Copper Surge Lifts Freeport-McMoRan as ETF Returns 154% and Supply Tightens
Global X Copper Miners ETF returned 154% to $95.70 as LME copper prices climbed 33% to $12,987 per metric ton, amplifying Freeport-McMoRan’s leveraged gains. Freeport-McMoRan CEO noted data center demand is the most significant growth driver while long permitting and scarce new discoveries constrain supply, boosting outlook.
1. ETF Outperformance Amplifies Freeport-McMoRan Gains
Global X Copper Miners ETF returned 154% over the past year to $95.70 by February 27, outpacing copper’s 33% LME price rise and magnifying Freeport-McMoRan’s operating leverage and profitability.
2. Data Center Growth Drives Demand
Freeport-McMoRan CEO Kathleen Quirk highlighted that U.S. data center expansions are the most significant source of growth for power cable and building wire, positioning the company to capture rising infrastructure spending.
3. Supply Constraints Underpin Bullish Outlook
Scarce new copper discoveries, decade-long permitting delays and declining ore grades at aging mines are tightening global supply in the face of projected demand doubling through 2040, underpinning a positive long-term outlook for Freeport-McMoRan.