Freeport-McMoRan(US:FCX) HUAXI Securities·2025-07-26 11:49Investment Rating - Industry rating: Recommended [6] Core Insights - In Q2 2025, Freeport's copper production increased by 10.9% quarter-on-quarter to 436,800 tons, while net profit attributable to common shareholders surged by 119.3% to $772 million [1][8] - The average realized price for copper in Q2 2025 was $4.54 per pound, reflecting a year-on-year increase of 1.3% and a quarter-on-quarter increase of 2.3% [1][8] - The consolidated average unit net cash cost for Freeport's copper mines in Q2 2025 was $1.13 per pound, a decrease of 34.7% year-on-year and 45.4% quarter-on-quarter [2][3] - Gold production in Q2 2025 was 317,000 ounces, a year-on-year decrease of 28.4% but a quarter-on-quarter increase of 10.5% [4][7] - The total sales revenue for Q2 2025 was $7.582 billion, a year-on-year increase of 14.5% and a quarter-on-quarter increase of 32.4% [8][24] Summary by Sections Production and Sales - Q2 2025 copper production was 963 million pounds (436,800 tons), down 5.2% year-on-year but up 10.9% quarter-on-quarter [1][23] - Q2 2025 copper sales were 1,016 million pounds (460,800 tons), up 9.1% year-on-year and 16.5% quarter-on-quarter [1][23] - Q2 2025 gold sales were 522,000 ounces, up from 361,000 ounces in Q2 2024 [5][23] - Q2 2025 molybdenum production was 22 million pounds, a year-on-year increase of 10.0% [7][23] Financial Performance - Q2 2025 operating income was $2.432 billion, up 18.7% year-on-year and 86.6% quarter-on-quarter [8][24] - Q2 2025 net income was $1.547 billion, a year-on-year increase of 20.9% and a quarter-on-quarter increase of 95.1% [8][24] - Q2 2025 capital expenditures totaled $1.261 billion, with $600 million allocated to major mining projects [9][24] Cost Structure - Q2 2025 unit site production and delivery costs for copper were $2.71 per pound, up 5.9% year-on-year and 4.6% quarter-on-quarter [3][23] - The expected average unit net cash cost for 2025 is projected to be $1.55 per pound, with Q3 2025 estimated at $1.59 per pound [2][3] Project Updates - Freeport is advancing several projects in the U.S. and Chile, including potential expansions in Arizona and significant resource evaluations in Chile [17][19] - The new smelter in Indonesia commenced operations in Q2 2025, slightly ahead of schedule [20][22]