Freeport-McMoRan Inc. (FCX) | Investment Case

1. Company Snapshot

1.a. Company Description

Freeport-McMoRan Inc.engages in the mining of mineral properties in North America, South America, and Indonesia.The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas.

Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile.The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico.As of December 31, 2021, it operated approximately 135 wells.

The company was formerly known as Freeport-McMoRan Copper & Gold Inc.and changed its name to Freeport-McMoRan Inc.in July 2014.

Freeport-McMoRan Inc.was incorporated in 1987 and is headquartered in Phoenix, Arizona.

Show Full description

1.b. Last Insights on FCX

Freeport-McMoRan's recent performance was positively driven by surging copper and gold prices, which offset weaker volumes and operational disruptions. The company's Q3 earnings beat estimates, with quarterly earnings of $0.5 per share, exceeding the Zacks Consensus Estimate of $0.41 per share. Favorable copper prices, despite Grasberg mine issues and higher costs, contributed to the strong results. Additionally, the company's efforts to push forward with major expansion projects and green energy shifts are expected to fuel long-term growth. UBS upgraded the stock to "buy" from "neutral", citing strength in copper prices and improving demand.

1.c. Company Highlights

Last Price	45.2
Change Percentage	1.32%
Open	45.27
Previous Close	44.61
Market Cap ( Millions)	64904
Volume	20167116
Year High	49.12
Year Low	27.66
M A 50	40.86
M A 200	40.49

FCF Yield	6.25%
Dividend Yield	1.33%
ROE	11.45%
Debt / Equity	49.76%
Net Debt / EBIDTA	50.24%
Price To Book	3.49
Price Earnings Ratio	31.57
Price To FCF	15.99
Price To sales	2.5
EV / EBITDA	7.37

2. Freeport-McMoRan's Q2 2025 Earnings: Strong Copper Sales and Margin Expansion

In Q2 2025, Freeport-McMoRan reported a robust financial performance, driven by high copper demand and favorable prices. The company's EPS came in at $0.54, beating analyst estimates of $0.4497. EBITDA reached $3.2 billion, while operating cash flows were $2.2 billion. Net unit cash production costs were $1.13 per pound, and copper sales volumes exceeded production as inventories were reduced in Indonesia. As Richard Adkerson, Chairman of the Board, highlighted, "copper is in high demand due to its use in electricity," and Freeport-McMoRan is well-positioned with its diversified copper production across the U.S., Indonesia, Peru, and Chile.

Publication Date: Jul -27

                                    📋 Highlights
                                    Copper Demand and Production:
                                                - Copper demand is high due to its use in electricity, with Freeport-McMoRan strongly positioned across the U.S., Indonesia, and Peru/Chile, producing over 70% of U.S. refined copper.
Q2 2025 Financials:
                                                - Reported net unit cash production costs of $1.13 per pound, EBITDA of $3.2 billion, and operating cash flows of $2.2 billion, with copper sales volumes exceeding production.
Indonesian Smelter Milestone:
                                                - Started a new copper smelter in Indonesia, expected to produce first cathodes by Q4 2025, with operating costs of $0.15-$0.16 per pound after considering additional revenues.
U.S. Production Growth:
                                                - U.S. copper production is expected to increase in 2025 and 2026, with unit costs targeting $2.50 per pound by 2027 and initiatives like leach additives and autonomous trucks.
Shareholder Returns:
                                                - Purchased 2.9 million shares in H1 2025 at $36.41 per share, targeting 50% of excess cash flow for shareholder returns, with over $5 billion distributed since 2021.

                                

Operational Highlights

The company achieved a significant milestone with the start-up of its new copper smelter in Indonesia, expected to produce first cathodes by the end of the month. In the U.S., production is expected to increase in 2025 and 2026 compared to 2024 levels, with unit costs trending towards $2.50 per pound in 2027. The company is advancing several initiatives, including the use of leach additives and autonomous haul trucks, to drive value creation.

Financial Performance and Guidance

For the second half of 2025, copper sales are expected to be nearly 10% higher than the first half, with gold sales similar to the first half levels. The company is targeting a 40% increase in its leach run rate to achieve 300 million pounds by the end of the year. Freeport-McMoRan's 2025 guidance for copper is around 1% below prior forecast, with gold sales down around 17%. Net unit costs for 2025 are approximately $1.55 per pound, with unit net cash cost estimate better than prior estimate.

Valuation and Returns

Analysts estimate next year's revenue growth at 10.0%. With a P/E Ratio of 11.11, P/B Ratio of 3.56, and EV/EBITDA of 6.27, the company's valuation multiples indicate a reasonable pricing. The Dividend Yield is 1.34%, and Free Cash Flow Yield is 6.4%. The company's ROIC is 13.66%, and ROE is 32.84%, indicating strong profitability. The Net Debt / EBITDA ratio is -0.46, reflecting a healthy balance sheet.

Outlook and Challenges

The company's financial policy priorities include a strong balance sheet, cash returns to shareholders, and investments in value-enhancing projects. Freeport-McMoRan has distributed over $5 billion to shareholders through dividends and share purchases since adopting its financial policy in 2021. The company remains disciplined in allocating capital to projects that enhance its position and generate attractive returns, with a focus on copper demand driven by secular trends, including the need for energy infrastructure and data centers.

3. NewsRoom

Freeport-McMoRan Inc. Securities Fraud Class Action Lawsuit Pending: Contact Levi & Korsinsky Before January 12, 2026 to Discuss Your Rights – FCX

Dec -04

Source: globenewswire.com

INVESTOR ALERT: The Freeport-McMoRan Inc. Securities Fraud Class Action is Pending, Investors Urged to Contact BFA Law by January 12 Deadline

Dec -04

Source: newsfilecorp.com

DEADLINE ALERT for LRN, PRMB, FCX, and PRGO: The Law Offices of Frank R. Cruz Reminds Investors of Class Actions on Behalf of Shareholders

Dec -04

Source: globenewswire.com

LRN INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that Stride, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Dec -04

Source: globenewswire.com

Portnoy Law Firm Announces Class Action on Behalf of Freeport-McMoran, Inc. Investors

Dec -04

Source: globenewswire.com

What's Next With Freeport Stock?

Dec -04

Source: forbes.com

Contact The Gross Law Firm by January 12, 2026 Deadline to Join Class Action Against Freeport-McMoRan Inc.(FCX)

Dec -04

Source: prnewswire.com

Freeport-McMoRan Inc. Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights – FCX

Dec -04

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.31%)

6. Segments

Indonesia Operations

Expected Growth: 5.3%

Indonesia operations, led by the Grasberg minerals district in Papua, drive growth through copper and gold mining, leveraging Indonesia's rich mineral resources and Freeport-McMoRan's operational expertise.

South America Mining - Cerro Verde

Expected Growth: 4.1%

Rising copper demand from electric vehicle manufacturers, combined with Peru's favorable mining regulations, will drive growth in Freeport-McMoRan's copper mining operations in Peru, South America.

North America Copper Mines - Other (Including Bagdad)

Expected Growth: 4.5%

Strong demand from electric vehicle and renewable energy sectors, coupled with supply constraints, will drive growth in Freeport-McMoRan's North America copper mines, excluding Morenci and Sierrita.

North America Copper Mines - Morenci

Expected Growth: 2.8%

Copper demand driven by electric vehicle adoption, renewable energy infrastructure, and construction activities, supported by Freeport-McMoRan’s operational efficiency and Arizona's favorable mining environment.

Rod & Refining

Expected Growth: 4.2%

Growing demand for copper rod in electrical and industrial applications, increasing recycling of copper and precious metals, and Freeport-McMoRan’s focus on optimizing refining capacity will drive segment growth.

Atlantic Copper Smelting & Refining

Expected Growth: 4.2%

Atlantic Copper’s strong market position, driven by increasing demand for copper in electric vehicles and renewable energy applications, is expected to drive growth. Additionally, Freeport-McMoRan Inc.’s expertise in copper smelting and refining operations will further boost segment growth.

South America Mining - Other

Expected Growth: 3.8%

Copper mining operations in South America, excluding Morenci from Freeport‐McMoRan, are driven by increasing demand from renewable energy and electrification of transportation, coupled with supply constraints and declining ore grades.

Molybdenum Mines

Expected Growth: 4.8%

Growing demand for molybdenum in steel production, driven by increasing infrastructure development and urbanization, will drive the growth of Freeport-McMoRan’s molybdenum_mines_segment.

Corporate, Other & Eliminations

Expected Growth: 5.2%

Freeport-McMoRan’s corporate activities, other business segments and eliminations of intersegment transactions are expected to grow driven by increasing copper demand, cost savings initiatives and operational efficiencies.

7. Detailed Products

Copper

Freeport-McMoRan Inc. is one of the largest copper producers in the world, with operations in North America, South America, and Indonesia.

Gold

Freeport-McMoRan Inc. is a significant producer of gold, with operations in North America, South America, and Indonesia.

Molybdenum

Freeport-McMoRan Inc. is a leading producer of molybdenum, a metal used to strengthen steel and other alloys.

Silver

Freeport-McMoRan Inc. produces silver as a byproduct of its copper and gold mining operations.

Oil and Natural Gas

Freeport-McMoRan Inc. has oil and natural gas operations in the Gulf of Mexico and onshore in South Louisiana.

8. Freeport-McMoRan Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Freeport-McMoRan Inc. operates in the mining industry, where substitutes are limited. However, the company's copper and gold products face some substitution threats from alternative materials and recycling.

Bargaining Power Of Customers

Freeport-McMoRan Inc.'s customers, mainly industrial manufacturers, have limited bargaining power due to the company's dominant position in the copper market and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Freeport-McMoRan Inc. relies on suppliers for equipment, materials, and services. While the company has some bargaining power, suppliers can still exert some pressure, particularly in times of high demand.

Threat Of New Entrants

The mining industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and environmental concerns, making it difficult for new entrants to challenge Freeport-McMoRan Inc.'s position.

Intensity Of Rivalry

The mining industry is highly competitive, with several major players competing for market share. Freeport-McMoRan Inc. faces intense rivalry from companies like Rio Tinto, BHP, and Glencore, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	36.28%
Debt Cost	12.76%
Equity Weight	63.72%
Equity Cost	14.05%
WACC	13.58%
Leverage	56.95%

11. Quality Control: Freeport-McMoRan Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Vulcan Materials

A-Score: 5.4/10

Value: 1.6

Growth: 6.7

Quality: 5.7

Yield: 1.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

Nucor

A-Score: 5.1/10

Value: 6.5

Growth: 5.9

Quality: 4.7

Yield: 4.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

Martin Marietta Materials

A-Score: 5.1/10

Value: 1.9

Growth: 7.0

Quality: 5.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

Sherwin-Williams

A-Score: 4.6/10

Value: 1.4

Growth: 6.4

Quality: 5.9

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

Freeport-McMoRan

A-Score: 4.6/10

Value: 5.2

Growth: 5.6

Quality: 8.1

Yield: 2.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

Dow

A-Score: 4.6/10

Value: 8.2

Growth: 2.7

Quality: 1.9

Yield: 10.0

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.98%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

13.58%

Freeport-McMoRan Inc. - US35671D8570

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FCX

1.c. Company Highlights

Expensive

Stable Momentum

Average Quality

Earnings Beats

Revenues Beats

Medium Volatility

Fairly Valued

Earnings Miss

Revenues Miss

Better Quality

Average Growth

2. Freeport-McMoRan's Q2 2025 Earnings: Strong Copper Sales and Margin Expansion

Operational Highlights

Financial Performance and Guidance

Valuation and Returns

Outlook and Challenges

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.31%)

6. Segments

Indonesia Operations

Expected Growth: 5.3%

South America Mining - Cerro Verde

Expected Growth: 4.1%

North America Copper Mines - Other (Including Bagdad)

Expected Growth: 4.5%

North America Copper Mines - Morenci

Expected Growth: 2.8%

Rod & Refining

Expected Growth: 4.2%

Atlantic Copper Smelting & Refining

Expected Growth: 4.2%

South America Mining - Other

Expected Growth: 3.8%

Molybdenum Mines

Expected Growth: 4.8%

Corporate, Other & Eliminations

Expected Growth: 5.2%

7. Detailed Products

Copper

Gold

Molybdenum

Silver

Oil and Natural Gas

8. Freeport-McMoRan Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Freeport-McMoRan Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

12.e Scoring ^Insights

12.f DCF ^BETA