United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, ~~2020~~2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-11307-01

Freeport-McMoRan Inc.

(Exact name of registrant as specified in its charter)


Delaware						74-2480931
(State or other jurisdiction of						(I.R.S. Employer Identification No.)
incorporation or organization)

333 North Central Avenue

Phoenix

85004-2189

(Address of principal executive offices)

(Zip Code)

(602) 366-8100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	FCX	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

On October ~~30, 2020,~~29, 2021, there were issued and outstanding ~~1,452,868,421~~1,468,473,516 shares of the registrant’s common stock, par value $0.10 per share.

Freeport-McMoRan Inc.

TABLE OF CONTENTS



			Page

Part I. Financial Information			3

Item 1. Financial Statements:			3

Consolidated Balance Sheets (Unaudited)			3

Consolidated Statements of Operations (Unaudited)			4

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)			5

Consolidated Statements of Cash Flows (Unaudited)			6

Consolidated Statements of Equity (Unaudited)			7

Notes to Consolidated Financial Statements (Unaudited)			9

Report of Independent Registered Public Accounting Firm			26

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			27

Item 3. Quantitative and Qualitative Disclosures About Market Risk			6971

Item 4. Controls and Procedures			6971

Part II. Other Information			6971

Item 1. Legal Proceedings			6971

Item 1A. Risk Factors			6972

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			7372

Item 4. Mine Safety Disclosures			7372

Item 5. Other Information			72

Item 6. Exhibits			74

Signature			S-1

Table of Contents

Part I.FINANCIAL INFORMATION

Item 1.Financial Statements.

Freeport-McMoRan Inc.

CONSOLIDATED BALANCE SHEETS (Unaudited)


		September 30, 2020		December 31, 2019			September 30, 2021		December 31, 2020
		(In millions)					(In millions)
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	2,403	$	2,020	Cash and cash equivalents	$	7,672	$	3,657
Trade accounts receivable	Trade accounts receivable	893		741		Trade accounts receivable	931		892
Income and other tax receivables	Income and other tax receivables	464		426		Income and other tax receivables	591		520

Inventories:	Inventories:					Inventories:
Materials and supplies, net	Materials and supplies, net	1,610		1,649		Materials and supplies, net	1,617		1,594
Mill and leach stockpiles	Mill and leach stockpiles	1,004		1,143		Mill and leach stockpiles	1,086		1,014
Product	Product	1,278		1,281		Product	1,417		1,285
Other current assets	Other current assets	419		655		Other current assets	477		341

Total current assets	Total current assets	8,071		7,915		Total current assets	13,791		9,303
Property, plant, equipment and mine development costs, net	Property, plant, equipment and mine development costs, net	29,911		29,584		Property, plant, equipment and mine development costs, net	30,102		29,818

Long-term mill and leach stockpiles	Long-term mill and leach stockpiles	1,463		1,425		Long-term mill and leach stockpiles	1,450		1,463

Other assets	Other assets	1,654		1,885		Other assets	1,574		1,560

Total assets	Total assets	$	41,099	$	40,809	Total assets	$	46,917	$	42,144

LIABILITIES AND EQUITY	LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	$	2,533	$	2,576	Accounts payable and accrued liabilities	$	2,949	$	2,708
Current portion of environmental and asset retirement obligations		397		436
Accrued income taxes	Accrued income taxes	119		119		Accrued income taxes	1,237		324
Current portion of debt	Current portion of debt	47		5		Current portion of debt	897		34
Current portion of environmental and asset retirement obligations						Current portion of environmental and asset retirement obligations	329		351
Dividends payable	Dividends payable	0		73		Dividends payable	111		—

Total current liabilities	Total current liabilities	3,096		3,209		Total current liabilities	5,523		3,417
Long-term debt, less current portion	Long-term debt, less current portion	9,983		9,821		Long-term debt, less current portion	8,768		9,677
Deferred income taxes	Deferred income taxes	4,325		4,210		Deferred income taxes	4,500		4,408
Environmental and asset retirement obligations, less current portion	Environmental and asset retirement obligations, less current portion	3,693		3,630		Environmental and asset retirement obligations, less current portion	3,688		3,705
Other liabilities	Other liabilities	2,440		2,491		Other liabilities	1,907		2,269

Total liabilities	Total liabilities	23,537		23,361		Total liabilities	24,386		23,476

Equity:	Equity:					Equity:
Stockholders’ equity:	Stockholders’ equity:					Stockholders’ equity:
Common stock	Common stock	158		158		Common stock	160		159
Capital in excess of par value	Capital in excess of par value	25,934		25,830		Capital in excess of par value	26,023		26,037
Accumulated deficit	Accumulated deficit	(12,389)		(12,280)		Accumulated deficit	(8,481)		(11,681)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(728)		(676)		Accumulated other comprehensive loss	(572)		(583)
Common stock held in treasury	Common stock held in treasury	(3,739)		(3,734)		Common stock held in treasury	(3,777)		(3,758)
Total stockholders’ equity	Total stockholders’ equity	9,236		9,298		Total stockholders’ equity	13,353		10,174
Noncontrolling interests	Noncontrolling interests	8,326		8,150		Noncontrolling interests	9,178		8,494
Total equity	Total equity	17,562		17,448		Total equity	22,531		18,668
Total liabilities and equity	Total liabilities and equity	$	41,099	$	40,809	Total liabilities and equity	$	46,917	$	42,144

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
		September 30,				September 30,					September 30,				September 30,
		2020		2019		2020		2019			2021		2020		2021		2020
		(In millions, except per share amounts)									(In millions, except per share amounts)
Revenues	Revenues	$	3,851	$	3,153	$	9,703	$	10,491	Revenues	$	6,083	$	3,851	$	16,681	$	9,703
Cost of sales:	Cost of sales:									Cost of sales:
Production and delivery	Production and delivery	2,465		2,670		7,404		8,599		Production and delivery	3,009		2,465		8,862		7,404
Depreciation, depletion and amortization	Depreciation, depletion and amortization	394		322		1,093		1,021		Depreciation, depletion and amortization	528		394		1,430		1,093

Metals inventory adjustments	Metals inventory adjustments	9		41		92		100		Metals inventory adjustments	14		9		15		92
Total cost of sales	Total cost of sales	2,868		3,033		8,589		9,720		Total cost of sales	3,551		2,868		10,307		8,589
Selling, general and administrative expenses	Selling, general and administrative expenses	72		101		273		300		Selling, general and administrative expenses	102		72		289		273
Mining exploration and research expenses	Mining exploration and research expenses	8		25		42		83		Mining exploration and research expenses	15		8		36		42
Environmental obligations and shutdown costs	Environmental obligations and shutdown costs	21		20		58		85		Environmental obligations and shutdown costs	13		21		51		58
Net loss (gain) on sales of assets		2		12		13		(13)
Net (gain) loss on sales of assets										Net (gain) loss on sales of assets	(60)		2		(63)		13
Total costs and expenses	Total costs and expenses	2,971		3,191		8,975		10,175		Total costs and expenses	3,621		2,971		10,620		8,975
Operating income (loss)		880		(38)		728		316
Operating income										Operating income	2,462		880		6,061		728
Interest expense, net	Interest expense, net	(120)		(123)		(362)		(401)		Interest expense, net	(138)		(120)		(431)		(362)
Net loss on early extinguishment of debt	Net loss on early extinguishment of debt	(59)		(21)		(100)		(27)		Net loss on early extinguishment of debt	—		(59)		—		(100)
Other income, net	Other income, net	22		33		62		52		Other income, net	36		22		56		62
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings		723		(149)		328		(60)
Income before income taxes and equity in affiliated companies’ net (losses) earnings										Income before income taxes and equity in affiliated companies’ net (losses) earnings	2,360		723		5,686		328
Provision for income taxes	Provision for income taxes	(297)		(91)		(333)		(181)		Provision for income taxes	(628)		(297)		(1,674)		(333)
Equity in affiliated companies’ net earnings		6		5		12		7
Net income (loss) from continuing operations		432		(235)		7		(234)
Net gain from discontinued operations		0		1		0		2
Net income (loss)		432		(234)		7		(232)
Equity in affiliated companies’ net (losses) earnings										Equity in affiliated companies’ net (losses) earnings	(9)		6		(5)		12

Net (income) loss attributable to noncontrolling interests		(103)		27		(116)		(16)

Net income										Net income	1,723		432		4,007		7

Net income attributable to noncontrolling interests										Net income attributable to noncontrolling interests	(324)		(103)		(807)		(116)

Net income (loss) attributable to common stockholders	Net income (loss) attributable to common stockholders	$	329	$	(207)	$	(109)	$	(248)	Net income (loss) attributable to common stockholders	$	1,399	$	329	$	3,200	$	(109)

Net income (loss) per share attributable to common stockholders:										Net income (loss) per share attributable to common stockholders:
Basic										Basic	$	0.95	$	0.22	$	2.18	$	(0.08)
Diluted										Diluted	$	0.94	$	0.22	$	2.16	$	(0.08)

Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations		$	0.22	$	(0.15)	$	(0.08)	$	(0.17)
Discontinued operations		0		0		0		0
		$	0.22	$	(0.15)	$	(0.08)	$	(0.17)

Weighted-average common shares outstanding:	Weighted-average common shares outstanding:									Weighted-average common shares outstanding:
Basic	Basic	1,453		1,452		1,453		1,451		Basic	1,469		1,453		1,466		1,453
Diluted	Diluted	1,461		1,452		1,453		1,451		Diluted	1,484		1,461		1,481		1,453

Dividends declared per share of common stock	Dividends declared per share of common stock	$	0	$	0.05	$	0	$	0.15	Dividends declared per share of common stock	$	0.075	$	—	$	0.225	$	—

The accompanying notes are an integral part of these consolidated financial statements.

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Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
		September 30,				September 30,					September 30,				September 30,
		2020		2019		2020		2019			2021		2020		2021		2020
		(In millions)									(In millions)
Net income (loss)		$	432	$	(234)	$	7	$	(232)
Net income										Net income	$	1,723	$	432	$	4,007	$	7

Other comprehensive (loss) income, net of taxes:
Other comprehensive income (loss), net of taxes:										Other comprehensive income (loss), net of taxes:

Defined benefit plans:	Defined benefit plans:									Defined benefit plans:
Actuarial losses arising during the period	Actuarial losses arising during the period	(89)		0		(89)		0		Actuarial losses arising during the period	—		(89)		(1)		(89)
Amortization or curtailment of unrecognized amounts included in net periodic benefit costs		14		11		38		35
Amortization of unrecognized amounts included in net periodic benefit costs										Amortization of unrecognized amounts included in net periodic benefit costs	4		14		12		38
Foreign exchange losses	Foreign exchange losses	(1)		0		(2)		0		Foreign exchange losses	—		(1)		(1)		(2)

Other comprehensive (loss) income		(76)		11		(53)		35
Other comprehensive income (loss)										Other comprehensive income (loss)	4		(76)		10		(53)

Total comprehensive income (loss)	Total comprehensive income (loss)	356		(223)		(46)		(197)		Total comprehensive income (loss)	1,727		356		4,017		(46)
Total comprehensive (income) loss attributable to noncontrolling interests		(103)		28		(115)		(16)
Total comprehensive income attributable to noncontrolling interests										Total comprehensive income attributable to noncontrolling interests	(324)		(103)		(806)		(115)

Total comprehensive income (loss) attributable to common stockholders	Total comprehensive income (loss) attributable to common stockholders	$	253	$	(195)	$	(161)	$	(213)	Total comprehensive income (loss) attributable to common stockholders	$	1,403	$	253	$	3,211	$	(161)

The accompanying notes are an integral part of these consolidated financial statements.

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Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


		Nine Months Ended					Nine Months Ended
		September 30,					September 30,
		2020		2019			2021		2020
		(In millions)					(In millions)
Cash flow from operating activities:	Cash flow from operating activities:					Cash flow from operating activities:
Net income (loss)		$	7	$	(232)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net income						Net income	$	4,007	$	7��
Adjustments to reconcile net income to net cash provided by operating activities:						Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	Depreciation, depletion and amortization	1,093		1,021		Depreciation, depletion and amortization	1,430		1,093

Metals inventory adjustments	Metals inventory adjustments	92		100		Metals inventory adjustments	15		92

Net loss (gain) on sales of assets		13		(13)
Net (gain) loss on sales of assets						Net (gain) loss on sales of assets	(63)		13
Stock-based compensation	Stock-based compensation	60		52		Stock-based compensation	79		60
Net charges for environmental and asset retirement obligations, including accretion	Net charges for environmental and asset retirement obligations, including accretion	166		160		Net charges for environmental and asset retirement obligations, including accretion	131		166
Payments for environmental and asset retirement obligations	Payments for environmental and asset retirement obligations	(162)		(164)		Payments for environmental and asset retirement obligations	(184)		(162)
Net charges for defined pension and postretirement plans	Net charges for defined pension and postretirement plans	59		79		Net charges for defined pension and postretirement plans	3		59
Pension plan contributions	Pension plan contributions	(30)		(58)		Pension plan contributions	(75)		(30)
Net loss on early extinguishment of debt	Net loss on early extinguishment of debt	100		27		Net loss on early extinguishment of debt	—		100
Deferred income taxes	Deferred income taxes	119		71		Deferred income taxes	96		119

Dividends received from PT Smelting		3		33

Settlements of PT Freeport Indonesia (PT-FI) environmental and surface water tax matters		(19)		28
Payment for PT-FI environmental matter		(14)		0

Charges for Cerro Verde royalty dispute	Charges for Cerro Verde royalty dispute	26		40		Charges for Cerro Verde royalty dispute	11		26
Payments for Cerro Verde royalty dispute	Payments for Cerro Verde royalty dispute	(119)		(126)		Payments for Cerro Verde royalty dispute	(421)		(119)
Other, net	Other, net	(23)		20		Other, net	39		(53)
Changes in working capital and other:	Changes in working capital and other:					Changes in working capital and other:
Accounts receivable	Accounts receivable	132		210		Accounts receivable	(218)		132
Inventories	Inventories	59		224		Inventories	(310)		59
Other current assets	Other current assets	(17)		15		Other current assets	(77)		(17)
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	40		(45)		Accounts payable and accrued liabilities	123		40
Accrued income taxes and timing of other tax payments	Accrued income taxes and timing of other tax payments	105		(130)		Accrued income taxes and timing of other tax payments	849		105
Net cash provided by operating activities	Net cash provided by operating activities	1,690		1,312		Net cash provided by operating activities	5,435		1,690

Cash flow from investing activities:	Cash flow from investing activities:					Cash flow from investing activities:
Capital expenditures:	Capital expenditures:					Capital expenditures:
North America copper mines	North America copper mines	(398)		(641)		North America copper mines	(211)		(398)
South America	South America	(156)		(176)		South America	(94)		(156)
Indonesia		(959)		(992)

Indonesia mining						Indonesia mining	(904)		(865)
Indonesia smelter development						Indonesia smelter development	(79)		(94)
Molybdenum mines	Molybdenum mines	(14)		(11)		Molybdenum mines	(4)		(14)

Other	Other	(46)		(97)		Other	(52)		(46)
Proceeds from sale of Freeport Cobalt						Proceeds from sale of Freeport Cobalt	150		—

Proceeds from sales of assets		146		102
Proceeds from sales of other assets						Proceeds from sales of other assets	21		146
Acquisition of minority interest in PT Smelting						Acquisition of minority interest in PT Smelting	(33)		—
Other, net	Other, net	(6)		(10)		Other, net	(25)		(6)
Net cash used in investing activities	Net cash used in investing activities	(1,433)		(1,825)		Net cash used in investing activities	(1,231)		(1,433)

Cash flow from financing activities:	Cash flow from financing activities:					Cash flow from financing activities:
Proceeds from debt	Proceeds from debt	3,236		1,681		Proceeds from debt	633		3,236
Repayments of debt	Repayments of debt	(3,105)		(2,917)		Repayments of debt	(672)		(3,105)

Cash dividends and distributions paid:	Cash dividends and distributions paid:					Cash dividends and distributions paid:
Common stock	Common stock	(73)		(218)		Common stock	(220)		(73)
Noncontrolling interests	Noncontrolling interests	0		(79)		Noncontrolling interests	(187)		—
Contributions from noncontrolling interests	Contributions from noncontrolling interests	115		133		Contributions from noncontrolling interests	135		115
Stock-based awards net payments		(2)		(7)
Proceeds from exercised stock options						Proceeds from exercised stock options	189		3
Payments for withholding of employee taxes related to stock-based awards						Payments for withholding of employee taxes related to stock-based awards	(19)		(5)
Debt financing costs and other, net	Debt financing costs and other, net	(51)		(23)		Debt financing costs and other, net	(47)		(51)
Net cash provided by (used in) financing activities		120		(1,430)
Net cash (used in) provided by financing activities						Net cash (used in) provided by financing activities	(188)		120

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents		377		(1,943)
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents						Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents	4,016		377

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	2,278		4,455		Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	3,903		2,278
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	2,655	$	2,512	Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	7,919	$	2,655

The accompanying notes are an integral part of these consolidated financial statements.

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Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

THREE MONTHS ENDED SEPTEMBER 30


		Stockholders’ Equity																																		Stockholders’ Equity
		Common Stock									Accum-ulated Deficit				Accumu- lated Other Compre- hensive Loss				Common Stock Held in Treasury					Total Stock-holders’ Equity												Common Stock												Accum-ulated Deficit				Accumu- lated Other Compre- hensive Loss				Common Stock Held in Treasury					Total Stock-holders’ Equity
		Number of Shares		At Par Value				Capital in Excess of Par Value									Number of Shares			At Cost						Non- controlling Interests			Total Equity				Number of Shares						At Par Value				Capital in Excess of Par Value							Number of Shares						At Cost				Non- controlling Interests				Total Equity
										Accum-ulated Deficit									Accumu- lated Other Compre- hensive Loss				Total Stock-holders’ Equity																		Accum-ulated Deficit						Accumu- lated Other Compre- hensive Loss										Total Stock-holders’ Equity
			(In millions)																																	(In millions)
Balance at June 30, 2020		1,583				$	158						$	25,905			$	(12,718)			$	(652)		131			$	(3,739)	$	8,954				$	8,201		$	17,155
Balance at June 30, 2021																																		Balance at June 30, 2021		1,601							$	160						$	26,084			$	(9,880)			$	(576)		133			$	(3,777)		$	12,011		$	8,924		$	20,935

Exercised and issued stock-based awards	Exercised and issued stock-based awards	1		—				1					—				—				—					—			1					—						1		Exercised and issued stock-based awards	—				—			6				—			—			—			—			6			—			6
Stock-based compensation, including the tender of shares	Stock-based compensation, including the tender of shares	—		—				8			—				—				—		0			8			0				8			Stock-based compensation, including the tender of shares		—					—				21			—				—				—		—			21			—			21

Dividends																																		Dividends		—					—				(111)			—				—				—		—			(111)			(94)			(205)

Change in ownership interests		—		—				—			—				—				—		—			—			1				1
Contributions from noncontrolling interests	Contributions from noncontrolling interests	—		—				20			—				—				��		—			20			21				41			Contributions from noncontrolling interests		—					—				23			—				—				—		—			23			24			47

Net income attributable to common stockholders	Net income attributable to common stockholders	—		—				—			329				—				—		—			329			—				329			Net income attributable to common stockholders		—					—				—			1,399				—				—		—			1,399			—			1,399
Net income attributable to noncontrolling interests	Net income attributable to noncontrolling interests	—		—				—			—				—				—		—			—			103				103			Net income attributable to noncontrolling interests		—					—				—			—				—				—		—			—			324			324
Other comprehensive loss		—		—				—			—				(76)				—		—			(76)			0				(76)
Balance at September 30, 2020		1,584		$	158			$	25,934		$	(12,389)			$	(728)			131		$	(3,739)		$	9,236		$	8,326			$	17,562
Other comprehensive income																																		Other comprehensive income		—					—				—			—				4				—		—			4			—			4
Balance at September 30, 2021																																		Balance at September 30, 2021		1,601					$	160			$	26,023		$	(8,481)			$	(572)			133		$	(3,777)		$	13,353		$	9,178		$	22,531

Stockholders’ Equity
Common Stock Accum-ulated Deficit Accumu-
lated
Other Compre-
hensive
Loss Common Stock
Held in Treasury Total
Stock-holders’ Equity
Number
of
Shares At Par
Value Capital in
Excess of
Par Value Number
of
Shares At
Cost Non-
controlling
Interests Total
Equity
(In millions)
Balance at June 30, 2019 1,582 $ 158 $ 25,949 $ (12,082) $ (582) 131 $ (3,734) $ 9,709 $ 8,108 $ 17,817
Stock-based compensation, including the tender of shares — — 9 — — 0 (1) 8 1 9
Dividends — — (72) — — — — (72) 0 (72)
Contributions from noncontrolling interests — — 16 — — — — 16 17 33
Adjustment for deferred taxes — — (22) — — — — (22) — (22)
Net loss attributable to common stockholders — — — (207) — — — (207) — (207)
Net loss attributable to noncontrolling interests — — — — — — — — (27) (27)
Other comprehensive income (loss) — — — — 12 — — 12 (1) 11
Balance at September 30, 2019 1,582 $ 158 $ 25,880 $ (12,289) $ (570) 131 $ (3,735) $ 9,444 $ 8,098 $ 17,542


	Stockholders’ Equity
	Common Stock					Accum-ulated Deficit		Accumu- lated Other Compre- hensive Loss		Common Stock Held in Treasury			Total Stock-holders’ Equity
	Number of Shares	At Par Value		Capital in Excess of Par Value						Number of Shares	At Cost				Non- controlling Interests		Total Equity

	(In millions)
Balance at June 30, 2020	1,583	$	158	$	25,905	$	(12,718)	$	(652)	131	$	(3,739)	$	8,954	$	8,201	$	17,155





Exercised and issued stock-based awards	1	—		1		—		—		—	—		1		—		1
Stock-based compensation, including the tender of shares	—	—		8		—		—		—	—		8		—		8






Change in ownership interests	—	—		—		—		—		—	—		—		1		1
Contributions from noncontrolling interests	—	—		20		—		—		—	—		20		21		41


Net income attributable to common stockholders	—	—		—		329		—		—	—		329		—		329
Net income attributable to noncontrolling interests	—	—		—		—		—		—	—		—		103		103
Other comprehensive loss	—	—		—		—		(76)		—	—		(76)		—		(76)
Balance at September 30, 2020	1,584	$	158	$	25,934	$	(12,389)	$	(728)	131	$	(3,739)	$	9,236	$	8,326	$	17,562

The accompanying notes are an integral part of these consolidated financial statements.

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Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

NINE MONTHS ENDED SEPTEMBER 30

Stockholders’ Equity
Common Stock Accum-ulated Deficit Accumu-
lated
Other Compre-
hensive
Loss Common Stock
Held in Treasury Total
Stock-holders’ Equity
Number
of
Shares At Par
Value Capital in
Excess of
Par Value Number
of
Shares At
Cost Non-
controlling
Interests Total
Equity
(In millions)
Balance at December 31, 2019 1,582 $ 158 $ 25,830 $ (12,280) $ (676) 131 $ (3,734) $ 9,298 $ 8,150 $ 17,448
Exercised and issued stock-based awards 2 — 2 — — — — 2 — 2
Stock-based compensation, including the tender of shares — — 46 — — — (5) 41 1 42
Change in ownership interests — — — — — — — — 1 1
Contributions from noncontrolling interests — — 56 — — — — 56 59 115
Net loss attributable to common stockholders — — — (109) — — — (109) — (109)
Net income attributable to noncontrolling interests — — — — — — — — 116 116
Other comprehensive loss — — — — (52) — — (52) (1) (53)
Balance at September 30, 2020 1,584 $ 158 $ 25,934 $ (12,389) $ (728) 131 $ (3,739) $ 9,236 $ 8,326 $ 17,562



	Stockholders’ Equity
	Common Stock					Accum-ulated Deficit		Accumu- lated Other Compre- hensive Loss		Common Stock Held in Treasury			Total Stock-holders’ Equity
	Number of Shares	At Par Value		Capital in Excess of Par Value						Number of Shares	At Cost				Non- controlling Interests		Total Equity

	(In millions)
Balance at December 31, 2020	1,590	$	159	$	26,037	$	(11,681)	$	(583)	132	$	(3,758)	$	10,174	$	8,494	$	18,668



Exercised and issued stock-based awards	11	1		189		—		—		—	—		190		—		190
Stock-based compensation, including the tender of shares	—	—		64		—��		—		1	(19)		45		(4)		41


Dividends	—	—		(333)		—		—		—	—		(333)		(187)		(520)

Contributions from noncontrolling interests	—	—		66		—		—		—	—		66		69		135
Net income attributable to common stockholders	—	—		—		3,200		—		—	—		3,200		—		3,200
Net income attributable to noncontrolling interests	—	—		—		—		—		—	—		—		807		807
Other comprehensive income (loss)	—	—		—		—		11		—	—		11		(1)		10
Balance at September 30, 2021	1,601	$	160	$	26,023	$	(8,481)	$	(572)	133	$	(3,777)	$	13,353	$	9,178	$	22,531

Stockholders’ Equity
Common Stock Accum-ulated Deficit Accumu-
lated
Other Compre-
hensive
Loss Common Stock
Held in Treasury Total
Stock-holders’ Equity
Number
of
Shares At Par
Value Capital in
Excess of
Par Value Number
of
Shares At
Cost Non-
controlling
Interests Total
Equity
(In millions)
Balance at December 31, 2018 1,579 $ 158 $ 26,013 $ (12,041) $ (605) 130 $ (3,727) $ 9,798 $ 8,094 $ 17,892
Exercised and issued stock-based awards 3 — 1 — — — — 1 — 1
Stock-based compensation, including the tender of shares — — 42 — — 1 (8) 34 1 35
Dividends — — (218) — — — — (218) (70) (288)
Change in ownership interests — — (1) — — — — (1) (11) (12)
Contributions from noncontrolling interests — — 65 — — — — 65 68 133
Adjustments for deferred taxes — — (22) — — — — (22) — (22)
Net loss attributable to common stockholders — — — (248) — — — (248) — (248)
Net income attributable to noncontrolling interests — — — — — — — — 16 16
Other comprehensive income — — — — 35 — — 35 0 35
Balance at September 30, 2019 1,582 $ 158 $ 25,880 $ (12,289) $ (570) 131 $ (3,735) $ 9,444 $ 8,098 $ 17,542

~~The accompanying notes are an integral part of these consolidated financial statements.~~



	Stockholders’ Equity
	Common Stock					Accum-ulated Deficit		Accumu- lated Other Compre- hensive Loss		Common Stock Held in Treasury			Total Stock-holders’ Equity
	Number of Shares	At Par Value		Capital in Excess of Par Value						Number of Shares	At Cost				Non- controlling Interests		Total Equity

	(In millions)
Balance at December 31, 2019	1,582	$	158	$	25,830	$	(12,280)	$	(676)	131	$	(3,734)	$	9,298	$	8,150	$	17,448





Exercised and issued stock-based awards	2	—		2		—		—		—	—		2		—		2
Stock-based compensation, including the tender of shares	—	—		46		—		—		—	(5)		41		1		42






Change in ownership interests	—	—		—		—		—		—	—		—		1		1
Contributions from noncontrolling interests	—	—		56		—		—		—	—		56		59		115

Net loss attributable to common stockholders	—	—		—		(109)		—		—	—		(109)		—		(109)
Net income attributable to noncontrolling interests	—	—		—		—		—		—	—		—		116		116
Other comprehensive loss	—	—		—		—		(52)		—	—		(52)		(1)		(53)
Balance at September 30, 2020	1,584	$	158	$	25,934	$	(12,389)	$	(728)	131	$	(3,739)	$	9,236	$	8,326	$	17,562

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Freeport-McMoRan Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1. GENERAL INFORMATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles ~~(GAAP)~~ in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, ~~2019 (2019~~2020 (2020 Form 10-K). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the nine-month period ended September 30, ~~2020,~~2021, are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2020.~~2021.

~~Operations Update.~~Trade Accounts Receivable Agreements. In ~~April 2020, FCX announced revised operating plans~~first-quarter 2021, PT Freeport Indonesia (PT-FI) entered into agreements to sell certain trade accounts receivables to unrelated third-party financial institutions. The agreements were entered into in ~~response~~the normal course of business to fund the working capital for the additional quantity of copper to be supplied by PT-FI to PT Smelting (PT-FI’s 39.5 percent owned copper smelter and refinery in Gresik, Indonesia - see “Acquisition of Minority Interest in PT Smelting” below for further discussion). The balances sold under the agreements were excluded from trade accounts receivable on the consolidated balance sheet at September 30, 2021. Receivables are considered sold when (i) they are transferred beyond the reach of PT-FI and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) PT-FI has no continuing involvement in the transferred receivables. In addition, PT-FI provides no other forms of continued financial support to the ~~global COVID-19 pandemic and resulting negative impact on~~purchaser of the ~~global economy. FCX proactively implemented operating protocols at each of its operating sites to contain and mitigate~~receivables once the risk of spread of COVID-19. FCX also continues to work closely with communities where it operates across the globe and has provided monetary support and in-kind contributions of medical supplies, equipment and food.receivables are sold.

Following COVID-19 restrictions imposed by the Peruvian government in March 2020, Cerro Verde, FCX’s mine in Peru, implemented strict health protocols and a plan to restore its operations was approved by the Peruvian government in second-quarter 2020. Cerro Verde continued to make progress toward restoring operations during third-quarter 2020.

~~FCX completed a review of options for restarting its Chino mine in New Mexico and currently expects to restart Chino at a reduced rate beginning in 2021.~~

During second-quarter 2020, FCX implemented a series of actions to reduce administrative and centralized support costs in conjunction with its April 2020 revised operating plans. Cost savings initiatives included a temporary reduction in certain employee benefits, furloughs and an employee separation program, and reductions in third party service costs, facilities costs, travel and other expenses.

~~FCX recognized charges totaling $34~~Gross amounts sold under these arrangements totaled $131 million in third-quarter ~~2020~~2021 and ~~$258~~$319 million for the ~~first nine months of 2020 associated with~~nine-month period ended September 30, 2021. Discounts on the COVID-19 pandemic and revised operating plans, including employee separation charges. These charges, none of which were capitalized into inventory, were recorded to production and delivery ($30 million in third-quarter 2020 and $202 million for the first nine months of 2020); depreciation, depletion and amortization ($3 million in third-quarter 2020 and $32 million for the first nine months of 2020); selling, general and administrative expenses (lesssold receivables totaled less than $1 million in third-quarter ~~2020~~2021 and ~~$15~~$1 million for the ~~first nine months of 2020) and mining exploration and research expenses (less than $1 million in third-quarter 2020 and $8 million for the first nine months of 2020).~~nine-month period ended September 30, 2021.

~~Pension Plan Amendment.~~Acquisition of Minority Interest in PT Smelting. ~~In August 2020,~~On April 30, 2021, PT-FI acquired 14.5 percent of the ~~FMC Retirement Plan (the Plan) was amended such that, effective~~outstanding common stock of PT Smelting for $33 million, increasing its ownership interest from 25 percent to 39.5 percent. The remaining shares of PT Smelting continue to be owned by Mitsubishi Materials Corporation. PT-FI has continued to account for its investment in PT Smelting using the equity method since it does not have control over PT Smelting.

Sale of Freeport Cobalt. On September 1, ~~2020, participants~~2021, FCX’s 56-percent-owned subsidiary, Koboltti Chemicals Holdings Limited (KCHL), completed the sale of its remaining cobalt business based in Kokkola, Finland (Freeport Cobalt) to Jervois Global Limited (Jervois) for $208 million (subject to post-closing adjustments), consisting of cash consideration of $173 million and 7 percent of Jervois shares (valued at $35 million). At closing, Freeport Cobalt’s assets included cash of approximately $20 million and other net assets of $125 million. FCX recorded a gain of $60 million ($34 million to net income attributable to common stock) in third-quarter 2021. In addition, KCHL will ~~no longer accrue any additional benefits under~~have the ~~Plan. As a result, FCX remeasured its pension assets and benefit obligation as~~right to receive contingent consideration of ~~July 31, 2020. The discount rate and expected long-term rate of return~~up to $40 million based on the ~~plan assets used~~future performance of Freeport Cobalt. Any gain related to the contingent consideration will be recognized when received.

The operating results of Freeport Cobalt are not significant to FCX’s financial statements for the ~~July~~year ended December 31, 2020, ~~remeasurement were 2.40 percent~~or the three- and 6.25 percent, respectively, compared to 3.40 percent and 6.50 percent, respectively at December 31, 2019. The rate of compensation increase was unchanged (3.25 percent). The remeasurement and curtailment resulted in the projected benefit obligation increasing by $184 million and plan assets increasing by $103 million. In addition, FCX recognized a curtailment loss of $4 million in third-quarter 2020. As ofnine-month periods ended September 30, ~~2020,~~2021.

Subsequent Events. FCX evaluated events after September 30, 2021, and through the ~~funded status of the Plan was a net liability of $888 million (included in other liabilities in~~date the consolidated ~~balance sheet).~~financial statements were issued, and took into account events and transactions occurring during this period requiring recognition or disclosure in these consolidated financial statements.

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NOTE 2. EARNINGS PER SHARE

FCX calculates its basic net income ~~(loss)~~ per share of common stock under the two-class method and calculates its diluted net income (loss) per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income (loss) per share of common stock was computed by dividing net income (loss) attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net income (loss) per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock.

Reconciliations of net income ~~(loss)~~ and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share follow (in millions, except per share amounts):

Three Months Ended Nine Months Ended
September 30, September 30,
2020 2019 2020 2019
Net income (loss) from continuing operations $ 432 $ (235) $ 7 $ (234)
Net (income) loss from continuing operations attributable to noncontrolling interests (103) 27 (116) (16)
Undistributed earnings allocated to participating securities (3) (3) (3) (3)
Net income (loss) from continuing operations attributable to common stockholders 326 (211) (112) (253)
Net income from discontinued operations attributable to common stockholders 0 1 0 2
Net income (loss) attributable to common stockholders $ 326 $ (210) $ (112) $ (251)
Basic weighted-average shares of common stock outstanding 1,453 1,452 1,453 1,451
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)a
8 0 0 0
Diluted weighted-average shares of common stock outstanding 1,461 1,452 1,453 1,451
Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations $ 0.22 $ (0.15) $ (0.08) $ (0.17)
Discontinued operations 0 0 0 0
$ 0.22 $ (0.15) $ (0.08) $ (0.17)


	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2021		2020			2021		2020
Net income	$	1,723	$	432		$	4,007	$	7
Net income attributable to noncontrolling interests	(324)		(103)			(807)		(116)

Undistributed earnings allocated to participating securities	(4)		(3)			(6)		(3)







Net income (loss) attributable to common stockholders	$	1,395	$	326		$	3,194	$	(112)


Basic weighted-average shares of common stock outstanding	1,469		1,453			1,466		1,453
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)	15		8		a	15		—		a
Diluted weighted-average shares of common stock outstanding	1,484		1,461			1,481		1,453




Basic net income (loss) per share attributable to common stockholders	$	0.95	$	0.22		$	2.18	$	(0.08)



Diluted net income (loss) per share attributable to common stockholders	$	0.94	$	0.22		$	2.16	$	(0.08)

a.Excludes approximately 2 million shares in third-quarter 2020 ~~10 million shares in third-quarter 2019,~~and 13 ~~million shares forthe first nine months of 2020 and 11~~ million shares for the first nine months of ~~2019~~2020 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs that were anti-dilutive.

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income (loss) per share of common stock. Stock options for 4 million shares of common stock in third-quarter 2021, 28 million shares of common stock in third-quarter 2020, ~~43 million shares of common stock in third-quarter 2019, 35 million shares of common stock for first nine months of 2020 and 42~~6 million shares of common stock for the first nine months of ~~2019~~2021 and 35 million shares of common stock the first nine months of 2020 were excluded.

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NOTE 3. INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

The components of inventories follow (in millions):

September 30, 2020 December 31, 2019
Current inventories:
Total materials and supplies, neta
$ 1,610 $ 1,649
Mill stockpiles $ 185 $ 220
Leach stockpiles 819 923
Total current mill and leach stockpiles $ 1,004 $ 1,143
Raw materials (primarily concentrate) $ 360 $ 318
Work-in-process 163 124
Finished goods 755 839
Total product $ 1,278 $ 1,281
Long-term inventories:
Mill stockpiles $ 211 $ 181
Leach stockpiles 1,252 1,244
Total long-term mill and leach stockpilesb
$ 1,463 $ 1,425


	September 30, 2021		December 31, 2020
Current inventories:
Total materials and supplies, neta	$	1,617	$	1,594

Mill stockpiles	$	209	$	205
Leach stockpiles	877		809
Total current mill and leach stockpiles	$	1,086	$	1,014

Raw materials (primarily concentrate)	$	437	$	366
Work-in-process	184		174
Finished goods	796		745
Total product	$	1,417	$	1,285

Long-term inventories:
Mill stockpiles	$	223	$	223
Leach stockpiles	1,227		1,240
Total long-term mill and leach stockpilesb	$	1,450	$	1,463

a.Materials and supplies inventory was net of obsolescence reserves totaling ~~$32~~$37 million at September 30, ~~2020,~~2021, and ~~$24~~$32 million at December 31, ~~2019.~~2020.

b.Estimated metals in stockpiles not expected to be recovered within the next 12 months.

~~During third-quarter 2020,~~ FCX recorded ~~net realizable value~~charges for metals inventory adjustments totaling $15 million for the first nine months of 2021 primarily related to ~~decrease long-term metals inventory carrying values by $9 million, primarily for molybdenum inventories because of lower market prices at September 30, 2020.~~a leach stockpile adjustment. Net realizable value inventory adjustments to decrease metals inventory carrying values totaled $92 million for the first nine months of 2020 associated with lower market prices for copper ($58 million) and molybdenum ($34 million). Net realizable value inventory adjustments to decrease metals inventory carrying values totaled $41 million in third-quarter 2019, primarily for copper inventories, and $100 million for the first nine months of 2019, primarily for cobalt inventories ($58 million) and copper inventories ($41 million), because of lower market prices (referRefer to Note 9 for metals inventory adjustments by business ~~segment).~~segment.

Morenci Stockpile Recoveries. In accordance with FCX's policy, processes and recovery rates for mill and leach stockpiles are monitored regularly, and recovery rate estimates are adjusted periodically as additional information becomes available and as related technology changes. Adjustments to recovery rates will typically result in a future impact to the value of the material removed from the stockpiles at a revised weighted-average cost per pound of recoverable copper.

Expected copper recovery rates for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 90 percent depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80 percent of the total copper recovery may occur during the first year, and the remaining copper may be recovered over many years.

Over the last three years, FCX's Morenci mine has experienced improved recoveries and following an analysis of column testing results to date, Morenci concluded it had sufficient evidence to increase its estimated recovery rate for certain of its leach stockpiles effective July 1, 2021. As a result of the revised recovery rate, Morenci increased its estimated recoverable copper in leach stockpiles, net to its joint venture interest, by 191 million pounds. The effect of this change in estimate reduced site production and delivery costs and increased net income by $52 million ($0.04 per share) in the third quarter and first nine months of 2021.

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NOTE 4. INCOME TAXES

Geographic sources of FCX’s (provision for) benefit from ~~(provision for)~~ income taxes follow (in millions):


		Nine Months Ended							Nine Months Ended
		September 30,							September 30,
		2020			2019				2021			2020
U.S. operations	U.S. operations	$	56	a	$	73	b	U.S. operations	$	(7)		$	56	a
International operations	International operations	(389)		c	(254)			International operations	(1,667)		b	(389)		c
Total	Total	$	(333)		$	(181)	d	Total	$	(1,674)		$	(333)

a.Includes a tax credit of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of FCX’s interest in the lower zone of the Timok exploration project in Serbia.

b.Includes net tax ~~credits~~benefits totaling $83 million ($66 million net of noncontrolling interest), consisting of $69 million associated with the release of a portion of the valuation allowances recorded against PT Rio Tinto Indonesia (PT RTI), PT-FI’s wholly owned subsidiary, net operating losses (NOLs) and $24 million primarily associated with ~~state law changes and settlement~~the reversal of ~~state income~~a tax ~~examinations.~~reserve related to the treatment of prior year contractor support costs; partly offset by a tax charge of $10 million associated with the audit of PT-FI's 2019 tax returns.

c.Includes a tax charge of $21 million ($17 million net of noncontrolling interests) associated with establishing a tax reserve related to the treatment of prior year contractor support costs.

d.~~Includes net~~FCX’s consolidated effective income tax ~~charges totaling $49 million primarily~~rate was 29 percent for the first nine months of 2021 and 102 percent for the first nine months of 2020. Because FCX's U.S. jurisdiction generated pre-tax losses for the first nine months of 2020 that did not result in a realized tax benefit, applicable accounting rules required FCX to adjust ~~deferred taxes on historical balance sheet items in accordance with~~its 2020 estimated annual effective tax ~~accounting principles.~~

rate to exclude the impact of U.S. pre-tax losses. Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate.

As discussed in Note 8, Cerro Verde paid the balance of its royalty dispute liabilities during third-quarter 2021, which resulted in a $252 million reduction of unrecognized tax benefits (including a $137 million reduction of accrued interest and penalties), but did not have an impact on FCX’s ~~consolidated effective~~provision for income ~~tax rate was 102 percent~~taxes for the ~~first~~third quarter or nine months ~~of 2020 and 302 percent for the first nine months of 2019. Because FCX's U.S. jurisdiction generated net losses in the first nine~~

~~Table of Contents~~

months of 2020 and 2019 that will not result in a realized tax benefit, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses.ended September 30, 2021.

In connection with the negative impacts of the COVID-19 pandemic on the global economy, governments throughout the world ~~are announcing~~announced measures that are intended to provide tax and other financial relief. Such measures include the American Rescue Plan Act of 2021, enacted on March 11, 2021, and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), ~~signed into law by President Trump~~enacted on March 27, 2020. None of these measures resulted in material impacts to FCX’s provision for income taxes for the nine months ended September 30, 2021 and 2020. However, certain provisions of the CARES Act provided FCX with the opportunity to accelerate collections of tax refunds, primarily those associated with the U.S. alternative minimum tax. FCX collected U.S. alternative minimum tax credit refunds of $23 million in March 2021, $24 million in October 2020 and $221 million in July ~~2020 and $24 million in October~~ 2020. ~~FCX expects to collect an additional $23 million within the next 12 months.~~ FCX continues to evaluate income tax accounting considerations of COVID-19 measures as they develop, including any impact on its measurement of existing deferred tax assets and deferred tax liabilities. FCX will recognize any impact from COVID-19 related changes to tax laws in the period in which the new legislation is enacted.

As previously disclosed in our 2020 Form 10-K, PT-FI received unfavorable Indonesia Tax Court decisions in 2018 with respect to its appeal of capitalized mine development costs on its 2012 and 2014 corporate income tax returns. PT-FI appealed those decisions to the Indonesia Supreme Court. On October 31, 2019, the Indonesia Supreme Court communicated an unfavorable ruling regarding the treatment of mine development costs on PT-FI’s 2014 tax return. During the fourth quarter of 2019, PT-FI met with the Indonesia Tax Office and developed a framework for resolution of the disputed matters and progress of the framework for resolution continued in 2020 and through the nine months ended September 30, 2021.

During October 2021, PT-FI participated in discussions with the Indonesian tax office regarding progress on the framework for resolution of disputes arising from the audits of tax years 2012 through 2016. As a result of these discussions and the revised positions taken by both the Indonesian tax office and PT-FI, FCX believes it can no longer conclude a resolution of all of the disputed tax items at a more-likely-than-not threshold. Because of these recent events, FCX continues to evaluate its uncertain tax positions and may record a material tax charge during fourth-quarter 2021. This tax charge may be offset by a tax benefit related to the additional release of valuation allowance associated with PT Rio Tinto net operating loss carryforwards that PT-FI may deem realizable. PT-FI will

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continue to engage with the Indonesian tax office in pursuit of certain aspects of the original framework for resolution.

NOTE 5. DEBT AND ~~EQUITY~~FINANCIAL POLICY

The components of debt follow (in millions):


		September 30, 2020		December 31, 2019			September 30, 2021			December 31, 2020

Senior notes and debentures:	Senior notes and debentures:					Senior notes and debentures:
Issued by FCX	Issued by FCX	$	8,780	$	8,602	Issued by FCX	$	8,790		$	8,783
Issued by Freeport Minerals Corporation (FMC)		356		357
Issued by Freeport Minerals Corporation						Issued by Freeport Minerals Corporation	355			356

Cerro Verde credit facility		827		826

Cerro Verde Term Loan						Cerro Verde Term Loan	325			523
PT-FI Term Loan						PT-FI Term Loan	146			—
Other	Other	67		41		Other	49			49
Total debt	Total debt	10,030		9,826		Total debt	9,665			9,711
Less current portion of debt	Less current portion of debt	(47)		(5)		Less current portion of debt	(897)		a	(34)
Long-term debt	Long-term debt	$	9,983	$	9,821	Long-term debt	$	8,768		$	9,677

a.Includes $524 million for the 3.55% Senior Notes, which will be redeemed on December 1, 2021, and $325 million for the Cerro Verde Term Loan due June 2022.

Revolving Credit Facility. At September 30, ~~2020,~~2021, FCX had 0no borrowings outstanding and ~~$13~~$8 million in letters of credit issued under its revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit. Availability under FCX’s revolving credit facility consists of $3.28 billion maturing April 2024 and $220 million maturing April 2023.

In ~~June 2020,~~March 2021, FCX ~~PT-FI and Freeport-McMoRan Oil & Gas LLC (FM O&G LLC) amended~~delivered a Covenant Reversion Notice (as defined in the ~~$3.5 billion unsecured~~third amendment to the revolving credit ~~facility. The key changes under~~facility dated June 3, 2020), which provided notification of its election to end the Covenant Increase Period (as defined in the third amendment ~~include (i)~~to the revolving credit facility dated June 3, 2020). As a ~~suspension of~~result, the ~~total~~ leverage ratio ~~through June 30, 2021, followed by a~~ limit ofreverted to 5.25x and stepped down to 3.75x beginning with the quarter ending September 30, 2021, and ~~stepping down to 3.75x beginning January 1, 2022; and (ii) a reduction in~~ the interest expense coverage ratio minimum reverted to ~~a minimum of 2.00x through December 31, 2021, reverting~~2.25x. Additionally, following FCX’s election to ~~2.25x beginning January 1, 2022. FCX also agreed to a minimum liquidity covenant of $1 billion (consisting of consolidated unrestricted cash and availability under~~end the ~~revolving credit facility) applicable to each quarter through June 30, 2021, and~~Covenant Increase Period, the additional ~~restrictions~~limits on priority debt and liens, and the provisions related to minimum liquidity and restricted payments (which included restrictions on the payment of common stock ~~dividends through December 31, 2021. FCX retained the option to revert to the previous covenant requirements if it is determined additional flexibility is~~dividends) are no longer ~~needed.~~applicable. At September 30, ~~2020,~~2021, FCX was in compliance with its revolving credit facility covenants.

PT-FI Credit Facility. In July 2021, PT-FI entered into a $1.0 billion, five-year, unsecured credit facility (consisting of a $667 million term loan and a $333 million revolving credit facility) to fund project costs in connection with the PT Smelting expansion and construction of a precious metals refinery (PMR), and for PT-FI’s general corporate purposes. The term loan allows for borrowings up to $667 million within the first three years, and then the loan amortizes in four installments, with 15 percent of the outstanding balance due in January 2025, 15 percent due in July 2025, 35 percent due in January 2026 and the remaining 35 percent due in July 2026. The $333 million revolving credit facility is available for drawings until June 2026. Amounts drawn under the credit facility bear interest at the London Inter-bank Offered Rate plus a margin of 1.875% or 2.125%, as defined by the agreement.

PT-FI’s credit facility contains customary affirmative covenants and representations and also contains standard covenants that, among other things, restrict, subject to certain exceptions, the ability of PT-FI to incur additional indebtedness; create liens on assets; enter into sale and leaseback transactions; sell assets; and modify or amend the shareholders agreement or related governance structure. The credit facility also contains financial ratios governing maximum total leverage and minimum interest expense coverage and certain environmental and social compliance requirements.

As of September 30, 2021, $158 million ($146 million net of debt issuance costs) was drawn under the PT-FI Term Loan and no amounts were drawn under the revolving credit facility.

Senior Notes. On ~~July 27, 2020,~~October 21, 2021, FCX ~~completed the sale~~called for redemption all of ~~$650~~its outstanding $524 million principal amount of ~~4.375%~~3.55% Senior Notes due ~~2028~~2022. The notes will be redeemed on December 1, 2021, at a redemption price equal to 100 percent of the principal amount of the notes outstanding, plus accrued and ~~$850 million~~unpaid interest to, but not including, the redemption date. Annual interest costs associated with the 3.55% Senior Notes approximate $19 million. FCX has no other senior note maturities until March 2023.

Table of ~~4.625%~~Contents

As further discussed in the 2020 Form 10-K, in the first nine months of 2020, FCX redeemed in full or purchased a portion of its 4.00% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.485 billion. Interest on these senior notes is payable semiannually on February 1 and August 1 of each year. These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. FCX used $1.4 billion of the net proceeds from this offering to purchase a portion of its2021, 3.55% Senior Notes due 2022, 3.875% Senior Notes due 2023 and 4.55% Senior Notes due 2024, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. The remaining net proceeds from this offering will be used for general corporate purposes, which may include repurchases or redemptions of outstanding senior notes.

On March 4, 2020, FCX completed the sale of $700 million of 4.125% Senior Notes due 2028 and $600 million of 4.25% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.285 billion. Interest on these senior notes is payable semiannually on March 1 and September 1 of each year. These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. FCX used a portion of the net proceeds from this offering to purchase a portion of its 4.00% Senior Notes due 2021 and its 3.55% Senior Notes

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due 2022 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. On April 3, 2020, FCX used the remaining net proceeds to fund the make-whole redemption of all of its remaining 4.00% Senior Notes due 2021 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with the transaction.

2024. As a result of these transactions, FCX recorded ~~losses~~a loss on early extinguishment of debt ~~totaling~~of $59 million in third-quarter 2020 and $100 million for the nine months ended September 30, 2020.

Cerro Verde Term Loan. In September 2021, Cerro Verde prepaid $200 million on its term loan. The $325 million balance of the loan is due June 2022.

Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $157 million in third-quarter 2021, $160 million in third-quarter 2020, ~~$163~~$482 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $490 million for the first nine months of ~~2020 and $508 million for the first nine months of 2019.~~2020. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $19 million in third-quarter 2021, $40 million in ~~both~~ third-quarter 2020, $51 million for the first nine months of 2021 and ~~third-quarter 2019,~~ $128 million for the first nine months of ~~2020 and $107 million~~2020. The decrease in capitalized interest for the ~~first nine months of 2019.~~2021 periods results from assets placed in service as PT-FI’s underground mining operations continue to ramp up.

~~Common Stock.~~Financial Policy. In ~~March 2020, in response to the COVID-19 pandemic and resulting global economic uncertainties, the FCX~~February 2021, FCX’s Board of Directors ~~(the Board) suspended~~(Board) adopted a financial policy for the allocation of cash flows aligned with FCX’s ~~quarterly~~strategic objectives of maintaining a strong balance sheet and increasing cash returns to shareholders while advancing opportunities for future growth. The policy includes a base dividend and a performance-based payout framework, whereby up to 50 percent of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to FCX maintaining its net debt at a level not to exceed the net debt target of $3 billion to $4 billion (excluding project debt for additional smelting capacity in Indonesia).

In February 2021, the Board reinstated a cash dividend ~~of $0.05 per share previously planned for May 1, 2020. The Board does not expect to declare~~on FCX’s common stock ~~dividends during 2020.~~(base dividend), and on November 1, 2021, the Board approved (i) a new share repurchase program authorizing repurchases of up to $3.0 billion of FCX common stock, and (ii) a variable cash dividend on FCX’s common stock for 2022.

The timing and amount of any share repurchases will be at the discretion of management and will depend on a variety of factors. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion. The declaration and payment of ~~future~~ dividends (base or variable) is also at the discretion of the Board and will ~~be assessed~~depend on ~~an ongoing basis, taking into account FCX’s~~FCX's financial results, cash requirements, ~~future~~business prospects, global economic conditions and other factors deemed relevant by the Board. ~~As noted above, in accordance with the June 2020 amendment to the revolving credit facility,~~

On September 22, 2021, FCX ~~is restricted from declaring or paying~~declared a quarterly cash dividend (base dividend) of $0.075 per share

on its common stock, ~~dividends through December 31,~~which was paid on November 1, 2021, ~~unless FCX, at its option, reverts~~ to ~~the previous covenant requirements which would also eliminate the restriction on the declaration or payment~~common stockholders of ~~common stock dividends.~~record as of October 15, 2021.

NOTE 6. FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions.

In April 2020, FCX entered into forward sales contracts for 150 million pounds of copper for settlement in May and June of 2020. The forward sales provided for fixed pricing of $2.34 per pound of copper on approximately 60 percent of North America's sales volumes for May and June 2020. These contracts resulted in hedging losses totaling $24 million in second-quarter 2020 and for the ~~nine~~six months ended ~~September~~June 30, 2020. There were no remaining forward sales contracts ~~after~~as of June 30, 2020.

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A discussion of FCX’s other derivative contracts and programs ~~follows.~~follows:

Derivatives Designated as Hedging Instruments – Fair Value Hedges

Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod and cathode customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the nine-month periods ended September 30, ~~2020~~2021 and ~~2019.~~2020. At September 30, ~~2020,~~2021, FCX held copper futures and swap contracts that qualified for hedge accounting for 5084 million pounds at an average contract price of ~~$2.76~~$4.23 per pound, with maturities through ~~December 2021.~~May 2023.

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A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including the unrealized (losses) gains ~~(losses)~~ on the related hedged item follows (in millions):


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
		September 30,				September 30,					September 30,				September 30,
		2020		2019		2020		2019			2021		2020		2021		2020
Copper futures and swap contracts:	Copper futures and swap contracts:									Copper futures and swap contracts:
Unrealized gains (losses):
Unrealized (losses) gains:										Unrealized (losses) gains:
Derivative financial instruments	Derivative financial instruments	$	1	$	(2)	$	8	$	3	Derivative financial instruments	$	(20)	$	1	$	(28)	$	8
Hedged item – firm sales commitments	Hedged item – firm sales commitments	(1)		2		(8)		(3)		Hedged item – firm sales commitments	20		(1)		28		(8)

Realized gains (losses):	Realized gains (losses):									Realized gains (losses):
Matured derivative financial instruments	Matured derivative financial instruments	15		(8)		(1)		(9)		Matured derivative financial instruments	5		15		57		(1)

Derivatives Not Designated as Hedging Instruments

Embedded Derivatives. Certain FCX concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association ~~(LBMA)~~(London) gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement. FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX copper prices and the ~~LBMA~~London gold prices as specified in the contracts, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate or cathode at the then-current LME or COMEX copper price, and the ~~LBMA~~London gold price. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME or COMEX copper forward prices and the adjusted ~~LBMA~~London gold prices, until the date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

A summary of FCX’s embedded derivatives at September 30, ~~2020,~~2021, follows:


		Open Positions	Average Price Per Unit				Maturities Through		Open Positions	Average Price Per Unit				Maturities Through
			Contract		Market					Contract		Market
Embedded derivatives in provisional sales contracts:	Embedded derivatives in provisional sales contracts:							Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	Copper (millions of pounds)	381	$	2.91	$	3.03	March 2021	Copper (millions of pounds)	548	$	4.28	$	4.05	February 2022
Gold (thousands of ounces)	Gold (thousands of ounces)	116	1,941		1,891		January 2021	Gold (thousands of ounces)	196	1,790		1,738		January 2022
Embedded derivatives in provisional purchase contracts:	Embedded derivatives in provisional purchase contracts:							Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	Copper (millions of pounds)	113	2.95		3.03		January 2021	Copper (millions of pounds)	116	4.31		4.05		February 2022

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Copper Forward Contracts. Atlantic Copper, FCX’s wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in production and delivery costs. At September 30, ~~2020,~~2021, Atlantic Copper held net copper forward purchase contracts for 269 million pounds at an average contract price of ~~$3.05~~$4.23 per pound, with maturities through November ~~2020.~~2021.

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Summary of ~~Gains~~ (Losses). Gains. A summary of the realized and unrealized (losses) gains ~~(losses)~~ recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
		September 30,				September 30,					September 30,				September 30,
		2020		2019		2020		2019			2021		2020		2021		2020
Embedded derivatives in provisional sales contracts:a	Embedded derivatives in provisional sales contracts:a									Embedded derivatives in provisional sales contracts:a
Copper	Copper	$	94	$	(57)	$	18	$	(57)	Copper	$	(102)	$	94	$	223	$	18
Gold and other metals	Gold and other metals	15		6		39		17		Gold and other metals	(9)		15		(22)		39
Copper forward contractsb	Copper forward contractsb	(7)		0		12		(3)		Copper forward contractsb	1		(7)		(12)		12

a.Amounts recorded in revenues.

b.Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments

A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):


		September 30, 2020		December 31, 2019			September 30, 2021		December 31, 2020
Commodity Derivative Assets:	Commodity Derivative Assets:					Commodity Derivative Assets:
Derivatives designated as hedging instruments:	Derivatives designated as hedging instruments:					Derivatives designated as hedging instruments:
Copper futures and swap contracts	Copper futures and swap contracts	$	13	$	6	Copper futures and swap contracts	$	2	$	15
Derivatives not designated as hedging instruments:	Derivatives not designated as hedging instruments:					Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	Embedded derivatives in provisional sales/purchase contracts	51		68		Embedded derivatives in provisional sales/purchase contracts	30		169
Copper forward contracts	Copper forward contracts	1		0		Copper forward contracts	5		—
Total derivative assets	Total derivative assets	$	65	$	74	Total derivative assets	$	37	$	184

Commodity Derivative Liabilities:	Commodity Derivative Liabilities:					Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:	Derivatives designated as hedging instruments:					Derivatives designated as hedging instruments:
Copper futures and swap contracts	Copper futures and swap contracts	$	0	$	0	Copper futures and swap contracts	$	14	$	—
Derivatives not designated as hedging instruments:	Derivatives not designated as hedging instruments:					Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	Embedded derivatives in provisional sales/purchase contracts	20		20		Embedded derivatives in provisional sales/purchase contracts	134		21

Copper forward contracts	Copper forward contracts	0		1		Copper forward contracts	4		—
Total derivative liabilities	Total derivative liabilities	$	20	$	21	Total derivative liabilities	$	152	$	21

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FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by contract on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances.

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A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):


		Assets				Liabilities					Assets				Liabilities
		September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019			September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020

Gross amounts recognized:	Gross amounts recognized:									Gross amounts recognized:
Embedded derivatives in provisional	Embedded derivatives in provisional									Embedded derivatives in provisional
sales/purchase contracts	sales/purchase contracts	$	51	$	68	$	20	$	20	sales/purchase contracts	$	30	$	169	$	134	$	21

Copper derivatives	Copper derivatives	14		6		0		1		Copper derivatives	7		15		18		—
		65		74		20		21			37		184		152		21

Less gross amounts of offset:	Less gross amounts of offset:									Less gross amounts of offset:
Embedded derivatives in provisional	Embedded derivatives in provisional									Embedded derivatives in provisional
sales/purchase contracts	sales/purchase contracts	3		0		3		0		sales/purchase contracts	—		1		—		1

Copper derivatives										Copper derivatives	4		—		4		—
		3		0		3		0			4		1		4		1

Net amounts presented in balance sheet:	Net amounts presented in balance sheet:									Net amounts presented in balance sheet:
Embedded derivatives in provisional	Embedded derivatives in provisional									Embedded derivatives in provisional
sales/purchase contracts	sales/purchase contracts	48		68		17		20		sales/purchase contracts	30		168		134		20

Copper derivatives	Copper derivatives	14		6		0		1		Copper derivatives	3		15		14		—
		$	62	$	74	$	17	$	21		$	33	$	183	$	148	$	20

Balance sheet classification:	Balance sheet classification:									Balance sheet classification:
Trade accounts receivable	Trade accounts receivable	$	46	$	66	$	5	$	0	Trade accounts receivable	$	3	$	168	$	101	$	—
Other current assets	Other current assets	14		6		0		0		Other current assets	4		15		—		—

Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	2		2		12		21		Accounts payable and accrued liabilities	26		—		45		20
Other liabilities										Other liabilities	—		—		2		—
											$	33	$	183	$	148	$	20
		$	62	$	74	$	17	$	21

Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. ~~FCX does not anticipate that any of the counterparties it deals with will default on their obligations.~~ As of September 30, ~~2020,~~2021, the maximum amount of credit exposure associated with derivative transactions was ~~$52~~$37 million.

Other Financial Instruments. Other financial instruments include cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, investment securities, legally restricted funds, accounts payable and accrued liabilities, dividends payable and ~~long-term~~ debt. The carrying value for cash and cash equivalents (which included time deposits of $0.2 billion at September 30, ~~2020,~~2021, and ~~$1.3~~$0.3 billion at December 31, ~~2019)~~2020), restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and ~~long-term~~ debt).

In addition, as of September 30, ~~2020,~~2021, FCX has contingent consideration assets related to the sales of certain oil and gas properties (refer to Note 7 for the related fair values).

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows (in millions):


		September 30, 2020		December 31, 2019			September 30, 2021		December 31, 2020
Balance sheet components:	Balance sheet components:					Balance sheet components:
Cash and cash equivalents	Cash and cash equivalents	$	2,403	$	2,020	Cash and cash equivalents	$	7,672	$	3,657
Restricted cash and restricted cash equivalents included in:	Restricted cash and restricted cash equivalents included in:					Restricted cash and restricted cash equivalents included in:
Other current assets	Other current assets	103		100		Other current assets	114		97
Other assets	Other assets	149		158		Other assets	133		149
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	2,655	$	2,278	Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	7,919	$	3,903

1617

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NOTE 7. FAIR VALUE MEASUREMENT

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX did not have any significant transfers in or out of Level 3 during third-quarter ~~2020.~~2021.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater Gulf of Mexico (GOM) oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 6) follows (in millions):


		At September 30, 2020													At September 30, 2021
		Carrying		Fair Value											Carrying		Fair Value
		Amount		Total		NAV		Level 1		Level 2		Level 3			Amount		Total		NAV		Level 1		Level 2		Level 3
Assets	Assets													Assets
Investment securities:a,b	Investment securities:a,b													Investment securities:a,b
Equity securities														Equity securities	$	52	$	52	$	—	$	52	$	—	$	—
U.S. core fixed income fund	U.S. core fixed income fund	$	29	$	29	$	29	$	0	$	0	$	0	U.S. core fixed income fund	29		29		29		—		—		—

Equity securities		6		6		0		6		0		0
Total	Total	35		35		29		6		0		0		Total	81		81		29		52		—		—

Legally restricted funds:a	Legally restricted funds:a													Legally restricted funds:a
U.S. core fixed income fund	U.S. core fixed income fund	64		64		64		0		0		0		U.S. core fixed income fund	64		64		64		—		—		—
Government bonds and notes														Government bonds and notes	53		53		—		—		53		—
Corporate bonds	Corporate bonds	43		43		0		0		43		0		Corporate bonds	42		42		—		—		42		—
Government bonds and notes		42		42		0		0		42		0
Government mortgage-backed securities	Government mortgage-backed securities	33		33		0		0		33		0		Government mortgage-backed securities	24		24		—		—		24		—
Asset-backed securities	Asset-backed securities	15		15		0		0		15		0		Asset-backed securities	14		14		—		—		14		—
Money market funds	Money market funds	9		9		0		9		0		0		Money market funds	8		8		—		8		—		—
Collateralized mortgage-backed securities	Collateralized mortgage-backed securities	4		4		0		0		4		0		Collateralized mortgage-backed securities	4		4		—		—		4		—
Municipal bonds	Municipal bonds	1		1		0		0		1		0		Municipal bonds	1		1		—		—		1		—
Total	Total	211		211		64		9		138		0		Total	210		210		64		8		138		—

Derivatives:	Derivatives:													Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	51		51		0		0		51		0		Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	30		30		—		—		30		—

Copper forward contractsc														Copper forward contractsc	5		5		—		2		3		—
Copper futures and swap contractsc	Copper futures and swap contractsc	13		13		0		12		1		0		Copper futures and swap contractsc	2		2		—		—		2		—
Copper forward contractsc		1		1		0		1		0		0

Total	Total	65		65		0		13		52		0		Total	37		37		—		2		35		—

Contingent consideration for the sale of the	Contingent consideration for the sale of the													Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	Deepwater GOM oil and gas propertiesa	113		84		0		0		0		84		Deepwater GOM oil and gas propertiesa	94		85		—		—		—		85

Liabilities	Liabilities													Liabilities
Derivatives:c	Derivatives:c													Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	Embedded derivatives in provisional sales/purchase contracts in a gross liability position	20		20		0		0		20		0		Embedded derivatives in provisional sales/purchase contracts in a gross liability position	134		134		—		—		134		—

Copper futures and swap contractsc														Copper futures and swap contractsc	14		14		—		14		—		—
Copper forward contracts														Copper forward contracts	4		4		—		1		3		—

Total														Total	152		152		—		15		137		—

Long-term debt, including current portiond	Long-term debt, including current portiond	10,030		10,735		0		0		10,735		0		Long-term debt, including current portiond	9,665		10,791		—		—		10,791		—

1718

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		At December 31, 2019													At December 31, 2020
		Carrying		Fair Value											Carrying		Fair Value
		Amount		Total		NAV		Level 1		Level 2		Level 3			Amount		Total		NAV		Level 1		Level 2		Level 3
Assets	Assets													Assets
Investment securities:a,b	Investment securities:a,b													Investment securities:a,b
U.S. core fixed income fund	U.S. core fixed income fund	$	27	$	27	$	27	$	0	$	0	$	0	U.S. core fixed income fund	$	29	$	29	$	29	$	—	$	—	$	—

Equity securities	Equity securities	4		4		0		4		0		0		Equity securities	7		7		—		7		—		—
Total	Total	31		31		27		4		0		0		Total	36		36		29		7		—		—

Legally restricted funds:a	Legally restricted funds:a													Legally restricted funds:a
U.S. core fixed income fund	U.S. core fixed income fund	59		59		59		0		0		0		U.S. core fixed income fund	65		65		65		—		—		—
Government mortgage-backed securities		43		43		0		0		43		0
Government bonds and notes	Government bonds and notes	36		36		0		0		36		0		Government bonds and notes	49		49		—		—		49		—
Corporate bonds	Corporate bonds	33		33		0		0		33		0		Corporate bonds	43		43		—		—		43		—
Government mortgage-backed securities														Government mortgage-backed securities	30		30		—		—		30		—
Asset-backed securities	Asset-backed securities	14		14		0		0		14		0		Asset-backed securities	16		16		—		—		16		—
Money market funds														Money market funds	5		5		—		5		—		—
Collateralized mortgage-backed securities	Collateralized mortgage-backed securities	7		7		0		0		7		0		Collateralized mortgage-backed securities	4		4		—		—		4		—
Money market funds		3		3		0		3		0		0
Municipal bonds	Municipal bonds	1		1		0		0		1		0		Municipal bonds	1		1		—		—		1		—
Total	Total	196		196		59		3		134		0		Total	213		213		65		5		143		—

Derivatives:	Derivatives:													Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	68		68		0		0		68		0		Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	169		169		—		—		169		—
Copper futures and swap contractsc	Copper futures and swap contractsc	6		6		0		5		1		0		Copper futures and swap contractsc	15		15		—		13		2		—

Contingent consideration for the sale of onshore
California oil and gas propertiesa		11		11		0		0		11		0

Total	Total	85		85		0		5		80		0		Total	184		184		—		13		171		—

Contingent consideration for the sale of the	Contingent consideration for the sale of the													Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	Deepwater GOM oil and gas propertiesa	122		108		0		0		0		108		Deepwater GOM oil and gas propertiesa	108		88		—		—		—		88

Liabilities	Liabilities													Liabilities
Derivatives:c	Derivatives:c													Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	Embedded derivatives in provisional sales/purchase contracts in a gross liability position	20		20		0		0		20		0		Embedded derivatives in provisional sales/purchase contracts in a gross liability position	21		21		—		—		21		—

Copper forward contracts		1		1		0		0		1		0

Total		21		21		0		0		21		0

Long-term debt, including current portiond	Long-term debt, including current portiond	9,826		10,239		0		0		10,239		0		Long-term debt, including current portiond	9,711		10,994		—		—		10,994		—

a.Current portion included in other current assets and long-term portion included in other assets.

b.Excludes time deposits (which approximated fair value) included in (i) other current assets of ~~$103~~$114 million at September 30, ~~2020,~~2021, and ~~$100~~$97 million at December 31, ~~2019,~~2020, and (ii) other assets of ~~$148~~$132 million at September 30, ~~2020,~~2021, and ~~$157~~$148 millionatDecember 31, ~~2019,~~2020, primarily associated with an assurance bond to support PT-FI’s commitment for ~~the~~additional domestic smelter development ~~of a new smelter~~ in Indonesia and PT-FI’s closure and reclamation guarantees.

c.Refer to Note 6 for further discussion and balance sheet classifications.

d.Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.

Valuation Techniques. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

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Fixed income securities (government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

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FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME or COMEX copper forward prices and the adjusted ~~LBMA~~London gold prices at each reporting date based on the month of maturity (refer to Note 6 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 6 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

In 2016, FCX completed the sale of its onshore California oil and gas properties, which included contingent consideration of up to $150 million, consisting of $50 million per year for 2018, 2019 and 2020 if the price of Brent crude oil averages over $70 per barrel in each of these calendar years. Based on current and forecasted oil prices for the remainder of 2020, FCX has concluded the fair value of the last tranche of this contingent consideration derivative approximates 0 at September 30, 2020. The fair value of the contingent consideration derivative was $11 million (included in other assets in the consolidated balance sheets) at December 31, 2019. Future changes in the fair value of this contingent consideration derivative will continue to be recorded in operating income. Also, contingent consideration of $50 million was realized in 2018 and collected in first-quarter 2019 (included in proceeds from sales of assets in the consolidated statements of cash flows) because the average Brent crude oil price exceeded $70 per barrel for 2018. Contingent consideration of $50 million was not realized in 2019 because the average Brent crude oil price did not exceed $70 per barrel for 2019. The fair value at December 31, 2019, was calculated based on average commodity price forecasts through the applicable maturity date using a Monte-Carlo simulation model. The model used various observable inputs, including Brent crude oil forward prices, volatilities and discount rates. As a result, this contingent consideration asset was classified within Level 2 of the fair value hierarchy.

In December 2016, FCX’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration that was recorded at the total amount under the loss recovery approach. The contingent consideration is being received over time as ~~future~~ cash flows are realized from a third-party production handling agreement for an offshore platform, with the related payments commencing in third-quarter 2018. The contingent consideration included in (i) other current assets totaled ~~$12~~$20 million at September 30, ~~2020,~~2021, and ~~$18~~$12 million at December 31, ~~2019,~~2020, and (ii) other assets totaled ~~$101~~$74 million at September 30, ~~2020,~~2021, and ~~$104~~$96 million at December 31, ~~2019.~~2020. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

Long-term debt, including current portion, is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at September 30, ~~2020,~~2021, as compared with those techniques used at December 31, ~~2019.~~2020.

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A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first nine months of ~~2020~~2021 follows (in millions):

Fair value at January 1, ~~2020~~2021

~~108~~88

Net unrealized ~~loss~~gain related to assets still held at the end of the period

~~(15)~~12

Settlements

~~(9)~~(15)

Fair value at September 30, ~~2020~~2021

8485

NOTE 8. CONTINGENCIES AND COMMITMENTS

Environmental

Newtown Creek. From the 1930s until 1964, Phelps Dodge Refining Corporation (PDRC), an indirect wholly owned subsidiary of FCX, operated a copper smelter, and from the 1930s until 1984 operated a copper refinery, on the banks of Newtown Creek (the creek), which is a 3.5-mile-long waterway that forms part of the boundary between Brooklyn and Queens in New York City. Heavy industrialization along the banks of the creek and discharges from the City of New York’s sewer system over more than a century resulted in significant environmental contamination of the waterway. In 2010, U.S. Environmental Protection Agency (EPA) notified PDRC, four other companies and the City of New York that EPA considers them to be potentially responsible parties (PRPs) under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. The notified parties began working with EPA to identify other PRPs. In 2010, EPA designated the creek as a Superfund site, and in 2011, PDRC and five other parties (the Newtown Creek Group, NCG) entered an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) to assess the nature and extent of environmental contamination in the creek and identify potential remedial options. The parties’ RI/FS work under the AOC and their efforts to identify other PRPs are ongoing. The final draft RI, which addressed all remaining EPA comments, was submitted in October 2021 and NCG expects EPA’s formal acceptance after their review. NCG expects to submit the draft FS in late 2025

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and currently expects EPA to select a creek-wide remedy in 2026, with the actual remediation construction starting several years later. In July 2019, the NCG entered into an AOC to conduct a Focused Feasibility Study (FFS) of the first two miles of the creek to support an evaluation of an interim remedy for that section of the creek. In July 2021, EPA terminated the FFS, which effectively incorporates remediation of the lower creek with the site-wide remedy. FCX’s environmental liability balance for the creek was $313 million at September 30, 2021. The final costs of fulfilling this remedial obligation and the allocation of costs among PRPs are uncertain and subject to change based on the results of the RI/FS, the remedy ultimately selected by EPA and related allocation determinations. Changes to the overall cost of this remedial obligation and the portion ultimately allocated to PDRC could be material to FCX.

Litigation

There were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s ~~2019~~2020 Form 10-K, other than the matters discussed ~~below,~~below.

Asbestos and Talc Claims. As previously disclosed, since approximately 1990, various FCX affiliates have been named as defendants in a large number of lawsuits alleging personal injury from, among other things, exposure to asbestos or talc allegedly contained in industrial products, and more recently alleging the presence of asbestos contamination in talc-based cosmetic and personal care products. Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, and Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, are among the targets of such lawsuits. Cyprus Mines and subsidiaries were engaged in talc mining and processing from 1964 until 1992 when Cyprus Mines exited its talc business. On February 13, 2019, Imerys Talc America (Imerys), the current owner of the talc business assets and liabilities previously owned by Cyprus Mines, filed for Chapter 11 bankruptcy protection. On December 22, 2020, Imerys filed an amended bankruptcy plan disclosing a global settlement with Cyprus Mines and CAMC, which provides a framework for a full and comprehensive resolution of all current and future potential liabilities arising out of the Cyprus Mines talc business, including claims against FCX, its affiliates, Cyprus Mines and CAMC. The hearing to consider confirmation of the Imerys bankruptcy plan previously ~~were updated~~scheduled to be held in ~~Note 8~~November 2021 has been cancelled following a recent decision by the bankruptcy judge to invalidate a substantial number of ~~FCX’s quarterly report~~votes in favor of the plan. Consistent with the global settlement agreement, Cyprus Mines commenced its own bankruptcy process on ~~Form 10-Q for~~February 11, 2021, and talc-related litigation against both Cyprus Mines and Cyprus Amax Minerals Company is stayed through 2021. The global settlement is subject to, among other things, votes by claimants in both the ~~quarters ended March 31, 2020,~~Imerys and ~~June~~Cyprus Mines bankruptcy cases as well as bankruptcy court approvals in both cases, and there can be no assurance that the global settlement will be successfully implemented. FCX has a $130 million liability balance at September 30, ~~2020, and are further updated here.~~2021, associated with the proposed settlement.

Louisiana Parishes Coastal Erosion Cases. As ~~previously disclosed,~~discussed in ~~September 2019,~~Note 12 of FCX's 2020 Form 10-K, certain FCX affiliates were named as defendants, along with numerous co-defendants, in 13 cases out of ~~FCX reached an agreement in principle to settle all 13~~a total of 42 cases filed in Louisiana state courts by six south Louisiana parishes (Cameron, Jefferson, Plaquemines, St. Bernard, St. John the Baptist and Vermilion) ~~and the parties that intervened in the litigation in support of the parishes’ claims, including the state of Louisiana,~~, alleging that certain oil and gas exploration and production operations and sulphur mining and production operations ~~of the FCX affiliates~~in coastal Louisiana contaminated and damaged coastal wetlands and caused significant land loss along the Louisiana coast.

In 2019, affiliates of FCX reached an agreement in principle to settle all 13 cases. The maximum out-of-pocket settlement payment will be $23.5 million with the initial payment of $15 million to be paid upon execution of the settlement agreement.

The settlement agreement must be executed by all parties, including authorized representatives of the six south Louisiana parishes originally plaintiffs in the suit and certain other non-plaintiff Louisiana parishes and the state of Louisiana. The agreement in principle does not include any admission of liability by FCX or its affiliates. FCX recorded a charge in ~~third-quarter~~ 2019 for the initial payment of $15 million, which will be paid upon execution of the settlement agreement. The settlement agreement has been executed by the FCX affiliates, the state of Louisiana and ~~several~~8 of the 12 Louisiana parishes. FCX ~~expects~~is continuing its efforts to finalize the agreement to be executed by all parties; however, execution has been delayed by the ongoing COVID-19 pandemic. Upon execution of the settlement agreement by all parties, the FCX affiliates will be fully released and dismissed from all 13 pending cases.settlement.

~~Asbestos and Talc Claims~~. As previously disclosed, there has been a significant increase in the number of cases alleging the presence of asbestos contamination in talc-based personal care products and in cases alleging exposure to talc products that are not alleged to be contaminated with asbestos. The primary targets have been the producers of those products, but defendants in many of these cases also include talc miners. Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, and Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, are among those targets. Cyprus Mines was engaged in talc mining from 1964 until 1992 when it exited its talc business by conveying it to a third party in two related transactions. Those transactions involved (i) a transfer by Cyprus Mines of the assets of its talc business to a newly formed subsidiary that assumed all pre-sale and post-sale talc liabilities, subject to limited reservations, and (ii) a sale of the stock of that subsidiary to the third party. In 2011, the third party sold that subsidiary to Imerys Talc America (Imerys), an affiliate of Imerys S.A.

Cyprus Mines has contractual indemnification rights, subject to limited reservations, against Imerys, which has historically acknowledged those indemnification obligations, and had taken responsibility for all cases tendered to it. However, on February 13, 2019, Imerys filed for Chapter 11 bankruptcy protection, which triggered an immediate automatic stay under the federal bankruptcy code prohibiting any party from continuing or initiating litigation or asserting new claims against Imerys. As a result, Imerys is no longer defending the talc lawsuits against Cyprus Mines and CAMC. In addition, Imerys has taken the position that it alone owns, and has the sole right to access, the proceeds of the legacy insurance coverage of Cyprus Mines and CAMC for talc liabilities. In late March 2019, Cyprus Mines and CAMC challenged this position and obtained emergency relief from the bankruptcy court to gain access to the insurance until the question of ownership and contractual access can be decided in an adversary proceeding before the bankruptcy court, which was previously scheduled for March 2020, but has been put on hold.

During first-quarter 2019, in a case pending at the time Imerys filed bankruptcy, a California jury entered a $29 million verdict against Johnson & Johnson (J&J) and Cyprus Mines, of which approximately $2 million was attributed to Cyprus Mines. Taking advantage of the temporary access to the insurance authorized by the bankruptcy court, Cyprus Mines used the insurance to fully resolve the case. Cyprus Mines and the insurers also settled several other cases and secured delays or dismissals in other cases.

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Cyprus Mines and CAMC also have contractual indemnification rights against J&J, which J&J disputes. In June 2020, Cyprus Mines and CAMC filed a complaint in the Imerys bankruptcy case asserting that J&J was required to indemnify Cyprus Mines and CAMC for liabilities related to J&J products. J&J filed a motion to dismiss which is currently pending and has not been heard.

FCX continues to believe that Cyprus Mines and CAMC each has strong defenses to legal liability and that both should have access to the remaining legacy insurance to cover defense costs, settlements and judgments relating to talc proceedings, at least until the bankruptcy court decides otherwise or the insurance is exhausted. FCX recorded legal defense and settlement costs associated with talc-related litigation totaling approximately $20 million for the first nine months of 2020 and $28 million for the year 2019. Multiple trials previously scheduled during 2020 have been postponed because of the ongoing COVID-19 pandemic. Postponed cases may be reset prior to the adversary proceeding regarding the legacy insurance, which is currently on hold.

Cyprus Mines and CAMC are exploring a possible global settlement framework through the Imerys bankruptcy process to release Cyprus Mines and CAMC and their respective affiliates from all present and future talc claims. The outcome of any such global settlement may result in future charges that could be material to FCX’s results of operations for the relevant period during which any such agreement is reached. However, there can be no assurance that a global settlement will be reached and, if an agreement among the parties is reached, the implementation of a global settlement would require, among other things, further proceedings in the bankruptcy court and judicial approval. Given the uncertainties and complexities involved, Cyprus Mines and CAMC continue to prepare for trial with respect to the postponed cases and intend to vigorously defend themselves in all such cases. At this time, FCX believes a loss is reasonably possible but due to the number of cases pending, the number of potential future claimants, the complexity of the issues, the possibility of success at trial, whether any settlement(s) will be reached and, if reached, the amount and terms of any such settlement(s), and other factors, FCX cannot estimate the range of possible loss.

Other Matters

PT-FI and PT Smelting Export Licenses. In March ~~2020,~~2021, PT-FI received a one-year extension of its export license through March 15, 2022. In July 2021, ~~and~~ PT Smelting ~~(PT-FI’s 25 percent-owned smelter and refinery in Indonesia)~~ received ana six-month extension of its ~~anode~~anodes slimes export license, ~~through March 10,~~which currently expires December 30, 2021.

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Cerro Verde Royalty Dispute.~~In November 2019,~~ SUNAT (National Superintendency of Customs and Administration), the Peru national tax authority, assessed mining royalties on ore processed by the Cerro Verde ~~filed a notice~~concentrator for the period December 2006 to December 2013. Cerro Verde contested each of ~~intent to initiate~~these assessments because it believes that its 1998 stability agreement exempts from royalties all minerals extracted from its mining concession, irrespective of the method used for processing such minerals. Since 2014, Cerro Verde has been paying the disputed assessments for the period from December 2006 through December 2013 under installment payment programs provided under Peru law. In third-quarter 2021, Cerro Verde paid the balance of its royalty dispute liabilities (payments totaled $356 million in third-quarter 2021 and $421 million for the first nine months of 2021) and is proceeding with international arbitration ~~against~~as previously disclosed in FCX’s 2020 Form 10-K.

Development Progress of Greenfield Smelter at East Java. On January 7, 2021, the ~~Peruvian~~Indonesia government levied an administrative fine of $149 million for the period from March 30, 2020, through September 30, 2020 (additional fines could be levied on exports after September 30, 2020), on PT-FI for failing to achieve physical development progress on the greenfield smelter as of July 31, 2020. PT-FI responded to the Indonesia government objecting to the fine because of events outside of its control that caused a delay in development progress for the greenfield smelter at East Java. PT-FI believes that its communications regarding these delays during 2020 with the Indonesia government were not properly considered before the administrative fine was levied. In June 2021, the Indonesia government issued a ministerial decree for the calculation of an administrative fine for lack of smelter development in light of the COVID-19 pandemic. PT-FI is continuing to discuss this matter with the Indonesia government as well as provide additional documentation to support its position on the cause of delays in development progress on the greenfield smelter. During the first nine months of 2021, PT-FI recorded charges totaling $16 million for a potential settlement of the administrative fine which ~~triggered~~is expected to include a revised construction schedule for the greenfield smelter. No additional fine is expected for the construction period after July 2020 based on the revised schedule. The final settlement could differ from the amounts recorded.

Chiyoda Contract. In July 2021, PT-FI awarded a construction contract to Chiyoda for ~~mandatory good faith settlement discussions. The parties were unable to find~~the construction of a new greenfield smelter in Gresik, Indonesia with an amicable resolution and, on February 28, 2020, FCX and Cerro Verde filed international arbitration proceedings against the Peruvian government. In April 2020, SMM Cerro Verde Netherlands B.V. (SMM), another shareholderestimated contract cost of ~~Cerro Verde, filed a parallel arbitration proceeding under a different investment treaty against the Peruvian government.~~$2.8 billion.

NOTE 9. BUSINESS SEGMENTS

FCX has organized its mining operations into 4 primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines – and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci, ~~Bagdad,~~ Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining.

Beginning in fourth-quarter 2019, the Bagdad copper mine became a reportable segment. As a result, FCX revised its segment disclosure for the three and nine months ended September 30, 2019, to conform with the current year presentation.

Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on sales from its mines to other segments, including Atlantic Copper Smelting & Refining, and on 2539.5 percent of PT-FI’s sales to PT Smelting, until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.

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FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs, along with some selling, general and administrative costs, are not allocated to the operating divisions or individual segments. Accordingly, the following Financial Information by Business Segment reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

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Product Revenues. FCX’s revenues attributable to the products it sold for the third quarters and first nine months of ~~2020~~2021 and ~~2019~~2020 follow (in millions):


		Three Months Ended					Nine Months Ended						Three Months Ended				Nine Months Ended
		September 30,					September 30,						September 30,				September 30,
		2020		2019			2020		2019				2021		2020		2021		2020
Copper:	Copper:											Copper:
Concentrate	Concentrate	$	1,185	$	952		$	2,783	$	3,251		Concentrate	$	2,531	$	1,185	$	6,316	$	2,783
Cathode	Cathode	1,085		878			3,046		2,696			Cathode	1,463		1,085		4,232		3,046
Rod and other refined copper products	Rod and other refined copper products	634		537			1,479		1,560			Rod and other refined copper products	1,048		634		2,565		1,479
Purchased coppera	Purchased coppera	167		210			568		872			Purchased coppera	124		167		652		568
Gold	Gold	497		415			1,108		1,111			Gold	741		497		1,856		1,108
Molybdenum	Molybdenum	189		295			626		910			Molybdenum	372		189		904		626
Otherb	Otherb	159		202			431		697			Otherb	210		159		666		431
Adjustments to revenues:	Adjustments to revenues:											Adjustments to revenues:
Treatment charges	Treatment charges	(95)		(87)			(250)		(292)			Treatment charges	(126)		(95)		(324)		(250)
Royalty expensec	Royalty expensec	(56)		(24)			(102)		(73)			Royalty expensec	(97)		(56)		(242)		(102)
Export dutiesd	Export dutiesd	(23)		(174)		e	(43)		(201)		e	Export dutiesd	(72)		(23)		(145)		(43)
Revenues from contracts with customers	Revenues from contracts with customers	3,742		3,204			9,646		10,531			Revenues from contracts with customers	6,194		3,742		16,480		9,646
Embedded derivativesf		109		(51)			57		(40)
Embedded derivativese												Embedded derivativese	(111)		109		201		57
Total consolidated revenues	Total consolidated revenues	$	3,851	$	3,153		$	9,703	$	10,491		Total consolidated revenues	$	6,083	$	3,851	$	16,681	$	9,703

a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.

b.Primarily includes revenues associated with cobalt and silver.

c.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.

d.Reflects PT-FI export duties.

e.~~Includes charges totaling $166 million primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties.~~

f.Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

2223

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Financial Information by Business Segment


(In millions)	(In millions)																													(In millions)

																										Atlantic									Corporate,																																					Atlantic			Corporate,
		North America Copper Mines								South America Mining																Copper									Other									North America Copper Mines								South America Mining																		Copper				Other
										Cerro						Indonesia			Molybdenum		Rod &					Smelting									& Elimi-					FCX															Cerro							Indonesia				Molybdenum				Rod &		Smelting			& Elimi-			FCX
																								Morenci				Other			Total		Verde					Other					Total			Mining					Mines			Refining			& Refining								nations				Total
Three Months Ended September 30, 2021																							Three Months Ended September 30, 2021
Revenues:																							Revenues:
Unaffiliated customers																							Unaffiliated customers	$	16			$	64		$	80	$	979				$	149				$	1,128		$	1,961	a			$	—		$	1,697		$	783							$	434		b	$	6,083
Intersegment																							Intersegment	711				1,020			1,731		95					—					95			81					151			7			—								(2,065)				—
Production and delivery																							Production and delivery	312				592			904		533					97					630			569					70			1,701			765								(1,630)				3,009
Depreciation, depletion and amortization																							Depreciation, depletion and amortization	40				54			94		101					10					111			280					19			1			7								16				528

Metals inventory adjustments																							Metals inventory adjustments	13				—			13		—					—					—			—					—			—			—								1				14
Selling, general and administrative expenses																							Selling, general and administrative expenses	—				1			1		2					—					2			28					—			—			5								66				102
Mining exploration and research expenses																							Mining exploration and research expenses	—				1			1		—					—					—			—					—			—			—								14				15
Environmental obligations and shutdown costs																							Environmental obligations and shutdown costs	(1)				(1)			(2)		—					—					—			—					—			—			—								15				13
Net gain on sales of assets																							Net gain on sales of assets	—				—			—		—					—					—			—					—			—			—								(60)			c	(60)
Operating income (loss)																							Operating income (loss)	363				437			800		438					42					480			1,165					62			2			6								(53)				2,462

Interest expense, net																							Interest expense, net	—				1			1		6					—					6			1					—			—			1								129				138
Provision for (benefit from) income taxes																							Provision for (benefit from) income taxes	—				—			—		197					24					221			382		d			—			—			(1)								26				628
Total assets at September 30, 2021																							Total assets at September 30, 2021	2,586				5,244			7,830		8,554					1,843					10,397			18,592					1,726			278			1,067								7,027				46,917
Capital expenditures																							Capital expenditures	42				74			116		41					6					47			328					1			1			5								43			e	541
		Morenci		Bagdad		Other		Total		Verde		Other		Total		Mining			Mines		Refining					& Refining									nations					Total
Three Months Ended September 30, 2020	Three Months Ended September 30, 2020																																									Three Months Ended September 30, 2020
Revenues:	Revenues:																																									Revenues:
Unaffiliated customers	Unaffiliated customers	$	4	$	0	$	12	$	16	$	632	$	108	$	740	$	1,023	a	$	0	$	1,270				$	536								$	266	b			$	3,851	Unaffiliated customers		$	4				$	12		$	16		$	632		$	108	$	740	$	1,023	a		$	—			$	1,270	$	536		$	266	b	$	3,851
Intersegment	Intersegment	584		207		430		1,221		66		0		66		3			42		8					3									(1,343)					0		Intersegment		584					637			1,221			66			—		66		3				42				8		3			(1,343)			—
Production and delivery	Production and delivery	308		123		337		768		394		83		477		409			51		1,272					522									(1,034)					2,465		Production and delivery		308					460			768			394			83		477		409				51				1,272		522			(1,034)			2,465
Depreciation, depletion and amortization	Depreciation, depletion and amortization	42		14		35		91		92		13		105		150			13		6					8									21					394		Depreciation, depletion and amortization		42					49			91			92			13		105		150				13				6		8			21			394

Metals inventory adjustments	Metals inventory adjustments	0		0		(4)		(4)		0		0		0		0			3		2					0									8					9		Metals inventory adjustments		—					(4)			(4)			—			—		—		—				3				2		—			8			9
Selling, general and administrative expenses	Selling, general and administrative expenses	1		0		0		1		2		0		2		25			0		0					5									39					72		Selling, general and administrative expenses		1					—			1			2			—		2		25				—				—		5			39			72
Mining exploration and research expenses	Mining exploration and research expenses	0		0		0		0		0		0		0		0			0		0					0									8					8		Mining exploration and research expenses		—					—			—			—			—		—		—				—				—		—			8			8
Environmental obligations and shutdown costs	Environmental obligations and shutdown costs	0		0		(3)		(3)		0		0		0		0			0		0					0									24					21		Environmental obligations and shutdown costs		—					(3)			(3)			—			—		—		—				—				—		—			24			21
Net loss on sales of assets	Net loss on sales of assets	0		0		0		0		0		0		0		0			0		0					0									2					2		Net loss on sales of assets		—					—			—			—			—		—		—				—				—		—			2			2
Operating income (loss)	Operating income (loss)	237		70		77		384		210		12		222		442			(25)		(2)					4									(145)					880		Operating income (loss)		237					147			384			210			12		222		442				(25)				(2)		4			(145)			880

Interest expense, net	Interest expense, net	0		0		0		0		21		0		21		0			0		0					0									99					120		Interest expense, net		—					—			—			21			—		21		—				—				—		—			99			120
Provision for (benefit from) income taxes	Provision for (benefit from) income taxes	0		0		0		0		105		4		109		211			0		0					0									(23)					297		Provision for (benefit from) income taxes		—					—			—			105			4		109		211				—				—		—			(23)			297
Total assets at September 30, 2020	Total assets at September 30, 2020	2,654		785		4,352		7,791		8,569		1,640		10,209		17,098			1,770		251					877									3,103					41,099		Total assets at September 30, 2020		2,654					5,137			7,791			8,569			1,640		10,209		16,858				1,770				251		877			3,343			41,099
Capital expenditures	Capital expenditures	21		7		38		66		26		5		31		325			3		1					6									4					436		Capital expenditures		21					45			66			26			5		31		297				3				1		6			32		e	436

Three Months Ended September 30, 2019
Revenues:
Unaffiliated customers		$	61	$	0	$	19	$	80	$	504	$	117	$	621	$	488	a	$	0	$	1,104				$	437								$	423	b			$	3,153
Intersegment		462		209		389		1,060		65		0		65		0			90		8					0									(1,223)					0
Production and delivery		377		140		379		896		417		111		528		399			85		1,111					421									(770)					2,670
Depreciation, depletion and amortization		45		12		34		91		93		16		109		77			16		2					7									20					322

Metals inventory adjustments		1		0		37		38		2		0		2		0			1		0					0									0					41
Selling, general and administrative expenses		1		1		0		2		2		0		2		31			0		0					5									61					101
Mining exploration and research expenses		0		0		0		0		0		0		0		0			0		0					0									25					25
Environmental obligations and shutdown costs		0		0		0		0		0		0		0		0			0		0					0									20					20
Net loss on sales of assets		0		0		0		0		0		0		0		0			0		0					0									12					12
Operating income (loss)		99		56		(42)		113		55		(10)		45		(19)			(12)		(1)					4									(168)					(38)

Interest expense, net		0		0		1		1		25		0		25		1			0		0					5									91					123
Provision for (benefit from) income taxes		0		0		0		0		29		4		33		(8)			0		0					(1)									67					91
Total assets at September 30, 2019		2,943		769		4,236		7,948		8,500		1,723		10,223		16,447			1,786		236					680									3,623					40,943
Capital expenditures		61		42		121		224		61		7		68		334			5		1					9									25					666

a.Includes PT-FI's sales to PT Smelting totaling $795 million in third-quarter 2021 and $506 million in third-quarter ~~2020 and $475 million in third-quarter 2019.~~2020.

b.Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

c.Represents the gain on the sale of FCX’s remaining cobalt business located in Kokkola, Finland (Freeport Cobalt).

d.Includes net tax benefits of $69 million associated with the release of a portion of the valuation allowances recorded against PT RTI NOLs.

e.Includes capital expenditures for the new greenfield smelter and precious metals refinery (collectively, the Indonesia smelter project) of $31 million in third-quarter 2021 and $27 million in third-quarter 2020.

2324

Table of Contents

(In millions)
Atlantic Corporate,
North America Copper Mines South America Mining Copper Other
Other Cerro Other Indonesia Molybdenum Rod & Smelting & Elimi- FCX
Morenci Bagdad Mines Total Verde Mines Total Mining Mines Refining & Refining nations Total
Nine Months Ended September 30, 2020
Revenues:
Unaffiliated customers $ 26 $ 0 $ 35 $ 61 $ 1,479 $ 312 $ 1,791 $ 2,151 a $ 0 $ 3,491 $ 1,429 $ 780 b $ 9,703
Intersegment 1,473 532 1,144 3,149

156 0 156 38 171 24 16 (3,554) 0
Production and delivery 1,005 367 1,043 2,415 1,152 297 1,449 1,130 178 3,529 1,379 (2,676) 7,404
Depreciation, depletion and amortization 129 41 102 272 273 42 315 375 44 14 22 51 1,093
Metals inventory adjustments 4 0 48 52 0 3 3 0 8 3 0 26 92
Selling, general and administrative expenses 2 0 1 3 5 0 5 81 0 0 15 169 273
Mining exploration and research expenses 0 0 2 2 0 0 0 0 0 0 0 40 42
Environmental obligations and shutdown costs 0 0 (3) (3) 0 0 0 0 0 1 0 60 58
Net loss on sales of assets 0 0 0 0 0 0 0 0 0 0 0 13 13
Operating income (loss) 359 124 (14) 469 205 (30) 175 603 (59) (32) 29 (457) 728
Interest expense, net 2 0 0 2 69 0 69 2 0 0 4 285 362
Provision for (benefit from) income taxes 0 0 0 0 82 (6) 76 302 0 0 1 (46) 333
Capital expenditures 92 44 262 398 116 40 156 959 14 5 17 24 1,573
Nine Months Ended September 30, 2019
Revenues:
Unaffiliated customers $ 89 $ 0 $ 183 $ 272 $ 1,793 $ 343 $ 2,136 $ 1,776 a $ 0 $ 3,403 $ 1,554 $ 1,350 b $ 10,491
Intersegment 1,411 591 1,020 3,022 262 0 262 57 290 18 5 (3,654) 0
Production and delivery 1,020 388 1,055 2,463 1,311 337 1,648 1,509 234 3,415 1,488 (2,158) 8,599
Depreciation, depletion and amortization 128 33 100 261 294 48 342 281 50 7 21 59 1,021
Metals inventory adjustments 1 0 38 39 2 0 2 0 1 0 0 58 100
Selling, general and administrative expenses 2 1 1 4 6 0 6 91 0 0 15 184 300
Mining exploration and research expenses 0 0 1 1 0 0 0 0 0 0 0 82 83
Environmental obligations and shutdown costs 0 0 0 0 0 0 0 0 0 0 0 85 85
Net gain on sales of assets 0 0 0 0 0 0 0 0 0 0 0 (13) (13)
Operating income (loss) 349 169 8 526 442 (42) 400 (48) 5 (1) 35 (601) 316
Interest expense, net 2 0 1 3 79 0 79 2 0 0 17 300 401
Provision for (benefit from) income taxes 0 0 0 0 159 (10) 149 (9) 0 0 2 39 181
Capital expenditures 172 100 369 641 160 16 176 992 11 3 18 76 1,917


(In millions)
																					Atlantic		Corporate,
	North America Copper Mines				South America Mining												Copper		Other
							Cerro							Indonesia			Molybdenum		Rod &		Smelting		& Elimi-			FCX
	Morenci		Other		Total		Verde			Other		Total		Mining			Mines		Refining		& Refining		nations			Total
Nine months ended September 30, 2021
Revenues:
Unaffiliated customers	$	77	$	147	$	224	$	2,721		$	512	$	3,233	$	5,097	a	$	—	$	4,695	$	2,264	$	1,168	b	$	16,681
Intersegment	1,996		2,783		4,779		260			—		260		189			310		20		—		(5,558)			—
Production and delivery	932		1,646		2,578		1,463		c	306		1,769		1,552			183		4,708		2,213		(4,141)		d	8,862
Depreciation, depletion and amortization	114		161		275		272			34		306		726			51		3		22		47			1,430
Metals inventory adjustments	13		—		13		—			—		—		—			1		—		—		1			15
Selling, general and administrative expenses	1		2		3		6			—		6		81			—		—		17		182			289
Mining exploration and research expenses	—		1		1		—			—		—		—			—		—		—		35			36
Environmental obligations and shutdown costs	—		(1)		(1)		—			—		—		—			—		—		—		52			51

Net gain on sales of assets	—		—		—		—			—		—		—			—		—		—		(63)		e	(63)
Operating income (loss)	1,013		1,121		2,134		1,240			172		1,412		2,927			75		4		12		(503)			6,061

Interest expense, net	—		1		1		31			—		31		8			—		—		4		387			431
Provision for (benefit from) income taxes	—		—		—		515			62		577		1,101		f	—		—		(1)		(3)			1,674

Capital expenditures	74		137		211		84			10		94		904			4		2		18		111		g	1,344

Nine months ended September 30, 2020
Revenues:
Unaffiliated customers	$	26	$	35	$	61	$	1,479		$	312	$	1,791	$	2,151	a	$	—	$	3,491	$	1,429	$	780	b	$	9,703
Intersegment	1,473		1,676		3,149		156			—		156		38			171		24		16		(3,554)			—
Production and delivery	1,005		1,410		2,415		1,152			297		1,449		1,130			178		3,529		1,379		(2,676)			7,404
Depreciation, depletion and amortization	129		143		272		273			42		315		375			44		14		22		51			1,093

Metals inventory adjustments	4		48		52		—			3		3		—			8		3		—		26			92
Selling, general and administrative expenses	2		1		3		5			—		5		81			—		—		15		169			273
Mining exploration and research expenses	—		2		2		—			—		—		—			—		—		—		40			42
Environmental obligations and shutdown costs	—		(3)		(3)		—			—		—		—			—		1		—		60			58

Net loss on sales of assets	—		—		—		—			—		—		—			—		—		—		13			13
Operating income (loss)	359		110		469		205			(30)		175		603			(59)		(32)		29		(457)			728

Interest expense, net	2		—		2		69			—		69		2			—		—		4		285			362
Provision for (benefit from) income taxes	—		—		—		82			(6)		76		302			—		—		1		(46)			333

Capital expenditures	92		306		398		116			40		156		865			14		5		17		118		g	1,573

a.Includes PT-FI's sales to PT Smelting totaling $2.3 billion for the first nine months of 2021 and $1.3 billion for the first nine months of ~~2020and $1.4 billion for the first nine months of 2019.~~2020.

b.Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

~~Table~~c.Includes nonrecurring charges totaling $74 million associated with labor-related charges at Cerro Verde for agreements reached with approximately 65 percent of ~~Contents~~

~~NOTE 10. NEW ACCOUNTING STANDARD~~

its hourly employees.

~~Financial Instruments.~~d.~~In June 2016,~~Includes charges associated with the ~~Financial Accounting Standards Board issued an Accounting Standards Update (ASU) that requires entities to estimate all expected credit losses for most financial assets held~~major maintenance turnaround at the reporting date based on an expected loss model, which requires consideration of historical experience, current conditions, and reasonable and supportable forecasts. FCX adopted this ASU effective January 1, 2020, and the adoption of this ASU did not have a material impact on its consolidated financial statements.Miami smelter totaling $87 million.

e.Includes a $60 million gain on the sale of Freeport Cobalt.

~~NOTE 11. SUBSEQUENT EVENTS~~f.Includes net tax benefits of $69 million associated with the release of a portion of the valuation allowances recorded against PT RTI NOLs.

~~FCX evaluated events after September 30, 2020,~~Includes capital expenditures for the Indonesia smelter project of $79 million for the first nine months of 2021 and ~~through~~$94 million for the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.

first nine months of 2020.

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Freeport-McMoRan Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of Freeport-McMoRan Inc. (the Company) as of September 30, ~~2020,~~2021, the related consolidated statements of operations, comprehensive income (loss), and equity for the three- and nine-month periods ended September 30, 2021 and 2020, ~~and 2019,~~ the related consolidated statements of cash flows for the nine-month periods ended September 30, ~~2020~~2021 and ~~2019,~~2020, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, ~~2019,~~2020, the related consolidated statements of operations, comprehensive income (loss) ~~income,~~, cash flows and equity for the year then ended, and the related notes (not presented herein); and in our report dated February ~~14, 2020,~~16, 2021, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, ~~2019,~~2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLP

Phoenix, Arizona

November ~~6, 2020~~5, 2021

Table of Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

In Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), “we,” “us” and “our” refer to Freeport-McMoRan Inc. (FCX) and its consolidated subsidiaries. You should read this discussion in conjunction with our consolidated financial statements, the related MD&A and the discussion of our Business and Properties in our annual report on Form 10-K for the year ended December 31, ~~2019 (2019~~2020 (2020 Form 10-K), filed with the United States (U.S.) Securities and Exchange Commission (SEC). The results of operations reported and summarized below are not necessarily indicative of future operating results (refer to “Cautionary Statement” for further discussion). References to “Notes” are Notes included in our Notes to Consolidated Financial Statements (Unaudited). Throughout MD&A, all references to income or losses per share are on a diluted basis.

OVERVIEW

We are a leading international mining company with headquarters in Phoenix, Arizona. We operate large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

~~Our operating sites~~We continue to ~~focus~~monitor the impact of the COVID-19 pandemic on ~~strong execution~~our business and maintain our vigilant operating protocols to contain and mitigate the risk of spread of COVID-19 at each of our ~~April 2020 revised~~operating sites. To date, our protocols have been effective in mitigating and preventing a major outbreak of COVID-19 at our operating sites. We will continue to monitor, assess and update our COVID-19 response and to provide assistance to employees in obtaining vaccinations.

Our results for the first nine months of 2021 reflect strong operating and financial performance, and cash flow generation. We believe we are well positioned to make investments in our business while providing shareholders with cash returns consistent with our financial policy. Refer to Note 5 and “Capital Resources and Liquidity” for further discussion of our financial policy. We continue to execute our operating plans in ~~response to the global COVID-19 pandemic~~a safe, efficient and ~~resulting negative impact~~responsible manner and remain focused on ~~the global economy. Protecting the health~~building long-term value through solid management of our ~~workforce~~portfolio of long-lived and ~~communities where we operate is a top priority and we continue to provide monetary support and in-kind contributions of medical supplies, equipment and food.~~high-quality copper assets.

~~During third-quarter 2020, we continued to focus on safeguarding~~As further discussed in “Operations,” highlights for our ~~business in an uncertain public health and economic environment. The~~mining operations during the first nine months of 2021 include:

•Continued success with the ramp-up of underground mining at PT Freeport Indonesia (PT-FI) ~~is advancing~~; on ~~schedule,~~track to reach annualized metal production targets by year-end 2021.

•Strong performance from Cerro Verde's concentrator facilities with milling rates averaging 381,500 metric tons of ore per day and rates are targeted to average approximately 400,000 metric tons of ore per day in 2022.

•Current operations at the ~~recently completed~~ Lone Star copper leach project, ~~is ramping up and remains on track to produce approximately~~which was successfully completed in the second half of 2020, are exceeding the initial design capacity of 200 million pounds of copper annually ~~and Cerro Verde continues to make progress toward restoring operations (operating rates averaged 351,000 metric tons of ore per day during third-quarter 2020,~~by approximately ~~90 percent of the 2019 annual average). Refer to “Operations” for further discussion.~~25 percent.

~~Our third-quarter 2020 results reflect strong cash flows~~We are advancing climate initiatives and ~~effective cost~~recently published our updated Climate Report in September 2021, which details the work underway across our global business to reduce greenhouse gas (GHG) emissions, improve energy efficiency, advance the use of renewable energy and ~~capital expenditures management. Consolidated sales volumes exceeded~~enhance our ~~July 2020 estimates by 7 percent for copper and 6 percent for gold.~~resilience to future climate-related risks.

Net income (loss) attributable to common stock totaled ~~$329 million~~$1.4 billion in third-quarter 2021, $0.3 billion in third-quarter 2020, ~~$(207) million in third-quarter 2019, $(109) million~~$3.2 billion for the first nine months of ~~2020~~2021 and ~~$(248) million~~$(0.1) billion for the first nine months of ~~2019. The results~~2020. Results for ~~third-quarter 2020,~~the 2021 periods, compared with ~~third-quarter 2019, primarily~~the 2020 periods, reflect higher copper prices and copper and gold ~~prices, higher copper~~ sales volumes, ~~and lower production and delivery costs.~~partly offset by a higher provision for income taxes. The ~~results for the~~ first nine months of 2020 ~~compared~~also reflect charges directly associated with the ~~first nine months~~COVID-19 pandemic and revised operating plans, including employee separation costs, totaling $178 million, losses on early extinguishment of ~~2019, primarily reflect lower production~~debt totaling $100 million and delivery costs and higher gold prices, partly offset by lower copper, gold and molybdenum sales volumes and lower molybdenum prices. The 2020 periods were also impacted by a higher income tax provision.metals inventory adjustments totaling $90 million. Refer to “Consolidated Results” for further discussion.

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At September 30, ~~2020,~~2021, we had ~~$2.4~~consolidated debt of $9.7 billion inand consolidated cash and cash equivalents of $7.7 billion, resulting in net debt of $2.0 billion. This represents a reduction in net debt of $4.1 billion from year-end 2020. Refer to “Net Debt” for reconciliations of debt and ~~$10.0 billion in total~~cash and cash equivalents to net debt.

At September 30, ~~2020,~~2021, we had no borrowings and $3.5 billion ~~was~~ available under our revolving credit facility. In September 2021, we prepaid $200 million of the Cerro Verde Term Loan and in October 2021, we announced that in December 2021 we expect to redeem our outstanding $524 million principal amount of our 3.55% Senior Notes due 2022. We have ~~a strong liquidity position to manage market volatility, and have~~ no other senior note maturities until ~~2022.~~March 2023.

In July ~~2020, we completed the sale~~2021, PT-FI entered into a $1.0 billion, five-year, unsecured bank credit facility to advance projects associated with its obligation for additional domestic smelter capacity and a precious metals refinery (PMR) in Indonesia. As of ~~$650~~September 30, 2021, $158 million ~~of 4.375% Senior Notes due 2028 and $850~~($146 million ~~of 4.625% Senior Notes due 2030 for proceeds,~~ net of underwriting fees, totaling $1.485 billion. We used $1.4 billion of the net proceeds to purchase a portion of our senior notes due 2022, 2023 and 2024, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. The remaining net proceeds fromdebt issuance costs) was drawn under this offering will be used for general corporate purposes, which may include repurchases or redemptions of outstanding senior notes. In connection with our financings from August 2019 through July 2020, we’ve issued a total of $4.0 billion in new senior notes and used most of the net proceeds to purchase and redeem outstanding senior notes. As a result, we have extended maturities and strengthened our financial flexibility.facility. Refer to Note 5 and “Capital Resources and Liquidity” for further discussion.

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OUTLOOK

~~Despite volatile market conditions and unfavorable changes to the global economy as a result of the COVID-19 pandemic, we~~We continue to view the long-term outlook for our business positively, supported by limitations on supplies of copper and by the requirements for copper in the world’s economy. Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to “Markets” below and “Risk Factors” in Part I, Item 1A. of our ~~2019~~2020 Form 10-K ~~and Part II, Item 1A. herein~~ for further discussion. Because we cannot control the prices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures.

Consolidated Sales Volumes

Following are our projected consolidated sales volumes for the year ~~2020:~~2021:

Copper (millions of recoverable pounds):

North America copper mines

~~1,435~~1,455

South America mining

~~950~~1,030

Indonesia mining

~~790~~1,327

Total

~~3,175~~3,812

Gold (millions of recoverable ounces)

~~0.8~~1.3

Molybdenum (millions of recoverable pounds)

8085

a.Projected molybdenum sales include 2528 million pounds produced by our Molybdenum mines and 5557 million pounds produced by our North America and South America copper mines.

Consolidated sales volumes in fourth-quarter ~~2020~~2021 are expected to approximate ~~840 million~~1.025 billion pounds of copper, ~~270~~375 thousand ounces of gold and 2122 million pounds of molybdenum. ~~Metal production and sales are expected to improve significantly in 2021 with projected consolidated sales of 3.85 billion pounds of copper and 1.4 million ounces of gold for the year 2021.~~ Projected sales volumes are dependent on operational performance ~~continued progress of the ramp-up of~~(including from underground mining at ~~PT-FI, impacts and duration of the COVID-19 pandemic,~~PT-FI), weather-related conditions, timing of shipments, and other ~~factors.~~factors detailed in the “Cautionary Statement” below.

For other important factors that could cause results to differ materially from projections, refer to ~~“Cautionary Statement” and~~ “Risk Factors” contained in Part I, Item 1A. of our ~~2019~~2020 Form ~~10-K and Part II, Item 1A. herein.~~10-K.

Consolidated Unit Net Cash Costs

Assuming average prices of ~~$1,900~~$1,800 per ounce of gold and ~~$8.00~~$19.00 per pound of molybdenum in fourth-quarter ~~2020~~2021 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average ~~$1.49~~$1.33 per pound of copper for the year ~~2020~~2021 (including ~~$1.32~~$1.26 per pound of copper in fourth-quarter ~~2020)~~2021). The impact of price changes during fourth-quarter ~~2020~~2021 on consolidated unit net cash costs for the year ~~2020~~2021 would approximate ~~$0.01~~$0.015 per pound of copper for each ~~$50~~$100 per ounce change in the average price of gold and $0.01 per pound of copper for each $2 per pound change in the average price of molybdenum. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. ~~We expect consolidated unit net cash costs to be lower in 2021, as the underground mines at PT-FI reach planned operating rates.~~

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Consolidated Operating Cash Flows

Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. Based on current sales volume and cost estimates, and assuming average prices of ~~$3.00~~$4.50 per pound for copper, ~~$1,900~~$1,800 per ounce for gold, and ~~$8.00~~$19.00 per pound for molybdenum ~~during~~in fourth-quarter ~~2020,~~2021, our consolidated operating cash flows are estimated to approximate ~~$2.9~~$7.5 billion ~~(including $0.6 billion from working capital and other sources)~~ for the year ~~2020.~~2021. Estimated consolidated operating cash flows for the year ~~2020~~2021 also reflect an estimated income tax provision of ~~$0.7~~$2.5 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year ~~2020)~~2021). The impact of price changes during fourth-quarter ~~2020~~2021 on operating cash flows ~~for the year 2020~~ would approximate ~~$90~~$100 million for each $0.10 per pound change in the average price of copper, ~~$13~~$25 million for each ~~$50~~$100 per ounce change in the average price of gold and ~~$14~~$15 million for each $2 per pound change in the

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average price of molybdenum. ~~With anticipated increases in copper and gold sales volumes and decreases in unit net cash costs, operating cash flows in 2021 are expected to be significantly higher than 2020 levels.~~

Consolidated Capital Expenditures

Consolidated capital expenditures for the year 2021 are expected to approximate ~~$2.0~~$2.3 billion ($2.0 billion excluding capital expenditures for the new greenfield smelter and PMR (collectively, the Indonesia smelter project). Consolidated capital expenditures for the year ~~2020, including~~2021 are expected to include $1.3 billion for major mining projects, primarily associated with underground development activities in the Grasberg minerals district and the now completed Lone Star copper leach project. A large portion of the capital expenditures relates to projects that are expected to add significant production and cash flow in future periods, enabling us to generate operating cash flows exceeding capital expenditures in future years. We have cash on hand and the financial flexibility to fund these expenditures and will continue to be disciplined in deploying capital.district.

~~Corporate and Other~~

~~During second-quarter 2020, we implemented a series of actions to reduce administrative and centralized support~~All costs in conjunction with our April 2020 revised operating plans. Cost savings initiatives included a temporary reduction in certain employee benefits, furloughs and an employee separation program, and reductions in third party service costs, facilities costs, travel and other expenses. Annual savings associated with the ~~employee separation program are expected to~~Indonesia smelter project will be ~~in excess of $100 million. As part~~shared 49 percent by FCX and 51 percent by PT Indonesia Asahan Aluminium (Persero) (PT Inalum, also known as MIND ID), and will be largely offset by a phase-out of the ~~cost savings initiatives introduced in second-quarter 2020,~~5 percent export duty currently paid to the ~~Board~~Indonesia government as well as the tax deductibility of Directors (the Board) approved a 25 percent reduction in the salary of each of our Chief Executive Officer and Chief Financial Officer through the end of 2020. Each of these executives also agreed to forgo substantially all their reduced cash salarysmelter costs by PT-FI. Current capital expenditures for the ~~remainder of 2020, which was substituted~~Indonesia smelter project are being funded through PT-FI's $1.0 billion unsecured bank credit facility, with an award of restricted stock units that will vest at the end of the year. Selling, general and administrative expenses are expected to approximate $350 million ($335 million excluding charges associated with the employee separation program) for the year 2020.additional debt financing being evaluated.

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MARKETS

World prices for copper, gold and molybdenum can fluctuate significantly. During the period from January ~~2010~~2011 through September ~~2020,~~2021, the London Metal Exchange (LME) copper settlement price varied from a low of $1.96 per pound in 2016 to a record high of ~~$4.60~~$4.86 per pound in ~~2011;~~2021; the London Bullion Market Association ~~(LBMA)~~(London) PM gold price fluctuated from a low of $1,049 per ounce in 2015 to a record high of $2,067 per ounce in 2020; and the Metals Week Molybdenum Dealer Oxide weekly average price ranged from a low of $4.46 per pound in 2015 to a high of ~~$18.60~~$20.01 per pound in ~~2010.~~2021. Copper, gold and molybdenum prices are affected by numerous factors beyond our control as described further in “Risk Factors” contained in Part I, Item 1A. of our ~~2019~~2020 Form ~~10-K and Part II, 1A. herein.~~10-K.

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This graph presents LME copper settlement prices and the combined reported stocks of copper at the LME, Commodity Exchange Inc., ~~a division of the New York Mercantile Exchange,~~ and the Shanghai Futures Exchange from January ~~2010~~2011 through September ~~2020.~~2021. During third-quarter ~~2020,~~2021, LME copper settlement prices ranged from a low of ~~$2.73~~$3.98 per pound to a high of ~~$3.10~~$4.44 per pound, averaged ~~$2.96~~$4.25 per pound and settled at ~~$3.00~~$4.10 per pound on September 30, ~~2020. In third-quarter 2020, copper~~2021. Copper prices ~~continued their upward momentum following~~were volatile during the ~~sharp decline that occurred~~quarter as a result of a strong U.S. dollar and prospects for slowing economic growth globally, and particularly in ~~first-quarter 2020, reflecting~~China, partly offset by falling exchange inventories and a positive long-term outlook supported by forecasts for a continued global economic ~~outlook lead by China’s continued~~ recovery ~~decreasing inventories~~ and ~~supply curtailments related to~~copper’s prominent role in the ~~COVID-19 pandemic. The COVID-19 pandemic continues to cause substantial disruption and uncertainty in global economies and markets.~~clean energy transition. The LME copper settlement price was ~~$3.04~~$4.52 per pound on October ~~30, 2020.~~29, 2021.

~~While we acknowledge the global economic turmoil associated with the ongoing COVID-19 pandemic, we continue~~We believe expectations for longer-term copper demand growth remain in place. We expect future demand to ~~believe the underlying long-term fundamentals of the copper business remain positive,~~be supported by the ~~significant role of copper in the~~ global ~~economy and a challenging long-term supply environment attributable~~transition to difficulty in replacing existing large mines’ output with new production sources. Future copper prices are expected to be volatile and are likely to be influenced by the COVID-19 pandemic, demand from China and emerging markets, as well as economic activity in the U.S.renewable energy and other ~~industrialized countries,~~carbon-reduction initiatives, and continued urbanization in developing countries. The historically low inventories; limited number of approved, large-scale projects scheduled; the ~~timing of~~long lead times required to permit and build new mines; and declining ore grades at existing operations highlight the ~~development of new supplies of copper and the production levels of mines and copper smelters.~~supply challenges for copper.

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This graph presents ~~LBMA~~London PM gold prices from January ~~2010~~2011 through September ~~2020.~~2021. During third-quarter ~~2020, LBMA~~2021, London PM gold prices ranged from a low of ~~$1,771~~$1,723 per ounce to a high of ~~$2,067~~$1,829 per ounce, averaged ~~$1,909~~$1,790 per ounce, and closed at ~~$1,887~~$1,743 per ounce on September 30, ~~2020. Concerns about~~2021. While the global ~~economy related~~economic recovery has put downward pressure on gold prices, many analysts expect gold prices to remain supported by the ~~COVID-19 pandemic,~~effects of elevated debt levels associated with large pandemic-related stimulus efforts and historically low U.S. interest ~~rates and the anticipated effects of global stimulus efforts have driven increased demand for gold.~~rates. The ~~LBMA~~London PM gold price was ~~$1,882~~$1,769 per ounce on October ~~30, 2020.~~29, 2021.

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This graph presents the Metals Week Molybdenum Dealer Oxide weekly average price from January ~~2010~~2011 through September ~~2020.~~2021. During third-quarter ~~2020,~~2021, the weekly average price of molybdenum ranged from a low of ~~$7.01~~$17.84 per pound to a high of ~~$8.37~~$20.01 per pound, averaged ~~$7.68~~$19.09 per pound, and was ~~$8.32~~$18.45 per pound on September 30, ~~2020.~~2021. Molybdenum prices ~~gradually improved~~have reacted to supply constraints and increased demand, as mines in ~~third-quarter 2020 as a result of increases in spot sale activity in Europe~~both Chile and ~~China after being negatively impacted by economic uncertainty associated with the COVID-19 pandemic.~~Peru reported lower production, and logistics challenges continued globally. The Metals Week Molybdenum Dealer Oxide weekly average price was ~~$8.73~~$19.34 per pound on October ~~30, 2020.~~29, 2021.

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CONSOLIDATED RESULTS


		Three Months Ended September 30,						Nine Months Ended September 30,							Three Months Ended September 30,						Nine Months Ended September 30,
		2020			2019			2020			2019				2021			2020			2021			2020
SUMMARY FINANCIAL DATA	SUMMARY FINANCIAL DATA	(in millions, except per share amounts)												SUMMARY FINANCIAL DATA	(in millions, except per share amounts)
Revenuesa,b	Revenuesa,b	$	3,851	c	$	3,153	d	$	9,703	c	$	10,491	d	Revenuesa,b	$	6,083		$	3,851		$	16,681		$	9,703
Operating income (loss)a,e,f,g		$	880	c,h,i	$	(38)	j	$	728	c,h,i	$	316	j
Operating incomea														Operating incomea	$	2,462		$	880		$	6,061		$	728

Net income (loss) attributable to common stockk,l,m		$	329	c	$	(207)		$	(109)	c	$	(248)
Net income (loss) attributable to common stockc														Net income (loss) attributable to common stockc	$	1,399	d	$	329	e	$	3,200	d	$	(109)	e
Diluted net income (loss) per share of common stock	Diluted net income (loss) per share of common stock	$	0.22		$	(0.15)		$	(0.08)		$	(0.17)		Diluted net income (loss) per share of common stock	$	0.94		$	0.22		$	2.16		$	(0.08)

Diluted weighted-average common shares outstanding	Diluted weighted-average common shares outstanding	1,461			1,452			1,453			1,451			Diluted weighted-average common shares outstanding	1,484			1,461			1,481			1,453

Operating cash flowsn		$	1,237		$	224		$	1,690		$	1,312
Operating cash flowsf														Operating cash flowsf	$	1,965		$	1,237		$	5,435		$	1,690
Capital expenditures	Capital expenditures	$	436		$	666		$	1,573		$	1,917		Capital expenditures	$	541		$	436		$	1,344		$	1,573
At September 30:	At September 30:													At September 30:
Cash and cash equivalents	Cash and cash equivalents	$	2,403		$	2,247		$	2,403		$	2,247		Cash and cash equivalents	$	7,672		$	2,403		$	7,672		$	2,403
Total debt, including current portion	Total debt, including current portion	$	10,030		$	9,919		$	10,030		$	9,919		Total debt, including current portion	$	9,665		$	10,030		$	9,665		$	10,030

a.Refer to Note 9 for a summary of revenues and operating income ~~(loss)~~ by operating division.

b.Includes (unfavorable) favorable ~~(unfavorable)~~ adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $(9) million ($(3) million to net income attributable to common stock or less than $0.01 per share) in third-quarter 2021, $71 million ($28 million to net income attributable to common stock or $0.02 per share) in third-quarter 2020, ~~$(42)~~$169 million ($~~(17)~~65 million to net ~~loss~~income attributable to common stock or ~~$(0.01)~~$0.05 per share) ~~in third-quarter 2019,~~for the first nine months of 2021 and $(102) million ($(42)

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million to net loss attributable to common stock or $(0.03) per share) for the first nine months of 2020 ~~and $58 million ($23 million to net loss attributable to common stock or $0.02 per share) for the first nine months of 2019~~ (refer to Note 6). The first nine months of 2020 also include reductions to revenues totaling $24 million ($24 million to net loss attributable to common stock or $0.02 per share) related to forward sales contracts (refer to Note 6).

c.Includes other net credits totaling $18 million ($19 million to net income attributable to common stock or $0.01 per share) in third-quarter 2020 and $20 million ($22 million to net loss attributable to common stock or $0.02 per share)6 for the first nine months of 2020, primarily associated with the sale of royalty assets and accrual adjustments at PT-FI, partly offset by charges associated with a PT-FI royalty adjustment and asset impairments. These net (charges) credits were recorded to revenues ($(9) million for third-quarter 2020 and $(7) million for the first nine months of 2020), production and delivery ($(4) million for third-quarter 2020 and $(9) million for the first nine months of 2020), interest expense ($(5) million for the first nine months of 2020) and to other income ($31 million for third-quarter 2020 and $41 million for the first nine months of 2020)further discussion).

d.Includes charges totaling $166 million ($82 million to net loss attributable to common stock or $0.06 per share) primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties.

e.Includes net unfavorable metals inventory adjustments totaling $9 million ($9 million to net income attributable to common stock or $0.01 per share) in third-quarter 2020, $41 million ($40 million to net loss attributable to common stock or $0.03 per share) in third-quarter 2019, $92 million ($90 million to net loss attributable to common stock or $0.06 per share) for the first nine months of 2020 and $100 million ($67 million to net loss attributable to common stock or $0.04 per share) for the first nine months of 2019.

f.Includes net charges to environmental obligations and related litigation reserves totaling $7 million ($7 million to net income attributable to common stock or less than $0.01 per share) in third-quarter 2020, $19 million ($19 million to net loss attributable to common stock or $0.01 per share) in third-quarter 2019, $22 million ($22 million to net loss attributable to common stock or $0.02 per share) for the first nine months of 2020 and $63 million ($63 million to net loss attributable to common stock or $0.04 per share) for the first nine months of 2019.

g.Includes net (losses) gains on sales of assets totaling $(2) million ($(2) million to net income attributable to common stock or less than $(0.01) per share) in third-quarter 2020, $(12) million ($(12) million to net loss attributable to common stock or $(0.01) per share) in third-quarter 2019, $(13) million ($(13) million to net loss attributable to common stock or $(0.01) per share) for the first nine months of 2020 and $13 million ($13 million to net loss attributable to common stock or $0.01 per share) for the first nine months of 2019. Refer to Note 7 for discussion of adjustments to the estimated fair value of contingent consideration related to the 2016 sale of onshore California oil and gas properties.

h.Includes charges directly related to the COVID-19 pandemic totaling $17 million ($8 million to net income attributable to common stock or $0.01 per share) in third-quarter 2020 and $129 million ($60 million to net loss attributable to common stock or $0.04 per share) for the first nine months of 2020, which were recorded primarily to production and delivery ($16 million in third-quarter 2020 and $110 million for the first nine months of 2020) and to depreciation, depletion and amortization ($18 million for the first nine months of 2020). Charges for third-quarter 2020 primarily included health and safety related costs and one-time incremental employee benefits. Charges for the first nine months of 2020 also included idle facility costs (Cerro Verde), contract cancellation and other charges directly related to the COVID-19 pandemic.

i.Includes charges associated with our April 2020 revised operating plans (primarily related to employee separation charges) totaling $17 million ($17 million to net income attributable to common stock or $0.01 per share) in third-quarter 2020 and $129 million ($118 million to net loss attributable to common stock or $0.08 per share) for the first nine months of 2020. These charges were recorded to production and delivery ($14 million in third-quarter 2020 and $92 million for the first nine months of 2020), depreciation, depletion and amortization ($3 million in third-quarter 2020 and $14 million for the first nine months of 2020), selling, general and administrative expenses ($15 million for the first nine months of 2020), and mining exploration and research expenses ($8 million for the first nine months of 2020).

j.Includes other net charges totaling $13 million ($8 million to net loss attributable to common stock or $0.01 per share) in third-quarter 2019 primarily associated with asset impairment. The first nine months of 2019 includes net charges totaling $65 million ($32 million to net loss attributable to common stock or $0.02 per share) primarily associated with an adjustment to the settlement of the historical surface water tax disputes in Indonesia, weather-related issues at El Abra and for oil and gas inventory adjustments, partly offset by a credit for an asset retirement obligation adjustment.

k.Includes net tax (charges) credits totaling $(17) million ($(0.01) per share) in third-quarter 2020, $(19) million ($(0.01) per share) in third-quarter 2019, $35 million ($0.02 per share) for the first nine months of 2020 and $5 million (less than $0.01 per share) for the first nine months of 2019. Refer to “Income Taxes” for further discussion of these net tax (charges) credits.

l.c.We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to “Operations – Smelting and Refining” for a summary of net impacts from changes in these deferrals.

m.d.Includes ~~after-tax~~ net ~~losses on early extinguishment of debt~~credits (charges) totaling ~~$59~~$79 million ($~~0.04~~0.05 per share) in third-quarter 2021 and $(16) million ($(0.01) per share) for the first nine months of 2021. Net credits in third-quarter 2021 were primarily associated with the release of valuation allowances at PT-FI and a gain on sale of our remaining cobalt business in Kokkola, Finland (Freeport Cobalt), partly offset by metals inventory adjustments. The first nine months of 2021 also included net charges primarily associated with nonrecurring labor-related charges at Cerro Verde and contested matters at PT-FI (including historical tax audits and an administrative fine levied by the Indonesia government).

e.Includes net charges totaling $101 million ($0.07 per share) in third-quarter 2020 ~~$21~~and $347 million ($~~0.01 per share) in third-quarter 2019, $100 million ($0.07~~0.24 per share) for the first nine months of 2020, primarily associated with the COVID-19 pandemic and ~~$26 million ($0.02 per share) for the first nine months~~revised operating plans (including employee separation costs), net losses on early extinguishment of ~~2019 (refer to Note 5 for discussion of our 2020~~ debt ~~transactions).~~and metals inventory adjustments.

n.f.Working capital and other sources totaled $180 million in third-quarter 2021, $178 million in third-quarter 2020, ~~$26~~$367 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $319 million for the first nine months of ~~2020 and $274 million for the first nine months of 2019.~~2020.

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		Three Months Ended September 30,					Nine Months Ended September 30,						Three Months Ended September 30,					Nine Months Ended September 30,
		2020			2019		2020			2019			2021		2020			2021			2020
SUMMARY OPERATING DATA	SUMMARY OPERATING DATA											SUMMARY OPERATING DATA
Copper (millions of recoverable pounds)	Copper (millions of recoverable pounds)											Copper (millions of recoverable pounds)
Production	Production	844			864		2,342			2,420		Production	987		844			2,810			2,342
Sales, excluding purchases	Sales, excluding purchases	848			795		2,336			2,386		Sales, excluding purchases	1,033		848			2,787			2,336
Average realized price per pound	Average realized price per pound	$	3.01		$	2.62	$	2.73		$	2.71	Average realized price per pound	$	4.20	$	3.01		$	4.22		$	2.73
Site production and delivery costs per pounda	Site production and delivery costs per pounda	$	1.77	b	$	2.05	$	1.92	b	$	2.16	Site production and delivery costs per pounda	$	1.88	$	1.77	b	$	1.92	c	$	1.92	b
Unit net cash costs per pounda	Unit net cash costs per pounda	$	1.32		$	1.59	$	1.55		$	1.76	Unit net cash costs per pounda	$	1.24	$	1.32		$	1.36		$	1.55
Gold (thousands of recoverable ounces)	Gold (thousands of recoverable ounces)											Gold (thousands of recoverable ounces)
Production	Production	237			333		584			659		Production	374		237			976			584
Sales, excluding purchases	Sales, excluding purchases	234			243		562			674		Sales, excluding purchases	402		234			965			562
Average realized price per ounce	Average realized price per ounce	$	1,902		$	1,487	$	1,810		$	1,380	Average realized price per ounce	$	1,757	$	1,902		$	1,780		$	1,810
Molybdenum (millions of recoverable pounds)	Molybdenum (millions of recoverable pounds)											Molybdenum (millions of recoverable pounds)
Production	Production	19			21		57			69		Production	23		19			63			57
Sales, excluding purchases	Sales, excluding purchases	20			22		59			68		Sales, excluding purchases	20		20			63			59
Average realized price per pound	Average realized price per pound	$	9.23		$	12.89	$	10.30		$	12.92	Average realized price per pound	$	18.61	$	9.23		$	14.36		$	10.30

a.Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”

b.Excludes charges totaling $0.04 per pound of copper in third-quarter 2020 and $0.09 per pound of copper for the first nine months of 2020, primarily associated with ~~the COVID-19 pandemic (including costs for health and safety,~~ idle facility and contract ~~cancellation)~~cancellations costs related to the COVID-19 pandemic and ~~our~~employee separation costs associated with the April 2020 revised operating ~~plans (including employee separation costs).~~plans.

c.Includes $0.03 per pound of copper associated with nonrecurring labor-related costs at Cerro Verde for agreements reached with approximately 65 percent of its hourly employees. Refer to “Operations – South America Mining” for further discussion.

Revenues

Consolidated revenues totaled $6.1 billion in third-quarter 2021, $3.9 billion in third-quarter 2020, ~~$3.2~~$16.7 billion ~~in third-quarter 2019,~~for the first nine months of 2021 and $9.7 billion for the first nine months of ~~2020 and $10.5 billion for the first nine months of 2019.~~2020. Revenues from our mining operations primarily include the sale of copper concentrate, copper cathode, copper rod, gold in concentrate and molybdenum. Refer to Note 9 for a summary of product revenues.

Following is a summary of changes in our consolidated revenues between periods (in millions):


		Three Months Ended September 30		Nine Months Ended September 30			Three Months Ended September 30		Nine Months Ended September 30

Consolidated revenues - 2019 period		$	3,153	$	10,491
Higher (lower) sales volumes:
Consolidated revenues - 2020 period						Consolidated revenues - 2020 period	$	3,851	$	9,703
Higher sales volumes:						Higher sales volumes:
Copper	Copper	140		(135)		Copper	554		1,231
Gold	Gold	(13)		(155)		Gold	319		730
Molybdenum	Molybdenum	(34)		(125)		Molybdenum	1		38

Higher (lower) average realized prices:	Higher (lower) average realized prices:					Higher (lower) average realized prices:
Copper	Copper	331		47		Copper	1,229		4,152
Gold	Gold	97		242		Gold	(58)		(29)
Molybdenum	Molybdenum	(72)		(154)		Molybdenum	186		254
Adjustments for prior period provisionally priced copper sales	Adjustments for prior period provisionally priced copper sales	113		(160)		Adjustments for prior period provisionally priced copper sales	(80)		271
Higher (lower) Atlantic Copper revenues		102		(114)
Lower revenues from purchased copper		(44)		(304)
Lower cobalt revenues		(65)		(245)
(Higher) lower treatment charges		(7)		42
Lower royalties and export duties		119		129
Higher Atlantic Copper revenues						Higher Atlantic Copper revenues	244		819
(Lower) higher revenues from purchased copper						(Lower) higher revenues from purchased copper	(43)		84

Higher treatment charges						Higher treatment charges	(31)		(74)
Higher royalties and export duties						Higher royalties and export duties	(90)		(242)
Other, including intercompany eliminations	Other, including intercompany eliminations	31		144		Other, including intercompany eliminations	1		(256)
Consolidated revenues - 2020 period		$	3,851	$	9,703
Consolidated revenues - 2021 period						Consolidated revenues - 2021 period	$	6,083	$	16,681

~~Sales Volumes.~~ Consolidated copper sales volumes increased in third-quarter 2020, compared to third-quarter 2019, primarily reflecting higher copper ore grades in Indonesia, partly offset by lower sales from North America and South America as a result of lower mining rates associated with our April 2020 revised operating plans. Consolidated copper sales volumes slightly decreased for the first nine months of 2020, compared to the first nine

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~~months of 2019, primarily reflecting lower operating rates at Cerro Verde associated with COVID-19 restrictions, partly offset by higher ore grades in Indonesia.~~Sales Volumes. Consolidated copper and gold sales volumes ~~decreased~~increased in the ~~2020~~2021 periods, compared to the ~~2019~~2020 periods, primarily reflecting ~~lower mining and milling rates associated with~~ the ramp-up of underground mining at PT-FI. Refer to “Operations” for further discussion of sales volumes at our mining operations.

Realized Prices. Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum. Average realized prices for third-quarter ~~2020,~~2021, compared with third-quarter ~~2019,~~2020, were 1540 percent higher for copper, 288 percent ~~higher~~lower for gold and 28102 percent ~~lower~~higher for molybdenum and average realized prices for the first nine months of ~~2020,~~2021, compared with the first nine months of ~~2019,~~2020, were 155 percent higher for copper, 312 percent lower for gold and 39 percent higher for ~~gold and 20 percent lower for~~ molybdenum.

Average realized copper prices include net (unfavorable) favorable ~~(unfavorable)~~ adjustments to current period provisionally priced copper sales totaling $(93) million in third-quarter 2021, $23 million in third-quarter 2020, ~~$(15)~~$54 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $120 million for the first nine months of ~~2020 and $(115) million for the first nine months of 2019.~~2020. As discussed in Note 6, substantially all of our copper concentrate and cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted LME monthly average copper prices. We record revenues and invoice customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on provisionally priced concentrate and cathode sales that is adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper prices, the opposite occurs. ~~Average realized prices for the first nine months of 2020 also included reductions totaling $24 million related to forward sales contracts (refer to Note 6).~~

Prior Period Provisionally Priced Copper Sales. Net (unfavorable) favorable ~~(unfavorable)~~ adjustments to prior periods’ provisionally priced copper sales (i.e., provisionally priced sales at June 30, ~~2020~~2021 and ~~2019,~~2020, and December 31, ~~2019~~

2020 and ~~2018)~~2019) recorded in consolidated revenues totaled $(9) million in third-quarter 2021, $71 million in third-quarter 2020, ~~and $(42)~~$169 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $(102) million for the first nine months of ~~2020 and $58 million for the first nine months of 2019.~~2020. Refer to Notes 6 and 9 for a summary of total adjustments to prior period and current period provisionally priced sales.

At September 30, ~~2020,~~2021, we had provisionally priced copper sales totaling ~~226~~313 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of ~~$3.03~~$4.05 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the September 30, ~~2020,~~2021, provisional price recorded would have an approximate $7$10 million effect on our ~~2020~~2021 net income attributable to common stock. The LME copper price settled at ~~$3.04~~$4.52 per pound on October ~~30, 2020.~~29, 2021.

Atlantic Copper Revenues. Atlantic Copper revenues totaled $783 million in third-quarter 2021 and $2.3 billion for the first nine months of 2021, compared with $539 million in third-quarter 2020 and $1.4 billion for the first nine months of ~~2020, compared with $437 million in third-quarter 2019 and $1.6 billion for the first nine months of 2019.~~2020. Higher revenues in ~~third-quarter 2020,~~the 2021 periods, compared with ~~third-quarter 2019,~~the 2020 periods, primarily reflect higher copper sales volumes and prices, and the impact of a scheduled short-term general maintenance turnaround in third-quarter 2019. Lower revenues for the first nine months of 2020, compared with the first nine months of 2019, primarily reflect lower gold sales volumes.prices.

Purchased Copper. We purchase copper cathode primarily for processing by our Rod & Refining operations. The volumes of copper purchases vary depending on cathode production from our operations and totaled 28 million pounds in third-quarter 2021, 56 million pounds in third-quarter 2020, 79149 million pounds ~~in third-quarter 2019,~~for the first nine months of 2021 and 215 million pounds for the first nine months of 2020. The decrease in revenues associated with purchased copper in third-quarter 2021, compared to third-quarter 2020, ~~and 310 million pounds~~primarily reflects lower volumes. The increase in revenues associated with purchased copper for the first nine months of ~~2019.~~

~~Cobalt Revenues.~~ ~~Cobalt revenues totaled $51 million in third-quarter 2020 and $162 million for~~2021, compared to the first nine months of 2020 ~~compared with $116 million in third-quarter 2019 and $407 million for the first nine months of 2019. Lower revenues in the 2020~~ periods, ~~compared with the 2019 periods, primarily reflect the sale of our cobalt refinery and related cobalt cathode precursor business in fourth-quarter 2019.~~reflects higher prices, partly offset by lower volumes.

Treatment Charges. Revenues from our concentrate sales are recorded net of treatment charges (i.e., fees paid to smelters that are generally negotiated annually), which will vary with the sales volumes and the price of copper.

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Royalties and Export Duties. Royalties are primarily on PT-FI sales and vary with the volume of metal sold and the prices of copper and gold. PT-FI will continue to pay export duties until development progress for ~~the~~ new ~~smelter in Indonesia~~domestic smelting with an annual capacity of 2 million metric tons of concentrate exceeds 50 percent. Refer to “Operations – Indonesia Mining” for further discussion of the ~~new~~current progress on a greenfield smelter in Indonesia and to Note 9 for a summary of royalty expense and export duties.

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Production and Delivery Costs

Consolidated production and delivery costs totaled $3.0 billion in third-quarter 2021, $2.5 billion in third-quarter 2020, ~~$2.7~~$8.9 billion ~~in third-quarter 2019,~~for the first nine months of 2021 and $7.4 billion for the first nine months of ~~2020 and $8.6 billion for the first nine months of 2019. Lower~~2020. Higher consolidated production and delivery costs in the ~~2020~~2021 periods primarily reflect ~~lower~~higher sales volumes, higher milling and mining ~~and milling rates in Indonesia (associated~~costs associated with the ~~ramp-up~~return to pre-COVID-19 operating rates and higher maintenance and input costs. The first nine months of ~~underground mining~~2021 also include nonrecurring labor-related charges at ~~PT-FI) and in North America (associated~~Cerro Verde totaling $74 million for agreements reached with ~~our April 2020 revised operating plans).~~approximately 65 percent of its hourly employees. The first nine months of 2020 also ~~reflect lower mining rates at Cerro Verde associated with COVID-19 restrictions.~~

~~The 2020 periods~~ include charges totaling ~~$30 million in the third quarter and~~ $202 million ~~for the first nine months~~ associated with the COVID-19 pandemic and revised operating ~~plans (including employee separation costs).~~plans.

Site Production and Delivery Costs Per Pound. Site production and delivery costs for our copper mining operations primarily include labor, energy and commodity-based inputs, such as sulphuric acid, reagents, liners, tires and explosives. Consolidated site production and delivery costs (before net noncash and other costs) for our copper mines averaged $1.88 per pound of copper in third-quarter 2021, $1.77 per pound of copper in third-quarter 2020, ~~$2.05 per pound of copper in third-quarter 2019,~~ $1.92 per pound of copper for both the first nine months of ~~2020~~2021 and ~~$2.16 per pound of copper for the first nine months of 2019.~~ 2020.

Consolidated site production and delivery costs per pound of copper exclude certain charges associated with the COVID-19 pandemic and our April 2020 revised operating plans totaling $0.04 per pound of copper in third-quarter 2020 and $0.09 per pound of copper for the first nine months of 2020. Lower consolidated site production and delivery costs per pound in the ~~2020 periods,~~third quarter and first nine months of 2021 were higher, compared with the ~~2019 periods,~~third quarter and first nine months of 2020, primarily ~~reflect~~reflecting higher mining and milling costs associated with the return to pre-COVID-19 operating rates and higher maintenance and input costs, partly offset by higher sales volumes and lower leach unit production costs ~~in Indonesia, North America~~associated with higher recoveries. Consolidated site production and ~~South America (for~~delivery costs per pound for the ~~same reasons discussed in~~first nine months of 2021 included nonrecurring labor-related charges at Cerro Verde for agreements reached with approximately 65 percent of its hourly employees and the ~~paragraph above).~~first nine months of 2020 excluded charges associated with the COVID-19 pandemic and the April 2020 revised operating plans. Refer to “Operations – Unit Net Cash Costs” for further discussion of unit net cash costs associated with our operating divisions and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.

Depreciation, Depletion and Amortization

Depreciation will vary under the unit-of-production (UOP) method as a result of changes in sales volumes and the related UOP rates at our mining operations. Consolidated depreciation, depletion and amortization (DD&A) totaled $528 million in third-quarter 2021, $394 million in third-quarter 2020, ~~$322 million in third-quarter 2019,~~$1.4 billion for the first nine months of 2021 and $1.1 billion for the first nine months of ~~2020 and $1.0 billion for the first nine months of 2019.~~2020. Higher DD&A in the ~~2020~~2021 periods is primarily ~~relates~~related to assets placed in service and higher sales volumes associated with the ramp-up of underground mining at PT-FI.

Metals Inventory Adjustments

~~Unfavorable net realizable value~~Charges for metals inventory adjustments totaled $14 million in third-quarter 2021, $9 million in third-quarter 2020, ~~$41~~$15 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $92 million for the first nine months of ~~2020 and $100 million for~~2020. Metals inventory adjustments in the ~~first nine months of 2019.~~2021 periods were primarily related to a leach stockpile adjustment. Metals inventory adjustments in the 2020 periods were related to volatility in copper and molybdenum ~~prices. Metals inventory adjustments in~~prices associated with the ~~2019 periods were mostly related to volatility in copper and cobalt prices.~~COVID-19 pandemic.

~~Selling, general and administrative expenses~~Net (Gain) Loss on Sale of Assets

~~Selling, general and administrative expenses~~Net (gain) loss on sales of assets totaled ~~$72~~$(60) million in third-quarter 2021, $2 million in third-quarter 2020, ~~$101 million in third-quarter 2019, $273~~$(63) million for the first nine months of ~~2020~~2021 and ~~$300~~$13 million for the first nine months of ~~2019. During second-quarter 2020, we implemented a series~~2020. The gain on sales of ~~actions~~assets in the 2021 periods primarily reflects the sale of Freeport Cobalt. Refer to reduce administrative and centralized support costs in conjunction with our April 2020 revised operating plans. Cost savings initiatives included a temporary reduction in certain employee benefits, furloughs and an employee separation program, and reductions in third party service costs, facilities costs, travel and other expenses. Selling, general and administrative expenses are expected to approximate $350 millionNote 1 for ~~the year 2020 ($335 million excluding charges associated with the employee separation program).~~

~~Mining Exploration and Research Expenses~~

Consolidated exploration and research expenses for our mining operations totaled $8 million in third-quarter 2020, $25 million in third-quarter 2019, $42 million for the first nine months of 2020 and $83 million for the first nine months of 2019. Exploration expenditures for the year 2020 are expected to approximate $31 million ($23 million excluding charges associated with the employee separation program), approximately 60 percent below 2019 expenditures.

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~~Environmental Obligations and Shutdown Costs~~

Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates. Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations. Net charges for environmental obligations and shutdown costs totaled $21 million in third-quarter 2020, $20 million in third-quarter 2019, $58 million for the first nine months of 2020 and $85 million for the first nine months of 2019.further discussion.

Interest Expense, Net

Consolidated interest costs (before capitalization) totaled $157 million in third-quarter 2021, $160 million in third-quarter 2020, ~~$163~~$482 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $490 million for the first nine months of ~~2020 and $508 million for the first nine months of 2019. Refer to Note 5 for discussion of our 2020 debt transactions.~~2020.

Capitalized interest varies with the level of ~~expenditures for~~qualifying assets associated with our development projects and average interest rates on our borrowings, and totaled $19 million in third-quarter 2021, $40 million in ~~each of~~ third-quarter 2020, $51 million for the first nine months of 2021 and ~~third-quarter 2019,~~ $128 million for the first nine months of 2020. The decrease in capitalized interest in the 2021 periods, compared with the 2020 ~~and $107 million for the first nine months of 2019.~~periods, is primarily related to significant assets at PT-FI’s underground mines being placed in service. Refer to “Capital Resources and Liquidity - Investing Activities” for discussion of capital expenditures associated with our major development projects.

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Income Taxes

Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision (in millions, except percentages):


		Nine Months Ended September 30,														Nine Months Ended September 30,
		2020							2019							2021								2020
		Income (Loss)a		Effective Tax Rate		Income Tax (Provision) Benefit			Income (Loss)a		Effective Tax Rate	Income Tax (Provision) Benefit				Income (Loss)a		Effective Tax Rate			Income Tax (Provision) Benefit			Income (Loss)a		Effective Tax Rate			Income Tax (Provision) Benefit
U.S.b	U.S.b	$	(535)	10%		$	56	c	$	(384)	7%	$	26	d	U.S.b	$	1,324	1	%		$	(7)	c	$	(535)	10	%		$	56	d
South America	South America	149		51%		(76)			335		44%	(149)			South America	1,425		40	%		(576)			149		51	%		(76)
Indonesia	Indonesia	619		49%		(302)		e	135		37%	(50)		f	Indonesia	2,940		37	%		(1,101)		e	619		49	%		(302)		f
PT-FI export duty matter		—		N/A		—			(155)		38%	59
Adjustment to deferred taxes		—		N/A		—			—		N/A	(49)		g

Eliminations and other	Eliminations and other	95		N/A		(28)			9		N/A	(31)			Eliminations and other	(3)		N/A			19			95		N/A			(28)
Rate adjustmenth		—		N/A		17			—		N/A	13
Rate adjustmentg															Rate adjustmentg	—		N/A			(9)			—		N/A			17

Consolidated FCX	Consolidated FCX	$	328	102%	i	$	(333)		$	(60)	302%	$	(181)		Consolidated FCX	$	5,686	29	%	h	$	(1,674)		$	328	102	%	h,i	$	(333)

a.Represents income (loss) ~~from continuing operations~~ before income taxes and equity in affiliated companies’ net (losses) earnings.

b.In addition to our North America mining operations, the U.S. jurisdiction reflects corporate-level expenses, which include interest expense associated with senior notes, general and administrative expenses, and environmental obligations and shutdown costs.

c.Includes avaluation allowance release on prior year unbenefited net operating losses (NOLs).

d.Includes tax ~~credit~~credits of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of our interest in the lower zone of the Timok exploration project in ~~Serbia. Also includes a tax credit of~~Serbia and $6 million associated with the removal of a valuation allowance on deferred tax assets.

d.e.Includes net tax ~~credits~~benefits totaling ~~$12~~$83 million ($66 million net of noncontrolling interest), consisting of $69 million associated with the ~~settlement~~release of ~~state income tax examinations~~a portion of the valuation allowances recorded against PT Rio Tinto Indonesia (PT-FI’s wholly owned subsidiary) NOLs and ~~$12~~$24 million primarily associated with ~~state law changes.~~

e.~~Includes~~the reversal of a tax reserve related to the treatment of prior year contractor support costs; partly offset by a tax charge of ~~$21~~$10 million associated with the audit of PT-FI's 2019 tax returns.

f.Includes tax charges totaling $29 million ($1724 million net of noncontrolling interest), consisting of $21 million associated with establishing a tax reserve related to the treatment of prior year contractor support ~~costs. Also includes a tax charge of~~costs and $8 million ~~($7 million net of noncontrolling interest)~~ associated with an unfavorable 2012 Indonesia Supreme Court ruling.

f.~~Includes a tax charge of $5 million ($4 million net of noncontrolling interest) for non-deductible penalties related to PT-FI's surface water tax settlement.~~

g.Includes net tax charges totaling $49 million ($15 million net of noncontrolling interests) primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.

h.In accordance with applicable accounting rules, we adjust our interim provision for income taxes equal to our consolidated tax rate.

i.h.Our consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we ~~operate, excluding the U.S. jurisdiction. Because our~~operate.

i.Our U.S. jurisdiction generated net losses in the first nine months of 2020 that ~~will~~did not result in a realized tax ~~benefit,~~benefit; applicable accounting rules ~~require~~required us to adjust our estimated annual effective tax rate to exclude the impact of U.S. net losses.

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Assuming achievement of current sales volume and cost estimates and average fourth-quarter 2021 prices of ~~$3.00~~$4.50 per pound for copper, ~~$1,900~~$1,800 per ounce for gold and ~~$8.00~~$19.00 per pound for molybdenum, ~~in fourth-quarter 2020,~~ we estimate our consolidated effective tax rate for the year ~~2020~~2021 would approximate 5430 percent. Changes in projected sales volumes and average prices during ~~2020~~2021 would incur tax impacts at estimated effective rates of 40 percent for Peru, 38 percent for Indonesia ~~38 percent for Peru~~ and 0 percent for the U.S.

~~Variations in~~The net 0 percent U.S. estimated effective tax rate for the ~~relative proportions~~year 2021 includes approximately $190 million of ~~jurisdictional income result in fluctuations~~valuation allowance reversal related to ~~our consolidated effective income tax rate. Because~~an expected $900 million use of ~~our~~ U.S. ~~tax position, we do not record a financial statement impact for income or losses generated in the U.S.~~federal NOLs during 2021.

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OPERATIONS

~~During third-quarter~~ Responsible Production

2020 Climate Report.In September 2021, we ~~announced~~published our ~~commitment~~updated Climate Report, which details the work underway across our global business to reduce GHG emissions, improve energy efficiency, advance the use of renewable energy and enhance our resilience to future climate-related risks. The updated Climate Report reflects our continued progress towards alignment with the current recommendations of the Task Force on Climate-related Financial Disclosures.

The Copper Mark. We are committed to validating all of our copper producing sites with the Copper Mark. The Copper Mark is a ~~new, comprehensive~~robust assurance framework that demonstrates the ~~industry’s~~copper industry's responsible production practices and contribution to the United Nations Sustainable Development Goals. ~~It is~~Participating sites must complete an external assurance process to assess conformance with the ~~first~~Copper Mark’s 32 environmental, social and ~~only framework developed specifically for~~governance requirements, with a goal of being awarded the ~~copper industry and enables each site to demonstrate to customers, investors and other stakeholders their responsible production performance.~~Copper Mark. We have ~~commenced the validation process for~~ six ~~of our copper operating~~ sites ~~and~~which have ~~future plans to validate all of our copper operating~~been certified, with five additional sites ~~against the Copper Mark requirements.~~in progress.

North America Copper Mines

We operate seven open-pit copper mines in North America – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. In addition to copper, certain of these mines produce molybdenum concentrate, gold and silver. All of the North America mining operations are wholly owned, except for Morenci. We record our 72 percent undivided joint venture interest in Morenci using the proportionate consolidation method.

The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and solution extraction/electrowinning (SX/EW) operations. A majority of the copper produced at our North America copper mines is cast into copper rod by our Rod & Refining segment. The remainder of our North America copper production is sold as copper cathode or copper concentrate, a portion of which is shipped to Atlantic Copper (our wholly owned smelter). Molybdenum concentrate, gold and silver are also produced by certain of our North America copper mines.

Operating and Development Activities. Our North America operating sites continue to ~~focus on~~achieve strong execution of ~~our April 2020 revised~~ operating plans. ~~We completed~~Current operations at the Lone Star copper leach project, which was completed in ~~third-quarter~~the second half of 2020, ~~with production ramping-up and remaining on track to produce approximately~~are exceeding the initial design capacity of 200 million pounds ~~of copper~~ annually. by approximately 25 percent. We ~~reviewed options for restarting the Chino mine~~continue to advance opportunities to increase Lone Star operating rates and ~~currently expect~~are evaluating a potential additional incremental oxide expansion to ~~restart Chino at a reduced rate of approximately 50 percent of capacity (approximately 100~~increase volumes to over 300 million pounds of copper per ~~year) beginning~~year. The oxide project advances the opportunity for development of the large-scale sulfide resources at Lone Star. We are increasing exploration in ~~2021.~~the area to support metallurgical testing and mine development planning for a potential long-term investment in a concentrator.

We have substantial resources in North America, primarily associated with existing mining operations. Evaluations of project options for future growth are being advanced. In addition to Lone Star, we are reviewing and actively evaluating an additional concentrator to add new capacity at our long-lived Bagdad operation, and are utilizing data analytics and testing new applications to recover additional copper from existing leach stockpiles.

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Operating Data. Following is summary consolidated operating data for the North America copper mines:


		Three Months Ended September 30,				Nine Months Ended September 30,						Three Months Ended September 30,				Nine Months Ended September 30,

		2020		2019		2020			2019			2021		2020		2021		2020
Operating Data, Net of Joint Venture Interests	Operating Data, Net of Joint Venture Interests										Operating Data, Net of Joint Venture Interests
Copper (millions of recoverable pounds)	Copper (millions of recoverable pounds)										Copper (millions of recoverable pounds)
Production	Production	369		390		1,083			1,096		Production	377		369		1,090		1,083
Sales, excluding purchases	Sales, excluding purchases	379		395		1,102			1,084		Sales, excluding purchases	375		379		1,072		1,102
Average realized price per pound	Average realized price per pound	$	3.01	$	2.65	$	2.67	a	$	2.74	Average realized price per pound	$	4.34	$	3.01	$	4.24	$	2.67

Molybdenum (millions of recoverable pounds)	Molybdenum (millions of recoverable pounds)										Molybdenum (millions of recoverable pounds)
Productionb		7		8		24			24
Productiona											Productiona	9		7		26		24

100% Operating Data	100% Operating Data										100% Operating Data
Leach operations	Leach operations										Leach operations
Leach ore placed in stockpiles (metric tons per day)	Leach ore placed in stockpiles (metric tons per day)	692,000		756,900		708,100			753,400		Leach ore placed in stockpiles (metric tons per day)	579,100		692,000		656,900		708,100
Average copper ore grade (percent)	Average copper ore grade (percent)	0.26		0.24		0.27			0.23		Average copper ore grade (percent)	0.30		0.26		0.29		0.27
Copper production (millions of recoverable pounds)	Copper production (millions of recoverable pounds)	286		270		786			741		Copper production (millions of recoverable pounds)	270		286		797		786

Mill operations	Mill operations										Mill operations
Ore milled (metric tons per day)	Ore milled (metric tons per day)	255,200		337,700		291,500			324,600		Ore milled (metric tons per day)	274,300		255,200		269,000		291,500
Average ore grade (percent):	Average ore grade (percent):										Average ore grade (percent):
Copper	Copper	0.36		0.33		0.35			0.34		Copper	0.39		0.36		0.38		0.35
Molybdenum	Molybdenum	0.03		0.02		0.02			0.02		Molybdenum	0.03		0.03		0.03		0.02
Copper recovery rate (percent)	Copper recovery rate (percent)	84.4		88.5		85.4			87.9		Copper recovery rate (percent)	81.6		84.4		80.9		85.4
Copper production (millions of recoverable pounds)	Copper production (millions of recoverable pounds)	155		198		509			569		Copper production (millions of recoverable pounds)	170		155		476		509

a.Includes reductions to average realized prices of $0.02 per pound of copper related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound. There are no remaining forward sales contracts.

b.Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the North America copper mines.

Our consolidated copper sales volumes from North America totaled 375 million pounds in third-quarter 2021, 379 million pounds in third-quarter 2020, ~~395 million pounds in third-quarter 2019~~ and 1.1 billion pounds for both the first nine months of ~~2020~~2021 and 2019. Lower copper sales volumes in third-quarter 2020, compared to third-quarter 2019, primarily reflect lower mining rates associated with our April 2020 revised operating plans, partly offset by production from Lone Star.2020. North America copper sales are estimated to approximate 1.46 billion pounds for the year 2021, compared with 1.4 billion pounds for the year ~~2020, similar to the year 2019.~~2020.

Unit Net Cash Costs. Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. ~~GAAP~~generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

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Gross Profit per Pound of Copper and Molybdenum

The following table summarizes unit net cash costs and gross profit per pound at our North America copper mines. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

~~Table of Contents~~


	Three Months Ended September 30,
	2021						2020
	By- Product Method		Co-Product Method				By- Product Method			Co-Product Method
			Copper		Molyb- denuma					Copper		Molyb- denuma
Revenues, excluding adjustments	$	4.34	$	4.34	$	16.69	$	3.01		$	3.01	$	7.72

Site production and delivery, before net noncash and other costs shown below	2.12		1.93		8.97		1.76			1.67		5.52
By-product credits	(0.39)		—		—		(0.18)			—		—
Treatment charges	0.09		0.09		—		0.09			0.08		—
Unit net cash costs	1.82		2.02		8.97		1.67			1.75		5.52
DD&A	0.25		0.23		0.73		0.24			0.23		0.43
Metals inventory adjustments	0.03		0.03		—		(0.01)			(0.01)		—
Noncash and other costs, net	0.08		0.08		0.23		0.10		b	0.09		0.06
Total unit costs	2.18		2.36		9.93		2.00			2.06		6.01
Revenue adjustments, primarily for pricing on prior period open sales	(0.02)		(0.02)		—		—			—		—
Gross profit per pound	$	2.14	$	1.96	$	6.76	$	1.01		$	0.95	$	1.71

Copper sales (millions of recoverable pounds)	375		375				378			378
Molybdenum sales (millions of recoverable pounds)a					9							7

Three Months Ended September 30,
2020 2019
By- Product Method Co-Product Method By- Product Method Co-Product Method
Copper
Molyb-
denuma
Copper
Molyb-
denuma
Revenues, excluding adjustments $ 3.01 $ 3.01 $ 7.72 $ 2.65 $ 2.65 $ 11.98
Site production and delivery, before net noncash
and other costs shown below
1.76 1.67 5.52 2.03 1.88 9.28
By-product credits (0.18) — — (0.22) — —
Treatment charges 0.09 0.08 — 0.11 0.11 —
Unit net cash costs 1.67 1.75 5.52 1.92 1.99 9.28
DD&A 0.24 0.23 0.43 0.22 0.22 0.76
Metals inventory adjustments (0.01) (0.01) — 0.10 0.10 —
Noncash and other costs, net 0.10 b 0.09 0.06 0.08 0.06 0.45
Total unit costs 2.00 2.06 6.01 2.32 2.37 10.49
Revenue adjustments, primarily for pricing
on prior period open sales
— — — (0.03) (0.03) —
Gross profit per pound $ 1.01 $ 0.95 $ 1.71 $ 0.30 $ 0.25 $ 1.49
Copper sales (millions of recoverable pounds) 378 378 394 394
Molybdenum sales (millions of recoverable pounds)a
7 8


		Nine Months Ended September 30,																									Nine months ended September 30,
		2020												2019													2021												2020
		By- Product Method				Co-Product Method								By- Product Method				Co-Product Method									By- Product Method				Co-Product Method								By- Product Method				Co-Product Method
				Copper				Molyb- denuma								Copper				Molyb- denuma									Copper				Molyb- denuma								Copper				Molyb- denuma
Revenues, excluding adjustments	Revenues, excluding adjustments			$	2.67	c		$	2.67			$	8.57			$	2.74			$	2.74			$	12.03			Revenues, excluding adjustments	$	4.24			$	4.24			$	13.09			$	2.67			$	2.67			$	8.57

Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	1.91				1.78				7.05				2.05				1.87				9.56				Site production and delivery, before net noncash and other costs shown below	2.11				1.95				7.54				1.91				1.78				7.05
By-product credits	By-product credits	(0.19)				—				—				(0.25)				—				—				By-product credits	(0.32)				—				—				(0.19)				—				—
Treatment charges	Treatment charges	0.10				0.10				—				0.11				0.11				—				Treatment charges	0.09				0.09				—				0.10				0.10				—
Unit net cash costs	Unit net cash costs	1.82				1.88				7.05				1.91				1.98				9.56				Unit net cash costs	1.88				2.04				7.54				1.82				1.88				7.05
DD&A	DD&A	0.25				0.23				0.57				0.24				0.22				0.75				DD&A	0.26				0.24				0.59				0.25				0.23				0.57
Metals inventory adjustments	Metals inventory adjustments	0.05				0.04				—				0.04				0.04				—				Metals inventory adjustments	0.01				0.01				—				0.05				0.04				—
Noncash and other costs, net	Noncash and other costs, net	0.10		b		0.10				0.12				0.05				0.05				0.29				Noncash and other costs, net	0.10				0.09				0.12				0.10		b		0.10				0.12
Total unit costs	Total unit costs	2.22				2.25				7.74				2.24				2.29				10.60				Total unit costs	2.25				2.38				8.25				2.22				2.25				7.74
Other revenue adjustments, primarily for pricing on prior period open sales		(0.01)				(0.01)				—				—				—				—
Revenue adjustments, primarily for pricing on prior period open sales																										Revenue adjustments, primarily for pricing on prior period open sales	0.01				0.01				—				(0.01)				(0.01)				—
Gross profit per pound	Gross profit per pound	$	0.44			$	0.41			$	0.83			$	0.50			$	0.45			$	1.43			Gross profit per pound	$	2.00			$	1.87			$	4.84			$	0.44			$	0.41			$	0.83

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	1,100				1,100								1,084				1,084								Copper sales (millions of recoverable pounds)	1,072				1,072								1,100				1,100
Molybdenum sales (millions of recoverable pounds)a	Molybdenum sales (millions of recoverable pounds)a									24												24				Molybdenum sales (millions of recoverable pounds)a									26												24

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes charges totaling $0.03 per pound of copper for both third-quarter 2020 and the ~~third quarter and~~ first nine months of 2020, primarily associated with ~~our~~the April 2020 revised operating plans (including employee separation costs) and the COVID-19 ~~pandemic (including health and safety costs).~~

c.Includes reductions to average realized prices of $0.02 per pound of copper related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound. There are no remaining forward sales contracts.pandemic.

Our North America copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. Average unit net cash costs (net of by-product credits) for the North America copper mines ~~were $1.67~~of $1.82 per pound of copper in third-quarter 2021 and $1.88 per pound of copper for first nine months of 2021 were higher than unit net cash costs of $1.67 per pound in third-quarter 2020 and $1.82 per pound for the first nine months of 2020, ~~compared~~primarily reflecting higher mining and milling costs associated with ~~$1.92 per pound in third-quarter 2019~~the return to pre-COVID-19 operating rates and ~~$1.91 per pound for the first nine months of 2019. The decrease in the 2020 periods, compared to the 2019 periods, primarily reflects lower mining rates~~higher maintenance and input costs, ~~and cost reductions associated with our April 2020 revised operating plans,~~ partly offset by higher by-product credits and lower ~~by-product credits.~~

leach unit production costs associated with higher recoveries.

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Because certain assets are depreciated on a straight-line basis, North America’s average unit depreciation rate may vary with asset additions and the level of copper production and sales.

Average unit net cash costs (net of by-product credits) for our North America copper mines are expected to approximate ~~$1.81~~$1.85 per pound of copper for the year ~~2020,~~2021, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of ~~$8.00~~$19.00 per pound in fourth-quarter ~~2020.~~2021. North America’s average unit net cash costs for the year ~~2020~~2021 would change by approximately $0.01 per pound ~~of copper~~ for each $2 per pound change in the average price of molybdenum in fourth-quarter ~~2020.~~2021.

South America Mining

We operate two copper mines in South America – Cerro Verde in Peru (in which we own a 53.56 percent interest) and El Abra in Chile (in which we own a 51 percent interest), which are consolidated in our financial statements.

South America mining includes open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. Production from our South America mines is sold as copper concentrate or cathode under long-term contracts. Our South America mines also sell a portion of their copper concentrate production to Atlantic Copper. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.

Cerro Verde Labor Agreement. Cerro Verde's collective labor agreement (CLA) expired on August 31, 2021, and as of September 30, 2021, approximately 65 percent of its hourly employees have signed new CLAs. Cerro Verde incurred nonrecurring charges for the first nine months of 2021 totaling $74 million associated with these agreements. Negotiations for new CLAs for Cerro Verde's remaining hourly employees are ongoing and may result in additional charges.

Operating and Development Activities. Milling rates at Cerro ~~Verde continued to make progress toward restoring operations during third-quarter 2020, with operating rates averaging 351,000~~Verde's concentrator facilities averaged 381,500 metric tons of ore per day ~~(approximately 90 percent~~for the first nine months of ~~the 2019 annual average). We are continuing~~2021. Subject to ~~operate El Abra consistent with our April 2020 revised operating plans (third-quarter 2020 operating~~ongoing monitoring of COVID-19 protocols, Cerro Verde is targeting milling rates ~~were~~to average approximately ~~60 percent~~400,000 metric tons of ~~the 2019 annual average) while closely monitoring public health conditions~~ore per day in ~~Chile.~~2022.

El Abra is increasing operating rates to pre-COVID-19 pandemic levels. Stacking rates at El Abra averaged 93,100 metric tons per day in third-quarter 2021, approximately 25 percent higher than third-quarter 2020. Increased stacking rates are expected to result in incremental annual production of approximately 70 million pounds of copper beginning in mid-2022, compared with 2020 levels. A new leach pad is under construction to accommodate planned stacking rates for the next several years.

We continue to evaluate a large-scale expansion at El Abra to process additional sulfide material and to achieve higher copper recoveries. El Abra's large sulfide resource could potentially support a major mill project similar to facilities constructed at Cerro Verde in 2015. Technical and economic studies continue to be evaluated to determine the optimal scope and timing for the sulfide project, and we are engaging stakeholders and preparing data required for submission of a robust permit application. We are monitoring potential changes in government regulatory and fiscal matters in Chile and will defer major investment decisions pending clarity on these matters.

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Operating Data. Following is summary consolidated operating data for South America mining:


		Three Months Ended September 30,				Nine Months Ended September 30,						Three Months Ended September 30,				Nine months ended September 30,

		2020		2019		2020			2019			2021		2020		2021		2020
Copper (millions of recoverable pounds)	Copper (millions of recoverable pounds)										Copper (millions of recoverable pounds)
Production	Production	253		283		716			863		Production	260		253		764		716
Sales	Sales	250		261		716			838		Sales	280		250		769		716
Average realized price per pound	Average realized price per pound	$	3.02	$	2.61	$	2.79		$	2.67	Average realized price per pound	$	4.12	$	3.02	$	4.21	$	2.79

Molybdenum (millions of recoverable pounds)	Molybdenum (millions of recoverable pounds)										Molybdenum (millions of recoverable pounds)
Productiona	Productiona	6		6		14			21		Productiona	5		6		14		14

Leach operations	Leach operations										Leach operations
Leach ore placed in stockpiles (metric tons per day)	Leach ore placed in stockpiles (metric tons per day)	172,400		257,300		165,600			205,300		Leach ore placed in stockpiles (metric tons per day)	171,600		172,400		171,900		165,600
Average copper ore grade (percent)	Average copper ore grade (percent)	0.35		0.36		0.35			0.36		Average copper ore grade (percent)	0.30		0.35		0.33		0.35
Copper production (millions of recoverable pounds)	Copper production (millions of recoverable pounds)	55		70		180			192		Copper production (millions of recoverable pounds)	62		55		188		180

Mill operations	Mill operations										Mill operations
Ore milled (metric tons per day)	Ore milled (metric tons per day)	351,000		381,200		317,600		b	391,800		Ore milled (metric tons per day)	380,300		351,000		381,500		317,600		b
Average ore grade (percent):	Average ore grade (percent):										Average ore grade (percent):
Copper	Copper	0.33		0.35		0.35			0.36		Copper	0.31		0.33		0.30		0.35
Molybdenum	Molybdenum	0.01		0.02		0.01			0.02		Molybdenum	0.01		0.01		0.01		0.01

Copper recovery rate (percent)	Copper recovery rate (percent)	88.4		81.5		83.5			83.5		Copper recovery rate (percent)	86.1		88.4		86.3		83.5
Copper production (millions of recoverable pounds)	Copper production (millions of recoverable pounds)	198		213		536			671		Copper production (millions of recoverable pounds)	199		198		576		536

a.Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.

b.Cerro Verde mill operations were negatively impacted by COVID-19 restrictions.

Our consolidated copper sales volumes from South America totaled 280 million pounds in third-quarter 2021, 250 million pounds in third-quarter 2020, ~~261~~769 million pounds ~~in third-quarter 2019,~~for the first nine months of 2021 and 716 million pounds for the first nine months of ~~2020 and 838 million pounds for the first nine months of 2019. Lower~~2020. Higher copper sales volumes ~~for~~in third-quarter 2021, compared with third-quarter 2020, ~~compared to third-quarter 2019,~~ primarily reflect ~~lower mining rates associated with our April 2020 revised operating plans at El Abra and COVID-19 protocols at Cerro Verde. Lower~~timing of shipments. Higher copper sales volumes for the first nine months of ~~2020,~~2021, compared towith the first nine months of ~~2019,~~2020, primarily reflect ~~lower milling rates associated with COVID-19 restrictions at Cerro Verde.~~continued progress to return to pre-COVID-19 operating rates.

~~Table of Contents~~

Copper sales from South America ~~mines~~mining are expected to approximate ~~950 million~~1.0 billion pounds for the year ~~2020, compared with 1.2 billion pounds of copper for~~2021, slightly higher than the year ~~2019.~~2020.

Unit Net Cash Costs. Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Gross Profit per Pound of Copper

The following table summarizes unit net cash costs and gross profit per pound of copper at our South America mining operations. Unit net cash costs per pound of copper are reflected under the by-product and co-product methods as the South America mining operations also had sales of molybdenum and silver. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Three Months Ended September 30,
2020 2019
By-Product
Method Co-Product
Method By-Product
Method Co-Product
Method
Revenues, excluding adjustments $ 3.02 $ 3.02 $ 2.61 $ 2.61
Site production and delivery, before net noncash and other costs shown below 1.84 1.73 1.89 1.71
By-product credits (0.17) — (0.26) —
Treatment charges 0.15 0.15 0.17 0.17
Royalty on metals 0.01 0.01 0.01 —
Unit net cash costs 1.83 1.89 1.81 1.88
DD&A 0.42 0.39 0.42 0.38
Metals inventory adjustments — — 0.01 0.01
Noncash and other costs, net 0.04 a 0.04 0.08 0.08
Total unit costs 2.29 2.32 2.32 2.35
Revenue adjustments, primarily for pricing on prior period open sales 0.16 0.16 (0.11) (0.11)
Gross profit per pound $ 0.89 $ 0.86 $ 0.18 $ 0.15
Copper sales (millions of recoverable pounds) 250 250 261 261

Nine Months Ended September 30,
2020 2019
By-Product
Method Co-Product
Method By-Product
Method Co-Product
Method
Revenues, excluding adjustments $ 2.79 $ 2.79 $ 2.67 $ 2.67
Site production and delivery, before net noncash and other costs shown below 1.83 1.72 1.84 1.66
By-product credits (0.15) — (0.29) —
Treatment charges 0.15 0.15 0.18 0.18
Royalty on metals 0.01 0.01 0.01 0.01
Unit net cash costs 1.84 1.88 1.74 1.85
DD&A 0.44 0.41 0.41 0.36
Noncash and other costs, net 0.16 a 0.15 0.08 0.08
Total unit costs 2.44 2.44 2.23 2.29
Other revenue adjustments, primarily for pricing on prior period open sales (0.10) (0.10) 0.04 0.04
Gross profit per pound $ 0.25 $ 0.25 $ 0.48 $ 0.42
Copper sales (millions of recoverable pounds) 716 716 838 838

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	Three Months Ended September 30,
	2021					2020
	By-Product Method			Co-Product Method		By-Product Method			Co-Product Method
Revenues, excluding adjustments	$	4.12		$	4.12	$	3.02		$	3.02

Site production and delivery, before net noncash and other costs shown below	2.14		a	1.96		1.84			1.73
By-product credits	(0.38)			—		(0.17)			—
Treatment charges	0.13			0.13		0.15			0.15
Royalty on metals	0.01			0.01		0.01			0.01
Unit net cash costs	1.90			2.10		1.83			1.89
DD&A	0.40			0.36		0.42			0.39

Noncash and other costs, net	0.07			0.06		0.04		b	0.04
Total unit costs	2.37			2.52		2.29			2.32
Revenue adjustments, primarily for pricing on prior period open sales	(0.03)			(0.03)		0.16			0.16
Gross profit per pound	$	1.72		$	1.57	$	0.89		$	0.86

Copper sales (millions of recoverable pounds)	280			280		250			250


	Nine months ended September 30,
	2021					2020
	By-Product Method			Co-Product Method		By-Product Method			Co-Product Method
Revenues, excluding adjustments	$	4.21		$	4.21	$	2.79		$	2.79

Site production and delivery, before net noncash and other costs shown below	2.20		a	2.04		1.83			1.72
By-product credits	(0.31)			—		(0.15)			—
Treatment charges	0.13			0.13		0.15			0.15
Royalty on metals	0.01			0.01		0.01			0.01
Unit net cash costs	2.03			2.18		1.84			1.88
DD&A	0.40			0.36		0.44			0.41

Noncash and other costs, net	0.07			0.06		0.16		b	0.15
Total unit costs	2.50			2.60		2.44			2.44
Revenue adjustments, primarily for pricing on prior period open sales	0.13			0.13		(0.10)			(0.10)
Gross profit per pound	$	1.84		$	1.74	$	0.25		$	0.25

Copper sales (millions of recoverable pounds)	769			769		716			716

a.Includes $0.02 per pound of copper in third-quarter 2021 and $0.10 per pound of copper for the first nine months of 2021 associated with nonrecurring labor-related charges at Cerro Verde for agreements reached with approximately 65 percent of its hourly employees.

b.Third-quarter 2020 includes charges totaling $0.02 per pound of copper, primarily associated with the COVID-19 pandemic (including health and safety costs). The first nine months of 2020 includes charges totaling $0.13 per pound of copper, primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic, and employee separation costs associated with ~~our~~the April 2020 revised operating plans.

Our South America mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. Average unit net cash costs (net of by-product credits) for the South America copper mines were $1.90 per pound of copper in third-quarter 2021, $1.83 per pound of copper in third-quarter 2020, ~~and $1.84~~$2.03 per pound of copper for the first nine months of ~~2020, compared to $1.81~~2021 and $1.84 per pound ~~in third-quarter 2019 and $1.74 per pound~~of copper for the first nine months of ~~2019. The slight increase~~2020. Higher unit net cash costs in ~~third-quarter~~the 2021 periods, compared with the 2020 ~~compared to third-quarter 2019,~~periods, primarily ~~reflects lower by-product credits~~reflect increased milling activities, profit-sharing costs and ~~sales volumes,~~higher maintenance and input costs, partly offset by ~~lower mining rates.~~higher sales volumes and by-product credits. The ~~increase for the~~ first nine months of ~~2020, compared to the first nine months of 2019, primarily reflects lower sales volumes and by-product credits, partly offset by reduced mining and milling activities~~2021 also included nonrecurring labor-related charges at Cerro ~~Verde.~~Verde ($0.10 per pound of copper) for new CLAs as discussed above.

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Revenues from Cerro Verde’s concentrate sales are recorded net of treatment charges, which will vary with Cerro Verde’s sales volumes and the price of copper.

Because certain assets are depreciated on a straight-line basis, South America’s unit depreciation rate may vary with asset additions and the level of copper production and sales.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate ~~$1.88~~$2.04 per pound of copper for the year ~~2020,~~2021, based on current sales volume and cost estimates and assuming an average price of ~~$8.00~~$19.00 per pound of molybdenum in fourth-quarter ~~2020.~~2021.

Indonesia Mining

PT-FI operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. We have a 48.76 percent interest in PT-FI and manage its mining operations. As further discussed in Note 2 of our ~~2019~~2020 Form 10-K, under the terms of the shareholders agreement, our economic interest in PT-FI approximates 81 percent through 2022. PT-FI’s results are consolidated in our financial statements.

PT-FI continues to operate with heightened protocols and travel restrictions designed to protect the health and safety of its workforce and the surrounding community during the COVID-19 pandemic. These measures have proven effective and have enabled PT-FI to operate reliably throughout the pandemic.

Substantially all of PT-FI’s copper concentrate is sold under long-term contracts. During the first nine months of ~~2020, 74~~2021, 44 percent of PT-FI’s concentrate production was sold to PT Smelting (PT-FI’s ~~25-percent-owned~~39.5-percent owned copper smelter and refinery in Gresik, Indonesia).

Operating and Development Activities. The ramp-up of underground production at the Grasberg minerals district in Indonesia continues to advance on schedule. ~~During third-quarter 2020, a~~Third-quarter 2021 highlights include:

•Production approximated 90 percent of the projected ultimate annualized level and is expected to reach 100 percent by year-end 2021.

•A total of 5527 new drawbells were ~~added~~constructed at the Grasberg Block Cave and Deep Mill Level Zone (DMLZ) underground mines, bringing cumulative open drawbells to ~~over 300.~~ 490.

•Combined average production from the Grasberg Block Cave and DMLZ underground mines approximated 60,000 metric tons of ore per day during third-quarter 2020, 9 percent above the second-quarter 2020 average but approximately 15 percent below the July 2020 estimate, primarily reflecting unplanned downtime and a brief labor-related work stoppage. However, metal volume targets were achieved during third-quarter 2020 as a result of higher ore grades. For the month of September 2020, combined average production from the Grasberg Block Cave and DMLZ mines totaled approximately 75,000136,200 metric tons of ore per day and PT-FI's milling rates averaged 157,400 metric tons of ore per day.

PT-FI’s milling rates averaged over 177,000 metric tons of ore per day for the ~~ramp-up schedule remains on track.~~month of September 2021. PT-FI expects ~~its~~milling rates to average approximately 175,000 metric tons of ore per day in fourth-quarter 2021 ~~production~~and to ~~approximate 1.4 billion pounds~~continue at that rate until additional milling facilities are installed as currently planned in 2023, which PT-FI expects will result in mill capacity of ~~copper and 1.4 million ounces~~approximately 240,000 metric tons of ~~gold, which is nearly double projected 2020 levels.~~ore per day.

~~The successful completion of this ramp up is expected to enable~~ PT-FI expects to generate average annual production ~~for the next several years~~ of 1.55 billion pounds of copper and 1.6 million ounces of gold for the next several years at an ~~average~~attractive unit net cash cost, ~~of approximately $0.20 per pound~~providing significant margins and cash flows. For the year 2021, PT-FI production is expected to approximate 1.3 billion pounds of copper ~~assuming an average price of $1,400 per ounce~~and 1.3 million ounces of gold, ~~and achievement of projected sales volumes and cost estimates.~~nearly double 2020 levels.

PT-FI's estimated annual capital spending on underground mine development projects is expected to average approximately $0.9 billion per year for ~~the three-year period 2020 through~~2021 and 2022, net of scheduled contributions from PT ~~Indonesia Asahan Aluminium (Persero) (PT Inalum).~~Inalum. In accordance with applicable accounting guidance, aggregate costs (before scheduled contributions from PT Inalum), which are expected to average ~~$1.0~~$1.1 billion per

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year for ~~the three-year period 2020 through~~2021 and 2022, will be reflected as an investing activity in our cash flow statement, and contributions from PT Inalum will be reflected as a financing activity.

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Kucing Liar. PT-FI is planning to commence long-term mine development activities for its Kucing Liar deposit to produce approximately 6 billion pounds of copper and 6 million ounces of gold over the life of the project. Refer to our 2020 Form 10-K for further discussion of Kucing Liar. Similar to PT-FI's experience with large-scale, block-cave mines, pre-production development activities will occur over an approximate 10-year timeframe. At full operating rates, annual production from Kucing Liar is expected to exceed 500 million pounds of copper and 500,000 ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production. Capital investments for Kucing Liar over the next 10 years are expected to average approximately $400 million per year. Kucing Liar will benefit from substantial shared infrastructure and PT-FI's experience and long-term success in block-cave mining.

Indonesia Smelter. As discussed in Note 13 of our 2020 Form 10-K, PT-FI committed to construct additional domestic smelting capacity totaling 2 million metric tons of concentrate per year. During 2020, PT-FI notified the Indonesia government of schedule delays for construction of the greenfield smelter resulting from the COVID-19 pandemic and continues to review with the government a ~~result~~revised schedule for the project.

To fulfill its obligation for additional domestic smelter capacity in Indonesia, PT-FI is planning the following:

•Construction of ~~disruptions to work and travel schedules of international contractors and current restrictions on access to the proposed physical site~~a new greenfield smelter in Gresik, Indonesia ~~associated~~ with ~~COVID-19 mitigation measures,~~a capacity to process approximately 1.7 million metric tons of concentrate per year. In July 2021, PT-FI ~~has notified~~awarded a construction contract to Chiyoda with an estimated cost of $2.8 billion. The smelter construction is expected to be completed as soon as feasible in 2024, which is subject to, among other things, pandemic-related disruptions.

•Expansion of annual capacity at PT Smelting by 300,000 metric tons of concentrate, a 30 percent increase. PT-FI is advancing agreements with the ~~Indonesian government~~majority owner of ~~delays in achieving~~PT Smelting to implement the expansion plans with a target completion ~~timeline~~date of ~~December~~year-end 2023. PT-FI ~~continues~~would fund the cost of the expansion, estimated to ~~discuss with~~approximate $250 million, and increase its ownership in PT Smelting to a majority ownership interest.

•Construction of a PMR to process gold and silver from the ~~Indonesian~~new greenfield smelter and PT Smelting at an estimated cost of $250 million.

All costs of smelter development in Indonesia will be shared 49 percent by FCX and 51 percent by PT Inalum, and will be largely offset by a phase-out of the 5 percent export duty currently paid to the Indonesia government ~~a deferred schedule for the project~~ as well as ~~other alternatives in light~~the tax deductibility of ~~COVID-19~~smelter costs by PT-FI.

In July 2021, PT-FI entered into a $1.0 billion, five-year, unsecured bank credit facility to advance these projects. As of September 30, 2021, $158 million ($146 million net of debt issuance costs) was drawn under this facility. Additional debt financing is being evaluated to fund the projects. Refer to Note 5 and ~~global economic conditions.~~“Capital Resources and Liquidity” for further discussion of the credit facility. Capital expenditures for the Indonesia smelter project totaled $0.1 billion for the first nine months of 2021, and are expected to approximate $0.3 billion for the year 2021.

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Operating Data. Following is summary consolidated operating data for Indonesia mining:


		Three Months Ended September 30,					Nine Months Ended September 30,					Three Months Ended September 30,				Nine months ended September 30,

		2020			2019		2020		2019			2021		2020		2021		2020
Operating Data
Copper (millions of recoverable pounds)	Copper (millions of recoverable pounds)										Copper (millions of recoverable pounds)
Production	Production	222			191		543		461		Production	350		222		956		543
Sales	Sales	219			139		518		464		Sales	378		219		946		518
Average realized price per pound	Average realized price per pound	$	3.00		$	2.59	$	2.79	$	2.70	Average realized price per pound	$	4.11	$	3.00	$	4.21	$	2.79

Gold (thousands of recoverable ounces)	Gold (thousands of recoverable ounces)										Gold (thousands of recoverable ounces)
Production	Production	236			329		577		645		Production	371		236		968		577
Sales	Sales	230			239		549		659		Sales	399		230		957		549
Average realized price per ounce	Average realized price per ounce	$	1,902		$	1,487	$	1,810	$	1,380	Average realized price per ounce	$	1,757	$	1,902	$	1,780	$	1,810

Operating Data
Ore extracted and milled (metric tons per day):	Ore extracted and milled (metric tons per day):										Ore extracted and milled (metric tons per day):
Grasberg Block Cave underground minea	Grasberg Block Cave underground minea	30,800			10,600		25,700		7,700		Grasberg Block Cave underground minea	76,500		30,800		64,300		25,700
DMLZ underground minea	DMLZ underground minea	29,100			9,800		25,100		8,100		DMLZ underground minea	59,700		29,100		53,500		25,100
DOZ underground minea		20,700			24,500		20,900		25,300
Big Gossan underground minea		7,100			7,000		6,600		6,000
Grasberg open pitb		—			70,000		2,200		75,500
Deep Ore Zone underground mineb											Deep Ore Zone underground mineb	2,700		20,700		10,600		20,900
Big Gossan underground mine											Big Gossan underground mine	7,400		7,100		7,500		6,600

Other											Other	11,100		(400)		5,700		2,200
Total	Total	87,300		c	121,900		80,500		122,600		Total	157,400		87,300		141,600		80,500
Average ore grades:	Average ore grades:										Average ore grades:
Copper (percent)	Copper (percent)	1.45			0.92		1.30		0.77		Copper (percent)	1.30		1.45		1.32		1.30
Gold (grams per metric ton)	Gold (grams per metric ton)	1.20			1.23		1.08		0.85		Gold (grams per metric ton)	1.05		1.20		1.04		1.08
Recovery rates (percent):	Recovery rates (percent):										Recovery rates (percent):
Copper	Copper	92.3			89.4		92.0		87.6		Copper	90.1		92.3		90.0		92.0
Gold	Gold	79.3			75.6		78.2		73.5		Gold	78.6		79.3		77.8		78.2

a.~~Reflects ore extracted, including~~Includes ore from development activities that result in metal production.

b.~~Includes ore from the Grasberg open-pit stockpile.~~

c.~~Does not foot because of changes in stockpile ore.~~Expected to cease production by December 31, 2021.

Our consolidated copper and gold sales ~~volumes~~ from PT-FI totaled ~~219~~378 million pounds and 399 thousand ounces in third-quarter ~~2020, 139~~2021 and 946 million pounds ~~in third-quarter 2019, 518 million pounds~~and 957 thousand ounces for the first nine months of ~~2020~~2021, compared with copper and ~~464~~gold sales of 219 million pounds ~~for first nine months of 2019. Higher sales volumes for third-quarter 2020, compared to third-quarter 2019, primarily reflect higher copper ore grades~~ and timing of shipments in third-quarter 2019, partly offset by anticipated lower mining and milling rates associated with the ramp-up of underground mining at PT-FI. Higher sales volumes for the first nine months of 2020, compared to the first nine months of 2019, primarily reflect higher copper ore grades, partly offset by anticipated lower mining and milling rates associated with the ramp-up of underground mining at PT-FI.

~~Our consolidated gold sales volumes from PT-FI totaled~~ 230 thousand ounces in third-quarter 2020 ~~239 thousand ounces in third-quarter 2019,~~and 518 million pounds and 549 thousand ounces for the first nine months of 2020 and 659 thousand ounces for the first nine months of 2019. Lower sales volumes for third-quarter 2020, compared to third-quarter 2019, primarily reflects lower mining and milling rates, partly offset by timing of shipments2020. The increase in ~~third-quarter 2019. Lower~~ sales volumes for the ~~first nine months~~2021 periods primarily reflects the ramp-up of ~~2020, compared to~~underground mining at PT-FI and the ~~first nine months~~timing of ~~2019, primarily reflect lower mining and milling rates, partly offset by higher gold ore grades.~~shipments.

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Consolidated sales volumes from PT-FI are expected to approximate ~~790~~1.3 billion pounds of copper and 1.3 million ounces of gold for the year 2021, compared with 0.8 billion pounds of copper and 0.8 million ounces of gold infor the year 2020. ~~As the ramp-up of underground mining at PT-FI continues to advance, metal production is expected to improve significantly in 2021, compared with 2020 and 2019.~~

Unit Net Cash Costs. Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

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Gross Profit per Pound of Copper and per Ounce of Gold

The following table summarizes the unit net cash costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations. Refer to “Product Revenues and Production Costs” for an explanation of “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.


		Three Months Ended September 30,																			Three Months Ended September 30,
		2020							2019												2021												2020
		By-Product Method			Co-Product Method				By-Product Method				Co-Product Method								By-Product Method				Co-Product Method								By-Product Method				Co-Product Method
					Copper		Gold				Copper				Gold								Copper				Gold								Copper				Gold
Revenues, excluding adjustments	Revenues, excluding adjustments	$	3.00		$	3.00	$	1,902			$	2.59			$	2.59			$	1,487		Revenues, excluding adjustments	$	4.11			$	4.11			$	1,757			$	3.00			$	3.00			$	1,902

Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	1.71			1.01		639		2.44				1.21				695		Site production and delivery, before net noncash and other costs shown below		1.46				0.99				424				1.71				1.01				639
Gold and silver credits	Gold and silver credits	(2.16)			—		—		(2.64)				—				—		Gold and silver credits		(1.97)				—				—				(2.16)				—				—
Treatment charges	Treatment charges	0.26			0.16		98		0.25				0.13				72		Treatment charges		0.24				0.16				69				0.26				0.16				98
Export duties	Export duties	0.11			0.06		40		0.05				0.03				15		Export duties		0.19				0.13				54				0.11				0.06				40
Royalty on metals	Royalty on metals	0.21			0.12		79		0.17				0.08				46		Royalty on metals		0.25				0.18				63				0.21				0.12				79
Unit net cash costs	Unit net cash costs	0.13			1.35		856		0.27				1.45				828		Unit net cash costs		0.17				1.46				610				0.13				1.35				856
DD&A	DD&A	0.68			0.40		256		0.55				0.27				158		DD&A		0.74				0.50				215				0.68				0.40				256
Noncash and other costs, net	Noncash and other costs, net	0.11		a	0.06		40		1.39		b		0.69				395		Noncash and other costs, net		—				—				—				0.11		a		0.06				40
Total unit costs	Total unit costs	0.92			1.81		1,152		2.21				2.41				1,381		Total unit costs		0.91				1.96				825				0.92				1.81				1,152
Revenue adjustments, primarily for pricing on prior period open sales	Revenue adjustments, primarily for pricing on prior period open sales	0.13			0.13		49		(0.05)				(0.05)				8		Revenue adjustments, primarily for pricing on prior period open sales		—				—				16				0.13				0.13				49
PT Smelting intercompany loss	PT Smelting intercompany loss	(0.08)			(0.05)		(31)		(0.24)				(0.12)				(69)		PT Smelting intercompany loss		(0.04)				(0.03)				(12)				(0.08)				(0.05)				(31)
Gross profit per pound/ounce	Gross profit per pound/ounce	$	2.13		$	1.27	$	768	$	0.09			$	0.01			$	45	Gross profit per pound/ounce		$	3.16			$	2.12			$	936			$	2.13			$	1.27			$	768

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	219			219				139				139						Copper sales (millions of recoverable pounds)		378				378								219				219
Gold sales (thousands of recoverable ounces)	Gold sales (thousands of recoverable ounces)						230										239		Gold sales (thousands of recoverable ounces)										399												230

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		Nine Months Ended September 30,																			Nine Months Ended September 30,
		2020							2019												2021												2020
		By-Product Method			Co-Product Method				By-Product Method				Co-Product Method								By-Product Method				Co-Product Method								By-Product Method				Co-Product Method
					Copper		Gold				Copper				Gold								Copper				Gold								Copper				Gold
Revenues, excluding adjustments	Revenues, excluding adjustments	$	2.79		$	2.79	$	1,810			$	2.70			$	2.70			$	1,380		Revenues, excluding adjustments	$	4.21			$	4.21			$	1,780			$	2.79			$	2.79			$	1,810

Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	2.05			1.19		773		3.00				1.72				879		Site production and delivery, before net noncash and other costs shown below		1.49				1.03				434				2.05				1.19				773
Gold and silver credits	Gold and silver credits	(2.02)			—		—		(2.02)				—				—		Gold and silver credits		(1.91)				—				—				(2.02)				—				—
Treatment charges	Treatment charges	0.28			0.16		104		0.27				0.15				79		Treatment charges		0.24				0.17				70				0.28				0.16				104
Export duties	Export duties	0.08			0.05		31		0.07				0.04				22		Export duties		0.15				0.10				45				0.08				0.05				31
Royalty on metals	Royalty on metals	0.18			0.10		68		0.15				0.09				41		Royalty on metals		0.26				0.18				66				0.18				0.10				68
Unit net cash costs	Unit net cash costs	0.57			1.50		976		1.47				2.00				1,021		Unit net cash costs		0.23				1.48				615				0.57				1.50				976
DD&A	DD&A	0.72			0.42		273		0.61				0.35				177		DD&A		0.76				0.52				222				0.72				0.42				273
Noncash and other costs, net	Noncash and other costs, net	0.11		a	0.07		41		0.52		b		0.29				152		Noncash and other costs, net		0.01		b		0.01				1				0.11		a		0.07				41
Total unit costs	Total unit costs	1.40			1.99		1,290		2.60				2.64				1,350		Total unit costs		1.00				2.01				838				1.40				1.99				1,290
Revenue adjustments, primarily for pricing on prior period open sales	Revenue adjustments, primarily for pricing on prior period open sales	(0.03)			(0.03)		8		0.04				0.04				3		Revenue adjustments, primarily for pricing on prior period open sales		0.08				0.08				(5)				(0.03)				(0.03)				8
PT Smelting intercompany loss	PT Smelting intercompany loss	(0.04)			(0.02)		(13)		(0.05)				(0.03)				(14)		PT Smelting intercompany loss		(0.11)				(0.08)				(33)				(0.04)				(0.02)				(13)
Gross profit per pound/ounce	Gross profit per pound/ounce	$	1.32		$	0.75	$	515	$	0.09			$	0.07			$	19	Gross profit per pound/ounce		$	3.18			$	2.20			$	904			$	1.32			$	0.75			$	515

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	518			518				464				464						Copper sales (millions of recoverable pounds)		946				946								518				518
Gold sales (thousands of recoverable ounces)	Gold sales (thousands of recoverable ounces)						549										659		Gold sales (thousands of recoverable ounces)										957												549

a.Includes COVID-19 related costs (including one-time incremental employee benefits and health and safety costs) totaling $0.05 per pound of copper in third-quarter2020 and $0.03 per pound of copper for the first nine months of 2020.

b.Includes ~~charges totaling $1.19 per pound~~credits of copper in third-quarter 2019 and $0.36 per pound of copper for the first nine months of 2019, primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties. The first nine months also includes charges totaling $0.06$0.03 per pound of copper associated with adjustments to ~~the~~prior year treatment and refining charges and charges of $0.02 per pound of copper associated with a potential settlement of an administrative fine levied by the ~~historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.~~Indonesia government.

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Because of the fixed nature of a large portion of PT-FI's costs, unit net cash costs ~~can vary significantly from quarter to quarter depending~~depend on copper and gold volumes. PT-FI’s unit net cash costs ~~(including~~(net of gold and silver credits) of ~~$0.13~~$0.17 per pound of copper in third-quarter ~~2020~~2021 were higher than $0.13 per pound in third-quarter, primarily reflecting lower by-product credits and higher export duties and royalties associated with higher copper prices, partly offset by higher volumes. PT-FI’s unit net cash costs (net of gold and silver credits) of $0.23 per pound for the first nine months of 2021, were lower than $0.57 per pound for the first nine months of 2020, ~~were lower than unit net cash costs of $0.27 per pound of copper in third-quarter 2019 and $1.47 per pound for the first nine months of 2019,~~ primarily reflecting higher ~~copper~~ sales volumes, ~~and lower~~partly offset by higher mining costs associated with the ramp-up of underground mining and ~~milling rates.~~higher export duties and royalties.

Treatment charges vary with the volume of metals sold and the price of copper, and royalties vary with the volume of metals sold and the prices of copper and gold.

PT-FI’s export duties totaled $71 million in third-quarter 2021, $24 million in third-quarter 2020, $8$145 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $43 million for the first nine months of ~~2020 and $35 million for the first nine months of 2019.~~2020. PT-FI will continue to pay export duties until development progress for ~~the new smelter in Indonesia~~additional domestic smelting capacity of 2 million metric tons of concentrate per year exceeds 50 percent.

PT-FI’s royalties totaled $94 million in third-quarter 2021, $45 million in third-quarter 2020, ~~$23~~$234 million ~~in third-quarter 2019,~~for the first nine months of 2021 and $92 million for the first nine months of ~~2020~~2020. The increase in export duties and ~~$68 million~~royalties for the ~~first nine months of 2019.~~2021 periods, compared with the 2020 periods, primarily reflect higher sales volumes and copper prices.

Because certain assets are depreciated on a straight-line basis, PT-FI’s unit depreciation rate may vary with asset additions and the level of copper production and sales. DD&A per pound of copper under the by-product method was ~~$0.68~~$0.74 per pound in third-quarter ~~2020, $0.55 per pound in third-quarter 2019, $0.72 for the first nine months of 2020~~2021 and ~~$0.61~~$0.76 per pound for the first nine months of ~~2019.~~2021, compared with $0.68 per pound in third-quarter 2020 and $0.72 per pound for the first nine months of 2020. The increase in the ~~2020~~rate per pound of copper for the 2021 periods, compared with the ~~2019~~2020 periods, primarily reflects the significant underground development assets placed ininto service.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods.

PT Smelting intercompany loss represents the change in the deferral of ~~25 percent of~~ PT-FI’s profit on sales to PT ~~Smelting.~~Smelting (25 percent prior to April 30, 2021, and 39.5 percent thereafter). Refer to “Smelting and Refining” below for further discussion.

Assuming an average gold price of ~~$1,900~~$1,800 per ounce in fourth-quarter ~~2020~~2021 and achievement of current sales volume and cost estimates, unit net cash costs ~~(including~~(net of gold and silver credits) for PT-FI are expected to

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approximate ~~$0.45~~$0.22 per pound of copper for the year ~~2020.~~2021. The impact of ~~price~~prices changes during fourth-quarter ~~2020~~2021 on PT-FI's ~~average~~ unit net cash costs for the year ~~2020~~2021 would approximate ~~$0.02~~$0.04 per pound of copper for each ~~$50~~$100 per ounce change in the average price of gold.

PT-FI’s projected sales volumes and unit net cash costs for the year ~~2020~~2021 are dependent on a number of factors, including continued progress of the ramp-up of underground mining, operational performance, ~~and~~ timing of ~~shipments. In March 2020, PT-FI received a one-year extension of its export license through March 15, 2021.~~shipments and other factors detailed in the “Cautionary Statement” below.

Molybdenum Mines

We operate two wholly owned molybdenum mines in Colorado – the Henderson underground mine and the Climax open-pit mine. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the Henderson and Climax mines, as well as from our North America and South America copper mines, is processed at our own conversion facilities.

Operating and Development Activities. Production from the Molybdenum mines ~~totaled~~of 9 million pounds of molybdenum in third-quarter 2021 and 23 million pounds for the first nine months of 2021, was higher than production of 6 million pounds of molybdenum in third-quarter 2020 ~~7 million pounds in third-quarter 2019,~~and 19 million pounds for the first nine months of 2020, ~~and 24 million pounds~~primarily reflecting higher milling rates at the Climax mine as it returns to pre-COVID-19 levels. FCX may increase rates at the Climax mine if necessary to satisfy increasing requirements for the first nine months of 2019. The decrease in the 2020 periods, compared with the 2019 periods, primarily reflects lower operating rates pursuant to our April 2020 revised operating plans in response to current market conditions.molybdenum. Refer to “Consolidated Results” for our consolidated molybdenum operating data, which includes sales of molybdenum produced at our Molybdenum mines and from our North America and South America copper mines. Refer to “Outlook” for projected consolidated molybdenum sales volumes.

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Unit Net Cash Costs Per Pound of Molybdenum. Unit net cash costs per pound of molybdenum is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Average unit net cash costs for our Molybdenum mines ~~were $9.72~~of $8.54 per pound of molybdenum for both the third quarter and first nine months of 2021 were lower than average unit net cash costs of $9.72 per pound in third-quarter 2020 and $9.58 per pound for the first nine months of 2020, ~~compared to $11.64 per pound in third-quarter 2019 and $10.13 per pound for the first nine months of 2019. The decrease in the 2020 periods, compared to the 2019 periods,~~ primarily reflects lower operating costs associated with our April 2020 revised operating plans. Average unit net cash costs for our Molybdenum mines do not include noncash and other costs, which include charges totaling $0.05 per pound of molybdenum in third-quarter 2020 and $0.36 per pound of molybdenum for the first nine months of 2020. Charges for third-quarter 2020 were primarily associated with employee separation costs related to our April 2020 revised operating plans, and charges for the first nine months of 2020 were primarily associated with our April 2020 revised operating plans (including employee separation costs) and contract cancellation costs related to the COVID-19 pandemic.reflecting higher volumes. Based on current sales volume and cost estimates, average unit net cash costs for the Molybdenum mines are expected to approximate ~~$9.75~~$9.10 per pound of molybdenum for the year ~~2020.~~2021.

Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Smelting and Refining

We wholly own and operate a smelter in Arizona (Miami smelter), a refinery in Texas (El Paso refinery) and a smelter and refinery in Spain (Atlantic Copper). ~~Additionally,~~ PT-FI ~~owns 25~~has a 39.5 percent ~~of a smelter and refinery~~ownership interest in ~~Gresik, Indonesia (PT Smelting).~~PT Smelting. Treatment charges for smelting and refining copper concentrate consist of a base rate per pound of copper and per ounce of gold and are generally fixed. Treatment charges represent a cost to our mining operations and income to Atlantic Copper and PT Smelting. Thus, higher treatment charges benefit our smelter operations and adversely affect our mining operations. Our North America copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery. Through this form of downstream integration, we are assured placement of a significant portion of our concentrate production.

47Our Miami smelter processes concentrate produced by our U.S. mines and also provides acid for copper leaching operations. During the first nine months of 2021, we incurred charges totaling $87 million associated with a major maintenance turnaround at our Miami smelter, which were higher than original estimates as a result of extended downtime to address additional required maintenance work, the COVID-19 pandemic and weather events. The next major maintenance turnaround is scheduled for the first half of 2024.

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Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. During the first nine months of ~~2020,~~2021, Atlantic Copper’s concentrate purchases ~~include 20~~included 33 percent from our copper mining operations and 8067 percent from third parties.

PT-FI’s contract with PT Smelting provides for PT-FI to supply 100 percent of the copper concentrate requirements (subject to a minimum or maximum treatment charge rate) necessary for PT Smelting to produce 205,000 metric tons of copper annually on a priority basis. PT-FI may also sell copper concentrate to PT Smelting at market rates for quantities in excess of 205,000 metric tons of copper annually. During the first nine months of ~~2020,~~2021, PT-FI supplied ~~most~~the substantial majority of PT Smelting’s concentrate requirements. In ~~March 2020,~~July 2021, PT Smelting received a ~~one-year~~six-month extension of its ~~anode~~anodes slimes export license, ~~through March 10,~~which currently expires December 30, 2021.

We defer recognizing profits on sales from our mining operations to Atlantic Copper and on ~~25 percent of~~ PT-FI’s sales to PT Smelting (on 25 percent through April 30, 2021, and on 39.5 percent thereafter) until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net ~~reductions~~additions (reductions) to operating income ~~(loss)~~ totaling ~~$21~~$41 million ($2148 million to net income attributable to common stock) in third-quarter 2021, $(21) million ($(21) million to net income attributable to common stock) in third-quarter 2020, $4$(144) million ($4(97) million to net ~~loss~~income attributable to common stock) ~~in third-quarter 2019, $27~~for the first nine months of 2021 and $(27) million ($20(20) million to net loss attributable to common stock) for the first nine months of ~~2020 and $24 million ($20 million to net loss attributable to common stock) for the first nine months of 2019.~~2020. Our net deferred profits on our inventories at Atlantic Copper and PT Smelting to be recognized in future periods’ net income attributable to common stock totaled ~~$57~~$156 million at September 30, ~~2020.~~2021. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in our net deferred profits and quarterly earnings. Based on current estimates, in fourth-quarter 2021, we do not expect a significant change in our net deferred profits on intercompany copper sales but project a net deferral of profits on intercompany molybdenum sales of approximately $40 million ($30 million to net income attributable to common stock).

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CAPITAL RESOURCES AND LIQUIDITY

We generated significant cash flows during the first nine months of 2021, reflecting strong operating and financial performance. With a favorable market outlook and a focus on executing our operating plans, we expect further increases in sales volumes and cash flows in 2022 and we believe we are well positioned to provide cash returns to shareholders consistent with our financial policy.

We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value. The ramp-up of underground mining at PT-FI ~~has several projects in~~continues to be successful and is advancing on schedule, with production rates expected to reach the projected ultimate annualized levels by year-end 2021. With the success of the Grasberg ~~minerals district related~~Block Cave and DMLZ underground projects, PT-FI is planning to ~~the~~commence long-term mine development ofactivities for its ~~large-scale, long-lived, high-grade underground ore bodies and we have completed the Lone Star copper leach project near our Safford operation in eastern Arizona.~~Kucing Liar deposit. We are also evaluating ~~other~~organic growth opportunities ~~to enhance net present values, and we continue to consider future development~~for expansion of certain of our ~~copper resources,~~operations in North America and South America, including at Bagdad, Lone Star and El Abra, the timing of which will be dependent on, among other things, market conditions.

~~During second quarter 2020, we announced revised~~Based on current sales volume, cost and metal price estimates discussed in “Outlook”, our projected consolidated operating ~~plans in response to the global COVID-19 pandemic and resulting negative impact on the global economy. The revised operating plans are focused on maximizing~~ cash flow and protecting liquidity in a weak and uncertain economic environment and to preserve asset values for anticipated improved copper prices as economic conditions recover. As presented in “Outlook,”flows of $7.5 billion for the year ~~2020,~~2021 significantly exceed our expected consolidated capital expenditures of $2.3 billion (which include $0.3 billion of capital expenditures for the Indonesia smelter project) and other cash requirements for the year, including debt repayments, common stock dividends and noncontrolling interest distributions. We believe that our cash generating capability and financial condition, together with availability under our revolving credit facility, will be adequate to meet our operating, investing and financing needs. Expenditures for the Indonesia smelter project are currently being funded by PT-FI’s new $1.0 billion unsecured bank credit facility and additional debt financing for this project is being evaluated. Refer to “Outlook” for further discussion of projected operating cash flows ~~of $2.9 billion are expected to exceed projected~~and capital expenditures for 2021 and to “Debt” below and Note 5 for further discussion of $2.0 billion. A large portion of the capital expenditures relate to projects that are expected to add significant production and cash flow in future periods. We have cash on hand and the financial flexibility to fund these expenditures and will continue to be disciplined in deploying capital. With anticipated increases in copper and gold sales volumes and decreases in unit net cash costs, operating cash flows in 2021 are expected to be significantly higher than 2020 levels.PT-FI’s credit facility.

At September 30, ~~2020,~~2021, we had ~~$5.9~~$11.2 billion in liquidity, comprised of ~~$2.4~~$7.7 billion in consolidated cash and $3.5 billion of availability under our revolving credit facility.

Financial Policy.In ~~connection~~February 2021, our Board of Directors (Board) adopted a financial policy for the allocation of cash flows aligned with our ~~financings from August 2019 through July 2020, we’ve issued~~strategic objectives of maintaining a ~~total of $4.0 billion in new senior notes~~strong balance sheet and ~~used most of the net proceeds to purchase and redeem outstanding senior notes. As a result, we have extended maturities and strengthened our financial flexibility.~~

With continued strong financial performance and successful execution of our operating plans, management expects to recommend to the Board the resumption of common stock dividends during 2021 and anticipates an ongoing ability to increaseincreasing cash returns to shareholders while advancing opportunities for future growth. The policy includes a base dividend and a performance-based payout framework whereby up to 50 percent of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to maintaining the ~~future. As further discussed in Note 5, we are currently restricted from declaring or paying~~net debt target described below.

In February 2021, the Board reinstated a cash dividend on our common stock (base dividend) at an annual rate of $0.30 per share, and on November 1, 2021, the Board approved (i) a new share repurchase program authorizing repurchases of up to $3.0 billion of our common stock and (ii) a variable cash dividend on common stock for 2022 at an annual rate of $0.30 per share. The combined annual rate of the base dividend and the variable dividend is expected to total $0.60 per share. The Board intends to declare quarterly dividends ~~under our revolving credit facility.~~for 2022 of $0.15 per share (including the $0.075 variable component), with the initial quarterly dividend expected to be paid on February 1, 2022. Based on current shares outstanding totaling 1.47 billion, the total common stock dividend (base and variable) for 2022 currently expected to be paid approximates $0.9 billion. Refer to “Cautionary Statement.”

Our performance-based payout framework is designed to maintain net debt at a level not to exceed the range of $3 billion to $4 billion (excluding project debt for additional smelting capacity in Indonesia). The Board will review the structure and the amount of the performance-based payout framework at least annually.

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Cash

Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share, taxes and other costs at September 30, ~~2020~~2021 (in billions):


Cash at domestic companies	$	~~1.6~~5.0
Cash at international operations	~~0.8~~2.7
Total consolidated cash and cash equivalents	~~2.4~~7.7
Noncontrolling interests’ share	~~(0.3)~~(0.9)
Cash, net of noncontrolling interests’ share	~~2.1~~6.8
Withholding taxes	— (0.1)		a
Net cash available	$	~~2.1~~6.7

~~a. Rounds to less than $0.1 billion.~~

Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayment, working capital and other tax payments, or other cash needs. Management believes that sufficient liquidity is available in the U.S. from cash balances and availability from our revolving credit facility. We have not elected to permanently reinvest earnings from our foreign subsidiaries, and we have recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S. From time to time, our foreign subsidiaries distribute earnings to the U.S. through dividends that are subject to applicable withholding taxes and noncontrolling interests’ share.

Debt

At September 30, ~~2020,~~2021, our consolidated debt totaled ~~$10.0~~$9.7 billion, with a weighted-average interest rate of 4.6 ~~percent and no senior note maturities until 2022. At September 30, 2020, we~~percent. We had no borrowings ~~$13~~outstanding and $8 million in letters of credit issued ~~and $3.5 billion of availability under our revolving credit facility. Availability~~ under our revolving credit facility, ~~consists~~resulting in availability of ~~$3.28 billion maturing April 2024 and $220 million maturing April 2023.~~approximately $3.5 billion.

In September 2021, Cerro Verde elected to prepay $200 million on its term loan, reducing the outstanding balance to $325 million, which matures in June 2020, we amended our revolving credit facility to provide additional flexibility on certain financial covenants. The key changes under the amendment include a suspension of the total leverage ratio through June 30, 2021, and a reduction in the interest expense coverage ratio to a minimum of 2.0x through December 31, 2021. We also agreed to a minimum liquidity covenant of $1 billion (consisting of consolidated unrestricted cash and availability under the revolving credit facility) applicable to each quarter through June 30, 2021, and additional restrictions on priority debt and liens, and on the payment of dividends through December 31, 2021. We retained the option to revert to the previous covenant requirements (which would, among other things, remove the dividend restriction) if we determine additional flexibility is no longer needed. At September 30, 2020, we were in compliance with our revolving credit facility covenants.2022.

In July ~~2020,~~2021, PT-FI entered into a $1.0 billion, five-year, unsecured bank credit facility (consisting of a $667 million term loan and a $333 million revolving credit facility). Amounts may be drawn under the term loan within the first three years, and then the loan amortizes in four installments. The revolving credit facility is available for drawings until June 2026. The facility matures in July 2026 and amounts drawn bear interest at the London Interbank Offered Rate plus a margin of 1.875% or 2.125%, as defined by the agreement. As of September 30, 2021, $158 million ($146 million net of debt issuance costs) was drawn under the PT-FI Term Loan and no amounts were drawn under the revolving credit facility.

On October 21, 2021, we ~~completed the sale~~called for redemption on December 1, 2021, all of ~~$1.5 billion~~our outstanding $524 million principal amount of ~~senior notes, consisting of $650 million of 4.375%~~our 3.55% Senior Notes due ~~2028 and $850 million of 4.625% Senior Notes due 2030 and used $1.4 billion of the net proceeds to purchase~~2022. We have no other senior notes maturing in 2022, 2023 and 2024. The remaining net proceeds from this offering will be used for general corporate purposes, which may include repurchases or redemptions of outstanding senior notes.

Innote maturities until March 2020, we completed the sale of $1.3 billion of senior notes, consisting of $700 million of 4.125% Senior Notes due 2028 and $600 million of 4.25% Senior Notes due 2030 and used the net proceeds to purchase and redeem senior notes maturing in 2021 and 2022.

~~We may reduce outstanding debt obligations, including senior notes, through prepayments, redemptions or repurchases from time to time, subject to market conditions.~~2023.

Refer to Note 5 for further discussion of ~~debt. For~~the above items, and refer to Note 8 of our 2020 Form 10-K for additional information regarding our debt ~~arrangements, refer to Note 8 included in our 2019 Form 10-K.~~arrangements.

Operating Activities

We ~~generated~~reported consolidated cash provided by operating ~~cash flows~~activities of $5.4 billion (including $0.4 billion of working capital and other sources) for the first nine months of 2021 and $1.7 billion (including $0.3 billion from working capital and other sources) for the first nine months of ~~2020 and $1.3 billion (including $0.3 billion from working capital and other sources) for the first nine months of 2019.~~2020. Higher operating cash flows for the first nine months of ~~2020~~2021, compared with the first nine months of ~~2019,~~2020, primarily reflect ~~lower production~~higher copper prices and ~~delivery costs associated with lower mining rates,~~copper and ~~cost reductions associated with our April 2020 revised operating plans.~~gold sales volumes.

In third-quarter 2021, Cerro Verde paid the balance of its royalty dispute liabilities (payments totaled $356 million in third-quarter 2021 and $421 million for the first nine months of 2021). Refer to Note 8 for further discussion.

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Investing Activities

Capital Expenditures. Capital expenditures, including capitalized interest, totaled $1.3 billion for the first nine months of 2021, including approximately $0.9 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district and $0.1 billion for the Indonesia smelter project. Capital expenditures for the Indonesia smelter project are currently being funded by PT-FI's $1.0 billion unsecured bank credit facility and additional debt financing for this project is being evaluated. Refer to “Outlook” for further discussion of projected capital expenditures for the year 2021.

Capital expenditures, including capitalized interest, totaled $1.6 billion for the first nine months of 2020, including approximately $1.0 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district and the ~~now completed~~ Lone Star copper leach project. ~~Capital expenditures,~~

Proceeds from Sale of Freeport Cobalt. On September 1, 2021, we completed the sale of Freeport Cobalt to Jervois Global Limited (Jervois) for $208 million, including ~~capitalized interest, totaled $1.9 billion for the first nine months~~net cash proceeds of ~~2019, including approximately $1.1 billion for major projects. A large portion~~$150 million and shares of the capital expenditures relate to projects that are expected to add significant production and cash flow in future periods, enabling us to generate operating cash flows exceeding capital expenditures in future years.Jervois. Refer to ~~“Outlook”~~Note 1 for further ~~discussion of projected capital expenditures for the year 2020.~~discussion.

Proceeds from Sales of Other Assets. Proceeds from sales of other assets totaled $21 million for the first nine months of 2021 and $146 million for the first nine months of 2020. Proceeds from sales of other assets for the first nine months of 2020 are primarily ~~related to~~associated with the contingent consideration of $60 million ~~of contingent consideration associated with~~from the 2016 sale of ~~the Tenke Fungurume Mining assets in the Democratic Republic of Congo,~~TF Holdings Limited, the collection of $45 million related to the 2019 sale of the Timok exploration assets in Serbia, and $31 million associated with the ~~third-quarter 2020~~ sale of royalty assets.

~~Proceeds~~Acquisition of Minority Interest in PT Smelting.On April 30, 2021, PT-FI acquired 14.5 percent of the outstanding common stock of PT Smelting for $33 million, increasing its ownership interest from sales of assets totaled $102 million for the first nine months of 2019, primarily associated with sales of oil and gas properties, including $50 million in contingent consideration associated with the 2016 sale of onshore California oil and gas properties.25 percent to 39.5 percent.

Financing Activities

Debt Transactions. Net ~~proceeds from~~repayments of debt totaled $39 million for the first nine months of ~~2020~~2021, primarily associated with Cerro Verde’s election to prepay $200 million on its term loan at the end of September 2021, partly offset by borrowings of $158 million under the PT-FI credit facility.

Net proceeds from debt totaled $131 million for the first nine months of 2020, primarily reflecting the issuance of $2.8 billion of new senior notes in July 2020 and March 2020, partly offset by the use of proceeds to purchase and redeem senior notes maturing in 2021, 2022, 2023 and 2024.

Refer to Note 5 for further discussion.

Net repayments of debt for the first nine months of 2019 totaled $1.2 billion, consisting of the redemption of $1.0 billion aggregate principal amount of our 3.100% Senior Notes due 2020 and the repayment of $200 million under Cerro Verde’s credit facility.

Cash Dividends and Distributions Paid. We paid cash dividends on our common stock totaling $220 million for the first nine months of 2021 and $73 million for the first nine months of ~~2020 (associated with the $0.05~~2020.

On September 22, 2021, we declared a quarterly cash dividend of $0.075 per share on our common stock, ~~cash dividend declared in December 2019),~~which was paid on November 1, 2021, to shareholders of record as of October 15, 2021. Refer to “Cautionary Statement” and ~~$218~~the discussion above regarding our financial policy.

Cash dividends and distributions paid to noncontrolling interests at PT-FI and Cerro Verde totaled $187 million for the first nine months of ~~2019.~~

The Board does not expect to declare common stock dividends during 2020. With continued strong financial performance and successful execution of our operating plans, management expects to recommend to the Board the resumption of common stock dividends during 2021 and anticipates an ongoing ability to increase cash returns to shareholders in the future. The declaration and payment of future dividends is at the discretion of the Board and will be assessed on an ongoing basis, taking into account our financial results, cash requirements, future prospects, global economic conditions, and other factors deemed relevant by the Board. See Note 5 for further discussion of the suspension of our quarterly dividends and the current restriction on payment of dividends under our revolving credit facility.

2021. There were no cash dividends or distributions ~~paid~~ to noncontrolling interests ~~for~~paid during the first nine months of ~~2020 and $79 million for the first nine months of 2019.~~2020. Cash dividends and distributions to noncontrolling interests vary based on the operating results and cash requirements of our consolidated subsidiaries.

Contributions from Noncontrolling Interests. ~~During~~We received equity contributions totaling $135 million for the first nine months of ~~2020, we received equity contributions totaling~~2021 and $115 million for the first nine months of 2020 from PT Inalum for their share of capital spending on PT-FI underground mine development projects and ~~costs for the new~~development of increased smelter capacity in Indonesia.

Stock-based awards. Following an increase in our stock price during 2021, proceeds from exercised stock options totaled $189 million and payments for related employee taxes totaled $19 million for the first nine months of 2021. See Note 10 in our 2020 Form 10-K for a discussion of stock-based awards.

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CONTRACTUAL OBLIGATIONS

~~As discussed above, during~~In July 2021, PT-FI awarded a contract to Chiyoda for the ~~first nine-months~~construction of ~~2020, we completed the sale~~a new greenfield smelter in Gresik, Indonesia, with an estimated contract cost of $2.8 ~~billion of new 8-year and 10-year senior notes at a weighted-average interest rate of 4.36 percent. Refer~~billion. The smelter construction is expected to ~~Note 5 for further discussion of these transactions.~~be completed as soon as feasible in 2024, which is subject to, among other things, potential pandemic-related disruptions.

~~There~~Besides PT-FI’s $1.0 billion credit facility and the Chiyoda contract, there have been no other material changes in our contractual obligations since December 31, ~~2019. Refer to Part II, Items 7. and 7A. in our 2019 Form 10-K, for information regarding our contractual obligations.~~2020.

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CONTINGENCIES

Environmental and Asset Retirement Obligations

Our current and historical operating activities are subject to stringent laws and regulations governing the protection of the environment. We perform a comprehensive annual review of our environmental and asset retirement obligations and also review changes in facts and circumstances associated with these obligations at least quarterly.

There have been no material changes to our environmental and asset retirement obligations since December 31, ~~2019.~~2020. Refer to Note 8 for updates associated with our Newtown Creek environmental obligation. Updated cost assumptions, including increases and decreases to cost estimates, changes in the anticipated scope and timing of remediation activities, and settlement of environmental matters may result in additional revisions to certain of our environmental obligations. We are planning a detailed review in fourth-quarter 2021 of our asset retirement obligations in Indonesia, specifically around our historical overburden stockpiles related to previous open-pit mining operations. Potential adjustments could be significant. Refer to Note 12 in our ~~2019~~2020 Form 10-K, for further information regarding our environmental and asset retirement obligations.

On August 5, 2020, the co-conveners of the Global Tailings Review, which included the International Council on Mining and Metals (ICMM), an industry group of which we are a founding member, published the first Global Industry Standard on Tailings Management (the Standard). The Standard includes 77 requirements across six key areas including the design, construction, operation and monitoring of tailings facilities, management and governance, emergency response and long-term recovery, and public disclosure. As a member of ICMM, which has endorsed the Standard, we will move toward implementing it and will begin undertaking an extensive, multi-year analysis of our tailings facilities to ensure conformance with the Standard. We are assessing the costs of complying with the new standard.

Litigation and Other Contingencies

~~Other than as discussed in Note 8, there~~There have been no material changes to our contingencies associated with legal proceedings, environmental and other matters since December 31, ~~2019.~~2020. Refer to Note 12 and “Legal Proceedings” contained in Part I, Item 3. of our ~~2019~~2020 Form 10-K, as updated by Note 8, for further information regarding legal proceedings, environmental and other matters.

NEW ACCOUNTING ~~STANDARD~~STANDARDS

~~Refer~~There were no significant updates to previously reported accounting standards included in Note ~~10 for a summary~~1 of ~~a recently adopted accounting standard.~~our 2020 Form 10-K.

NET DEBT

Net debt, which we define as consolidated debt less consolidated cash and cash equivalents, is intended to provide investors with information related to the performance-based payout framework in our financial policy, which requires achievement of a net debt target in the range of $3 billion to $4 billion (excluding project debt for additional smelting capacity in Indonesia). This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. Our net debt follows, which may not be comparable to similarly titled measures reported by other companies (in millions):


	September 30, 2021			December 31, 2020
Current portion of debt	$	897		$	34
Long-term debt, less current portion	8,768			9,677
Consolidated debt	9,665		a	9,711
Less: consolidated cash and cash equivalents	7,672			3,657
Net debt	$	1,993		$	6,054

a.Includes $146 million, net of debt issuance costs, for the PT-FI Term Loan (refer to Note 5).

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PRODUCT REVENUES AND PRODUCTION COSTS

Unit net cash costs per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although our measures may not be comparable to similarly titled measures reported by other companies.

We present gross profit ~~(loss)~~ per pound of copper in the following tables using both a “by-product” method and a “co-product” method. We use the by-product method in our presentation of gross profit ~~(loss)~~ per pound of copper because (i) the majority of our revenues are copper revenues, (ii) we mine ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of our costs to revenues from the copper, gold, molybdenum and other metals we produce and (iv) it is the method used by our management and Board to monitor our mining operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change.

We show revenue adjustments for prior period open sales as a separate line item. Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period sales. Noncash and other costs, which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as stock-based compensation costs, long-lived asset impairments, idle facility costs, restructuring and/or unusual charges. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements.

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North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs


Three Months Ended September 30, 2020
Three Months Ended September 30, 2021													Three Months Ended September 30, 2021
(In millions)	(In millions)	By-Product			Co-Product Method								(In millions)	By-Product		Co-Product Method
		Method			Copper		Molybdenuma		Otherb		Total			Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	Revenues, excluding adjustments	$	1,138		$	1,138	$	63	$	30	$	1,231	Revenues, excluding adjustments	$	1,627	$	1,627	$	152	$	27	$	1,806
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	667			630		45		16		691		Site production and delivery, before net noncash and other costs shown below	795		724		82		20		826
By-product credits	By-product credits	(69)			—		—		—		—		By-product credits	(148)		—		—		—		—
Treatment charges	Treatment charges	33			32		—		1		33		Treatment charges	35		33		—		2		35
Net cash costs	Net cash costs	631			662		45		17		724		Net cash costs	682		757		82		22		861
DD&A	DD&A	92			85		4		3		92		DD&A	94		85		7		2		94
Metals inventory adjustments	Metals inventory adjustments	(4)			(4)		—		—		(4)		Metals inventory adjustments	13		13		—		—		13
Noncash and other costs, net	Noncash and other costs, net	37		c	35		—		2		37		Noncash and other costs, net	30		28		2		—		30
Total costs	Total costs	756			778		49		22		849		Total costs	819		883		91		24		998
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	1			1		—		—		1		Other revenue adjustments, primarily for pricing on prior period open sales	(7)		(7)		—		—		(7)
Gross profit	Gross profit	$	383		$	361	$	14	$	8	$	383	Gross profit	$	801	$	737	$	61	$	3	$	801

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	378			378								Copper sales (millions of recoverable pounds)	375		375
Molybdenum sales (millions of recoverable pounds)a	Molybdenum sales (millions of recoverable pounds)a						7						Molybdenum sales (millions of recoverable pounds)a					9

Gross profit per pound of copper/molybdenum:	Gross profit per pound of copper/molybdenum:												Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	Revenues, excluding adjustments	$	3.01		$	3.01	$	7.72					Revenues, excluding adjustments	$	4.34	$	4.34	$	16.69
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	1.76			1.67		5.52						Site production and delivery, before net noncash and other costs shown below	2.12		1.93		8.97
By-product credits	By-product credits	(0.18)			—		—						By-product credits	(0.39)		—		—
Treatment charges	Treatment charges	0.09			0.08		—						Treatment charges	0.09		0.09		—
Unit net cash costs	Unit net cash costs	1.67			1.75		5.52						Unit net cash costs	1.82		2.02		8.97
DD&A	DD&A	0.24			0.23		0.43						DD&A	0.25		0.23		0.73
Metals inventory adjustments	Metals inventory adjustments	(0.01)			(0.01)		—						Metals inventory adjustments	0.03		0.03		—
Noncash and other costs, net	Noncash and other costs, net	0.10		c	0.09		0.06						Noncash and other costs, net	0.08		0.08		0.23
Total unit costs	Total unit costs	2.00			2.06		6.01						Total unit costs	2.18		2.36		9.93
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	—			—		—						Other revenue adjustments, primarily for pricing on prior period open sales	(0.02)		(0.02)		—
Gross profit per pound	Gross profit per pound	$	1.01		$	0.95	$	1.71					Gross profit per pound	$	2.14	$	1.96	$	6.76

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported												Reconciliation to Amounts Reported

		Revenues			Production and Delivery		DD&A		Metals Inventory Adjustments					Revenues		Production and Delivery		DD&A		Metals Inventory Adjustments
Totals presented above	Totals presented above	$	1,231		$	691	$	92	$	(4)			Totals presented above	$	1,806	$	826	$	94	$	13
Treatment charges	Treatment charges	(4)			29		—		—				Treatment charges	(4)		31		—		—
Noncash and other costs, net	Noncash and other costs, net	—			37		—		—				Noncash and other costs, net	—		30		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	1			—		—		—				Other revenue adjustments, primarily for pricing on prior period open sales	(7)		—		—		—
Eliminations and other	Eliminations and other	9			11		(1)		—				Eliminations and other	16		17		—		—
North America copper mines	North America copper mines	1,237			768		91		(4)				North America copper mines	1,811		904		94		13
Other miningd		3,691			2,731		282		5
Other miningc													Other miningc	5,903		3,735		418		—

Corporate, other & eliminations	Corporate, other & eliminations	(1,077)			(1,034)		21		8				Corporate, other & eliminations	(1,631)		(1,630)		16		1
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	3,851		$	2,465	$	394	$	9			As reported in our consolidated financial statements	$	6,083	$	3,009	$	528	$	14

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Represents the combined total for our other segments, as presented in Note 9.

Table of Contents

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs



Three Months Ended September 30, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,138		$	1,138	$	63	$	30	$	1,231
Site production and delivery, before net noncash and other costs shown below	667			630		45		16		691
By-product credits	(69)			—		—		—		—
Treatment charges	33			32		—		1		33
Net cash costs	631			662		45		17		724
DD&A	92			85		4		3		92
Metals inventory adjustments	(4)			(4)		—		—		(4)
Noncash and other costs, net	37		c	35		—		2		37
Total costs	756			778		49		22		849
Other revenue adjustments, primarily for pricing on prior period open sales	1			1		—		—		1
Gross profit	$	383		$	361	$	14	$	8	$	383

Copper sales (millions of recoverable pounds)	378			378
Molybdenum sales (millions of recoverable pounds)a						7

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	3.01		$	3.01	$	7.72
Site production and delivery, before net noncash and other costs shown below	1.76			1.67		5.52
By-product credits	(0.18)			—		—
Treatment charges	0.09			0.08		—
Unit net cash costs	1.67			1.75		5.52
DD&A	0.24			0.23		0.43
Metals inventory adjustments	(0.01)			(0.01)		—
Noncash and other costs, net	0.10		c	0.09		0.06
Total unit costs	2.00			2.06		6.01
Other revenue adjustments, primarily for pricing on prior period open sales	—			—		—
Gross profit per pound	$	1.01		$	0.95	$	1.71

Reconciliation to Amounts Reported
	Revenues			Production and Delivery		DD&A		Metals Inventory Adjustments
Totals presented above	$	1,231		$	691	$	92	$	(4)
Treatment charges	(4)			29		—		—
Noncash and other costs, net	—			37		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	1			—		—		—
Eliminations and other	9			11		(1)		—
North America copper mines	1,237			768		91		(4)
Other miningd	3,691			2,731		282		5


Corporate, other & eliminations	(1,077)			(1,034)		21		8
As reported in our consolidated financial statements	$	3,851		$	2,465	$	394	$	9

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Includes charges totaling $10 million ($0.03 per pound of copper) primarily associated with ~~our~~the April 2020 revised operating plans (including employee separation costs) and the COVID-19 pandemic (including health and safety costs).

d.Represents the combined total for our other segments, as presented in Note 9.

Table of Contents

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs


Three Months Ended September 30, 2019
Nine months ended September 30, 2021												Nine months ended September 30, 2021
(In millions)	(In millions)	By-Product		Co-Product Method								(In millions)	By-Product		Co-Product Method
		Method		Copper		Molybdenuma		Otherb		Total			Method		Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	Revenues, excluding adjustments	$	1,044	$	1,044	$	93	$	20	$	1,157	Revenues, excluding adjustments	$	4,538	$	4,538	337		93		4,968
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	800		742		72		12		826		Site production and delivery, before net noncash and other costs shown below	2,254		2,093		194		60		2,347
By-product credits	By-product credits	(87)		—		—		—		—		By-product credits	(337)		—		—		—		—
Treatment charges	Treatment charges	44		43		—		1		44		Treatment charges	98		93		—		5		98
Net cash costs	Net cash costs	757		785		72		13		870		Net cash costs	2,015		2,186		194		65		2,445
DD&A	DD&A	90		83		6		1		90		DD&A	275		254		15		6		275
Metals inventory adjustments	Metals inventory adjustments	38		38		—		—		38		Metals inventory adjustments	13		13		—		—		13
Noncash and other costs, net	Noncash and other costs, net	31		27		3		1		31		Noncash and other costs, net	103		99		3		1		103
Total costs	Total costs	916		933		81		15		1,029		Total costs	2,406		2,552		212		72		2,836
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	(11)		(11)		—		—		(11)		Other revenue adjustments, primarily for pricing on prior period open sales	7		7		—		—		7
Gross profit	Gross profit	$	117	$	100	$	12	$	5	$	117	Gross profit	$	2,139	$	1,993	$	125	$	21	$	2,139

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	394		394								Copper sales (millions of recoverable pounds)	1,072		1,072
Molybdenum sales (millions of recoverable pounds)a	Molybdenum sales (millions of recoverable pounds)a					8						Molybdenum sales (millions of recoverable pounds)a					26

Gross profit per pound of copper/molybdenum:	Gross profit per pound of copper/molybdenum:											Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	Revenues, excluding adjustments	$	2.65	$	2.65	$	11.98					Revenues, excluding adjustments	$	4.24	$	4.24	$	13.09
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	2.03		1.88		9.28						Site production and delivery, before net noncash and other costs shown below	2.11		1.95		7.54
By-product credits	By-product credits	(0.22)		—		—						By-product credits	(0.32)		—		—
Treatment charges	Treatment charges	0.11		0.11		—						Treatment charges	0.09		0.09		—
Unit net cash costs	Unit net cash costs	1.92		1.99		9.28						Unit net cash costs	1.88		2.04		7.54
DD&A	DD&A	0.22		0.22		0.76						DD&A	0.26		0.24		0.59
Metals inventory adjustments	Metals inventory adjustments	0.10		0.10		—						Metals inventory adjustments	0.01		0.01		—
Noncash and other costs, net	Noncash and other costs, net	0.08		0.06		0.45						Noncash and other costs, net	0.10		0.09		0.12
Total unit costs	Total unit costs	2.32		2.37		10.49						Total unit costs	2.25		2.38		8.25
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	(0.03)		(0.03)		—						Other revenue adjustments, primarily for pricing on prior period open sales	0.01		0.01		—
Gross profit per pound	Gross profit per pound	$	0.30	$	0.25	$	1.49					Gross profit per pound	$	2.00	$	1.87	$	4.84

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported											Reconciliation to Amounts Reported
		Revenues		Production and Delivery		DD&A		Metals Inventory Adjustments											Metals
															Production				Inventory
													Revenues		and Delivery		DD&A		Adjustments
Totals presented above	Totals presented above	$	1,157	$	826	$	90	$	38			Totals presented above	$	4,968	$	2,347	$	275	$	13
Treatment charges	Treatment charges	(16)		28		—		—				Treatment charges	(21)		77		—		—
Noncash and other costs, net	Noncash and other costs, net	—		31		—		—				Noncash and other costs, net	—		103		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	(11)		—		—		—				Other revenue adjustments, primarily for pricing on prior period open sales	7		—		—		—
Eliminations and other	Eliminations and other	10		11		1		—				Eliminations and other	49		51		—		—
North America copper mines	North America copper mines	1,140		896		91		38				North America copper mines	5,003		2,578		275		13
Other miningc	Other miningc	2,813		2,544		211		3				Other miningc	16,068		10,425		1,108		1

Corporate, other & eliminations	Corporate, other & eliminations	(800)		(770)		20		—				Corporate, other & eliminations	(4,390)		(4,141)		47		1
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	3,153	$	2,670	$	322	$	41			As reported in our consolidated financial statements	$	16,681	$	8,862	$	1,430	$	15

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Represents the combined total for our other segments, as presented in Note 9.

Table of Contents

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30, 2020
(In millions) By-Product Co-Product Method
Method Copper
Molybdenuma
Otherb
Total
Revenues, excluding adjustments $ 2,939 c $ 2,939 $ 210 $ 73 $ 3,222
Site production and delivery, before net noncash
and other costs shown below 2,106 1,963 173 44 2,180
By-product credits (209) — — — —
Treatment charges 109 105 — 4 109
Net cash costs 2,006 2,068 173 48 2,289
DD&A 272 251 14 7 272
Metals inventory adjustments 52 49 — 3 52
Noncash and other costs, net 107 d 101 3 3 107
Total costs 2,437 2,469 190 61 2,720
Other revenue adjustments, primarily for pricing
on prior period open sales (22) (22) — — (22)
Gross profit $ 480 $ 448 $ 20 $ 12 $ 480
Copper sales (millions of recoverable pounds) 1,100 1,100
Molybdenum sales (millions of recoverable pounds)a
24
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments $ 2.67 c $ 2.67 $ 8.57
Site production and delivery, before net noncash
and other costs shown below 1.91 1.78 7.05
By-product credits (0.19) — —
Treatment charges 0.10 0.10 —
Unit net cash costs 1.82 1.88 7.05
DD&A 0.25 0.23 0.57
Metals inventory adjustments 0.05 0.04 —
Noncash and other costs, net 0.10 d 0.10 0.12
Total unit costs 2.22 2.25 7.74
Other revenue adjustments, primarily for pricing
on prior period open sales (0.01) (0.01) —
Gross profit per pound $ 0.44 $ 0.41 $ 0.83
Reconciliation to Amounts Reported
Metals
Production Inventory
Revenues and Delivery DD&A Adjustments
Totals presented above $ 3,222 $ 2,180 $ 272 $ 52
Treatment charges (14) 95 — —
Noncash and other costs, net — 107 — —
Other revenue adjustments, primarily for pricing
on prior period open sales (22) — — —
Eliminations and other 24 33 — —
North America copper mines 3,210 2,415 272 52
Other mininge
9,267 7,665 770 14
Corporate, other & eliminations (2,774) (2,676) 51 26
As reported in our consolidated financial statements $ 9,703 $ 7,404 $ 1,093 $ 92



Nine months ended September 30, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	2,939		$	2,939	210		73		3,222
Site production and delivery, before net noncash and other costs shown below	2,106			1,963		173		44		2,180
By-product credits	(209)			—		—		—		—
Treatment charges	109			105		—		4		109
Net cash costs	2,006			2,068		173		48		2,289
DD&A	272			251		14		7		272
Metals inventory adjustments	52			49		—		3		52
Noncash and other costs, net	107		c	101		3		3		107
Total costs	2,437			2,469		190		61		2,720
Other revenue adjustments, primarily for pricing on prior period open sales	(22)			(22)		—		—		(22)
Gross profit	$	480		$	448	$	20	$	12	$	480

Copper sales (millions of recoverable pounds)	1,100			1,100
Molybdenum sales (millions of recoverable pounds)a						24

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	$	2.67		$	2.67	$	8.57
Site production and delivery, before net noncash and other costs shown below	1.91			1.78		7.05
By-product credits	(0.19)			—		—
Treatment charges	0.10			0.10		—
Unit net cash costs	1.82			1.88		7.05
DD&A	0.25			0.23		0.57
Metals inventory adjustments	0.05			0.04		—
Noncash and other costs, net	0.10		c	0.10		0.12
Total unit costs	2.22			2.25		7.74
Other revenue adjustments, primarily for pricing on prior period open sales	(0.01)			(0.01)		—
Gross profit per pound	$	0.44		$	0.41	$	0.83

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	3,222		$	2,180	$	272	$	52
Treatment charges	(14)			95		—		—
Noncash and other costs, net	—			107		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(22)			—		—		—
Eliminations and other	24			33		—		—
North America copper mines	3,210			2,415		272		52
Other miningd	9,267			7,665		770		14


Corporate, other & eliminations	(2,774)			(2,676)		51		26
As reported in our consolidated financial statements	$	9,703		$	7,404	$	1,093	$	92

a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes gold and silver product revenues and production costs.

c.Includes reductions to revenues and average realized prices totaling $24 million ($0.02 per pound of copper) related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.

d.~~Includes~~ charges totaling $32 million ($0.03 per pound of copper) primarily associated with ~~our~~the April 2020 revised operating plans (including employee separation costs) and the COVID-19 pandemic (including health and safety costs).

e.d.Represents the combined total for our other segments, as presented in Note 9.

~~Table of Contents~~

~~North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs~~

Nine Months Ended September 30, 2019
(In millions) By-Product Co-Product Method
Method Copper
Molybdenuma
Otherb
Total
Revenues, excluding adjustments $ 2,964 $ 2,964 $ 284 $ 63 $ 3,311
Site production and delivery, before net noncash
and other costs shown below 2,216 2,030 226 39 2,295
By-product credits (268) — — — —
Treatment charges 120 116 — 4 120
Net cash costs 2,068 2,146 226 43 2,415
DD&A 260 237 18 5 260
Metals inventory adjustments 39 39 — — 39
Noncash and other costs, net 64 55 7 2 64
Total costs 2,431 2,477 251 50 2,778
Other revenue adjustments, primarily for pricing
on prior period open sales 4 4 — — 4
Gross profit $ 537 $ 491 $ 33 $ 13 $ 537
Copper sales (millions of recoverable pounds) 1,084 1,084
Molybdenum sales (millions of recoverable pounds)a
24
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments $ 2.74 $ 2.74 $ 12.03
Site production and delivery, before net noncash
and other costs shown below 2.05 1.87 9.56
By-product credits (0.25) — —
Treatment charges 0.11 0.11 —
Unit net cash costs 1.91 1.98 9.56
DD&A 0.24 0.22 0.75
Metals inventory adjustments 0.04 0.04 —
Noncash and other costs, net 0.05 0.05 0.29
Total unit costs 2.24 2.29 10.60
Other revenue adjustments, primarily for pricing
on prior period open sales — — —
Gross profit per pound $ 0.50 $ 0.45 $ 1.43
Reconciliation to Amounts Reported Metals
Production Inventory
Revenues and Delivery DD&A Adjustments
Totals presented above $ 3,311 $ 2,295 $ 260 $ 39
Treatment charges (48) 72 — —
Noncash and other costs, net — 64 — —
Other revenue adjustments, primarily for pricing
on prior period open sales 4 — — —
Eliminations and other 27 32 1 —
North America copper mines 3,294 2,463 261 39
Other miningc
9,501 8,294 701 3
Corporate, other & eliminations (2,304) (2,158) 59 58
As reported in our consolidated financial statements $ 10,491 $ 8,599 $ 1,021 $ 100

a.~~Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.~~

b.~~Includes gold and silver product revenues and production costs.~~

c.~~Represents the combined total for our other segments, as presented in Note 9.~~

5658

Table of Contents

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs


Three Months Ended September 30, 2020
Three Months Ended September 30, 2021											Three Months Ended September 30, 2021
(In millions)	(In millions)	By-Product			Co-Product Method						(In millions)	By-Product			Co-Product Method
		Method			Copper		Othera		Total			Method			Copper		Othera		Total
Revenues, excluding adjustments	Revenues, excluding adjustments	$	754		$	754	$	53	$	807	Revenues, excluding adjustments	$	1,153		$	1,153	$	120	$	1,273
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	459			432		38		470		Site production and delivery, before net noncash and other costs shown below	597		b	546		64		610
By-product credits	By-product credits	(42)			—		—		—		By-product credits	(107)			—		—		—
Treatment charges	Treatment charges	40			40		—		40		Treatment charges	38			38		—		38
Royalty on metals	Royalty on metals	1			1		—		1		Royalty on metals	3			2		1		3
Net cash costs	Net cash costs	458			473		38		511		Net cash costs	531			586		65		651
DD&A	DD&A	105			98		7		105		DD&A	112			101		11		112

Noncash and other costs, net	Noncash and other costs, net	9		b	8		1		9		Noncash and other costs, net	20			19		1		20
Total costs	Total costs	572			579		46		625		Total costs	663			706		77		783
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	41			41		—		41		Other revenue adjustments, primarily for pricing on prior period open sales	(8)			(8)		—		(8)
Gross profit	Gross profit	$	223		$	216	$	7	$	223	Gross profit	$	482		$	439	$	43	$	482

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	250			250						Copper sales (millions of recoverable pounds)	280			280

Gross profit per pound of copper:	Gross profit per pound of copper:										Gross profit per pound of copper:

Revenues, excluding adjustments	Revenues, excluding adjustments	$	3.02		$	3.02					Revenues, excluding adjustments	$	4.12		$	4.12
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	1.84			1.73						Site production and delivery, before net noncash and other costs shown below	2.14		b	1.96
By-product credits	By-product credits	(0.17)			—						By-product credits	(0.38)			—
Treatment charges	Treatment charges	0.15			0.15						Treatment charges	0.13			0.13
Royalty on metals	Royalty on metals	0.01			0.01						Royalty on metals	0.01			0.01
Unit net cash costs	Unit net cash costs	1.83			1.89						Unit net cash costs	1.90			2.10
DD&A	DD&A	0.42			0.39						DD&A	0.40			0.36

Noncash and other costs, net	Noncash and other costs, net	0.04		b	0.04						Noncash and other costs, net	0.07			0.06
Total unit costs	Total unit costs	2.29			2.32						Total unit costs	2.37			2.52
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	0.16			0.16						Other revenue adjustments, primarily for pricing on prior period open sales	(0.03)			(0.03)
Gross profit per pound	Gross profit per pound	$	0.89		$	0.86					Gross profit per pound	$	1.72		$	1.57

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported										Reconciliation to Amounts Reported
					Production										Production
		Revenues			and Delivery		DD&A					Revenues			and Delivery		DD&A
Totals presented above	Totals presented above	$	807		$	470	$	105			Totals presented above	$	1,273		$	610	$	112
Treatment charges	Treatment charges	(40)			—		—				Treatment charges	(38)			—		—
Royalty on metals	Royalty on metals	(1)			—		—				Royalty on metals	(3)			—		—
Noncash and other costs, net	Noncash and other costs, net	—			9		—				Noncash and other costs, net	—			20		—
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	41			—		—				Other revenue adjustments, primarily for pricing on prior period open sales	(8)			—		—
Eliminations and other	Eliminations and other	(1)			(2)		—				Eliminations and other	(1)			—		(1)
South America mining	South America mining	806			477		105				South America mining	1,223			630		111
Other miningc	Other miningc	4,122			3,022		268				Other miningc	6,491			4,009		401

Corporate, other & eliminations	Corporate, other & eliminations	(1,077)			(1,034)		21				Corporate, other & eliminations	(1,631)			(1,630)		16
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	3,851		$	2,465	$	394			As reported in our consolidated financial statements	$	6,083		$	3,009	$	528

a.Includes silver sales of 1.0 million ounces ($24.34 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b.Includes nonrecurring charges totaling $5 million ($0.02 per pound of copper) associated with labor related charges at Cerro Verde.

c.Represents the combined total for our other segments, as presented in Note 9.

Table of Contents

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs







Three Months Ended September 30, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	754		$	754	$	53	$	807
Site production and delivery, before net noncash and other costs shown below	459			432		38		470
By-product credits	(42)			—		—		—
Treatment charges	40			40		—		40
Royalty on metals	1			1		—		1
Net cash costs	458			473		38		511
DD&A	105			98		7		105

Noncash and other costs, net	9		b	8		1		9
Total costs	572			579		46		625
Other revenue adjustments, primarily for pricing on prior period open sales	41			41		—		41
Gross profit	$	223		$	216	$	7	$	223

Copper sales (millions of recoverable pounds)	250			250

Gross profit per pound of copper:

Revenues, excluding adjustments	$	3.02		$	3.02
Site production and delivery, before net noncash and other costs shown below	1.84			1.73
By-product credits	(0.17)			—
Treatment charges	0.15			0.15
Royalty on metals	0.01			0.01
Unit net cash costs	1.83			1.89
DD&A	0.42			0.39

Noncash and other costs, net	0.04		b	0.04
Total unit costs	2.29			2.32
Other revenue adjustments, primarily for pricing on prior period open sales	0.16			0.16
Gross profit per pound	$	0.89		$	0.86

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	807		$	470	$	105
Treatment charges	(40)			—		—
Royalty on metals	(1)			—		—
Noncash and other costs, net	—			9		—
Other revenue adjustments, primarily for pricing on prior period open sales	41			—		—
Eliminations and other	(1)			(2)		—
South America mining	806			477		105
Other miningc	4,122			3,022		268


Corporate, other & eliminations	(1,077)			(1,034)		21
As reported in our consolidated financial statements	$	3,851		$	2,465	$	394

a.Includes silver sales of 0.9 million ounces ($24.84 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b.Includes charges totaling $5 million ($0.02 per pound of copper), primarily associated with the COVID-19 pandemic (including health and safety costs).

c.Represents the combined total for our other segments, as presented in Note 9.

Table of Contents

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended September 30, 2019
(In millions) By-Product Co-Product Method
Method Copper
Othera
Total
Revenues, excluding adjustments $ 681 $ 681 $ 80 $ 761
Site production and delivery, before net noncash
and other costs shown below 494 446 61 507
By-product credits (67) — — —
Treatment charges 45 45 — 45
Royalty on metals 1 1 — 1
Net cash costs 473 492 61 553
DD&A 109 98 11 109
Metals inventory adjustments 2 2 — 2
Noncash and other costs, net 22 20 2 22
Total costs 606 612 74 686
Other revenue adjustments, primarily for pricing
on prior period open sales (29) (29) — (29)
Gross profit $ 46 $ 40 $ 6 $ 46
Copper sales (millions of recoverable pounds) 261 261
Gross profit per pound of copper:
Revenues, excluding adjustments $ 2.61 $ 2.61
Site production and delivery, before net noncash
and other costs shown below 1.89 1.71
By-product credits (0.26) —
Treatment charges 0.17 0.17
Royalty on metals 0.01 —
Unit net cash costs 1.81 1.88
DD&A 0.42 0.38
Metals inventory adjustments 0.01 0.01
Noncash and other costs, net 0.08 0.08
Total unit costs 2.32 2.35
Other revenue adjustments, primarily for pricing
on prior period open sales (0.11) (0.11)
Gross profit per pound $ 0.18 $ 0.15
Reconciliation to Amounts Reported Metals
Production Inventory
Revenues and Delivery DD&A Adjustments
Totals presented above $ 761 $ 507 $ 109 $ 2
Treatment charges (45) — — —
Royalty on metals (1) — — —
Noncash and other costs, net — 22 — —
Other revenue adjustments, primarily for pricing
on prior period open sales (29) — — —
Eliminations and other — (1) — —
South America mining 686 528 109 2
Other miningb
3,267 2,912 193 39
Corporate, other & eliminations (800) (770) 20 —
As reported in our consolidated financial statements $ 3,153 $ 2,670 $ 322 $ 41



Nine months ended September 30, 2021
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	3,238		$	3,238	$	267	$	3,505
Site production and delivery, before net noncash and other costs shown below	1,690		b	1,568		155		1,723
By-product credits	(234)			—		—		—
Treatment charges	101			101		—		101
Royalty on metals	8			7		1		8
Net cash costs	1,565			1,676		156		1,832
DD&A	306			282		24		306

Noncash and other costs, net	49			45		4		49
Total costs	1,920			2,003		184		2,187
Other revenue adjustments, primarily for pricing on prior period open sales	98			98		—		98
Gross profit	$	1,416		$	1,333	$	83	$	1,416

Copper sales (millions of recoverable pounds)	769			769

Gross profit per pound of copper:

Revenues, excluding adjustments	$	4.21		$	4.21
Site production and delivery, before net noncash and other costs shown below	2.20		b	2.04
By-product credits	(0.31)			—
Treatment charges	0.13			0.13
Royalty on metals	0.01			0.01
Unit net cash costs	2.03			2.18
DD&A	0.40			0.36

Noncash and other costs, net	0.07			0.06
Total unit costs	2.50			2.60
Other revenue adjustments, primarily for pricing on prior period open sales	0.13			0.13
Gross profit per pound	$	1.84		$	1.74

Reconciliation to Amounts Reported

				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	3,505		$	1,723	$	306
Treatment charges	(101)			—		—
Royalty on metals	(8)			—		—
Noncash and other costs, net	—			49		—
Other revenue adjustments, primarily for pricing on prior period open sales	98			—		—
Eliminations and other	(1)			(3)		—
South America mining	3,493			1,769		306
Other miningc	17,578			11,234		1,077


Corporate, other & eliminations	(4,390)			(4,141)		47
As reported in our consolidated financial statements	$	16,681		$	8,862	$	1,430

a.Includes silver sales of ~~0.9~~2.7 million ounces ($~~16.78~~25.81 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to ~~our~~FCX's molybdenum sales company at market-based pricing.

b.Includes nonrecurring charges totaling $74 million ($0.10 per pound of copper) associated with labor related charges at Cerro Verde for agreements reached with approximately 65 percent of its hourly employees.

c.Represents the combined total for our other segments, as presented in Note 9.

5861

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South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Nine Months Ended September 30, 2020
(In millions) By-Product Co-Product Method
Method Copper
Othera
Total
Revenues, excluding adjustments $ 1,994 $ 1,994 $ 139 $ 2,133
Site production and delivery, before net noncash
and other costs shown below 1,313 1,231 111 1,342
By-product credits (110) — — —
Treatment charges 111 111 — 111
Royalty on metals 4 4 — 4
Net cash costs 1,318 1,346 111 1,457
DD&A 316 294 22 316
Metals inventory adjustments 3 3 — 3
Noncash and other costs, net 109 b 103 6 109
Total costs 1,746 1,746 139 1,885
Other revenue adjustments, primarily for pricing
on prior period open sales (70) (70) — (70)
Gross profit $ 178 $ 178 $ — $ 178
Copper sales (millions of recoverable pounds) 716 716
Gross profit per pound of copper:
Revenues, excluding adjustments $ 2.79 $ 2.79
Site production and delivery, before net noncash
and other costs shown below 1.83 1.72
By-product credits (0.15) —
Treatment charges 0.15 0.15
Royalty on metals 0.01 0.01
Unit net cash costs 1.84 1.88
DD&A 0.44 0.41
Metals inventory adjustments — —
Noncash and other costs, net 0.16 b 0.15
Total unit costs 2.44 2.44
Other revenue adjustments, primarily for pricing
on prior period open sales (0.10) (0.10)
Gross profit per pound $ 0.25 $ 0.25
Reconciliation to Amounts Reported Metals
Production Inventory
Revenues and Delivery DD&A Adjustments
Totals presented above $ 2,133 $ 1,342 $ 316 $ 3
Treatment charges (111) — — —
Royalty on metals (4) — — —
Noncash and other costs, net — 109 — —
Other revenue adjustments, primarily for pricing
on prior period open sales (70) — — —
Eliminations and other (1) (2) (1) —
South America mining 1,947 1,449 315 3
Other miningc
10,530 8,631 727 63
Corporate, other & eliminations (2,774) (2,676) 51 26
As reported in our consolidated financial statements $ 9,703 $ 7,404 $ 1,093 $ 92



Nine months ended September 30, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Othera		Total
Revenues, excluding adjustments	$	1,994		$	1,994	$	139	$	2,133
Site production and delivery, before net noncash and other costs shown below	1,313			1,231		111		1,342
By-product credits	(110)			—		—		—
Treatment charges	111			111		—		111
Royalty on metals	4			4		—		4
Net cash costs	1,318			1,346		111		1,457
DD&A	316			294		22		316
Metals inventory adjustments	3			3		—		3
Noncash and other costs, net	109		b	103		6		109
Total costs	1,746			1,746		139		1,885
Other revenue adjustments, primarily for pricing on prior period open sales	(70)			(70)		—		(70)
Gross profit	$	178		$	178	$	—	$	178

Copper sales (millions of recoverable pounds)	716			716

Gross profit per pound of copper:

Revenues, excluding adjustments	$	2.79		$	2.79
Site production and delivery, before net noncash and other costs shown below	1.83			1.72
By-product credits	(0.15)			—
Treatment charges	0.15			0.15
Royalty on metals	0.01			0.01
Unit net cash costs	1.84			1.88
DD&A	0.44			0.41
Metals inventory adjustments	—			—
Noncash and other costs, net	0.16		b	0.15
Total unit costs	2.44			2.44
Other revenue adjustments, primarily for pricing on prior period open sales	(0.10)			(0.10)
Gross profit per pound	$	0.25		$	0.25

Reconciliation to Amounts Reported
								Metals
				Production				Inventory
	Revenues			and Delivery		DD&A		Adjustments
Totals presented above	$	2,133		$	1,342	$	316	$	3
Treatment charges	(111)			—		—		—
Royalty on metals	(4)			—		—		—
Noncash and other costs, net	—			109		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	(70)			—		—		—
Eliminations and other	(1)			(2)		(1)		—
South America mining	1,947			1,449		315		3
Other miningc	10,530			8,631		727		63


Corporate, other & eliminations	(2,774)			(2,676)		51		26
As reported in our consolidated financial statements	$	9,703		$	7,404	$	1,093	$	92

a.Includes silver sales of 2.5 million ounces ($19.58 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to ~~our~~FCX's molybdenum sales company at market-based pricing.

b.Includes charges totaling $91 million ($0.13 per pound of copper) primarily associated with idle facility (Cerro Verde) and contract cancellation costs related to the COVID-19 pandemic and employee separation costs associated with ~~our~~the April 2020 revised operating plans.

c.Represents the combined total for our other segments, as presented in Note 9.

~~Table of Contents~~

~~South America Mining Product Revenues, Production Costs and Unit Net Cash Costs~~

Nine Months Ended September 30, 2019
(In millions) By-Product Co-Product Method
Method Copper
Othera
Total
Revenues, excluding adjustments $ 2,236 $ 2,236 $ 284 $ 2,520
Site production and delivery, before net noncash
and other costs shown below 1,546 1,395 189 1,584
By-product credits (246) — — —
Treatment charges 153 153 — 153
Royalty on metals 5 4 1 5
Net cash costs 1,458 1,552 190 1,742
DD&A 342 305 37 342
Metals inventory adjustments 2 2 — 2
Noncash and other costs, net 68 65 3 68
Total costs 1,870 1,924 230 2,154
Other revenue adjustments, primarily for pricing
on prior period open sales 37 37 — 37
Gross profit $ 403 $ 349 $ 54 $ 403
Copper sales (millions of recoverable pounds) 838 838
Gross profit per pound of copper:
Revenues, excluding adjustments $ 2.67 $ 2.67
Site production and delivery, before net noncash
and other costs shown below 1.84 1.66
By-product credits (0.29) —
Treatment charges 0.18 0.18
Royalty on metals 0.01 0.01
Unit net cash costs 1.74 1.85
DD&A 0.41 0.36
Metals inventory adjustments — —
Noncash and other costs, net 0.08 0.08
Total unit costs 2.23 2.29
Other revenue adjustments, primarily for pricing
on prior period open sales 0.04 0.04
Gross profit per pound $ 0.48 $ 0.42
Reconciliation to Amounts Reported Metals
Production Inventory
Revenues and Delivery DD&A Adjustments
Totals presented above $ 2,520 $ 1,584 $ 342 $ 2
Treatment charges (153) — — —
Royalty on metals (5) — — —
Noncash and other costs, net — 68 — —
Other revenue adjustments, primarily for pricing
on prior period open sales 37 — — —
Eliminations and other (1) (4) — —
South America mining 2,398 1,648 342 2
Other miningb
10,397 9,109 620 40
Corporate, other & eliminations (2,304) (2,158) 59 58
As reported in our consolidated financial statements $ 10,491 $ 8,599 $ 1,021 $ 100

a.Includes silver sales of 3.4 million ounces ($15.90 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b.~~Represents the combined total for our other segments, as presented in Note 9.~~

6062

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Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs


Three Months Ended September 30, 2020
Three Months Ended September 30, 2021													Three Months Ended September 30, 2021
(In millions)	(In millions)	By-Product			Co-Product Method								(In millions)	By-Product		Co-Product Method
		Method			Copper		Gold		Silvera		Total			Method		Copper		Gold		Silvera		Total
Revenues, excluding adjustments	Revenues, excluding adjustments	$	659		$	659	$	437	$	24	$	1,120	Revenues, excluding adjustments	$	1,555	$	1,555	$	701	$	37	$	2,293
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	376			221		147		8		376		Site production and delivery, before net noncash and other costs shown below	553		375		169		9		553
Gold and silver credits	Gold and silver credits	(474)			—		—		—		—		Gold and silver credits	(744)		—		—		—		—
Treatment charges	Treatment charges	58			34		23		1		58		Treatment charges	90		61		27		2		90
Export duties	Export duties	24			14		9		1		24		Export duties	71		48		22		1		71
Royalty on metals	Royalty on metals	45			26		18		1		45		Royalty on metals	94		67		25		2		94
Net cash costs	Net cash costs	29			295		197		11		503		Net cash costs	64		551		243		14		808
DD&A	DD&A	150			88		59		3		150		DD&A	280		190		86		4		280

Noncash and other costs, net		24		b	14		9		1		24

Total costs	Total costs	203			397		265		15		677		Total costs	344		741		329		18		1,088
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	28			28		11		2		41		Other revenue adjustments, primarily for pricing on prior period open sales	(2)		(2)		6		—		4
PT Smelting intercompany loss	PT Smelting intercompany loss	(17)			(10)		(7)		—		(17)		PT Smelting intercompany loss	(16)		(11)		(5)		—		(16)
Gross profit	Gross profit	$	467		$	280	$	176	$	11	$	467	Gross profit	$	1,193	$	801	$	373	$	19	$	1,193

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	219			219								Copper sales (millions of recoverable pounds)	378		378
Gold sales (thousands of recoverable ounces)	Gold sales (thousands of recoverable ounces)						230						Gold sales (thousands of recoverable ounces)					399

Gross profit per pound of copper/per ounce of gold:	Gross profit per pound of copper/per ounce of gold:												Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	Revenues, excluding adjustments	$	3.00		$	3.00	$	1,902					Revenues, excluding adjustments	$	4.11	$	4.11	$	1,757
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	1.71			1.01		639						Site production and delivery, before net noncash and other costs shown below	1.46		0.99		424
Gold and silver credits	Gold and silver credits	(2.16)			—		—						Gold and silver credits	(1.97)		—		—
Treatment charges	Treatment charges	0.26			0.16		98						Treatment charges	0.24		0.16		69
Export duties	Export duties	0.11			0.06		40						Export duties	0.19		0.13		54
Royalty on metals	Royalty on metals	0.21			0.12		79						Royalty on metals	0.25		0.18		63
Unit net cash costs	Unit net cash costs	0.13			1.35		856						Unit net cash costs	0.17		1.46		610
DD&A	DD&A	0.68			0.40		256						DD&A	0.74		0.50		215

Noncash and other costs, net		0.11		b	0.06		40

Total unit costs	Total unit costs	0.92			1.81		1,152						Total unit costs	0.91		1.96		825
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	0.13			0.13		49						Other revenue adjustments, primarily for pricing on prior period open sales	—		—		16
PT Smelting intercompany loss	PT Smelting intercompany loss	(0.08)			(0.05)		(31)						PT Smelting intercompany loss	(0.04)		(0.03)		(12)
Gross profit per pound/ounce	Gross profit per pound/ounce	$	2.13		$	1.27	$	768					Gross profit per pound/ounce	$	3.16	$	2.12	$	936

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported												Reconciliation to Amounts Reported
					Production											Production
		Revenues			and Delivery		DD&A							Revenues		and Delivery		DD&A
Totals presented above	Totals presented above	$	1,120		$	376	$	150					Totals presented above	$	2,293	$	553	$	280
Treatment charges	Treatment charges	(58)			—		—						Treatment charges	(90)		—		—
Export duties	Export duties	(24)			—		—						Export duties	(71)		—		—
Royalty on metals	Royalty on metals	(53)			(8)		—						Royalty on metals	(94)		—		—
Noncash and other costs, net		—			24		—

Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	41			—		—						Other revenue adjustments, primarily for pricing on prior period open sales	4		—		—
PT Smelting intercompany loss	PT Smelting intercompany loss	—			17		—						PT Smelting intercompany loss	—		16		—
Indonesia mining	Indonesia mining	1,026			409		150						Indonesia mining	2,042		569		280
Other miningc		3,902			3,090		223
Other miningb													Other miningb	5,672		4,070		232

Corporate, other & eliminations	Corporate, other & eliminations	(1,077)			(1,034)		21						Corporate, other & eliminations	(1,631)		(1,630)		16
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	3,851		$	2,465	$	394					As reported in our consolidated financial statements	$	6,083	$	3,009	$	528

a.Includes silver sales of 1.7 million ounces ($22.22 per ounce average realized price).

b.Represents the combined total for our other segments, as presented in Note 9.

Table of Contents

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs






Three Months Ended September 30, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	659		$	659	$	437	$	24	$	1,120
Site production and delivery, before net noncash and other costs shown below	376			221		147		8		376
Gold and silver credits	(474)			—		—		—		—
Treatment charges	58			34		23		1		58
Export duties	24			14		9		1		24
Royalty on metals	45			26		18		1		45
Net cash costs	29			295		197		11		503
DD&A	150			88		59		3		150
Noncash and other costs, net	24		b	14		9		1		24
Total costs	203			397		265		15		677
Other revenue adjustments, primarily for pricing on prior period open sales	28			28		11		2		41
PT Smelting intercompany loss	(17)			(10)		(7)		—		(17)
Gross profit	$	467		$	280	$	176	$	11	$	467

Copper sales (millions of recoverable pounds)	219			219
Gold sales (thousands of recoverable ounces)						230

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	$	3.00		$	3.00	$	1,902
Site production and delivery, before net noncash and other costs shown below	1.71			1.01		639
Gold and silver credits	(2.16)			—		—
Treatment charges	0.26			0.16		98
Export duties	0.11			0.06		40
Royalty on metals	0.21			0.12		79
Unit net cash costs	0.13			1.35		856
DD&A	0.68			0.40		256
Noncash and other costs, net	0.11		b	0.06		40
Total unit costs	0.92			1.81		1,152
Other revenue adjustments, primarily for pricing on prior period open sales	0.13			0.13		49
PT Smelting intercompany loss	(0.08)			(0.05)		(31)
Gross profit per pound/ounce	$	2.13		$	1.27	$	768

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	1,120		$	376	$	150
Treatment charges	(58)			—		—
Export duties	(24)			—		—
Royalty on metals	(53)			(8)		—
Noncash and other costs, net	—			24		—
Other revenue adjustments, primarily for pricing on prior period open sales	41			—		—
PT Smelting intercompany loss	—			17		—
Indonesia mining	1,026			409		150
Other miningc	3,902			3,090		223


Corporate, other & eliminations	(1,077)			(1,034)		21
As reported in our consolidated financial statements	$	3,851		$	2,465	$	394

a.Includes silver sales of 1.0 million ounces ($24.29 per ounce average realized price).

b.Includes COVID-19 related costs (including one-time incremental employee benefits and health and safety costs) totaling $10 million($ ($0.05 per pound of copper).

c.~~Represents the combined total for our other segments, as presented in Note 9.~~

~~Table of Contents~~

~~Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs~~

Three Months Ended September 30, 2019
(In millions) By-Product Co-Product Method
Method Copper Gold
Silvera
Total
Revenues, excluding adjustments $ 360 $ 360 $ 356 $ 8 $ 724
Site production and delivery, before net noncash
and other costs shown below 338 168 166 4 338
Gold and silver credits (367) — — — —
Treatment charges 35 17 17 1 35
Export duties 8 4 4 — 8
Royalty on metals 23 12 11 — 23
Net cash costs 37 201 198 5 404
DD&A 77 38 38 1 77
Noncash and other costs, net 192 b 95 95 2 192
Total costs 306 334 331 8 673
Other revenue adjustments, primarily for pricing
on prior period open sales (8) (8) 2 1 (5)
PT Smelting intercompany loss (34) (17) (17) — (34)
Gross profit $ 12 $ 1 $ 10 $ 1 $ 12
Copper sales (millions of recoverable pounds) 139 139
Gold sales (thousands of recoverable ounces) 239
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments $ 2.59 $ 2.59 $ 1,487
Site production and delivery, before net noncash
and other costs shown below 2.44 1.21 695
Gold and silver credits (2.64) — —
Treatment charges 0.25 0.13 72
Export duties 0.05 0.03 15
Royalty on metals 0.17 0.08 46
Unit net cash costs 0.27 1.45 828
DD&A 0.55 0.27 158
Noncash and other costs, net 1.39 b 0.69 395
Total unit costs 2.21 2.41 1,381
Other revenue adjustments, primarily for pricing
on prior period open sales (0.05) (0.05) 8
PT Smelting intercompany loss (0.24) (0.12) (69)
Gross profit per pound/ounce $ 0.09 $ 0.01 $ 45
Reconciliation to Amounts Reported
Production
Revenues and Delivery DD&A
Totals presented above $ 724 $ 338 $ 77
Treatment charges (35) — —
Export duties (8) — —
Royalty on metals (23) — —
Noncash and other costs, net (165) 27 —
Other revenue adjustments, primarily for pricing
on prior period open sales (5) — —
PT Smelting intercompany loss — 34 —
Indonesia mining 488 399 77
Other miningc
3,465 3,041 225
Corporate, other & eliminations (800) (770) 20
As reported in our consolidated financial statements $ 3,153 $ 2,670 $ 322

a.~~Includes silver sales of 0.5 million ounces ($17.30 per ounce average realized price).~~

b.~~Includes charges totaling $166 million ($1.19 per pound of copper) primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties.~~

c.Represents the combined total for our other segments, as presented in Note 9.

6264

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Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs


Nine Months Ended September 30, 2020
Nine months ended September 30, 2021													Nine months ended September 30, 2021
(In millions)	(In millions)	By-Product			Co-Product Method								(In millions)	By-Product			Co-Product Method
		Method			Copper		Gold		Silvera		Total			Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	Revenues, excluding adjustments	$	1,447		$	1,447	$	994	$	48	$	2,489	Revenues, excluding adjustments	$	3,989		$	3,989	$	1,703	$	104	$	5,796
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	1,062			617		424		21		1,062		Site production and delivery, before net noncash and other costs shown below	1,412			972		415		25		1,412
Gold and silver credits	Gold and silver credits	(1,046)			—		—		—		—		Gold and silver credits	(1,803)			—		—		—		—
Treatment charges	Treatment charges	143			83		57		3		143		Treatment charges	229			158		67		4		229
Export duties	Export duties	43			25		17		1		43		Export duties	145			99		43		3		145
Royalty on metals	Royalty on metals	92			53		38		1		92		Royalty on metals	234			167		63		4		234
Net cash costs	Net cash costs	294			778		536		26		1,340		Net cash costs	217			1,396		588		36		2,020
DD&A	DD&A	375			218		150		7		375		DD&A	726			499		213		14		726

Noncash and other costs, net	Noncash and other costs, net	56		b	33		22		1		56		Noncash and other costs, net	3		b	2		1		—		3
Total costs	Total costs	725			1,029		708		34		1,771		Total costs	946			1,897		802		50		2,749
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	(20)			(20)		4		—		(16)		Other revenue adjustments, primarily for pricing on prior period open sales	71			71		(4)		—		67
PT Smelting intercompany loss	PT Smelting intercompany loss	(18)			(11)		(7)		—		(18)		PT Smelting intercompany loss	(106)			(73)		(31)		(2)		(106)
Gross profit	Gross profit	$	684		$	387	$	283	$	14	$	684	Gross profit	$	3,008		$	2,090	$	866	$	52	$	3,008

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)	518			518								Copper sales (millions of recoverable pounds)	946			946
Gold sales (thousands of recoverable ounces)	Gold sales (thousands of recoverable ounces)						549						Gold sales (thousands of recoverable ounces)						957

Gross profit per pound of copper/per ounce of gold:	Gross profit per pound of copper/per ounce of gold:												Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	Revenues, excluding adjustments	$	2.79		$	2.79	$	1,810					Revenues, excluding adjustments	$	4.21		$	4.21	$	1,780
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	2.05			1.19		773						Site production and delivery, before net noncash and other costs shown below	1.49			1.03		434
Gold and silver credits	Gold and silver credits	(2.02)			—		—						Gold and silver credits	(1.91)			—		—
Treatment charges	Treatment charges	0.28			0.16		104						Treatment charges	0.24			0.17		70
Export duties	Export duties	0.08			0.05		31						Export duties	0.15			0.10		45
Royalty on metals	Royalty on metals	0.18			0.10		68						Royalty on metals	0.26			0.18		66
Unit net cash costs	Unit net cash costs	0.57			1.50		976						Unit net cash costs	0.23			1.48		615
DD&A	DD&A	0.72			0.42		273						DD&A	0.76			0.52		222

Noncash and other costs, net	Noncash and other costs, net	0.11		b	0.07		41						Noncash and other costs, net	0.01		b	0.01		1
Total unit costs	Total unit costs	1.40			1.99		1,290						Total unit costs	1.00			2.01		838
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	(0.03)			(0.03)		8						Other revenue adjustments, primarily for pricing on prior period open sales	0.08			0.08		(5)
PT Smelting intercompany loss	PT Smelting intercompany loss	(0.04)			(0.02)		(13)						PT Smelting intercompany loss	(0.11)			(0.08)		(33)
Gross profit per pound/ounce	Gross profit per pound/ounce	$	1.32		$	0.75	$	515					Gross profit per pound/ounce	$	3.18		$	2.20	$	904

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported												Reconciliation to Amounts Reported
					Production												Production
		Revenues			and Delivery		DD&A							Revenues			and Delivery		DD&A
Totals presented above	Totals presented above	$	2,489		$	1,062	$	375					Totals presented above	$	5,796		$	1,412	$	726
Treatment charges	Treatment charges	(143)			—		—						Treatment charges	(229)			—		—
Export duties	Export duties	(43)			—		—						Export duties	(145)			—		—
Royalty on metals	Royalty on metals	(98)			(6)		—						Royalty on metals	(234)			—		—
Noncash and other costs, net	Noncash and other costs, net	—			56		—						Noncash and other costs, net	31			34		—
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales	(16)			—		—						Other revenue adjustments, primarily for pricing on prior period open sales	67			—		—
PT Smelting intercompany loss	PT Smelting intercompany loss	—			18		—						PT Smelting intercompany loss	—			106		—
Indonesia mining	Indonesia mining	2,189			1,130		375						Indonesia mining	5,286			1,552		726
Other miningc	Other miningc	10,288			8,950		667						Other miningc	15,785			11,451		657

Corporate, other & eliminations	Corporate, other & eliminations	(2,774)			(2,676)		51						Corporate, other & eliminations	(4,390)			(4,141)		47
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	9,703		$	7,404	$	1,093					As reported in our consolidated financial statements	$	16,681		$	8,862	$	1,430

a.Includes silver sales of 4.3 million ounces ($24.50 per ounce average realized price).

b.Includes credits of $31 million ($0.03 per pound of copper) associated with adjustments to prior year treatment and refining charges and charges of $16 million ($0.02 per pound of copper) associated with a potential settlement of an administrative fine levied by the Indonesia government.

c.Represents the combined total for our other segments, as presented in Note 9.

Table of Contents

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs



Nine months ended September 30, 2020
(In millions)	By-Product			Co-Product Method
	Method			Copper		Gold		Silvera		Total
Revenues, excluding adjustments	$	1,447		$	1,447	$	994	$	48	$	2,489
Site production and delivery, before net noncash and other costs shown below	1,062			617		424		21		1,062
Gold and silver credits	(1,046)			—		—		—		—
Treatment charges	143			83		57		3		143
Export duties	43			25		17		1		43
Royalty on metals	92			53		38		1		92
Net cash costs	294			778		536		26		1,340
DD&A	375			218		150		7		375

Noncash and other costs, net	56		b	33		22		1		56
Total costs	725			1,029		708		34		1,771
Other revenue adjustments, primarily for pricing on prior period open sales	(20)			(20)		4		—		(16)
PT Smelting intercompany loss	(18)			(11)		(7)		—		(18)
Gross profit	$	684		$	387	$	283	$	14	$	684

Copper sales (millions of recoverable pounds)	518			518
Gold sales (thousands of recoverable ounces)						549

Gross profit per pound of copper/per ounce of gold:

Revenues, excluding adjustments	$	2.79		$	2.79	$	1,810
Site production and delivery, before net noncash and other costs shown below	2.05			1.19		773
Gold and silver credits	(2.02)			—		—
Treatment charges	0.28			0.16		104
Export duties	0.08			0.05		31
Royalty on metals	0.18			0.10		68
Unit net cash costs	0.57			1.50		976
DD&A	0.72			0.42		273

Noncash and other costs, net	0.11		b	0.07		41
Total unit costs	1.40			1.99		1,290
Other revenue adjustments, primarily for pricing on prior period open sales	(0.03)			(0.03)		8
PT Smelting intercompany loss	(0.04)			(0.02)		(13)
Gross profit per pound/ounce	$	1.32		$	0.75	$	515

Reconciliation to Amounts Reported
				Production
	Revenues			and Delivery		DD&A
Totals presented above	$	2,489		$	1,062	$	375
Treatment charges	(143)			—		—
Export duties	(43)			—		—
Royalty on metals	(98)			(6)		—
Noncash and other costs, net	—			56		—
Other revenue adjustments, primarily for pricing on prior period open sales	(16)			—		—
PT Smelting intercompany loss	—			18		—
Indonesia mining	2,189			1,130		375
Other miningc	10,288			8,950		667


Corporate, other & eliminations	(2,774)			(2,676)		51
As reported in our consolidated financial statements	$	9,703		$	7,404	$	1,093

a.Includes silver sales of 2.3 million ounces ($20.73 per ounce average realized price).

b.Includes COVID-19 related costs (including one-time incremental employee benefits and health and safety costs) of $14 million ($0.03 per pound of copper).

c.Represents the combined total for our segments, as presented in Note 9.

~~Table of Contents~~

~~Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs~~

Nine Months Ended September 30, 2019
(In millions) By-Product Co-Product Method
Method Copper Gold
Silvera
Total
Revenues, excluding adjustments $ 1,252 $ 1,252 $ 910 $ 26 $ 2,188
Site production and delivery, before net noncash
and other costs shown below 1,393 797 580 16 1,393
Gold and silver credits (938) — — — —
Treatment charges 125 72 52 1 125
Export duties 35 20 14 1 35
Royalty on metals 68 40 27 1 68
Net cash costs 683 929 673 19 1,621
DD&A 281 161 117 3 281
Noncash and other costs, net 240 b 137 100 3 240
Total costs 1,204 1,227 890 25 2,142
Other revenue adjustments, primarily for pricing
on prior period open sales 18 18 2 — 20
PT Smelting intercompany loss (23) (13) (9) (1) (23)
Gross profit $ 43 $ 30 $ 13 $ — $ 43
Copper sales (millions of recoverable pounds) 464 464
Gold sales (thousands of recoverable ounces) 659
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments $ 2.70 $ 2.70 $ 1,380
Site production and delivery, before net noncash
and other costs shown below 3.00 1.72 879
Gold and silver credits (2.02) — —
Treatment charges 0.27 0.15 79
Export duties 0.07 0.04 22
Royalty on metals 0.15 0.09 41
Unit net cash costs 1.47 2.00 1,021
DD&A 0.61 0.35 177
Noncash and other costs, net 0.52 b 0.29 152
Total unit costs 2.60 2.64 1,350
Other revenue adjustments, primarily for pricing
on prior period open sales 0.04 0.04 3
PT Smelting intercompany loss (0.05) (0.03) (14)
Gross profit per pound/ounce $ 0.09 $ 0.07 $ 19
Reconciliation to Amounts Reported
Production
Revenues and Delivery DD&A
Totals presented above $ 2,188 $ 1,393 $ 281
Treatment charges (125) — —
Export duties (35) — —
Royalty on metals (68) — —
Noncash and other costs, net (147) 93 —
Other revenue adjustments, primarily for pricing
on prior period open sales 20 — —
PT Smelting intercompany loss — 23 —
Indonesia mining 1,833 1,509 281
Other miningc
10,962 9,248 681
Corporate, other & eliminations (2,304) (2,158) 59
As reported in our consolidated financial statements $ 10,491 $ 8,599 $ 1,021

a.~~Includes silver sales of 1.6 million ounces ($15.58 per ounce average realized price).~~

b.Includes charges totaling $166 million ($0.36 per pound of copper) primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties. Also includes charges totaling $28 million ($0.06 per pound of copper) associated with adjustments to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.

c.~~Represents the combined total for our other segments, as presented in Note 9.~~

6466

Table of Contents

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs


		Three Months Ended September 30,										Three Months Ended September 30,
(In millions)	(In millions)	2020			2019						(In millions)	2021		2020

Revenues, excluding adjustmentsa	Revenues, excluding adjustmentsa	$	47		$	96					Revenues, excluding adjustmentsa	$	158	$	47
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	47			83						Site production and delivery, before net noncash and other costs shown below	67		47
Treatment charges and other	Treatment charges and other	5			6						Treatment charges and other	7		5
Net cash costs	Net cash costs	52			89						Net cash costs	74		52
DD&A	DD&A	13			16						DD&A	19		13
Metals inventory adjustments	Metals inventory adjustments	3			1						Metals inventory adjustments	—		3
Noncash and other costs, net	Noncash and other costs, net	4		b	2						Noncash and other costs, net	3		4
Total costs	Total costs	72			108						Total costs	96		72
Gross loss		$	(25)		$	(12)
Gross profit (loss)											Gross profit (loss)	$	62	$	(25)

Molybdenum sales (millions of recoverable pounds)a	Molybdenum sales (millions of recoverable pounds)a	6			7						Molybdenum sales (millions of recoverable pounds)a	9		6

Gross loss per pound of molybdenum:
Gross profit (loss) per pound of molybdenum:											Gross profit (loss) per pound of molybdenum:

Revenues, excluding adjustmentsa	Revenues, excluding adjustmentsa	$	8.83		$	12.57					Revenues, excluding adjustmentsa	$	18.13	$	8.83
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	8.88			10.79						Site production and delivery, before net noncash and other costs shown below	7.70		8.88
Treatment charges and other	Treatment charges and other	0.84			0.85						Treatment charges and other	0.84		0.84
Unit net cash costs	Unit net cash costs	9.72			11.64						Unit net cash costs	8.54		9.72
DD&A	DD&A	2.38			2.06						DD&A	2.14		2.38
Metals inventory adjustments	Metals inventory adjustments	0.67			0.17						Metals inventory adjustments	—		0.67
Noncash and other costs, net	Noncash and other costs, net	0.54		b	0.26						Noncash and other costs, net	0.30		0.54
Total unit costs	Total unit costs	13.31			14.13						Total unit costs	10.98		13.31
Gross loss per pound		$	(4.48)		$	(1.56)
Gross profit (loss) per pound											Gross profit (loss) per pound	$	7.15	$	(4.48)

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported										Reconciliation to Amounts Reported
																		Metals
									Metals					Production				Inventory
					Production				Inventory
Three Months Ended September 30, 2020		Revenues			and Delivery		DD&A		Adjustments
Three Months Ended September 30, 2021											Three Months Ended September 30, 2021	Revenues		and Delivery		DD&A		Adjustments
Totals presented above	Totals presented above	$	47		$	47	$	13	$	3	Totals presented above	$	158	$	67	$	19	$	—
Treatment charges and other	Treatment charges and other	(5)			—		—		—		Treatment charges and other	(7)		—		—		—
Noncash and other costs, net	Noncash and other costs, net	—			4		—		—		Noncash and other costs, net	—		3		—		—
Molybdenum mines	Molybdenum mines	42			51		13		3		Molybdenum mines	151		70		19		—
Other miningc		4,886			3,448		360		(2)
Other miningb											Other miningb	7,563		4,569		493		13

Corporate, other & eliminations	Corporate, other & eliminations	(1,077)			(1,034)		21		8		Corporate, other & eliminations	(1,631)		(1,630)		16		1
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	3,851		$	2,465	$	394	$	9	As reported in our consolidated financial statements	$	6,083	$	3,009	$	528	$	14

Three Months Ended September 30, 2019
Three Months Ended September 30, 2020											Three Months Ended September 30, 2020
Totals presented above	Totals presented above	$	96		$	83	$	16	$	1	Totals presented above	$	47	$	47	$	13	$	3
Treatment charges and other	Treatment charges and other	(6)			—		—		—		Treatment charges and other	(5)		—		—		—
Noncash and other costs, net	Noncash and other costs, net	—			2		—		—		Noncash and other costs, net	—		4		—		—

Molybdenum mines	Molybdenum mines	90			85		16		1		Molybdenum mines	42		51		13		3
Other miningc		3,863			3,355		286		40
Other miningb											Other miningb	4,886		3,448		360		(2)

Corporate, other & eliminations	Corporate, other & eliminations	(800)			(770)		20		—		Corporate, other & eliminations	(1,077)		(1,034)		21		8
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	3,153		$	2,670	$	322	$	41	As reported in our consolidated financial statements	$	3,851	$	2,465	$	394	$	9

a.Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

b.~~Includes charges totaling $0.3 million ($0.05 per pound of molybdenum) primarily for employee separation costs associated with our April 2020 revised operating plans.~~

c.Represents the combined total for our other segments, as presented in Note 9. Also includes amounts associated with our molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

Table of Contents

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs


		Nine Months Ended September 30,										Nine months ended September 30,
(In millions)	(In millions)	2020			2019						(In millions)	2021		2020

Revenues, excluding adjustmentsa	Revenues, excluding adjustmentsa	$	187		$	311					Revenues, excluding adjustmentsa	$	329	$	187
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	164			229						Site production and delivery, before net noncash and other costs shown below	175		164
Treatment charges and other	Treatment charges and other	16			21						Treatment charges and other	19		16
Net cash costs	Net cash costs	180			250						Net cash costs	194		180
DD&A	DD&A	44			50						DD&A	51		44
Metals inventory adjustments	Metals inventory adjustments	8			1						Metals inventory adjustments	1		8
Noncash and other costs, net	Noncash and other costs, net	14		b	5						Noncash and other costs, net	8		14		b
Total costs	Total costs	246			306						Total costs	254		246
Gross (loss) profit		$	(59)		$	5
Gross profit (loss)											Gross profit (loss)	$	75	$	(59)

Molybdenum sales (millions of recoverable pounds)a	Molybdenum sales (millions of recoverable pounds)a	19			24						Molybdenum sales (millions of recoverable pounds)a	23		19

Gross (loss) profit per pound of molybdenum:
Gross profit (loss) per pound of molybdenum:											Gross profit (loss) per pound of molybdenum:

Revenues, excluding adjustmentsa	Revenues, excluding adjustmentsa	$	9.92		$	12.61					Revenues, excluding adjustmentsa	$	14.41	$	9.92
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below	8.73			9.28						Site production and delivery, before net noncash and other costs shown below	7.69		8.73
Treatment charges and other	Treatment charges and other	0.85			0.85						Treatment charges and other	0.85		0.85
Unit net cash costs	Unit net cash costs	9.58			10.13						Unit net cash costs	8.54		9.58
DD&A	DD&A	2.31			2.05						DD&A	2.21		2.31
Metals inventory adjustments	Metals inventory adjustments	0.44			0.05						Metals inventory adjustments	0.04		0.44
Noncash and other costs, net	Noncash and other costs, net	0.72		b	0.19						Noncash and other costs, net	0.34		0.72		b
Total unit costs	Total unit costs	13.05			12.42						Total unit costs	11.13		13.05
Gross (loss) profit per pound		$	(3.13)		$	0.19
Gross profit (loss) per pound											Gross profit (loss) per pound	$	3.28	$	(3.13)

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported										Reconciliation to Amounts Reported
																			Metals
														Production					Inventory
									Metals
					Production				Inventory
Nine Months Ended September 30, 2020		Revenues			and Delivery		DD&A		Adjustments
Nine months ended September 30, 2021											Nine months ended September 30, 2021	Revenues		and Delivery			DD&A		Adjustments
Totals presented above	Totals presented above	$	187		$	164	$	44	$	8	Totals presented above	$	329	$	175		$	51	$	1
Treatment charges and other	Treatment charges and other	(16)			—		—		—		Treatment charges and other	(19)		—			—		—
Noncash and other costs, net	Noncash and other costs, net	—			14		—		—		Noncash and other costs, net	—		8			—		—
Molybdenum mines	Molybdenum mines	171			178		44		8		Molybdenum mines	310		183			51		1
Other miningc	Other miningc	12,306			9,902		998		58		Other miningc	20,761		12,820			1,332		13

Corporate, other & eliminations	Corporate, other & eliminations	(2,774)			(2,676)		51		26		Corporate, other & eliminations	(4,390)		(4,141)			47		1
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	9,703		$	7,404	$	1,093	$	92	As reported in our consolidated financial statements	$	16,681	$	8,862		$	1,430	$	15

Nine Months Ended September 30, 2019
Nine months ended September 30, 2020											Nine months ended September 30, 2020
Totals presented above	Totals presented above	$	311		$	229	$	50	$	1	Totals presented above	$	187	$	164		$	44	$	8
Treatment charges and other	Treatment charges and other	(21)			—		—		—		Treatment charges and other	(16)		—			—		—
Noncash and other costs, net	Noncash and other costs, net	—			5		—		—		Noncash and other costs, net	—		14			—		—

Molybdenum mines	Molybdenum mines	290			234		50		1		Molybdenum mines	171		178			44		8
Other miningc	Other miningc	12,505			10,523		912		41		Other miningc	12,306		9,902			998		58

Corporate, other & eliminations	Corporate, other & eliminations	(2,304)			(2,158)		59		58		Corporate, other & eliminations	(2,774)		(2,676)			51		26
As reported in our consolidated financial statements	As reported in our consolidated financial statements	$	10,491		$	8,599	$	1,021	$	100	As reported in our consolidated financial statements	$	9,703	$	7,404		$	1,093	$	92

b.Includes charges totaling $7 million ($0.36 per pound of molybdenum) primarily associated with ~~our April 2020 revised operating plans (including employee separation costs) and~~ contract cancellation costs related to the COVID-19 ~~pandemic.~~pandemic and employee separation costs associated with April 2020 revised operating plans.

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GUARANTOR SUMMARIZED FINANCIAL INFORMATION

All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC), as guarantor, which is a 100-percent-owned subsidiary of FCX Oil & Gas LLC (FM O&G) and FCX. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under our revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC’s future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC’s subsidiaries. The indentures provide that FM O&G LLC’s guarantee obligations may be released or terminated upon: (i) the sale of all or substantially all of the equity interests or assets of FM O&G LLC to a third party that is not our subsidiary or our affiliate; (ii) FM O&G LLC no longer having any obligations under any FM O&G senior notes or any refinancing thereof and no longer being a co-borrower or guarantor of any of our obligations under the revolving credit facility or any other senior debt or, in each case, any refinancing thereof; or (iii) the discharge of our obligations under the indentures in accordance with their terms.

The following summarized financial data includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all our other non-guarantor subsidiaries at September 30, ~~2020,~~2021, and December 31, ~~2019,~~2020, and for the nine months ended September 30, ~~2020.~~2021.

FCX FM O&G LLC Non-guarantor Consolidated
Issuer Guarantor Subsidiaries Eliminations FCX
As of September 30, 2020
Current assets $ 11 $ 679 $ 8,077 $ (696) $ 8,071
Noncurrent assets 1,202 6 32,986 (1,166) 33,028
Current liabilities 107 26 3,680 (717) 3,096
Noncurrent liabilities 9,383 11,157 15,871 (15,970) 20,441
As of December 31, 2019
Current assets $ 154 $ 657 $ 7,778 $ (674) $ 7,915
Noncurrent assets 1,620 22 32,692 (1,440) 32,894
Current liabilities 323 42 3,550 (706) 3,209
Noncurrent liabilities 9,180 10,892 15,975 (15,895) 20,152
Nine Months Ended September 30, 2020
Revenues $ — $ 18 $ 9,685 $ — $ 9,703
Operating (loss) income (21) (29) 786 (8) 728
Net (loss) income (109) a (225) a (29) 370 7


	FCX			FM O&G LLC			Non-guarantor				Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations		FCX
As of September 30, 2021
Current assets	$	151		$	745		$	13,815	$	(920)	$	13,791
Noncurrent assets	432			6			33,078		(390)		33,126
Current liabilities	717			39			5,635		(868)		5,523
Noncurrent liabilities	9,050			11,405			13,975		(15,567)		18,863

As of December 31, 2020
Current assets	$	65		$	697		$	9,287	$	(746)	$	9,303
Noncurrent assets	785			6			32,806		(756)		32,841
Current liabilities	187			31			3,964		(765)		3,417
Noncurrent liabilities	9,433			11,208			15,075		(15,657)		20,059

Nine Months Ended September 30, 2021
Revenues	$	—		$	41		$	16,640	$	—	$	16,681
Operating (loss) income	(33)			10			6,069		15		6,061
Net income (loss)	3,200		a	(133)		a	4,262		(3,322)		4,007

a.Net ~~loss~~income (loss) equals net ~~loss~~income (loss) attributable to common stockholders because net ~~loss~~income attributable to noncontrolling interests is zero for issuer and guarantor.

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CAUTIONARY STATEMENT

Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to ore grades and milling rates; business outlook; production and sales volumes; unit net cash costs; cash flows; capital expenditures; liquidity; operating costs; operating plans; the implementation of our financial policy; ~~cost savings; our expectations regarding our share~~PT-FI's ramp-up of ~~PT-FI's net income~~underground mining activities and future cash flows through 2022; PT-FI's development, financing, construction and completion of a new ~~smelter~~domestic smelting capacity in ~~Indonesia;~~Indonesia in accordance with the terms of the special mining license (IUPK); expectations regarding negotiations with hourly employees at Cerro Verde including completion of new CLAs; our ~~aim~~commitments to deliver responsibly produced copper, ~~and our Copper Mark ambitions and~~including plans to implement and validate all of our operating ~~sites;~~sites under specific frameworks; execution of our energy and climate strategies and the underlying assumptions and estimated impacts on our business related thereto; improvements in operating procedures and technology; exploration efforts and results; development and production activities, rates and costs; tax rates; export quotas and duties; the impact of copper, gold and molybdenum price changes; the impact of deferred intercompany profits on earnings; mineralization and reserve estimates; execution of the settlement ~~agreement~~agreements associated with the Louisiana coastal erosion ~~cases;~~cases and talc-related litigation; descriptions of our objectives, strategies, plans, goals or targets and future returns to shareholders, including dividend payments (base or variable) and share ~~purchases and sales.~~repurchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” "targets," “intends,” “likely,” “will,” “should,” “could,” “to be,” ”potential," “assumptions,” “guidance,” “future” and any similar expressions are intended to identify those assertions as forward-looking statements. The timing and amount of any share repurchases will be at the discretion of management and will depend on a variety of factors including, but not limited to, our operating performance, cash flow and financial position, the market price of the shares and general economic and market conditions. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion. The declaration and payment of ~~future~~ dividends (base or variable) is also at the discretion of the Board and will depend on our financial results, cash requirements, ~~future~~business prospects, global economic conditions and other factors deemed relevant by the Board. In accordance with the June 2020 amendment to the revolving credit facility, we are currently restricted from declaring or paying common stock dividends through December 31, 2021, unless we, at our option, revert to the previous covenant requirements, which would also eliminate the restriction on the declaration or payment of common stock dividends.

We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, changes in our credit rating; changes in our cash requirements, financial position, financing plans or investment plans; ability to continue to maintain our net debt at a level not to exceed the net debt target in our financial policy; changes in general market, economic, tax, regulatory or industry conditions; the duration and scope of and uncertainties associated with the COVID-19 pandemic (including new and emerging strains and variants of COVID-19), and the impact thereof on commodity prices, our business ~~and the global economy, which are evolving and beyond our control,~~ and any related actions taken by governments and businesses; our ability to contain and mitigate the risk of spread or major outbreak of COVID-19 at our operating sites, including at PT-FI’s remote operating site in Papua; supply of and demand for, and prices of, copper, gold and molybdenum; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations; production rates; timing of shipments; results of feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; the potential effects of violence in Indonesia generally and in the province of Papua; the ~~Indonesian~~Indonesia government's extension of PT-FI's export license after March 15, ~~2021;~~2022; risks associated with underground mining; satisfaction of requirements in accordance with PT-FI's ~~special mining license~~IUPK to extend mining rights from 2031 through 2041; the ~~Indonesian~~Indonesia government's approval of a deferred schedule for completion of ~~the~~ new ~~smelter~~domestic smelting capacity in Indonesia; expected results from improvements in operating procedures and technology, including innovation initiatives; industry risks; regulatory changes; political and social risks; labor relations, including labor-related work ~~stoppages;~~stoppages and costs; weather- and climate-related risks; environmental risks; litigation results and ~~potential~~completion of settlement ~~results;~~agreements; cybersecurity incidents; changes in general market, economic and industry conditions; financial condition of our customers, suppliers, vendors, partners and ~~affiliates, particularly during weak economic conditions and extended periods of low commodity prices;~~affiliates; reductions in liquidity and access to capital; our ability to comply with ~~Copper Mark requirements~~our responsible production commitments under specific frameworks and any changes to such ~~requirements;~~frameworks; our ability to consummate the redemption of senior notes and other factors described in more detail ~~as described~~ under the heading “Risk Factors” contained in Part I, Item 1A. of our ~~2019~~2020 Form ~~10-K and Part II, Item 1A. herein.~~10-K.

Investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs or technological solutions and innovation, some aspects of which we may not be able to control. Further, we may make changes to our business plans that could affect our results. We caution investors that we ~~do not intend~~undertake no obligation to update any forward-looking statements, ~~more frequently than quarterly~~which speak only as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other ~~changes, and we undertake no obligation to update any forward-looking statements.~~

changes.

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This report on Form 10-Q also contains financial measures such as net debt and unit net cash costs per pound of copper and molybdenum, which are not recognized under U.S. GAAP. Refer to “Operations – Unit Net Cash Costs” for further discussion of unit net cash costs associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements. Refer to “Net Debt” for reconciliations of debt and consolidated cash and cash equivalents to net debt.

Item 3.Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in our market risks during the nine-month period ended September 30, ~~2020.~~2021.

For additional information on market risks, refer to “Disclosures About Market Risks” included in Part II, Items 7. and 7A. of our ~~2019~~2020 Form 10-K. For projected sensitivities of our operating cash flow to changes in commodity prices, refer to “Outlook” in Part I, Item 2. of this quarterly report on Form ~~10-Q for the period ended September 30, 2020;~~10-Q; for projected sensitivities of our provisionally priced copper sales to changes in commodity prices refer to “Consolidated Results – Revenues” in Part I, Item 2. of this quarterly report on Form ~~10-Q for the period ended September 30, 2020.~~10-Q.

Item 4.Controls and Procedures.

(a)Evaluation of disclosure controls and procedures. Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures were effective as of September 30, ~~2020.~~2021.

(b)Changes in internal control over financial reporting. There has been no change in our internal control over financial reporting that occurred during the quarter ended September 30, ~~2020,~~2021, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II.OTHER INFORMATION

Item 1.Legal Proceedings.

We are involved in numerous legal proceedings that arise in the ordinary course of our business or are associated with environmental issues. We are also involved periodically in reviews, inquiries, investigations and other proceedings initiated by or involving government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief.

Management does not believe, based on currently available information, that the outcome of any legal proceeding reported in Part I, Item 3. “Legal Proceedings” and Note 12 of our ~~2019~~2020 Form 10-K, and Note 8 herein, will have a material adverse effect on our financial condition; although individual or cumulative outcomes could be material to our operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period.

There have been no material changes to legal proceedings previously disclosed in Part I, Item 3. “Legal Proceedings” and Note 12 of our ~~2019~~2020 Form ~~10-K, except as described in~~10-K. Refer to Note 8 ~~herein.~~for updates to our talc and asbestos claims.

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Item 1A. Risk Factors.

There have been no material changes to our risk factors previously disclosed in Part I, Item 1A. “Risk Factors” of our ~~2019~~2020 Form ~~10-K, except for the updated risk factors included below, which should be read in conjunction with the risk factors set forth in our 2019 Form~~ 10-K. However, the risks and uncertainties that we face are not limited to those described in our 2019 Form 10-K or as updated below. Additional risks and uncertainties related to the impact of and attempts to contain the COVID-19 pandemic, but currently unknown or believed not to be material by us, may also adversely affect our business and the trading price of our securities.

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The ongoing COVID-19 pandemic and resulting negative impact on the global economy and financial markets has had and will likely continue to have an adverse impact on our business and results of operations, the duration and extent of which is highly uncertain and could be material.

The ongoing COVID-19 pandemic continues to have an adverse impact on the global economy and is creating significant volatility in the financial markets, including the copper markets. The duration and scope of, and uncertainties associated with, the ongoing COVID-19 pandemic and the related impact on commodity prices, our business and the global economy are evolving and beyond our control. The extent and duration of adverse impacts that the COVID-19 pandemic may have on supply, demand and prices of the commodities we produce, on our suppliers, vendors, customers and employees and on global financial markets is unknown at this time, but could be both material and prolonged. Prolonged unfavorable economic conditions, and any resulting slowed global economic growth, including the current U.S. recession, may result in lower demand for the commodities we produce, as well as the inability of various customers, contractors, suppliers and other business partners to fulfill their obligations, which could have a material adverse effect on our business and results of operations.

On April 24, 2020, we announced revised operating plans in response to the global COVID-19 pandemic and resulting negative impact on the global economy. Our April 2020 revised operating plans continue to focus on safeguarding our business in an uncertain public health and economic environment, advancing the ramp-up of underground production at Grasberg to establish large-scale, low-cost copper and gold production, and advancing initiatives in North America and South America to position us for significant increases in cash flows in 2021 and beyond. For additional information, refer to Part 1, Item 2. herein and Note 1 to our financial statements included herein.

Our business and results of operations could be adversely affected if significant portions of our workforce are unable to work effectively, including because of illness, quarantines, government actions or other restrictions in connection with the COVID-19 pandemic. We have proactively implemented operating protocols at each of our operating sites to contain and mitigate the risk of spread of COVID-19, including but not limited to, physical distancing, travel restrictions, sanitizing, and frequent health screening and monitoring. A limited number of COVID-19 cases have been confirmed through testing at our operating sites, including PT-FI’s remote operating site in Papua, Indonesia. Despite our efforts to manage these impacts, there can be no assurance that our actions will be effective in containing and mitigating the risk of spread or a major outbreak of COVID-19 at our operating sites. A major outbreak of COVID-19 at any of our operating sites, and particularly at PT-FI’s remote operating site, could have a material adverse effect on our business and results of operations.

Actions taken by governmental authorities and third parties to contain and mitigate the risk of spread of COVID-19 have had and will likely continue to have an adverse impact on our business. For example, in mid-March 2020, the Peruvian government issued a Supreme Decree and declaration of a National Emergency in its efforts to contain the outbreak of COVID-19, and subsequently extended the order through May 10, 2020. The Peruvian government also extended the quarantine measures instituted in mid-March 2020 through August 31, 2020, for certain cities in Peru (including Arequipa). To comply with the government’s requirements, we temporarily transitioned our Cerro Verde mine to care and maintenance status and adjusted operations to prioritize critical activities. Strict health protocols have been implemented and a plan for Cerro Verde to restore operations was approved by the Peruvian government in second-quarter 2020. Cerro Verde continued to make progress toward restoring operations during third-quarter 2020, with operating rates averaging 351,000 metric tons of ore per day (approximately 90 percent of the 2019 annual average).

These and other impacts of COVID-19 or other global or regional health pandemics, epidemics or similar public health threats could also have the effect of heightening many of the other risks described in Part I, Item 1A. “Risk Factors” of our 2019 Form 10-K. The ultimate impact of COVID-19 on our business is difficult to predict and depends on factors that are evolving and beyond our control, including the scope and duration of the outbreak and recovery as well as actions taken by governmental authorities and third parties to contain its spread and mitigate its public health effects. Any of these disruptions could continue to adversely impact our business and results of operations, and such adverse impacts could be material.

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~~The following risk factors which were previously disclosed in Part I, Item 1A. “Risk Factors” of our 2019 Form 10-K, are amended and restated as follows:~~

Fluctuations in the market prices of the commodities we produce, primarily copper, gold and molybdenum, have caused and may continue to cause significant volatility in our financial performance and in the trading prices of our common stock and debt. Extended declines in the market prices of copper, gold and, to a lesser extent, molybdenum could have, an adverse effect on our earnings, cash flows and asset values and, if sustained, may adversely affect our ability to repay debt.

Our financial results vary with fluctuations in the market prices of the commodities we produce, primarily copper and gold, and to a lesser extent molybdenum. The COVID-19 pandemic and resulting negative impact on the global economy has created significant volatility in the financial markets, including the copper market. In third-quarter 2020, copper prices continued to recover from the sharp decline that occurred during first-quarter 2020. However, with the ongoing COVID-19 pandemic, any extended decline in market prices of these commodities could have a material adverse effect on our financial results and the value of our assets and may depress the price of our common stock and may have a material adverse effect on our ability to comply with financial and other covenants in our debt agreements, repay our debt and meet our other obligations.

On April 24, 2020, we announced revised operating plans in response to the global COVID-19 pandemic and resulting negative impact on the global economy. Our April 2020 revised operating plans included reductions in (i) estimated operating costs, (ii) estimated capital expenditures, (iii) estimated exploration and administrative costs, and (iv) estimated sales volumes in our North America and South America operations, as well as a reduction in production of molybdenum by approximately 50 percent at our Climax open-pit mine in North America and discontinuing certain exploration and development programs. If market prices for our primary commodities decline again and remain low for a sustained period of time, we may have to further revise our operating plans. We may be unable to decrease our costs in an amount sufficient to offset reductions in revenues, in which case we may incur losses, and those losses may be material.

Fluctuations in commodities prices are caused by varied and complex factors beyond our control, including global supply, demand balances and inventory levels; global economic and political conditions; international regulatory, trade and tax policies, including national tariffs; commodities investment activity and speculation; interest rates; the strength of the U.S. dollar compared to foreign currencies; the price and availability of substitute products; and changes in technology. Volatility in global economic growth, particularly in developing economies, has the potential to adversely affect future demand and prices for commodities. Geopolitical uncertainty, including the United Kingdom’s recent exit from the European Union (commonly referred to as Brexit), and protectionism, have the potential to inhibit international trade and negatively impact business confidence, which creates the risk of constraints on our ability to trade in certain markets and has the potential to increase price volatility.

Copper prices may be affected by demand from China, which has become the largest consumer of refined copper in the world, and by changes in demand for industrial, commercial and residential products containing copper. China had a major economic shutdown during the first quarter of 2020 in connection with its efforts to contain and mitigate the spread of COVID-19, which resulted in the country’s first reported economic contraction in over 40 years. However, during third-quarter 2020, China continued to recover from the major economic shutdown and reported economic growth. Although our sales to date have not been significantly affected, a slowing in China’s economic growth, another widespread COVID-19 outbreak in China, the adoption and expansion of trade restrictions, changes in China-U.S. relations, or other governmental action related to tariffs or trade agreements or policies are difficult to predict and could adversely affect copper prices, demand for our products, our costs, our customers, our suppliers, and the U.S. economy, which in turn could have a material adverse effect on our business, results of operations, or financial condition.

Copper prices have fluctuated historically, with London Metal Exchange (LME) copper settlement prices ranging from $2.48 per pound to $3.29 per pound during the three years ended December 31, 2019. During the first nine months of 2020, LME copper settlement prices ranged from a low of $2.09 per pound to a high of $3.10 per pound. The LME copper settlement price was $3.00 per pound on September 30, 2020, and $3.04 per pound on October 30, 2020.

Factors affecting gold prices may include the relative strength of the U.S. dollar to other currencies, inflation and interest rate expectations, purchases and sales of gold by governments and central banks, demand from China and India, two of the world’s largest consumers of gold, and global demand for jewelry containing gold. The London PM

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gold price was $1,515 per ounce on December 30, 2019 (there was no London PM gold price quote on December 31, 2019), and $1,887 per ounce on September 30, 2020. During the first nine months of 2020, London PM gold prices ranged from a low of $1,474 per ounce to a high of $2,067 per ounce. The London PM gold price was $1,882 per ounce on October 30, 2020.

During the first nine months of 2020, the weekly average price of molybdenum ranged from a low of $7.01 per pound to a high of $10.79 per pound. The Metals Week Molybdenum Dealer Oxide weekly average price of $7.68 per pound on September 30, 2020, was 17 percent lower than the December 31, 2019, weekly average price of $9.23 per pound. The ~~Metals Week~~ ~~Molybdenum Dealer Oxide weekly average price was $8.73 per pound on October 30, 2020.~~

Declines in prices of commodities we sell could result in metals inventory adjustments and impairment charges for our long-lived assets. During the first nine months of 2020, we recorded unfavorable metals inventory adjustments totaling $92 million associated with lower market prices for copper and molybdenum. Refer to Note 3 for additional information regarding metals inventory adjustments. Other events that could result in impairment of our long-lived assets include, but are not limited to, decreases in estimated proven and probable mineral reserves and any event that might have a material adverse effect on current and future expected mine production costs.

Violence, including shooting incidents, civil and religious strife, activism and labor unrest could result in loss of life and/or disrupt our operations and may adversely affect our business, financial condition, results of operations and prospects.

Indonesia has long faced separatist movements and civil and religious strife in a number of provinces. Several separatist groups have sought increased political independence for the province of Papua, where our Grasberg minerals district is located. In Papua, there have been sporadic attacks on civilians by separatists and sporadic but highly publicized conflicts between separatists and the Indonesia military and police. In addition, illegal miners have periodically clashed with police who have attempted for years to move them away from our facilities. Social, economic and political instability in Papua could materially and adversely affect us if it results in damage to our property or interruption of our Indonesia operations.

Beginning in 2009, a series of shooting incidents occurred within the PT-FI project area, including along the road leading to our mining and milling operations. The shooting incidents continued on a sporadic basis through January 2015. During this time, there were 20 fatalities and more than 50 injuries to our employees, contractor employees, government security personnel and civilians. The next shooting incident occurred in August 2017, and a series of shooting incidents continued on a sporadic basis within the PT-FI project area and in nearby areas through January 2020, resulting in 2 fatalities and 25 injuries. In addition, in December 2018, a mass shooting incident targeting a highway construction crew occurred in a remote mountain area approximately 100 miles east of the PT-FI project area, resulting in at least 19 fatalities and several reported as missing. During first-quarter 2020 and April 2020, there was an escalation in shooting incidents in PT-FI’s area of operations. In late March 2020, a shooting incident occurred near PT-FI’s administrative offices in the lowlands in Papua, Indonesia, resulting in the death of one PT-FI employee and injuries to two other workers. Separatist security incidents, including shootings, continue to be sporadically reported, and PT-FI continues to monitor the occurrence of incidents in the region.

The safety of our workforce is a critical concern, and PT-FI continues to work with the Indonesia government to enhance security and address security issues within the PT-FI project area and in nearby areas. We continue to limit the use of the road leading to our mining and milling operations to secured convoys, including transport of personnel by armored vehicles in designated areas.

We cannot predict whether additional incidents will occur that could result in loss of life, disrupt or suspend our operations. If other disruptive incidents occur, they could adversely affect our results of operations and financial condition in ways that we cannot predict at this time.

South American countries have historically experienced uneven periods of economic growth, as well as recession, periods of high inflation and general economic and political instability. During 2019, both Peru and Chile experienced significant and prolonged civil unrest unrelated to our operations. Production and sales for the third quarter and first nine months of 2019 were impacted by protests associated with an unaffiliated copper development project in Peru that blocked access to the shipping ports and main transportation routes. While the civil unrest did not significantly impact our results for 2019, if it continues, our South America operations could be materially

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impacted, and as a result, we may not be able to meet our production and sales targets. We cannot predict whether similar or more significant incidents of civil unrest will occur in the future in Peru or Chile.

As of December 31, 2019, approximately 37 percent of our global labor force was covered by collective bargaining agreements and approximately 21 percent of our global labor force was covered by agreements that have expired and are currently being negotiated or will expire during 2020.

Labor agreements are negotiated on a periodic basis, and may not be renewed on reasonably satisfactory terms to us or at all. If we do not successfully negotiate new collective bargaining agreements with our union workers, we may incur prolonged strikes and other work stoppages at our mining operations, which could adversely affect our financial condition and results of operations. Additionally, if we enter into a new labor agreement with any union that significantly increases our labor costs relative to our competitors, our ability to compete may be materially and adversely affected. Refer to Items 1. and 2. “Business and Properties” of our 2019 Form 10-K for additional information regarding labor matters, and expiration dates of such agreements.

We could experience labor disruptions such as work stoppages, work slowdowns, union organizing campaigns, strikes, or lockouts that could adversely affect our operations. For example, during third-quarter 2016, PT-FI experienced labor productivity issues and a 10-day work stoppage that began in late September 2016. These labor productivity issues continued during fourth-quarter 2016 and the first half of 2017. Beginning in mid-April 2017, PT-FI experienced a high level of worker absenteeism, which unfavorably impacted mining and milling rates. A significant number of employees and contractors elected to participate in an illegal strike action beginning in May 2017, and were subsequently deemed to have voluntarily resigned under existing Indonesia laws and regulations resulting in increased costs associated with employee severance. In late August 2020 and early September 2020, a group of PT-FI workers staged protests and a blockade restricting access to the main road to the mining operations area related to COVID-19 travel restrictions. Material operations at PT-FI were suspended for several days prior to resuming operations after a five-day outage.

We cannot predict whether additional labor disruptions will occur. Significant reductions in productivity or protracted work stoppages at one or more of our operations could significantly reduce our production and sales volumes or disrupt operations, which could adversely affect our cash flow, results of operations and financial condition.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of equity securities during the three months ended September 30, ~~2020.~~2021.

There were no shares of common stock purchased by us during the three months ended September 30, ~~2020.~~ 2021. On ~~July 21, 2008,~~November 1, 2021, our Board ~~of Directors~~ approved ~~an increase in our open-market~~a new share ~~purchase~~repurchase program, ~~for up to 30 million shares. There have been no purchases under this program since 2008. This program~~which does not have an expiration ~~date. At September 30, 2020, there were 23.7 million shares that could still be purchased under~~date, authorizing repurchases of up to $3.0 billion of our common stock.This new share repurchase program supersedes and replaces the ~~program.~~share repurchase program previously authorized by our Board in July 2008.

Item 4.Mine Safety Disclosures.

The safety and health of all employees is our highest priority. Management believes that safety and health considerations are integral to, and compatible with, all other functions in the organization and that proper safety and health management will enhance production and reduce costs. Our approach towards the safety and health of our workforce is to continuously improve performance through implementing robust management systems and providing adequate training, safety incentive and occupational health programs. The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95.1 to this quarterly report on Form 10-Q.

Item 5. Other Information.

Appointment of New Independent Director

On November 1, 2021, our Board increased the size of the Board from nine to ten directors and appointed Ryan M. Lance to serve as a director of FCX, effective immediately, and as a member of the Corporate Responsibility Committee, effective November 2, 2021. Mr. Lance will serve as a director until our 2022 annual meeting of stockholders and until his successor is duly elected and qualified.

The Board affirmatively determined that Mr. Lance has no material relationship with us and is independent in accordance with the director independence standards established under our Corporate Governance Guidelines, which comply with the New York Stock Exchange corporate governance rules, and other applicable laws, rules and regulations. There is no arrangement or understanding between Mr. Lance and any other person pursuant to which he was appointed as a director. There are no transactions in which Mr. Lance has an interest requiring disclosure under Item 404(a) of Regulation S-K.

Our Board is now comprised of ten members, including nine independent directors.

Mr. Lance will be compensated in accordance with our non-management director compensation program, which is described in our definitive proxy statement on Schedule 14A filed with the U.S. Securities and Exchange Commission on April 22, 2021 (the 2021 Proxy Statement) under the heading “Director Compensation.” On November 1, 2021, Mr. Lance received a pro-rata equity award of 2,500 restricted stock units (RSUs), which will vest on the first anniversary of the grant date, or November 1, 2022.

Appointment of Chief Financial Officer

On November 2, 2021, we announced the appointment of Maree Robertson as Senior Vice President and Chief Financial Officer, effective as of March 1, 2022 (the Effective Date). In this role, Ms. Robertson will assume responsibility for our accounting, finance and tax functions, including financial reporting, operational accounting, internal controls, financial planning and analysis, treasury and risk management. Ms. Robertson will report to Kathleen L. Quirk. Ms. Quirk has served as Chief Financial Officer since 2003 and was appointed to an expanded role of President in February 2021. Ms. Quirk will continue to serve as President.

Table of Contents

Ms. Robertson, age 46, served as Chief Financial Officer, Energy and Minerals of Rio Tinto Group, a multinational metals and mining company, since September 2019. Prior to joining Rio Tinto, Ms. Robertson had a 17-year career at BHP Group, a multinational natural resources company, serving in a broad range of international finance functions, including Vice President, Finance, Petroleum USA; Head of Finance, Conventional and Potash, Petroleum USA; Vice President, Finance, Potash Canada; and Vice President, Finance, Minera Escondida Ltda. Ms. Robertson joined BHP in 2002 after four years in the PricewaterhouseCoopers natural resource audit practice. Ms. Robertson holds a Bachelor of Commerce from the University of Melbourne.

As of the Effective Date, Ms. Robertson will be paid an annual base salary of $625,000. She will be eligible to participate in our Annual Incentive Plan with a target to be set at 125 percent of her base salary for 2022. Ms. Robertson will also be eligible to receive long-term incentive awards with a grant date value equal to 300 percent of her base salary granted in a form determined by the Compensation Committee, which may include performance share units, stock options and RSUs. The Compensation Committee will have discretion each year to set these amounts.

Upon the Effective Date, Ms. Robertson will receive sign-on incentives as compensation for certain incentives received from her former employer expected to be forfeited upon joining us as follows: (1) a one-time grant of RSUs that will vest ratably over three years with a grant date value of $1.25 million, with the number of RSUs to be determined based on the 20-day trailing average stock price from the Effective Date, and (2) a one-time cash payment of $625,000 subject to repayment or partial repayment if she resigns at any time within two years following the Effective Date. In addition, Ms. Robertson will be eligible to participate in our Executive Change in Control Severance Plan. Severance benefits under the plan include: (1) a lump sum cash payment equal to two times the sum of Ms. Robertson’s base salary plus her average bonus, (2) a prorated bonus for the year of termination calculated based on her average bonus and the number of days worked during the year of termination, and (3) 18 months of health benefit continuation.

There are no family relationships between Ms. Robertson and any director, executive officer, or person nominated or chosen by us to become a director or executive officer of FCX. Ms. Robertson is not a party to any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

For additional information regarding our executive compensation program and our Executive Change in Control Severance Plan, see our 2021 Proxy Statement.

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Item 6.Exhibits.

Filed

Exhibit

with this

Incorporated by Reference

Number

Exhibit Title

Form 10-Q

Form

File No.

Date Filed

2.1*

~~PTFI~~PT-FI Divestment Agreement dated as of September 27, 2018 among FCX, International Support LLC, PT Freeport Indonesia, PT Indocopper Investama and PT Indonesia Asahan Aluminium (Persero).

10-Q

001-11307-01

11/9/2018

2.2

Supplemental and Amendment Agreement to the PT-FI Divestment Agreement, dated December 21, 2018, among FCX, PT Freeport Indonesia, PT Indonesia Papua Metal Dan Mineral (f/k/a PT Indocopper Investama), PT Indonesia Asahan Aluminium (Persero) and International Support LLC.

10-K

001-11307-01

2/15/2019

3.1

Amended and Restated Certificate of Incorporation of FCX, effective as of June 8, 2016.

8-K

001-11307-01

6/9/2016

3.2

Amended and Restated By-Laws of FCX, effective as of June 3, 2020.

8-K

001-11307-01

6/3/2020

~~4.1~~

Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).

~~8-K~~

~~001-11307-01~~

~~2/13/2012~~

~~4.2~~

~~Third Supplemental Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022).~~

~~8-K~~

~~001-11307-01~~

~~2/13/2012~~

~~4.3~~

Fourth Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).

~~8-K~~

~~001-11307-01~~

~~6/3/2013~~

~~4.4~~

Sixth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.00% Senior Notes due 2021).

~~8-K~~

~~001-11307-01~~

~~11/14/2014~~

~~4.5~~

Seventh Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.55% Senior Notes due 2024).

~~8-K~~

~~001-11307-01~~

~~11/14/2014~~

~~4.6~~

Eighth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 5.40% Senior Notes due 2034).

~~8-K~~

~~001-11307-01~~

~~11/14/2014~~

~~4.7~~

~~Indenture dated as of March 7, 2013, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).~~

~~8-K~~

~~001-11307-01~~

~~3/7/2013~~

~~4.8~~

Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 3.875% Senior Notes due 2023 and the 5.450% Senior Notes due 2043).

~~8-K~~

~~001-11307-01~~

~~6/3/2013~~

~~4.9~~

Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).

~~S-3~~

~~333-36415~~

~~9/25/1997~~

~~Table of Contents~~

~~Filed~~

~~Exhibit~~

~~with this~~

~~Incorporated by Reference~~

~~Number~~

~~Exhibit Title~~

~~Form 10-Q~~

~~Form~~

~~File No.~~

~~Date Filed~~

~~4.10~~

Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027).

~~8-K~~

~~01-00082~~

~~11/3/1997~~

~~4.11~~

Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031).

~~8-K~~

~~01-00082~~

~~5/30/2001~~

~~4.12~~

Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034).

~~10-K~~

~~01-00082~~

~~3/7/2005~~

~~4.13~~

Supplemental Indenture dated as of April 4, 2007 to the Indenture dated as of September 22, 1997, among Phelps Dodge Corporation, as Issuer, Freeport-McMoRan Copper & Gold Inc., as Parent Guarantor, and U.S. Bank National Association, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).

~~10-K~~

~~001-11307-01~~

~~2/26/2016~~

~~4.14~~

~~Indenture dated as of December 13, 2016, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 6.875% Senior Notes due 2023).~~

~~8-K~~

~~001-11307-01~~

~~12/13/2016~~

~~4.15~~

Registration Rights Agreement dated as of December 13, 2016 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer Managers, relating to the 6.875% Senior Notes due 2023.

~~8-K~~

~~001-11307-01~~

~~12/13/2016~~

~~4.16~~

~~Form of Certificate representing shares of common stock, par value $0.10.~~

~~8-A/A~~

~~001-11307-01~~

~~8/10/2015~~

~~4.17~~

Indenture dated as of August 15, 2019, between FCX and U.S. Bank National Association, as Trustee (relating to the 5.00% Senior Notes due 2027, the 4.125% Senior Notes due 2028, the 4.375% Senior Notes due 2028, the 5.25% Senior Notes due 2029, the 4.25% Senior Notes due 2030 and the 4.625% Senior Notes due 2030).

~~8-K~~

~~001-11307-01~~

~~8/15/2019~~

~~4.18~~

First Supplemental Indenture dated as of August 15, 2019, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 5.00% Senior Notes due 2027).

~~8-K~~

~~001-11307-01~~

~~8/15/2019~~

~~4.19~~

Second Supplemental Indenture dated as of August 15, 2019, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 5.25% Senior Notes due 2029).

~~8-K~~

~~001-11307-01~~

~~8/15/2019~~

~~4.20~~

Third Supplemental Indenture dated as of March 4, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.125% Senior Notes due 2028).

~~8-K~~

~~001-11307-01~~

~~3/4/2020~~

~~4.21~~

Fourth Supplemental Indenture dated as of March 4, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.25% Senior Notes due 2030).

~~8-K~~

~~001-11307-01~~

~~3/4/2020~~

~~Table of Contents~~

~~Filed~~

~~Exhibit~~

~~with this~~

~~Incorporated by Reference~~

~~Number~~

~~Exhibit Title~~

~~Form 10-Q~~

~~Form~~

~~File No.~~

~~Date Filed~~

~~4.22~~

~~Form of 5.00% Senior Notes due 2027 (included in Exhibit 4.18).~~

~~8-K~~

~~001-11307-01~~

~~8/15/2019~~

~~4.23~~

~~Form of 5.25% Senior Notes due 2029 (included in Exhibit 4.19).~~

~~8-K~~

~~001-11307-01~~

~~8/15/2019~~

~~4.24~~

~~Form of 4.125% Senior Notes due 2028 (included in Exhibit 4.20).~~

~~8-K~~

~~001-11307-01~~

~~3/4/2020~~

~~4.25~~

~~Form of 4.25% Senior Notes due 2030 (included in Exhibit 4.21).~~

~~8-K~~

~~001-11307-01~~

~~3/4/2020~~

~~4.26~~

Fifth Supplemental Indenture dated as of March 31, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.125% Senior Notes due 2028 and the 4.25% Senior Notes due 2030).

~~10-Q~~

~~001-11307-01~~

~~8/7/2020~~

~~4.27~~

Sixth Supplemental Indenture dated as of July 27, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.375% Senior Notes due 2028).

~~8-K~~

~~001-11307-01~~

~~7/27/2020~~

~~4.28~~

Seventh Supplemental Indenture dated as of July 27, 2020, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 4.625% Senior Notes due 2030).

~~8-K~~

~~001-11307-01~~

~~7/27/2020~~

~~4.29~~

~~Form of 4.375% Senior Notes due 2028 (included in Exhibit 4.27).~~

~~8-K~~

~~001-11307-01~~

~~7/27/2020~~

~~4.30~~

~~Form of 4.625% Senior Notes due 2030 (included in Exhibit 4.28).~~

~~8-K~~

~~001-11307-01~~

~~7/27/2020~~

15.1

Letter from Ernst & Young LLP regarding unaudited interim financial statements.

22.1

List of Guarantor Subsidiaries

10-K

001-11307-01

2/16/2021

31.1

Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).

31.2

Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).

32.1

Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.

32.2

Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.

95.1

Mine Safety and Health Administration Safety Data.

101.INS

XBRL Instance Document- the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase.

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase.

104

The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL.

* The registrant agrees to furnish supplementally to the Securities and Exchange Commission (SEC) a copy of any omitted schedule or exhibit upon the request of the SEC in accordance with Item 601(a)(5) of Regulation S-K.

Note: Certain instruments with respect to long-term debt of FCX have not been filed as exhibits to this Quarterly Report on Form 10-Q since the total amount of securities authorized under any such instrument does not exceed 10 percent of the total assets of FCX and its subsidiaries on a consolidated basis. FCX agrees to furnish a copy of each such instrument upon request of the SEC.

7674

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			Freeport-McMoRan Inc.

			By:			/s/ C. Donald Whitmire, Jr.
						C. Donald Whitmire, Jr.
						Vice President and
						Controller - Financial Reporting
						(authorized signatory
						and Principal Accounting Officer)

Date: November ~~6, 2020~~5, 2021

1S-1


	September 30, 2020		December 31, 2019
Current inventories:
Total materials and supplies, neta	$	1,610	$	1,649

Mill stockpiles	$	185	$	220
Leach stockpiles	819		923
Total current mill and leach stockpiles	$	1,004	$	1,143

Raw materials (primarily concentrate)	$	360	$	318
Work-in-process	163		124
Finished goods	755		839
Total product	$	1,278	$	1,281

Long-term inventories:
Mill stockpiles	$	211	$	181
Leach stockpiles	1,252		1,244
Total long-term mill and leach stockpilesb	$	1,463	$	1,425