Freeport-Mcmoran (FCX) risk factors, FY2024 10-K

Financial risks

1. 01obligations. For additional information regarding recent macroeconomic and geopolitical factors, see the risk factor below regarding the price and availability of consumables and components we purchase and constraints on supply and logistics, and transportation services
2. 02Additional factors affecting gold prices may include purchases and sales of gold by governments and central banks, demand from China and India, two of the world’s largest consumers of gold, and global demand for jewelry containing gold
3. 03Fluctuations in the price and availability of consumables and components for key machines and equipment we purchase, and constraints on supply and logistics could affect our profitability and operating plans. Further, significant delays or increases in costs affecting transportation services may affect our business
4. 04Our debt and other financial commitments may limit our financial and operating flexibility
5. 05Changes in or the failure to comply with the requirements of mine closure and reclamation regulations could have a material adverse effect on our business
6. 06Unanticipated legal proceedings or negative developments in pending legal proceedings or other contingencies could have a material adverse effect on our financial condition
7. 07Changes in tax laws and regulations could have a material adverse effect on our financial condition
8. 08released by the IRS, we have determined that the provisions of the Act did not impact our financial results for the years 2024 or 2023

International risks

1. 09Our operations are subject to evolving geopolitical, economic, regulatory and social risks
2. 10In addition, our insurance does not cover most losses caused by the risks described above. For example, we do not have political risk insurance
3. 11Because our operations in Indonesia are material to our business, our business may be adversely affected by political, economic, regulatory and social uncertainties in Indonesia
4. 12The mining industry is subject to extensive regulation within Indonesia, and there have been major developments in laws and regulations applicable to mining concession holders, some of which have conflicted with PT-FI’s contractual rights and may conflict with PT-FI’s contractual rights in the future
5. 13regulatory matters, including those related to export licenses, export duties, export proceeds, smelter assurance bonds and PT-FI’s new smelter and PMR (collectively, PT-FI’s new downstream processing facilities) in Eastern Java, Indonesia
6. 14Under the terms of PT-FI’s IUPK, PT-FI has been granted mining rights through 2031, with rights to extend its mining rights through 2041, subject to certain terms and conditions. Refer to Note 11 for a summary of the IUPK’s key fiscal terms

Operational risks

1. 15Our operations are subject to significant operational risks that could adversely affect our business, including the ability to smelt and refine, and our underground mining operations have higher risks than a surface mine
2. 16For a discussion of risks specific to our tailings management, see the risk factors below relating to our management of waste rock and tailings, including our river transport system for tailings management in Indonesia
3. 17Our management of waste rock and tailings are subject to significant environmental, safety and engineering challenges and risks that could adversely affect our business
4. 18Our Indonesia mining operations are susceptible to difficult and costly environmental challenges, and future changes in Indonesia environmental laws could increase our costs
5. 19system represents the best alternative for tailings management given the volume of tailings produced and the site-specific conditions of the area
6. 20Managing these environmental challenges at our Indonesia operations could result in reputational harm and increased costs that could be significant
7. 21We also expect to be exposed to security risks relating to loss and theft of refined precious metals at the PMR. Any such loss or theft could lead to financial loss or a failure to satisfy our customer commitments, which could have an adverse impact on our reputation and business
8. 22South America countries have historically experienced periods of economic growth, as well as recession, periods of high inflation and general economic and political instability
9. 23Our operations, including future expansions or developments, depend on the availability of significant quantities of secure water supplies
10. 24could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources
11. 25Our information and operational technology systems have been and in the future may be adversely affected by cybersecurity events, disruptions, damage, failure and risks associated with implementation and integration
12. 26Failure to successfully implement or develop new technology systems and increased exposure to risks associated with the use of these systems may adversely affect our business
13. 27Major public health crises may have an adverse impact on our business

Human capital risks

1. 28Labor disputes or labor unrest could disrupt our operations
2. 29We have in the past and could in the future experience labor disruptions such as work stoppages, work slowdowns, union organizing campaigns, strikes, or lockouts that could adversely affect our operations. There were no strikes or lockouts at any of our operations for the three years ended December 31, 2024
3. 30Our success depends on our ability to recruit, retain, develop and advance qualified personnel

Risks related to development projects and mineral reserves

1. 31Development projects are inherently risky and may require more capital and have lower economic returns than anticipated, and the development of our underground mines are also subject to other unique risks
2. 32We may not be able to maintain or grow our mineral reserves
3. 33Estimates of mineral reserves and mineral resources are uncertain and the volume and grade of ore actually recovered may vary from our estimates

Regulatory, environmental and social risks

1. 34The costs of compliance with environmental, health and safety laws and regulations applicable to our operations may constrain existing operations or expansion opportunities. Related permit and other approval requirements may delay or result in a suspension of our operations
2. 35with these laws and regulations imposes substantial costs, which we expect will continue to increase over time because of increased regulatory oversight, adoption of increasingly stringent environmental standards, and other factors
3. 36We incur significant costs for remediating environmental conditions on or related to properties that have not been operated in many years
4. 37Significant adjustments to these estimates are likely to occur in the future as additional information becomes available. The actual environmental costs may exceed our current and future accruals for these costs, and any such changes could be material
5. 38The physical impacts of climate change may adversely affect our mining operations, workforce, communities, biodiversity and ecosystems, supply chains and customers, which may result in increased costs
6. 39Increasing scrutiny, action and evolving expectations from stakeholders and other third parties with respect to our ESG practices, performance, commitments and disclosures may impact our reputation, increase our costs and impact our access to capital or business strategy
7. 40Failure 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

Risks related to our common stock

1. 41Our holding company structure may impact our ability to service our debt, declare dividends, and repurchase shares and debt
2. 42Anti-takeover provisions in our charter documents and Delaware law may make an acquisition of us more difficult