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

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-quarter 2018 . After adjusting for net gains of $16 million , $0.01 per share, second-quarter 2018 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-quarter 2018 .	
		
▪	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-quarter 2018 .	
		
▪	Average realized prices in second-quarter 2018 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-quarter 2018 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-quarter 2018 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 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-quarter 2018 and $0.9 billion (including approximately $0.5 billion for major mining projects) for the first six months of 2018 . 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 billion and 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-quarter 2018 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-quarter 2017 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-quarter 2018 . 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)	 	
Revenues a,b	$	5,168		 	$	3,711		 	$	10,036		 	$	7,052		 	
Operating income a	$	1,664		 	$	686		 	$	3,123		 	$	1,283		 	
Net income from continuing operations	$	1,039		 	$	326		 	$	1,867		 	$	594		 	
Net (loss) income from discontinued operations c	$	(4	)	 	$	9		 	$	(15	)	 	$	47		 	
Net income attributable to common stock d,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 flows f	$	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-quarter 2018 , $(20) million ( $(8) million to net income attributable to common stock or $(0.01) per share) in second-quarter 2017 , $(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-quarter 2018 , $27 million ( $0.01 per share) in second-quarter 2017 , $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-quarter 2018 , $154 million in second-quarter 2017 , $(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 pound a	 	$	1.69		 	$	1.63		 	$	1.68		 	$	1.61		 	
Unit net cash costs per pound a	 	$	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-quarter 2018 copper sales of 989 million pounds were higher than the April 2018 estimate of 970 million pounds and higher than second-quarter 2017 sales of 942 million pounds, primarily reflecting higher mining and milling rates and higher ore grades in Indonesia.
Second-quarter 2018 gold 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-quarter 2017 sales of 432 thousand ounces, primarily reflecting higher ore grades and operating rates in Indonesia. Lower second-quarter 2017 operating rates in Indonesia included the impact of labor disruptions at PT-FI in the first half of 2017.
Second-quarter 2018 molybdenum sales of 24 million pounds approximated the April 2018 estimate of 24 million pounds and second-quarter 2017 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-quarter 2018 .
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-quarter 2018 were lower than unit net cash costs of $1.19 per pound in second-quarter 2017 , 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 quarters and first six months of 2018 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)	 	 	 	 	 	 	 	 	 	
Production a	 	8		 	8		 	15		 	17		 	
 	 	 	 	 	 	 	 	 	 	
Unit net cash costs per pound of copper b	 	 	 	 	 	 	 	 	 	
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-quarter 2018 were lower than second-quarter 2017 sales of 408 million pounds, primarily reflecting anticipated lower ore grades and timing of second-quarter 2017 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-quarter 2018 were higher than unit net cash costs of $1.52 per pound in second-quarter 2017 , 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 quarters and first six months of 2018 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)	 	 	 	 	 	 	 	 	 	
Production a	 	7		 	7		 	13		 	13		 	
 	 	 	 	 	 	 	 	 	 	
Unit net cash costs per pound of copper b	 	 	 	 	 	 	 	 	 	
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-quarter 2018 were higher than second-quarter 2017 sales of 287 million pounds, primarily reflecting higher mining and milling rates and timing of second-quarter 2017 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-quarter 2018 were higher than unit net cash costs of $1.65 per pound in second-quarter 2017 , 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 quarters and first six months of 2018 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 copper a	 	 	 	 	 	 	 	 	 	
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-quarter 2017 and $103 million ($0.28 per pound of copper) for the first six months of 2017 associated with workforce reductions.	
Indonesia's consolidated sales of 316 million pounds of copper and 671 thousand ounces of gold in second-quarter 2018 were higher than second-quarter 2017 sales of 247 million pounds of copper and 427 thousand ounces of gold, primarily reflecting higher operating rates and ore grades. Lower second-quarter 2017 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-quarter 2018 , compared with unit net cash costs of $0.10 per pound in second-quarter 2017 .     
Assuming an average gold price of $1,250 per ounce for the second half of 2018 and 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-quarter 2018 and 8 million pounds in second-quarter 2017 . 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-quarter 2018 and $7.73 per pound in second-quarter 2017 . 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-quarter 2018 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-quarter 2018 (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-quarter 2018 , 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-quarter 2018 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 mine b	2,700		 	3,800		 	2,700		 	3,500		 	
Grasberg Block Cave underground mine b	3,800		 	3,800		 	3,900		 	3,200		 	
Big Gossan underground mine b	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	 	2017 a	 	2018	 	2017 a	 	
 	(In Millions, Except Per Share Amounts)	 	
Revenues b	$	5,168		 	$	3,711		 	$	10,036		 	$	7,052		 	
Cost of sales:	 	 	 	 	 	 	 	 	
Production and delivery c	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 expenses c	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, net c,d	(142	)	 	(162	)	 	(293	)	 	(329	)	 	
Net gain (loss) on early extinguishment of debt	9		 	(4	)	 	8		 	(3	)	 	
Other income (expense), net c	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 taxes f	(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 operations g	(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 stock h	$	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-quarter 2018 , $192 million in second-quarter 2017 , $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 period a	 	$	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-tax a	 	Per Share	 	Pre-tax	 	After-tax a	 	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 credits e	N/A		 	7		 	—		 	N/A		 	32		 	0.02		 	
(Loss) gain on discontinued operations f	(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-tax a	 	Per Share	 	Pre-tax	 	After-tax a	 	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 credits e	N/A		 	7		 	—		 	N/A		 	31		 	0.02		 	
(Loss) gain on discontinued operations f	(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 quarters and first six months of 2018 and 2017 (in millions, except percentages):

																					
 	Three Months Ended June 30,	 	
 	2018	 	2017	 	
 	 	 	 	 	Income Tax	 	 	 	 	 	Income Tax	 	
 	 	 	Effective	 	(Provision)	 	 	 	Effective	 	(Provision)	 	
 	Income a	 	Tax Rate	 	Benefit	 	Income a	 	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 adjustment e	—		 	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)	 	
 	Income a	 	Tax Rate	 	Benefit	 	Income a	 	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 adjustment e	—		 	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-quarter 2017 and $31 million for the first six months of 2017 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 of 2018 , 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-quarter 2018 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-quarter 2018 .

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
Period a	 	Current
Period b	 	Total	 	Prior
Period a	 	Current
Period b	 	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
Period a	 	Current
Period b	 	Total	 	Prior
Period a	 	Current
Period b	 	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-quarter 2018 , $(51) million in second-quarter 2017 , $20 million for the first six months of 2018 and $(24) million for the first six months of 2017 . 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	 	nations a	 	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-quarter 2018 and $536 million in second-quarter 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 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	 	nations a	 	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	 	Molybdenum a	 	Other b	 	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 mining c	 	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	 	Molybdenum a	 	Other b	 	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 mining c	 	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	 	Molybdenum a	 	Other b	 	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 mining c	 	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	 	Molybdenum a	 	Other b	 	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 mining c	 	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	 	Other a	 	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 mining b	 	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	 	Other a	 	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 mining b	 	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	 	Other a	 	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 mining b	—		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	 	Other a	 	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 mining b	 	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	 	Silver a	 	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 mining b	 	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	 	Silver a	 	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 mining c	 	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	 	Silver a	 	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 mining b	 	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	 	Silver a	 	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 mining c	 	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 adjustments a	 	$	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 adjustments a	 	$	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 mining b	 	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 mining b	 	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 adjustments a	 	$	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 adjustments a	 	$	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 mining b	 	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 mining b	 	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