AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 19/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Substantial reserves, controlled sites and realized incremental leaching production establish assets and operating benefits. Their durable economic superiority over other producers remains unestablished.
durability · — · Long operating history supports asset longevity, but does not establish persistent excess economics. Indonesia extensions remain conditional, including completion of the formal license process.
customer dependency · — · Annual and multi-year contracts demonstrate commercial relationships, but the passages cannot establish customer dependency, switching barriers or a customer-based moat.
erosion resilience · — · Leaching benefits coexist with realized disruption and significant recovery costs. Without an established relative advantage, its resilience to erosion cannot be graded.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Realized copper prices increased from $5.78 per pound in first-quarter 2026 to $6.17 in the second quarter. These favorable observed outcomes track exchange benchmarks; disclosed premiums do not establish sustained discretionary pricing power.
retention · 2/4 · Annual and multi-year contracts and U.S. copper sales of 311 million pounds versus 309 million a year earlier support continuing demand indirectly. They do not establish same-customer renewals or switching friction.
margin resilience · 2/4 · U.S. gross profit per pound improved from $1.24 to $2.76 as realized prices and by-product credits rose, despite higher site costs. Consolidated second-quarter operating income fell from $2.432 billion to $2.003 billion, and substantial restoration costs persisted. Resilience is mixed and dependent on commodity prices and operating availability.
contractual freedom · 1/4 · Principal selling prices are contractually linked to COMEX or LME benchmarks. Premiums offer limited flexibility, while fixed-price customer arrangements are hedged to preserve FCX's benchmark receipts. This is direct evidence of constrained pricing authority.
Predictability86
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 5.02
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 8.08
Financial strength71
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 82.95
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 8.40
- Net debt / operating income (x)
- 0.85
- Current ratio (x)
- 2.29
- cashInterestPaid
- 256.00
- cashInterestCoverage
- 21.91
Capital allocation78
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 20.15
- 3-year average dilution (%)
- -0.09
- 3-year average SBC / revenue (%)
- 0.46
- cashConversionGrade
- 31.89
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half operating cash flow of $3.5 billion exceeded $2.1 billion of capital expenditure; debt proceeds roughly matched repayments and distributions continued. Cash flow included $0.7 billion of insurance proceeds, stated net debt excludes $3.2 billion of project debt, and Kucing Liar requires substantial further investment without completed returns.
incentive alignment · 3/4 · Actual annual incentives use financial, operating and sustainability measures; long-term incentives use ROI and relative shareholder returns. The committee reduced actual 2025 payouts for fatalities and Grasberg challenges, demonstrating applied accountability. Detailed ownership alignment remains incompletely disclosed in the supplied fragments.
execution · 2/4 · Actual incremental leaching production and the August 2026 smelter restart demonstrate achievements. Fatalities, substantial restoration costs and Grasberg throughput at approximately 67% of normalized rates offset them. Full recovery remains a target. This assessment uses operating outcomes as indirect evidence of management execution.
governance · 2/4 · Disclosed independent audit and compensation committees and an actual compensation reduction support functioning oversight. Anti-takeover provisions reduce electoral contestability. The passages establish mixed governance practices, without exceptional demonstrated outcomes over time.
Evidence
42.5 0.6 2.6 South America 45.6 b 0.1 0.9 Indonesiac 24.2 20.0 — Consolidated basisd,e 112.3 20.6 3.5 Net equity interestf 78.6 10.4 3.1 a.Estimated consolidated recoverable copper reserves include 1.4 billion pounds in leach stockpiles and 0.2 billion pounds in mill stockpiles (refer to “Mill and Leach Stockpiles” for further discussion).
Mineral Reserves / December 31, 2025 reserve quantities · Filed 13/02/2026
In the U.S., most of the land occupied by our copper and molybdenum mines, concentrators, SX/EW facilities, smelter, refinery, rod mills, molybdenum roasters and processing facilities is owned by us or is located on unpatented mining claims owned by us.
Operations / U.S. land ownership and mining claims · Filed 13/02/2026
Morenci is an open-pit copper and molybdenum mining complex that has been in continuous operation since 1939 and previously was mined through underground workings.
Operations / Morenci operating history · Filed 13/02/2026
Long-Term Mining Rights. In February 2026, we and PTFI entered into a Memorandum of Understanding (MOU) with the Indonesia government for a life of resource extension of operating rights in the Grasberg minerals district beyond the current expiration in 2041.
Indonesia / February 2026 mining-rights MOU · Filed 06/08/2026
In June 2026, PTFI submitted its application for extension of its IUPK, and FCX and PTFI are working with the Indonesia government to complete the formal license process.
Long-Term Mining Rights / June 2026 extension application · Filed 23/07/2026
b.Includes 17.5 billion pounds of recoverable copper associated with a potential mill project at El Abra (refer to “Operations – El Abra” for further discussion).
Mineral Reserves / potential El Abra mill project · Filed 13/02/2026
As a result, PTFI’s current long-term mine plan and planned operations are based on the assumption that PTFI will abide by the terms and conditions of the IUPK and will be granted the 10-year extension from 2031 through 2041 (refer to Note 11 for further discussion).
Mineral Reserves / conditional 2031–2041 extension · Filed 13/02/2026
If we are not able to satisfactorily resolve the issues being addressed in the adjudications, our water uses could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources.
Risk Factors / potential Arizona water curtailment · Filed 13/02/2026
During third-quarter 2026, mill throughput averaged approximately 140,000 metric tons of ore per day (approximating 67% of normalized rates prior to the September 2025 incident), including approximately 70,000 metric tons of ore per day from the Grasberg Block Cave.
October 2, 2026 operational update / third-quarter Grasberg throughput · Filed 02/10/2026
In addition, if the market prices for the commodities we produce decline from assumed levels, if production costs increase or recovery rates decrease, or if applicable laws and regulations are adversely changed, there can be no assurance that the indicated level of recovery will be realized or that mineral reserves can be mined or processed profitably.
Risk Factors / economic recoverability of reserves · Filed 13/02/2026
Incremental copper production from these initiatives totaled 47 million pounds in second-quarter 2026 and 101 million pounds for the first six months of 2026.
Leaching and Technology Innovation Initiatives / realized incremental production · Filed 06/08/2026
We are targeting reaching an annual run rate of 300 million pounds of copper from these initiatives by the end of 2026, with potential for further significant increases in recoverable metal in future years.
Leaching and Technology Innovation Initiatives / year-end run-rate target · Filed 06/08/2026
At normal operating rates, PTFI’s underground operations produce approximately 1.7 billion pounds of copper and 1.3 million ounces of gold per year and are among the lowest cost operations in the world.
Indonesia / issuer description of normalized output and cost position · Filed 23/07/2026
52 Table of Contents U.S. Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs Three Months Ended June 30, 2026 (In millions) By-Product Co-Product Method Method Copper Molybdenuma Otherb Total Revenues, excluding adjustments $ 1,946 $ 1,946 $ 268 $ 62 $ 2,276 Site production and delivery, before net noncash and other costs shown below 1,152 979 177 41 1,197 By-product credits (285) — — — — Treatment charges 47 44 — 3 47 Net cash costs 914 1,023 177 44 1,244 DD&A 135 121 12 2 135 Noncash and other costs, net 45 c 41 4 — 45 Total costs 1,094 1,185 193 46 1,424 Other revenue adjustments, primarily for pricing on prior period open sales 6 6 — — 6 Gross profit $ 858 $ 767 $ 75 $ 16 $ 858 Copper sales (millions of recoverable pounds) 311 311 Molybdenum sales (millions of recoverable pounds)a 10 Gross profit per pound of copper/molybdenum: Revenues, excluding adjustments $ 6.25 $ 6.25 $ 28.18 Site production and delivery, before net noncash and other costs shown below 3.71 3.15 18.60 By-product credits (0.92) — — Treatment charges 0.15 0.14 — Unit net cash costs 2.94 3.29 18.60 DD&A 0.43 0.39 1.26 Noncash and other costs, net 0.15 c 0.13 0.47 Total unit costs 3.52 3.81 20.33 Other revenue adjustments, primarily for pricing on prior period open sales 0.03 0.03 — Gross profit per pound $ 2.76 $ 2.47 $ 7.85 Reconciliation to Amounts Reported Revenues Production and Delivery DD&A Totals presented above $ 2,276 $ 1,197 $ 135 Treatment charges — 47 — Noncash and other costs, net — 45 — Other revenue adjustments, primarily for pricing on prior period open sales 6 — — Eliminations and other (1) 3 — U.S.
Product Revenues and Production Costs / U.S. second-quarter 2026 · Filed 06/08/2026
53 Table of Contents U.S. Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs Three Months Ended June 30, 2025 (In millions) By-Product Co-Product Method Method Copper Molybdenuma Otherb Total Revenues, excluding adjustments $ 1,485 $ 1,485 $ 171 $ 51 $ 1,707 Site production and delivery, before net noncash and other costs shown below 1,063 942 131 40 1,113 By-product credits (171) — — — — Treatment charges 47 45 — 2 47 Net cash costs 939 987 131 42 1,160 DD&A 118 105 10 3 118 Noncash and other costs, net 50 c 46 4 — 50 Total costs 1,107 1,138 145 45 1,328 Other revenue adjustments, primarily for pricing on prior period open sales 2 2 — (1) 1 Gross profit $ 380 $ 349 $ 26 $ 5 $ 380 Copper sales (millions of recoverable pounds) 309 309 Molybdenum sales (millions of recoverable pounds)a 9 Gross profit per pound of copper/molybdenum: Revenues, excluding adjustments $ 4.81 $ 4.81 $ 19.87 Site production and delivery, before net noncash and other costs shown below 3.44 3.05 15.24 By-product credits (0.55) — — Treatment charges 0.15 0.15 — Unit net cash costs 3.04 3.20 15.24 DD&A 0.38 0.34 1.16 Noncash and other costs, net 0.16 c 0.15 0.45 Total unit costs 3.58 3.69 16.85 Other revenue adjustments, primarily for pricing on prior period open sales 0.01 0.01 — Gross profit per pound $ 1.24 $ 1.13 $ 3.02 Reconciliation to Amounts Reported Revenues Production and Delivery DD&A Totals presented above $ 1,707 $ 1,113 $ 118 Treatment charges (3) 44 — Noncash and other costs, net — 50 — Other revenue adjustments, primarily for pricing on prior period open sales 1 — — Eliminations and other 9 7 — U.S.
Product Revenues and Production Costs / U.S. second-quarter 2025 · Filed 06/08/2026
Diluted weighted-average common shares outstanding
1,443
1,443
Idle facility and restoration costs totaled $284 million in second-quarter 2026 and $690 million for the first half of 2026, which were excluded from consolidated net cash costs.
Results / actual idle facility and restoration costs excluded from net cash costs · Filed 23/07/2026
FCX’s average realized copper price was $6.17 per pound in second-quarter 2026, reflecting copper sales from South America and Indonesia operations that are generally based on quoted LME monthly average settlement copper prices, which averaged $6.05 per pound in second-quarter 2026, and copper sales from U.S.
Derivative Instruments / second-quarter realized copper price and LME benchmark · Filed 23/07/2026
FCX’s average realized copper price was $5.78 per pound in first-quarter 2026, reflecting copper sales from South America and Indonesia operations, which are generally based on quoted LME monthly average settlement copper prices, which averaged $5.83 per pound in first-quarter 2026, and copper sales from U.S.
Derivative Instruments / first-quarter realized copper price and LME benchmark · Filed 23/04/2026
Cathode and rod contract prices are generally based on the COMEX monthly average settlement prices for the month of shipment and include a premium.
Sales Contracts / COMEX-linked cathode and rod prices with premiums · Filed 13/02/2026
dollar-denominated, annual and multi-year contracts.
South America Sales / annual and multi-year contract duration · Filed 13/02/2026
Substantially all of our South America copper concentrate and cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) primarily based on quoted LME monthly average settlement copper prices.
South America Sales / benchmark-linked final contract pricing · Filed 13/02/2026
FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested.
Financial Instruments / hedging preserves COMEX receipts · Filed 06/08/2026
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (In Millions, Except Per Share Amounts) Revenues $ 7,029 $ 7,582 $ 13,263 $ 13,310 Cost of sales: Production and delivery 4,320 4,282 8,385 8,038 Depreciation, depletion and amortization 523 668 1,037 1,134 Total cost of sales 4,843 4,950 9,422 9,172 Selling, general and administrative expenses 135 127 297 281 Exploration and research expenses 53 46 91 85 Environmental obligations and shutdown costs 13 27 30 37 Gain on PTFI mud rush incident insurance settlement — — (699) — Gain on sale of assets (18) — (18) — Total costs and expenses 5,026 5,150 9,123 9,575 Operating income 2,003 2,432 4,140 3,735 Interest expense, net (95) (82) (209) (152) Other income, net 22 41 33 99 Income before income taxes and equity in affiliated companies’ net earnings 1,930 2,391 3,964 3,682 Provision for income taxes (544) (850) (1,197) (1,350) Equity in affiliated companies’ net earnings 5 6 11 8 Net income 1,391 1,547 2,778 2,340 Net income attributable to noncontrolling interests (407) (775) (913) (1,216) Net income attributable to common stockholders $ 984 $ 772 $ 1,865 $ 1,124 Net income per share attributable to common stockholders: Basic $ 0.68 $ 0.53 $ 1.29 $ 0.78 Diluted $ 0.68 $ 0.53 $ 1.29 $ 0.77 Weighted-average shares of common stock outstanding: Basic 1,438 1,437 1,439 1,438 Diluted 1,443 1,443 1,444 1,444 Dividends declared per share of common stock $ 0.15 $ 0.15 $ 0.30 $ 0.30 The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Income / second-quarter and first-half results · Filed 06/08/2026
Operating Activities
For the first six months of 2026, we generated operating cash flows of $3.5 billion, net of $0.5 billion for working capital and other uses, and including $0.7 billion in pre-tax proceeds collected by PTFI for an insurance settlement associated with the September 2025 external mud rush incident.
Capital Resources / first-half operating cash flow including insurance · Filed 06/08/2026
Capital expenditures, including capitalized interest, totaled $2.1 billion for the first six months of 2026 and $2.4 billion for the first six months of 2025, and include amounts for major projects ($1.3 billion for the first six months of 2026 and $1.2 billion for the first six months of 2025), primarily associated with underground development activities and supporting mill and power capital costs in the Grasberg minerals district.
Investing Activities / actual first-half capital expenditures · Filed 06/08/2026
copper mines (496) (528) South America operations (285) (177) Indonesia operations (972) (1,444) Molybdenum mines (49) (46) Other (275) (238) Acquisition of additional ownership interest in Cerro Verde (107) — Other, net 7 1 Net cash used in investing activities (2,177) (2,432) Cash flow from financing activities: Proceeds from debt 2,077 1,630 Repayments of debt (2,072) (1,338) Finance lease payments (24) (15) Cash dividends and distributions paid: Common stock (434) (433) Noncontrolling interests (359) (625) Treasury stock purchases (203) (107) Proceeds from exercised stock options 22 2 Payments for withholding of employee taxes related to stock-based awards (44) (22) Debt issuance costs (11) — Net cash used in financing activities (1,048) (908) Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents 318 (87) Cash and cash equivalents and restricted cash and cash equivalents at beginning of year 4,173 4,911 Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 4,491 $ 4,824 The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Cash Flows / debt, distributions and repurchases · Filed 06/08/2026
At June 30, 2026, our net debt totaled $2.1 billion, which excludes $3.2 billion of debt for PTFI’s downstream processing facilities.
Financial Policy / project debt excluded from stated net debt · Filed 06/08/2026
At June 30, 2026, PTFI had incurred approximately $1.4 billion for Kucing Liar development, and capital investments are estimated to approximate an additional $4 billion through 2033 (averaging approximately $0.5 billion per year).
Kucing Liar / incurred development spending and remaining investment estimate · Filed 06/08/2026
Under our executive compensation program, the primary elements of the performance-based pay are: (1) AIP awards, which use three categories of pre-established performance metrics: (a) financial, (b) operational and (c) sustainability, and (2) LTIP awards, which focus on the company’s achievements with respect to ROI, a key financial metric, as well as relative TSR.
Executive Compensation / actual annual and long-term incentive structure · Filed 23/04/2026
The committee exercised discretion to reduce the payout to 66.7% of target for our CEO and our chairman, and 90% of target for our other NEOs in light of the work-related fatalities during 2025 and the challenges resulting from the Grasberg mud rush incident, as discussed on page 42.
2025 Compensation Results / discretionary payout reductions · Filed 23/04/2026
FINANCIAL § Consolidated adjusted EBITDA OPERATIONAL § Copper sales § Gold sales § Consolidated unit net cash costs § Manyar smelter concentrate feed SUSTAINABILITY § Safety – TRIR (15%) § Sustainability scorecard (10%) § Annual cash awards capped at a multiple of base salary (target awards vary by NEO ranging from 100% to 150% of base salary; maximum for all - 175% of target) LTIP PSUs § Payable in shares of stock after a three-year performance period, all of which are at-risk based on performance measured by a combination of ROI and TSR relative to our performance peers § PSU payout range is 0% to 225% of target depending on achievement against the performance goals § Represent the largest target component of our LTIP awards for our CEO and our Chairman (each 75%) and CFO (60%), and half for our other NEOs (50%) 2023 - 2025 PSUs paid out at 125% of target, as discussed on page 46.
2025 Compensation Results / performance metrics and realized PSU payout · Filed 23/04/2026
The board also has determined that each of the members of the audit and compensation committees satisfies the heightened independence and qualification requirements applicable to members of such committees as set forth in the applicable NYSE listing standards and SEC rules.
Board Independence / audit and compensation committee qualifications · Filed 23/04/2026
These provisions could also discourage proxy contests and make it more difficult for stockholders to elect directors other than the candidates nominated by the Board.
Risk Factors / anti-takeover provisions and director elections · Filed 13/02/2026
While we performed better than our target on reportable safety incidents and reduced the number of high-risk incidents, our safety performance was overshadowed by the fatalities following the Grasberg mud rush incident and two additional fatalities in 2025.
2025 Safety Review / achieved incident improvements and actual fatalities · Filed 23/04/2026
PTFI’s smelter in Eastern Java, which was temporarily suspended following the September 2025 Grasberg incident, successfully re-commenced operations in late August 2026.
October 2, 2026 operational update / actual August smelter restart · Filed 02/10/2026
FCX continues to expect to reach 80% of capacity in mid-2027 and approach full capacity by year-end 2027.
October 2, 2026 operational update / prospective capacity recovery milestones · Filed 02/10/2026
We believe our competitive position is based on the size, quality and grade of our ore bodies and our ability to manage costs compared with other producers.
Competition / management's explanation of competitive position · Filed 13/02/2026
