Why Did Freeport-McMoRan Stock Drop On Doubts Over A Tariff It Would Gain From?

Freeport-McMoRan (FCX) is testing new technologies to boost copper production from stockpiles, aiming to increase annual leach output to 800M pounds over 3-4 years. The company is also evaluating an expansion at its Bagdad mine in Arizona, pending a board review. In Indonesia, Grasberg mine is recovering from a mud rush incident and expects full capacity by late 2027. FCX is also operating two smelters in Indonesia. U.S. copper tariffs remain uncertain, and the company plans to allocate half of

Freeport-McMoRan (FCX) reported higher Q2 earnings due to increased metal prices, but faces rising production costs. Q2 unit net cash costs rose 74% YoY to $1.97 per pound, with Q3 expected at $2. Copper sales volumes fell 30% YoY to 710M pounds. FCX projects full-year average costs of $1.9 per pound, up from $1.65 in 2025. Peers like Southern Copper (SCCO) and BHP (BHP) reported mixed cost trends.

Freeport-McMoRan's stock dropped nearly 8% to $70.43 after a Reuters report indicated uncertainty around U.S. copper import tariffs. The decline followed a record copper rally, with futures reaching $6.89 per pound. Analysts note the rally may have outpaced fundamentals, and the company faces operational challenges. Other copper producers and ETFs also saw declines.

Freeport-McMoRan (FCX) saw significant volatility, with a 43% YTD gain and intraday swings over 7% tied to copper price movements. Its unit, PT Freeport Indonesia, extended a $1.75B revolver to 2031, with $250M drawn. Bernstein reduced its price target to $47 from $50.

Freeport-McMoRan (FCX) aims to boost US copper production by 60% in four years via leaching and expansions, CEO Kathleen Quirk told CNBC. The company plans to extract copper from stockpiles and expand the Bagdad mine, with costs estimated at $4.55B. FCX produces 70% of US refined copper.

Freeport-McMoRan CEO Kathleen Quirk expects to proceed with the $4.5B expansion of its Bagdad copper mine, pending board approval. The project, a 3-year construction, aims to double capacity, adding 91-113K tonnes of copper annually. Costs rose 30% from prior estimates. A decision is expected by mid-2026.