10-K 0000831259-26-000012 (2026-02-13) vs 10-K 0000831259-25-000006 (2025-02-14)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 18,947 |
17.5% |
| MD&A | Item 7 | 21,648 |
30.1% |
| Legal Proceedings | Item 3 | 2,532 |
11.2% |
| Accounting Policies | Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3,895 |
12.2% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 230 words changed in this paragraph; it is 34% similar to last year's version.
We recognize that as the climate changes, our operations, workforce, communities, biodiversity and ecosystems, supply chains and customers may be exposed to changes in the frequency, intensity and/or duration of intense storms, drought, flooding (including from sea level rise at our coastal operations), wildfire, wildfire and other extreme weather events and patterns (such as extreme heat). For example, The physical impacts associated with changing climate conditions could amplify existing operational and environmental risks at our operating sites, such as water availability, tailings management, flooding and stormwater management, and infrastructure disruptions. Periodically, we have experienced severe flooding, disruptions to our remote mining operations in Indonesia as a result of flooding and debris flow from heavy rain and landslides in early 2023 at our remote mining operations in Indonesia, which temporarily halted mining and processing work and damaged infrastructure near the milling complex. Such potential physical impacts of climate change on our operations are highly uncertain and would vary by operation based on particular geographic circumstances. For example, at many of our mine sites, climate change is projected to impact local precipitation regimes, resulting in shorter-duration, higher-intensity storm events, and the potential for less precipitation overall. We could face increased operational costs associated with managing additional volumes of storm water during more intense future events, including supply disruption, delays, damage to or inaccessibility of our facilities and increased pricing of consumables and components we purchase. In addition, the potential for overall decreases in precipitation could affect the availability of water needed for our operations, leading to increased operating costs, or in extreme cases, disruptions to our mining operations. For additional information regarding risks relating to availability of water and operational risks inherent in mining, see related risk factors above. landslides.
Source: Item 1A, 10-K 0000831259-26-000012 vs Item 1A, 10-K 0000831259-25-000006
Accounting Policies 216 words changed in this paragraph; it is 41% similar to last year's version.
Environmental Obligations. Environmental expenditures are charged to expense or capitalized, depending upon their future economic benefits. Accruals for such expenditures are recorded when it is probable that obligations have been incurred and the costs can be reasonably estimated. Environmental obligations attributed to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) or analogous state programs are considered probable when a claim is asserted, or is probable of assertion, and FCX, or any of its subsidiaries, have been associated with the site. Other environmental remediation obligations are considered probable based on specific facts and circumstances. FCX’s estimates of these costs are based on an evaluation of various factors, including currently available facts, existing technology, presently enacted laws and regulations, remediation experience, whether or not FCX is a potentially responsible party (PRP) and the ability of other PRPs to pay their allocated portions. With the exception of those obligations assumed in the acquisition of FMC that were initially recorded at estimated fair values (refer to Note 10 for further discussion), environmental obligations are recorded on an undiscounted basis. Where the available information is sufficient to estimate the amount of the obligation, that estimate has been used. Where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. Possible recoveries of some of these costs from other parties are not recognized in the consolidated financial statements until they become probable. Legal costs associated with environmental remediation (such as fees to third-party legal firms for work relating to determining the extent and type of remedial actions and the allocation of costs among PRPs) are included as part of the estimated obligation.
Source: Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000831259-26-000012 vs Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000831259-25-000006
MD&A 158 words changed in this paragraph; it is 45% similar to last year's version.
We have a potential expansion project defined an opportunity to more than double the concentrator capacity of the Bagdad operation in northwest Arizona. Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation. In late 2023, we We completed technical and economic studies, which studies in late 2023 and are updating these studies in advance of a potential investment decision during 2026. These studies indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year at estimated year. Estimated incremental project capital costs of approximately costs, which continue to be reviewed, approximate $3.5 billion. Expanded operations would provide improved efficiency and reduce unit net cash costs through economies of scale. Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and approximately three to four years to complete. The decision of whether to proceed and timing of the potential expansion will take into account overall copper market conditions, availability of labor and other factors, including deployment of our autonomous haul truck fleet conversion expected by year-end 2025 and expanding housing alternatives to support long-range plans. In parallel, we are enhancing local infrastructure and advancing activities for expanded tailings infrastructure projects required under long-range plans in order to advance the potential construction timeline.
Source: Item 7, 10-K 0000831259-26-000012 vs Item 7, 10-K 0000831259-25-000006
Legal Proceedings 117 words changed in this paragraph; it is 58% similar to last year's version.
In 2005, at the direction of the Maricopa County Superior Court directed Court, the Arizona Department of Water Resources (ADWR) to prepare (ADWR), prepared detailed recommendations regarding the delineation of the “subflow” zone of the San Pedro River, a tributary of the Gila River. Subsurface water within the subflow zone is presumed to constitute appropriable subflow rather than groundwater. Although we have minimal interests in the San Pedro River Basin, a decision that re-characterizes groundwater in that basin as appropriable subflow may set a precedent for other river systems in Arizona that could have material implications for many commercial, industrial, municipal and agricultural users of groundwater, including our Arizona operations. In 2017, the court approved ADWR’s proposed subflow zone maps; water pumped from wells located inside the mapped subflow zone is now presumed to be appropriable subflow. No party has appealed that decision. Although our interests in the San Pedro River Basin are limited, the decision to re-characterize groundwater in that basin as appropriable subflow could set a precedent for other river systems in Arizona. Such a precedent could have significant implications for many commercial, industrial, municipal and agricultural users of groundwater, including for our Arizona operations.
Source: Item 3, 10-K 0000831259-26-000012 vs Item 3, 10-K 0000831259-25-000006
Every change, by type
Sentences and paragraphs of FCX's Risk Factors and MD&A, 10-K 2026-02-13 against 10-K 2025-02-14.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
This report contains forward-looking statements in which we discuss our potential future performance, operations and projects. 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; repair and remediation efforts, and phased restart and ramp-up of production and downstream processing following the September 2025 mud rush incident at PT Freeport Indonesia’s (PTFI) Grasberg Block Cave underground mine and the anticipated impact on
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
•Failure to achieve remediation activities, and the phased restart and ramp-up of the Grasberg Block Cave underground mine;
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
tensions or conflicts (including trade policies such as tariffs and other controls on exports and imports), and foreign currency exchange rate fluctuations.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
The provisions of the U.S. Inflation Reduction Act of 2022 (the Act), which became applicable to us on January 1, 2023, include, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15% on the adjusted
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
Additionally, on July 4, 2025, the President signed into law H.R.1 (also referred to as the One Big Beautiful Bill Act), which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain provisions of the Tax Cuts & Jobs Act of 2017. H.R.1 did not have a material impact on our consolidated financial results for the year 2025. The aggregate impact of H.R.1, including how it will be interpreted and applied to us, remains uncertain.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
With the completion of its downstream processing facilities, PTFI is a fully integrated producer of refined copper and gold. Following the September 2025 mud rush incident, smelting operations in Indonesia at both PTFI’s smelter and PT Smelting were temporarily suspended during fourth-quarter 2025 as a result of limited copper concentrate availability. PT Smelting restarted operations in late December 2025 and is expected to operate at reduced rates pending the anticipated second-quarter 2026 restart of mining at the Grasberg Block Cave underground mine. Shipments to PTFI’s smelter are expected to recommence in the second half of 2026, pending the successful ramp up of mining operations. We expect higher variability between PTFI’s production and sales until its downstream processing facilities achieve normalized operating rates.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
Following the expiration of its export license on September 16, 2025, PTFI expects all of its concentrate to be processed by its downstream processing facilities and does not have export licenses for copper concentrate or anode slimes. As such, if the downstream processing facilities are not operational when copper concentrate is available, PTFI could be required to reduce production levels or be subject to increased costs, which could adversely impact our revenues and operations.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
With the completion of PTFI’s downstream processing facilities during 2025, FCX and PTFI have advanced discussions with the Indonesia government for a long-term extension of PTFI’s operating rights beyond the current expiration in 2041. PTFI is preparing its application for a long-term extension expected to cover the life of the resource, which is expected to be submitted during 2026. In connection with the extension, PTFI would pursue additional exploration, conduct studies for future additional development and expand its social programs. FCX expects to maintain its ownership interest in PTFI of approximately 49% through 2041 and hold approximately 37% beginning in 2042, following the transfer of an additional interest in PTFI to an Indonesia state-owned enterprise. FCX expects the existing governance agreements would continue over the life of the resource. We cannot guarantee that PTFI will receive an extension of mining rights beyond 2041 or that such extension will be on the terms expected.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
The mud removal and other remediation activities, and the phased restart and ramp-up of the Grasberg Block Cave underground mine following the September 2025 mud rush incident may not be achieved as planned which could adversely impact our results of operations and financial condition.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
On September 8, 2025, PTFI experienced an unprecedented mud rush incident, during which approximately 800,000 metric tons of wet material entered the Grasberg Block Cave underground mine from the former Grasberg open pit and traveled rapidly to multiple levels of the mine, including a service level where seven team members were later found deceased.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
Mining operations were temporarily suspended to prioritize the recovery of the seven team members fatally injured during the incident and to conduct investigations. Following the September 2025 mud rush incident, PTFI has been engaged in activities to address the incident and advance preparation for a safe and sustainable restart of operations. In late October 2025, PTFI restarted operations at the unaffected Deep Mill Level Zone (DMLZ) and Big Gossan underground mines. Investigations and remedial plans were completed in fourth-quarter 2025 and a phased restart and ramp-up of the Grasberg Block Cave underground mine is anticipated to begin in second-quarter 2026. The incident impacted our results for the second half of 2025, and we expect the incident to have a significant impact on our 2026 operating and financial results.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedRisk Factors
We plan to implement enhanced operating procedures to address the conditions that led to the incident and use information from this unprecedented incident to further enhance risk management processes, including ongoing management and stabilization of conditions in the open pit. Material changes to our operating plans could affect our mineral reserves. In addition, there can be no assurance that other unforeseeable incidents will not occur in the future.
Read it in 10-K 2026-02-13 at sec.gov ↗
RemovedRisk Factors
We have significant net operating losses (NOLs) in the U.S. generated in prior years. These NOLs are available to offset future regular taxable income, which we believe will result in minimal estimated regular income tax liability in the U.S. over the next several years at current metals market prices. As discussed in MD&A and Note 9, the provisions of the U.S. Inflation Reduction Act of 2022 (the Act) became applicable to us on January 1, 2023. The Act includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average annual AFSI exceeding $1.0 billion over a three-year period. In September 2024, the Internal Revenue Service (IRS) issued proposed regulations that provide guidance on the application of CAMT, which are not final and subject to change. Based on the proposed guidance
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
The mining industry is subject to extensive regulation within Indonesia, and there have been major developments in laws and regulations applicable to mining concession holders, some of which have conflicted with PT-FI’s contractual rights and may conflict with PT-FI’s contractual rights in the future.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
In October 2024, a fire occurred during commissioning of PT-FI’s new smelter in Eastern Java, Indonesia, requiring a temporary suspension of smelting operations to complete repairs. Procurement of long-lead items is advanced, and repairs are scheduled to be completed by mid-2025. Current regulations in Indonesia prohibit exports of copper concentrate as of January 1, 2025. Pursuant to the terms of its IUPK regarding force majeure events, PT-FI has requested approval from the Indonesia government to permit the export of copper concentrates in 2025 until the required repairs of its new smelter following the October 2024 fire incident and full ramp-up are complete. Based on discussions with the Indonesia government, PT-FI expects to re-commence exports of copper concentrate during first-quarter 2025, and pursuant to current regulations, would be required to pay a 7.5% export duty on all copper concentrate exports during 2025. If PT-FI does not receive a timely export license or if any limitations on exports or additional export duties resulting from Indonesia regulations were to be implemented prior to PT-FI’s new downstream processing facilities becoming operational, PT-FI could be required to reduce production levels or be subject to increased costs, which could adversely impact our revenues and operations.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
Beginning in 2022, the Indonesia government divided the Indonesia portion of the island of New Guinea from two provinces into a total of six provinces, which has resulted in public protest and civil unrest. For further discussion of violence, civil and religious strife, and activism affecting our operations in Indonesia, see the related risk factor below. Further, we cannot predict the impact of splitting provinces on local and regional regulations, permits and other governmental administrative functions, which could have an adverse impact on our business.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
PT-FI and the Indonesia government continue to engage in discussions regarding the extension of PT-FI’s IUPK beyond 2041. While PT-FI expects to apply for an extension during 2025, pending agreement with MIND ID on a purchase and sale agreement for the transfer in 2041 of an additional 10% interest in PT-FI, we cannot predict whether the application will be successful in extending PT-FI’s IUPK beyond 2041.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
system represents the best alternative for tailings management given the volume of tailings produced and the site-specific conditions of the area.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
information systems. We performed an investigation of the incident and its associated impact and incurred costs to remediate, which were not material. We cannot guarantee that events of a similar nature, with potentially greater exposure, will not occur in the future.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
in liability under or termination of our contracts with third parties, misuse of our intellectual property or other unintended consequences, as discussed in more detail in the risk factor above.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
with these laws and regulations imposes substantial costs, which we expect will continue to increase over time because of increased regulatory oversight, adoption of increasingly stringent environmental standards, and other factors.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
information on climate change conventions, laws, regulations and standards applicable or that may in the future be applicable to FCX or its subsidiaries, refer to Items 1. and 2. “Business and Properties.”
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedRisk Factors
Certain investor advocacy groups, institutional investors, investment funds, creditors and other influential investors are focused on our ESG practices and place importance on the ESG implications of their investments and lending decisions. Our ability to attract capital could be adversely impacted if they incorporate more stringent ESG considerations as a part of their portfolios.
Read it in 10-K 2025-02-14 at sec.gov ↗
RewordedRisk Factors
At December 31, 2024, 2025, our total consolidated debt was $8.9 $9.4 billion, with $1.3 billion coming due in 2027 (see MD&A and Note 6) and our total consolidated cash and cash equivalents was $3.9 billion ($4.7 billion including restricted cash and cash equivalents associated with PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks as described in MD&A and Note 10). $3.8 billion.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Any modifications to In addition, changes in precipitation patterns and other physical conditions could result in changes in our closure and reclamation plans that may be required to address physical climate risks may increase our such conditions, as well as associated financial assurance obligations obligations, and may materially increase the actual costs associated with implementing closure and reclamation such plans at any or all of our active or inactive mine sites or smelter sites.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Extended material declines in market prices of such commodities could have a material adverse effect on our financial results and the value of our assets, may depress the price of our common stock, and may have a material adverse effect on our ability to comply with financial and other covenants in our debt agreements, service our debt and meet our other
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
The occurrence of one or more of these operational risks in connection with our operations may result in the death of, or personal injury or illness to, our employees, other personnel or third parties, the loss of mining equipment, damage to or destruction of mineral properties or production facilities, significant repair costs, monetary losses, deferral or unanticipated fluctuations in production, extensive community disruption (including short- and long-term health and safety risks), loss of licenses, permits or necessary approvals to operate, loss of workforce confidence, loss of infrastructure and services, disruption to essential supplies or delivery of our products, environmental damage and potential legal liabilities, any of which may adversely affect our reputation, business, prospects, results of operations and financial position.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Refer to “Operations – Indonesia” in MD&A and Notes 10 and 11 for a discussion of Indonesia regulatory matters, including those related to export licenses, export duties, export proceeds, smelter assurance bonds and PTFI’s new smelter and precious metals refinery (PMR) (collectively, PTFI’s downstream processing facilities) in Eastern Java, Indonesia.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
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.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Refer to Notes 1 and 10 for further discussion of our environmental obligations and AROs and see the risk factors below relating to the potential physical impacts of climate change and our related obligations as part of our commitment to implementing the Tailings Standard. AROs.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
The use of AI may increase our exposure to cybersecurity risks and additional risks relating to the protection of data, including increased exposure of confidential or otherwise protected information to unauthorized recipients, which could result in liability under or termination of our contracts with third parties, misuse of our intellectual property or other unintended consequences, as discussed in more detail in the risk factor above.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
While we anticipate taking all measures that we deem reasonable and prudent in connection with the development of our underground mines to safely manage production, there can be no assurance that these risks will not cause schedule delays, revised mine plans, injuries or death to persons and persons, damage to property, or increased capital costs, any of which may have a material adverse impact on our cash flows, results of operations and financial condition.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Organizations In addition, organizations that provide information to investors and financial institutions on ESG sustainability-related performance and related matters have developed quantitative and qualitative data collection processes and ratings processes for evaluating companies on companies, which are used by some investors to inform their approach to these matters. investment and voting decisions.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
Prices of consumables used in our operations, such operations (such as natural gas, diesel, coal, other sources of energy, ammonium nitrate, chemical reagents (including reagents, including sulfuric acid), acid, and steel-related products, products), certain components, equipment, parts and components impact other operating supplies and services can fluctuate in price, impacting the costs of production at our operations and the costs of development projects.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedRisk Factors
We also manage 29 9 tailings storage facilities in the U.S. that are inactive or closed (23 (8 with an upstream design, 2 and 1 with a centerline design and 4 with a downstream design) and another 25 45 that are deemed “safely closed” according to the definition in the Tailings Standard (22 with an upstream design and 3 with a centerline design). Standard.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesRisk Factors
We cannot predict the outcome of these investigations, and the outcome of any legal proceeding is inherently uncertain and adverse developments or outcomes can could result in significant monetary damages, penalties, other sanctions or injunctive relief against us, limitations on our property rights, or regulatory interpretations that increase our operating costs, some of which may not be covered by insurance.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesRisk Factors
In addition, in the southern (estuary) portion of the approved tailings management area, mathematical modeling of certain sediment transport scenarios indicates that tailings have the potential to be deposited outside of the approved lateral levees in adjacent mangroves.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesRisk Factors
Our operations, including future expansions or developments, depend on the availability of significant quantities of secure water supplies.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesRisk Factors
Our operations require physical availability and secure legal rights to significant quantities of water, and the increasing pressure on water sources requires us to consider both current and future conditions in our approach.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesRisk Factors
Further, we may be required or expected by our stakeholders and other third parties to consult with and/or obtain consent from Indigenous Peoples for potential significant impacts.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
We believe that we are well positioned for the future as a leading producer of copper with significant copper reserves and resources and a high-quality portfolio of growth projects to provide additional supplies of copper to a growing market. Our experienced team is committed to value creation through solid execution of our plans, operational excellence and advancing opportunities for long-term organic growth.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Our 2025 operations and results were impacted by the September 2025 mud rush incident at the Grasberg minerals district in Central Papua, Indonesia. In late October 2025, PT Freeport Indonesia (PTFI) restarted operations at the unaffected Deep Mill Level Zone (DMLZ) and Big Gossan underground mines. During fourth-quarter 2025, investigations and remedial plans were completed and a phased restart and ramp-up of the Grasberg Block Cave underground mine is anticipated to begin in second-quarter 2026. Refer to “Operations – Indonesia” for further discussion.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
(PMR) (collectively, PTFI’s downstream processing facilities). Refer to “Net Debt” for a reconciliation of consolidated debt and consolidated cash and cash equivalents to net debt.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Based on current estimates, approximately 60% of consolidated copper sales and 75% of consolidated gold sales in 2026 are expected to occur in the second half of the year. For the year 2026, copper and gold production volumes are expected to exceed sales volumes, reflecting deferrals of approximately 100 million pounds of copper and 100 thousand ounces of gold associated with inventory held at PTFI’s smelting operations.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Quarterly unit net cash costs vary with fluctuations in sales volumes by region and realized prices, primarily for gold and molybdenum, and are expected to improve throughout 2026 as PTFI’s operations and smelting activities are restarted.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Following the September 2025 mud rush incident and until PTFI operations return to normal capacity, a portion of PTFI's production and delivery costs will be recognized as idle facility, which are non-inventoriable costs. Idle facility costs and restoration expenses are expected to total $0.9 billion for the year 2026 (including $0.4 billion in first-quarter 2026). Refer to “Operations” for further discussion.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
We are carefully managing operating costs and near-term capital expenditures in connection with revised operating plans at the Grasberg minerals district to manage cash flow and liquidity during the phased ramp-up period.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Copper priced on the LME and COMEX exchanges have historically traded in a narrow range without significant differential. Following U.S. trade policy announcements in 2025, including proposed tariff announcements (refer to “Operations – U.S. Tariffs”), the two benchmark prices traded at wider differentials than historical averages. For the year 2025, the average COMEX copper settlement price was 7% higher than the average LME copper settlement price. To date in 2026 (through February 12, 2026), the two benchmark prices have been similar.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Recent price strength has been influenced by increased speculative buying in several metals, supported by macro factors such as U.S. dollar weakness and expectations for above-trend demand growth. As a result, both LME and COMEX settlement copper prices closed at all-time highs in January 2026 of $6.28 per pound and $6.18 per pound, respectively.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Income taxes involve estimation as our operations are in multiple tax jurisdictions where uncertainties arise in the application of complex tax regulations and our income tax returns are subject to examination by tax authorities in
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Estimates of future cash flows are derived from current business plans, which are developed using near-term metal price forecasts reflective of the current price environment and management’s projections for long-term average
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
d.Net income attributable to common stock includes net charges totaling $354 million ($0.25 per share), primarily associated with idle facility costs, direct recovery expenses and fixed asset impairments associated with the September 2025 mud rush incident at PTFI (refer to “Operations – Indonesia” for discussion of this incident), and charges at legacy oil and gas properties associated with adjustments to abandonment obligations and asset impairments. See below for further discussion of these net charges.
Read it in 10-K 2026-02-13 at sec.gov ↗
RemovedMD&A
Our results for 2024 reflect solid execution of our operating plans and we are committed to enhancing productivity, managing costs and capital and advancing opportunities for long-term profitable growth and value creation. We believe the actions we have taken in recent years to strengthen our balance sheet and maintain flexible organic growth options will allow us to continue to execute our business plans, and reliably and responsibly generate cash flows to pursue value-enhancing organic growth options and return cash to shareholders.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value, and we remain focused on executing our operating and investment plans. Our underground mining operations at the Grasberg minerals district in Indonesia continue to perform well, with copper production increasing in each of the past three years. During 2024, construction of PT Freeport Indonesia’s (PT-FI) new smelter and precious metals refinery (PMR) (collectively, PT-FI’s new downstream processing facilities) in Eastern Java, Indonesia were completed and as part of start-up activities, PT-FI commenced gold production from the PMR in December 2024. In October 2024, during start-up activities of the new smelter, a fire occurred requiring a temporary suspension of smelting operations to complete repairs. PT-FI expects repairs to be completed by mid-2025 and ramp-up to full capacity to be achieved by year-end 2025.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
We believe we benefit from significant copper reserves and resources with embedded growth options, an experienced team and exposure to markets with a favorable fundamental outlook.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
Following are our projected consolidated sales volumes for 2025 and actual consolidated sales volumes for 2024:
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
Major mining projects $2.8 a PT-FI’s new downstream processing facilities 0.6 b Sustaining capital and other 1.6 Total $5.0
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
b.Excludes capitalized interest, commissioning and owner’s costs. Capital expenditures for PT-FI’s new downstream processing facilities are expected to be funded with PT-FI’s cash flows from operations and availability under PT-FI’s revolving credit facility.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
We closely monitor market conditions and will adjust our operating plans, including capital expenditures, to protect our liquidity and preserve our asset values, as necessary.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
On January 1, 2023, the provisions of the U.S. Inflation Reduction Act of 2022 (the Act) became applicable to us. The Act includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average annual AFSI exceeding $1.0 billion over a three-year period.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
In September 2024, the Internal Revenue Service (IRS) issued proposed regulations that provide guidance on the application of the CAMT, which are not final and subject to change. Based on the proposed guidance released by the IRS, we determined that the provisions of the Act did not impact our financial results for the years 2024 or 2023.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
In December 2021, the Organisation for Economic Cooperation and Development (OECD) published a framework for Pillar Two of the Global Anti-Base Erosion Rules, which was designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a minimum level of income
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
tax. Recommendations from the OECD regarding a global minimum income tax and other changes are being considered and/or implemented in jurisdictions where we operate. At current metals market prices, we do not expect enactment of the recommended framework in jurisdictions where we operate to materially impact our financial results.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
considered reclamation and closure costs. At December 31, 2024, AROs recorded in our consolidated balance sheet totaled $3.7 billion.
Read it in 10-K 2025-02-14 at sec.gov ↗
RewordedMD&A
PT-FI’s commissioning, 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; repairs and remediation efforts and full phased restart and ramp-up of its new smelter production and full downstream processing following the September 2025 mud rush incident at PTFI’s Grasberg Block Cave underground mine and the anticipated impact on our business, production, sales, results of operations and operating plans, and recoveries under insurance policies; global market conditions, including trade policies; ore grades and milling rates; production at the PMR; and sales volumes; higher variability between PTFI production and sales; unit net cash costs (credits) and operating costs; capital expenditures; operating plans, including mine sequencing; cash flows; liquidity; potential extension of PT-FI’s PTFI’s IUPK beyond 2041; export licenses, export duties, and export volumes, including PT-FI’s ability to continue exports of copper concentrate until full ramp-up is achieved at its new smelter in Indonesia; timing of shipments of inventoried production; our sustainability-related commitments and targets; our overarching commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; execution achievement of our energy and climate strategies and the underlying assumptions and estimated impacts on our business and stakeholders related thereto; achievement of 2030 climate targets and our 2050 net zero aspiration; improvements in operating procedures and technology innovations and applications; exploration efforts and results; development and production activities, rates and costs; future organic growth opportunities; tax rates; 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 and environmental proceedings; debt repurchases; and the ongoing implementation of our financial policy and future returns to shareholders, including dividend payments (base or variable) and share repurchases.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Revenues, excluding adjustmentsa $ 21.66 $ 20.66 $ 23.71 Site production and delivery, before net noncash 14.75 16.99 14.28 and other costs shown below Treatment charges and other 1.03 0.90 0.85 Unit net cash costs 15.78 17.89 15.13 DD&A 2.77 2.43 2.24 Noncash and other costs, net 0.66 0.73 0.55 Total unit costs 19.21 21.05 17.92 Gross profit (loss) profit per pound $ 2.45 $ (0.39) $ 5.79 Reconciliation to Amounts Reported Production Year Ended December 31, 2024 2025 Revenues and Delivery DD&A Totals presented above $ 792 $ 539 $ 102 Treatment charges and other (38) — — Noncash and other costs, net — 24 — Molybdenum mines 754 563 102 Other miningb 31,738 21,877 2,090 Corporate, other & eliminationsc (6,577) (6,066) 52 As reported in our consolidated financial statements $ 25,915 $ 16,374 $ 2,244 Year Ended December 31, 2024 Totals presented above $ 619 $ 508 $ 73 Treatment charges and other (27) — — Noncash and other costs, net — 22 — Molybdenum mines 592 530 73 Other miningb 30,985 20,712 2,110 Corporate, other & eliminations eliminationsc (6,122) (5,688) 58 As reported in our consolidated financial statements $ 25,455 $ 15,554 $ 2,241 Year Ended December 31, 2023 Totals presented above $ 702 $ 423 $ 66 Treatment charges and other (25) — — Noncash and other costs, net — 16 — Molybdenum mines 677 439 66 Other miningb 28,430 19,206 1,938 Corporate, other & eliminations (6,252) (6,018) 64 As reported in our consolidated financial statements $ 22,855 $ 13,627 $ 2,068
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Year Ended December 31, 2024 2025 (In millions) Co-Product Method By-Product Copper Gold Silver & Othera Total Method Revenues, excluding adjustments $ 6,842 5,463 $ 6,842 5,463 $ 4,389 3,588 $ 218 214 $ 11,449 9,265 Site production and delivery, before net noncash 2,681 1,602 1,028 51 2,681 2,246 1,324 870 52 2,246 and other costs shown below Gold, silver and other by-product By-product credits (4,605) (3,817) — — — — Treatment charges 571 341 219 11 571 225 133 87 5 225 Export duties 457 273 175 9 457 337 197 133 7 337 Royalty on metals 433 260 167 6 433 345 205 135 5 345 Net cash (credits) costs (463) 2,476 1,589 77 4,142 (664) 1,859 1,225 69 3,153 DD&A 1,193 713 457 23 1,193 1,090 b 643 422 25 1,090 Noncash and other costs, net 362 b 217 139 6 362 1,075 c,d 634 416 25 1,075 Total costs 1,092 3,406 2,185 106 5,697 1,501 3,136 2,063 119 5,318 Other revenue adjustments, primarily for pricing 7 7 (1) (1) 5 19 19 14 1 34 on prior period open sales Gross profit $ 5,757 3,981 $ 3,443 2,346 $ 2,203 1,539 $ 111 96 $ 5,757 3,981 Copper sales (millions of recoverable pounds) 1,632 1,632 1,205 1,205 Gold sales (thousands of recoverable ounces) 1,817 1,050 Gross profit per pound of copper/per ounce of gold:
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Revenues, excluding adjustments $ 4.19 4.53 $ 4.19 4.53 $ 2,418 3,418 Site production and delivery, before net noncash 1.64 0.98 566 1.86 1.10 828 and other costs shown below Gold, silver and other by-product By-product credits (2.82) (3.17) — — Treatment charges 0.35 0.21 120 0.19 0.11 83 Export duties 0.28 0.17 96 0.16 127 Royalty on metals 0.27 0.16 92 0.29 0.17 129 Unit net cash (credits) costs (0.28) 1.52 874 (0.55) 1.54 1,167 DD&A 0.73 0.44 252 0.91 b 0.53 402 Noncash and other costs, net 0.22 b 0.13 77 0.89 c,d 0.53 397 Total unit costs 0.67 2.09 1,203 1.25 2.60 1,966 Other revenue adjustments, primarily for pricing 0.01 0.01 (2) 0.02 0.02 13 on prior period open sales Gross profit per pound/ounce $ 3.53 3.30 $ 2.11 1.95 $ 1,213 1,465 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 11,449 9,265 $ 2,681 2,246 $ 1,193 1,090 Treatment charges (245) 326 c 5 230 e — Export duties (457) (337) — — Royalty on metals (433) (345) — — Noncash and other costs, net — 362 1,075 — Other revenue adjustments, primarily for pricing 5 34 — — on prior period open sales Eliminations and other (1) (1) — — 4 Indonesia operations 10,318 3,368 1,193 8,622 3,551 1,094 Other miningd 21,259 17,874 990 miningf 23,870 18,889 1,098 Corporate, other & eliminations (6,122) (5,688) 58 eliminationsg (6,577) (6,066) 52 As reported in our consolidated financial statements $ 25,455 25,915 $ 15,554 16,374 $ 2,241 2,244
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
PT-FI’s PTFI’s ability to export repair mud rush incident-related damage, implement enhanced operating procedures, safely restart, with a phased ramp-up, and sell or inventory copper concentrates through remediation achieve full operating rates of production and full ramp-up of its new smelter in Indonesia; changes in export duties; completion of remediation activities downstream processing on the expected timeline and achieving full ramp-up of the new smelter in Indonesia; full optimize production at the PMR; production rates; timing of shipments; plans; recover amounts under insurance policies; resolve force majeure declarations and maintain relationships with commercial counterparties; price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; changes in our cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions; conditions, including market volatility regarding trade policies and tariff uncertainty; reductions in liquidity and access to capital; changes in tax laws and regulations; political and social risks, including the potential effects of violence in Indonesia, civil unrest in Peru, and relations with local communities and Indigenous Peoples; operational risks inherent in mining, with higher inherent risks in underground mining; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations, including the ability to smelt and refine or inventory; results of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PT-FI’s PTFI’s IUPK to extend mining rights from 2031 through 2041; process relating to the extension of PT-FI’s PTFI’s IUPK beyond 2041; cybersecurity risks; any major public health crisis; labor relations, including labor-related work stoppages and increased costs; compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks, including availability of secure water supplies; impacts, expenses or results from litigation or investigations; tailings management; our ability to comply with our responsible production commitments under specific frameworks; and any changes to such frameworks and other factors described in more detail in Item 1A.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Revenues, excluding adjustments $ 3.93 4.91 $ 3.93 4.91 $ 23.38 21.39 Site production and delivery, before net noncash 3.00 2.65 17.63 3.51 3.10 16.41 and other costs shown below By-product credits (0.49) (0.59) — — Treatment charges 0.12 0.13 0.12 — Unit net cash costs 2.63 2.77 17.63 3.05 3.22 16.41 DD&A 0.30 0.27 1.30 0.40 0.35 1.28 Noncash and other costs, net 0.18 0.16 c 0.16 0.77 0.15 0.38 Total unit costs 3.11 3.20 19.70 3.61 3.72 18.07 Other revenue adjustments, primarily for pricing 0.01 0.01 — — — on prior period open sales Gross profit per pound $ 0.83 1.30 $ 0.74 1.19 $ 3.68 3.32 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 6,249 7,356 $ 4,305 4,765 $ 418 519 Treatment charges (9) 160 (10) 154 — Noncash and other costs, net — 242 212 — Other revenue adjustments, primarily for pricing 13 5 — — on prior period open sales Eliminations and other 63 71 34 46 — North America U.S. copper mines 6,316 4,778 418 7,385 5,177 519 Other miningd 22,791 14,867 1,586 25,107 17,263 1,673 Corporate, other & eliminations (6,252) (6,018) 64 eliminationse (6,577) (6,066) 52 As reported in our consolidated financial statements $ 22,855 25,915 $ 13,627 16,374 $ 2,068 2,244
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Year Ended December 31, 2023 2025 (In millions) By-Product Co-Product Method Method Copper Molybdenuma Otherb Total Revenues, excluding adjustments $ 5,368 6,392 $ 5,368 6,392 $ 710 719 $ 171 245 $ 6,249 7,356 Site production and delivery, before net noncash 4,093 3,621 535 149 4,305 4,566 4,034 551 180 4,765 and other costs shown below By-product credits (669) (765) — — — — Treatment charges 169 161 164 154 — 8 169 10 164 Net cash costs 3,593 3,782 535 157 4,474 3,965 4,188 551 190 4,929 DD&A 418 371 39 8 418 519 463 43 13 519 Noncash and other costs, net 242 212 c 215 24 3 242 195 13 4 212 Total costs 4,253 4,368 598 168 5,134 4,696 4,846 607 207 5,660 Other revenue adjustments, primarily for pricing 13 13 5 5 — — 13 5 on prior period open sales Gross profit $ 1,128 1,701 $ 1,013 1,551 $ 112 $ 3 38 $ 1,128 1,701 Copper sales (millions of recoverable pounds) 1,367 1,367 1,301 1,301 Molybdenum sales (millions of recoverable pounds)a 30 34 Gross profit per pound of copper/molybdenum:
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Year Ended December 31, 2023 2025 (In millions) By-Product Co-Product Method Method Copper Othera Total Revenues, excluding adjustments $ 4,583 5,139 $ 4,583 5,139 $ 526 559 $ 5,109 5,698 Site production and delivery, before net noncash 3,083 2,810 339 3,149 3,024 2,751 333 3,084 and other costs shown below By-product credits (463) (500) — — — Treatment charges 234 234 73 73 — 234 73 Royalty on metals 9 8 7 1 8 9 Net cash costs 2,862 3,051 340 3,391 2,606 2,832 334 3,166 DD&A 459 412 47 459 445 401 44 445 Noncash and other costs, net 92 114 b 87 5 92 107 7 114 Total costs 3,413 3,550 392 3,942 3,165 3,340 385 3,725 Other revenue adjustments, primarily for pricing 71 71 3 74 54 54 1 55 on prior period open sales Gross profit $ 1,241 2,028 $ 1,104 1,853 $ 137 175 $ 1,241 2,028 Copper sales (millions of recoverable pounds) 1,200 1,200 1,073 1,073 Gross profit per pound of copper:
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Revenues, excluding adjustments $ 3.82 4.79 $ 3.82 4.79 Site production and delivery, before net noncash 2.57 2.34 2.82 2.56 and other costs shown below By-product credits (0.39) (0.47) — Treatment charges 0.19 0.19 0.07 0.07 Royalty on metals 0.01 0.01 Unit net cash costs 2.38 2.54 2.43 2.64 DD&A 0.38 0.35 0.41 0.37 Noncash and other costs, net 0.08 0.11 b 0.07 0.10 Total unit costs 2.84 2.96 2.95 3.11 Other revenue adjustments, primarily for pricing 0.06 0.06 0.05 0.05 on prior period open sales Gross profit per pound $ 1.04 1.89 $ 0.92 1.73 Reconciliation to Amounts Reported Production Revenues and Delivery DD&A Totals presented above $ 5,109 5,698 $ 3,149 3,084 $ 459 445 Treatment charges (234) (73) — — Royalty on metals (8) (9) — — Noncash and other costs, net — 92 114 — Other revenue adjustments, primarily for pricing 74 55 — — on prior period open sales Eliminations and other — 1 (2) — South America operations 4,941 3,239 459 5,672 3,196 445 Other miningc 24,166 16,406 1,545 26,820 19,244 1,747 Corporate, other & eliminations (6,252) (6,018) 64 eliminationsd (6,577) (6,066) 52 As reported in our consolidated financial statements $ 22,855 25,915 $ 13,627 16,374 $ 2,068 2,244
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Average Consolidated unit net cash costs (net of by-product credits) credits and excluding idle facility costs and restoration expenses associated with the September 2025 mud rush incident at PTFI) for the North America our copper mines are expected to approximate $3.00 average $1.75 per pound of copper for the year 2025, 2026, based on achievement of current sales volume estimates and cost estimates and assuming an average price prices of $4,000 per ounce of gold and $20.00 per pound of molybdenum. molybdenum for the year 2026.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
The policy includes a base dividend and a performance-based payout framework, whereby up to 50% of available cash flows generated after planned capital spending and distributions to noncontrolling interest would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to us maintaining our net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding debt for PT-FI’s new downstream processing facilities).
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Capital expenditures, including capitalized interest, totaled $4.5 billion in 2025 and $4.8 billion in 2024 2024, and 2023, including include amounts for (i) major mining projects ($2.1 ($2.3 billion in 2024 2025 and $1.8 $2.1 billion in 2023) 2024), primarily associated with the underground development activities and supporting mill and power capital costs in the Grasberg minerals district, district and for PT-FI’s new (ii) PTFI’s downstream processing facilities ($1.2 ($0.6 billion in 2024 2025 and $1.7 $1.2 billion in 2023). 2024).
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesMD&A
Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a further significant expansion project.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesMD&A
We expect to have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next twelve 12 months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable) and any share or debt repurchases.
Read it in 10-K 2026-02-13 at sec.gov ↗
Quiet changesMD&A
We have not elected to not permanently reinvest earnings from our foreign subsidiaries, and we have recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S.
Read it in 10-K 2026-02-13 at sec.gov ↗
