Core Insights - Freeport-McMoRan Inc. (FCX) reported a net income of $674 million or 46 cents per share for Q3 2025, reflecting a 28.1% increase from $526 million or 36 cents in the same quarter last year [1][9] - Adjusted earnings per share were 50 cents, exceeding the Zacks Consensus Estimate of 41 cents [1] Revenue Performance - Revenues increased approximately 2.7% year over year to $6,972 million, surpassing the Zacks Consensus Estimate of $6,544.9 million [2] - Despite a decline in volumes, the company benefited from a significant rise in copper and gold prices during the quarter [2] Operational Highlights - Copper production decreased around 13.2% year over year to 912 million pounds [3] - Consolidated sales fell approximately 5.6% year over year, totaling 977 million pounds of copper, primarily due to a temporary suspension of operations at the Grasberg Block Cave mine in Indonesia [4] - Gold sales dropped around 40% year over year, with 336,000 ounces sold, while molybdenum sales remained flat at 19 million pounds [4] Cost and Pricing - Consolidated average unit net cash costs per pound of copper were $1.40, slightly up from $1.39 a year ago, and lower than the estimate of $1.59 [5] - The average realized copper price rose 8.8% year over year to $4.68 per pound, exceeding the estimate of $4.40 [5] - The average realized price for gold increased approximately 37.8% year over year to $3,539 per ounce, surpassing the estimate of $3,300 [5] Financial Position - Cash and cash equivalents at the end of the quarter were $4,318 million, down around 13.6% year over year [6] - Total debt decreased to $9,298 million, down 3.9% year over year [6] - Cash flows from operations were approximately $1,664 million, down 11.1% year over year [6] Guidance - For the full year 2025, consolidated sales volumes are projected to be around 3.5 billion pounds of copper, 1.05 million ounces of gold, and 82 million pounds of molybdenum, including estimates for Q4 [7] Stock Performance - Freeport's shares have declined 11.6% over the past year, contrasting with a 0.3% rise in the industry [8]

Core Viewpoint - Freeport-McMoRan Inc. reported a strong third-quarter performance, with profits exceeding expectations due to higher copper prices and improved cost efficiency, despite operational challenges in Indonesia [1][2]. Financial Performance - The company posted adjusted earnings of $0.50 per share, surpassing the analyst forecast of $0.41 [2]. - Revenue increased by 4% year-over-year to $6.97 billion, exceeding expectations of $6.9 billion [2]. - Net income for the quarter totaled $674 million [2]. Production and Operations - Production and sales were impacted by the temporary suspension of Grasberg operations in Indonesia, which accounts for approximately 3% of the world's copper supply [3]. - Copper output fell to 912 million pounds from 1.1 billion pounds in the previous year, while gold production decreased by over 30% to 287,000 ounces [3]. Market Conditions and Future Projections - Average realized copper prices rose to $4.68 per pound due to tight supply conditions [4]. - Unit net cash costs improved to $1.40 per pound, outperforming prior guidance, with operating cash flow reaching $1.7 billion for the quarter [4]. - For 2025, Freeport projected total sales of 3.5 billion pounds of copper and 1.05 million ounces of gold, with a phased restart plan for Grasberg operations [4].

Core Viewpoint - Freeport-McMoRan reported a revenue increase of 2.7% year-over-year for Q3 2025, exceeding analyst expectations, with significant EPS growth [1] Financial Performance - Revenue for the quarter was $6.97 billion, surpassing the Zacks Consensus Estimate of $6.54 billion by 6.53% [1] - Earnings per share (EPS) was $0.50, up from $0.38 in the same quarter last year, representing a surprise of 21.95% against the consensus estimate of $0.41 [1] Key Metrics - Average realized price per pound of Copper was $4.68, exceeding the estimate of $4.54 [4] - Average realized price per ounce of Gold was $3,539.00, compared to the estimate of $3,382.83 [4] - Total Net Cash Cost Per Pound of Copper was $1.40, lower than the estimate of $1.72 [4] - Gold sales on a consolidated basis were 336.00 Koz, above the estimate of 310.17 Koz [4] Revenue Breakdown - Revenues from Indonesia were $2.68 billion, exceeding the estimate of $2.57 billion, but down 10.3% year-over-year [4] - Revenues from Molybdenum were $177 million, up 34.1% year-over-year, but below the estimate of $236.95 million [4] - Revenues from South America copper mines were $1.41 billion, exceeding the estimate of $1.24 billion, with a year-over-year increase of 7.5% [4] - Revenues from North America copper mines were $1.94 billion, surpassing the estimate of $1.73 billion, reflecting a year-over-year increase of 21.9% [4] - Revenues from Rod & Refining were $1.79 billion, above the estimate of $1.7 billion, with a year-over-year increase of 13.7% [4] - Revenues from Atlantic Copper Smelting & Refining were $774 million, slightly below the estimate of $794.06 million, with a year-over-year change of 1.2% [4] - Corporate, other & eliminations reported revenues of -$1.79 billion, worse than the estimate of -$1.54 billion, with a year-over-year change of 14.5% [4] Stock Performance - Freeport-McMoRan shares returned +8.3% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Group 1 - Freeport-McMoRan (FCX) exceeded third-quarter earnings estimates but did not provide a timeline for resuming production after the Grasberg mine disaster, contributing to a shift from projected copper surplus to deficit [1][4] - FCX stock experienced an increase as near-term copper contracts approached the upper range of recent trading [1] - Alcoa (AA) also saw a significant rise in stock value amid the copper market dynamics [1][4] Group 2 - The stock market is showing signs of optimism with upcoming earnings reports from major companies like Netflix and Tesla, alongside various mining and defense stocks [2] - The copper market is experiencing a rally, with Freeport-McMoRan achieving a notable improvement in its relative strength (RS) rating, indicating strong market performance [4] - The overall market is reacting to inflation concerns, with the Nasdaq index holding steady while other indexes show mixed performance [4]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Freeport-McMoRan (FCX), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5]. Group 1: Brokerage Recommendations - Freeport-McMoRan has an average brokerage recommendation (ABR) of 1.60, indicating a consensus between Strong Buy and Buy based on 21 brokerage firms [2]. - Out of the 21 recommendations, 13 are Strong Buy and 3 are Buy, which represent 61.9% and 14.3% of all recommendations, respectively [2]. Group 2: Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies show they often fail to guide investors effectively towards stocks with high price appreciation potential [5]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 3: Zacks Rank Comparison - The Zacks Rank, which classifies stocks based on earnings estimate revisions, is presented as a more reliable indicator of near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, unlike the potentially outdated ABR [13]. Group 4: Current Earnings Estimates for FCX - The Zacks Consensus Estimate for Freeport-McMoRan has decreased by 21.4% over the past month to $1.39, indicating growing pessimism among analysts regarding the company's earnings prospects [14]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for Freeport-McMoRan, suggesting caution despite the Buy-equivalent ABR [15].

Core Insights - Freeport-McMoRan reported quarterly earnings of $0.5 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and showing an increase from $0.38 per share a year ago, resulting in an earnings surprise of +21.95% [1] - The company achieved revenues of $6.97 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.53% and up from $6.79 billion year-over-year [2] - Freeport-McMoRan shares have increased approximately 7.1% year-to-date, underperforming the S&P 500's gain of 13.9% [3] Earnings Outlook - The future performance of Freeport-McMoRan's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $5.14 billion, and for the current fiscal year, it is $1.39 on revenues of $24.92 billion [7] Industry Context - The Mining - Non Ferrous industry, to which Freeport-McMoRan belongs, is currently ranked in the top 8% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5]

FCX 3rd Quarter 2025 Supplemental Financial Data October 23, 2025 fcx.com Cautionary Statement This presentation contains forward-looking statements in which FCX discusses its potential future performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections or expectations relating to business outlook, strategy, goals or targets; the underlying assumptions and estimated impacts on FCX's business and stakeholders related ...

Core Points - A fatal mud rush occurred in September at a Freeport-McMoRan mine in Indonesia, resulting in seven deaths and a suspension of operations [1] Company Summary - Freeport-McMoRan's operations in Indonesia have been impacted by a tragic incident, leading to a halt in mining activities [1]

Core Viewpoint - Freeport-McMoRan Copper & Gold (FCX.US) reported third-quarter earnings that exceeded expectations, with revenue of $6.97 billion and a Non-GAAP EPS of $0.50, reflecting a year-over-year revenue growth of 2.7% [1] Group 1: Financial Performance - Revenue for the third quarter was $6.97 billion, surpassing expectations by $240 million [1] - Non-GAAP EPS was reported at $0.50, exceeding the forecast by $0.09 [1] - The company’s operating cash flow totaled $1.7 billion for the third quarter, after deducting $200 million for working capital and other uses [1] Group 2: Production and Sales Data - Copper production was 912 million pounds, while gold production was 287,000 ounces, and molybdenum production was 22 million pounds [1] - Copper sales reached 977 million pounds, gold sales were 336,000 ounces, and molybdenum sales totaled 19 million pounds [1] - Average realized prices were $4.68 per pound for copper, $3,539 per ounce for gold, and $24.07 per pound for molybdenum [1] Group 3: Cost and Guidance - The unit net cash cost for copper in the third quarter was $1.40 per pound, better than the guidance provided in July 2025 [1] - The expected average unit net cash cost for copper for the full year 2025 is projected to be $1.68 per pound [1] - The company adjusted its full-year 2025 capital expenditure forecast, reducing it by approximately $400 million compared to the July 2025 guidance [2]

Financial Performance - Third-quarter 2025 net income attributable to common stock was $674 million, or $0.46 per share, with adjusted net income of $722 million, or $0.50 per share[2]. - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $1,798 million, up 11.3% from $1,615 million in 2024[95]. - Net income for the nine months ended September 30, 2025, was $3.587 billion, compared to $3.678 billion for the same period in 2024, representing a decrease of about 2.5%[99]. - Net income attributable to common stockholders for the three months ended September 30, 2025, was $674 million, up from $526 million in the same period of 2024, indicating a growth of 28.14%[136]. - Total revenues for the first nine months of 2025 reached $20,282 million, a 2.8% increase from $19,735 million in 2024[95]. - Total revenues for the three months ended September 30, 2025, reached $6,972 million, an increase from $6,790 million in the same period of 2024, representing a growth of 2.68%[136]. Production and Sales - Consolidated production in third-quarter 2025 totaled 912 million pounds of copper, 287 thousand ounces of gold, and 22 million pounds of molybdenum, reflecting a decrease from third-quarter 2024[5]. - Consolidated sales in third-quarter 2025 were 977 million pounds of copper, 336 thousand ounces of gold, and 19 million pounds of molybdenum, slightly below July 2025 guidance[8]. - In Q3 2025, PTFI produced 311 million pounds of copper and 281 thousand ounces of gold, down from 439 million pounds and 451 thousand ounces in Q3 2024, primarily due to a temporary suspension of operations[53]. - Total copper production for the first nine months of 2025 was 2,743 million recoverable pounds, a decrease of 13.6% compared to 3,173 million pounds in 2024[89]. - Copper sales for the nine months ended September 30, 2025, were 1,093 million recoverable pounds, down from 1,256 million pounds in 2024, reflecting a reduction of approximately 13%[191]. Costs and Expenses - Consolidated unit net cash costs for copper were $1.40 per pound in third-quarter 2025, expected to average $1.68 per pound for the year 2025[10]. - The average unit net cash costs for U.S. copper mines decreased to $3.11 per pound in Q3 2025 from $3.24 per pound in Q3 2024, a reduction of 4.0%[31]. - The average realized price per pound of copper increased to $4.68 in Q3 2025 from $4.30 in Q3 2024[86]. - The company reported a net cash cost of $3,515 million for U.S. copper mines, with a unit net cash cost of $3.13 per pound[159]. - Unit net cash costs for copper in Q3 2025 were $(0.92) per pound, while for gold, they were $1.47 per ounce, reflecting significant cost pressures[179]. Capital Expenditures and Cash Flow - Capital expenditures in third-quarter 2025 were $1.1 billion, with an expected total of $4.5 billion for the year 2025[1]. - Operating cash flows for third-quarter 2025 totaled $1.7 billion, with expectations of approximately $5.5 billion for the year 2025[1]. - Capital expenditures for the nine months ended September 30, 2025, amounted to $3,489 million, compared to $3,569 million in the same period of 2024, showing a decrease of about 2.2%[138]. - Cash flow from operating activities for the nine months ended September 30, 2025, was $4.917 billion, down from $5.724 billion in the same period of 2024, a decline of about 14.1%[99]. Debt and Financial Position - Consolidated debt as of September 30, 2025, totaled $9.3 billion, with cash and cash equivalents of $4.3 billion, resulting in net debt of $1.7 billion[1]. - FCX's net debt totaled $1.7 billion at September 30, 2025, excluding $3.2 billion of debt for PTFI's downstream processing facilities[73]. - At September 30, 2025, FCX had $4.3 billion in consolidated cash and cash equivalents, with an additional $3.0 billion available under its revolving credit facility[63]. Operational Challenges - The mud rush incident on September 8, 2025, led to a temporary suspension of operations, impacting production and sales volumes significantly[13]. - PTFI's estimated production for 2026 is projected to decrease by approximately 35% from pre-incident estimates of 1.7 billion pounds of copper and 1.6 million ounces of gold due to a mud rush incident[17]. - The company experienced charges totaling $195 million associated with the September 2025 mud rush incident, impacting net income[103]. - The company incurred $24 million in idle facility costs due to the September 2025 mud rush incident, impacting overall production costs[180]. Future Outlook and Strategic Plans - FCX plans to expand the Bagdad operation's concentrator capacity, potentially increasing copper production by 200 to 250 million pounds per year, with estimated capital costs of approximately $3.5 billion[25]. - Future operational strategies will focus on addressing the impacts of recent incidents and optimizing production efficiency to enhance profitability[181]. - The company plans to continue focusing on market expansion and operational efficiency to mitigate the impact of rising costs and declining revenues[191].