Freeport-McMoRan Inc. Q1 FY2025 earnings call

• Team Freeport is executing well in a complex environment, focused on being a global leader in copper with large-scale assets and organic growth projects.
• In Indonesia, Grasberg district upstream mining and downstream processing progressing, smelter repairs ahead of schedule, precious metals refinery inaugurated by Indonesian president in March.
• In the US, progress on leach innovation projects, US copper sales have a premium due to potential tariffs, and focus on cost management.
• In South America, Cerro Verde had improved mill rates and recoveries, El Abra testing heat in leach process to boost production.
• Extensive copper resource position with various growth projects in development stages, including in the US, South America, and Indonesia.

Copper: Production in line with expectations, exceeded copper sales expectations. 2025 annual sales expected to be 1.6 billion pounds. Gold: Shipments impacted by timing in Q1, but annual sales expected to be 1.6 million ounces with a net cash credit of 47¢ per pound. Molybdenum: Cerro Verde operation had higher molybdenum volumes, mitigating the impact of lower ore grades.

• 2025 annual sales expected: 1.6 billion pounds of copper and 1.6 million ounces of gold at a net cash credit of 47¢ per pound.
• Capital expenditures expected to approximate $4.4 billion in 2025 and 2026.
• EBITDA ranges from over $11 billion per annum at $4 copper to over $15 billion per annum at $5 copper, with operating cash flows ranging accordingly. US copper premium currently ~13% above LME implies ~$800M annual benefit.

• Potential tariffs on imported copper from US investigation into copper market and national security impact, which could affect costs and market pricing.
• Operational risks such as maintenance impacts in Indonesia and workforce challenges in US operations.

Q: What is the expected cost reduction or efficiency gains in terms of volumes from the Baghdad autonomous haulage system when fully in place?

A: The autonomous haulage system has an attractive rate of return, capital cost ~$80M, and could allow leveraging to expand operations and potentially adopt at other US sites. Target to get US cash costs to ~$2.50 per pound by 2027.

Q: On Indonesia and the new smelter, are you aiming to proactively extend concentrate export permit? And how long to ramp up new smelter?

A: Have sufficient quota in approved March permit to meet sales targets, assuming export through September then using existing smelters. Smelter to start up in May and ramp up to 100% capacity over six months.

Q: On change in cost guidance for North America and impact of tariffs?

A: Tariffs impact components of cost base, working with suppliers to diversify supply chains. About 40% of US costs not subject to tariffs, 5% impact from purchased inputs, confident in mitigating impacts.

Q: On buyback, thoughts on ramping up buyback as cash flow improves?

A: Balancing buyback with strong balance sheet and growth plan, agree cash flow should improve, see disconnect between long-term value and stock performance, will be aggressive but balanced.

Q: On Baghdad expansion and discretionary CapEx?

A: Discretionary CapEx on tailings infrastructure not committing to project, deferrable if not moving forward now.

Q: On US policy and potential M&A in US?

A: Always look at opportunities, have sizable resource position in US, strong position, will consider synergies but already have strong US presence.

Q: On Indonesia cost guidance and duty in fourth quarter?

A: Net credit change mostly from byproduct credits, no projected duty in fourth quarter as using internal smelters.

Q: On leaching decline in Q1 and trajectory to reach 300M pounds per year?

A: Decline typical variability, using techniques like leach everywhere, deep raffinate drilling, additive tests, heat trials to reach 300M pounds per year, no reliance on China supply chain for additives.