Freeport grew revenue 12.24% year over year as copper prices averaged over $5.80 per pound and reached an all-time high exceeding $6 per pound, with U.S. mining operations contributing 2.5x more operating income than the year-ago quarter. The quarter's defining issue was Grasberg: after completing remediation and restarting production blocks 2 and 3, management found a materially higher proportion of wet ore in the cave, and material handling bottlenecks at the train-loading chutes now limit second-half 2026 output to approximately 60,000 tonnes per day versus the prior 100,000 tonne per day target. Management framed this as a timing issue rather than a resource recovery or significant cost issue, with chute modifications expected to lift rates to the 90,000 tonne per day range by mid-2027 and the five-year Grasberg district forecast reduced approximately 9% for copper and 7% for gold. Cost pressure also stepped up: the sharp rise in diesel prices in March equates to an approximate $500 million annualized cost increase, and full-year net unit costs are now expected to average $1.95 per pound of copper versus the prior estimate of $1.75. Offsetting positives included the February MOU with the Government of Indonesia extending operating rights beyond 2041, a $700 million insurance recovery, and continued progress on the innovative leach initiative and the El Abra and Bagdad expansion projects.