Freeport-McMoRan Inc. Q1 FY2026 earnings call

Richard mentioned the company's 20-year history since combining with Phelps Dodge, strategy around copper. Kathleen reviewed first quarter performance, Grassberg restart progress, initiatives like innovative leach project, Baghdad mine expansion, Chile expansion. Mentioned returning $300 million to shareholders, solid balance sheet. Discussed priorities for 2026 including Grassberg ramp-up, value creation through execution, technology adoption.

Sales of copper, gold and unit costs were better than forecast. U.S. mining operations contributed two and a half times more operating income in the first quarter compared with last year's first quarter. Grassberg completed remediation and commenced phased ramp up, but faced material handling bottlenecks. Indonesia operations had one smelter operating, new smelter on standby. South America's Cerro Verde navigated flooding and mill efficiency challenges, El Abra had expansion plans.

Revised five-year production forecast for Grassburg District with approximate 9% reduction in copper and 7% in gold for 2026-2027. Net unit costs expected to average $1.95 per pound of copper for the year. Capital expenditures expected to be approximately $4.3 billion in 2026 and $4.5 billion in 2027.

Diesel price volatility, especially in Indonesia with significant impact. Sulfuric acid price volatility, though insulated by natural hedge from smelters. Grassberg ramp-up facing potential construction delays and material delivery delays. Rising energy costs and other consumables affecting U.S. business costs.

Q: Explore confidence in Grassburg new guidance and risks; A: Kathleen and Mark discussed resolution via installing regulators, risks of construction and material delays, but team confident.

Q: How issue of water buildup missed and why not add more drainage; A: Monitoring didn't detect significant concern, wet muck due to small moisture change, additional surface drainage initiatives.

Q: Variability of wet draw points and when identified; A: Currently 10 out of 23 panels don't meet ratio, dynamic situation, new info unfolded recently.

Q: Additive supply chains, scaling, and unit cost risks; A: Additive supply chain for current one is ready, next gen additives in lab, unit cost targets monitored due to input costs.

Q: Leaching patents philosophy; A: Priority to recover copper from stockpiles, potential to partner with others.

Q: Diesel sensitivity and other cost pressures; A: Higher diesel cost in forecast, some costs contractually negotiated, others spot market affected.

Q: Peru political election impact; A: Prepared to work with any administration, good relationship with local communities.

Q: Idle cost and Grassburg bottlenecks; A: Idle cost is accounting characterization, chutes are main bottleneck for Grassburg ramp-up.

Q: Wet/dry ratio in PB1S and Capex for modifications; A: Chart focuses on PB2 and 3, Capex for modifications is ~$60 - $70 million, no major impact on mine plan beyond 2030