United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark one)
UNITED STATES☒
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
For the quarterly period ended September 30, 2017
OR☐
[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period fromto
Commission File Number:
For the transition period from   to
Commission file number: 001-11307-01
fcx_logoa01a01a03a46.jpg
Freeport-McMoRan Inc.
(Exact name of registrant as specified in its charter)
Delaware74-2480931
(State or other jurisdiction of(I.R.S. Employer Identification No.)
incorporation or organization)
333 North Central Avenue
Phoenix AZAZ85004-2189
(Address of principal executive offices)(Zip Code)
(602) 366-8100
(Registrant’s telephone number, including area code)
(602) 366-8100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.10 per shareFCXThe 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
þ Yes  o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted 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 and post such files).
þ☑ Yes  o☐ 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“emerging growth company"company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerþ
☑
Accelerated filer¨
☐
Non-accelerated filer  ¨(Do not check if a smaller reporting company)
☐
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).
o☐ Yes  þ☑ No

On October 31, 2017,2023, there were issued and outstanding 1,447,590,6681,433,977,244 shares of the registrant’s common stock, par value $0.10 per share.


FREEPORT-McMoRan INC.


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 OperationsIncome (Unaudited)
4
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
5
Consolidated Statements of Cash Flows (Unaudited)
6
Consolidated StatementStatements of Equity (Unaudited)
7
Notes to Consolidated Financial Statements (Unaudited)
89
Review Report of Independent Registered Public Accounting Firm
3325
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
3426
Item 3. Quantitative and Qualitative Disclosures About Market Risk
7568
Item 4. Controls and Procedures
7568
Part II. Other Information
7568
Item 1. Legal Proceedings
7568
Item 1A. Risk Factors
7568
Item 2. Unregistered Sales of Equity Securities, and Use of Proceeds, and Issuer Purchases of Equity Securities
7670
Item 4. Mine Safety Disclosures
7670
Item 6. Exhibits
77
Signature
S-1

Table of Contents

Part I.
Item 5. Other Information
FINANCIAL INFORMATION
70

Item 1.6. Exhibits
Financial Statements.71
Signature
S-1


FREEPORT-McMoRan INC.
2
Table of Contents
Part I.FINANCIAL INFORMATION

Item 1.Financial Statements.

Freeport-McMoRan Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30,
2023		December 31,
2022
 (In Millions)
ASSETS  
Current assets:  
Cash and cash equivalents$5,745 $8,146 
Restricted cash and cash equivalents697 111 
Trade accounts receivable792 1,336 
Income and other tax receivables488 459 
Inventories: 
Product2,415 1,833 
Materials and supplies, net2,131 1,964 
Mill and leach stockpiles1,403 1,383 
Other current assets406 381 
Total current assets14,077 15,613 
Property, plant, equipment and mine development costs, net34,535 32,627 
Long-term mill and leach stockpiles1,327 1,252 
Other assets1,709 1,601 
Total assets$51,648 $51,093 
LIABILITIES AND EQUITY  
Current liabilities:  
Accounts payable and accrued liabilities$3,724 $4,027 
Accrued income taxes489 744 
Current portion of environmental and asset retirement obligations (AROs)395 320 
Dividends payable217 217 
Current portion of debt35 1,037 
Total current liabilities4,860 6,345 
Long-term debt, less current portion9,370 9,583 
Environmental and AROs, less current portion4,645 4,463 
Deferred income taxes4,399 4,269 
Other liabilities1,697 1,562 
Total liabilities24,971 26,222 
Equity:  
Stockholders’ equity:  
Common stock162 161 
Capital in excess of par value24,833 25,322 
Accumulated deficit(2,447)(3,907)
Accumulated other comprehensive loss(317)(320)
Common stock held in treasury(5,772)(5,701)
Total stockholders’ equity16,459 15,555 
Noncontrolling interests10,218 9,316 
Total equity26,677 24,871 
Total liabilities and equity$51,648 $51,093 
 September 30,
2017		 December 31,
2016
 (In millions)
ASSETS   
Current assets:   
Cash and cash equivalents$4,957
 $4,245
Trade accounts receivable1,024
 1,126
Income and other tax receivables522
 879
Inventories:   
Materials and supplies, net1,276
 1,306
Mill and leach stockpiles1,393
 1,338
Product1,188
 998
Other current assets241
 199
Assets held for sale549
 344
Total current assets11,150
 10,435
Property, plant, equipment and mine development costs, net22,914
 23,219
Oil and gas properties, subject to amortization, less accumulated amortization and impairments20
 74
Long-term mill and leach stockpiles1,453
 1,633
Other assets1,790
 1,956
Total assets$37,327
 $37,317
    
LIABILITIES AND EQUITY   
Current liabilities:   
Accounts payable and accrued liabilities$2,098
 $2,393
Current portion of debt2,215
 1,232
Accrued income taxes464
 66
Current portion of environmental and asset retirement obligations419
 369
Liabilities held for sale321
 205
Total current liabilities5,517
 4,265
Long-term debt, less current portion12,567
 14,795
Deferred income taxes3,771
 3,768
Environmental and asset retirement obligations, less current portion3,498
 3,487
Other liabilities1,744
 1,745
Total liabilities27,097
 28,060
    
Equity:   
Stockholders’ equity:   
Common stock158
 157
Capital in excess of par value26,743
 26,690
Accumulated deficit(15,763) (16,540)
Accumulated other comprehensive loss(443) (548)
Common stock held in treasury(3,722) (3,708)
Total stockholders’ equity6,973
 6,051
Noncontrolling interests3,257
 3,206
Total equity10,230
 9,257
Total liabilities and equity$37,327
 $37,317


The accompanying notes are an integral part of these consolidated financial statements.
3
Table of Contents

FREEPORT-McMoRan INC.Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF OPERATIONSINCOME (Unaudited)

 Three Months Ended Nine Months Ended
 September 30, September 30,
 2017 2016 2017 2016
 (In millions, except per share amounts)
Revenues$4,310
 $3,877
 $11,362
 $10,453
Cost of sales:       
Production and delivery2,802
 2,529
 7,497
 7,984
Depreciation, depletion and amortization418
 643
 1,257
 1,937
Impairment of oil and gas properties—
 239
 —
 4,317
Total cost of sales3,220
 3,411
 8,754
 14,238
Selling, general and administrative expenses106
 110
 366
 408
Mining exploration and research expenses27
 13
 61
 46
Environmental obligations and shutdown costs (credits)73
 (3) 81
 18
Net gain on sales of assets(33) (13) (66) (762)
Total costs and expenses3,393
 3,518
 9,196
 13,948
Operating income (loss)917
 359
 2,166
 (3,495)
Interest expense, net(304) (187) (633) (574)
Net gain on exchanges and early extinguishment of debt11
 15
 8
 51
Other income (expense), net2
 (10) 36
 54
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings626
 177
 1,577
 (3,964)
(Provision for) benefit from income taxes(387) 114
 (747) (79)
Equity in affiliated companies’ net earnings3
 1
 6
 9
Net income (loss) from continuing operations242
 292
 836
 (4,034)
Net income (loss) from discontinued operations3
 (6) 50
 (191)
Net income (loss)245
 286
 886
 (4,225)
Net loss (income) attributable to noncontrolling interests:       
Continuing operations35
 (37) (106) (146)
Discontinued operations—
 (22) (4) (44)
Preferred dividends attributable to redeemable noncontrolling interest—
 (10) —
 (31)
Net income (loss) attributable to common stockholders$280
 $217
 $776
 $(4,446)
        
Basic and diluted net income (loss) per share attributable to common stockholders:       
Continuing operations$0.19
 $0.18
 $0.50
 $(3.27)
Discontinued operations—
 (0.02) 0.03
 (0.18)
 $0.19
 $0.16
 $0.53
 $(3.45)
        
Weighted-average common shares outstanding:       
Basic1,448
 1,346
 1,447
 1,289
        
Diluted1,454
 1,351
 1,453
 1,289
        
Three Months EndedNine Months Ended
September 30,September 30,
 2023202220232022
(In Millions, Except Per Share Amounts)
Revenues$5,824 $5,003 $16,950 $17,022 
Cost of sales:  
Production and delivery3,548 3,366 10,260 9,519 
Depreciation, depletion and amortization (DD&A)533 508 1,479 1,504 
Metals inventory adjustments5 25 7 43 
Total cost of sales4,086 3,899 11,746 11,066 
Selling, general and administrative expenses118 98 359 313 
Mining exploration and research expenses30 38 103 87 
Environmental obligations and shutdown costs98 6 239 51 
Net gain on sales of assets— — — (2)
Total costs and expenses4,332 4,041 12,447 11,515 
Operating income1,492 962 4,503 5,507 
Interest expense, net(96)(140)(418)(423)
Net gain on early extinguishment of debt5 20 10 28 
Other income, net71 25 183 67 
Income before income taxes and equity in affiliated companies’ net earnings1,472 867 4,278 5,179 
Provision for income taxes(508)(315)(1,546)(1,710)
Equity in affiliated companies’ net earnings— 8 12 33 
Net income964 560 2,744 3,502 
Net income attributable to noncontrolling interests(510)(156)(1,284)(731)
Net income attributable to common stockholders$454 $404 $1,460 $2,771 
Net income per share attributable to common stockholders:
Basic$0.31 $0.28 $1.01 $1.91 
Diluted$0.31 $0.28 $1.01 $1.90 
Weighted-average shares of common stock outstanding:
Basic1,435 1,431 1,434 1,444 
Diluted1,443 1,439 1,443 1,455 
Dividends declared per share of common stock$0.15 $0.15 $0.45 $0.45 
 
The accompanying notes are an integral part of these consolidated financial statements.


4
Table of Contents

FREEPORT-McMoRan INC.Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

Three Months EndedNine Months Ended
September 30,September 30,
2023202220232022
(In Millions)
Net income$964 $560 $2,744 $3,502 
Other comprehensive income, net of taxes:
Defined benefit plans:
Prior service costs arising during the period— — — (1)
Amortization of unrecognized amounts included in net periodic benefit costs1 1 3 5 
Foreign exchange losses(1)— — (1)
Other comprehensive income— 1 3 3 
Total comprehensive income964 561 2,747 3,505 
Total comprehensive income attributable to noncontrolling interests(509)(156)(1,284)(731)
Total comprehensive income attributable to common stockholders$455 $405 $1,463 $2,774 
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2017 2016 2017 2016
  (In millions)
Net income (loss) $245
 $286
 $886
 $(4,225)
         
Other comprehensive income, net of taxes:        
Unrealized gains on securities —
 2
 2
 3
Defined benefit plans:        
Actuarial gains arising during the period, net of taxes of $48 million for the nine months ended September 30, 2017 —
 —
 69
 —
Amortization or curtailment of unrecognized amounts included in net periodic benefit costs 12
 11
 42
 34
Foreign exchange gains (losses) 1
 (1) —
 (11)
Other comprehensive income 13
 12
 113
 26
         
Total comprehensive income (loss) 258
 298
 999
 (4,199)
Total comprehensive loss (income) attributable to noncontrolling interests 35
 (59) (118) (189)
Preferred dividends attributable to redeemable noncontrolling interest —
 (10) —
 (31)
Total comprehensive income (loss) attributable to common stockholders $293
 $229
 $881
 $(4,419)


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






5
Table of Contents

Freeport-McMoRan Inc.
FREEPORT-McMoRan INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
September 30,
 20232022
 (In Millions)
Cash flow from operating activities:  
Net income$2,744 $3,502 
Adjustments to reconcile net income to net cash provided by operating activities:  
DD&A1,479 1,504 
Metals inventory adjustments7 43 
Net gain on sales of assets— (2)
Stock-based compensation89 75 
Net charges for environmental and AROs, including accretion383 180 
Payments for environmental and AROs(181)(197)
Net charges for defined pension and postretirement plans44 28 
Pension plan contributions(10)(52)
Net gain on early extinguishment of debt(10)(28)
Deferred income taxes130 83 
Deferred profit recognized on PT Freeport Indonesia’s (PT-FI) sales to PT Smelting(112)(34)
Other, net109 (52)
Changes in working capital and other: 
Accounts receivable550 456 
Inventories(738)(184)
Other current assets7 (71)
Accounts payable and accrued liabilities(180)84 
Accrued income taxes and timing of other tax payments(352)(1,265)
Net cash provided by operating activities3,959 4,070 
Cash flow from investing activities: 
Capital expenditures: 
North America copper mines(545)(430)
South America(259)(203)
Indonesia mining(1,274)(1,148)
Indonesia smelter projects(1,193)(517)
Molybdenum mines(43)(16)
Other(148)(108)
Proceeds from sales of assets16 102 
Loans to PT Smelting for expansion(109)(51)
Other, net(29)(10)
Net cash used in investing activities(3,584)(2,381)
Cash flow from financing activities:  
Proceeds from debt1,186 5,366 
Repayments of debt(2,397)(4,073)
Cash dividends and distributions paid:
Common stock(647)(652)
Noncontrolling interests(407)(625)
Treasury stock purchases— (1,347)
Contributions from noncontrolling interests50 142 
Proceeds from exercised stock options41 106 
Payments for withholding of employee taxes related to stock-based awards(50)(55)
Debt financing costs and other, net(2)(41)
Net cash used in financing activities(2,226)(1,179)
Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents(1,851)510 
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year8,390 8,314 
Cash, cash equivalents and restricted cash and cash equivalents at end of period$6,539 $8,824 
 Nine Months Ended 
 September 30, 
 2017 2016 
 (In millions) 
Cash flow from operating activities:    
Net income (loss)$886
 $(4,225) 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation, depletion and amortization1,257
 2,017
 
Net charges for Cerro Verde royalty dispute359
 —
 
Payments for Cerro Verde royalty dispute(32) (20) 
Impairment of oil and gas properties—
 4,317
 
Oil and gas non-cash drillship settlements/idle rig costs and other adjustments(33) 705
 
Net gain on sales of assets(66) (762) 
Net charges for environmental and asset retirement obligations, including accretion196
 149
 
Payments for environmental and asset retirement obligations(85) (190) 
Net charges for defined pension and postretirement plans95
 78
 
Pension plan contributions(152) (44) 
Net gain on exchanges and early extinguishment of debt(8) (51) 
Deferred income taxes77
 (22) 
(Gain) loss on disposal of discontinued operations(41) 182
 
Decrease (increase) in long-term mill and leach stockpiles181
 (84) 
Oil and gas contract settlement payments(70) —
 
Other, net59
 61
 
Changes in working capital and other tax payments, excluding amounts from dispositions:    
Accounts receivable420
 257
 
Inventories(314) 251
 
Other current assets(17) (120) 
Accounts payable and accrued liabilities(93) (80) 
Accrued income taxes and changes in other tax payments399
 175
 
Net cash provided by operating activities3,018
 2,594
 
     
Cash flow from investing activities:    
Capital expenditures:    
North America copper mines(106) (87) 
South America(65) (332) 
Indonesia(663) (706) 
Molybdenum mines(4) (2) 
Other, including oil and gas operations(182) (1,182) 
Net proceeds from the sale of additional interest in Morenci—
 996
 
Net proceeds from sales of other assets68
 410
 
Other, net(22) 9
 
Net cash used in investing activities(974) (894) 
     
Cash flow from financing activities:    
Proceeds from debt795
 3,463
 
Repayments of debt(1,991) (4,539) 
Net proceeds from sale of common stock—
 442
 
Cash dividends paid:    
Common stock(2) (5) 
Noncontrolling interests(67) (87) 
Stock-based awards net payments(10) (5) 
Debt financing costs and other, net(12) (17) 
Net cash used in financing activities(1,287) (748) 
     
Net increase in cash and cash equivalents757
 952
 
Increase in cash and cash equivalents in assets held for sale(45) (43) 
Cash and cash equivalents at beginning of year4,245
 177
 
Cash and cash equivalents at end of period$4,957
 $1,086
 
The accompanying notes are an integral part of these consolidated financial statements.
Table of Contents

FREEPORT-McMoRan INC.
CONSOLIDATED STATEMENT OF EQUITY (Unaudited)

 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, 20161,574
 $157
 $26,690
 $(16,540) $(548) 129
 $(3,708) $6,051
 $3,206
 $9,257
Exercised and issued stock-based awards4
 1
 4
 —
 —
 —
 —
 5
 —
 5
Stock-based compensation—
 —
 49
 —
 —
 —
 —
 49
 —
 49
Tender of shares for stock-based awards—
 —
 —
 —
 —
 1
 (14) (14) —
 (14)
Dividends—
 —
 —
 1
 —
 —
 —
 1
 (67) (66)
Net income attributable to common stockholders—
 —
 —
 776
 —
 —
 —
 776
 —
 776
Net income attributable to noncontrolling interests, including discontinued operations—
 —
 —
 —
 —
 —
 —
 —
 110
 110
Other comprehensive income—
 —
 —
 —
 105
 —
 —
 105
 8
 113
Balance at September 30, 20171,578
 $158
 $26,743
 $(15,763) $(443) 130
 $(3,722) $6,973
 $3,257
 $10,230
The accompanying notes are an integral part of these consolidated financial statements.

6
Table of Contents

Freeport-McMoRan Inc.
FREEPORT-McMoRan INC.CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
THREE MONTHS ENDED SEPTEMBER 30
 Stockholders’ Equity  
Common StockAccum-ulated DeficitAccumu-
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, 20231,618 $162 $25,028 $(2,901)$(318)184 $(5,769)$16,202 $9,825 $26,027 
Exercised and issued stock-based awards— — 7 — — — — 7 — 7 
Stock-based compensation, including the tender of shares— — 14 — — — (3)11 — 11 
Dividends— — (216)— — — — (216)(116)(332)
Net income attributable to common stockholders— — — 454 — — — 454 — 454 
Net income attributable to noncontrolling interests— — — — — — — — 510 510 
Other comprehensive income (loss)— — — — 1 — — 1 (1)— 
Balance at September 30, 20231,618 $162 $24,833 $(2,447)$(317)184 $(5,772)$16,459 $10,218 $26,677 
 Stockholders’ Equity  
Common StockAccum-ulated DeficitAccumu-
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, 20221,612 $161 $25,661 $(5,008)$(386)177 $(5,539)$14,889 $9,158 $24,047 
Stock-based compensation, including the tender of shares— — 12 — — — — 12 — 12 
Treasury stock purchases— — — — — 6 (162)(162)— (162)
Dividends— — (213)— — — — (213)(112)(325)
Contributions from noncontrolling interests— — 23 — — — — 23 25 48 
Net income attributable to common stockholders— — — 404 — — — 404 — 404 
Net income attributable to noncontrolling interests— — — — — — — — 156 156 
Other comprehensive income— — — — 1 — — 1 — 1 
Balance at September 30, 20221,612 $161 $25,483 $(4,604)$(385)183 $(5,701)$14,954 $9,227 $24,181 









7
Table of Contents
Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (continued)
NINE MONTHS ENDED SEPTEMBER 30
 Stockholders’ Equity  
Common StockAccum-ulated DeficitAccumu-
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, 20221,613 $161 $25,322 $(3,907)$(320)183 $(5,701)$15,555 $9,316 $24,871 
Exercised and issued stock-based awards5 1 62 — — — — 63 — 63 
Stock-based compensation, including the tender of shares— — 74 — — 1 (71)3 (1)2 
Dividends— — (649)— — — — (649)(407)(1,056)
Contributions from noncontrolling interests— — 24 — — — — 24 26 50 
Net income attributable to common stockholders— — — 1,460 — — — 1,460 — 1,460 
Net income attributable to noncontrolling interests— — — — — — — — 1,284 1,284 
Other comprehensive income— — — — 3 — — 3 — 3 
Balance at September 30, 20231,618 $162 $24,833 $(2,447)$(317)184 $(5,772)$16,459 $10,218 $26,677 
 Stockholders’ Equity  
Common StockAccum-ulated DeficitAccumu-
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, 20211,603 $160 $25,875 $(7,375)$(388)146 $(4,292)$13,980 $9,039 $23,019 
Exercised and issued stock-based awards9 1 112 — — — — 113 — 113 
Stock-based compensation, including the tender of shares— — 75 — — 2 (62)13 (11)2 
Treasury stock purchases— — — — — 35 (1,347)(1,347)— (1,347)
Dividends— — (648)— — — — (648)(605)(1,253)
Contributions from noncontrolling interests— — 69 — — — — 69 73 142 
Net income attributable to common stockholders— — — 2,771 — — — 2,771 — 2,771 
Net income attributable to noncontrolling interests— — — — — — — — 731 731 
Other comprehensive income— — — — 3 — — 3 — 3 
Balance at September 30, 20221,612 $161 $25,483 $(4,604)$(385)183 $(5,701)$14,954 $9,227 $24,181 

The accompanying notes are an integral part of these consolidated financial statements.
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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, 2016.2022 (2022 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. With the exception of the accounting for discontinued operations, assets held for sale, the remeasurement of a pension plan and charges related to a continuing royalty dispute with respect to historical periods at FCX’s mine in Peru, allAll such adjustments are, in the opinion of management, of a normal recurring nature. As a result of FCX’s sale of its interest in TF Holdings Limited (TFHL), FCX has reported TFHL as discontinued operations for all periods presented in the unaudited consolidated financial statements (refer to Note 2). Operating results for the nine-month period ended September 30, 2017,2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.2023.


Indonesia Mining.PT-FI. FCX’s economic ownership interest in PT-FI is 48.76% and prior to January 1, 2023, FCX’s economic interest in PT-FI approximated 81%. As discussed in Note 3 of FCX’s 2022 Form 10-K, in accordance with provisions pertaining to PT-FI’s shareholders agreement, FCX's first-quarter 2023 net income included a result of the first-quarter 2017 regulatory restrictions and uncertainties regarding long-term investment stability, PT Freeport Indonesia (PT-FI) took actions$35 million net benefit associated with PT-FI sales volumes that were attributed to adjustFCX at its cost structure, reduce its workforce and slow investments in its underground development projects and new smelter. These actions included workforce reductions through furlough and voluntary retirement programs. Following the furlough and voluntary retirement programs, 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 laws and regulations. As a result, PT-FI recorded charges to operating income for employee severance and related costs totaling $9 million for third-quarter 2017 and $113 million for the first nine months of 2017.previous approximate 81% economic ownership interest.


Additionally, because of the significant reduction in workforce, PT-FI was required to remeasure its pension assets and pension benefit obligation as of June 30, 2017. The discount rate and rate of compensation increase used for the June 30, 2017, remeasurement were 7.50 percent and 4.00 percent, respectively, compared to the December 31, 2016, discount rate of 8.25 percent and the rate of compensation increase of 8.00 percent. The expected long-term rate of return on the plan assets was unchanged (7.75 percent). The remeasurement and curtailment resulted in the projected benefit obligation declining by $145 million and plan assets declining by $21 million. In addition, PT-FI recognized a curtailment loss of $4 million in second-quarter 2017 and for the first nine months of 2017. As ofSubsequent Events. FCX evaluated events after September 30, 2017,2023, and through the funded status of PT-FI’s pension plan was a net asset of $36 million (included in other assets indate the consolidated balance sheet), compared with a net liability of $90 million (includedfinancial statements were issued and determined any events and transactions occurring during this period that would require recognition or disclosure are appropriately addressed in other liabilities in thethese consolidated balance sheet) as of December 31, 2016.financial statements.


Oil and Gas Properties. During 2016, FCX Oil & Gas LLC (FM O&G, a wholly owned subsidiary of FCX) determined the carrying values of certain of its unevaluated properties were impaired. During the first nine months of 2016, FM O&G transferred $3.2 billion of costs (including $3.1 billion in first-quarter 2016) associated with unevaluated properties to the full cost pool, mostly reflecting impairment of the carrying values of unevaluated properties. The transfer of unevaluated properties to the full cost pool, along with the impact of the reduction in twelve-month historical prices and reserve revisions in 2016 caused net capitalized costs to exceed the related ceiling test limitation under full cost accounting rules. As a result, FM O&G recognized impairment charges of $239 million in third-quarter 2016 and $4.3 billion for the first nine months of 2016. Refer to Note 1 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion.


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NOTE 2. DISPOSITIONS

TF Holdings Limited - Discontinued Operations.FCX hada70 percent interest in TFHL, which owns 80 percent of Tenke Fungurume Mining S.A. (TFM or Tenke) located in the Democratic Republic of Congo (DRC). On November 16, 2016, FCX completed the sale of its interest in TFHL to China Molybdenum Co., Ltd. (CMOC) for $2.65 billion in cash (before closing adjustments) and contingent consideration of up to $120 million in cash, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, both during calendar years 2018 and 2019. The contingent consideration is considered a derivative, and at September 30, 2017, the related fair value of $58 million was recorded in other assets on the consolidated balance sheets. During the first nine months of 2017, the fair value of the contingent consideration derivative increased by $45 million ($3 million in third-quarter 2017), primarily resulting from higher cobalt prices, and was recorded in net income (loss) from discontinued operations.

In accordance with accounting guidance, FCX has reported the results of operations of TFHL as discontinued operations in the consolidated statements of operations. The consolidated statements of cash flows are reported on a combined basis without separately presenting discontinued operations.

Net income (loss) from discontinued operations in the consolidated statements of operations consists of the following (in millions):
 Three Months Ended Nine Months Ended 
 September 30, September 30, 
 2017 2016 2017 2016 
Revenues$—
 $261
a 
$13
a 
$819
a 
Costs and expenses:        
Production and delivery costs—
 248
 —
 730
 
Depreciation, depletion and amortization—

—
 —
 80
 
Interest expense allocated from parent—
 12
b 
—
 33
b 
Other costs and expenses, net—
 4
 —
 10
 
Income (loss) before income taxes and net gain (loss) on disposal—
 (3) 13
 (34) 
Net gain (loss) on disposal3
c 
(5)
d 
41
c 
(182)
d 
Net income (loss) before income taxes3
 (8) 54
 (216) 
Benefit from (provision for) income taxes—
 2
 (4) 25
 
Net income (loss) from discontinued operations$3
 $(6) $50
 $(191) 
a.In accordance with accounting guidance, amounts are net of (eliminations) recognition of intercompany sales totaling $(53) million in third-quarter 2016, $13 million for the first nine months of 2017 and $(125) million for the first nine months of 2016.
b.In accordance with accounting guidance, interest associated with FCX’s term loan that was required to be repaid as a result of the sale of TFHL has been allocated to discontinued operations.
c.Includes a gain of $3 million in third-quarter 2017 and $45 million for the first nine months of 2017 associated with the change in the fair value of contingent consideration.
d.In accordance with accounting guidance, an estimated loss on disposal was recorded and adjusted through closing of the transaction in November 2016.

Cash flows from discontinued operations included in the consolidated statements of cash flows for the nine months ended September 30, 2016, follow (in millions):
Net cash provided by operating activities $213
Net cash used in investing activities (71)
Net cash used in financing activities (103)
Increase in cash and cash equivalents in assets held for sale $39


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Oil and Gas Operations.On July 31, 2017, FM O&G sold certain property interests in the Gulf of Mexico Shelf for cash consideration of $62 million, before closing adjustments, with an effective date of April 1, 2017. On March 17, 2017, FM O&G sold property interests in the Madden area in central Wyoming for cash consideration of $17.5 million, before closing adjustments. Under the full cost accounting rules, the sales resulted in the recognition of gains of $33 million in third-quarter 2017 and $49 million for the first nine months of 2017 because the reserves associated with these properties were significant to the full cost pool.

On June 17, 2016, FM O&G sold certain oil and gas royalty interests for cash consideration of $102 million, before closing adjustments. In addition, on July 25, 2016, FM O&G sold its Haynesville shale assets for cash consideration of $87 million, before closing adjustments. Under the full cost accounting rules, the proceeds from these transactions were recorded as a reduction to capitalized oil and gas properties, with no gain or loss recognition for the first nine months of 2016 because the reserves were not significant to the full cost pool.

Morenci. On May 31, 2016, FCX sold a 13 percent undivided interest in its Morenci unincorporated joint venture to SMM Morenci, Inc. for $1.0 billion in cash. FCX recorded a $576 million gain for the first nine months of 2016 and used losses to offset cash taxes on the transaction. A portion of the proceeds from the transaction was used to repay borrowings under FCX's unsecured bank term loan and revolving credit facility. As a result of the transaction, the unincorporated joint venture is owned 72 percent by FCX, 15 percent by Sumitomo Metal Mining Arizona, Inc. and 13 percent by SMM Morenci, Inc.

Timok. On May 2, 2016, Freeport Minerals Corporation (FMC), a wholly owned subsidiary of FCX, sold an interest in the Timok exploration project in Serbia to Global Reservoir Minerals Inc. (now known as Nevsun Resources, Ltd.) for consideration of $135 million in cash and contingent consideration of up to $107 million payable to FCX in stages upon achievement of defined development milestones. As a result of this transaction, FCX recorded a gain of $133 million for the first nine months of 2016, and no amounts were recorded for contingent consideration under the loss recovery approach.

Assets Held for Sale. Freeport Cobalt includes the large-scale cobalt refinery in Kokkola, Finland, and the related sales and marketing business, in which FCX owns an effective 56 percent interest. Kisanfu is a copper and cobalt exploration project, located near Tenke, in which FCX holds a 100 percent interest. As a result of the sale of TFHL, FCX expects to sell its interest in Freeport Cobalt and Kisanfu, and the assets and liabilities of Freeport Cobalt and Kisanfu are classified as held for sale in the consolidated balance sheets. During the first nine months of 2017, a favorable adjustment of $13 million was recorded in net gain on sales of assets in the consolidated statements of operations associated with the estimated fair value less costs to sell for the Kisanfu exploration project. The adjustment was limited to the reduction in the carrying value when the Kisanfu exploration project was initially classified as held for sale in November 2016.

NOTE 3. 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, unless their effect would be anti-dilutive.antidilutive.

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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 EndedNine Months Ended
September 30,September 30,
 2023202220232022
Net income$964 $560 $2,744 $3,502 
Net income attributable to noncontrolling interests(510)(156)(1,284)(731)
Undistributed dividends and earnings allocated to participating securities(5)(5)(5)(6)
Net income attributable to common stockholders$449 $399 $1,455 $2,765 
Basic weighted-average shares of common stock outstanding1,435 1,431 1,434 1,444 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)8 8 9 11 
Diluted weighted-average shares of common stock outstanding1,443 1,439 1,443 1,455 
Net income per share attributable to common stockholders:
Basic$0.31 $0.28 $1.01 $1.91 
Diluted$0.31 $0.28 $1.01 $1.90 
 Three Months Ended Nine Months Ended 
 September 30, September 30, 
 2017 2016 2017 2016 
Net income (loss) from continuing operations$242
 $292
 $836
 $(4,034) 
Net loss (income) from continuing operations attributable to noncontrolling interests35
 (37) (106) (146) 
Preferred dividends on redeemable noncontrolling interest—
 (10) —
 (31) 
Undistributed earnings allocated to participating securities(3) (3) (3) (3) 
Net income (loss) from continuing operations attributable to common stockholders$274
 $242
 $727
 $(4,214) 
         
Net income (loss) from discontinued operations$3
 $(6) $50
 $(191) 
Net income from discontinued operations attributable to noncontrolling interests—
 (22) (4) (44) 
Net income (loss) from discontinued operations attributable to common stockholders$3
 $(28) $46
 $(235) 
         
         
Net income (loss) attributable to common stockholders$277
 $214
 $773
 $(4,449) 
         
         
Basic weighted-average shares of common stock outstanding1,448
 1,346
 1,447
 1,289
 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units6
 5
 6
 —
a 
Diluted weighted-average shares of common stock outstanding1,454
 1,351
 1,453
 1,289
 
         
Basic and diluted net income (loss) per share attributable to common stockholders:        
Continuing operations$0.19
 $0.18
 $0.50
 $(3.27) 
Discontinued operations—
 (0.02) 0.03
 (0.18) 
 $0.19
 $0.16
 $0.53
 $(3.45) 
         

a.Excludes 12 million shares of common stock for the first nine months of 2016
Shares associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and restricted stock units 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 38 millionThere were no shares of common stock wereassociated with outstanding stock options excluded for third-quarter 2017, 46 million for third-quarter 2016, 42 million forin the
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third quarter and first nine months of 20172023, and 463 million shares and 1 million shares excluded for the third quarter and first nine months of 2016.2022, respectively.



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NOTE 4.3. INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES


The components of inventories follow (in millions):
September 30,
2023		December 31, 2022
Current inventories:
Raw materials (primarily copper concentrate)$467 $443 
Work-in-process219 221 
Finished goodsa
1,729 1,169 
Total product$2,415 $1,833 
Total materials and supplies, netb
$2,131 $1,964 
Mill stockpiles$165 $216 
Leach stockpiles1,238 1,167 
Total current mill and leach stockpiles$1,403 $1,383 
Long-term inventories:
Mill stockpiles$260 $199 
Leach stockpiles1,067 1,053 
Total long-term mill and leach stockpilesc
$1,327 $1,252 
 September 30,
2017		 December 31, 2016 
Current inventories:    
Total materials and supplies, neta
$1,276
 $1,306
 
     
Mill stockpiles$336
 $259
 
Leach stockpiles1,057
 1,079
 
Total current mill and leach stockpiles$1,393
 $1,338
 
     
Raw materials (primarily concentrate)$285
 $255
 
Work-in-process154
 114
 
Finished goods749
 629
 
Total product inventories$1,188
 $998
 
     
Long-term inventories:    
Mill stockpiles$346
 $487
 
Leach stockpiles1,107
 1,146
 
Total long-term mill and leach stockpilesb
$1,453
 $1,633
 
a.Materials and supplies inventory was net of obsolescence reserves totaling $31 million at September 30, 2017, and $29 million at December 31, 2016.
b.Estimated metals in stockpiles not expected to be recovered within the next 12 months.

a.The increase in finished goods inventory at September 30, 2023, was primarily associated with the change in PT-FI's commercial arrangement with PT Smelting (PT-FI’s 39.5% owned copper smelter and refinery in Gresik, Indonesia) from a copper concentrate sales agreement to a tolling arrangement beginning on January 1, 2023, and also included approximately 75 thousand ounces of gold available for sale pending approval of PT-FI’s export license for anode slimes. See Note 8 for further discussion.
b.Materials and supplies inventory was net of obsolescence reserves totaling $31 million at September 30, 2023, and $39 million at December 31, 2022.
c.Estimated metals in stockpiles not expected to be recovered within the next 12 months.

NOTE 5.4. INCOME TAXES


VariationsGeographic sources of FCX’s benefit (provision) for income taxes follow (in millions):
Nine Months Ended
September 30,
 20232022
U.S. operations$3 

$(5)
International operations(1,549)(1,705)a
Total$(1,546)$(1,710)

a.Includes a credit of $31 million, primarily associated with completion of Cerro Verde’s 2016 tax audit.

FCX’s consolidated effective income tax rate was 36% for the first nine months of 2023 and 33% for the first nine months of 2022. A higher 2023 effective income tax rate primarily reflects the impact of pre-tax, nondeductible charges totaling $142 million for the first nine months of 2023 associated with contested tax rulings issued by the Peruvian Supreme Court. In addition, variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate. Because of its U.S. tax position, FCX does not record a tax impact for income or losses generated in the U.S.

The provisions of the U.S. Inflation Reduction Act of 2022 (the Act) became applicable to FCX on January 1, 2023. The Act includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average AFSI exceeding $1.0 billion over a three-year period. FCX has made interpretations of certain provisions of the Act, and based on these interpretations, determined that the provisions of the Act did not impact FCX’s consolidated effective income tax rate was 47 percentfinancial results for the first nine months of 2017 and (2) percent for first nine months of 2016. Geographic sources of FCX’s (provision for) benefit from income taxes follow (in millions):2023.

10
 Three Months Ended Nine Months Ended 
 September 30, September 30, 
 2017 2016 2017 2016 
U.S. operationsa
$2
 $331
 $24
 $293
 
International operations(389)
b 
(217) (771)
b 
(372) 
Total$(387) $114
 $(747) $(79) 
a.Includes net tax (charges) credits of $(10) million for third-quarter 2017 and $21 million for the first nine months of 2017 associated with alternative minimum tax credit carryforwards. The third quarter and first nine months of 2016 include net tax credits of $332 million and $290 million, respectively, associated with alternative minimum tax credits, changes to valuation allowances and net operating loss carryback claims.
b.Includes net charges of $2 million associated with the Cerro Verde mining royalties dispute, consisting of tax charges of $127 million for disputed royalties and other related mining taxes for the period October 2011 through the year 2013 (when royalties were determined based on operating income), mostly offset by a tax benefit of $125 million associated with disputed royalties and other related mining taxes for the period December 2006 through the year 2013.

As a result of the unfavorable Peruvian Supreme Court ruling on the Cerro Verde royalty dispute, FCX recorded pre-tax charges of $357 million to income from continuing operations and $2 million of net tax expense for the first nine months of 2017. FCX’s consolidated effective income tax rate was 39 percent for the first nine months of 2017 excluding these charges.

As a result of the impairment to U.S. oil and gas properties, FCX recorded tax charges of $1.6 billion for the first nine months of 2016 to establish a valuation allowance primarily against U.S. federal and state deferred tax assets that will not generate a future benefit. FCX’s consolidated effective income tax rate was 32 percent for the first nine months of 2016 excluding these tax charges.
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There has been limited guidance released by the U.S. Department of the Treasury (the Treasury) on how the CAMT provisions of the Act should be applied or otherwise administered, and uncertainty remains regarding their application. In October 2023, the Treasury stated publicly that it expects to issue proposed rules regarding the application of the CAMT by the end of 2023. Future guidance released by the Treasury may differ from FCX’s interpretations, which could be material and may further limit its ability to realize future benefits from its U.S. net operating losses.

NOTE 6.5. DEBT AND EQUITY


The components of debt follow (in millions):
 September 30,
2023		December 31, 2022
Senior notes and debentures:
Issued by FCX$6,004 $7,225 
Issued by PT-FI2,980 2,978 
Issued by Freeport Minerals Corporation354 355 
Other67 62 
Total debt9,405 10,620 
Less current portion of debt(35)(1,037)
Long-term debt$9,370 $9,583 
  September 30,
2017		 December 31, 2016
Senior notes and debentures:    
Issued by FCX $12,811
 $13,745
Issued by FMC 358
 359
Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC) 122
 267
Cerro Verde credit facility 1,486
 1,390
Cerro Verde shareholder loans —
 261
Other 5
 5
Total debta
 14,782
 16,027
Less current portion of debt (2,215) (1,232)
Long-term debt $12,567
 $14,795
a.Includes additions for unamortized fair value adjustments totaling $131 million at September 30, 2017 ($179 million at December 31, 2016), and is net of reductions for unamortized net discounts and unamortized debt issuance costs totaling $92 million at September 30, 2017 ($100 million at December 31, 2016).


Revolving Credit Facility. Facilities.
FCX and PT-FI have a $3.0 billion, unsecured revolving credit facility that matures in October 2027. Under the terms of the revolving credit facility, FCX may obtain loans and issue letters of credit in an aggregate amount of up to $3.0 billion with PT-FI’s capacity limited to $500 million, and letters of credit issuance limited to $1.5 billion. At September 30, 2017, there were no borrowings outstanding and $362023, FCX had $7 million in letters of credit issued under FCX’sits revolving credit facility.

PT-FI has a $1.3 billion unsecured revolving credit facility resultingthat matures in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit.July 2026 and Cerro Verde has a $350 million unsecured revolving credit facility that matures in May 2027.


At September 30, 2023, FCX, PT-FI and Cerro Verde had no borrowings outstanding under their respective revolving credit facilities and were in compliance with their respective covenants.

Senior Notes Issued by FCX.Notes.
In March 2017, FCX’s 2.15% Senior Notes matured, and2023, FCX repaid in full the $500 million outstanding principal balance was repaid.

Cerro Verde Credit Facility and Shareholder Loans. In June 2017, Cerro Verde’s credit facility was amended to increase the commitment by $225 million to $1.5 billion, modify the amortization schedule and to extend the maturity date to June 19, 2022. The amended credit facility amortizes in four installments, with $225 million due on December 31, 2020, $225 million due on June 30, 2021, $525 million due on December 31, 2021, and the remaining balance due on the maturity date of June 19, 2022. All other terms, including the interest rates, remain the same. The interest rate on Cerro Verde's credit facility was 3.14 percent at September 30, 2017. Cerro Verde used proceeds from its amended credit facility plus available cash to repay the balance of its shareholder loans3.875% Senior Notes totaling $996 million at maturity.

Beginning in June 2017. Refer to Note 82022 and through November 3, 2023, FCX has purchased $1.3 billion aggregate principal amount of FCX’s annual report on Form 10-Kits senior notes in open-market transactions for a total cost of $1.2 billion, including $102 million aggregate principal amount in third-quarter 2023 and $233 million in the year ended December 31, 2016, for further discussion.

Tablefirst nine months of Contents

Exchanges and Early Extinguishment of Debt. During third-quarter 2017, FCX redeemed in full certain senior notes.2023. A summary of these earlythe senior note purchases and related gains on debt extinguishments for the first nine months of 2023 follows (in millions):

Principal AmountDiscounts/Deferred Issuance CostsBook ValueRedemption ValueGain
5.00% Senior Notes due 2027$17 $— $17 $17 $— 
4.125% Senior Notes due 202861 — 61 58 3 
4.375% Senior Notes due 202846 1 45 43 2 
5.25% Senior Notes due 202931 — 31 31 — 
4.25% Senior Notes due 203050 1 49 46 3 
4.625% Senior Notes due 203028 — 28 26 2 
$233 $2 $231 $221 $10 

 Principal Amount Net Adjustments Book Value Redemption Value Gain
FCX 6.125% Senior Notes due 2019$179
 $5
 $184
 $182
 $2
FM O&G 6.125% Senior Notes due 201958
 2
 60
 59
 1
FCX 6.625% Senior Notes due 2021228
 12
 240
 234
 6
FM O&G 6.625% Senior Notes due 202133
 2
 35
 34
 1
FM O&G 6.75% Senior Notes due 202245
 2
 47
 46
 1
 $543
 $23
 $566
 $555
 $11

Partially offsetting the $11 million gain on early extinguishment of certain senior notes was a net loss of $3 million, primarily associated with the modification of Cerro Verde’s credit facility in second-quarter 2017.

During the second and third quarters of 2016, FCX redeemed certain senior notes in exchange for its common stock, which resulted in gains of $15Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $165 million in third-quarter 2016 and $542023, $182 million in third-quarter 2022, $606 million for the first nine months of 2016. Partially offsetting the gains were $3 million in losses, primarily associated with the modification of FCX’s revolving credit facility in first-quarter 2016. Refer to Notes 82023 and 10 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion.

Interest Expense, Net. Consolidated interest costs from continuing operations (before capitalization and excluding $141 million of interest expense associated with disputed Cerro Verde royalties recorded in third-quarter 2017) totaled $196 million in third-quarter 2017, $211 million in third-quarter 2016, $583$524 million for the first nine months of 2017 and $647 million2022. Consolidated interest costs (before capitalization) for the first nine months of 2016. 2023, includes
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interest charges totaling $74 million associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court.

Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $33$69 million in third-quarter 2017, $242023, $42 million in third-quarter 2016, $912022, $188 million for the first nine months of 20172023 and $66$101 million for the first nine months of 2016. Capitalized2022. The increase in capitalized interest addedcosts in the 2023 periods, compared to oilthe 2022 periods, primarily resulted from increased construction and gas properties notdevelopment projects in process, primarily at the Manyar smelter and precious metals refinery in Indonesia (collectively, the Indonesia smelter projects).

Share Repurchase Program and Dividends. Beginning in mid-2021 and through July 11, 2022, FCX acquired 47.8 million shares of its common stock under the share repurchase program for a total cost of $1.8 billion ($38.35 average cost per share). FCX has $3.2 billion available for repurchases under the program.

On September 20, 2023, FCX’s Board of Directors (Board) declared cash dividends totaling $0.15 per share on its common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which was paid on November 1, 2023, to common stockholders of record as of October 13, 2023.

The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of FCX’s Board and management, respectively, and are subject to amortization totaled $7 million fora number of factors, including not exceeding FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by FCX’s Board or management, as applicable. FCX’s share repurchase program may be modified, increased, suspended or terminated at any time at the first nine months of 2016 (none in third-quarter 2016 or 2017).Board’s discretion.


NOTE 7.6. 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. As of September 30, 2017, and December 31, 2016, FCX had no price protection contracts relating to its mine production.

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


Derivatives Designated as Hedging Instruments –- Fair Value HedgesHedges.
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, 20172023 and 2016.2022. At September 30, 2017,2023, FCX held copper futures and swap contracts that qualified for hedge accounting for 4685 million pounds at an average contract price of $2.83$3.85 per pound, with maturities through June 2019.May 2025.



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Summary of Gains (Losses). A summary of the realized and unrealized gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses)including on the related hedged item follows (in millions):
Three Months Ended Nine Months Ended Three Months EndedNine Months Ended
September 30, September 30,September 30,September 30,
2017 2016 2017 2016 2023202220232022
Copper futures and swap contracts:       Copper futures and swap contracts:  
Unrealized gains (losses):       Unrealized gains (losses):  
Derivative financial instruments$—
 $1
 $(1) $11
Derivative financial instruments$2 $17 $(9)$(61)
Hedged item – firm sales commitments—
 (1) 1
 (11)Hedged item – firm sales commitments(2)(17)9 61 
       
Realized gains (losses):       
Realized losses:Realized losses:  
Matured derivative financial instruments12
 —
 21
 (8)Matured derivative financial instruments(4)(50)(1)(48)


Derivatives Not Designated as Hedging InstrumentsInstruments.
Embedded Derivatives. As described in Note 1 to FCX’s annual report on Form 10-K for the year ended December 31, 2016, under “Revenue Recognition,” certain Certain FCX copper 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 (London) gold price at the time of shipment as specified in the contract. Similarly, FCX purchasesreceives 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 underprices and the London gold price as specified in the contracts, which results in an embedded derivative (i.e., a pricing mechanism that provide for provisional pricing.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, cathode or anode slimes at the then-current LME copper, COMEX copper or London gold prices. 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, cathode and anode slime sales agreements since thethese contracts do not allow for net settlement and always result in physical delivery. Sales and purchases with a provisional sales price contain anThe embedded derivative (i.e.,does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the price settlement mechanism is settled after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale or purchase of the metals contained in the concentrate or cathode at the then-currentperiod-end LME or COMEX copper price orforward prices and the adjusted London gold price, as defined inuntil the contract.date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives related to continuing operations are recorded through the settlement date and are reflected in revenues for sales contracts and in cost of sales as production and delivery costsinventory for purchase contracts. Mark-to-market price fluctuations associated with embedded derivatives for discontinued operations, which were minimal, are included in discontinued operations for all periods presented in these financial statements.


A summary of FCX’s embedded derivatives at September 30, 2017,2023, follows:
Open PositionsAverage Price
Per Unit		Maturities Through
 ContractMarket
Embedded derivatives in provisional sales contracts:    
Copper (millions of pounds)553 $3.78 $3.75 February 2024
Gold (thousands of ounces)209 1,925 1,884 December 2023
Embedded derivatives in provisional purchase contracts:  
Copper (millions of pounds)165 3.80 3.75 January 2024
 Open Positions 
Average Price
Per Unit
 Maturities Through
  Contract Market 
Embedded derivatives in provisional sales contracts:       
Copper (millions of pounds)546
 $2.84
 $2.93
 February 2018
Gold (thousands of ounces)194
 1,318
 1,287
 December 2017
Embedded derivatives in provisional purchase contracts:       
Copper (millions of pounds)155
 2.83
 2.93
 January 2018


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 cost of sales.production and delivery costs. At September 30, 2017,2023, Atlantic Copper held net copper forward purchase contracts for 519 million pounds at an average contract price of $2.95$3.77 per pound, with maturities through October 2017.November 2023.








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Summary of Gains (Losses). Gains. A summary of the realized and unrealized (losses) gains (losses) recognized in operating income (loss) for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2017 2016 2017 2016
Embedded derivatives in provisional copper and gold       
sales contractsa
$137
 $12
 $297
 $88
Copper forward contractsb
(9) (1) (14) 4
 Three Months EndedNine Months Ended
September 30,September 30,
 2023202220232022
Embedded derivatives in provisional sales contracts:a
Copper$(30)$(272)$31 $(774)
Gold and other metals(10)(34)12 (45)
Copper forward contractsb
(1)5 (3)31 
a.Amounts recorded in revenues. 
b.Amounts recorded in cost of sales as production and delivery costs.

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

Unsettled Derivative Financial InstrumentsInstruments.
A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):
  September 30,
2017		 December 31, 2016
Commodity Derivative Assets:    
Derivatives designated as hedging instruments:
    
Copper futures and swap contracts $7
 $9
Derivatives not designated as hedging instruments:
    
Embedded derivatives in provisional copper and gold    
sales/purchase contracts 74
 137
Total derivative assets $81
 $146
     
Commodity Derivative Liabilities:    
Derivatives designated as hedging instruments:
    
Copper futures and swap contracts $2
 $2
Derivatives not designated as hedging instruments:
    
Embedded derivatives in provisional copper and gold    
sales/purchase contracts 46
 56
Total derivative liabilities $48
 $58

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September 30,
2023		December 31, 2022
Commodity Derivative Assets:  
Derivatives designated as hedging instruments:
  
Copper futures and swap contracts$— $3 
Derivatives not designated as hedging instruments:
  
Embedded derivatives in provisional sales/purchase contracts16 166 
Copper forward contracts— 1 
Total derivative assets$16 $170 
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts$8 $3 
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts35 39 
Copper forward contracts1 — 
Total derivative liabilities$44 $42 
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 counterpartycontract 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 sheetssheet follows (in millions):
AssetsLiabilities
September 30,
2023		December 31, 2022September 30,
2023		December 31, 2022
Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts$16 $166 $35 $39 
Copper derivatives— 4 9 3 
16 170 44 42 
Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts3 — 3 — 
3 — 3 — 
Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts13 166 32 39 
Copper derivatives— 4 9 3 
$13 $170 $41 $42 
Balance sheet classification:
Trade accounts receivable$5 $163 $20 $7 
Other current assets— 4 — — 
Accounts payable and accrued liabilities8 3 21 34 
Other liabilities— — — 1 
$13 $170 $41 $42 
  Assets Liabilities
  September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016
         
Gross amounts recognized:        
Commodity contracts:        
Embedded derivatives in provisional        
sales/purchase contracts $74
 $137
 $46
 $56
Copper derivatives 7
 9
 2
 2
  81
 146
 48
 58
         
Less gross amounts of offset:        
Commodity contracts:        
Embedded derivatives in provisional        
sales/purchase contracts 1
 12
 1
 12
Copper derivatives 2
 2
 2
 2
  3
 14
 3
 14
         
Net amounts presented in balance sheet:        
Commodity contracts:        
Embedded derivatives in provisional        
sales/purchase contracts 73
 125
 45
 44
Copper derivatives 5
 7
 —
 —
  $78
 $132
 $45
 $44
         
Balance sheet classification:        
Trade accounts receivable $69
 $119
 $24
 $13
Other current assets 5
 7
 —
 —
Accounts payable and accrued liabilities 4
 6
 21
 31
  $78
 $132
 $45
 $44


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, 2017,2023, the maximum amount of credit exposure associated with derivative transactions was $78$16 million.


Other Financial Instruments.Other financial instruments include cash, cash equivalents, restricted cash and cash equivalents, accounts receivable, restricted cash, investment securities, legally restricted funds,trust assets, accounts payable and accrued liabilities, accrued income taxes, dividends payable and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $1.9 billion at September 30, 2017, and $64 million at December 31, 2016), accounts receivable, restricted cash, and accounts payable and accruedthese financial instruments classified as current assets or liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 87 for the fair values of investment securities, legally restricted funds and long-term debt).

In addition, as of September 30, 2017,2023, FCX hashad contingent consideration assets related to the sales of certain 2016 asset salesoil and gas properties (refer to Note 87 for the related fair valuevalues).

Cash, Cash Equivalents and to Note 2Restricted Cash and Cash Equivalents. The following table provides a reconciliation of FCX’s annual report on Form 10-K fortotal cash, cash equivalents and restricted cash and cash equivalents presented in the year endedconsolidated statements of cash flows (in millions):
September 30,
2023		December 31, 2022
Balance sheet components:
Cash and cash equivalentsa
$5,745 $8,146 
Restricted cash and cash equivalents, current697 b111 
Restricted cash and cash equivalents, long-term - included in other assets97 133 
Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows$6,539 $8,390 
a.Includes time deposits of $0.3 billion at September 30, 2023, and $0.5 billion at December 31, 2016,2022, and cash designated for smelter development projects totaling $0.6 billion at September 30, 2023, and $1.8 billion at December 31, 2022.
b.Includes $0.5 billion associated with PT-FI’s export proceeds. See Note 8 for further discussion of these instruments).discussion.

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NOTE 8.7. 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 recognizes transfers between levels at the end of the reporting period. FCX did not have any significant transfers in or out of Level 1, 2 or 3 forduring third-quarter 2017.2023.


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, cash equivalents, restricted cash and cash equivalents, accounts receivable, restricted cash, and accounts payable and accrued liabilities, accrued income taxes and dividends payable (refer to Note 7)6) follows (in millions):

At September 30, 2017At September 30, 2023
Carrying Fair Value CarryingFair Value
Amount Total NAV Level 1 Level 2 Level 3 AmountTotalNAVLevel 1Level 2Level 3
Assets           Assets    
Investment securities:a,b
           
Investment securities:a,b
U.S. core fixed income fund$25
 $25
 $25
 $—
 $—
 $—
U.S. core fixed income fund$25 $25 $25 $— $— $— 
Money market funds21
 21
 —
 21
 —
 —
Equity securities6
 6
 —
 6
 —
 —
Equity securities5 5 — 5 — — 
Total52
 52
 25
 27
 —
 —
Total30 30 25 5 — — 
           
Legally restricted funds:a
           
Legally restricted funds:a
    
U.S. core fixed income fund55
 55
 55
 —
 —
 —
U.S. core fixed income fund61 61 61 — — — 
Government mortgage-backed securitiesGovernment mortgage-backed securities43 43 — — 43 — 
Government bonds and notes38
 38
 —
 —
 38
 —
Government bonds and notes30 30 — — 30 — 
Corporate bonds30
 30
 —
 —
 30
 —
Corporate bonds30 30 — — 30 — 
Government mortgage-backed securities25
 25
 —
 —
 25
 —
Money market funds18
 18
 —
 18
 —
 —
Money market funds19 19 — 19 — — 
Asset-backed securities14
 14
 —
 —
 14
 —
Asset-backed securities15 15 — — 15 — 
Collateralized mortgage-backed securities8
 8
 —
 —
 8
 —
Collateralized mortgage-backed securities1 1 — — 1 — 
Municipal bonds1
 1
 —
 —
 1
 —
Total189
 189
 55
 18
 116
 —
Total199 199 61 19 119 — 
           
Derivatives:           
Embedded derivatives in provisional sales/           
purchase contracts in a gross asset positionc
74
 74
 —
 —
 74
 —
Copper futures and swap contractsc
7
 7
 —
 5
 2
 —
Contingent consideration for the sales of TFHL           
and onshore California oil and gas propertiesa
80
 80
 —
 —
 80
 —
Total161
 161
 —
 5
 156
 —
           
Contingent consideration for the sale of the           
Deepwater GOM oil and gas propertiesa
150
 138
 —
 —
 —
 138
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
16 16 — — 16 — 
           
Total assets  $540
 $80
 $50
 $272
 $138
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa
55 47 — — — 47 
           
Liabilities           Liabilities    
Derivatives:c
           
Derivatives:c
    
Embedded derivatives in provisional sales/           
purchase contracts in a gross liability position46
 $46
 $—
 $—
 $46
 $—
Embedded derivatives in provisional sales/purchase contracts in a gross liability positionEmbedded derivatives in provisional sales/purchase contracts in a gross liability position35 35 — — 35 — 
Copper futures and swap contracts2
 2
 —
 1
 1
 —
Copper futures and swap contracts8 8 — 6 2 — 
Copper forward contractsCopper forward contracts1 1 — 1 — — 
Total48
 48
 —
 1
 47
 —
Total44 44 — 7 37 — 
           
Long-term debt, including current portiond
14,782
 14,735
 —
 —
 14,735
 —
Long-term debt, including current portiond
9,405 8,639 — — 8,639 — 
           
Total liabilities  $14,783
 $—
 $1
 $14,782
 $—



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At December 31, 2022
 CarryingFair Value
 AmountTotalNAVLevel 1Level 2Level 3
Assets    
Investment securities:a,b
U.S. core fixed income fund$25 $25 $25 $— $— $— 
Equity securities7 7 — 7 — — 
Total32 32 25 7 — — 
Legally restricted funds:a
    
U.S. core fixed income fund56 56 56 — — — 
Government mortgage-backed securities37 37 — — 37 — 
Government bonds and notes34 34 — — 34 — 
Corporate bonds31 31 — — 31 — 
Asset-backed securities17 17 — — 17 — 
Money market funds3 3 — 3 — — 
Collateralized mortgage-backed securities3 3 — — 3 — 
Total181 181 56 3 122 — 
Derivatives:c
    
Embedded derivatives in provisional sales/purchase contracts in a gross asset position166 166 — — 166 — 
Copper futures and swap contracts3 3 — 3 — — 
Copper forward contracts1 1 — 1 — — 
Total170 170 — 4 166 — 
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa
67 57 — — — 57 
Liabilities    
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position39 39 — — 39 — 
Copper forward contracts3 3 — — 3 — 
Total42 42 — — 42 — 
Long-term debt, including current portiond
10,620 10,097 — — 10,097 — 
a.Current portion included in other current assets and long-term portion included in other assets.
 At December 31, 2016
 Carrying Fair Value
 Amount Total NAV Level 1 Level 2 Level 3
Assets           
Investment securities:a,b
           
U.S. core fixed income fund$23
 $23
 $23
 $—
 $—
 $—
Money market funds22
 22
 —
 22
 —
 —
Equity securities5
 5
 —
 5
 —
 —
Total50
 50
 23
 27
 —
 —
            
Legally restricted funds:a
           
U.S. core fixed income fund53
 53
 53
 —
 —
 —
Government bonds and notes36
 36
 —
 —
 36
 —
Corporate bonds32
 32
 —
 —
 32
 —
Government mortgage-backed securities25
 25
 —
 —
 25
 —
Asset-backed securities16
 16
 —
 —
 16
 —
Money market funds12
 12
 —
 12
 —
 —
Collateralized mortgage-backed securities8
 8
 —
 —
 8
 —
Municipal bonds1
 1
 —
 —
 1
 —
Total183
 183
 53
 12
 118
 —
            
Derivatives:           
Embedded derivatives in provisional sales/           
purchase contracts in a gross asset positionc
137
 137
 —
 —
 137
 —
Copper futures and swap contractsc
9
 9
 —
 8
 1
 —
Contingent consideration for the sales of TFHL           
   and onshore California oil and gas propertiesa
46
 46
 —
 —
 46
 —
Total192
 192
 —
 8
 184
 —
            
Contingent consideration for the sale of the           
   Deepwater GOM oil and gas propertiesa
150
 135
 —
 —
 —
 135
            
Total assets  $560
 $76
 $47
 $302
 $135
            
Liabilities           
Derivatives:c
           
Embedded derivatives in provisional sales/           
purchase contracts in a gross liability position56
 $56
 $—
 $—
 $56
 $—
Copper futures and swap contracts2
 2
 —
 2
 —
 —
Total58
 58
 —
 2
 56
 —
            
Contingent payments for the settlements of           
drilling rig contractse
23
 23
 —
 —
 23
 —
            
Long-term debt, including current portiond
16,027
 15,196
 —
 —
 15,196
 —
            
Total liabilities  $15,277
 $—
 $2
 $15,275
 $—
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 $41 million at September 30, 2017, and $28 million at December 31, 2016, and (ii) other assets of $122 million at both September 30, 2017, and December 31, 2016, primarily associated with an assurance bond to support PT-FI’s commitment for smelter development in Indonesia.
c.Refer to Note 7 for further discussion and balance sheet classifications.
d.Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates.
e.Included in accounts payable and accrued liabilities.

b.Excludes amounts included in restricted cash and cash equivalents and other assets (which approximated fair value), primarily amounts associated with (i) PT-FI’s export proceeds ($0.5 billion at September 30, 2023), (ii) an assurance bond to support PT-FI’s commitment for additional smelter development in Indonesia ($135 million at September 30, 2023, and $133 million at December 31, 2022) and (iii) PT-FI’s mine closure and reclamation guarantees ($111 million at September 30, 2023, and $103 million at December 31, 2022).

c.Refer to Note 6 for further discussion and balance sheet classifications.
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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 net asset value (NAV).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).

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


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.


Fixed income securities (government securities, corporate bonds, asset-backed securities and collateralized mortgage-backed securities and municipal bonds)securities) are valued using a bid-evaluation price or a mid-evaluation price. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. 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.

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

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using only quoted monthly LME or COMEX copper forward prices and the adjusted London gold forward price at each reporting date based on the month of maturity (refer to Note 76 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 76 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.


The fair value of contingent consideration for the sales of TFHL and onshore California oil and gas properties is calculated based on average commodity price forecasts through applicable maturity dates using a Monte Carlo simulation model. The models use various observable inputs, including Brent crude oil forward prices, historical copper and cobalt prices, volatilities, discount rates and settlement terms. As a result, these contingent consideration assets are classified within Level 2 of the fair value hierarchy.

The fair value of contingent consideration for theIn 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 cash flows are realized from a third-party production handling agreement for an offshore platform, with the related payments commencing in 2018. The contingent consideration included in (i) other current assets totaled $17 million at September 30, 2023, and $20 million at December 31, 2022, and (ii) other assets totaled $38 million at September 30, 2023, and $47 million at December 31, 2022. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party reserve 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.

The December 31, 2016, fair value of contingent payments for the settlements of drilling rig contracts was calculated based on the average price forecasts of West Texas Intermediate (WTI) crude oil over the 12-month period ending June 30, 2017, using a mean-reverting model. The model used various observable inputs, including WTI crude oil forward prices, volatilities, discount rate and settlement terms. As a result, these contingent payments were classified within Level 2 of the fair value hierarchy. The contingency period for FM O&G’s drilling rig contract settlements ended June 30, 2017, and no additional amounts were paid.


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 calculation 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, 2017,2023, as compared towith those techniques used at December 31, 2016.2022.

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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 20172023 follows (in millions):
Fair value at January 1, 2023$57 
Net unrealized gain related to assets still held at the end of the period1 
Settlements(11)
Fair value at September 30, 2023$47 
Fair value at January 1, 2017$135
 
Net unrealized gain related to assets still held at the end of the period3
 
Fair value at September 30, 2017$138
 


NOTE 9.8. CONTINGENCIES AND COMMITMENTS


Environmental
Historical Smelter Sites — BoroughFCX recorded adjustments to environmental obligations totaling $83 million in third-quarter 2023 and $199 million for the first nine months of Carteret2023, primarily related to Pinal Creek in Arizona for a refined engineering evaluation and Newtown Creek in New York based on a focused feasibility study for an early action in the East Branch tributary. Refer to Note 12 of FCX’s 2022 Form 10-K for further discussion of FCX’s environmental obligations.
As
There were no other significant updates to previously reported environmental matters included in Note 12 of FCX’s annual report on2022 Form 10-K, forother than the year ended December 31, 2016, from 1920 until 1986,matters discussed below.

Historical Smelter Sites. On January 30, 2017, a putative class action titled Juan Duarte, Betsy Duarte and N.D., Infant, by Parents and Natural Guardians Juan Duarte and Betsy Duarte, Leroy Nobles and Betty Nobles, on behalf of themselves and all others similarly situated v. United States MetalMetals Refining Company, (USMR)Freeport-McMoRan
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Copper & Gold Inc. and Amax Realty Development, Inc., an indirect wholly owned subsidiary of Cyprus Amax Minerals Company, owned and operated a copper smelter and refineryDocket No. 734-17, was filed in the BoroughSuperior Court of Carteret, New Jersey, onJersey. In July 2023, the banks of the Arthur Kill (a narrow waterway that separates New Jersey from Staten Island). As a result of recent off-site soil sampling in public and private areas near the former smelter, FCX increased its associated environmental obligation for known and potential off-site environmental remediation by recording a $59 million charge to operating income in third-quarter 2017. Additional sampling is ongoing and could result in additional adjustments to the related environmental remediation obligation.

Uranium Mining Sites
As reported in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, the Department of Justice, the U.S. Environmental Protection Agency, the Navajo Nation and two FCX-related subsidiaries reachedCourt approved an agreement regardingbetween the scope of environmental investigation and remediation workparties pursuant to which all claims were settled for 94 former uranium mining sites on tribal lands, and the related financial contributions of the U.S. government and the FCX subsidiaries. The related Consent Decree was approved by the U.S. District Court for the District of Arizona in second-quarter 2017. Based on updated cash flow and timing estimates, FCX reduced its associated obligation for that contingency by recording a $41 million creditan amount not material to operating income in second-quarter 2017 after receiving court approval of the Consent Decree.FCX.


Litigation
During third-quarter 2017, thereThere were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s annual report on2022 Form 10-K, forother than the year ended December 31, 2016.matters discussed below.


TaxLouisiana Parishes Coastal Erosion Cases. Certain FCX affiliates were named as defendants, along with numerous co-defendants, in 13 cases out of a total of 42 cases filed in Louisiana state courts by 6 south Louisiana parishes (Cameron, Jefferson, Plaquemines, St. Bernard, St. John the Baptist and Other Matters
Cerro Verde Royalty Dispute
As reportedVermilion), alleging that certain oil and gas exploration and production operations and sulfur mining and production operations in FCX’s annual report on Form 10-K forcoastal Louisiana contaminated and damaged coastal wetlands and caused significant land loss along the year ended December 31, 2016,Louisiana coast. In 2019, affiliates of FCX reached an agreement in principle to settle all 13 cases and, as subsequently updatedof October 2022, all parties have executed the settlement agreement. On March 16, 2023, a non-plaintiff coastal parish included in Note 9the settlement (Terrebonne), filed an amended petition titled Terrebonne Parish Consolidated Government vs. Louisiana Department of FCX’s quarterly report on Form 10-Q forNatural Resources et al., Docket No. 185576, in the quarter ended June 30, 2017, SUNAT, Peru’s national tax authority, has assessed mining royalties on ore processed by32nd Judicial District Court, Terrebonne Parish, State of Louisiana, adding the Cerro Verde concentrator, which commenced operations in late 2006, for the period December 2006settling FCX affiliates to September 2011. Cerro Verde contested these assessments because it believes its 1998 stability agreement exempts from royalties all minerals extracted from its mining concession, irrespective of the method used for processing those minerals. No assessments have been issued for the period from October 2011 to December 2013, and no assessments can be issued for years after 2013, as Cerro Verde began paying royalties on all of its production in January 2014 under its new 15-year stability agreement. Since 2014, Cerro Verde has been paying the disputed assessments for the period December 2006 through December 2008 under an installment program ($135 million paid by Cerro Verde through September 30, 2017).

In October 2017, the Peruvian Supreme Court issued a ruling in favor of SUNATlawsuit that the assessments of royalties for the year 2008 on ore processed by the Cerro Verde concentrator were proper under Peruvian law.

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As a result of the unfavorable Peruvian Supreme Court ruling on the 2008 royalty dispute, Cerro Verde recorded pre-tax charges totaling $357 million ($359 million including net tax charges and $188 million net of noncontrolling interests) in third-quarter 2017, consisting of $240 million in royalty assessments, $147 million of penalties and interest relatedchallenges whether Terrebonne Parish is validly bound to the December 2006 to December 2008 assessments, and $97 million for related items (primarily associated with the special mining tax and net assets tax) that Cerro Verde would have incurred under the view that its concentrator was not stabilized.

A summary of the charges recorded in third-quarter 2017 for the Cerro Verde royalty dispute follows (in millions):
Royalty and related assessment charges:   
 Production and delivery $216
a 
 Interest expense, net 141
 
 Provision for income taxes 2
b 
Net loss attributable to noncontrolling interests (171) 
   $188
 
a.Includes $176 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues), $6 million of penalties related to the December 2006 to December 2008 royalty assessments and $34 million primarily associated with the net assets tax.
b.Includes tax charges of $127 million for disputed royalties ($64 million) and other related mining taxes ($63 million) for the period October 2011 through the year 2013 when royalties were determined based on operating income, mostly offset by a tax benefit of $125 million associated with disputed royalties and other related mining taxes for the period December 2006 through the year 2013.

Cerro Verde acted in good faith in applying the provisions of its 1998 stabilitysettlement agreement and continuesseeks to evaluate alternativeshave the court declare the settlement void. FCX is evaluating and exploring options to resolve this dispute and will vigorously defend its rights. Cerro Verde intends to seek a waiver available under Peruvian law of penaltiesthis matter.

Asbestos and interest associated with this matter and has not recorded charges for potential unpaid penalties and interest totaling $360 million ($193 million net of noncontrolling interests) at September 30, 2017, as FCX believes that Cerro Verde should be successful under Peruvian law in obtaining a waiver. Cerro Verde also intends to file a reimbursement claim with SUNAT for penalties and interest paid under the installment plan for the December 2006 to December 2008 assessments, and may have claims for reimbursement of payments it would not have made in the absence of the stabilization agreement, such as the overpayments made for a special (voluntary) levy (GEM), import duties and civil association contributions. No amounts have been recorded for these potential gain contingencies at September 30, 2017.

Other Peru Tax Matters
There were no significant changes to other Peru tax matters during third-quarter 2017 (refer to Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2016).

Indonesia Tax Matters
The following information includes a discussion of updates toTalc Claims. As previously reported Indonesia tax matters includeddiscussed in Note 12 of FCX’s annual report on2022 Form 10-K, in 2021 Imerys Talc America (Imerys), an affiliate of Imerys S.A., filed the form of a settlement and release agreement to be entered into by Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, FCX, Imerys and the other debtors, tort claimants’ committee and future claims representative in the Imerys bankruptcy. The bankruptcy court continues to temporarily stay approximately 950 talc-related lawsuits against CAMC, Cyprus Mines, FCX and Imerys but there can be no assurance that the bankruptcy court will continue to impose the interim stay.

In accordance with the global settlement agreement, among other things, (1) CAMC agreed to contribute a total of $130 million in cash to a settlement trust in seven annual installments, which will be guaranteed by FCX, and (2) CAMC and Cyprus Mines and their affiliates will contribute to the settlement trust all rights that they have to the proceeds of certain legacy insurance policies as well as indemnity rights they have against Johnson & Johnson. Mediation to resolve open issues in the Imerys and Cyprus Mines bankruptcy cases is ongoing, including the adequacy of the settlement and agreed contribution from CAMC, with a deadline for the year endedparties to complete mediation by December 31, 2016.2023, set by the bankruptcy court.


There can be no assurance that the global settlement will be successfully implemented.

Other Matters
Indonesia Regulatory Matters
Over the past several years, the Indonesia government has enacted various laws and regulations to promote downstream processing of various products, including copper concentrates.

Export License.On June 10, 2023, export licenses for several exporters, including PT-FI and PT Smelting, expired. During the second quarter and through July 2023, the Indonesia government issued various regulations to address exports of unrefined metals, including regulations by the Ministry of Energy and Mineral Resources (MEMR) to allow continued exports of copper concentrates through May 2024 for companies engaged in ongoing smelter development projects with construction progress greater than 50%, and regulations by the Ministry of Trade on the permitted export of various products, including copper concentrates.

On July 24, 2023, PT-FI was granted an export license through May 2024 for 1.7 million metric tons of copper concentrate.

Through June 10, 2023, PT-FI exported anode slimes under PT Smelting’s export license. A change in regulations during second-quarter 2023 requires PT-FI to follow a new administrative process for the export of anode slimes. The administrative process is advancing, and PT-FI expects to receive approval to resume exports of anode slimes during fourth-quarter 2023.

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PT-FI received assessments fromwill continue to work with the local regional tax authorityIndonesia government to obtain approvals to continue exports of copper concentrates and anode slimes beyond May 2024 and until the Indonesia smelter projects are fully commissioned and reach designed operating conditions.

Export Duties. Under PT-FI’s special mining license (IUPK), which was granted by the Indonesia government in Papua,2018, export duties are determined based on regulations that were in effect in 2018 and no duties are required after smelter construction progress reached 50%. In March 2023, the Indonesia government verified that construction progress on the Manyar smelter exceeded 50% and PT-FI's export duties were eliminated effective March 29, 2023.

In July 2023, the Ministry of Finance issued a revised regulation on duties for additional taxesvarious exported products, including copper concentrates. The revised regulation assesses export duties for copper concentrates at 7.5% in the second half of 2023 and penalties10% in 2024 for companies with smelter progress of 70% to 90%. For companies with smelter progress above 90%, export duties would be 5% in the second half of 2023 and 7.5% in 2024. During third-quarter 2023, PT-FI incurred $147 million in export duties under the revised regulation. PT-FI does not believe any export duties should be assessed under the revised regulation and continues to discuss the applicability of the revised regulation with the Indonesia government because of inconsistencies with its IUPK. Additionally, PT-FI is required by the Indonesia government to provide bank guarantees for unpaid export duties, which have been presented as current restricted cash and cash equivalents at September 30, 2023.

Smelter Development Progress. In 2018, PT-FI agreed to expand its domestic smelting and refining capacity to process all of its copper concentrates in Indonesia. PT-FI is advancing the construction of the Indonesia smelter projects and expanding capacity at PT Smelting. PT-FI estimates construction of the Manyar smelter to be complete in mid-2024 followed by commissioning of the facilities and a ramp-up schedule through year-end 2024.

As disclosed in Note 12 of FCX’s 2022 Form 10-K, in March 2022, PT-FI paid the Indonesia government an administrative fine totaling $57 million (which included charges of $41 million recorded in first-quarter 2022) related to surface water taxessmelter development delays in light of the COVID-19 pandemic.

In May 2023, MEMR issued a decree prescribing a revised formula for administrative fines for delays in construction of smelter and refining facilities, taking into account allowances for certain delays associated with the COVID-19 pandemic as verified by a third-party. In mid-July 2023, PT-FI submitted its third-party verified calculation, which resulted in an accrual for a potential administrative fine of $55 million based on the formula prescribed by the decree related to the period from August 2020 through January 2011 through September 2017.2022. PT-FI is filing objectionscontinues to these assessments. During 2017,discuss the applicability of this administrative fine with MEMR. Based on PT-FI’s revised smelter construction schedule, which was accepted by the Indonesia Tax Court issued rulings against PT-FI with respect to assessments for additional taxes and penalties for the period from January 2011 through December 2015 in the amount of $402 million (based on the exchange rate as of September 30, 2017, and including $240 million in penalties). The aggregate amount of assessments received from January 2016 through September 2017 was an additional $114 million, including penalties (based on the exchange rate as of September 30, 2017). No charges have been recorded for these assessments as of September 30, 2017, because PT-FI believes its Contract of Work (COW) exempts it from these payments and that it has the right to contest these assessments (in which FCX estimates the total exposure based on the exchange rate as of September 30, 2017, totals $516 million, including penalties) in the Indonesia Tax Court and ultimately the Indonesia Supreme Court. As of November 7, 2017, PT-FI has not paid and does not intend to pay these assessments unless there is a mechanism established to secure a refund for any such payments upon the final court decision. Additionally, PT-FI is seeking to address this mattergovernment in connection with the ongoing negotiationsrenewal of PT-FI's export license in early 2022, PT-FI does not believe any additional fines should be assessed under the decree.

Smelter Assurance. PT-FI has an assurance bond to support its commitment for additional smelter development in Indonesia, totaling $135 million at September 30, 2023, for which the terms have been fulfilled (refer to Note 7). In August 2023, PT-FI submitted a request to MEMR for release of the assurance bond and is awaiting a response.

The decree issued by MEMR in May 2023 also requires assurance in the form of an escrow account that will be released if smelter development progress reaches 90% of the construction plan by June 10, 2024. During third-quarter 2023, PT-FI deposited $10 million in a joint account with the IndonesianIndonesia government while it continues to resolve PT-FI’s long-term operating rights.discuss the applicability of the May 2023 decree with the Indonesia government. If the May 2023 decree is determined to be applicable, PT-FI may be required to make an additional refundable deposit of approximately $370 million.
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Export Proceeds. In accordance with a regulation issued by the Indonesia Mining Contract. The following information includes updates to the discussiongovernment that became effective August 1, 2023, 30% of PT-FI’s COW included in Note 13 of FCX’s annual report on Form 10-K for the year ended December 31, 2016.

In January and February 2017, the Indonesian government issued new regulations to address thegross export of unrefined metals, including copper concentrate and anode slimes, and other matters related to the mining sector. The new regulations permit the continuation of copper concentrate exportsproceeds are being temporarily deposited into Indonesia banks for a five-year period through January 2022, subject to various conditions, including conversion from a contract of work to a special operating license (known as an IUPK, which does not provide the same level of fiscal90 days before withdrawal. At September 30, 2023, FCX had $0.5 billion in current restricted cash and legal protections as PT-FI’s COW, which remains in effect), a commitment to the completion of smelter construction in five years and payment of export duties to be determined by the Ministry of Finance. In addition, the new regulations enable application for an extension of operating rights five years before expiration of the IUPK and require foreign IUPK holders to divest a 51 percent interest in the licensed entity to Indonesian interests no later than the tenth year of production. Export licenses would be valid for one-year periods, subject to review every six months, depending on smelter construction progress.

Following the issuance of the January and February 2017 regulations and discussions with the Indonesian government, PT-FI advised the government that it was prepared to convert its COW to an IUPK, subject to obtaining an investment stability agreement providing contractual rights with the same level of legal and fiscal certainty enumerated under its COW, and provided that the COW would remain in effect until it is replaced by a mutually satisfactory alternative. PT-FI also committed to commence construction of a new smelter during a five-year time frame, following approval of the extension of its long-term operating rights.

On January 12, 2017, PT-FI suspended exports in response to Indonesian regulations adopted in January 2014. In addition, as a result of labor disturbances and a delay in the renewal of its export license for anode slimes, PT Smelting’s operations (PT-FI’s 25 percent-owned smelter in Indonesia) were shut down from January 19, 2017, until early March 2017. On February 10, 2017, PT-FI was forced to suspend production as a result of limited storage capacity at PT-FI and PT Smelting. On April 21, 2017, the Indonesian government issued a permit to PT-FI that allowed exports to resume for a six-month period, and PT-FI commenced export shipments.

In mid-February 2017, pursuant to the COW’s dispute resolution process, PT-FI provided formal notice to the Indonesian government of an impending dispute listing the government's breaches and violations of the COW. PT-FI continues to reserve its rights under these provisions.

As a result of the 2017 regulatory restrictions and uncertainties regarding long-term investment stability, PT-FI took actions to adjust its cost structure, slow investments in its underground development projects and new smelter, and place certain of its workforce on furlough programs.

In late March 2017, the Indonesian government amended the regulations to enable PT-FI to retain its COW until replaced with an IUPK accompanied by an investment stability agreement, and to grant PT-FI a temporary IUPK through October 10, 2017, that would allow concentrate exports to resume during this period. In April 2017, PT-FI entered into a Memorandum of Understanding with the Indonesian government confirming that the COW would continue to be valid and honored until replaced by a mutually agreed IUPK and investment stability agreement. PT-FI agreed to continue to pay a five percent export duty during this period.

In August 2017, FCX and the Indonesian government reached an understanding on a framework that would resolve PT-FI’s long-term operating rights. This framework includes (i) conversion from the COW to an IUPK providing PT-FI with long-term operating rights through 2041, (ii) Indonesian government certainty of fiscal and legal terms during the term of the IUPK, (iii) PT-FI commitment to construct a new smeltercash equivalents deposited in Indonesia within five years of reaching a definitive agreement, and (iv) divestment of 51 percent of the project area interests to Indonesian participants at fair market value structured so that FCX retains control over operations and governance of PT-FI. FCX cannot currently predict whether there will be any material accounting and tax implications associatedbanks in accordance with the divestment.this regulation.


The framework requires documentation and execution of a definitive agreement, which must be approved by the FCX Board of Directors and joint venture partner Rio Tinto. The parties continue to negotiate to reach agreement on important aspects of implementation of the framework, including the timing and process of divestment, governance matters, and the determination of fair market value, and to complete documentation on a comprehensive agreement for PT-FI’s operations through 2041. The parties have expressed a mutual objective of completing the negotiations and documentation during 2017.
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In October 2017, the Indonesian government extended PT-FI’s export rights to December 31, 2017, while negotiations to reach and document a comprehensive long-term definitive agreement based on the agreed framework continue.

Until a definitive agreement is reached, PT-FI has reserved all rights under its COW, including pursuing arbitration under the dispute resolution provisions.

NOTE 10.9. BUSINESS SEGMENTS

FCX has organized its mining operations into four 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
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Morenci and Cerro Verde andcopper mines, the Grasberg minerals district (Indonesia Mining) copper mines,, the Rod & Refining operations and Atlantic Copper Smelting & Refining.

FCX’s reportable segments previously included U.S. Oil & Gas operations. During 2016, FCX completed the sales of its Deepwater Gulf of Mexico, onshore California and Haynesville oil and gas properties. As a result, beginning in 2017, the U.S. oil and gas operations no longer qualify as a reportable segment, and oil and gas results for all periods presented have been included in Corporate, Other & Eliminations in the following tables. Refer to Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for additional information.

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 minesmining operations to other divisions, including Atlantic Copper (FCX’s wholly owned smelter and refinery in Spain) and(and on 25 percent39.5% of PT-FI’s sales to PT Smelting (PT-FI’s 25-percent-owned smelter and refinery in Indonesia),for the 2022 periods) 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.

Beginning January 1, 2023, PT-FI's commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to a tolling arrangement. Under this arrangement, PT-FI pays PT Smelting a tolling fee to smelt and refine its copper concentrate and PT-FI retains title to all products for sale to third parties (i.e., there are no further sales from PT-FI to PT Smelting). While the new tolling agreement with PT Smelting does not significantly change PT-FI’s economics, it impacts the timing of PT-FI’s sales and working capital requirements.

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 segment informationFinancial 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.



Product Revenues. FCX’s revenues attributable to the products it sold for the third quarter and first nine months of 2023 and 2022 follow (in millions):

Three Months EndedNine Months Ended
September 30,September 30,
 2023202220232022
Copper:
Concentrate$2,365 $2,091 $6,137 $7,476 
Cathode1,331 1,255 4,016 3,873 
Rod and other refined copper products992 755 2,797 2,942 
Purchased coppera
71 168 347 342 
Gold854 858 2,384 2,578 
Molybdenum479 304 1,562 1,059 
Otherb
136 174 439 527 
Adjustments to revenues:
Treatment chargesc
(151)(132)(394)(404)
Royalty expensed
(80)(83)(234)(289)
PT-FI export dutiese
(133)(81)(147)(263)
Revenues from contracts with customers5,864 5,309 16,907 17,841 
Embedded derivativesf
(40)(306)43 (819)
Total consolidated revenues$5,824 $5,003 $16,950 $17,022 
a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.Primarily includes revenues associated with silver.
c.Treatment charges for the third quarter and first nine months of 2023 exclude tolling costs paid to PT Smelting, which are recorded as production costs in the consolidated statements of income.
d.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
e.Refer to Note 8 for further discussion of PT-FI export duties.
f.Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.
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Financial Information by Business SegmentsSegment
(in Millions)AtlanticCorporate,
North America Copper MinesSouth America MiningCopperOther
CerroIndonesiaMolybdenumRod &Smelting& Elimi-FCX
MorenciOtherTotalVerdeOtherTotalMiningMinesRefining& RefiningnationsTotal
Three Months Ended September 30, 2023           
Revenues:            
Unaffiliated customers$17 $22 $39 $822 $203 $1,025 $2,030 $— $1,566 $692 $472 a$5,824 
Intersegment624 994 1,618 219 — 219 65 147 12 8 (2,069)— 
Production and delivery476 799 1,275 648 178 826 667 

120 1,566 680 (1,586)3,548 
DD&A47 63 110 94 17 111 271 14 2 7 18 533 
Metals inventory adjustments4 — 4 1 — 1 — — — — — 5 
Selling, general and administrative expenses— 1 1 3 — 3 32 — — 6 76 118 
Mining exploration and research expenses— 1 1 — — — — — — — 29 30 
Environmental obligations and shutdown costs— 4 4 — — — — — — — 94 98 
Operating income (loss)114 148 262 295 8 303 1,125 13 10 7 (228)1,492 
Interest expense, net— 1 1 (10)b— (10)10 — — 8 87 96 
Net gain on early extinguishment of debt— — — — — — — — — — 5 5 
Other (expense) income, net(2)(9)(11)(9)13 4 30 — — 5 43 71 
Provision for (benefit from) income taxes— — — 119 12 131 419 — — — (42)508 
Equity in affiliated companies' net (losses) earnings— — — — — — (2)— — — 2 — 
Net income attributable to noncontrolling interests— — — 84 14 98 392 c— — — 20 510 
Total assets at September 30, 20233,171 5,799 8,970 8,227 1,893 10,120 21,020 1,747 288 1,176 8,327 51,648 
Capital expenditures53 114 167 61 15 76 441 21 2 20 451 d1,178 
Three Months Ended September 30, 2022            
Revenues:            
Unaffiliated customers$18 $74 $92 $666 $215 $881 $1,726 e$— $1,436 $604 $264 a$5,003 
Intersegment551 805 1,356 

83 — 83 72 127 7 5 (1,650)— 
Production and delivery408 736 1,144 579 221 800 663 94 1,450 604 

(1,389)3,366 
DD&A44 56 100 84 14 98 265 18 1 8 18 508 
Metals inventory adjustments2 1 3 2 20 22 — — — — — 25 
Selling, general and administrative expenses— 1 1 2 — 2 26 — — 6 63 98 
Mining exploration and research expenses— — — — — — — — — — 38 38 
Environmental obligations and shutdown costs— 1 1 — — — — — — — 5 6 
Operating income (loss)115 84 199 82 (40)42 844 15 (8)(9)(121)962 
Interest expense, net— 1 1 5 — 5 15 — — 4 115 140 
Net gain on early extinguishment of debt— — — — — — — — — — 20 20 
Other (expense) income, net— (8)(8)(21)5 (16)19 (1)— 11 20 25 
Provision for (benefit from) income taxes— — — 3 (18)(15)343 — — — (13)315 
Equity in affiliated companies' net earnings— — — — — — 7 — — — 1 8 
Net income attributable to noncontrolling interests— — — 29 11 40 105 c— — — 11 156 
Total assets at September 30, 20222,996 5,456 8,452 8,390 1,826 10,216 20,496 1,701 216 1,082 7,764 49,927 
Capital expenditures71 83 154 41 38 79 389 7 2 17 188 d836 
22
                         
(In millions)      
                 
                   Atlantic Corporate,   
 North America Copper Mines South America       Copper Other   
       Cerro     Indonesia Molybdenum Rod & Smelting & Elimi- FCX 
 Morenci Other Total Verde Other Total Mining Mines Refining & Refining 
nationsa
 Total 
Three Months Ended September 30, 2017                        
Revenues:                        
Unaffiliated customers$57
 $40
 $97
 $850
 $109
 $959
 $1,121
b 
$—
 $1,137
 $554
 $442
c 
$4,310
 
Intersegment460
 548
 1,008
 64
 —
 64
 —
 65
 8
 1
 (1,146) —
 
Production and delivery244
 414
 658
 683
d 
76
 759
 406
 58
 1,141
 533
 (753) 2,802
 
Depreciation, depletion and amortization42
 54
 96
 116
 18
 134
 136
 20
 2
 7
 23
 418
 
Selling, general and administrative expenses1
 1
 2
 2
 —
 2
 32
 —
 —
 4
 66
 106
 
Mining exploration and research expenses—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 27
 27
 
Environmental obligations and shutdown costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 73
 73
 
Net gain on sales of assets—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (33) (33) 
Operating income (loss)230
 119
 349
 113
 15
 128
 547
 (13) 2
 11
 (107) 917
 
                         
Interest expense, net1
 —
 1
 156
d 
—
 156
 1
 —
 —
 5
 141
 304
 
Provision for income taxes—
 —
 —
 134
d 
5
 139
 233
 —
 —
 1
 14
 387
 
Total assets at September 30, 20172,844
 4,223
 7,067
 8,851
 1,595
 10,446
 11,100
 1,885
 264
 751
 5,814
e 
37,327
 
Capital expenditures26
 13
 39
 17
 3
 20
 206
 2
 1
 5
 41
 314
 
                         
Three Months Ended September 30, 2016                        
Revenues:                        
Unaffiliated customers$115
 $112
 $227
 $505
 $112
 $617
 $984
b 
$—
 $930
 $445
 $674
c 
$3,877
 
Intersegment358
 499
 857
 54
 —
 54
 2
 46
 7
 —
 (966) —
 
Production and delivery275
 464
 739
 333
 91
 424
 478
 57
 931
 416
 (516)
f 
2,529
 
Depreciation, depletion and amortization51
 78
 129
 109
 25
 134
 110
 15
 2
 7
 246
 643
 
Impairment of oil and gas properties—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 239
 239
 
Selling, general and administrative expenses1
 —
 1
 1
 1
 2
 24
 —
 —
 5
 78
 110
 
Mining exploration and research expenses—
 1
 1
 —
 —
 —
 —
 —
 —
 —
 12
 13
 
Environmental obligations and shutdown costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (3) (3) 
Net loss (gain) on sales of assets1
 —
 1
 —
 —
 —
 —
 —
 —
 —
 (14) (13) 
Operating income (loss)145
 68
 213
 116
 (5) 111
 374
 (26) 4
 17
 (334) 359
 
                         
Interest expense, net1
 —
 1
 21
 —
 21
 —
 —
 —
 3
 162
 187
 
Provision for (benefit from) income taxes—
 —
 —
 36
 (4) 32
 158
 —
 —
 4
 (308) (114) 
Total assets at September 30, 20162,881
 4,540
 7,421
 9,139
 1,551
 10,690
 9,718
 1,953
 238
 565
 10,815
e 
41,400
 
Capital expenditures6
 5
 11
 38
 1
 39
 253
 1
 —
 5
 185
g 
494
 
a.Includes U.S. oil and gas operations, which were previously a reportable segment.
b.Includes PT-FI's sales to PT Smelting totaling $652 million in third-quarter 2017 and $348 million in third-quarter 2016.
c.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.
d.Includes net charges of $216 million in production and delivery costs, $141 million in interest expense and $2 million in provision for income taxes associated with disputed royalties for prior years.
e.Includes assets held for sale totaling $549 million at September 30, 2017, primarily associated with Freeport Cobalt and the Kisanfu exploration project, and $5.1 billion at September 30, 2016, which also included discontinued operations. Also includes assets associated with oil and gas operations of $272 million at September 30, 2017, and $3.5 billion at September 30, 2016.
f.Includes net charges for oil and gas operations totaling $49 million, primarily for idle rig costs, inventory adjustments and the termination of the Morocco well commitment.
g.Includes $160 million associated with oil and gas operations and $15 million associated with discontinued operations.

Table of Contents

Financial Information by Business Segment (continued)
(In Millions)     
AtlanticCorporate,
North America Copper MinesSouth America MiningCopperOther
CerroIndonesiaMolybdenumRod &Smelting& Elimi-FCX
MorenciOtherTotalVerdeOtherTotalMiningMinesRefining& RefiningnationsTotal
Nine Months Ended September 30, 2023           
Revenues:            
Unaffiliated customers$75 $133 $208 $2,563 $627 $3,190 $5,268 e$— $4,552 $2,185 $1,547 a$16,950 
Intersegment1,787 2,922 4,709 638 — 638 432 520 28 19 (6,346)— 
Production and delivery1,279 2,324 3,603 1,877 539 2,416 1,860 f321 4,558 2,139 (4,637)10,260 
DD&A132 180 312 302 48 350 694 48 4 21 50 1,479 
Metals inventory adjustments5 — 5 1 — 1 — — — — 1 7 
Selling, general and administrative expenses1 2 3 7 — 7 90 — — 21 238 359 
Mining exploration and research expenses— 2 2 — — — — — — — 101 103 
Environmental obligations and shutdown costs— 26 26 — — — — — — — 213 239 
Operating income (loss)445 521 966 1,014 40 1,054 3,056 151 18 23 (765)4,503 
Interest expense, net— 1 1 74 b— 74 32 — — 22 289 418 
Net gain on early extinguishment of debt— — — — — — — — — — 10 10 
Other (expense) income, net(4)(8)(12)(36)11 (25)92 (1)(1)— 130 183 
Provision for (benefit from) income taxes— — — 419 19 438 1,159 — — — (51)1,546 
Equity in affiliated companies' net earnings— — — — — — 9 — — — 3 12 
Net income (loss) attributable to noncontrolling interests— — — 242 34 276 1,031 c— — — (23)1,284 
Capital expenditures176 369 545 179 80 259 1,274 43 9 43 1,289 d3,462 
Nine Months Ended September 30, 2022           
Revenues:            
Unaffiliated customers$125 $159 $284 $2,474 $555 $3,029 $5,972 e$— $4,932 $1,755 $1,050 a$17,022 
Intersegment1,992 2,978 4,970 

325 — 325 208 399 24 5 (5,931)— 
Production and delivery1,168 2,111 3,279 1,702 510 2,212 1,853 f249 4,969 1,789 g(4,832)9,519 
DD&A132 175 307 262 35 297 775 52 3 20 50 1,504 
Metals inventory adjustments2 8 10 11 22 33 — — — — — 43 
Selling, general and administrative expenses1 2 3 6 — 6 83 — — 19 202 313 
Mining exploration and research expenses— 1 1 — — — — — — — 86 87 
Environmental obligations and shutdown costs(13)1 (12)— — — — — — — 63 51 
Net gain on sales of assets— — — — — — — — — — (2)(2)
Operating income (loss)827 839 1,666 818 (12)806 3,469 98 (16)(68)(448)5,507 
Interest expense, net— 1 1 12 — 12 30 — — 8 372 423 
Net (loss) gain on early extinguishment of debt— — — — — — (10)— — — 38 28 
Other (expense) income, net(1)(32)(33)(11)12 1 27 (1)(1)29 45 67 
Provision for (benefit from) income taxes— — — 298 (11)287 1,363 — — — 60 1,710 
Equity in affiliated companies' net earnings— — — — — — 27 — — — 6 33 
Net income attributable to noncontrolling interests— — — 247 25 272 436 c— — — 23 731 
Capital expenditures207 223 430 109 94 203 1,148 16 6 60 559 d2,422 
23
                         
(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 
nationsa
 Total 
Nine Months Ended September 30, 2017                        
Revenues:                        
Unaffiliated customers$168
 $122
 $290
 $2,057
 $332
 $2,389
 $2,720
b 
$—
 $3,290
 $1,412
 $1,261
c 
$11,362
 
Intersegment1,354
 1,704
 3,058
 237
 —
 237
 —
 199
 22
 1
 (3,517) —
 
Production and delivery772
 1,284
 2,056
 1,450
d 
245
 1,695
 1,233
e 
169
 3,299
 1,369
 (2,324) 7,497
 
Depreciation, depletion and amortization138
 192
 330
 332
 60
 392
 372
 58
 7
 21
 77
 1,257
 
Selling, general and administrative expenses2
 2
 4
 7
 —
 7
 92
e 
—
 —
 13
 250
 366
 
Mining exploration and research expenses—
 2
 2
 —
 —
 —
 —
 —
 —
 —
 59
 61
 
Environmental obligations and shutdown costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 81
 81
 
Net gain on sales of assets—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (66) (66) 
Operating income (loss)610
 346
 956
 505
 27
 532
 1,023
 (28) 6
 10
 (333) 2,166
 
                         
Interest expense, net2
 1
 3
 187
d 
—
 187
 1
 —
 —
 13
 429
 633
 
Provision for income taxes—
 —
 —
 288
d 
10
 298
 435
 —
 —
 4
 10
 747
 
Capital expenditures78
 28
 106
 60
 5
 65
 663
 4
 3
 30
 149
 1,020
 
                         
Nine Months Ended September 30, 2016                        
Revenues:                        
Unaffiliated customers$356
 $211
 $567
 $1,485
 $379
 $1,864
 $2,014
b 
$—
 $2,820
 $1,360

$1,828
c 
$10,453
 
Intersegment1,119
 1,594
 2,713
 155
 —
 155
 59
 136
 22
 3
 (3,088) —
 
Production and delivery913
 1,340
 2,253
 927
 313
 1,240
 1,228
 159
 2,820
 1,275
 (991)
f 
7,984
 
Depreciation, depletion and amortization170
 237
 407
 319
 83
 402
 284
 51
 7
 22
 764
 1,937
 
Impairment of oil and gas properties

—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 4,317

4,317
 
Selling, general and administrative expenses2
 2
 4
 5
 1
 6
 60
 —
 —
 13
 325
f 
408
 
Mining exploration and research expenses—
 2
 2
 —
 —
 —
 —
 —
 —
 —
 44
 46
 
Environmental obligations and shutdown costs—
 —
 —
 —
 —
 —
 —
 —
 —
 —
 18
 18
 
Net gain on sales of assets

(576) —
 (576) —
 —
 —
 —
 —
 —
 —
 (186) (762) 
Operating income (loss)966
 224
 1,190
 389
 (18) 371
 501
 (74) 15
 53
 (5,551) (3,495) 
                         
Interest expense, net2
 1
 3
 63
 —
 63
 —
 —
 —
 11
 497
 574
 
Provision for (benefit from) income taxes—
 —
 —
 126
 (12) 114
 212
 —
 —
 5
 (252) 79
 
Capital expenditures71
 16
 87
 329
 3
 332
 706
 2
 1
 12
 1,169
g 
2,309
 
a.Includes U.S. oil and gas operations, which were previously a reportable segment.
b.Includes PT-FI’s sales to PT Smelting totaling $1.4 billion for the first nine months of 2017 and $912 million for the first nine months of 2016.
c.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.
d.Includes net charges of $216 million in production and delivery costs, $141 million in interest expense and $2 million in provision for income taxes associated with disputed royalties for prior years.
e.Includes net charges of $112 million in production and delivery costs and $5 million in selling, general and administrative expenses for PT-FI workforce reductions.
f.Includes net charges for oil and gas operations of $942 million in production and delivery costs, primarily for drillship settlements/idle rig costs and inventory adjustments and $38 million for net restructuring charges.
g.Includes $1.1 billion associated with oil and gas operations and $70 million associated with discontinued operations.

Table of Contents

Financial Information by Business Segment (continued)
NOTE 11. GUARANTOR FINANCIAL STATEMENTS

Alla.Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the senior notesNorth America and South America copper mines.
b.The third quarter and first nine months of 2023 include a $13 million credit for the settlement of interest on Cerro Verde's historical profit sharing liability. The first nine months of 2023 also includes $74 million of interest charges associated with contested tax rulings issued by the Peruvian Supreme Court.
c.FCX’s economic interest in PT-FI is 48.76% and prior to January 1, 2023, it approximated 81%. Refer to Note 1 for further discussion of first-quarter 2023 gold sales volumes that were attributed approximately 81% to FCX in accordance with the PT-FI shareholders agreement.
d.Primarily includes capital expenditures for the Indonesia smelter projects.
e.Includes PT-FI sales to PT Smelting totaling $572 million in third-quarter 2022, $27 million for the first nine months of 2023 (reflecting adjustments to prior period provisionally priced concentrate sales) and $2.3 billion for the first nine months of 2022. Beginning January 1, 2023, there are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100-percent-owned subsidiary of FM O&G and FCX. The guarantee is an unsecured obligationno sales from PT-FI to PT Smelting (refer to above discussion of the guarantortolling arrangement between PT-FI and ranks equal in rightPT Smelting).
f.Includes charges for administrative fines of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under FCX’s 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 may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolving credit facility or any other senior debt or, in each case, any refinancing thereof.

The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at September 30, 2017, and December 31, 2016, and the related condensed consolidating statements of comprehensive income (loss)$55 million for the three andfirst nine months ended September 30, 2017of 2023 and 2016, and the condensed consolidating statements of cash flows$41 million for the first nine months ended September 30, 2017of 2022. Refer to Note 8 for further discussion.
g.Includes maintenance charges and 2016 (in millions), which should be read in conjunctionidle facility costs associated with FCX’s notes tomajor maintenance turnarounds totaling $41 million at Atlantic Copper for the consolidated financial statements.first nine months of 2022.


CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2017

24
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
ASSETS         
Current assets$197
 $716
 $10,948
 $(711) $11,150
Property, plant, equipment and mine development costs, net15
 11
 22,899
 (11) 22,914
Oil and gas properties, subject to amortization, less accumulated amortization and impairments—
 —
 20
 —
 20
Investments in consolidated subsidiaries20,178
 —
 —
 (20,178) —
Other assets479
 36
 3,193
 (465) 3,243
Total assets$20,869
 $763
 $37,060
 $(21,365) $37,327
          
LIABILITIES AND EQUITY         
Current liabilities$2,402
 $111
 $3,820
 $(816) $5,517
Long-term debt, less current portion10,600
 6,428
 5,621
 (10,082) 12,567
Deferred income taxes832
a 
—
 2,939
 —
 3,771
Environmental and asset retirement obligations, less current portion—
 208
 3,290
 —
 3,498
Investments in consolidated subsidiaries—
 850
 10,174
 (11,024) —
Other liabilities62
 3,341
 1,828
 (3,487) 1,744
Total liabilities13,896
 10,938
 27,672
 (25,409) 27,097
          
Equity:         
Stockholders’ equity6,973
 (10,175) 6,782
 3,393
 6,973
Noncontrolling interests—
 —
 2,606
 651
 3,257
Total equity6,973
 (10,175) 9,388
 4,044
 10,230
Total liabilities and equity$20,869
 $763
 $37,060
 $(21,365) $37,327
a.All U.S.-related deferred income taxes are recorded at the parent company.
Table of Contents

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2016
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
ASSETS         
Current assets$230
 $1,790
 $11,675
 $(3,260) $10,435
Property, plant, equipment and mine development costs, net19
 24
 23,176
 —
 23,219
Oil and gas properties, subject to amortization, less accumulated amortization and impairments—
 —
 74
 —
 74
Investments in consolidated subsidiaries21,110
 —
 —
 (21,110) —
Other assets1,985
 47
 3,522
 (1,965) 3,589
Total assets$23,344
 $1,861
 $38,447
 $(26,335) $37,317
          
LIABILITIES AND EQUITY         
Current liabilities$3,895
 $308
 $3,306
 $(3,244) $4,265
Long-term debt, less current portion12,517
 6,062
 11,297
 (15,081) 14,795
Deferred income taxes826
a 
—
 2,942
 —
 3,768
Environmental and asset retirement obligations, less current portion—
 200
 3,287
 —
 3,487
Investments in consolidated subsidiary—
 893
 8,995
 (9,888) —
Other liabilities55
 3,393
 1,784
 (3,487) 1,745
Total liabilities17,293
 10,856
 31,611
 (31,700) 28,060
          
Equity:         
Stockholders’ equity6,051
 (8,995) 4,237
 4,758
 6,051
Noncontrolling interests—
 —
 2,599
 607
 3,206
Total equity6,051
 (8,995) 6,836
 5,365
 9,257
Total liabilities and equity$23,344
 $1,861
 $38,447
 $(26,335) $37,317
a.All U.S.-related deferred income taxes are recorded at the parent company.

Table of Contents

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
          
Three Months Ended September 30, 2017         
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
Revenues$—
 $13
 $4,297
 $—
 $4,310
Total costs and expenses8
 25
 3,361
 (1) 3,393
Operating (loss) income(8) (12) 936
 1
 917
Interest expense, net(116) (59) (218) 89
 (304)
Other income (expense), net97
 3
 2
 (89) 13
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)(27) (68) 720
 1
 626
Benefit from (provision for) income taxes21
 24
 (432) —
 (387)
Equity in affiliated companies’ net earnings (losses)286
 20
 (20) (283) 3
Net income (loss) from continuing operations280
 (24) 268
 (282) 242
Net income from discontinued operations—
 —
 3
 —
 3
Net income (loss)280
 (24) 271
 (282) 245
Net loss (income) attributable to noncontrolling interests:         
Continuing operations—
 —
 69
 (34) 35
Discontinued operations—
 —
 —
 —
 —
Net income (loss) attributable to common stockholders$280
 $(24) $340
 $(316) $280
          
Other comprehensive income (loss)13
 —
 13
 (13) 13
Total comprehensive income (loss)$293
 $(24) $353
 $(329) $293
          
Three Months Ended September 30, 2016         
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
Revenues$—
 $110
 $3,767
 $—
 $3,877
Total costs and expenses12
 266
a 
3,239
a 
1
 3,518
Operating (loss) income(12) (156) 528
 (1) 359
Interest expense, net(126) (18) (132) 89
 (187)
Other income (expense), net91
 —
 (10) (76) 5
(Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings(47) (174) 386
 12
 177
Benefit from (provision for) income taxes343
 (197) (40) 8
 114
Equity in affiliated companies’ net (losses) earnings(75) (218) (589) 883
 1
Net income (loss) from continuing operations221
 (589) (243) 903
 292
Net (loss) income from discontinued operations(4) —
 10
 (12) (6)
Net income (loss)217
 (589) (233) 891
 286
Net income and preferred dividends attributable to noncontrolling interests:         
Continuing operations—
 —
 (24) (23) (47)
Discontinued operations—
 —
 (22) —
 (22)
Net income (loss) attributable to common stockholders$217
 $(589) $(279) $868
 $217
          
Other comprehensive income (loss)12
 —
 12
 (12) 12
Total comprehensive income (loss)$229
 $(589) $(267) $856
 $229
a.Includes charges totaling $95 million at the FM O&G LLC guarantor and $0.2 billion at the non-guarantor subsidiaries related to impairment of FCX’s oil and gas properties pursuant to full cost accounting rules.


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CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Nine Months Ended September 30, 2017         
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
Revenues$—
 $38
 $11,324
 $—
 $11,362
Total costs and expenses31
 86
 9,068
 11
 9,196
Operating (loss) income(31) (48) 2,256
 (11) 2,166
Interest expense, net(355) (167) (363) 252
 (633)
Other income (expense), net256
 3
 37
 (252) 44
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)(130) (212) 1,930
 (11) 1,577
(Provision for) benefit from income taxes(111) 74
 (714) 4
 (747)
Equity in affiliated companies’ net earnings (losses)1,017
 14
 (118) (907) 6
Net income (loss) from continuing operations776
 (124) 1,098
 (914) 836
Net income from discontinued operations—
 —
 50
 —
 50
Net income (loss)776
 (124) 1,148
 (914) 886
Net income attributable to noncontrolling interests:         
Continuing operations—
 —
 (42) (64) (106)
Discontinued operations—
 —
 (4) —
 (4)
Net income (loss) attributable to common stockholders$776
 $(124) $1,102
 $(978) $776
          
Other comprehensive income (loss)105
 —
 105
 (105) 105
Total comprehensive income (loss)$881
 $(124) $1,207
 $(1,083) $881

Nine Months Ended September 30, 2016         
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
Revenues$—
 $294
 $10,159
 $—
 $10,453
Total costs and expenses56
 2,859
a 
11,026
a 
7
 13,948
Operating loss(56) (2,565) (867) (7) (3,495)
Interest expense, net(404) (37) (370) 237
 (574)
Other income (expense), net248
 —
 59
 (202) 105
(Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings(212) (2,602) (1,178) 28
 (3,964)
(Provision for) benefit from income taxes(1,785) 725
 979
 2
 (79)
Equity in affiliated companies’ net (losses) earnings(2,450) (3,202) (5,072) 10,733
 9
Net (loss) income from continuing operations(4,447) (5,079) (5,271) 10,763
 (4,034)
Net income (loss) from discontinued operations1
 —
 (159) (33) (191)
Net (loss) income(4,446) (5,079) (5,430) 10,730
 (4,225)
Net income and preferred dividends attributable to noncontrolling interests:         
Continuing operations—
 —
 (141) (36) (177)
Discontinued operations—
 —
 (44) —
 (44)
Net (loss) income attributable to common stockholders$(4,446) $(5,079) $(5,615) $10,694
 $(4,446)
          
Other comprehensive income (loss)27
 —
 27
 (27) 27
Total comprehensive (loss) income$(4,419) $(5,079) $(5,588) $10,667
 $(4,419)
a.Includes charges totaling $1.5 billion at the FM O&G LLC guarantor and $2.8 billion at the non-guarantor subsidiaries related to impairment of FCX’s oil and gas properties pursuant to full cost accounting rules.
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CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2017         
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
 Net cash (used in) provided by operating activities$(222) $(383) $3,623
 $—
 $3,018
          
Cash flow from investing activities:         
Capital expenditures—
 (24) (996) —
 (1,020)
Intercompany loans(609) —
 —
 609
 —
Dividends from (investments in) consolidated subsidiaries1,757
 (16) 93
 (1,834) —
Asset sales and other, net—
 58
 (12) —
 46
Net cash provided by (used in) investing activities1,148
 18
 (915) (1,225) (974)
          
Cash flow from financing activities:         
Proceeds from debt—
 —
 795
 —
 795
Repayments of debt(915) (139) (937) —
 (1,991)
Intercompany loans—
 512
 97
 (609) —
Cash dividends paid and contributions received, net(2) —
 (1,839) 1,772
 (69)
Other, net(9) (11) (64) 62
 (22)
Net cash (used in) provided by financing activities(926) 362
 (1,948) 1,225
 (1,287)
          
Net increase in cash and cash equivalents—
 (3) 760
 —
 757
Increase in cash and cash equivalents in assets held for sale—
 —
 (45) —
 (45)
Cash and cash equivalents at beginning of period—
 3
 4,242
 —
 4,245
Cash and cash equivalents at end of period$—
 $—
 $4,957
 $—
 $4,957
Nine Months Ended September 30, 2016         
 FCX FM O&G LLC Non-guarantor   Consolidated
 Issuer Guarantor Subsidiaries Eliminations FCX
 Net cash (used in) provided by operating activities$(264) $(294) $3,151
 $1
 $2,594
          
Cash flow from investing activities:         
Capital expenditures—
 (497) (1,814) 2
 (2,309)
Intercompany loans(1,021) (518) —
 1,539
 —
Dividends from (investments in) consolidated subsidiaries1,643
 (41) 124
 (1,726) —
Asset sales and other, net—
 208
 1,210
 (3) 1,415
Net cash provided by (used in) investing activities622
 (848) (480) (188) (894)
          
Cash flow from financing activities:         
Proceeds from debt1,721
 —
 1,742
 —
 3,463
Repayments of debt(2,498) —
 (2,041) —
 (4,539)
Intercompany loans—
 1,223
 316
 (1,539) —
Net proceeds from sale of common stock442
 —
 374
 (374) 442
Cash dividends paid and contributions received, net(5) (78) (2,096) 2,087
 (92)
Other, net(18) (2) (15) 13
 (22)
Net cash (used in) provided by financing activities(358) 1,143
 (1,720) 187
 (748)
          
Net increase in cash and cash equivalents—
 1
 951
 —
 952
Increase in cash and cash equivalents in assets held for sale—
 —
 (43) —
 (43)
Cash and cash equivalents at beginning of period—
 —
 177
 —
 177
Cash and cash equivalents at end of period$—
 $1
 $1,085
 $—
 $1,086


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NOTE 12. NEW ACCOUNTING STANDARDS

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) that provides a single comprehensive revenue recognition model, which will replace most existing revenue recognition guidance, and also requires expanded disclosures. The core principle of the model is that revenue is recognized when control of goods or services has been transferred to customers at an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, and interim reporting periods within that reporting period. FCX will adopt this ASU January 1, 2018, and currently expects to apply the modified retrospective approach under which any cumulative effect adjustment would be recorded to retained earnings as of the adoption date. FCX has substantially completed its review of the impact of this guidance, and based on the terms of its sales contracts, does not expect the guidance to have any impact on its revenue recognition policies or processes. FCX continues to review the impact of the new guidance on its financial reporting and disclosures.
In March 2016, FASB issued an ASU that simplifies various aspects of the accounting for share-based payment transactions, including the income tax consequences, statutory tax withholding requirements, an accounting policy election for forfeitures and the classification on the statement of cash flows. FCX adopted this ASU effective January 1, 2017, and adoption did not have a material impact on its financial statements.
In March 2017, FASB issued an ASU that changes how entities with a defined benefit pension or other postretirement benefit plans present net periodic benefit cost in the income statement. This ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item or items as other compensation costs for those employees who are receiving the retirement benefit. In addition, only the service cost component is eligible for capitalization when applicable (i.e., as a cost of inventory or an internally constructed asset). The other components of net periodic benefit cost are required to be presented separately from the service cost component and outside of operating income. These other components of net periodic benefit cost are not eligible for capitalization, and the income statement line item or items must be disclosed. For public entities, this ASU is effective for annual periods beginning after December 15, 2017, and interim reporting periods within that reporting period. Early adoption is permitted. FCX will adopt this ASU on January 1, 2018, and does not expect it to have a material impact on its presentation of the statements of operations.

NOTE 13. SUBSEQUENT EVENTS

FCX evaluated events after September 30, 2017, and through 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.
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REVIEW REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OFTo the Board of Directors and Stockholders of
FREEPORT-McMoRan INC.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, 2017, and2023, the related consolidated statements of operations andincome, comprehensive income, (loss)and equity for the three- and nine-month periods ended September 30, 20172023 and 2016,2022, the related consolidated statements of cash flows for the nine-month periods ended September 30, 20172023 and 2016,2022, 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 statement of equity for the nine-month period ended September 30, 2017. Theseinterim financial statements are the responsibility of the Company’s management.for them to be in conformity with U.S. generally accepted accounting principles.


We conducted our reviewhave 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, 2022, the related consolidated statements of income, comprehensive income, equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated February 15, 2023, 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, 2022, 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 informationstatements 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 Public Company Accounting Oversight Board (United States),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.


Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above 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), the consolidated balance sheet of Freeport-McMoRan Inc. as of December 31, 2016, and the related consolidated statements of operations, comprehensive loss, cash flows and equity for the year then ended (not presented herein) and we expressed an unqualified audit opinion on those consolidated financial statements in our report dated February 24, 2017. In our opinion, the accompanying consolidated balance sheet of Freeport-McMoRan Inc. as of December 31, 2016, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.




/s/ ERNSTErnst & YOUNGYoung LLP


Phoenix, Arizona
November 7, 20173, 2023
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Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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 Management’s Discussion and Analysis of Financial Condition and Results of OperationsMD&A and the discussion of our Business and Properties in our annual report on Form 10-K for the year ended December 31, 2016,2022 (2022 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.Statements (Unaudited). Throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations,MD&A, all references to earningsincome or losses per share are on a diluted basis. Additionally,Our website is for information only and the contents of our website or information connected thereto are not incorporated in, accordance with accounting guidelines, TF Holdings Limited (TFHL), through which we held a controlling interest in the Tenke Fungurume (Tenke) mine until it was sold on November 16, 2016, is reportedor otherwise to be regarded as a discontinued operation for all periods presented.part of, this Form 10-Q.


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 mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producer.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 the Americas,North America and South America, including the large-scale Morenci minerals district in North AmericaArizona and the Cerro Verde operation in South America.Peru.


Net income (loss) attributable to common stock totaled $280 million in third-quarter 2017, $217 million in third-quarter 2016, $776 millionOur results for the third quarter and first nine months of 20172023 reflect strong operating performance and $(4.4)continued execution of our business strategy. We remain focused on managing costs efficiently and continue to advance several important value-enhancing initiatives. Despite near-term global economic and market uncertainties, we are confident in our long-lived and high-quality asset base and have a favorable outlook on the long-term fundamentals for copper, driven by the global transition to clean energy. As a leading responsible supplier of copper with a strong balance sheet and a proven track record for successful project development, we believe we are well positioned to build long-term value for the benefit of our stakeholders.

Our near-term organic development pipeline is highlighted by our leach innovation initiatives, which we believe have the potential to provide substantial value from our existing leach material and reduce capital intensity for future projects. During third-quarter 2023, incremental copper production from these initiatives totaled 46 million pounds, and we are targeting achievement of an annual run rate of approximately 200 million pounds of copper by the end of 2023, with potentially larger opportunities in the future.

Cerro Verde's concentrator facilities continue to perform well, with milling rates averaging 431,300 metric tons of ore per day in third-quarter 2023, a new quarterly record. We also continue to progress our underground development activities at Grasberg, supporting large-scale, long-lived, low-cost operations. Refer to “Operations” for further discussion.

Net income attributable to common stockholders totaled $454 million in third-quarter 2023 and $1.5 billion for the first nine months of 2016. The 2017 periods,2023, compared with $404 million in third-quarter 2022 and $2.8 billion for the 2016 periods, benefited fromfirst nine months of 2022. The increase in third-quarter 2023, compared to third-quarter 2022, primarily reflects higher copper prices and higher gold sales volumes, partly offset by lower copper sales volumes and copper prices, partly offset by a higher income tax expense.provision. The 2017 periods also include a net charge of $188 milliondecrease for accruals related to Peruvian government claims for disputed royalties (refer to “Operations – South America Mining” for further discussion). Thethe first nine months of 2016 included significant charges2023, compared with the first nine months of 2022, primarily reflects increased costs for the impairment of oilmaintenance and gas properties and other oil and gas charges for drillship settlements/idle rig costs, inventory adjustments, asset impairment and restructuring,supplies, partly offset by net gains on sales of assets.a lower income tax provision. The 2023 periods were also impacted by the change in our economic interest in PT Freeport Indonesia (PT-FI) (refer to Note 1 for further discussion). Refer to “Consolidated Results” for further discussion.discussion of these impacts.


On July 24, 2023, PT-FI was granted an export license through May 2024 for 1.7 million metric tons of copper concentrate. Through June 10, 2023, PT-FI exported anode slimes under PT Smelting’s export license. A change in regulations during second-quarter 2023 requires PT-FI to follow a new administrative process for the export of anode slimes. The administrative process is advancing, and PT-FI expects to receive approval to resume exports of anode slimes during fourth-quarter 2023. Refer to Note 8 and “Operations – Indonesia Mining” for further discussion of Indonesia regulatory matters.

At September 30, 2017,2023, we had $5.0consolidated debt of $9.4 billion and consolidated cash and cash equivalents of $5.7 billion ($6.25 billion, including $0.5 billion of current restricted cash and cash equivalents associated with a
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portion of PT-FI's export proceeds required to be temporarily deposited in Indonesia banks). Net debt totaled $3.2 billion ($0.8 billion excluding net debt for the Manyar smelter and precious metals refinery (PMR) in Indonesia (collectively, the Indonesia smelter projects)). Refer to “Net Debt” for reconciliations of consolidated debt, consolidated cash and cash equivalents and $14.8current restricted cash associated with PT-FI's export proceeds to net debt.

Beginning in 2022 and through November 3, 2023, we purchased $1.3 billion aggregate principal amount of our senior notes in open-market transactions for a total debt. Wecost of $1.2 billion, including $102 million aggregate principal amount in third-quarter 2023 and $233 million in the first nine months of 2023.

At September 30, 2023, we had no borrowings and $3.5$3.0 billion available of availability under our revolving credit facility. facility, and PT-FI and Cerro Verde had $1.3 billion and $350 million, respectively, of availability under their respective revolving credit facilities.

Refer to Note 65 and “Capital Resources and Liquidity” for further discussion of debt.our debt balances and transactions.


We continue to manage production, exploration and administrative costs and capital spending and, subject to commodity prices and operational results, expect to generate operating cash flows in excess of capital expenditures for the years 2017 and 2018.

We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value. We are pursuing opportunities to enhance our mines’ net present values, and we continue to advance studies for future development of our copper resources, the timing of which will be dependent on market conditions.

In August 2017, we reached an understanding with the Indonesian government on a framework that would resolve PT Freeport Indonesia’s (PT-FI) long-term operating rights. This framework includes (i) conversion from the Contract of Work (COW) to a new operating license (IUPK) providing PT-FI with long-term operating rights through 2041, (ii) Indonesian government certainty of fiscal and legal terms during the term of the IUPK, (iii) PT-FI commitment to construct a new smelter in Indonesia within five years of reaching a definitive agreement, and (iv) divestment of 51 percent of the project area interests to Indonesian participants at fair market value structured so that we retain control over operations and governance of PT-FI.

The framework requires documentation and execution of a definitive agreement, which must be approved by our Board of Directors (Board) and joint venture partner Rio Tinto. The parties continue to negotiate to reach agreement on important aspects of implementation of the framework, including the timing and process of divestment, governance matters, and the determination of fair market value, and to complete documentation on a comprehensive agreement for PT-FI’s operations through 2041. The parties have expressed a mutual objective of
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completing the negotiations and documentation during 2017. In October 2017, the Indonesian government extended PT-FI’s export rights to December 31, 2017, while negotiations to reach and document a comprehensive long-term definitive agreement based on the agreed framework continue. Until a definitive agreement is reached, PT-FI has reserved all rights under its COW, including pursuing arbitration under the dispute resolution provisions. Refer to “Operations – Indonesia Mining” for further discussion.

OUTLOOK
 
We view the long-term outlook forAs further discussed in “Risk Factors” in Part I, Item 1A. of our business positively, supported by limitations on supplies of copper and by the requirements for copper in the world’s economy. Our2022 Form 10-K, 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 fluctuated and are affected by numerous factors beyond our control. Refer to “Markets” below for further discussion. Because we cannot control the priceprices of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flowflows and capital expenditures.


Refer to “Operations – Indonesia Mining” for further discussion of Indonesia regulatory matters, which could have a significant impact on future results.

Consolidated Sales Volumes
Following are our projected consolidated sales volumes for the year 2017:
2023:
Copper (millions of recoverable pounds):
North America copper mines1,373 
South America mining1,194 
Indonesia mining1,489 
Total4,056 
CopperGold (millions of recoverable pounds):ounces)
1.74 
North America copper mines1,470
South America mining1,230
Indonesia mining1,010
Total3,710
Gold (thousands of recoverable ounces)
1,600
Molybdenum (millions of recoverable pounds)
9480 
a
a.Projected molybdenum sales include 34 million pounds produced by our Molybdenum mines and 60 million pounds produced by our North America and South America copper mines.

a.Projected molybdenum sales include 50 million pounds produced by our North America and South America copper mines and 30 million pounds produced by our Molybdenum mines.

Consolidated sales volumes forin fourth-quarter 20172023 are expected to approximate 1.01.1 billion pounds of copper, 625580 thousand ounces of gold and 2320 million pounds of molybdenum.

Projected sales volumes are dependent on operational performance, the resumption of anode slime exports at 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.”“Risk Factors” contained in Part I, Item 1A. of our 2022 Form 10-K and Part II, Item 1A. herein.


Consolidated Unit Net Cash Costs
Assuming average prices of $1,300$1,900 per ounce of gold and $8.00$20.00 per pound of molybdenum for fourth-quarter 2017the remainder of 2023 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 $1.19$1.63 per pound of copper for the year 2017. The impact2023 (including $1.58 per pound of price changes forcopper in fourth-quarter 2017 on2023). Estimated consolidated unit net cash costs would approximate $0.01 per pound for each $50 per ounce change in the average priceyear 2023 include assessment of gold and $0.005 per pound for each $2 per pound change ina 7.5% export duty at PT-FI during the average pricesecond half of molybdenum.2023, which continues to be discussed with the Indonesia government. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. Refer to “Consolidated Results – Production and Delivery Costs” for further discussionThe impact of price changes during fourth-quarter 2023 on consolidated productionunit net cash costs for our mining operations.the year 2023 would approximate $0.02 per pound of copper for each $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.


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Consolidated Operating Cash FlowFlows
Our consolidated operating cash flows vary with sales volumes,volumes; prices realized from copper, gold and molybdenum sales,sales; production costs,costs; income taxes,taxes; other working capital changeschanges; and other factors. Based on current sales volume and cost estimates, and assumingAssuming average prices of $3.00$3.60 per pound offor copper, $1,300$1,900 per ounce offor gold, and $8.00$20.00 per pound for molybdenum in fourth-quarter 2023 and the resumption of molybdenum for fourth-quarter 2017,anode slime exports at PT-FI, our consolidated operating cash flows are estimated to approximate $4.3$5.4 billion (net of $0.5 billion of working capital and other uses) for the year 2017 (including $0.5 billion in working capital sources and tax payments). Projected2023. Estimated consolidated operating cash flows for the year 20172023 also reflect an estimated income tax provision of $1.3$2.1 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2017)2023). The impact of price changes during fourth-quarter 20172023 on operating cash flows for the year 2023 would approximate $80
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$115 million for each $0.10 per pound change in the average price of copper, $20$55 million for each $50$100 per ounce change in the average price of gold and $15 million for each $2 per pound change in the average price of molybdenum.


Consolidated Capital Expenditures
Consolidated capitalCapital expenditures are expected to approximate $1.5$4.8 billion for the year 2017, including $0.92023 (including $1.9 billion for major mining projects primarilyand $1.6 billion for the Indonesia smelter projects). Projected capital expenditures for major mining projects include $1.3 billion for planned projects (primarily associated with underground mine development activities at Grasberg. Asin the Grasberg minerals district and supporting mill and power capital costs) and $0.6 billion for discretionary growth projects (primarily for development of Kucing Liar, a result of regulatory uncertainty, PT-FI has slowed investments in its underground development projects. If PT-FI is unable to reach a definitive agreementmill recovery project with the Indonesian government oninstallation of a new copper cleaner circuit at PT-FI, and expansion projects at Bagdad and Lone Star). We closely monitor market conditions and will continue to adjust our operating plans, including capital expenditures, to protect our liquidity and preserve our asset values, as necessary.

Capital expenditures for the Indonesia smelter projects are being funded with PT-FI's senior notes and availability under its long-term mining rights, we intend to reduce or defer investments significantly in underground development projects.revolving credit facility.


MARKETS


World prices for copper, gold and molybdenum can fluctuate significantly. During the period from January 20072013 through September 2017,2023, the London Metal Exchange (LME) spot copper settlement price varied from a low of $1.26$1.96 per pound in 20082016 to a record high of $4.60$4.87 per pound in 2011;2022; the London Bullion Market Association (London) PM gold price fluctuated from a low of $608$1,049 per ounce in 20072015 to a record high of $1,895$2,067 per ounce in 2011;2020; and the Platts Metals WeekDaily Molybdenum Dealer Oxide weekly average price ranged from a low of $4.46 per pound in 2015 to a high of $33.88$37.42 per pound in 2008.2023. 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 annual report on2022 Form 10-K for the year ended December 31, 2016.and Part II, Item 1A. herein.
q3coppergraph.jpg
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Copper Graph 2.jpg
This graph presents LME spot copper settlement prices and the combined reported stocks of copper at the LME, Commodity Exchange Inc. (COMEX), a division of the New York Mercantile Exchange (NYMEX), and the Shanghai Futures Exchange from January 20072013 through September 2017. Beginning in mid-2014, copper prices declined because of concerns about slowing growth rates in China, a stronger U.S. dollar and a broad-based decline in commodity prices, but began to improve in fourth-quarter 2016 and into 2017.2023. During third-quarter 2017,2023, LME spot copper settlement prices ranged from a low of $2.62$3.64 per pound to a high of $3.13$3.96 per pound, averaged $2.88$3.79 per pound and closedsettled at $2.94$3.73 per pound on September 30, 2017. The LME spot29, 2023. Volatility continued across the copper market in third-quarter 2023, influenced by China’s mixed economic data and wide-ranging views about the global and U.S. economy. While still relatively low relative to consumption, inventory levels rose during third-quarter 2023, with slightly more than three days of global consumption available at the end of October 2023. Rising inventory levels have translated to copper price declines, and the LME copper settlement price was $3.09$3.65 per pound on October 31, 2017.2023.


We believe the underlying long-term fundamentals of thefor copper business remain positive,are favorable and that future demand will be supported by the significantcopper’s role of copper in the global economy and a challenging long-term supply environment attributabletransition to difficulty in replacing the output of existing large mines with new production sources. Future copper prices are expected to be volatile and are likely to be influenced by demand from China and emerging markets, as well as economic activity in the U.S.renewable power, electric vehicles and other industrialized countries,carbon-reduction initiatives, and continued urbanization in developing countries. The small number of approved, large-scale projects beyond those that have been announced, the timing of the development oflong lead times required to permit and build new supplies of copper and the production levels of mines and copper smelters.declining ore grades at existing operations continue to highlight the fundamental supply challenges for copper.

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q3goldgraph.jpgGold Graph 2.jpg
This graph presents London PM gold prices from January 20072013 through September 2017. An improving economic outlook, stronger U.S. dollar and positive equity performance contributed to lower demand for gold since 2014.2023. During third-quarter 2017,2023, London PM gold prices ranged from a low of $1,211$1,871 per ounce to a high of $1,346$1,976 per ounce, averaged $1,278$1,928 per ounce, and closed at $1,283$1,871 per ounce on September 30, 2017.29, 2023. Forecasts are divided as analysts evaluate climbing treasury yields, the strength of the U.S. dollar, the potential lagged impact of a significant cumulative rate-hiking cycle, and sustained elevated geopolitical risk. The London PM gold price was $1,270$1,997 per ounce on October 31, 2017.2023.
q3molygraph.jpg
Moly Graph 2.jpg
This graph presents the Platts Metals WeekDaily Molybdenum Dealer Oxide weekly average pricesprice from January 20072013 through September 2017. Molybdenum prices declined beginning in mid-2014 because of weaker demand from global steel and stainless steel producers but have rebounded slightly starting in mid-2016.2023. During third-quarter 2017,2023, the weekly average price of molybdenum ranged from a low of $7.11$22.11 per pound to a high of $8.88$25.57 per pound, averaged $8.14$23.78 per pound and was $8.49$22.61 per pound on
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September 30, 2017.29, 2023. During third-quarter 2023, there was improved demand from Chinese steel mills, while downstream demand in Europe and North America remained low because of seasonality and economic weakness. Overall global demand for molybdenum was mixed with energy and aerospace sectors performing better than others, such as the construction sector. We believe long-term fundamentals for molybdenum are positive with favorable demand drivers and limited supply. The Platts Metals WeekDaily Molybdenum Dealer Oxide weekly average price was $8.38$18.83 per pound on October 31, 2017.
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27, 2023.


CONSOLIDATED RESULTS
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
SUMMARY FINANCIAL DATA
(in millions, except per share amounts)
Revenuesa,b
$5,824 $5,003 $16,950 $17,022 
Operating incomea
$1,492 $962 

$4,503 $5,507 
Net income attributable to common stockc,d
$454 e$404 f$1,460 e$2,771 f
Diluted net income per share of common stock$0.31 $0.28 $1.01 $1.90 
Diluted weighted-average shares of common stock outstanding1,443 1,439 1,443 1,455 
Operating cash flowsg
$1,236 $758 $3,959 $4,070 
Capital expenditures$1,178 $836 $3,462 $2,422 
At September 30:
Cash and cash equivalents$5,745 $8,578 $5,745 $8,578 
Restricted cash and cash equivalents, current$697 h$112 $697 h$112 
Total debt, including current portion$9,405 $10,690 $9,405 $10,690 
 Three Months Ended September 30, Nine Months Ended September 30, 
 2017 2016 2017 2016 
SUMMARY FINANCIAL DATA 
(in millions, except per share amounts) 
Revenuesa,b
$4,310
 $3,877
 $11,362
 $10,453
 
Operating income (loss)a,c,d,e,f
$917
g 
$359
h 
$2,166
g 
$(3,495)
h 
Net income (loss) from continuing operationsi,j,k
$242
 $292
 $836
 $(4,034) 
Net income (loss) from discontinued operationsl
$3
 $(6) $50
 $(191) 
Net income (loss) attributable to common stock$280

$217

$776
 $(4,446) 
Diluted net income (loss) per share of common stock:        
Continuing operations$0.19
 $0.18
 $0.50
 $(3.27) 
Discontinued operations—
 (0.02) 0.03
 (0.18) 
 $0.19

$0.16

$0.53
 $(3.45) 
Diluted weighted-average common shares outstanding1,454
 1,351
 1,453
 1,289
 
         
Operating cash flowsm
$1,189
 $980
 $3,018
 $2,594
 
Capital expenditures$314
 $494
 $1,020
 $2,309
 
At September 30:        
Cash and cash equivalents$4,957
 $1,086
 $4,957
 $1,086
 
Total debt, including current portion$14,782
 $18,882
 $14,782
 $18,882
 
         
a.As further detailed ina.Refer to Note 10, following is9 for a summary of revenues and operating income (loss) by operating division (in millions):
division.
 Three Months Ended September 30, Nine Months Ended September 30, 
Revenues2017 2016 2017 2016 
North America copper mines$1,105
 $1,084
 $3,348
 $3,280
 
South America mining1,023
 671
 2,626
 2,019
 
Indonesia mining1,121
 986
 2,720
 2,073
 
Molybdenum mines65
 46
 199
 136
 
Rod & Refining1,145
 937
 3,312
 2,842
 
Atlantic Copper Smelting & Refining555
 445
 1,413
 1,363
 
Corporate, other & eliminations(704) (292) (2,256) (1,260) 
Total revenues$4,310
 $3,877
 $11,362
 $10,453
 
         
Operating income (loss)        
North America copper mines$349
 $213
 $956
 $1,190
 
South America mining128
 111
 532
 371
 
Indonesia mining547
 374
 1,023
 501
 
Molybdenum mines(13) (26) (28) (74) 
Rod & Refining2
 4
 6
 15
 
Atlantic Copper Smelting & Refining11
 17
 10
 53
 
Corporate, other & eliminations(107) (334) (333) (5,551) 
Total operating income (loss)$917
 $359
 $2,166
 $(3,495) 
b.Includes favorable (unfavorable) adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling $95 million ($39 million to net income attributable to common stock or $0.03 per share) in third-quarter 2017, $(15) million ($(7) million to net income attributable to common stock or $(0.01) per share) in third-quarter 2016, $81 million ($35 million to net income attributable to common stock or $0.02 per share) for the first nine months of 2017 and $5b.Includes favorable (unfavorable) adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $4 million ($2 million to net loss attributable to common stock or less than $0.01 per share) for the first nine months of 2016. Refer to “Revenues” for further discussion.
c.Includes net (credits) charges to mining operations totaling $(4) million ($(4) million to net income attributable to common stock or less than $(0.01) per share) in third-quarter 2017, $40 million ($40 million to net income attributable to common stock or $0.02 per share) in third-quarter 2016, $24 million ($24 million to net income attributable to common stock or $0.02 per share) for the first nine months of 2017 and $44 million ($44 million to net loss attributable to common stock or $0.03 per share) for the first nine months of 2016, primarily for inventory adjustments and asset impairment/retirement.
d.Includes net credits to oil and gas operations totaling $4 million ($4 million to net income attributable to common stock or less than $0.01 per share) in third-quarter 2017 and $8 million ($8 million to net income attributable to common stock or
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$0.01 per share) for the first nine months of 2017, primarily related to drillship settlements, and net charges of $49 million ($49 million to net income attributable to common stock or $0.03less than $0.01 per share) in third-quarter 2016 and $9802023, $(228) million ($980(95) million to net lossincome attributable to common stock or $0.76$(0.07) per share) in third-quarter 2022, $183 million ($62 million to net income attributable to common stock or $0.04 per share) for the first nine months of 2016,2023 and $58 million ($24 million to net income attributable to common stock or $0.02 per share) for drillship settlements, inventory adjustments,the first nine months of 2022. Refer to Note 6 for further discussion.
c.Our economic interest in PT-FI is 48.76% and prior to January 1, 2023, it approximated 81%.
d.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.
e.Includes net charges totaling $117 million ($0.08 per share) in third-quarter 2023 and $368 million ($0.25 per share) for the first nine months of 2023, primarily associated with revisions to environmental obligation estimates and asset impairment charges. Net charges for the first nine months of 2023 also included charges for contested tax rulings issued by the Peruvian Supreme Court and restructuring charges.an accrual for a potential administrative fine in Indonesia.
e.Includes a net gain on sales of assets totaling $33 million ($33 million to net income attributable to common stock or $0.02 per share) in third-quarter 2017 and $66 million ($66 million to net income attributable to common stock or $0.05 per share) for the first nine months of 2017, primarily associated with oil and gas transactions and $13 million ($13 million to net income attributable to common stock or $0.01 per share) in third quarter 2016 and $762 million ($757 million to net loss attributable to common stock or $0.59 per share) for the first nine months of 2016, primarily associated with the sales of a 13 percent undivided interest in the Morenci unincorporated joint venture and our interest in the Timok exploration project in Serbia.
f.Includes net charges (credits) to environmental obligations and related litigation reserves totaling $64 million ($64 million to net income attributable to common stock or $0.04 per share) in third-quarter 2017, $(12) million ($(12) million to net income attributable to common stock or $(0.01) per share) in third-quarter 2016, $53 million ($53 million to net income attributable to common stock or $0.04 per share) for the first nine months of 2017 and $(11) million ($(11) million to net loss attributable to common stock or $(0.01) per share) for the first nine months of 2016. Refer to Note 9 for further discussion.
g.Includes a charge of $357 million ($188 million to net income attributable to common stock or $0.13 per share) in the third-quarter and first nine months of 2017 associated with disputed Cerro Verde royalties for prior years as well as net charges of $9 million ($5 million to net income attributable to common stock or less than $0.01 per share) in third-quarter 2017 and $117 million ($62 million to net income attributable to common stock or $0.04 per share) for the first nine months of 2017 associated with workforce reductions at PT-FI.
h.Includes $239 million ($239 million to net income attributable to common stock or $0.18 per share) in third-quarter 2016 and $4.3 billion ($4.3 billion to net loss attributable to common stock or $3.35 per share) for the first nine months of 2016 to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules.
i.Includes net gains on exchanges and early extinguishment of debt totaling $11 million ($11 million to net income attributable to common stock or $0.01 per share) in third-quarter 2017, $15 million ($15 million to net income attributable to common stock or $0.01 per share) in third-quarter 2016, $8 million ($8 million to net income attributable to common stock or $0.01 per share) for the first nine months of 2017 and $51 million ($51 million to net loss attributable to common stock or $0.04 per share) for the first nine months of 2016.
j.We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to “Operations – Smelting & Refining” for a summary of net impacts from changes in these deferrals.
k.Includes net tax (charges) credits of $(10) million ($(0.01) per share) in third-quarter 2017 and $21 million ($0.01 per share) for the first nine months of 2017 associated with alternative minimum tax credit carryforwards, and $332 million ($0.24 per share) in third-quarter 2016 and $290 million ($0.22 per share) for the first nine months of 2016 associated with alternative minimum tax credits, changes to valuation allowances and net operating loss carryback claims.
l.Net income from discontinued operations for the third quarter and first nine months of 2017 primarily reflects adjustments to the fair value of the potential $120 million in contingent consideration related to the November 2016 sale of our interest in TFHL, which totaled $58 million at September 30, 2017, and will continue to be adjusted through December 31, 2019. Net loss from discontinued operations for the third quarter and first nine months of 2016 includes an estimated loss of $5 million (less than $0.01 per share) and $182 million ($0.14 per share), respectively, on the sale of our interest in TFHL. Refer to Note 2 for a summary of the components of net income (loss) from discontinued operations.
m.Includes net working capital sources and changes in tax payments of $52 million in third-quarter 2017, $8 million in third-quarter 2016, $395 million for the first nine months of 2017 and $483 million for the first nine months of 2016.
f.Includes net credits (charges) totaling $29 million ($0.02 per share) in third-quarter 2022 and $(23) million ($(0.02) per share) for the first nine months of 2022. Net credits in third-quarter 2022 were primarily associated with gains on early extinguishment of debt and favorable adjustments associated with international tax audits, partly offset by metals inventory adjustments. The first nine months of 2022 also included net charges at PT-FI primarily associated with an administrative fine levied by the Indonesia government and a reserve for exposure associated with export duties.
g.Working capital and other uses totaled $483 million in third-quarter 2023, $269 million in third-quarter 2022, $713 million for the first nine months of 2023 and $980 million for the first nine months of 2022.
h.Includes $0.5 billion associated with a portion of PT-FI's export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with an August 2023 regulation issued by the Indonesia government.


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Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
SUMMARY OPERATING DATA
Copper (millions of recoverable pounds)
  
Production1,085 1,056 3,117 3,140 
Sales, excluding purchases1,109 1,060 2,970 3,171 
Average realized price per pound$3.80 $3.50 

$3.87 $3.88 
Site production and delivery costs per pounda
$2.27 $2.35 $2.40 $2.16 
Unit net cash costs per pounda
$1.73 $1.75 $1.65 $1.50 
Gold (thousands of recoverable ounces)
  
Production532 448 1,420 1,339 
Sales, excluding purchases399 480 1,164 1,365 
Average realized price per ounce$1,898 $1,683 $1,932 $1,786 
Molybdenum (millions of recoverable pounds)
  
Production20 19 62 63 
Sales, excluding purchases20 17 59 56 
Average realized price per pound$23.71 $17.05 $26.05 $18.64 
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 net cash 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.”
 Three Months Ended September 30, Nine Months Ended September 30, 
 2017 
2016a
 2017 
2016a
 
SUMMARY OPERATING DATA      
Copper (millions of recoverable pounds)
        
Production996
 1,093
 2,730
 3,091
 
Sales, excluding purchases932
 1,113
 2,683
 3,100
 
Average realized price per pound$2.94
 $2.19
 $2.79
 $2.17
 
Site production and delivery costs per poundb
$1.57
 $1.37
 $1.60
 $1.42
 
Unit net cash costs per poundb
$1.21
 $1.14
 $1.26
 $1.28
 
Gold (thousands of recoverable ounces)
        
Production418
 308
 1,010
 658
 
Sales, excluding purchases355
 317
 969
 674
 
Average realized price per ounce$1,290
 $1,327
 $1,261
 $1,292
 
Molybdenum (millions of recoverable pounds)
        
Production24
 19
 70
 58
 
Sales, excluding purchases22
 16
 71
 52
 
Average realized price per pound$9.22
 $9.14
 $9.18
 $8.36
 
Oil Equivalents        
Sales volumes        
Oil (millions of barrels (MMBbls))0.4
 9.1
 1.4
 26.1
 
Natural gas (billion cubic feet (Bcf))3.1
 13.8
 13.3
 52.2
 
Natural gas liquids (MMBbls)—
 0.6
 0.2
 1.8
 
Million barrels of oil equivalent (MMBOE)1.0
 12.0
 3.8
 36.6
 
Thousand BOE (MBOE) per day11
 131
 14
 133
 
a.Excludes the results of the Tenke mine, which was sold in November 2016 and is reported as a discontinued operation. Copper sales from the Tenke mine totaled 118 million pounds in third-quarter 2016 and 365 million for the first nine months of 2016.
b.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.”


Revenues
Consolidated revenues totaled $4.3$5.8 billion in third-quarter 20172023, $5.0 billion in third-quarter 2022, and $11.4$17.0 billion for the first nine months of 2017, compared with $3.9 billion in third-quarter 20162023 and $10.5 billion for the first nine months of 2016.2022. Revenues from our mining operations and processing facilities primarily include the sale of copper in concentrate, copper cathode, copper rod, gold in concentrate and molybdenum. Revenues from our oil and gas operations, mostRefer to Note 9 for a summary of which were sold in 2016, include the sale of oil, natural gas and natural gas liquids (NGLs).product revenues.
















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Following is a summary of changes in our consolidated revenues between periods (in millions):
Three Months Ended September 30Nine Months Ended September 30
Consolidated revenues - 2022 period$5,003 $17,022 
Higher (lower) sales volumes:
Copper168 (779)
Gold(138)(359)
Molybdenum42 62 
Higher (lower) average realized prices:
Copper333 (30)
Gold86 171 
Molybdenum134 441 
Adjustments for prior period provisionally priced copper sales232 125 
Higher Atlantic Copper revenues91 444 
(Lower) higher revenues from purchased copper(97)5 
(Higher) lower treatment charges(19)10 
(Higher) lower royalties and export duties(49)171 
Other, including intercompany eliminations38 (333)
Consolidated revenues - 2023 period$5,824 $16,950 
 Three Months Ended September 30 Nine Months Ended September 30
    
Revenues - 2016 period$3,877
 $10,453
(Lower) higher sales volumes:   
Copper(394) (903)
Gold50
 381
Molybdenum56
 161
Oil and gas(394) (1,031)
Higher (lower) average realized prices:   
Copper700
 1,664
Gold(13) (29)
Molybdenum2
 59
Net adjustments for prior period provisionally priced copper sales110
 76
Lower treatment charges38
 83
Higher revenues from purchased copper87
 256
Higher Atlantic Copper revenues110
 50
Other, including intercompany eliminations81
 142
Revenues - 2017 period$4,310
 $11,362
    


Sales Volumes.Consolidated copper sales decreased to 932 million poundsvolumes increased in third-quarter 2017,2023, compared with 1.1 billion poundsto third-quarter 2022, primarily as a result of higher mining rates. Consolidated gold sales volumes decreased in third-quarter 2016,2023, compared to third-quarter 2022, primarily reflecting the timing of shipments of anode slimes associated with a change in Indonesia administrative requirements for products that were previously being exported by PT Smelting.

Lower consolidated copper and gold sales volumes for the first nine months of 2023, compared to the 2022 period, primarily reflect the deferral of sales recognition related to the PT Smelting tolling arrangement. Lower copper sales
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volumes also reflected lower ore grades in North America, and Indonesia andlower gold sales volumes also reflected the timing of shipments. Consolidated copper sales decreased to 2.7 billion pounds for the first nine monthsshipments of 2017, compared with 3.1 billion pounds for the first nine months of 2016, primarily reflecting lower ore grades in North America and the impact of the May 2016 sale of an additional 13 percent interest in Morenci.

Consolidated gold sales volumes increased to 355 thousand ounces in third-quarter 2017 and 969 thousand ounces for the first nine months of 2017, compared with 317 thousand ounces in third-quarter 2016 and 674 thousand ounces for the first nine months of 2016, primarily reflecting higher ore gradesanode slimes in Indonesia.

Consolidated molybdenum sales volumes increased to 22 million pounds in third-quarter 2017 and 71 million pounds for the first nine months of 2017, compared with 16 million pounds in third-quarter 2016 and 52 million pounds for the first nine months of 2016, primarily reflecting higher demand.

Refer to “Operations” for further discussion of sales volumes at our mining operations.

Oil and gas sales volumes of 1.0 MMBOE in third-quarter 2017 and 3.8 MMBOE for the first nine months of 2017, were lower than oil and gas sales volumes of 12.0 MMBOE in third-quarter 2016 and 36.6 MMBOE for the first nine months of 2016, primarily reflecting the sales of significant oil and gas properties in 2016.

Realized Prices.Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum. Third-quarter 2017 averageAverage realized prices in third-quarter 2023, compared with third-quarter 2016,2022, were 34 percent9% higher for copper, 3 percent lower13% higher for gold and 1 percent39% higher for molybdenum, and average realized prices for the first nine months of 2017,2023, compared with the first nine months of 2016,2022, were 29 percent higherslightly lower for copper, 2 percent lower8% higher for gold and 10 percent40% higher for molybdenum. Refer
Average realized copper prices include net unfavorable adjustments to “Markets”current period provisionally priced copper sales totaling $34 million in third-quarter 2023, $44 million in third-quarter 2022, $152 million for further discussion.

Provisionally Priced Copper Sales.Substantiallythe first nine months of 2023 and $832 million for the first nine months of 2022. As discussed in Note 6, all of our copper concentrate and some 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 spot copper prices. We receive market prices based on prices in the specified future period, which results in price fluctuations recorded through revenues until the date of settlement. We record revenues and invoice customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on our provisionally priced copper 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. Favorable

Prior Period Provisionally Priced Copper Sales.Net favorable (unfavorable)
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impacts of net adjustments to prior periods’ provisionally priced copper sales from continuing operations(i.e., provisionally priced sales at June 30, 2023 and 2022, and December 31, 2022 and 2021) recorded in consolidated revenues totaled $95$4 million in third-quarter 2017 and $812023, $(228) million in third-quarter 2022, $183 million for the first nine months of 2017, compared with $(15) million in third-quarter 20162023 and $5$58 million for the first nine months of 2016, primarily reflecting higher copper prices in the 2017 periods.2022. Refer to Notes 6 and 9 for a summary of total adjustments to prior period and current period provisionally priced sales.


At September 30, 2017,2023, we had provisionally priced copper sales at our copper mining operations totaling 338257 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of $2.93$3.75 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, 2017,2023, recorded provisional price recorded would have an approximate $11$8 million effect on our 20172023 net income attributable to common stock. The LME spot copper price was $3.09settled at $3.65 per pound on October 31, 2017.2023.


Treatment Charges. Revenues from our concentrate sales are recorded netAtlantic Copper Revenues.Atlantic Copper revenues totaled $700 million in third-quarter 2023 and $2.2 billion for the first nine months of treatment charges. Lower treatment charges2023, compared with $609 million in third-quarter 2022 and $1.8 billion for the first nine months of 2022. Higher revenues in the 20172023 periods, compared with the 20162022 periods, primarily reflect lower concentratereflects higher sales volumes, at North America copper mines.mostly because of reduced operations during 2022 associated with a scheduled major maintenance turnaround.


Purchased Copper.We purchase copper cathode primarily for processing by our Rod & Refining operations. In addition to higherThe volumes of copper prices, we had higher purchased copper volumes in the 2017 periods (75purchases vary depending on cathode production from our operations and totaled 18 million pounds in third-quarter 2017 and 195 million for the first nine months of 2017, compared with 612023, 48 million pounds in third-quarter 2016 and 1312022, 85 million pounds for the first nine months of 2016).

Atlantic Copper Revenues.Atlantic Copper revenues totaled $5552023 and 86 million in third-quarter 2017 and $1.4 billionpounds for the first nine months of 2017,2022.

Treatment Charges. Revenues from our copper 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. The 2023 periods, compared to the 2022 periods, reflect (i) lower treatment charges at PT-FI associated with $445the change in its commercial arrangement with PT Smelting from a copper concentrate sales agreement to a tolling arrangement (that is, beginning in 2023, costs incurred under the tolling arrangement are recorded as production costs in the consolidated statements of income) and (ii) higher rates for Cerro Verde and PT-FI’s copper concentrates.

Royalties and Export Duties. Royalties are primarily associated with PT-FI sales and vary with the volume of metal sold and the prices of copper and gold. In late 2022, the export duty rate on PT-FI’s sales declined from 5% to 2.5% as a result of smelter development progress, and effective March 29, 2023, export duties were eliminated upon verification by the Indonesia government that construction progress on the Manyar smelter exceeded 50%. Subsequently, in July 2023, the Indonesia government issued a revised regulation on duties for various exported
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products, including copper concentrates, and under the revised regulation, PT-FI is currently being assessed export duties for copper concentrates at 7.5% (refer to Note 8 for further discussion).

PT-FI incurred export duties totaling $147 million in third-quarter 2016 and $1.4 billion2023 (associated with the revised regulation by the Indonesia government), $80 million in third-quarter 2022, $165 million for the first nine months of 2016. Higher revenues in third-quarter 2017, compared with third-quarter 2016, primarily reflect higher copper prices.2023 and $245 million for the first nine months of 2022.


Production and Delivery Costs
Consolidated production and delivery costs totaled $2.8$3.5 billion in third-quarter 2017, $2.52023, $3.4 billion in third-quarter 2016, $7.52022, $10.3 billion for the first nine months of 20172023 and $8.0$9.5 billion for the first nine months of 2016. Production2022. Higher costs in the 2023 periods, compared to the 2022 periods, primarily reflected increased consolidated operating rates, higher commodity-related costs across our operations and deliveryincreased costs for the third quarter and first nine months of 2017 included charges totaling $216 million at Cerro Verde associated with disputed royalties for prior years (refer to “Operations – South America Mining” for further discussion). Production and delivery costs for the first nine months of 2016 included charges totaling $942 million at oil and gas operations primarily for drillship settlements and inventory adjustments.labor (including increased contract labor), particularly in North America.


Mining Unit Site Production and Delivery Costs.Costs Per Pound. Site production and delivery costs for our copper mining operations primarily include labor, energy and other commodity-based inputs, such as sulphuricsulfuric acid, explosives, steel, reagents, liners tires and explosives.tires. Consolidated unit site production and delivery costs (before net noncash and other costs) for our copper mines averaged $1.57$2.27 per pound of copper in third-quarter 2017 and $1.602023, $2.35 per pound of copper in third-quarter 2022, $2.40 per pound of copper for the first nine months of 2017, compared with $1.37 per pound of copper in third-quarter 20162023 and $1.42$2.16 per pound of copper for the first nine months of 2016. Higher consolidated unit site production and delivery costs for the 2017 periods, compared with the 2016 periods, primarily reflect lower copper sales volumes.2022. 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 individual mines.mining operations. Consolidated depreciation, depletion and amortization (DD&A) totaled $418$533 million in third-quarter 20172023, $508 million in third-quarter 2022, and $1.3$1.5 billion for the first nine months of 2017, compared with $643 million in third-quarter 20162023 and $1.9 billion for the first nine months of 2016. Lower DD&A in the 2017 periods, compared with the 2016 periods, primarily reflects lower DD&A from oil and gas operations resulting from sales of significant oil and gas properties in 2016.2022.

Impairment of Oil and Gas Properties
The review of the carrying value of our oil and gas properties for impairment under full cost accounting rules resulted in the recognition of impairment charges totaling $239 million for third-quarter 2016 and $4.3 billion for the first nine months of 2016.

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Selling, General and Administrative Expenses
Consolidated selling, general and administrative expenses totaled $106 million in third-quarter 2017, $110 million in third-quarter 2016, $366 million for the first nine months of 2017 and $408 million for the first nine months of 2016. Selling, general and administrative expenses include net oil and gas-related charges totaling $17 million for the first nine months of 2017 for contract termination and $38 million for the first nine months of 2016 for restructuring.

Consolidated selling, general and administrative expenses were net of capitalized general and administrative expenses at our oil and gas operations totaling $16 million in third-quarter 2016 and $66 million for the first nine months of 2016.

Mining Exploration and Research Expenses
Consolidated exploration and research expenses for our mining operations totaled $27 million in third-quarter 2017, $13 million in third-quarter 2016, $61 million for the first nine months of 2017 and $46 million for the first nine months of 2016. Our mining exploration activities are generally associated with our existing mines and focus on opportunities to expand reserves and resources to support development of additional future production capacity. Exploration results continue to indicate opportunities for significant future potential reserve additions in North America and South America. Exploration spending is expected to approximate $75 million for the year 2017.


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. NetHigher net charges (credits) for environmental obligations and shutdown costs totaled $73in the 2023 periods, compared to the 2022 periods, primarily reflect net revisions to long-term historical environmental obligations totaling $83 million in third-quarter 2017, $(3) million in third-quarter 2016, $812023 and $199 million for the first nine months of 20172023, compared to net credits of $5 million in third-quarter 2022 and $18net charges of $8 million for the first nine months of 2016.2022. Refer to Note 98 for further discussion.discussion of the 2023 revisions.


Interest Expense, Net Gain on Sales of Assets
Net gain on sales of assetsConsolidated interest costs (before capitalization) totaled $33$165 million in third-quarter 2017 and $662023, $182 million in third-quarter 2022, $606 million for the first nine months of 2017, primarily associated with oil2023 and gas transactions. Net gain on sales of assets totaled $13 million in third-quarter 2016 and $762$524 million for the first nine months of 2016, primarily associated with the sales of a 13 percent undivided2022. Consolidated interest in the Morenci unincorporated joint venture and a portion of our interest in the Timok exploration project in Serbia.

Interest Expense, Net
Interest expense, net,costs (before capitalization) for the third quarter and first nine months of 2017 includes $141 million associated with disputed Cerro Verde royalties2023, compared to the 2022 periods, reflects the impact of lower average outstanding debt as a result of the repayment of our 3.875% Senior Notes and open-market purchases of our senior notes (refer to Note 9 for additional discussion)5). ConsolidatedHigher consolidated interest costs (before capitalization and excluding interest expense associated with disputed Cerro Verde royalties) totaled $196 million in third-quarter 2017, $211 million in third-quarter 2016, $583 millioncapitalization) for the first nine months of 2017 and $6472023, also reflects interest charges totaling $74 million for Cerro Verde’s contested tax rulings issued by the first nine monthsPeruvian Supreme Court, and higher consolidated interest costs associated with PT-FI’s $3.0 billion of 2016. Lower interest cost for the 2017 periods, compared to the 2016 periods, reflects a decreasesenior notes that were issued in total debt .April 2022.


Capitalized interest varies with the level of expenditures forqualifying assets associated with our development projects and average interest rates on our borrowings andborrowings. Capitalized interest totaled $33$69 million in third-quarter 2017, $242023, $42 million in third-quarter 2016, $912022, $188 million for the first nine months of 20172023 and $73$101 million for the first nine months of 2016.2022. The increase in capitalized interest costs in the 2023 periods, compared to the 2022 periods, resulted from increased construction and development projects in process, primarily for the Indonesia smelter projects. Refer to “Capital Resources and Liquidity – Investing Activities” for discussion of capital expenditures associated with our major development projects.


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Other Income, Net
Other income, net totaled $71 million in third-quarter 2023, $25 million in third-quarter 2022, $183 million for the first nine months of 2023 and $67 million for the first nine months of 2022. The increase in other income, net primarily reflects higher interest income. The first nine months of 2023 also include a $69 million charge associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court.

Income Taxes
Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision from continuing operations for the 2017 and 2016 periods (in millions, except percentages):

 Nine Months Ended September 30, 
 2017 2016 
 
Income (Loss)a
 
Effective
Tax Rate
 Income Tax Benefit (Provision) 
Income (Loss)a
 
Effective
Tax Rate
 Income Tax Benefit (Provision) 
U.S.$66
 (40)% $27
b 
$(616) 47% $292
c 
South America709
 42% (296) 290
 39% (114) 
Indonesia1,035
 42% (435) 544
 39% (212) 
Cerro Verde royalty dispute(357) N/A (2)
d 
—
 N/A —
 
Impairment of oil and gas properties—
 N/A —
 (4,317) 38% 1,632
 
Valuation allowance, net—
 N/A —
 —
 N/A (1,632)
e 
Eliminations and other124
 N/A (38) 135
 N/A (46) 
Rate adjustmentf
—
 N/A (3) —
 N/A 1
 
Consolidated FCX$1,577
 47%
g 
$(747) $(3,964) (2)% $(79) 
a.Represents income (loss) from continuing operations by geographic location before income taxes and equity in affiliated companies’ net earnings.
b.Includes net tax credits of $21 million associated with alternative minimum tax credit carryforwards.
c.Includes net tax credits of $290 million associated with alternative minimum tax credits, changes to valuation allowances and net operating loss carryback claims.
d.Includes tax charges of $127 million for disputed royalties and other related mining taxes for the period October 2011 through the year 2013 (when royalties were determined based on operating income), mostly offset by a tax benefit of $125 million associated with disputed royalties and other related mining taxes for the period December 2006 through the year 2013.
e.As a result of the impairment to U.S. oil and gas properties, we recorded tax charges to establish valuation allowances against U.S. federal and state deferred tax assets that will not generate a future benefit.
f.In accordance with applicable accounting rules, we adjust our interim provision for income taxes to equal our consolidated tax rate.
g.The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to our consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of $3.00 per pound for copper, $1,300 per ounce for gold and $8.00 per pound for molybdenum for fourth-quarter 2017, we estimate our consolidated effective tax rate related to continuing operations for the year 2017 will approximate 45 percent and would decrease with higher prices.

Nine Months Ended September 30,
20232022
Income (Loss)a
Effective
Tax Rate		Income Tax (Provision) Benefit
Income (Loss)a
Effective
Tax Rate		Income Tax (Provision) Benefit
U.S.b
$180 — %c$3 $854 1 %c$(5)
South America961 d46 %(438)802 36 %(287)e
Indonesia3,130 37 %(1,159)3,480 39 %(1,363)
Eliminations and other7 N/A— 43 N/A(25)
Rate adjustmentf
— N/A48 — N/A(30)
Consolidated FCX$4,278 36 %$(1,546)$5,179 33 %$(1,710)
Net Income (Loss) from Discontinued Operationsa.Represents income before income taxes, equity in affiliated companies' net earnings (losses), and noncontrolling interests.
b.In Novemberaddition 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 valuation allowance release on prior year unbenefited net operating losses. See below for discussion of the provisions of the U.S. Inflation Reduction Act of 2022.
d.Includes net charges associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court totaling $142 million ($73 million net of noncontrolling interests).
e.Includes a tax credit of $31 million ($16 million net of noncontrolling interest) primarily associated with completion of Cerro Verde's 2016 we completed the sale of our interest in TFHL, through which we had an effective 56 percent interest in the Tenke copper and cobalt concessions in the Democratic Republic of Congo. tax audit.
f.In accordance with applicable accounting guidelines,rules, we adjust our interim provision for income taxes equal to our consolidated tax rate.

Refer to Note 4 for discussion of the resultsU.S. Inflation Reduction Act of TFHL have been reported2022 (the Act), which became applicable to us on January 1, 2023.

Assuming average prices of $3.60 per pound for copper, $1,900 per ounce for gold and $20.00 per pound for molybdenum in fourth-quarter 2023 and achievement of current sales volume and cost estimates, we estimate our consolidated effective tax rate for the year 2023 would approximate 38% (which would result in a 44% effective tax rate in fourth-quarter 2023). Changes in projected sales volumes and average prices during 2023 would incur tax impacts at estimated effective rates of 40% for Peru, 36% for Indonesia and 0% for the U.S., which excludes any impact from the Act. Our projected estimated effective tax rate of 0% for the U.S. for the year 2023 may be adjusted as discontinued operations for all periods presented. additional guidance is released on key provisions of the Act.

Noncontrolling Interests
Net income from discontinued operationsattributable to noncontrolling interests, which is primarily associated with our noncontrolling shareholders at PT-FI, Cerro Verde and El Abra, totaled $3$510 million in third-quarter 20172023, $156 million in third-quarter 2022, $1.3 billion for the first nine months of 2023 and $50$731 million for the first nine months of 2017, which primarily reflected adjustments2022. Our economic interest in PT-FI is 48.76% and prior to the fair value of the potential $120January 1, 2023, it approximated 81%. As discussed in Note 1, first-quarter 2023 net income included a $35 million contingent consideration relatednet benefit associated with PT-FI sales volumes that were attributed to the sale, which totaled $58 millionus at September 30, 2017, and will continue to be adjusted through December 31, 2019. Net loss from discontinued operations of $6 million in third-quarter 2016 and $191 million for the first nine months of 2016 include an estimated loss on disposal of $5 million for third-quarter 2016 and $182 million for the first nine months of 2016. our previous approximate 81% economic ownership interest.

Refer to Note 29 for a summary of the components of net income (loss) from discontinued operations.attributable to noncontrolling interests for each of our business segments.


Assuming average prices of $3.60 per pound of copper, $1,900 per ounce of gold and $20.00 per pound of molybdenum, achievement of current sales volume and cost estimates, and taking into account the change in our economic interest in PT-FI, net income attributable to noncontrolling interests is estimated to approximate
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$1.75 billion for the year 2023. The actual amount will depend on many factors, including relative performance of each business segment, commodity prices, costs and other factors.

OPERATIONS


Responsible Production
Updated Climate Report. In September 2023, we published our annual climate report, available on our website at fcx.com/sustainability. The climate report details our ongoing progress to advance our climate strategy focused on reducing our greenhouse gas (GHG) emissions, enhancing our resilience to climate risks and contributing responsibly produced copper to the global economy. We have four 2030 GHG emissions reduction targets that collectively cover nearly 100% of our Scope 1 and 2 GHG emissions.

Leaching Innovation Initiatives
We are advancing a series of initiatives across our North America and South America operations to incorporate new applications, technologies and data analytics to our leaching processes. We believe these leach innovation initiatives provide opportunities to produce incremental copper from our large existing leach stockpiles. Initial results support the potential for incremental low-cost additions to our production and reserve profile and we are targeting an annual run rate of approximately 200 million pounds of copper per year through these initiatives by the end of 2023. In third-quarter 2023, incremental copper production from these initiatives totaled 46 million pounds (approximately 90% of the targeted annual rate). We are pursuing new technology applications that have the potential for significant increases in recoverable metal beyond the initial target.

Feasibility and Optimization Studies
We are engaged in various studies associated with potential future expansion projects primarily at our mining operations. The costs for these studies are charged to production and delivery costs as incurred and totaled $42 million in third-quarter 2023, $34 million in third-quarter 2022, $137 million for the first nine months of 2023 and $84 million for the first nine months of 2022. We estimate the costs of these studies will approximate $200 million for the year 2023, subject to market conditions and other factors.

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. All of the North America mining operations are wholly owned, except for Morenci.

We record our 72% undivided joint venture interest in Morenci using the proportionate consolidation method. On May 31, 2016, we completed the sale of an additional 13 percent undivided interest in Morenci. As a result of the transaction, our undivided interest in Morenci was prospectively reduced from 85 percent to 72 percent.
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The North America copper mines include open-pit mining, sulfide oresulfide-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 salesproduction is in the form ofsold 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.mines.

Operating and Development Activities. We have significant undevelopedsubstantial reserves and resourcesfuture opportunities in North Americathe U.S., primarily associated with existing mining operations.

We are planning an expansion to double the concentrator capacity of the Bagdad operation in northwest Arizona and expect to complete a portfolio of potential long-term development projects. Future investments will be undertaken based on the results of economic and technical feasibility studies,study in fourth-quarter 2023. In parallel, we are advancing activities for expanded tailings infrastructure projects and are dependent on market conditions. We continueprocuring an autonomous haul truck fleet to study opportunities to reduce the capital intensity of our long-term development projects.support Bagdad's long-range plans.


Through exploration drilling, we have identified a significant resource at our wholly owned At Safford/Lone Star, project located near the Safford operation in eastern Arizona. The Safford mine is expected to have copper production through 2024. Initial production from the Lone Star oxide ores could begin in 2021 assuming an approximate three-year development period and using existing infrastructure atis approaching 300 million pounds of copper per year, which reflects expansion of the adjacent Safford operation. Total preliminary capital cost estimates for development, including mine equipment and pre-production stripping, approximates $850 million. Projected production from the Lone Star oxide ores would average approximatelyinitial design capacity of 200 million pounds of copper per year with an approximate 20-yearyear. We have conducted significant exploration drilling in the area in recent years. The positive drilling results indicate potential opportunities to expand production to include sulfide ores in the future. We are advancing metallurgical testing and mine life. Considering theplanning for a potential significant long-term nature and size of the project, results could vary from these estimates. The project would also advance the potentialinvestment for development of a larger-scale district opportunity. Weidentified large sulfide resources.

A tight labor market and increased competition from other employers in North America continue to represent strategic challenges that have obtained regulatory approvals for this projectimpacted and are assessing thecontinuing to impact production and our ability to further expand
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current mining rates. The timing to commence pre-stripping activities. We are conducting additional drilling as we continue to evaluate longer term opportunities available from the significant sulfide potential in the Lone Star/Safford minerals district. of all future developments will be dependent on market conditions, labor and supply chain considerations and other economic factors.


Operating Data. Following is a summary of consolidated operating data for the North America copper minesmines:
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Operating Data, Net of Joint Venture Interests  
Copper (millions of recoverable pounds)
  
Production344 373 1,030 1,109 
Sales, excluding purchases372 361 1,043 1,131 
Average realized price per pound$3.86 $3.57 $3.97 $4.17 

Molybdenum (millions of recoverable pounds)
  
Productiona
7 7 23 22 
100% Operating Data  
Leach operations  
Leach ore placed in stockpiles (metric tons per day)688,600 622,200 675,600 684,200 
Average copper ore grade (%)0.22 0.30 0.24 0.29 
Copper production (millions of recoverable pounds)245 260 718 759 
Mill operations  
Ore milled (metric tons per day)315,800 294,600 309,700 297,600 
Average ore grade (%):
Copper0.30 0.36 0.33 0.37 
Molybdenum0.02 0.02 0.02 0.02 
Copper recovery rate (%)81.7 82.3 82.0 82.2 
Copper production (millions of recoverable pounds)155 174 481 538 
a.Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the third quarters and first nine months of 2017 and 2016:North America copper mines.

 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Operating Data, Net of Joint Venture Interests       
Copper (millions of recoverable pounds)
       
Production375
 455
 1,151
 1,411
Sales, excluding purchases347
 458
 1,130
 1,425
Average realized price per pound$2.92
 $2.19
 $2.74
 $2.18
        
Molybdenum (millions of recoverable pounds)
       
Productiona
8
 9
 25
 25
        
100% Operating Data       
SX/EW operations       
Leach ore placed in stockpiles (metric tons per day)655,600
 681,400
 681,200
 764,900
Average copper ore grade (percent)0.27
 0.31
 0.28
 0.32
Copper production (millions of recoverable pounds)280
 316
 839
 921
        
Mill operations       
Ore milled (metric tons per day)297,200
 300,500
 300,000
 299,900
Average ore grade (percent):       
Copper0.38
 0.47
 0.40
 0.48
Molybdenum0.03
 0.03
 0.03
 0.03
Copper recovery rate (percent)86.6
 87.8
 86.6
 86.3
Copper production (millions of recoverable pounds)167
 216
 527
 661
a.Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the North America copper mines.

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North America’sOur consolidated copper sales volumes of 347from North America totaled 372 million pounds in third-quarter 2017 and 1.12023, 361 million pounds in third-quarter 2022, 1.0 billion pounds for the first nine months of 2017 were lower than third-quarter 2016 sales of 458 million pounds2023 and 1.41.1 billion pounds for the first nine months of 2016,2022. Copper sales volumes in the 2023 periods, compared with the 2022 periods, primarily reflectingreflect lower ore grades. Additionally,The impact of lower ore grades in third-quarter 20172023, compared with third-quarter 2022, was impactedoffset by the timing of shipments.
North America copper sales are estimated to approximate 1.51.4 billion pounds for the year 2017, compared with 1.8 billion pounds in 2016.2023.


Unit Net Cash Costs. Unit We believe unit net cash costs per pound of copper is a measure intended to providethat provides 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. GAAPgenerally 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 for the third quarters and first nine months of 2017 and 2016.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.
Three Months Ended September 30,
 20232022
 By- Product MethodCo-Product MethodBy- Product MethodCo-Product Method
Copper
Molyb-
denuma
Copper
Molyb-
denuma
Revenues, excluding adjustments$3.86 $3.86 $22.01 $3.57 $3.57 $16.75 
Site production and delivery, before net noncash
and other costs shown below
3.01 2.71 17.35 2.76 2.51 15.60 
By-product credits(0.41)— — (0.30)— — 
Treatment charges0.10 0.10 — 0.10 0.09 — 
Unit net cash costs2.70 2.81 17.35 2.56 2.60 15.60 
DD&A0.30 0.26 1.33 0.28 0.25 0.95 
Metals inventory adjustments0.01 0.01 — 0.01 0.01 — 
Noncash and other costs, net0.13 b0.12 0.47 0.10 b0.09 0.60 
Total unit costs3.14 3.20 19.15 2.95 2.95 17.15 
Revenue adjustments, primarily for pricing
on prior period open sales
— — — (0.06)(0.06)— 
Gross profit per pound$0.72 $0.66 $2.86 $0.56 $0.56 $(0.40)
Copper sales (millions of recoverable pounds)372 372 361 361  
Molybdenum sales (millions of recoverable pounds)a
7   7 
            
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016  20232022
By- Product Method Co-Product Method By- Product Method Co-Product Method  By- Product MethodCo-Product MethodBy- Product MethodCo-Product Method
 Copper 
Molyb-
denuma
 Copper 
Molyb-
denuma
 Copper
Molyb-
denuma
Copper
Molyb-
denuma
Revenues, excluding adjustments$2.92
 $2.92
 $7.59
 $2.19
 $2.19
 $7.39
 Revenues, excluding adjustments$3.97 $3.97 $24.41 $4.17 $4.17 $17.87 
            
Site production and delivery, before net noncash
and other costs shown below
1.67
 1.56
 5.58
 1.44
 1.34
 5.51
 
Site production and delivery, before net noncash
and other costs shown below
2.96 2.60 17.66 2.54 2.33 12.87 
By-product credits(0.17) —
 —
 (0.17) —
 —
 By-product credits(0.52)— — (0.33)— — 
Treatment charges0.11
 0.11
 —
 0.10
 0.09
 —
 Treatment charges0.12 0.12 — 0.10 0.10 — 
Unit net cash costs1.61
 1.67
 5.58
 1.37
 1.43
 5.51
 Unit net cash costs2.56 2.72 17.66 2.31 2.43 12.87 
DD&A0.28
 0.27
 0.49
 0.28
 0.26
 0.70
 DD&A0.30 0.26 1.27 0.27 0.25 0.88 
Metals inventory adjustmentsMetals inventory adjustments0.01 0.01 — 0.01 0.01 — 
Noncash and other costs, net0.04
 0.04
 0.05
 0.06
 0.05
 0.13
 Noncash and other costs, net0.16 b0.14 0.87 0.09 b0.08 0.40 
Total unit costs1.93
 1.98
 6.12
 1.71
 1.74
 6.34
 Total unit costs3.03 3.13 19.80 2.68 2.77 14.15 
Revenue adjustments, primarily for pricing
on prior period open sales
0.03
 0.03
 —
 —
 —
 —
 
Revenue adjustments, primarily for pricing
on prior period open sales
0.01 0.01 — (0.01)(0.01)— 
Gross profit per pound$1.02
 $0.97
 $1.47
 $0.48
 $0.45
 $1.05
 Gross profit per pound$0.95 $0.85 $4.61 $1.48 $1.39 $3.72 
            
Copper sales (millions of recoverable pounds)345
 345
   457
 457
   Copper sales (millions of recoverable pounds)1,048 1,048 1,131 1,131  
Molybdenum sales (millions of recoverable pounds)a
    8
     9
 
Molybdenum sales (millions of recoverable pounds)a
23   22 
Tablea.Reflects sales of Contents
molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b.Includes charges totaling $0.08 per pound of copper in third-quarter 2023, $0.06 per pound of copper in third-quarter 2022, $0.08 per pound of copper for the first nine months of 2023 and $0.04 per pound of copper for the first nine months of 2022 for feasibility and optimization studies.

             
 Nine Months Ended September 30, 
 2017 2016 
 By- Product Method Co-Product Method By- Product Method Co-Product Method 
  Copper 
Molyb-
denuma
  Copper 
Molyb-
denuma
 
Revenues, excluding adjustments$2.74
 $2.74
 $7.57
 $2.18
 $2.18
 $6.24
 
             
Site production and delivery, before net noncash and other costs shown below1.59
 1.50
 5.62
 1.41
 1.34
 4.86
 
By-product credits(0.16) —
 —
 (0.12) —
 —
 
Treatment charges0.11
 0.10
 —
 0.11
 0.10
 —
 
Unit net cash costs1.54
 1.60
 5.62
 1.40
 1.44
 4.86
 
DD&A0.29
 0.27
 0.56
 0.29
 0.27
 0.61
 
Noncash and other costs, net0.06
b 
0.06
 0.06
 0.05
 0.05
 0.06
 
Total unit costs1.89
 1.93
 6.24
 1.74
 1.76
 5.53
 
Revenue adjustments, primarily for pricing on prior period open sales—
 —
 —
 —
 —
 —
 
Gross profit per pound$0.85
 $0.81
 $1.33
 $0.44
 $0.42
 $0.71
 
             
Copper sales (millions of recoverable pounds)1,127
 1,127
   1,421
 1,421
   
Molybdenum sales (millions of recoverable pounds)a
    25
     25
 
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 $21 million ($0.02 per pound of copper) for asset impairment charges at Morenci.

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 of $1.61$2.70 per pound of copper in third-quarter2017 2023 and $1.54$2.56 per pound for the first nine months of 20172023 were higher than average unit net cash costs of $1.37$2.56 per pound in third-quarter2016 2022 and $1.40$2.31 per pound for the first nine months of 2016,for 2022, primarily reflecting increased costs of labor
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(including contract labor), maintenance and supplies, partly offset by higher molybdenum by-product credits and lower sales volumes.energy costs.


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.


AverageRevenue 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.

Assuming an average price of $20.00 per pound of molybdenum in fourth-quarter 2023 and achievement of current sales volume and cost estimates, average unit net cash costs (net of by-product credits) for our North America copper mines are expected to approximate $1.58$2.62 per pound of copper for the year 2017, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $8.00 per pound for fourth-quarter 2017.2023. North America’sAmerica's average unit net cash costs for the year 20172023 would change by approximately $0.007$0.01 per pound for each $2$2 per pound change in the average price of molybdenum.molybdenum in fourth-quarter 2023.


South America Mining
We operate two copper mines in South America – Cerro Verde in Peru (in which we own a 53.56 percent53.56% interest) and El Abra in Chile (in which we own a 51 percent51% interest). These operations, which are consolidated in our financial statements.


South America mining includes open-pit mining, sulfide oresulfide-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 Royalty Dispute.In October 2017, the Peruvian Supreme Court issued a ruling in favor of SUNAT, Peru’s national tax authority, that the assessments of royalties for the year 2008 on ore processed by the Cerro Verde concentrator were proper under Peruvian law.  As previously reported in our annual report on Form 10-K for the year ended December 31, 2016, SUNAT has assessed mining royalties on ore processed by the Cerro Verde concentrator for the period December 2006 to September 2011, which Cerro Verde has contested on the basis that its 1998 stability agreement exempts from royalties all minerals extracted from its mining concessions, irrespective of the method used for processing those minerals. 

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As a result of the unfavorable Peruvian Supreme Court decision on the 2008 royalty dispute, Cerro Verde recorded pre-tax charges totaling $357 million ($359 million including net tax charges and $188 million net of noncontrolling interests) in third-quarter 2017 associated with prior assessments and potential royalty and related assessments for December 2006 through the year 2013. Effective January 1, 2014, Cerro Verde entered into a new 15-year stability agreement and has been paying royalties in accordance with the new stability agreement.

Cerro Verde acted in good faith in applying the provisions of its 1998 stability agreement and continues to evaluate alternatives to defend its rights. Cerro Verde intends to seek a waiver available under Peruvian law of penalties and interest associated with this dispute and has not recorded charges for potential unpaid penalties and interest totaling $360 million ($193 million net of noncontrolling interests) at September 30, 2017, as we believe that Cerro Verde should be successful under Peruvian law in obtaining a waiver. Refer to Note 9 for additional discussion.

Operating and Development Activities. TheActivities. During third-quarter 2023, Cerro Verde expansion project commenced operations in September 2015 and achieved capacity operating rates during first-quarter 2016. Cerro Verde’s expanded operations benefit from its large-scale, long-lived reserves and cost efficiencies. The project expanded the concentrator facilities from 120,000processed an average of 431,300 metric tons of ore per day through its concentrators, a new quarterly record, and entered into a new power purchase agreement that is expected to 360,000 metric tons of ore per day.transition its electric power to fully renewable energy sources in 2026.

We continue to evaluate a major expansion atAt the El Abra to process additional sulfide material and to achieve higher recoveries. Exploration results at El Abra indicateoperations in Chile, we have identified a significantlarge sulfide resource which could potentiallythat would support a potential major mill project similar to facilities recently constructedthe large-scale concentrator at Cerro Verde. Future investments will depend on technicalTechnical and economic studies whichcontinue to be evaluated to determine the optimal scope and timing for the sulfide project. Capital cost requirements are being advanced, economic factorsupdated to reflect current market conditions. We are advancing plans to invest in water infrastructure to provide options to extend existing operations, while continuing to monitor Chile's regulatory and market conditions.fiscal matters, as well as trends in capital costs for similar projects.


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Operating Data. Following is a summary of consolidated operating data for our South America mining operationsmining:
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Copper (millions of recoverable pounds)
  
Production305 302 916 862 
Sales307 293 913 845 
Average realized price per pound$3.77 $3.47 $3.82 $3.73 
Molybdenum (millions of recoverable pounds)
  
Productiona
6 4 17 18 
Leach operations  
Leach ore placed in stockpiles (metric tons per day)164,300 175,200 190,500 157,700 
Average copper ore grade (%)0.38 0.34 0.34 0.35 
Copper production (millions of recoverable pounds)77 85 237 217 
Mill operations 
Ore milled (metric tons per day)431,300 403,900 420,700 408,500 
Average ore grade (%):
Copper0.34 0.32 0.34 0.32 
Molybdenum0.01 0.01 0.01 0.01 
Copper recovery rate (%)79.8 85.4 82.0 85.5 
Copper production (millions of recoverable pounds)228 217 679 645 
a.Refer to “Consolidated Results” for the third quarters and first nine monthsour consolidated molybdenum sales volumes, which include sales of 2017 and 2016:molybdenum produced at Cerro Verde.

 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Copper (millions of recoverable pounds)
       
Production328
 317
 932
 986
Sales327
 323
 923
 973
Average realized price per pound$2.95
 $2.19
 $2.82
 $2.17
        
Molybdenum (millions of recoverable pounds)
       
Productiona
8
 5
 21
 14
        
SX/EW operations       
Leach ore placed in stockpiles (metric tons per day)180,400
 163,000
 153,100
 158,100
Average copper ore grade (percent)0.36
 0.41
 0.37
 0.41
Copper production (millions of recoverable pounds)65
 78
 190
 250
        
Mill operations       
Ore milled (metric tons per day)379,200
 355,300
 355,400
 348,900
Average ore grade (percent):       
Copper0.44
 0.41
 0.44
 0.42
Molybdenum0.02
 0.02
 0.02
 0.02
Copper recovery rate (percent)80.9
 84.4
 82.7
 86.1
Copper production (millions of recoverable pounds)263
 239
 742
 736
a.Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.

South America’sOur consolidated copper sales volumes of 327from South America totaled 307 million pounds in third-quarter 2017 approximated third-quarter2016 sales of 323 2023, 293 million pounds. South America’s lower consolidated copper sales volumes of 923pounds in third-quarter 2022, 913 million pounds for the first nine months of 2017, compared with 9732023 and 845 million pounds for the first nine months of 2016,2022. Higher copper sales volumes in the 2023 periods, compared with the 2022 periods, primarily reflect theincreased milling rates and ore grades at Cerro Verde operation being unfavorably impacted by unusually high rainfall and a 21-day labor strike during first-quarter 2017.

Verde. Copper sales from South America minesmining are expected to approximate 1.2 billion pounds of copper for the year 2017, compared with 1.3 billion pounds of copper in 2016.2023.
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Unit Net Cash Costs. Unit We believe unit net cash costs per pound of copper is a measure intended to providethat provides 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
The following table summarizes unit net cash costs and gross profit per pound of copper at theour South America mining operations for the third quarters and first nine months of 2017 and 2016. 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.operations. 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, 
 2017 2016 
 
By-Product
Method
 
Co-Product
Method
 
By-Product
Method
 
Co-Product
Method
 
Revenues, excluding adjustments$2.95
 $2.95
 $2.19
 $2.19
 
         
Site production and delivery, before net noncash
    and other costs shown below
1.60
 1.50
 1.27
 1.20
 
By-product credits(0.19) —
 (0.12) —
 
Treatment charges0.22
 0.22
 0.24
 0.24
 
Royalty on metals0.01
 0.01
 0.01
 —
 
Unit net cash costs1.64
 1.73
 1.40
 1.44
 
DD&A0.41
 0.38
 0.41
 0.39
 
Noncash and other costs, net0.69
a 
0.63
 0.01
 0.01
 
Total unit costs2.74
 2.74
 1.82
 1.84
 
Revenue adjustments, primarily for pricing
    on prior period open sales
0.18
 0.18
 (0.02) (0.02) 
Gross profit per pound$0.39
 $0.39
 $0.35
 $0.33
 
         
Copper sales (millions of recoverable pounds)327
 327
 323
 323
 

Three Months Ended September 30,
 20232022
By-Product
Method		Co-Product
Method		By-Product
Method		Co-Product
Method
Revenues, excluding adjustments$3.77 $3.77 $3.47 $3.47 
Site production and delivery, before net noncash and other costs shown below2.57 2.32 2.60 2.47 
By-product credits(0.42)— (0.16)— 
Treatment charges0.19 0.19 0.13 0.14 
Royalty on metals0.01 0.01 0.01 — 
Unit net cash costs2.35 2.52 2.58 2.61 
DD&A0.36 0.32 0.34 0.32 
Metals inventory adjustments— — 0.07 0.07 
Noncash and other costs, net0.07 a0.07 0.09 0.08 
Total unit costs2.78 2.91 3.08 3.08 
Revenue adjustments, primarily for pricing on prior period open sales0.01 0.01 (0.25)(0.25)
Gross profit per pound$1.00 $0.87 $0.14 $0.14 
Copper sales (millions of recoverable pounds)307 307 293 293 
 Nine Months Ended September 30,
 2017 2016
 
By-Product
Method
 
Co-Product
Method
 
By-Product
Method
 
Co-Product
Method
Revenues, excluding adjustments$2.82
 $2.82
 $2.17
 $2.17
        
Site production and delivery, before net noncash and other costs shown below1.55
 1.45
 1.23
 1.17
By-product credits(0.17) —
 (0.10) —
Treatment charges0.22
 0.22
 0.24
 0.24
Royalty on metals0.01
 0.01
 —
 —
Unit net cash costs1.61
 1.68
 1.37
 1.41
DD&A0.42
 0.40
 0.41
 0.39
Noncash and other costs, net0.25
a 
0.23
 0.02
 0.02
Total unit costs2.28
 2.31
 1.80
 1.82
Revenue adjustments, primarily for pricing on prior period open sales0.04
 0.04
 0.01
 0.01
Gross profit per pound$0.58
 $0.55
 $0.38
 $0.36
     
 
Copper sales (millions of recoverable pounds)923
 923
 973
 973

a.Includes charges totaling $216 million ($0.66
Nine Months Ended September 30,
 20232022
By-Product
Method		Co-Product
Method		By-Product
Method		Co-Product
Method
Revenues, excluding adjustments$3.82 $3.82 $3.73 $3.73 
Site production and delivery, before net noncash and other costs shown below2.51 2.26 2.50 2.33 
By-product credits(0.44)— (0.31)— 
Treatment charges0.20 0.20 0.15 0.15 
Royalty on metals0.01 0.01 0.01 0.01 
Unit net cash costs2.28 2.47 2.35 2.49 
DD&A0.38 0.34 0.35 0.32 
Metals inventory adjustments— — 0.04 0.04 
Noncash and other costs, net0.08 a0.07 0.07 0.06 
Total unit costs2.74 2.88 2.81 2.91 
Revenue adjustments, primarily for pricing on prior period open sales0.08 0.08 0.04 0.04 
Gross profit per pound$1.16 $1.02 $0.96 $0.86 
Copper sales (millions of recoverable pounds)913 913 845 845 
a.Includes $0.03 per pound of copper in third-quarter 2017 and $0.23 per pound of copper for the first nine months of 2017) associated with disputed Cerro Verde royalties for prior years.
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copper for feasibility and optimization studies.


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 South America mining of $1.64$2.35 per pound of copper in third-quarter2017 2023 and $1.61$2.28 per pound for the first nine months of 20172023 were higherlower than average unit net cash costs of $1.40$2.58 per pound in third-quarter2016 2022 and $1.37$2.35 per pound for the first nine months of 2016, primarily2022, reflecting higher mining, millingmolybdenum by-product credits and employee costs at Cerro Verde.volumes, partly offset by higher treatment charges.


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Revenues from Cerro Verde’s copper concentrate sales are recorded net of treatment charges. Accordingly, treatment charges, which will vary with Cerro Verde’s sales volumes and the price of copper. Higher treatment charges in the 2023 periods, compared to the 2022 periods, reflected higher smelting and refining rates.


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.


AverageAssuming an average price of $20.00 per pound of molybdenum in fourth-quarter 2023 and achievement of current sales volume and cost estimates, average unit net cash costs (net of by-product credits) for our South America mining operations are expected to approximate $1.64$2.34 per pound of copper for the year 2017, based on current sales volume and cost estimates and assuming an average price of $8.00 per pound of molybdenum for fourth-quarter 2017.2023.


Indonesia Mining
Indonesia mining includes PT-FI’s Grasberg minerals district,PT-FI operates one of the world’s largest copper and gold deposits,mines at the Grasberg minerals district in Central Papua, Indonesia. We own 90.64 percent of PT-FI, including 9.36 percent owned through our wholly owned subsidiary, PT Indocopper Investama.

PT-FI proportionately consolidates an unincorporated joint venture with Rio Tinto plc (Rio Tinto), under which Rio Tinto has a 40 percent interest in certain assets and a 40 percent interest through 2022 in production exceeding specified annual amounts of copper, gold and silver. Refer to Note 3 in our annual report on Form 10-K for the year ended December 31, 2016, for discussion of our joint venture with Rio Tinto.

PT-FI produces copper concentrate that contains significant quantities of gold and silver. Substantially allWe have a 48.76% ownership interest in PT-FI and manage its mining operations. PT-FI's results are consolidated in our financial statements.

Other than copper concentrate delivered to PT Smelting for further processing into refined products, most of PT-FI’s copper concentrate is sold under long-term contracts,contracts.

Regulatory Matters.Over the past several years, the Indonesia government has enacted various laws and duringregulations to promote downstream processing of various products, including copper concentrates. In 2018, PT-FI agreed to expand its domestic smelting and refining capacity to process all of its copper concentrates in Indonesia and is advancing the first nine monthsconstruction of 2017, approximately half of PT-FI’s concentrate production was sold tothe Indonesia smelter projects and expanding capacity at PT Smelting its 25-percent-owned smelter(refer to "Indonesia Smelter" below).

On June 10, 2023, export licenses for several exporters, including PT-FI and refineryPT Smelting, expired. On July 24, 2023, PT-FI was granted an export license through May 2024 for 1.7 million metric tons of copper concentrate. Through June 10, 2023, PT-FI exported anode slimes under PT Smelting’s export license. A change in Gresik, Indonesia.

Regulatory Matters. In January and February 2017, the Indonesian government issuedregulations during second-quarter 2023 requires PT-FI to follow a new regulations to addressadministrative process for the export of unrefined metals, includinganode slimes. The administrative process is advancing, and PT-FI expects to receive approval to resume exports of anode slimes during fourth-quarter 2023. PT-FI is working with the Indonesia government to obtain approvals to continue exports of copper concentrateconcentrates and anode slimes beyond May 2024 and other matters related tountil the mining sector. The newIndonesia smelter projects are fully commissioned and reach designed operating conditions.

Under PT-FI’s IUPK, export duties are determined based on regulations permit the continuation of copper concentrate exports for a five-year period through January 2022, subject to various conditions, including conversion from a contract of work to a special operating license (known as an IUPK, which does not provide the same level of fiscalthat were in effect in 2018 and legal protections asno duties are required after smelter construction progress reached 50%. Effective March 29, 2023, PT-FI’s Contract of Work (COW), which remains in effect), a commitment to the completionexport duties were eliminated upon verification of smelter construction in five years and payment of export duties to be determinedprogress by the Indonesia government. In July 2023, the Ministry of Finance. In addition,Finance issued a revised regulation on duties for various exported products, including copper concentrates. Under the new regulations enable applicationrevised regulation PT-FI is currently being assessed export duties for an extension of operating rights five years before expirationcopper concentrates at 7.5%, resulting in export duties totaling $147 million in third-quarter 2023. PT-FI does not believe any export duties should be assessed under the revised regulation and continues to discuss the applicability of the IUPK and require foreign IUPK holders to divest a 51 percent interest in the licensed entity to Indonesian interests no later than the tenth year of production. Export licenses would be valid for one-year periods, subject to review every six months, depending on smelter construction progress.

Following the issuance of the January and February 2017 regulations and discussionsrevised regulation with the IndonesianIndonesia government PT-FI advised the government that it was prepared to convertbecause of inconsistencies with its COW to an IUPK, subject to obtaining an investment stability agreement providing contractual rights with the same level of legal and fiscal certainty enumerated under its COW, and provided that the COW would remain in effect until it is replaced by a mutually satisfactory alternative. PT-FI also committed to commence construction of a new smelter during a five-year timeframe, following approval of the extension of its long-term operating rights.IUPK.


On January 12, 2017, PT-FI suspended exports in response to Indonesian regulations adopted in January 2014. In addition, as a result of labor disturbances and a delay in the renewal of its export license for anode slimes, PT Smelting’s operations were shut down from January 19, 2017, until early March 2017. On February 10, 2017, PT-FI was forced to suspend production as a result of limited storage capacity at PT-FI and PT Smelting. On April 21,
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2017, the Indonesian government issued a permit to PT-FI that allowed exports to resume for a six-month period, and PT-FI commenced export shipments.

In mid-February 2017, pursuant to the COW’s dispute resolution process, PT-FI provided formal notice to the Indonesian government of an impending dispute listing the government’s breaches and violations of the COW. PT-FI continues to reserve its rights under these provisions.

As a result of the 2017 regulatory restrictions and uncertainties regarding long-term investment stability, PT-FI took actions to adjust its cost structure, slow investments in its underground development projects and new smelter, and place certain of its workforce on furlough programs.

In late March 2017, the Indonesian government amended the regulations to enable PT-FI to retain its COW until replaced with an IUPK accompanied by an investment stability agreement, and to grant PT-FI a temporary IUPK through October 10, 2017, that would allow concentrate exports to resume during this period. In April 2017, PT-FI entered into a Memorandum of Understanding with the Indonesian government confirming that the COW would continue to be valid and honored until replaced by a mutually agreed IUPK and investment stability agreement. PT-FI agreed to continue to pay a five percent export duty during this period.

In August 2017, we reached an understanding with the Indonesian government on a framework that would resolve PT-FI’s long-term operating rights. This framework includes (i) conversion from the COW to an IUPK providing PT-FI with long-term operating rights through 2041, (ii) Indonesian government certainty of fiscal and legal terms during the term of the IUPK, (iii) PT-FI commitment to construct a new smelter in Indonesia within five years of reaching a definitive agreement, and (iv) divestment of 51 percent of the project area interests to Indonesian participants at fair market value structured so that we retain control over operations and governance of PT-FI.

The framework requires documentation and execution of a definitive agreement, which must be approved by our Board and joint venture partner Rio Tinto. The parties continue to negotiate to reach agreement on important aspects of implementation of the framework, including the timing and process of divestment, governance matters, and the determination of fair market value, and to complete documentation on a comprehensive agreement for PT-FI’s extended operations through 2041. The parties have expressed a mutual objective of completing the negotiations and documentation during 2017.

In October 2017, the Indonesian government extended PT-FI’s export rights to December 31, 2017, while negotiations to reach and document a comprehensive long-term definitive agreement based on the agreed framework continue. Until a definitive agreement is reached, PT-FI has reserved all rights under its COW, including pursuing arbitration under the dispute resolution provisions.

We cannot predict whether PT-FI will be successful in reaching a satisfactory definitive agreement on the terms of its long-term mining rights. Refer to “Risk Factors” contained in Part I, Item 1A. of our annual report on Form 10-K for the year ended December 31, 2016,Note 8 for further discussion of risks associated with ourthe revised export regulation and other Indonesia regulatory matters.

Mining Rights. PT-FI and the Indonesia government continue to engage in discussions regarding the extension of PT-FI's mining rights under its IUPK beyond 2041. An extension beyond 2041 would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in Indonesia.the highly attractive Grasberg minerals district.


Operating and Development Activities. PT-FI is currently mining the final phase of the Grasberg open pit, which contains high copper and gold ore grades. PT-FI expects to mine high-grade ore over the next several quarters prior to transitioning to the Grasberg Block Cave underground mine in early 2019.

Over a multi-year investment period, PT-FI has several projectssuccessfully commissioned three large-scale block cave mines in the Grasberg minerals district related to the development of its large-scale, long-lived, high-grade underground ore bodies. In aggregate, these underground ore bodies are expected to produce large-scale quantities of copper and gold following the transition from the Grasberg open pit. Assuming a definitive agreement is reached to support PT-FI’s long-term investment plans, estimated annual capital spending on these projects would average $1.0 billion per year ($0.8 billion per year net to PT-FI) over the next five years. Considering the long-term nature and size of these projects, actual costs could vary from these estimates. In response to market conditions and Indonesian regulatory uncertainty, timing of these expenditures continues to be reviewed. If PT-FI is unable to reach a definitive agreement with the Indonesian government on its long-term mining rights, we intend to reduce or defer investments significantly in our underground development projects and pursue arbitration under PT-FI’s COW.

The following provides additional information on the continued development of the Common Infrastructure project, the Grasberg(Grasberg Block Cave, underground mine and the Deep Mill Level Zone (DMLZ) ore body that lies below the
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Deep Ore Zone (DOZ) underground mine. Our current plans and mineral reserves in Indonesia assume that PT-FI’s long-term mining rights will be extended through 2041, as stated in the COW.

Common Infrastructure and Grasberg Block Cave Mine. In 2004, PT-FI commenced its Common Infrastructure project to provide access to its large undeveloped underground ore bodies located in the Grasberg minerals district through a tunnel system located approximately 400 meters deeper than its existing underground tunnel system. In addition toBig Gossan), providing access to our underground ore bodies, the tunnel system will enable PT-FI to conduct future exploration in prospective areas associated with currently identified ore bodies. The tunnel system was completed to the Big Gossan terminal, and the Big Gossan mine was brought intoannual production in 2010. The Big Gossan underground mine is currently preparing to restart production. Development of the DMLZ and Grasberg Block Cave underground mines is advancing using the Common Infrastructure project tunnels as access.

The Grasberg Block Cave underground mine accounts for approximately half of our recoverable proven and probable reserves in Indonesia. Production from the Grasberg Block Cave underground mine is expected to commence in early 2019, following the end of mining of the Grasberg open pit. Targeted production rates once the Grasberg Block Cave mining operation reaches full capacity are expected to approximate 130,000-160,000 metric tons of ore per day. PT-FI is reviewing its operating plans to determine the optimum mine plan for the Grasberg Block Cave underground mine.

Aggregate mine development capital for the Grasberg Block Cave underground mine and associated Common Infrastructure is expected to approximate $6.3 billion (incurred between 2008 and 2022), with PT-FI’s share totaling approximately $5.8 billion. Aggregate project costs totaling $3.2 billion have been incurred through September 30, 2017, including $118 million during third-quarter 2017. As a result of regulatory uncertainty, PT-FI has slowed investments in its underground development projects. If PT-FI is unable to reach a definitive agreement with the Indonesian government on its long-term mining rights, we intend to reduce or defer investments significantly in our underground development projects and pursue arbitration under PT-FI’s COW.

DMLZ. The DMLZ ore body lies below the DOZ mine at the 2,590-meter elevation and represents the downward continuation of mineralization in the Ertsberg East Skarn system and neighboring Ertsberg porphyry. In September 2015, PT-FI initiated pre-commercial production that represents ore extracted during the development phase for the purpose of obtaining access to the ore body. In June 2017, production from the DMLZ underground mine was impacted by mining-induced seismic activity, which is not uncommon in block cave mining. To mitigate the impact of these events, PT-FI implemented a revised mine sequence and start-up plan in third-quarter 2017. PT-FI expects DMLZ to ramp up to full capacity of 80,000 metric tons of ore per day in 2021, but at a slower pace than previous estimates.

Drilling efforts continue to determine the extent of the ore body. Aggregate mine development capital costs for the DMLZ underground mine are expected to approximate $3.2 billion (incurred between 2009 and 2021), with PT-FI’s share totaling approximately $1.9 billion. Aggregate project costs totaling $2.1 billion have been incurred through September 30, 2017, including $62 million during third-quarter 2017. As a result of regulatory uncertainty, PT-FI has slowed investments in its underground development projects. If PT-FI is unable to reach a definitive agreement with the Indonesian government on its long-term mining rights, we intend to reduce or defer investments significantly in our underground development projects and pursue arbitration under PT-FI’s COW.

Other Matters. In late October 2017, Indonesia’s Ministry of Environment and Forestry (the Ministry) notified PT-FI of administrative sanctions related to certain activities the Ministry indicated are not reflected in its environmental permit. The Ministry also notified PT-FI that certain operational activities were inconsistent with factors set forth in its environmental permitting studies and that additional monitoring and improvements need to be undertaken related to air quality, water drainage, treatment and handling of certain wastes, and tailings management. PT-FI has been engaged in a process to update its permits through submissions and dialogue with the Ministry, which began in late 2014. PT-FI believes that it has submitted the required documentation to update its permits, and is in the process of addressing other points raised by the Ministry.

As further discussed in “Risk Factors” contained in Part I. Item 1A of our annual report on Form 10-K for the year ended December 31, 2016, in 2009, there were a series of shooting incidents within the PT-FI project area, with sporadic shooting incidents continuing through January 1, 2015. From August 2017 through November 3, 2017, there were six shooting incidents within the PT-FI project area and five shooting incidents in nearby areas, which resulted in one fatality and 12 injuries. The safety of our workforce is a critical concern, and PT-FI is working
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cooperatively with the Indonesian government to address security issues. We also continue to limit the use of the road leading to our mining and milling operations to secured convoys.

Operating Data. Following is a summary of consolidated operating data for our Indonesia mining operations for the third quarters and first nine months of 2017 and 2016:
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Operating Data, Net of Joint Venture Interest       
Copper (millions of recoverable pounds)
       
Production293
 321
 647
 694
Sales258
 332
 630
 702
Average realized price per pound$2.95
 $2.20
 $2.81
 $2.17
        
Gold (thousands of recoverable ounces)
       
Production412
 301
 992
 637
Sales352
 307
 956
 653
Average realized price per ounce$1,290
 $1,327
 $1,261
 $1,292
        
100% Operating Data       
Ore milled (metric tons per day):a
       
Grasberg open pit130,500
 135,600
 91,200
 117,200
DOZ underground mineb
34,500
 35,100
 29,400
 38,700
DMLZ underground mine2,400
 6,000
 3,100
 5,000
Grasberg Block Cave4,200
 2,800
 3,600
 2,600
Big Gossan underground mine—
 1,000
 500
 700
Total171,600
 180,500
 127,800
 164,200
Average ore grades:       
Copper (percent)0.91
 1.02
 1.00
 0.86
Gold (grams per metric ton)0.98
 0.69
 1.08
 0.58
Recovery rates (percent):       
Copper91.1
 91.4
 91.6
 90.5
Gold84.7
 82.7
 84.9
 81.4
Production:       
Copper (millions of recoverable pounds)277
 327
 670
 736
Gold (thousands of recoverable ounces)405
 300
 993
 664
a.Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine and from development activities that result in metal production.
b.Ore milled from the DOZ underground mine is expected to ramp up to 60,000 metric tons of ore per day in 2018.

Indonesia mining’s consolidated copper sales volumes of 258 million pounds in third-quarter 2017 were lower than sales of 332 million pounds in third-quarter 2016, primarily reflecting lower copper ore grades and timing of shipments. Indonesia mining’s consolidated copper sales volumes of 630 million pounds for the first nine months of 2017 were lower than sales of 702 million pounds for the first nine months of 2016, primarily reflecting the impact of regulatory restrictions on PT-FI’s concentrate exports at the beginning of 2017 (see discussion above in “Regulatory Matters”).

Indonesia’s consolidated gold sales of 352 thousand ounces in third-quarter 2017 and 956 thousand ounces for the first nine months of 2017 were higher than sales of 307 thousand ounces in third-quarter 2016 and 653 thousand ounces for the first nine months of 2016, primarily reflecting higher gold ore grades, partly offset by timing of shipments.

During third-quarter 2017, PT-FI's labor productivity improved significantly following a recovery from disruptions that occurred in the first half of the year. Mining and milling rates improved throughout the quarter, and PT-FI continues to assess opportunities to advance mining of a section of high-grade material during 2018 and 2019 through open-pit mining rather than over time through the Grasberg Block Cave underground mine.

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In October 2017, PT-FI and union officials commenced discussions for a new two-year labor agreement. The existing agreement will continue in effect until a new agreement is consummated.

Assuming achieving planned operating rates for fourth-quarter 2017, consolidated sales volumes from Indonesia mining are expected to approximate 1.0approximately 1.6 billion pounds of copper and 1.6 million ounces of gold. Milling rates from these underground mines averaged 206,600 metric tons of ore per day in third-
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quarter 2023, an approximate 10% increase from 188,700 metric tons of ore per day in third-quarter 2022. During third-quarter 2023, PT-FI successfully commissioned a new crusher to support increased mining rates in the Grasberg Block Cave ore body.

PT-FI’s ongoing project to install additional milling facilities is expected to be complete in early 2024. The project is expected to increase milling capacity to approximately 240,000 metric tons of ore per day to provide sustained large scale production volumes. PT-FI is also advancing a mill recovery project with the installation of a new copper cleaner circuit that is expected to be completed in the second half of 2024 and to provide incremental metal production of approximately 60 million pounds of copper and 40 thousand ounces of gold per year.

PT-FI is advancing plans to transition its existing energy source from coal to liquefied natural gas, which is expected to meaningfully reduce PT-FI's Scope 1 GHG emissions at the Grasberg minerals district. PT-FI is planning investments in a new gas-fired combined cycle facility at Grasberg with a targeted start date in 2027. Capital expenditures for the year 2017,new facilities, to be incurred over the next three to four years, approximate $1 billion, which represents an incremental cost of $0.4 billion compared with 1.1to previously planned investments to refurbish the existing coal units.

Kucing Liar. Long-term mine development activities are ongoing for PT-FI's Kucing Liar deposit in the Grasberg minerals district, which is expected to produce over 6 billion pounds of copper and 1.16 million ounces of gold between 2028 and the end of 2041. Pre-production development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe. Capital investments are estimated to average approximately $400 million per year over this period. At full operating rates of approximately 90,000 metric tons of ore per day, annual production from Kucing Liar is expected to approximate 550 million pounds of copper and 560 thousand ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production. Kucing Liar will benefit from substantial shared infrastructure and PT-FI's experience and long-term success in block-cave mining.

Indonesia Smelter. In connection with PT-FI’s 2018 agreement with the Indonesia government to secure the extension of its long-term mining rights, PT-FI agreed to expand its domestic smelting and refining capacity to process all of its copper concentrates in Indonesia. PT-FI is actively engaged in the following projects for additional domestic smelting capacity:

•Construction of the Manyar smelter in Gresik, Indonesia with a capacity to process approximately 1.7 million metric tons of copper concentrate per year. Construction progress currently approximates 84% complete. Construction of the smelter has an estimated cost of $3.0 billion, including $2.8 billion for a construction contract (excluding capitalized interest, owner’s costs and commissioning) and $0.2 billion for investment in a desalinization plant. Construction is expected to be complete in mid-2024 followed by commissioning of the facilities and a ramp-up schedule through year-end 2024.
•Expansion of PT Smelting's capacity by 30% to 1.3 million metric tons of copper concentrate per year, which is expected to be completed by the end of 2023. PT-FI is funding the cost of the expansion, estimated to approximate $250 million, with a loan that will convert to equity and increase PT-FI’s ownership in PT Smelting to a majority ownership interest, which is expected to occur in 2024.
•The PMR is being constructed to process gold and silver from the Manyar smelter and PT Smelting. Construction is in progress with commissioning expected during 2024 at an estimated cost of $575 million, which incorporates recent revisions to scope.

For the first nine months of 2023, capital expenditures for the Indonesia smelter projects totaled $1.2 billion, and are expected to approximate $1.6 billion for the year 2023. Capital expenditures for the Indonesia smelter projects are being funded with PT-FI's senior notes and availability under its revolving credit facility.

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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,
 2023202220232022
Copper (millions of recoverable pounds)
  
Production436 381 1,171 1,169 
Sales430 406 1,014 1,195 
Average realized price per pound$3.77 $3.45 $3.81 $3.71 
Gold (thousands of recoverable ounces)
  
Production528 445 1,409 1,330 
Sales395 476 1,153 1,356 
Average realized price per ounce$1,898 $1,683 $1,932 $1,786 
Ore extracted and milled (metric tons per day):  
Grasberg Block Cave underground mine131,000 100,600 112,000 100,900 
Deep Mill Level Zone underground mine76,900 81,400 75,700 79,000 
Big Gossan underground mine8,100 7,600 7,800 7,500 
Other adjustments(9,400)(900)(2,500)3,400 
Total206,600 188,700 

193,000 190,800 
Average ore grades:  
Copper (%)1.21 1.17 1.18 1.20 
Gold (grams per metric ton)1.15 1.07 1.10 1.06 
Recovery rates (%): 
Copper89.5 90.1 89.5 89.8 
Gold77.8 77.2 77.5 77.9 

PT-FI’s consolidated copper sales of 430 million pounds in third-quarter 2023 were higher than third-quarter 2022 copper sales volumes of 406 million pounds, primarily reflecting higher mining rates and ore grades. PT-FI’s consolidated copper sales of 1.0 billion pounds for the first nine months of 2023 were lower than 1.2 billion pounds for the first nine months of 2022, primarily reflecting the deferral of sales recognition related to the PT Smelting tolling arrangement.

PT-FI’s consolidated gold sales totaled 395 thousand ounces in third-quarter 2023, 476 thousand ounces in third-quarter 2022, 1.2 million ounces for the first nine months of 2023, and 1.4 million ounces for the first nine months of 2022. Lower gold sales volumes in the 2023 periods, compared with the 2022 periods, primarily reflect the timing of shipments of anode slimes associated with a change in administrative requirements for products that were previously being exported by PT Smelting. At September 30, 2023, approximately 75 thousand ounces of gold in anode slimes were included in inventory and available for sale pending approval of PT-FI’s export license for anode slimes. The first nine months of 2023 was also impacted by the deferral of sales recognition related to the PT Smelting tolling arrangement.

Consolidated sales volumes from PT-FI are expected to approximate 1.5 billion pounds of copper and 1.7 million ounces of gold for the year 2016. At the Grasberg mine, the sequencing2023, net of mining areas with varying ore grades causes fluctuations in quarterly and annual productiona deferral of approximately 100 million pounds of copper and gold.

Indonesia mining’s projected180 thousand ounces of gold from mine production under tolling arrangements to be processed and sold as refined metal in future periods. Projected sales volumes for the year 2017 are dependent on a number of factors, including operational performance, workforce productivitythe resumption of anode slime exports, weather-related conditions and other factors detailed in the timing of shipments.“Cautionary Statement.”


Unit Net Cash Costs. Unit We believe unit net cash costs per pound of copper is a measure intended to providethat provides 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 for the third quarters and first nine months of 2017 and 2016.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,
 20232022
 By-Product MethodCo-Product MethodBy-Product MethodCo-Product Method
 CopperGoldCopperGold
Revenues, excluding adjustments$3.77 $3.77 $1,898 $3.45 $3.45 $1,683 
Site production and delivery, before net noncash and other costs shown below1.42 0.96 484 1.81 1.13 553 
Gold, silver and other by-product credits(1.83)— — (2.00)— — 
Treatment charges0.32 0.22 109 0.23 0.15 72 
Export duties0.34 0.23 116 0.20 0.12 61 
Royalty on metals0.19 0.12 64 0.20 0.12 67 
Unit net cash costs0.44 1.53 773 0.44 1.52 753 
DD&A0.63 0.43 214 0.65 0.41 200 
Noncash and other costs (credits), net0.02 a0.01 6 (0.02)(0.01)(7)
Total unit costs1.09 1.97 993 1.07 1.92 946 
Revenue adjustments, primarily for pricing on prior period open sales— — 8 (0.39)(0.39)(36)
PT Smelting intercompany profit— — — 0.15 0.09 45 
Gross profit per pound/ounce$2.68 $1.80 $913 $2.14 $1.23 $746 
Copper sales (millions of recoverable pounds)430 430  406 406  
Gold sales (thousands of recoverable ounces)  395   476 
           
Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 20232022
By-Product Method Co-Product Method By-Product Method Co-Product Method By-Product MethodCo-Product MethodBy-Product MethodCo-Product Method
 Copper Gold Copper Gold CopperGoldCopperGold
Revenues, excluding adjustments$2.95
 $2.95
 $1,290
 $2.20
 $2.20
 $1,327
Revenues, excluding adjustments$3.81 $3.81 $1,932 $3.71 $3.71 $1,786 
           
Site production and delivery, before net noncash and other costs shown below1.41
 0.87
 383
 1.37
 0.86
 520
Site production and delivery, before net noncash and other costs shown below1.71 1.07 542 1.55 0.99 476 
Gold and silver credits(1.80) —
 —
 (1.29) —
 —
Gold, silver and other by-product creditsGold, silver and other by-product credits(2.32)— — (2.11)— — 
Treatment charges0.27
 0.17
 74
 0.27
 0.17
 104
Treatment charges0.36 0.22 113 0.24 0.15 74 
Export duties0.08
 0.05
 22
 0.10
 0.07
 39
Export duties0.16 0.10 51 0.20 0.13 63 
Royalty on metals0.17
 0.10
 48
 0.12
 0.07
 50
Royalty on metals0.23 0.14 70 0.24 0.16 70 
Unit net cash costs0.13
 1.19
 527
 0.57
 1.17
 713
Unit net cash costs0.14 1.53 776 0.12 1.43 683 
DD&A0.53
 0.33
 143
 0.33
 0.21
 125
DD&A0.69 0.43 216 0.65 0.41 199 
Noncash and other costs, net0.09
a 
0.06
 25
 0.05
b 
0.03
 19
Noncash and other costs, net0.11 a,b0.07 36 0.02 b0.01 5 
Total unit costs0.75
 1.58
 695
 0.95
 1.41
 857
Total unit costs0.94 2.03 1,028 0.79 1.85 887 
Revenue adjustments, primarily for pricing on prior period open sales0.11
 0.11
 4
 (0.02) (0.02) 1
Revenue adjustments, primarily for pricing on prior period open sales0.11 0.11 15 0.02 0.02 2 
PT Smelting intercompany loss(0.07) (0.04) (19) (0.03) (0.02) (10)
PT Smelting intercompany profitPT Smelting intercompany profit0.11 0.07 35 0.03 0.02 9 
Gross profit per pound/ounce$2.24
 $1.44
 $580
 $1.20
 $0.75
 $461
Gross profit per pound/ounce$3.09 $1.96 $954 $2.97 $1.90 $910 
           
Copper sales (millions of recoverable pounds)258
 258
   332
 332
  Copper sales (millions of recoverable pounds)1,014 1,014  1,195 1,195  
Gold sales (thousands of recoverable ounces)    352
     307
Gold sales (thousands of recoverable ounces)  1,153   1,356 
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 Nine Months Ended September 30,
 2017 2016
 By-Product Method Co-Product Method By-Product Method Co-Product Method
  Copper Gold  Copper Gold
Revenues, excluding adjustments$2.81
 $2.81
 $1,261
 $2.17
 $2.17
 $1,292
            
Site production and delivery, before net noncash and other costs shown below1.71
 1.01
 451
 1.70
 1.08
 639
Gold and silver credits(1.98) —
 —
 (1.28) —
 —
Treatment charges0.27
 0.16
 71
 0.29
 0.18
 109
Export duties0.10
 0.06
 26
 0.09
 0.06
 34
Royalty on metals0.16
 0.09
 47
 0.12
 0.07
 48
Unit net cash costs0.26
 1.32
 595
 0.92
 1.39
 830
DD&A0.59
 0.35
 156
 0.40
 0.25
 152
Noncash and other costs, net0.22
a 
0.13
 58
 0.04
b 
0.03
 16
Total unit costs1.07
 1.80
 809
 1.36
 1.67
 998
Revenue adjustments, primarily for pricing on prior period open sales0.06
 0.06
 9
 —
 —
 25
PT Smelting intercompany loss(0.03) (0.01) (7) (0.01) (0.01) (4)
Gross profit per pound/ounce$1.77
 $1.06
 $454
 $0.80
 $0.49
 $315
            
Copper sales (millions of recoverable pounds)630
 630
   702
 702
  
Gold sales (thousands of recoverable ounces)    956
     653
a.Includes costs charged directly to production and delivery costs totaling $9 million ($0.03 per pound of copper) for third-quarter 2017 and $112 million ($0.18 per pound of copper) for the first nine months of 2017 as a result of workforce reductions.
b.Includes asset retirement charges of $17 million ($0.05 per pound of copper in third-quarter 2016 and $0.02 per pound of copper for the first nine months of 2016).
A significant portion of PT-FI’s costs are fixed and unit costs vary depending on production volumes and other factors. Indonesia’s unit net cash costs (including gold and silver credits) of $0.13a.Includes charges totaling $0.01 per pound of copper in third-quarter 2017 2023 and $0.26$0.02 per pound of copper for the first nine months 2023 for feasibility and optimization studies.
b.Includes a charge totaling $0.05 per pound of copper for the first nine months of 2017 were lower than2023 associated with a potential administrative fine. The first nine months of 2022 also includes a charge of $0.03 per pound of copper associated with an administrative fine. Refer to Note 8 for further discussion.

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PT-FI's unit net cash costs (net of $0.57gold, silver and other by-product credits) of $0.44 per pound of copper in third-quarter2016 2023 approximated unit net cash costs in third-quarter 2022, primarily reflecting higher copper volumes, offset by lower gold, silver and $0.92other by-product credits and higher treatment charges and export duties. PT-FI’s unit net cash costs (net of gold, silver and other by-product credits) of $0.14 per pound of copper for the first nine months of 2016,2023 were higher than unit net cash costs of $0.12 per pound for the first nine months of 2022, primarily reflecting increased underground maintenance costs and higher goldtreatment charges and silver credits,the impact of lower copper sales volumes, partly offset by lower copper sales volumes.higher gold, silver and other by-product credits.


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. The increase in treatment charges per pound of copper and ounce of gold in the 2023 periods, compared with the 2022 periods, reflects higher costs associated with the new tolling arrangement with PT Smelting compared to the previous copper concentrate sales agreement. Tolling costs paid to PT Smelting are recorded as production costs in the consolidated statements of income but are reflected as treatment costs above in our unit net cash costs presentation.


PT-FI’s royaltiesexport duties totaled $43$147 million in third-quarter 2017, $402023, $80 million in third-quarter 2016, $1062022, $165 million for the first nine months of 20172023 and $84$245 million for the first nine months of 2016. Export2022. In late 2022, the export duty rate on PT-FI’s sales declined from 5% to 2.5% as a result of smelter development progress, and effective March 29, 2023, export duties were eliminated upon verification by the Indonesia government that construction progress on the Manyar smelter exceeded 50%. In July 2023, the Indonesia government issued a revised regulation on duties for various exported products, including copper concentrates, and under the revised regulation, PT-FI is currently being assessed export duties for copper concentrates at 7.5%. Refer to Note 8 for further discussion of the revised regulation.

PT-FI’s royalties vary with the volume of metal sold and the prices of copper and gold. PT-FI’s royalties totaled $21$78 million in third-quarter 2017, $342023, $81 million in third-quarter 2016, $622022, $228 million for the first nine months of 20172023 and $63$281 million for the first nine months of 2016. As further discussed above in “Regulatory Matters,” PT-FI agreed to continue to pay a five percent export duty.2022.


Higher depreciation rates for the 2017 periods, compared with the 2016 periods, primarily relate to higher amortization of asset retirement costs associated with revised estimates at the end of 2016 for an overburden stockpile. Additionally, becauseBecause certain assets are depreciated on a straight-line basis, PT-FI’s unit depreciation rate variesmay vary with asset additions and the level of copper production and sales. The change in the DD&A rate per pound of copper in the 2023 periods, compared with the 2022 periods, primarily reflects changes in sales volumes.


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.


PT Smelting intercompany lossprofit for the third quarter and first nine months of 2022 represents the change in the deferral of 25 percent39.5% of PT-FI’s profit on sales to PT Smelting. ReferBeginning on January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to “Operations –a tolling arrangement. Under this arrangement, PT-FI pays PT Smelting & Refining”a tolling fee to smelt and refine its copper concentrate and PT-FI retains title to all products for sales to third parties. Accordingly, beginning in 2023, there are no further discussion.sales to PT Smelting.


Assuming an average gold price of $1,300$1,900 per ounce forin fourth-quarter 20172023 and achievement of current sales volumevolumes and cost estimates, unit net cash costs (net of(including gold, silver and silverother by-product credits) for Indonesia miningPT-FI are expected to approximate $0.07$0.15 per pound of copper for the year 2017. Indonesia mining’s2023. PT-FI's estimated unit net cash costs for the year 20172023 include assessment of a 7.5% export duty during the second half of 2023, which continues to be discussed with the Indonesia government. PT-FI's average unit net cash costs for the year 2023 would change by approximately $0.04$0.05 per pound of copper for each $50$100 per ounce change in the average price of gold.gold in fourth-quarter 2023.
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Because of the fixed nature of a large portion of Indonesia’s costs, unit costs vary from quarter to quarter depending on copper and gold volumes.

Molybdenum Mines
We haveoperate two wholly owned molybdenum mines in North AmericaColorado – the Henderson underground mine and the Climax open-pit mine both in Colorado.and the Henderson underground mine. The HendersonClimax and ClimaxHenderson 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 HendersonClimax and ClimaxHenderson mines, as well as from our North America and South America copper mines, is processed at our own conversion facilities.


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Operating and Development Activities. In response to market conditions, the Henderson molybdenum mine continues to operate at reduced rates. Production from the Molybdenum mines totaled 87 million pounds of molybdenum in third-quarter2017, 5 2023, 8 million pounds in third-quarter 2016, 24 2022, 22 million pounds for the first nine months of 20172023 and 1923 million pounds for the first nine months of 2016.2022. 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, and refermines. Refer to “Outlook” for projected consolidated molybdenum sales volumes.volumes and to “Markets” for a discussion of molybdenum prices.


Unit Net Cash Costs Per Pound of Molybdenum. Unit We believe unit net cash costs per pound of molybdenum is a measure intended to providethat provides 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 ourthe Molybdenum mines of $7.90$18.07 per pound of molybdenum in third-quarter2017 2023 and $7.60$15.25 per pound of molybdenum for the first nine months of 20172023 were lowerhigher than average unit net cash costs of $10.28$12.10 per pound of molybdenum in third-quarter 2016 2022 and $8.39$11.22 per pound of molybdenum for the first nine months of 2016,2022, primarily reflecting lower production volumes associated with ore types mined and higher volumes. Assuming achievement ofcontract labor costs. Based on current sales volume and cost estimates, we estimateaverage unit net cash costs for the Molybdenum mines are expected to average $7.85approximate $14.47 per pound of molybdenum for the year 2017.2023. 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 athe Miami smelter in Arizona, (Miami smelter)the El Paso refinery in Texas and Atlantic Copper, a smelter and refinery in Spain (Atlantic Copper).Spain. Additionally, PT-FI owns 25 percenthas a 39.5% ownership interest in PT Smelting and expects its ownership to increase to a majority interest upon completion of the expansion of PT Smelting’s smelting capacity. Through this form of downstream integration, we are assured placement of a smelter and refinery in Gresik, Indonesia (PT Smelting). significant portion of our copper concentrate production.

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, higherCopper. 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. Through this form of downstream integration, we are assured placement of a significant portion of our concentrate production.smelter and El Paso refinery.


Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. During the first nine months of 2017,2023, Atlantic Copper’s copper concentrate purchases included 38% from our copper mining operations included 16 percent from our North America copper mines and 10 percent from South America mining, with the remainder purchased62% from third parties.


In March 2017, PT Smelting’s anode slimes export license was renewed through MarchBeginning on January 1, 2018. PT-FI’s contract2023, PT-FI's commercial arrangement with PT Smelting provides for PT-FI to supply 100 percent of thechanged from a copper concentrate requirements (subjectsales agreement to a minimum or maximum rate) necessary fortolling arrangement. Under this arrangement, PT-FI pays PT Smelting a tolling fee (which PT-FI records as production costs in the consolidated statements of income) to produce 205,000 metric tons of copper annually on a priority basis. PT-FI may also sellsmelt and refine its copper concentrate and PT-FI retains title to all products for sale to third parties (i.e., there are no further sales to PT Smelting at market rates for quantities in excess of 205,000 metric tons of copper annually. During the first nine months of 2017, PT-FI supplied substantially all of PT Smelting’s concentrate requirements. Minimum and maximum treatment charge rates have been approved through April 2020.Smelting).


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We defer recognizing profits on sales from our mining operations to Atlantic Copper and(and on 25 percent39.5% of PT-FI’s sales to PT Smelting for the 2022 periods) until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions to operating income totaling $81 million ($37 million to net income attributable to common stock of $24stock) in third-quarter 2023, $33 million ($14 million to net income attributable to common stock) in third-quarter2017, $17 2022, $153 million for third-quarter 2016, less than $1($64 million to net income attributable to common stock) for the first nine months of 20172023 and $6$73 million ($37 million to net income attributable to common stock) for the first nine months of 2016.2022. 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 $62$30 million at September 30, 2017.2023. 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.


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CAPITAL RESOURCES AND LIQUIDITY


Our consolidated operating cash flows vary with sales volumes,volumes; prices realized from copper, gold and molybdenum sales,sales; production costs,costs; income taxes,taxes; other working capital changeschanges; and other factors. Our results for the first nine months of 2023 reflect strong operating performance and continued execution of our business strategy. We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value. We are pursuing opportunities to enhance our mines’ net present values,remain focused on managing costs efficiently and we continue to advance studiesseveral important value-enhancing initiatives. We believe the actions we have taken in recent years to build a strong balance sheet, successfully expand low-cost operations and maintain flexible organic growth options while maintaining sufficient liquidity, will allow us to continue to execute our business plans in a prudent manner during periods of economic uncertainty while preserving substantial future asset values.

We closely monitor market conditions and will adjust our operating plans to protect liquidity and preserve our asset values, if necessary. We expect to maintain a strong balance sheet and liquidity position as we focus on building long-term value in our business, executing our operating plans safely, responsibly and efficiently, and prudently managing costs and capital expenditures.

Based on current sales volume, cost and metal price estimates discussed in “Outlook,” our available cash and cash equivalents plus our projected consolidated operating cash flows of $5.4 billion for the year 2023 exceed our expected consolidated capital expenditures of $4.8 billion (which includes $1.9 billion for major mining projects and $1.6 billion for the Indonesia smelter projects that are being funded with PT-FI’s senior notes and its available credit facility).

Planned capital expenditures for major mining projects over the next few years are primarily associated with projects in Indonesia, including underground development activities, supporting mill and power capital costs and initial spending on a new gas-fired combined cycle facility. In addition, we are advancing discretionary capital projects associated with the development of the Kucing Liar deposit in Grasberg and an expansion of concentrator capacity at our Bagdad operation.

We have cash on hand and the financial flexibility to fund capital expenditures and our other cash requirements for the next twelve months, including noncontrolling interest distributions, income tax payments, current common stock dividends (base and variable) and any share or debt repurchases. At September 30, 2023, we had $5.7 billion in consolidated cash and cash equivalents (which includes $0.6 billion of PT-FI cash designated for Indonesia smelter projects) and FCX, PT-FI and Cerro Verde have $3.0 billion, $1.3 billion and $350 million, respectively, of availability under their revolving credit facilities.

At September 30, 2023, we had $0.7 billion in current restricted cash and cash equivalents, which includes (i) $0.5 billion associated with PT-FI's export proceeds temporarily deposited in Indonesia banks in accordance with a regulation issued by the Indonesia government that became effective August 1, 2023, requiring 30% of export proceeds to be temporarily deposited into Indonesia banks for a period of 90 days before withdrawal, and (ii) $145 million in assurance to support PT-FI’s commitment for smelter development in Indonesia. Refer to Note 8 for further discussion of an additional refundable deposit that PT-FI may be required to make related to smelter development.

Financial Policy. Our financial policy is aligned with our strategic objectives of maintaining a strong balance sheet, providing cash returns to shareholders and advancing opportunities for future developmentgrowth. The policy includes a base dividend and a performance-based payout framework, whereby up to 50% 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 us maintaining our net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding net project debt for additional smelting capacity in Indonesia). Our Board of Directors (Board) will review the structure of the performance-based payout framework at least annually.

At September 30, 2023, net debt, excluding net debt for the Indonesia smelter projects, totaled $0.8 billion. Refer to "Net Debt" for further discussion.

On September 20, 2023, our Board declared cash dividends totaling $0.15 per share on our common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which was paid on November 1, 2023, to common stockholders of record as of October 13, 2023. Based on current market conditions, the base and variable dividends on our common stock are anticipated to
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total $0.60 per share for 2023 (including the dividends paid on November 1, 2023), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend. The declaration and payment of dividends (base or variable) is at the discretion of our copper resources, the timing of whichBoard and will be dependentdepend on market conditions.our financial results, cash requirements, global economic conditions and other factors deemed relevant by our Board.


Cash
Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, excluding cash committed for the Indonesia smelter projects and net of noncontrolling interests’ share, taxes and other costs at September 30, 20172023 (in billions):
Cash at domestic companies$3.1 
Cash at international operations2.6 a
Total consolidated cash and cash equivalents5.7 
Cash for Indonesia smelter projects(0.6)b
Noncontrolling interests’ share(0.9)
Cash, net of noncontrolling interests’ share4.2 
Withholding taxes(0.1)

Net cash available$4.1 
Cash at domestic companies$3.7
Cash at international operations1.3
Total consolidated cash and cash equivalents5.0
Noncontrolling interests’ share(0.4)
Cash, net of noncontrolling interests’ share4.6
Withholding taxes and other(0.1)
Net cash available$4.5
a.Excludes $0.5 billion of cash associated with a portion of PT-FI's export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with an August 2023 regulation issued by the Indonesia government, which have been presented as current restricted cash and cash equivalents in FCX's consolidated balance sheet.
b.Estimated remaining net proceeds from PT-FI's senior notes.

Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayments, 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
Following is a summary of our total debt and the related weighted-average interest rates at September 30, 2017 (in billions, except percentages):
   Weighted-
   Average
   Interest Rate
Senior Notes$13.3
 4.4%
Cerro Verde credit facility1.5
 3.1%
Total debt$14.8
 4.2%
    
In September 2017, we redeemed $543 million aggregate principal amount of senior notes, resulting in annual cash interest savings of approximately $35 million. We recognized an $11 million gain on early extinguishment of debt in connection with the redemptions. During the first nine months of 2017, we have reduced our total debt balance by $1.25 billion. Maturities of debt at September 30, 2017, total $0.7 billion in fourth-quarter 2017, $1.5 billion in 2018, $1.9 billion in 2020, $1.3 billion in 2021 and $9.4 billion thereafter.

At September 30, 2017, we2023, consolidated debt totaled $9.4 billion, with a weighted-average interest rate of 5.2%. Substantially all of our outstanding debt is fixed rate. FCX has $0.7 billion in scheduled senior note maturities through 2026 and an average remaining duration of its total debt of approximately 10 years. We had no borrowings $36outstanding and $7 million in letters of credit issued and availability of $3.5under our $3.0 billion revolving credit facility. Additionally, at September 30, 2023, no amounts were drawn under ourPT-FI’s $1.3 billion revolving credit facility which matures on May 31, 2019.

or Cerro Verde’s $350 million revolving credit facility. Refer to Note 65 for further discussion of debt.discussion.
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Operating Activities
We generated consolidated operating cash flows of $3.0$4.0 billion (including $0.4(net of $0.7 billion inof working capital sources and changes in tax payments)other uses) for the first nine months of 20172023 and $2.6$4.1 billion (including $0.5(net of $1.0 billion inof working capital sources and changes in tax payments)other uses) for the first nine months of 2016.2022.

Subject to future commodity prices for copper, gold and molybdenum, we expect estimated consolidated operating cash flows for the years 2017 and 2018, plus available cash and availability under our credit facility and uncommitted lines of credit, to be sufficient to fund our budgeted capital expenditures, scheduled debt maturities, noncontrolling interest distributions and other cash requirements for the year. Refer to “Outlook” for further discussion of projected operating cash flows for the year 2017, and to “Risk Factors,” contained in Part I, Item 1A. of our annual report on Form 10-K for the year ended December 31, 2016, for discussion of regulatory matters in Indonesia, which could have a significant impact on future results.


Investing Activities
Capital Expenditures. Capital expenditures, including capitalized interest, totaled $1.0$3.5 billion for the first nine months of 2017,2023, including $0.6approximately $1.2 billion for major mining projects, primarily associated with underground development activities in the Grasberg minerals district and $1.2 billion for the Indonesia smelter projects.

Capital expenditures, including capitalized interest, totaled $2.3$2.4 billion for the first nine months of 2016, consisting of2022, including approximately $1.2 billion for major mining operations (including approximately $0.9projects, primarily associated with underground development activities in the Grasberg minerals district and $0.5 billion for major projects) and $1.1 billion for oil and gas operations.the Indonesia smelter projects.


Lower capital expendituresProceeds from Sales of Assets. Proceeds from sales of assets totaled $16 million for the first nine months of 2017, compared with2023 and $102 million for the first nine months of 2016, primarily reflect a decrease in oil and gas activities as a result2022. In May 2022, we sold all of the sales of significant oil and gas propertiesshares we owned in 2016 and a decreaseJervois Global Limited, which we received in major mining projects associatedconnection with the completion2021 sale of the Cerro Verde expansion. Referour remaining cobalt business, for proceeds of $60 million.

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Loans to “Outlook”PT Smelting for further discussion of projected capital expendituresExpansion.PT-FI made loans to PT Smelting totaling $109 million for the year 2017.first nine months of 2023 and $51 million for the first nine months of 2022 to fund PT Smelting’s expansion project.


Dispositions.Financing Activities
Debt Transactions. Net proceeds from asset salesrepayments of debt totaled $1.4$1.2 billion for the first nine months of 2016 primarily associated with the $1.0 billion sale of an additional 13 percent undivided interest in Morenci, the sale of an interest in the Timok exploration project in Serbia and from oil and gas asset sales,2023, including the Haynesville shale assetsrepayment of our 3.875% Senior Notes that matured in March 2023 totaling $996 million and certain oil and gas royalty interests.open-market purchases of our senior notes for a total cost of $221 million. Refer to Note 25 for further discussion of these transactions.additional information.


Financing Activities
Debt Transactions.Net repayments ofproceeds from debt totaled $1.3 billion for the first nine months of 2017 totaled $1.22022, reflecting net proceeds from PT-FI’s $3.0 billion primarily for the redemption and repayment of senior notes and the repayment of Cerro Verde’s shareholder loans,note offering, partly offset by the additionalrepayment of borrowings onunder PT-FI’s term loan ($0.6 billion), Cerro Verde’s credit facility.term loan ($0.3 billion) and open-market purchases of our senior notes ($0.9 billion).


Net repayments of debtCash Dividends on Common Stock. We paid cash dividends on our common stock totaling $647 million for the first nine months of 2016 totaled $1.1 billion, primarily reflecting payments2023 and $652 million for the first nine months of $0.6 billion on our term loan, $0.2 billion on the Cerro Verde credit facility and $0.2 billion on lines of credit.

Dividends. The Board suspended our annual common stock dividend in December 2015.2022. The declaration and payment of dividends (base or variable) is at the discretion of our Board and will depend uponon our financial results, cash requirements, future prospectsglobal economic conditions and other factors deemed relevant by our Board. Refer to Note 5, Item 1A. “Risk Factors” contained in Part I of our 2022 Form 10-K (as updated in Part II, Item 1A. herein), “Cautionary Statement” below and the discussion of our financial policy above.


Common stockCash Dividends and Distributions Paid to Noncontrolling Interests. Cash dividends of $2and distributions paid to noncontrolling interests at our international operations totaled $407 million for the first nine months of 20172023 and $5$625 million for the first nine months of 2016 related to accumulated2022. Based on the estimates discussed in “Outlook,” we currently expect cash dividends paid for vested stock-based compensation.

Cash dividendsand distributions paid to noncontrolling interests totaled $67 milliontotaling $0.5 billion for the first nine months of 2017year 2023. Cash dividends and $87 million for the first nine months of 2016. These payments willdistributions to noncontrolling interests vary based on the operating results and cash requirements of our consolidated subsidiaries.


CONTRACTUAL OBLIGATIONS

As further discussedTreasury Stock Purchases. Since mid-2021, we have acquired 47.8 million shares of our common stock under our share repurchase program for a total cost of $1.8 billion ($38.35 average cost per share), including 35.1 million shares in Note 6, during the first nine months of 2017,2022 for a total cost of $1.3 billion. No shares have been purchased since July 11, 2022, and we have reduced$3.2 billion available for repurchases under the program. The timing and amount of share repurchases is 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 our December 31, 2016, total debt balance by $1.25 billion. Board’s discretion. Refer to Item 1A. “Risk Factors” contained in Part I of our 2022 Form 10-K (as updated in Part II, Item 1A. herein), “Cautionary Statement” below and discussion of our financial policy above.

Contributions from Noncontrolling Interests. We received equity contributions totaling $50 million for the first nine months of 2023 and $142 million for the first nine months of 2022 from PT Mineral Industri Indonesia (formerly PT Indonesia Asahan Aluminium (Persero), (MIND ID)). Contributions for the first nine months of 2023 were primarily associated with receipt of the final capital contribution in accordance with the PT-FI shareholders agreement. Contributions for the first nine months of 2022 were associated with MIND ID’s share of capital spending on underground mine development projects in the Grasberg minerals district. Beginning on January 1, 2023, capital spending at PT-FI is being shared in accordance with the shareholders’ ownership interests.

CONTRACTUAL OBLIGATIONS

There have been no other material changes in our contractual obligations since December 31, 2016.2022. Refer to Note 13 and Part II, Items 7. and 7A. in our annual report on2022 Form 10-K for the year ended December 31, 2016, for information regarding our contractual obligations.

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CONTINGENCIES


Environmental Liabilities and Asset Retirement Obligations (AROs)
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 liabilities and asset retirement obligationsAROs and also review changes in facts and circumstances associated with these obligations at least quarterly. Other than as disclosed

As discussed in Note 9, there8, we recorded charges totaling $199 million for revisions to our environmental obligations during the first nine months of 2023, primarily associated with revised cost estimates. There have been no materialsignificant changes to our environmental and asset retirement obligationsAROs since December 31, 2016.2022. Updated cost assumptions, including increases and decreases to cost estimates, changes in the anticipated scope and timing of remediation activities, and settlement
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of environmental matters may result in additional revisions to certain of our environmental obligations.liabilities and AROs. Refer to Note 12 in our annual report on2022 Form 10-K for the year ended December 31, 2016, for further information regarding our environmental liabilities and asset retirement obligations.AROs.


Litigation and Other Contingencies
Other than as discussed in Note 9, thereThere have been no material changes to our contingencies associated with legal proceedings, environmental and other matters since December 31, 2016.2022, other than the Indonesia regulatory matters discussed above in “Indonesia Mining - Regulatory Matters” and as disclosed in Note 8. Refer to Note 12 and “Legal Proceedings” contained in Part I, Item 3. of our annual report on2022 Form 10-K, for the year ended December 31, 2016, as updated inby Note 9 in our quarterly reports on Form 10-Q for the quarters ended March 31, 2017, and June 30, 2017,8, for further information regarding legal proceedingslitigation and other matters.contingencies.


NEW ACCOUNTING STANDARDS


ReferThere were no significant updates to previously reported accounting standards included in Note 121 of our 2022 Form 10-K.

NET DEBT

We believe that net debt provides investors with information related to the performance-based payout framework in our financial policy, which requires us to maintain our net debt at a level not to exceed the net debt target of $3 billion to $4 billion (excluding net project debt for additional smelting capacity in Indonesia). We define net debt as consolidated debt less (i) consolidated cash and cash equivalents and (ii) current restricted cash associated with PT-FI's export proceeds. This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. Our net debt, which may not be comparable to similarly titled measures reported by other companies, follows (in billions):
As of September 30, 2023As of December 31, 2022
Current portion of debt$— a$1.0 
Long-term debt, less current portion9.4 9.6 
Consolidated debt9.4 

10.6 
Less: consolidated cash and cash equivalents5.7 8.1 
Less: current restricted cash associated with PT-FI's export proceedsb
0.5 — 
FCX net debt3.2 2.5 
Less: net debt for Indonesia smelter projectsc
2.4 

1.2 
FCX net debt, excluding Indonesia smelter projects$0.8 $1.3 
a.Rounds to less than $0.1 billion
b.Effective August 1, 2023, and in accordance with a regulation issued by the Indonesia government, 30% of PT-FI’s export proceeds are being temporarily deposited into Indonesia banks for a summaryperiod of recently adopted accounting standards.90 days before withdrawal and have been presented as current restricted cash and cash equivalents in FCX's consolidated balance sheet. As the 90-day holding period is the only restriction on the cash, FCX has included such amount in the calculation of net debt.

c.Includes consolidated debt of $3.0 billion and consolidated cash and cash equivalents of $0.6 billion as of September 30, 2023, and consolidated debt of $3.0 billion and consolidated cash and cash equivalents of $1.8 billion as of December 31, 2022.


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PRODUCT REVENUES AND PRODUCTION COSTS


Mining Product Revenues and Unit Net Cash Cost
UnitWe believe unit net cash costs per pound of copper and molybdenum are measures intended tothat 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 measurethese measures 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 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 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 our 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, net, 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, start-up costs, inventory adjustments,
long-lived asset impairments, idle facility costs, feasibility and optimization study 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, 2023  
(In Millions)By-ProductCo-Product Method
MethodCopper
Molybdenuma
Otherb
Total
Revenues, excluding adjustments$1,435 $1,435 $164 $43 $1,642 
Site production and delivery, before net noncash
    and other costs shown below		1,121 1,008 129 35 1,172 
By-product credits(156)— — — — 
Treatment charges39 37 — 2 39 
Net cash costs1,004 1,045 129 37 1,211 
DD&A110 99 10 1 110 
Metals inventory adjustments4 4 — — 4 
Noncash and other costs, net49 c44 4 1 49 
Total costs1,167 1,192 143 39 1,374 
Other revenue adjustments, primarily for pricing
    on prior period open sales		1 1 — — 1 
Gross profit$269 $244 $21 $4 $269 
Copper sales (millions of recoverable pounds)372 372 
Molybdenum sales (millions of recoverable pounds)a
7 
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments$3.86 $3.86 $22.01 
Site production and delivery, before net noncash
    and other costs shown below		3.01 2.71 17.35 
By-product credits(0.41)— — 
Treatment charges0.10 0.10 — 
Unit net cash costs2.70 2.81 17.35 
DD&A0.30 0.26 1.33 
Metals inventory adjustments0.01 0.01 — 
Noncash and other costs, net0.13 c0.12 0.47 
Total unit costs3.14 3.20 19.15 
Other revenue adjustments, primarily for pricing
    on prior period open sales		— — — 
Gross profit per pound$0.72 $0.66 $2.86 
Reconciliation to Amounts Reported    
 
RevenuesProduction and DeliveryDD&AMetals Inventory Adjustments
Totals presented above$1,642 $1,172 $110 $4 
Treatment charges— 39 — —  
Noncash and other costs, net— 49 — — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		1 — — — 
Eliminations and other14 15 — — 
North America copper mines1,657 1,275 110 4 
Other miningd
5,764 3,859 405 1 
Corporate, other & eliminations(1,597)(1,586)18 — 
As reported in our consolidated financial statements$5,824 $3,548 $533 $5 
            
Three Months Ended September 30, 2017     
(In millions) By-Product Co-Product Method 
  Method Copper 
Molybdenuma
 
Otherb
 Total 
Revenues, excluding adjustments $1,011
 $1,011
 $62
 $19
 $1,092
 
Site production and delivery, before net noncash
    and other costs shown below
 576
 541
 45
 11
 597
 
By-product credits (60) —
 —
 —
 —
 
Treatment charges 39
 38
 —
 1
 39
 
Net cash costs 555
 579
 45
 12
 636
 
DD&A 96
 90
 4
 2
 96
 
Noncash and other costs, net 15
 14
 1
 —
 15
 
Total costs 666
 683
 50
 14
 747
 
Revenue adjustments, primarily for pricing
    on prior period open sales
 7
 7
 —
 —
 7
 
Gross profit $352
 $335
 $12
 $5
 $352
 
            
Copper sales (millions of recoverable pounds) 345
 345
       
Molybdenum sales (millions of recoverable pounds)a
     8
     
            
Gross profit per pound of copper/molybdenum:      
            
Revenues, excluding adjustments $2.92
 $2.92
 $7.59
     
Site production and delivery, before net noncash
    and other costs shown below
 1.67
 1.56
 5.58
     
By-product credits (0.17) —
 —
     
Treatment charges 0.11
 0.11
 —
     
Unit net cash costs 1.61
 1.67
 5.58
     
DD&A

 0.28
 0.27
 0.49
     
Noncash and other costs, net 0.04
 0.04
 0.05
     
Total unit costs 1.93
 1.98
 6.12
     
Revenue adjustments, primarily for pricing
    on prior period open sales
 0.03
 0.03
 —
     
Gross profit per pound $1.02
 $0.97
 $1.47
     
            
Reconciliation to Amounts Reported           
(In millions) Revenues Production and Delivery DD&A     
Totals presented above $1,092
 $597
 $96
     
Treatment charges (8) 31
 —
     
Noncash and other costs, net —
 15
 —
     
Revenue adjustments, primarily for pricing
    on prior period open sales
 7
 —
 —
     
Eliminations and other 14
 15
 —
     
North America copper mines 1,105
 658
 96
     
Other miningc
 3,909
 2,897
 299
     
Corporate, other & eliminations (704) (753) 23
     
As reported in FCX’s consolidated financial statements $4,310
 $2,802
 $418
     
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 mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

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 $28 million ($0.08 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for our other segments as presented in Note 9.

53
Table of Contents

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2022  
(In Millions)By-ProductCo-Product Method
MethodCopper
Molybdenuma
Otherb
Total
Revenues, excluding adjustments$1,293 $1,293 $111 $38 $1,442 
Site production and delivery, before net noncash
    and other costs shown below		1,000 908 104 31 1,043 
By-product credits(106)— — — — 
Treatment charges35 33 — 2 35 
Net cash costs929 941 104 33 1,078 
DD&A99 91 6 2 99 
Metals inventory adjustments3 3 — — 3 
Noncash and other costs, net38 c33 4 1 38 
Total costs1,069 1,068 114 36 1,218 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(20)(20)— — (20)
Gross profit (loss)$204 $205 $(3)$2 $204 
Copper sales (millions of recoverable pounds)361 361 
Molybdenum sales (millions of recoverable pounds)a
7 
Gross profit (loss) per pound of copper/molybdenum:
Revenues, excluding adjustments$3.57 $3.57 $16.75 
Site production and delivery, before net noncash
    and other costs shown below		2.76 2.51 15.60 
By-product credits(0.30)— — 
Treatment charges0.10 0.09 — 
Unit net cash costs2.56 2.60 15.60 
DD&A0.28 0.25 0.95 
Metals inventory adjustments0.01 0.01 — 
Noncash and other costs, net0.10 c0.09 0.60 
Total unit costs2.95 2.95 17.15 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(0.06)(0.06)— 
Gross profit (loss) per pound$0.56 $0.56 $(0.40)
Reconciliation to Amounts Reported     
RevenuesProduction and DeliveryDD&AMetals Inventory Adjustments 
Totals presented above$1,442 $1,043 $99 $3  
Treatment charges(6)29 — —  
Noncash and other costs, net— 38 — —  
Other revenue adjustments, primarily for pricing
    on prior period open sales		(20)— — —  
Eliminations and other32 34 1 —  
North America copper mines1,448 1,144 100 3  
Other miningd
4,941 3,611 390 22 
Corporate, other & eliminations(1,386)(1,389)18 —  
As reported in our consolidated financial statements$5,003 $3,366 $508 $25  
          
Three Months Ended September 30, 2016   
(In millions)By-Product Co-Product Method
 Method Copper 
Molybdenuma
 
Otherb
 Total
Revenues, excluding adjustments$1,002
 $1,002
 $65
 $35
 $1,102
Site production and delivery, before net noncash
    and other costs shown below
659
 610
 48
 25
 683
By-product credits(76) —
 —
 —
 —
Treatment charges45
 42
 —
 3
 45
Net cash costs628
 652
 48
 28
 728
DD&A

127
 117
 6
 4
 127
Noncash and other costs, net26

25
 1
 —
 26
Total costs781
 794
 55
 32
 881
Revenue adjustments, primarily for pricing
    on prior period open sales
(3) (3) —
 —
 (3)
Gross profit$218
 $205
 $10
 $3
 $218
          
Copper sales (millions of recoverable pounds)457
 457
      
Molybdenum sales (millions of recoverable pounds)a
   9
    
          
Gross profit per pound of copper/molybdenum:     
          
Revenues, excluding adjustments$2.19
 $2.19
 $7.39
    
Site production and delivery, before net noncash
     and other costs shown below
1.44
 1.34
 5.51
    
By-product credits(0.17) —
 —
    
Treatment charges0.10
 0.09
 —
    
Unit net cash costs1.37
 1.43
 5.51
    
DD&A

0.28
 0.26
 0.70
    
Noncash and other costs, net0.06

0.05
 0.13
    
Total unit costs1.71
 1.74
 6.34
    
Revenue adjustments, primarily for pricing
    on prior period open sales
—
 —
 —
    
Gross profit per pound$0.48
 $0.45
 $1.05
    
          
Reconciliation to Amounts Reported         
(In millions)Revenues Production and Delivery DD&A    
Totals presented above$1,102
 $683
 $127
    
Treatment charges(26) 19
 —
    
Noncash and other costs, net—
 26
 —
    
Revenue adjustments, primarily for pricing
    on prior period open sales
(3) —
 —
    
Eliminations and other11
 11
 2
    
North America copper mines1,084
 739
 129
    
Other miningc
3,085
 2,306
 268
    
Corporate, other & eliminations(292) (516) 246
    
As reported in FCX’s consolidated financial statements$3,877
 $2,529
 $643
    
a.Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
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 mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

b.Includes gold and silver product revenues and production costs.
c.Includes charges totaling $20 million ($0.06 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for our other segments as presented in Note 9.





54
Table of Contents

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2023
(In Millions)By-ProductCo-Product Method
MethodCopper
Molybdenuma
Otherb
Total
Revenues, excluding adjustments$4,159 $4,159 $576 $129 $4,864 
Site production and delivery, before net noncash
    and other costs shown below		3,097 2,729 417 113 3,259 
By-product credits(543)— — — — 
Treatment charges126 120 — 6 126 
Net cash costs2,680 2,849 417 119 3,385 
DD&A312 276 30 6 312 
Metals inventory adjustments5 5 — — 5 
Noncash and other costs, net175 c152 20 3 175 
Total costs3,172 3,282 467 128 3,877 
Other revenue adjustments, primarily for pricing
    on prior period open sales		13 13 — — 13 
Gross profit$1,000 $890 $109 $1 $1,000 
Copper sales (millions of recoverable pounds)1,048 1,048 
Molybdenum sales (millions of recoverable pounds)a
23 
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments$3.97 $3.97 $24.41 
Site production and delivery, before net noncash
    and other costs shown below		2.96 2.60 17.66 
By-product credits(0.52)— — 
Treatment charges0.12 0.12 — 
Unit net cash costs2.56 2.72 17.66 
DD&A0.30 0.26 1.27 
Metals inventory adjustments0.01 0.01 — 
Noncash and other costs, net0.16 c0.14 0.87 
Total unit costs3.03 3.13 19.80 
Other revenue adjustments, primarily for pricing
    on prior period open sales		0.01 0.01 — 
Gross profit per pound$0.95 $0.85 $4.61 
Reconciliation to Amounts Reported
Metals
ProductionInventory
Revenuesand DeliveryDD&AAdjustments
Totals presented above$4,864 $3,259 $312 $5 
Treatment charges(9)117 — — 
Noncash and other costs, net— 175 — — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		13 — — — 
Eliminations and other49 52 — — 
North America copper mines4,917 3,603 312 5 
Other miningd
16,832 11,294 1,117 1 
Corporate, other & eliminations(4,799)(4,637)50 1 
As reported in our consolidated financial statements$16,950 $10,260 $1,479 $7 
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 $81 million ($0.08 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for our other mining operations as presented in Note 9.




55
      
Nine Months Ended September 30, 2017     
(In millions) By-Product Co-Product Method 
  Method Copper 
Molybdenuma
 
Otherb
 Total 
Revenues, excluding adjustments $3,091
 $3,091
 $184
 $62
 $3,337
 
Site production and delivery, before net noncash           
and other costs shown below 1,794
 1,688
 137
 34
 1,859
 
By-product credits (181) —
 —
 —
 —
 
Treatment charges 121
 116
 —
 5
 121
 
Net cash costs 1,734
 1,804
 137
 39
 1,980
 
DD&A 329
 309
 14
 6
 329
 
Noncash and other costs, net 68
c 
66
 1
 1
 68
 
Total costs 2,131
 2,179
 152
 46
 2,377
 
Revenue adjustments, primarily for pricing           
on prior period open sales 4
 4
 —
 —
 4
 
Gross profit $964
 $916
 $32
 $16
 $964
 
            
Copper sales (millions of recoverable pounds) 1,127
 1,127
       
Molybdenum sales (millions of recoverable pounds)a
     25
     
            
Gross profit per pound of copper/molybdenum:       
            
Revenues, excluding adjustments $2.74
 $2.74
 $7.57
     
Site production and delivery, before net noncash           
and other costs shown below 1.59
 1.50
 5.62
     
By-product credits (0.16) —
 —
     
Treatment charges 0.11
 0.10
 —
     
Unit net cash costs 1.54
 1.60
 5.62
     
DD&A 0.29
 0.27
 0.56
     
Noncash and other costs, net 0.06
c 
0.06
 0.06
     
Total unit costs 1.89
 1.93
 6.24
     
Revenue adjustments, primarily for pricing           
on prior period open sales —
 —
 —
     
Gross profit per pound $0.85
 $0.81
 $1.33
     
            
Reconciliation to Amounts Reported           
(In millions)           
    Production       
  Revenues and Delivery DD&A     
Totals presented above $3,337
 $1,859
 $329
     
Treatment charges (36) 85
 —
     
Noncash and other costs, net —
 68
 —
     
Revenue adjustments, primarily for pricing           
on prior period open sales 4
 —
 —
     
Eliminations and other 43
 44
 1
     
North America copper mines 3,348
 2,056
 330
     
Other miningd
 10,270
 7,765
 850
     
Corporate, other & eliminations (2,256) (2,324) 77
     
As reported in FCX’s consolidated financial statements $11,362
 $7,497
 $1,257
     
 
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 $21 million ($0.02 per pound of copper) for asset impairment charges at Morenci.
d.Represents the combined total for our other mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.
Table of Contents

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2022
(In Millions)By-ProductCo-Product Method
MethodCopper
Molybdenuma
Otherb
Total
Revenues, excluding adjustments$4,720 

$4,720 $393 $95 $5,208 
Site production and delivery, before net noncash
    and other costs shown below		2,882 2,643 283 70 2,996 
By-product credits(374)— — — — 
Treatment charges112 109 — 3 112 
Net cash costs2,620 2,752 283 73 3,108 
DD&A306 282 19 5 306 
Metals inventory adjustments10 9 1 — 10 
Noncash and other costs, net104 c94 8 2 104 
Total costs3,040 3,137 311 80 3,528 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(13)(13)— — (13)
Gross profit$1,667 $1,570 $82 $15 $1,667 
Copper sales (millions of recoverable pounds)1,131 1,131 
Molybdenum sales (millions of recoverable pounds)a
22 
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments$4.17 

$4.17 $17.87 
Site production and delivery, before net noncash
    and other costs shown below		2.54 2.33 12.87 
By-product credits(0.33)— — 
Treatment charges0.10 0.10 — 
Unit net cash costs2.31 2.43 12.87 
DD&A0.27 0.25 0.88 
Metals inventory adjustments0.01 0.01 — 
Noncash and other costs, net0.09 c0.08 0.40 
Total unit costs2.68 2.77 14.15 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(0.01)(0.01)— 
Gross profit per pound$1.48 $1.39 $3.72 
Reconciliation to Amounts Reported
Metals
ProductionInventory
Revenuesand DeliveryDD&AAdjustments
Totals presented above$5,208 $2,996 $306 $10 
Treatment charges(15)97 — — 
Noncash and other costs, net— 104 — — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(13)— — — 
Eliminations and other74 82 1 — 
North America copper mines5,254 3,279 307 10 
Other miningd
16,649 11,072 1,147 33 
Corporate, other & eliminations(4,881)(4,832)50 — 
As reported in our consolidated financial statements$17,022 $9,519 $1,504 $43 
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 $49 million ($0.04 per pound of copper) for feasibility and optimization studies.
d.Represents the combined total for our other mining operations as presented in Note 9.



56
      
Nine Months Ended September 30, 2016     
(In millions) By-Product Co-Product Method 
  Method Copper 
Molybdenuma
 
Otherb
 Total 
Revenues, excluding adjustments $3,092
 $3,092
 $155
 $76
 $3,323
 
Site production and delivery, before net noncash           
and other costs shown below 2,008
 1,904
 121
 46
 2,071
 
By-product credits (168) —
 —
 —
 —
 
Treatment charges 148
 142
 —
 6
 148
 
Net cash costs 1,988
 2,046
 121
 52
 2,219
 
DD&A 405
 381
 15
 9
 405
 
Noncash and other costs, net 74
 72
 1
 1
 74
 
Total costs 2,467
 2,499
 137
 62
 2,698
 
Revenue adjustments, primarily for pricing           
on prior period open sales (1) (1) —
 —
 (1) 
Gross profit $624
 $592
 $18
 $14
 $624
 
            
Copper sales (millions of recoverable pounds) 1,421
 1,421
       
Molybdenum sales (millions of recoverable pounds)a
     25
     
            
Gross profit per pound of copper/molybdenum:       
            
Revenues, excluding adjustments $2.18
 $2.18
 $6.24
     
Site production and delivery, before net noncash           
and other costs shown below 1.41
 1.34
 4.86
     
By-product credits (0.12) —
 —
     
Treatment charges 0.11
 0.10
 —
     
Unit net cash costs 1.40
 1.44
 4.86
     
DD&A 0.29
 0.27
 0.61
     
Noncash and other costs, net 0.05
 0.05
 0.06
     
Total unit costs 1.74
 1.76
 5.53
     
Revenue adjustments, primarily for pricing           
on prior period open sales —
 —
 —
     
Gross profit per pound $0.44
 $0.42
 $0.71
     
            
Reconciliation to Amounts Reported           
(In millions)   Production       
  Revenues and Delivery DD&A     
Totals presented above $3,323
 $2,071
 $405
     
Treatment charges (74) 74
 —
     
Noncash and other costs, net —
 74
 —
     
Revenue adjustments, primarily for pricing           
on prior period open sales (1) —
 —
     
Eliminations and other 32
 34
 2
     
North America copper mines 3,280
 2,253
 407
     
Other miningc
 8,433
 6,722
 766
     
Corporate, other & eliminations (1,260) (991) 764
     
As reported in FCX’s consolidated financial statements $10,453
 $7,984
 $1,937
     
 
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 mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

Table of Contents

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2023
(In Millions)By-ProductCo-Product Method
MethodCopper
Othera
Total
Revenues, excluding adjustments$1,159 $1,159 $145 $1,304 
Site production and delivery, before net noncash
    and other costs shown below		790 712 93 805 
By-product credits(130)— — — 
Treatment charges61 61 — 61 
Royalty on metals2 2 — 2 
Net cash costs723 775 93 868 
DD&A110 98 12 110 
Metals inventory adjustments1 1 — 1 
Noncash and other costs, net21 b20 1 21 
Total costs855 894 106 1,000 
Other revenue adjustments, primarily for pricing
    on prior period open sales		2 2 — 2 
Gross profit$306 $267 $39 $306 
Copper sales (millions of recoverable pounds)307 307 
Gross profit per pound of copper:
Revenues, excluding adjustments$3.77 $3.77 
Site production and delivery, before net noncash
    and other costs shown below		2.57 

2.32 
By-product credits(0.42)— 
Treatment charges0.19 0.19 
Royalty on metals0.01 0.01 
Unit net cash costs2.35 2.52 
DD&A0.36 0.32 
Metals inventory adjustments— — 
Noncash and other costs, net0.07 b0.07 
Total unit costs2.78 2.91 
Other revenue adjustments, primarily for pricing
    on prior period open sales		0.01 0.01 
Gross profit per pound$1.00 $0.87 
Reconciliation to Amounts ReportedMetals
ProductionInventory
Revenuesand DeliveryDD&AAdjustments
Totals presented above$1,304 $805 $110 $1 
Treatment charges(61)— — — 
Royalty on metals(2)— — — 
Noncash and other costs, net— 21 — — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		2 — — — 
Eliminations and other1 — 1 — 
South America mining1,244 826 111 1 
Other miningc
6,177 4,308 404 4 
Corporate, other & eliminations(1,597)(1,586)18 — 
As reported in our consolidated financial statements$5,824 $3,548 $533 $5 
a.Includes silver sales of 1.1 million ounces ($23.31 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 $11 million ($0.03 per pound of copper) for feasibility studies.
c.Represents the combined total for our other segments as presented in Note 9.

57
 
Three Months Ended September 30, 2017    
(In millions) By-Product Co-Product Method
  Method Copper 
Othera
 Total
Revenues, excluding adjustments $965
 $965
 $75
 $1,040
Site production and delivery, before net noncash        
and other costs shown below 524
 490
 46
 536
By-product credits (63) —
 —
 —
Treatment charges 73
 73
 —
 73
Royalty on metals 2
 2
 —
 2
Net cash costs 536
 565
 46
 611
DD&A 134
 125
 9
 134
Noncash and other costs, net 225
b 
207
 18
 225
Total costs 895
 897
 73
 970
Revenue adjustments, primarily for pricing        
on prior period open sales 59
 59
 —
 59
Gross profit $129
 $127
 $2
 $129
         
Copper sales (millions of recoverable pounds) 327
 327
    
         
Gross profit per pound of copper:    
         
Revenues, excluding adjustments $2.95
 $2.95
    
Site production and delivery, before net noncash        
and other costs shown below 1.60
 1.50
    
By-product credits (0.19) —
    
Treatment charges 0.22
 0.22
    
Royalty on metals 0.01
 0.01
    
Unit net cash costs 1.64
 1.73
    
DD&A 0.41
 0.38
    
Noncash and other costs, net 0.69
b 
0.63
    
Total unit costs 2.74
 2.74
    
Revenue adjustments, primarily for pricing        
on prior period open sales 0.18
 0.18
    
Gross profit per pound $0.39
 $0.39
    
         
Reconciliation to Amounts Reported        
(In millions)        
    Production    
  Revenues and Delivery DD&A  
Totals presented above $1,040
 $536
 $134
  
Treatment charges (73) —
 —
  
Royalty on metals (2) —
 —
  
Noncash and other costs, net —
 225
 —
  
Revenue adjustments, primarily for pricing        
on prior period open sales 59
 —
 —
  
Eliminations and other (1) (2) —
  
South America mining 1,023
 759
 134
  
Other miningc
 3,991
 2,796
 261
  
Corporate, other & eliminations (704) (753) 23
  
As reported in FCX’s consolidated financial statements $4,310
 $2,802
 $418
  
         
a.Includes silver sales of 1.0 million ounces ($16.15 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 $216 million ($0.66 per pound of copper) associated with disputed Cerro Verde royalties for prior years.
c.Represents the combined total for our other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.
Table of Contents

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2022
(In Millions)By-ProductCo-Product Method
MethodCopper
Othera
Total
Revenues, excluding adjustments$1,017 $1,017 $62 $1,079 
Site production and delivery, before net noncash
    and other costs shown below		761 723 52 775 
By-product credits(48)— — — 
Treatment charges40 40 — 40 
Royalty on metals2 2 — 2 
Net cash costs755 765 52 817 
DD&A99 93 6 99 
Metals inventory adjustments22 22 — 22 
Noncash and other costs, net25 23 2 25 
Total costs901 903 60 963 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(73)(73)— (73)
Gross profit$43 $41 $2 $43 
Copper sales (millions of recoverable pounds)293 293 
Gross profit per pound of copper:
Revenues, excluding adjustments$3.47 $3.47 
Site production and delivery, before net noncash
    and other costs shown below		2.60 2.47 
By-product credits(0.16)— 
Treatment charges0.13 0.14 
Royalty on metals0.01 — 
Unit net cash costs2.58 2.61 
DD&A0.34 0.32 
Metals inventory adjustments0.07 0.07 
Noncash and other costs, net0.09 0.08 
Total unit costs3.08 3.08 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(0.25)(0.25)
Gross profit per pound$0.14 $0.14 
Reconciliation to Amounts ReportedMetals
ProductionInventory
Revenuesand DeliveryDD&AAdjustments
Totals presented above$1,079 $775 $99 $22 
Treatment charges(40)— — — 
Royalty on metals(2)— — — 
Noncash and other costs, net— 25 — — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(73)— — — 
Eliminations and other— — (1)— 
South America mining964 800 98 22 
Other miningb
5,425 3,955 392 3 
Corporate, other & eliminations(1,386)(1,389)18 — 
As reported in our consolidated financial statements$5,003 $3,366 $508 $25 
      
Three Months Ended September 30, 2016     
(In millions) By-Product Co-Product Method 
  Method Copper 
Othera
 Total 
Revenues, excluding adjustments $709
 $709
 $50
 $759
 
Site production and delivery, before net noncash         
and other costs shown below 409
 386
 35
 421
 
By-product credits (38) —
 —
 —
 
Treatment charges 79
 79
 —
 79
 
Royalty on metals 2
 2
 —
 2
 
Net cash costs 452
 467
 35
 502
 
DD&A 134
 126
 8
 134
 
Noncash and other costs, net 4
 3
 1
 4
 
Total costs 590
 596
 44
 640
 
Revenue adjustments, primarily for pricing         
on prior period open sales (7) (7) —
 (7) 
Gross profit $112
 $106
 $6
 $112
 
          
Copper sales (millions of recoverable pounds) 323
 323
     
          
Gross profit per pound of copper:     
          
Revenues, excluding adjustments $2.19
 $2.19
     
Site production and delivery, before net noncash         
and other costs shown below 1.27
 1.20
     
By-product credits (0.12) —
     
Treatment charges 0.24
 0.24
     
Royalty on metals 0.01
 —
     
Unit net cash costs 1.40
 1.44
     
DD&A 0.41
 0.39
     
Noncash and other costs, net 0.01
 0.01
     
Total unit costs 1.82
 1.84
     
Revenue adjustments, primarily for pricing         
on prior period open sales (0.02) (0.02)     
Gross profit per pound $0.35
 $0.33
     
          
Reconciliation to Amounts Reported         
(In millions)   Production     
  Revenues and Delivery DD&A   
Totals presented above $759
 $421
 $134
   
Treatment charges (79) —
 —
   
Royalty on metals (2) —
 —
   
Noncash and other costs, net —
 4
 —
   
Revenue adjustments, primarily for pricing         
on prior period open sales (7) —
 —
   
Eliminations and other —
 (1) —
   
South America mining 671
 424
 134
   
Other miningb
 3,498
 2,621
 263
   
Corporate, other & eliminations (292) (516) 246
   
As reported in FCX’s consolidated financial statements $3,877
 $2,529
 $643
   
          
a.Includes silver sales of 952 thousand ounces ($21.72 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 mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

a.Includes silver sales of 1.1 million ounces ($17.11 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.







58
Table of Contents

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2023
(In Millions)By-ProductCo-Product Method
MethodCopper
Othera
Total
Revenues, excluding adjustments$3,492 $3,492 $447 $3,939 
Site production and delivery, before net noncash
    and other costs shown below		2,297 2,074 272 2,346 
By-product credits(401)— — — 
Treatment charges179 179 — 179 
Royalty on metals6 5 1 6 
Net cash costs2,081 2,258 273 2,531 
DD&A350 310 40 350 
Metals inventory adjustments1 1 — 1 
Noncash and other costs, net71 b66 5 71 
Total costs2,503 2,635 318 2,953 
Other revenue adjustments, primarily for pricing
    on prior period open sales		71 71 3 74 
Gross profit$1,060 $928 $132 $1,060 
Copper sales (millions of recoverable pounds)913 913 
Gross profit per pound of copper:
Revenues, excluding adjustments$3.82 $3.82 
Site production and delivery, before net noncash
    and other costs shown below		2.51 2.26 
By-product credits(0.44)— 
Treatment charges0.20 0.20 
Royalty on metals0.01 0.01 
Unit net cash costs2.28 2.47 
DD&A0.38 0.34 
Metals inventory adjustments— — 
Noncash and other costs, net0.08 b0.07 
Total unit costs2.74 2.88 
Other revenue adjustments, primarily for pricing
    on prior period open sales		0.08 0.08 
Gross profit per pound$1.16 $1.02 
Reconciliation to Amounts Reported
Metals
ProductionInventory
Revenuesand DeliveryDD&AAdjustments
Totals presented above$3,939 $2,346 $350 $1 
Treatment charges(179)— — — 
Royalty on metals(6)— — — 
Noncash and other costs, net— 71 — — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		74 — — — 
Eliminations and other— (1)— — 
South America mining3,828 2,416 350 1 
Other miningc
17,921 12,481 1,079 5 
Corporate, other & eliminations(4,799)(4,637)50 1 
As reported in our consolidated financial statements$16,950 $10,260 $1,479 $7 
     
Nine Months Ended September 30, 2017    
(In millions) By-Product Co-Product Method
  Method Copper 
Othera
 Total
Revenues, excluding adjustments $2,605
 $2,605
 $190
 $2,795
Site production and delivery, before net noncash        
and other costs shown below 1,429
 1,340
 123
 1,463
By-product credits (156) —
 —
 —
Treatment charges 204
 204
 —
 204
Royalty on metals 6
 5
 1
 6
Net cash costs 1,483
 1,549
 124
 1,673
DD&A 392
 365
 27
 392
Noncash and other costs, net 234
b 
217
 17
 234
Total costs 2,109
 2,131
 168
 2,299
Revenue adjustments, primarily for pricing        
on prior period open sales 40
 40
 —
 40
Gross profit $536
 $514
 $22
 $536
         
Copper sales (millions of recoverable pounds) 923
 923
    
         
Gross profit per pound of copper:    
         
Revenues, excluding adjustments $2.82
 $2.82
    
Site production and delivery, before net noncash        
and other costs shown below 1.55
 1.45
    
By-product credits (0.17) —
    
Treatment charges 0.22
 0.22
    
Royalty on metals 0.01
 0.01
    
Unit net cash costs 1.61
 1.68
    
DD&A 0.42
 0.40
    
Noncash and other costs, net 0.25
b 
0.23
    
Total unit costs 2.28
 2.31
    
Revenue adjustments, primarily for pricing        
on prior period open sales 0.04
 0.04
    
Gross profit per pound $0.58
 $0.55
    
         
Reconciliation to Amounts Reported        
(In millions)   Production    
  Revenues and Delivery DD&A  
Totals presented above $2,795
 $1,463
 $392
  
Treatment charges (204) —
 —
  
Royalty on metals (6) —
 —
  
Noncash and other costs, net —
 234
 —
  
Revenue adjustments, primarily for pricing        
on prior period open sales 40
 —
 —
  
Eliminations and other 1
 (2) —
  
South America mining 2,626
 1,695
 392
  
Other miningc
—
10,992
 8,126
 788
  
Corporate, other & eliminations—
(2,256) (2,324) 77
  
As reported in FCX’s consolidated financial statements $11,362
 $7,497
 $1,257
  
         
a.Includes silver sales of 3.2 million ounces ($23.51 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
a.Includes silver sales of 2.8 million ounces ($16.66 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 $216 million ($0.23 per pound of copper) associated with disputed Cerro Verde royalties for prior years.
c.Represents the combined total for our other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

b.Includes charges totaling $30 million ($0.03 per pound of copper) for feasibility studies.
c.Represents the combined total for our other mining operations as presented in Note 9.



59
Table of Contents

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2022
(In Millions)By-ProductCo-Product Method
MethodCopper
Othera
Total
Revenues, excluding adjustments$3,149 $3,149 $302 $3,451 
Site production and delivery, before net noncash
    and other costs shown below		2,114 1,968 188 2,156 
By-product credits(260)— — — 
Treatment charges124 124 — 124 
Royalty on metals7 6 1 7 
Net cash costs1,985 2,098 189 2,287 
DD&A297 272 25 297 
Metals inventory adjustments32 31 1 32 
Noncash and other costs, net60 57 3 60 
Total costs2,374 2,458 218 2,676 
Other revenue adjustments, primarily for pricing
    on prior period open sales		35 35 — 35 
Gross profit$810 $726 $84 $810 
Copper sales (millions of recoverable pounds)845 845 
Gross profit per pound of copper:
Revenues, excluding adjustments$3.73 $3.73 
Site production and delivery, before net noncash
    and other costs shown below		2.50 2.33 
By-product credits(0.31)— 
Treatment charges0.15 0.15 
Royalty on metals0.01 0.01 
Unit net cash costs2.35 2.49 
DD&A0.35 0.32 
Metals inventory adjustments0.04 0.04 
Noncash and other costs, net0.07 0.06 
Total unit costs2.81 2.91 
Other revenue adjustments, primarily for pricing
    on prior period open sales		0.04 0.04 
Gross profit per pound$0.96 $0.86 
Reconciliation to Amounts Reported
Metals
ProductionInventory
Revenuesand DeliveryDD&AAdjustments
Totals presented above$3,451 $2,156 $297 $32 
Treatment charges(124)— — — 
Royalty on metals(7)— — — 
Noncash and other costs, net— 60 — — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		35 — — — 
Eliminations and other(1)(4)— 1 
South America mining3,354 2,212 297 33 
Other miningb
18,549 12,139 1,157 10 
Corporate, other & eliminations(4,881)(4,832)50 — 
As reported in our consolidated financial statements$17,022 $9,519 $1,504 $43 
a.Includes silver sales of 3.2 million ounces ($21.24 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 mining operations as presented in Note 9.

60
      
Nine Months Ended September 30, 2016     
(In millions) By-Product Co-Product Method 
  Method Copper 
Othera
 Total 
Revenues, excluding adjustments $2,115
 $2,115
 $129
 $2,244
 
Site production and delivery, before net noncash         
and other costs shown below 1,199
 1,140
 88
 1,228
 
By-product credits (100) —
 —
 —
 
Treatment charges 230
 230
 —
 230
 
Royalty on metals 5
 5
 —
 5
 
Net cash costs 1,334
 1,375
 88
 1,463
 
DD&A 401
 379
 22
 401
 
Noncash and other costs, net 15
 14
 1
 15
 
Total costs 1,750
 1,768
 111
 1,879
 
Revenue adjustments, primarily for pricing         
on prior period open sales 9
 9
 —
 9
 
Gross profit $374
 $356
 $18
 $374
 
          
Copper sales (millions of recoverable pounds) 973
 973
     
          
Gross profit per pound of copper:     
          
Revenues, excluding adjustments $2.17
 $2.17
     
Site production and delivery, before net noncash         
and other costs shown below 1.23
 1.17
     
By-product credits (0.10) —
     
Treatment charges 0.24
 0.24
     
Royalty on metals —
 —
     
Unit net cash costs 1.37
 1.41
     
DD&A 0.41
 0.39
     
Noncash and other costs, net 0.02
 0.02
     
Total unit costs 1.80
 1.82
     
Revenue adjustments, primarily for pricing         
on prior period open sales 0.01
 0.01
     
Gross profit per pound $0.38
 $0.36
     
          
Reconciliation to Amounts Reported         
(In millions)   Production     
  Revenues and Delivery DD&A   
Totals presented above $2,244
 $1,228
 $401
   
Treatment charges (230) —
 —
   
Royalty on metals (5) —
 —
   
Noncash and other costs, net —
 15
 —
   
Revenue adjustments, primarily for pricing         
on prior period open sales 9
 —
 —
   
Eliminations and other 1
 (3) 1
   
South America mining 2,019
 1,240
 402
   
Other miningb
 9,694
 7,735

771
   
Corporate, other & eliminations (1,260) (991) 764
   
As reported in FCX’s consolidated financial statements $10,453
 $7,984
 $1,937
   
          
a.Includes silver sales of 2.8 million ounces ($17.99 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 mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.


Table of Contents

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
     
Three Months Ended September 30, 2017    
(In millions) By-Product Co-Product Method
  Method Copper Gold 
Silvera
 Total
Revenues, excluding adjustments $762
 $762
 $453
 $11
 $1,226
Site production and delivery, before net noncash          
and other costs shown below 364
 226
 134
 4
 364
Gold and silver credits (466) —
 —
 —
 —
Treatment charges 71
 44
 26
 1
 71
Export duties 21
 13
 8
 —
 21
Royalty on metals 43
 26
 17
 —
 43
Net cash costs 33
 309
 185
 5
 499
DD&A 136
 85
 50
 1
 136
Noncash and other costs, net 24
b 
15
 9
 —
 24
Total costs 193
 409
 244
 6
 659
Revenue adjustments, primarily for pricing on          
prior period open sales 28
 28
 2
 —
 30
PT Smelting intercompany loss (18) (11) (7) —
 (18)
Gross profit $579
 $370
 $204
 $5
 $579
           
Copper sales (millions of recoverable pounds) 258
 258
      
Gold sales (thousands of recoverable ounces)     352
    
           
Gross profit per pound of copper/per ounce of gold:      
           
Revenues, excluding adjustments $2.95
 $2.95
 $1,290
    
Site production and delivery, before net noncash          
and other costs shown below 1.41
 0.87
 383
    
Gold and silver credits (1.80) —
 —
    
Treatment charges 0.27
 0.17
 74
    
Export duties 0.08
 0.05
 22
    
Royalty on metals 0.17
 0.10
 48
    
Unit net cash costs 0.13
 1.19
 527
    
DD&A 0.53
 0.33
 143
    
Noncash and other costs, net 0.09
b 
0.06
 25
    
Total unit costs 0.75
 1.58
 695
    
Revenue adjustments, primarily for pricing on          
prior period open sales 0.11
 0.11
 4
    
PT Smelting intercompany loss (0.07) (0.04) (19)    
Gross profit per pound/ounce $2.24
 $1.44
 $580
    
           
Reconciliation to Amounts Reported          
(In millions)   Production      
  Revenues and Delivery DD&A    
Totals presented above $1,226
 $364
 $136
    
Treatment charges (71) —
 —
    
Export duties (21) —
 —
    
Royalty on metals (43) —
 —
    
Noncash and other costs, net —
 24
 —
    
Revenue adjustments, primarily for pricing on          
prior period open sales 30
 —
 —
    
PT Smelting intercompany loss —
 18
 —
    
Indonesia mining 1,121
 406
 136
    
Other miningc
 3,893
 3,149
 259
    
Corporate, other & eliminations (704) (753) 23
    
As reported in FCX’s consolidated financial statements $4,310
 $2,802
 $418
    
           
a.Includes silver sales of 666 thousand ounces ($16.64 per ounce average realized price).
b.Includes $9 million ($0.03 per pound of copper) of costs charged directly to production and delivery costs as a result of workforce reductions.
c.Represents the combined total for our other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.
Table of Contents

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
 
Three Months Ended September 30, 2016     
(In millions) By-Product Co-Product Method 
  Method Copper Gold 
Silvera
 Total 
Revenues, excluding adjustments $729
 $729
 $408
 $18
 $1,155
 
Site production and delivery, before net noncash           
and other costs shown below 453
 286
 160
 7
 453
 
Gold and silver credits (427) —
 —
 —
 —
 
Treatment charges 90
 57
 32
 1
 90
 
Export duties 34
 21
 12
 1
 34
 
Royalty on metals 40
 24
 15
 1
 40
 
Net cash costs 190
 388
 219
 10
 617
 
DD&A 110
 69
 39
 2
 110
 
Noncash and other costs, net 16
b 
11
 5
 —
 16
 
Total costs 316
 468
 263
 12
 743
 
Revenue adjustments, primarily for pricing on           
prior period open sales (6) (6) —
 1
 (5) 
PT Smelting intercompany loss (9) (6) (3) —
 (9) 
Gross profit $398
 $249
 $142
 $7
 $398
 
            
Copper sales (millions of recoverable pounds) 332
 332
       
Gold sales (thousands of recoverable ounces)     307
     
            
Gross profit per pound of copper/per ounce of gold:       
            
Revenues, excluding adjustments $2.20
 $2.20
 $1,327
     
Site production and delivery, before net noncash           
and other costs shown below 1.37
 0.86
 520
     
Gold and silver credits (1.29) —
 —
     
Treatment charges 0.27
 0.17
 104
     
Export duties 0.10
 0.07
 39
     
Royalty on metals 0.12
 0.07
 50
     
Unit net cash costs 0.57
 1.17
 713
     
DD&A 0.33
 0.21
 125
     
Noncash and other costs, net 0.05
b 
0.03
 19
     
Total unit costs 0.95
 1.41
 857
     
Revenue adjustments, primarily for pricing on           
prior period open sales (0.02) (0.02) 1
     
PT Smelting intercompany loss (0.03) (0.02) (10)     
Gross profit per pound/ounce $1.20
 $0.75
 $461
     
            
Reconciliation to Amounts Reported           
(In millions)   Production       
  Revenues and Delivery DD&A     
Totals presented above $1,155
 $453
 $110
     
Treatment charges (90) —
 —
     
Export duties (34) —
 —
     
Royalty on metals (40) —
 —
     
Noncash and other costs, net —
 16
 —
     
Revenue adjustments, primarily for pricing on           
prior period open sales (5) —
 —
     
PT Smelting intercompany loss —
 9
 —
     
Indonesia mining 986
 478
 110
     
Other miningc
 3,183
 2,567

287
     
Corporate, other & eliminations (292) (516) 246
     
As reported in FCX’s consolidated financial statements $3,877
 $2,529
 $643
     
            
a.Includes silver sales of 928 thousand ounces ($18.97 per ounce average realized price).
b.Includes asset retirement charges of $17 million ($0.05 per pound of copper).
c.Represents the combined total for our other mining operations, including North America copper mines, South America mining, Molybdenum    mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

Table of Contents

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2023
(In Millions)Co-Product Method
By-Product MethodCopperGold
Silver & Othera
Total
Revenues, excluding adjustments$1,621 $1,621 $749 $32 $2,402 
Site production and delivery, before net noncash
    and other costs shown below		612 413 191 8 612 
Gold, silver and other by-product credits(785)— — — — 
Treatment charges138 93 43 2 138 
Export duties147 99 46 2 147 
Royalty on metals78 52 25 1 78 
Net cash costs190 657 305 13 975 
DD&A271 183 84 4 271 
Noncash and other costs, net8 b6 2 — 8 
Total costs469 846 391 17 1,254 
Other revenue adjustments, primarily for pricing
    on prior period open sales		1 1 3 1 5 
Gross profit$1,153 $776 $361 $16 $1,153 
Copper sales (millions of recoverable pounds)430 430 
Gold sales (thousands of recoverable ounces)395 
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments$3.77 $3.77 $1,898 
Site production and delivery, before net noncash
    and other costs shown below		1.42 0.96 484 
Gold, silver and other by-product credits(1.83)— — 
Treatment charges0.32 0.22 109 
Export duties0.34 0.23 116 
Royalty on metals0.19 0.12 64 
Unit net cash costs0.44 1.53 773 
DD&A0.63 0.43 214 
Noncash and other costs, net0.02 b0.01 6 
Total unit costs1.09 1.97 993 
Other revenue adjustments, primarily for pricing
    on prior period open sales		— — 8 
Gross profit per pound/ounce$2.68 $1.80 $913 
Reconciliation to Amounts Reported
Production
Revenuesand DeliveryDD&A
Totals presented above$2,402 $612 $271 
Treatment charges(87)51 

— 
Export duties(147)— — 
Royalty on metals(78)— — 
Noncash and other costs, net— 8 — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		5 — — 
Eliminations and other— (4)— 
Indonesia mining2,095 667 271 
Other miningc
5,326 4,467 244 
Corporate, other & eliminations(1,597)(1,586)18 
As reported in our consolidated financial statements$5,824 $3,548 $533 
     
Nine Months Ended September 30, 2017    
(In millions) By-Product Co-Product Method
  Method Copper Gold 
Silvera
 Total
Revenues, excluding adjustments $1,772
 $1,772
 $1,206
 $32
 $3,010
Site production and delivery, before net noncash          
and other costs shown below 1,076
 634
 431
 11
 1,076
Gold and silver credits (1,247) —
 —
 —
 —
Treatment charges 170
 100
 68
 2
 170
Export duties 62
 36
 25
 1
 62
Royalty on metals 106
 60
 45
 1
 106
Net cash costs 167
 830
 569
 15
 1,414
DD&A 372
 219
 149
 4
 372
Noncash and other costs, net 140
b 
82
 56
 2
 140
Total costs 679
 1,131
 774
 21
 1,926
Revenue adjustments, primarily for pricing on          
prior period open sales 39
 39
 9
 —
 48
PT Smelting intercompany loss (17) (10) (7) —
 (17)
Gross profit $1,115
 $670
 $434
 $11
 $1,115
           
Copper sales (millions of recoverable pounds) 630
 630
      
Gold sales (thousands of recoverable ounces)     956
    
           
Gross profit per pound of copper/per ounce of gold:      
           
Revenues, excluding adjustments $2.81
 $2.81
 $1,261
    
Site production and delivery, before net noncash          
and other costs shown below 1.71
 1.01
 451
    
Gold and silver credits (1.98) —
 —
    
Treatment charges 0.27
 0.16
 71
    
Export duties 0.10
 0.06
 26
    
Royalty on metals 0.16
 0.09
 47
    
Unit net cash costs 0.26
 1.32
 595
    
DD&A 0.59
 0.35
 156
    
Noncash and other costs, net 0.22
b 
0.13
 58
    
Total unit costs 1.07
 1.80
 809
    
Revenue adjustments, primarily for pricing on          
prior period open sales 0.06
 0.06
 9
    
PT Smelting intercompany loss (0.03) (0.01) (7)    
Gross profit per pound/ounce $1.77
 $1.06
 $454
    
           
Reconciliation to Amounts Reported          
(In millions)   Production      
  Revenues and Delivery DD&A    
Totals presented above $3,010
 $1,076
 $372
    
Treatment charges (170) —
 —
    
Export duties (62) —
 —
    
Royalty on metals (106) —
 —
    
Noncash and other costs, net —
 140
 —
    
Revenue adjustments, primarily for pricing on          
prior period open sales 48
 —
 —
    
PT Smelting intercompany loss —
 17
 —
    
Indonesia mining 2,720
 1,233
 372
    
Other miningc
 10,898
 8,588
 808
    
Corporate, other & eliminations (2,256) (2,324) 77
    
As reported in FCX’s consolidated financial statements $11,362
 $7,497
 $1,257
    
           
a.Includes silver sales of 1.9 million ounces ($16.70 per ounce average realized price).
b.Includes $112 million ($0.18 per pound of copper) of costs charged directly to production and delivery costs as a result of workforce reductions.
c.Represents the combined total for our other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

a.Includes silver sales of 1.3 million ounces ($22.96 per ounce average realized price).

b.Includes charges totaling $3 million ($0.01 per pound of copper) for feasibility and optimization studies.

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



61
Table of Contents

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2022
(In Millions)Co-Product Method
By-Product MethodCopperGold
Silver & Othera
Total
Revenues, excluding adjustments$1,400 $1,400 $802 $30 $2,232 
Site production and delivery, before net noncash
    and other credits shown below		735 461 264 10 735 
Gold, silver and other by-product credits(814)— — — — 
Treatment charges95 60 34 1 95 
Export duties80 50 29 1 80 
Royalty on metals81 48 32 1 81 
Net cash costs177 619 359 13 991 
DD&A265 167 95 3 265 
Noncash and other credits, net(10)b(7)(3)— (10)
Total costs432 779 451 16 1,246 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(158)(158)(17)(1)(176)
PT Smelting intercompany profit60 38 22 — 60 
Gross profit$870 $501 $356 $13 $870 
Copper sales (millions of recoverable pounds)406 406 
Gold sales (thousands of recoverable ounces)476 
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments$3.45 $3.45 $1,683 
Site production and delivery, before net noncash
    and other credits shown below		1.81 

1.13 553 
Gold, silver and other by-product credits(2.00)— — 
Treatment charges0.23 0.15 72 
Export duties0.20 0.12 61 
Royalty on metals0.20 0.12 67 
Unit net cash costs0.44 1.52 753 
DD&A0.65 0.41 200 
Noncash and other credits, net(0.02)b(0.01)(7)
Total unit costs1.07 1.92 946 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(0.39)(0.39)(36)
PT Smelting intercompany profit0.15 0.09 45 
Gross profit per pound/ounce$2.14 $1.23 $746 
Reconciliation to Amounts Reported
Production
Revenuesand DeliveryDD&A
Totals presented above$2,232 $735 $265 
Treatment charges(95)— — 
Export duties(80)— — 
Royalty on metals(81)— — 
Noncash and other credits, net(2)(12)— 
Other revenue adjustments, primarily for pricing
    on prior period open sales		(176)— — 
PT Smelting intercompany profit— (60)— 
Indonesia mining1,798 663 265 
Other miningc
4,591 4,092 225 
Corporate, other & eliminations(1,386)(1,389)18 
As reported in our consolidated financial statements$5,003 $3,366 $508 
a.Includes silver sales of 1.6 million ounces ($18.58 per ounce average realized price).
b.Includes net credits totaling $21 million ($0.05 per pound of copper) associated with historical tax audits.
c.Represents the combined total for our other segments as presented in Note 9.



62
      
Nine Months Ended September 30, 2016     
(In millions) By-Product Co-Product Method 
  Method Copper Gold 
Silvera
 Total 
Revenues, excluding adjustments $1,525
 $1,525
 $844
 $36
 $2,405
 
Site production and delivery, before net noncash           
and other costs shown below 1,190
 754
 418
 18
 1,190
 
Gold and silver credits (897) —
 —
 —
 —
 
Treatment charges 202
 128
 71
 3
 202
 
Export duties 63
 40
 22
 1
 63
 
Royalty on metals 84
 51
 32
 1
 84
 
Net cash costs 642
 973
 543
 23
 1,539
 
DD&A 284
 180
 100
 4
 284
 
Noncash and other costs, net 31
b 
20
 10
 1
 31
 
Total costs 957
 1,173
 653
 28
 1,854
 
Revenue adjustments, primarily for pricing on           
prior period open sales —
 —
 17
 —
 17
 
PT Smelting intercompany loss (7) (5) (2) —
 (7) 
Gross profit $561
 $347
 $206
 $8
 $561
 
            
Copper sales (millions of recoverable pounds) 702
 702
       
Gold sales (thousands of recoverable ounces)     653
     
            
Gross profit per pound of copper/per ounce of gold:       
            
Revenues, excluding adjustments $2.17
 $2.17
 $1,292
     
Site production and delivery, before net noncash           
and other costs shown below 1.70
 1.08
 639
     
Gold and silver credits (1.28) —
 —
     
Treatment charges 0.29
 0.18
 109
     
Export duties 0.09
 0.06
 34
     
Royalty on metals 0.12
 0.07
 48
     
Unit net cash costs 0.92
 1.39
 830
     
DD&A 0.40
 0.25
 152
     
Noncash and other costs, net 0.04
b 
0.03
 16
     
Total unit costs 1.36
 1.67
 998
     
Revenue adjustments, primarily for pricing on           
prior period open sales —
 —
 25
     
PT Smelting intercompany loss (0.01) (0.01) (4)     
Gross profit per pound/ounce $0.80
 $0.49
 $315
     
            
Reconciliation to Amounts Reported           
(In millions)   Production       
  Revenues and Delivery DD&A     
Totals presented above $2,405
 $1,190
 $284
     
Treatment charges (202) —
 —
     
Export duties (63) —
 —
     
Royalty on metals (84) —
 —
     
Noncash and other costs, net —
 31
 —
     
Revenue adjustments, primarily for pricing on           
prior period open sales 17
 —
 —
     
PT Smelting intercompany loss —
 7
 —
     
Indonesia mining 2,073
 1,228
 284
     
Other miningc
 9,640
 7,747
 889
     
Corporate, other & eliminations (1,260) (991) 764
     
As reported in FCX’s consolidated financial statements $10,453
 $7,984
 $1,937
     
            
a.Includes silver sales of 2.0 million ounces ($17.95 per ounce average realized price).
b.Includes asset retirement charges of $17 million ($0.02 per pound of copper).
c.Represents the combined total for our other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10.

Table of Contents

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2023
(In Millions)Co-Product Method
By-Product MethodCopperGold
Silver & Othera
Total
Revenues, excluding adjustments$3,860 $3,860 $2,227 $106 $6,193 
Site production and delivery, before net noncash
    and other costs shown below		1,736 1,082 624 30 1,736 
Gold, silver and other by-product credits(2,350)— — — — 
Treatment charges362 226 130 6 362 
Export duties165 103 59 3 165 
Royalty on metals228 144 81 3 228 
Net cash costs141 1,555 894 42 2,491 
DD&A694 433 249 12 694 
Noncash and other costs, net115 b71 42 2 115 
Total costs950 2,059 1,185 56 3,300 
Other revenue adjustments, primarily for pricing
    on prior period open sales		114 114 18 (1)131 
PT Smelting intercompany profit112 70 40 2 112 
Gross profit$3,136 $1,985 $1,100 $51 $3,136 
Copper sales (millions of recoverable pounds)1,014 1,014 
Gold sales (thousands of recoverable ounces)1,153 
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments$3.81 $3.81 $1,932 
Site production and delivery, before net noncash
    and other costs shown below		1.71 1.07 542 
Gold, silver and other by-product credits(2.32)— — 
Treatment charges0.36 0.22 113 
Export duties0.16 0.10 51 
Royalty on metals0.23 0.14 70 
Unit net cash costs0.14 1.53 776 
DD&A0.69 0.43 216 
Noncash and other costs, net0.11 b0.07 36 
Total unit costs0.94 2.03 1,028 
Other revenue adjustments, primarily for pricing
    on prior period open sales		0.11 0.11 15 
PT Smelting intercompany profit0.11 0.07 35 
Gross profit per pound/ounce$3.09 $1.96 $954 
Reconciliation to Amounts Reported
Production
Revenuesand DeliveryDD&A
Totals presented above$6,193 $1,736 $694 
Treatment charges(231)131 — 
Export duties(165)— — 
Royalty on metals(228)— — 
Noncash and other costs, net— 115 — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		131 — — 
PT Smelting intercompany profit— (112)— 
Eliminations and other— (10)— 
Indonesia mining5,700 1,860 694 
Other miningc
16,049 13,037 735 
Corporate, other & eliminations(4,799)(4,637)50 
As reported in our consolidated financial statements$16,950 $10,260 $1,479 
a.Includes silver sales of 4.0 million ounces ($23.37 per ounce average realized price).
b.Includes a charge of $55 million ($0.05 per pound of copper) associated with a potential administrative fine and charges totaling $22 million ($0.02 per pound of copper) for feasibility and optimization studies.
c.Represents the combined total for our other mining operations as presented in Note 9.

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Table of Contents
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2022
(In Millions)Co-Product Method
By-Product MethodCopperGold
Silver & Othera
Total
Revenues, excluding adjustments$4,433 $4,433 $2,422 $98 $6,953 
Site production and delivery, before net noncash
    and other costs shown below		1,855 

1,183 646 26 1,855 
Gold, silver and other by-product credits(2,523)— — — — 
Treatment charges287 183 100 4 287 
Export duties245 156 85 4 245 
Royalty on metals281 183 95 3 281 
Net cash costs145 1,705 926 37 2,668 
DD&A775 494 270 11 775 
Noncash and other costs, net20 b13 7 — 20 
Total costs940 2,212 1,203 48 3,463 
Other revenue adjustments, primarily for pricing
    on prior period open sales		25 25 3 — 28 
PT Smelting intercompany profit34 21 12 1 34 
Gross profit$3,552 $2,267 $1,234 $51 $3,552 
Copper sales (millions of recoverable pounds)1,195 1,195 
Gold sales (thousands of recoverable ounces)1,356 
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments$3.71 $3.71 $1,786 
Site production and delivery, before net noncash
    and other credits shown below		1.55 0.99 476 
Gold, silver and other by-product credits(2.11)— — 
Treatment charges0.24 0.15 74 
Export duties0.20 0.13 63 
Royalty on metals0.24 0.16 70 
Unit net cash costs0.12 1.43 683 
DD&A0.65 0.41 199 
Noncash and other costs, net0.02 b0.01 5 
Total unit costs0.79 1.85 887 
Other revenue adjustments, primarily for pricing
    on prior period open sales		0.02 0.02 2 
PT Smelting intercompany profit0.03 0.02 9 
Gross profit per pound/ounce$2.97 $1.90 $910 
Reconciliation to Amounts Reported
Production
Revenuesand DeliveryDD&A
Totals presented above$6,953 $1,855 $775 
Treatment charges(287)— — 
Export duties(245)— — 
Royalty on metals(281)— — 
Noncash and other costs, net12 32 — 
Other revenue adjustments, primarily for pricing
    on prior period open sales		28 — — 
PT Smelting intercompany profit— (34)— 
Indonesia mining6,180 1,853 775 
Other miningc
15,723 12,498 679 
Corporate, other & eliminations(4,881)(4,832)50 
As reported in our consolidated financial statements$17,022 $9,519 $1,504 
a.Includes silver sales of 4.7 million ounces ($20.80 per ounce average realized price).
b.Includes a net charge of $30 million ($0.02 per pound of copper) consisting of charges associated with a settlement of an administrative fine levied by the Indonesia government and a reserve for exposure associated with export duties in prior periods, partially offset by credits for adjustments to prior year treatment and refining charges and historical tax audits.
c.Represents the combined total for our other mining operations as presented in Note 9.
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Table of Contents
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended September 30,
(In Millions)20232022
Revenues, excluding adjustmentsa
$153 $134 
Site production and delivery, before net noncash
    and other costs shown below		116 91 
Treatment charges and other6 7 
Net cash costs122 98 
DD&A14 18 
Noncash and other costs, net4 

3 
Total costs140 119 
Gross profit$13 $15 
Molybdenum sales (millions of recoverable pounds)a
7 8 
Gross profit per pound of molybdenum:
Revenues, excluding adjustmentsa
$22.58 $16.51 
Site production and delivery, before net noncash
    and other costs shown below		17.20 11.26 
Treatment charges and other0.87 0.84 
Unit net cash costs18.07 12.10 
DD&A2.13 2.16 
Noncash and other costs, net0.53 

0.40 
Total unit costs20.73 14.66 
Gross profit per pound$1.85 $1.85 
Reconciliation to Amounts Reported
Production
Three Months Ended September 30, 2023Revenuesand DeliveryDD&A
Totals presented above$153 $116 $14 
Treatment charges and other(6)— — 
Noncash and other costs, net— 4 — 
Molybdenum mines147 120 14 
Other miningb
7,274 5,014 501 
Corporate, other & eliminations(1,597)(1,586)18 
As reported in our consolidated financial statements$5,824 $3,548 $533 
Three Months Ended September 30, 2022
Totals presented above$134 $91 $18 
Treatment charges and other(7)— — 
Noncash and other costs, net— 3 — 
Molybdenum mines127 94 18 
Other miningb
6,262 4,661 472 
Corporate, other & eliminations(1,386)(1,389)18 
As reported in our consolidated financial statements$5,003 $3,366 $508 
         
 Three Months Ended September 30,   
(In millions)2017 2016     
         
Revenues, excluding adjustmentsa
$72
 $51
     
Site production and delivery, before net noncash
 and other costs shown below
56
 53
     
Treatment charges and other7
 5
     
Net cash costs63
 58
     
DD&A20
 15
     
Noncash and other costs, net2
 4
     
Total costs85
 77
     
Gross loss$(13) $(26)     
         
Molybdenum sales (millions of recoverable pounds)a
8
 5
     
         
Gross loss per pound of molybdenum:   
         
Revenues, excluding adjustmentsa
$9.02
 $9.08
     
Site production and delivery, before net noncash
 and other costs shown below
7.05
 9.42
     
Treatment charges and other0.85
 0.86
     
Unit net cash costs7.90
 10.28
     
DD&A2.44
 2.63
     
Noncash and other costs, net0.28
 0.77
     
Total unit costs10.62
 13.68
     
Gross loss per pound$(1.60) $(4.60)     
         
Reconciliation to Amounts Reported        
(In millions)        
         
   Production     
Three Months Ended September 30, 2017Revenues and Delivery DD&A   
Totals presented above$72
 $56
 $20
   
Treatment charges and other(7) —
 —
   
Noncash and other costs, net—
 2
 —
   
Molybdenum mines65
 58
 20
   
Other miningb
4,949
 3,497
 375
   
Corporate, other & eliminations(704) (753) 23
   
As reported in FCX’s consolidated financial statements$4,310
 $2,802
 $418
   
         
Three Months Ended September 30, 2016        
Totals presented above$51
 $53
 $15
   
Treatment charges and other(5) —
 —
   
Noncash and other costs, net—
 4
 —
   
Molybdenum mines46
 57
 15
   
Other miningb
4,123
 2,988
 382
   
Corporate, other & eliminations(292) (516) 246
   
As reported in FCX’s consolidated financial statements$3,877
 $2,529
 $643
   
         
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.
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.Represents the combined total for our other mining operations, including North America copper mines, South America mining, Indonesia mining, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10. 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.

b.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.






65
Table of Contents

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
Nine Months Ended September 30,
(In Millions)20232022
Revenues, excluding adjustmentsa
$539 $419 
Site production and delivery, before net noncash
    and other costs shown below		308 241 
Treatment charges and other19 20 
Net cash costs327 261 
DD&A48 52 
Noncash and other costs, net13 8 
Total costs388 321 
Gross profit$151 $98 
Molybdenum sales (millions of recoverable pounds)a
22 23 
Gross profit per pound of molybdenum:
Revenues, excluding adjustmentsa
$25.17 $18.01 
Site production and delivery, before net noncash
    and other costs shown below		14.39 10.37 
Treatment charges and other0.86 0.85 
Unit net cash costs15.25 11.22 
DD&A2.26 2.23 
Noncash and other costs, net0.61 0.37 
Total unit costs18.12 13.82 
Gross profit per pound$7.05 $4.19 
Reconciliation to Amounts Reported
Production
Nine Months Ended September 30, 2023Revenuesand DeliveryDD&A
Totals presented above$539 $308 $48 
Treatment charges and other(19)— — 
Noncash and other costs, net— 13 — 
Molybdenum mines520 321 48 
Other miningb
21,229 14,576 1,381 
Corporate, other & eliminations(4,799)(4,637)50 
As reported in our consolidated financial statements$16,950 $10,260 $1,479 
Nine Months Ended September 30, 2022
Totals presented above$419 $241 $52 
Treatment charges and other(20)— — 
Noncash and other costs, net— 8 — 
Molybdenum mines399 249 52 
Other miningb
21,504 14,102 1,402 
Corporate, other & eliminations(4,881)(4,832)50 
As reported in our consolidated financial statements$17,022 $9,519 $1,504 
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.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.


 Nine Months Ended September 30,   
(In millions)2017 2016     
         
Revenues, excluding adjustmentsa
$220
 $153
     
Site production and delivery, before net noncash
 and other costs shown below
164
 146
     
Treatment charges and other21
 17
     
Net cash costs185
 163
     
DD&A58
 51
     
Noncash and other costs, net5
 13
     
Total costs248
 227
     
Gross loss$(28) $(74)     
         
Molybdenum sales (millions of recoverable pounds)a
24
 19
     
         
Gross loss per pound of molybdenum:   
         
Revenues, excluding adjustmentsa
$9.05
 $7.94
     
Site production and delivery, before net noncash
 and other costs shown below
6.75
 7.53
     
Treatment charges and other0.85
 0.86
     
Unit net cash costs7.60
 8.39
     
DD&A2.38
 2.65
     
Noncash and other costs, net0.23
 0.72
     
Total unit costs10.21
 11.76
     
Gross loss per pound$(1.16) $(3.82)     
         
Reconciliation to Amounts Reported        
(In millions)        
         
   Production     
Nine Months Ended September 30, 2017Revenues and Delivery DD&A   
Totals presented above$220
 $164
 $58
   
Treatment charges and other(21) —
 —
   
Noncash and other costs, net—
 5
 —
   
Molybdenum mines199
 169
 58
   
Other miningb
13,419
 9,652
 1,122
   
Corporate, other & eliminations(2,256) (2,324) 77
   
As reported in FCX’s consolidated financial statements$11,362
 $7,497
 $1,257
   
         
Nine Months Ended September 30, 2016        
Totals presented above$153
 $146
 $51
   
Treatment charges and other(17) —
 —
   
Noncash and other costs, net—
 13
 —
   
Molybdenum mines136
 159
 51
   
Other miningb
11,577
 8,816
 1,122
   
Corporate, other & eliminations(1,260) (991) 764
   
As reported in FCX’s consolidated financial statements$10,453
 $7,984
 $1,937
   
         
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.Represents the combined total for our other mining operations, including North America copper mines, South America mining, Indonesia mining, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 10. 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.
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CAUTIONARY STATEMENT


Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance.performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, or expectations relating to business outlook, strategy, goals or targets; global market conditions; ore grades and milling rates,rates; production and sales volumes,volumes; unit net cash costs and operating costs; capital expenditures; operating plans; cash flows, capital expenditures,flows; liquidity; PT-FI’s financing, construction and completion of additional domestic smelting capacity in Indonesia in accordance with the terms of its IUPK; extension of PT-FI’s IUPK beyond 2041 and export licenses; PT-FI’s resumption of exports of anode slimes; payment of export duties; export volumes; our commitment to deliver responsibly produced copper and molybdenum, including plans to implement, validate and maintain validation of our operating sites under specific frameworks; execution of our energy and climate strategies and the underlying assumptions and estimated impacts on our business and stakeholders related thereto; achievement of 2030 climate targets and 2050 net zero aspiration; improvements in operating procedures and technology innovations and applications; exploration efforts and results,results; development and production activities, rates and costs, liquidity,costs; future organic growth opportunities; tax rates,rates; the impact of copper, gold and molybdenum price changes,changes; the impact of deferred intercompany profits on earnings,earnings; mineral reserve estimates,and mineral resource estimates; final resolution of settlements associated with ongoing legal and environmental proceedings; debt repurchases; and the ongoing implementation of our financial policy 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”“potential,” “assumptions,” “guidance,” “aspirations,” “future,” “commitments,” “pursues,” “initiatives,” “objectives,” “opportunities,” “strategy” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration and payment of dividends (base or variable), and timing and amount of any share repurchases are at the discretion of the Board and management, respectively, and are subject to a number of factors, including not exceeding our net debt target, capital availability, our financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by the Board or management, as applicable. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.


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, supply of and demand for, and prices of the commodities we produce, primarily copper; PT-FI’s ability to continue to export and sell copper goldconcentrates and molybdenum; mine sequencing;anode slimes; changes in export duties, including results of proceedings to dispute export duties; the Indonesia government’s approval of a deferred schedule for completion of additional domestic smelting capacity in Indonesia; production rates; timing of shipments; price and availability of consumables and components we purchase as well as constraints on supply and logistics, and transportation services; changes in our cash requirements, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions; reductions in liquidity and access to capital; changes in tax laws and regulations, including the impact of the Act; any major public health crisis; political and social risks, including the potential effects of costviolence in Indonesia, civil unrest in Peru, and capital expenditure reductionsrelations with local communities and production curtailments on financialIndigenous Peoples; operational risks inherent in mining, with higher inherent risks in underground mining; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations; results and cash flow;of technical, economic or feasibility studies; potential inventory adjustments; potential impairment of long-lived mining assets; satisfaction of requirements in accordance with PT-FI's IUPK to extend mining rights from 2031 through 2041; discussions relating to the outcomeextension of negotiationsPT-FI’s IUPK beyond 2041; cybersecurity incidents; labor relations, including labor-related work stoppages and costs; compliance with the Indonesian government regarding PT-FI’s long-term operating rights; the potential effects of violence in Indonesia generallyapplicable environmental, health and in the province of Papua; industry risks; regulatory changes (including adoption of financial assurance regulations as proposed by the U.S. Environmental Protection Agency under CERCLA for the hard rock mining industry); political risks; labor relations;safety laws and regulations; weather- and climate-related risks; environmental risks;risks, including availability of secure water supplies; litigation results (including the final disposition of the unfavorable Indonesia Tax Court ruling relatingresults; tailings management; our ability to surface water taxescomply with our responsible production commitments under specific frameworks and the outcome of Cerro Verde’s royalty dispute with the Peruvian national tax authority);any changes to such frameworks and other factors described in more detail under the heading “Risk Factors” contained in Part I, Item 1A. “Risk Factors” of our annual report on2022 Form 10-K for the year ended December 31, 2016, filed with the SEC as updated by our subsequent filings with the SEC. With respect to our operations in Indonesia, such factors include whether PT-FI will be able to resolve complex regulatory matters in Indonesia and continue to export copper after December 31, 2017.Part II, Item 1A. herein.


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 innovations, 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 intendundertake no obligation to update any forward-looking statements, more frequently than quarterly
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which speak only as of the date made, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes,changes.

This report on Form 10-Q also contains measures such as net debt and we undertake no obligationunit net cash costs per pound of copper and molybdenum, which are not recognized under U.S. GAAP. Refer to update any forward-looking“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 consolidated debt, consolidated cash and cash equivalents and current restricted cash associated with PT-FI’s export proceeds to net debt.

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Item 3.Quantitative and Qualitative Disclosures About Market Risk.

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, 2017.2023. For additional information on market risks, refer to “Disclosures About Market Risks” included in Part II, Items 7. and 7A. of our annual report on2022 Form 10-K for the year ended December 31, 2016.10-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, 2017;10-Q; for projected sensitivities of our provisionally priced copper sales and derivative instruments to changes in commodity prices refer to “Consolidated Results – Revenues” in Part I, Item 2. of this quarterly report on Form 10-Q for10-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, 2023.

(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, 2017.2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


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 are effective as of September 30, 2017.

(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, 2017, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II.OTHER INFORMATION

Part II.OTHER INFORMATION

Item 1.
Legal Proceedings.

Item 1.Legal Proceedings.

We are involved in numerous legal proceedings that arise in the ordinary course of our business or that are associated with environmental issues arising from legacy operations conducted over the years by Freeport Minerals Corporation and its affiliates.issues. We are also involved from time to timeperiodically in other 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 Note 9 of this quarterly report on Form 10-Q for the period ended September 30, 2017, and in Part I, Item 3. “Legal Proceedings” and Note 12 of our annual report on2022 Form 10-K, for the year ended December 31, 2016, as updated inand Note 9 in our quarterly reports on Form 10-Q for the quarters ended March 31, 2017, and June 30, 2017,8 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.


Environmental ProceedingsThere have been no material changes to legal proceedings previously disclosed in Part I, Item 3. “Legal Proceedings” and Note 12 of our 2022 Form 10-K, except as described in Note 8 herein.


Notices of Violation - Cerro Verde

In September 2017, Cerro Verde paid approximately $148,000, including interest, in connection with final resolution of a Notice of Violation (NOV) issued in December 2006 by Peru’s Agency for Environmental Assessment and Enforcement (OEFA) alleging a spill of dry tailings from a pipeline near the Enlozada tailings dam and findings of dissolved oxidized copper in excess of permissible limits near the Hyuarondo dam.  In September 2017, Cerro Verde also paid approximately $169,000, including interest, in connection with final resolution of an NOV issued in October 2008 by OEFA alleging findings of dissolved oxidized copper in excess of permissible limits, that sprinklers were not being used to moisten stockpiles or the conveyer belt at a concentrator plant, and that the uncleanliness of septic tanks at the transfer station resulted in findings of raw sewage in the treated water used for landscaping around administrative buildings.


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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 annual report on2022 Form 10-K, except for the year ended December 31, 2016, except as disclosedupdated risk factor included below, which should be read in Part II, Item 1A. “Risk Factors”conjunction with the risk factors set forth in our 2022 Form 10-K.

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Our information technology systems have been and in the future may be adversely affected by cybersecurity events, disruptions, damage, failure and risks associated with implementation and integration.

Our industry has become increasingly supported by and dependent on digital technologies. Our strategy of operating large, long-lived, geographically diverse assets has been increasingly dependent on our ability to become fully integrated and highly automated. Many of our quarterly reportbusiness and operational processes are heavily dependent on Form 10-Qtraditional and emerging technology systems to conduct day-to-day operations, improve safety and efficiency, and lower costs.

As our dependence on information systems, including those of our third-party service providers and vendors, grows, we become more vulnerable to an increasing threat of continually evolving cybersecurity risks. In recent years, cybersecurity events have increased in frequency and magnitude and the methods used to gain unauthorized access change frequently, making it increasingly difficult for us to prevent cybersecurity incidents or detect and remediate incidents in a timely and effective manner. Attacks have included and may include, but are not limited to, installation of malicious software, phishing, ransomware, social engineering tactics and credential attacks, insider threats, denial of service attacks, unauthorized access to data and other advanced and sophisticated cybersecurity breaches and threats, including those that increasingly target critical operational technologies and process control networks and those that use artificial intelligence. Such attacks may be perpetrated by a variety of bad actors, some of which may reside in jurisdictions where law enforcement measures to address such attacks are ineffective.

We have experienced targeted and non-targeted cybersecurity events in the quarter ended March 31, 2017, which provided as follows:past and may experience them in the future. In August 2023, we determined that we were subject to a cybersecurity incident that affected certain of our information systems, resulting in temporary disruptions to parts of our operations. We performed an investigation of the impact of the incident and incurred an immaterial amount of expenses in conjunction with the investigation.However, we cannot guarantee that events of a similar nature will not occur in the future.


The risk factor “Mine closureCybersecurity threats could subject us to manipulation or improper use of our systems and reclamation regulations impose substantial costs onnetworks, production downtimes, loss of sales, communication interruption or other disruptions and delays to our operations or to the transportation of products or infrastructure utilized by our operations, unauthorized release of proprietary, commercially sensitive, confidential or otherwise protected information, a misappropriation or loss of funds, the corruption of data, significant health and include requirements that we provide financial assurance supporting those obligations. We also have plugging and abandonment obligations relatedsafety consequences, environmental damage, loss of intellectual property, fines, penalties, litigation, regulatory or governmental investigation, liability under or termination of our contracts with third parties, damage to our remaining oil and gas properties, and are required to provide bondsreputation or other formsfinancial losses from remedial actions, any of financial assurance in connection with those operations. Changes in or the failure to comply with these requirementswhich could have a material adverse effect on us” which was included in our annual report on Form 10-K for the year ended December 31, 2016, is updated to add the following:

The United States (U.S.) Environmental Protection Agency extended the comment period for the proposed regulations under Section 108(b) of CERCLA to July 11, 2017. Since filing our annual report on Form 10-K in February 2017, we have evaluated the potential impact of these proposed rules. Based on this evaluation, we believe that, if adopted without material modification, the rules would impose financial responsibility obligations on U.S. hard rock mining operations that are unnecessary, duplicative of existing state and other federal requirements, and unreasonable. Our initial calculations also suggest that the financial responsibility amounts would be difficult, if not impossible, for us and others to meet with corporate resources, and would be extremely expensive, if not impossible, to finance with third-party financial instruments such as letters of credit, bonds or insurance. We and others in the industry will continue to participate in the public comment process and oppose the adoption of these rules in anything like their proposed form, as adoption in that form would severely harm the international competitiveness of the U.S. hard rock mining industry and would materially and adversely affect our cash flows, results of operations and financial condition.condition, and which could adversely impact the effectiveness of our internal controls over financial reporting. We do not maintain cyber risk insurance, and the lack of, or insufficiency of, insurance coverage could adversely affect our cash flows and overall profitability.


While the August 2023 cybersecurity incident and other cybersecurity events have not had a material impact on us, including our financial condition or results of operations, as of September 30, 2023, there can be no assurance that we will not experience any such impact or additional interruptions to our operations in the future. Given the unpredictability of the timing and the evolving nature and scope of information technology disruptions, the various procedures and controls we use to monitor and protect against these threats and to mitigate our potential risks to such threats have not been in some instances and may not be sufficient in preventing future cybersecurity events from materializing. Further, as cybersecurity threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate vulnerabilities to cybersecurity threats.

We could also be adversely affected by system or network disruptions if new or upgraded information technology systems are defective, not installed properly or not properly integrated into our operations. System modification failures could have a material adverse effect on our business, financial position and results of operations and could, if not successfully implemented, adversely impact the effectiveness of our internal controls over financial reporting.

Further, we increasingly depend on our information technology infrastructure for electronic communications among our locations, personnel, customers and suppliers around the world, including as a result of remote working and flexible working arrangements. These information technology systems, some of which are managed by third parties that we do not control, may be susceptible to damage, disruptions or shutdowns because of failures during the process of upgrading or replacing software, databases or components thereof, cutover activities in our restructuring
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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

and simplification initiatives, power outages, hardware failures, telecommunication failures, user errors, catastrophic events or other problems.

Item 2.Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.

There were no unregistered sales of equity securities during the three months ended September 30, 2017.2023.


There were noThe following table sets forth information with respect to shares of FCX common stock purchased by us during the three months ended September 30, 2017.2023, and the approximate dollar value of shares that may yet be purchased pursuant to our share repurchase program:

Period(a) Total
Number of
Shares Purchased		(b) Average
Price Paid Per Share
(c) Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programsa
(d) Approximate Dollar Value of Shares That May
Yet Be Purchased Under the Plans or Programsa
July 1-31, 2023— $— — $3,164,642,228 
August 1-31, 2023— $— — $3,164,642,228 
September 1-30, 2023— $— — $3,164,642,228 
Total— $— — 
a.On November 1, 2021, our Board approved a share repurchase program authorizing repurchases of up to $3.0 billion of our common stock. On July 21, 2008,19, 2022, our Board of Directors approvedauthorized an increase in our open-marketthe share purchaserepurchase program for up to 30 million shares. There have been no purchases under this$5.0 billion. The share repurchase program since 2008. This programdoes not obligate us to acquire any specific amount of shares and does not have an expiration date. At September 30, 2017, there were 23.7 million shares that could still be purchased under the program.

Item 4.Mine Safety Disclosures.

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.

During the quarter ended September 30, 2023, no director or officer of FCX adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as such terms are defined in Item 408(a) of Regulation S-K.

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Item 6.Exhibits.
Item 6.Exhibits.

Filed
Exhibitwith thisIncorporated by Reference
NumberExhibit TitleForm 10-QFormFile No.Date Filed
2.1*
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-Q001-11307-0111/9/2018
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-K001-11307-012/15/2019
3.1
Amended and Restated Certificate of Incorporation of FCX, effective as of June 8, 2016.8-K001-11307-016/9/2016
3.2
Amended and Restated By-Laws of FCX, effective as of June 8, 2016.3, 2020.8-K001-11307-016/9/20163/2020
4.115.1
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 2.30% Senior Notes due 2017, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).8-K001-11307-012/13/2012
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-K001-11307-012/13/2012
4.3
Fourth Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 2.30% Senior Notes due 2017, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).8-K001-11307-016/3/2013
4.4
Fifth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 2.30% Senior Notes due 2017).8-K001-11307-0111/14/2014
4.5
Sixth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 4.00% Senior Notes due 2021).8-K001-11307-0111/14/2014
4.6
Seventh Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as (relating to the 4.55% Senior Notes due 2024).8-K001-11307-0111/14/2014
4.7
Eighth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 5.40% Senior Notes due 2034).8-K001-11307-0111/14/2014
4.8
Indenture dated as of March 7, 2013, between FCX and U.S. Bank National Association, as Trustee (relating to the 2.375% Senior Notes due 2018, the 3.100% Senior Notes due 2020, the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).8-K001-11307-013/7/2013
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Filed
Exhibitwith thisIncorporated by Reference
NumberExhibit TitleForm 10-QFormFile No.Date Filed
4.9
Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.5% Senior Notes due 2020 and the 6.875% Senior Notes due 2023).8-K001-314703/13/2007
4.10
Sixteenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.5% Senior Notes due 2020).8-K001-3147010/26/2012
4.11
Seventeenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.875% Senior Notes due 2023).8-K001-3147010/26/2012
4.12
Eighteenth Supplemental Indenture dated as of May 31, 2013 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas Inc., as Co-Issuer, FCX, as Parent Guarantor, Plains Exploration & Production Company, as Original Issuer, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.5% Senior Notes due 2020 and the 6.875% Senior Notes due 2023).8-K001-11307-016/3/2013
4.13
Nineteenth Supplemental Indenture dated as of September 30, 2016 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas Inc., as Co-Issuer, FMSTP Inc., as Additional Co-Issuer, FCX, as Parent Guarantor, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.50% Senior Notes due 2020 and the 6.875% Senior Notes due 2023).10-Q001-11307-0111/9/2016
4.14
Twentieth Supplemental Indenture dated as of December 13, 2016 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas LLC, as Co-Issuer, FMSTP Inc., as Additional Co-Issuer, FCX, as Parent Guarantor, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.50% Senior Notes due 2020 and the 6.875% Senior Notes due 2023).8-K001-11307-0112/13/2016
4.15
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-3333-364159/25/1997
4.16
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-K01-0008211/3/1997
4.17
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-K01-000825/30/2001
4.18
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-K01-000823/7/2005
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Filed
Exhibitwith thisIncorporated by Reference
NumberExhibit TitleForm 10-QFormFile No.Date Filed
4.19
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-K001-11307-012/26/2016
4.20
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 6.125% Senior Notes due 2019, the 6.50% Senior Notes due 2020, the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, and the 6.875% Senior Notes due 2023).8-K001-11307-0112/13/2016
4.21
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 6.125% Senior Notes due 2019.8-K001-11307-0112/13/2016
4.22
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 6.50% Senior Notes due 2020.8-K001-11307-0112/13/2016
4.23
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 6.625% Senior Notes due 2021.8-K001-11307-0112/13/2016
4.24
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 6.75% Senior Notes due 2022.8-K001-11307-0112/13/2016
4.25
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-K001-11307-0112/13/2016
15.1
Letter from Ernst & Young LLP regarding unaudited interim financial statements.X
22.1
List of Subsidiary Guarantors and Subsidiary Issuers of Guaranteed Securities.10-K001-11307-012/15/2023
31.1
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).X
31.2
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).X
32.1
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.X
32.2
Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.X
95.1
Mine Safety and Health Administration Safety Data.X
Table of Contents

101.INSXBRL 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.X
101.SCHFiled
Exhibitwith thisIncorporated by Reference
NumberExhibit TitleForm 10-QFormFile No.Date Filed
101.INSXBRL Instance Document.X
101.SCHInline XBRL Taxonomy Extension Schema.X
101.CALInline XBRL Taxonomy Extension Calculation Linkbase.X
101.DEFInline XBRL Taxonomy Extension Definition Linkbase.X
101.LABInline XBRL Taxonomy Extension Label Linkbase.X
101.PREInline XBRL Taxonomy Extension Presentation Linkbase.X
104The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL.X
* Indicates management contract or compensatory plan or arrangement.

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. FCXThe registrant agrees to furnish a copy of each such instrument upon request ofsupplementally to the Securities and Exchange Commission.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.

71
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.
FREEPORT-McMoRan INC.By:/s/ Ellie L. Mikes
Ellie L. Mikes
By:/s/ C. Donald Whitmire, Jr.
C. Donald Whitmire, Jr.
Vice President and Chief Accounting Officer
Controller - Financial Reporting(authorized signatory
(authorized signatory
and Principal Accounting Officer)






Date:  November 7, 20173, 2023

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