Corporate Overview - Hillgrove Resources has a share price of $0.036 and a market capitalization of $94 million [9] - The company possesses $11 million in cash and $282 million in income tax losses [9] - Freepoint Metals & Concentrates is a major shareholder with 18.9% ownership, followed by Ariadne Australia with 10.3% [9] Production and Cost Metrics (June 2025 Half) - Total tonnes processed reached 669kt with a grade of 0.88% [25] - Copper production amounted to 5,545 tonnes, and payable copper sold was 5,481 tonnes at an average realized price of A$14,232 per tonne [25] - C1 Costs were A$4.68/lb, and All-in Cost excluding Nugent was US$4.10/lb [25] Resource and Reserve - The 2024 Kanmantoo Mineral Resource Estimate is 19.3Mt grading 0.77% Cu and 0.14g/t Au, containing 150kt Cu and 82koz Au [30] - The 2024 Maiden Ore Reserve is 2.8Mt grading 0.91% Cu and 0.15g/t Au, containing 26kt Cu and 14koz Au [30] - Compared to the 2022 Mineral Resource Estimate, there was a 96% increase in contained copper and a 138% increase in contained gold [31] Future Plans - The company plans approximately 20 Km of drilling in 2025 targeting resource expansion, with an early focus on Valentines, Kavanagh, and Nugent [32] - Nugent development aims to reduce mining and processing unit costs by approximately 15-20% [23]

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]