Freeport-McMoRan(US:FCX)2025-11-06 21:36Financial Performance - Net income attributable to common stockholders was $674 million in Q3 2025, up from $526 million in Q3 2024, and $1.8 billion for the first nine months of 2025, compared to $1.6 billion for the same period in 2024[111]. - Consolidated revenues for Q3 2025 were $6.972 billion, up from $6.790 billion in Q3 2024, and $20.282 billion for the first nine months of 2025, compared to $19.735 billion for the same period in 2024[151][154]. - Net income attributable to common stock for Q3 2025 was $674 million, an increase from $526 million in Q3 2024, and $1.798 billion for the first nine months of 2025, compared to $1.615 billion in the same period of 2024[151]. - Other income, net, was $59 million in Q3 2025, down from $97 million in Q3 2024, and $158 million for the first nine months of 2025 compared to $295 million for the same period in 2024[176]. - Cash dividends on common stock remained consistent at $0.6 billion for both the first nine months of 2025 and 2024[285]. Production and Sales - Consolidated sales volumes for 2025 are projected at 3.5 billion pounds of copper, 1.05 million ounces of gold, and 82 million pounds of molybdenum[127]. - Copper production in Q3 2025 was 912 million recoverable pounds, down from 1,051 million in Q3 2024, and 2,743 million for the first nine months of 2025, compared to 3,173 million in the same period of 2024[152]. - Gold production in Q3 2025 was 287 thousand recoverable ounces, down from 456 thousand in Q3 2024, and 891 thousand for the first nine months of 2025, compared to 1,448 thousand in the same period of 2024[152]. - Molybdenum production totaled 8 million pounds in Q3 2025, compared to 6 million pounds in Q3 2024, and 26 million pounds for the first nine months of 2025[258]. - Copper sales from South America operations are projected to be approximately 1.1 billion pounds for 2025[218]. Costs and Expenses - Consolidated unit net cash costs for copper mines are expected to average $1.68 per pound for 2025, excluding costs related to the September 2025 mud rush incident[130]. - Site production and delivery costs averaged $2.71 per pound of copper in Q3 2025, up from $2.61 per pound in Q3 2024, and $2.67 per pound for the first nine months of 2025 compared to $2.49 per pound in the same period of 2024[167]. - Unit net cash costs per pound of copper in Q3 2025 were $3.11, down from $3.24 in Q3 2024, indicating improved efficiency[208]. - Average unit net cash costs for U.S. copper mines are expected to approximate $3.03 per pound for 2025, reflecting efficiencies and cost reduction plans[212]. - Average unit net cash costs for South America operations are expected to approximate $2.45 per pound for 2025[226]. Capital Expenditures and Investments - Capital expenditures for 2025 are expected to total $4.5 billion, including $2.3 billion for major projects and $1.6 billion for sustaining capital[133]. - The company has a potential expansion project at the Bagdad operation that could increase copper production by 200 to 250 million pounds per year, with estimated capital costs of approximately $3.5 billion[199]. - Costs for feasibility and optimization studies totaled $43 million in Q3 2025, compared to $45 million in Q3 2024, and are estimated to approximate $200 million for the year 2025[189]. Incident and Recovery - The mud rush incident on September 8, 2025, resulted in seven fatalities and approximately 800,000 metric tons of wet material entering the mine, leading to temporary suspension of operations[115][116]. - Charges related to the mud rush incident totaled $195 million in Q3 2025, including $152 million for idle facility costs[120]. - PTFI is seeking recovery of damages under insurance policies covering up to $1.0 billion in losses, subject to a $0.5 billion deductible[123]. - During Q3 2025, the company collected $25 million in insurance recoveries related to the 2024 smelter fire incident[283]. Market Conditions - The average COMEX copper settlement price was 9% higher than the average LME copper settlement price during Q3 2025, with LME prices reaching an all-time high of $5.02 per pound in October 2025[141]. - U.S. tariffs could potentially increase costs of goods purchased in the U.S. by approximately 5%, with a 50% tariff imposed on semi-finished copper products effective August 1, 2025[190][191]. - The company is the leading copper supplier in the U.S., providing approximately 70% of total U.S. refined copper production[193]. Future Outlook - A phased restart of operations at the Grasberg Block Cave underground mine is anticipated to begin in 2026 following the mud rush incident[117]. - The company estimates annual production of 300 million pounds of copper in 2026 from leaching initiatives, with potential for further significant increases in recoverable metal[186]. - PTFI is preparing an application for a long-term extension of its operating rights beyond 2041, expected to be submitted in Q4 2025[241].