Financial Performance - Fourth-quarter 2024 net income attributable to common stock totaled $274 million, $0.19 per share, and adjusted net income attributable to common stock totaled $450 million, $0.31 per share [2] - Net income attributable to common stockholders for 2024 was $1,889 million, compared to $1,848 million in 2023 [93] - Net income for 2024 was $4.399 billion, up from $3.751 billion in 2023, reflecting improved operational performance [98] - Adjusted net income attributable to common stock for 2024 was $2.146 billion, slightly down from $2.221 billion in 2023 [103] - FCX's consolidated income tax provision for 2024 shows an effective tax rate of 42% with a provision of $520 million, compared to 42% and $724 million in 2023 [108] - FCX estimates a consolidated effective tax rate of 40% for 2025, with tax impacts at 39% for Peru, 36% for Indonesia, and 0% for the U.S. [114] - Net income attributable to noncontrolling interests totaled $447 million in Q4 2024, representing 36% of FCX's consolidated income before taxes [129] - FCX estimates net income attributable to noncontrolling interests to approximate $2.3 billion for 2025, representing 35% of consolidated income before taxes [132] - Net income attributable to noncontrolling interests for Q4 2023 was $619 million, representing 36% of FCX's consolidated income before taxes [129] Production and Sales - Consolidated production in fourth-quarter 2024 totaled 1.04 billion pounds of copper, 432 thousand ounces of gold, and 22 million pounds of molybdenum [2] - Consolidated sales in fourth-quarter 2024 totaled 1.0 billion pounds of copper, 350 thousand ounces of gold, and 18 million pounds of molybdenum [2] - Consolidated sales for 2025 are expected to approximate 4.0 billion pounds of copper, 1.6 million ounces of gold, and 88 million pounds of molybdenum [2] - Incremental copper production from technology and leaching initiatives totaled 50 million pounds in fourth-quarter 2024 and 214 million pounds for the year 2024 [13] - FCX's North America copper sales for 2024 were 1.26 billion pounds, with an estimated 1.4 billion pounds for 2025 [21] - FCX's South America copper sales for 2024 were 1.2 billion pounds, with an expected 1.1 billion pounds for 2025 [30] - PT-FI's Kucing Liar deposit is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and 2041, with capital investments estimated at $4 billion over the next 7-8 years [39] - PT-FI's consolidated copper sales volumes in Q4 2024 were 376 million pounds, down from 511 million pounds in Q4 2023, primarily due to lower ore grades and shipment timing [45] - PT-FI's consolidated gold sales volumes in Q4 2024 were 343 thousand ounces, down from 544 thousand ounces in Q4 2023 [45] - PT-FI's projected sales volumes for 2025 are 1.55 billion pounds of copper and 1.6 million ounces of gold, reflecting reduced operating rates due to planned maintenance projects [46] - Copper production in Q4 2024 was 1,041 million recoverable pounds, with sales of 992 million pounds, compared to 1,095 million pounds produced and 1,116 million pounds sold in Q4 2023 [84] - Gold production in Q4 2024 was 432 thousand recoverable ounces, with sales of 350 thousand ounces, compared to 573 thousand ounces produced and 549 thousand ounces sold in Q4 2023 [84] - Molybdenum production in Q4 2024 was 22 million recoverable pounds, with sales of 18 million pounds, compared to 20 million pounds produced and 22 million pounds sold in Q4 2023 [84] - Total copper production for 2024 was 4,214 million recoverable pounds, slightly up from 4,212 million pounds in 2023 [87] - Gold production in 2024 was 1,880 thousand recoverable ounces, down from 1,993 thousand ounces in 2023 [87] - FCX's mined copper sales in 2024 were 45% in concentrate, 34% as cathode, and 21% as rod, with an average realized copper price of $4.15 per pound in Q4 2024 [118] - At December 31, 2024, FCX had provisionally priced copper sales totaling 133 million pounds at an average price of $3.96 per pound [125] - FCX's net deferred profits on inventories at Atlantic Copper totaled $181 million at December 31, 2024, to be recognized in future periods [127] - Silver sales in South America operations totaled 3.6 million ounces in 2024 at an average realized price of $29.35 per ounce [174] - Silver sales in South America operations totaled 4.1 million ounces in 2023 at an average realized price of $23.57 per ounce [177] - Silver sales in Q4 2024 were 1.4 million ounces at an average realized price of $29.85 per ounce [180] - Silver sales in Q4 2023 were 2.0 million ounces at an average realized price of $23.58 per ounce [183] - Silver sales in 2024 were 6.9 million ounces at an average realized price of $28.52 per ounce [186] - Silver sales in 2023 were 6.0 million ounces at an average realized price of $23.37 per ounce [190] - Molybdenum sales volume remained stable at 30 million recoverable pounds for both 2024 and 2023 [198] Costs and Expenses - Consolidated unit net cash costs for FCX's copper mines are expected to average $1.60 per pound of copper for the year 2025 [12] - Average unit net cash costs for North America copper mines were $3.04 per pound in Q4 2024, expected to approximate $3.00 per pound for 2025 [22][23] - Average unit net cash costs for South America operations were $2.36 per pound in Q4 2024, expected to approximate $2.50 per pound for 2025 [31][32] - PT-FI's unit net cash credits in Q4 2024 were $0.08 per pound of copper, favorable compared to less than $0.01 per pound in Q4 2023, primarily due to higher gold credits [47] - Production and delivery costs for 2024 were $15,554 million, up from $13,627 million in 2023 [93] - PT-FI's new smelter and precious metals refinery incurred $133 million in operational readiness and startup costs in 2024 [94] - Consolidated interest costs for 2024 were $710 million, down from $782 million in 2023 [94] - Total charges for feasibility and optimization studies were $62 million ($0.05 per pound of copper) and $60 million ($0.05 per pound of copper) for metals inventory adjustments [161] - Total charges for feasibility and optimization studies were $107 million ($0.08 per pound of copper) [166] - Nonrecurring charges of $97 million ($0.08 per pound of copper) were incurred in 2024 for labor-related charges at Cerro Verde [175] - Feasibility and optimization studies in 2024 resulted in charges of $57 million ($0.05 per pound of copper) [175] - Noncash and other costs for Indonesia operations in 2024 included $144 million for ARO adjustment and $133 million for operational readiness and startup costs [187] - Noncash and other costs for Indonesia operations in 2023 included $112 million in credits to correct historical PT-FI ARO model inputs and $55 million for an administrative fine [191] - Total costs for molybdenum mines increased to $630 million in 2024 from $530 million in 2023 [198] - Net cash costs for molybdenum mines rose to $535 million in 2024 from $448 million in 2023 [198] - DD&A expenses for molybdenum mines increased to $73 million in 2024 from $66 million in 2023 [198] - Noncash and other costs, net for molybdenum mines increased to $22 million in 2024 from $16 million in 2023 [198] Cash Flow and Capital Expenditures - Operating cash flows totaled $1.4 billion in fourth-quarter 2024 and $7.2 billion for the year 2024 [2] - Capital expenditures in fourth-quarter 2024 totaled $1.2 billion, including $0.6 billion for major mining projects and $0.2 billion for PT-FI's new smelter and precious metals refinery [2] - FCX generated operating cash flows of $1.4 billion in Q4 2024 and $7.2 billion for the full year 2024 [63] - FCX's consolidated operating cash flows for 2025 are estimated to approximate $6.2 billion, based on current sales volume and cost estimates [64] - Capital expenditures for 2025 are expected to approximate $5.0 billion, including $2.8 billion for major mining projects and $0.6 billion for PT-FI's new downstream processing facilities [66] - FCX had $3.9 billion in consolidated cash and cash equivalents at December 31, 2024, with $3.0 billion of availability under its revolving credit facility [62] - FCX's net debt at December 31, 2024, excluding $3.2 billion of debt for PT-FI's new downstream processing facilities, totaled $1.06 billion [71] - FCX declared a total cash dividend of $0.15 per share, consisting of a $0.075 quarterly base dividend and a $0.075 variable performance-based dividend, payable on February 3, 2025 [72] - FCX has 1.4 billion shares outstanding and $3.1 billion available under its share repurchase program as of January 22, 2025 [73] - Cash flow from operating activities rose to $7.160 billion in 2024, compared to $5.279 billion in 2023, indicating stronger cash generation [98] - Capital expenditures for Indonesia operations decreased to $2.908 billion in 2024 from $3.411 billion in 2023, reflecting reduced investment [98] - Net cash used in financing activities was $3.284 billion in 2024, up from $2.650 billion in 2023, driven by higher debt repayments and dividends [98] - FCX's net debt as of December 31, 2024, was $4.289 billion, excluding $3.233 billion for PT-FI's new downstream processing facilities [116] Prices and Realized Values - Average realized prices in fourth-quarter 2024 were $4.15 per pound for copper, $2,628 per ounce for gold, and $22.23 per pound for molybdenum [2] - The average realized price for copper in Q4 2024 was $4.15 per pound, up from $3.81 per pound in Q4 2023 [84] - The average realized price for gold in Q4 2024 was $2,628 per ounce, up from $2,034 per ounce in Q4 2023 [84] - The average realized price for molybdenum in Q4 2024 was $22.23 per pound, up from $20.66 per pound in Q4 2023 [84] - Average realized copper price per pound increased to $4.21 in 2024 from $3.85 in 2023 [87] - Gross profit per pound of molybdenum decreased to $2.04 in Q4 2024 from $2.48 in Q4 2023 [194] - Gross loss per pound of molybdenum was $0.39 in 2024, compared to a gross profit of $5.79 per pound in 2023 [198] Reserves and Assets - FCX's preliminary estimated consolidated recoverable proven and probable mineral reserves at December 31, 2024, include 97.0 billion pounds of copper, 23.0 million ounces of gold, and 3.16 billion pounds of molybdenum [54] - Total assets increased to $54.848 billion in 2024 from $52.506 billion in 2023, driven by growth in property, plant, and equipment [96] - Long-term debt increased to $8.907 billion in 2024 from $8.656 billion in 2023, indicating higher borrowing [96] - Restricted cash and cash equivalents decreased to $1.0 billion in 2024 from $1.3 billion in 2023, due to regulatory changes in Indonesia [96][99] - Total assets at December 31, 2024, were $54.848 billion, with Indonesia operations accounting for $27.309 billion [140] Segment Performance - North America Copper Mines generated $6,060 million in total revenues for the year ended December 31, 2024, with $180 million from unaffiliated customers and $5,880 million from intersegment sales [143] - South America Operations reported total revenues of $4,533 million for 2024, including $3,618 million from Cerro Verde and $915 million from other operations [143] - Indonesia Operations contributed $9,774 million in revenues for 2024, with $544 million from intersegment sales [143] - FCX's total operating income for 2024 was $6,864 million, with $5,622 million from Indonesia Operations and $1,471 million from South America Operations [143] - Capital expenditures for 2024 totaled $4,808 million, with $2,908 million allocated to Indonesia Operations and $1,033 million to North America Copper Mines [143] - North America Copper Mines revenues for Q4 2024 were $1.606 billion, with copper contributing $1.373 billion and molybdenum contributing $175 million [151] - Gross profit for North America Copper Mines in Q4 2024 was $183 million, with copper sales at 320 million recoverable pounds and molybdenum sales at 8 million recoverable pounds [151] - Unit net cash costs for copper in Q4 2024 were $3.04 per pound, while molybdenum unit net cash costs were $15.40 per pound [151] - North America Copper Mines revenues for Q4 2023 were $1.385 billion, with copper contributing $1.209 billion and molybdenum contributing $134 million [154] - Gross profit for North America Copper Mines in Q4 2023 was $128 million, with copper sales at 319 million recoverable pounds and molybdenum sales at 7 million recoverable pounds [154] - Unit net cash costs for copper in Q4 2023 were $2.86 per pound, while molybdenum unit net cash costs were $17.50 per pound [154] - North America Copper Mines revenues for the full year 2024 were $6.211 billion, with copper contributing $5.417 billion and molybdenum contributing $608 million [159] - Gross profit for North America Copper Mines in 2024 was $816 million, with copper sales at 1.263 billion recoverable pounds and molybdenum sales at 30 million recoverable pounds [159] - Unit net cash costs for copper in 2024 were $3.11 per pound, while molybdenum unit net cash costs were $16.20 per pound [159] - South America Operations revenues excluding adjustments were $1.312 billion for the three months ended December 31, 2024, with copper contributing $1.208 billion [167] - South America Operations gross profit was $314 million for the three months ended December 31, 2024, with copper accounting for $283 million [167] - South America Operations gross profit per pound of copper was $1.05 using the by-product method and $0.95 using the co-product method for the three months ended December 31, 2024 [167] - South America Operations revenues excluding adjustments were $1.175 billion for the three months ended December 31, 2023, with copper contributing $1.096 billion [170] - South America Operations gross profit was $181 million for the three months ended December 31, 2023, with copper accounting for $176 million [170] - South America Operations gross profit per pound of copper was $0.63 using the by-product method and $0.62 using the co-product method for the three months ended December 31, 2023 [170] - South America operations reported revenues of $5,171 million in 2024, with production and delivery costs of $3,230 million and DD&A of $446 million [174] - Other mining operations generated revenues of $26,406 million in 2024, with production and delivery costs of $18,012 million and DD&A of $1,737 million [174] - South America operations achieved gross profit of $1,492 million in 2024, with copper sales of 1,177 million recoverable pounds and gross profit per pound of $1.27 [174] - South America operations reported revenues of $4,941 million in 2023, with production and delivery costs of $3,239 million and DD&A of $459 million [177] - Other mining operations generated revenues of $24,166 million in 2023, with production and delivery costs of $16,406 million and DD&A of $1,545 million [177] - South America operations achieved gross profit of $1,241 million in 2023, with copper sales of 1,200 million recoverable pounds and gross profit per pound of $1.04 [177] - Indonesia operations product revenues for Q4 2024 were $2.492 billion, with copper contributing $1.543 billion and gold contributing $901 million [180] - Gross profit for Indonesia operations in Q4 2024 was $1.056 billion, with copper accounting for $638 million and gold for $396 million [180] - Copper sales in Q4 2024 were 376 million recoverable pounds, generating a gross profit of $2.81 per pound [180] - Gold sales in Q4 2024 were 343 thousand recoverable ounces, generating a gross profit of $1,153 per ounce [180] - Indonesia operations product revenues for Q4 2023 were $3.106 billion, with copper contributing $1.947 billion and gold contributing $1.108 billion [183] - Gross profit for Indonesia operations in Q4 2023 was $1.695 billion, with copper accounting for $1.054 billion and gold for $614 million [183] -

Core Viewpoint - Freeport-McMoRan's stock has declined 37% from its all-time high despite copper prices nearing an all-time high, indicating a potential investment opportunity amid market downturns [1] Group 1: Reasons for Stock Decline - The stock's performance is disconnected from copper prices due to two main factors that appear unjustified [2] - A fire at a newly opened smelter in Indonesia has led to operational challenges, including a potential export ban on copper concentrate starting January 1, 2025, requiring permits for exports [3] - The Indonesian government has issued a six-month permit for Freeport to export concentrates while repairs are made to the smelter [4] - Concerns over the recent rise in U.S. copper prices being driven by speculative buying ahead of potential tariffs may have contributed to the stock's decline [5] Group 2: Company Positioning - Freeport-McMoRan is strategically positioned to benefit from U.S. production initiatives and tariff conflicts, with plans for brownfield expansions in Arizona expected to add 650 million pounds of copper annually [6][7] - The company's U.S.-focused leaching initiative aims to recover 800 million pounds of copper annually by 2030, contributing to a projected total production of 4 billion pounds in 2025 [8] Group 3: Long-term Demand for Copper - Copper is essential for various modern economic trends, including electric vehicles, renewable energy, and the Internet of Things, all of which are part of the "electrification of everything" megatrend [9][10] - While individual demand drivers may experience temporary weaknesses, the overall demand for copper is expected to remain strong [11] Group 4: Investment Opportunity - The combination of rising copper prices, favorable volume growth outlook, and long-term demand trends makes Freeport-McMoRan an attractive stock to consider for investment [12] - The current disconnect between the falling stock price and rising copper prices presents a potential opportunity for investors [13]

Core Viewpoint - The price of copper is nearing an all-time high, presenting a strong investment opportunity in Freeport-McMoRan, a major copper and gold miner, particularly due to its U.S. production and potential benefits from market dynamics [1]. Group 1: Copper Price Dynamics - The Chicago Mercantile Exchange (CME) copper price is up 27% year to date, currently around $5.10 per pound, while the London Metal Exchange (LME) price is up almost 14% year to date [2]. - Concerns over potential tariffs on imported copper by the Trump administration have led to increased buying in the U.S. market [3][4]. Group 2: Freeport-McMoRan's Competitive Position - Freeport-McMoRan produces copper primarily in the U.S., which shields it from retaliatory tariffs and allows it to benefit from rising CME prices [5]. - The company’s production volumes for 2024 are projected at 1.246 billion pounds in North America, 1.168 billion pounds in South America, and 1.8 billion pounds in Indonesia [6]. - The unit net cash cost of production is $3.04 per pound in the U.S., compared to $2.36 per pound in South America and a net cash credit of $0.08 per pound in Indonesia, indicating higher leverage to U.S. price increases [6][7]. Group 3: Production Expansion Potential - Freeport-McMoRan has plans to increase U.S. copper production, with a low-cost leaching initiative expected to produce 300 million to 400 million pounds by 2026, up from 214 million pounds in 2024, aiming for 800 million pounds by 2030 [10]. - The company is exploring brownfield expansions in Lone Star, Arizona, which could double current production, and is considering a project in Bagdad, Arizona, that could add 200 million to 250 million pounds by 2029 [11]. Group 4: Financial Outlook - With copper prices at $5 per pound, Freeport-McMoRan is projected to generate $15 billion in EBITDA in 2026 and 2027, suggesting the company is undervalued with a current market cap of $58.1 billion [12].

Core Viewpoint - J.P. Morgan analyst Bill Peterson upgraded Freeport-McMoRan, Inc. to an Overweight rating, raising the price forecast to $52 from $48, driven by tariff-related factors and long-term supply constraints supporting premium pricing for U.S. operations [1] Group 1: Tariff and Pricing Impact - Since the announcement regarding the assessment of U.S. copper imports as a national security risk, COMEX copper has maintained an average premium of approximately 10% over LME prices [2] - The ongoing review is expected to conclude by November 22, which may lead to protective measures for U.S. copper imports [3] Group 2: Financial Contributions and Positioning - Freeport-McMoRan's U.S. operations contribute around 10% of its operating profit for FY24 and 20% of post-tax earnings due to net operating loss benefits [3] - The company is well-positioned compared to peers to capitalize on near-term upside opportunities, even if protective policies do not materialize [4] Group 3: Long-term Outlook - The Commodities team projects widening supply deficits this year and into the next decade, reinforcing a favorable long-term outlook for copper pricing [5] - The expected resumption of concentrate exports and record gold prices are anticipated to boost by-product credits at the Grasberg mine [4]

Company Performance - Freeport-McMoRan (FCX) closed at $39.51, reflecting a +1.7% change from the previous session, outperforming the S&P 500's gain of 0.64% [1] - The stock has decreased by 1.57% over the past month, which is better than the Basic Materials sector's loss of 1.92% and the S&P 500's loss of 7.69% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of $0.29, indicating a 9.38% decrease from the same quarter last year [2] - Revenue is expected to be $5.47 billion, reflecting a 13.46% decline compared to the year-ago quarter [2] Annual Estimates - For the annual period, earnings are estimated at $1.70 per share and revenue at $26.33 billion, representing increases of +14.86% and +3.45% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates are important, as upward revisions indicate analysts' positive outlook on the company's operations and profit generation capabilities [4] - The Zacks Rank system, which evaluates these estimates, has a strong track record, with 1 stocks averaging a +25% annual return since 1988 [6] Valuation Metrics - Freeport-McMoRan has a Forward P/E ratio of 22.88, which is higher than the industry average of 18.26, suggesting it is trading at a premium [7] - The company has a PEG ratio of 0.86, compared to the industry average of 0.84, indicating a favorable growth expectation relative to its price [8] Industry Context - The Mining - Non Ferrous industry, part of the Basic Materials sector, has a Zacks Industry Rank of 182, placing it in the bottom 28% of over 250 industries [9]

Group 1: Copper Market Outlook - Goldman Sachs forecasts a surge in U.S. copper imports due to expected tariffs, predicting a 25% duty on copper imports by year-end, which could lead to a 50-100% increase in net copper imports, adding 200,000 to 300,000 metric tons to domestic inventories by Q3 [1][2] - If this projection holds, U.S. copper stockpiles could rise from 95,000 tons to as much as 400,000 tons, representing around half of global reported inventories, resulting in historically low international market inventory levels [2] - For 2025, Goldman anticipates a global copper deficit of 180,000 tons driven by increased demand for electrification, economic stimulus in China, and slow mine growth, with a more pronounced supply imbalance in the second half of the year likely to catalyze higher prices [3] Group 2: Freeport-McMoRan Insights - Freeport-McMoRan, the largest U.S. copper producer, stands to benefit from the anticipated tariff scenario, especially if copper is designated as a critical mineral, which could unlock over $500 million annually in tax credits under the Inflation Reduction Act [4][5] - The company operates seven copper mines and one of two domestic copper smelters in the U.S., positioning it as a key supplier amid potential import restrictions, although higher production costs domestically due to lower ore grades necessitate policy support [6] - Freeport expects an 8% increase in U.S. copper production by 2025, with plans to double concentrator capacity at its Bagdad operation in Arizona, potentially adding 200-250 million pounds of copper annually [7] Group 3: Strategic Considerations - CEO Kathleen Quirk expressed optimism regarding the Trump administration's potential actions to support domestic production, emphasizing the importance of federal tax incentives for the copper industry [5] - Quirk also indicated interest in possibly returning to the Democratic Republic of Congo for new opportunities, highlighting Freeport's desire to operate any future projects in the region [8]

Group 1 - Freeport-McMoRan (FCX) shares increased by 9.3% to close at $38.16, following a notable trading volume compared to typical sessions, despite a 4.3% loss over the past four weeks [1] - The rally in FCX's stock is attributed to a surge in copper prices due to President Trump's suggestion of a 25% tariff on copper imports, alongside a weaker dollar and China's stimulus measures [2] - FCX is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year decline of 9.4%, with revenues projected at $5.54 billion, down 12.3% from the previous year [2] Group 2 - The consensus EPS estimate for FCX has been revised down by 11.9% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - FCX holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4] - First Quantum Minerals (FQVLF), another company in the non-ferrous mining industry, saw its stock rise by 10.4% to $12.89, but has returned -11.6% over the past month [4]

Core Viewpoint - Freeport-McMoRan Inc. (FCX) is facing challenges due to declining copper prices, high production costs, and downward revisions in earnings estimates, despite having strong financial health and ongoing expansion projects [2][21]. Financial Performance - FCX is currently trading at a forward price/earnings ratio of 21.65X, which is approximately 10% higher than the Zacks Mining - Non Ferrous industry average of 19.77X [1]. - The stock has experienced a 15.7% decline in share price over the past six months, underperforming the industry's decline of 15.3% and the S&P 500's rise of 6.4% [2]. - Operating cash flows for FCX were around $1.4 billion in Q4 2024, with full-year 2024 cash flows climbing 35% year over year to $7.2 billion [15]. Production and Expansion - FCX is focused on expanding its production capacity, with significant projects underway, including a concentrator expansion at Cerro Verde in Peru, which is expected to add 600 million pounds of copper annually [12]. - The company is also evaluating a large-scale expansion at El Abra in Chile and conducting pre-feasibility studies in Arizona to define significant sulfide expansion opportunities [12]. Cost and Pricing Challenges - FCX's consolidated unit net cash costs per pound of copper increased by 9% year over year in Q4 2024, with expectations for further increases in 2025 [18]. - Copper prices fell nearly 12% in Q4 2024, closing at around $4 per pound, influenced by weak demand in China and uncertainties regarding U.S. tariffs [20]. Market Sentiment and Valuation - The Zacks Consensus Estimate for FCX's earnings has been revised downward over the past 60 days, reflecting negative sentiment in the market [9]. - Despite strong financial health, the premium valuation of FCX may not present a compelling investment opportunity at current levels [11]. Dividend and Shareholder Value - FCX offers a dividend yield of approximately 0.8%, with a payout ratio of 20%, indicating a sustainable dividend policy [17]. - The company has distributed $4.7 billion to shareholders through dividends and share purchases since June 30, 2021 [15].

Core Viewpoint - Freeport-McMoRan Inc's shares are experiencing an increase due to an upgrade from Jefferies, which raised its rating from "hold" to "buy" and increased the price target to $48 from $40, driven by improving free cash flow and cost reductions [1] Group 1 - Jefferies upgraded Freeport-McMoRan's rating and price target, indicating positive future growth prospects for the copper producer [1] - Ten out of eighteen analysts still rate Freeport-McMoRan as a "hold," suggesting potential for further upgrades in the future [2] - Options traders are showing bullish sentiment, with a put/call open interest ratio of 0.4, indicating strong short-term call-buying activity [2] Group 2 - Freeport-McMoRan stock is set to open above its 60-day moving average, a significant long-term resistance level, after recovering from a low of $34.89 [3] - The stock remains just below breakeven on both a year-to-date and year-over-year basis, indicating a challenging performance in the broader market context [3]

Production and Revenue - Freeport-McMoRan's copper production increased to 214 million pounds in 2024, up from 144 million pounds in 2023, reflecting successful implementation of new technologies and data analytics [19]. - In 2024, Freeport-McMoRan's consolidated revenues were primarily from copper (74%), gold (17%), and molybdenum (7%) sales [34]. - Copper production from the Morenci mine, Cerro Verde mine, and Grasberg minerals district accounted for 77% of the company's total copper production in 2024 [26]. - PT-FI sold 56% of its copper production in concentrate and 44% as cathode during 2024 [47]. - The company ranked third among the top 10 copper producers, accounting for approximately 6% of estimated total worldwide mined copper production in 2024 [82]. - PT-FI's production from the Grasberg minerals district was 1.8 billion pounds of copper and 1.9 million ounces of gold in 2024, an increase from 1.7 billion pounds of copper and 2.0 million ounces of gold in 2023 [191]. Environmental and Regulatory Compliance - As of December 31, 2024, the company recorded $2.0 billion for environmental obligations and $3.7 billion for asset retirement obligations, with environmental capital expenditures totaling $0.6 billion in 2024 [56]. - The company expects to incur approximately $0.6 billion in environmental costs in 2025, reflecting ongoing compliance with environmental laws and regulations [56]. - PT-FI's Tailings Management Roadmap was approved for the next phase extending from 2025 to 2030, focusing on continuous improvement in tailings management practices [72]. - The company is subject to extensive U.S. and international regulations regarding worker health and safety, with new regulations potentially increasing mining costs [77]. Production Capacity and Infrastructure - The Morenci operation has a milling design capacity of 132,000 metric tons of ore per day, with a total EW tank house capacity of approximately 900 million pounds of copper per year [94]. - The Sierrita operation has a milling design capacity of 100,000 metric tons of ore per day, producing copper and molybdenum concentrate [118]. - The Miami operation has a design capacity of 200 million pounds of copper per year, although it is currently producing from stockpiles [126]. - The Chino operation includes a concentrator with a milling design capacity of 36,000 metric tons of ore per day and a 150 million pound-per-year SX/EW plant [134]. - Cerro Verde operates a 100,000-metric-ton-per-day ROM leach system with a production capacity of approximately 200 million pounds of copper per year [164]. Future Projects and Investments - The potential expansion project at Bagdad aims to increase copper production by 200 to 250 million pounds per year at an estimated capital cost of approximately $3.5 billion [104]. - The company has initiated pre-feasibility studies in the Lone Star district of Safford to explore significant expansion opportunities, with completion expected in 2026 [110]. - PT-FI plans to invest approximately $1 billion in a new gas-fired combined cycle facility over the next three years to reduce Scope 1 GHG emissions [193]. - Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and 2041, with capital investments estimated at $4 billion over the next 7 to 8 years [204]. Production Trends and Changes - Morenci mine produced 0.7 billion pounds of copper and 3 million pounds of molybdenum in 2024, down from 0.8 billion pounds of copper and 3 million pounds of molybdenum in 2023 [95]. - Sierrita's copper production totaled 165 million pounds in 2024, a decrease from 185 million pounds in 2023 and 184 million pounds in 2022 [119]. - Miami's copper production was 9 million pounds in 2024, down from 12 million pounds in 2023 and 11 million pounds in 2022 [127]. - Chino's copper production reached 133 million pounds in 2024, compared to 141 million pounds in 2023 and 130 million pounds in 2022 [135]. - Tyrone's copper production was 43 million pounds in 2024, a decline from 51 million pounds in 2023 and 59 million pounds in 2022 [140]. Technological Advancements - The company is focused on enhancing productivity and managing costs to support long-term profitable growth and value creation [17]. - The company is pursuing the conversion of Bagdad's haul truck fleet to become fully autonomous, with testing expected to begin in Q2 2025 [101]. - The company has committed to maintaining the Copper Mark and/or Molybdenum Mark at all operating sites globally, demonstrating responsible production performance [83]. Financial Transactions - In September 2024, the company purchased 5.3 million shares of Cerro Verde common stock for $210 million, increasing its ownership interest to 55.08% [160].