8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2018

FREEPORT-McMoRan INC.

(Exact name of registrant as specified in its charter)

Delaware	001-11307-01	74-2480931
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

333 North Central Avenue
Phoenix, AZ	85004
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (602) 366-8100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR § 240.12b-2).

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. [ ]

Item 2.02. Results of Operations and Financial Condition.

Freeport-McMoRan Inc. (FCX) issued a press release dated July 25, 2018, announcing its second-quarter and six-month 2018 financial and operating results, referencing supplementary schedules (see Exhibit 99.1).

Item 7.01. Regulation FD Disclosure.

The slides presented in connection with FCX’s second-quarter 2018 earnings conference call conducted via the internet on July 25, 2018 are attached hereto as Exhibit 99.2.

The information furnished pursuant to this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Exhibit Title
99.1	Press release dated July 25, 2018, titled “Freeport-McMoRan Reports Second-Quarter and Six-Month 2018 Results” and supplementary schedules.
99.2	Slides presented in connection with FCX’s second-quarter 2018 earnings conference call conducted via the internet on July 25, 2018.

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 hereunto duly authorized.

FREEPORT-McMoRan INC.

By: /s/ C. Donald Whitmire, Jr.

----------------------------------------

C. Donald Whitmire, Jr.

Vice President and Controller -

Financial Reporting    

(authorized signatory and

Principal Accounting Officer)

Date: July 25, 2018

EX-99.1

Freeport-McMoRan

Reports Second-Quarter and Six-Month 2018 Results

▪ Net income attributable to common stock totaled $869 million, $0.59 per share, in second-quarter2018. After adjusting for net gains of $16 million, $0.01 per share, second-quarter2018 adjusted net income attributable to common stock totaled $853 million, $0.58 per share.

▪ Consolidated sales totaled 989 million pounds of copper, 676 thousand ounces of gold and 24 million pounds of molybdenum in second-quarter2018.

▪ Consolidated sales for the year 2018 are expected to approximate 3.8 billion pounds of copper, 2.4 million ounces of gold and 95 million pounds of molybdenum, including 970 million pounds of copper, 700 thousand ounces of gold and 24 million pounds of molybdenum in third-quarter2018.

▪ Average realized prices in second-quarter2018 were $3.08 per pound for copper, $1,274 per ounce for gold and $12.89 per pound for molybdenum.

▪ Average unit net cash costs in second-quarter2018 were $0.96 per pound of copper and are expected to average $1.04 per pound of copper for the year 2018.

▪ Operating cash flows totaled $1.3 billion (net of $0.2 billion in working capital uses and timing of other tax payments) in second-quarter2018 and $2.7 billion (net of $0.2 billion in working capital uses and timing of other tax payments) for the first six months of2018. Based on current sales volume and cost estimates, and assuming average prices of $2.75 per pound for copper, $1,250 per ounce for gold and $11.00 per pound for molybdenum for the second half of 2018, operating cash flows are expected to approximate $4.3 billion (net of $0.2 billion in working capital uses and timing of other tax payments) for the year 2018.

▪ Capital expenditures totaled $0.5 billion (including approximately $0.3 billion for major mining projects) in second-quarter2018 and $0.9 billion (including approximately $0.5 billion for major mining projects) for the first six months of2018. Capital expenditures for the year 2018 are expected to approximate $2.0 billion, including $1.1 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and development of the Lone Star oxide project in Arizona.

▪ In April 2018, FCX repaid $454 million in debt, consisting of the redemption of $404 million of senior notes due 2022 and $50 million of senior notes due 2023.

▪ At June 30, 2018, consolidated debt totaled $11.1 billionand consolidated cash totaled $3.9 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at June 30, 2018.

▪ On June 27, 2018, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on August 1, 2018.

▪ In July 2018, FCX and PT Freeport Indonesia (PT-FI) entered into a non-binding Heads of Agreement with PT Indonesia Asahan Aluminium (Persero) (Inalum) and Rio Tinto to establish a new long-term partnership between FCX, Inalum and the Indonesian government.

Freeport-McMoRan 1

PHOENIX, AZ, July 25, 2018 - Freeport-McMoRan Inc. (NYSE: FCX) reported net income attributable to common stock of $869 million ($0.59 per share) in second-quarter2018 and $1.6 billion ($1.07 per share) for the first six months of 2018, compared with $268 million ($0.18 per share) in second-quarter2017 and $496 million ($0.34 per share) for the first six months of 2017. After adjusting for net gains of $16 million ($0.01 per share), adjusted net income attributable to common stock totaled $853 million ($0.58 per share) in second-quarter2018. Refer to the supplemental schedule, "Adjusted Net Income," on page VII, which is available on FCX's website, "fcx.com," for additional information.

Richard C. Adkerson, President and Chief Executive Officer, said, "Our second quarter results reflect strong performance from our global operations and a continued focus on productivity, cost management and capital discipline. During the first half of 2018, we generated $2.7 billion in cash flow from operations and capital expenditures totaled $0.9 billion, enabling further strengthening of our balance sheet and advancement of initiatives to build value for FCX shareholders. We achieved important progress during the quarter to reach a new long-term partnership structure with the Indonesian government, and we remain focused on completing negotiation and documentation of definitive agreements to restore long-term stability for our Grasberg operations.

Despite the recent decline in copper prices associated with the uncertain impact on the global economy of recent international trade actions, we remain positive on the outlook for copper prices given limitations on supply and the important role of copper in the global economy. To date, we have not experienced a decline in demand for our products, but will be prepared to adjust our plans if necessary to respond to market conditions. Our shareholders are well positioned to benefit from FCX’s global leadership position in copper, supported by a large, high-quality portfolio of long-lived, geographically diverse assets."

SUMMARY FINANCIAL DATA

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
	(in millions, except per share amounts)
Revenuesa,b	$	5,168		$	3,711	$	10,036		$	7,052
Operating incomea	$	1,664		$	686	$	3,123		$	1,283
Net income from continuing operations	$	1,039		$	326	$	1,867		$	594
Net (loss) income from discontinued operationsc	$	(4	)	$	9	$	(15	)	$	47
Net income attributable to common stockd,e	$	869		$	268	$	1,561		$	496
Diluted net income (loss) per share of common stock:
Continuing operations	$	0.59		$	0.18	$	1.08		$	0.31
Discontinued operations	—			—		(0.01		)	0.03
	$	0.59		$	0.18	$	1.07		$	0.34
Diluted weighted-average common shares outstanding	1,458			1,453		1,458			1,453
Operating cash flowsf	$	1,309		$	1,037	$	2,678		$	1,829
Capital expenditures	$	482		$	362	$	884		$	706
At June 30:
Cash and cash equivalents	$	3,859		$	4,667	$	3,859		$	4,667
Total debt, including current portion	$	11,127		$	15,354	$	11,127		$	15,354

a. For segment financial results, refer to the supplemental schedules, "Business Segments," beginning on page IX, which are available on FCX's website, "fcx.com."

b. Includes adjustments to prior period provisionally priced concentrate and cathode copper sales totaling $23 million ($9 million to net income attributable to common stock or $0.01 per share) in second-quarter2018, $(20) million ($(8) million to net income attributable to common stock or $(0.01) per share) in second-quarter2017, $(70) million ($(31) million to net income

Freeport-McMoRan 2

attributable to common stock or $(0.02) per share) for the first six months of 2018 and $81 million ($35 million to net income attributable to common stock or $0.02 per share) for the first six months of 2017. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page VIII, which is available on FCX's website, "fcx.com."

c. Primarily reflects adjustments to the fair value of contingent consideration related to the 2016 sale of FCX's interest in TF Holdings Limited, which will continue to be adjusted through December 31, 2019.

d. Includes net gains of $16 million ($0.01 per share) in second-quarter2018, $27 million ($0.01 per share) in second-quarter2017, $27 million ($0.02 per share) for the first six months of 2018 and $34 million ($0.02 per share) for the first six months of 2017 that are described in the supplemental schedule, "Adjusted Net Income," on page VII, which is available on FCX's website, "fcx.com."

e. 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 IX, which is available on FCX's website, "fcx.com."

f. Includes net working capital (uses) sources and timing of other tax payments of $(192) million in second-quarter2018, $154 million in second-quarter2017, $(213) million for the first six months of 2018 and $343 million for the first six months of 2017.

SUMMARY OPERATING DATA

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Copper (millions of recoverable pounds)
Production	1,014		883		1,966		1,734
Sales, excluding purchases	989		942		1,982		1,751
Average realized price per pound	$	3.08	$	2.65	$	3.10	$	2.65
Site production and delivery costs per pounda	$	1.69	$	1.63	$	1.68	$	1.61
Unit net cash costs per pounda	$	0.96	$	1.19	$	0.97	$	1.28
Gold (thousands of recoverable ounces)
Production	746		353		1,345		592
Sales, excluding purchases	676		432		1,286		614
Average realized price per ounce	$	1,274	$	1,243	$	1,291	$	1,242
Molybdenum (millions of recoverable pounds)
Production	24		23		46		46
Sales, excluding purchases	24		25		48		49
Average realized price per pound	$	12.89	$	9.58	$	12.42	$	9.16

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 costs 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 XII, which are available on FCX's website, "fcx.com."

Consolidated Sales Volumes

Second-quarter2018copper sales of 989 million pounds were higher than the April 2018 estimate of 970 million pounds and higher than second-quarter2017 sales of 942 million pounds, primarily reflecting higher mining and milling rates and higher ore grades in Indonesia.

Second-quarter2018gold sales of 676 thousand ounces were lower than the April 2018 estimate of 700 thousand ounces, primarily because of timing of shipments, and were higher than second-quarter2017 sales of 432 thousand ounces, primarily reflecting higher ore grades and operating rates in Indonesia. Lower second-quarter2017 operating rates in Indonesia included the impact of labor disruptions at PT-FI in the first half of 2017.

Second-quarter2018molybdenum sales of 24 million pounds approximated the April 2018 estimate of 24 million pounds and second-quarter2017 sales of 25 million pounds.

Freeport-McMoRan 3

Sales volumes for the year 2018 are expected to approximate 3.8 billion pounds of copper, 2.4 million ounces of gold and 95 million pounds of molybdenum, including 970 million pounds of copper, 700 thousand ounces of gold and 24 million pounds of molybdenum in third-quarter2018.

Projections for 2018 and other forward looking statements in this release assume resolution of PT-FI’s long-term mining rights or an extension of PT-FI’s temporary special mining license (IUPK) after July 31, 2018. Refer to "Indonesia Mining," beginning on page 7, for further discussion of Indonesia regulatory matters which could have a significant impact on future results.

Consolidated Unit Costs

Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $0.96 per pound of copper in second-quarter2018 were lower than unit net cash costs of $1.19 per pound in second-quarter2017, primarily reflecting higher by-product credits.

Assuming average prices of $1,250 per ounce of gold and $11.00 per pound of molybdenum for the second half of 2018 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for copper mines are expected to average $1.04 per pound of copper for the year 2018. The impact of price changes on consolidated unit net cash costs would approximate $0.015 per pound for each $50 per ounce change in the average price of gold and $0.02 per pound for each $2 per pound change in the average price of molybdenum for the second half of 2018. 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, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. In addition to copper, certain of FCX's North America copper 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 significant undeveloped reserves and resources in North America and a portfolio of potential long-term development projects. Future investments will be undertaken based on the results of economic and technical feasibility studies, and are dependent on market conditions. FCX continues to study opportunities to reduce the capital intensity of its potential long-term development projects.

Through exploration drilling, FCX has identified a significant resource at its wholly owned Lone Star project located near the Safford operation in eastern Arizona. An initial project to develop the Lone Star oxide ores has commenced with first production expected by the end of 2020. Total capital costs, including mine equipment and pre-production stripping, are expected to approximate $850 million and will benefit from the utilization of existing infrastructure at the adjacent Safford operation. As of June 30, 2018, $113 million has been incurred for this project. Production from the Lone Star oxide ores is expected to average approximately 200 million pounds of copper per year with an approximate 20-year mine life. The project also advances the potential for development of a larger-scale district opportunity. FCX is conducting additional drilling following positive exploration results and continues to evaluate longer term opportunities available from the significant long-term sulfide potential in the Lone Star/Safford minerals district. 

Freeport-McMoRan 4

Operating Data.Following is summary consolidated operating data for the North America copper mines for the second quartersand first six months of2018 and 2017:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Copper (millions of recoverable pounds)
Production	354			384			702			776
Sales, excluding purchases	361			408			745			783
Average realized price per pound	$	3.12		$	2.62		$	3.14		$	2.65
Molybdenum (millions of recoverable pounds)
Productiona	8			8			15			17
Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments	$	1.94		$	1.58		$	1.89		$	1.54
By-product credits	(0.25		)	(0.16		)	(0.22		)	(0.15		)
Treatment charges	0.10			0.10			0.10			0.10
Unit net cash costs	$	1.79		$	1.52		$	1.77		$	1.49

a. Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which includes 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 XII, which are available on FCX's website, "fcx.com."

North America's consolidated copper sales volumes of 361 million pounds in second-quarter2018 were lower than second-quarter2017 sales of 408 million pounds, primarily reflecting anticipated lower ore grades and timing of second-quarter2017 shipments. North America copper sales are estimated to approximate 1.45 billion pounds for the year 2018, compared with 1.5 billion pounds in 2017.

Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.79 per pound of copper in second-quarter2018 were higher than unit net cash costs of $1.52 per pound in second-quarter2017, primarily reflecting lower sales volumes and higher mining and milling costs, partly offset by higher by-product credits.

Average unit net cash costs (net of by-product credits) for the North America copper mines are expected to approximate $1.78 per pound of copper for the year 2018, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $11.00 per pound for the second half of 2018. North America's average unit net cash costs for the year 2018 would change by approximately $0.02 per pound for each $2 per pound change in the average price of molybdenum for the second half of 2018.

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. Cerro Verde's expanded operations benefit from its large-scale, long-lived reserves and cost efficiencies. The Cerro Verde expansion project, which achieved capacity operating rates in early 2016, expanded the concentrator facilities' capacity from 120,000 metric tons of ore per day to 360,000 metric tons of ore per day. In March 2018, Cerro Verde received a modified environmental permit allowing it to operate its existing concentrator facilities at rates up to 409,500 metric tons of ore per day. Cerro Verde's concentrator facilities have continued to perform well, with average mill throughput rates of 385,300 metric tons of ore per day for the first six months of 2018.

Freeport-McMoRan 5

Exploration results at El Abra indicate a significant sulfide resource, which could potentially support a major mill project similar to facilities constructed at Cerro Verde. FCX continues to evaluate a large-scale expansion at El Abra to process additional sulfide material and to achieve higher recoveries. Future investments will depend on technical studies, which are being advanced, economic factors and market conditions.

Operating Data. Following is summary consolidated operating data for the South America mining operations for the second quartersand first six months of2018 and 2017:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Copper (millions of recoverable pounds)
Production	313			300			606			604
Sales	312			287			602			596
Average realized price per pound	$	3.07		$	2.67		$	3.09		$	2.65
Molybdenum (millions of recoverable pounds)
Productiona	7			7			13			13
Unit net cash costs per pound of copperb
Site production and delivery, excluding adjustments	$	1.77		$	1.55		$	1.78		$	1.52
By-product credits	(0.22		)	(0.13		)	(0.24		)	(0.16		)
Treatment charges	0.18			0.22			0.19			0.22
Royalty on metals	0.01			0.01			0.01			0.01
Unit net cash costs	$	1.74		$	1.65		$	1.74		$	1.59

a. Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales, which includes sales of        molybdenum produced at Cerro Verde.

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 XII, which are available on FCX's website, "fcx.com."

South America's consolidated copper sales volumes of 312 million pounds in second-quarter2018 were higher than second-quarter2017 sales of 287 million pounds, primarily reflecting higher mining and milling rates and timing of second-quarter2017 shipments, partly offset by lower ore grades. Sales from South America mining are expected to approximate 1.2 billion pounds of copper for the year 2018, compared with 1.2 billion pounds of copper in 2017.

Average unit net cash costs (net of by-product credits) for South America mining of $1.74 per pound of copper in second-quarter2018 were higher than unit net cash costs of $1.65 per pound in second-quarter2017, primarily reflecting higher mining and input costs, partly offset by higher volumes and by-product credits. Average unit net cash costs (net of by-product credits) for South America mining are expected to approximate $1.67 per pound of copper for the year 2018, based on current sales volume and cost estimates and assuming an average price of $11.00 per pound of molybdenum for the second half of 2018.

Cerro Verde and its workers' union are negotiating a new collective labor agreement to replace the agreement that expires August 31, 2018.

Freeport-McMoRan 6

Indonesia Mining.Through its 90.64 percent owned and consolidated subsidiary PT-FI, FCX's assets include one of the world's largest copper and gold deposits at the Grasberg minerals district in Papua, Indonesia. PT-FI operates a proportionately consolidated joint venture, which produces copper concentrate that contains significant quantities of gold and silver.

Regulatory Matters. PT-FI continues to actively engage with Indonesian government officials to address regulatory changes that conflict with its contractual rights in a manner that provides long-term stability for PT-FI’s operations and investment plans, and protects value for FCX’s shareholders.

The parties have been engaged in negotiation and documentation of an IUPK and accompanying documentation for assurances on legal and fiscal terms to provide PT-FI with long-term mining rights through 2041. In addition, the IUPK would provide that PT-FI construct a smelter within five years of reaching a definitive agreement and include agreement for the divestment of 51 percent of the project area interests to Indonesian participants at fair market value.

In July 2018, FCX entered into a Heads of Agreement with the Indonesian state-owned enterprise Inalum and PT-FI’s joint venture partner Rio Tinto. Under the terms of the non-binding agreement, Inalum would acquire for aggregate cash consideration of $3.85 billion all of Rio Tinto's interests associated with its joint venture with PT-FI (Joint Venture) and FCX's interests in PT Indocopper Investama, which owns 9.36 percent of PT-FI.

Inalum would contribute the Rio Tinto interests to PT-FI, which would expand PT-FI’s asset base, in exchange for a 40 percent share ownership in PT-FI, pursuant to arrangements that would enable FCX and existing PT-FI shareholders to retain the economics of the revenue and cost sharing arrangements under the Joint Venture. Following completion of the transaction, Inalum's share ownership would approximate 51 percent of PT-FI (subject to an agreement between shareholders to replicate the Joint Venture economics) and FCX's ownership would approximate 49 percent.

At closing, Rio Tinto would receive $3.5 billion and FCX would receive $350 million in cash proceeds from Inalum. In addition, Rio Tinto would forego in favor of FCX an amount equivalent to Rio Tinto's share of Joint Venture cash flows since January 1, 2018, through closing.

Following completion of the ownership restructuring, FCX does not expect its economic exposure to PT-FI to change significantly. FCX expects its share of future cash flows of the expanded PT-FI asset base, combined with the cash proceeds received in the transaction, to be comparable to its existing share of future cash flows under the current Joint Venture arrangement. FCX would also continue to manage the operations of PT-FI.

The transaction, which is expected to close during the second half of 2018, is subject to the negotiation and documentation of definitive agreements, including purchase and sale agreements, the extension and stability of PT-FI's long-term mining rights through 2041 in a form acceptable to FCX and Inalum, a shareholders’ agreement between FCX and Inalum providing for continuity of FCX’s management of PT-FI’s operations and addressing governance arrangements, and resolution of environmental regulatory matters pending before Indonesia's Ministry of Environment and Forestry satisfactory to the Indonesian government, FCX and Inalum. The terms of these agreements will be subject to approval by the FCX Board of Directors (Board).

In February 2018, PT-FI's export license was extended to February 15, 2019, and in July 2018, PT-FI's temporary IUPK was extended to July 31, 2018. PT-FI is seeking an extension of the temporary IUPK to remain in effect until definitive agreements are complete. Until definitive agreements are reached, PT-FI has reserved all rights under its Contract of Work (COW), including pursuing arbitration under the dispute resolution procedures.

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 has revised its mine plans to extend mining activities in the open pit by approximately six months following results of an economic analysis. PT-FI expects to mine ore from the open pit until transitioning to the Grasberg Block Cave underground mine in the first half of 2019. Lower copper and gold production from Indonesia mining is expected during the transition period in 2019 and 2020.

PT-FI has several projects 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. Substantial progress has been made to prepare for the transition to mining of the Grasberg Block Cave underground mine.

Freeport-McMoRan 7

Mine development activities are sufficiently advanced to commence caving in the first half of 2019. The ore flow and underground rail haulage systems are expected to be fully commissioned and operational in the second half of 2018.

PT-FI has revised its mine plan for the ramp-up of the Deep Mill Level Zone (DMLZ) underground mine following mining-induced seismic activity that began in 2017 and continued during 2018. During second-quarter 2018, PT-FI initiated plans to conduct hydraulic fracturing activities to manage rock stresses and pre-condition the DMLZ for large-scale production. PT-FI's revised mine plans, which will continue to be reviewed, currently project block cave mining activities in the DMLZ to commence in mid-2019 following a period of hydraulic fracturing activities designed to safely manage production. PT-FI continues to expect the DMLZ to reach full production rates of 80,000 metric tons per day in 2022.

Subject to reaching a definitive agreement with the Indonesian government on PT-FI's long-term mining rights, estimated annual capital spending on these projects would average $0.8 billion per year ($0.7 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, the timing of these expenditures continues to be reviewed and could be reduced or deferred significantly.

Operating Data. Following is summary consolidated operating data for the Indonesia mining operations for the second quartersand first six months of2018 and 2017:

	Three Months Ended June 30,							Six Months Ended June 30,
	2018			2017				2018			2017
Copper (millions of recoverable pounds)
Production	347			199				658			354
Sales	316			247				635			372
Average realized price per pound	$	3.05		$	2.67			$	3.07		$	2.64
Gold (thousands of recoverable ounces)
Production	740			348				1,335			580
Sales	671			427				1,274			604
Average realized price per ounce	$	1,274		$	1,243			$	1,291		$	1,242
Unit net cash (credits) costs per pound of coppera
Site production and delivery, excluding adjustments	$	1.33		$	1.77		b	$	1.34		$	1.89		b
Gold and silver credits	(2.76		)	(2.21		)		(2.67		)	(2.10		)
Treatment charges	0.26			0.26				0.25			0.27
Export duties	0.18			0.11				0.16			0.11
Royalty on metals	0.22			0.17				0.22			0.17
Unit net cash (credits) costs	$	(0.77	)	$	0.10			$	(0.70	)	$	0.34

a. For a reconciliation of unit net cash (credits) 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 XII, which are available on FCX's website, "fcx.com."

b. Excludes fixed costs charged directly to production and delivery costs totaling $82 million ($0.33 per pound of copper) in second-quarter2017 and $103 million ($0.28 per pound of copper) for the first six months of2017 associated with workforce reductions.

Indonesia's consolidated sales of 316 million pounds of copper and 671 thousand ounces of gold in second-quarter2018 were higher than second-quarter2017 sales of 247 million pounds of copper and 427 thousand ounces of gold, primarily reflecting higher operating rates and ore grades. Lower second-quarter2017 operating rates included the impact of labor disruptions in the first half of 2017.

Assuming achievement of planned operating rates for the second half of 2018, consolidated sales volumes from Indonesia mining are expected to approximate 1.15 billion pounds of copper and 2.4 million ounces of gold for

Freeport-McMoRan 8

the year 2018, compared with 1.0 billion pounds of copper and 1.5 million ounces of gold for the year 2017. Because of the transition to underground mining, PT-FI's production is expected to be significantly lower in 2019 and 2020, compared to 2018.

A significant portion of PT-FI's costs are fixed and unit costs vary depending on production volumes and other factors. As a result of higher sales volumes and gold and silver credits, Indonesia had unit net cash credits (including gold and silver credits) of $0.77 per pound of copper in second-quarter2018, compared with unit net cash costs of $0.10 per pound in second-quarter2017.     

Assuming an average gold price of $1,250 per ounce for the second half of 2018and achievement of current sales volume and cost estimates, unit net cash credits (including gold and silver credits) for Indonesia mining are expected to approximate $0.58 per pound of copper for the year 2018. Indonesia mining's unit net cash credits for the year 2018 would change by approximately $0.06 per pound for each $50 per ounce change in the average price of gold for the second half of 2018. Because of the fixed nature of a large portion of Indonesia's costs, unit net cash credits/costs vary from quarter to quarter depending on copper and gold volumes.

Indonesia mining's projected sales volumes and unit net cash credits for the year 2018 are dependent on a number of factors, including operational performance, workforce productivity, timing of shipments, and Indonesia regulatory matters, including the resolution of PT-FI's long-term mining rights or an extension of PT-FI's temporary IUPK after July 31, 2018.

Molybdenum Mines.FCX has two wholly owned molybdenum mines - the Henderson underground mine and the Climax open-pit mine - both in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of molybdenum concentrate produced at the Henderson and Climax mines, as well as from FCX's North America and South America copper mines, is processed at FCX's conversion facilities.

Operating and Development Activities.Production from the Molybdenum mines totaled 9 million pounds of molybdenum in second-quarter2018and 8 millionpounds insecond-quarter2017. Refer to summary operating data on page 3 for FCX's consolidated molybdenum sales and average realized prices, which includes sales of molybdenum produced at the Molybdenum mines, and from FCX's North America and South America copper mines.

Unit net cash costs for the Molybdenum mines averaged $8.36 per pound of molybdenum in second-quarter2018 and $7.73 per pound in second-quarter2017. Based on current sales volume and cost estimates, average unit net cash costs for the Molybdenum mines are expected to approximate $8.75 per pound of molybdenum for the year 2018.

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 XII, which are available on FCX's website, "fcx.com."

Mining Exploration Activities.     FCX's mining exploration activities are generally associated with its existing mines, focusing on opportunities to expand reserves and resources to support development of additional future production capacity. A drilling program to further delineate the Lone Star resource continues to indicate additional mineralization in this district. Exploration results continue to indicate opportunities for significant future potential reserve additions in North America and South America. Exploration spending is expected to approximate $90 million for the year 2018.

CASH FLOWS, CASH and DEBT

Operating Cash Flows. FCX generated operating cash flows of $1.3 billion (net of $0.2 billion in working capital uses and timing of other tax payments) in second-quarter2018 and $2.7 billion (net of $0.2 billion in working capital uses and timing of other tax payments) for the first six months of 2018.

Based on current sales volume and cost estimates, and assuming average prices of $2.75 per pound of copper, $1,250 per ounce of gold and $11.00 per pound of molybdenum for the second half of 2018, FCX's consolidated operating cash flows are estimated to approximate $4.3 billion for the year 2018 (net of $0.2 billion in working capital uses and timing of other tax payments). The impact of price changes during the second half of 2018 on operating cash flows would approximate $185 million for each $0.10 per pound change in the average price of

Freeport-McMoRan 9

copper, $60 million for each $50 per ounce change in the average price of gold and $55 million for each $2 per pound change in the average price of molybdenum.

Capital Expenditures.Capital expenditures totaled $0.5 billion in second-quarter2018 (including approximately $0.3 billion for major mining projects) and $0.9 billion for the first six months of 2018 (including approximately $0.5 billion for major mining projects). Capital expenditures are expected to approximate $2.0 billion for the year 2018, including $1.1 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district and development of the Lone Star oxide project.

Cash. Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests' share, taxes and other costs at June 30, 2018 (in billions):

Cash at domestic companies	$	2.9
Cash at international operations	1.0
Total consolidated cash and cash equivalents	3.9
Noncontrolling interests' share	(0.4		)
Cash, net of noncontrolling interests' share	3.5
Withholding taxes and other	(0.1		)
Net cash available	$	3.4

Debt.Following is a summary of total debt and the related weighted-average interest rates at June 30, 2018 (in billions, except percentages):

			Weighted-
			Average
			Interest Rate
Senior Notes	$	9.9	4.6%
Cerro Verde credit facility	1.2		4.0%
Total debt	$	11.1	4.5%

In April 2018, FCX redeemed $404 million of senior notes due 2022 and $50 million of senior notes due 2023, resulting in aggregate annual cash interest savings of approximately $30 million. In second-quarter2018, FCX recorded a net gain on early extinguishment of debt totaling $9 million primarily related to these redemptions.

During April 2018, FCX entered into a new $3.5 billion, five-year, unsecured revolving credit facility with substantially similar structure and terms as its prior facility, which was scheduled to mature in May 2019. At June 30, 2018, FCX had no borrowings, $13 million in letters of credit issued and $3.5 billion available under its revolving credit facility.     

FINANCIAL POLICY

In February 2018, the Board reinstated a cash dividend on FCX common stock. On June 27, 2018, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which will be paid on August 1, 2018, to shareholders of record as of July 13, 2018. The declaration of dividends is at the discretion of the Board and will depend upon FCX’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

Freeport-McMoRan 10

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's second-quarter2018 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing “fcx.com.” A replay of the webcast will be available through Friday, August 24, 2018.

-----------------------------------------------------------------------------------------------------------

FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is the world's largest publicly traded copper producer. FCX’s 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, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America. Additional information about FCX is available on FCX's website at "fcx.com."

Cautionary Statement and Regulation G Disclosure: This press release contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as projections or expectations relating to ore grades and milling rates, production and sales volumes, unit net cash costs, operating cash flows, capital expenditures, the transaction contemplated by the non-binding Heads of Agreement between FCX, PT-FI, Inalum and Rio Tinto, exploration efforts and results, development and production activities and costs, liquidity, tax rates, the impact of copper, gold and molybdenum price changes, the impact of deferred intercompany profits on earnings, reserve estimates, future dividend payments, and share purchases and sales. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” "targets," “intends,” “likely,” “will,” “should,” “to be,” ”potential" and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of dividends is at the discretion of the Board and will depend on FCX's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

    FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, copper, gold and molybdenum; mine sequencing; production rates; potential inventory adjustments; potential impairment of long-lived mining assets; FCX’s ability to complete the transaction contemplated by the non-binding Heads of Agreement, which is subject to the negotiation and documentation of definitive agreements, including purchase and sale agreements, the extension and stability of PT-FI's long-term mining rights through 2041 in a form acceptable to FCX and Inalum, a shareholders’ agreement between FCX and Inalum providing for continuity of FCX’s management of PT-FI’s operations and addressing governance arrangements, and resolution of administrative sanctions and environmental regulatory matters pending before Indonesia’s Ministry of Environment and Forestry satisfactory to the Indonesian government, FCX and Inalum, the terms of all of which will be subject to FCX Board approval; PT-FI’s ability to obtain an extension of its temporary IUPK after July 31, 2018; the potential effects of violence in Indonesia generally and in the province of Papua; industry risks; regulatory changes; political risks; labor relations; weather- and climate-related risks; environmental risks (including resolution of the administrative sanctions and other environmental matters pending before Indonesia's Ministry of Environment and Forestry); litigation results (including the final disposition of Indonesian tax disputes and the outcome of Cerro Verde's royalty dispute with the Peruvian national tax authority); and other factors described in more detail under the heading “Risk Factors” in FCX's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the U.S. Securities and Exchange Commission (SEC) as updated by FCX's subsequent filings with the SEC.

Investors are cautioned that many of the assumptions upon which FCX's forward-looking statements are based are likely to change after the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes, and FCX undertakes no obligation to update any forward-looking statements.

This press release also contains certain financial measures such as unit net cash (credits) costs per pound of copper and molybdenum and adjusted net income, which are not recognized under U.S. generally accepted accounting principles. As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX's consolidated financial statements are in the supplemental schedules of this press release, which are also available on FCX's website, "fcx.com."

Freeport-McMoRan 11

FREEPORT-McMoRan INC.
SELECTED OPERATING DATA
	Three Months Ended June 30,
	2018	2017	2018			2017
MINING OPERATIONS:	Production		Sales
COPPER (millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	182	187	183			196
Bagdad (100%)	48	43	48			43
Safford (100%)	29	37	32			42
Sierrita (100%)	36	40	38			42
Miami (100%)	4	5	4			5
Chino (100%)	42	58	43			63
Tyrone (100%)	13	14	13			17
Other (100%)	—	—	—			—
Total North America	354	384	361			408
South America
Cerro Verde (53.56%)	262	260	258			244
El Abra (51%)	51	40	54			43
Total South America	313	300	312			287
Indonesia
Grasberg (90.64%)b	347	199	316			247
Total	1,014	883	989		c	942		c
Less noncontrolling interests	179	159	176			158
Net	835	724	813			784
Average realized price per pound			$	3.08		$	2.65
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	6	5	5			5
Indonesia (90.64%)b	740	348	671			427
Consolidated	746	353	676			432
Less noncontrolling interests	70	32	63			40
Net	676	321	613			392
Average realized price per ounce			$	1,274		$	1,243
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	3	3	N/A			N/A
Climax (100%)	6	5	N/A			N/A
North America copper mines (100%)a	8	8	N/A			N/A
Cerro Verde (53.56%)	7	7	N/A			N/A
Consolidated	24	23	24			25
Less noncontrolling interests	3	3	4			3
Net	21	20	20			22
Average realized price per pound			$	12.89		$	9.58
a. Amounts are net of Morenci's undivided joint venture partners' interests.
b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.
c. Consolidated sales volumes exclude purchased copper of 90 million pounds in second-quarter 2018 and 62 million pounds in second- quarter 2017.

I

FREEPORT-McMoRan INC.
SELECTED OPERATING DATA (continued)
	Six Months Ended June 30,
	2018	2017	2018			2017
MINING OPERATIONS:	Production		Sales
Copper (millions of recoverable pounds)
(FCX's net interest in %)
North America
Morenci (72%)a	351	368	370			368
Bagdad (100%)	97	83	99			81
Safford (100%)	62	79	68			85
Sierrita (100%)	77	81	82			80
Miami (100%)	8	10	9			10
Chino (100%)	80	120	88			123
Tyrone (100%)	26	34	28			35
Other (100%)	1	1	1			1
Total North America	702	776	745			783
South America
Cerro Verde (53.56%)	505	522	500			512
El Abra (51%)	101	82	102			84
Total South America	606	604	602			596
Indonesia
Grasberg (90.64%)b	658	354	635			372
Total	1,966	1,734	1,982		c	1,751		c
Less noncontrolling interests	346	316	342			314
Net	1,620	1,418	1,640			1,437
Average realized price per pound			$	3.10		$	2.65
Gold (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	10	12	12			10
Indonesia (90.64%)b	1,335	580	1,274			604
Consolidated	1,345	592	1,286			614
Less noncontrolling interests	125	54	120			57
Net	1,220	538	1,166			557
Average realized price per ounce			$	1,291		$	1,242
Molybdenum (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	7	6	N/A			N/A
Climax (100%)	11	10	N/A			N/A
North America (100%)a	15	17	N/A			N/A
Cerro Verde (53.56%)	13	13	N/A			N/A
Consolidated	46	46	48			49
Less noncontrolling interests	6	6	7			6
Net	40	40	41			43
Average realized price per pound			$	12.42		$	9.16
a. Amounts are net of Morenci's undivided joint venture partners' interests.
b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.
c. Consolidated sales volumes exclude purchased copper of 164 million pounds for the first six months of 2018 and 120 million pounds for the first six months of 2017.

II

FREEPORT-McMoRan INC.
SELECTED OPERATING DATA (continued)
	Three Months Ended June 30,		Six Months Ended June 30,
	2018	2017	2018	2017
100% North America Copper Mines
Solution Extraction/Electrowinning (SX/EW) Operations
Leach ore placed in stockpiles (metric tons per day)	689,500	692,700	682,100	697,300
Average copper ore grade (percent)	0.24	0.29	0.26	0.28
Copper production (millions of recoverable pounds)	268	282	530	559
Mill Operations
Ore milled (metric tons per day)	307,000	299,100	297,900	301,400
Average ore grades (percent):
Copper	0.35	0.39	0.35	0.40
Molybdenum	0.02	0.03	0.02	0.03
Copper recovery rate (percent)	89.1	86.7	88.5	86.6
Production (millions of recoverable pounds):
Copper	157	174	308	360
Molybdenum	9	9	16	18
100% South America Mining
SX/EW Operations
Leach ore placed in stockpiles (metric tons per day)	246,700	126,000	207,600	123,100
Average copper ore grade (percent)	0.30	0.36	0.32	0.39
Copper production (millions of recoverable pounds)	75	59	142	125
Mill Operations
Ore milled (metric tons per day)	385,200	347,600	385,300	343,300
Average ore grades (percent):
Copper	0.38	0.44	0.39	0.44
Molybdenum	0.01	0.02	0.01	0.02
Copper recovery rate (percent)	84.4	83.0	81.7	83.8
Production (millions of recoverable pounds):
Copper	238	241	464	479
Molybdenum	7	7	13	13
100% Indonesia Mining
Ore milled (metric tons per day):a
Grasberg open pit	148,400	88,600	136,800	71,200
Deep Ore Zone underground mine	29,200	27,300	34,300	26,800
Deep Mill Level Zone (DMLZ) underground mineb	2,700	3,800	2,700	3,500
Grasberg Block Cave underground mineb	3,800	3,800	3,900	3,200
Big Gossan underground mineb	3,800	—	3,100	800
Total	187,900	123,500	180,800	105,500
Average ore grades:
Copper (percent)	1.06	1.03	1.09	1.08
Gold (grams per metric ton)	1.77	1.16	1.71	1.17
Recovery rates (percent):
Copper	92.7	91.8	92.4	92.0
Gold	86.1	85.3	85.5	85.1
Production (recoverable):
Copper (millions of pounds)	353	221	693	393
Gold (thousands of ounces)	816	347	1,489	588
100% Molybdenum Mines
Ore milled (metric tons per day)	28,900	22,000	26,000	21,800
Average molybdenum ore grade (percent)	0.18	0.20	0.19	0.21
Molybdenum production (millions of recoverable pounds)	9	8	18	16
a. Amounts represent the approximate average daily throughput processed at PT Freeport Indonesia's (PT-FI) mill facilities from each producing mine and from development activities that result in metal production.
b. Targeted production rates once the DMLZ underground mine reaches full capacity are expected to approximate 80,000 metric tons of ore per day in 2022; production from the Grasberg Block Cave underground mine is expected to commence in the first half of 2019, and production from the Big Gossan underground mine restarted in fourth-quarter 2017.

III

FREEPORT-McMoRan INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017a			2018				2017a
	(In Millions, Except Per Share Amounts)
Revenuesb	$	5,168		$	3,711		$	10,036			$	7,052
Cost of sales:
Production and deliveryc	2,915			2,480			5,723				4,668
Depreciation, depletion and amortization	442			450			893				839
Total cost of sales	3,357			2,930			6,616				5,507
Selling, general and administrative expensesc	109			107			240				258
Mining exploration and research expenses	24			19			45				33
Environmental obligations and shutdown costs	59			(21		)	68				4
Net gain on sales of assets	(45		)	(10		)	(56		)		(33		)
Total costs and expenses	3,504			3,025			6,913				5,769
Operating income	1,664			686			3,123				1,283
Interest expense, netc,d	(142		)	(162		)	(293		)		(329		)
Net gain (loss) on early extinguishment of debt	9			(4		)	8				(3		)
Other income (expense), netc	20			(7		)	49			e	—
Income from continuing operations before income taxes and equity in affiliated companies' net earnings (losses)	1,551			513			2,887				951
Provision for income taxesf	(515		)	(186		)	(1,021		)		(360		)
Equity in affiliated companies' net earnings (losses)	3			(1		)	1				3
Net income from continuing operations	1,039			326			1,867				594
Net (loss) income from discontinued operationsg	(4		)	9			(15		)		47
Net income	1,035			335			1,852				641
Net income attributable to noncontrolling interests:
Continuing operations	(166		)	(66		)	(291		)		(141		)
Discontinued operations	—			(1		)	—				(4		)
Net income attributable to FCX common stockh	$	869		$	268		$	1,561			$	496
Basic net income (loss) per share attributable to common stock:
Continuing operations	$	0.60		$	0.18		$	1.08			$	0.31
Discontinued operations	—			—			(0.01		)		0.03
	$	0.60		$	0.18		$	1.07			$	0.34
Diluted net income (loss) per share attributable to common stock:
Continuing operations	$	0.59		$	0.18		$	1.08			$	0.31
Discontinued operations	—			—			(0.01		)		0.03
	$	0.59		$	0.18		$	1.07			$	0.34
Weighted-average common shares outstanding:
Basic	1,449			1,447			1,449				1,447
Diluted	1,458			1,453			1,458				1,453
Dividends declared per share of common stock	$	0.05		$	—		$	0.10			$	—

a. The adoption of accounting guidance related to the presentation of retirement benefits resulted in the reclassification of the non-service components of net periodic benefit cost to other income (expense), net.

b. Revenues include adjustments to provisionally priced concentrate and cathode sales. For a summary of adjustments to provisionally priced copper sales, refer to the supplemental schedule, "Derivative Instruments," beginning on page VIII.

c. Includes net mining and oil and gas charges that are summarized in the supplemental schedule, "Adjusted Net Income," on page VII.

d. Consolidated interest costs (before capitalization) totaled $165 million in second-quarter2018, $192 million in second-quarter2017, $341 million for the first six months of 2018 and $387 million for the first six months of 2017.

e. Includes interest received by PT-FI with the refund of prior years' tax receivables, which is summarized in the supplemental schedule, "Adjusted Net Income," on page VII.

f. For a summary of FCX's provision for income taxes, refer to the supplemental schedule, "Income Taxes," on page VIII.

g. Primarily reflects adjustments to the estimated fair value of contingent consideration related to the 2016 sale of FCX’s interest in TF Holdings Limited (TFHL), which will continue to be adjusted through December 31, 2019.

h. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Refer to the supplemental schedule, "Deferred Profits," on page IX for a summary of net impacts from changes in these deferrals.

IV

FREEPORT-McMoRan INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
	June 30,			December 31,
	2018			2017
	(In Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	3,859		$	4,447
Trade accounts receivable	1,077			1,246
Income and other tax receivables	225			325
Inventories:
Mill and leach stockpiles	1,435			1,422
Materials and supplies, net	1,404			1,305
Product	1,337			1,166
Other current assets	381			270
Held for sale	625			508
Total current assets	10,343			10,689
Property, plant, equipment and mine development costs, net	22,923			22,934
Long-term mill and leach stockpiles	1,371			1,409
Other assets	2,391			2,270
Total assets	$	37,028		$	37,302
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,420		$	2,321
Accrued income taxes	569			565
Current portion of environmental and asset retirement obligations	380			388
Dividends payable	73			—
Current portion of debt	4			1,414
Held for sale	353			323
Total current liabilities	3,799			5,011
Long-term debt, less current portion	11,123			11,703
Deferred income taxes	3,702			3,649
Environmental and asset retirement obligations, less current portion	3,631			3,631
Other liabilities	1,931			2,012
Total liabilities	24,186			26,006
Equity:
Stockholders' equity:
Common stock	158			158
Capital in excess of par value	26,667			26,751
Accumulated deficit	(13,161		)	(14,722		)
Accumulated other comprehensive loss	(464		)	(487		)
Common stock held in treasury	(3,726		)	(3,723		)
Total stockholders' equity	9,474			7,977
Noncontrolling interests	3,368			3,319
Total equity	12,842			11,296
Total liabilities and equity	$	37,028		$	37,302

V

FREEPORT-McMoRan INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six Months Ended June 30,
	2018			2017
	(In Millions)
Cash flow from operating activities:
Net income	$	1,852		$	641
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	893			839
Net gain on sales of assets	(56		)	(33		)
Stock-based compensation	60			44
Payments for Cerro Verde royalty dispute	(21		)	(21		)
Net charges for environmental and asset retirement obligations, including accretion	152			87
Payments for environmental and asset retirement obligations	(110		)	(59		)
Net charges for defined pension and postretirement plans	38			70
Pension plan contributions	(44		)	(56		)
Net (gain) loss on early extinguishment of debt	(8		)	3
Deferred income taxes	61			55
Loss (gain) on disposal of discontinued operations	15			(38		)
Decrease in long-term mill and leach stockpiles	38			80
Non-cash drillship settlements/idle rig costs and other oil and gas adjustments	—			(33		)
Oil and gas contract settlement payments	—			(70		)
Other, net	21			(23		)
Changes in working capital and other tax payments:
Accounts receivable	309			589
Inventories	(468		)	(101		)
Other current assets	(20		)	(2		)
Accounts payable and accrued liabilities	114			(267		)
Accrued income taxes and timing of other tax payments	(148		)	124
Net cash provided by operating activities	2,678			1,829
Cash flow from investing activities:
Capital expenditures:
North America copper mines	(232		)	(67		)
South America	(138		)	(45		)
Indonesia	(449		)	(457		)
Molybdenum mines	(2		)	(2		)
Other	(63		)	(135		)
Intangible water rights and other, net	(86		)	3
Net cash used in investing activities	(970		)	(703		)
Cash flow from financing activities:
Proceeds from debt	352			606
Repayments of debt	(2,297		)	(1,250		)
Cash dividends paid:
Common stock	(73		)	(2		)
Noncontrolling interests	(241		)	(39		)
Stock-based awards net proceeds (payments)	5			(8		)
Debt financing costs and other, net	(23		)	(11		)
Net cash used in financing activities	(2,277		)	(704		)
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents	(569		)	422
Decrease in cash and cash equivalents in assets held for sale	44			7
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	4,631			4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of perioda	$	4,106		$	4,832

a. Includes restricted cash and restricted cash equivalents of $247 million at June 30, 2018, and $165 million at June 30, 2017.

VI

FREEPORT-McMoRan INC.

ADJUSTED NET INCOME

Adjusted net income is intended to provide investors and others with information about FCX's recurring operating performance. This information differs from net income attributable to common stock determined in accordance with U.S. generally 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. FCX's adjusted net income follows, which may not be comparable to similarly titled measures reported by other companies (in millions, except per share amounts).

	Three Months Ended June 30,
	2018											2017
	Pre-tax				After-taxa			Per Share				Pre-tax				After-taxa			Per Share
Net income attributable to common stock	N/A				$	869		$	0.59			N/A				$	268		$	0.18
PT-FI net charges for workforce reductions	—				—			—				(87		)	b	(46		)	(0.03		)
Other net mining credits (charges)	14			c	9			0.01				(9		)		(9		)	(0.01		)
Net oil and gas credits	—				—			—				6				6			—
Net adjustments to environmental obligations and related litigation reserves	(50		)		(50		)	(0.03		)		30				30			0.02
Net gain on sales of assets	45			d	45			0.03				10				10			0.01
Net gain (loss) on early extinguishment of debt	9				9			0.01				(4		)		(4		)	—
Net tax creditse	N/A				7			—				N/A				32			0.02
(Loss) gain on discontinued operationsf	(4		)		(4		)	—				10				8			—
	$	14			$	16		$	0.01		g	$	(44	)		$	27		$	0.01
Adjusted net income attributable to common stock	N/A				$	853		$	0.58			N/A				$	241		$	0.17

	Six Months Ended June 30,
	2018										2017
	Pre-tax				After-taxa			Per Share			Pre-tax				After-taxa			Per Share
Net income attributable to common stock	N/A				$	1,561		$	1.07		N/A				$	496		$	0.34
PT-FI charges for workforce reductions	$	—			$	—		$	—		$	(108	)	b	$	(57	)	$	(0.04	)
Other net mining credits (charges)	10			c	8			0.01			(28		)		(28		)	(0.02		)
Net oil and gas credits	—				—			—			4			h	4			0.01
Net adjustments to environmental obligations and related litigation reserves	(50		)		(50		)	(0.03		)	11				11			0.01
Net gain on sales of assets	56			d	56			0.04			33				33			0.02
Net gain (loss) on early extinguishment of debt	8				8			—			(3		)		(3		)	—
PT-FI interest on tax refund	24			i	13			0.01			—				—			—
Net tax creditse	N/A				7			—			N/A				31			0.02
(Loss) gain on discontinued operationsf	(15		)		(15		)	(0.01		)	51				43			0.03
	$	33			$	27		$	0.02		$	(40	)		$	34		$	0.02		g
Adjusted net income attributable to common stock	N/A				$	1,534		$	1.05		N/A				$	462		$	0.32

a. Reflects impact to FCX net income attributable to common stock (i.e., net of any taxes and noncontrolling interests).

b. Includes charges totaling $82 million in second-quarter 2017 and $103 million for the first six months of 2017 in production and delivery costs and $5 million for the second quarter and first six months of 2017 in selling, general and administrative expenses.

c. Includes net credits totaling $10 million for the second quarter and first six months of 2018 in production and delivery costs and $6 million for the second quarter and first six months of 2018 in other income (expense), net, partly offset by interest expense totaling $2 million in second-quarter 2018 and $6 million for the first six months of 2018.

d. Reflects adjustments to the estimated fair value of the potential $150 million in contingent consideration related to the 2016 sale of onshore California oil and gas properties, which will continue to be adjusted through December 31, 2020.

e. Refer to "Income Taxes" on page VIII, for further discussion of net tax credits.

f. Primarily reflects adjustments to the estimated fair value of the potential $120 million in contingent consideration related to the 2016 sale of FCX’s interest in TFHL, which will continue to be adjusted through December 31, 2019.

g. Does not foot because of rounding.

h. Includes adjustments to the fair value of contingent payments totaling $26 million in production and delivery costs related to the 2016 drillship settlements, partly offset by charges totaling $22 million in selling, general and administrative expenses primarily for contract termination costs.

i. Reflects interest received with the refund of prior years' tax receivables.

VII

FREEPORT-McMoRan INC.

INCOME TAXES

Following is a summary of the approximate amounts used in the calculation of FCX's consolidated income tax provision for the second quartersand first six months of2018 and 2017 (in millions, except percentages):

	Three Months Ended June 30,
	2018							2017
				Income Tax							Income Tax
			Effective	(Provision)						Effective	(Provision)
	Incomea		Tax Rate	Benefit				Incomea		Tax Rate	Benefit
U.S.	$	141	(4)%	$	5		b	$	51	(61)%	$	31		c
South America	276		39%	(108		)	d	126		46%	(58		)
Indonesia	1,012		42%	(429		)		335		40%	(135		)
Eliminations and other	122		N/A	(28		)		1		N/A	(23		)
Rate adjustmente	—		N/A	45				—		N/A	(1		)
Continuing operations	$	1,551	33%	$	(515	)		$	513	36%	$	(186	)

	Six Months Ended June 30,
	2018								2017
					Income Tax							Income Tax
			Effective		(Provision)						Effective	(Provision)
	Incomea		Tax Rate		Benefit				Incomea		Tax Rate	Benefit
U.S.	$	311	(3)%		$	9		b	$	61	(39)%	$	24		c
South America	459		39%		(180		)	d	386		41%	(159		)
Indonesia	1,945		43%		(830		)		487		41%	(202		)
Eliminations and other	172		N/A		(31		)		17		N/A	(24		)
Rate adjustmente	—		N/A		11				—		N/A	1
Continuing operations	$	2,887	35%	f	$	(1,021	)		$	951	38%	$	(360	)

a. Represents income from continuing operations by geographic location before income taxes and equity in affiliated companies' net earnings (losses).

b. The second quarter and first six months of 2018 include a tax credit of $5 million associated with the settlement of a state income tax examination.

c. Includes net tax credits of $32 million in second-quarter2017 and $31 million for the first six months of2017 associated with anticipated recovery of alternative minimum tax credit carryforwards.

d. The second quarter and first six months of 2018 include a tax credit of $5 million ($2 million net of noncontrolling interest) associated with Cerro Verde’s disputed royalties and other related mining taxes.

e. In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its consolidated tax rate.

f. The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which FCX operates. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to FCX's consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of $2.75 per pound for copper, $1,250 per ounce for gold and $11.00 per pound for molybdenum for the second half of 2018, FCX estimates its consolidated effective tax rate for the year 2018 would approximate 38 percent, which would result in a consolidated effective tax rate of approximately 46 percent in third-quarter 2018 and 38 percent in fourth-quarter 2018. FCX expects that its consolidated effective tax rate for the year 2018 would decrease with higher prices.

DERIVATIVE INSTRUMENTS

For the first six months of2018, FCX's mined copper was sold 59 percent in concentrate, 21 percent as cathode and 20 percent as rod from North America operations. Substantially all of FCX's copper concentrate and cathode sales contracts provide final pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted London Metal Exchange (LME) monthly average copper prices. FCX records revenues and invoices customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on provisionally priced 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. LME copper settlement prices averaged $3.12 per pound during second-quarter2018 and settled at $3.01 per pound on June 30, 2018. Because a significant portion of FCX's copper concentrate and cathode sales in any quarterly period usually remain subject to final pricing, the quarter-end forward price is a major determinant of the average recorded copper price for the period. FCX's average realized copper price was $3.08 per pound in second-quarter2018.

VIII

FREEPORT-McMoRan INC.

DERIVATIVE INSTRUMENTS (continued)

Following is a summary of the adjustments to prior period and current period provisionally priced copper sales (in millions, except per share amounts):

	Three Months Ended June 30,
	2018								2017
	Prior Perioda		Current Periodb			Total			Prior Perioda			Current Periodb		Total
Revenues	$	23	$	(37	)	$	(14	)	$	(20	)	$	55	$	35
Net income attributable to common stock	$	9	$	(15	)	$	(6	)	$	(8	)	$	22	$	14
Net income per share of common stock	$	0.01	$	(0.01	)	$	—		$	(0.01	)	$	0.02	$	0.01

a. Reflects adjustments to prior period provisionally priced copper sales (i.e., provisionally priced copper sales at March 31, 2018 and 2017).

b. Reflects adjustments to provisionally priced copper sales in the second quarters of 2018 and 2017.

	Six Months Ended June 30,
	2018									2017
	Prior Perioda			Current Periodb			Total			Prior Perioda		Current Periodb		Total
Revenues	$	(70	)	$	(79	)	$	(149	)	$	81	$	61	$	142
Net income attributable to common stock	$	(31	)	$	(33	)	$	(64	)	$	35	$	26	$	61
Net income per share of common stock	$	(0.02	)	$	(0.02	)	$	(0.04	)	$	0.02	$	0.02	$	0.04

a. Reflects adjustments to prior period provisionally priced copper sales (i.e., provisionally priced copper sales at December 31, 2017 and 2016).

b. Reflects adjustments to provisionally priced copper sales for the first six months of 2018 and 2017.

At June 30, 2018, FCX had provisionally priced copper sales at its copper mining operations totaling 336 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of $3.01 per pound, subject to final pricing over the next several months. FCX estimates that each $0.05 change in the price realized from the June 30, 2018, provisional price recorded would have an approximate $10 million effect on 2018 net income attributable to common stock. The LME copper price settled at $2.80 per pound on July 24, 2018.

DEFERRED PROFITS

FCX defers recognizing profits on sales from its mining operations to Atlantic Copper and on 25 percent of PT-FI's sales to PT Smelting (PT-FI's 25 percent-owned Indonesian smelting unit) until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions (reductions) to net income attributable to common stock totaling $27 million in second-quarter2018, $(51) million in second-quarter2017, $20 million for the first six months of2018 and $(24) million for the first six months of2017. FCX's net deferred profits on its inventories at Atlantic Copper and PT Smelting to be recognized in future periods' net income attributable to common stock totaled $71 million at June 30, 2018. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in FCX's net deferred profits and quarterly earnings.

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 Morenci, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining.

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, the timing of sales to unaffiliated customers and transportation premiums.

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 information 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.

IX

FREEPORT-McMoRan INC.

BUSINESS SEGMENTS (continued)

(In millions)
																					Atlantic			Corporate,
	North America Copper Mines						South America Mining														Copper			Other
			Other				Cerro		Other				Indonesia			Molybdenum			Rod &		Smelting			& Elimi-				FCX
	Morenci		Mines		Total		Verde		Mines		Total		Mining			Mines			Refining		& Refining			nationsa				Total
Three Months Ended June 30, 2018
Revenues:
Unaffiliated customers	$	25	$	13	$	38	$	719	$	171	$	890	$	1,639	b	$	—		$	1,387	$	602		$	612		c	$	5,168
Intersegment	568		641		1,209		100		—		100		1			111			8		—			(1,429		)		—
Production and delivery	298		491		789		445		133		578		425			71			1,389		579			(916		)		2,915
Depreciation, depletion and amortization	44		48		92		109		24		133		172			21			3		7			14				442
Selling, general and administrative expenses	1		—		1		2		—		2		28			—			—		5			73				109
Mining exploration and research expenses	—		—		—		—		—		—		—			—			—		—			24				24
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—			59				59
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—			(45		)		(45		)
Operating income (loss)	250		115		365		263		14		277		1,015			19			3		11			(26		)		1,664
Interest expense, net	1		—		1		16		—		16		—			—			—		6			119				142
Provision for (benefit from) income taxes	—		—		—		102		6		108		429			—			—		—			(22		)		515
Total assets at June 30, 2018	2,819		4,374		7,193		8,630		1,715		10,345		10,911			1,820			278		931			5,550			d	37,028
Capital expenditures	41		99		140		68		3		71		246			1			1		3			20				482
Three Months Ended June 30, 2017
Revenues:
Unaffiliated customers	$	45	$	32	$	77	$	567	$	111	$	678	$	1,065	b	$	—		$	1,046	$	400		$	445		c	$	3,711
Intersegment	478		593		1,071		57		—		57		—			71			6		—			(1,205		)		—
Production and delivery	266		454		720		376		87		463		547		e	58			1,047		400			(755		)		2,480
Depreciation, depletion and amortization	49		69		118		104		21		125		153			19			3		7			25				450
Selling, general and administrative expenses	1		—		1		3		—		3		30		e	—			—		4			69				107
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—			18				19
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—			(21		)		(21		)
Net gain on sale of assets	—		—		—		—		—		—		—			—			—		—			(10		)		(10		)
Operating income (loss)	207		101		308		141		3		144		335			(6		)	2		(11		)	(86		)		686
Interest expense, net	—		1		1		15		—		15		—			—			—		4			142				162
Provision for (benefit from) income taxes	—		—		—		56		2		58		135			—			—		2			(9		)		186
Total assets at June 30, 2017	2,830		4,314		7,144		8,828		1,479		10,307		10,769			1,900			253		739			5,931			d	37,043
Capital expenditures	29		10		39		29		1		30		213			1			1		17			61				362

a. Includes U.S. oil and gas operations, which were previously a reportable segment.

b. Includes PT-FI's sales to PT Smelting totaling $649 million in second-quarter2018 and $536 million in second-quarter2017.

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 assets held for sale, primarily Freeport Cobalt, totaling $625 million at June 30, 2018, and $373 million at June 30, 2017.

e. Includes net charges at PT-FI associated with workforce reductions totaling $82 million in production and delivery costs and $5 million in selling, general and administrative expenses.

X

FREEPORT-McMoRan INC.

BUSINESS SEGMENTS (continued)

(In millions)
																					Atlantic			Corporate
	North America Copper Mines						South America Mining														Copper			Other
			Other				Cerro		Other				Indonesia			Molybdenum			Rod &		Smelting			& Elimi-				FCX
	Morenci		Mines		Total		Verde		Mines		Total		Mining			Mines			Refining		& Refining			nationsa				Total
Six Months Ended June 30, 2018
Revenues:
Unaffiliated customers	$	28	$	28	$	56	$	1,344	$	321	$	1,665	$	3,160	b	$	—		$	2,772	$	1,179		$	1,204		c	$	10,036
Intersegment	1,169		1,330		2,499		202		—		202		53			206			16		2			(2,978		)		—
Production and delivery	588		992		1,580		872		249		1,121		882			138			2,777		1,135			(1,910		)		5,723
Depreciation, depletion and amortization	90		96		186		214		46		260		353			40			5		14			35				893
Selling, general and administrative expenses	2		2		4		4		—		4		67			—			—		11			154				240
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—			44				45
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—			68				68
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—			(56		)		(56		)
Operating income (loss)	517		267		784		456		26		482		1,911			28			6		21			(109		)		3,123
Interest expense, net	2		—		2		33		—		33		—			—			—		11			247				293
Provision for income taxes	—		—		—		170		10		180		830			—			—		1			10				1,021
Capital expenditures	88		144		232		131		7		138		449			2			2		7			54				884
Six Months Ended June 30, 2017
Revenues:
Unaffiliated customers	$	111	$	82	$	193	$	1,207	$	223	$	1,430	$	1,599	b	$	—		$	2,153	$	858		$	819		c	$	7,052
Intersegment	894		1,156		2,050		173		—		173		—			134			14		—			(2,371		)		—
Production and delivery	523		863		1,386		767		169		936		817		d	110			2,156		836			(1,573		)		4,668
Depreciation, depletion and amortization	96		138		234		216		42		258		236			38			5		14			54				839
Selling, general and administrative expenses	1		1		2		5		—		5		60		d	—			—		9			182				258
Mining exploration and research expenses	—		2		2		—		—		—		—			—			—		—			31				33
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—			4				4
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—			(33		)		(33		)
Operating income (loss)	385		234		619		392		12		404		486			(14		)	6		(1		)	(217		)		1,283
Interest expense, net	1		1		2		31		—		31		—			—			—		8			288				329
Provision for (benefit from) income taxes	—		—		—		154		5		159		202			—			—		3			(4		)		360
Capital expenditures	52		15		67		43		2		45		457			2			2		25			108				706

a. Includes U.S. oil and gas operations, which were previously a reportable segment.

b. Includes PT-FI's sales to PT Smelting totaling $1.3 billion for the first six months of 2018 and $794 million for the first six months of 2017.

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 at PT-FI associated with workforce reductions totaling $103 million in production and delivery costs and $5 million in selling, general and administrative expenses.

XI

FREEPORT-McMoRan INC.

PRODUCT REVENUES AND PRODUCTION COSTS

Unit net cash (credits) costs per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of FCX's mining operations expressed on a basis relating to the primary metal product for the respective operations. FCX uses this measure for the same purpose and for monitoring operating performance by its 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 FCX's measures may not be comparable to similarly titled measures reported by other companies.

FCX presents gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. FCX uses the by-product method in its presentation of gross profit per pound of copper because (i) the majority of its revenues are copper revenues, (ii) it mines ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of FCX's costs to revenues from the copper, gold, molybdenum and other metals it produces and (iv) it is the method used by FCX's management and Board to monitor FCX's 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 FCX's metals sales volumes and realized prices change.

FCX shows 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, which are removed from site production and delivery costs in the calculation of unit net cash (credits) costs, consist of items such as stock-based compensation costs, start-up costs, inventory adjustments, long-lived asset impairments, 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 FCX's consolidated financial statements.

XII

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2018
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,126		$	1,126		$	91	$	22	$	1,239
Site production and delivery, before net noncash
and other costs shown below	701			644			68		12		724
By-product credits	(90		)	—			—		—		—
Treatment charges	37			36			—		1		37
Net cash costs	648			680			68		13		761
Depreciation, depletion and amortization (DD&A)	91			83			6		2		91
Noncash and other costs, net	23			21			1		1		23
Total costs	762			784			75		16		875
Other revenue adjustments, primarily for pricing
on prior period open sales	1			1			—		—		1
Gross profit	$	365		$	343		$	16	$	6	$	365
Copper sales (millions of recoverable pounds)	361			361
Molybdenum sales (millions of recoverable pounds)a							8
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	3.12		$	3.12		$	12.13
Site production and delivery, before net noncash
and other costs shown below	1.94			1.78			9.09
By-product credits	(0.25		)	—			—
Treatment charges	0.10			0.10			—
Unit net cash costs	1.79			1.88			9.09
DD&A	0.25			0.23			0.80
Noncash and other costs, net	0.07			0.06			0.15
Total unit costs	2.11			2.17			10.04
Other revenue adjustments, primarily for pricing
on prior period open sales	—			—			—
Gross profit per pound	$	1.01		$	0.95		$	2.09
Reconciliation to Amounts Reported
(In millions)
				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	1,239		$	724		$	91
Treatment charges	(5		)	32			—
Noncash and other costs, net	—			23			—
Other revenue adjustments, primarily for pricing
on prior period open sales	1			—			—
Eliminations and other	12			10			1
North America copper mines	1,247			789			92
Other miningc	4,738			3,042			336
Corporate, other & eliminations	(817		)	(916		)	14
As reported in FCX's consolidated financial statements	$	5,168		$	2,915		$	442

a. Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b. Includes gold and silver product revenues and production costs.

c. Represents the combined total for FCX's other mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XIII

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2017
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,068		$	1,068		$	63	$	23	$	1,154
Site production and delivery, before net noncash
and other costs shown below	645			605			47		14		666
By-product credits	(65		)	—			—		—		—
Treatment charges	40			38			—		2		40
Net cash costs	620			643			47		16		706
DD&A	117			110			5		2		117
Noncash and other costs, net	19			18			1		—		19
Total costs	756			771			53		18		842
Other revenue adjustments, primarily for pricing
on prior period open sales	(2		)	(2		)	—		—		(2		)
Gross profit	$	310		$	295		$	10	$	5	$	310
Copper sales (millions of recoverable pounds)	408			408
Molybdenum sales (millions of recoverable pounds)a							8
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	2.62		$	2.62		$	8.17
Site production and delivery, before net noncash
and other costs shown below	1.58			1.49			6.12
By-product credits	(0.16		)	—			—
Treatment charges	0.10			0.09			—
Unit net cash costs	1.52			1.58			6.12
DD&A	0.29			0.27			0.66
Noncash and other costs, net	0.05			0.04			0.05
Total unit costs	1.86			1.89			6.83
Other revenue adjustments, primarily for pricing
on prior period open sales	—			—			—
Gross profit per pound	$	0.76		$	0.73		$	1.34
Reconciliation to Amounts Reported
(In millions)				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	1,154		$	666		$	117
Treatment charges	(19		)	21			—
Noncash and other costs, net	—			19			—
Other revenue adjustments, primarily for pricing
on prior period open sales	(2		)	—			—
Eliminations and other	15			14			1
North America copper mines	1,148			720			118
Other miningc	3,323			2,515			307
Corporate, other & eliminations	(760		)	(755		)	25
As reported in FCX's consolidated financial statements	$	3,711		$	2,480		$	450

a. Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b. Includes gold and silver product revenues and production costs.

c. Represents the combined total for FCX's other mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XIV

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2018
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	2,337		$	2,337		$	167	$	45	$	2,549
Site production and delivery, before net noncash
and other costs shown below	1,405			1,304			123		25		1,452
By-product credits	(165		)	—			—		—		—
Treatment charges	74			71			—		3		74
Net cash costs	1,314			1,375			123		28		1,526
DD&A	185			171			10		4		185
Noncash and other costs, net	42			40			2		—		42
Total costs	1,541			1,586			135		32		1,753
Other revenue adjustments, primarily for pricing
on prior period open sales	(5		)	(5		)	—		—		(5		)
Gross profit	$	791		$	746		$	32	$	13	$	791
Copper sales (millions of recoverable pounds)	744			744
Molybdenum sales (millions of recoverable pounds)a							15
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	3.14		$	3.14		$	11.52
Site production and delivery, before net noncash
and other costs shown below	1.89			1.75			8.47
By-product credits	(0.22		)	—			—
Treatment charges	0.10			0.10			—
Unit net cash costs	1.77			1.85			8.47
DD&A	0.25			0.23			0.74
Noncash and other costs, net	0.05			0.05			0.12
Total unit costs	2.07			2.13			9.33
Other revenue adjustments, primarily for pricing
on prior period open sales	(0.01		)	(0.01		)	—
Gross profit per pound	$	1.06		$	1.00		$	2.19
Reconciliation to Amounts Reported
(In millions)
				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	2,549		$	1,452		$	185
Treatment charges	(13		)	61			—
Noncash and other costs, net	—			42			—
Other revenue adjustments, primarily for pricing
on prior period open sales	(5		)	—			—
Eliminations and other	24			25			1
North America copper mines	2,555			1,580			186
Other miningc	9,255			6,053			672
Corporate, other & eliminations	(1,774		)	(1,910		)	35
As reported in FCX's consolidated financial statements	$	10,036		$	5,723		$	893

a. Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b. Includes gold and silver product revenues and production costs.

c. Represents the combined total for FCX's other mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XV

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2017
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	2,072		$	2,072		$	122	$	43	$	2,237
Site production and delivery, before net noncash
and other costs shown below	1,207			1,135			91		24		1,250
By-product credits	(122		)	—			—		—		—
Treatment charges	82			79			—		3		82
Net cash costs	1,167			1,214			91		27		1,332
DD&A	233			219			10		4		233
Noncash and other costs, net	52			51			1		—		52
Total costs	1,452			1,484			102		31		1,617
Other revenue adjustments, primarily for pricing
on prior period open sales	4			4			—		—		4
Gross profit	$	624		$	592		$	20	$	12	$	624
Copper sales (millions of recoverable pounds)	782			782
Molybdenum sales (millions of recoverable pounds)a							17
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	2.65		$	2.65		$	7.56
Site production and delivery, before net noncash
and other costs shown below	1.54			1.45			5.62
By-product credits	(0.15		)	—			—
Treatment charges	0.10			0.10			—
Unit net cash costs	1.49			1.55			5.62
DD&A	0.30			0.28			0.59
Noncash and other costs, net	0.07			0.07			0.06
Total unit costs	1.86			1.90			6.27
Other revenue adjustments, primarily for pricing
on prior period open sales	0.01			0.01			—
Gross profit per pound	$	0.80		$	0.76		$	1.29
Reconciliation to Amounts Reported
(In millions)
				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	2,237		$	1,250		$	233
Treatment charges	(28		)	54			—
Noncash and other costs, net	—			52			—
Other revenue adjustments, primarily for pricing
on prior period open sales	4			—			—
Eliminations and other	30			30			1
North America copper mines	2,243			1,386			234
Other miningc	6,361			4,855			551
Corporate, other & eliminations	(1,552		)	(1,573		)	54
As reported in FCX's consolidated financial statements	$	7,052		$	4,668		$	839

a. Reflects sales of molybdenum produced by certain of the North America copper mines to FCX's molybdenum sales company at market-based pricing.

b. Includes gold and silver product revenues and production costs.

c. Represents the combined total for FCX's other mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XVI

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2018
(In millions)	By-Product			Co-Product Method
	Method			Copper			Othera		Total
Revenues, excluding adjustments	$	958		$	958		$	81	$	1,039
Site production and delivery, before net noncash
and other costs shown below	552			513			50		563
By-product credits	(70		)	—			—		—
Treatment charges	59			59			—		59
Royalty on metals	2			2			—		2
Net cash costs	543			574			50		624
DD&A	133			123			10		133
Noncash and other costs, net	17			17			—		17
Total costs	693			714			60		774
Other revenue adjustments, primarily for pricing
on prior period open sales	13			13			—		13
Gross profit	$	278		$	257		$	21	$	278
Copper sales (millions of recoverable pounds)	312			312
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.07		$	3.07
Site production and delivery, before net noncash
and other costs shown below	1.77			1.65
By-product credits	(0.22		)	—
Treatment charges	0.18			0.18
Royalty on metals	0.01			0.01
Unit net cash costs	1.74			1.84
DD&A	0.43			0.40
Noncash and other costs, net	0.05			0.05
Total unit costs	2.22			2.29
Other revenue adjustments, primarily for pricing
on prior period open sales	0.04			0.04
Gross profit per pound	$	0.89		$	0.82
Reconciliation to Amounts Reported
(In millions)
				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	1,039		$	563		$	133
Treatment charges	(59		)	—			—
Royalty on metals	(2		)	—			—
Noncash and other costs, net	—			17			—
Other revenue adjustments, primarily for pricing
on prior period open sales	13			—			—
Eliminations and other	(1		)	(2		)	—
South America mining	990			578			133
Other miningb	4,995			3,253			295
Corporate, other & eliminations	(817		)	(916		)	14
As reported in FCX's consolidated financial statements	$	5,168		$	2,915		$	442

a. Includes silver sales of 1.1 million ounces ($16.38 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b. Represents the combined total for FCX's other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XVII

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2017
(In millions)	By-Product			Co-Product Method
	Method			Copper			Othera		Total
Revenues, excluding adjustments	$	766		$	766		$	47	$	813
Site production and delivery, before net noncash
and other costs shown below	448			424			34		458
By-product credits	(37		)	—			—		—
Treatment charges	63			63			—		63
Royalty on metals	2			2			—		2
Net cash costs	476			489			34		523
DD&A	125			118			7		125
Noncash and other costs, net	5			5			—		5
Total costs	606			612			41		653
Other revenue adjustments, primarily for pricing
on prior period open sales	(14		)	(14		)	—		(14		)
Gross profit	$	146		$	140		$	6	$	146
Copper sales (millions of recoverable pounds)	287			287
Gross profit per pound of copper:
Revenues, excluding adjustments	$	2.67		$	2.67
Site production and delivery, before net noncash
and other costs shown below	1.55			1.47
By-product credits	(0.13		)	—
Treatment charges	0.22			0.22
Royalty on metals	0.01			0.01
Unit net cash costs	1.65			1.70
DD&A	0.44			0.41
Noncash and other costs, net	0.02			0.02
Total unit costs	2.11			2.13
Other revenue adjustments, primarily for pricing
on prior period open sales	(0.05		)	(0.05		)
Gross profit per pound	$	0.51		$	0.49
Reconciliation to Amounts Reported
(In millions)				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	813		$	458		$	125
Treatment charges	(63		)	—			—
Royalty on metals	(2		)	—			—
Noncash and other costs, net	—			5			—
Other revenue adjustments, primarily for pricing
on prior period open sales	(14		)	—			—
Eliminations and other	1			—			—
South America mining	735			463			125
Other miningb	3,736			2,772			300
Corporate, other & eliminations	(760		)	(755		)	25
As reported in FCX's consolidated financial statements	$	3,711		$	2,480		$	450

a. Includes silver sales of 848 thousand ounces ($17.97 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b. Represents the combined total for FCX's other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XVIII

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2018
(In millions)		By-Product			Co-Product Method
		Method			Copper			Othera		Total
Revenues, excluding adjustments		$	1,859		$	1,859		$	167	$	2,026
Site production and delivery, before net noncash
and other costs shown below		1,069			990			102		1,092
By-product credits		(144		)	—			—		—
Treatment charges		117			117			—		117
Royalty on metals		4			4			—		4
Net cash costs		1,046			1,111			102		1,213
DD&A		260			239			21		260
Noncash and other costs, net		32			32			—		32
Total costs		1,338			1,382			123		1,505
Other revenue adjustments, primarily for pricing
on prior period open sales		(37		)	(37		)	—		(37		)
Gross profit		$	484		$	440		$	44	$	484
Copper sales (millions of recoverable pounds)		602			602
Gross profit per pound of copper:
Revenues, excluding adjustments		$	3.09		$	3.09
Site production and delivery, before net noncash
and other costs shown below		1.78			1.64
By-product credits		(0.24		)	—
Treatment charges		0.19			0.19
Royalty on metals		0.01			0.01
Unit net cash costs		1.74			1.84
DD&A		0.43			0.40
Noncash and other costs, net		0.05			0.05
Total unit costs		2.22			2.29
Other revenue adjustments, primarily for pricing
on prior period open sales		(0.06		)	(0.06		)
Gross profit per pound		$	0.81		$	0.74
Reconciliation to Amounts Reported
(In millions)					Production
		Revenues			and Delivery			DD&A
Totals presented above		$	2,026		$	1,092		$	260
Treatment charges		(117		)	—			—
Royalty on metals		(4		)	—			—
Noncash and other costs, net		—			32			—
Other revenue adjustments, primarily for pricing
on prior period open sales		(37		)	—			—
Eliminations and other		(1		)	(3		)	—
South America mining		1,867			1,121			260
Other miningb	—	9,943			6,512			598
Corporate, other & eliminations	—	(1,774		)	(1,910		)	35
As reported in FCX's consolidated financial statements		$	10,036		$	5,723		$	893

a. Includes silver sales of 2.1 million ounces ($16.45 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b. Represents the combined total for FCX's other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XIX

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2017
(In millions)	By-Product			Co-Product Method
	Method			Copper			Othera		Total
Revenues, excluding adjustments	$	1,581		$	1,581		$	115	$	1,696
Site production and delivery, before net noncash
and other costs shown below	905			850			77		927
By-product credits	(93		)	—			—		—
Treatment charges	130			130			—		130
Royalty on metals	4			4			—		4
Net cash costs	946			984			77		1,061
DD&A	258			241			17		258
Noncash and other costs, net	10			10			—		10
Total costs	1,214			1,235			94		1,329
Other revenue adjustments, primarily for pricing
on prior period open sales	41			41			—		41
Gross profit	$	408		$	387		$	21	$	408
Copper sales (millions of recoverable pounds)	596			596
Gross profit per pound of copper:
Revenues, excluding adjustments	$	2.65		$	2.65
Site production and delivery, before net noncash
and other costs shown below	1.52			1.42
By-product credits	(0.16		)	—
Treatment charges	0.22			0.22
Royalty on metals	0.01			0.01
Unit net cash costs	1.59			1.65
DD&A	0.43			0.40
Noncash and other costs, net	0.02			0.02
Total unit costs	2.04			2.07
Other revenue adjustments, primarily for pricing
on prior period open sales	0.07			0.07
Gross profit per pound	$	0.68		$	0.65
Reconciliation to Amounts Reported
(In millions)				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	1,696		$	927		$	258
Treatment charges	(130		)	—			—
Royalty on metals	(4		)	—			—
Noncash and other costs, net	—			10			—
Other revenue adjustments, primarily for pricing
on prior period open sales	41			—			—
Eliminations and other	—			(1		)	—
South America mining	1,603			936			258
Other miningb	7,001			5,305			527
Corporate, other & eliminations	(1,552		)	(1,573		)	54
As reported in FCX's consolidated financial statements	$	7,052		$	4,668		$	839

a. Includes silver sales of 1.8 million ounces ($16.95 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing.

b. Represents the combined total for FCX's other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XX

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2018
(In millions)	By-Product			Co-Product Method
	Method			Copper			Gold			Silvera		Total
Revenues, excluding adjustments	$	965		$	965		$	855		$	17	$	1,837
Site production and delivery, before net noncash
and other credits shown below	420			221			195			4		420
Gold and silver credits	(871		)	—			—			—		—
Treatment charges	82			43			38			1		82
Export duties	55			29			26			—		55
Royalty on metals	71			36			34			1		71
Net cash (credits) costs	(243		)	329			293			6		628
DD&A	172			90			80			2		172
Noncash and other credits, net	(3		)	(1		)	(2		)	—		(3		)
Total (credits) costs	(74		)	418			371			8		797
Other revenue adjustments, primarily for pricing
prior period open sales	12			12			(2		)	1		11
PT Smelting intercompany loss	(8		)	(4		)	(4		)	—		(8		)
Gross profit	$	1,043		$	555		$	478		$	10	$	1,043
Copper sales (millions of recoverable pounds)	316			316
Gold sales (thousands of recoverable ounces)							671
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.05		$	3.05		$	1,274
Site production and delivery, before net noncash
and other credits shown below	1.33			0.70			291
Gold and silver credits	(2.76		)	—			—
Treatment charges	0.26			0.14			57
Export duties	0.18			0.09			38
Royalty on metals	0.22			0.11			51
Unit net cash (credits) costs	(0.77		)	1.04			437
DD&A	0.54			0.28			119
Noncash and other credits, net	(0.01		)	—			(2		)
Total unit (credits) costs	(0.24		)	1.32			554
Other revenue adjustments, primarily for pricing
prior period open sales	0.04			0.04			(2		)
PT Smelting intercompany loss	(0.03		)	(0.01		)	(6		)
Gross profit per pound/ounce	$	3.30		$	1.76		$	712
Reconciliation to Amounts Reported
(In millions)				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	1,837		$	420		$	172
Treatment charges	(82		)	—			—
Export duties	(55		)	—			—
Royalty on metals	(71		)	—			—
Noncash and other credits, net	—			(3		)	—
Other revenue adjustments, primarily for pricing
prior period open sales	11			—			—
PT Smelting intercompany loss	—			8			—
Indonesia mining	1,640			425			172
Other miningb	4,345			3,406			256
Corporate, other & eliminations	(817		)	(916		)	14
As reported in FCX's consolidated financial statements	$	5,168		$	2,915		$	442

a. Includes silver sales of 1.1 million ounces ($15.89 per ounce average realized price).

b. Represents the combined total for FCX's other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XXI

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Three Months Ended June 30, 2017
(In millions)	By-Product				Co-Product Method
	Method				Copper			Gold			Silvera		Total
Revenues, excluding adjustments	$	660			$	660		$	531		$	14	$	1,205
Site production and delivery, before net noncash
and other costs shown below	437				239			193			5		437
Gold and silver credits	(547		)		—			—			—		—
Treatment charges	65				35			29			1		65
Export duties	27				15			12			—		27
Royalty on metals	43				22			20			1		43
Net cash costs	25				311			254			7		572
DD&A	153				84			67			2		153
Noncash and other costs, net	84			b	46			37			1		84
Total costs	262				441			358			10		809
Other revenue adjustments, primarily for pricing
prior period open sales	(7		)		(7		)	2			—		(5		)
PT Smelting intercompany loss	(26		)		(15		)	(11		)	—		(26		)
Gross profit	$	365			$	197		$	164		$	4	$	365
Copper sales (millions of recoverable pounds)	247				247
Gold sales (thousands of recoverable ounces)								427
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	2.67			$	2.67		$	1,243
Site production and delivery, before net noncash
and other costs shown below	1.77				0.97			451
Gold and silver credits	(2.21		)		—			—
Treatment charges	0.26				0.14			67
Export duties	0.11				0.06			28
Royalty on metals	0.17				0.09			47
Unit net cash costs	0.10				1.26			593
DD&A	0.62				0.34			158
Noncash and other costs, net	0.34			b	0.18			86
Total unit costs	1.06				1.78			837
Other revenue adjustments, primarily for pricing
prior period open sales	(0.03		)		(0.03		)	5
PT Smelting intercompany loss	(0.10		)		(0.06		)	(26		)
Gross profit per pound/ounce	$	1.48			$	0.80		$	385
Reconciliation to Amounts Reported
(In millions)					Production
	Revenues				and Delivery			DD&A
Totals presented above	$	1,205			$	437		$	153
Treatment charges	(65		)		—			—
Export duties	(27		)		—			—
Royalty on metals	(43		)		—			—
Noncash and other costs, net	—				84			—
Other revenue adjustments, primarily for pricing
prior period open sales	(5		)		—			—
PT Smelting intercompany loss	—				26			—
Indonesia mining	1,065				547			153
Other miningc	3,406				2,688			272
Corporate, other & eliminations	(760		)		(755		)	25
As reported in FCX's consolidated financial statements	$	3,711			$	2,480		$	450

a. Includes silver sales of 851 thousand ounces ($16.26 per ounce average realized price).

b. Includes $82 million ($0.33 per pound of copper) of costs charged directly to production and delivery costs as a result of the impact of workforce reductions.

c. Represents the combined total for FCX's other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XXII

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2018
(In millions)	By-Product			Co-Product Method
	Method			Copper			Gold			Silvera		Total
Revenues, excluding adjustments	$	1,949		$	1,949		$	1,644		$	36	$	3,629
Site production and delivery, before net noncash
and other costs shown below	853			458			387			8		853
Gold and silver credits	(1,697		)	—			—			—		—
Treatment charges	160			86			72			2		160
Export duties	101			54			46			1		101
Royalty on metals	138			73			64			1		138
Net cash (credits) costs	(445		)	671			569			12		1,252
DD&A	353			189			160			4		353
Noncash and other costs, net	12			7			5			—		12
Total (credits) costs	(80		)	867			734			16		1,617
Other revenue adjustments, primarily for pricing
on prior period open sales	(34		)	(34		)	17			—		(17		)
PT Smelting intercompany loss	(17		)	(9		)	(8		)	—		(17		)
Gross profit	$	1,978		$	1,039		$	919		$	20	$	1,978
Copper sales (millions of recoverable pounds)	635			635
Gold sales (thousands of recoverable ounces)							1,274
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.07		$	3.07		$	1,291
Site production and delivery, before net noncash
and other costs shown below	1.34			0.72			304
Gold and silver credits	(2.67		)	—			—
Treatment charges	0.25			0.14			57
Export duties	0.16			0.09			36
Royalty on metals	0.22			0.11			50
Unit net cash (credits) costs	(0.70		)	1.06			447
DD&A	0.55			0.30			125
Noncash and other costs, net	0.02			0.01			4
Total unit (credits) costs	(0.13		)	1.37			576
Other revenue adjustments, primarily for pricing
on prior period open sales	(0.05		)	(0.05		)	13
PT Smelting intercompany loss	(0.04		)	(0.01		)	(7		)
Gross profit per pound/ounce	$	3.11		$	1.64		$	721
Reconciliation to Amounts Reported
(In millions)				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	3,629		$	853		$	353
Treatment charges	(160		)	—			—
Export duties	(101		)	—			—
Royalty on metals	(138		)	—			—
Noncash and other costs, net	—			12			—
Other revenue adjustments, primarily for pricing
on prior period open sales	(17		)	—			—
PT Smelting intercompany loss	—			17			—
Indonesia mining	3,213			882			353
Other miningb	8,597			6,751			505
Corporate, other & eliminations	(1,774		)	(1,910		)	35
As reported in FCX's consolidated financial statements	$	10,036		$	5,723		$	893

a. Includes silver sales of 2.3 million ounces ($15.93 per ounce average realized price).

b. Represents the combined total for FCX's other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XXIII

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Six Months Ended June 30, 2017
(In millions)	By-Product				Co-Product Method
	Method				Copper			Gold		Silvera		Total
Revenues, excluding adjustments	$	982			$	982		$	752	$	21	$	1,755
Site production and delivery, before net noncash
and other costs shown below	702				393			301		8		702
Gold and silver credits	(782		)		—			—		—		—
Treatment charges	100				56			43		1		100
Export duties	41				23			18		—		41
Royalty on metals	63				34			28		1		63
Net cash costs	124				506			390		10		906
DD&A	236				132			101		3		236
Noncash and other costs, net	116			b	65			49		2		116
Total costs	476				703			540		15		1,258
Other revenue adjustments, primarily for pricing
on prior period open sales	39				39			9		—		48
PT Smelting intercompany profit	1				1			—		—		1
Gross profit	$	546			$	319		$	221	$	6	$	546
Copper sales (millions of recoverable pounds)	372				372
Gold sales (thousands of recoverable ounces)								604
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	2.64			$	2.64		$	1,242
Site production and delivery, before net noncash
and other costs shown below	1.89				1.05			497
Gold and silver credits	(2.10		)		—			—
Treatment charges	0.27				0.15			71
Export duties	0.11				0.06			29
Royalty on metals	0.17				0.10			47
Unit net cash costs	0.34				1.36			644
DD&A	0.63				0.35			167
Noncash and other costs, net	0.32			b	0.18			82
Total unit costs	1.29				1.89			893
Other revenue adjustments, primarily for pricing
on prior period open sales	0.11				0.11			15
PT Smelting intercompany profit	—				—			1
Gross profit per pound/ounce	$	1.46			$	0.86		$	365
Reconciliation to Amounts Reported
(In millions)					Production
	Revenues				and Delivery			DD&A
Totals presented above	$	1,755			$	702		$	236
Treatment charges	(100		)		—			—
Export duties	(41		)		—			—
Royalty on metals	(63		)		—			—
Noncash and other costs, net	—				116			—
Other revenue adjustments, primarily for pricing
on prior period open sales	48				—			—
PT Smelting intercompany profit	—				(1		)	—
Indonesia mining	1,599				817			236
Other miningc	7,005				5,424			549
Corporate, other & eliminations	(1,552		)		(1,573		)	54
As reported in FCX's consolidated financial statements	$	7,052			$	4,668		$	839

a. Includes silver sales of 1.3 million ounces ($16.66 per ounce average realized price).

b. Includes $103 million ($0.28 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 FCX's other mining operations, including North America copper mines, South America mining, Molybdenum mining, Rod & Refining and Atlantic Copper Smelting and Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX.

XXIV

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
	Three Months Ended June 30,
(In millions)	2018			2017
Revenues, excluding adjustmentsa	$	119		$	78
Site production and delivery, before net noncash  and other costs shown below	71			56
Treatment charges and other	8			7
Net cash costs	79			63
DD&A	21			19
Noncash and other costs, net	—			2
Total costs	100			84
Gross profit (loss)	$	19		$	(6	)
Molybdenum sales (millions of recoverable pounds)a	9			8
Gross profit (loss) per pound of molybdenum:
Revenues, excluding adjustmentsa	$	12.72		$	9.57
Site production and delivery, before net noncash  and other costs shown below	7.51			6.88
Treatment charges and other	0.85			0.85
Unit net cash costs	8.36			7.73
DD&A	2.24			2.32
Noncash and other costs, net	0.05			0.27
Total unit costs	10.65			10.32
Gross profit (loss) per pound	$	2.07		$	(0.75	)
Reconciliation to Amounts Reported
(In millions)
				Production
Three Months Ended June 30, 2018	Revenues			and Delivery			DD&A
Totals presented above	$	119		$	71		$	21
Treatment charges and other	(8		)	—			—
Noncash and other costs, net	—			—			—
Molybdenum mines	111			71			21
Other miningb	5,874			3,760			407
Corporate, other & eliminations	(817		)	(916		)	14
As reported in FCX's consolidated financial statements	$	5,168		$	2,915		$	442
Three Months Ended June 30, 2017
Totals presented above	$	78		$	56		$	19
Treatment charges and other	(7		)	—			—
Noncash and other costs, net	—			2			—
Molybdenum mines	71			58			19
Other miningb	4,400			3,177			406
Corporate, other & eliminations	(760		)	(755		)	25
As reported in FCX's consolidated financial statements	$	3,711		$	2,480		$	450

a. Reflects sales of the Molybdenum mines' production to FCX's 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, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

b. Represents the combined total for FCX's other mining operations, including North America copper mines, South America mining, Indonesia mining, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX. Also includes amounts associated with 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.

XXV

FREEPORT-McMoRan INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs
	Six Months Ended June 30,
(In millions)	2018			2017
Revenues, excluding adjustmentsa	$	221		$	148
Site production and delivery, before net noncash  and other costs shown below	136			107
Treatment charges and other	15			14
Net cash costs	151			121
DD&A	40			38
Noncash and other costs, net	2			3
Total costs	193			162
Gross profit (loss)	$	28		$	(14	)
Molybdenum sales (millions of recoverable pounds)a	18			16
Gross profit (loss) per pound of molybdenum:
Revenues, excluding adjustmentsa	$	12.38		$	9.07
Site production and delivery, before net noncash  and other costs shown below	7.61			6.53
Treatment charges and other	0.85			0.85
Unit net cash costs	8.46			7.38
DD&A	2.24			2.34
Noncash and other costs, net	0.10			0.21
Total unit costs	10.80			9.93
Gross profit (loss) per pound	$	1.58		$	(0.86	)
Reconciliation to Amounts Reported
(In millions)
				Production
Six Months Ended June 30, 2018	Revenues			and Delivery			DD&A
Totals presented above	$	221		$	136		$	40
Treatment charges and other	(15		)	—			—
Noncash and other costs, net	—			2			—
Molybdenum mines	206			138			40
Other miningb	11,604			7,495			818
Corporate, other & eliminations	(1,774		)	(1,910		)	35
As reported in FCX's consolidated financial statements	$	10,036		$	5,723		$	893
Six Months Ended June 30, 2017
Totals presented above	$	148		$	107		$	38
Treatment charges and other	(14		)	—			—
Noncash and other costs, net	—			3			—
Molybdenum mines	134			110			38
Other miningb	8,470			6,131			747
Corporate, other & eliminations	(1,552		)	(1,573		)	54
As reported in FCX's consolidated financial statements	$	7,052		$	4,668		$	839

a. Reflects sales of the Molybdenum mines' production to FCX's 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, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

b. Represents the combined total for FCX's other mining operations, including North America copper mines, South America mining, Indonesia mining, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in the supplemental schedule, "Business Segments," beginning on page IX. Also includes amounts associated with 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.

XXVI

EX-99.2