Latest news with #Freeport-McMoRan
Globe and Mail
5 days ago
- Business
- Globe and Mail
Freeport-McMoRan's Earnings Call Highlights Robust Growth
Freeport-McMoRan, Inc. ((FCX)) has held its Q2 earnings call. Read on for the main highlights of the call. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Freeport-McMoRan's recent earnings call showcased a robust financial performance, marked by significant achievements such as the early start-up of the Indonesian smelter and progress in the leach initiative. Despite these successes, the company faces challenges, including revisions in gold production forecasts and concerns related to tariffs and Indonesian operations. Strong Financial Performance Freeport-McMoRan reported a strong quarterly EBITDA of $3.2 billion and operating cash flows of $2.2 billion. This impressive performance was driven by robust copper and gold sales, alongside improved production costs, highlighting the company's operational efficiency and market strength. Indonesian Smelter Start-Up The company achieved a significant milestone by starting up its new copper smelter in Indonesia a month ahead of schedule. This advancement positions Freeport-McMoRan to reach design capacity by the end of the year, underscoring its commitment to enhancing production capabilities. Leach Initiative Progress Freeport-McMoRan's leach initiative at the Morenci mine is showing promising results. The field trial with an internally developed leach additive has the potential to produce 800 million pounds per annum, indicating a significant boost in production efficiency. U.S. Copper Premium Increase The U.S. copper premium has tripled from second-quarter levels, providing Freeport-McMoRan with additional margins and cash flows. This increase reflects the company's strategic positioning in the U.S. market, enhancing its financial outlook. Continued Commitment to Shareholder Returns In line with its commitment to shareholder returns, Freeport-McMoRan purchased 1.5 million shares in Q2, totaling 2.9 million shares in the first half of the year. The company maintains a target of allocating 50% of excess cash flow for shareholder returns, demonstrating its dedication to rewarding investors. Gold Production Revision The company revised its near-term outlook for gold production, indicating a 15% reduction in expected 2025 gold production due to adjustments in the Grasberg Block Cave model. This revision highlights challenges in meeting previous production forecasts. Indonesia Export and Timing Challenges Freeport-McMoRan faces potential timing mismatches between production and sales as it transitions to a fully integrated producer in Indonesia. This challenge underscores the complexities of aligning production schedules with market demands. Tariff Impact on Costs The company anticipates a potential 5% increase in costs due to tariffs, necessitating ongoing monitoring and adjustments in supply chains. This situation highlights the external pressures impacting operational costs. Forward-Looking Guidance Looking ahead, Freeport-McMoRan expects continued volume growth and lower costs to drive expanded margins and cash flows into 2026 and 2027. The company reported a net unit cash production cost of $1.13 per pound, an improvement from prior guidance. Copper sales in the second half are expected to rise by nearly 10%, while gold sales are projected to remain stable. The company anticipates that the startup of the Indonesian smelter will reach design capacity by year-end, further enhancing its production capabilities. In summary, Freeport-McMoRan's earnings call reflected a strong financial performance, driven by strategic initiatives and market positioning. While the company faces challenges such as revised gold production forecasts and tariff impacts, its forward-looking guidance suggests continued growth and improved margins. Investors can expect Freeport-McMoRan to maintain its focus on operational efficiency and shareholder returns.
Business Insider
6 days ago
- Business
- Business Insider
Freeport-McMoRan (FCX): New Buy Recommendation for This Basic Materials Giant
In a report released today, Katja Jancic from BMO Capital maintained a Buy rating on Freeport-McMoRan, with a price target of $54.00. The company's shares closed today at $44.84. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Jancic is a 4-star analyst with an average return of 12.5% and a 66.25% success rate. Jancic covers the Basic Materials sector, focusing on stocks such as Nucor, Algoma Steel Group, and Freeport-McMoRan. In addition to BMO Capital, Freeport-McMoRan also received a Buy from Bank of America Securities's Lawson Winder in a report issued today. However, on the same day, Morgan Stanley reiterated a Hold rating on Freeport-McMoRan (NYSE: FCX). The company has a one-year high of $52.61 and a one-year low of $27.66. Currently, Freeport-McMoRan has an average volume of 13.1M. Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FCX in relation to earlier this year. Last month, Ellie L. Mikes, the CAO of FCX sold 8,584.00 shares for a total of $343,445.84.
Reuters
6 days ago
- Business
- Reuters
Freeport-McMoRan still waiting for US copper tariff details, CEO says
July 23 (Reuters) - Freeport-McMoRan (FCX.N), opens new tab has yet to see details of U.S. President Donald Trump's plan to impose a 50% tariff on copper imports starting next week, its CEO said on Wednesday after the mining company posted better-than-expected quarterly results. Trump announced the tariffs earlier this month as part of a plan to boost U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods. The duty is slated to begin on August 1. The U.S. imports roughly half of its annual copper needs. Trump and his administration have not shared details on what type of the red metal the tariff would affect, a lack of clarity that has confounded producers, companies that use copper and countries that export it. "We're still waiting on additional details on implementation of the tariff announcement," Freeport CEO Kathleen Quirk told investors on a conference call on Wednesday. Quirk added that Freeport is "not aware of any exemptions at this point" for U.S. imports of the metal. Responsible for 70% of refined U.S. copper - the country's largest producer - Phoenix-based Freeport would be the biggest beneficiary of any copper tariff, with a boost to annual profit of at least $1.6 billion, Reuters reported earlier this month. Freeport also produces copper in Chile, Peru and Indonesia, where it operates the Grasberg mine - the world's second-largest copper mine - and a smelter. While Freeport traditionally has sold its Indonesian copper to Asian customers, Quirk said the company would consider shipping some supply to the United States. "We do have flexibility to send it to the place that makes the most sense," she said. "We don't have long-term contracts locked up" for Indonesian copper. Freeport operates one of two U.S. copper smelters and has been studying whether to expand its capacity by roughly 30%, Quirk said, adding that the company has not discussed the plans with the Trump administration and that it has no desire to build a new U.S. smelter. U.S. copper prices have gained more than 25% since Trump announced the tariffs. When asked whether the increase could affect copper demand, Freeport executives said they continued to see strong demand but longer-term saw the issue tied to how the tariff is implemented. "Ultimately, it's going to be global supply and demand that will end up driving (prices), and then whatever tariffs are there, how they're absorbed and where they're absorbed in the U.S. marketplace," said Freeport's chairman, Richard Adkerson. Adkerson added that Freeport has lobbied Washington to streamline the mine-permitting process to boost the country's copper output. For the second quarter, Freeport's profit beat Wall Street's estimates as higher copper and gold prices offset lower production. The company reported an adjusted profit of 54 cents per share for the three months ended June 30, compared with analysts' average estimate of 45 cents, according to data compiled by LSEG. The company's shares were down about 1.5% at $45.09 on Wednesday afternoon. Freeport said it expects to sell 1.3 billion pounds from its domestic mines in 2025. The company warned of a roughly 5% increase in the cost of its U.S. purchases if suppliers pass along tariff-related expenses for other materials. The company's quarterly average realized price for copper was $4.54 per pound, up 1.3% from a year earlier, while its average realized price for gold was $3,291 per ounce, up about 43%. However, second-quarter copper production dropped around 7% from a year earlier to 963 million recoverable pounds.
Yahoo
18-07-2025
- Business
- Yahoo
Freeport-McMoRan (FCX) Laps the Stock Market: Here's Why
Freeport-McMoRan (FCX) closed the most recent trading day at $44.46, moving +1.09% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.54% for the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.74%. The stock of mining company has risen by 6.8% in the past month, leading the Basic Materials sector's loss of 0.05% and the S&P 500's gain of 4.2%. Analysts and investors alike will be keeping a close eye on the performance of Freeport-McMoRan in its upcoming earnings disclosure. The company's earnings report is set to go public on July 23, 2025. The company is predicted to post an EPS of $0.46, indicating constancy compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.12 billion, up 7.5% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.75 per share and revenue of $27.9 billion. These totals would mark changes of +18.24% and +9.59%, respectively, from last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Freeport-McMoRan. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.55% upward. As of now, Freeport-McMoRan holds a Zacks Rank of #3 (Hold). Looking at its valuation, Freeport-McMoRan is holding a Forward P/E ratio of 25.07. This valuation marks a premium compared to its industry average Forward P/E of 21.36. We can also see that FCX currently has a PEG ratio of 0.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Mining - Non Ferrous industry had an average PEG ratio of 0.81 as trading concluded yesterday. The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 18% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
16-07-2025
- Business
- Forbes
What To Expect From Freeport-McMoRan Stock's Q2?
CHONGQING, CHINA - APRIL 20: In this photo illustration, the Freeport-McMoRan logo is displayed on a ... More smartphone screen, with the company's blue and black branding visible in the background, on April 20, 2025, in Chongqing, China. (Photo illustration by) Freeport-McMoRan (NYSE:FCX) is scheduled to announce its earnings on Wednesday, July 23, 2025. The consensus earnings are estimated to be approximately $0.44 per share, and revenues are projected to rise by nearly 5% compared to the same quarter last year. This growth is anticipated to be fueled by higher copper prices and consistent production, especially from its Grasberg mine. Additionally, there could be extra advantages if U.S. tariffs on imported copper are implemented. Nonetheless, challenges persist due to copper price fluctuations and operational challenges in Indonesia. Overall, forecasts indicate moderate earnings growth and the possibility for upside if commodity prices and policy developments align. On a different note, can oil foster peace? See – Trump's Russia Math, Simplified. The company currently has a market capitalization of $65 billion. Over the past twelve months, it generated revenues of $25 billion and achieved operational profitability with $6.5 billion in operating profits and a net income of $1.8 billion. Therefore, if you are looking for upside with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative – having outperformed the S&P 500 and produced returns exceeding 91% since its inception. See earnings reaction history of all stocks Freeport-McMoRan's Historical Odds Of Positive Post-Earnings Return Some insights on one-day (1D) post-earnings returns: Additional data for observed 5-Day (5D) and 21-Day (21D) returns following earnings are summarized along with the statistics in the table below. FCX 1D, 5D, and 21D Post Earnings Return Correlation Between 1D, 5D, and 21D Historical Returns A relatively lower-risk approach (though not effective if the correlation is weak) is to analyze the correlation between short-term and medium-term returns after earnings, identify a pair with the strongest correlation, and carry out the corresponding trade. For instance, if 1D and 5D demonstrate the highest correlation, a trader could position themselves "long" for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on the 5-year and 3-year (more recent) history. Note that "correlation 1D_5D" refers to the relationship between 1D post-earnings returns and subsequent 5D returns. FCX Correlation Between 1D, 5D, and 21D Historical Returns Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), producing strong returns for investors. Additionally, if you are looking for upside with a smoother experience than an individual stock like Freeport-McMoRan, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since inception.
