A：The company is addressing challenges encountered with material handling bottlenecks and issues with the ramp-up at Grasburg. Initial production blocks 2 and 3 in the block cave were ramped up, marking an important milestone. The company is working on addressing issues and adapting to these challenges with urgency and determination.

A：Copper plays a crucial role in the modern economy, particularly due to its increasing demand for electrification. Copper prices have averaged over $5.80 per pound year-to-date, with an all-time high exceeding $6 per pound in the first quarter. Rising copper demand is linked to the need for power grids to support new technologies. Recent reports indicate a resurgence of demand in China with significant power grid spending and draws on Chinese exchanges. The market is expected to require additional copper supplies to meet growing demand.

A：In the United States, production was above the year-ago quarter but slightly lower sequentially compared to the fourth quarter of 2025. The operating teams are focused on improving unplanned downtime and achieving maximum output. A recent improvement in mining rates, particularly at Morenci, is expected to translate into higher copper production over time. South America's Cerro Verde operation had a good quarter despite challenges, with the team navigating through severe flooding and mill efficiency issues. The company continues to expect stable production levels at Cerro Verde and some growth at Al Labra, a project in Chile. The team is conducting testing and working on an environmental impact statement for a major expansion at Al Labra, which is expected to transform it into a large-scale contributor within the company's portfolio.

A：The innovative leach project is showing real promise. The company is deploying an internally developed additive and conducting pilot tests to increase the temperature of stockpiles to enhance recoveries. The goal is to scale the operation to 150,000 pounds per annum in a short timeframe, which is expected to unlock the path to 500,000 pounds per annum. The company is also focusing on incorporating innovation into basic mining practices and sees great potential for leveraging tools like AI.

A：The Glassbird block cave update includes commencing limited mining in March 2025 in production block 1, which is closer to the surface. Production blocks 2 and 3 were temporarily suspended in September 2025 to install concrete plugs and ensure no surface connection. After completing the projects and regaining access, inspections and sampling were conducted, revealing that the wet material was associated with surface water. A significant challenge is handling the increase in wet material, requiring modifications to the material handling systems for train loading due to changes in ore conditions. The team is working on installing specialized equipment and testing it over the past few years in anticipation of potential changes in ore conditions. The modifications to the material handling systems are expected to be addressed by mid-2027.

A：The current forecast indicates that production rates at the Grasberg mine are expected to be limited to approximately 60,000 tons per day from production blocks 2 and 3 in the second half of 2026, which will increase to the 100,000 tons per day range by mid-2027 as modifications to the loading infrastructure are completed over the next several months.

A：The mine layout shows that mining occurs on the extraction level, but the issue is with the ore being sent to the haulages level through ore shoot passes. The bottleneck is related to the shoots used to load automated trains at the haulages level. To address this, the company is installing robust equipment to regulate the flow of wet material into the rail cars, as illustrated by the photos and descriptions of the current chute design and replacement equipment.

A：The challenges at the Grasberg mine have led to a revised five-year production forecast, which reflects an approximate 9% reduction in copper and 7% in gold production over the five years, with the largest impacts in 2026 and 2027. However, it is mentioned that not all of the production is lost and is expected to be recovered over time. The team is confident in their ability to address the current bottlenecks and plans to optimize production schedules.

A：Freeport has organic growth opportunities arising from their known resources and experience in established jurisdictions. Projects in Indonesia benefit from high gold content and the potential for leveraging existing infrastructure. The company is using innovative approaches, such as the high potential, low-cost innovative Leach initiative, to improve efficiencies, reduce costs, and shorten project lead times. They are testing projects like the injection of heated solutions into stockpiles, expecting significant recovery gains, with plans to scale these initiatives and reach production rates of up to £400 million per annum by 2030.

A：The expansion opportunity at the Baghdad mine is advancing toward an investment decision. Engineering, retesting of capital cost estimates, and economic evaluations are ongoing, along with working with vendors for pricing and major component procurement. The company is also advancing tailings infrastructure to enhance project optionality. There are no permitting hurdles, and substantial planning and early works have been completed, allowing for a potential three to four-year timeframe to complete the project.

A：At La Herradura, there is a significant opportunity for a large-scale expansion with the potential to approach the size of the large deposit at Ferro Verde. The project is being positively received by stakeholders and the government, and efforts are in progress for timely review. In Indonesia, the company is working toward low-cost, long-term production with a project that is viewed positively by stakeholders, aiming to sustain a low-cost, long-term production profile in the prolific district.

A：Freeport is enhancing its US business through innovation, automation, and investment in expanded facilities. The goal is to add production at a low incremental cost and improve profitability and resiliency. This strategy is particularly aimed at the American copper market, where Freeport is the largest contributor. Initiatives are targeted to reduce costs and improve the overall profitability and value of the US business.

A：The three-year outlook for sales volumes of copper, gold, and molybdenum incorporates an adjusted ramp-up schedule for Grasberg, with the primary change from prior estimates being the timing nature of the adjustments. Volumes are expected to grow in 2027 and 2028 as Grasberg recovers fully. Second half volumes are projected to be approximately 30% higher for copper and 50% higher for gold compared to the first half, which is expected to drive earnings and cash flow.

A：The company is experiencing renewed cost pressures due to the increase in the price of diesel fuel used to support hauled trucks in the Americas and for a portion of its power plants in Indonesia. The sharp rise in diesel prices in March led to an approximate $500 million cost increase on an annualized basis.

A：The company is monitoring the situation carefully and has incorporated updated assumptions for higher gold and molybdenum prices into its forecast. It is also hedged against sulfuric acid market volatility as it does not have significant exposure to the spot market.

A：The updated outlook for net unit costs is expected to average $95 cents per pound of copper for the year, compared to the prior estimate of $75 per pound. The primary driver of the change reflects the lower contribution of grades.

A：The company's EBITDA is highly leveraged to copper prices, with each ounce per pound change equating to approximately $400 million in annual EBITDA in the 2027 to 2028 period.

A：The forecast for capital expenditures is similar to prior estimates, with a projected outlay of $4.3 billion in 2026 and $4.5 billion in 2027. Discretionary projects are expected to cost approximately $1.6 to $1.7 billion per year during these years.

A：The company's financial policy priorities include maintaining a strong balance sheet, returning cash to shareholders, and investing in value-enhancing growth projects. The balance sheet is solid with investment-grade ratings, strong credit metrics, and flexibility within debt targets to fund projects.

A：The team is focused on installing the necessary equipment, such as regulators, to address the issue and has it on-site and on order. They aim to meet the execution timetable and have strategies to shorten the construction cycle and optimize the installation process.

A：The potential risks include delays in receiving materials and construction delays, which the company has managed through the plan in place. However, there could be unforeseen challenges as the ramp-up continues and the material type is adjusted.

A：Yes, the new regulators are designed to handle a range of materials and can shut off flow if necessary, even with drier material. The system is flexible and robust, and the company is accelerating the installation of this system to handle different types of material encountered during mining.

A：Water accumulation in the mine is primarily due to rainfall on broken rock in the subsidence zone, which creates a small amount of moisture that can quickly convert dry material to a wetter state. To address this issue, initiatives include enhanced drainage systems. Currently, a comprehensive drainage plant from the surface in the open pit is in place, and additional surface drainage is being pursued. Drilling into broken rock above Pd 1 has shown initial indications of accessing water, with plans for bigger diameter drills to increase efficiency.

A：Before the mud rush incident, 30% of draw points were wet, and now the number has risen to 45%. There is variability around this number, sometimes reaching as high as 35% or as low as 25%. This variability has impacted production because each panel's production is limited by the lowest ratio until enhanced material handling systems are installed. The transition from dry to wet is dynamic and has been a focus during the ramp-up phase, causing some panels to go from dry to wet or vice versa.

A：The issues with an excessive number of wet draw points were not identified as a problem just a few weeks ago, contrary to a media report that indicated Freeport was ahead of schedule in the Blockhead ramp. Recent assessments have revealed that out of 23 draw points, 10 do not meet the required ratio, which was not evident from the original data. This has caused a derailment in production as the entire panel's output is limited by the poorest-performing draw points.

A：A long-term solution is being developed to address the recent forecast adjustments and production variability. This solution is positive and will provide the company with the flexibility needed to manage such situations in the future. Although details are not fully provided, the implementation of this solution is anticipated to be executed soon and is expected to offer a flexible response to ongoing challenges.

A：A new model has been developed to predict the future wet to dry ratio at Grasberg throughout the life of the mine. This model incorporates factors such as material characteristics and the movement of water through the broken rock. The model has generally predicted a 2 to 1 ratio of dry to wet, which has been a key component of mine planning. This model has been in development for a while and has now been validated through recent operational data.

A：The use of new additives and precision leaching is expected to increase production efficiency and drive the cost towards the 800 million guide incremental for leaching results. With ongoing operational work such as adding irrigation lines and deploying precision leaching techniques, the company is targeting a range between 250 to 300 million pounds. The combination of these initiatives is designed to optimize production and align with the cost targets for North America.

A：The combination of using an additive with heat can lead to significant benefits, such as increased efficiency, resulting in 1 plus 1 equating to 2.5 or three. Raising the temperature of the stockpile is expected to add substantial volumes to the process, which, when combined with the use of additives, can lead to significant production increases. This is particularly important in the ramp-up rates at the Morenci project and the pilot testing of heating on a raffin 8 stockpile. The aim is to explore the potential for geothermal heat at the Morenci site, which could be a low-cost alternative to using natural gas as the current heat source.

A：The efforts to increase temperatures in the stockpiles and implement new technologies are being led by Hoy Stevens and his team. A pilot project is currently in progress using calibri heat models, and a larger project is planned to triple the size for the labra operation, which will also add some volumes. Additionally, a modularized version of this technology is being developed to be deployed across the portfolio, particularly in North America, with the potential for future use in New Mexico leveraging heat from natural pyrite.

A：The company is reviewing the impact of volatile costs for consumables and energy, with a focus on how these costs will affect their ability to reach their cost targets. Despite the recent increase in costs, the company is optimistic that the lower unit costs are achievable, with a continued effort to monitor the impact of commodity input costs on their cost structure. The focus is on controllable costs, and the team is confident that these will trend lower. The company is also assessing how to use low-cost incremental pounds to reduce costs significantly, aligning with their efforts to manage input costs effectively.

A：The company's approach to potential revenue generation through new technologies and patents involves both defensive and offensive strategies. The immediate priority is to unlock the value in existing stockpiles by treating them as an opportunity to recover copper, which requires a catalyst to produce it. The company is also interested in leveraging developed technologies to partner with others that may have synergies, potentially through an M&A transaction. The focus is primarily on maximizing the value of the company's existing inventory before exploring opportunities to partner with others for additional resources. A skilled team is working on this initiative, and the company is confident in their progress towards unlocking significant value in their US business.

A：The company is responding to increased diesel costs by monitoring the impact closely, particularly as diesel costs in regions such as Indonesia have risen significantly. The company's strategy includes incorporating higher diesel cost assumptions into their financial models to understand the impact on profitability. They are also assessing how long the elevated costs will persist and whether they will influence other components of the company's costs. The company has some exposure to commodities that trade on the spot market, which may react differently than their contractually negotiated items. They will continue to monitor these costs to manage the overall impact on their operations.

A：The expected impacts of the copper production revisions extending to 2029 are minimal as they are on the margin and do not represent any significant issues related to the material handling problem.

A：The company anticipates working with any administration in Peru, having worked with many in the past. They are prepared to work with the incoming administration and have a good relationship with local communities which is crucial in Peru.

A：The relationship with Aquia in Peru is important due to the challenges faced by other mining operations with local communities. The company values their positive partnership, especially regarding the provision of water to the area, and expects this to continue positively influencing their operations.

A：The increase in idle cost recovery costs to $1.3 million from $900 million previously is because the company is not operating at full capacity in the second half, resulting in some costs not being allocated through inventory and cost of sales. This is a reflection of the accounting treatment rather than an increase in absolute cost.

A：The main bottleneck for increased operating recovery at the mine is the mining capacity's inability to handle wet material efficiently, which is necessary for large-scale ramp-up operations.

A：No, the wet versus dry ratio does not impact the capacity of the dewatering pumps.

A：There has been no significant change in the ratio of wet to dry in Pb1s or in other sections of the mine as per the comparison presented in the company's slides.

A：Yes, the company plans to install chute systems in PD1s to ensure nameplate capacity is achieved even with a higher ratio of wet to dry material.

A：The CapEx associated with the modifications is about $60 to $70 million, which is a relatively small cost considering the production scale. There are timing variances within the plan that offset this cost, indicating that it does not significantly impact the mine plan beyond 2030.