Freeport-McMoRan Shares Gain $7.8 Billion as Copper Prices Suggest $870 Million Boost to Cash Flow

Copper prices hit record highs in New York and London, driven by US tariff threats and supply shifts. Comex copper reached $6.7270 per pound, while LME prices approached all-time highs. US imports surged, turning a projected 2026 surplus into a potential deficit. Southern Copper (SCCO) surged 15% in a week, outpacing peers like Freeport (FCX) and Rio Tinto (RIO).

Freeport-McMoRan (FCX) stock rose 8% after Q2 earnings beat estimates, with adjusted EPS of $0.74 vs. $0.62 expected and revenue of $7.03B vs. $6.7B. The company reported strong production and guided for increased output and $4.8B in capital spending by 2027, funded by operating cash flow. Analysts raised price targets to $70-$78, with an average of $73-$74.

U.S. stocks rose Friday, trimming weekly losses. The S&P 500 gained 0.4%, Dow +1%, Nasdaq +0.4%. Ross Stores led gains with a 4.4% rise after strong earnings. Bitcoin surged above $77,000, boosting crypto-related stocks like Robinhood and Coinbase. Treasury yields climbed, with the 10-year yield at 4.73%. Oil prices rose to $92.67 per barrel. Newmont and Freeport-McMoRan gained, while OSI Systems dropped 5.2% on weak earnings.

Freeport-McMoran (FCX) stock rose 7.5% to $76.72, a 52-week high, driven by record copper prices and strong Q2 earnings. The company reported $0.74 EPS and $7.03B revenue, beating estimates. Copper demand from AI, EVs, and grid electrification supports the rally. The broader market had modest gains, making FCX's move commodity-specific.

UBS reports diversified miners are focusing on copper expansion for higher valuations. The bank rates Anglo American (£46 target) and Teck Resources (C$105 target) as buys, citing portfolio restructuring and earnings beats. Freeport-McMoRan (NYSE:FCX, $77 target) is also a buy due to Grasberg mine recovery. BHP, Rio Tinto, and Glencore are rated neutral with respective targets of £29.50, £73, and 570 pence. Shares of these companies showed mixed movements in afternoon trading.

Copper futures neared record highs after a boiler leak forced Indonesia’s Gresik smelter to shut for assessment and repair, tightening supply tied to the Grasberg mine. LME three-month copper was about $14,195.50/tonne. Aluminum rose after Norsk Hydro said its Alunorte refinery cut alumina output to half capacity due to natural gas disruptions. Freeport-McMoRan and other miners fell.