Freeport-McMoRan

Freeport-McMoRan forecasts a growth phase: the Grasberg mine is recovering on schedule after the 2024 accident and is expected to reach near-full capacity by the end of 2027. The company is focused on US brownfield projects such as Bagdad and a leaching initiative to process roughly 40 billion pounds of stockpile material, which could raise annual production from about 200 million to up to 800 million pounds. Bagdad is considered economic at around $4 per pound, and qualifying for the 45X tax credit could bring about $500 million annually. Freeport also emphasizes full upstream and downstream integration in Indonesia through a new smelter and is pursuing a capital allocation of 50% to shareholder returns and 50% to project investments. » Więcej na de.investing.com

Freeport-McMoran shares gained about 7.4% intraday after the three-month copper future on the LME hit a new record high at $14,694/tonne. Drivers included speculative buying, LME inventories that have fallen roughly 40% since the end of May, and expectations of US tariffs on refined copper that would redirect supplies into US warehouses. Freeport-McMoran’s business model benefits strongly from the copper price; management estimates that a price increase of 10 cents would boost annual EBITDA by around $390 million. Buy recommendations from major banks supported the rally, which was industry-wide and pushed Freeport-McMoran close to its 52-week high; the stock is up about 44% year-to-date. » Więcej na de.investing.com

Freeport-McMoRan shares are up ~44% YTD to about $73, driven largely by a sharp rise in copper prices that has grouped major producers into a single commodity trade. Management sensitivity shows each $0.10/lb move in copper adds roughly $390 million in EBITDA, and a move toward $7/lb copper would, combined with the high-end 2027 EPS estimate and peer multiples, put FCX near $100. Key enablers are a sustained copper price, continued Grasberg production ramp and cost discipline, plus execution on buybacks, leach expansion and the Baghdad project; the next earnings report will test whether recent volume and cost improvements persist. » Więcej na finance.yahoo.com