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• Consolidated Net Income: Increased by 65% for the first half of 2026 compared to the first half of 2025.
• U.S. Mining Operations Operating Income: 2.4 times more in the first half of 2026 compared to the first half of 2025.
• Ownership in Cerro Verde: Increased by 2% to over 55% through purchases totaling over $300 million.
• Shareholder Returns: $600 million returned in the first half of 2026, including $200 million in share repurchases.
• Copper Sales Volume Increase: Expected over 20% higher in the second half of 2026 compared to the first half.
• Gold Sales Volume Increase: Expected more than 65% higher in the second half of 2026 compared to the first half.
• Average Unit Net Cash Cost: Estimated at $1.90 per pound for 2026, slightly below the previous estimate of $1.95 per pound.
• Capital Expenditures for 2027: Estimated at $4.8 billion, approximately $300 million above the previous estimate.
• Projected Annual EBITDA: Ranges from $13 billion at $5 copper to $20 billion at $7 copper for 2027-2028.
• Operating Cash Flows: Ranges from $9.5 billion at $5 copper to $15.5 billion at $7 copper for 2027-2028.

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Release Date: July 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Freeport-McMoRan Inc (NYSE:FCX) reported a 65% increase in consolidated net income for the first half of 2026 compared to the previous year.
• The company successfully ramped up production at the Grasberg Block Cave mine, with production rates doubling during the quarter.
• Freeport-McMoRan Inc (NYSE:FCX) increased its ownership in Cerro Verde by 2% through opportunistic share purchases, enhancing its stake in a valuable asset.
• The company is advancing several growth projects, including a major expansion at the Baghdad mine in Arizona and regulatory work for expansion at the Alabra mine in Chile.
• Freeport-McMoRan Inc (NYSE:FCX) returned $600 million to shareholders in the first half of 2026, including $200 million in share repurchases, demonstrating a commitment to shareholder returns.

Negative Points

• The capital expenditure for the Baghdad expansion is estimated to be approximately 30% higher than previous estimates, reflecting increased commodity and labor costs.
• There are ongoing challenges with wet conditions at the Grasberg mine, although improvements have been noted.
• The company faces volatility in diesel prices and sulfur and acid costs, impacting operating expenses.
• Freeport-McMoRan Inc (NYSE:FCX) has not yet received formal approval for the extension of its operating rights in Indonesia, which is crucial for long-term planning.
• The company's target of reducing U.S. operating costs to $2.50 per pound by 2027 may be challenging to achieve due to current market conditions.

Q & A Highlights

Q: Can you provide more details on the Baghdad project, particularly regarding the expected CapEx and the timeline for a decision? A: Kathleen Quirk, President and CEO, explained that they are working towards a final decision in the second half of this year. The CapEx is expected to be higher than the 2023 estimate, but they are optimizing the operating model to offset these costs. The project remains attractive at a $4 per pound copper price, and they are focusing on efficiency and modern technologies to enhance the project's resilience and cost-effectiveness.

Q: What is causing the expected reduction in copper and gold production at Grasberg in 2028? A: Kathleen Quirk noted that the reduction is due to lower grades in 2028 compared to previous estimates. However, the operating rates and plans remain similar, with some sequencing and timing changes affecting the 2028 timeframe.

Q: Could you update us on the progress and timing for the Grasberg extension agreement with the Indonesian government? A: Kathleen Quirk stated that the terms were agreed upon in a memorandum of understanding in February, and a formal application was submitted in June. The process involves regulatory review, and while there is no set timeframe, they aim to complete it this year. Richard Adkerson added that meetings with Indonesian officials were positive, and there is a shared understanding of the importance of finalizing the agreement.

Q: Can you discuss the recent purchase of Cerro Verde shares and how it aligns with shareholder returns? A: Kathleen Quirk mentioned that Freeport opportunistically purchased shares in Cerro Verde, increasing their ownership to over 55%. While the float is small, they are interested in acquiring more if opportunities arise. This investment does not impact the share buyback program, which continues based on performance-based cash flow returns to shareholders.

Q: What is driving the improved production rates at Grasberg, and is there potential upside to the guidance? A: Kathleen Quirk explained that the production rates are in line with guidance, with June averaging 69,000 tons per day. The second half of the year will see steady production as they complete upgrades to the material handling system. Mark Johnson added that improvements in wet-to-dry draw points and ongoing upgrades will support future production increases.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.