Freeport-McMoRan(FCX) - 2025 Q3 - Quarterly Results

Financial Performance - Third-quarter 2025 net income attributable to common stock was $674 million, or $0.46 per share, with adjusted net income of $722 million, or $0.50 per share[2]. - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $1,798 million, up 11.3% from $1,615 million in 2024[95]. - Net income for the nine months ended September 30, 2025, was $3.587 billion, compared to $3.678 billion for the same period in 2024, representing a decrease of about 2.5%[99]. - Net income attributable to common stockholders for the three months ended September 30, 2025, was $674 million, up from $526 million in the same period of 2024, indicating a growth of 28.14%[136]. - Total revenues for the first nine months of 2025 reached $20,282 million, a 2.8% increase from $19,735 million in 2024[95]. - Total revenues for the three months ended September 30, 2025, reached $6,972 million, an increase from $6,790 million in the same period of 2024, representing a growth of 2.68%[136]. Production and Sales - Consolidated production in third-quarter 2025 totaled 912 million pounds of copper, 287 thousand ounces of gold, and 22 million pounds of molybdenum, reflecting a decrease from third-quarter 2024[5]. - Consolidated sales in third-quarter 2025 were 977 million pounds of copper, 336 thousand ounces of gold, and 19 million pounds of molybdenum, slightly below July 2025 guidance[8]. - In Q3 2025, PTFI produced 311 million pounds of copper and 281 thousand ounces of gold, down from 439 million pounds and 451 thousand ounces in Q3 2024, primarily due to a temporary suspension of operations[53]. - Total copper production for the first nine months of 2025 was 2,743 million recoverable pounds, a decrease of 13.6% compared to 3,173 million pounds in 2024[89]. - Copper sales for the nine months ended September 30, 2025, were 1,093 million recoverable pounds, down from 1,256 million pounds in 2024, reflecting a reduction of approximately 13%[191]. Costs and Expenses - Consolidated unit net cash costs for copper were $1.40 per pound in third-quarter 2025, expected to average $1.68 per pound for the year 2025[10]. - The average unit net cash costs for U.S. copper mines decreased to $3.11 per pound in Q3 2025 from $3.24 per pound in Q3 2024, a reduction of 4.0%[31]. - The average realized price per pound of copper increased to $4.68 in Q3 2025 from $4.30 in Q3 2024[86]. - The company reported a net cash cost of $3,515 million for U.S. copper mines, with a unit net cash cost of $3.13 per pound[159]. - Unit net cash costs for copper in Q3 2025 were $(0.92) per pound, while for gold, they were $1.47 per ounce, reflecting significant cost pressures[179]. Capital Expenditures and Cash Flow - Capital expenditures in third-quarter 2025 were $1.1 billion, with an expected total of $4.5 billion for the year 2025[1]. - Operating cash flows for third-quarter 2025 totaled $1.7 billion, with expectations of approximately $5.5 billion for the year 2025[1]. - Capital expenditures for the nine months ended September 30, 2025, amounted to $3,489 million, compared to $3,569 million in the same period of 2024, showing a decrease of about 2.2%[138]. - Cash flow from operating activities for the nine months ended September 30, 2025, was $4.917 billion, down from $5.724 billion in the same period of 2024, a decline of about 14.1%[99]. Debt and Financial Position - Consolidated debt as of September 30, 2025, totaled $9.3 billion, with cash and cash equivalents of $4.3 billion, resulting in net debt of $1.7 billion[1]. - FCX's net debt totaled $1.7 billion at September 30, 2025, excluding $3.2 billion of debt for PTFI's downstream processing facilities[73]. - At September 30, 2025, FCX had $4.3 billion in consolidated cash and cash equivalents, with an additional $3.0 billion available under its revolving credit facility[63]. Operational Challenges - The mud rush incident on September 8, 2025, led to a temporary suspension of operations, impacting production and sales volumes significantly[13]. - PTFI's estimated production for 2026 is projected to decrease by approximately 35% from pre-incident estimates of 1.7 billion pounds of copper and 1.6 million ounces of gold due to a mud rush incident[17]. - The company experienced charges totaling $195 million associated with the September 2025 mud rush incident, impacting net income[103]. - The company incurred $24 million in idle facility costs due to the September 2025 mud rush incident, impacting overall production costs[180]. Future Outlook and Strategic Plans - FCX plans to expand the Bagdad operation's concentrator capacity, potentially increasing copper production by 200 to 250 million pounds per year, with estimated capital costs of approximately $3.5 billion[25]. - Future operational strategies will focus on addressing the impacts of recent incidents and optimizing production efficiency to enhance profitability[181]. - The company plans to continue focusing on market expansion and operational efficiency to mitigate the impact of rising costs and declining revenues[191].