Freeport-McMoRan maintains steady copper output amid Grasberg recovery

Freeport-McMoRan reported third-quarter copper production of approximately 830 million pounds, meeting expectations as the Grasberg operation in Indonesia continues its recovery following a previous mud rush incident. Gold production reached 230,000 ounces, though gold sales were lower than estimated at 100,000 ounces due to a shift in the timing of refined sales at PT Freeport Indonesia.

Copper sales are projected to align with previous estimates of 750 million pounds, with an average realized price exceeding US$6.50 per pound. However, unit net cash costs are expected to be roughly 5% higher than July estimates due to reduced by-product credits.

While international operations performed well, U.S. output was impacted by localized flooding, power outages, and strong winds. At the Grasberg site, mill throughput averaged 140,000 tonnes of ore per day, representing about 67% of normalized rates. The company expects the Grasberg operation to reach 80% capacity by mid-2027 and approach full capacity by the end of that year. Meanwhile, the PTFI smelter has restarted and is ramping up production.

In market activity, Freeport-McMoRan shares rose 4% during mid-day trading, reaching a high of $73.07. The company maintains a market capitalization of approximately $103.50 billion.