Freeport-McMoRan Profit Rises as Higher Copper Prices Offset Grasberg Setback

Freeport-McMoRan (FCX.N) on Thursday reported a stronger-than-expected third-quarter profit, as higher copper prices helped offset production losses from a temporary shutdown at its flagship Grasberg mine following the deaths of seven workers.

Shares of the Phoenix-based miner rose 3.3% in early trading to $42.10.

Average copper prices climbed from a year earlier, supported by signs of improving demand from top consumer China. Freeport’s average realized copper price for the quarter was $4.68 per pound, nearly 9% higher than the same period last year.

According to LSEG data, the company posted an adjusted profit of 50 cents per share for the three months ended September 30, beating the analysts’ average estimate of 41 cents.

Freeport had previously warned of lower sales due to the roughly month-long suspension of operations at its Grasberg mine in Indonesia — the world’s second-largest copper mine and largest gold mine — after about 800,000 metric tons of mud flooded the site last month.

Seven workers trapped underground in the mudslide were confirmed dead earlier this month.

The company has said that the gradual resumption and ramp-up of operations may not be completed until sometime in 2026.

It now expects fourth-quarter copper sales of 635 million pounds and gold sales of 60,000 ounces, both lower than a year ago due to the suspension.

Jefferies analyst Chris LaFemina said the company’s targets “still look achievable,” but added that “the perceived operational risk at Grasberg could remain a semi-permanent overhang.”

Freeport’s third-quarter copper production fell 13.2% year-on-year to 912 million recoverable pounds, while gold output dropped 37.1% to 287,000 recoverable ounces.

The miner did not hold its usual investor conference call to discuss results, saying it plans to do so next month once the investigation into the Grasberg incident is complete.