Freeport Stock Rises 35% in 3 Months: What's Driving the Rally?

Core Insights - Freeport-McMoRan Inc. (FCX) shares have increased by 35.3% over the past three months, outperforming the Zacks Mining-Non Ferrous industry's 25.9% rise and the S&P 500's approximately 4.7% increase during the same period [1][7] Group 1: Copper Price Surge and Demand - The company's revenue is significantly benefiting from record-high copper prices, with a reported increase of 38 cents in average realized price (ARP) for copper compared to the previous year [3] - A tight global market and supply chain bottlenecks are contributing to the rally in copper prices [3] - Demand for copper is being driven by technology and energy transitions, particularly in the automotive sector, where electric vehicles (EVs) are expected to be a major growth driver [4] Group 2: Grasberg Operations and Future Plans - Operational challenges at the Grasberg mine have temporarily halted delivery obligations, which has further supported copper prices [5] - The company plans to restart operations and increase underground production at Grasberg, with ongoing smelter projects in Indonesia expected to be completed by late 2025 [6][7] - The construction of a new greenfield smelter in Eastern Java is substantially completed, with full ramp-up anticipated by the end of 2025 [6]