Freeport-McMoRan

Reports Second-Quarter and Six-Month 2022 Results

•Solid operational results, with strong margins and cash flows

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

•Unit net cash costs in line with April 2022 guidance

•Strong balance sheet, liquidity and financial flexibility

•Significant debt retirements through open-market transactions

•Increase in share repurchase authorization

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

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

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

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

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

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

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

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

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

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

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

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

SUMMARY FINANCIAL DATA

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in millions, except per share amounts)
Revenuesa,b	$	5,416	$	5,748	$	12,019	$	10,598
Operating incomea	$	1,736	$	2,067	$	4,545	$	3,599
Net income attributable to common stockc,d	$	840	$	1,083	$	2,367	$	1,801
Diluted net income per share of common stock	$	0.57	$	0.73	$	1.61	$	1.21
Diluted weighted-average common shares outstanding	1,457		1,483		1,463		1,480
Operating cash flowse	$	1,621	$	2,395	$	3,312	$	3,470
Capital expenditures	$	863	$	433	$	1,586	$	803
At June 30:
Cash and cash equivalents	$	9,492	$	6,313	$	9,492	$	6,313
Total debt, including current portion	$	11,092	$	9,695	$	11,092	$	9,695

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

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

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

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

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

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SUMMARY OPERATING DATA

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

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

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

Market Conditions

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

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

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

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

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

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Responsible Production

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

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

Consolidated Sales Volumes

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

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

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

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

Consolidated Unit Net Cash Costs

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

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

MINING OPERATIONS

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

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

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

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

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Copper (millions of recoverable pounds)
Production	382		360		736		713
Sales, excluding purchases	389		389		770		697
Average realized price per pound	$	4.36	$	4.42	$	4.46	$	4.19
Molybdenum (millions of recoverable pounds)
Productiona	8		9		15		17
Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments	$	2.50	$	2.14	$	2.44	$	2.09
By-product credits	(0.35)		(0.25)		(0.35)		(0.27)
Treatment charges	0.11		0.08		0.10		0.09
Unit net cash costs	$	2.26	$	1.97	$	2.19	$	1.91

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

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

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

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

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

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

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

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

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

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2022		2021			2022		2021
Copper (millions of recoverable pounds)
Production	286		245			560		504
Sales	288		230			552		489
Average realized price per pound	$	3.83	$	4.31		$	4.00	$	4.28
Molybdenum (millions of recoverable pounds)
Productiona	7		4			14		9
Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments	$	2.48	$	2.48	c	$	2.45	$	2.23	c
By-product credits	(0.35)		(0.31)			(0.38)		(0.26)
Treatment charges	0.15		0.13			0.15		0.13
Royalty on metals	0.01		0.01			0.01		0.01
Unit net cash costs	$	2.29	$	2.31		$	2.23	$	2.11

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

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. Refer to the supplemental schedule, "Adjusted Net Income," on page VII.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Copper (millions of recoverable pounds)
Production	407		308		788		606
Sales	410		310		789		568
Average realized price per pound	$	3.86	$	4.27	$	4.04	$	4.29
Gold (thousands of recoverable ounces)
Production	473		303		885		597
Sales	474		302		880		558
Average realized price per ounce	$	1,827	$	1,795	$	1,861	$	1,785
Unit net cash (credits) costs per pound of coppera
Site production and delivery, excluding adjustments	$	1.43	$	1.54	$	1.42	$	1.51
Gold and silver credits	(2.17)		(1.93)		(2.17)		(1.86)
Treatment charges	0.24		0.24		0.24		0.24
Export duties	0.21		0.14		0.21		0.13
Royalty on metals	0.27		0.26		0.26		0.25
Unit net cash (credits) costs	$	(0.02)	$	0.25	$	(0.04)	$	0.27

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

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

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

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

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

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

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

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

EXPLORATION

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

LIQUIDITY, CASH FLOWS, CASH AND DEBT

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

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

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

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

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

9

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

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

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

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

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

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

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

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

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

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

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

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

FINANCIAL POLICY

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

10

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

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

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

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

WEBCAST INFORMATION

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

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

FREEPORT: Foremost in Copper

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

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

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

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

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

11

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

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

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

12

Freeport-McMoRan Inc.
SELECTED OPERATING DATA
	Three Months Ended June 30,
	2022	2021	2022			2021
MINING OPERATIONS:	Production		Sales
COPPER(millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	172	156	173			172
Safford (100%)	70	64	72			67
Sierrita (100%)	48	53	51			55
Bagdad (100%)	46	39	46			47
Chino (100%)	29	33	30			31
Tyrone (100%)	14	12	15			13
Miami (100%)	3	3	2			4
Total North America	382	360	389			389
South America
Cerro Verde (53.56%)	241	206	243			189
El Abra (51%)	45	39	45			41
Total South America	286	245	288			230
Indonesia
Grasberg (48.76%)b	407	308	410			310
Total	1,075	913	1,087		c	929		c
Less noncontrolling interests	210	173	212			166
Net	865	740	875			763
Average realized price per pound			$	4.03		$	4.34
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	3	2	2			3
Indonesia (48.76%)b	473	303	474			302
Consolidated	476	305	476			305
Less noncontrolling interests	89	56	89			56
Net	387	249	387			249
Average realized price per ounce			$	1,827		$	1,794
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Climax (100%)	5	5	N/A			N/A
Henderson (100%)	3	2	N/A			N/A
North America copper mines (100%)a	8	9	N/A			N/A
Cerro Verde (53.56%)	7	4	N/A			N/A
Consolidated	23	20	20			22
Less noncontrolling interests	3	2	3			2
Net	20	18	17			20
Average realized price per pound			$	19.44		$	13.11
a. Amounts are net of Morenci's joint venture partners' undivided interests.
b. FCX’s economic interest in PT Freeport Indonesia (PT-FI) approximates 81 percent through 2022 and 48.76 percent thereafter.
c. Consolidated sales volumes exclude purchased copper of 23 million pounds in second-quarter 2022 and 68 million pounds in second-quarter 2021.

I

Freeport-McMoRan Inc.
SELECTED OPERATING DATA
	Six Months Ended June 30,
	2022	2021	2022			2021
MINING OPERATIONS:	Production		Sales
COPPER(millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	326	310	339			312
Safford (100%)	139	128	143			118
Sierrita (100%)	100	102	103			97
Bagdad (100%)	80	83	88			89
Chino (100%)	57	58	62			50
Tyrone (100%)	28	25	30			24
Miami (100%)	6	7	5			7
Total North America	736	713	770			697
South America
Cerro Verde (53.56%)	478	423	472			404
El Abra (51%)	82	81	80			85
Total South America	560	504	552			489
Indonesia
Grasberg (48.76%)b	788	606	789			568
Total	2,084	1,823	2,111		c	1,754		c
Less noncontrolling interests	409	350	406			336
Net	1,675	1,473	1,705			1,418
Average realized price per pound			$	4.18		$	4.25
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	6	5	5			5
Indonesia (48.76%)b	885	597	880			558
Consolidated	891	602	885			563
Less noncontrolling interests	166	111	165			104
Net	725	491	720			459
Average realized price per ounce			$	1,861		$	1,785
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Climax (100%)	9	9	N/A			N/A
Henderson (100%)	6	5	N/A			N/A
North America copper mines (100%)a	15	17	N/A			N/A
Cerro Verde (53.56%)	14	9	N/A			N/A
Consolidated	44	40	39			43
Less noncontrolling interests	6	4	5			5
Net	38	36	34			38
Average realized price per pound			$	19.37		$	12.38
a. Amounts are net of Morenci's joint venture partners' undivided interests.
b. FCX’s economic interest in PT-FI approximates 81 percent through 2022 and 48.76 percent thereafter.
c. Consolidated sales volumes exclude purchased copper of 38 million pounds for the first six months of 2022 and 121 million pounds for the first six months of 2021.

II

Freeport-McMoRan Inc.
SELECTED OPERATING DATA (continued)
	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
100% North America Copper Mines
Leach Operations
Leach ore placed in stockpiles (metric tons per day)	722,900	688,000	715,800	696,500
Average copper ore grade (percent)	0.29	0.30	0.29	0.29
Copper production (millions of recoverable pounds)	254	265	499	527
Mill Operations
Ore milled (metric tons per day)	306,900	264,700	299,200	266,300
Average ore grades (percent):
Copper	0.39	0.36	0.38	0.37
Molybdenum	0.02	0.03	0.02	0.03
Copper recovery rate (percent)	83.2	82.4	82.1	80.5
Production (millions of recoverable pounds):
Copper	195	155	364	306
Molybdenum	8	9	15	17
100% South America Mining
Leach Operations
Leach ore placed in stockpiles (metric tons per day)	157,700	190,200	148,800	172,100
Average copper ore grade (percent)	0.37	0.33	0.36	0.34
Copper production (millions of recoverable pounds)	71	65	132	126
Mill Operations
Ore milled (metric tons per day)	427,100	374,100	410,800	382,100
Average ore grades (percent):
Copper	0.31	0.29	0.32	0.30
Molybdenum	0.01	0.01	0.02	0.01
Copper recovery rate (percent)	84.4	85.2	85.5	86.4
Production (millions of recoverable pounds):
Copper	215	179	428	377
Molybdenum	7	4	14	9
100% Indonesia Mining
Ore extracted and milled (metric tons per day):
Grasberg Block Cave underground mine	101,800	64,400	101,100	58,100
Deep Mill Level Zone underground mine	77,300	53,900	77,800	50,300
Big Gossan underground mine	7,400	8,200	7,500	7,500
Deep Ore Zone underground mine and other	10,500	16,500	5,400	17,700
Total	197,000	143,000	191,800	133,600
Average ore grades:
Copper (percent)	1.22	1.28	1.22	1.34
Gold (grams per metric ton)	1.08	1.00	1.05	1.03
Recovery rates (percent):
Copper	89.8	88.8	89.6	90.0
Gold	79.0	75.9	78.2	77.4
Production (recoverable):
Copper (millions of pounds)	407	308	788	606
Gold (thousands of ounces)	473	303	885	597
100% Molybdenum Mines
Ore milled (metric tons per day)	25,600	22,200	24,100	20,500
Average molybdenum ore grade (percent)	0.18	0.19	0.18	0.19
Molybdenum production (millions of recoverable pounds)	8	7	15	14

III

Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
	(In Millions, Except Per Share Amounts)
Revenuesa	$	5,416		$	5,748		$	12,019	b	$	10,598
Cost of sales:
Production and deliveryc,d	3,003			3,067		b,e	6,153		b	5,853		b,e
Depreciation, depletion and amortization	507			483			996			902
Metals inventory adjustments	18		f	—			18		f	1
Total cost of sales	3,528			3,550			7,167			6,756
Selling, general and administrative expenses	100			87			215			187
Mining exploration and research expenses	25			14			49			21
Environmental obligations and shutdown costs	29			33			45			38
Net gain on sales of assets	(2)			(3)			(2)			(3)
Total costs and expenses	3,680			3,681			7,474			6,999
Operating income	1,736			2,067			4,545			3,599
Interest expense, netg	(156)			(148)		b	(283)			(293)		b
Net gain on early extinguishment of debt	8			—			8			—
Other income, net	11			9		b	42			20		b
Income before income taxes and equity in affiliated companies' net earnings	1,599			1,928			4,312			3,326
Provision for income taxesh	(571)			(603)			(1,395)			(1,046)
Equity in affiliated companies' net earnings	10			6			25			4
Net income	1,038			1,331			2,942			2,284
Net income attributable to noncontrolling interests	(198)			(248)			(575)			(483)
Net income attributable to common stockholdersi	$	840		$	1,083		$	2,367		$	1,801
Diluted net income per share attributable to common stock	$	0.57		$	0.73		$	1.61		$	1.21
Diluted weighted-average common shares outstanding	1,457			1,483			1,463			1,480
Dividends declared per share of common stock	$	0.15		$	0.075		$	0.30		$	0.15

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

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

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

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

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

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

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

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

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

IV

Freeport-McMoRan Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
	June 30,		December 31,
	2022		2021
	(In Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	9,492	$	8,068
Trade accounts receivable	977		1,168
Income and other tax receivables	435		574
Inventories:
Materials and supplies, net	1,776		1,669
Mill and leach stockpiles	1,387		1,170
Product	1,507		1,658
Other current assets	608		523
Total current assets	16,182		14,830
Property, plant, equipment and mine development costs, net	31,200		30,345
Long-term mill and leach stockpiles	1,230		1,387
Other assets	1,501		1,460
Total assets	$	50,113	$	48,022
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	3,853	$	3,495
Current portion of debt	1,038		372
Accrued income taxes	507		1,541
Current portion of environmental and asset retirement obligations	317		264
Dividends payable	217		220
Total current liabilities	5,932		5,892
Long-term debt, less current portion	10,054		9,078
Deferred income taxes	4,297		4,234
Environmental and asset retirement obligations, less current portion	4,170		4,116
Other liabilities	1,613		1,683
Total liabilities	26,066		25,003
Equity:
Stockholders' equity:
Common stock	161		160
Capital in excess of par value	25,661		25,875
Accumulated deficit	(5,008)		(7,375)
Accumulated other comprehensive loss	(386)		(388)
Common stock held in treasury	(5,539)		(4,292)
Total stockholders' equity	14,889		13,980
Noncontrolling interestsa	9,158		9,039
Total equity	24,047		23,019
Total liabilities and equity	$	50,113	$	48,022

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

V

Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six Months Ended
	June 30,
	2022		2021
	(In Millions)
Cash flow from operating activities:
Net income	$	2,942	$	2,284
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	996		902
Metals inventory adjustments	18		1
Net gain on sales of assets	(2)		(3)
Stock-based compensation	62		56
Net charges for environmental and asset retirement obligations, including accretion	119		94
Payments for environmental and asset retirement obligations	(120)		(110)
Net charges for defined pension and postretirement plans	20		1
Pension plan contributions	(50)		(42)
Net gain on early extinguishment of debt	(8)		—
Deferred income taxes	63		79
Charges for Cerro Verde royalty dispute	—		9
Payments for Cerro Verde royalty dispute	—		(65)
Other, net	(17)		77
Changes in working capital and other:
Accounts receivable	314		(279)
Inventories	(40)		(299)
Other current assets	(99)		(12)
Accounts payable and accrued liabilities	185		272
Accrued income taxes and timing of other tax payments	(1,071)		505
Net cash provided by operating activities	3,312		3,470
Cash flow from investing activities:
Capital expenditures:
North America copper mines	(276)		(95)
South America	(124)		(47)
Indonesia mining	(778)		(576)
Indonesia smelter projects	(325)		(48)
Molybdenum mines	(9)		(3)
Other	(74)		(34)
Proceeds from sales of assets	96		16
Acquisition of minority interest in PT Smelting	—		(33)
Loans to PT Smelting for expansion	(34)		—
Other, net	(6)		(13)
Net cash used in investing activities	(1,530)		(833)
Cash flow from financing activities:
Proceeds from debt	4,666		160
Repayments of debt	(2,993)		(179)
Cash dividends and distributions paid:
Common stock	(438)		(111)
Noncontrolling interests	(513)		(93)
Treasury stock purchases	(1,185)		—
Contributions from noncontrolling interests	94		88
Proceeds from exercised stock options	106		184
Payments for withholding of employee taxes related to stock-based awards	(55)		(19)
Debt financing costs and other, net	(33)		(1)
Net cash (used in) provided by financing activities	(351)		29
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents	1,431		2,666
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	8,314		3,903
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of perioda	$	9,745	$	6,569

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

VI

Freeport-McMoRan Inc.

ADJUSTED NET INCOME

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

	Three Months Ended June 30,
	2022								2021
	Pre-tax			After-taxa			Per Share		Pre-tax			After-taxa			Per Share
Net income attributable to common stock	N/A			$	840		$	0.57	N/A			$	1,083		$	0.73
Metals inventory adjustments	$	(18)	b	$	(11)		$	(0.01)	$	—		$	—		$	—
Net adjustments to environmental obligations and related litigation reserves	(13)			(13)			(0.01)		(20)			(20)			(0.01)
Cerro Verde labor agreement	—			—			—		(69)			(22)			(0.01)
PT-FI net charges	—			—			—		(32)		c	(28)			(0.02)
Net gain on sales of assets	2			2			—		3			3			—
Net gain on early extinguishment of debt	8			13			0.01		—			—			—
Other net (charges) credits	(6)		d	(4)			—		10		e	10			0.01
	$	(28)	f	$	(14)	f	$	(0.01)	$	(107)	f	$	(56)	f	$	(0.04)	f
Adjusted net income attributable to common stock	N/A			$	854		$	0.58	N/A			$	1,139		$	0.77

	Six Months Ended June 30,
	2022								2021
	Pre-tax			After-taxa			Per Share		Pre-tax			After-taxa			Per Share
Net income attributable to common stock	N/A			$	2,367		$	1.61	N/A			$	1,801		$	1.21
PT-FI net charges	$	(51)	g	$	(31)		$	(0.02)	$	(54)	c	$	(48)		$	(0.03)
Metals inventory adjustments	(18)		b	(11)			(0.01)		(1)			(1)			—
Net adjustments to environmental obligations and related litigation reserves	(13)			(13)			(0.01)		(17)			(17)			(0.01)
Cerro Verde labor agreement	—			—			—		(69)			(22)			(0.01)
Net gain on sales of assets	2			2			—		3			3			—
Net gain on early extinguishment of debt	8			13			0.01		—			—			—
Other net charges	(16)		d	(11)			(0.01)		(13)		e	(10)			(0.01)
	$	(89)	f	$	(52)	f	$	(0.04)	$	(151)		$	(94)	f	$	(0.06)
Adjusted net income attributable to common stock	N/A			$	2,419		$	1.65	N/A			$	1,895		$	1.28	f

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

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

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

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

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

f.Does not foot because of rounding.

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

VII

Freeport-McMoRan Inc.

INCOME TAXES

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

	Three Months Ended June 30,
	2022						2021
					Income Tax						Income Tax
	Income		Effective		(Provision)		Income		Effective		(Provision)
	(Loss)a		Tax Rate		Benefit		(Loss)a		Tax Rate		Benefit
U.S.b	$	357	1%	c	$	(3)	$	558	1%	c	$	(3)
South America	164		37%		(61)		430		38%		(162)
Indonesia	1,123		39%		(439)		1,002		40%		(404)
Eliminations and other	(45)		N/A		7		(62)		N/A		1
Rate adjustmentd	—		N/A		(75)		—		N/A		(35)
Continuing operations	$	1,599	36%		$	(571)	$	1,928	31%		$	(603)

	Six Months Ended June 30,
	2022						2021
					Income Tax						Income Tax
	Income		Effective		(Provision)		Income		Effective		(Provision)
	(Loss)a		Tax Rate		Benefit		(Loss)a		Tax Rate		Benefit
U.S.b	$	909	1%	c	$	(5)	$	743	—%	c	$	(3)
South America	776		39%		(302)		923		39%		(356)
Indonesia	2,635		39%		(1,025)		1,759		41%		(719)
Eliminations and other	(8)		N/A		(3)		(99)		N/A		5
Rate adjustmentd	—		N/A		(60)		—		N/A		27
Continuing operations	$	4,312	32%		$	(1,395)	$	3,326	31%		$	(1,046)

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

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

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

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

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

VIII

Freeport-McMoRan Inc.

NET DEBT

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

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

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

DERIVATIVE INSTRUMENTS

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

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

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

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

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

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

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

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

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

IX

Freeport-McMoRan Inc.

DEFERRED PROFITS

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

BUSINESS SEGMENTS

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

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

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

X

Freeport-McMoRan Inc.

BUSINESS SEGMENTS (continued)

(In millions)
																					Atlantic			Corporate,
	North America Copper Mines						South America Mining														Copper			Other
							Cerro							Indonesia			Molybdenum		Rod &		Smelting			& Elimi-			FCX
	Morenci		Other		Total		Verde			Other		Total		Mining			Mines		Refining		& Refining			nations			Total
Three Months Ended June 30, 2022
Revenues:
Unaffiliated customers	$	17	$	30	$	47	$	702		$	180	$	882	$	1,920	a	$	—	$	1,753	$	433		$	381	b	$	5,416
Intersegment	730		1,078		1,808		134			—		134		58			144		8		—			(2,152)			—
Production and delivery	397		720		1,117		565			177		742		564			80		1,765		463		c	(1,728)			3,003
Depreciation, depletion and amortization	44		58		102		91			11		102		262			18		1		6			16			507
Metals inventory adjustments	—		7		7		9			2		11		—			—		—		—			—			18
Selling, general and administrative expenses	1		—		1		2			—		2		30			—		—		5			62			100
Mining exploration and research expenses	—		1		1		—			—		—		—			—		—		—			24			25
Environmental obligations and shutdown costs	(13)		—		(13)		—			—		—		—			—		—		—			42			29
Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(2)			(2)
Operating income (loss)	318		322		640		169			(10)		159		1,122			46		(5)		(41)			(185)			1,736
Interest expense, net	—		—		—		4			—		4		2			—		—		2			148			156
Provision for (benefit from) income taxes	—		—		—		68			(7)		61		439			—		—		—			71			571
Total assets at June 30, 2022	2,839		5,338		8,177		8,379			1,843		10,222		20,731			1,702		300		1,078			7,903			50,113
Capital expenditures	63		83		146		35			33		68		399			8		2		32			208		d	863
Three Months Ended June 30, 2021
Revenues:
Unaffiliated customers	$	57	$	55	$	112	$	825		$	188	$	1,013	$	1,753	a	$	—	$	1,689	$	794		$	387	b	$	5,748
Intersegment	721		1,021		1,742		120			—		120		56			89		6		—			(2,013)			—
Production and delivery	351		574		925		494		e	106		600		528			56		1,691		775			(1,508)		c	3,067
Depreciation, depletion and amortization	40		61		101		82			12		94		247			17		1		8			15			483
Selling, general and administrative expenses	1		—		1		2			—		2		27			—		—		5			52			87
Mining exploration and research expenses	—		—		—		—			—		—		—			—		—		—			14			14
Environmental obligations and shutdown costs	1		—		1		—			—		—		—			—		—		—			32			33
Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(3)			(3)
Operating income (loss)	385		441		826		367			70		437		1,007			16		3		6			(228)			2,067
Interest expense, net	—		—		—		12			—		12		6			—		—		2			128			148
Provision for income taxes	—		—		—		145			17		162		404			—		—		—			37			603
Total assets at June 30, 2021	2,635		5,288		7,923		8,795			1,795		10,590		18,135			1,740		271		1,117			5,660			45,436
Capital expenditures	22		47		69		23			3		26		286			2		—		7			43		d	433

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

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

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

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

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

XI

Freeport-McMoRan Inc.

BUSINESS SEGMENTS (continued)

(In millions)
																					Atlantic			Corporate,
	North America Copper Mines						South America Mining														Copper			Other
							Cerro							Indonesia			Molybdenum		Rod &		Smelting			& Elimi-			FCX
	Morenci		Other		Total		Verde			Other		Total		Mining			Mines		Refining		& Refining			nations			Total
Six months ended June 30, 2022
Revenues:
Unaffiliated customers	$	107	$	85	$	192	$	1,808		$	340	$	2,148	$	4,246	a	$	—	$	3,496	$	1,151		$	786	b	$	12,019
Intersegment	1,441		2,173		3,614		242			—		242		136			272		17		—			(4,281)			—
Production and delivery	760		1,375		2,135		1,123			289		1,412		1,190			155		3,519		1,185		c	(3,443)			6,153
Depreciation, depletion and amortization	88		119		207		178			21		199		510			34		2		12			32			996
Metals inventory adjustments	—		7		7		9			2		11		—			—		—		—			—			18
Selling, general and administrative expenses	1		1		2		4			—		4		57			—		—		13			139			215
Mining exploration and research expenses	—		1		1		—			—		—		—			—		—		—			48			49
Environmental obligations and shutdown costs	(13)		—		(13)		—			—		—		—			—		—		—			58			45
Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(2)			(2)
Operating income (loss)	712		755		1,467		736			28		764		2,625			83		(8)		(59)			(327)			4,545
Interest expense, net	—		—		—		7			—		7		4			—		—		4			268			283
Provision for income taxes	—		—		—		295			7		302		1,025			—		—		—			68			1,395
Capital expenditures	136		140		276		68			56		124		778			9		4		43			352		d	1,586
Six months ended June 30, 2021
Revenues:
Unaffiliated customers	$	61	$	83	$	144	$	1,742		$	363	$	2,105	$	3,136	a	$	—	$	2,998	$	1,481		$	734	b	$	10,598
Intersegment	1,285		1,763		3,048		165			—		165		108			159		13		—			(3,493)			—
Production and delivery	620		1,054		1,674		930		e	209		1,139		983			113		3,007		1,448			(2,511)		c	5,853
Depreciation, depletion and amortization	74		107		181		171			24		195		446			32		2		15			31			902
Metals inventory adjustments	—		—		—		—			—		—		—			1		—		—			—			1
Selling, general and administrative expenses	1		1		2		4			—		4		53			—		—		12			116			187
Mining exploration and research expenses	—		—		—		—			—		—		—			—		—		—			21			21
Environmental obligations and shutdown costs	1		—		1		—			—		—		—			—		—		—			37			38
Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—			(3)			(3)
Operating income (loss)	650		684		1,334		802			130		932		1,762			13		2		6			(450)			3,599
Interest expense, net	—		—		—		25			—		25		7			—		—		3			258			293
Provision for (benefit from) income taxes	—		—		—		318			38		356		719			—		—		—			(29)			1,046
Capital expenditures	32		63		95		43			4		47		576			3		1		13			68		d	803

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

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

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

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

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

XII

Freeport-McMoRan Inc.

PRODUCT REVENUES AND PRODUCTION COSTS

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

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

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

XIII

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,697	$	1,697	$	144	$	30	$	1,871
Site production and delivery, before net noncash     and other costs shown below	975		897		95		21		1,013
By-product credits	(136)		—		—		—		—
Treatment charges	41		40		—		1		41
Net cash costs	880		937		95		22		1,054
Depreciation, depletion and amortization (DD&A)	103		95		7		1		103
Metals inventory adjustments	7		6		1		—		7
Noncash and other costs, net	36		33		2		1		36
Total costs	1,026		1,071		105		24		1,200
Other revenue adjustments, primarily for pricing     on prior period open sales	(37)		(37)		—		—		(37)
Gross profit	$	634	$	589	$	39	$	6	$	634
Copper sales (millions of recoverable pounds)	389		389
Molybdenum sales (millions of recoverable pounds)a					8
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	4.36	$	4.36	$	18.75
Site production and delivery, before net noncash     and other costs shown below	2.50		2.30		12.42
By-product credits	(0.35)		—		—
Treatment charges	0.11		0.11		—
Unit net cash costs	2.26		2.41		12.42
DD&A	0.27		0.24		0.81
Metals inventory adjustments	0.02		0.02		0.16
Noncash and other costs, net	0.09		0.08		0.32
Total unit costs	2.64		2.75		13.71
Other revenue adjustments, primarily for pricing     on prior period open sales	(0.10)		(0.10)		—
Gross profit per pound	$	1.62	$	1.51	$	5.04
Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	1,871	$	1,013	$	103	$	7
Treatment charges	(5)		36		—		—
Noncash and other costs, net	—		36		—		—
Other revenue adjustments, primarily for pricing     on prior period open sales	(37)		—		—		—
Eliminations and other	26		32		(1)		—
North America copper mines	1,855		1,117		102		7
Other miningc	5,332		3,614		389		11
Corporate, other & eliminations	(1,771)		(1,728)		16		—
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507	$	18

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

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

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

XIV

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2021
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,717	$	1,717	$	97	$	32	$	1,846
Site production and delivery, before net noncash     and other costs shown below	833		789		56		18		863
By-product credits	(99)		—		—		—		—
Treatment charges	31		29		—		2		31
Net cash costs	765		818		56		20		894
DD&A	102		95		5		2		102
Noncash and other costs, net	31		30		1		—		31
Total costs	898		943		62		22		1,027
Other revenue adjustments, primarily for pricing     on prior period open sales	8		8		—		—		8
Gross profit	$	827	$	782	$	35	$	10	$	827
Copper sales (millions of recoverable pounds)	389		389
Molybdenum sales (millions of recoverable pounds)a					9
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	4.42	$	4.42	$	11.75
Site production and delivery, before net noncash     and other costs shown below	2.14		2.03		6.86
By-product credits	(0.25)		—		—
Treatment charges	0.08		0.07		—
Unit net cash costs	1.97		2.10		6.86
DD&A	0.26		0.25		0.55
Noncash and other costs, net	0.08		0.08		0.06
Total unit costs	2.31		2.43		7.47
Other revenue adjustments, primarily for pricing     on prior period open sales	0.02		0.02		—
Gross profit per pound	$	2.13	$	2.01	$	4.28
Reconciliation to Amounts Reported
			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	1,846	$	863	$	102
Treatment charges	(12)		19		—
Noncash and other costs, net	—		31		—
Other revenue adjustments, primarily for pricing     on prior period open sales	8		—		—
Eliminations and other	12		12		(1)
North America copper mines	1,854		925		101
Other miningc	5,520		3,650		367
Corporate, other & eliminations	(1,626)		(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748	$	3,067	$	483

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

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

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

XV

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Six months ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	3,440	$	3,440	$	282	$	57	$	3,779
Site production and delivery, before net noncash     and other costs shown below	1,883		1,735		179		39		1,953
By-product credits	(269)		—		—		—		—
Treatment charges	77		75		—		2		77
Net cash costs	1,691		1,810		179		41		2,030
DD&A	207		192		13		2		207
Metals inventory adjustments	7		6		1		—		7
Noncash and other costs, net	65		60		4		1		65
Total costs	1,970		2,068		197		44		2,309
Other revenue adjustments, primarily for pricing     on prior period open sales	(7)		(7)		—		—		(7)
Gross profit	$	1,463	$	1,365	$	85	$	13	$	1,463
Copper sales (millions of recoverable pounds)	770		770
Molybdenum sales (millions of recoverable pounds)a					15
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	4.46	$	4.46	$	18.36
Site production and delivery, before net noncash     and other costs shown below	2.44		2.25		11.68
By-product credits	(0.35)		—		—
Treatment charges	0.10		0.10		—
Unit net cash costs	2.19		2.35		11.68
DD&A	0.27		0.25		0.85
Metals inventory adjustments	0.01		0.01		0.08
Noncash and other costs, net	0.09		0.07		0.23
Total unit costs	2.56		2.68		12.84
Other revenue adjustments, primarily for pricing     on prior period open sales	(0.01)		(0.01)		—
Gross profit per pound	$	1.89	$	1.77	$	5.52
Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	3,779	$	1,953	$	207	$	7
Treatment charges	(9)		68		—		—
Noncash and other costs, net	—		65		—		—
Other revenue adjustments, primarily for pricing     on prior period open sales	(7)		—		—		—
Eliminations and other	43		49		—		—
North America copper mines	3,806		2,135		207		7
Other miningc	11,708		7,461		757		11
Corporate, other & eliminations	(3,495)		(3,443)		32		—
As reported in FCX's consolidated financial statements	$	12,019	$	6,153	$	996	$	18

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

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

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

XVI

XVII

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Six months ended June 30, 2021
(In millions)	By-Product		Co-Product Method
	Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	2,919	$	2,919	$	185	$	67	$	3,171
Site production and delivery, before net noncash     and other costs shown below	1,459		1,369		113		40		1,522
By-product credits	(189)		—		—		—		—
Treatment charges	63		60		—		3		63
Net cash costs	1,333		1,429		113		43		1,585
DD&A	181		169		8		4		181
Noncash and other costs, net	73		71		1		1		73
Total costs	1,587		1,669		122		48		1,839
Other revenue adjustments, primarily for pricing     on prior period open sales	7		7		—		—		7
Gross profit	$	1,339	$	1,257	$	63	$	19	$	1,339
Copper sales (millions of recoverable pounds)	697		697
Molybdenum sales (millions of recoverable pounds)a					17
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	4.19	$	4.19	$	11.12
Site production and delivery, before net noncash     and other costs shown below	2.09		1.96		6.76
By-product credits	(0.27)		—		—
Treatment charges	0.09		0.09		—
Unit net cash costs	1.91		2.05		6.76
DD&A	0.26		0.24		0.51
Noncash and other costs, net	0.11		0.11		0.06
Total unit costs	2.28		2.40		7.33
Other revenue adjustments, primarily for pricing     on prior period open sales	0.01		0.01		—
Gross profit per pound	$	1.92	$	1.80	$	3.79
Reconciliation to Amounts Reported
			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	3,171	$	1,522	$	181
Treatment charges	(17)		46		—
Noncash and other costs, net	—		73		—
Other revenue adjustments, primarily for pricing     on prior period open sales	7		—		—
Eliminations and other	31		33		—
North America copper mines	3,192		1,674		181
Other miningc	10,165		6,690		690
Corporate, other & eliminations	(2,759)		(2,511)		31
As reported in FCX's consolidated financial statements	$	10,598	$	5,853	$	902

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

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

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

XVIII

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Othera		Total
Revenues, excluding adjustments	$	1,102	$	1,102	$	116	$	1,218
Site production and delivery, before net noncash     and other costs shown below	712		658		69		727
By-product credits	(101)		—		—		—
Treatment charges	44		44		—		44
Royalty on metals	3		3		—		3
Net cash costs	658		705		69		774
DD&A	101		91		10		101
Metals inventory adjustments	11		10		1		11
Noncash and other costs, net	18		17		1		18
Total costs	788		823		81		904
Other revenue adjustments, primarily for pricing     on prior period open sales	(154)		(154)		—		(154)
Gross profit	$	160	$	125	$	35	$	160
Copper sales (millions of recoverable pounds)	288		288
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.83	$	3.83
Site production and delivery, before net noncash     and other costs shown below	2.48		2.29
By-product credits	(0.35)		—
Treatment charges	0.15		0.15
Royalty on metals	0.01		0.01
Unit net cash costs	2.29		2.45
DD&A	0.35		0.32
Metals inventory adjustments	0.04		0.03
Noncash and other costs, net	0.06		0.06
Total unit costs	2.74		2.86
Other revenue adjustments, primarily for pricing     on prior period open sales	(0.53)		(0.53)
Gross profit per pound	$	0.56	$	0.44
Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	1,218	$	727	$	101	$	11
Treatment charges	(44)		—		—		—
Royalty on metals	(3)		—		—		—
Noncash and other costs, net	—		18		—		—
Other revenue adjustments, primarily for pricing     on prior period open sales	(154)		—		—		—
Eliminations and other	(1)		(3)		1		—
South America mining	1,016		742		102		11
Other miningb	6,171		3,989		389		7
Corporate, other & eliminations	(1,771)		(1,728)		16		—
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507	$	18

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

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

XIX

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	995		$	995	$	82	$	1,077
Site production and delivery, before net noncash     and other costs shown below	573		b	531		52		583
By-product credits	(72)			—		—		—
Treatment charges	29			29		—		29
Royalty on metals	2			2		—		2
Net cash costs	532			562		52		614
DD&A	94			86		8		94
Noncash and other costs, net	18			17		1		18
Total costs	644			665		61		726
Other revenue adjustments, primarily for pricing     on prior period open sales	88			88		—		88
Gross profit	$	439		$	418	$	21	$	439
Copper sales (millions of recoverable pounds)	230			230
Gross profit per pound of copper:
Revenues, excluding adjustments	$	4.31		$	4.31
Site production and delivery, before net noncash     and other costs shown below	2.48		b	2.30
By-product credits	(0.31)			—
Treatment charges	0.13			0.13
Royalty on metals	0.01			0.01
Unit net cash costs	2.31			2.44
DD&A	0.40			0.37
Noncash and other costs, net	0.08			0.07
Total unit costs	2.79			2.88
Other revenue adjustments, primarily for pricing     on prior period open sales	0.38			0.38
Gross profit per pound	$	1.90		$	1.81
Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	1,077		$	583	$	94
Treatment charges	(29)			—		—
Royalty on metals	(2)			—		—
Noncash and other costs, net	—			18		—
Other revenue adjustments, primarily for pricing     on prior period open sales	88			—		—
Eliminations and other	(1)			(1)		—
South America mining	1,133			600		94
Other miningc	6,241			3,975		374
Corporate, other & eliminations	(1,626)			(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748		$	3,067	$	483

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

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

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

XX

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Six months ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Othera		Total
Revenues, excluding adjustments	$	2,204	$	2,204	$	240	$	2,444
Site production and delivery, before net noncash     and other costs shown below	1,352		1,244		135		1,379
By-product credits	(213)		—		—		—
Treatment charges	84		84		—		84
Royalty on metals	6		5		1		6
Net cash costs	1,229		1,333		136		1,469
DD&A	198		179		19		198
Metals inventory adjustments	11		10		1		11
Noncash and other costs, net	35		33		2		35
Total costs	1,473		1,555		158		1,713
Other revenue adjustments, primarily for pricing     on prior period open sales	35		35		—		35
Gross profit	$	766	$	684	$	82	$	766
Copper sales (millions of recoverable pounds)	552		552
Gross profit per pound of copper:
Revenues, excluding adjustments	$	4.00	$	4.00
Site production and delivery, before net noncash     and other costs shown below	2.45		2.26
By-product credits	(0.38)		—
Treatment charges	0.15		0.15
Royalty on metals	0.01		0.01
Unit net cash costs	2.23		2.42
DD&A	0.36		0.32
Metals inventory adjustments	0.02		0.02
Noncash and other costs, net	0.06		0.06
Total unit costs	2.67		2.82
Other revenue adjustments, primarily for pricing     on prior period open sales	0.06		0.06
Gross profit per pound	$	1.39	$	1.24
Reconciliation to Amounts Reported
							Metals
			Production				Inventory
	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	2,444	$	1,379	$	198	$	11
Treatment charges	(84)		—		—		—
Royalty on metals	(6)		—		—		—
Noncash and other costs, net	—		35		—		—
Other revenue adjustments, primarily for pricing     on prior period open sales	35		—		—		—
Eliminations and other	1		(2)		1		—
South America mining	2,390		1,412		199		11
Other miningb	13,124		8,184		765		7
Corporate, other & eliminations	(3,495)		(3,443)		32		—
As reported in FCX's consolidated financial statements	$	12,019	$	6,153	$	996	$	18

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

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

XXI

XXII

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Six months ended June 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	2,093		$	2,093	$	147	$	2,240
Site production and delivery, before net noncash     and other costs shown below	1,092		b	1,022		91		1,113
By-product credits	(126)			—		—		—
Treatment charges	64			64		—		64
Royalty on metals	4			4		—		4
Net cash costs	1,034			1,090		91		1,181
DD&A	195			181		14		195
Noncash and other costs, net	28			26		2		28
Total costs	1,257			1,297		107		1,404
Other revenue adjustments, primarily for pricing     on prior period open sales	99			99		—		99
Gross profit	$	935		$	895	$	40	$	935
Copper sales (millions of recoverable pounds)	489			489
Gross profit per pound of copper:
Revenues, excluding adjustments	$	4.28		$	4.28
Site production and delivery, before net noncash     and other costs shown below	2.23		b	2.09
By-product credits	(0.26)			—
Treatment charges	0.13			0.13
Royalty on metals	0.01			0.01
Unit net cash costs	2.11			2.23
DD&A	0.40			0.37
Noncash and other costs, net	0.06			0.05
Total unit costs	2.57			2.65
Other revenue adjustments, primarily for pricing     on prior period open sales	0.20			0.20
Gross profit per pound	$	1.91		$	1.83
Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	2,240		$	1,113	$	195
Treatment charges	(64)			—		—
Royalty on metals	(4)			—		—
Noncash and other costs, net	—			28		—
Other revenue adjustments, primarily for pricing     on prior period open sales	99			—		—
Eliminations and other	(1)			(2)		—
South America mining	2,270			1,139		195
Other miningc	11,087			7,225		676
Corporate, other & eliminations	(2,759)			(2,511)		31
As reported in FCX's consolidated financial statements	$	10,598		$	5,853	$	902

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

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

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

XXIII

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash (Credits) Costs
Three Months Ended June 30, 2022
(In millions)	By-Product		Co-Product Method
	Method		Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	1,582	$	1,582	$	865	$	32	$	2,479
Site production and delivery, before net noncash     and other costs shown below	587		374		205		8		587
Gold and silver credits	(888)		—		—		—		—
Treatment charges	98		63		34		1		98
Export duties	85		54		30		1		85
Royalty on metals	108		72		35		1		108
Net cash (credits) costs	(10)		563		304		11		878
DD&A	262		167		91		4		262
Noncash and other costs, net	3		2		1		—		3
Total costs	255		732		396		15		1,143
Other revenue adjustments, primarily for pricing     on prior period open sales	(201)		(201)		(8)		(1)		(210)
PT Smelting intercompany profit	26		17		9		—		26
Gross profit	$	1,152	$	666	$	470	$	16	$	1,152
Copper sales (millions of recoverable pounds)	410		410
Gold sales (thousands of recoverable ounces)					474
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.86	$	3.86	$	1,827
Site production and delivery, before net noncash     and other costs shown below	1.43		0.91		433
Gold and silver credits	(2.17)		—		—
Treatment charges	0.24		0.15		72
Export duties	0.21		0.13		63
Royalty on metals	0.27		0.18		74
Unit net cash (credits) costs	(0.02)		1.37		642
DD&A	0.63		0.41		193
Noncash and other costs, net	0.01		0.01		2
Total unit costs	0.62		1.79		837
Other revenue adjustments, primarily for pricing     on prior period open sales	(0.49)		(0.49)		(17)
PT Smelting intercompany profit	0.06		0.04		19
Gross profit per pound/ounce	$	2.81	$	1.62	$	992
Reconciliation to Amounts Reported
			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	2,479	$	587	$	262
Treatment charges	(98)		—		—
Export duties	(85)		—		—
Royalty on metals	(108)		—		—
Noncash and other costs, net	—		3		—
Other revenue adjustments, primarily for pricing     on prior period open sales	(210)		—		—
PT Smelting intercompany profit	—		(26)		—
Indonesia mining	1,978		564		262
Other miningb	5,209		4,167		229
Corporate, other & eliminations	(1,771)		(1,728)		16
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507

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

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

XXIV

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2021
(In millions)	By-Product		Co-Product Method
	Method		Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	1,323	$	1,323	$	543	$	37	$	1,903
Site production and delivery, before net noncash     and other credits shown below	476		331		136		9		476
Gold and silver credits	(597)		—		—		—		—
Treatment charges	74		52		21		2		75
Export duties	44		30		13		1		44
Royalty on metals	80		59		20		1		80
Net cash costs	77		472		190		13		675
DD&A	247		172		70		5		247
Noncash and other costs, net	11		8		3		—		11
Total costs	335		652		263		18		933
Other revenue adjustments, primarily for pricing     on prior period open sales	87		87		16		2		105
PT Smelting intercompany loss	(41)		(28)		(12)		(1)		(41)
Gross profit	$	1,034	$	730	$	284	$	20	$	1,034
Copper sales (millions of recoverable pounds)	310		310
Gold sales (thousands of recoverable ounces)					302
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	4.27	$	4.27	$	1,795
Site production and delivery, before net noncash     and other costs shown below	1.54		1.07		449
Gold and silver credits	(1.93)		—		—
Treatment charges	0.24		0.16		70
Export duties	0.14		0.10		42
Royalty on metals	0.26		0.19		66
Unit net cash costs	0.25		1.52		627
DD&A	0.79		0.55		232
Noncash and other costs, net	0.04		0.03		11
Total unit costs	1.08		2.10		870
Other revenue adjustments, primarily for pricing     on prior period open sales	0.28		0.28		53
PT Smelting intercompany loss	(0.13)		(0.09)		(39)
Gross profit per pound/ounce	$	3.34	$	2.36	$	939
Reconciliation to Amounts Reported
			Production
	Revenues		and Delivery		DD&A
Totals presented above	$	1,903	$	476	$	247
Treatment charges	(75)		—		—
Export duties	(44)		—		—
Royalty on metals	(80)		—		—
Noncash and other costs, net	—		11		—
Other revenue adjustments, primarily for pricing     on prior period open sales	105		—		—
PT Smelting intercompany loss	—		41		—
Indonesia mining	1,809		528		247
Other miningb	5,565		4,047		221
Corporate, other & eliminations	(1,626)		(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748	$	3,067	$	483

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

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

XXV

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash (Credits) Costs
Six months ended June 30, 2022
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	3,184		$	3,184	$	1,638	$	69	$	4,891
Site production and delivery, before net noncash     and other costs shown below	1,121			730		375		16		1,121
Gold and silver credits	(1,710)			—		—		—		—
Treatment charges	191			124		64		3		191
Export duties	164			107		55		2		164
Royalty on metals	201			135		64		2		201
Net cash (credits) costs	(33)			1,096		558		23		1,677
DD&A	510			332		171		7		510
Noncash and other costs, net	30		b	20		10		—		30
Total costs	507			1,448		739		30		2,217
Other revenue adjustments, primarily for pricing     on prior period open sales	32			32		3		—		35
PT Smelting intercompany loss	(27)			(17)		(9)		(1)		(27)
Gross profit	$	2,682		$	1,751	$	893	$	38	$	2,682
Copper sales (millions of recoverable pounds)	789			789
Gold sales (thousands of recoverable ounces)						880
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	4.04		$	4.04	$	1,861
Site production and delivery, before net noncash     and other costs shown below	1.42			0.92		426
Gold and silver credits	(2.17)			—		—
Treatment charges	0.24			0.16		73
Export duties	0.21			0.14		63
Royalty on metals	0.26			0.17		72
Unit net cash (credits) costs	(0.04)			1.39		634
DD&A	0.64			0.42		194
Noncash and other costs, net	0.04		b	0.03		11
Total unit costs	0.64			1.84		839
Other revenue adjustments, primarily for pricing     on prior period open sales	0.04			0.04		3
PT Smelting intercompany loss	(0.03)			(0.02)		(10)
Gross profit per pound/ounce	$	3.41		$	2.22	$	1,015
Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	4,891		$	1,121	$	510
Treatment charges	(191)			—		—
Export duties	(164)			—		—
Royalty on metals	(201)			—		—
Noncash and other costs, net	12			42		—
Other revenue adjustments, primarily for pricing     on prior period open sales	35			—		—
PT Smelting intercompany loss	—			27		—
Indonesia mining	4,382			1,190		510
Other miningc	11,132			8,406		454
Corporate, other & eliminations	(3,495)			(3,443)		32
As reported in FCX's consolidated financial statements	$	12,019		$	6,153	$	996

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

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

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

XXVI

XXVII

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Six months ended June 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	2,435		$	2,435	$	995	$	68	$	3,498
Site production and delivery, before net noncash     and other credits shown below	859			598		244		17		859
Gold and silver credits	(1,059)			—		—		—		—
Treatment charges	140			97		40		3		140
Export duties	73			51		21		1		73
Royalty on metals	140			100		38		2		140
Net cash costs	153			846		343		23		1,212
DD&A	446			310		127		9		446
Noncash and other costs, net	3		b	2		1		—		3
Total costs	602			1,158		471		32		1,661
Other revenue adjustments, primarily for pricing     on prior period open sales	72			72		(4)		—		68
PT Smelting intercompany loss	(90)			(63)		(25)		(2)		(90)
Gross profit	$	1,815		$	1,286	$	495	$	34	$	1,815
Copper sales (millions of recoverable pounds)	568			568
Gold sales (thousands of recoverable ounces)						558
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	4.29		$	4.29	$	1,785
Site production and delivery, before net noncash     and other credits shown below	1.51			1.05		439
Gold and silver credits	(1.86)			—		—
Treatment charges	0.24			0.17		71
Export duties	0.13			0.09		37
Royalty on metals	0.25			0.18		68
Unit net cash costs	0.27			1.49		615
DD&A	0.78			0.55		228
Noncash and other costs, net	0.01		b	—		1
Total unit costs	1.06			2.04		844
Other revenue adjustments, primarily for pricing     on prior period open sales	0.12			0.12		(8)
PT Smelting intercompany loss	(0.16)			(0.11)		(46)
Gross profit per pound/ounce	$	3.19		$	2.26	$	887
Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	3,498		$	859	$	446
Treatment charges	(140)			—		—
Export duties	(73)			—		—
Royalty on metals	(140)			—		—
Noncash and other costs, net	31			34		—
Other revenue adjustments, primarily for pricing     on prior period open sales	68			—		—
PT Smelting intercompany loss	—			90		—
Indonesia mining	3,244			983		446
Other miningc	10,113			7,381		425
Corporate, other & eliminations	(2,759)			(2,511)		31
As reported in FCX's consolidated financial statements	$	10,598		$	5,853	$	902

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

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

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

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
	Three Months Ended June 30,
(In millions)	2022		2021
Revenues, excluding adjustmentsa	$	151	$	95
Site production and delivery, before net noncash     and other costs shown below	78		54
Treatment charges and other	7		6
Net cash costs	85		60
DD&A	18		17
Noncash and other costs, net	2		2
Total costs	105		79
Gross profit	$	46	$	16
Molybdenum sales (millions of recoverable pounds)a	8		7
Gross profit per pound of molybdenum:
Revenues, excluding adjustmentsa	$	18.87	$	12.77
Site production and delivery, before net noncash     and other costs shown below	9.77		7.29
Treatment charges and other	0.85		0.85
Unit net cash costs	10.62		8.14
DD&A	2.27		2.29
Noncash and other costs, net	0.30		0.30
Total unit costs	13.19		10.73
Gross profit per pound	$	5.68	$	2.04
Reconciliation to Amounts Reported
			Production
Three Months Ended June 30, 2022	Revenues		and Delivery		DD&A
Totals presented above	$	151	$	78	$	18
Treatment charges and other	(7)		—		—
Noncash and other costs, net	—		2		—
Molybdenum mines	144		80		18
Other miningb	7,043		4,651		473
Corporate, other & eliminations	(1,771)		(1,728)		16
As reported in FCX's consolidated financial statements	$	5,416	$	3,003	$	507
Three Months Ended June 30, 2021
Totals presented above	$	95	$	54	$	17
Treatment charges and other	(6)		—		—
Noncash and other costs, net	—		2		—
Molybdenum mines	89		56		17
Other miningb	7,285		4,519		451
Corporate, other & eliminations	(1,626)		(1,508)		15
As reported in FCX's consolidated financial statements	$	5,748	$	3,067	$	483

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

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

Freeport-McMoRan Inc.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
	Six months ended June 30,
(In millions)	2022		2021
Revenues, excluding adjustmentsa	$	285	$	171
Site production and delivery, before net noncash     and other costs shown below	150		108
Treatment charges and other	13		12
Net cash costs	163		120
DD&A	34		32
Metals inventory adjustments	—		1
Noncash and other costs, net	5		5
Total costs	202		158
Gross profit	$	83	$	13
Molybdenum sales (millions of recoverable pounds)a	15		14
Gross profit per pound of molybdenum:
Revenues, excluding adjustmentsa	$	18.81	$	12.12
Site production and delivery, before net noncash     and other costs shown below	9.90		7.68
Treatment charges and other	0.85		0.85
Unit net cash costs	10.75		8.53
DD&A	2.27		2.27
Metals inventory adjustments	—		0.06
Noncash and other costs, net	0.34		0.36
Total unit costs	13.36		11.22
Gross profit per pound	$	5.45	$	0.90
Reconciliation to Amounts Reported
							Metals
			Production				Inventory
Six months ended June 30, 2022	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	$	285	$	150	$	34	$	—
Treatment charges and other	(13)		—		—		—
Noncash and other costs, net	—		5		—		—
Molybdenum mines	272		155		34		—
Other miningb	15,242		9,441		930		18
Corporate, other & eliminations	(3,495)		(3,443)		32		—
As reported in FCX's consolidated financial statements	$	12,019	$	6,153	$	996	$	18
Six months ended June 30, 2021
Totals presented above	$	171	$	108	$	32	$	1
Treatment charges and other	(12)		—		—		—
Noncash and other costs, net	—		5		—		—
Molybdenum mines	159		113		32		1
Other miningb	13,198		8,251		839		—
Corporate, other & eliminations	(2,759)		(2,511)		31		—
As reported in FCX's consolidated financial statements	$	10,598	$	5,853	$	902	$	1

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

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