Freeport-McMoRan Exceeds Profit Expectations in Third Quarter Amid Higher Copper Prices

Freeport-McMoRan, a leading mining company, reported third-quarter profit results that surpassed analysts' expectations, driven by higher copper prices that helped offset a decline in production. The average realized price for copper during the quarter rose to $4.30 per pound, compared to $3.80 per pound in the same period last year. This increase was attributed to stronger demand signals from China, reduced inventories, and stimulus measures introduced by the Chinese government to boost economic activity.

Despite favorable pricing, Freeport's copper production in the third quarter fell to 1.05 billion recoverable pounds, down from 1.09 billion pounds a year earlier. Last week, Reuters reported that Freeport would delay refined copper sales from Indonesia until the second quarter of 2025, following a fire at its new smelter. The fire, which broke out at a sulphuric acid unit at the Manyar smelter in East Java province, led to a temporary halt in copper cathode production but has since been brought under control.

Freeport also revised its full-year capital expenditure forecast, lowering it to $4.6 billion from the previous estimate of $4.7 billion. On an adjusted basis, the company reported earnings of 38 cents per share in the third quarter, exceeding the average analyst estimate of 35 cents per share, according to data compiled by LSEG. Following the earnings announcement, Freeport's shares were up 1.3%, trading at $48.55 in pre-market activity.