Freeport-McMoran Inc.FCX

Market and investment · Market volatility and economic cycles

Fluctuations in the market prices of the commodities we produce have caused and may continue to cause significant volatility in our financial performance and in the trading prices of our common stock. Extended material declines in the market prices of such commodities could adversely affect our financial condition and operating plans.

International and currency · Foreign exchange and currency exposure

Consumables and components for key machines and equipment we purchase are subject to price volatility caused by global economic factors that are beyond our control, including foreign currency exchange rate fluctuations.

Capital structure and performance · Credit rating and cost of capital

As of January 31, 2026, our senior unsecured debt was rated 'Baa2' with a stable outlook by Moody's Investors Service, 'BBB' with a stable outlook by Fitch Ratings, and 'BBB-' with a stable outlook by Standard & Poor's. If we are unable to maintain our indebtedness and financial ratios at levels acceptable to these credit rating agencies, our current credit ratings could be downgraded, which could adversely affect the value of our outstanding securities and existing debt.

Capital structure and performance · Financial reporting and accounting risks

Changes in or the failure to comply with the requirements of mine closure and reclamation regulations could have a material adverse effect on our business. Plans and provisions for mine closure, reclamation and remediation may change over time as a result of changes in stakeholder and other third-party expectations, legislation, standards, and technical understanding and techniques.

Credit and liquidity · Debt service and covenant compliance

Any failure to comply with the financial and/or other covenants in our debt agreements may result in an event of default that would allow the creditors to accelerate maturities of the related debt.

Credit and liquidity · Access to capital and financing

Although we have been successful in servicing debt in the past, refinancing our bank facilities and issuing new debt securities in capital markets transactions at the parent and subsidiary levels, there can be no assurance that we can continue to do so, including on favorable terms.

Legal and litigation · Litigation and legal proceedings

We are, and may in the future become, involved in various legal proceedings and subject to other contingencies that have arisen or may arise in the ordinary course of our business or are associated with environmental matters. For example, we are currently subject to a securities class action and a shareholder derivative lawsuit following the September 2025 mud rush incident.

Industry regulation · Safety and environmental regulations

Our operations are subject to extensive and complex environmental laws and regulations governing the generation, storage, treatment, transportation and disposal of hazardous substances; solid waste disposal; air emissions; wastewater discharges; remediation, restoration and reclamation of environmental contamination, including mine closures and reclamation.

Stakeholder relations · Community and public relations

Failure or the perceived failure to manage our relationships with the communities and/or Indigenous Peoples where we operate or that are near our operations could harm our reputation and social license to operate. Our relationships with the communities and/or Indigenous Peoples where we operate or that are adjacent to or near our operations are critical to the long-term success of our existing operations.

Corporate governance · Internal controls and risk management

There can be no assurance that our policies, procedures and internal controls will protect us from misinterpretation of or noncompliance with applicable laws and internal policies, recklessness, fraudulent behavior, dishonesty or other inappropriate acts committed by our affiliates, employees, contractors or other business partners.

Natural and catastrophic events · Terrorism and security threats

Shootings and other violent incidents have occurred within the PTFI project area and support areas, including along the road leading to our mining and milling operations, which in some instances have involved fatalities or injuries to our employees, contractors, government security personnel and civilians.

Economic and market conditions · Inflation and deflation pressures

Consumables and components for key machines and equipment we purchase are subject to price volatility caused by global economic factors that are beyond our control, including, but not limited to, supply chain disruptions, labor shortages, wage pressures, inflation and economic slowdown or recession, as well as fuel and energy costs.

Natural and catastrophic events · Pandemic and public health crises

Major public health crises may have an adverse impact on our business. Pandemics, epidemics, widespread illness or other major public health crises could negatively impact the global economy and adversely affect our operations and business, including our ability to conduct business, demand for the commodities we produce and our profit margins.

Social and demographic · Stakeholder activism and pressure

There is ongoing and increasing stakeholder and other third-party concern relating to a company's social license to operate and the actual, potential and perceived effects of mining activities on the environment and on communities impacted by such activities.

Project and contract management · Project execution and delivery risks

Mine development projects typically require a number of years and significant expenditures during the development phase before production is possible. There are many risks and uncertainties inherent in all development projects including, but not limited to, unexpected or difficult geological formations or conditions and environmental challenges, potential delays.

Core operations · Facility damage and equipment failure

Mud removal is in process and other steps necessary for restart and ramp-up of operations, including implementation of enhanced operating procedures to address the conditions that led to the incident, development of updated cave management plans and draw protocols, and design, construction, repair and replacement of damaged infrastructure and equipment, are expected to begin in the near term.

Strategic execution · Joint venture and partnership risks

PT Smelting is an Indonesian joint venture between PTFI and Mitsubishi Materials Corporation (MMC), and an affiliate of MMC serves as operator of PT Smelting. We are investigating whether activities of PT Smelting may have violated aspects of the FCPA or other laws.

Market position and competition · Market cyclicality and demand volatility

If market prices for the primary commodities we produce were to decline and remain low for a sustained period of time, we may have to revise our operating plans, including curtailing or modifying our mining and processing operations.

Digital transformation and innovation · Technology obsolescence and evolution

Information and operational technology systems continue to evolve and, in order to remain competitive, we must implement, advance and develop new technologies in a timely, cost-effective and efficient manner.

Technology infrastructure · Technology systems and infrastructure failure

As our dependence on information systems, including those of our third-party service providers and vendors, grows, we have become more vulnerable to an increasing threat of continually evolving cybersecurity risks. In recent years, cybersecurity events have increased in frequency and magnitude and the methods used to gain unauthorized access change frequently.