Freeport-McMoRan Gains $13 Price Target Boost, Secures Grasberg Mine Rights Through 2041

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BofA Securities raised its price target for Freeport-McMoRan to $81 from $68 following higher 2026 metal price projections. The company signed an MOU with Indonesian authorities to extend PT Freeport Indonesia’s Grasberg mining license through 2041, retaining a 48.76% stake and expanding exploration, community support, and downstream production.

1. Price Target Upgrade

BofA Securities raised the price target on Freeport-McMoRan to $81 from $68, citing revised 2026 metal price projections across its North American Metals & Mining coverage and maintained a Buy rating on the stock.

2. Grasberg Resource Rights Extension

Freeport-McMoRan and Indonesian government officials signed an MOU to amend PT Freeport Indonesia’s special mining business license, securing life-of-resource operational rights in the Grasberg zone through 2041 with the company retaining a 48.76% stake and a future 12% government transfer subject to reimbursement of post-2041 investment costs.

3. Strategic Implications

The license extension and expanded exploration commitments bolster long-term copper output visibility, support downstream sulfuric acid, refined copper and precious metals production, and strengthen local community investments in healthcare and education under the agreement.

Sources

BBF