Lodge Hill Capital Dumps Freeport-McMoRan Shares Ahead of a Major Trump Decision

Company Overview - Freeport-McMoRan Inc. is a leading global mining company focused on copper and gold production, with significant operations in North America, South America, and Indonesia [5] - The company owns major mining assets, including the Grasberg minerals district in Indonesia, and has a diversified resource base [5] - As of June 30, 2025, Freeport-McMoRan's market capitalization was $60.70 billion, with a revenue of $25.82 billion and a net income of $1.92 billion [3] Financial Performance - Freeport-McMoRan shares were trading at $42.28 as of August 14, 2025, reflecting a nearly 3% decline over the last 12 months, underperforming the S&P 500 by 19.7 percentage points [2] - The stock's dividend yield is 1.42%, with a forward P/E ratio of 15.97 and an EV/EBITDA of 8.6 [2] - The company has a five-year revenue CAGR of 11.86% [2] Recent Developments - Lodge Hill Capital sold its entire stake in Freeport-McMoRan during Q2 2025, involving 587,820 shares with an estimated trade value of approximately $22.25 million [1] - This sale represents a complete exit from Freeport-McMoRan, which likely constituted over 5% of Lodge Hill's assets under management [6] - The decision to sell occurred prior to the Trump administration's decision not to include refined copper in a list of copper-related goods to be tariffed [6][8] Market Context - Freeport-McMoRan produces over 70% of the refined copper in the U.S., positioning it to benefit from market dynamics [9] - The company's stock price was negatively impacted by the tariff decisions, which eliminated the 28% premium that COMEX copper traded at above the LME price [9] - Despite recent challenges, Freeport-McMoRan is viewed as an excellently valued stock, aligning with long-term demand for copper driven by electrification trends [10]