Key Takeaways
- Shares of FCX plummeted approximately 8% during premarket hours Thursday, marking the steepest decline since September 2025.
- First-quarter adjusted earnings reached $0.57 per share on revenue of $6.23 billion, surpassing Wall Street projections.
- Year-over-year declines in copper and gold sales reflected diminished production at the company’s Grasberg operation.
- 2026 copper production forecast reduced to 3.1 billion pounds from 3.4 billion; gold outlook lowered to 650,000 ounces from 800,000.
- Production challenges stem from a fatal September 2025 incident at Grasberg that claimed seven lives and disrupted mining activities.
Freeport-McMoRan (FCX) delivered stronger-than-expected quarterly results. Wall Street wasn’t impressed.
Shares plummeted roughly 8% in premarket activity Thursday following the company’s decision to dramatically reduce its full-year production targets for both copper and gold. The selloff positioned FCX for its largest single-session decline in more than seven months.
The company’s Q1 performance exceeded expectations on the surface. Earnings on an adjusted basis totaled 57 cents per share, comfortably above the Street’s 47-cent consensus. Sales climbed nearly 9% from the prior-year period to $6.23 billion, topping the $5.73 billion analyst forecast.
Yet strong topline figures couldn’t obscure underlying operational weaknesses.
Copper volumes declined sharply to 657 million pounds versus 872 million pounds in last year’s comparable quarter. Gold production totaled 121,000 ounces — significantly below 2025 output, though above the company’s 60,000-ounce preliminary guidance issued earlier this year. Molybdenum provided a rare positive data point, with 24 million pounds sold exceeding both year-ago results and internal projections.
The weakness in copper and gold stems directly from challenges at Grasberg, Freeport’s flagship Indonesian mining complex.
Grasberg Recovery Lags
A tragic mud rush incident at the facility in September 2025 resulted in seven fatalities and forced an operational shutdown. Mining activities have continued at reduced capacity since that event, and Thursday’s announcement confirmed the recovery timeline has stretched beyond initial estimates.
Freeport revised its full-year 2026 copper projection downward to 3.1 billion pounds from the previous 3.4 billion-pound target. Gold expectations dropped to 650,000 ounces from 800,000. Company management linked both downgrades to slower-than-anticipated resumption of normal operations at Grasberg, noting required “modifications to ore loading infrastructure.”
These aren’t marginal adjustments. The revisions represent a substantial departure from guidance provided to shareholders just a few months earlier.
Executive Commentary
CEO Kathleen Quirk addressed the situation in measured terms. She emphasized Freeport’s position as “America’s Copper Champion” while highlighting the company’s diversified asset base and operational scope. “Freeport’s global team is focused on restoring operations at Grasberg safely and sustainably,” she stated.
The company offered no specific timeframe for returning Grasberg to full production capacity.
FCX shares extended losses to more than 10% during regular Thursday trading, exceeding the initial premarket decline.
