Bagdad Operation New Concentrating Facilities Can Increase Copper Production 200-250 Million Pounds Per Year

PHOENIX, AZ – Freeport-McMoRan (FCX), President and Chief Executive Officer, Kathleen Quirk, said, “Freeport is strongly positioned for the future as a leading producer of copper with large scale, geographically diverse operations and an exciting portfolio of growth projects to provide additional supplies of copper to a growing market. As we enter 2026, our team has a clear focus on restoring operations at Grasberg safely and sustainably, and on continuing to build values in the Americas through our innovative growth and efficiency initiatives. Our experienced team is committed to value creation through strong execution of our plans, operational excellence and advancing opportunities for long-term organic growth.”
Copper fourth-quarter 2025 sales of 709 million pounds were 12% higher than October 2025 estimates of 635
million pounds, primarily reflecting a higher-than-expected reduction in inventories in Indonesia. As
expected, fourth-quarter 2025 sales were below fourth-quarter 2024 as a result of lower production in
Indonesia. Fourth-quarter 2025 production of 640 million pounds was significantly below fourth-quarter 2024 production of 1.0 billion pounds, primarily reflecting the impact of the September 2025 mud rush
incident on PTFI’s operations. Gold fourth-quarter 2025 sales of 80 thousand ounces were 33% higher than October 2025 estimates of 60 thousand ounces, primarily reflecting a higher-than-expected reduction in inventories in Indonesia. As expected, fourth-quarter 2025 sales were below fourth-quarter 2024 as a result of lower production in Indonesia. Fourth-quarter 2025 production of 65 thousand ounces was significantly below fourth-quarter
2024 production of 432 thousand ounces, reflecting the impact of the September 2025 mud rush incident on
PTFI’s operations. Molybdenum fourth-quarter 2025 sales of 22 million pounds approximated October 2025 estimates. Fourth-quarter 2025 sales exceeded fourth-quarter 2024 sales of 18 million pounds, primarily reflecting higher production.
FCX is incorporating new applications, technologies and data analytics to its leaching processes across its U.S. and South America operations. Incremental copper production from these initiatives totaled 60 million pounds in fourth-quarter 2025 and 214 million pounds for the year 2025. It continues to apply operational enhancements on a larger scale and is advancing testing of innovative technology to increase production from these initiatives. In late 2025, FCX achieved an annual run rate of approximately 240 million pounds of copper, and is targeting annual production of 300 million pounds of copper in 2026 from these initiatives. The Company believes there is potential for further significant increases in recoverable metal beyond the current annual target. It is deploying large-scale testing of an internally developed additive product at its Morenci operations with encouraging early results. In addition, FCX has identified other possible additives with strong potential and plans to apply heat with the new additives to further enhance recoveries. Continued success with these initiatives would be expected to contribute to additions in recoverable copper in leach stockpiles and
favorably impact average unit net cash costs.
In addition to its innovative leaching initiatives, FCX is pursuing opportunities to leverage new technologies
and analytic tools in automation and operating practices with a goal of improving operating efficiencies and reducing costs and capital intensity of its current operations and future development projects. FCX believes these leaching and technology initiatives are particularly important to its U.S. operations, which have lower ore grades.

FCX operates seven copper operations in the U.S.: Morenci, Bagdad, Safford (including Lone
Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. It also operates a copper smelter and
rod mill in Miami, Arizona, and copper refinery and rod mill in El Paso, Texas. In addition to copper, certain of these operations produce molybdenum concentrate, gold and silver. All of The Company’s U.S. operations are wholly owned, except for Morenci. FCX records its 72% undivided joint venture interest in Morenci using the proportionate consolidation method.
The Company has defined an opportunity to more than double the concentrator capacity of the Bagdad operation in
northwest Arizona. Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation. Completion of technical and economic studies in late 2023 and currently updating these studies in advance of a potential investment decision during 2026. These studies indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year.
Conversion of Bagdad’s haul truck fleet to autonomous haulage was completed in 2025, making Bagdad
the first major mine in the U.S. to operate a fully autonomous haulage fleet. FCX continues to optimize the
performance of the new autonomous fleet at Bagdad and is advancing projects to expand tailings facilities and local infrastructure to enhance optionality in the future expansion opportunity.
It continues to advance pre-feasibility studies in the Safford/Lone Star district to define a potential
significant expansion opportunity. Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a significant expansion project. FCX expects to complete these studies during 2026. The decision to proceed with and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors.
The Company also manages two copper operations in South America: Cerro Verde in Peru (55.08%-owned)
and El Abra in Chile (51%-owned). These operations are consolidated in FCX’s financial statements. In addition to
copper, the Cerro Verde mine produces molybdenum concentrate and silver.
At the El Abra operations in Chile, FCX has completed substantial drilling and evaluations and has identified a large sulfide reserve in support of a potential major mill project similar to the largescale concentrator at Cerro Verde. The project could result in the addition of over 700 million pounds of copper production per year. At December 31, 2025, FCX’s preliminary estimated consolidated recoverable proven and probable mineral reserves included approximately 17.5 billion pounds of copper associated with this potential mill project at El Abra.
It has advanced preparation of its permitting application and plans to submit an environmental impact
statement to Chile regulatory authorities in the first half of 2026. The decision to proceed with and timing of the potential project will take into account overall copper market conditions, required permitting and other factors.
PTFI (PT Freeport Indonesia) operates one of the world’s largest copper and gold mines at the Grasberg minerals district in Central Papua, Indonesia. PTFI produces copper concentrate that contains significant quantities of gold and silver. FCX has a 48.76% ownership interest in PTFI and manages its operations. With the completion of PTFI’s downstream processing facilities, PTFI is a fully integrated producer of refined copper and gold. It has
successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block
Cave, Deep Mill Level Zone (DMLZ) and Big Gossan) and related expansion of the milling facilities. At normal
operating rates, PTFI’s underground operations produce approximately 1.7 billion pounds of copper and 1.3 million
ounces of gold per year and are among the lowest cost operations in the world. Production of 1.0 billion pounds of copper and 0.9 million ounces of gold during 2025 primarily reflects the impact of the temporary suspension of
operations at the Grasberg Block Cave underground mine since September 2025, which is expected to restart in
second-quarter 2026.
PTFI is also conducting exploration in the Grasberg minerals district targeting the potential extension of
significant mineralization below the DMLZ underground mine. Grasberg Minerals District Phased Restart. Following the external mud rush incident on September 8, 2025, PTFI has been engaged in activities to address the incident and advance preparation for a safe and sustainable restart of operations.
In late October 2025, PTFI restarted operations at the unaffected DMLZ and Big Gossan underground mines. Investigations and remedial plans were completed in fourth-quarter 2025 and a phased restart and ramp-up
of the Grasberg Block Cave underground mine is anticipated to begin in second-quarter 2026. The plan includes a restart of Production Blocks 2 and 3 in second-quarter 2026 and the potential restart of operations in Production Block 1 during 2027. Based on current estimates, PTFI expects approximately 85% of its total production at normal operating rates to be restored in the second half of 2026. Key milestones required for initiating production in Production Blocks 2 and 3, including mud removal in mine workings, repairs of supporting infrastructure and installation of protective barriers, are progressing on schedule.
Since 2022, PTFI has conducted long-term mine development activities at its Kucing Liar deposit in the Grasberg minerals district. During 2025, PTFI completed studies to evaluate the potential to expand the footprint of the deposit which was previously designed to operate at a long-term rate of 90,000 metric tons of ore per day. The studies identified a low-cost expansion opportunity to increase Kucing Liar’s design capacity to 130,000 metric tons of ore per day and increase Kucing Liar’s reserves by approximately 20%. At December 31, 2025, PTFI’s preliminary estimates of Kucing Liar reserves approximate 8 billion pounds of copper and 8 million ounces of gold to be recovered through 2041, increased from previous estimates of 7 billion pounds of copper and 6 million ounces of gold. Under the new design, average Kucing Liar production at full rates would approximate 750
million pounds of copper and 735 thousand ounces of gold (an increase of more than 35% from prior estimates).
The economic studies took into account an approximate 10% increase in Kucing Liar capital ($0.5 billion), impact to operating rates at the Grasberg Block Cave underground mine and deferral of capital expenditures associated with the processing of higher pyrite ore.
In July 2025, PTFI’s smelter in Eastern Java, Indonesia, produced its first copper cathode. The precious metals refinery commenced operations in December 2024 and operated on a limited basis during fourth-quarter 2025, processing anode slimes from PT Smelting, PTFI’s 66%-owned smelter and refinery in Gresik, Indonesia.
Smelting operations in Indonesia were temporarily suspended during fourth-quarter 2025 as a result of
limited concentrate availability following the September 2025 mud rush incident. PT Smelting restarted operations in late December 2025 and is expected to operate at reduced rates until the anticipated second-quarter 2026 restart of mining at the Grasberg Block Cave underground mine. Shipments to PTFI’s newly commissioned smelter are
expected to recommence in the second half of 2026, pending the successful ramp up of mining operations. FCX
expects higher variability between PTFI’s production and sales until its downstream processing facilities achieve
normalized operating rates.
With the completion of PTFI’s downstream processing facilities during 2025, FCX
and PTFI have advanced discussions with the Indonesia government for a long-term extension of PTFI’s operating
rights beyond the current expiration in 2041. An extension would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly attractive Grasberg minerals district.
PTFI is preparing its application for a long-term extension expected to span the life of the resource, which is
expected to be submitted during 2026. In connection with the extension, PTFI would pursue additional exploration,
conduct studies for future additional development and expand its social programs. FCX expects to maintain its
ownership interest of approximately 49% through 2041 and would transfer an additional interest in PTFI to a stateowned enterprise beginning in 2042, resulting in FCX’s interest post-2041 totaling approximately 37%. FCX expects the existing governance agreements would continue over the life of the resource.
The Company operates two wholly owned primary molybdenum operations in Colorado: the Climax open-pit mine and the Henderson underground mine. The Climax and Henderson 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 Climax and Henderson mines and at FCX’s U.S. copper mines and Cerro Verde mine, is processed at FCX’s conversion facilities.
Production from the Molybdenum mines totaled 11 million pounds of molybdenum in fourth-quarter 2025 and 9 million pounds in fourth-quarter 2024. FCX’s consolidated molybdenum sales and average realized prices include sales of molybdenum produced at the primary molybdenum operations and at FCX’s U.S. copper mines and Cerro Verde mine.
FCX has significant mineral reserves, mineral resources and future development opportunities within its
portfolio of mining assets. It’s preliminary estimated consolidated recoverable proven and probable mineral
reserves from its mines at December 31, 2025, include 112.3 billion pounds of copper, 20.6 million ounces of gold
and 3.5 billion pounds of molybdenum. In addition to the preliminary estimated consolidated recoverable proven and probable mineral reserves, FCX’s preliminary estimated consolidated mineral resources (including measured, indicated and inferred resources) at December 31, 2025, totaled 165 billion pounds of incremental contained copper.