Dear Fellow Shareholders

The theme of this year’s annual report, “Copper at Our

Core,” reflects the central role copper plays in the global

economy and in Freeport’s strategy. Copper is fundamental

to emerging secular trends in electrification, technological

advancement and critical energy infrastructure and has

long been at the heart of our company’s strategy. With a

diversified portfolio of long-lived assets, extensive technical

expertise, and a strong financial foundation, Freeport is

well-positioned to supply copper reliably and responsibly

to a growing market.

In 2025, our team demonstrated resilience in overcoming

challenges and achieved meaningful progress on several

initiatives strengthening our foundation and positioning

the company for a positive long-term future centered on

value creation. We are saddened by the unprecedented

September 2025 mud rush tragedy at the Grasberg Block

Cave where we lost seven of our co-workers. This incident

overshadowed otherwise steady improvements in our

safety performance. Our Total Recordable Incident Rate

was better than target and the past two years represented

our strongest performance in a decade, and high-risk

incidents trended lower. Safety remains our highest

priority, and the tragic loss of our co-workers during 2025

is informing our risk management practices, operating

controls, and decision-making across our business.

During the year, we achieved several important operational

milestones. In the U.S., we delivered a year-over-year

increase in copper production volumes, supported by

efficiency gains. Unit net cash cost trends improved year-

over-year across all regions, reflecting a continued focus

on operating fundamentals. In Indonesia, we successfully

restored smelter operations following the 2024 fire, and

progressed restart initiatives in preparation for a safe and

sustainable ramp-up of large-scale production at Grasberg

following the mud rush incident.

Innovation and technology are integral to how we

strengthen and grow the value of our copper business.

During the year, we deployed internally developed additives

to improve leach recoveries and enable low-cost, near-

term production growth. We converted the Bagdad haul

truck fleet to a fully autonomous system, becoming the

first U.S. mine with a fully autonomous haulage operation,

and we established an integrated remote operating center

for our U.S. operations. Across our portfolio, we continue

to pursue new technologies and innovations with the goal

of enhancing long-term value by improving operating and

capital efficiency, reliability and safety.

We also progressed our organic growth options, all

centered on expanding our copper portfolio. As “America’s

Copper Champion,” we are advancing projects with

the potential to increase our U.S. copper production

by approximately 60% by 2030 through the Bagdad 2X

expansion project and continued scaling of our leach

initiatives. At Safford/Lone Star, we continued work to

define a potentially significant expansion opportunity.

In Chile, we advanced preparation of our permitting

application for a major copper expansion at El Abra

and added 17.5 billion pounds of recoverable copper to

reserves associated with this potential mill project. In

Indonesia, we are advancing the development of the large

Kucing Liar deposit and completed studies to expand the

footprint of this highly attractive ore body in the Grasberg

minerals district.

In February 2026, we achieved a major milestone by

entering into a Memorandum of Understanding with the

Government of Indonesia for a life of resource extension

of operating rights for PT Freeport Indonesia (PTFI) in the

Grasberg minerals district. This agreement reinforces long-

term stability at one of the world’s most significant copper

and gold deposits and aligns the interests of Freeport, the

Government of Indonesia and local stakeholders over the

life of the resource.

Our financial performance in 2025 reflected the strength

of our copper-focused portfolio. Operating cash flows of

$5.6 billion exceeded capital expenditures of $3.9 billion,

excluding $0.6 billion to complete PTFI’s smelter and

precious metals refinery in Gresik (collectively, PTFI’s

downstream processing facilities). We maintained a strong

balance sheet and investment grade credit ratings from

S&P, Moody’s and Fitch. We delivered shareholder returns

— including dividends and share repurchases at attractive

levels — in accordance with our established financial

policy. Since mid-2021, we have distributed $5.7 billion

to shareholders.

Copper prices reached new highs in early 2026, supported

by recognition of copper’s strategic importance to the

global economy. While we recognize macroeconomic

and geopolitical factors will influence short-term markets,

including the current conflict in the Middle East, the

intensity of use of copper is expected to continue to grow,

supporting a favorable long-term outlook for copper. With

“Copper at Our Core,” Freeport’s high-quality asset base,

embedded organic growth options, and financial strength

position us to generate substantial cash flows to support

profitable growth and returns to shareholders.

As we enter 2026, our focus is clear: disciplined execution,

safe restoration of operations at Grasberg, continued

advancement of innovation and growth initiatives, including

our innovative leach initiative, and sustained financial

strength. Copper is central to who we are, and our strategy —

being Foremost in Copper — underpins our confidence and

our commitment to delivering long-term shareholder value.

To our global workforce, thank you for your dedication,

resilience and commitment throughout a challenging

year. Your focus on safety, execution and continuous

improvement is fundamental to our success. To our Board

of Directors, thank you for your guidance and counsel as

we navigate an evolving global environment. And to our

shareholders, we appreciate your continued trust and

investment as we execute our strategy with “Copper at

Our Core.”

Sincerely,