022	2021	2022			2021
MINING OPERATIONS:	Production		Sales
COPPER (millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	326	310	339			312
Safford (100%)	139	128	143			118
Sierrita (100%)	100	102	103			97
Bagdad (100%)	80	83	88			89
Chino (100%)	57	58	62			50
Tyrone (100%)	28	25	30			24
Miami (100%)	6	7	5			7

Total North America	736	713	770			697

South America
Cerro Verde (53.56%)	478	423	472			404
El Abra (51%)	82	81	80			85

Total South America	560	504	552			489

Indonesia
Grasberg (48.76%)b	788	606	789			568


Total	2,084	1,823	2,111		c	1,754		c
Less noncontrolling interests	409	350	406			336
Net	1,675	1,473	1,705			1,418





Average realized price per pound			$	4.18		$	4.25

GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	6	5	5			5

Indonesia (48.76%)b	885	597	880			558
Consolidated	891	602	885			563
Less noncontrolling interests	166	111	165			104
Net	725	491	720			459




Average realized price per ounce			$	1,861		$	1,785

MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Climax (100%)	9	9	N/A			N/A
Henderson (100%)	6	5	N/A			N/A
North America copper mines (100%)a	15	17	N/A			N/A
Cerro Verde (53.56%)	14	9	N/A			N/A
Consolidated	44	40	39			43
Less noncontrolling interests	6	4	5			5
Net	38	36	34			38





Average realized price per pound			$	19.37		$	12.38















a. Amounts are net of Morenci's joint venture partners' undivided interests.

b. FCX’s economic interest in PT-FI approximates 81 percent through 2022 and 48.76 percent thereafter.

c. Consolidated sales volumes exclude purchased copper of 38 million pounds for the first six months of 2022 and 121 million pounds for the first six months of 2021.


Freeport-McMoRan Inc.
SELECTED OPERATING DATA (continued)

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
100% North America Copper Mines
Leach Operations
Leach ore placed in stockpiles (metric tons per day)	722,900	688,000	715,800	696,500
Average copper ore grade (percent)	0.29	0.30	0.29	0.29
Copper production (millions of recoverable pounds)	254	265	499	527

Mill Operations
Ore milled (metric tons per day)	306,900	264,700	299,200	266,300
Average ore grades (percent):
Copper	0.39	0.36	0.38	0.37
Molybdenum	0.02	0.03	0.02	0.03
Copper recovery rate (percent)	83.2	82.4	82.1	80.5
Production (millions of recoverable pounds):
Copper	195	155	364	306
Molybdenum	8	9	15	17

100% South America Mining
Leach Operations
Leach ore placed in stockpiles (metric tons per day)	157,700	190,200	148,800	172,100
Average copper ore grade (percent)	0.37	0.33	0.36	0.34
Copper production (millions of recoverable pounds)	71	65	132	126

Mill Operations
Ore milled (metric tons per day)	427,100	374,100	410,800	382,100
Average ore grades (percent):
Copper	0.31	0.29	0.32	0.30
Molybdenum	0.01	0.01	0.02	0.01
Copper recovery rate (percent)	84.4	85.2	85.5	86.4
Production (millions of recoverable pounds):
Copper	215	179	428	377
Molybdenum	7	4	14	9

100% Indonesia Mining
Ore extracted and milled (metric tons per day):
Grasberg Block Cave underground mine	101,800	64,400	101,100	58,100
Deep Mill Level Zone underground mine	77,300	53,900	77,800	50,300
Big Gossan underground mine	7,400	8,200	7,500	7,500
Deep Ore Zone underground mine and other	10,500	16,500	5,400	17,700


Total	197,000	143,000	191,800	133,600
Average ore grades:
Copper (percent)	1.22	1.28	1.22	1.34
Gold (grams per metric ton)	1.08	1.00	1.05	1.03
Recovery rates (percent):
Copper	89.8	88.8	89.6	90.0
Gold	79.0	75.9	78.2	77.4
Production (recoverable):
Copper (millions of pounds)	407	308	788	606
Gold (thousands of ounces)	473	303	885	597











100% Molybdenum Mines
Ore milled (metric tons per day)	25,600	22,200	24,100	20,500
Average molybdenum ore grade (percent)	0.18	0.19	0.18	0.19
Molybdenum production (millions of recoverable pounds)	8	7	15	14

III


Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
	(In Millions, Except Per Share Amounts)
Revenuesa	$	5,416		$	5,748		$	12,019	b	$	10,598
Cost of sales:
Production and deliveryc,d	3,003			3,067		b,e	6,153		b	5,853		b,e
Depreciation, depletion and amortization	507			483			996			902
Metals inventory adjustments	18		f	—			18		f	1

Total cost of sales	3,528			3,550			7,167			6,756
Selling, general and administrative expenses	100			87			215			187
Mining exploration and research expenses	25			14			49			21
Environmental obligations and shutdown costs	29			33			45			38

Net gain on sales of assets	(2)			(3)			(2)			(3)

Total costs and expenses	3,680			3,681			7,474			6,999
Operating income	1,736			2,067			4,545			3,599
Interest expense, netg	(156)			(148)		b	(283)			(293)		b

Net gain on early extinguishment of debt	8			—			8			—

Other income, net	11			9		b	42			20		b
Income before income taxes and equity in affiliated companies' net earnings	1,599			1,928			4,312			3,326
Provision for income taxesh	(571)			(603)			(1,395)			(1,046)
Equity in affiliated companies' net earnings	10			6			25			4


Net income	1,038			1,331			2,942			2,284

Net income attributable to noncontrolling interests	(198)			(248)			(575)			(483)


Net income attributable to common stockholdersi	$	840		$	1,083		$	2,367		$	1,801






Diluted net income per share attributable to common stock	$	0.57		$	0.73		$	1.61		$	1.21






Diluted weighted-average common shares outstanding	1,457			1,483			1,463			1,480

Dividends declared per share of common stock	$	0.15		$	0.075		$	0.30		$	0.15

a.Includes adjustments to provisionally priced concentrate and cathode sales. For a summary of adjustments to provisionally priced copper sales, refer to the supplemental schedule, "Derivative Instruments," on page IX.

b.Includes PT-FI charges totaling $32 million in second-quarter 2021, $51 million for the first six months of 2022 and $54 million for the first six months of 2021, which are summarized in the supplemental schedule, "Adjusted Net Income," on page VII.

c.FCX is engaged in various studies associated with potential future expansion projects primarily in North America and South America. Production and delivery costs include charges for these feasibility and optimization studies totaling $31 million in second-quarter 2022, $11 million in second-quarter 2021, $50 million for the first six months of 2022 and $16 million for the first six months of 2021.

d.Includes other net (charges) credits totaling $(6) million in second-quarter 2022, $10 million in second-quarter 2021, $(16) million for the first six months of 2022 and $(13) million for the first six months of 2021, which are summarized in the supplemental schedule, "Adjusted Net Income," on page VII.

e.Includes nonrecurring labor-related charges totaling $69 million at Cerro Verde.

f.Includes unfavorable net realizable value inventory adjustments ($9 million) and stockpile write-off at Cerro Verde ($9 million).

g.Consolidated interest costs (before capitalization) totaled $189 million in second-quarter 2022, $165 million in second-quarter 2021, $342 million for the first six months of 2022 and $325 million for the first six months of 2021. Higher interest costs (before capitalization) are primarily related to PT-FI's senior notes that were issued in April 2022.

h.For a summary of FCX's income taxes, refer to the supplemental schedule, "Income Taxes," on page VIII.

i.FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page X.


Freeport-McMoRan Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)

	June 30,		December 31,
	2022		2021
	(In Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	9,492	$	8,068
Trade accounts receivable	977		1,168
Income and other tax receivables	435		574

Inventories:
Materials and supplies, net	1,776		1,669
Mill and leach stockpiles	1,387		1,170
Product	1,507		1,658
Other current assets	608		523

Total current assets	16,182		14,830
Property, plant, equipment and mine development costs, net	31,200		30,345


Long-term mill and leach stockpiles	1,230		1,387


Other assets	1,501		1,460

Total assets	$	50,113	$	48,022

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	3,853	$	3,495
Current portion of debt	1,038		372
Accrued income taxes	507		1,541
Current portion of environmental and asset retirement obligations	317		264
Dividends payable	217		220

Total current liabilities	5,932		5,892
Long-term debt, less current portion	10,054		9,078
Deferred income taxes	4,297		4,234
Environmental and asset retirement obligations, less current portion	4,170		4,116
Other liabilities	1,613		1,683

Total liabilities	26,066		25,003



Equity:
Stockholders' equity:
Common stock	161		160
Capital in excess of par value	25,661		25,875
Accumulated deficit	(5,008)		(7,375)
Accumulated other comprehensive loss	(386)		(388)
Common stock held in treasury	(5,539)		(4,292)
Total stockholders' equity	14,889		13,980
Noncontrolling interestsa	9,158		9,039
Total equity	24,047		23,019
Total liabilities and equity	$	50,113	$	48,022

a. Includes $4.6 billion associated with the December 2018 PT-FI transaction, including $4.1 billion associated with the PT Indonesia Asahan Aluminium (Persero) acquisition of Rio Tinto's joint venture interest.


Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months Ended
	June 30,
		2022		2021
		(In Millions)
Cash flow from operating activities:
Net income		$	2,942	$	2,284
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		996		902

Metals inventory adjustments		18		1

Net gain on sales of assets		(2)		(3)
Stock-based compensation		62		56

Net charges for environmental and asset retirement obligations, including accretion		119		94
Payments for environmental and asset retirement obligations		(120)		(110)

Net charges for defined pension and postretirement plans		20		1
Pension plan contributions		(50)		(42)
Net gain on early extinguishment of debt		(8)		—
Deferred income taxes		63		79






Charges for Cerro Verde royalty dispute		—		9
Payments for Cerro Verde royalty dispute		—		(65)

Other, net		(17)		77
Changes in working capital and other:
Accounts receivable		314		(279)
Inventories		(40)		(299)
Other current assets		(99)		(12)
Accounts payable and accrued liabilities		185		272
Accrued income taxes and timing of other tax payments		(1,071)		505
Net cash provided by operating activities		3,312		3,470

Cash flow from investing activities:
Capital expenditures:
North America copper mines		(276)		(95)
South America		(124)		(47)
Indonesia mining		(778)		(576)
Indonesia smelter projects		(325)		(48)
Molybdenum mines		(9)		(3)
Other		(74)		(34)


Proceeds from sales of assets		96		16

Acquisition of minority interest in PT Smelting		—		(33)
Loans to PT Smelting for expansion		(34)		—
Other, net		(6)		(13)
Net cash used in investing activities		(1,530)		(833)

Cash flow from financing activities:
Proceeds from debt		4,666		160
Repayments of debt		(2,993)		(179)



Cash dividends and distributions paid:
Common stock		(438)		(111)
Noncontrolling interests		(513)		(93)
Treasury stock purchases		(1,185)		—
Contributions from noncontrolling interests		94		88
Proceeds from exercised stock options		106		184
Payments for withholding of employee taxes related to stock-based awards		(55)		(19)
Debt financing costs and other, net		(33)		(1)

Net cash (used in) provided by financing activities		(351)		29

Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents		1,431		2,666

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year		8,314		3,903
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of perioda		$	9,745	$	6,569

a.Includes restricted cash and cash equivalents of $253 million at June 30, 2022, and $256 million at June 30, 2021.

Freeport-McMoRan Inc.

ADJUSTED NET INCOME

Adjusted net income is intended to provide investors and others with information about FCX's recurring operating performance. This information differs from net income attributable to common stock determined in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. FCX's adjusted net income follows, which may not be comparable to similarly titled measures reported by other companies (in millions, except per share amounts).


	Three Months Ended June 30,
	2022								2021
	Pre-tax			After-taxa			Per Share		Pre-tax			After-taxa			Per Share
Net income attributable to common stock	N/A			$	840		$	0.57	N/A			$	1,083		$	0.73

Metals inventory adjustments	$	(18)	b	$	(11)		$	(0.01)	$	—		$	—		$	—
Net adjustments to environmental obligations and related litigation reserves	(13)			(13)			(0.01)		(20)			(20)			(0.01)
Cerro Verde labor agreement	—			—			—		(69)			(22)			(0.01)
PT-FI net charges	—			—			—		(32)		c	(28)			(0.02)
Net gain on sales of assets	2			2			—		3			3			—
Net gain on early extinguishment of debt	8			13			0.01		—			—			—
Other net (charges) credits	(6)		d	(4)			—		10		e	10			0.01

	$	(28)	f	$	(14)	f	$	(0.01)	$	(107)	f	$	(56)	f	$	(0.04)	f

Adjusted net income attributable to common stock	N/A			$	854		$	0.58	N/A			$	1,139		$	0.77


	Six Months Ended June 30,
	2022								2021
	Pre-tax			After-taxa			Per Share		Pre-tax			After-taxa			Per Share
Net income attributable to common stock	N/A			$	2,367		$	1.61	N/A			$	1,801		$	1.21

PT-FI net charges	$	(51)	g	$	(31)		$	(0.02)	$	(54)	c	$	(48)		$	(0.03)
Metals inventory adjustments	(18)		b	(11)			(0.01)		(1)			(1)			—
Net adjustments to environmental obligations and related litigation reserves	(13)			(13)			(0.01)		(17)			(17)			(0.01)
Cerro Verde labor agreement	—			—			—		(69)			(22)			(0.01)
Net gain on sales of assets	2			2			—		3			3			—
Net gain on early extinguishment of debt	8			13			0.01		—			—			—
Other net charges	(16)		d	(11)			(0.01)		(13)		e	(10)			(0.01)

	$	(89)	f	$	(52)	f	$	(0.04)	$	(151)		$	(94)	f	$	(0.06)

Adjusted net income attributable to common stock	N/A			$	2,419		$	1.65	N/A			$	1,895		$	1.28	f

a.Reflects impact to FCX net income attributable to common stock (i.e., net of any taxes and noncontrolling interests).

b.Includes unfavorable net realizable value inventory adjustments ($9 million) and a stockpile write-off at Cerro Verde ($9 million).

c.Reflects charges associated with contested matters at PT-FI (including historical tax audits and an administrative fine levied by the Indonesia government) and asset impairments, which were recorded to production and delivery ($17 million in second-quarter 2021 and $30 million for the first six months of 2021), interest expense, net ($4 million in second-quarter 2021 and $8 million for the first six months of 2021) and other income, net ($11 million in second-quarter 2021 and $16 million for the first six months of 2021).

d.Reflects charges recorded to production and delivery associated with asset retirement obligation adjustments (ARO) and contract cancellation costs.

e.Second-quarter 2021 includes credits recorded to production and delivery ($10 million) associated with ARO adjustments. The first six months of 2021 also include other net charges recorded to production and delivery ($23 million), primarily associated with employee separation charges, international tax matters and ARO adjustments.

f.Does not foot because of rounding.

g.Reflects net charges recorded to revenues ($18 million) associated with exposure for additional export duties for prior periods and production and delivery ($33 million) associated with the settlement of an administrative fine, partly offset by a favorable reserve adjustment related to a historical tax audit.

VII

Freeport-McMoRan Inc.

INCOME TAXES

Following is a summary of the approximate amounts used in the calculation of FCX's consolidated income tax provision (in millions, except percentages):


	Three Months Ended June 30,
	2022						2021
					Income Tax						Income Tax
	Income		Effective		(Provision)		Income		Effective		(Provision)
	(Loss)a		Tax Rate		Benefit		(Loss)a		Tax Rate		Benefit
U.S.b	$	357	1%	c	$	(3)	$	558	1%	c	$	(3)
South America	164		37%		(61)		430		38%		(162)
Indonesia	1,123		39%		(439)		1,002		40%		(404)







Eliminations and other	(45)		N/A		7		(62)		N/A		1
Rate adjustmentd	—		N/A		(75)		—		N/A		(35)
Continuing operations	$	1,599	36%		$	(571)	$	1,928	31%		$	(603)


	Six Months Ended June 30,
	2022						2021
					Income Tax						Income Tax
	Income		Effective		(Provision)		Income		Effective		(Provision)
	(Loss)a		Tax Rate		Benefit		(Loss)a		Tax Rate		Benefit
U.S.b	$	909	1%	c	$	(5)	$	743	—%	c	$	(3)
South America	776		39%		(302)		923		39%		(356)
Indonesia	2,635		39%		(1,025)		1,759		41%		(719)







Eliminations and other	(8)		N/A		(3)		(99)		N/A		5
Rate adjustmentd	—		N/A		(60)		—		N/A		27
Continuing operations	$	4,312	32%		$	(1,395)	$	3,326	31%		$	(1,046)

a.Represents income before income taxes and equity in affiliated companies' net earnings.

b.In addition to FCX's North America mining operations, the U.S. jurisdiction reflects corporate-level expenses, which include interest expense associated with senior notes, general and administrative expenses, and environmental obligations and shutdown costs.

c.Includes valuation allowance release on prior year unbenefited net operating losses.

d.In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its consolidated tax rate.

Assuming achievement of current sales volume and cost estimates and average prices of $3.25 per pound for copper, $1,700 per ounce for gold and $16.00 per pound for molybdenum for the second half of 2022, FCX estimates its consolidated effective tax rate for the year 2022 would approximate 34 percent (which would result in a 47 percent effective tax rate in third-quarter 2022). The effective tax rate would decrease with higher prices. Changes in projected sales volumes and average prices during 2022 would incur tax impacts at estimated effective rates of 39 percent for Peru, 38 percent for Indonesia and 0 percent for the U.S.

VIII

Freeport-McMoRan Inc.

NET DEBT

Net debt, which FCX defines as consolidated debt less consolidated cash and cash equivalents, is intended to provide investors with information related to the performance-based payout framework in FCX’s financial policy, which requires achievement of a net debt target in the range of $3 billion to $4 billion (excluding project debt for additional smelting capacity in Indonesia). This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. FCX's net debt, which may not be comparable to similarly titled measures reported by other companies follows (in millions):


	As of June 30, 2022		As of December 31, 2021
Current portion of debt	$	1,038	$	372
Long-term debt, less current portion	10,054		9,078
Consolidated debt	11,092		9,450
Less: consolidated cash and cash equivalents	9,492		8,068
FCX net debt	1,600		1,382
Less: net debt for Indonesia smelter projectsa	585		207
FCX net debt, excluding Indonesia smelter projects	$	1,015	$	1,175

a.Includes consolidated debt of $3.0 billion and consolidated cash and cash equivalents of $2.4 billion as of June 30, 2022, and consolidated debt of $0.4 billion and consolidated cash and cash equivalents of $0.2 billion as of December 31, 2021.

DERIVATIVE INSTRUMENTS

For the six months ended June 30, 2022, FCX's mined copper was sold 60 percent in concentrate, 18 percent as cathode and 22 percent as rod from North America operations. Substantially all of FCX's copper concentrate and cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted London Metal Exchange (LME) monthly average copper prices. FCX records revenues and invoices customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on provisionally priced concentrate and cathode sales that is adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. LME copper settlement prices averaged $4.31 per pound during second-quarter 2022 and settled at $3.74 per pound on June 30, 2022. Because a significant portion of FCX's copper concentrate and cathode sales in any quarterly period usually remain subject to final pricing, the quarter-end forward price is a major determinant of the average recorded copper price for the period. FCX's average realized copper price was $4.03 per pound in second-quarter 2022.

Following is a summary of the adjustments to prior period and current period provisionally priced copper sales (in millions, except per share amounts):


	Three Months Ended June 30,
	2022						2021
	Prior Perioda		Current Periodb		Total		Prior Perioda		Current Periodb		Total
Revenues	$	(355)	$	(365)	$	(720)	$	173	$	(55)	$	118
Net income attributable to common stock	$	(154)	$	(140)	$	(294)	$	66	$	(25)	$	41
Net income per share of common stock	$	(0.10)	$	(0.10)	$	(0.20)	$	0.05	$	(0.02)	$	0.03

a.Reflects adjustments to provisionally priced copper sales at March 31, 2022 and 2021.

b.Reflects adjustments to provisionally priced copper sales during the second quarters of 2022 and 2021.


	Six Months Ended June 30,
	2022						2021
	Prior Perioda		Current Periodb		Total		Prior Perioda		Current Periodb		Total
Revenues	$	65	$	(567)	$	(502)	$	169	$	156	$	325
Net income attributable to common stock	$	27	$	(230)	$	(203)	$	65	$	55	$	120
Net income per share of common stock	$	0.02	$	(0.16)	$	(0.14)	$	0.04	$	0.04	$	0.08

a.Reflects adjustments to provisionally priced copper sales at December 31, 2021 and 2020.

b.Reflects adjustments to provisionally priced copper sales for the first six months of 2022 and 2021.

At June 30, 2022, FCX had provisionally priced copper sales at its copper mining operations totaling 447 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average price of $3.75 per pound, subject to final pricing over the next several months. FCX estimates that each $0.05 change in the price realized from the quarter-end provisional price would have an approximate $14 million effect on 2022 net income attributable to common stock. The LME copper price settled at $3.34 per pound on July 20, 2022.

Freeport-McMoRan Inc.

DEFERRED PROFITS

FCX defers recognizing profits on sales from its mining operations to Atlantic Copper and on 39.5 percent of PT-FI's sales to PT Smelting (PT-FI's 39.5 percent-owned Indonesia smelting unit) until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions) additions to operating income totaling $(7) million (less than $1 million to net income attributable to common stock) in second-quarter 2022, $(99) million ($(81) million to net income attributable to common stock) in second-quarter 2021, $40 million ($23 million to net income attributable to common stock) for the first six months of 2022 and $(185) million ($(145) million to net income attributable to common stock) for the first six months of 2021. FCX's net deferred profits on its inventories at Atlantic Copper and PT Smelting to be recognized in future periods' net income attributable to common stock totaled $157 million at June 30, 2022. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in FCX's net deferred profits and quarterly earnings.

BUSINESS SEGMENTS

FCX has organized its mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX's reportable segments, which include the Morenci and Cerro Verde copper mines, the Grasberg minerals district (Indonesia Mining), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, the timing of sales to unaffiliated customers and transportation premiums.

FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs along with some selling, general and administrative costs, are not allocated to the operating divisions or individual segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

Freeport-McMoRan Inc.

BUSINESS SEGMENTS (continued)


(In millions)
																					Atlantic			Corporate,
	North America Copper Mines				South America Mining												Copper		Other
							Cerro							Indonesia			Molybdenum		Rod &		Smelting			& Elimi-			FCX
	Morenci		Other		Total		Verde			Other		Total		Mining			Mines		Refining		& Refining			nations			Total
Three Months Ended June 30, 2022
Revenues:
Unaffiliated customers	$	17	$	30	$	47	$	702		$	180	$	882	$	1,920	a	$	—	$	1,753	$	433		$	381	b	$	5,416
Intersegment	730		1,078		1,808		134			—		134		58			144		8		—			(2,152)			—
Production and delivery	397		720		1,117		565			177		742		564			80		1,765		463		c	(1,728)			3,003
Depreciation, depletion and amortization	44		58		102		91			11		102		262			18		1		6			16			507
Metals inventory adjustments	—		7		7		9			2		11		—			—		—		—			—			18
Selling, general and administrative expenses	1		—		1		2			—		2		30			—		—		5			62			100
Mining exploration and research expenses	—		1		1		—			—		—		—			—		—		—			24			25
Environmental obligations and shutdown costs	(13)		—		(13)		—			—		—		—			—		—		—			42			29

Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(2)			(2)
Operating income (loss)	318		322		640		169			(10)		159		1,122			46		(5)		(41)			(185)			1,736

Interest expense, net	—		—		—		4			—		4		2			—		—		2			148			156
Provision for (benefit from) income taxes	—		—		—		68			(7)		61		439			—		—		—			71			571
Total assets at June 30, 2022	2,839		5,338		8,177		8,379			1,843		10,222		20,731			1,702		300		1,078			7,903			50,113
Capital expenditures	63		83		146		35			33		68		399			8		2		32			208		d	863

Three Months Ended June 30, 2021
Revenues:
Unaffiliated customers	$	57	$	55	$	112	$	825		$	188	$	1,013	$	1,753	a	$	—	$	1,689	$	794		$	387	b	$	5,748
Intersegment	721		1,021		1,742		120			—		120		56			89		6		—			(2,013)			—
Production and delivery	351		574		925		494		e	106		600		528			56		1,691		775			(1,508)		c	3,067
Depreciation, depletion and amortization	40		61		101		82			12		94		247			17		1		8			15			483


Selling, general and administrative expenses	1		—		1		2			—		2		27			—		—		5			52			87
Mining exploration and research expenses	—		—		—		—			—		—		—			—		—		—			14			14
Environmental obligations and shutdown costs	1		—		1		—			—		—		—			—		—		—			32			33

Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(3)			(3)
Operating income (loss)	385		441		826		367			70		437		1,007			16		3		6			(228)			2,067

Interest expense, net	—		—		—		12			—		12		6			—		—		2			128			148
Provision for income taxes	—		—		—		145			17		162		404			—		—		—			37			603
Total assets at June 30, 2021	2,635		5,288		7,923		8,795			1,795		10,590		18,135			1,740		271		1,117			5,660			45,436
Capital expenditures	22		47		69		23			3		26		286			2		—		7			43		d	433

a.Includes PT-FI's sales to PT Smelting totaling $827 million in second-quarter 2022 and $756 million in second-quarter 2021.

b.Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

c.Includes maintenance charges and idle facility costs associated with major maintenance turnarounds totaling $40 million at Atlantic Copper in second quarter 2022 and $19 million at the Miami smelter in second-quarter 2021.

d.Primarily includes capital expenditures for the greenfield smelter and precious metals refinery (collectively, the Indonesia smelter projects).

e.Includes nonrecurring charges totaling $69 million associated with labor-related charges at Cerro Verde.

Freeport-McMoRan Inc.

BUSINESS SEGMENTS (continued)


(In millions)
																					Atlantic			Corporate,
	North America Copper Mines				South America Mining												Copper		Other
							Cerro							Indonesia			Molybdenum		Rod &		Smelting			& Elimi-			FCX
	Morenci		Other		Total		Verde			Other		Total		Mining			Mines		Refining		& Refining			nations			Total
Six months ended June 30, 2022
Revenues:
Unaffiliated customers	$	107	$	85	$	192	$	1,808		$	340	$	2,148	$	4,246	a	$	—	$	3,496	$	1,151		$	786	b	$	12,019
Intersegment	1,441		2,173		3,614		242			—		242		136			272		17		—			(4,281)			—
Production and delivery	760		1,375		2,135		1,123			289		1,412		1,190			155		3,519		1,185		c	(3,443)			6,153
Depreciation, depletion and amortization	88		119		207		178			21		199		510			34		2		12			32			996
Metals inventory adjustments	—		7		7		9			2		11		—			—		—		—			—			18
Selling, general and administrative expenses	1		1		2		4			—		4		57			—		—		13			139			215
Mining exploration and research expenses	—		1		1		—			—		—		—			—		—		—			48			49
Environmental obligations and shutdown costs	(13)		—		(13)		—			—		—		—			—		—		—			58			45

Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(2)			(2)
Operating income (loss)	712		755		1,467		736			28		764		2,625			83		(8)		(59)			(327)			4,545

Interest expense, net	—		—		—		7			—		7		4			—		—		4			268			283
Provision for income taxes	—		—		—		295			7		302		1,025			—		—		—			68			1,395

Capital expenditures	136		140		276		68			56		124		778			9		4		43			352		d	1,586

Six months ended June 30, 2021
Revenues:
Unaffiliated customers	$	61	$	83	$	144	$	1,742		$	363	$	2,105	$	3,136	a	$	—	$	2,998	$	1,481		$	734	b	$	10,598
Intersegment	1,285		1,763		3,048		165			—		165		108			159		13		—			(3,493)			—
Production and delivery	620		1,054		1,674		930		e	209		1,139		983			113		3,007		1,448			(2,511)		c	5,853
Depreciation, depletion and amortization	74		107		181		171			24		195		446			32		2		15			31			902

Metals inventory adjustments	—		—		—		—			—		—		—			1		—		—			—			1
Selling, general and administrative expenses	1		1		2		4			—		4		53			—		—		12			116			187
Mining exploration and research expenses	—		—		—		—			—		—		—			—		—		—			21			21
Environmental obligations and shutdown costs	1		—		1		—			—		—		—			—		—		—			37			38

Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(3)			(3)
Operating income (loss)	650		684		1,334		802			130		932		1,762			13		2		6			(450)			3,599

Interest expense, net	—		—		—		25			—		25		7			—		—		3			258			293
Provision for (benefit from) income taxes	—		—		—		318			38		356		719			—		—		—			(29)			1,046

Capital expenditures	32		63		95		43			4		47		576			3		1		13			68		d	803

a.Includes PT-FI's sales to PT Smelting totaling $1.7 billion for the first six months of 2022 and $1.5 billion for the first six months of 2021.

b.Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

c.Includes maintenance charges and idle facility costs associated with major maintenance turnarounds totaling $40 million at Atlantic Copper for the first six months of 2022 and $87 million at the Miami smelter for the first six months of 2021.

d.Primarily includes capital expenditures for the Indonesia smelter projects.

e.Includes nonrecurring charges totaling $69 million associated with labor-related charges at Cerro Verde.

XII

Freeport-McMoRan Inc.

PRODUCT REVENUES AND PRODUCTION COSTS

Unit net cash costs (credits) per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of FCX's mining operations expressed on a basis relating to the primary metal product for the respective operations. FCX uses this measure for the same purpose and for monitoring operating performance by its mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although FCX's measures may not be comparable to similarly titled measures reported by other companies.

FCX presents gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. FCX uses the by-product method in its presentation of gross profit per pound of copper because (i) the majority of its revenues are copper revenues, (ii) it mines ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of FCX's costs to revenues from the copper, gold, molybdenum and other metals it produces and (iv) it is the method used by FCX's management and Board of Directors to monitor FCX's mining operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent FCX's metals sales volumes and realized prices change.

FCX shows revenue adjustments for prior period open sales as a separate line item. Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period sales. Noncash and other costs, net which are removed from site production and delivery costs in the calculation of unit net cash costs (credits), consist of items such as stock-based compensation costs, long-lived asset impairments, idle facility costs, restructuring and/or unusual charges (credits). As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in FCX's consolidated financial statements.

XIII


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,697	$	1,697	$	144	$	30	$	1,871
Site production and delivery, before net noncash and other costs shown below	975		897		95		21		1,013
By-product credits	(136)		—		—		—		—
Treatment charges	41		40		—		1		41
Net cash costs	880		937		95		22		1,054
Depreciation, depletion and amortization (DD&A)	103		95		7		1		103
Metals inventory adjustments	7		6		1		—		7
Noncash and other costs, net	36		33		2		1		36
Total costs	1,026		1,071		105		24		1,200
Other revenue adjustments, primarily for pricing on prior period open sales	(37)		(37)		—		—		(37)
Gross profit	$	634	$	589	$	39	$	6	$	634

Copper sales (millions of recoverable pounds)	389		389
Molybdenum sales (millions of recoverable pounds)a					8

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	4.36	$	4.36	$	18.75
Site production and delivery, before net noncash and other costs shown below	2.50		2.30		12.42
By-product credits	(0.35)		—		—
Treatment charges	0.11		0.11		—
Unit net cash costs	2.26		2.41		12.42
DD&A	0.27		0.24		0.81
Metals inventory adjustments	0.02		0.02		0.16
Noncash and other costs, net	0.09		0.08		0.32
Total unit costs	2.64		2.75		13.71
Other revenue adjustments, primarily for pricing on prior period open sales	(0.10)		(0.10)		—
Gross profit per pound	$	1.62	$	1.51	$	5.04

Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	1,871	$	1,013	$	103	$	7
Treatment charges	(5)		36		—		—
Noncash and other costs, net	—		36		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(37)		—		—		—
Eliminations and other	26		32		(1)		—
North America copper mines	1,855		1,117		102		7
Other miningc	5,332		3,614		389		11


Corporate, other & eliminations	(1,771)		(1,728)		16		—
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507	$	18

a.Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XIV


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended June 30, 2021
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,717	$	1,717	$	97	$	32	$	1,846
Site production and delivery, before net noncash and other costs shown below	833		789		56		18		863
By-product credits	(99)		—		—		—		—
Treatment charges	31		29		—		2		31
Net cash costs	765		818		56		20		894
DD&A	102		95		5		2		102

Noncash and other costs, net	31		30		1		—		31
Total costs	898		943		62		22		1,027
Other revenue adjustments, primarily for pricing on prior period open sales	8		8		—		—		8
Gross profit	$	827	$	782	$	35	$	10	$	827

Copper sales (millions of recoverable pounds)	389		389
Molybdenum sales (millions of recoverable pounds)a					9

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	4.42	$	4.42	$	11.75
Site production and delivery, before net noncash and other costs shown below	2.14		2.03		6.86
By-product credits	(0.25)		—		—
Treatment charges	0.08		0.07		—
Unit net cash costs	1.97		2.10		6.86
DD&A	0.26		0.25		0.55

Noncash and other costs, net	0.08		0.08		0.06
Total unit costs	2.31		2.43		7.47
Other revenue adjustments, primarily for pricing on prior period open sales	0.02		0.02		—
Gross profit per pound	$	2.13	$	2.01	$	4.28

Reconciliation to Amounts Reported

			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	1,846	$	863	$	102
Treatment charges	(12)		19		—
Noncash and other costs, net	—		31		—
Other revenue adjustments, primarily for pricing on prior period open sales	8		—		—
Eliminations and other	12		12		(1)
North America copper mines	1,854		925		101
Other miningc	5,520		3,650		367


Corporate, other & eliminations	(1,626)		(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748	$	3,067	$	483

a.Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Six months ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	3,440	$	3,440	$	282	$	57	$	3,779
Site production and delivery, before net noncash and other costs shown below	1,883		1,735		179		39		1,953
By-product credits	(269)		—		—		—		—
Treatment charges	77		75		—		2		77
Net cash costs	1,691		1,810		179		41		2,030
DD&A	207		192		13		2		207
Metals inventory adjustments	7		6		1		—		7
Noncash and other costs, net	65		60		4		1		65
Total costs	1,970		2,068		197		44		2,309
Other revenue adjustments, primarily for pricing on prior period open sales	(7)		(7)		—		—		(7)
Gross profit	$	1,463	$	1,365	$	85	$	13	$	1,463

Copper sales (millions of recoverable pounds)	770		770
Molybdenum sales (millions of recoverable pounds)a					15

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	4.46	$	4.46	$	18.36
Site production and delivery, before net noncash and other costs shown below	2.44		2.25		11.68
By-product credits	(0.35)		—		—
Treatment charges	0.10		0.10		—
Unit net cash costs	2.19		2.35		11.68
DD&A	0.27		0.25		0.85
Metals inventory adjustments	0.01		0.01		0.08
Noncash and other costs, net	0.09		0.07		0.23
Total unit costs	2.56		2.68		12.84
Other revenue adjustments, primarily for pricing on prior period open sales	(0.01)		(0.01)		—
Gross profit per pound	$	1.89	$	1.77	$	5.52

Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	3,779	$	1,953	$	207	$	7
Treatment charges	(9)		68		—		—
Noncash and other costs, net	—		65		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(7)		—		—		—
Eliminations and other	43		49		—		—
North America copper mines	3,806		2,135		207		7
Other miningc	11,708		7,461		757		11


Corporate, other & eliminations	(3,495)		(3,443)		32		—
As reported in FCX's consolidated financial statements	$	12,019	$	6,153	$	996	$	18

a.Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XVI

XVII


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Six months ended June 30, 2021
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	2,919	$	2,919	$	185	$	67	$	3,171
Site production and delivery, before net noncash and other costs shown below	1,459		1,369		113		40		1,522
By-product credits	(189)		—		—		—		—
Treatment charges	63		60		—		3		63
Net cash costs	1,333		1,429		113		43		1,585
DD&A	181		169		8		4		181

Noncash and other costs, net	73		71		1		1		73
Total costs	1,587		1,669		122		48		1,839
Other revenue adjustments, primarily for pricing on prior period open sales	7		7		—		—		7
Gross profit	$	1,339	$	1,257	$	63	$	19	$	1,339

Copper sales (millions of recoverable pounds)	697		697
Molybdenum sales (millions of recoverable pounds)a					17

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	4.19	$	4.19	$	11.12
Site production and delivery, before net noncash and other costs shown below	2.09		1.96		6.76
By-product credits	(0.27)		—		—
Treatment charges	0.09		0.09		—
Unit net cash costs	1.91		2.05		6.76
DD&A	0.26		0.24		0.51

Noncash and other costs, net	0.11		0.11		0.06
Total unit costs	2.28		2.40		7.33
Other revenue adjustments, primarily for pricing on prior period open sales	0.01		0.01		—
Gross profit per pound	$	1.92	$	1.80	$	3.79

Reconciliation to Amounts Reported

			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	3,171	$	1,522	$	181
Treatment charges	(17)		46		—
Noncash and other costs, net	—		73		—
Other revenue adjustments, primarily for pricing on prior period open sales	7		—		—
Eliminations and other	31		33		—
North America copper mines	3,192		1,674		181
Other miningc	10,165		6,690		690


Corporate, other & eliminations	(2,759)		(2,511)		31
As reported in FCX's consolidated financial statements	$	10,598	$	5,853	$	902

a.Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XVIII


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Othera		Total
Revenues, excluding adjustments	$	1,102	$	1,102	$	116	$	1,218
Site production and delivery, before net noncash and other costs shown below	712		658		69		727
By-product credits	(101)		—		—		—
Treatment charges	44		44		—		44
Royalty on metals	3		3		—		3
Net cash costs	658		705		69		774
DD&A	101		91		10		101
Metals inventory adjustments	11		10		1		11
Noncash and other costs, net	18		17		1		18
Total costs	788		823		81		904
Other revenue adjustments, primarily for pricing on prior period open sales	(154)		(154)		—		(154)
Gross profit	$	160	$	125	$	35	$	160

Copper sales (millions of recoverable pounds)	288		288

Gross profit per pound of copper:

Revenues, excluding adjustments	$	3.83	$	3.83
Site production and delivery, before net noncash and other costs shown below	2.48		2.29
By-product credits	(0.35)		—
Treatment charges	0.15		0.15
Royalty on metals	0.01		0.01
Unit net cash costs	2.29		2.45
DD&A	0.35		0.32
Metals inventory adjustments	0.04		0.03
Noncash and other costs, net	0.06		0.06
Total unit costs	2.74		2.86
Other revenue adjustments, primarily for pricing on prior period open sales	(0.53)		(0.53)
Gross profit per pound	$	0.56	$	0.44

Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	1,218	$	727	$	101	$	11
Treatment charges	(44)		—		—		—
Royalty on metals	(3)		—		—		—
Noncash and other costs, net	—		18		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(154)		—		—		—
Eliminations and other	(1)		(3)		1		—
South America mining	1,016		742		102		11
Other miningb	6,171		3,989		389		7


Corporate, other & eliminations	(1,771)		(1,728)		16		—
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507	$	18

a.Includes silver sales of 1.1 million ounces ($23.26 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XIX


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended June 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	995		$	995	$	82	$	1,077
Site production and delivery, before net noncash and other costs shown below	573		b	531		52		583
By-product credits	(72)			—		—		—
Treatment charges	29			29		—		29
Royalty on metals	2			2		—		2
Net cash costs	532			562		52		614
DD&A	94			86		8		94

Noncash and other costs, net	18			17		1		18
Total costs	644			665		61		726
Other revenue adjustments, primarily for pricing on prior period open sales	88			88		—		88
Gross profit	$	439		$	418	$	21	$	439

Copper sales (millions of recoverable pounds)	230			230

Gross profit per pound of copper:

Revenues, excluding adjustments	$	4.31		$	4.31
Site production and delivery, before net noncash and other costs shown below	2.48		b	2.30
By-product credits	(0.31)			—
Treatment charges	0.13			0.13
Royalty on metals	0.01			0.01
Unit net cash costs	2.31			2.44
DD&A	0.40			0.37

Noncash and other costs, net	0.08			0.07
Total unit costs	2.79			2.88
Other revenue adjustments, primarily for pricing on prior period open sales	0.38			0.38
Gross profit per pound	$	1.90		$	1.81

Reconciliation to Amounts Reported

				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	1,077		$	583	$	94
Treatment charges	(29)			—		—
Royalty on metals	(2)			—		—
Noncash and other costs, net	—			18		—
Other revenue adjustments, primarily for pricing on prior period open sales	88			—		—
Eliminations and other	(1)			(1)		—
South America mining	1,133			600		94
Other miningc	6,241			3,975		374


Corporate, other & eliminations	(1,626)			(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748		$	3,067	$	483

a.Includes silver sales of 0.8 million ounces ($27.33 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b.Includes nonrecurring charges totaling $69 million ($0.30 per pound of copper) associated with labor related charges at Cerro Verde.

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Six months ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Othera		Total
Revenues, excluding adjustments	$	2,204	$	2,204	$	240	$	2,444
Site production and delivery, before net noncash and other costs shown below	1,352		1,244		135		1,379
By-product credits	(213)		—		—		—
Treatment charges	84		84		—		84
Royalty on metals	6		5		1		6
Net cash costs	1,229		1,333		136		1,469
DD&A	198		179		19		198
Metals inventory adjustments	11		10		1		11
Noncash and other costs, net	35		33		2		35
Total costs	1,473		1,555		158		1,713
Other revenue adjustments, primarily for pricing on prior period open sales	35		35		—		35
Gross profit	$	766	$	684	$	82	$	766

Copper sales (millions of recoverable pounds)	552		552

Gross profit per pound of copper:

Revenues, excluding adjustments	$	4.00	$	4.00
Site production and delivery, before net noncash and other costs shown below	2.45		2.26
By-product credits	(0.38)		—
Treatment charges	0.15		0.15
Royalty on metals	0.01		0.01
Unit net cash costs	2.23		2.42
DD&A	0.36		0.32
Metals inventory adjustments	0.02		0.02
Noncash and other costs, net	0.06		0.06
Total unit costs	2.67		2.82
Other revenue adjustments, primarily for pricing on prior period open sales	0.06		0.06
Gross profit per pound	$	1.39	$	1.24

Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	2,444	$	1,379	$	198	$	11
Treatment charges	(84)		—		—		—
Royalty on metals	(6)		—		—		—
Noncash and other costs, net	—		35		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	35		—		—		—
Eliminations and other	1		(2)		1		—
South America mining	2,390		1,412		199		11
Other miningb	13,124		8,184		765		7


Corporate, other & eliminations	(3,495)		(3,443)		32		—
As reported in FCX's consolidated financial statements	$	12,019	$	6,153	$	996	$	18

a.Includes silver sales of 2.1 million ounces ($23.31 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XXI

XXII


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Six months ended June 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	2,093		$	2,093	$	147	$	2,240
Site production and delivery, before net noncash and other costs shown below	1,092		b	1,022		91		1,113
By-product credits	(126)			—		—		—
Treatment charges	64			64		—		64
Royalty on metals	4			4		—		4
Net cash costs	1,034			1,090		91		1,181
DD&A	195			181		14		195

Noncash and other costs, net	28			26		2		28
Total costs	1,257			1,297		107		1,404
Other revenue adjustments, primarily for pricing on prior period open sales	99			99		—		99
Gross profit	$	935		$	895	$	40	$	935

Copper sales (millions of recoverable pounds)	489			489

Gross profit per pound of copper:

Revenues, excluding adjustments	$	4.28		$	4.28
Site production and delivery, before net noncash and other costs shown below	2.23		b	2.09
By-product credits	(0.26)			—
Treatment charges	0.13			0.13
Royalty on metals	0.01			0.01
Unit net cash costs	2.11			2.23
DD&A	0.40			0.37

Noncash and other costs, net	0.06			0.05
Total unit costs	2.57			2.65
Other revenue adjustments, primarily for pricing on prior period open sales	0.20			0.20
Gross profit per pound	$	1.91		$	1.83

Reconciliation to Amounts Reported

				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	2,240		$	1,113	$	195
Treatment charges	(64)			—		—
Royalty on metals	(4)			—		—
Noncash and other costs, net	—			28		—
Other revenue adjustments, primarily for pricing on prior period open sales	99			—		—
Eliminations and other	(1)			(2)		—
South America mining	2,270			1,139		195
Other miningc	11,087			7,225		676


Corporate, other & eliminations	(2,759)			(2,511)		31
As reported in FCX's consolidated financial statements	$	10,598		$	5,853	$	902

a.Includes silver sales of 1.7 million ounces ($26.67 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b.Includes nonrecurring charges totaling $69 million ($0.14 per pound of copper) associated with labor related charges at Cerro Verde..

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XXIII


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash (Credits) Costs

Three Months Ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	1,582	$	1,582	$	865	$	32	$	2,479
Site production and delivery, before net noncash and other costs shown below	587		374		205		8		587
Gold and silver credits	(888)		—		—		—		—
Treatment charges	98		63		34		1		98
Export duties	85		54		30		1		85
Royalty on metals	108		72		35		1		108
Net cash (credits) costs	(10)		563		304		11		878
DD&A	262		167		91		4		262

Noncash and other costs, net	3		2		1		—		3
Total costs	255		732		396		15		1,143
Other revenue adjustments, primarily for pricing on prior period open sales	(201)		(201)		(8)		(1)		(210)
PT Smelting intercompany profit	26		17		9		—		26
Gross profit	$	1,152	$	666	$	470	$	16	$	1,152

Copper sales (millions of recoverable pounds)	410		410
Gold sales (thousands of recoverable ounces)					474

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	$	3.86	$	3.86	$	1,827
Site production and delivery, before net noncash and other costs shown below	1.43		0.91		433
Gold and silver credits	(2.17)		—		—
Treatment charges	0.24		0.15		72
Export duties	0.21		0.13		63
Royalty on metals	0.27		0.18		74
Unit net cash (credits) costs	(0.02)		1.37		642
DD&A	0.63		0.41		193

Noncash and other costs, net	0.01		0.01		2
Total unit costs	0.62		1.79		837
Other revenue adjustments, primarily for pricing on prior period open sales	(0.49)		(0.49)		(17)
PT Smelting intercompany profit	0.06		0.04		19
Gross profit per pound/ounce	$	2.81	$	1.62	$	992

Reconciliation to Amounts Reported
			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	2,479	$	587	$	262
Treatment charges	(98)		—		—
Export duties	(85)		—		—
Royalty on metals	(108)		—		—
Noncash and other costs, net	—		3		—
Other revenue adjustments, primarily for pricing on prior period open sales	(210)		—		—
PT Smelting intercompany profit	—		(26)		—
Indonesia mining	1,978		564		262
Other miningb	5,209		4,167		229


Corporate, other & eliminations	(1,771)		(1,728)		16
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507

a.Includes silver sales of 1.6 million ounces ($20.71 per ounce average realized price).

b.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XXIV


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended June 30, 2021
(In millions)	By-Product		Co-Product Method
	Method		Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	1,323	$	1,323	$	543	$	37	$	1,903
Site production and delivery, before net noncash and other credits shown below	476		331		136		9		476
Gold and silver credits	(597)		—		—		—		—
Treatment charges	74		52		21		2		75
Export duties	44		30		13		1		44
Royalty on metals	80		59		20		1		80
Net cash costs	77		472		190		13		675
DD&A	247		172		70		5		247

Noncash and other costs, net	11		8		3		—		11
Total costs	335		652		263		18		933
Other revenue adjustments, primarily for pricing on prior period open sales	87		87		16		2		105
PT Smelting intercompany loss	(41)		(28)		(12)		(1)		(41)
Gross profit	$	1,034	$	730	$	284	$	20	$	1,034

Copper sales (millions of recoverable pounds)	310		310
Gold sales (thousands of recoverable ounces)					302

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	$	4.27	$	4.27	$	1,795
Site production and delivery, before net noncash and other costs shown below	1.54		1.07		449
Gold and silver credits	(1.93)		—		—
Treatment charges	0.24		0.16		70
Export duties	0.14		0.10		42
Royalty on metals	0.26		0.19		66
Unit net cash costs	0.25		1.52		627
DD&A	0.79		0.55		232

Noncash and other costs, net	0.04		0.03		11
Total unit costs	1.08		2.10		870
Other revenue adjustments, primarily for pricing on prior period open sales	0.28		0.28		53
PT Smelting intercompany loss	(0.13)		(0.09)		(39)
Gross profit per pound/ounce	$	3.34	$	2.36	$	939

Reconciliation to Amounts Reported
			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	1,903	$	476	$	247
Treatment charges	(75)		—		—
Export duties	(44)		—		—
Royalty on metals	(80)		—		—
Noncash and other costs, net	—		11		—
Other revenue adjustments, primarily for pricing on prior period open sales	105		—		—
PT Smelting intercompany loss	—		41		—
Indonesia mining	1,809		528		247
Other miningb	5,565		4,047		221


Corporate, other & eliminations	(1,626)		(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748	$	3,067	$	483

a.Includes silver sales of 1.4 million ounces ($26.08 per ounce average realized price).

b.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XXV


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash (Credits) Costs

Six months ended June 30, 2022
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	3,184		$	3,184	$	1,638	$	69	$	4,891
Site production and delivery, before net noncash and other costs shown below	1,121			730		375		16		1,121
Gold and silver credits	(1,710)			—		—		—		—
Treatment charges	191			124		64		3		191
Export duties	164			107		55		2		164
Royalty on metals	201			135		64		2		201
Net cash (credits) costs	(33)			1,096		558		23		1,677
DD&A	510			332		171		7		510

Noncash and other costs, net	30		b	20		10		—		30
Total costs	507			1,448		739		30		2,217
Other revenue adjustments, primarily for pricing on prior period open sales	32			32		3		—		35
PT Smelting intercompany loss	(27)			(17)		(9)		(1)		(27)
Gross profit	$	2,682		$	1,751	$	893	$	38	$	2,682

Copper sales (millions of recoverable pounds)	789			789
Gold sales (thousands of recoverable ounces)						880

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	$	4.04		$	4.04	$	1,861
Site production and delivery, before net noncash and other costs shown below	1.42			0.92		426
Gold and silver credits	(2.17)			—		—
Treatment charges	0.24			0.16		73
Export duties	0.21			0.14		63
Royalty on metals	0.26			0.17		72
Unit net cash (credits) costs	(0.04)			1.39		634
DD&A	0.64			0.42		194

Noncash and other costs, net	0.04		b	0.03		11
Total unit costs	0.64			1.84		839
Other revenue adjustments, primarily for pricing on prior period open sales	0.04			0.04		3
PT Smelting intercompany loss	(0.03)			(0.02)		(10)
Gross profit per pound/ounce	$	3.41		$	2.22	$	1,015

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	4,891		$	1,121	$	510
Treatment charges	(191)			—		—
Export duties	(164)			—		—
Royalty on metals	(201)			—		—
Noncash and other costs, net	12			42		—
Other revenue adjustments, primarily for pricing on prior period open sales	35			—		—
PT Smelting intercompany loss	—			27		—
Indonesia mining	4,382			1,190		510
Other miningc	11,132			8,406		454


Corporate, other & eliminations	(3,495)			(3,443)		32
As reported in FCX's consolidated financial statements	$	12,019		$	6,153	$	996

a.Includes silver sales of 3.1 million ounces ($22.18 per ounce average realized price).

b.Includes credits of $30 million ($0.04 per pound of copper) associated with adjustments to prior year treatment and refining charges and a charge of $41 million ($0.05 per pound of copper) associated with a settlement of an administrative fine levied by the Indonesia government. Also includes a charge of $18 million ($0.02 per pound of copper) to reserve for exposure associated with export duties in prior periods.

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.

XXVI

XXVII


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs

Six months ended June 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	2,435		$	2,435	$	995	$	68	$	3,498
Site production and delivery, before net noncash and other credits shown below	859			598		244		17		859
Gold and silver credits	(1,059)			—		—		—		—
Treatment charges	140			97		40		3		140
Export duties	73			51		21		1		73
Royalty on metals	140			100		38		2		140
Net cash costs	153			846		343		23		1,212
DD&A	446			310		127		9		446

Noncash and other costs, net	3		b	2		1		—		3
Total costs	602			1,158		471		32		1,661
Other revenue adjustments, primarily for pricing on prior period open sales	72			72		(4)		—		68
PT Smelting intercompany loss	(90)			(63)		(25)		(2)		(90)
Gross profit	$	1,815		$	1,286	$	495	$	34	$	1,815

Copper sales (millions of recoverable pounds)	568			568
Gold sales (thousands of recoverable ounces)						558

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	$	4.29		$	4.29	$	1,785
Site production and delivery, before net noncash and other credits shown below	1.51			1.05		439
Gold and silver credits	(1.86)			—		—
Treatment charges	0.24			0.17		71
Export duties	0.13			0.09		37
Royalty on metals	0.25			0.18		68
Unit net cash costs	0.27			1.49		615
DD&A	0.78			0.55		228

Noncash and other costs, net	0.01		b	—		1
Total unit costs	1.06			2.04		844
Other revenue adjustments, primarily for pricing on prior period open sales	0.12			0.12		(8)
PT Smelting intercompany loss	(0.16)			(0.11)		(46)
Gross profit per pound/ounce	$	3.19		$	2.26	$	887

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	3,498		$	859	$	446
Treatment charges	(140)			—		—
Export duties	(73)			—		—
Royalty on metals	(140)			—		—
Noncash and other costs, net	31			34		—
Other revenue adjustments, primarily for pricing on prior period open sales	68			—		—
PT Smelting intercompany loss	—			90		—
Indonesia mining	3,244			983		446
Other miningc	10,113			7,381		425


Corporate, other & eliminations	(2,759)			(2,511)		31
As reported in FCX's consolidated financial statements	$	10,598		$	5,853	$	902

a.Includes silver sales of 2.6 million ounces ($26.05 per ounce average realized price).

b.Includes credits of $31 million ($0.05 per pound of copper) associated with adjustments to prior year treatment and refining charges and charges of $16 million ($0.03 per pound of copper) associated with a potential settlement of an administrative fine levied by the Indonesia government.

c.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X.


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs

	Three Months Ended June 30,
(In millions)	2022		2021

Revenues, excluding adjustmentsa	$	151	$	95
Site production and delivery, before net noncash and other costs shown below	78		54
Treatment charges and other	7		6
Net cash costs	85		60
DD&A	18		17

Noncash and other costs, net	2		2
Total costs	105		79
Gross profit	$	46	$	16

Molybdenum sales (millions of recoverable pounds)a	8		7

Gross profit per pound of molybdenum:

Revenues, excluding adjustmentsa	$	18.87	$	12.77
Site production and delivery, before net noncash and other costs shown below	9.77		7.29
Treatment charges and other	0.85		0.85
Unit net cash costs	10.62		8.14
DD&A	2.27		2.29

Noncash and other costs, net	0.30		0.30
Total unit costs	13.19		10.73
Gross profit per pound	$	5.68	$	2.04

Reconciliation to Amounts Reported

			Production
Three Months Ended June 30, 2022	Revenues		and Delivery		DD&A
Totals presented above	$	151	$	78	$	18
Treatment charges and other	(7)		—		—
Noncash and other costs, net	—		2		—
Molybdenum mines	144		80		18
Other miningb	7,043		4,651		473


Corporate, other & eliminations	(1,771)		(1,728)		16
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507

Three Months Ended June 30, 2021
Totals presented above	$	95	$	54	$	17
Treatment charges and other	(6)		—		—
Noncash and other costs, net	—		2		—


Molybdenum mines	89		56		17
Other miningb	7,285		4,519		451


Corporate, other & eliminations	(1,626)		(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748	$	3,067	$	483

a.Reflects sales of the Molybdenum mines' production to FCX's molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

b.Represents the combined total for FCX's other mining operations as presented in the supplemental schedule, "Business Segments," beginning on page X. Also includes amounts associated with FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.


Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs

	Six months ended June 30,
(In millions)	2022		2021

Revenues, excluding adjustmentsa	$	285	$	171
Site production and delivery, before net noncash and other costs shown below	150		108
Treatment charges and other	13		12
Net cash costs	163		120
DD&A	34		32
Metals inventory adjustments	—		1
Noncash and other costs, net	5		5
Total costs	202		158
Gross profit	$	83	$	13

Molybdenum sales (millions of recoverable pounds)a	15		14

Gross profit per pound of molybdenum:

Revenues, excluding adjustmentsa	$	18.81	$	12.12
Site production and delivery, before net noncash and other costs shown below	9.90		7.68
Treatment charges and other	0.85		0.85
Unit net cash costs	10.75		8.53
DD&A	2.27		2.27
Metals inventory adjustments	—		0.06
Noncash and other costs, net	0.34		0.36
Total unit costs	13.36		11.22
Gross profit per pound	$	5.45	$	0.90

Reconciliation to Amounts Reported
							Metals
			Production				Inventory
Six months ended June 30, 2022	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	285	$	150	$	34	$	—
Treatment charges and other	(13)		—		—		—
Noncash and other costs, net	—		5		—		—
Molybdenum mines	272		155		34		—
Other miningb	15,242		9,441		930		18


Corporate, other & eliminations	(3,495)		(3,443)		32		—
As reported in FCX's consolidated financial statements	$	12,019	$	6,153	$	996	$	18

Six months ended June 30, 2021
Totals presented above	$	171	$	108	$	32	$	1
Treatment charges and other	(12)		—		—		—
Noncash and other costs, net	—		5		—		—


Molybdenum mines	159		113		32		1
Other miningb	13,198		8,251		839		—


Corporate, other & eliminations	(2,759)		(2,511)		31		—
As reported in FCX's consolidated financial statements	$	10,598	$	5,853	$	902	$	1

FCX Conference Call 2nd Quarter 2022 Results July 21, 2022

Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to business outlook, strategy, goals or targets; global market conditions; ore grades and milling rates; production and sales volumes; unit net cash costs (credits); capital expenditures; operating costs; operating plans; cash flows; liquidity; PT-FI's financing, construction and completion of additional domestic smelting capacity in Indonesia in accordance with the terms of its special mining license (IUPK); FCX’s commitments to deliver responsibly produced copper, including plans to implement and validate all of its operating sites under the Copper Mark and to comply with other disclosure frameworks; execution of FCX's energy and climate strategies and the underlying assumptions and estimated impacts on FCX’s business related thereto; achievement of climate commitments and net zero aspiration; improvements in operating procedures and technology innovations; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; tax rates; export quotas and duties; 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 proceedings; debt repurchases; and the ongoing implementation of FCX’s financial policy and future returns to shareholders, including dividend payments (base or variable) and share repurchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “could,” “to be,” “potential,” “assumptions,” “guidance,” “aspirations,” “future” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases is at the discretion of the Board of Directors (Board) and management, respectively, and is subject to a number of factors, including maintaining FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, business prospects, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by the Board or management, as applicable. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion. FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities FCX produces, primarily copper; changes in FCX's cash requirements, financial position, financing or investment plans; changes in general market, economic, tax, regulatory or industry conditions, including as a result of Russia’s invasion of Ukraine or potential global economic downturn or recession; reductions in liquidity and access to capital; the ongoing COVID-19 pandemic and any future public health crisis; political and social risks; operational risks inherent in mining, with higher inherent risks in underground mining; fluctuations in price and availability of commodities purchased; constraints on supply, logistics and transportation services; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations; production rates; timing of shipments; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; the potential effects of violence in Indonesia generally and in the province of Papua; the Indonesia government’s extension of PT-FI’s export license after March 19, 2023; satisfaction of requirements in accordance with PT-FI’s IUPK to extend mining rights from 2031 through 2041; the Indonesia government’s approval of a deferred schedule for completion of additional domestic smelting capacity in Indonesia; cybersecurity incidents; labor relations, including labor-related work stoppages and costs; the results of the human health assessment to evaluate the potential impacts of tailings and mining waste, and compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks and litigation results; FCX’s ability to comply with its responsible production commitments under specific frameworks and any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” in FCX’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (SEC). Investors are cautioned that many of the assumptions upon which FCX’s forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs or technological solutions and innovation, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it undertakes no obligation to update any forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes. This presentation also includes forward-looking statements regarding mineral resources not included in proven and probable mineral reserves. 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. 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 factors. This presentation also includes forward-looking statements regarding mineral potential, which includes exploration targets and mineral resources but will not qualify as mineral reserves until comprehensive engineering studies establish legal and economic feasibility. Significant additional evaluation is required and no assurance can be given that the potential quantities of metal will be produced. Accordingly, no assurances can be given that estimated mineral resources or estimated mineral potential not included in mineral reserves will become proven and probable mineral reserves. This presentation also contains financial measures such as unit net cash costs (credits) per pound of copper, net debt and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), which are not recognized under U.S. generally accepted accounting principles (GAAP). As required by SEC Regulation G, FCX's calculation and reconciliation of unit net cash costs (credits) per pound of copper and net debt to amounts reported in FCX’s consolidated financial statements are in the supplemental schedules of FCX’s 2Q22 press release, which is available on FCX's website, fcx.com. A reconciliation of amounts reported in FCX’s consolidated financial statements to adjusted EBITDA is included on slide 32. For forward-looking non-GAAP measures we are unable to provide a reconciliation to the most comparable GAAP financial measure because the information needed to reconcile these measures is dependent upon future events, many of which are outside of management’s control as described above. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with our accounting policies for future periods is extremely difficult and requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions. 2

3 2Q22 Highlights April Key Stats Actual Estimate Copper Sales (mm lbs) 1,087 1,040 Gold Sales (k ozs) 476 405 Unit Net Cash Costs ($/lb) $1.41 $1.41 Operating Cash Flow CAPEX $0.9 (3) $1.6 $3.4 $1.6 Cash Flows Net Debt (4) 2Q22 2Q21 2Q22 ($ bns) • Solid operational results o Copper & gold sales 5% & 18% above April 2022 guidance o Copper & gold sales 17% & 56% above 2Q21 actuals o 2Q unit net cash costs in line with April 2022 guidance o Indonesia achieved copper unit net cash credit of $0.02 per lb • Strong margins/cash flows o Adjusted EBITDA of $2.3 bn (1) o Results include $355 mm revenue/Adjusted EBITDA reduction on prior period provisionally priced sales (2) • Retired $754 mm in debt through open-market transactions • Repurchased $1.8 bn of shares in open market since inception • $2 bn increase in share repurchase program up to $5 bn • Strong balance sheet, liquidity and financial flexibility (1) A reconciliation of amounts reported in FCX’s consolidated financial statements to Adjusted EBITDA is included on slide 32. (2) See slide 31 for details on FCX’s 2Q22 prior period open pounds adjustment. (3) Includes $0.4 bn for major projects and $0.2 bn for the Indonesia smelter projects. (4) Net debt equals consolidated debt less consolidated cash. 2Q22 includes $0.6 bn in net debt associated with the Indonesia smelter projects. See Cautionary Statement. Copper Realization Gold Realization $4.03/lb $1,827/oz

Copper Structurally Supported by Favorable Long-term Fundamentals 4 Current Copper Market Conditions Price insufficient to support new mine supply development $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 0 300,000 600,000 900,000 1,200,000 1,500,000 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Copper Price Inventories (metric tons) Cu Price ($/lb) Global Copper Exchange Inventories Includes LME, COMEX and Shanghai exchanges Source: Bloomberg as of 7/20/22 * June 2022 presentation: Copper outlook under an accelerated energy transition • Physical demand remains strong • Inventories low by historical standards • Ongoing supply disruptions and social challenges in Latin America • Secular growth in metals demand required for clean energy technologies • Project pipeline is thin • Looming supply deficits Rapid decline reflects • Concerns about global economy • Chinese economic data • Rising interest rates • Strength of U.S. dollar Incentive Price: $4.25*

S&P Global Copper Study Published in July 2022 5 Key takeaways from independent study led by Dan Yergin as project chairman • Copper — the “metal of electrification” — is essential to all energy transition plans • Copper demand is projected to grow from 25 million metric tons (MMt) today to about 50 MMt by 2035, a record-high level that will be sustained and continue to grow to 53 MMt by 2050 • Potential supply-demand gap is expected to be very large as the transition proceeds • Substitution and recycling will not be enough to meet the demands of electric vehicles (EVs), power infrastructure, and renewable generation • Unless massive new supply comes online in a timely way, the global goal of Net-Zero Emissions by 2050 will be short-circuited and remain out of reach

6 2008/2009 • Aggressive actions to reduce capital & costs • Flexed operating plans • Debt free by 2011 • Share price recovery: up 5x in two years from bottom • Significant reduction in costs and capital • Flexed operating plans • Sold assets at attractive prices • Reduced net debt by over $9 bn during 2016 • Maintained core set of assets • Share price recovery: up 1.7x in two years from bottom Management Success & Experience in Successfully Navigating Prior Downturns 2015/2016 Global Financial crisis 18 months after Phelps Dodge Acquisition China slowdown 2020 COVID-19 Pandemic • Effective global response: protected workforce/communities and served customers • Solid cost and capital management • Achieved important milestones with Grasberg underground project and Lone Star ramp-up • Share price recovery: up 10x in two years from bottom • FCX is in a position of strength to navigate the current global market uncertainties following actions in recent years • Long-term market fundamentals and value opportunities for our stakeholders remain extraordinarily favorable 6 Built strong balance sheet Maintained flexible growth optionsSuccessfully expanded low-cost operations See Cautionary Statement.

7 • Lone Star - Arizona o Increasing operating rates to achieve 300 mm lbs of copper/year from oxide ores o Future opportunities for large sulfide resource • Bagdad o Progressing 2X concentrator feasibility • Sulfide Leaching o Pursuing technologies to recover low-cost/ low-carbon copper from existing leach stockpiles • Cerro Verde - Peru o Concentrator facilities set a quarterly record averaging 427k mt/d o Positive drill results indicate opportunities to expand reserves with increased ore grades • El Abra - Chile o Long-term growth options under consideration • Grasberg o Sustained strong underground performance o Industry-leading cost position o Advancing mill projects, dual-fuel power plant and Kucing Liar development o Smelter construction activities in-progress 2Q 2022 Operations and Project Update North America South America Indonesia Cu Sales: 389 mm lbs Cu Sales: 288 mm lbs Cu Sales: 410 mm lbs Au Sales: 474 k ozs See Cautionary Statement.

Annual Sales Profile July 2022 Estimate (1) Consolidated copper sales include 741 mm lbs in 2021, 834 mm lbs in 2022e, 1,430 mm lbs in 2023e and 1,408 mm lbs in 2024e for noncontrolling interests; excludes purchased copper. (2) Consolidated gold sales include 253k ozs in 2021, 318k ozs in 2022e, 796k ozs in 2023e and 820k ozs in 2024e for noncontrolling interests. e = estimate. See Cautionary Statement. 0 1 2 3 4 5 2021 2022e 2023e 2024e 3.8 4.2 4.45 4.2 0 1 2 2021 2022e 2023e 2024e 1.4 1.7 1.7 1.6 0 25 50 75 100 2021 2022e 2023e 2024e 82 80 80 80 (million ozs)(billion lbs)Copper Sales(1) Gold Sales(2) (million lbs)Molybdenum Sales 8

($ and ¢ per pound of copper) April 2022e Guidance Price Assumptions $4.75 Cu / $1,950 Au / $19 Mo Impacts July 2022e Guidance Price Assumptions $3.25 Cu / $1,700 Au / $16 Mo Site Production & Delivery $2.10 +3¢* $2.13 By-product Credits (1.00) +5¢** (0.95) Treatment Charges 0.16 No Change 0.16 Royalties & Export Duties 0.18 -2¢ 0.16 Net Unit Cash Costs $1.44 $1.50 Reconciliation of 2022e Unit Net Cash Cost Guidance e = estimate. See Cautionary Statement. * Reflects higher energy costs and consumables, impacts of change in estimate for copper in leach pad at El Abra, partly offset by currency exchange rates and lower profit sharing ** Reflects lower gold and molybdenum price assumptions for 2H22e 9 *** Support costs, taxes/fees, social costs & other 2022e Site Production Costs Breakdown Materials and Supplies 33% Labor 28% Energy 22% Other 11%*** Acid 6%

10 NOTE: EBITDA equals operating income plus depreciation, depletion and amortization. e = estimate. See Cautionary Statement. (1) U.S. Dollar Exchange Rates: 1,000 Chilean peso, 15,000 Indonesian rupiah, $0.69 Australian dollar, $1.04 Euro, 3.90 Peruvian Nuevo Sol base case assumption. Each +10% equals a 10% strengthening of the U.S. dollar; a strengthening of the U.S. dollar against forecasted expenditures in these foreign currencies equates to a cost benefit of noted amounts. $0 $4 $8 $12 $16 Cu $3.00/lb Cu $4.00/lb Cu $5.00/lb Average ’23e/’24e $0 $3 $6 $9 $12 Cu $3.00/lb Cu $4.00/lb Cu $5.00/lb Average ’23e/’24e ($ in bns except copper, gold and molybdenum prices) Operating cash flow l Excludes working capital changes ($1,700/oz gold, $16/lb molybdenum) EBITDA l ($1,700/oz gold, $16/lb molybdenum) EBITDA and Cash Flow at Various Copper Prices Sensitivities Average ’23e/’24e (US$ in mms) EBITDA Operating Cash Flow Copper +/-$0.10/lb $335 Molybdenum +/-$1.00/lb $ 70 Gold +/-$50/oz $ 55 Currencies (1) +/-10% $160 Diesel +/-10% $ 80 Copper +/-$0.10/lb $430 Molybdenum +/-$1.00/lb $ 80 Gold +/-$50/oz $ 80 Currencies(1) +/-10% $225 Diesel +/-10% $110

2021 2022e 2023e Consolidated Capital Expenditures Excluding Indonesia Smelter Projects CAPEX (1) Major Projects (1) See slide 29; Indonesia smelter projects are being funded with PT-FI’s senior notes and its available revolving credit facility. (2) Net of scheduled contributions from PT Inalum for expansion capital spending that will be reflected in financing on the cash flow statement. (3) Major projects include CAPEX associated with Grasberg underground development and supporting mill and power capital costs ($1.2 bn in 2022e and $0.7 bn in 2023e). For detail of discretionary spending see slide 30. NOTE: Amounts include capitalized interest. Discretionary CAPEX and smelter spending will be excluded from the free cash flow (as defined on slide 14) calculation for purposes of the performance-based payout framework. e= estimate. See Cautionary Statement. Other $1.3 $1.9 $0.6 Net of Scheduled Contributions ($ in bns) $1.7(2) $2.9(2) $3.1 $1.3(3) $1.2 $ 11 $3.1 $1.3 $0.9(3) Planned Discretionary Planned Discretionary $0.9 $0.6

Future Growth Embedded in Existing Asset Base Provides Increased Leverage to Copper Prices • Advancing sulfide leaching technologies • Targeting near-term increases of 100-200 mm lbs per annum • Double concentrator capacity • Commencing feasibility study, stakeholder engagement • Increasing confidence in commencing construction in 2023 for potential 2026 start-up • Commenced development of underground copper/gold reserves • Benefits from substantial shared infrastructure 12 • Near-term oxide expansions • Increasing exploration to define resource • Potential long-term sulfide investment • Large sulfide resource supports a major expansion opportunity • Preparations for submitting environmental impact statement and stakeholder engagement • Monitoring regulatory and fiscal matters New Leach Technologies Americas Bagdad Expansion Arizona Kucing Liar Grasberg District Indonesia El Abra Expansion Chile Lone Star Expansions Arizona

13 $0 $2 $4 $6 $8 2022 2023 2024 2025 2026 2027 Thereafter Strong Balance Sheet and Liquidity Attractive debt maturity profile (US$ bns) $7.9 4.125%, 4.375%, 5.25%, 4.25%, 4.625%, 5.40% & 5.45% Sr. Notes and FMC Sr. Notes$ - $1.0 3.875% Sr. Notes Callable at par in 4Q22 $0.8 4.55% Sr. Notes FCX Revolver $ - FCX/FMC Senior Notes 8.1 PT-FI Senior Notes 3.0 Total Debt $ 11.1 Consolidated Cash and Cash Eq. $ 9.5 Net Debt (1) $ 1.6 Net Debt/Adjusted EBITDA(2) 0.1x $ - at 6/30/22Total Debt & Cash $ - $ 1.4 (1) Includes $0.6 bn associated with the Indonesia smelter projects. (2) Trailing 12-months. (3) For purposes of this schedule, maturities of uncommitted lines of credit and other short-term lines are included in FCX’s revolver balance, which matures in 2023/2024. See Cautionary Statement. (3) 5.00% Sr. Notes & FMC Sr. Notes 4.763% PT-FI Sr. Notes 5.315% & 6.2% PT-FI Sr. Notes Open Market Debt Retirements • Purchased $754 mm of Sr. Notes in open market during 2022, including $582 mm in 2Q22 • 5% discount to par • Annual interest savings ~ $36 mm

Up to 50% Free Cash Flow(1) to Be Returned $0.60 Per Share in Dividends To stockholders under performance-based payout framework Includes $0.30 per share annual base dividend and $0.30 per share variable dividend for 2022 14 Financial Policy NOTE: Target net debt $3 - $4 bn, excluding project debt for additional smelting capacity in Indonesia. (1) Available cash flows generated after planned capital spending (excluding Indonesia smelter projects funded with debt and discretionary CAPEX) and distributions to noncontrolling interests. See Cautionary Statement. Board will review structure of performance-based payout framework at least annually Share Repurchase Program Scorecard as of July 20, 2022 Authorized Repurchased Remaining Avg. Price Shares Outstanding ~1.429 billion Shares Repurchased $5.0 billion ~$1.8 billion $38.35 per share 47.9 million ~$3.2 billion Includes $2 bn increase in July 2022 As of July 20, 2022Including 35.1 mm in 2022 Includes $0.5 bn in 1Q22 and $0.8 bn since 1Q22 Priorities 2Q22 $37.66/share avg. July $28.30/share avg. Cash returns to stockholders

Long-lived reserves Embedded growth options Strong balance sheet Cash returns for shareholders Responsible producer of scale Experienced management team 15 Executing Clearly Defined Strategy Focused on Copper

Reference Slides

18 Copper – Metal of the Future Critical to Global Decarbonization Source: International Copper Association See Cautionary Statement. Freeport is strategically positioned as a leading copper producer. Global Decarbonization is Expected to Drive Intensity of Copper Use More than 65% of the world’s copper is used in applications that deliver electricity Electric vehicles use up to four times more copper than internal combustion engines Copper consumption associated with electric vehicles and renewable energy technologies to grow rapidly Renewable energy technologies use four to five times more copper than fossil fuel power generation

The Copper Mark 19 Recognition for Responsible Production • Assurance framework developed to demonstrate the copper industry’s responsible production practices • Producers participating in the Copper Mark are committed to adhering to internationally recognized responsible operating practices • Copper Mark governed by independent board including NGO participation and multi-stakeholder advisory council • Framework covers 32 issue areas across 5 ESG categories developed by the Responsible Minerals Initiative’s Risk Readiness Assessment • Requires third-party assurance of site performance and independent Copper Mark validation every three years • FCX is committed to achieving the Copper Mark at all of our copper producing sites • The Copper Mark is currently evaluating an extension of its framework to metals that are produced as a by-product of copper; FCX supports this effort COPPER MARK STATUS BY SITE: AWARDED Atlantic Copper smelter & refinery (Spain) Bagdad mine (AZ) Cerro Verde mine (Peru) Chino mine (NM) El Abra mine (Chile) El Paso refinery (TX) Miami mine & smelter (AZ) Morenci mine (AZ) Safford mine (AZ) Sierrita mine (AZ) Tyrone mine (NM) LETTER OF COMMITMENT PT-FI mine (Indonesia) Note: Copper Mark status as of 07/20/2022 See Cautionary Statement.

Financial Highlights Copper Consolidated Volumes (mm lbs) 1,087 929 Average Realization (per lb) $ 4.03 $ 4.34 Site Production & Delivery Costs (per lb) $ 2.09 $ 2.02 Unit Net Cash Costs (per lb) $ 1.41 $ 1.48 Gold Consolidated Volumes (000’s ozs) 476 305 Average Realization (per oz) $1,827 $1,794 Molybdenum Consolidated Volumes (mm lbs) 20 22 Average Realization (per lb) $19.44 $13.11 2Q22 (1) Includes working capital and other sources of $0.1 bn for 2Q22 and $0.5 bn for 2Q21. (2) 2Q22 includes $3.0 bn in senior notes issued by PT-FI in April 2022. (3) 2Q22 includes $2.4 bn at PT-FI for future smelter funding. Revenues $ 5.4 $ 5.7 Net Income Attributable to Common Stock $ 0.8 $ 1.1 Diluted Net Income Per Share $ 0.57 $ 0.73 Operating Cash Flows $ 1.6 $ 2.4 Capital Expenditures $ 0.9 $ 0.4 Total Debt $ 11.1 $ 9.7 Consolidated Cash and Cash Equivalents $ 9.5 $ 6.3 (1) (in billions, except per share amounts) Sales Data Financial Results 2Q21 20 (2) (3)

21 2Q22 Mining Operating Summary (1) Includes 7 mm lbs in 2Q22 and 4 mm lbs in 2Q21 from South America. (2) Silver sales totaled 1.1 mm ozs in 2Q22 and 0.8 mm ozs in 2Q21. (3) Silver sales totaled 1.6 mm ozs in 2Q22 and 1.4 mm ozs in 2Q21. NOTE: For a reconciliation of unit net cash costs (credits) per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to “Product Revenues and Production Costs” in the supplemental schedules of FCX’s 2Q22 press release, which is available on FCX’s website. Site Production & Delivery, excl. adjs. $2.50 $2.48 $1.43 $2.09 By-product Credits (0.35) (0.35) (2.17) (1.04) Treatment Charges 0.11 0.15 0.24 0.18 Royalties & Export Duties - 0.01 0.48 0.18 Unit Net Cash Costs (Credits) $2.26 $2.29 $(0.02) $1.41 North South America America Indonesia Consolidated(per lb of Cu)2Q22 Unit Net Cash Costs North America 2220 (1)(1) Mo mm lbs 2Q22 2Q21 389389 2Q22 2Q21 Cu mm lbs Indonesia (3) 310 410 2Q22 2Q21 302 474 2Q22 2Q21 South America (2) 2Q22 2Q21 288 230 by Region Au 000 ozs Sales From Mines for 2Q22 & 2Q21

2022e Operational Data 22 22 (1) (1) Includes molybdenum produced in South America. (2) Includes gold produced in North America. (3) Estimates assume average prices of $1,700/oz for gold and $16/lb for molybdenum for 2H22e. Quarterly unit costs will vary significantly with quarterly metal sales volumes. (4) Production costs include profit sharing in South America and severance taxes in North America. e = estimate. See Cautionary Statement. (per lb of Cu) Site Production & Delivery, excl. adjs.(4) $2.48 $2.49 $1.52 $2.13 By-product Credits (0.33) (0.33) (2.00) (0.95) Treatment Charges 0.10 0.14 0.24 0.16 Royalties & Export Duties - 0.01 0.42 0.16 Unit Net Cash Costs $2.25 $2.31 $0.18 $1.50 2022e Unit Net Cash Costs (3) 1,160 80 1,505 1,549 1.7 (2) North America IndonesiaSouth America by Region2022e Sales Mo mm lbs Cu mm lbs Au mm ozs North South America America Indonesia Consolidated

2022e Outlook Sales Outlook Unit Net Cash Cost of Copper Operating Cash Flows (2) Capital Expenditures (1) Assumes average prices of $1,700/oz gold and $16/lb molybdenum in 2H22e. (2) Assumes average prices of $1,700/oz gold and $16/lb molybdenum in 2H22e; each $100/oz change in gold would have an approximate $80 mm impact and each $2/lb change in molybdenum would have an approximate $50 mm impact. (3) Net of $1.4 billion of working capital and other uses. (4) PT Inalum scheduled contributions in 2022e approximate $0.2 bn. Major projects CAPEX includes $1.3 bn for planned projects and $0.6 bn of discretionary projects. (5) Indonesia smelter projects are being funded with PT-FI’s senior notes and its available revolving credit facility. e = estimate. See Cautionary Statement. • Copper: 4.2 billion lbs • Gold: 1.7 million ozs • Molybdenum: 80 million lbs • ~$4.5 billion(3) @ $3.25/lb copper for 2H22e • Each 10¢/lb change in copper in 2H22e = $230 million impact • Site prod. & delivery o 2022e: $2.13/lb o 3Q22e: $2.23/lb • After by-product credits (1) o 2022e: $1.50/lb o 3Q22e: $1.67/lb • $3.1 billion (4) (excluding smelter(5)) o $1.9 billion for major projects o $1.2 billion for other mining 23

24 2022e Quarterly Sales 0 200 400 600 800 1,000 1,200 1Q22 2Q22 3Q22e 4Q22e 1,024 1,087 1,020 1,083 Note: Consolidated gold sales include 76k ozs in 1Q22, 89k ozs in 2Q22, 75k ozs in 3Q22e and 78k ozs in 4Q22e for noncontrolling interests. e = estimate. See Cautionary Statement. Note: Consolidated copper sales include 194 mm lbs in 1Q22, 212 mm lbs in 2Q22, 210 mm lbs in 3Q22e and 218 mm lbs in 4Q22e for noncontrolling interests; excludes purchased copper. 0 5 10 15 20 25 1Q22 2Q22 3Q22e 4Q22e 19 20 21 20 0 100 200 300 400 500 1Q22 2Q22 3Q22e 4Q22e 409 400 420 (million lbs)Copper Sales (thousand ozs)Gold Sales (million lbs)Molybdenum Sales 476

PT-FI Mine Plan Metal Sales, 2021 – 2026e NOTE: Amounts are projections. Timing of annual sales will depend on a number of factors, including operational performance, timing of shipments, and other factors. FCX's economic interest in PT-FI approximates 81.27% through 2022 and 48.76% thereafter. e = estimate. See Cautionary Statement. 1.3 1.55 1.6 1.65 1.55 1.5 1.3 1.7 1.7 1.6 1.5 1.35 2021 2022e 2023e 2024e 2025e 2026e Cu bn lbs Au mm ozs Total: 7.9 billion lbs copper Annual Average: ~1.6 billion lbs 2022e – 2026e Copper Total: 7.9 million ozs gold Annual Average: ~1.6 million ozs 2022e – 2026e Gold 25

26 ● Success of oxide development advances opportunity for scale ● Design to incorporate combined leach and concentrate facilities – similar to Morenci ● Next steps o Ongoing exploration to support metallurgical testing o Scoping studies/mine planning scenarios Lone Star Update (1) Initially at 105k t/d with ramp-up to 120k t/d by 2024e. (2) Excludes historic Safford leach material which currently approximates 25 mm lbs/annum. (3) Estimated mineral potential includes exploration targets and mineral resources but will not qualify as mineral reserves until comprehensive engineering studies establish legal and economic feasibility. Significant additional evaluation is required and no assurance can be given that the potential quantities of metal will be produced. Accordingly, no assurance can be given that estimated mineral potential not included in mineral reserves will become proven and probable mineral reserves. e = estimate See Cautionary Statement. Sulfides 75 96 120 Original Design 2021 Incremental Expansion Oxides 2020 start-up Low capital intensity investment in additional mining and processing equipment ~200 mm ~250 mm (2) ~300 mm lbs/annum Stacking rate (k t/d) 2P Reserves: 4.9 billion lbs Mineral Potential: ~50 billion lbs (3) (1)

27 Advancing New Leach Technologies Taking Leach to the Next Level South America 16% Other North America 34% Morenci 50% Copper in Leach Stockpiles Unrecoverable by Traditional Leach Methods 38 bn lbs Contained* * Copper from historical placements beyond assumed recovery estimates and is not included in mineral reserves and mineral resources. See Cautionary Statement. ● Industry leader with long history of leach production ● Internal and external initiatives to advance sulfide leaching technologies and to drive continuous recovery improvement ● Data analytics providing new insights to drive additional value ● Focused on traditional ores and ores that have been typically considered difficult to leach, like chalcopyrite ● Leveraging both R&D and in-field trials at existing leach stockpiles and future opportunities to recover copper from below mill cut-off grade material ● Success would enable utilization of latent tank house capacity with limited capital investment ● Low carbon and water-use footprint

3D Concept Map of PMR (1) Dependent on no further COVID-19-related disruptions; PT-FI has requested an extension of the timeline for the greenfield smelter from the Indonesian government. (2) Excludes capitalized interest, owner’s costs and commissioning. See Cautionary Statement. PTS Smelter at Gresik Concentrate Storage Smelting Furnaces Electrorefinery Slag ConcentratorAcid Plant Utilities, Effluent treatment Acid Tanks Slag Cooling From/To Jetty, Wharf Final Cathodes Acid To Tanks PMR Slimes Final Slag Overall Smelting Process Indonesia Downstream Processing Activities Precious Metals Refinery (PMR) • To be constructed to process gold and silver from greenfield smelter and PT Smelting • Cost estimate: $400 mm Greenfield Smelter • 1.7 mm mt of annual concentrate capacity • Designed to be world’s largest flash smelter/convertor facility • Advancing groundwork/preparation • Project expected to be completed as soon as feasible in 2024 (1) • Target price: ~$2.8 bn (2) • 30% increase to existing smelter to add 300,000 mt of annual concentrate capacity • Completed commercial arrangements in 4Q21 • Target completion of YE 2023 • Cost estimate: $250 mm PT Smelting Expansion 28

29 Indonesia Downstream Processing Update ● PT-FI committed in 2018 IUPK to construct 2 mm tpy in-country Cu concentrate processing capacity o Greenfield project expected to be completed as soon as feasible in 2024(1) o PT Smelting expansion expected to be completed by end of 2023 o Financing in place to fund construction activities Preliminary Estimate of Spending on Greenfield Smelter and PMR to be shared 51% / 49% (PT Inalum/FCX) (2) $0.2 $1.4 $1.2 $0.6 2021 2022e 2023e 2024e ($ in bns) e = estimate. See Cautionary Statement. NOTE: See slide 28 for additional details. (1) Dependent on no further COVID-19-related disruptions; PT-FI has requested an extension of the timeline for the greenfield smelter from the Indonesian government. (2) Capital spending on the greenfield smelter will be debt financed and will not be deducted from cash available for returns to FCX shareholders. Excludes capitalized interest, owner’s costs and commissioning. PT-FI’s Downstream Commitment July 2022

30 Discretionary Capital Projects* ● Commenced long-term mine development activities ● Approximate 10-year development timeframe ● Sustain large-scale, low-cost Cu/Au production ● Capital investment: ~$400 mm/yr average (~$200 mm in 2022e) ● > 6 bn lbs copper & 5 mm ozs gold o ~ 600 mm lbs & 500K ozs per annum ● Recycle electronic material ● Capital investment: ~$320 mm (~$45 mm in 2022e) ● Expect to commission in 2024e; full rates in 2025e ● ~$60 mm per annum in incremental EBITDA Kucing Liar Grasberg Mill Recovery Project Lone Star Oxide Expansion Atlantic Copper CirCular ● Low capital intensity investment ● Capital investment: ~$250 mm (~$100 mm in 2022e) ● Increase stacking rate: 95k t/d to 120k t/d ● Targeting 300 mm lbs of copper/annum by 2023e o +50 mm lbs/yr of incremental production ● Installing new copper cleaner circuit ● Improved Cu concentrate grades/metal recoveries ● Capital investment: ~$420 mm (~$200 mm in 2022e) ● Targeted completion: 1H24e ● +60 mm lbs/yr & +40K ozs/yr of incremental Cu/Au *These discretionary projects and the Indonesia smelter projects will be excluded from the free cash flow calculation (defined on slide 14) for purposes of the performance-based payout framework. e = estimate. See Cautionary Statement. ● Early works and equipment: ~$100 mm (~$75 mm in 2023e) Bagdad Expansion

31 2Q22 Copper Realization & 3Q22e Guidance $4.31/lb 2Q22 LME Average Copper Price 3-Mo. Fwd Price for Copper at the End of June FCX 2Q22 Consolidated Copper Price Realization FCX 2Q22 Prior Period Open Lb Adj. (aka Provisional Price Adj.) $3.75lb $4.03/lb (Generally, 50/50 weight of qtrly avg and 3-mo forward price at end of period) Revenue/EBITDA: $(355) mm Net income: $(154) mm Earnings/share: $(0.10) 3Q22e Open Pound Guidance ● Open lbs priced at $3.75/lb on 6/30/22 ● Each $0.05 change in avg copper price in 3Q22 = $14 mm impact to 2022e net income* ● LME copper settled at $3.34/lb on 7/20/22 NOTE: When the quarter end forward pricing is below the average quarterly spot price, FCX’s consolidated quarterly copper realization can be expected to be below the quarterly average spot pricing. Conversely, the quarterly copper realization can be expected to be above the quarterly spot price average if quarter end forward curve pricing is above the quarterly average spot price. Quarterly copper realizations by region may vary from the consolidated average. *Assuming the 3Q copper price averages $3.25/lb, FCX anticipates 3Q results to include $300 mm in revenue/EBITDA reductions on prior period provisionally priced sales e = estimate. See Cautionary Statement.

32 Adjusted EBITDA Reconciliation (1) 2Q22 primarily includes net adjustments to environmental obligations ($13 mm). The 12 months ended 6/30/2022 also includes adjustments to reclamation liabilities at PT-FI ($340 mm), net charges for contested matters at PT-FI ($46 mm), net adjustments to environmental obligations ($24 mm) and nonrecurring labor-related charges at Cerro Verde ($23 mm). Charges for the 12 months ended 6/30/2022 were partly offset by net credits primarily associated with refunds of Arizona transaction privilege taxes related to purchased electricity ($27 mm) and adjustments to prior-period profit sharing at Cerro Verde ($26 mm). (2) Adjusted EBITDA is a non-GAAP financial measure that is frequently used by securities analysts, investors, lenders and others to evaluate companies’ performance, including, among other things, profitability before the effect of financing and similar decisions. Because securities analysts, investors, lenders and others use Adjusted EBITDA, management believes that our presentation of Adjusted EBITDA affords them greater transparency in assessing our financial performance. Adjusted EBITDA should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP. Adjusted EBITDA may not necessarily be comparable to similarly titled measures reported by other companies, as different companies calculate such measures differently. ($ in mm) 12 mos ended 2Q22 6/30/2022 Net income attributable to common stock $840 $4,872 Interest expense, net 156 592 Income tax provision 571 2,649 Depreciation, depletion and amortization 507 2,092 Metals inventory adjustments 18 33 Net gain on sales of assets (2) (79) Accretion and stock-based compensation 37 186 Other net charges (1) 19 393 Gain on early extinguishment of debt (8) (8) Other (income) expense, net (11) 83 Net income attributable to noncontrolling interests 198 1,151 Equity in affiliated companies’ net earnings (10) (27) FCX Adjusted EBITDA (2) $2,315 $11,937


Delaware	001-11307-01	74-2480931
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


333 North Central Avenue
Phoenix	AZ	85004
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	FCX	The New York Stock Exchange


Exhibit Number			Exhibit Title
99.1			Press release dated July 21, 2022, titled “Freeport-McMoRan Reports Second-Quarter and Six-Month 2022 Results."

99.2			Slides presented in connection with FCX’s second-quarter 2022 earnings conference call conducted via the internet on July 21, 2022.

104			The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.