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].

Core Points - Freeport (NYSE: FCX) has released its third-quarter and nine-month 2025 financial and operating results [1] - Supplementary financial data related to the third-quarter and nine-month 2025 results is also available on the Investor Relations page [1]

Core Viewpoint - Freeport-McMoRan Inc (NYSE:FCX) is currently trending in the market, with notable interest from investment professionals despite facing challenges in copper prices and macroeconomic conditions [1][2]. Group 1: Company Performance - Freeport-McMoRan has been identified as one of the bottom individual contributors in Q4 2024, primarily due to declining copper prices [2]. - The company is affected by a strong US dollar, ongoing US-China trade tensions, and potential increased tariffs under the new administration, contributing to a challenging macroeconomic environment [2]. Group 2: Market Sentiment - Steven Grasso, CEO of Grasso Global, expressed a positive outlook on Freeport-McMoRan, indicating a long position in copper and the company [1]. - Despite the challenges faced by Freeport-McMoRan, there is a belief in its potential as an investment, although some analysts suggest that AI stocks may offer better returns with lower risk [2].

Core Insights - Freeport-McMoRan Inc. (FCX) is scheduled to announce its third-quarter 2025 results on October 23, before market opening [1] - The company has had mixed earnings performance, beating estimates in two of the last four quarters, missing once, and delivering in-line results on another occasion, with an average earnings surprise of approximately 10.4% [2] Revenue Estimates - The Zacks Consensus Estimate for FCX's third-quarter consolidated revenues is $6,598.2 million, indicating a year-over-year decrease of about 2.8% [6][8] Factors Affecting Performance - FCX is expected to benefit from favorable copper prices, which have been volatile due to global economic uncertainties, with an estimated average realized copper price of $4.4 per pound for the third quarter, reflecting a year-over-year increase of 2.2% [7][10] - The Grasberg Block Cave mine incident is anticipated to negatively impact sales volumes, with copper sales expected to be around 4% lower and gold sales about 6% lower than previous estimates [11] - Higher unit costs are also likely to affect performance, with estimated average unit net cash costs per pound of copper rising to $1.59, compared to $1.13 in the previous quarter [12] Earnings Prediction - The current Earnings ESP for FCX is -1.73%, and it holds a Zacks Rank of 4 (Sell), indicating that the model does not predict an earnings beat for this quarter [13][14]

Group 1 - The core viewpoint of the articles highlights a tightening copper market, with TD Cowen raising its price forecasts for copper due to supply disruptions from major mines [1][3] - The price forecast for 2026 has been increased from $4.40 to $5.25 per pound, while the long-term forecast has been adjusted from $4.25 to $4.50 per pound [1] - A significant supply disruption occurred at the Grasberg mine in Indonesia, which is the second-largest copper concentrate mine globally, leading to a 5% global supply interruption [1][2] Group 2 - The Grasberg mine incident resulted in Freeport McMoRan suspending operations and declaring force majeure, with a revised production target for 2026 down by 35% [1] - Other supply disruptions this year include the Kamoa-Kakula mine affected by earthquakes, challenges in increasing production at QB mine, and a collapse at El Teniente mine, collectively impacting about 2% of global supply [2] - TD Cowen forecasts a copper supply shortage of 22,200 tons by 2026, indicating that this figure may be conservative due to declining production from mature mines and a lack of greenfield investments [3]

Group 1 - Freeport-McMoRan Inc. (NYSE:FCX) is highlighted for its significant operations in gold, particularly in light of the upcoming earnings report which may indicate the sustainability of the recent gold rally [1] - The company operates the world's largest gold mine, which is currently facing challenges, including severe flooding in Indonesia [1] - Jim Cramer expressed confidence in the stock, suggesting that concerns about Indonesia expropriating the mine are unfounded [2] Group 2 - Freeport-McMoRan produces various metals, including copper, gold, molybdenum, and silver, indicating a diversified portfolio [2] - While FCX is recognized as a potential investment, there are opinions that certain AI stocks may offer better upside potential with less downside risk [2]

Core Viewpoint - Freeport-McMoRan (FCX) is a prominent mining company with a focus on copper and gold production, set to release its quarterly earnings on October 23, 2025, with analysts projecting a notable increase in earnings per share despite a decline in revenue [1][2][3]. Earnings Outlook - Earnings per share (EPS) is expected to be $0.41, reflecting a 7.9% increase from the previous year, despite a significant 58.1% downward revision in EPS estimates over the past 30 days [2][6]. - Projected revenue is $6.6 billion, indicating a 2.8% decrease year-over-year, which contrasts with the expected rise in earnings [3][6]. Financial Metrics - FCX has a price-to-earnings (P/E) ratio of 31.20, a price-to-sales ratio of 2.31, and an enterprise value to sales ratio of 2.48, suggesting a high market valuation of its earnings and sales [4]. - The enterprise value to operating cash flow ratio is 9.73, reflecting the company's valuation against cash flow [4]. Financial Health - The company maintains a debt-to-equity ratio of 0.51, indicating a balanced use of debt and equity in financing its assets [5][6]. - A current ratio of 2.47 demonstrates FCX's strong ability to cover short-term liabilities with its short-term assets [5][6].

We came across a bullish thesis on Freeport-McMoRan Inc. on Value investing subreddit by cyclist63c. In this article, we will summarize the bulls’ thesis on FCX. Freeport-McMoRan Inc.'s share was trading at $39.22 as of September 30th. FCX’s trailing and forward P/E were 27.08 and 15.27 respectively according to Yahoo Finance. Copyright: tomas1111 / 123RF Stock Photo Freeport-McMoRan’s stock recently fell more than 20% following an accident at its Grasberg mine in Indonesia, a reaction that appears exce ...