6. Dual Financial Reporting

Traditional financial statements report earnings net of depreciation and depletion based on historical cost. To assess sustainability, we reconstruct a condensed income statement for Freeport‑McMoRan’s 2023 results under two regimes: (A) conventional U.S. GAAP/IFRS accounting and (B) sustainable accounting incorporating the user cost charge. The table and chart below show how recognising natural capital depreciation reduces operating profit, pre‑tax income and net income compared with the traditional view.