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Freeport-McMoRan(FCX) - 2025 Q2 - Earnings Call Transcript
2025-07-23 15:02
Financial Data and Key Metrics Changes - Freeport McMoRan reported strong margins and cash flows during the second quarter, with quarterly EBITDA of $3.2 billion and operating cash flows of $2.2 billion [12][50] - The average copper realization price was over $4.5 per pound, approximately $0.20 per pound above international benchmark pricing [13] - Net unit cash production costs improved to $1.13 per pound, significantly better than previous guidance and last year's second quarter [12][49] Business Line Data and Key Metrics Changes - Sales volumes of copper and gold exceeded production, with copper sales in the second half expected to be nearly 10% higher than the first half [13][48] - The startup of the new copper smelter in Indonesia was a major milestone, with the first cathodes expected by the end of the month [14][31] - The leach initiative at the U.S. Morenci mine is projected to produce 800 million pounds per annum, with ongoing trials showing promising results [15][36] Market Data and Key Metrics Changes - Copper prices averaged $4.32 on the London Metals Exchange and $4.72 on the U.S. COMEX exchange during the quarter [21] - The U.S. copper premium has tripled from second quarter levels, providing an annual financial benefit of approximately $1.7 billion on U.S. sales [26][27] - Global copper demand continues to grow, driven by electrification, AI technology, and infrastructure investments, with China and India being significant markets [22][23] Company Strategy and Development Direction - Freeport is committed to its long-term strategy focused on copper production, with a strong emphasis on organic growth and operational efficiency [8][20] - The company is advancing several major projects in the Americas, including expansions at the Baghdad mine and Alabra [20][46] - Freeport aims to enhance its position as a critical mineral supplier, leveraging its integrated operations and innovative technologies [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong financial performance, with expectations for volume growth and lower costs in the coming years [13][14] - The company is closely monitoring the impact of tariffs on costs, estimating a potential 5% impact but emphasizing ongoing efficiency initiatives [70][72] - Management highlighted the importance of the U.S. government's recognition of copper as a critical mineral and the potential for incentives to boost domestic production [78][80] Other Important Information - Freeport repurchased 1.5 million shares during the second quarter, with a total of 2.9 million shares repurchased in the first half of the year [16][54] - The company has a solid balance sheet with no significant debt maturities until 2027, allowing for flexibility in capital allocation [54][56] - The completion of the new smelter in Indonesia positions Freeport as a fully integrated producer globally, enhancing its operational capabilities [31][32] Q&A Session Summary Question: Changes in mine plan and modeling updates - Management explained that quarterly updates to the forecast are standard, with recent recalibrations reflecting variations in ore grades and recovery rates [60][61] Question: Impact of tariffs on North American costs - Management acknowledged monitoring tariff impacts, estimating a 5% potential increase in costs but emphasized ongoing efficiency improvements [70][72] Question: Discussions with U.S. administration regarding financing - Management confirmed ongoing discussions with U.S. authorities about Freeport's role as a major copper producer and potential incentives for domestic production [78][80] Question: Internal cost of operating the new smelter - Management indicated that the operating cost of the new smelter is approximately $0.27 per pound, with additional revenues expected from processing concentrates [86][87] Question: Potential for refined copper shipments from Indonesia to the U.S. - Management noted that historically, Indonesia has not shipped significant refined copper to the U.S., but they will evaluate future opportunities based on market conditions [90][92] Question: Share repurchase pace and gold guidance confidence - Management stated that share repurchases are aligned with their financial policy, and they remain confident in gold production guidance despite recent variability [101][105]
Freeport-McMoRan (FCX) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2025-07-23 15:00
Financial Performance - Freeport-McMoRan reported $7.58 billion in revenue for the quarter ended June 2025, a year-over-year increase of 14.5% [1] - The EPS for the same period was $0.54, compared to $0.46 a year ago, indicating a positive growth trend [1] - The reported revenue exceeded the Zacks Consensus Estimate of $7.12 billion, resulting in a surprise of +6.47% [1] - The company delivered an EPS surprise of +17.39%, with the consensus EPS estimate being $0.46 [1] Key Metrics - Gold sales on a consolidated basis were 522.00 Koz, surpassing the average estimate of 498.98 Koz [4] - Molybdenum production in South America (Cerro Verde) was 4.00 Mlbs, below the average estimate of 6.67 Mlbs [4] - Molybdenum production as a by-product in North America was 9.00 Mlbs, exceeding the average estimate of 7.67 Mlbs [4] - Total net cash cost per pound of copper was $1.13, lower than the average estimate of $1.30 [4] Revenue Breakdown - Revenues from Indonesia reached $3.42 billion, exceeding the average estimate of $3.16 billion, with a year-over-year change of +50.7% [4] - Revenues from molybdenum were $180 million, compared to the average estimate of $254.9 million, reflecting a +30.4% year-over-year change [4] - Revenues from South America copper mines were $1.26 billion, in line with the average estimate, but represented a -16.6% year-over-year change [4] - Revenues from North America copper mines were $1.03 billion, significantly lower than the estimated $1.59 billion, marking a -33% change compared to the previous year [4] - Revenues from Rod & Refining were $1.7 billion, slightly above the average estimate of $1.63 billion, with a -0.2% year-over-year change [4] - Revenues from Atlantic Copper Smelting & Refining were $818 million, exceeding the average estimate of $786.41 million, with a -9.1% year-over-year change [4] - Corporate, other & eliminations reported revenues of $-1.51 billion, better than the estimated $-1.73 billion, with a +4.6% year-over-year change [4] Stock Performance - Freeport-McMoRan shares returned +9% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]
Freeport-McMoRan(FCX) - 2025 Q2 - Earnings Call Transcript
2025-07-23 15:00
Financial Data and Key Metrics Changes - Freeport-McMoRan reported quarterly EBITDA of $3.2 billion and operating cash flows of $2.2 billion, with net unit cash production costs at $1.13 per pound, significantly improved from previous guidance and last year's second quarter [10][11][12] - The average copper realization price was over $4.5 per pound, approximately $0.20 per pound above international benchmark pricing [11] - The company expects copper sales in the second half of the year to be nearly 10% higher than the first half volumes [11][46] Business Line Data and Key Metrics Changes - Sales of copper and gold exceeded forecasts, with a net credit for operating costs at Grasberg of $0.99 per pound [10][37] - The startup of the new copper smelter in Indonesia was a significant milestone, with production of first cathodes expected by the end of the month [12][29] - The leach initiative is projected to achieve a run rate of £300 million by the end of the year, targeting £800 million per annum [15][34] Market Data and Key Metrics Changes - Copper prices averaged $4.32 on the London Metals Exchange and $4.72 on the U.S. COMEX exchange during the quarter [18] - The U.S. copper premium has tripled from second quarter levels, providing an approximate $1.7 billion annual financial benefit on U.S. sales [24][25] - Global copper demand continues to benefit from trends in electrification, AI technology, and decarbonization, with China and India being major growth markets [20][21] Company Strategy and Development Direction - Freeport-McMoRan is committed to its long-term strategy focused on copper production, with significant organic growth opportunities in the U.S. and a strong position in Indonesia and South America [6][9] - The company is advancing three major project opportunities in the Americas and is focused on innovation and technology to enhance productivity and cost performance [17][43] - The company aims to boost domestic copper supplies and is actively working on legislative recognition of copper as a critical mineral [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong financial performance, driven by high copper demand and successful operational initiatives [11][12] - The impact of tariffs on costs is being closely monitored, with an estimated potential 5% impact on operating costs [71] - The company is optimistic about the future, with expectations for increased production and lower costs in the coming years [32][46] Other Important Information - The company repurchased 1.5 million shares during the second quarter, with a total of 2.9 million shares repurchased in the first half of the year [14] - Freeport-McMoRan has a solid balance sheet with investment-grade ratings and no significant debt maturities until 2027 [53] Q&A Session Summary Question: Changes in mine plan and modeling updates - Management updates quarterly forecasts and has recalibrated the Grasberg ore grade model due to observed differentials in recovery rates [60][61] Question: Impact of tariffs on cost outlook - Tariffs are being monitored closely, with a potential 5% impact on costs, but the company is focused on driving efficiencies and cost reductions [71][73] Question: Discussions with the U.S. administration regarding financing or incentives - The company has engaged with U.S. government representatives to discuss its role as a major copper producer and potential incentives for domestic production [80][81] Question: Potential tariff exemptions for refined copper - No known exemptions for refined copper are currently anticipated, and the company is awaiting further details on tariff implementation [84] Question: Internal cost to operate the new smelter in Indonesia - The operating cost of the new smelter is estimated at approximately $0.27 per pound, with additional revenues expected from processing [88] Question: Thoughts on building a smelter in the U.S. - The company is studying the potential for expanding the Miami smelter but emphasizes the near-term opportunity lies in the leach initiative [95][98]
Freeport-McMoRan (FCX) Tops Q2 Earnings and Revenue Estimates
ZACKS· 2025-07-23 14:06
Company Performance - Freeport-McMoRan reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.46 per share a year ago, representing an earnings surprise of +17.39% [1] - The company posted revenues of $7.58 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.47%, compared to revenues of $6.62 billion in the same quarter last year [2] - Over the last four quarters, Freeport-McMoRan has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Freeport-McMoRan shares have increased approximately 20.3% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] - The current status of estimate revisions for Freeport-McMoRan translates into a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.56 on revenues of $7.32 billion, and for the current fiscal year, it is $1.76 on revenues of $27.94 billion [7] - The outlook for the Mining - Non Ferrous industry, where Freeport-McMoRan operates, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]
Freeport-McMoRan(FCX) - 2025 Q2 - Earnings Call Presentation
2025-07-23 14:00
Financial Performance & Outlook - FCX reported strong Q2 2025 performance with Adjusted EBITDA of $3.2 billion[14] and operating cash flow of $2.2 billion[14] - Copper sales for Q2 2025 were 1,016 million lbs[14], and gold sales were 522,000 ozs[14] - The average copper realization price was $4.54/lb[14], and the average gold realization price was $3,291/oz[14] - Unit net cash costs were $1.13/lb in Q2 2025[14], significantly below April 2025 guidance[15] - The company anticipates approximately $7 billion in operating cash flows for the second half of 2025, assuming a copper price of $4.40/lb[95] Operational Highlights & Growth Initiatives - First copper cathode production was achieved at the new Indonesia smelter in July 2025[13, 45] - The company is targeting a run rate of 300 million lbs per annum by year-end 2025 from low-cost leaching initiatives[17, 45] - Grasberg ore grade modeling revisions resulted in a slight decrease in estimated gold production[47], with a 3% reduction in the 5-year total[47] - Organic growth options are estimated to total 2.5 billion lbs per annum for copper and 0.5 million ozs per annum for gold[49] Strategic Positioning & Market Factors - The company emphasizes the importance of copper as the "Metal of Electrification," with over 65% of global copper usage in electricity-related applications[26] - A potential 50% tariff on copper imports into the U S could significantly increase cash flow[34, 35] - The company highlights its position as a dominant U S copper producer, accounting for approximately 70% of total U S refined production[39]
Freeport-McMoRan(FCX) - 2025 Q2 - Quarterly Results
2025-07-23 12:09
[Freeport Q2 2025 Earnings Report](index=1&type=section&id=Freeport%20Reports%20Second-Quarter%20and%20Six-Month%202025%20Results) [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) The company reported strong Q2 2025 results driven by robust operating performance and favorable pricing Q2 2025 Key Financial and Operating Metrics | Metric | Q2 2025 Value | | :--- | :--- | | Net Income (attributable to common stock) | $772 million | | Diluted EPS | $0.53 | | Adjusted Net Income | $790 million | | Adjusted Diluted EPS | $0.54 | | Copper Sales | 1.0 billion lbs | | Gold Sales | 522 thousand oz | | Average Realized Copper Price | $4.54 / lb | | Average Unit Net Cash Costs (Copper) | $1.13 / lb | | Operating Cash Flows | $2.2 billion | - A major milestone was achieved with the **start-up of the new large-scale copper smelter in Indonesia** during the second quarter[3](index=3&type=chunk) - The company is advancing **innovative copper leaching initiatives** and leveraging new technologies to grow production with lower capital intensity[3](index=3&type=chunk)[17](index=17&type=chunk) - During Q2 2025, FCX repurchased **1.5 million shares of common stock for $52 million**[1](index=1&type=chunk) [Consolidated Financial & Operating Performance](index=2&type=section&id=Consolidated%20Financial%20%26%20Operating%20Performance) Consolidated performance improved YoY with higher revenues and lower unit costs, benefiting from by-product credits [Summary Financial Data](index=2&type=section&id=Summary%20Financial%20Data) Q2 2025 revenues grew 14.5% YoY to $7.58 billion, with net income increasing 25.3% to $772 million Summary Financial Data (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $7,582 | $6,624 | $13,310 | $12,945 | | Operating income | $2,432 | $2,049 | $3,735 | $3,683 | | Net income attributable to common stock | $772 | $616 | $1,124 | $1,089 | | Diluted net income per share | $0.53 | $0.42 | $0.77 | $0.75 | | Operating cash flows | $2,195 | $1,956 | $3,253 | $3,852 | [Summary Operating Data](index=3&type=section&id=Summary%20Operating%20Data) Copper and gold production decreased YoY due to ore grades, but sales volumes for both metals increased Summary Operating Data | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Copper (M lbs)** | | | | | | Production | 963 | 1,037 | 1,831 | 2,122 | | Sales | 1,016 | 931 | 1,888 | 2,039 | | Realized Price/lb | $4.54 | $4.48 | $4.48 | $4.25 | | Unit Net Cash Costs/lb | $1.13 | $1.73 | $1.56 | $1.61 | | **Gold (k oz)** | | | | | | Production | 317 | 443 | 604 | 992 | | Sales | 522 | 361 | 650 | 929 | | Realized Price/oz | $3,291 | $2,299 | $3,260 | $2,236 | | **Molybdenum (M lbs)** | | | | | | Production | 22 | 20 | 45 | 38 | | Sales | 22 | 21 | 42 | 41 | | Realized Price/lb | $21.10 | $21.72 | $21.37 | $21.06 | [Consolidated Production and Sales](index=3&type=section&id=Consolidated%20Production%20and%20Sales) Q2 2025 copper and gold sales exceeded guidance, with full-year 2025 copper sales projected at 3.95 billion pounds - Q2 2025 copper production was lower YoY due to reduced ore grades and operating rates, but **sales were higher due to shipment timing**[7](index=7&type=chunk) - Q2 2025 gold sales of **522 thousand ounces were above guidance**, primarily due to the timing of refined gold sales[7](index=7&type=chunk) 2025 Full Year Sales Guidance | Metal | 2025 Full Year Guidance | | :--- | :--- | | Copper | 3.95 billion lbs | | Gold | 1.3 million oz | | Molybdenum | 82 million lbs | [Consolidated Unit Net Cash Costs](index=4&type=section&id=Consolidated%20Unit%20Net%20Cash%20Costs) Q2 2025 consolidated unit net cash costs for copper were significantly below guidance due to higher by-product credits - Q2 2025 unit net cash costs of **$1.13/lb were well below the $1.50/lb guidance**, mainly due to higher by-product credits[9](index=9&type=chunk) - The average unit net cash cost for copper is projected to be **$1.55 per pound for the full year 2025**[10](index=10&type=chunk) - Cost sensitivity for H2 2025: a **$100/oz change in gold price impacts costs by ~$0.02/lb**[10](index=10&type=chunk) [U.S. Copper Tariffs and Market Impact](index=4&type=section&id=U.S.%20Copper%20Tariffs%20and%20Market%20Impact) A planned 50% U.S. tariff on copper imports is expected to benefit FCX as the leading domestic supplier - A **50% tariff on U.S. copper imports** is planned to be effective August 1, 2025[13](index=13&type=chunk) - FCX is the leading U.S. copper supplier, providing approximately **70% of total U.S. refined copper production**[14](index=14&type=chunk) - Following the tariff announcement, the **COMEX copper price premium over LME increased to approximately $1.20 per pound**, benefiting FCX's U.S. sales[15](index=15&type=chunk) [Operations Review](index=5&type=section&id=OPERATIONS) The company is advancing growth projects across its portfolio, including leaching initiatives and major expansions [Leaching and Technology Innovation Initiatives](index=5&type=section&id=Leaching%20and%20Technology%20Innovation%20Initiatives) Technology-driven leaching initiatives are on track to add 300 million pounds of annual copper production by year-end 2025 - Leaching initiatives produced **52 million pounds of incremental copper** in Q2 2025[17](index=17&type=chunk) - The company targets an annual run rate of **300 million pounds of copper** from these initiatives by the end of 2025[18](index=18&type=chunk) - **Large-scale testing of an internally developed additive** to enhance copper recovery began at the Morenci operations in Q2 2025[18](index=18&type=chunk) [United States Operations](index=5&type=section&id=United%20States%20Operations) U.S. operations saw higher copper sales and lower unit costs while advancing major expansion projects at Bagdad and Safford - A potential expansion at the Bagdad operation could add **200-250 million pounds of copper production per year** for an estimated capital cost of $3.5 billion[22](index=22&type=chunk) - Pre-feasibility studies are underway at the Safford/Lone Star district for a **potential significant expansion**, with studies expected to be complete in 2026[24](index=24&type=chunk) U.S. Operations Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Copper Production (M lbs) | 336 | 298 | | Copper Sales (M lbs) | 308 | 292 | | Avg. Realized Price/lb | $4.81 | $4.63 | | Unit Net Cash Costs/lb | $3.04 | $3.19 | [South America Operations](index=6&type=section&id=South%20America%20Operations) South American operations saw lower production due to ore grades, while a major mill project is being evaluated at El Abra - A large sulfide resource at El Abra, Chile, could support a major mill project adding **750 million pounds of annual copper production**[32](index=32&type=chunk)[33](index=33&type=chunk) - Q2 2025 copper sales were lower than Q2 2024 primarily due to **anticipated lower ore grades and milling rates**[37](index=37&type=chunk) South America Operations Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Copper Production (M lbs) | 268 | 298 | | Copper Sales (M lbs) | 265 | 302 | | Avg. Realized Price/lb | $4.47 | $4.39 | | Unit Net Cash Costs/lb | $2.46 | $2.46 | [Indonesia Operations](index=7&type=section&id=Indonesia%20Operations) Indonesia operations achieved a key milestone with the start-up of its new smelter and are advancing the Kucing Liar project - The new smelter in Indonesia commenced start-up activities ahead of schedule, with **first copper cathode production expected by the end of July 2025**[41](index=41&type=chunk)[42](index=42&type=chunk) - Development of the Kucing Liar deposit is ongoing, expected to produce over **7 billion lbs of copper and 6 million oz of gold** between 2029 and 2041[47](index=47&type=chunk) - Consolidated sales guidance from PTFI for 2025 is revised to **1.54 billion lbs of copper and 1.3 million oz of gold**[55](index=55&type=chunk) Indonesia Operations Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Copper Production (M lbs) | 359 | 441 | | Copper Sales (M lbs) | 443 | 337 | | Gold Production (k oz) | 311 | 437 | | Gold Sales (k oz) | 518 | 356 | | Unit Net Cash Credits/lb | ($0.99) | ($0.21) | [Molybdenum Mines](index=10&type=section&id=Molybdenum%20Mines) Molybdenum mines delivered higher production and significantly lower unit net cash costs compared to the prior year - Molybdenum production **increased to 9 million pounds** in Q2 2025 from 7 million pounds in Q2 2024[59](index=59&type=chunk) - Average unit net cash costs for Molybdenum mines **decreased to $14.20 per pound** in Q2 2025, compared to $19.41 in Q2 2024[60](index=60&type=chunk) - Average unit net cash costs for the Molybdenum mines are expected to be approximately **$15.50 per pound for the full year 2025**[60](index=60&type=chunk) [Financial Position, Liquidity, and Shareholder Returns](index=10&type=section&id=LIQUIDITY,%20CASH%20FLOWS,%20CASH%20AND%20DEBT) The company maintains a strong financial position with $4.5 billion in cash and continues to return capital to shareholders [Liquidity, Cash Flows, and Capital Expenditures](index=10&type=section&id=Liquidity,%20Cash%20Flows,%20and%20Capital%20Expenditures) FCX generated $2.2 billion in Q2 operating cash flow and projects $4.9 billion in capital expenditures for 2025 - Generated operating cash flows of **$2.2 billion in Q2 2025** and $3.3 billion for the first six months of 2025[62](index=62&type=chunk) - Full-year 2025 operating cash flow is expected to be **~$7.0 billion**, or ~$7.9 billion including a premium on U.S. copper sales[63](index=63&type=chunk) - Capital expenditures are expected to be approximately **$4.9 billion for the full year 2025**, including $2.7 billion for major mining projects[66](index=66&type=chunk) [Cash and Debt Structure](index=12&type=section&id=Cash%20and%20Debt%20Structure) The company held $4.5 billion in consolidated cash and $9.3 billion in total debt at the end of Q2 2025 Cash Position at June 30, 2025 (in billions) | Category | Amount | | :--- | :--- | | Total consolidated cash | $4.5 | | Less: Noncontrolling interests' share | ($1.5) | | Less: Withholding taxes | ($0.2) | | **Net cash available** | **$2.8** | Debt Summary at June 30, 2025 (in billions) | Debt Category | Amount | Weighted Avg. Interest Rate | | :--- | :--- | :--- | | Senior notes (FCX) | $5.3 | 5.0% | | Senior notes (PTFI) | $3.0 | 5.4% | | Other Debt | $0.9 | Various | | **Total Debt** | **$9.3** | **5.2%** | [Financial Policy and Shareholder Returns](index=12&type=section&id=Financial%20Policy%20and%20Shareholder%20Returns) The company declared a $0.15 per share dividend and repurchased $52 million of stock in Q2 2025 - The financial policy targets up to **50% of available cash flows for shareholder returns**[69](index=69&type=chunk) - Declared a total cash dividend of **$0.15 per share** ($0.075 base + $0.075 variable) payable on August 1, 2025[71](index=71&type=chunk) - Repurchased **1.5 million shares for $52 million** in Q2 2025, with total program purchases reaching $2.0 billion[72](index=72&type=chunk) [Supplemental Financial Information](index=15&type=section&id=Supplemental%20Financial%20Information) This section provides detailed financial statements, non-GAAP reconciliations, and granular segment data [Consolidated Financial Statements](index=18&type=section&id=Consolidated%20Financial%20Statements) Financial statements show increased Q2 revenues and a robust balance sheet with $56.5 billion in total assets Consolidated Statement of Income Highlights (Q2 2025 vs Q2 2024, in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $7,582 | $6,624 | | Operating Income | $2,432 | $2,049 | | Income Before Taxes | $2,391 | $2,030 | | Net Income Attributable to Common Stockholders | $772 | $616 | Consolidated Balance Sheet Highlights (June 30, 2025 vs Dec 31, 2024, in millions) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,490 | $3,923 | | Total Assets | $56,492 | $54,848 | | Total Debt (Current + Long-term) | $9,251 | $8,948 | | Total Equity | $29,996 | $28,778 | [Reconciliations and Other Disclosures](index=21&type=section&id=Reconciliations%20and%20Other%20Disclosures) This section reconciles GAAP figures to non-GAAP metrics, showing a Q2 adjusted net income of $790 million - Q2 2025 GAAP net income of $772 million was adjusted for $18 million in net charges to arrive at an **adjusted net income of $790 million**[101](index=101&type=chunk) - Excluding PTFI's new downstream facilities debt, the **net debt used for financial policy purposes is $1.5 billion**[110](index=110&type=chunk) - At June 30, 2025, FCX had **245 million pounds of provisionally priced copper sales** recorded at an average price of $4.49 per pound[118](index=118&type=chunk) [Segment and Product Information](index=15&type=section&id=Segment%20and%20Product%20Information) Segment data highlights that Indonesia Operations were the largest contributor to Q2 operating income at $1.87 billion Operating Income by Segment (Q2 2025, in millions) | Segment | Operating Income (Loss) | | :--- | :--- | | U.S. Copper Mines | $368 | | South America Operations | $374 | | Indonesia Operations | $1,868 | | Molybdenum Mines | $25 | | Rod & Refining | $7 | | Atlantic Smelting & Refining | $13 | | Corporate, Other & Eliminations | ($223) | | **FCX Total** | **$2,432** | Unit Net Cash Cost Reconciliation Summary (Q2 2025, per pound of copper) | Region | Site Production & Delivery | By-product Credits | Other | Unit Net Cash Cost/(Credit) | | :--- | :--- | :--- | :--- | :--- | | U.S. Copper Mines | $3.44 | ($0.55) | $0.15 | $3.04 | | South America Ops | $2.76 | ($0.37) | $0.07 | $2.46 | | Indonesia Ops | $2.17 | ($3.98) | $0.82 | ($0.99) |
Freeport-McMoRan to Post Q2 Earnings: What's in Store for the Stock?
ZACKS· 2025-07-21 13:11
Core Viewpoint - Freeport-McMoRan Inc. (FCX) is expected to report strong second-quarter 2025 results, driven by favorable copper prices, lower unit costs, and increased sales volumes [1][6][10] Group 1: Earnings Performance - FCX has a trailing four-quarter earnings surprise of approximately 10.5%, having beaten the Zacks Consensus Estimate for earnings in two of the last four quarters [1] - The Zacks Consensus Estimate for FCX's second-quarter earnings is currently set at 46 cents, with an Earnings ESP of +1.62% indicating a potential earnings beat [5][6] Group 2: Revenue and Sales Volumes - The Zacks Consensus Estimate for FCX's second-quarter consolidated revenues is projected at $7,121 million, reflecting a year-over-year increase of about 7.5% [7] - Copper sales volumes for the second quarter are estimated at 1.005 billion pounds, representing an 8% year-over-year increase and a 15% sequential rise from the first quarter [6][9] Group 3: Cost Structure - FCX's projected consolidated average unit net cash costs per pound of copper for the second quarter are expected to decline to $1.50 from $2.07 in the prior quarter [10] - The reduction in unit costs is anticipated to be driven by higher copper and gold volumes from operations in Indonesia [10] Group 4: Market Conditions - Copper prices experienced volatility in the second quarter, fluctuating between approximately $4.1 and $5 per pound, ultimately closing above $5 per pound at the end of June [8] - The overall copper price trend in the first half of 2025 showed a gain of roughly 25% [8]
3 Stocks Offering Diversification in Trump's Tariff & Trade Reset
MarketBeat· 2025-07-21 12:21
Economic Policy and Market Impact - President Trump's "Great Reset" aims to revive U.S. manufacturing through tariffs, with economic and national security implications [1] - Long-term benefits of the policy may take years, but immediate impacts include increased commodity demand and currency fluctuations, with the dollar experiencing its worst first half since 1972 [2] - The administration's focus on lower taxes and reduced regulation, alongside potential Federal Reserve interest rate cuts, could accelerate growth [3] Investment Opportunities - Investors are gravitating towards technology stocks, but a diversified portfolio with strong growth and stable income is also advisable [4] - Freeport-McMoRan, a major copper producer, is positioned well due to expected demand from U.S. infrastructure projects, despite current mining stock underperformance [5][7] - The company has a strong balance sheet with a debt-to-equity ratio of 0.30%, and analysts forecast an additional 15% upside for its stock [8] Sector Analysis - Coca-Cola, while often overlooked, has shown a 10.9% stock increase in 2025, benefiting from strong demand and pricing power [9][10] - A weaker dollar positively impacts Coca-Cola's revenues from international markets, enhancing reported sales and profits [11] - Despite a higher P/E ratio of 27, Coca-Cola's dividend yield of 2.92% and consistent cash flow make it attractive for income-focused investors [12] Defensive Stocks - Verizon Communications offers reliable dividends with a current yield of 6.65%, appealing to wealth preservation investors [15][16] - The company's stock has increased by about 8% in the past year, supported by decreasing capital expenditures on 5G and a stable subscription model [16][17] - Although Verizon has a Moderate Buy rating, some analysts suggest other stocks may present better investment opportunities [18]
Gear Up for Freeport-McMoRan (FCX) Q2 Earnings: Wall Street Estimates for Key Metrics
ZACKS· 2025-07-18 14:15
Wall Street analysts expect Freeport-McMoRan (FCX) to post quarterly earnings of $0.46 per share in its upcoming report, which indicates no change from the year-ago quarter. Revenues are expected to be $7.12 billion, up 7.5% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 11% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earning ...
Freeport-McMoRan (FCX) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
ZACKS· 2025-07-16 15:01
Wall Street expects flat earnings compared to the year-ago quarter on higher revenues when Freeport-McMoRan (FCX) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than ...