Key Takeaways FCX posted Q2 net income of $772M and adjusted EPS of 54 cents, topping the consensus estimate. Revenue rose 14.5% year over year to $7.58B, aided by stronger copper and gold prices. Copper production fell 7.1%, but sales rose 9.1% on shipment timing, while gold sales jumped 44.6%.Freeport-McMoRan Inc. (FCX) recorded net income of $772 million or 53 cents per share for second-quarter 2025, up around 25.3% from $616 million or 42 cents in the year-ago quarter.Barring one-time items, adjusted ...

Financial Data and Key Metrics Changes - Freeport McMoRan reported strong margins and cash flows during the second quarter, with quarterly EBITDA of $3.2 billion and operating cash flows of $2.2 billion [12][50] - The average copper realization price was over $4.5 per pound, approximately $0.20 per pound above international benchmark pricing [13] - Net unit cash production costs improved to $1.13 per pound, significantly better than previous guidance and last year's second quarter [12][49] Business Line Data and Key Metrics Changes - Sales volumes of copper and gold exceeded production, with copper sales in the second half expected to be nearly 10% higher than the first half [13][48] - The startup of the new copper smelter in Indonesia was a major milestone, with the first cathodes expected by the end of the month [14][31] - The leach initiative at the U.S. Morenci mine is projected to produce 800 million pounds per annum, with ongoing trials showing promising results [15][36] Market Data and Key Metrics Changes - Copper prices averaged $4.32 on the London Metals Exchange and $4.72 on the U.S. COMEX exchange during the quarter [21] - The U.S. copper premium has tripled from second quarter levels, providing an annual financial benefit of approximately $1.7 billion on U.S. sales [26][27] - Global copper demand continues to grow, driven by electrification, AI technology, and infrastructure investments, with China and India being significant markets [22][23] Company Strategy and Development Direction - Freeport is committed to its long-term strategy focused on copper production, with a strong emphasis on organic growth and operational efficiency [8][20] - The company is advancing several major projects in the Americas, including expansions at the Baghdad mine and Alabra [20][46] - Freeport aims to enhance its position as a critical mineral supplier, leveraging its integrated operations and innovative technologies [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong financial performance, with expectations for volume growth and lower costs in the coming years [13][14] - The company is closely monitoring the impact of tariffs on costs, estimating a potential 5% impact but emphasizing ongoing efficiency initiatives [70][72] - Management highlighted the importance of the U.S. government's recognition of copper as a critical mineral and the potential for incentives to boost domestic production [78][80] Other Important Information - Freeport repurchased 1.5 million shares during the second quarter, with a total of 2.9 million shares repurchased in the first half of the year [16][54] - The company has a solid balance sheet with no significant debt maturities until 2027, allowing for flexibility in capital allocation [54][56] - The completion of the new smelter in Indonesia positions Freeport as a fully integrated producer globally, enhancing its operational capabilities [31][32] Q&A Session Summary Question: Changes in mine plan and modeling updates - Management explained that quarterly updates to the forecast are standard, with recent recalibrations reflecting variations in ore grades and recovery rates [60][61] Question: Impact of tariffs on North American costs - Management acknowledged monitoring tariff impacts, estimating a 5% potential increase in costs but emphasized ongoing efficiency improvements [70][72] Question: Discussions with U.S. administration regarding financing - Management confirmed ongoing discussions with U.S. authorities about Freeport's role as a major copper producer and potential incentives for domestic production [78][80] Question: Internal cost of operating the new smelter - Management indicated that the operating cost of the new smelter is approximately $0.27 per pound, with additional revenues expected from processing concentrates [86][87] Question: Potential for refined copper shipments from Indonesia to the U.S. - Management noted that historically, Indonesia has not shipped significant refined copper to the U.S., but they will evaluate future opportunities based on market conditions [90][92] Question: Share repurchase pace and gold guidance confidence - Management stated that share repurchases are aligned with their financial policy, and they remain confident in gold production guidance despite recent variability [101][105]

Financial Performance - Freeport-McMoRan reported $7.58 billion in revenue for the quarter ended June 2025, a year-over-year increase of 14.5% [1] - The EPS for the same period was $0.54, compared to $0.46 a year ago, indicating a positive growth trend [1] - The reported revenue exceeded the Zacks Consensus Estimate of $7.12 billion, resulting in a surprise of +6.47% [1] - The company delivered an EPS surprise of +17.39%, with the consensus EPS estimate being $0.46 [1] Key Metrics - Gold sales on a consolidated basis were 522.00 Koz, surpassing the average estimate of 498.98 Koz [4] - Molybdenum production in South America (Cerro Verde) was 4.00 Mlbs, below the average estimate of 6.67 Mlbs [4] - Molybdenum production as a by-product in North America was 9.00 Mlbs, exceeding the average estimate of 7.67 Mlbs [4] - Total net cash cost per pound of copper was $1.13, lower than the average estimate of $1.30 [4] Revenue Breakdown - Revenues from Indonesia reached $3.42 billion, exceeding the average estimate of $3.16 billion, with a year-over-year change of +50.7% [4] - Revenues from molybdenum were $180 million, compared to the average estimate of $254.9 million, reflecting a +30.4% year-over-year change [4] - Revenues from South America copper mines were $1.26 billion, in line with the average estimate, but represented a -16.6% year-over-year change [4] - Revenues from North America copper mines were $1.03 billion, significantly lower than the estimated $1.59 billion, marking a -33% change compared to the previous year [4] - Revenues from Rod & Refining were $1.7 billion, slightly above the average estimate of $1.63 billion, with a -0.2% year-over-year change [4] - Revenues from Atlantic Copper Smelting & Refining were $818 million, exceeding the average estimate of $786.41 million, with a -9.1% year-over-year change [4] - Corporate, other & eliminations reported revenues of $-1.51 billion, better than the estimated $-1.73 billion, with a +4.6% year-over-year change [4] Stock Performance - Freeport-McMoRan shares returned +9% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Freeport-McMoRan reported quarterly EBITDA of $3.2 billion and operating cash flows of $2.2 billion, with net unit cash production costs at $1.13 per pound, significantly improved from previous guidance and last year's second quarter [10][11][12] - The average copper realization price was over $4.5 per pound, approximately $0.20 per pound above international benchmark pricing [11] - The company expects copper sales in the second half of the year to be nearly 10% higher than the first half volumes [11][46] Business Line Data and Key Metrics Changes - Sales of copper and gold exceeded forecasts, with a net credit for operating costs at Grasberg of $0.99 per pound [10][37] - The startup of the new copper smelter in Indonesia was a significant milestone, with production of first cathodes expected by the end of the month [12][29] - The leach initiative is projected to achieve a run rate of £300 million by the end of the year, targeting £800 million per annum [15][34] Market Data and Key Metrics Changes - Copper prices averaged $4.32 on the London Metals Exchange and $4.72 on the U.S. COMEX exchange during the quarter [18] - The U.S. copper premium has tripled from second quarter levels, providing an approximate $1.7 billion annual financial benefit on U.S. sales [24][25] - Global copper demand continues to benefit from trends in electrification, AI technology, and decarbonization, with China and India being major growth markets [20][21] Company Strategy and Development Direction - Freeport-McMoRan is committed to its long-term strategy focused on copper production, with significant organic growth opportunities in the U.S. and a strong position in Indonesia and South America [6][9] - The company is advancing three major project opportunities in the Americas and is focused on innovation and technology to enhance productivity and cost performance [17][43] - The company aims to boost domestic copper supplies and is actively working on legislative recognition of copper as a critical mineral [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong financial performance, driven by high copper demand and successful operational initiatives [11][12] - The impact of tariffs on costs is being closely monitored, with an estimated potential 5% impact on operating costs [71] - The company is optimistic about the future, with expectations for increased production and lower costs in the coming years [32][46] Other Important Information - The company repurchased 1.5 million shares during the second quarter, with a total of 2.9 million shares repurchased in the first half of the year [14] - Freeport-McMoRan has a solid balance sheet with investment-grade ratings and no significant debt maturities until 2027 [53] Q&A Session Summary Question: Changes in mine plan and modeling updates - Management updates quarterly forecasts and has recalibrated the Grasberg ore grade model due to observed differentials in recovery rates [60][61] Question: Impact of tariffs on cost outlook - Tariffs are being monitored closely, with a potential 5% impact on costs, but the company is focused on driving efficiencies and cost reductions [71][73] Question: Discussions with the U.S. administration regarding financing or incentives - The company has engaged with U.S. government representatives to discuss its role as a major copper producer and potential incentives for domestic production [80][81] Question: Potential tariff exemptions for refined copper - No known exemptions for refined copper are currently anticipated, and the company is awaiting further details on tariff implementation [84] Question: Internal cost to operate the new smelter in Indonesia - The operating cost of the new smelter is estimated at approximately $0.27 per pound, with additional revenues expected from processing [88] Question: Thoughts on building a smelter in the U.S. - The company is studying the potential for expanding the Miami smelter but emphasizes the near-term opportunity lies in the leach initiative [95][98]

Company Performance - Freeport-McMoRan reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.46 per share a year ago, representing an earnings surprise of +17.39% [1] - The company posted revenues of $7.58 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.47%, compared to revenues of $6.62 billion in the same quarter last year [2] - Over the last four quarters, Freeport-McMoRan has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Freeport-McMoRan shares have increased approximately 20.3% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] - The current status of estimate revisions for Freeport-McMoRan translates into a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.56 on revenues of $7.32 billion, and for the current fiscal year, it is $1.76 on revenues of $27.94 billion [7] - The outlook for the Mining - Non Ferrous industry, where Freeport-McMoRan operates, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance & Outlook - FCX reported strong Q2 2025 performance with Adjusted EBITDA of $3.2 billion[14] and operating cash flow of $2.2 billion[14] - Copper sales for Q2 2025 were 1,016 million lbs[14], and gold sales were 522,000 ozs[14] - The average copper realization price was $4.54/lb[14], and the average gold realization price was $3,291/oz[14] - Unit net cash costs were $1.13/lb in Q2 2025[14], significantly below April 2025 guidance[15] - The company anticipates approximately $7 billion in operating cash flows for the second half of 2025, assuming a copper price of $4.40/lb[95] Operational Highlights & Growth Initiatives - First copper cathode production was achieved at the new Indonesia smelter in July 2025[13, 45] - The company is targeting a run rate of 300 million lbs per annum by year-end 2025 from low-cost leaching initiatives[17, 45] - Grasberg ore grade modeling revisions resulted in a slight decrease in estimated gold production[47], with a 3% reduction in the 5-year total[47] - Organic growth options are estimated to total 2.5 billion lbs per annum for copper and 0.5 million ozs per annum for gold[49] Strategic Positioning & Market Factors - The company emphasizes the importance of copper as the "Metal of Electrification," with over 65% of global copper usage in electricity-related applications[26] - A potential 50% tariff on copper imports into the U S could significantly increase cash flow[34, 35] - The company highlights its position as a dominant U S copper producer, accounting for approximately 70% of total U S refined production[39]

[Freeport Q2 2025 Earnings Report](index=1&type=section&id=Freeport%20Reports%20Second-Quarter%20and%20Six-Month%202025%20Results) [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) The company reported strong Q2 2025 results driven by robust operating performance and favorable pricing Q2 2025 Key Financial and Operating Metrics | Metric | Q2 2025 Value | | :--- | :--- | | Net Income (attributable to common stock) | $772 million | | Diluted EPS | $0.53 | | Adjusted Net Income | $790 million | | Adjusted Diluted EPS | $0.54 | | Copper Sales | 1.0 billion lbs | | Gold Sales | 522 thousand oz | | Average Realized Copper Price | $4.54 / lb | | Average Unit Net Cash Costs (Copper) | $1.13 / lb | | Operating Cash Flows | $2.2 billion | - A major milestone was achieved with the **start-up of the new large-scale copper smelter in Indonesia** during the second quarter[3](index=3&type=chunk) - The company is advancing **innovative copper leaching initiatives** and leveraging new technologies to grow production with lower capital intensity[3](index=3&type=chunk)[17](index=17&type=chunk) - During Q2 2025, FCX repurchased **1.5 million shares of common stock for $52 million**[1](index=1&type=chunk) [Consolidated Financial & Operating Performance](index=2&type=section&id=Consolidated%20Financial%20%26%20Operating%20Performance) Consolidated performance improved YoY with higher revenues and lower unit costs, benefiting from by-product credits [Summary Financial Data](index=2&type=section&id=Summary%20Financial%20Data) Q2 2025 revenues grew 14.5% YoY to $7.58 billion, with net income increasing 25.3% to $772 million Summary Financial Data (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $7,582 | $6,624 | $13,310 | $12,945 | | Operating income | $2,432 | $2,049 | $3,735 | $3,683 | | Net income attributable to common stock | $772 | $616 | $1,124 | $1,089 | | Diluted net income per share | $0.53 | $0.42 | $0.77 | $0.75 | | Operating cash flows | $2,195 | $1,956 | $3,253 | $3,852 | [Summary Operating Data](index=3&type=section&id=Summary%20Operating%20Data) Copper and gold production decreased YoY due to ore grades, but sales volumes for both metals increased Summary Operating Data | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Copper (M lbs)** | | | | | | Production | 963 | 1,037 | 1,831 | 2,122 | | Sales | 1,016 | 931 | 1,888 | 2,039 | | Realized Price/lb | $4.54 | $4.48 | $4.48 | $4.25 | | Unit Net Cash Costs/lb | $1.13 | $1.73 | $1.56 | $1.61 | | **Gold (k oz)** | | | | | | Production | 317 | 443 | 604 | 992 | | Sales | 522 | 361 | 650 | 929 | | Realized Price/oz | $3,291 | $2,299 | $3,260 | $2,236 | | **Molybdenum (M lbs)** | | | | | | Production | 22 | 20 | 45 | 38 | | Sales | 22 | 21 | 42 | 41 | | Realized Price/lb | $21.10 | $21.72 | $21.37 | $21.06 | [Consolidated Production and Sales](index=3&type=section&id=Consolidated%20Production%20and%20Sales) Q2 2025 copper and gold sales exceeded guidance, with full-year 2025 copper sales projected at 3.95 billion pounds - Q2 2025 copper production was lower YoY due to reduced ore grades and operating rates, but **sales were higher due to shipment timing**[7](index=7&type=chunk) - Q2 2025 gold sales of **522 thousand ounces were above guidance**, primarily due to the timing of refined gold sales[7](index=7&type=chunk) 2025 Full Year Sales Guidance | Metal | 2025 Full Year Guidance | | :--- | :--- | | Copper | 3.95 billion lbs | | Gold | 1.3 million oz | | Molybdenum | 82 million lbs | [Consolidated Unit Net Cash Costs](index=4&type=section&id=Consolidated%20Unit%20Net%20Cash%20Costs) Q2 2025 consolidated unit net cash costs for copper were significantly below guidance due to higher by-product credits - Q2 2025 unit net cash costs of **$1.13/lb were well below the $1.50/lb guidance**, mainly due to higher by-product credits[9](index=9&type=chunk) - The average unit net cash cost for copper is projected to be **$1.55 per pound for the full year 2025**[10](index=10&type=chunk) - Cost sensitivity for H2 2025: a **$100/oz change in gold price impacts costs by ~$0.02/lb**[10](index=10&type=chunk) [U.S. Copper Tariffs and Market Impact](index=4&type=section&id=U.S.%20Copper%20Tariffs%20and%20Market%20Impact) A planned 50% U.S. tariff on copper imports is expected to benefit FCX as the leading domestic supplier - A **50% tariff on U.S. copper imports** is planned to be effective August 1, 2025[13](index=13&type=chunk) - FCX is the leading U.S. copper supplier, providing approximately **70% of total U.S. refined copper production**[14](index=14&type=chunk) - Following the tariff announcement, the **COMEX copper price premium over LME increased to approximately $1.20 per pound**, benefiting FCX's U.S. sales[15](index=15&type=chunk) [Operations Review](index=5&type=section&id=OPERATIONS) The company is advancing growth projects across its portfolio, including leaching initiatives and major expansions [Leaching and Technology Innovation Initiatives](index=5&type=section&id=Leaching%20and%20Technology%20Innovation%20Initiatives) Technology-driven leaching initiatives are on track to add 300 million pounds of annual copper production by year-end 2025 - Leaching initiatives produced **52 million pounds of incremental copper** in Q2 2025[17](index=17&type=chunk) - The company targets an annual run rate of **300 million pounds of copper** from these initiatives by the end of 2025[18](index=18&type=chunk) - **Large-scale testing of an internally developed additive** to enhance copper recovery began at the Morenci operations in Q2 2025[18](index=18&type=chunk) [United States Operations](index=5&type=section&id=United%20States%20Operations) U.S. operations saw higher copper sales and lower unit costs while advancing major expansion projects at Bagdad and Safford - A potential expansion at the Bagdad operation could add **200-250 million pounds of copper production per year** for an estimated capital cost of $3.5 billion[22](index=22&type=chunk) - Pre-feasibility studies are underway at the Safford/Lone Star district for a **potential significant expansion**, with studies expected to be complete in 2026[24](index=24&type=chunk) U.S. Operations Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Copper Production (M lbs) | 336 | 298 | | Copper Sales (M lbs) | 308 | 292 | | Avg. Realized Price/lb | $4.81 | $4.63 | | Unit Net Cash Costs/lb | $3.04 | $3.19 | [South America Operations](index=6&type=section&id=South%20America%20Operations) South American operations saw lower production due to ore grades, while a major mill project is being evaluated at El Abra - A large sulfide resource at El Abra, Chile, could support a major mill project adding **750 million pounds of annual copper production**[32](index=32&type=chunk)[33](index=33&type=chunk) - Q2 2025 copper sales were lower than Q2 2024 primarily due to **anticipated lower ore grades and milling rates**[37](index=37&type=chunk) South America Operations Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Copper Production (M lbs) | 268 | 298 | | Copper Sales (M lbs) | 265 | 302 | | Avg. Realized Price/lb | $4.47 | $4.39 | | Unit Net Cash Costs/lb | $2.46 | $2.46 | [Indonesia Operations](index=7&type=section&id=Indonesia%20Operations) Indonesia operations achieved a key milestone with the start-up of its new smelter and are advancing the Kucing Liar project - The new smelter in Indonesia commenced start-up activities ahead of schedule, with **first copper cathode production expected by the end of July 2025**[41](index=41&type=chunk)[42](index=42&type=chunk) - Development of the Kucing Liar deposit is ongoing, expected to produce over **7 billion lbs of copper and 6 million oz of gold** between 2029 and 2041[47](index=47&type=chunk) - Consolidated sales guidance from PTFI for 2025 is revised to **1.54 billion lbs of copper and 1.3 million oz of gold**[55](index=55&type=chunk) Indonesia Operations Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Copper Production (M lbs) | 359 | 441 | | Copper Sales (M lbs) | 443 | 337 | | Gold Production (k oz) | 311 | 437 | | Gold Sales (k oz) | 518 | 356 | | Unit Net Cash Credits/lb | ($0.99) | ($0.21) | [Molybdenum Mines](index=10&type=section&id=Molybdenum%20Mines) Molybdenum mines delivered higher production and significantly lower unit net cash costs compared to the prior year - Molybdenum production **increased to 9 million pounds** in Q2 2025 from 7 million pounds in Q2 2024[59](index=59&type=chunk) - Average unit net cash costs for Molybdenum mines **decreased to $14.20 per pound** in Q2 2025, compared to $19.41 in Q2 2024[60](index=60&type=chunk) - Average unit net cash costs for the Molybdenum mines are expected to be approximately **$15.50 per pound for the full year 2025**[60](index=60&type=chunk) [Financial Position, Liquidity, and Shareholder Returns](index=10&type=section&id=LIQUIDITY,%20CASH%20FLOWS,%20CASH%20AND%20DEBT) The company maintains a strong financial position with $4.5 billion in cash and continues to return capital to shareholders [Liquidity, Cash Flows, and Capital Expenditures](index=10&type=section&id=Liquidity,%20Cash%20Flows,%20and%20Capital%20Expenditures) FCX generated $2.2 billion in Q2 operating cash flow and projects $4.9 billion in capital expenditures for 2025 - Generated operating cash flows of **$2.2 billion in Q2 2025** and $3.3 billion for the first six months of 2025[62](index=62&type=chunk) - Full-year 2025 operating cash flow is expected to be **~$7.0 billion**, or ~$7.9 billion including a premium on U.S. copper sales[63](index=63&type=chunk) - Capital expenditures are expected to be approximately **$4.9 billion for the full year 2025**, including $2.7 billion for major mining projects[66](index=66&type=chunk) [Cash and Debt Structure](index=12&type=section&id=Cash%20and%20Debt%20Structure) The company held $4.5 billion in consolidated cash and $9.3 billion in total debt at the end of Q2 2025 Cash Position at June 30, 2025 (in billions) | Category | Amount | | :--- | :--- | | Total consolidated cash | $4.5 | | Less: Noncontrolling interests' share | ($1.5) | | Less: Withholding taxes | ($0.2) | | **Net cash available** | **$2.8** | Debt Summary at June 30, 2025 (in billions) | Debt Category | Amount | Weighted Avg. Interest Rate | | :--- | :--- | :--- | | Senior notes (FCX) | $5.3 | 5.0% | | Senior notes (PTFI) | $3.0 | 5.4% | | Other Debt | $0.9 | Various | | **Total Debt** | **$9.3** | **5.2%** | [Financial Policy and Shareholder Returns](index=12&type=section&id=Financial%20Policy%20and%20Shareholder%20Returns) The company declared a $0.15 per share dividend and repurchased $52 million of stock in Q2 2025 - The financial policy targets up to **50% of available cash flows for shareholder returns**[69](index=69&type=chunk) - Declared a total cash dividend of **$0.15 per share** ($0.075 base + $0.075 variable) payable on August 1, 2025[71](index=71&type=chunk) - Repurchased **1.5 million shares for $52 million** in Q2 2025, with total program purchases reaching $2.0 billion[72](index=72&type=chunk) [Supplemental Financial Information](index=15&type=section&id=Supplemental%20Financial%20Information) This section provides detailed financial statements, non-GAAP reconciliations, and granular segment data [Consolidated Financial Statements](index=18&type=section&id=Consolidated%20Financial%20Statements) Financial statements show increased Q2 revenues and a robust balance sheet with $56.5 billion in total assets Consolidated Statement of Income Highlights (Q2 2025 vs Q2 2024, in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $7,582 | $6,624 | | Operating Income | $2,432 | $2,049 | | Income Before Taxes | $2,391 | $2,030 | | Net Income Attributable to Common Stockholders | $772 | $616 | Consolidated Balance Sheet Highlights (June 30, 2025 vs Dec 31, 2024, in millions) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,490 | $3,923 | | Total Assets | $56,492 | $54,848 | | Total Debt (Current + Long-term) | $9,251 | $8,948 | | Total Equity | $29,996 | $28,778 | [Reconciliations and Other Disclosures](index=21&type=section&id=Reconciliations%20and%20Other%20Disclosures) This section reconciles GAAP figures to non-GAAP metrics, showing a Q2 adjusted net income of $790 million - Q2 2025 GAAP net income of $772 million was adjusted for $18 million in net charges to arrive at an **adjusted net income of $790 million**[101](index=101&type=chunk) - Excluding PTFI's new downstream facilities debt, the **net debt used for financial policy purposes is $1.5 billion**[110](index=110&type=chunk) - At June 30, 2025, FCX had **245 million pounds of provisionally priced copper sales** recorded at an average price of $4.49 per pound[118](index=118&type=chunk) [Segment and Product Information](index=15&type=section&id=Segment%20and%20Product%20Information) Segment data highlights that Indonesia Operations were the largest contributor to Q2 operating income at $1.87 billion Operating Income by Segment (Q2 2025, in millions) | Segment | Operating Income (Loss) | | :--- | :--- | | U.S. Copper Mines | $368 | | South America Operations | $374 | | Indonesia Operations | $1,868 | | Molybdenum Mines | $25 | | Rod & Refining | $7 | | Atlantic Smelting & Refining | $13 | | Corporate, Other & Eliminations | ($223) | | **FCX Total** | **$2,432** | Unit Net Cash Cost Reconciliation Summary (Q2 2025, per pound of copper) | Region | Site Production & Delivery | By-product Credits | Other | Unit Net Cash Cost/(Credit) | | :--- | :--- | :--- | :--- | :--- | | U.S. Copper Mines | $3.44 | ($0.55) | $0.15 | $3.04 | | South America Ops | $2.76 | ($0.37) | $0.07 | $2.46 | | Indonesia Ops | $2.17 | ($3.98) | $0.82 | ($0.99) |

Core Viewpoint - Freeport-McMoRan Inc. (FCX) is expected to report strong second-quarter 2025 results, driven by favorable copper prices, lower unit costs, and increased sales volumes [1][6][10] Group 1: Earnings Performance - FCX has a trailing four-quarter earnings surprise of approximately 10.5%, having beaten the Zacks Consensus Estimate for earnings in two of the last four quarters [1] - The Zacks Consensus Estimate for FCX's second-quarter earnings is currently set at 46 cents, with an Earnings ESP of +1.62% indicating a potential earnings beat [5][6] Group 2: Revenue and Sales Volumes - The Zacks Consensus Estimate for FCX's second-quarter consolidated revenues is projected at $7,121 million, reflecting a year-over-year increase of about 7.5% [7] - Copper sales volumes for the second quarter are estimated at 1.005 billion pounds, representing an 8% year-over-year increase and a 15% sequential rise from the first quarter [6][9] Group 3: Cost Structure - FCX's projected consolidated average unit net cash costs per pound of copper for the second quarter are expected to decline to $1.50 from $2.07 in the prior quarter [10] - The reduction in unit costs is anticipated to be driven by higher copper and gold volumes from operations in Indonesia [10] Group 4: Market Conditions - Copper prices experienced volatility in the second quarter, fluctuating between approximately $4.1 and $5 per pound, ultimately closing above $5 per pound at the end of June [8] - The overall copper price trend in the first half of 2025 showed a gain of roughly 25% [8]

Economic Policy and Market Impact - President Trump's "Great Reset" aims to revive U.S. manufacturing through tariffs, with economic and national security implications [1] - Long-term benefits of the policy may take years, but immediate impacts include increased commodity demand and currency fluctuations, with the dollar experiencing its worst first half since 1972 [2] - The administration's focus on lower taxes and reduced regulation, alongside potential Federal Reserve interest rate cuts, could accelerate growth [3] Investment Opportunities - Investors are gravitating towards technology stocks, but a diversified portfolio with strong growth and stable income is also advisable [4] - Freeport-McMoRan, a major copper producer, is positioned well due to expected demand from U.S. infrastructure projects, despite current mining stock underperformance [5][7] - The company has a strong balance sheet with a debt-to-equity ratio of 0.30%, and analysts forecast an additional 15% upside for its stock [8] Sector Analysis - Coca-Cola, while often overlooked, has shown a 10.9% stock increase in 2025, benefiting from strong demand and pricing power [9][10] - A weaker dollar positively impacts Coca-Cola's revenues from international markets, enhancing reported sales and profits [11] - Despite a higher P/E ratio of 27, Coca-Cola's dividend yield of 2.92% and consistent cash flow make it attractive for income-focused investors [12] Defensive Stocks - Verizon Communications offers reliable dividends with a current yield of 6.65%, appealing to wealth preservation investors [15][16] - The company's stock has increased by about 8% in the past year, supported by decreasing capital expenditures on 5G and a stable subscription model [16][17] - Although Verizon has a Moderate Buy rating, some analysts suggest other stocks may present better investment opportunities [18]

Wall Street analysts expect Freeport-McMoRan (FCX) to post quarterly earnings of $0.46 per share in its upcoming report, which indicates no change from the year-ago quarter. Revenues are expected to be $7.12 billion, up 7.5% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 11% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earning ...