Freeport-McMoRan(US:FCX)2026-02-13 19:44Production and Operations - Freeport-McMoRan's copper production in 2025 was significantly impacted by the September mud rush incident at the Grasberg minerals district, with a phased restart of operations anticipated in Q2 2026[18]. - The company achieved an annual run rate of approximately 240 million pounds of copper by late 2025, with a target of 300 million pounds for 2026[17]. - In 2025, 70% of Freeport-McMoRan's consolidated copper production came from the Morenci mine in the U.S., the Cerro Verde mine in Peru, and the Grasberg minerals district in Indonesia[27]. - The Morenci mine produced 0.7 billion pounds of copper and 7 million pounds of molybdenum in 2025, compared to 0.8 billion pounds of copper and 3 million pounds of molybdenum in 2023[104]. - The Bagdad mine's production totaled 149 million pounds of copper and 11 million pounds of molybdenum in 2025, with a potential to increase copper production by 200 to 250 million pounds per year through expansion[112][113]. - Safford's copper production totaled 287 million pounds in 2025, up from 249 million pounds in 2024 and 245 million pounds in 2023[123]. - Sierrita's copper production reached 184 million pounds and molybdenum production was 17 million pounds in 2025, compared to 165 million pounds and 15 million pounds in 2024[131]. - Miami's copper production remained stable at 9 million pounds in both 2025 and 2024, down from 12 million pounds in 2023[139]. - Chino's copper production increased to 150 million pounds in 2025, up from 133 million pounds in 2024 and 141 million pounds in 2023[147]. - Tyrone's copper production decreased to 32 million pounds in 2025, down from 43 million pounds in 2024 and 51 million pounds in 2023[152]. - Cerro Verde's copper production totaled 0.9 billion pounds in 2025, consistent with 0.9 billion pounds in 2024 and down from 1.0 billion pounds in 2023[176]. - El Abra's copper production was 201 million pounds in 2025, a decrease from 219 million pounds in 2024 and 217 million pounds in 2023[186]. - PTFI's copper cathode production from its refinery reached 42,600 metric tons in 2025[205]. - Underground operations produce approximately 1.7 billion pounds of copper and 1.3 million ounces of gold per year[209]. - Production in 2025 totaled 1.0 billion pounds of copper and 0.9 million ounces of gold, down from 1.8 billion pounds of copper and 1.9 million ounces of gold in 2024[211]. - The decrease in production volumes in 2025 was attributed to the September 2025 mud rush incident[211]. Financial Performance - For 2025, Freeport-McMoRan's consolidated revenues were primarily derived from copper (75%), gold (15%), and molybdenum (8%) sales[37]. - The average LME copper settlement price for 2025 was $4.51 per pound, while the average COMEX price was $4.82 per pound, reflecting a 7% higher price for COMEX compared to LME[19][32]. - PTFI's copper revenues are recorded net of royalties, treatment charges, and export duties prior to the expiration of its export license on September 16, 2025[50]. - Gold produced by PTFI is primarily sold as a component of copper concentrate or in anode slimes, with revenues recorded net of treatment charges, royalties, and export duties[53]. - PTFI is the world's largest producer of molybdenum and molybdenum-based chemicals, with sales primarily priced based on the average published Platts Metals Daily prices[55]. Reserves and Resources - The geographic allocation of Freeport-McMoRan's estimated recoverable proven and probable copper reserves as of December 31, 2025, was 38% in the U.S., 40% in South America, and 22% in Indonesia[22]. - The company is well-positioned for future growth with significant copper reserves and a high-quality portfolio of growth projects to meet increasing market demand[16]. - PTFI's net PP&E and mine development costs totaled $22.2 billion as of December 31, 2025[208]. Environmental and Regulatory Compliance - As of December 31, 2025, PTFI had $2.0 billion recorded for environmental obligations and $3.8 billion for asset retirement obligations[59]. - Environmental capital expenditures totaled $0.5 billion in 2025, with an expected increase to approximately $0.7 billion in 2026[59]. - PTFI completed the Tailings Management Roadmap commitments for the 2018 through 2024 period, with the current phase extending from 2025 through 2030[73]. - PTFI received approval for an addendum to the AMDAL covering activities associated with the conversion of its power plant from coal-fired to liquefied natural gas (LNG)[74]. - PTFI's coal-fired power plant was not within the scope of Indonesia's carbon emissions trading system in 2025, and the company continues to monitor regulations[76]. - The company anticipates dedicating more resources and incurring more costs to comply with future climate change regulatory programs[78]. - The company is subject to extensive health and safety regulations, with potential compliance costs that could significantly impact operating expenses[90]. Expansion and Technological Advancements - The company is advancing potential expansion opportunities at its copper mines in the U.S. and South America, incorporating new technologies and data analytics into its processes[17]. - Estimated incremental project capital costs for the Bagdad expansion are approximately $3.5 billion, requiring an incentive copper price of about $4.00 per pound[113]. - The conversion of Bagdad's haul truck fleet to autonomous haulage was completed in 2025, making it the first major mine in the U.S. to operate a fully autonomous fleet[114]. - PTFI has successfully commissioned three large-scale underground mines in the Grasberg minerals district[209]. - Exploration is ongoing in the Grasberg minerals district to target significant mineralization below the DMLZ underground mine[210]. 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[103]. - Safford's SX/EW facility has a capacity of approximately 320 million pounds of copper cathode per year[122]. - Sierrita's concentrator has a milling design capacity of 100,000 metric tons of ore per day, producing copper and molybdenum concentrate[130]. - Chino's SX/EW plant has a design capacity of 150 million pounds of copper per year[146]. - Cerro Verde has an annual average permitted milling capacity of 409,500 metric tons of ore per day, with the ability to treat up to 450,450 metric tons of ore per day[174]. - PTFI's smelter has a capacity to process approximately 1.7 million metric tons of copper concentrate per year, with copper anode production totaling 54,100 metric tons in 2025[205]. Future Outlook - Following the September 2025 mud rush incident, PTFI expects to restore approximately 85% of its total production at normal operating rates in the second half of 2026[201]. - Cerro Verde entered into a new power purchase agreement expected to transition to fully renewable energy sources by 2026[178]. - PTFI is preparing an application for a long-term extension of its operating rights expected to be submitted during 2026[197].