Freeport-McMoRan(US:FCX)2025-08-08 18:29Part I Financial Statements Unaudited consolidated financial statements for Q2 2025 show increased revenue and net income, driven by higher sales and commodity prices Consolidated Balance Sheets Total assets increased to $56.5 billion by June 30, 2025, with total equity rising to $30.0 billion Consolidated Balance Sheet Highlights (in Millions) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Current Assets | $13,636 | $13,296 | +$340 | | Property, plant, equipment, net | $39,835 | $38,514 | +$1,321 | | Total Assets | $56,492 | $54,848 | +$1,644 | | Total Current Liabilities | $5,531 | $5,496 | +$35 | | Long-Term Debt | $8,913 | $8,907 | +$6 | | Total Liabilities | $26,496 | $26,070 | +$426 | | Total Stockholders' Equity | $18,208 | $17,581 | +$627 | | Total Equity | $29,996 | $28,778 | +$1,218 | Consolidated Statements of Income Q2 2025 revenues rose to $7.58 billion, increasing net income to $772 million, with six-month revenues at $13.31 billion Income Statement Summary (in Millions, Except Per Share Data) | Metric | Q2 2025 | Q2 2024 | YoY Change | 6M 2025 | 6M 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $7,582 | $6,624 | +14.5% | $13,310 | $12,945 | +2.8% | | Operating Income | $2,432 | $2,049 | +18.7% | $3,735 | $3,683 | +1.4% | | Net Income Attributable to Common Stockholders | $772 | $616 | +25.3% | $1,124 | $1,089 | +3.2% | | Diluted EPS | $0.53 | $0.42 | +26.2% | $0.77 | $0.75 | +2.7% | Consolidated Statements of Cash Flows Net cash from operations for H1 2025 decreased to $3.25 billion, while cash used in financing activities declined to $0.91 billion Cash Flow Summary - Six Months Ended June 30 (in Millions) | Cash Flow Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $3,253 | $3,852 | -$599 | | Net Cash Used in Investing Activities | ($2,432) | ($2,385) | -$47 | | Net Cash Used in Financing Activities | ($908) | ($1,128) | +$220 | | Net (Decrease) Increase in Cash | ($87) | $339 | -$426 | Notes to Consolidated Financial Statements Detailed notes cover accounting policies, a 37% effective tax rate, $9.25 billion total debt, share repurchases, and Indonesian regulatory updates - The consolidated effective income tax rate was 37% for the first six months of 2025, up from 34% in the same period of 202425 Debt Components (in Millions) | Debt Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | PTFI revolving credit facility | $250 | $250 | | Senior notes and debentures | $8,620 | $8,617 | | Other | $381 | $81 | | Total debt | $9,251 | $8,948 | - During the first six months of 2025, the company repurchased 2.9 million shares of common stock for $107 million. As of July 31, 2025, $3.0 billion remains available under the share repurchase program33 - PTFI received a copper concentrate export license through September 16, 2025, and is subject to a 7.5% export duty. A new regulation effective March 1, 2025, requires 100% of export proceeds to be deposited in Indonesian banks for 12 months6768 Management's Discussion and Analysis (MD&A) Management discusses financial performance, operational results, and strategic outlook, including the new PTFI smelter and 2025 sales projections - A major milestone was achieved with the startup of PT Freeport Indonesia's (PTFI) new large-scale copper smelter in Eastern Java, Indonesia, slightly ahead of schedule93 - The company is targeting an annual run rate of 300 million pounds of copper by the end of 2025 from new applications, technologies, and data analytics in its leaching processes94 - Net debt totaled $1.5 billion at June 30, 2025, excluding $3.2 billion of debt for PTFI's downstream processing facilities97 Outlook The 2025 outlook projects 3.95 billion pounds of copper sales, $7.0 billion in operating cash flow, and $4.9 billion in capital expenditures Projected 2025 Consolidated Sales Volumes | Metal | Projected Volume | | :--- | :--- | | Copper | 3,948 million lbs | | Gold | 1.3 million oz | | Molybdenum | 82 million lbs | Projected 2025 Capital Expenditures (in Billions) | Category | Amount | | :--- | :--- | | Major projects | $2.7 | | PTFI's downstream processing facilities | $0.6 | | Sustaining capital and other | $1.6 | | Total | $4.9 | - Consolidated operating cash flows are estimated to be approximately $7.0 billion for 2025, assuming average prices of $4.40/lb for copper and $3,300/oz for gold for the second half of the year105 Markets Market analysis covers copper, gold, and molybdenum prices, noting the impact of U.S. tariffs on copper and gold's record high in Q2 2025 - Following a U.S. presidential proclamation on July 30, 2025, imposing a 50% tariff on certain copper imports, COMEX copper prices declined to become similar to LME prices, consistent with historical trends111 Q2 2025 Average Commodity Prices | Commodity | Exchange/Source | Average Price | | :--- | :--- | :--- | | Copper | LME | $4.32 / lb | | Copper | COMEX | $4.72 / lb | | Gold | London PM | $3,280 / oz | | Molybdenum | Platts Metals Daily | $20.66 / lb | Consolidated Results Q2 2025 consolidated revenues increased 14.5% to $7.6 billion, driven by higher copper and gold sales volumes and realized gold prices Consolidated Sales and Realized Prices (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Copper Sales (M lbs) | 1,016 | 931 | +9.1% | | Avg. Realized Copper Price | $4.54/lb | $4.48/lb | +1.3% | | Gold Sales (k oz) | 522 | 361 | +44.6% | | Avg. Realized Gold Price | $3,291/oz | $2,299/oz | +43.2% | - The increase in Q2 2025 consolidated revenues was primarily driven by higher gold sales volumes (+$373 million**), higher gold prices (+$517 million), and higher copper sales volumes (+$379 million)128 Operations Operational performance is detailed by segment, covering production initiatives, technology innovations, and the impact of U.S. tariffs on development and costs - The company is the leading copper supplier in the U.S., providing approximately 70% of total U.S. refined copper production. For H1 2025, U.S. copper was sold 63% as rod, 26% as cathode, and 11% in concentrate161 - A potential expansion project at the Bagdad operation in Arizona could more than double its concentrator capacity, adding 200-250 million pounds of copper production per year for an estimated capital cost of $3.5 billion167168 - PTFI expects to apply for an extension of its mining rights beyond 2041 during 2025, contingent on an agreement to transfer an additional 10% interest to Indonesia's state-owned enterprise, MIND ID198 Capital Resources and Liquidity The company maintains strong liquidity with $4.5 billion cash, targeting $3.0-$4.0 billion net debt, and paid $0.4 billion in H1 2025 dividends Net Debt Calculation (as of June 30, 2025, in Millions) | Item | Amount | | :--- | :--- | | Consolidated debt | $9,251 | | Less: consolidated cash and cash equivalents | $4,490 | | FCX net debt | $4,761 | | Less: debt for PTFI's downstream processing facilities | $3,234 | | FCX net debt (excluding PTFI project debt) | $1,527 | - The company's financial policy includes a base dividend and a performance-based framework where up to 50% of available cash flow is allocated to shareholder returns, subject to maintaining its net debt target238 Quantitative and Qualitative Disclosures About Market Risk No material changes to market risks occurred during H1 2025, with detailed information available in the 2024 Form 10-K - There have been no material changes in the company's market risks during the first six months of 2025307 Controls and Procedures Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025312 Part II Legal Proceedings No material changes to legal proceedings were reported, and management anticipates no material adverse effect on financial condition - There have been no material changes to previously disclosed legal proceedings311 Risk Factors No material changes to the company's risk factors have occurred since the 2024 Form 10-K filing - There have been no material changes to the company's risk factors since the 2024 Form 10-K filing313 Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased 1,532,129 common shares in Q2 2025, with $3.0 billion remaining available under the repurchase program Share Repurchases for Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 847,965 | $29.48 | | May 2025 | 185,427 | $37.75 | | June 2025 | 498,737 | $40.10 | | Total | 1,532,129 | $33.94 | Mine Safety Disclosures The company prioritizes health and safety through its "Safe Production Matters" strategy, with detailed mine safety data in Exhibit 95.1 - The company's global health and safety strategy, "Safe Production Matters," is focused on fatality prevention and continuous improvement, with a goal of achieving zero workplace fatalities315 Other Information No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during Q2 2025316 Exhibits This section lists all exhibits filed with the Form 10-Q, including officer certifications and XBRL data files