| Trade receivable from and payable to related parties |
4. Trade receivable from and payable to related parties Accounts receivable from related parties and accounts payable to related parties are made up as follows: | | | | | | | December 31, | | December 31, | | | 2025 | | 2024 | | | US$(000) | | US$(000) | | | | | | Accounts receivable from related parties | | | | | Parent Company | | | | | FMC (a) | | 707,590 | | 517,555 | Other related parties | | | | | Sumitomo (b) | | 35,503 | | 14,966 | Climax Molybdenum Marketing Corporation (c) | | 11,938 | | 7,648 | Embedded derivatives | | | | | Embedded derivatives (d) | | 137,070 | | (37,604) | | | | | | Total accounts receivable from related parties | | 892,101 | | 502,565 | | | | | | Classification by measurement | | | | | Accounts receivables from related parties (subject to provisional pricing) | | 574,774 | | 396,931 | Accounts receivables from related parties (not subject to provisional pricing) | | 180,257 | | 143,238 | Embedded derivatives (d) | | 137,070 | | (37,604) | | | | | | | | 892,101 | | 502,565 |
| | | | | Accounts payable to related parties | | | | | Parent Company | | | | | FMC | | 225 | | 2,617 | Other related parties | | | | | Freeport-McMoRan Sales Company Inc. | | 2,479 | | 2,811 | Minera Freeport-McMoRan South America Ltda | | 175 | | 195 | | | | | | Total accounts payable to related parties | | 2,879 | | 5,623 |
| (a) | Accounts receivable from FMC mainly correspond to sales of copper concentrate and copper cathode. The Company has a long-term agreement with FMC through which it has committed to sell between 70% and 80% of its annual copper concentrate production through December 31, 2021, and will continue in force until one of the parties communicates its intention to terminate with an advance written notice of at least 24 months. Terms of the contract are reviewed annually. |
| (b) | The Company has a long-term agreement with Sumitomo through which it has committed to sell 21% of its annual copper concentrate production through December 31, 2021, and will continue in force until one of the parties communicates its intention to terminate with an advance written notice of at least 24 months. Terms of the contract are reviewed annually. |
| (c) | The Company has long-term agreements with Climax through which it has committed to sell 100% of its annual molybdenum concentrate production, at a price based on MWDO and under incoterm CIF from February 1, 2020, through December 31, 2024, and will continue in force until one of the parties communicates its intentions to terminate with a written notice. During 2025, a contractual amendment was incorporated related to a reciprocal tariff deduction. Under this amendment, for as long as tariffs are imposed on molybdenum imports into the U.S. the Company will absorb 10% of the sales price determined according to the conditions of the contract (see Note 2(k)). The tariffs on imports of molybdenum concentrate into the U.S. were in effect from April 5 to September 8, 2025. |
| (d) | Reflects the embedded derivative adjustment associated with accounts receivable from related parties (see Note 2(d) and 21). |
Short-term and long-term employee benefits are recognized as expenses during the period earned. Benefits received by key management personnel represent 0.24%, 0.26% and 0.27% of total revenues for the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024 and 2023, Freeport granted stock-based compensation to certain key management personnel (see Note 12(d)). Terms and transactions with related parties - Transactions with related parties are made at normal market prices. Outstanding balances are unsecured, interest free and settlement occurs in cash. There have been no guarantees provided or received for any accounts receivable from related parties. As of December 31, 2025, 2024 and 2023, the Company had not recorded any expected credit loss in accounts receivable from related parties. The following is a summary of the transactions with related entities (not including copper and molybdenum sales described in Note 14) for the years ended December 31, 2025, 2024 and 2023: | | | | | | | | | 2025 | | 2024 | | 2023 | | | US$(000) | | US$(000) | | US$(000) | | | | | | | | Revenues | | | | | | | Supplies | | 588 | | 360 | | — | Reimbursement of expenses | | 98 | | 17 | | 344 | | | 686 | | 377 | | 344 |
| | | | | | | Expenses | | | | | | | Information technology services (a) | | 59,640 | | 26,548 | | 25,055 | Commissions | | 8,171 | | 9,782 | | 11,347 | Management fee (see Note 15) | | 2,891 | | 3,227 | | 3,098 | Stock-based compensation (b) | | 2,552 | | 2,166 | | 2,776 | Supplies | | 6 | | 67 | | 6 | | | | | | | | | | 73,260 | | 41,790 | | 42,282 | | | | | | | | Others | | | | | | | Information systems | | 170 | | 1,330 | | — | Low-value equipment | | — | | 30 | | — | | | 170 | | 1,360 | | — |
| (a) | For the year ended December 31, 2025, includes a portion of FMC’s expenditures associated with the deployment of a new enterprise resource management system for US$27.4 million (see Note 17). |
| (b) | As indicated in the table above, for the years ended as of December 31, 2025, 2024 and 2023, the expense for stock-based compensation amounted to US$2.6 million, US$2.2 million and US$2.8 million, respectively. For the years ended as of December 31, 2025 and 2024, the related payments / settlements totaled US$2.2 million and for the year ended as of December 31, 2023 was US$2.1 million. This activity resulted in a net increase of US$0.4 million for the year ended December 31, 2025, and a decrease of US$0.1 million as of December 31, 2024, in “Other equity contributions” in the statement of changes in shareholder’s equity. |
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