Freeport-McMoRan Inc. (NYSE:FCX) reported second-quarter results on Thursday that topped Wall Street expectations, as higher realized copper and gold prices and strong operational execution helped offset lower production from its Indonesian operations.
Freeport-McMoRan Q2: Higher Copper Prices Offset Lower Production
Adjusted earnings came in at 74 cents per share, beating the analyst consensus estimate of 59 cents. Revenue totaled $7.03 billion, ahead of the Street estimate of $6.76 billion.
Net income attributable to common stock increased to $984 million, or 68 cents per share, from $772 million, or 53 cents per share, a year earlier.
Adjusted net income rose to $1.1 billion, or 74 cents per share, excluding charges primarily related to restoration costs following the September 2025 mud rush incident at PT Freeport Indonesia.
Revenue declined from $7.58 billion a year ago as lower copper and gold sales volumes were partly offset by sharply higher commodity prices.
Copper Prices Boost Results
Freeport realized an average copper price of $6.17 per pound during the quarter, up from $4.54 a year earlier. Gold prices climbed to $4,520 per ounce from $3,291, while molybdenum prices increased to $28.75 per pound from $21.10.
Consolidated copper production totaled 786 million pounds, down from 963 million pounds a year ago, while copper sales fell to 710 million pounds from 1.02 billion pounds.
Gold production declined to 192,000 ounces, with sales of 123,000 ounces, reflecting lower operating rates at the Grasberg mine during its phased ramp-up. Molybdenum production totaled 23 million pounds, while sales increased to 25 million pounds.
Average unit net cash costs for copper rose to $1.97 per pound from $1.13 a year earlier, primarily reflecting lower copper volumes at PT Freeport Indonesia during the Grasberg ramp-up. However, the figure was better than the company’s April estimate of $2.24 per pound.
Freeport-McMoRan Continues Grasberg Ramp-Up
The company said the Grasberg Block Cave underground mine continued to ramp up on schedule following last year’s mud rush incident.
Production rates are expected to average about 65% in the second half of 2026, reach approximately 80% by mid-2027 and approach full capacity by the end of 2027.
President and CEO Kathleen Quirk said the company delivered strong operational execution, with steady progress at Grasberg and solid performance across its Americas operations.
Cash Flow, Outlook And Growth Projects
Operating cash flow totaled $2.0 billion during the quarter after working capital changes. Capital expenditures were $1.1 billion, including $700 million for major mining projects.
During the quarter, Freeport repurchased 1.7 million shares of its common stock for $110 million. As of June 30, the company held $4.1 billion in cash and cash equivalents and $9.4 billion in total debt.
Freeport reaffirmed its expectation to sell approximately 3.1 billion pounds of copper, 650,000 ounces of gold and 93 million pounds of molybdenum in 2026.
Third-quarter sales are expected to total approximately 750 million pounds of copper, 160,000 ounces of gold and 22 million pounds of molybdenum. The company continues to expect full-year average unit net cash costs of $1.90 per pound of copper.
The miner also continues to advance long-term growth projects, including leaching initiatives in the U.S., a potential expansion at the Bagdad mine in Arizona and a large-scale expansion at El Abra in Chile.
Freeport expects 2026 capital expenditures of approximately $4.3 billion, including $3.0 billion earmarked for major mining projects.
Freeport-McMoRan Price Action
FCX Price Action: Freeport-McMoRan shares were down 2.28% at $63.51 at the time of publication on Thursday, according to Benzinga Pro data.
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