Freeport-McMoRan Shares Rise After Earnings Beat and Lower Costs Offset Mine Disruption

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].