Freeport ramps up Grasberg mine to two‑thirds capacity after mudslide
Freeport‑McMoRan reported that its Grasberg copper‑gold complex in Indonesia operated at roughly 67% of normal milling rates in Q3, a year after a fatal mudslide. The company plans to reach 80% of capacity by mid‑2027 and full output by the end of that year. Production in the quarter was about 830 million pounds of copper and 230,000 ounces of gold, with copper sales forecast at 750 million pounds and gold sales around 100,000 ounces. BMO analysts reiterated an outperform rating and a target price of $85 per share.
Why it matters
The higher operating rate and expected ramp‑up support Freeport’s near‑term cash flow, while the unchanged copper sales forecast and modest gold sales shift suggest limited impact on earnings guidance. BMO’s note indicates the company’s performance could sustain the current share price rally of roughly 3%.
Key facts
- 1Grasberg operated at about 67% of normal milling capacity in the third quarter. northernminer.com
- 2Freeport aims to achieve 80% capacity by mid‑2027 and near‑full capacity by year‑end. northernminer.com
- 3The mine processed roughly 140,000 tonnes of ore per day during the quarter. northernminer.com
- 4Q3 production was approximately 830 million pounds of copper and 230,000 ounces of gold. northernminer.com
- 5Copper sales are projected at about 750 million pounds for the quarter. northernminer.com
- 6Gold sales are expected to total roughly 100,000 ounces after the company moved about 60,000 ounces of refined metal into the fourth quarter. northernminer.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.