FREEPORT-MCMORAN INC
For the period ended Mar 31, 2025. Filed May 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
FCX$59.42+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0000831259-24-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0000831259-25-000018
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 266 previous paragraphs and 257 current paragraphs.
74 unchanged; 103 reworded; 76 added; 81 removed; 8 previous and 4 current paragraphs rearranged.
Tables are not compared: 31 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (76)
Current report
We remain focused on providing metals essential for the economy and everyday life, while being vigilant in our efforts to reduce costs, improve efficiencies and carefully manage operating, administrative and capital spending in this uncertain macroeconomic environment. We believe we are well positioned for the future with large-scale production of copper, gold and molybdenum, with a highly qualified and experienced team with a proven track record, a portfolio of attractive organic growth opportunities and a strong balance sheet and financial position.
Current report
We are monitoring developments on U.S. trade policy for potential impacts on our business, cost structure and supply chains, and efforts are under way to evaluate alternative sourcing options to mitigate potential impacts. We are also monitoring potential indirect impacts of U.S. trade policy on economic growth and the potential for impacts on demand for copper. While the near-term impacts are uncertain, we believe the fundamental drivers for increased future demand for copper continue to be favorable, supported by substantial requirements for energy infrastructure, electrification and new technologies.
Current report
Repairs to PT Freeport Indonesia’s (PTFI) new smelter in Eastern Java, Indonesia, following the October 2024 fire incident, are nearing completion. Startup activities are expected to re-commence in second-quarter 2025 with full ramp-up expected to be achieved by year-end 2025. In addition, PTFI continues to ramp-up production at its newly commissioned precious metals refinery (PMR) and the facility is expected to reach full capacity rates during 2025. Following the full ramp-up of the new smelter and PMR (collectively, PTFI’s new downstream processing facilities), PTFI’s mining and smelting operations will be fully integrated.
Current report
Net income attributable to common stockholders totaled $352 million in first-quarter 2025, compared with $473 million in first-quarter 2024. The decrease in first-quarter 2025 results, compared to first-quarter 2024, primarily reflects lower gold and copper sales volumes in Indonesia, partly offset by higher average realized prices for copper and gold. Refer to “Consolidated Results” for further discussion. For the remainder of 2025, we expect our quarterly consolidated sales volumes of copper and gold to increase from first-quarter 2025 levels, reflecting increased copper and gold volumes from Indonesia.
Current report
In first-quarter 2025, we acquired 1.4 million shares of our common stock for a total cost of $55 million ($39.10 average cost per share). As of April 30, 2025, we acquired a total of 51 million shares ($38.50 average cost per share) and have $3.0 billion available under our share repurchase program.
Current report
For the remainder of 2025, we expect our quarterly consolidated sales volumes of copper and gold to increase from first-quarter 2025 levels reflecting increased copper and gold volumes from Indonesia. Consolidated sales volumes in second-quarter 2025 are expected to approximate 1.0 billion pounds of copper, 500 thousand ounces of gold and 22 million pounds of molybdenum.
Current report
As further discussed in "Markets," copper sales from our U.S. copper mines are generally based on prevailing Commodity Exchange Inc (COMEX) settlement price, which as of April 30, 2025, was 9% higher than the London Metal Exchange (LME) copper settlement price. We estimate the impact on operating cash flows of each $0.10 per pound premium in the COMEX settlement price, compared to the LME settlement price, for the remainder of 2025 would approximate $95 million ($135 million on an annualized basis).
Current report
Copper sales from our South America and Indonesia operations are generally based on quoted LME monthly average copper settlement prices. During first-quarter 2025, LME copper settlement prices averaged $4.24 per pound (ranging from a low of $3.94 per pound to a high of $4.53 per pound) and was $4.39 per pound on March 31, 2025. The LME copper settlement price was $4.17 per pound on April 30, 2025.
Current report
Copper sales from our U.S. copper mines are generally based on prevailing COMEX monthly average copper settlement prices. During first-quarter 2025 COMEX copper settlement prices averaged $4.57 per pound (ranging from a low of $3.99 per pound to a record high of $5.22 per pound) and was $5.02 per pound on March 31, 2025. The COMEX copper settlement price was $4.56 per pound on April 30, 2025.
Current report
The recent spread between LME and COMEX copper prices, which widened during first-quarter 2025, is primarily driven by market expectations of a potential tariff on U.S. copper imports.
Current report
This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices from January 2015 through March 2025. During first-quarter 2025, the weekly average prices of molybdenum averaged $20.56 per pound (ranging from a low of $19.82 per pound to a high of $21.10 per pound) and was $20.01 per pound on
Current report
d. Includes net credits of $181 million associated with the settlement of historical PTFI tax matters, which were offset by charges of $109 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, $56 million of revisions to environmental obligation estimates and $31 million of inventory adjustments.
Current report
During first-quarter 2025, our average U.S. copper price realization, which is generally based on the COMEX settlement price, was approximately 6% higher than the average copper price realizations for our South America and Indonesia operations, which are based on the LME settlement price.
Current report
Export Duties and Royalties. Export duties, which totaled $55 million in first-quarter 2025 and $156 million in first-quarter 2024, are assessed on PTFI’s copper concentrate sales at a rate of 7.5%. Royalties are assessed on all PTFI copper and gold sales and vary with the sales volumes and metal prices.
Current report
Consolidated production and delivery costs totaled $3.8 billion in first-quarter 2025 and first-quarter 2024. First-quarter 2025 included charges totaling $73 million associated with maintenance turnaround costs at the Miami smelter, and first-quarter 2024 included charges totaling $109 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies.
Current report
Consolidated interest costs (before capitalization) totaled $174 million in first-quarter 2025 and $175 million in first-quarter 2024.
Current report
2024 Annual Report on Sustainability. In April 2025, we published our 2024 Annual Report on Sustainability, marking our 24th year of reporting on our progress. We are committed to building upon our achievements in sustainability and our position as a leading responsible copper producer.
Current report
Technology and Leaching Innovation Initiatives
Current report
We continue to apply operational enhancements on a larger scale and test new innovative technology applications. We are targeting an annual run rate of 300 million pounds of copper by the end of 2025 from these initiatives and believe we have the potential for further significant increases in recoverable metal beyond the current target run rate. Continued success with these initiatives would contribute to favorable adjustments in recoverable copper in leach stockpiles and positively impact average unit net cash costs.
Current report
In addition to technology-driven leaching initiatives, we are pursuing opportunities to leverage new technologies and analytic tools in automation and operating practices with a goal of improving operating efficiencies, and reducing costs and capital intensity of our current operations and future development projects. We believe these technology and leaching initiatives are particularly important to our U.S. operations, which have lower ore grades.
Current report
Proposed U.S. Tariffs and Section 232 Investigation on Copper
Current report
Proposed U.S. Tariffs. We are monitoring developments on U.S. trade policy for potential impacts on our business, cost structure and supply chains. Based on our current supply chains and discussions with our suppliers, we estimate that the proposed tariffs announced to date, which continue to be assessed, could have the potential to increase the costs of goods we purchase in the U.S. by approximately 5%, primarily reflecting the potential pass-through of tariffs incurred by suppliers. Efforts are under way to evaluate alternative sourcing options to mitigate potential impacts.
Current report
We are also monitoring potential indirect impacts of U.S. trade policy on economic growth and the potential for impacts on demand for copper. While any near-term impact is uncertain, we believe the fundamental drivers for increased future demand for copper continue to be favorable, supported by substantial requirements for energy infrastructure, electrification and new technologies.
Current report
We continue to drive initiatives to improve our U.S. cost structure through efficiency programs, cost reduction initiatives and our leach innovation projects.
Current report
Section 232 Investigation on Copper. On February 25, 2025, the President issued an executive order, noting copper as a critical material essential to national security, economic strength and industrial resilience of the U.S. The executive order instructed the U.S. Secretary of Commerce to conduct an investigation under Section 232 of the Trade Expansion Act to determine the effects of copper imports on U.S. national security.
Current report
The U.S. Secretary of Commerce is expected to submit a report to the President before the end of November 2025, including recommendations on potential tariffs, export controls or incentives to increase domestic production and policy recommendations to strengthen the U.S. copper supply chain, including permitting reforms.
Current report
We are the leading copper supplier in the U.S., providing approximately 70% of total U.S. refined copper production through our integrated domestic mining and processing facilities. We have several initiatives in progress to significantly expand our domestic production and support initiatives that would allow us to strengthen our U.S. copper production through potential permitting reforms and other incentives to domestic copper producers.
Current report
Copper imports are currently exempted from U.S. tariffs pending completion of the U.S. government’s Section 232 investigation. During first-quarter 2025, our U.S. average copper price realization from our U.S. mines, which is generally based on COMEX, was approximately 6% higher than our average copper price realizations for our South America and Indonesia operations, which are based on the LME.
Current report
United States
Current report
To support these future expansion plans, we are completing a project to convert Bagdad’s haul truck fleet to fully autonomous, enhancing local infrastructure and expanding tailings facilities. The decision on and timing of the potential expansion will take into account overall copper market conditions and other factors.
Current report
Operating Data. Following is summary consolidated operating data for our U.S. copper mines:
Current report
a. As discussed above, our average U.S. copper price realization, which is generally based on COMEX settlement prices, was approximately 6% higher in first-quarter 2025 than the average copper price realizations for our South America and Indonesia operations, which are based on LME settlement prices.
Current report
Our consolidated copper sales volumes from U.S. mines of 307 million pounds in first-quarter 2025 were lower than first-quarter 2024 copper sales volumes of 331 million pounds, primarily reflecting lower leach production and the timing of shipments in first-quarter 2024. Consolidated copper sales from our U.S. mines are estimated to approximate 1.3 billion pounds for the year 2025. Refer to “Outlook” for projected molybdenum sales volumes.
Current report
a. Reflects sales of molybdenum produced by certain of our U.S. copper mines to our molybdenum sales company at market-based pricing.
Current report
b. Includes charges totaling $0.05 per pound of copper in both first-quarter 2025 and 2024 for feasibility and optimization studies.
Current report
Excluding potential tariff impacts, which continue to be assessed, we expect our average unit net cash costs (net of by-product credits) for our U.S. copper mines to trend lower during the remainder of 2025, compared to 2024 levels, reflecting the projected impact of efficiencies, improved volumes and cost reduction plans currently in progress.
Current report
a. Includes charges totaling $0.05 per pound of copper in first-quarter 2025 and $0.04 per pound of copper in first-quarter 2024 for feasibility and optimization studies.
Current report
Concentrate Exports. On March 17, 2025, the Indonesia government granted PTFI a copper concentrate export license through September 16, 2025, for 1.4 million metric tons of copper concentrate, and PTFI re-commenced exports of copper concentrate. Pursuant to current regulations, PTFI is required to pay a 7.5% export duty on copper concentrate exports during 2025.
Current report
Export Proceeds. Effective March 1, 2025, the Indonesia government implemented a new regulation that requires 100% of export proceeds to be deposited in Indonesia banks for 12 months. The regulation allows the use of funds for ongoing business requirements, including dividends to shareholders, payment of taxes and other obligations to the Indonesia government, payment for materials or capital expenditures that are not available domestically and repayment of loans. Because PTFI has the ability to utilize its exports proceeds to fund business requirements, amounts deposited after March 1, 2025, are not considered restricted and are classified as cash and cash equivalents.
Current report
PTFI is also conducting exploration in the Grasberg mineral district targeting the potential extension of significant mineralization below the DMLZ mine.
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Removed paragraphs (81)
Previous report
We remain focused on execution of our operating plans, while continuing to prioritize productivity and cost control, and advancing initiatives for long-term organic growth. We continue to make progress on our leach innovation initiatives, with incremental copper production from these initiatives totaling 164 million pounds for the first nine months of 2024, compared with 97 million pounds for the first nine months of 2023. We believe positive market fundamentals justify a favorable long-term outlook for copper, supported by copper’s increasingly important role in the global economy and limited available supplies to meet growing demand.
Previous report
In September 2024, we purchased 5.3 million shares of Cerro Verde common stock for $210 million, increasing our ownership interest in Cerro Verde to 55.08% from 53.56%.
Previous report
On October 14, 2024, a fire occurred during commissioning of PT Freeport Indonesia’s (PT-FI) new smelter in Gresik, Indonesia, following an equipment malfunction in the smelter furnace. The fire resulted in damage to a gas cleaning facility (electrostatic precipitator plant) and infrastructure for the production of sulfuric acid. There were no injuries. While mining operations in Central Papua and the completion and ramp-up of the precious metals refinery (PMR) project have not been impacted, smelter start-up operations have been temporarily suspended pending remediation activities. PT-FI is working with the Indonesia government to allow continued exports of copper concentrates until full ramp-up of the new smelter and PMR (collectively, PT-FI’s new downstream processing facilities) is achieved, including seeking an increase to the permitted quota for 2024. Refer to “Operations – Indonesia” for additional discussion of the incident.
Previous report
Net income attributable to common stockholders totaled $526 million in third-quarter 2024 and $1.6 billion for the first nine months of 2024, compared with $454 million in third-quarter 2023 and $1.5 billion for the first nine months of 2023. The increases in the 2024 periods, compared to the 2023 periods, primarily reflect higher average realized copper and gold prices, higher gold sales volumes, and lower environmental obligations and shutdown costs, partly offset by higher operating costs, income tax expense and income attributable to noncontrolling interests. Additionally, the first nine months of 2023 included interest expense recognized for Cerro Verde’s settlement of interest on a historical profit sharing liability and contested tax rulings issued by the Peruvian Supreme Court (refer to Note 4). Refer to “Consolidated Results” for further discussion.
Previous report
Consolidated sales volumes in fourth-quarter 2024 are expected to approximate 980 million pounds of copper, 340 thousand ounces of gold and 20 million pounds of molybdenum. Consolidated copper and gold production volumes for the year 2024 are expected to exceed 2024 sales volumes, reflecting the deferral of approximately 85 million pounds of copper and 85 thousand ounces of gold associated with inventories held at PT-FI’s new downstream processing facilities that will be sold as refined metal in 2025.
Previous report
d. Includes net charges totaling $30 million in third-quarter 2024 and $81 million for the first nine months of 2024, primarily associated with impairments for legacy oil and gas matters and nonrecurring labor-related charges at Cerro Verde, partly offset by a reduction in accruals for uncertain U.S. tax positions. The first nine months of 2024 also include charges associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies, revisions to environmental obligation estimates and related litigation reserves, and inventory adjustments/write-offs, partly offset by international tax credits.
Previous report
e. Includes net charges totaling $117 million in third-quarter 2023 and $368 million for the first nine months of 2023, primarily associated with revisions to environmental obligation estimates and related litigation reserves, and impairments for legacy oil and gas operations. Net charges for the first nine months of 2023 also included charges for contested tax rulings issued by the Peruvian Supreme Court and an accrual for a potential administrative fine in Indonesia.
Previous report
b. Includes $0.03 per pound of copper for both the third quarter and first nine months of 2024 for nonrecurring labor-related charges at Cerro Verde associated with new collective labor agreements. Refer to “Operations – South America” for further discussion.
Previous report
Higher consolidated copper and gold sales volumes for the first nine months of 2024, compared to the 2023 period, primarily reflect higher mining and milling rates and copper ore grades at PT-FI, partly offset by lower operating rates in North America and South America.
Previous report
Royalties and Export Duties. Royalties and export duties are primarily associated with PT-FI sales. Royalties will vary with the volume of metal sold and the prices of copper and gold. Export duties of 2.5% were eliminated effective March 29, 2023, upon verification that construction progress of the new smelter exceeded 50% and were reinstated at a rate of 7.5% in July 2023 under a revised regulation. As discussed in Note 7, PT-FI is continuing to pay export duties of 7.5% on copper concentrates. PT-FI incurred export duties totaling $129 million in third-quarter 2024, $147 million in third-quarter 2023, $360 million for the first nine months of 2024 and $165 million for the first nine months of 2023.
Previous report
Consolidated production and delivery costs totaled $4.1 billion in third-quarter 2024, $3.6 billion in third-quarter 2023, $11.8 billion for the first nine months of 2024 and $10.3 billion for the first nine months of 2023. The 2024 periods include nonrecurring labor-related charges at Cerro Verde associated with new collective labor agreements (CLA) totaling $34 million in third-quarter 2024 and $99 million for the first nine months of 2024. Additionally, the first nine months of 2024 included charges totaling $99 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies (refer to Note 7 for further discussion).
Previous report
Consolidated interest costs (before capitalization) totaled $173 million in third-quarter 2024, $165 million in third-quarter 2023, $529 million for the first nine months of 2024 and $606 million for the first nine months of 2023. Consolidated interest costs (before capitalization) include a credit of $11 million in the 2024 periods associated with the closure of our 2017 and 2018 U.S. federal income tax exams and a credit of $13 million in the 2023 periods for the settlement of interest on Cerro Verde’s historical profit sharing liability. Additionally, the first nine months of 2023 included $74 million of interest charges associated with contested tax rulings issued by the Peruvian Supreme Court.
Previous report
c. Includes net credits associated with the closure of our 2017 and 2018 U.S federal income tax exams. Refer to Note 3 for further discussion.
Previous report
d. Includes a valuation allowance release on prior year unbenefited net operating losses.
Previous report
e. Reflects net charges associated with contested tax rulings issued by the Peruvian Supreme Court.
Previous report
Leaching Innovation Initiatives
Previous report
North America
Previous report
Operating Data. Following is summary consolidated operating data for the North America copper mines:
Previous report
Our consolidated copper sales volumes from North America totaled 316 million pounds in third-quarter 2024, 372 million pounds in third-quarter 2023, 0.9 billion pounds for the first nine months of 2024 and 1.0 billion pounds for the first nine months of 2023. Lower copper sales in the 2024 periods, compared to the 2023 periods, primarily reflect lower operating rates and ore grades. Higher third-quarter 2023 sales volumes also reflect the impact of timing of shipments.
Previous report
North America copper sales are estimated to approximate 1.24 billion pounds for the year 2024. Refer to “Outlook” for projected molybdenum sales volumes.
Previous report
b. Includes charges totaling $0.06 per pound of copper in third-quarter 2024, $0.05 per pound of copper for the first nine months of 2024, and $0.08 per pound of copper for both the third quarter and first nine months of 2023, for feasibility and optimization studies.
Previous report
In September 2024, we purchased 5.3 million shares of Cerro Verde common stock for $210 million, increasing our ownership interest in Cerro Verde to 55.08% from 53.56%.
Previous report
Labor Matters. In October 2024, Cerro Verde completed a new four-year CLA with one of its two unions. The agreement follows the successful completion of a new CLA with a second union in April 2024. Cerro Verde now has multi-year agreements for its hourly workforce. In connection with the new CLAs, Cerro Verde incurred nonrecurring charges of $34 million in third-quarter 2024 and $99 million for the first nine months of 2024.
Previous report
a. Includes $0.12 per pound of copper in third-quarter 2024 and $0.11 per pound of copper for the first nine months of 2024 for nonrecurring labor-related charges at Cerro Verde associated with new CLAs.
Previous report
b. Includes charges totaling $0.06 per pound of copper in third-quarter 2024, $0.05 per pound of copper for the first nine months of 2024, and $0.03 per pound of copper in both the third quarter and first nine months of 2023 for feasibility and optimization studies.
Previous report
Labor Matters. In April 2024, PT-FI reached a new two-year CLA with its three employee unions at its Grasberg minerals district operations. PT-FI did not recognize any significant nonrecurring costs associated with the new CLA.
Previous report
Regulatory Matters and Mining Rights. On July 2, 2024, PT-FI was granted copper concentrate and anode slimes export licenses, which are valid through December 2024. Pursuant to the Indonesia regulations, PT-FI is continuing to pay a 7.5% export duty on copper concentrates. See below for further discussion of the recent fire event at PT-FI's new smelter facility.
Previous report
Downstream Processing Facilities. On October 14, 2024, a fire occurred during commissioning of PT-FI’s new smelter in Gresik, Indonesia, following an equipment malfunction in the smelter furnace. The fire resulted in damage to a gas cleaning facility (electrostatic precipitator plant) and infrastructure for the production of sulfuric acid. There were no injuries. Smelter start-up operations have been temporarily suspended pending remediation activities. Mining operations in Central Papua and the completion and ramp-up of the PMR project have not been impacted.
Previous report
PT-FI has substantially completed initial damage assessments and currently estimates repair costs to approximate $100 million, which are expected to be offset through recovery under construction insurance programs.
Previous report
Remediation plans are in progress, including the procurement of long-lead items. Based on current delivery timelines, which continue to be evaluated, PT-FI currently expects to recommence start-up operations by mid-2025. Efforts are under way to expedite equipment orders to potentially improve the schedule.
Previous report
PT-FI is working with the Indonesia government to allow continued exports of copper concentrates until full ramp-up of PT-FI’s new downstream processing facilities is achieved, including seeking an increase to the permitted quota for 2024.
Previous report
In December 2023, PT Smelting completed an expansion of its capacity by 30% to 1.3 million metric tons of copper concentrate per year. The project was funded by PT-FI with borrowings totaling $254 million that converted to equity effective June 30, 2024, increasing PT-FI’s ownership in PT Smelting to 66% from 39.5%. As discussed in Note 1, PT-FI continues to account for its investment in PT Smelting under the equity method.
Previous report
PT-FI’s consolidated copper sales volumes totaled 426 million pounds in third-quarter 2024, 430 million pounds in third-quarter 2023, 1.3 billion pounds for the first nine months of 2024 and 1.0 billion pounds for the first nine months of 2023. Higher sales volumes for the first nine months of 2024, compared to the 2023 period, primarily reflected higher ore grades and higher mining and milling rates.
Previous report
PT-FI’s consolidated gold sales volumes of 554 thousand ounces in third-quarter 2024 were higher than third-quarter 2023 gold sales volumes of 395 thousand ounces, primarily reflecting timing of shipments, partly offset by lower production from lower ore grades. PT-FI’s consolidated gold sales volumes of 1.5 million ounces for the first nine months of 2024 were higher than 1.2 million ounces for the first nine months of 2023, primarily reflecting higher mining and milling rates and timing of shipments.
Previous report
Consolidated sales volumes from PT-FI are expected to approximate 1.65 billion pounds of copper and 1.8 million ounces of gold for the year 2024. Consolidated copper and gold production volumes from PT-FI for the year 2024 are expected to exceed 2024 sales volumes, reflecting the deferral of approximately 85 million pounds of copper and 85 thousand ounces of gold associated with inventories held at PT-FI’s new downstream processing facilities expected to be sold as refined metal in 2025. Projected sales volumes are dependent on operational performance; continuation of copper concentrate exports during the restoration period of PT-FI’s new smelter; weather-related conditions; and other factors detailed in the “Cautionary Statement” below.
Previous report
Unit Net Cash (Credits) Costs. We believe unit net cash (credits) costs per pound of copper is a measure that provides investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.
Previous report
a. Export duties of 2.5% were eliminated effective March 29, 2023, upon verification that construction progress of the new smelter exceeded 50% and were reinstated at a rate of 7.5% in July 2023 under a revised regulation. As discussed above and in Note 7, PT-FI is continuing to pay export duties of 7.5% on copper concentrates.
Previous report
b. Includes (i) charges totaling $0.09 per pound of copper in third-quarter 2024 and $0.06 per pound of copper for the first nine months of 2024 for operational readiness and start-up costs associated with PT-FI’s new downstream processing facilities and (ii) $0.01 per pound of copper in third-quarter 2024 and 2023 and $0.02 per pound of copper for the first nine months of 2024 and 2023 for feasibility and optimization studies.
Previous report
c. Includes charges totaling $0.03 per pound of copper for the first nine months of 2024 for amounts capitalized in prior years associated with construction of PT-FI’s new downstream processing facilities.
Previous report
d. Includes a charge totaling $0.05 per pound of copper for the first nine months of 2023 associated with a potential administrative fine.
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Reworded paragraphs (103)
Previous wording
We are a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, we operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.
Current wording
We are a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, we operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the U.S. and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.
Previous wording
We are continuing to advance a series of initiatives across our North America and South America operations to incorporate new applications, technologies and data analytics to our leaching processes. In late 2023, we achieved our initial incremental annual run rate target of approximately 200 million pounds of copper. Incremental copper production from these initiatives totaled 58 million pounds in third-quarter 2024 (compared with 46 million pounds in third-quarter 2023) and 164 million pounds for the first nine months of 2024 (compared with 97 million pounds for the first nine months of 2023). We are pursuing opportunities to apply recent operational enhancements on a larger scale and we are testing new innovative technology applications that we believe have the potential for significant increases in recoverable metal beyond the current run rate.
Current wording
We are accelerating initiatives across our U.S. and South America operations by incorporating new applications, technologies and data analytics to our leaching processes. We continue to apply operational enhancements on a larger scale and test new innovative technology applications. We are targeting an annual run rate of 300 million pounds of copper by the end of 2025 from these initiatives and believe we have the potential for further significant increases in recoverable metal beyond the current target run rate. In addition to technology-driven leaching initiatives, we are pursuing opportunities to leverage new technologies and analytics tools in automation and operating practices with a goal of improving operating efficiencies, and reducing costs and capital intensity of our current operations and future development projects.
Previous wording
At September 30, 2024, we had consolidated debt of $9.7 billion and consolidated cash and cash equivalents of $5.0 billion, $6.0 billion including $1.0 billion of current restricted cash associated with a portion of PT-FI's export proceeds required to be temporarily deposited in Indonesia banks. Net debt totaled $0.5 billion, excluding $3.2 billion of debt for PT-FI’s new downstream processing facilities. Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PT-FI's export proceeds to net debt.
Current wording
At March 31, 2025, we had consolidated debt of $9.4 billion and consolidated cash and cash equivalents of $4.4 billion, $4.6 billion including $0.3 billion of current restricted cash associated with a portion of PTFI’s export proceeds that was required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation. Net debt totaled $1.5 billion, excluding $3.2 billion of debt for PTFI’s new downstream processing facilities. Refer to “Net Debt” for a reconciliation of consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PTFI's export proceeds to net debt.
Previous wording
At September 30, 2024, we had $3.0 billion of availability under our revolving credit facility, and PT-FI and Cerro Verde had $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.
Current wording
At March 31, 2025, we had $3.0 billion of availability under our revolving credit facility, and PTFI and Cerro Verde had $1.5 billion and $350 million, respectively, of availability under their revolving credit facilities.
Previous wording
Refer to Note 4 and “Capital Resources and Liquidity” for further discussion of our debt balances and transactions.
Current wording
Refer to Note 4 and “Capital Resources and Liquidity” for further discussion of our debt and share repurchases.
Previous wording
As further discussed in “Risk Factors” in Part I, Item 1A. of our 2023 Form 10-K, our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets” below for further discussion. Because we cannot control the prices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures.
Current wording
Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets” below and “Risk Factors” in Part I, Item 1A. of our 2024 Form 10-K for further discussion. Because we cannot control the prices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures. The forward-looking statements in the below section and elsewhere in this quarterly report on Form 10-Q are based on current market conditions, are as of the filing date of this quarterly report on Form 10-Q, are based on several assumptions and are subject to significant risks and uncertainties. Refer to “Cautionary Statement” below.
Previous wording
a. Includes 50 million pounds produced by our North America copper mines and South America operations and 30 million pounds produced by our Molybdenum mines.
Current wording
a. Includes 53 million pounds produced by our U.S. copper mines and South America operations and 35 million pounds produced by our Molybdenum mines.
Previous wording
Projected sales volumes are dependent on operational performance; continuation of copper concentrate exports during the restoration period of PT-FI’s new smelter; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below. For other important factors that could cause results to differ materially from projections, refer to “Risk Factors” contained in Part I, Item 1A. of our 2023 Form 10-K.
Current wording
Projected sales volumes are dependent on operational performance; the ramp-up of PTFI’s new downstream processing facilities; weather-related conditions; timing of shipments and other factors detailed in the “Cautionary Statement” below. For other important factors that could cause results to differ materially from projections, refer to “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K.
Previous wording
Consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average $1.58 per pound of copper for the year 2024 (including $1.72 per pound of copper in fourth-quarter 2024), based on achievement of current sales volume and cost estimates, and assuming average prices of $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024. Quarterly unit net cash costs vary with fluctuations in sales volumes, including the ratio of copper and gold sales within a period, and realized prices, primarily for gold and molybdenum. The impact of price changes during fourth-quarter 2024 on consolidated unit net cash costs for the year 2024 would approximate $0.01 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.
Current wording
For the remainder of 2025, we expect our consolidated average unit net cash costs to decline from first-quarter 2025 levels reflecting increased copper and gold volumes from Indonesia. Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”), consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average $1.50 per pound of copper for both the year 2025 and second-quarter 2025, based on achievement of current sales volume and cost estimates, and assuming average prices of $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025. Quarterly unit net cash costs vary with fluctuations in sales volumes, including the ratio of copper and gold sales within a period, and realized prices, primarily for gold and molybdenum. The impact of price changes on consolidated unit net cash costs for the remainder of 2025 would approximate $0.04 per pound of copper for each $100 per ounce change in the average price of gold and $0.02 per pound of copper for each $2 per pound change in the average price of molybdenum.
Previous wording
Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. Our consolidated operating cash flows are estimated to approximate $6.8 billion for the year 2024, net of $0.4 billion of working capital and other uses, based on current sales volume and cost estimates, and assuming average prices of $4.25 per pound of copper, $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024. Estimated consolidated operating cash flows for the year 2024 also reflect an estimated income tax provision of $2.7 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2024). The impact of price changes in fourth-quarter 2024 on consolidated operating cash flows would approximate $90 million for each $0.10 per pound change in the average price of copper, $30 million for each $100 per ounce change in the average price of gold and $15 million for each $2 per pound change in the average price of molybdenum.
Current wording
Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. Excluding potential tariff impacts, which continue to be assessed (refer to “Operations”), consolidated operating cash flows are estimated to approximate $7.0 billion for the year 2025, including $0.2 billion of working capital and other sources, based on current sales volume and cost estimates, and assuming prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025. Estimated consolidated operating cash flows for the year 2025 also reflect a projected income tax provision of $2.8 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2025). The impact of price changes on consolidated operating cash flows for the remainder of 2025 would approximate $300 million for each $0.10 per pound change in the average price of copper, $140 million for each $100 per ounce change in the average price of gold and $100 million for each $2 per pound change in the average price of molybdenum.
Previous wording
a. Primarily includes underground mine development, supporting mill and power capital costs and initial spending on a new gas-fired combined cycle facility in the Grasberg minerals district, and expansion projects in North America.
Current wording
a. Includes $1.1 billion for planned projects, primarily associated with underground mine development, supporting mill and power capital costs and a portion of spending on a new gas-fired combined cycle facility in the Grasberg minerals district, and expansion projects in the U.S., and $1.7 billion for discretionary growth projects, primarily in the Grasberg minerals district for the continued development of Kucing Liar and at the Bagdad mine for tailings infrastructure.
Previous wording
b. Excludes capitalized interest and $0.3 billion of estimated commissioning and owner’s costs. Capital expenditures for PT-FI’s new downstream processing facilities are expected to be funded with PT-FI’s cash flows from operations and availability under PT-FI’s revolving credit facility.
Current wording
b. Excludes capitalized interest, owner’s costs and commissioning. Capital expenditures for PTFI’s new downstream processing facilities are expected to be funded with PTFI’s cash flows from operations and availability under PTFI’s revolving credit facility.
Previous wording
We closely monitor market conditions and will adjust our operating plans, including capital expenditures, to protect our liquidity and preserve our asset values, as necessary.
Current wording
We closely monitor market conditions and will adjust our operating plans, including capital expenditures, as necessary.
Previous wording
Prices for copper, gold and molybdenum are affected by numerous factors beyond our control and can fluctuate significantly (for further discussion refer to “Risk Factors” contained in Part I, Item 1A. of our 2023 Form 10-K). The following graphs present the London Metal Exchange (LME) copper settlement price, the London Bullion Market Association (London) PM gold price, and the Platts Metals Daily Molybdenum Dealer Oxide weekly average price since January 2014.
Current wording
Prices for copper, gold and molybdenum are affected by numerous factors beyond our control and can fluctuate significantly (for further discussion refer to “Risk Factors” contained in Part I, Item 1A. of our 2024 Form 10-K). The following graphs present the LME and COMEX copper settlement prices, the London Bullion Market Association (London) PM gold prices, and the Platts Metals Daily Molybdenum Dealer Oxide weekly average prices since January 2015.
Previous wording
This graph presents LME copper settlement prices and the combined reported stocks of copper at the LME, Commodity Exchange Inc., and the Shanghai Futures Exchange from January 2014 through September 2024. During third-quarter 2024, LME copper settlement prices ranged from a low of $3.91 per pound to a high of $4.47 per pound, averaged $4.18 per pound and settled at $4.43 per pound on September 30, 2024. Strong copper prices during third-quarter 2024 primarily resulted from investor sentiment and ongoing demand in China. The LME copper settlement price was $4.28 per pound on October 31, 2024.
Current wording
This graph presents LME and COMEX copper settlement prices and the combined reported stocks of copper at the LME, COMEX, and the Shanghai Futures Exchange from January 2015 through March 2025.
Previous wording
We believe fundamentals for copper are favorable with limited available supplies and growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries and growing connectivity globally.
Current wording
We believe fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence developments and growing connectivity globally.
Previous wording
This graph presents London PM gold prices from January 2014 through September 2024. During third-quarter 2024, London PM gold prices ranged from a low of $2,329 per ounce to a record high of $2,664 per ounce, averaged $2,474 per ounce and closed at $2,630 per ounce on September 30, 2024. Economic uncertainty, geopolitical tensions and strong demand from central banks around the world during third-quarter 2024 continued to push gold prices to another quarterly record high. The London PM gold price was $2,734 per ounce on October 31, 2024.
Current wording
This graph presents London PM gold prices from January 2015 through March 2025. During first-quarter 2025, London PM gold prices averaged $2,860 per ounce (ranging from a low of $2,633 per ounce to a high of $3,115 per ounce) and was $3,115 per ounce on March 31, 2025. Economic uncertainty, geopolitical tensions and strong demand from central banks around the world continue to drive gold prices to record highs. The London PM gold price was $3,302 per ounce on April 30, 2025.
Previous wording
This graph presents the Platts Metals Daily Molybdenum Dealer Oxide weekly average price from January 2014 through September 2024. During third-quarter 2024, the weekly average price of molybdenum ranged from a low of $20.83 per pound to a high of $23.06 per pound, averaged $21.77 per pound and was $21.59 per pound on September 30, 2024. Overall global demand for molybdenum is driven by energy, power generation, aerospace, defense and construction sectors. We believe fundamentals for molybdenum are positive with favorable demand drivers and limited supply. The Platts Metals Daily Molybdenum Dealer Oxide weekly average price was $21.89 per pound on October 31, 2024.
Current wording
March 31, 2025. Overall global demand for molybdenum is driven by energy, power generation, aerospace, defense and construction sectors. We believe fundamentals for molybdenum are positive with favorable demand drivers and limited supply. The Platts Metals Daily Molybdenum Dealer Oxide weekly average price was $19.71 per pound on April 30, 2025.
Previous wording
b. Includes (unfavorable) favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(32) million ($(13) million to net income attributable to common stock) in third-quarter 2024, $4 million ($2 million to net income attributable to common stock) in third-quarter 2023, $28 million ($9 million to net income attributable to common stock) for the first nine months of 2024 and $183 million ($62 million to net income attributable to common stock) for the first nine months of 2023. Refer to Note 5 for further discussion.
Current wording
b. Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $70 million ($24 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025 and $(7) million ($(2) million to net income attributable to common stock or less than $0.01 per share) in first-quarter 2024. Refer to Note 5 for further discussion.
Previous wording
c. We defer recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions) additions to operating income totaling $(42) million ($(13) million to net income attributable to common stock) in third-quarter 2024, $81 million ($37 million to net income attributable to common stock) in third-quarter 2023, $79 million ($23 million to net income attributable to common stock) for the first nine months of 2024 and $153 million ($64 million to net income attributable to common stock) for the first nine months of 2023. Refer to “Operations – Smelting and Refining.”
Current wording
c. We defer recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to operating income totaling $114 million ($34 million to net income attributable to common stock or $0.02 per share) in first-quarter 2025 and $(17) million ($(5) million to net income attributable to common stock or less than $0.01 per share) in first-quarter 2024. Refer to “Operations – Smelting and Refining.”
Previous wording
f. Working capital and other uses totaled $5 million in third-quarter 2024, $482 million in third-quarter 2023, $29 million for the first nine months of 2024 and $684 million for the first nine months of 2023.
Current wording
e. Working capital and other uses totaled $297 million in first-quarter 2025 and $97 million in first-quarter 2024.
Previous wording
g. Includes $1.0 billion at September 30, 2024, and $0.5 billion at September 30, 2023, associated with a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with Indonesia regulations.
Current wording
f. Includes $0.3 billion at March 31, 2025 (expected to be released by mid-2025), and $0.9 billion at March 31, 2024, associated with a portion of PTFI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a previous Indonesia regulation.
Previous wording
Consolidated revenues totaled $6.8 billion in third-quarter 2024, $5.8 billion in third-quarter 2023, $19.7 billion for the first nine months of 2024 and $17.0 billion for the first nine months of 2023. Revenues from our mining operations and processing facilities primarily include the sale of copper cathode, copper in concentrate, copper rod, gold in concentrate and anode slimes, and molybdenum. Refer to Note 8 for a summary of product revenues.
Current wording
Consolidated revenues totaled $5.7 billion in first-quarter 2025 and $6.3 billion in first-quarter 2024. Revenues from our mining operations and processing facilities primarily include the sale of copper cathode, copper in concentrate, copper rod, gold in concentrate and anode slimes, and molybdenum. Refer to Note 8 for a summary of product revenues.
Previous wording
Sales Volumes. Consolidated copper sales volumes decreased in third-quarter 2024, compared to third-quarter 2023, primarily as a result of the timing of shipments and lower ore grades and operating rates in North America. Consolidated gold sales volumes increased in third-quarter 2024, compared to third-quarter 2023, primarily reflecting the timing of shipments in Indonesia.
Current wording
Sales Volumes. Consolidated copper and gold sales volumes decreased in first-quarter 2025, compared to first-quarter 2024, primarily reflecting a planned major maintenance project in Indonesia. Lower gold sales volumes in first-quarter 2025, compared to first-quarter 2024, were also impacted by lower ore grades and the timing of shipments.
Previous wording
Realized Prices. Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum. Average realized prices in third-quarter 2024, compared with third-quarter 2023, were 13% higher for copper, 35% higher for gold and 4% lower for molybdenum. Average realized prices for the first nine months of 2024, compared with the first nine months of 2023, were 10% higher for copper, 22% higher for gold and 17% lower for molybdenum.
Current wording
Realized Prices. Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum. Our average realized prices in first-quarter 2025, compared with first-quarter 2024, were 13% higher for copper, 43% higher for gold and 6% higher for molybdenum.
Previous wording
Average realized copper prices include net favorable (unfavorable) adjustments to current period provisionally priced copper sales totaling $61 million in third-quarter 2024, $(34) million in third-quarter 2023, $248 million for the first nine months of 2024 and $(152) million for the first nine months of 2023. Average realized gold prices include net favorable (unfavorable) adjustments to current period provisionally priced gold sales totaling $74 million in third-quarter 2024, $(13) million in third-quarter 2023, $155 million for the first nine months of 2024 and $(8) million for the first nine months of 2023. As discussed in Note 5, certain sales contracts for copper and gold provide final pricing in a specified future month (generally one to four months from the shipment date). We record revenues and invoice customers at the time of shipment based on then-current LME or London PM prices, which results in an embedded derivative on provisionally priced sales that are adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper and gold prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper and gold prices, the opposite occurs.
Current wording
Average realized copper prices include net favorable adjustments to current period provisionally priced copper sales totaling $46 million in first-quarter 2025 and $73 million in first-quarter 2024. As discussed in Note 5, certain sales contracts for copper and gold provide final pricing in a specified future month (generally one to four months from the shipment date). We record revenues and invoice customers at the time of shipment based on then-current LME prices for copper or London PM prices for gold, which results in an embedded derivative on provisionally priced sales that are adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper and gold prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper and gold prices, the opposite occurs.
Previous wording
Prior Period Provisionally Priced Copper Sales. Net (unfavorable) favorable adjustments to prior periods’ provisionally priced copper sales (i.e., provisionally priced sales at June 30, 2024 and 2023, and December 31, 2023 and 2022) recorded in consolidated revenues totaled $(32) million in third-quarter 2024, $4 million in third-quarter 2023, $28 million for the first nine months of 2024 and $183 million for the first nine months of 2023. Refer to Notes 5 and 8 for a summary of total adjustments to prior period and current period provisionally priced sales.
Current wording
Prior Period Provisionally Priced Copper Sales. Net favorable (unfavorable) adjustments to prior periods’ provisionally priced copper sales (i.e., provisionally priced sales at December 31, 2024 and 2023) recorded in consolidated revenues totaled $70 million in first-quarter 2025 and $(7) million in first-quarter 2024. Refer to Notes 5 and 8 for a summary of total adjustments to prior period and current period provisionally priced sales.
Previous wording
At September 30, 2024, we had provisionally priced copper sales totaling 162 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $4.43 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the September 30, 2024, recorded provisional price would have an approximate $15 million effect on 2024 revenues ($5 million to 2024 net income attributable to common stock). The LME copper price settled at $4.28 per pound on October 31, 2024.
Current wording
At March 31, 2025, we had provisionally priced copper sales totaling 204 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average price of $4.40 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the March 31, 2025, recorded provisional price would have an approximate $18 million effect on 2025 revenues ($7 million to 2025 net income attributable to common stock). The LME copper price settled at $4.17 per pound on April 30, 2025.
Previous wording
Atlantic Copper Revenues. Atlantic Copper revenues totaled $765 million in third-quarter 2024 and $2.3 billion for the first nine months of 2024, compared with $700 million in third-quarter 2023 and $2.2 billion for the first nine months of 2023. Higher revenues in the 2024 periods, compared with the 2023 periods, primarily reflect higher copper prices and sales volumes.
Current wording
Atlantic Copper Revenues. Atlantic Copper revenues totaled $755 million in first-quarter 2025 and $673 million in first-quarter 2024. Higher revenues in the first-quarter 2025, compared with first-quarter 2024, primarily reflect higher copper prices.
Previous wording
Purchased Copper. We purchase copper cathode primarily for processing by our Rod & Refining operations. The volumes of copper purchases vary depending on cathode production from our operations and totaled 36 million pounds in third-quarter 2024, 18 million pounds in third-quarter 2023, 142 million pounds for the first nine months of 2024 and 85 million pounds for the first nine months of 2023.
Current wording
Purchased Copper. We purchase copper cathode primarily for processing by our Rod & Refining operations. The volumes of copper purchases vary depending on cathode production from our operations and totaled 66 million pounds in first-quarter 2025 and 42 million pounds in first-quarter 2024.
Previous wording
Treatment Charges. Revenues from our copper concentrate sales are recorded net of treatment charges (i.e., fees paid to smelters that are generally negotiated annually), which will vary with the sales volumes and the price of copper. The decrease in treatment charges in the 2024 periods, compared to the 2023 periods, primarily reflects lower copper concentrate sales volumes in South America.
Current wording
Treatment Charges. Revenues from our copper concentrate sales are recorded net of treatment charges (i.e., fees paid to smelters that are generally negotiated annually), which will vary with the sales volumes and the price of copper. The decrease in treatment charges in first-quarter 2025, compared to first-quarter 2024, primarily reflects lower treatment charge rates and copper concentrate sales volumes in Indonesia and South America.
Previous wording
Site Production and Delivery Costs Per Pound. Site production and delivery costs for our copper mining operations primarily include labor, energy and other commodity-based inputs, such as sulfuric acid, explosives, steel, reagents, liners and tires. Consolidated site production and delivery costs (before net noncash and other costs) for our copper mines averaged $2.61 per pound of copper in third-quarter 2024, $2.27 per pound of copper in third-quarter 2023, $2.49 per pound of copper for the first nine months of 2024 and $2.40 per pound of copper for the first nine months of 2023. Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash (Credits) Costs” for further discussion of unit net cash costs (credits) associated with our operating divisions and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.
Current wording
Site Production and Delivery Costs Per Pound. Site production and delivery costs for our copper mining operations primarily include labor, energy and other commodity-based inputs, such as sulfuric acid, steel, reagents, liners, tires and explosives. Consolidated site production and delivery costs (before net noncash and other costs) for our copper mines averaged $2.59 per pound of copper in first-quarter 2025 and $2.32 per pound of copper in first-quarter 2024. Refer to “Operations – Unit Net Cash Costs” and “Operations – Unit Net Cash Costs (Credits)” for further discussion of unit net cash costs (credits) associated with our operating divisions and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.
Previous wording
Depreciation will vary under the unit-of-production (UOP) method as a result of changes in sales volumes and the related UOP rates at our mining operations. Consolidated depreciation, depletion and amortization (DD&A) totaled $600 million in third-quarter 2024, $533 million in third-quarter 2023, $1.7 billion for the first nine months of 2024 and $1.5 billion for the first nine months of 2023. We currently expect that DD&A will approximate $2.3 billion for the year 2024. Following completion of commissioning activities for PT-FI’s new downstream processing facilities, DD&A will include amounts associated with capitalized costs for the project.
Current wording
Depreciation will vary under the unit-of-production (UOP) method as a result of changes in sales volumes and the related UOP rates at our mining operations. Consolidated depreciation, depletion and amortization (DD&A) totaling $466 million in first-quarter 2025 was lower than DD&A totaling $595 million in first-quarter 2024, primarily as a result of lower copper sales volumes. We currently expect that DD&A will approximate $2.6 billion for the year 2025, which will include amounts associated with capitalized costs for PTFI's new downstream processing facilities.
Previous wording
Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates.
Current wording
Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates. Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations. Net adjustments resulting from revisions to long-term historical environmental obligations totaled $(7) million in first-quarter 2025 and $56 million in first-quarter 2024.
Previous wording
Capitalized interest varies with the level of qualifying assets associated with our development projects and average interest rates on our borrowings. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $101 million in third-quarter 2024, $69 million in third-quarter 2023, $280 million for the first nine months of 2024 and $188 million for the first nine months of 2023. The increase in capitalized interest costs in the 2024 periods, compared to the 2023 periods, resulted from increased construction and development projects in process, primarily related to PT-FI’s new downstream processing facilities. Refer to “Capital Resources and Liquidity – Investing Activities” for discussion of capital expenditures associated with our major development projects.
Current wording
Capitalized interest totaled $104 million in first-quarter 2025 and $86 million in first-quarter 2024. The increase in capitalized interest costs in first-quarter 2025, compared to first-quarter 2024, primarily related to mine development projects in the U.S. and PTFI’s new downstream processing facilities. Refer to “Capital Resources and Liquidity – Investing Activities” for discussion of capital expenditures associated with our major development projects.
Previous wording
Other income, net, which totaled $97 million in third-quarter 2024, $71 million in third-quarter 2023, $295 million for the first nine months of 2024 and $183 million for the first nine months of 2023, primarily includes amounts associated with interest income, currency exchange gains and losses, and market-to-market impacts of trust assets used to satisfy financial assurance obligations for our New Mexico mining operations. The first nine months of 2024 include a credit of $26 million associated with the reduction in the accrual to indemnify PT Mineral Industri Indonesia (MIND ID) from potential losses arising from historical tax disputes (refer to Note 3), and the first nine months of 2023 include a $69 million charge associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court.
Current wording
Other income, net, which totaled $58 million in first-quarter 2025 and $129 million in first-quarter 2024, primarily includes amounts associated with interest income, currency exchange gains and losses, and mark-to-market impacts of trust assets used to satisfy financial assurance obligations for our New Mexico mining operations. Lower other income, net, in first-quarter 2025, compared to first-quarter 2024, primarily reflects lower interest income. First-quarter 2024 also included a credit of $26 million associated with the reduction in the accrual to indemnify PT Mineral Industri Indonesia (MIND ID) from potential losses arising from PTFI’s historical tax disputes.
Previous wording
a. Represents income (loss) before income taxes, equity in affiliated companies' net earnings, and noncontrolling interests.
Current wording
a. Represents income before income taxes, equity in affiliated companies' net earnings and noncontrolling interests.
Previous wording
b. In addition to our North America copper mines, which had operating income of $587 million for the first nine months of 2024 and $925 million for the first nine months of 2023 (refer to Note 8), the U.S. jurisdiction reflects non-operating sites and corporate-level expenses, which include interest expense associated with FCX’s senior notes and general and administrative expenses. The U.S. jurisdiction also includes net revisions to environmental obligation estimates and charges associated with oil and gas abandonment obligations and impairments.
Current wording
b. In addition to our U.S. copper and molybdenum mines, which had operating income of $317 million in first-quarter 2025 and $163 million in first-quarter 2024 (refer to Note 8), the U.S. jurisdiction reflects non-operating sites and corporate-level expenses, which include interest expense associated with our senior notes and general and administrative expenses. The U.S. jurisdiction also includes net revisions to environmental obligation estimates and charges associated with oil and gas abandonment obligations and impairments.
Previous wording
f. Refer to Note 3 for further discussion of net credits associated with closure of PT-FI’s 2021 corporate income tax audit and resolution of a framework for Indonesia disputed tax matters.
Current wording
c. Includes net credits associated with the closure of PTFI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters.
Previous wording
Assuming achievement of current sales volume and cost estimates and average prices of $4.25 per pound of copper, $2,600 per ounce of gold and $20.00 per pound of molybdenum in fourth-quarter 2024, we estimate our consolidated effective tax rate for the year 2024 would approximate 36% (which reflects an estimated effective tax rate of 40% for fourth-quarter 2024). Changes in projected sales volumes and average prices during fourth-quarter 2024 would incur tax impacts at estimated effective rates of 39% for Peru, 36% for Indonesia and 0% for the U.S., which excludes the benefits discussed in footnote c under the table above and any impacts from the U.S. Inflation Reduction Act of 2022 (refer to Note 3).
Current wording
Assuming achievement of current sales volume and cost estimates and prices of $4.15 per pound of copper, $3,000 per ounce of gold and $20.00 per pound of molybdenum for the remainder of 2025, we estimate our consolidated effective tax rate for the year 2025 would approximate 39%. Changes in projected sales volumes and average prices during 2025 would incur tax impacts at estimated effective rates of 39% for Peru, 36% for Indonesia and 0% for the U.S.
Showing the first 40 of 103 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
We are accelerating initiatives across our U.S. and South America operations by incorporating new applications, technologies and data analytics to our leaching processes. Incremental copper production from these initiatives totaled 214 million pounds for the year 2024 and 46 million pounds in first-quarter 2025.
Current report — wording carried from elsewhere
Our South America operations also sell a portion of their copper concentrate production to Atlantic Copper. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.
Current report — wording carried from elsewhere
An extension would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly attractive Grasberg minerals district.
Current report — wording carried from elsewhere
The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of our Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by our Board or management, as applicable. Our share repurchase program may be modified, increased, suspended or terminated at any time at our Board’s discretion.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations. Net revisions to long-term historical environmental obligations totaled $3 million in third-quarter 2024, $83 million in third-quarter 2023, $82 million for the first nine months of 2024 and $199 million for the first nine months of 2023. Refer to Note 7.
Previous report — wording carried elsewhere
We have $0.7 billion in scheduled senior note maturities in November 2024, which we expect to redeem with cash on hand. Our next senior note maturities are in 2027. Our total debt has an average remaining duration of approximately 9 years.
Previous report — wording carried elsewhere
Refer to Note 4 for further discussion.
Previous report — wording carried elsewhere
Indonesia Operations Product Revenues, Production Costs and Unit Net Cash (Credits) Costs
Previous report — wording carried elsewhere
Indonesia Operations Product Revenues, Production Costs and Unit Net Cash Costs
Previous report — wording carried elsewhere
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
Previous report — wording carried elsewhere
a. Reflects sales of the Molybdenum mines’ production to our 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, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
Previous report — wording carried elsewhere
c. Includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America copper mines and South America operations.