Sociedad Minera Cerro Verde A : Otros Hechos De Importancia

• • Achieved 24% increase in copper sales and 59% increase in gold sales, compared to first-quarter 2021

• • Strong financial results, cash flow generation and cash returns to shareholders

• • Advancing organic growth initiatives

• • Favorable operational and market outlook

• • Published annual report on sustainability

• ▪ Net income attributable to common stock in first-quarter 2022 totaled $1.5 billion, $1.04 per share, and adjusted net income attributable to common stock totaled $1.6 billion, or $1.07 per share, after excluding net charges totaling $38 million, $0.03 per share.

• ▪ Consolidated sales totaled 1.0 billion pounds of copper, 409 thousand ounces of gold and 19 million pounds of molybdenum in first-quarter 2022. Consolidated sales for the year 2022 are expected to approximate 4.25 billion pounds of copper, 1.6 million ounces of gold and 80 million pounds of molybdenum, including 1.0 billion pounds of copper, 405 thousand ounces of gold and 21 million pounds of molybdenum in second-quarter 2022.

• ▪ Average realized prices in first-quarter 2022 were $4.66 per pound for copper, $1,920 per ounce for gold and $19.30 per pound for molybdenum.

• ▪ Average unit net cash costs in first-quarter 2022 were $1.33 per pound of copper and are expected to average $1.44 per pound of copper for the year 2022.

• ▪ Operating cash flows totaled $1.7 billion (net of $0.8 billion of working capital and other uses) in first-quarter 2022. Based on current sales volume and cost estimates, and assuming average prices of $4.75 per pound for copper, $1,950 per ounce for gold and $19.00 per pound for molybdenum for the remainder of 2022, operating cash flows are expected to approximate $8.6 billion (net of $0.9 billion of working capital and other uses) for the year 2022.

• ▪ Capital expenditures totaled $0.7 billion (including $0.4 billion for major mining projects and $0.1 billion for the Indonesia smelter projects) in first-quarter 2022. Capital expenditures for the year 2022 are expected to approximate $4.6 billion ($3.2 billion excluding the Indonesia smelter projects), including $1.9 billion for major mining projects.

• ▪ Through April 20, 2022, FCX has acquired 26.8 million shares of its common stock for a total cost of $1.1 billion ($41.69 average cost per share) under the $3.0 billion share repurchase program, including 14.1 million shares for a total cost of $631 million ($44.74 average cost per share) during 2022.

• ▪ At March 31, 2022, consolidated debt totaled $9.6 billion and consolidated cash and cash equivalents totaled $8.3 billion, resulting in net debt of $1.3 billion (including $0.6 billion of net debt for the Indonesia smelter projects). Refer to the supplemental schedule, "Net Debt," on page VII.

• ▪ On April 14, 2022, PT Freeport Indonesia (PT-FI) completed the sale of $3.0 billion of senior notes in connection with its financing plans primarily for construction of additional domestic smelting capacity.

Richard C. Adkerson, Chairman and Chief Executive Officer, said, "The strong operational and financial results we are reporting today reflect our long-term, ongoing focus on solid execution of our plans and the achievements of our committed global team. As a premier global leader in producing copper responsibly, with large-scale, long-lived reserves and an attractive portfolio of organic growth opportunities, we are strongly positioned to benefit from increasing global copper demand for infrastructure development and accelerating clean energy investments. We have created a durable foundation for long-term success supported by a portfolio of world class copper assets, an experienced and highly motivated global team and a strong financial base. Freeport is focused on delivering value to all our stakeholders and approaching the future with confidence and excitement."

SUMMARY FINANCIAL DATA

Three Months Ended March 31,

2022

2021

(in millions, except per share amounts)

a. For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page VIII.

b. Includes favorable adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $102 million

($42 million to net income attributable to common stock or $0.03 per share) in first-quarter 2022 and $146 million ($57 million to net income attributable to common stock or $0.04 per share) in first-quarter 2021. For further discussion, refer to the supplemental schedule, "Derivative Instruments," on page VII.

• c. Includes net charges totaling $38 million ($0.03 per share) in each of first-quarter 2022 and first-quarter 2021 that are described in the supplemental schedule, "Adjusted Net Income," on page VI.

• d. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page VIII.

• e. Working capital and other uses totaled $811 million in first-quarter 2022 and $336 million in first-quarter 2021.

2022

2021

Copper (millions of recoverable pounds)

Production

1,009 910

Sales, excluding purchases Average realized price per pound

1,024 825

Site production and delivery costs per pounda Unit net cash costs per pounda

$ $ $

4.66 $ 3.94

2.03 $ 1.86

1.33 $ 1.39

Gold (thousands of recoverable ounces)

Production

415 297

Sales

409 258

Average realized price per ounce Molybdenum (millions of recoverable pounds)

$

1,920 $ 1,713

Production

21 20

Sales, excluding purchases Average realized price per pound

19 21

$

19.30 $ 11.62

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 (credits) by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.

Responsible Production

2021 Annual Report on Sustainability. Today FCX published its 2021 Annual Report on Sustainability, available on FCX's website at fcx.com/sustainability. FCX has a long history of environmental, social and governance programs and is striving to continuously improve performance in these important areas. This report marks FCX's 21st year of reporting on its sustainability progress and FCX's second year reporting in alignment with the Value Reporting Foundation's SASB Standards for the Metals & Mining industry. FCX is committed to building upon its achievements in sustainability and is focused on leading as a responsible copper producer.

The Copper Mark. FCX is committed to validating all of its copper producing sites with the Copper Mark, a comprehensive assurance framework designed to demonstrate the copper industry's responsible production practices. To achieve the Copper Mark, each site is required to complete an external assurance process to assess conformance with 32 environmental, social and governance requirements. During first-quarter 2022, FCX's Chino and Tyrone sites were awarded the Copper Mark. To date, FCX has achieved the Copper Mark at nine of its global sites (Chino, Tyrone, Bagdad, Morenci, Miami, El Paso, Cerro Verde, El Abra and Atlantic Copper), two sites have signed letters of commitment (Safford and Sierrita) and FCX expects to advance preparation for the validation process for PT-FI during 2022.

Consolidated Sales Volumes

First-quarter 2022 copper sales of 1.0 billion pounds were 6 percent higher than the January 2022 estimate of 970 million pounds of copper, primarily reflecting the timing of shipments. First-quarter 2022 copper sales were 24 percent higher than first-quarter 2021 sales of 825 million pounds of copper, primarily reflecting the ramp-up of underground mining at the Grasberg minerals district and timing of shipments in North America.

First-quarter 2022 gold sales of 409 thousand ounces were 8 percent higher the January 2022 estimate of 380 thousand ounces of gold, primarily reflecting higher recoveries. First-quarter 2022 gold sales were 59 percent higher than first-quarter 2021 sales of 258 thousand ounces, primarily reflecting the ramp-up of underground mining at the Grasberg minerals district.

First-quarter 2022 molybdenum sales of 19 million pounds were lower than the January 2022 estimate of 20 million pounds and first-quarter 2021 sales of 21 million pounds, primarily reflecting timing of shipments.

Consolidated sales volumes for the year 2022 are expected to approximate 4.25 billion pounds of copper, 1.6 million ounces of gold and 80 million pounds of molybdenum, including 1.0 billion pounds of copper, 405 thousand ounces of gold and 21 million pounds of molybdenum in second-quarter 2022. Projected sales volumesare dependent on operational performance, weather-related conditions, timing of shipments and other factors detailed in the Cautionary Statement below.

Consolidated Unit Net Cash Costs

Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $1.33 per pound of copper in first-quarter 2022 were in line with the January 2022 estimate of $1.35 per pound and four percent below the first-quarter 2021 average of $1.39 per pound. Compared with the January 2022 estimate, higher sales volumes and by-product credits during first-quarter 2022 offset the impact of increased energy and other input costs.

Assuming average prices of $1,950 per ounce of gold and $19.00 per pound of molybdenum for the remainder of 2022 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for FCX's copper mines are expected to average $1.44 per pound of copper for the year 2022. The increase from the January 2022 estimate of $1.35 per pound of copper primarily reflects higher energy prices, consumables and stronger currency exchange rates in South America, partly offset by higher gold volumes and commodity price assumptions. The impact of price changes on consolidated unit net cash costs would approximate $0.03 per pound of copper for each $100 per ounce change in the average price of gold and $0.02 per pound of copper for each $2 per pound change in the average price of molybdenum for the remainder of 2022. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum.

MINING OPERATIONS

North America Copper Mines. FCX operates 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. In addition to copper, certain of these mines produce molybdenum concentrate, gold and silver. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 72 percent undivided joint venture interest in Morenci using the proportionate consolidation method.

Operating and Development Activities. FCX has substantial reserves and future opportunities in the United States (U.S.), primarily associated with existing mining operations.

FCX continues to increase Lone Star's operating rates to achieve 300 million pounds of copper per year from oxide ores (compared with the initial design capacity of 200 million pounds per year). The oxide project at Lone Star advances the opportunity for development of the underlying, large-scale sulfide resources. FCX is also increasing exploration in the area to support metallurgical testing and mine development planning for a potential significant long-term investment to build additional scale on an economically attractive basis.

FCX is planning an expansion to double the concentrator capacity of the Bagdad operation in northwest Arizona and is engaging stakeholders. FCX is commencing a feasibility study for this project during 2022.

FCX continues to pursue technologies to recover additional copper from its large existing leach stockpiles. FCX has several initiatives ongoing across its North America and South America footprint incorporating new applications, technologies and data analytics. Initial results support the potential for incremental low-cost and low-carbon additions to FCX's production and reserve profile.

2022

2021

Copper (millions of recoverable pounds)

Production

354 353

Sales, excluding purchases Average realized price per pound

381 308

$

4.62 $ 3.88

Molybdenum (millions of recoverable pounds)

Productiona

7 8

Unit net cash costs per pound of copperb

Site production and delivery, excluding adjustments By-product credits

$

2.38 $ 2.04

(0.34) (0.30)

Treatment charges Unit net cash costs

0.09 0.11

$

2.13 $ 1.85

a. Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which include sales of molybdenum produced at the North America copper mines.

b. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page X.

FCX's consolidated copper sales volumes from North America of 381 million pounds in first-quarter 2022 were higher than first-quarter 2021 copper sales volumes of 308 million pounds, reflecting timing of shipments. North America copper sales are estimated to approximate 1.5 billion pounds for the year 2022.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $2.13 per pound of copper in first-quarter 2022 were higher than first-quarter 2021 unit net cash costs of $1.85 per pound, primarily reflecting increased mining and milling rates and higher energy and other input costs, partly offset by higher sales volumes.

Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $2.22 per pound of copper for the year 2022, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $19.00 per pound for the remainder of 2022. North America's average unit net cash costs for the year 2022 would change by approximately $0.03 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2022.

South America Mining. FCX operates two copper mines in South America - Cerro Verde in Peru (in which FCX owns a 53.56 percent interest) and El Abra in Chile (in which FCX owns a 51 percent interest). These operations are consolidated in FCX's financial statements. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.

Operating and Development Activities. During first-quarter 2022, milling rates at Cerro Verde's concentrator facilities averaged 394,400 metric tons of ore per day. Subject to ongoing monitoring of COVID-19 protocols, milling rates at Cerro Verde are currently expected to average approximately 400,000 metric tons of ore per day for the remainder of 2022.

Operating rates at El Abra have returned to pre-COVID-19 levels and increased mining and stacking activities are expected to result in an approximate 30 percent increase in El Abra copper production for the year 2022, compared with the year 2021.

El Abra's large sulfide resource supports a potential major mill project similar to the large-scale concentrator constructed at Cerro Verde in 2015. Technical and economic studies continue to be evaluated to determine the optimal scope and timing for the sulfide project. FCX is engaging stakeholders and preparing data required for submission of a robust permit application, while continuing to monitor potential changes in Chile's regulatory and fiscal matters. FCX will defer major investment decisions pending clarity on Chile's regulatory and fiscal matters.

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