Freeport-McMoran Inc. Jefferies Global Industrials Conference 2026

Great. Thank you. Thanks Jefferies, and thanks Chris for hosting the conference. Chris' long-term coverage of our sector, we really value his analysis and insights over many, many years. It's great to be here in New York and have the opportunity to talk about what's going on at Freeport. As Chris mentioned, we have a lot going on. A lot of excitement around our business. Freeport's so well-positioned. The focus areas that we have currently, as you know, our strategy is focused around copper. We benefit from having a very large-scale current production profile, diversified, with embedded growth options in the business. We're entering a period of growth for our business, which is very exciting. Initially focused on some near-term opportunities we have in the U.S.

Chris mentioned, and he asked me to take a run around the business and some of the things that we're focused on. Priorities for 2026 are around the disciplined execution of our plans, including on the Grasberg ramp up, and that is going very well, and I'll comment more about where we stand there. We are actively working to crystallize a very large potential value opportunity on an innovative leaching initiative we've been working on for some time, and really starting to gain traction on. We're leaning heavily as a company, as an organization, into technology and innovation that we believe will help us maintain a competitive edge, bring down costs, improve efficiency, so that's a real significant focus area. As I mentioned, growth, and we've got a number of projects that we're teeing up. I'm going to start in Indonesia.

Many of you know it was about a year ago at this time where we experienced an unprecedented incident affecting our underground operations at the Grasberg block cave. We've been operating in Indonesia for 60 years, and have had for many decades experience in block caving. Freeport's viewed as one of the experts around the world, and one of the leading experts around the world in block caving. We had an unprecedented incident, a very serious incident, where we lost seven of our coworkers last year, which was heartbreaking for all of us. We're still grieving their loss. In fact, had a memorial service just this past week again to remember those lost. We'll never forget them. We're really working on the future. The team has made tremendous progress over the last year in the recovery effort, in the investigation.

We understand what happened, what we're doing differently in the future to manage this risk, and feel very good about where we are today. We restarted some of the operations last October, and then restarted a large portion of the operation in March of this year and have been on our ramp-up plan. That's going very, very well. We have a plan that we would be at about 65% of overall capacity in the second half of this year, and then reaching 80% by the middle of next year, and into approaching 100% by the end of 2027. That's all going very, very well. This is a very large profitable ore body that, as I mentioned, we have a lot of experience in going back for decades. So that's going well. We also just two weeks ago started up our new smelter in Indonesia.

We have two copper smelters in Indonesia. One was operated since the late 1990s, and now we're just starting up the new smelter that we constructed. It's a very exciting time. Freeport is fully integrated in terms of upstream and downstream in Indonesia and globally. That's a strategic benefit of Freeport having not only mining, but also processing. We're selling copper cathode, and one of the things the governments like about us is we don't rely on any specific country for third-party processing. There's a lot of debate about whether China has too much control over processing, but Freeport does not have a significant reliance on others for processing. Indonesia's going well. We're very, very excited about opportunities that we have in South America.

We have a major project in Chile that we've just filed an environmental impact assessment statement on earlier this year, and we're advancing that. That's potentially a very large project that the industry does not have a lot of. This is in a jurisdiction, which it's a brownfield project. It's in a jurisdiction that we've operated in for years, very well defined by regulations there, and the mining industry is very positive about operating in Chile. About 25% of the world's copper production happens there. We have a very large project there, and that's going to be very attractive as we go forward. We have a very big operation in Peru, and that's going very well, called Cerro Verde. It's one of the largest concentrating operations in the world.

Freeport is so important in copper, and particularly important in the U.S. I'm going to get to the U.S., where Freeport supplies refined copper, and 70% of the copper that is produced in the U.S. comes from Freeport. It's a very strategic business in the U.S. We have multiple mines that we operate, where we've operated for decades. We have really a franchise there in Arizona and New Mexico. We also have some primary molybdenum operations in Colorado. Really exciting growth opportunities in the U.S. You can see from our financial results, if you're paying attention to the details in our financial results, the growing significance of our U.S. contribution to our earnings and cash flow. Because of the structure of the business, we own all of the assets in the U.S.

We own the land and fee, so we don't pay royalties like you do in other countries. The tax structure is attractive for us. When prices move, you can see that drop, the leverage that we have to prices, you can see that drop right to the bottom line. If you compare our results historically to where they are currently, you can see the leverage and the significance and the value of what's going on in our U.S. asset base. That's exciting. The world's going to need more copper. It's going to come from places where there are established, in the near term, established opportunities to invest in brownfield expansions, and that's one of the things we're doing at Freeport.

We've got a very exciting development project in one of our mines in northwest Arizona that we're going to bring to our board for an investment decision later this year. That's going to bring more relevance to this asset. The asset currently today is undersized in terms of processing compared to its reserves. Makes a lot of sense for long-term value. At the end of the day, that's what we're trying to do, is make investments that move the needle in terms of long-term value for the company. We've got a capital allocation strategy around investing in our assets, but also returning cash to shareholders. We've got a capital framework to do that. 50% of our discretionary cash goes to investments in our projects and the other half to shareholders' return. We're in a great position at Freeport. Execution is key. We all know that.

We all know that investors rely on our teams to understand the risk and execute reliably and responsibly. At Freeport, we're really focused on doing that to deliver value for shareholders. So that, in a nutshell, what's going on around the company, Chris. If you want to drill down or if anybody in the audience wants to drill down and ask questions, I'm happy to do that.