Freeport-McMoRan Shares Fall 10% After 24% Copper Output Drop and Guidance Cut
Freeport-McMoRan reported Q1 adjusted EPS of $0.57 versus $0.47 expected and revenue of $6.23 billion versus $5.96 billion estimates. Copper output slid 24% to 662 million pounds, prompting a cut to 2026 guidance to 3.1 billion pounds, a rise in unit costs to $1.95 per pound and stock fell 10%.
1. Q1 Earnings Beat
Freeport-McMoRan posted adjusted Q1 EPS of $0.57, beating the $0.47 estimate, and reported revenue of $6.23 billion versus $5.96 billion expected.
2. Production Shortfall at Grasberg
Copper output fell 24% year-over-year to 662 million pounds due to material handling bottlenecks and increased moisture after the temporary suspension at the Grasberg Block Cave, disrupting planned ramp-up.
3. Guidance Revised and Cost Pressure
The company cut full-year 2026 copper sales guidance to 3.1 billion pounds from 3.4 billion and revised gold forecasts lower, while raising unit cost expectations to $1.95 per pound from $1.75 and planning $4.3 billion in capital expenditures.
4. Market Reaction and Analyst Outlook
Shares dropped over 10% on the production miss as investors weighed the Grasberg delay; Jefferies set a $75 price target, implying about 22% upside, citing long-term recovery potential once operational issues are resolved.