fcx-20210722

Freeport-McMoRan

Reports Second-Quarter and Six-Month 2021 Results

•Strong financial results and cash flow generation

•Ramp-up of Grasberg underground mines advancing on schedule

•Favorable operational and market outlook

•Achieved balance sheet targets - positioned for increasing cash returns to shareholders and advancement of long-term organic growth in accordance with previously announced financial policy

▪Net income attributable to common stock in second-quarter 2021 totaled $1.08 billion, $0.73 per share, and adjusted net income attributable to common stock totaled $1.14 billion, or $0.77 per share, after adjusting for net charges totaling $56 million, $0.04 per share.

▪Consolidated sales totaled 929 million pounds of copper, 305 thousand ounces of gold and 22 million pounds of molybdenum in second-quarter 2021. Consolidated sales for the year 2021 are expected to approximate 3.85 billion pounds of copper, 1.3 million ounces of gold and 86 million pounds of molybdenum, including 1.035 billion pounds of copper, 360 thousand ounces of gold and 21 million pounds of molybdenum in third-quarter 2021.

▪Average realized prices in second-quarter 2021 were $4.34 per pound for copper, $1,794 per ounce for gold and $13.11 per pound for molybdenum.

▪Average unit net cash costs in second-quarter 2021 were $1.48 per pound of copper (including nonrecurring labor-related charges at Cerro Verde of $0.07 per pound of copper) and are expected to average $1.35 per pound of copper for the year 2021.

▪Operating cash flows totaled $2.4 billion (including $0.5 billion of working capital and other sources) in second-quarter 2021 and $3.5 billion (including $0.2 billion of working capital and other sources) for the first six months of 2021. Based on current sales volume and cost estimates, and assuming average prices of $4.25 per pound for copper, $1,800 per ounce for gold and $16.00 per pound for molybdenum for the second half of 2021, operating cash flows are expected to approximate $7.5 billion (including $0.4 billion of working capital and other sources) for the year 2021.

▪Capital expenditures totaled $0.4 billion (including approximately $0.3 billion for major projects) in second-quarter 2021 and $0.8 billion (including approximately $0.6 billion for major projects) for the first six months of 2021. Capital expenditures for the year 2021, excluding Indonesia smelter expenditures, are expected to approximate $2.2 billion, including $1.4 billion for major projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia.

▪At June 30, 2021, consolidated debt totaled $9.7 billion and consolidated cash and cash equivalents totaled $6.3 billion, resulting in net debt of $3.4 billion (refer to the supplemental schedule, "Net Debt," on page IX). FCX had no borrowings and $3.5 billion available under its revolving credit facility at June 30, 2021.




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PHOENIX, AZ, July 22, 2021 - Freeport-McMoRan Inc. (NYSE: FCX) reported second-quarter 2021 net income attributable to common stock of $1.08 billion, $0.73 per share, and adjusted net income attributable to common stock of $1.14 billion, $0.77 per share, after adjusting for net charges totaling $56 million, $0.04 per share, primarily associated with nonrecurring labor-related charges at Cerro Verde and for historical contested taxes and other matters at PT Freeport Indonesia (PT-FI). For additional information, refer to the supplemental schedule, "Adjusted Net Income (Loss)," on page VII.

Richard C. Adkerson, Chairman and Chief Executive Officer, said, "Our global team continues to execute our operating plans safely, efficiently and responsibly, providing strong cash flows and a solid foundation for future profitability and growth. During the first half of 2021, we reduced our net debt by $2.7 billion and achieved our targeted net debt level, positioning us for increasing cash returns to shareholders and investments in future growth in accordance with our financial policy. As a leading responsible producer of copper, we are optimistic about the prospects for our business and our role in supporting a growing global economy and the transition to clean energy. We remain focused on building value for all stakeholders through solid management of our long-lived and high-quality portfolio of copper assets."

SUMMARY FINANCIAL DATA


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in millions, except per share amounts)
Revenuesa,b	$	5,748	$	3,054	$	10,598	$	5,852
Operating income (loss)a	$	2,067	$	321	$	3,599	$	(152)


Net income (loss) attributable to common stockc,d	$	1,083	$	53	$	1,801	$	(438)
Diluted net income (loss) per share of common stock	$	0.73	$	0.03	$	1.21	$	(0.30)

Diluted weighted-average common shares outstanding	1,483		1,458		1,480		1,453
Operating cash flowse	$	2,395	$	491	$	3,470	$	453
Capital expenditures	$	433	$	527	$	803	$	1,137
At June 30:
Cash and cash equivalents	$	6,313	$	1,465	$	6,313	$	1,465
Total debt, including current portion	$	9,695	$	9,914	$	9,695	$	9,914

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

b.Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $173 million ($66 million to net income attributable to common stock or $0.05 per share) in second-quarter 2021, $55 million ($19 million to net income attributable to common stock or $0.01 per share) in second-quarter 2020, $169 million ($65 million to net income attributable to common stock or $0.04 per share) for the first six months of 2021 and $(102) million ($(43) million to net loss attributable to common stock or $(0.03) per share) for the first six months of 2020. For further discussion, refer to the supplemental schedule, "Derivative Instruments," on page IX.

c.Includes net (charges) credits totaling $(56) million ($(0.04) per share) in second-quarter 2021, $9 million ($0.01 per share) in second-quarter 2020, $(94) million ($(0.06) per share) for the first six months of 2021 and $(247) million ($(0.17) per share) for the first six months of 2020 that are described in the supplemental schedule, "Adjusted Net Income (Loss)," 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 totaled $523 million in second-quarter 2021, $22 million in second-quarter 2020, $187 million for the first six months of 2021 and $141 million for the first six months of 2020.


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SUMMARY OPERATING DATA


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Copper (millions of recoverable pounds)
Production	913			767			1,823			1,498
Sales, excluding purchases	929			759			1,754			1,488
Average realized price per pound	$	4.34		$	2.55	a	$	4.25		$	2.53	a
Site production and delivery costs per poundb	$	2.02	c	$	1.82	d	$	1.94	c	$	2.00	d
Unit net cash costs per poundb	$	1.48		$	1.47		$	1.44		$	1.68
Gold (thousands of recoverable ounces)
Production	305			191			602			347
Sales	305			184			563			328
Average realized price per ounce	$	1,794		$	1,749		$	1,785		$	1,709
Molybdenum (millions of recoverable pounds)
Production	20			19			40			38
Sales, excluding purchases	22			18			43			39
Average realized price per pound	$	13.11		$	10.53		$	12.38		$	10.84

a.Includes reductions to average realized prices of $0.03 per pound of copper in second-quarter 2020 and $0.02 per pound of copper for the first six months of 2020 related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound. There are no remaining forward sales contracts.

b.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 costs 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.

c.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 for agreements reached with 57 percent of its hourly employees. Refer to the supplemental schedule, "Adjusted Net Income (Loss)," on page VII.

d.Excludes charges totaling $0.20 per pound of copper in second-quarter 2020 and $0.12 per pound of copper for the first six months of 2020, primarily associated with idle facility and contract cancellations costs related to the COVID-19 pandemic and employee separation costs associated with the April 2020 revised operating plans. Refer to the supplemental schedule, "Adjusted Net Income (Loss)," on page VII.

Responsible Production

2020 Annual Report on Sustainability. In April 2021, FCX published its 2020 Annual Report on Sustainability, which is available on FCX's website at fcx.com. FCX has a long history of environmental, social and governance (ESG) programs and is continuously striving to improve and respond to evolving stakeholder expectations. This report marked FCX’s 20th year of reporting on its sustainability progress and FCX’s first year reporting in alignment with the Sustainability Accounting Standards Board Metals & Mining framework. FCX is committed to building upon its achievements in sustainability and seeks to contribute positively to society by supplying the world with responsibly produced copper.

The Copper Mark. In June 2021, FCX commenced the Copper Mark assessment process at five additional operating sites, including Bagdad, Chino, Tyrone, Safford and Sierrita. Each of these sites will complete an external assurance process to assess conformance with the Copper Mark’s 32 ESG requirements, with a goal of being awarded the Copper Mark. The Copper Mark is a robust assurance framework that demonstrates the copper industry's responsible production practices and contribution to the United Nations Sustainable Development Goals. To date, FCX has six sites that have achieved the Copper Mark (the Morenci operations, Miami smelter and mine, and El Paso refinery in North America; Cerro Verde and El Abra mines in South America; and Atlantic Copper smelter and refinery in Spain). FCX has future plans to validate all of its copper producing sites with the Copper Mark requirements.

Ongoing COVID-19 Management. FCX continues its vigilant operating protocols at each of its operating sites to contain and mitigate the risk of spread of COVID-19. FCX’s protocols have been effective in mitigating and preventing a major outbreak of COVID-19 at its operating sites. FCX is continuing to monitor, assess and update its COVID-19 related response and is providing assistance to employees in obtaining vaccinations.


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Consolidated Sales Volumes

Second-quarter 2021 copper sales of 929 million pounds and gold sales of 305 thousand ounces were approximately 5 percent and 8 percent lower, respectively, than the April 2021 estimates of 975 million pounds of copper and 330 thousand ounces of gold, primarily reflecting the timing of shipments from Indonesia.

Second-quarter 2021 copper sales were 22 percent higher and gold sales were 66 percent higher than second-quarter 2020 sales of 759 million pounds of copper and 184 thousand ounces of gold, primarily reflecting continued progress of the ramp-up of underground mining at PT-FI and increased operating rates at Cerro Verde.

Second-quarter 2021 molybdenum sales of 22 million pounds approximated the April 2021 estimate. Second-quarter 2021 molybdenum sales were higher than second-quarter 2020 sales of 18 million pounds of molybdenum, primarily reflecting increased demand and timing of shipments.

Consolidated sales volumes for the year 2021 are expected to approximate 3.85 billion pounds of copper, 1.3 million ounces of gold and 86 million pounds of molybdenum, including 1.035 billion pounds of copper, 360 thousand ounces of gold and 21 million pounds of molybdenum in third-quarter 2021. Projected sales volumes are dependent on operational performance, continued progress of the ramp-up of underground mining at PT-FI, impacts and duration of the COVID-19 pandemic, weather-related conditions, timing of shipments, and other factors.

Consolidated Unit Net Cash Costs

Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $1.48 per pound of copper in second-quarter 2021, were higher than the April 2021 estimate of $1.42 per pound, primarily because of nonrecurring labor-related charges at Cerro Verde ($0.07 per pound of copper) for agreements reached with 57 percent of its hourly employees (including early agreement of a new four-year collective labor agreement (CLA) with one of its three unions). Consolidated average unit net cash costs in second-quarter 2021 approximated the second-quarter 2020 average of $1.47 per pound.

Assuming average prices of $1,800 per ounce of gold and $16.00 per pound of molybdenum for the second half of 2021 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 $1.35 per pound of copper for the year 2021. The impact of price changes during the second half of 2021 on consolidated unit net cash costs for the year 2021 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.

Operating and Development Activities. FCX’s North America operating sites continue to achieve strong execution of operating plans. FCX successfully completed the initial development of the Lone Star copper leach project in the second half of 2020 and achieved design capacity approximating 200 million pounds annually. Current operations are exceeding the initial design. FCX continues to advance opportunities to increase Lone Star operating rates and is evaluating a potential additional incremental oxide expansion to increase volumes to over 300 million pounds of copper per year. The oxide project advances the opportunity for development of the large-scale sulfide resources at Lone Star.

FCX has substantial resources in the United States (U.S.), primarily associated with existing mining operations. Evaluation of project options for future growth are under way. In addition to Lone Star, FCX is actively advancing studies to add new capacity at its long-lived Bagdad operation in northwest Arizona.


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


	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Copper (millions of recoverable pounds)
Production	360		368			713		714
Sales, excluding purchases	389		368			697		723
Average realized price per pound	$	4.42	$	2.42	a	$	4.19	$	2.50	a

Molybdenum (millions of recoverable pounds)
Productionb	9		9			17		17

Unit net cash costs per pound of copperc
Site production and delivery, excluding adjustments	$	2.14	$	1.85	d	$	2.09	$	2.00	d
By-product credits	(0.25)		(0.17)			(0.27)		(0.19)
Treatment charges	0.08		0.10			0.09		0.10
Unit net cash costs	$	1.97	$	1.78		$	1.91	$	1.91

a.Includes reductions to average realized prices of $0.06 per pound of copper in second-quarter 2020 and $0.03 per pound of copper for the first six months of 2020 related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound. There are no remaining forward sales contracts.

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

c.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.

d.Excludes charges totaling $0.06 per pound of copper in second-quarter 2020 and $0.03 per pound of copper for the first six months of 2020, primarily associated with idle facility and contract cancellations costs related to the COVID-19 pandemic and employee separation costs associated with the April 2020 revised operating plans.

FCX's consolidated copper sales volumes from North America of 389 million pounds in second-quarter 2021 were higher than second-quarter 2020 copper sales volumes of 368 million pounds, primarily reflecting timing of shipments. North America copper sales are estimated to approximate 1.47 billion pounds for the year 2021, compared with 1.4 billion pounds for the year 2020.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.97 per pound of copper in second-quarter 2021 were higher than second-quarter 2020 unit net cash costs of $1.78 per pound, primarily reflecting costs associated with higher mining and milling rates and higher maintenance and 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 $1.91 per pound of copper for the year 2021, 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 2021. North America's average unit net cash costs for the year 2021 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 2021.

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 2021, milling rates at Cerro Verde's concentrator facilities were slightly above forecast and averaged 374,100 metric tons of ore per day. Cerro Verde expects milling rates to return to pre-COVID-19 pandemic levels of approximately 400,000 metric tons of ore per day in 2022.

El Abra is implementing plans to increase operating rates to pre-COVID-19 pandemic levels, subject to ongoing monitoring of public health conditions in Chile. Stacking rates at El Abra averaged 94,200 metric tons per


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day in second-quarter 2021, approximately 25 percent higher than second-quarter 2020. Increased stacking rates are expected to result in incremental annual production of approximately 70 million pounds of copper beginning in mid-2022, compared with 2020 levels. A new leach pad is under construction to accommodate planned stacking rates for the next several years.

FCX continues to evaluate a large-scale expansion at El Abra to process additional sulfide material and to achieve higher copper recoveries. El Abra's large sulfide resource could potentially support a major mill project similar to facilities 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 monitoring potential changes in government fiscal matters in Chile and will defer major investment decisions pending clarity on these matters.

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


	Three Months Ended						Six Months Ended
	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Copper (millions of recoverable pounds)
Production	245			218			504			463
Sales	230			219			489			466
Average realized price per pound	$	4.31		$	2.67		$	4.28		$	2.57






Molybdenum (millions of recoverable pounds)
Productiona	4			4			9			8

Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments	$	2.48	c	$	1.64	d	$	2.23	c	$	1.84	d
By-product credits	(0.31)			(0.11)			(0.26)			(0.14)
Treatment charges	0.13			0.15			0.13			0.15
Royalty on metals	0.01			—			0.01			—
Unit net cash costs	$	2.31		$	1.68		$	2.11		$	1.85

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

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.

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 for agreements reached with 57 percent of its hourly employees. Refer to the supplemental schedule, "Adjusted Net Income (Loss)," on page VII.

d.Excludes charges totaling $0.30 per pound of copper in second-quarter 2020 and $0.18 per pound of copper for the first six months of 2020, primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic, and employee separation costs associated with the April 2020 revised operating plans.

FCX's consolidated copper sales volumes from South America of 230 million pounds in second-quarter 2021 were higher than second-quarter 2020 copper sales volumes of 219 million pounds, primarily reflecting higher milling rates at Cerro Verde, partly offset by timing of shipments.

Copper sales from South America mining are expected to approximate 1.05 billion pounds for the year 2021, slightly higher than the year 2020.

Average unit net cash costs (net of by-product credits) for South America mining of $2.31 per pound of copper in second-quarter 2021 were higher than second-quarter 2020 unit net cash costs of $1.68 per pound, primarily reflecting increased mining and milling activities at Cerro Verde, partly offset by higher volumes. Second-quarter 2021 also includes nonrecurring labor-related charges at Cerro Verde ($0.30 per pound of copper) for agreements reached with 57 percent of its hourly employees (including early agreement of a new four-year CLA with one of its three unions). Negotiations for new CLAs for Cerro Verde's remaining hourly employees are still ongoing. The current CLA is scheduled to expire on August 31, 2021.


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Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate $2.02 per pound of copper for the year 2021, 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 2021.

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 shareholders agreement, FCX’s economic interest in PT-FI approximates 81 percent through 2022. PT-FI's results are consolidated in FCX's financial statements.

PT-FI continues to operate with protocols designed to protect the health and safety of its workforce during the COVID-19 pandemic. During second-quarter 2021, PT-FI began to administer vaccines to its workforce and expects this program to accelerate through the second half of 2021. Following an increase in COVID-19 cases in Indonesia, PT-FI has recently reinstituted heightened protocols and travel restrictions to protect the health of its workforce and the surrounding community.

Operating and Development Activities. The ramp-up of underground production at the Grasberg minerals district in Indonesia continues to advance on schedule. Second-quarter 2021 highlights include:

•Production approximated 78 percent of the projected ultimate annualized level and is expected to reach 100 percent by year-end 2021.

•A total of 41 new drawbells were constructed at the Grasberg Block Cave and Deep Mill Level Zone (DMLZ) underground mines, bringing cumulative open drawbells to over 460.

•Combined average production from the Grasberg Block Cave and DMLZ underground mines approximated 118,300 metric tons of ore per day. During second-quarter 2021, Grasberg Block Cave achieved a daily record of 107,000 metric tons of ore per day.

The successful completion of this ramp up is expected to enable PT-FI to generate average annual production of 1.55 billion pounds of copper and 1.6 million ounces of gold for the next several years at an attractive unit net cash cost, providing significant margins and cash flows. PT-FI expects production for the year 2021 to approximate 1.3 billion pounds of copper and 1.3 million ounces of gold, nearly double 2020 levels.

PT-FI's estimated annual capital spending on underground mine development projects is expected to average approximately $0.9 billion per year for 2021 and 2022, net of scheduled contributions from PT Indonesia Asahan Aluminium (Persero) (PT Inalum, also known as MIND ID). In accordance with applicable accounting guidance, aggregate costs (before scheduled contributions from PT Inalum), which are expected to average $1.1 billion per year for 2021 and 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.

Indonesia Smelter. In connection with PT-FI’s 2018 agreement with the Indonesia government associated with the extension of its long-term mining rights, PT-FI committed to construct new domestic smelting capacity totaling 2 million metric tons of concentrate per year by December 2023. Prior to the COVID-19 pandemic, PT-FI selected a site for a greenfield smelter in East Java and initiated ground preparation and commenced engineering and commercial negotiations.

During 2020, PT-FI notified the Indonesia government of schedule delays resulting from the COVID-19 pandemic and continues to review with the government a revised schedule for the project.

To fulfill its obligation for new domestic smelter capacity in Indonesia, PT-FI is planning the following:

•Expansion of annual capacity at PT Smelting (PT-FI's 39.5-percent owned copper smelter and refinery in Gresik, Indonesia) by 300,000 metric tons of concentrate, a 30 percent increase. PT-FI is advancing agreements with the majority owner of PT Smelting to implement the expansion plans with a target completion date of year-end 2023. PT-FI would fund the cost of the expansion, estimated to approximate $250 million, and increase its ownership in PT Smelting to a majority ownership interest.

•Construction of a new greenfield smelter in Gresik, Indonesia with a capacity to process approximately 1.7 million metric tons of concentrate per year. In July 2021, PT-FI awarded a construction contract to Chiyoda with an estimated cost of $2.8 billion. The smelter construction is expected to be completed as soon as feasible in 2024, which is dependent on no further pandemic-related disruptions.


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•Construction of a precious metals refinery to process gold and silver from PT Smelting and the new greenfield smelter in Gresik, at an estimated cost of $250 million.

PT-FI has recently entered into a $1 billion, five-year, unsecured bank credit facility to advance these projects. Additional debt financing is being planned to fund the projects with the cost of all such debt shared 49 percent by FCX and 51 percent by PT Inalum.

Construction of the new smelter capacity would result in the elimination of export duties, providing an offset to the economic cost associated with the smelter development.

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



	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Copper (millions of recoverable pounds)
Production	308		181			606		321
Sales	310		172			568		299
Average realized price per pound	$	4.27	$	2.67		$	4.29	$	2.54

Gold (thousands of recoverable ounces)
Production	303		189			597		341
Sales	302		180			558		319
Average realized price per ounce	$	1,795	$	1,748		$	1,785	$	1,709

Unit net cash costs per pound of coppera
Site production and delivery, excluding adjustments	$	1.54	$	2.00	b	$	1.51	$	2.29	b
Gold and silver credits	(1.93)		(1.95)			(1.86)		(1.91)
Treatment charges	0.24		0.27			0.24		0.28
Export duties	0.14		0.09			0.13		0.07
Royalty on metals	0.26		0.15			0.25		0.15
Unit net cash costs	$	0.25	$	0.56		$	0.27	$	0.88

a.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.

b.Excludes COVID-19 related costs of $0.03 per pound of copper in second-quarter 2020 and $0.01 per pound of copper for the first six months of 2020.

PT-FI's consolidated sales of 310 million pounds of copper and 302 thousand ounces of gold in second-quarter 2021 were higher than second-quarter 2020 consolidated sales of 172 million pounds of copper and 180 thousand ounces of gold, primarily reflecting the ramp-up of underground mining at PT-FI. Consolidated sales volumes from PT-FI are expected to approximate 1.33 billion pounds of copper and 1.3 million ounces of gold for the year 2021, compared with 0.8 billion pounds of copper and 0.8 million ounces of gold for the year 2020.

Because of the fixed nature of a large portion of PT-FI's costs, unit net cash costs can vary significantly from quarter to quarter depending on copper and gold volumes. PT-FI's unit net cash costs (including gold and silver credits) of $0.25 per pound of copper in second-quarter 2021, were lower than unit net cash costs of $0.56 per pound in second-quarter 2020, primarily reflecting higher sales volumes.

Assuming an average gold price of $1,800 per ounce for the second half of 2021 and achievement of current sales volume and cost estimates, unit net cash costs (including gold and silver credits) for PT-FI are expected to approximate $0.19 per pound of copper for the year 2021. PT-FI's average unit net cash costs for the year 2021 would change by approximately $0.06 per pound for each $100 per ounce change in the average price of gold for the second half of 2021.

Molybdenum Mines. FCX operates two wholly owned molybdenum mines in Colorado - the Henderson underground mine and the Climax open-pit mine. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical


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products. The majority of the molybdenum concentrate produced at the Henderson and Climax mines, as well as from FCX's North America and South America copper mines, is processed at FCX's conversion facilities.

Operating and Development Activities. Production from the molybdenum mines of 7 million pounds of molybdenum in second-quarter 2021 was slightly higher than production of 6 million pounds of molybdenum in second-quarter 2020. Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales and average realized prices, which includes sales of molybdenum produced at the Molybdenum mines and from FCX's North America and South America copper mines.

Average unit net cash costs for the Molybdenum mines of $8.14 per pound of molybdenum in second-quarter 2021 were lower than average unit net cash costs of $8.97 per pound in second-quarter 2020, primarily reflecting higher volumes. Based on current sales volume and cost estimates, average unit net cash costs for the Molybdenum mines are expected to approximate $9.65 per pound of molybdenum for the year 2021.

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 generally 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 in North America and South America. Exploration expenditures for the year 2021 are expected to approximate $60 million. FCX has long-lived reserves and a significant resource position in its existing portfolio.

CASH FLOWS, CASH AND DEBT

Operating Cash Flows. FCX generated operating cash flows of $2.4 billion (including $0.5 billion of working capital and other sources) in second-quarter 2021 and $3.5 billion (including $0.2 billion of working capital and other sources) for the first six months of 2021.

Based on current sales volume and cost estimates, and assuming average prices of $4.25 per pound of copper, $1,800 per ounce of gold and $16.00 per pound of molybdenum for the second half of 2021, FCX's consolidated operating cash flows are estimated to approximate $7.5 billion (including $0.4 billion of working capital and other sources) for the year 2021. The impact of price changes for the second half of 2021 on operating cash flows would approximate $200 million for each $0.10 per pound change in the average price of copper, $50 million for each $100 per ounce change in the average price of gold and $55 million for each $2 per pound change in the average price of molybdenum.

Capital Expenditures. Capital expenditures totaled $0.4 billion in second-quarter 2021 (including approximately $0.3 billion for major projects) and $0.8 billion for the first six months of 2021 (including approximately $0.6 billion for major projects). Capital expenditures are expected to approximate $2.2 billion for the year 2021, including $1.4 billion for major projects primarily associated with underground development activities in the Grasberg minerals district and exclude Indonesia smelter expenditures, which are currently expected to approximate $0.3 billion during the second half of 2021 and will be funded through PT-FI's $1 billion unsecured bank credit facility.

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, 2021 (in billions):


Cash at domestic companies	$	4.1
Cash at international operations	2.2
Total consolidated cash and cash equivalents	6.3
Noncontrolling interests' share	(0.8)
Cash, net of noncontrolling interests' share	$	5.5
Withholding taxes	(0.1)
Net cash available	$	5.4


						9

Debt. Following is a summary of total debt and the weighted-average interest rates at June 30, 2021 (in millions, except percentages):


			Weighted- Average Interest Rate
Senior Notes	$	9,143	4.8%
Cerro Verde Term Loan	524		2.0%
Other	28		2.4%
Total debt	$	9,695	4.6%

At June 30, 2021, FCX had no borrowings, $8 million in letters of credit issued and $3.5 billion available under its revolving credit facility. FCX's 3.55% Senior Notes are due March 2022 ($524 million principal amount), the Cerro Verde Term Loan matures in June 2022, and FCX has no other senior note maturities until March 2023.

On July 19, 2021, PT-FI entered into $1 billion, five-year, unsecured bank credit facility (consisting of a $667 million term loan and a $333 million revolving credit facility). Amounts may be drawn under the term loan within the first three years. The loans mature in July 2026 and bear interest at the London Interbank Offered Rate plus a margin of 1.875% or 2.125%, as defined in the agreement.

FINANCIAL POLICY

In February 2021, FCX's Board of Directors (Board) adopted a new financial policy for the allocation of cash flows aligned with FCX’s strategic objectives of maintaining a strong balance sheet, increasing cash returns to shareholders and advancing opportunities for future growth. The policy includes a base dividend of $0.30 per share per year and a performance-based payout framework to be implemented following achievement of a net debt target in the range of $3 billion to $4 billion, excluding project debt for additional smelting capacity in Indonesia. Under the performance-based payout framework, 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.

Available cash flows for performance-based payout distributions in excess of the base dividend will be assessed by the Board at least annually. With the recent achievement of FCX's net debt target, FCX expects the Board to consider the amount of additional cash returns to shareholders following its 2021 annual results.

On June 23, 2021, FCX declared a quarterly cash dividend of $0.075 per share on its common stock, which will be paid on August 2, 2021, to shareholders of record as of July 15, 2021. The declaration of dividends is at the discretion of the Board and will depend upon FCX's financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's second-quarter 2021 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 20, 2021.

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

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.


						10

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 ore grades and milling rates; business outlook; production and sales volumes; unit net cash costs; cash flows; capital expenditures; liquidity; operating costs; operating plans; FCX's financial policy; FCX's expectations regarding PT-FI's ramp-up of underground mining activities and future cash flows through 2022; PT-FI's development, financing, construction and completion of new domestic smelting capacity in Indonesia totaling 2 million metric tons of concentrate per year by December 2023; expectations regarding negotiations with hourly employees at Cerro Verde including completion of new CLAs; FCX’s commitments to deliver responsibly produced copper, including plans to implement and validate all of its operating sites under specific frameworks; improvements in operating procedures and technology; exploration efforts and results; development and production activities, rates and costs; tax rates; export quotas and duties; the impact of copper, gold and molybdenum price changes; the impact of deferred intercompany profits on earnings; mineralization and reserve estimates; execution of the settlement agreements associated with the Louisiana coastal erosion cases and talc-related litigation; descriptions of our objectives, strategies, plans, goals or targets, including our net debt target; and future returns to shareholders, including dividend payments, share purchases and sales. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” "targets," “intends,” “likely,” “will,” “should,” “could,” “to be,” ”potential," “assumptions,” “guidance,” “future” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of future dividends is at the discretion of the Board and will depend on FCX's financial results, cash requirements, future prospects, global economic conditions, and other factors deemed relevant by the Board.

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, changes in the credit ratings of FCX; changes in FCX's cash requirements, financial position, financing plans or investment plans; changes in general market, economic, tax, regulatory or industry conditions; the duration and scope of and uncertainties associated with the COVID-19 pandemic, and the impact thereof on commodity prices, FCX’s business and the global economy and any related actions taken by governments and businesses; FCX’s ability to contain and mitigate the risk of spread or major outbreak of COVID-19 at its operating sites, including at PT-FI’s remote operating site in Papua; supply of and demand for, and prices of, copper, gold and molybdenum; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations; production rates; timing of shipments; results of 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 15, 2022; risks associated with underground mining; satisfaction of requirements in accordance with PT-FI's special mining license to extend mining rights from 2031 through 2041; the Indonesia government's approval of a deferred schedule for completion of new domestic smelting capacity in Indonesia; expected results from improvements in operating procedures and technology, including innovation initiatives; industry risks; regulatory changes; political and social risks; labor relations, including labor-related work stoppages and costs; weather- and climate-related risks; environmental risks; litigation results; cybersecurity incidents; changes in general market, economic and industry conditions; financial condition of FCX’s customers, suppliers, vendors, partners and affiliates, particularly during weak economic conditions and extended periods of volatile commodity prices; reductions in liquidity and access to capital; 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, 2020, 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, 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 (loss) and unit net cash costs 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.


						11


Freeport-McMoRan Inc.
SELECTED OPERATING DATA

	Three Months Ended June 30,
	2021	2020	2021			2020
MINING OPERATIONS:	Production		Sales
COPPER (millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	156	185	172			185
Bagdad (100%)	39	59	47			56
Safford (100%)	64	42	67			38
Sierrita (100%)	53	48	55			46
Miami (100%)	3	4	4			4
Chino (100%)	33	18	31			27
Tyrone (100%)	12	11	13			12
Other (100%)	—	1	—			—
Total North America	360	368	389			368

South America
Cerro Verde (53.56%)	206	178	189			179
El Abra (51%)	39	40	41			40

Total South America	245	218	230			219

Indonesia
Grasberg (48.76%)b	308	181	310			172


Total	913	767	929		c	759		c
Less noncontrolling interests	173	136	166			135
Net	740	631	763			624





Average realized price per pound			$	4.34		$	2.55	d


GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	2	2	3			4

Indonesia (48.76%)b	303	189	302			180
Consolidated	305	191	305			184
Less noncontrolling interests	56	35	56			34
Net	249	156	249			150




Average realized price per ounce			$	1,794		$	1,749

MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	2	3	N/A			N/A
Climax (100%)	5	3	N/A			N/A
North America copper mines (100%)a	9	9	N/A			N/A
Cerro Verde (53.56%)	4	4	N/A			N/A
Consolidated	20	19	22			18
Less noncontrolling interests	2	2	2			2
Net	18	17	20			16





Average realized price per pound			$	13.11		$	10.53















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 68 million pounds in second-quarter 2021 and 71 million pounds in second-quarter 2020.

d. Includes a reduction to the average realize price of $0.03 per pound of copper related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound. There are no remaining forward sales contracts.


Freeport-McMoRan Inc.
SELECTED OPERATING DATA

	Six Months Ended June 30,
	2021	2020	2021			2020
MINING OPERATIONS:	Production		Sales
COPPER (millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	310	358	312			363
Bagdad (100%)	83	105	89			104
Safford (100%)	128	71	118			66
Sierrita (100%)	102	89	97			87
Miami (100%)	7	8	7			8
Chino (100%)	58	60	50			71
Tyrone (100%)	25	22	24			23
Other (100%)	—	1	—			1
Total North America	713	714	697			723

South America
Cerro Verde (53.56%)	423	381	404			385
El Abra (51%)	81	82	85			81

Total South America	504	463	489			466

Indonesia
Grasberg (48.76%)b	606	321	568			299


Total	1,823	1,498	1,754		c	1,488		c
Less noncontrolling interests	350	277	336			275
Net	1,473	1,221	1,418			1,213





Average realized price per pound			$	4.25		$	2.53	d


GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	5	6	5			9

Indonesia (48.76%)b	597	341	558			319
Consolidated	602	347	563			328
Less noncontrolling interests	111	64	104			60
Net	491	283	459			268




Average realized price per ounce			$	1,785		$	1,709

MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	5	5	N/A			N/A
Climax (100%)	9	8	N/A			N/A
North America copper mines (100%)a	17	17	N/A			N/A
Cerro Verde (53.56%)	9	8	N/A			N/A
Consolidated	40	38	43			39
Less noncontrolling interests	4	4	5			5
Net	36	34	38			34





Average realized price per pound			$	12.38		$	10.84















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 121 million pounds for the first six months of 2021 and 159 million pounds for the first six months of 2020.

d. Includes a reduction to the average realize price of $0.02 per pound of copper related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound. There are no remaining forward sales contracts.


Freeport-McMoRan Inc.
SELECTED OPERATING DATA (continued)

	Three Months Ended June 30,			Six months ended June 30,
	2021	2020		2021	2020
100% North America Copper Mines
Leach Operations
Leach ore placed in stockpiles (metric tons per day)	688,000	744,000		696,500	736,100
Average copper ore grade (percent)	0.30	0.28		0.29	0.28
Copper production (millions of recoverable pounds)	265	265		527	500

Mill Operations
Ore milled (metric tons per day)	264,700	286,200		266,300	309,800
Average ore grades (percent):
Copper	0.36	0.37		0.37	0.34
Molybdenum	0.03	0.02		0.03	0.02
Copper recovery rate (percent)	82.4	84.6		80.5	85.8
Production (millions of recoverable pounds):
Copper	155	176		306	354
Molybdenum	9	9		17	17

100% South America Mining
Leach Operations
Leach ore placed in stockpiles (metric tons per day)	190,200	141,900		172,100	162,200
Average copper ore grade (percent)	0.33	0.33		0.34	0.35
Copper production (millions of recoverable pounds)	65	62		126	125

Mill Operations
Ore milled (metric tons per day)	374,100	251,800	a	382,100	300,700	a
Average ore grades (percent):
Copper	0.29	0.39		0.30	0.36
Molybdenum	0.01	0.01		0.01	0.01
Copper recovery rate (percent)	85.2	83.9		86.4	80.8
Production (millions of recoverable pounds):
Copper	179	156		377	338
Molybdenum	4	4		9	8

100% Indonesia Mining
Ore extracted and milled (metric tons per day):
Grasberg Block Cave underground mineb	64,400	27,200		58,100	23,100
Deep Mill Level Zone underground mineb	53,900	27,600		50,300	23,100
Deep Ore Zone underground mine	10,800	21,600		14,700	20,900
Big Gossan underground mine	8,200	5,900		7,500	6,300
Grasberg open pit	—	—		—	3,600	c
Other	5,700	(400)		3,000	—
Total	143,000	81,900		133,600	77,000
Average ore grades:
Copper (percent)	1.28	1.27		1.34	1.21
Gold (grams per metric ton)	1.00	1.04		1.03	1.02
Recovery rates (percent):
Copper	88.8	91.7		90.0	91.7
Gold	75.9	78.3		77.4	77.6
Production (recoverable):
Copper (millions of pounds)	308	181		606	321
Gold (thousands of ounces)	303	189		597	341











100% Molybdenum Mines
Ore milled (metric tons per day)	22,200	23,500		20,500	25,200
Average molybdenum ore grade (percent)	0.19	0.16		0.19	0.16
Molybdenum production (millions of recoverable pounds)	7	6		14	13

a. Cerro Verde mill operations were negatively impacted by COVID-19 restrictions.

b. Includes ore from development activities that result in metal production.

c. Represents ore from the Grasberg open-pit stockpiles.

III


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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
	(In Millions, Except Per Share Amounts)
Revenuesa	$	5,748		$	3,054		$	10,598		$	5,852
Cost of sales:
Production and deliveryb	3,067		c	2,394		d,e	5,853		c	4,939		d,e
Depreciation, depletion and amortization	483			358		d	902			699		d
Metals inventory adjustments	—			(139)			1			83

Total cost of sales	3,550			2,613			6,756			5,721
Selling, general and administrative expenses	87			91		e	187			201		e
Mining exploration and research expenses	14			18		e	21			34		e
Environmental obligations and shutdown costs	33			11			38			37

Net (gain) loss on sales of assets	(3)			—			(3)			11

Total costs and expenses	3,681			2,733			6,999			6,004
Operating income (loss)	2,067			321			3,599			(152)
Interest expense, netb,f	(148)			(115)			(293)			(242)

Net loss on early extinguishment of debt	—			(9)			—			(41)

Other income, netb	9			20			20			40
Income (loss) before income taxes and equity in affiliated companies' net earnings	1,928			217			3,326			(395)
Provision for income taxesg	(603)			(96)			(1,046)			(36)
Equity in affiliated companies' net earnings	6			3			4			6


Net income (loss)	1,331			124			2,284			(425)

Net income attributable to noncontrolling interests	(248)			(71)			(483)			(13)


Net income (loss) attributable to common stockholdersh	$	1,083		$	53		$	1,801		$	(438)






Diluted net income (loss) per share attributable to common stock	$	0.73		$	0.03		$	1.21		$	(0.30)






Diluted weighted-average common shares outstanding	1,483			1,458			1,480			1,453

Dividends declared per share of common stock	$	0.075		$	—		$	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 and other net (charges) credits totaling $(22) million in second-quarter 2021, $16 million in second-quarter 2020, $(67) million for the first six months of 2021 and less than $1 million for the first six months of 2020, which are summarized in the supplemental schedule, "Adjusted Net Income (Loss)," on page VII.

c.Includes nonrecurring labor-related charges totaling $69 million at Cerro Verde for agreements reached with 57 percent of its hourly employees.

d.Includes COVID-19 related charges totaling $114 million in second-quarter 2020 and $142 million for the first six months of 2020, primarily associated with idle facility, contract cancellation and other charges, which are summarized in the supplemental schedule, "Adjusted Net Income (Loss)," on page VII.

e.Includes charges totaling $82 million associated with an employee separation program, which are summarized in the supplemental schedule, "Adjusted Net Income (Loss)," on page VII.

f.Consolidated interest costs (before capitalization) totaled $165 million in second-quarter 2021, $159 million in second-quarter 2020, $325 million for the first six months of 2021 and $330 million for the first six months of 2020.

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

h.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,
	2021		2020
	(In Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	6,313	$	3,657
Trade accounts receivable	1,100		892
Income and other tax receivables	578		520

Inventories:
Materials and supplies, net	1,616		1,594
Mill and leach stockpiles	1,006		1,014
Product	1,596		1,285
Other current assets	390		341

Total current assets	12,599		9,303
Property, plant, equipment and mine development costs, net	29,836		29,818


Long-term mill and leach stockpiles	1,473		1,463


Other assets	1,528		1,560

Total assets	$	45,436	$	42,144

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	3,106	$	2,708
Current portion of debt	1,057		34
Accrued income taxes	919		324
Current portion of environmental and asset retirement obligations	334		351
Dividends payable	111		—

Total current liabilities	5,527		3,417
Long-term debt, less current portion	8,638		9,677
Deferred income taxes	4,486		4,408
Environmental and asset retirement obligations, less current portion	3,721		3,705
Other liabilities	2,129		2,269

Total liabilities	24,501		23,476



Equity:
Stockholders' equity:
Common stock	160		159
Capital in excess of par value	26,084		26,037
Accumulated deficit	(9,880)		(11,681)
Accumulated other comprehensive loss	(576)		(583)
Common stock held in treasury	(3,777)		(3,758)
Total stockholders' equity	12,011		10,174
Noncontrolling interestsa	8,924		8,494
Total equity	20,935		18,668
Total liabilities and equity	$	45,436	$	42,144

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,
		2021		2020
		(In Millions)
Cash flow from operating activities:
Net income (loss)		$	2,284	$	(425)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		902		699

Metals inventory adjustments		1		83

Net (gain) loss on sales of assets		(3)		11
Stock-based compensation		56		43

Net charges for environmental and asset retirement obligations, including accretion		94		112
Payments for environmental and asset retirement obligations		(110)		(119)

Net charges for defined pension and postretirement plans		1		45
Pension plan contributions		(42)		(29)
Net loss on early extinguishment of debt		—		41
Deferred income taxes		79		(28)






Charges for Cerro Verde royalty dispute		9		15
Payments for Cerro Verde royalty dispute		(65)		(90)

Other, net		77		(46)
Changes in working capital and other:
Accounts receivable		(279)		83
Inventories		(299)		168
Other current assets		(12)		(4)
Accounts payable and accrued liabilities		272		(73)
Accrued income taxes and timing of other tax payments		505		(33)
Net cash provided by operating activities		3,470		453

Cash flow from investing activities:
Capital expenditures:
North America copper mines		(95)		(332)
South America		(47)		(125)
Indonesia		(624)		(634)
Molybdenum mines		(3)		(11)
Other		(34)		(35)





Proceeds from sales of assets		16		116		a
Acquisition of minority interest in PT Smelting		(33)		—
Other, net		(13)		(5)
Net cash used in investing activities		(833)		(1,026)

Cash flow from financing activities:
Proceeds from debt		160		1,585
Repayments of debt		(179)		(1,527)



Cash dividends and distributions paid:
Common stock		(111)		(73)
Noncontrolling interests		(93)		—
Contributions from noncontrolling interests		88		74
Proceeds from exercised stock options		184		1
Payments for withholding of employee taxes related to stock-based awards		(19)		(5)
Debt financing costs and other, net		(1)		(31)

Net cash provided by financing activities		29		24

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents		2,666		(549)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year		3,903		2,278
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of periodb		$	6,569	$	1,729

a.Includes $60 million in contingent consideration associated with the 2016 sale of TF Holdings Limited because the average cobalt price exceeded $20 per pound during the 24-month period ending December 31, 2019. Also includes the collection of $45 million related to the sale of the Timok exploration assets in Serbia that were sold in late 2019.

b.Includes restricted cash and restricted cash equivalents of $256 million at June 30, 2021, and $264 million at June 30, 2020.

Freeport-McMoRan Inc.

ADJUSTED NET INCOME (LOSS)

Adjusted net income (loss) is intended to provide investors and others with information about FCX's recurring operating performance. This information differs from net income (loss) 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 (loss) 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,
	2021									2020
	Pre-tax			After-taxa			Per Share			Pre-tax			After-taxa			Per Share
Net income attributable to common stock	N/A			$	1,083		$	0.73		N/A			$	53		$	0.03







Cerro Verde labor agreement	$	(69)		$	(22)		$	(0.01)		$	—		$	—		$	—
PT-FI charges	(32)		b	(28)			(0.02)			—			—			—
Metals inventory adjustments	—			—			—			139			101			0.07
COVID-19 related costs	—			—			—			(114)		c	(71)			(0.05)
Employee separation program	—			—			—			(82)		d	(73)			(0.05)
Other net credits	10		e	10			0.01			16		f	10			0.01

Net adjustments to environmental obligations and related litigation reserves	(20)			(20)			(0.01)			(1)			(1)			—
Net gain on sales of assets	3			3			—			—			—			—
Net loss on early extinguishment of debt	—			—			—			(9)			(9)			(0.01)
Net tax creditsg	N/A			—			—			N/A			53			0.04

	$	(107)	h	$	(56)	h	$	(0.04)	h	$	(52)	h	$	9	h	$	0.01

Adjusted net income attributable to common stock	N/A			$	1,139		$	0.77		N/A			$	44		$	0.03	h


	Six Months Ended June 30,
	2021									2020
	Pre-tax			After-taxa			Per Share			Pre-tax			After-taxa		Per Share
Net income (loss) attributable to common stock	N/A			$	1,801		$	1.21		N/A			$	(438)	$	(0.30)







Cerro Verde labor agreement	$	(69)		$	(22)		$	(0.01)		$	—		$	—	$	—
PT-FI charges	(54)		b	(48)			(0.03)			—			—		—
Metals inventory adjustments	(1)			(1)			—			(83)			(81)		(0.06)
COVID-19 related costs	—			—			—			(142)		c	(80)		(0.06)
Employee separation program	—			—			—			(82)		d	(73)		(0.05)
Other net (charges) credits	(13)		e	(10)			(0.01)			—			2		—

Net adjustments to environmental obligations and related litigation reserves	(17)			(17)			(0.01)			(15)			(15)		(0.01)
Net gain (loss) on sales of assets	3			3			—			(11)			(11)		(0.01)
Net loss on early extinguishment of debt	—			—			—			(41)			(41)		(0.03)
Net tax creditsg	N/A			—			—			N/A			52		0.04

	$	(151)		$	(94)	h	$	(0.06)		$	(375)	h	$	(247)	$	(0.17)	h

Adjusted net income (loss) attributable to common stock	N/A			$	1,895		$	1.28	h	N/A			$	(191)	$	(0.13)

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

b.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).

c.Includes charges recorded to production and delivery ($93 million in second-quarter 2020 and $113 million for the first six months of 2020) and to depreciation, depletion and amortization ($21 million in second-quarter 2020 and $29 million for the first six months of 2020) associated with idle facility costs, contract cancellation and other charges directly related to the COVID-19 pandemic.

d.The second quarter and first six months of 2020 include employee separation costs recorded to production and delivery ($60 million), selling, general and administrative ($15 million), and mining exploration and research ($7 million).

e.Second-quarter 2021 includes credits recorded to production and delivery ($10 million) associated with asset retirement obligation 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 asset retirement obligation adjustments.

f.Includes other net credits totaling $1 million to production and delivery, $1 million to interest expense, net and $14 million to other income, net.

g.Refer to "Income Taxes" below for further discussion of net tax credits.

h.Does not foot because of rounding.

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,
	2021							2020
					Income Tax							Income Tax
	Income		Effective		(Provision)			Income		Effective		(Provision)
	(Loss)a		Tax Rate		Benefit			(Loss)a		Tax Rate		Benefit
U.S.b	$	558	1%		$	(3)	c	$	(130)	42%		$	54	d
South America	430		38%		(162)			145		31%		(45)
Indonesia	1,002		40%		(404)			188		42%		(79)






Eliminations and other	(62)		N/A		1			14		N/A		(5)
Rate adjustmente	—		N/A		(35)			—		N/A		(21)
Continuing operations	$	1,928	31%	f	$	(603)		$	217	44%	f,h	$	(96)


	Six Months Ended June 30,
	2021							2020
					Income Tax							Income Tax
	Income		Effective		(Provision)			Income		Effective		(Provision)
	(Loss)a		Tax Rate		Benefit			(Loss)a		Tax Rate		Benefit
U.S.b	$	743	—%		$	(3)	c	$	(581)	10%		$	58	d
South America	923		39%		(356)			(57)		58%		33
Indonesia	1,759		41%		(719)			169		54%		(91)		g






Eliminations and other	(99)		N/A		5			74		N/A		(16)
Rate adjustmente	—		N/A		27			—		N/A		(20)
Continuing operations	$	3,326	31%	f	$	(1,046)		$	(395)	(9)%	f,h	$	(36)

a.Represents income (loss) 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.The second quarter and first six months of 2020 include a tax credit of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of FCX's interest in the lower zone of the Timok exploration project in Serbia. The first six months of 2020 also includes a tax credit of $6 million associated with the removal of a valuation allowance on deferred tax assets.

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

f.FCX's consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which it operates.

g.Includes a tax charge of $8 million ($7 million net of noncontrolling interest) associated with an unfavorable 2012 Indonesia Supreme Court ruling.

h.FCX's U.S. jurisdiction generated net losses for the 2020 periods that did not result in a realized tax benefit; applicable accounting rules required FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses.

Assuming achievement of current sales volume and cost estimates and average prices of $4.25 per pound for copper, $1,800 per ounce for gold and $16.00 per pound for molybdenum for the second half of 2021, FCX estimates its consolidated effective tax rate for the year 2021 would approximate 31 percent. Changes in projected sales volumes and average prices during 2021 would incur tax impacts at estimated effective rates of 40 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 follows, which may not be comparable to similarly titled measures

reported by other companies (in millions):


	As of June 30, 2021		As of December 31, 2020
Current portion of debt	$	1,057	$	34
Long-term debt, less current portion	8,638		9,677
Consolidated debt	9,695		9,711
Less: consolidated cash and cash equivalents	6,313		3,657
Net debt	$	3,382	$	6,054

DERIVATIVE INSTRUMENTS

For the six months ended June 30, 2021, FCX's mined copper was sold 59 percent in concentrate, 21 percent as cathode and 20 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 $4.40 per pound during second-quarter 2021 and settled at $4.26 per pound on June 30, 2021. 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 $4.34 per pound in second-quarter 2021.

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,
	2021						2020
	Prior Perioda		Current Periodb		Total		Prior Perioda		Current Periodb		Total
Revenues	$	173	$	(55)	$	118	$	55	$	107	$	162
Net income attributable to common stock	$	66	$	(25)	$	41	$	19	$	43	$	62
Net income per share of common stock	$	0.05	$	(0.02)	$	0.03	$	0.01	$	0.03	$	0.04

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

b.Reflects adjustments to provisionally priced copper sales during the second quarters 2021 and 2020.


	Six Months Ended June 30,
	2021						2020
	Prior Perioda		Current Periodb		Total		Prior Perioda		Current Periodb		Total
Revenues	$	169	$	156	$	325	$	(102)	$	26	$	(76)
Net income attributable to common stock	$	65	$	55	$	120	$	(43)	$	6	$	(37)
Net income per share of common stock	$	0.04	$	0.04	$	0.08	$	(0.03)	$	—	$	(0.03)

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 2021 and 2020.

At June 30, 2021, FCX had provisionally priced copper sales at its copper mining operations totaling 368 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average price of $4.25 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 $12 million effect on 2021 net income attributable to common stock. The LME copper price settled at $4.21 per pound on July 21, 2021.

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 (loss) totaling $(99) million ($(81) million to net income attributable to common stock) in second-quarter 2021 and $(17) million ($(6) million to net income attributable to common stock) in second-quarter 2020, $(185) million ($(145) million to net income attributable to common stock) for the first six months of 2021 and $(6) million ($1 million to net loss attributable to common stock) for the first six months of 2020. 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 $207 million at June 30, 2021. 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. FCX currently estimates that approximately 40 percent of the net deferred profit balance will be recognized as income in the second half of 2021.

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, Cerro Verde and Grasberg (Indonesia Mining) copper mines, 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, 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		c	106		600		528			56		1,691		775		(1,508)		d	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		18,461			1,740		271		1,117		5,334			45,436
Capital expenditures	22		47		69			23			3		26		314			2		—		7		15			433

Three Months Ended June 30, 2020
Revenues:
Unaffiliated customers	$	20	$	16	$	36		$	471		$	106	$	577	$	683	a	$	—	$	1,106	$	464	$	188	b	$	3,054
Intersegment	447		505		952		e	52			—		52		35			58		8		2		(1,107)			—
Production and delivery	348		439		787			334			104		438		378			61		1,138		446		(854)			2,394
Depreciation, depletion and amortization	43		46		89			88			14		102		124			15		6		7		15			358

Metals inventory adjustments	—		(89)		(89)			—			(57)		(57)		—			1		1		—		5			(139)
Selling, general and administrative expenses	—		1		1			1			—		1		28			—		—		5		56			91
Mining exploration and research expenses	—		1		1			—			—		—		—			—		—		—		17			18
Environmental obligations and shutdown costs	—		—		—			—			—		—		—			—		—		—		11			11


Operating income (loss)	76		123		199			100			45		145		188			(19)		(31)		8		(169)			321

Interest expense, net	1		—		1			20			—		20		1			—		—		1		92			115
Provision for (benefit from) income taxes	—		—		—			29			16		45		78			—		—		1		(28)			96
Total assets at June 30, 2020	2,697		5,198		7,895			8,515			1,631		10,146		16,848			1,777		259		726		2,579			40,230
Capital expenditures	27		121		148			31			20		51		308			4		2		5		9			527

a.Includes PT-FI's sales to PT Smelting totaling $756 million in second-quarter 2021 and $433 million in second-quarter 2020.

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 nonrecurring charges totaling $69 million associated with labor-related charges at Cerro Verde for agreements reached with 57 percent of its hourly employees.

d.Includes charges associated with the major maintenance turnaround at the Miami smelter totaling $19 million.

e.Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.

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, 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		c	209		1,139		983			113		3,007		1,448		(2,511)		d	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		624			3		1		13		20			803

Six months ended June 30, 2020
Revenues:
Unaffiliated customers	$	22	$	23	$	45		$	847		$	204	$	1,051	$	1,128	a	$	—	$	2,221	$	893	$	514	b	$	5,852
Intersegment	889		1,039		1,928		e	90			—		90		35			129		16		13		(2,211)			—
Production and delivery	697		950		1,647			758			214		972		721			127		2,257		857		(1,642)			4,939
Depreciation, depletion and amortization	87		94		181			181			29		210		225			31		8		14		30			699

Metals inventory adjustments	4		52		56			—			3		3		—			5		1		—		18			83
Selling, general and administrative expenses	1		1		2			3			—		3		56			—		—		10		130			201
Mining exploration and research expenses	—		2		2			—			—		—		—			—		—		—		32			34
Environmental obligations and shutdown costs	—		—		—			—			—		—		—			—		1		—		36			37

Net loss on sales of assets	—		—		—			—			—		—		—			—		—		—		11			11
Operating income (loss)	122		(37)		85			(5)			(42)		(47)		161			(34)		(30)		25		(312)			(152)

Interest expense, net	2		—		2			48			—		48		2			—		—		4		186			242
(Benefit from) provision for income taxes	—		—		—			(23)			(10)		(33)		90			—		—		1		(22)			36

Capital expenditures	71		261		332			90			35		125		634			11		4		11		20			1,137

a.Includes PT-FI's sales to PT Smelting totaling $1.5 billion for the first six months of 2021 and $813 million for the first six months of 2020.

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 nonrecurring charges totaling $69 million associated with labor-related charges at Cerro Verde for agreements reached with 57 percent of its hourly employees.

d.Includes charges associated with the major maintenance turnaround at the Miami Smelter totaling $87 million.

e.Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.

XII

Freeport-McMoRan Inc.

PRODUCT REVENUES AND PRODUCTION COSTS

Unit net cash costs 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 (loss) 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 (loss) 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, which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as stock-based compensation costs, long-lived asset impairments, idle facility costs, restructuring and/or unusual charges. 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, 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
Depreciation, depletion and amortization (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.

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, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	888	c	$	888	$	71	$	18	$	977
Site production and delivery, before net noncash and other costs shown below	678			636		57		10		703
By-product credits	(64)			—		—		—		—
Treatment charges	37			36		—		1		37
Net cash costs	651			672		57		11		740
DD&A	88			82		5		1		88
Metals inventory adjustments	(89)			(89)		—		—		(89)
Noncash and other costs, net	36		d	34		1		1		36
Total costs	686			699		63		13		775
Other revenue adjustments, primarily for pricing on prior period open sales	6			6		—		—		6
Gross profit	$	208		$	195	$	8	$	5	$	208

Copper sales (millions of recoverable pounds)	368			368
Molybdenum sales (millions of recoverable pounds)a						9

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	2.42	c	$	2.42	$	8.33
Site production and delivery, before net noncash and other costs shown below	1.85			1.73		6.76
By-product credits	(0.17)			—		—
Treatment charges	0.10			0.10		—
Unit net cash costs	1.78			1.83		6.76
DD&A	0.24			0.22		0.55
Metals inventory adjustments	(0.24)			(0.24)		—
Noncash and other costs, net	0.09		d	0.09		0.08
Total unit costs	1.87			1.90		7.39
Other revenue adjustments, primarily for pricing on prior period open sales	0.02			0.02		—
Gross profit per pound	$	0.57		$	0.54	$	0.94

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	977		$	703	$	88	$	(89)
Treatment charges	(2)			35		—		—
Noncash and other costs, net	—			36		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	6			—		—		—
Eliminations and other	7			13		1		—
North America copper mines	988			787		89		(89)
Other mininge	2,985			2,461		254		(55)


Corporate, other & eliminations	(919)			(854)		15		5
As reported in FCX's consolidated financial statements	$	3,054		$	2,394	$	358	$	(139)

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.Includes reductions to revenues and average realized prices totaling $24 million ($0.06 per pound of copper) related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.

d.Includes charges totaling $22 million ($0.06 per pound of copper) primarily associated with the April 2020 revised operating plans (including employee separation costs) and the COVID-19 pandemic.

e.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, 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.

XVI


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, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,799	c	$	1,799	147		44		1,990
Site production and delivery, before net noncash and other costs shown below	1,439			1,333		128		28		1,489
By-product credits	(141)			—		—		—		—
Treatment charges	76			73		—		3		76
Net cash costs	1,374			1,406		128		31		1,565
DD&A	180			166		10		4		180
Metals inventory adjustments	56			54		—		2		56
Noncash and other costs, net	69		d	65		2		2		69
Total costs	1,679			1,691		140		39		1,870
Other revenue adjustments, primarily for pricing on prior period open sales	(22)			(22)		—		—		(22)
Gross profit	$	98		$	86	$	7	$	5	$	98

Copper sales (millions of recoverable pounds)	722			722
Molybdenum sales (millions of recoverable pounds)a						17

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	2.50	c	$	2.50	$	8.99
Site production and delivery, before net noncash and other costs shown below	2.00			1.85		7.81
By-product credits	(0.19)			—		—
Treatment charges	0.10			0.10		—
Unit net cash costs	1.91			1.95		7.81
DD&A	0.25			0.23		0.64
Metals inventory adjustments	0.08			0.07		—
Noncash and other costs, net	0.09		d	0.09		0.15
Total unit costs	2.33			2.34		8.60
Other revenue adjustments, primarily for pricing on prior period open sales	(0.03)			(0.03)		—
Gross profit per pound	$	0.14		$	0.13	$	0.39

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	1,990		$	1,489	$	180	$	56
Treatment charges	(10)			66		—		—
Noncash and other costs, net	—			69		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(22)			—		—		—
Eliminations and other	15			23		1		—
North America copper mines	1,973			1,647		181		56
Other mininge	5,576			4,934		488		9


Corporate, other & eliminations	(1,697)			(1,642)		30		18
As reported in FCX's consolidated financial statements	$	5,852		$	4,939	$	699	$	83

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.Includes reductions to revenues and average realized prices totaling $24 million ($0.03 per pound of copper) related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.

d.Includes charges totaling $22 million ($0.03 per pound of copper) primarily associated with the April 2020 revised operating plans (including employee separation costs) and the COVID-19 pandemic.

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

XVII


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 for agreements reached with 57 percent of its hourly employees.

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, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	586		$	586	$	32	$	618
Site production and delivery, before net noncash and other costs shown below	360			343		24		367
By-product credits	(25)			—		—		—
Treatment charges	32			32		—		32
Royalty on metals	1			1		—		1
Net cash costs	368			376		24		400
DD&A	103			98		5		103
Metals inventory adjustments	(57)			(57)		—		(57)
Noncash and other costs, net	71		b	67		4		71
Total costs	485			484		33		517
Other revenue adjustments, primarily for pricing on prior period open sales	44			44		—		44
Gross profit (loss)	$	145		$	146	$	(1)	$	145

Copper sales (millions of recoverable pounds)	219			219

Gross profit per pound of copper:

Revenues, excluding adjustments	$	2.67		$	2.67
Site production and delivery, before net noncash and other costs shown below	1.64			1.57
By-product credits	(0.11)			—
Treatment charges	0.15			0.15
Royalty on metals	—			—
Unit net cash costs	1.68			1.72
DD&A	0.47			0.44
Metals inventory adjustments	(0.26)			(0.26)
Noncash and other costs, net	0.32		b	0.30
Total unit costs	2.21			2.20
Other revenue adjustments, primarily for pricing on prior period open sales	0.20			0.20
Gross profit per pound	$	0.66		$	0.67

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	618		$	367	$	103	$	(57)
Treatment charges	(32)			—		—		—
Royalty on metals	(1)			—		—		—
Noncash and other costs, net	—			71		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	44			—		—		—
Eliminations and other	—			—		(1)		—
South America mining	629			438		102		(57)
Other miningc	3,344			2,810		241		(87)


Corporate, other & eliminations	(919)			(854)		15		5
As reported in FCX's consolidated financial statements	$	3,054		$	2,394	$	358	$	(139)

a.Includes silver sales of 0.6 million ounces ($14.55 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 charges totaling $66 million ($0.30 per pound of copper), primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic, and employee separation costs associated with the April 2020 revised operating plans.

c.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

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 for agreements reached with 57 percent of its hourly employees.

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, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	1,199		$	1,199	$	86	$	1,285
Site production and delivery, before net noncash and other costs shown below	853			800		73		873
By-product credits	(66)			—		—		—
Treatment charges	72			72		—		72
Royalty on metals	2			2		—		2
Net cash costs	861			874		73		947
DD&A	210			195		15		210
Metals inventory adjustments	3			3		—		3
Noncash and other costs, net	100		b	95		5		100
Total costs	1,174			1,167		93		1,260
Other revenue adjustments, primarily for pricing on prior period open sales	(70)			(70)		—		(70)
Gross loss	$	(45)		$	(38)	$	(7)	$	(45)

Copper sales (millions of recoverable pounds)	466			466

Gross loss per pound of copper:

Revenues, excluding adjustments	$	2.57		$	2.57
Site production and delivery, before net noncash and other costs shown below	1.84			1.72
By-product credits	(0.14)			—
Treatment charges	0.15			0.15
Royalty on metals	—			—
Unit net cash costs	1.85			1.87
DD&A	0.45			0.42
Metals inventory adjustments	0.01			0.01
Noncash and other costs, net	0.21		b	0.20
Total unit costs	2.52			2.50
Other revenue adjustments, primarily for pricing on prior period open sales	(0.15)			(0.15)
Gross loss per pound	$	(0.10)		$	(0.08)

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	1,285		$	873	$	210	$	3
Treatment charges	(72)			—		—		—
Royalty on metals	(2)			—		—		—
Noncash and other costs, net	—			100		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(70)			—		—		—
Eliminations and other	—			(1)		—		—
South America mining	1,141			972		210		3
Other miningc	6,408			5,609		459		62


Corporate, other & eliminations	(1,697)			(1,642)		30		18
As reported in FCX's consolidated financial statements	$	5,852		$	4,939	$	699	$	83

a.Includes silver sales of 1.5 million ounces ($16.37 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 charges totaling $86 million ($0.18 per pound of copper) primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic, and employee separation costs associated with the April 2020 revised operating plans.

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

XXI


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 credits 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.

XXII


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, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	458		$	458	$	315	$	13	$	786
Site production and delivery, before net noncash and other costs shown below	345			201		138		6		345
Gold and silver credits	(336)			—		—		—		—
Treatment charges	47			27		19		1		47
Export duties	16			10		6		—		16
Royalty on metals	25			13		12		—		25
Net cash costs	97			251		175		7		433
DD&A	124			72		50		2		124

Noncash and other costs, net	8		b	5		3		—		8
Total costs	229			328		228		9		565
Other revenue adjustments, primarily for pricing on prior period open sales	12			12		7		1		20
PT Smelting intercompany loss	(25)			(15)		(10)		—		(25)
Gross profit	$	216		$	127	$	84	$	5	$	216

Copper sales (millions of recoverable pounds)	172			172
Gold sales (thousands of recoverable ounces)						180

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

Revenues, excluding adjustments	$	2.67		$	2.67	$	1,748
Site production and delivery, before net noncash and other costs shown below	2.00			1.17		766
Gold and silver credits	(1.95)			—		—
Treatment charges	0.27			0.16		105
Export duties	0.09			0.05		35
Royalty on metals	0.15			0.08		65
Unit net cash costs	0.56			1.46		971
DD&A	0.72			0.42		276

Noncash and other costs, net	0.05		b	0.03		17
Total unit costs	1.33			1.91		1,264
Other revenue adjustments, primarily for pricing on prior period open sales	0.07			0.07		41
PT Smelting intercompany loss	(0.15)			(0.09)		(57)
Gross profit per pound/ounce	$	1.26		$	0.74	$	468

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	786		$	345	$	124
Treatment charges	(47)			—		—
Export duties	(16)			—		—
Royalty on metals	(25)			—		—
Noncash and other costs, net	—			8		—
Other revenue adjustments, primarily for pricing on prior period open sales	20			—		—
PT Smelting intercompany loss	—			25		—
Indonesia mining	718			378		124
Other miningc	3,255			2,870		219


Corporate, other & eliminations	(919)			(854)		15
As reported in FCX's consolidated financial statements	$	3,054		$	2,394	$	358

a.Includes silver sales of 0.8 million ounces ($17.09 per ounce average realized price).

b.Includes COVID-19 related costs totaling $4 million ($0.03 per pound of copper).

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 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.

XXIV


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, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	760		$	760	$	545	$	22	$	1,327
Site production and delivery, before net noncash and other costs shown below	686			393		282		11		686
Gold and silver credits	(572)			—		—		—		—
Treatment charges	85			49		35		1		85
Export duties	20			11		8		1		20
Royalty on metals	44			25		19		—		44
Net cash costs	263			478		344		13		835
DD&A	225			129		92		4		225

Noncash and other costs, net	35		b	20		14		1		35
Total costs	523			627		450		18		1,095
Other revenue adjustments, primarily for pricing on prior period open sales	(20)			(20)		5		—		(15)

Gross profit	$	217		$	113	$	100	$	4	$	217

Copper sales (millions of recoverable pounds)	299			299
Gold sales (thousands of recoverable ounces)						319

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

Revenues, excluding adjustments	$	2.54		$	2.54	$	1,709
Site production and delivery, before net noncash and other costs shown below	2.29			1.31		884
Gold and silver credits	(1.91)			—		—
Treatment charges	0.28			0.17		110
Export duties	0.07			0.04		25
Royalty on metals	0.15			0.08		58
Unit net cash costs	0.88			1.60		1,077
DD&A	0.75			0.43		289

Noncash and other costs, net	0.12		b	0.06		45
Total unit costs	1.75			2.09		1,411
Other revenue adjustments, primarily for pricing on prior period open sales	(0.07)			(0.07)		14

Gross profit per pound/ounce	$	0.72		$	0.38	$	312

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	1,327		$	686	$	225
Treatment charges	(85)			—		—
Export duties	(20)			—		—
Royalty on metals	(44)			—		—
Noncash and other costs, net	—			35		—
Other revenue adjustments, primarily for pricing on prior period open sales	(15)			—		—

Indonesia mining	1,163			721		225
Other miningc	6,386			5,860		444


Corporate, other & eliminations	(1,697)			(1,642)		30
As reported in FCX's consolidated financial statements	$	5,852		$	4,939	$	699

a.Includes silver sales of 1.3 million ounces ($16.30 per ounce average realized price).

b.Includes COVID-19 related costs totaling $4 million ($0.01 per pound of copper).

c.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)

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

	Three Months Ended June 30,
(In millions)	2021		2020

Revenues, excluding adjustmentsa	$	95	$	63
Site production and delivery, before net noncash and other costs shown below	54		53
Treatment charges and other	6		5
Net cash costs	60		58
DD&A	17		15
Metals inventory adjustments	—		1
Noncash and other costs, net	2		8		b
Total costs	79		82
Gross profit (loss)	$	16	$	(19)

Molybdenum sales (millions of recoverable pounds)a	7		6

Gross profit (loss) per pound of molybdenum:

Revenues, excluding adjustmentsa	$	12.77	$	9.69
Site production and delivery, before net noncash and other costs shown below	7.29		8.12
Treatment charges and other	0.85		0.85
Unit net cash costs	8.14		8.97
DD&A	2.29		2.29
Metals inventory adjustments	—		0.16
Noncash and other costs, net	0.30		1.34		b
Total unit costs	10.73		12.76
Gross profit (loss) per pound	$	2.04	$	(3.07)

Reconciliation to Amounts Reported
								Metals
			Production					Inventory
Three Months Ended June 30, 2021	Revenues		and Delivery			DD&A		Adjustments
Totals presented above	$	95	$	54		$	17	$	—
Treatment charges and other	(6)		—			—		—
Noncash and other costs, net	—		2			—		—
Molybdenum mines	89		56			17		—
Other miningc	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	$	—

Three Months Ended June 30, 2020
Totals presented above	$	63	$	53		$	15	$	1
Treatment charges and other	(5)		—			—		—
Noncash and other costs, net	—		8			—		—


Molybdenum mines	58		61			15		1
Other miningc	3,915		3,187			328		(145)


Corporate, other & eliminations	(919)		(854)			15		5
As reported in FCX's consolidated financial statements	$	3,054	$	2,394		$	358	$	(139)

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.Includes charges totaling $6 million ($1.00 per pound of molybdenum) primarily associated with the April 2020 revised operating plans (including employee separation costs) and contract cancellation costs related to the COVID-19 pandemic.

c.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.

XXVI


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)	2021		2020

Revenues, excluding adjustmentsa	$	171	$	140
Site production and delivery, before net noncash and other costs shown below	108		117
Treatment charges and other	12		11
Net cash costs	120		128
DD&A	32		31
Metals inventory adjustments	1		5
Noncash and other costs, net	5		10		b
Total costs	158		174
Gross profit (loss)	$	13	$	(34)

Molybdenum sales (millions of recoverable pounds)a	14		13

Gross profit (loss) per pound of molybdenum:

Revenues, excluding adjustmentsa	$	12.12	$	10.36
Site production and delivery, before net noncash and other costs shown below	7.68		8.67
Treatment charges and other	0.85		0.85
Unit net cash costs	8.53		9.52
DD&A	2.27		2.29
Metals inventory adjustments	0.06		0.35
Noncash and other costs, net	0.36		0.79		b
Total unit costs	11.22		12.95
Gross profit (loss) per pound	$	0.90	$	(2.59)

Reconciliation to Amounts Reported
								Metals
			Production					Inventory
Six months ended June 30, 2021	Revenues		and Delivery			DD&A		Adjustments
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 miningc	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

Six months ended June 30, 2020
Totals presented above	$	140	$	117		$	31	$	5
Treatment charges and other	(11)		—			—		—
Noncash and other costs, net	—		10			—		—


Molybdenum mines	129		127			31		5
Other miningc	7,420		6,454			638		60


Corporate, other & eliminations	(1,697)		(1,642)			30		18
As reported in FCX's consolidated financial statements	$	5,852	$	4,939		$	699	$	83

b.Includes charges totaling $6 million ($0.48 per pound of molybdenum) primarily associated with the April 2020 revised operating plans (including employee separation costs) and contract cancellation costs related to the COVID-19 pandemic.

XXVII

Click to edit Master title style fcx.com FCX Conference Call 2nd Quarter 2021 Results July 22, 2021

Click to edit Master title styleautionary Statemen 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 ore grades and milling rates; business outlook; production and sales volumes; unit net cash costs; cash flows; capital expenditures; liquidity; operating costs; operating plans; FCX's financial policy; FCX's expectations regarding PT-FI's ramp-up of underground mining activities and future cash flows through 2022; PT-FI's development, financing, construction and completion of new domestic smelting capacity in Indonesia totaling 2 million metric tons of concentrate per year by December 2023; expectations regarding negotiations with hourly employees at Cerro Verde including completion of new CLAs; FCX’s commitments to deliver responsibly produced copper, including plans to implement and validate all of its operating sites under specific frameworks; improvements in operating procedures and technology; exploration efforts and results; development and production activities, rates and costs; tax rates; export quotas and duties; the impact of copper, gold and molybdenum price changes; the impact of deferred intercompany profits on earnings; mineralization and reserve estimates; execution of the settlement agreements associated with the Louisiana coastal erosion cases and talc-related litigation; descriptions of our objectives, strategies, plans, goals or targets, including our net debt target; and future returns to shareholders, including dividend payments, share purchases and sales. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” "targets," “intends,” “likely,” “will,” “should,” “could,” “to be,” ”potential," “assumptions,” “guidance,” “future” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of future dividends is at the discretion of the Board of Directors (Board) and will depend on FCX's financial results, cash requirements, future prospects, global economic conditions, and other factors deemed relevant by the Board. 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, changes in the credit ratings of FCX; changes in FCX's cash requirements, financial position, financing plans or investment plans; changes in general market, economic, tax, regulatory or industry conditions; the duration and scope of and uncertainties associated with the COVID-19 pandemic, and the impact thereof on commodity prices, FCX’s business and the global economy and any related actions taken by governments and businesses; FCX’s ability to contain and mitigate the risk of spread or major outbreak of COVID-19 at its operating sites, including at PT-FI’s remote operating site in Papua; supply of and demand for, and prices of, copper, gold and molybdenum; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations; production rates; timing of shipments; results of 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 15, 2022; risks associated with underground mining; satisfaction of requirements in accordance with PT-FI's special mining license to extend mining rights from 2031 through 2041; the Indonesia government's approval of a deferred schedule for completion of new domestic smelting capacity in Indonesia; expected results from improvements in operating procedures and technology, including innovation initiatives; industry risks; regulatory changes; political and social risks; labor relations, including labor-related work stoppages and costs; weather- and climate-related risks; environmental risks; litigation results; cybersecurity incidents; changes in general market, economic and industry conditions; financial condition of FCX’s customers, suppliers, vendors, partners and affiliates, particularly during weak economic conditions and extended periods of volatile commodity prices; reductions in liquidity and access to capital; 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, 2020, 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, 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 mineralized material not included in proven and probable mineral reserves. Mineralized material is a mineralized body that has been delineated by appropriately spaced drilling and/or underground sampling to support the estimated tonnage and average metal grades. Such a deposit cannot qualify as recoverable proven and probable reserves until legal and economic feasibility are confirmed based upon a comprehensive evaluation of development costs, unit costs, grades, recoveries and other material factors. Significant additional drilling 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 mineralized material not included in reserves will become proven and probable mineral reserves. This presentation also contains financial measures such as unit net cash costs 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. As required by SEC Regulation G, FCX's calculation and reconciliation of unit net cash costs per pound of copper and net debt to amounts reported in FCX's consolidated financial statements are in the supplemental schedules of FCX’s 2Q21 press release, which is available on FCX's website, "fcx.com.” A reconciliation of adjusted EBITDA to amounts reported in FCX’s consolidated financial statements is included on slide 35. 2

Click to edit Master title style 3 2Q21 Highlights Cash Flows Net Debt (4)($ bns) (1) Includes 7¢/lb associated with nonrecurring labor-related charges at Cerro Verde for agreements reached with 57% of its hourly employees. (2) Includes working capital sources of $0.5 bn. (3) Includes $0.3 bn for major projects. (4) Net debt equals consolidated debt less consolidated cash and cash equivalents. See Cautionary Statement. e = estimate. Key Stats Actual Copper Sales (mm lbs) 929 Copper Realization ($/lb) $4.34 Gold Sales (k ozs) 305 Unit Net Cash Costs ($/lb) $1.48  Prioritizing health and safety; COVID vaccination programs  Ramp-up of Grasberg underground mines advancing on schedule ➢ 20% increase in ore production rates from 1Q21 ➢ Annualized metals sales expected to reach post ramp-up targets by YE 2021e  Strong financial results and cash flow generation ➢ Reduced net debt by $2.7 billion in 1H21  Achieved targeted net debt level ➢ Positioned for increasing cash returns to shareholders and investments in future organic growth  Advancing studies to add new capacity  Favorable market outlook (1) Operating Cash Flow CAPEX $0.4 (3) $2.4 (2) $6.1 $3.4 2Q21 YE 2020 2Q212Q20 $8.4

Click to edit Master title style $4.00/lb Cu $5.00/lb Cu 4  New assurance framework developed to demonstrate the copper industry’s responsible production practices and contribution to the United Nations Sustainable Development Goals  Producers participating in the Copper Mark are committed to adhering to internationally recognized responsible operating practices  Framework covers 32 issue areas across 5 ESG categories formalized in the Responsible Minerals Initiative’s Risk Readiness Assessment  The Copper Mark is currently evaluating extension to by-product metals  Requires third-party assurance of site performance and independent Copper Mark validation every 3 years  FCX is committed to achieving the Copper Mark at all of its copper producing sites The C pper rk Recognition for Responsible Production Awarded Letter of Commitment Planned Morenci (AZ) Miami Smelter (AZ) El Paso Refinery (TX) El Abra (Chile) Cerro Verde (Peru) Atlantic Copper (Spain) Bagdad (AZ) Chino (AZ) Tyrone (NM) Safford (AZ) Sierrita (AZ) PT-FI (Indonesia) Copper Mark Status by Site: See Cautionary Statement.

Click to edit Master title styleopper – Metal of the Future Critical to Global Decarbonization 5 Electric vehicles use up to four times more copper than internal combustion engines. Renewable energy technologies use four to five times more copper than fossil fuel power generation. Copper consumption associated with electric vehicles and renewable energy technologies is expected to grow rapidly over the next several years. More than 70% of the world’s copper is used in applications that deliver electricity. See Cautionary Statement. Source: International Copper Association Freeport is strategically positioned as a leading copper producer Intensity of Use Is Increasing with Decarbonization

Click to edit Master title styleompelling Investment Cas For Copper & Freeport  Responsible Producer of Scale  Strong Cash Flows  Embedded Growth Options  Long-lived Reserves  Attractive Capital Allocation Framework Structural Deficits/ Premium Value 6  Permitting  Geology  Longer Lead Times  Pipeline is Thin 4.6 2.1 Project Approval Rate Has Been Slow in Recent Years Only 8 projects > 100k Mt/a 2012 Current Rising Demand Supply Scarcity 38 Probable Projects 51 Probable Projects  Global Growth Accelerating  New Demand Drivers for Clean Energy (million metric tons) See Cautionary Statement. Source: Wood Mackenzie, December 2012 and June 2021

Click to edit Master title styleGrowing Margins & Cash F ow 2022e/2023e Avg ($ in billions) Annual EBITDA Estimates (1) (1) Based on July 2021 sales estimates, $1,800/oz Au and $16/lb molybdenum. 2021e EBITDA approximates $10.9 bn assuming $4.25/lb Cu, $1,800/oz Au and $16/lb molybdenum for 2H21e. Note: EBITDA equals operating income plus depreciation, depletion and amortization. e = estimate. See Cautionary Statement $4.00/lb Cu $5.00/lb Cu  Volume Growth  Efficient Cost Structure  Expanding Margins  Additional Embedded Growth Options in Portfolio  Laser Focused on Execution 7 2021e v. 2020 2022e v 2021e Copper ~20% ~15% Gold ~55% ~20% ~$12.5 ~$17

Click to edit Master title style 0% 25% 50% 75% 100% 4Q19 4Q20 4Q21e 2022e Grasberg Underground Advancing on Schedule e = estimate. See Cautionary Statement. Note: Includes production from Grasberg Block Cave, DMLZ, DOZ and Big Gossan Q u a rt e rl y P ro d u c ti o n A n n u a li z e d a s % o f T a rg e te d A v e ra g e 2 0 2 1 e -2 0 2 3 e 8 2021e-2023e Annual Average 1.55 bn lbs Cu & 1.6 mm ozs Au  2Q21 annualized metal sales reached 78% of post ramp-up targets  Expected to reach 100% by YE 2021e

Click to edit Master title styleFuture Grow h Emb dded in Existing Asset Base Provides Increased Leverage to Higher Copper Prices  Bagdad Expansion ➢ Current ~80-year reserve life ➢ Reviewing +100K st/d mill expansion with +200 mm lbs Cu per year  Lone Star ➢ Oxide project advances opportunity for development of potentially massive sulfide resource (mill project) ➢ Potential 50+ bn lb Cu resource*  Other U.S. brownfield projects  Leach Technology Advancements  El Abra Mill Project - Chile ➢ 17+ bn lb Cu resource ➢ Reviewing potential 240K mt/d mill project with +0.7 bn lbs Cu per year  Ongoing optimization at Cerro Verde - Peru  Leach Technology Advancements  CirCular Project - Spain ➢ ESG project (Circular Economy); recycle electronic material  Kucing Liar - Grasberg Minerals District ➢ Reserves: 6 bn lbs Cu & 6 mm ozs Au ➢ Leverage existing infrastructure ➢ 90K mt/d block cave; optimize value with focus on lower pyrite areas of deposit ➢ Proceeding with studies, test work & drilling 9 NORTH AMERICA INDONESIASOUTH AMERICA EUROPE * Potential resources are not included in reserves and will not qualify as reserves until comprehensive engineering studies establish legal and economic feasibility. Accordingly, no assurance can be given that the potential resources will become proven and probable reserves. See Cautionary Statement. Lone Star El Abra Atlantic Copper Kucing Liar Grasberg Minerals District Grasberg

Click to edit Master title styleLone Star Oxide Project Continues to Expand with Long-Term Sulfide Potential  Oxide project advances opportunity for development of potentially massive sulfide resource (mill project)  Potential 50+ bn lb Cu resource*  75K t/d stacking rate  ~200mm lbs Cu/year at full rates  95K t/d stacking rate  ~285mm lbs Cu/year at full rates 10 Long-Term Sulfide Potential Current Plan Near-Term Potential  105/110K t/d stacking rate  ~330 mm lbs Cu/year at full rates  Small investment for tankhouse capacity & additional mining equipment Original Project, 2017 * Potential resources are not included in reserves and will not qualify as reserves until comprehensive engineering studies establish legal and economic feasibility. Accordingly, no assurance can be given that the potential resources will become proven and probable reserves. See Cautionary Statement. Oxide Project Expands X-Section showing Oxide on top of the Sulfide PotentialSulfide deposit Oxide Reserve Pit Conceptual Sulfide Resource Pit Lone Star Resource Cross-Section Oxide deposit A B A B

Click to edit Master title style 11 Advancing New Leach Technologies Taking Leach to the Next Level  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 & ores that have been typically considered difficult to leach, like chalcopyrite  Leveraging both R&D & in-field trials at existing leach stockpiles & future opportunities to recover Cu from below mill cut-off grade material  Success would enable utilization of latent tank house capacity with limited capital investment  Low carbon footprint South America 16% Balance North America 34% Morenci 50% Copper in Leach Stockpiles Unrecoverable by Traditional Leach Methods 38 bn lbs Contained* * Copper that is currently not included in reserves or mineralized material. See Cautionary Statement.

12 Global Industry Leader One of the world’s largest publicly traded copper producers; Seasoned and value- driven global team; 30+ year reserve life with substantial additional resources Trusted Operator Strong reputation and franchise in 4 countries; Synergistic operation of all assets World-Class Developer Industry leading track record for major project execution in complex jurisdictions Block Cave Leader Industry leading technical capabilities; Decades of block caving experience Responsible Producer Long-standing commitment to all of our stakeholders including our employees, communities, host countries, customers and suppliers “Charging Ahead” Responsibly. Reliably. Relentlessly. See Cautionary Statement.

13 “Charging Ahead” As One Freeport TEAM

Click to edit Master title style Financial Review & Outlook

Click to edit Master title style2Q 2021 Operations Update  Lone Star - Arizona ➢ Achieved design capacity of ~200 mm lbs per annum ➢ Opportunities to increase to > 300 mm lbs per annum ➢ Bringing forward leach pad options to enhance opportunities ➢ Long-term development options include large-scale sulfide resources  Bagdad - Arizona ➢ Advancing studies to add new capacity  Morenci - Arizona ➢ Restarting mill capacity idled in 2020 ➢ 60% increase in mill throughput by 2Q22e  El Abra - Chile ➢ Stacking rate avg: 94k mt/d, slightly above forecast ➢ Adding incremental copper production: 70 mm lbs per annum* beginning in mid-2022e ➢ New leach pad under construction ➢ Monitoring potential changes in government fiscal matters in Chile and will defer major investment decisions pending future clarity * ~50% of increase is expected in 2021e with full rates to be achieved in 2022e 15e = estimate. See Cautionary Statement.  Cerro Verde - Peru ➢ Mill avg: 374k mt/d, slightly above forecast ➢ Plan to return to pre-COVID-19 levels of ~400k mt/d in 2022e ➢ Completed new agreements with 57% of Cerro Verde hourly employees ➢ Negotiating with remaining hourly employees  Grasberg – Indonesia ➢ Underground ramp-up › 41 new drawbells added; over 460 total › Second crusher installed at Grasberg Block Cave › DMLZ/Grasberg Block Cave Operating Rates  Avg: ~118k mt/d; 20% above 1Q21 rates › Grasberg Block Cave achieved a daily record of 107k t/d ➢ Mill projects › 3rd SAG mill installation in progress (2023 completion) › Advancing new mill recovery project SOUTH AMERICANORTH AMERICA INDONESIA Cu Sales: 389 mm lbs Cu Sales: 230 mm lbs Cu Sales: 310 mm lbs Au Sales: 302 k ozs

Click to edit Master title styleIndonesian Smelt Upda e  PT-FI committed in 2018 IUPK to construct 2 mm tpy in-country processing facility of Cu concentrate by December 2023 ➢ Project has been delayed by COVID-19  Advancing commercial arrangements for 30% expansion of existing smelter (PT Smelting) ➢ Target completion date of YE 2023 ➢ Estimated cost: ~$250 mm  Awarded construction contract to Chiyoda for greenfield smelter and related refinery in East Java near PT Smelting ➢ Annual capacity 1.7 mm tpy of concentrate ➢ To be completed as soon as feasible in 2024* ➢ Target price: ~$2.8 bn**  Precious metal refinery (PMR) to process slimes from PT Smelting and new greenfield smelter ➢ Estimated cost: ~$250 mm  Capital costs shared 51%/49% (PT Inalum/FCX)  PT-FI entered into a $1 bn five-year unsecured bank credit facility to advance these projects  Future smelter spend to be debt financed by PT-FI  Annual debt service cost expected to be essentially offset by phase out of export duty 16 * Dependent on no further pandemic-related disruptions ** Excludes capitalized interest, owner’s costs and commissioning e = estimate. See Cautionary Statement. ~$180 $88 ~$200 ~$98 Estimated Annual Costs After Tax Debt Service (1) (2023e – 2041e) Estimated Annual Savings (5% Export Duty) (2) (1) Assumes debt service over life of project (2) Assumes prices of $4.00/lb copper and $1,700/oz gold Annual Debt Service Cost Expected to be Essentially Offset by Phase Out of Export Duty ($ in mms) 100% FCX’s Equity Share 100% FCX’s Equity Share Preliminary Estimate of Spending on Greenfield Smelter and PMR $0.3 $1.4 $0.9 $0.5 2021e 2022e 2023e 2024e ($ in bns) NOTE: Capital spending on the smelter will be debt financed (economics shared 49% by FCX) and will not be deducted from cash available for returns to shareholders.

Click to edit Master title styleAnnual Sales Profile July 2021 Estimate (1) Consolidated copper sales include 608 mm lbs in 2020, 740 mm lbs in 2021e, 860 mm lbs in 2022e and 1,460 mm lbs in 2023e for noncontrolling interests; excludes purchased copper. (2) Consolidated gold sales include 158k ozs in 2020, 245k ozs in 2021e, 300k ozs in 2022e and 800k ozs in 2023e for noncontrolling interests. e = estimate. See Cautionary Statement. 0 1 2 3 4 5 2020 2021e 2022e 2023e 3.2 3.85 4.4 4.4 0 1 2 2020 2021e 2022e 2023e 0.9 1.3 1.6 1.8 0 25 50 75 100 2020 2021e 2022e 2023e 80 86 80 80 17 (million ozs)(billion lbs)Copper Sales(1) Gold Sales(2) (million lbs)Molybdenum Sales

Click to edit Master title style NOTE: EBITDA equals operating income plus depreciation, depletion and amortization. e = estimate. See Cautionary Statement. (1) U.S. Dollar Exchange Rates: 716 Chilean peso, 14,300 Indonesian rupiah, $0.77 Australian dollar, $1.22 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 $5 $10 $15 $20 Cu $4.00/lb Cu $4.50/lb Cu $5.00/lb Average ’22e/’23e $0 $3 $6 $9 $12 $15 Cu $4.00/lb Cu $4.50/lb Cu $5.00/lb Average ’22e/’23e ($ in bns except copper, gold and molybdenum prices) Operating cash flow l Excludes working capital changes ($1,800/oz gold, $16/lb molybdenum) EBITDA l ($1,800/oz gold, $16/lb molybdenum) EBITDA and Cash Flow at Various Copper Prices Sensitivities Average ’22e/’23e (US$ in mms) EBITDA Operating Cash Flow Copper +/-$0.10/lb $330 Molybdenum +/-$1.00/lb $ 70 Gold +/-$50/oz $ 55 Currencies (1) +/-10% $140 Diesel +/-10% $ 45 Copper +/-$0.10/lb $435 Molybdenum +/-$1.00/lb $ 80 Gold +/-$50/oz $ 80 Currencies(1) +/-10% $200 Diesel +/-10% $ 60 18

Click to edit Master title style 2020 2021e 2022e onsolidated Capital Expenditures Estimates Excluding Indonesian Smelter CAPEX (1) Major Projects (1) See slide 16; smelter investments expected to be funded by PT-FI with debt financing. (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 ($1.0 bn in 2020, $1.2 bn in 2021e, and $1.0 bn in 2022e) and Lone Star ($0.2 bn in 2020 and $0.1 bn in 2022e); also includes discretionary growth spending at PT-FI for mill recovery project ($0.1 bn in 2022e). NOTE: Amounts include capitalized interest. e= estimate. See Cautionary Statement. $1.2(3) $2.0 $0.8 Other $1.4(3) $2.2 $0.8 Net of Scheduled Contributions $1.8(2) ($ in bns) $2.0(2) 19 $2.3(2) $2.5 $1.2(3) $1.3 $

20 Strong Financial Performance Driven by Growing Volumes and Pricing Net Debt / Adjusted EBITDA** 2Q20 2Q21 $8.4 $3.4 (US$ bns) Net Debt *$ Financial Policy Provides Framework for Cash Returns to Shareholders, Investments & Balance Sheet Management 3.5x 0.4x * Net debt equals consolidated debt less consolidated cash and cash equivalents. ** Trailing 12-months See Cautionary Statement.

Click to edit Master title styleFinancial Policy 21  Policy aligned with strategic objectives of maintaining a strong balance sheet, increasing cash returns to shareholders and advancing opportunities for future growth  Annual base dividend of $0.30/share, paid quarterly  Performance-Based Payout Policy  After net debt target of $3 bn - $4 bn is achieved (excluding smelter debt), up to 50% of Free Cash Flow* for shareholder returns ➢ Determine at least annually taking into account market conditions, operational/financial outlook, future investments, etc.  With recent achievement of net debt target, expect Board to consider the amount of additional cash returns to shareholders following 2021 annual results Organic Growth Balance Sheet Strength Up to 50% for Cash Returns to Shareholders * Available cash flows generated after planned capital spending and distributions to noncontrolling interests See Cautionary Statement

22 World’s Premier Publicly Traded Copper Producer Industry Leader with Size, Scale and Durability Copper Supported by Positive Long-Term Fundamentals Strong Track Record and Commitment to Communities / Environmental Responsibility Growing Production and Cash Flow Profile Portfolio of High-Quality Copper / Gold Assets with Embedded Growth Options Difficult to Replicate Technically Proficient Proven Capabilities Experienced Management Team

Click to edit Master title style Reference Slides

Click to edit Master title style 24 Our COVID-19 Response Providing monetary and in-kind contributions of medical supplies and food in areas where we operate Active and preventive management, through the implementation of global health guidelines, including testing, screening, tracking and vaccine program As a leading supplier of copper to the global economy, FCX continues to meet the needs of its customers WE ARE IN THIS TOGETHER Serving Our Customers Supporting Our Communities Prioritizing the Health & Well-Being of Our Workforce

Click to edit Master title style 25 Financial Highlights Copper Consolidated Volumes (mm lbs) 929 1,754 Average Realization (per lb) $ 4.34 $ 4.25 Site Production & Delivery Costs (per lb) $ 2.02 $ 1.94 Unit Net Cash Costs (per lb) $ 1.48 $ 1.44 Gold Consolidated Volumes (000’s ozs) 305 563 Average Realization (per oz) $1,794 $1,785 Molybdenum Consolidated Volumes (mm lbs) 22 43 Average Realization (per lb) $13.11 $12.38 2Q21 (1) Includes 7¢/lb of copper in 2Q21 and 4¢/lb of copper in 1H21 associated with nonrecurring labor-related charges at Cerro Verde for agreements reached with 57% of its hourly employees. (2) Includes working capital sources of $0.5 bn for 2Q21 and $0.2 bn for 1H21. Revenues $ 5.7 $ 10.6 Net Income Attributable to Common Stock $ 1.1 $ 1.8 Diluted Net Income Per Share $ 0.73 $ 1.21 Operating Cash Flows $ 2.4 $ 3.5 Capital Expenditures $ 0.4 $ 0.8 Total Debt $ 9.7 $ 9.7 Consolidated Cash and Cash Equivalents $ 6.3 $ 6.3 (2) (in billions, except per share amounts) Sales Data Financial Results 1H21 (1) (1)

Click to edit Master title style 26 2Q21 Mining Operating Summary (1) Includes 4 mm lbs in 2Q21 and 2Q20 from South America. (2) Silver sales totaled 0.8 mm ozs in 2Q21 and 0.6 mm ozs in 2Q20. (3) Silver sales totaled 1.4 mm ozs in 2Q21 and 0.8 mm ozs in 2Q20. (4) South America includes 30¢/lb and Consolidated includes 7¢/lb associated with nonrecurring labor-related charges at Cerro Verde for agreements reached with 57% of its hourly employees. NOTE: 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 “Product Revenues and Production Costs” in the supplemental schedules of FCX’s 2Q21 press release, which is available on FCX’s website. Cash Unit Costs Site Production & Delivery $2.14 $2.48 $1.54 $2.02 By-product Credits (0.25) (0.31) (1.93) (0.82) Treatment Charges 0.08 0.13 0.24 0.14 Royalties & Export Duties - 0.01 0.40 0.14 Unit Net Cash Costs $1.97 $2.31 $0.25 $1.48 North South America America Indonesia Consolidated(per lb of Cu)2Q21 Unit Production Costs North America 18 22 (1) (1) Mo mm lbs 2Q21 2Q20 368389 2Q21 2Q20 Cu mm lbs Indonesia (3) 172 310 2Q21 2Q20 180 302 2Q21 2Q20 South America (2) 2Q21 2Q20 230 219 by Region Au 000 ozs Sales From Mines for 2Q21 & 2Q20 (4) (4) (4) (4)

Click to edit Master title style2021e Operational Data 27 (1) (1) Includes molybdenum produced in South America. (2) Includes gold produced in North America. (3) Estimates assume average prices of $1,800/oz for gold and $16/lb for molybdenum for 2H21e. 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. (5) South America includes 7¢/lb and Consolidated includes 2¢/lb associated with nonrecurring labor-related charges at Cerro Verde for agreements reached with 57% of its hourly employees. e = estimate. See Cautionary Statement. (per lb of Cu) North South America America Indonesia Consolidated Site Production & Delivery, excl. adjs.(4) $2.17 $2.19(5) $1.42 $1.91(5) By-product Credits (0.35) (0.31) (1.86) (0.86) Treatment Charges 0.09 0.13 0.24 0.16 Royalties & Export Duties - 0.01 0.39 0.14 Unit Net Cash Costs $1.91 $2.02(5) $0.19 $1.35(5) 2021e Unit Net Cash Costs (3) 1,050 86 1,465 1,335 1.3 (2) North America IndonesiaSouth America by Region2021e Sales Mo mm lbs Cu mm lbs Au mm ozs

Click to edit Master title style2021e Outlook Copper: 3.85 billion lbs Gold: 1.3 million ozs Molybdenum: 86 million lbs Sales Outlook Unit Net Cash Cost of Copper Operating Cash Flows (3) Capital Expenditures  Site prod. & delivery ➢ 2021e: $1.91/lb (1) ➢ 3Q21e: $1.95/lb After by-product credits (2) ➢ 2021e: $1.35/lb (1) ➢ 3Q21e: $1.33/lb ~$7.5 billion @ $4.25/lb copper for 2H21e Each 10¢/lb change in copper in 2H21e = $200 million  $2.2 billion (4) (1) Includes 2¢/lb associated with nonrecurring labor-related charges at Cerro Verde for agreements reached with 57% of its hourly employees. (2) Assumes average prices of $1,800/oz gold and $16/lb molybdenum in 2H21e. (3) Includes $0.4 bn of working capital and other sources. Assumes average prices of $1,800/oz gold and $16/lb molybdenum in 2H21e; each $100/oz change in gold would have an approximate $50 mm impact and each $2/lb change in molybdenum would have an approximate $55 mm impact. (4) PT Inalum scheduled contributions in 2021e approximate $0.2 bn; excludes Indonesia smelter expenditures. e = estimate. See Cautionary Statement. 28 ➢ $1.4 billion for major projects ➢ $0.8 billion for other mining

Click to edit Master title style2021e Quarterly Sales 0 200 400 600 800 1,000 1,200 1Q21 2Q21 3Q21e 4Q21e 825 929 1,035 1,060 Note: Consolidated gold sales include 48k ozs in 1Q21, 56k ozs in 2Q21, 67k ozs in 3Q21e and 74k ozs in 4Q21e for noncontrolling interests. e = estimate. See Cautionary Statement. Note: Consolidated copper sales include 170 mm lbs in 1Q21, 166 mm lbs in 2Q21, 198 mm lbs in 3Q21e and 206 mm lbs in 4Q21e for noncontrolling interests; excludes purchased copper. 0 5 10 15 20 25 1Q21 2Q21 3Q21e 4Q21e 21 22 21 22 0 100 200 300 400 500 1Q21 2Q21 3Q21e 4Q21e 258 305 360 390 (million lbs)Copper Sales (thousand ozs)Gold Sales (million lbs)Molybdenum Sales 29

Click to edit Master title style 30 Grasberg - World Class Block Cave Design 9 31 72 102 126 129 130 Ramp-up Schedule (000’s t/d of Ore) 10 29 55 71 72 78 80 5 Production Blocks, 3 Currently Active 3 Production Blocks, 2 Currently Active ▪ Continuation of Ore Mined in Open Pit (300 meters below) ▪ 874 mm t @ 1.08% Copper & 0.73 g/t Gold ▪ YE 2020 Reserves: 17 bn lbs Copper; 13 mm ozs Gold ▪ By 2023: 335,000 Sq Meter Footprint (over 80 acres) ▪ Life of Mine: 725,000 Sq Meter Footprint (180 acres) ▪ Fully Autonomous Underground Rail System ▪ Annual Production @ Avg. Reserve Grade(1) • 950 mm lbs Copper & 700,000 ozs Gold ▪ Located Below DOZ Underground Block Cave Mine ▪ 1,500 meters below surface ▪ 439 mm t @ 0.89% Copper & 0.72 g/t Gold ▪ YE 2020 Reserves: 7 bn lbs Copper; 8 mm ozs Gold ▪ By 2022: 200,000 Sq Meter Footprint (~ 50 acres) ▪ Life of Mine: 450,000 Sq Meter Footprint (110 acres) ▪ Annual Production @ Avg. Reserve Grade(1) • 500 mm lbs Copper & 540,000 ozs Gold Grasberg Block Cave DMLZ 2019 2020 2021e 2022e 2023e 2024e 2025e Ramp-up Schedule (000’s t/d of Ore) (1) Access to higher ore grades expected in early years of production. e = estimate. See Cautionary Statement. Substantial Infrastructure in Place to Support Large-Scale Production 2019 2020 2021e 2022e 2023e 2024e 2025e Plan View N PB = Production Block 100 meters PB2N PB1S PB1N PB3 Current Cave 2 3 PB2S 1 3 Cave Fronts PB = Production Block Plan View PB1S N PB2N 100 meters PB1N 1 2 2 Cave Fronts

Click to edit Master title styleProject Update Grasberg Transition Remains on Track Deep MLZ (DMLZ) & Grasberg Block Cave (GBC) averaged 118,300 t/d in 2Q21: 20% above 1Q21 rates e = estimate. See Cautionary Statement. 4 10 12 15 11 10 10 0 10 20 30 40 1Q 4Q 2Q 4Q 2Q 3Qe Qtr Avg 2 2 3 3 DMLZ 10 24 34 30 18 27 0 10 20 30 40 1Q 4Q 2Q 4Q 2Q 3Qe Qtr Avg GBC 90 143 182 233 0 100 200 300 400 2019 2020 2021e 2022eActive Production Blocks 76 229 335 0 100 200 300 400 2019 2020 2021e 2022e 3 3 4 5 GBC DMLZ DMLZ GBC 2021e Exit Rate: 95 2021e Exit Rate: 60 Forecast Drawbelling Open drawbells provide scale – cumulative blasted Ore Extraction (000 t/d) 7 15 39 54 55 0 20 40 60 1Q19 4Q19 4Q20 2Q21 3Q21e 5 11 46 64 0 20 40 60 80 1Q19 4Q19 4Q20 2Q21 3Q21e 2021e20202019 2021e20202019 401 41 79 31

Click to edit Master title style 32 PT-FI Mine Plan Metal Sales, 2020 – 2025e NOTE: Amounts are projections. Timing of annual sales will depend on a number of factors, including operational performance, continued progress of the ramp-up of underground mining at PT-FI, impacts and duration of the COVID-19 pandemic, timing of shipments, and other factors. FCX's economic interest in PT-FI approximates 81.27% through 2022 and 48.76% thereafter. See Cautionary Statement. e = estimate. 0.8 1.33 1.6 1.7 1.6 1.5 0.84 1.3 1.6 1.8 1.7 1.6 2020 2021e 2022e 2023e 2024e 2025e Transition Year Cu bn lbs Au mm ozs Total: 7.7 billion lbs copper Annual Average: 1.55 billion lbs 2021e – 2025e Copper Total: 8.0 million ozs gold Annual Average: 1.6 million ozs 2021e – 2025e Gold

Click to edit Master title style $0 $2 $4 $6 $8 2021 2022 2023 2024 2025 2026 Thereafter FCX Debt Maturi ies as of 6/30/21 (US$ bns) $6.9 5.00%, 4.125%, 4.375%, 5.25%, 4.25%, 4.625%, 5.40% & 5.45% Sr. Notes and FMC Sr. Notes $1.1 $1.0 3.875% Sr. Notes 3.55% Sr. Notes $0.7 4.55% Sr. Notes CV Non-recourse FCX Revolver $ - Senior Notes 9.1 Cerro Verde Term Loan 0.5 Other 0.1 Total Debt $ 9.7 Consolidated Cash and Cash Eq. $ 6.3 Undrawn Credit Facility 3.5 Total Liquidity $ 9.8 $ - at 6/30/21Total Debt & Cash $ -$ - 33

Click to edit Master title style 34 2Q21 Copper Realization & 3Q21e Guidance $4.40/lb 2Q21 LME Average Copper Price 3-Mo. Fwd Price for Copper at the End of June FCX 2Q21 Consolidated Copper Price Realization FCX 2Q21 Prior Period Open Lb Adj. (aka Provisional Price Adj.) $4.25/lb $4.34lb(1) (Generally, 50/50 weight of qtrly avg and 3-mo forward price at end of period) Revenue/EBITDA: $173 mm Net income: $66 mm Earnings/share: $0.05 (1) Note that when quarter end forward pricing is below the average quarterly spot price, FCX’s consolidated quarterly copper rea lization can be expected to be below the quarterly average spot pricing. Conversely, the quarterly copper realization would 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. e = estimate. See Cautionary Statement.  Open lbs priced at $4.25/lb on 6/30/21  Each $0.05 change in avg copper price in 3Q21 = $12 mm impact to 2021e net income  LME copper settled at $4.21/lb on 7/21/21 3Q21e Open Pound Guidance

Click to edit Master title style 35 Adjusted EBITDA Reconciliation (1) Other net charges primarily include $69 mm associated with non-recurring labor-related charges at Cerro Verde, net adjustments to environmental obligations and related litigation reserves ($20 mm for 2Q21 and $(17) mm for the 12 months ended 6/30/21) and asset impairments ($14 mm for 2Q21 and $39 mm for the 12 months ended 6/30/21). The 12 months ended 6/30/21 also include charges of $132 mm for a talc-related litigation accrual, $40 mm for costs directly associated with the pandemic and revised operating plans, including employee separation costs, and $37 mm associated with contested taxes and other matters at PT-FI. (2) Adjusted EBITDA is a non-GAAP financial measure that is frequently used by securities analysts, investors, lenders and others to evaluate companies’ performance, including, among other things, profitability before the effect of financing and similar decisions. Because securities analysts, investors, lenders and others use Adjusted EBITDA, management believes that our presentation of Adjusted EBITDA affords them greater transparency in assessing our financial performance. Adjusted EBITDA should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP. Adjusted EBITDA may not necessarily be comparable to similarly titled measures reported by other companies, as different companies calculate such measures differently. ($ in mm) 12 mos ended 2Q21 6/30/2021 Net income attributable to common stock $1,083 $2,838 Interest expense, net 148 649 Income tax provision 603 1,954 Depreciation, depletion and amortization 483 1,731 Metals inventory adjustments - 14 Net gain on sales of assets (3) (487) Accretion and stock-based compensation 35 197 Other net charges (1) 96 312 Loss on early extinguishment of debt - 60 Other income, net (9) (39) Net income attributable to noncontrolling interests 248 736 Equity in affiliated companies’ net earnings (6) (10) FCX Adjusted EBITDA (2) $2,678 $7,955

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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 22, 2021, titled “Freeport-McMoRan Reports Second-Quarter and Six-Month 2021 Results."

99.2			Slides presented in connection with FCX’s second-quarter 2021 earnings conference call conducted via the internet on July 22, 2021.

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